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

4. Socioeconomic Factors • Potential Growth

5. 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

6. SWOT AnalysisSW - Internal …. OT - External

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

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

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

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

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

12. Weighted Competitive 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.

13. Recommendation • Alternative 3

14. Implementation

15. Implementation time line

16. Implementation

17. Implementation

18. Contingency • Joint venture into New York • Expand into other markets and revamp current market hold