ETHICAL CONSIDERATION:

The major factor it should consider before finalizing its decision, is that it should take into account all ethical factors. For example, it should ensure that, what effect it will create on the environment, is the project  environmentally friendly and how it will impact on the life of general public. How it will increase employment to the general public.However, in the above scenario, it is indicated that, the increase in coffee consumption, it 's hard to meet their supplies.The Glenora should also ensure that, it is practically possible for Glernora to meet the demand of growth in coffee consumer.

AVAILABLITY OF RESOURCES:

Glenora must have enough resources to accept this project. Therefore,glenora should make sure that, it has sufficient resources such as available of equipment, human capital.

CUSTOMER SATISFACTION:

Customer satisfaction matters for every business.However, the glenora should ensure that,their customer issatisfied with their value addedproducts and services. This is possible through market research, taking customer’s feedback and by identifying the needs of the customers.

Glenora Coffee Harvard Case Solution & Analysis

OTHER FACTORS:

• Apart from financial indicators, another factor that can be considered, which is essential foranyEspecially, which is operating in beverage sector that is product quality, this matter should also consider before finalizing its decision and glenorma should have aproper plan of maintaining product quality.
• However,taking tea in the India is a tradition. This factor should alsobe considered before finalizing thedecision. Therefore, the domestic market may be limited to tackle this issue, the Glenora should have aproper plan that how will it counter tea, which is primarily traditional Indian
• On the other hand, as mentioned above the scenario,Glenorma also faced difficulty in sourcing labor and distribution of the products.Therefore, before coming into final decision Glenorma should have proper laborsourcing plan and proper distributionchannel, to meet with the market’s competitive landscape.

Appedix-I

DESCRIPTION OF CALCULATION:

• The cost of a plant is 800000 and land for fertilizer are 400,000 respectively. However, there are 450 Therefore, the cost of investment will be (1200000 x 450) 540,000,000.
• The maintenance cost of the project was 10% of the cost of investment. So, the cost of project is (540,000,000x10%) 54,000,000.
• Their yield were 500 per kg for pepper and the total cost of pepper, will be calculated as (450x500x280), then the total cost of pepper will result in 63000000.
• 200kg total cost of the cardamom was increased to (200x540x450)109350000.
• Roasting and blending of coffee were 90% of the cost of growing Green bean (111644269x90%) 90431858.
• The research and development of normal beans, were 83.34 of growing normal cost growing green bean. (111644269x83.34%)
• The cost of branding was expected 166.66% cost of growing green bean. (111644269x166.66%) 186066338.
• Export prices will increase by 2%. Consequently, revenue will increase by 2% annually.
• 10% cost of running plant will be termed as other expenses 54, 00,000(54,000,000x10%).
• Other overhead costswere increased by .173 of the cost of purchasing plant (5, 400, 00,000x.173).
• The cost of advertising was 1million.
• The value of land increased by 5% every year such increase will be deducted every year (5, 400, 00,000x5%).
• Tax is calculated as 35% of net cash flows.

DESCRIPTION OF CALCULATING WACC:

• The assumption has been taken, while calculating the cost of equity.

Equity risk premium is calculated, by taking average of geographical mean and Arithmetic mean (9.73+12.20)/2.

• Even the equity beta even has been taken as an average.

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