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profilefaith1119

response 1: 

 

My proposed winning move for Sweetgreen is to formulate a partnership with Weight Watchers. My biggest challenge is trying to locate the company financials for Sweetgreen as a privately-owned company. Back in 2014, Sweetgreen signed on with Revolution Growth, a longtime funding partner to invest an additional $18.5 million in the chain. (Galarza 2017) The company was able to raise an initial $375,000 for startup costs in advance of its 2017 opening. Since we intend on opening more locations, this partnership could extend the company’s ability to open more locations within the various Weight Watcher facilities as smaller hubs. With the use of the apps, consumers can order and pick up more conveniently. I would like to locate the cost associated with Sweetgreen opening a new location. The winning move cost would be the difference in opening a new store versus the reduce price of maintaining a smaller hub offering the same farm to table experience to a larger consumer market.

Since Weight Watchers facilities are franchises, I believe that the potential financial risk is getting each owner onboard and dividing the space to accommodate Sweetgreen business flow needs. Another financial risk is storing the fresh products for periods of time and still maintaining its freshness. There would be addition cost associated with expired produce. I am still doing research on the Return on Investment and the financial information. I was able to do a brief review of the Weight Watchers Annual Report to see how the company is doing. I will give the team an update within the next few days to add more clarity to this matter.

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response 2:

 

Financial data is a key ingredient in the decision-making process. The financial data provides insight into how it affects an important asset of a company. The financial data I will be evaluating, and interpreting is three-fold. See below:

-        Subscribers

-        Star power

-        Multimedia outlets and events

These three pieces of data will be evaluated based on ROI and longevity. In the music streaming service, subscribers are key. Using simple math to explain why, imagine gaining $10 from each paying subscriber. In his case, it is roughly 80 million paying subscribers. This means that on a month to month basis we are gaining $800 million dollars in subscribers. In analyzing this I must note that operating and expansion costs weigh heavily on the profit. By increasing the star power involved with Spotify will not only bring new subscribers but give them a one of a kind experience with a variety of music, exclusive content, and immaculate sound.

I see the acquisition of tidal having a ROI of 2 years. This acquisition will cost $650 million. We plan to not only continue to expand in our market but use this acquisition as a jump start in gaining a foothold as a newly public company.

However, since we are expanding and operating costs on a month to month basis are still outweighing our profit, I understand the financial risk involved. The risk is still there and in my future presentation I will be explaining why.

    • 6 years ago
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