Burt's Bees Case Analysis

1770 Words Nov 28th, 2012 8 Pages
Introduction Burt’s Bees case is a follow up for the case about Roxanne Quimby, an entrepreneur who started Burt’s Bees together with Burt Shavitz and managed to create a considerably big company almost from nothing. The objective of the first case was to make a suggestion whether the company should relocate its production from Maine to North Carolina and use its full potential, or stay in Maine and operate with limited growth potential. As the second case indicates, it is obvious that Quimby decided to expand company’s operations by moving to North Carolina while the company’s revenues were projected to be between $6 million and $8 million. Quimby’s current intentions are to expand its operations to a level that is going to allow Burt’s …show more content…
In my opinion, the overall purpose of having a retail store is that the company can connect to its customers in a better way and provide them with a service that is superior to the one they receive while shopping at a retail store that sells many different brands. Even though having its own retail stores has many advantages, there are also some shortcomings that have to be considered before entering the market. One of the most important factors that should be considered when making such decisions is whether the benefits of entering the market are going to outweigh the costs associated with the decision. This means that Quimby should perform an industry analysis before entering the retail market and decide whether the company would benefit from opening its own retail stores. Another factor that needs to be considered in addition to the cost is the risk associated with any large capital project. Currently, the company was able to minimize its risks by selling its goods through other retailers while a decision to create its own retail stores would add risk to the company. When all costs and risks are identified Quimby should weigh them against potential benefits and decide whether it would be good for the company to invest into new retail stores. Industry analysis is a tool that is going to help Quimby assess whether the retail industry is profitable enough for the company and whether it
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