Redhawks Consulting

1. Redhawks Consulting

2. Key Concern Pan Boricua must decide whether to expand, stay in markets where they are weak, and/or expand to other markets in the United States.

3. External Analysis Five Forces Supplier Power • High differentiation of inputs • Low supplier power • Moderate supplier concentration • Low costs to total purchases in industry Buyer Power Threat of Substitution Competitive Rivalry • High volume • High buyer power • High concentration • (niche market) • High price sensitivity • High product differences • High threat of substitution • High variety of substitutes • Low switching costs • Low profit margins • High variety of product • High competitive rivalry • High concentration of competitors • High amount of distributors Threat of New Entry • High access to inputs • Moderate threat of new entry • Low capital requirements • Moderate regulation • Moderate brand identity Analysis

4. PESTLE Socioeconomic Factors • Potential Growth Analysis

5. PESTLE Socioeconomic Factors • Hispanics spend 43% more on food than non-Hispanics • Hispanics spend more than 30% of food money on specialty shops such as bakeries • Hispanics take and average of 26 trips to the store a month • Food plays a large part in family traditions Analysis

6. SWOT AnalysisSW - Internal …. OT - External Analysis

7. Alternatives • Stay in current markets (weak and strong) • Explore new markets while revamping current market • Merger with Mi Pan • Replicate Mi Pan business plan Alternatives

8. Stay in Current Markets • Positives • Already Established • Distributors • Brand Image • Low Cost • Negatives • Little growth potential • Weak markets consume resources with low margins • Competitors reach other markets Analysis

9. Expand and Revamp • Positives • High Growth Potential • Spread Brand Recognition • Negatives • Costly • Chance of failure in New Markets • No change in weak markets Analysis

10. Merger with Mi Pan • Positives • Uses each companies distinctive core competency • Eliminates competition in low margin business • Negatives • Give up some control • Potential for Rejection and/or Failure of New Company Analysis

11. Replicate Mi Pan Business Model • Positive • Proven Business Model • Expansion into new markets • Negative • Reactive Followers • Failure to replicate success • More direct competition drives margins ever lower Analysis

12. WeightedCompetitive Strength Analysis Alternatives Stay in current markets (weak and strong) Explore new markets while revamping current market Merger with Mi Pan Replicate Mi Pan business plan Ranking Scale 1: The alternative does not effectively address this criterion. 2: The alternative may contribute to addressing this criterion. 3: The alternative provides an average solutions to this criterion. 4: The alternative provides an above-average solution for this criterion. 5: The alternative effectively addresses this criterion. Analysis

13. Recommendation Alternative 3 - Merger with Mi Pan (I added this) Recommendation

14. Implementation: Short-term??? Implementation

15. Short-term - Implementation Implementation

16. Implementation: Long-term??? Implementation

17. Long-Term - Implementation Implementation

18. Risks, Mitigations (?) and Contingencies • Joint venture into New York • Expand into other markets and revamp current market hold Implementation