· Decline of Outlets
There are several franchisees for order taking at Nantucket Nectars, but no genuine dine-in dining venues everywhere.
· Customer Care Center Problems
The franchise staff of the Nantucket Nectars has been accused of betraying the company. It’s tough to keep track of every employee that cheats due to the large number of franchisees.
· Operational Issues
The operations of Nantucket Nectars are exceedingly tough to manage because franchisees are distributed throughout the city.
· New Environs Regulations
The new environmental policies may benefit Nantucket Nectars. If environmental regulations are consistent, they can reap more benefits from innovation.
· Calorie-Counting Menu
If Nantucket Nectars adds low-calorie meals to their menu, their customer base will expand. They can make low-calorie meals by employing low-fat ingredients and lowering the carbohydrate content of their recipes.
· Social Economic Changes
Customers from the middle class can also afford Nantucket Nectars. Their market has been segmented based on demographics.
There are THREATS of rivals for Nantucket Nectars. In-direct competitors include many fast-food chains, whereas its direction competition comprises solely corporation-making sectors.
The current operations and products of Nantucket Nectars include many activities that are costly. To avoid this threat, they can work on cost-cutting strategies.
· There are no long-term agreements in place with suppliers.
The Nantucket Nectars vendors sell raw products such as veggies and meats. Nantucket Nectars needed flour and other ingredients because they make their own dough. There are no long-term contracts with the providers. This could pose a serious threat to the firm’s productivity.
Appendix 1-SWOT Framework
The investment bank’s ultimate goal is to establish fair value for the companies engaged in the transaction, the company and the acquirer must involve the investment bank in the sale. Investment banks also find transactions by approaching companies with their own strategic ideas and conducting their own market research.
Furthermore, the investment bank would be in charge of crafting a set of key points that form a compelling investment thesis, as well as putting together marketing materials like the “Information Memorandum” to communicate these points, based on its knowledge and understanding of the client and its industry.
Tom First and Tom Scott are advised to work with a Boston-based investment bank. Furthermore, by selecting a Boston-based investment bank, they ensure that the bank will provide them with the most value in a transaction because the firm has a strong market reputation and brand equity in the city.
The management of the Nantucket Nectars should sell the company for the following reasons:
• The sale of Nantucket Nectars will enable the proprietors to invest the proceeds in another firm, such as the IT industry, which is growing and profitable.
• Mr. Mike may not accept going public because he owns 55 percent of the company and may want to realize his investment at this time.
• The company’s failure to sell juices through supermarkets has resulted in this position, yet the company has tried but failed to secure shelf space from these supermarkets…..
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