CoffeeTime Simulation

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Question A

In trying to determine where to locate its outlets in India, CoffeeTime had to analyze considerable data. Given this data, what does CoffeeTime really know about the various locations in India? What doesn't CoffeeTime know that it might learn from further research?

On the verge of entering India and extending their products to global outlets, CoffeeTime had to research and retrieve some tangible information that would allow them to attain some knowledge about their potential venture. They were able to acquire data from conducting both primary and secondary research. The first piece of information they acquired were the various cities in India considered modern in terms of their cultural outlook and which ones have a high degree of affluence. Knowing this information will allow CoffeeTime to really know which groups of people will be more accepting and open to the kinds of products CoffeeTime wants to offer. Knowing the cities that have a high degree of affluence will also show CoffeeTime which groups of people possess the spending power for their premium flavors.

Secondary data acquired on the cities selected were classified into demographics, lifestyle, infrastructure and competition. Obtaining information on the demographics of the people will allow CoffeeTime to clearly define their target segment. On the outside, obtaining information about peoples' lifestyles show their way of living, spending power and preferred tastes. However, this information will prove to be more of an asset to CoffeeTime. If properly analyzed, knowing how many people visit certain malls or shopping centers and how many malls there are in a certain city will allow CoffeeTime to adequately analyze these peoples' shopping pattern. Knowing where people wine, dine and shop will bring CoffeeTime closer to understanding where to establish their various outlets. Identifying the various competitions in the city will only allow CoffeeTime to be prepared to beat their competitors and remain at the forefront. Considering all these data, CoffeeTime now knows certain information about the various locations in India. They know the specific areas where people spend the most time, they know the number of competitors there are, and they know the number of malls that might be a potential for CoffeeTime's outlets. Although all these information will be beneficial for CoffeeTime's decision-making period, there are many other information they could learn from further research.

Knowing how many competitors are in each city is not enough information needed for preparation. CoffeeTime could take steps to find the specific locations of these competitors. This is extremely important because it might be better to set up an outlet a few miles away from a major competitor rather than next door. Another important information they could acquire is the types of visitors to the mall. CoffeeTime's population targets are young and middle-aged adults. The number of people at the mall might be misleading because seventy percent of that number might be preteens or seniors. Steps can be taken to research the ages of visitors and how often they visit the mall. Finally, CoffeeTime can also conduct research to see the prices of Coffee as they relate to their competitors. Knowing how much their competitors sell their products in various locations will help CoffeeTime better understand which areas would benefit them the most in terms of price and profit.

b. How do the limitations of the data available to CoffeeTime affect the validity and reliability of the data?

A major piece of information that cannot be learned from research is knowing those that are or will be bias in their responses to things such as surveys. The questionnaire created was presented to 60 people and it is impossible for CoffeeTime to know how many of those people are bias or untruthful in their statements or responses. There are also ethical issues that need to be taken into consideration. Some countries, especially third world countries, might be involved in unethical conduct on a day-to-day basis when ...