Coffee Republic have taken the action of taking over the loss making Good Bean chain, to improve economies of scale and generate fiance to improve the cashflow situation. It can be recommend that Coffee Republic should rethink their approach to getting out of this crisis. Instead of continuing with their expansion strategy, they should look into their marketing plan and improve ways of satisfying customers needs, by doing this they could perhaps find a way of boosting sales before closing down more branches. However, if this is not successful then they should sell or close bottom end shops to improve returns on capital from the better improving sites.…
