Case Study Analysis_ Nature Brothers, Ltd (1)

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Case Study Analysis: Nature Brothers, Ltd. Shannon Duncan Doctoral Student School of Business - PhD 10/01/2023
1. What is the major theme, as it pertains to new business development, presented in the case study? The theme in the Nature Brothers, Ltd case study appears to center around the speed at which entrepreneurs should expand their business and the method of expansion when there is an obvious cash-flow concern. In this case study, Dale Morris wanted to expand his company’s market share using brand new products which have not been previously introduced to the market (Hirsch et al, 2020). Another theme is also finding the best method to fund expansion. While Dale Morris had a proven product, his desire for quick expansion led to a need for an influx of cash flow in 2002. The company’s objective in 2004 required another influx of cash in order to further expand the brand (Hirsch et al, 2020). 2. What are the major risks/returns explored in the case study? The major risk explored in this case study are how Morris’s company will fund its expansion. Should Nature Brothers choose this path of expansion, additional high-cost purchases would have to be made, including another filling machine, a high powered seaming machine, and the purchase of the land where the building is located (Hirsch et al, 2020). If the company chooses to expand based on new product offerings and make the additional purchases, it could produce almost three times the units it was presently producing (Hirsch, et al, 2020).
3. What are the key “take aways” or lessons learned in the case study? Morris’s previous issues prove that business expansion is a difficult and calculated process that must be carefully managed in order to avoid financial strain. Rapid expansion without prior stabilization in current markets can place difficult demands on a company’s infrastructure, inventory, and personnel. If not carefully managed, rapid expansion can deplete cash reserves which may lead to cash flow issues (Hirsch et al, 2020). 4. What are the Biblical or Christian implications represented in the case study? The Book of Proverbs is full of scripture that admonishes people to carefully consider the weight of a decision. The need to follow that admonishment is no different when business and entrepreneurship are involved. Proverbs 21:5 says, “ The plans of the diligent lead to profit as surely as haste leads to poverty (NIV, 2023). This scripture speaks to the virtue of diligence while emphasizing the value of hard work and patience. For the entrepreneur, it encourages individuals to live with integrity, perseverance, and careful consideration in their business affairs. This verse serves as a reminder of the biblical wisdom that upholds the importance of character and discipline in the pursuit of success and prosperity.
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References Hisrich, R., Peters, M., & Shepherd, D. (2020). Entrepreneurship (11th ed.). New York, NY: McGraw Hill Education. ISBN: 9781260043730 New International Version Bible . (2023). Bible Gateway. https://biblegateway.com