Cool Bean Company Case Study

By outsourcing the buying of the ingredients and production of the product, Cool Beans financial risk is reduced. It also ensures ‘cash flow can be freed up for other outgoings such as salaries and marketing activities’ (Cool Beans, 2015: 30). At present, the company’s biggest expense is salaries. As the company grows, more staff will need to be hired which will impact their profit margins. As mentioned in a personal interview in October 2015, the next target of the Cool Bean Company is to make Sarah O’Connor a full-time employee (O’Connor and Johnson, 2015). It is important to note, that to date, the Cool Bean Company have avoided overheads like office space, and in fact have little in the form of fixed assets. The main value asset is their
Currently, the founders’ friends and family help them at trade shows, like the Ploughing Championships, and for in-store promotion (Cool Beans, 2015). While this saves on paid promoters and is an efficient use of resources as it markets the produce directly to consumers, this is probably not a long-term viable option. Through columns in the Irish Times and appearances on the Late Late Show and other media, Cool Beans has managed to gain exposure for minimum cost. Overall, the Cool Bean Company has been very successful at marketing and branding so far, mainly through non-financial means and personal contact. As the company grows this personal contact may not be possible due to logistical issues. To maintain and enhance the future branding of the Cool Bean Company, financial investment is very likely, especially medium-term investment in SEO/SEM
The internal analysis of the Cool Bean Company has revealed a successful and profitable first year of production. The strong marketing capabilities of its founders is gaining great exposure for the Cool Beans brand, and is enabling costs to be kept low. The capacity to increase production to cater for increased demand is present. It is clear that Cool Beans is currently following a strategy that is appropriate in light of its assets, finances, and capabilities. However, Cool Beans currently relies heavily on grants to fund operations. This report has found that the Cool Bean Company will need to explore alternative options in order to sufficiently meet financial overheads. The company will also need to prepare for the many financial and operational challenges that will arise coming out of this continued business