CAPSTONE CASE 1: ECO-PRODUCTS, INC.
End-of-Case Assignments: Suggested Discussions and Analyses
A. Describe Eco-Products’ early history (1990 through 2003). Would you view the firm during that period as being a life-style business, an entrepreneurial venture, or? Why?
Steve Savage and his father founded the company in 1990 with the intent to provide eco-friendly paper and janitorial supplies. They chose to locate the business in Boulder, Colorado, a community known for its support of environmental initiatives and natural products. However, consumers were slow to adopt eco-friendly products. Margins were low and salaries were small. Friends and family supplied funds for business operations. This early history was
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Note: we are using end-of-year balance sheet items (rather than averages) in order to have three comparison years and to recognize that the firm’s business model (from a retailer of products manufactured by others to a manufacturer/wholesaler of eco-friendly products.
2005 COGS/Revenues = 2,584,326/3,649,799 = .708 = 70.8%
2006 COGS/Revenues = 3,684,492/5,751,787 = .641 = 64.1%
2007 COGS/Revenues = 7,726,455/10,867,104 = .711 = 71.1%
2005 Gross Profit Margin = 1,065,473/3,649,799 = .292 = 29.2%
2006 Gross Profit Margin = 2,067,295/5,751,787 = .359 = 35.9%%
2007 Gross Profit Margin = 3,140,649/10,867,104 = .289 = 28.9%
2005 Operating Profit Margin = 239,519/3,649,799 = .066 = 6.6%
2006 Operating Profit Margin = 98,333/5,751,787 = .017 = 1.7%
2007 Operating Profit Margin = 128,443/10,867,104 = .012 = 1.2%
2005 Net Profit Margin = 237,336/3,649,799 = .065 = 6.5%
2006 Net Profit Margin = 41,946/5,751,787 = .007 = 0.7%
2007 Net Profit Margin = -36,199/10,867,104 = -.003 = -0.3%
2005 Sales to Total Assets = 3,649,799/795,465 = 4.588 times
2006 Sales to Total Assets = 5,751,787/2,103,478 = 2.734 times
2007 Sales to Total Assets = 10,867,104/5,647,015 = 1.924 times
2005 Return on Assets = 237,336/795,465 = .298 = 29.8%
2006 Return on Assets = 41,946/2,103,478 = .020 = 2.0%
2007 Return on Assets = -36,199/5,647,015 = -.006 = -0.6%
I was immediately intrigued from the beginning of Food, Inc. There was interesting and valuable information brought up during the film. Many people do not think about where their food comes from. I believe that if people were to know where their food comes from, they would not want to eat it. There are 47,000 products at a grocery store. But, Food, Inc. implies that this is in fact an illusion because all of them are made with the same crops. The fact that there are only a few multi-national corporations that control all of the crops and meat production is a huge surprise. I believe that each person in society would be absolutely shocked if they were to watch this documentary.
3. What environmental forces have created challenges for Mattel as it continues expansion into global markets? Which markets have created opportunities?
Financial measures in the Triple Bottom Line accounting framework should follow the common financial accounting guidelines, Generally Accepted Accounting Principle’s, and International Financial Reporting Standard’s. The financial measures in the Triple Bottom Line accounting framework however are not under as much scrutiny as the Environmental and Social measures, though there is debate over certain ethical aspects of Financial Accounting as a well. Financial Accounting in a business is usually not changed in a dramatic way, when a company decides to adopt the TBL framework. Some changes that financial records might reflect include an increase in expenses related to environmental or social care, a decrease in expenses that reflect a detriment to the society or environment (i.e. Transportation Expense), a possible increase in revenues as a result of customer support of the adoption of TBL.
Castillo Products improved from an operating loss in 2009 to profitability in 2010. The net profit margin went from negative to positive. The asset turnover (total-sales-to-total-assets)
Question 1. 1. (TCO 3) Which of the following is an example of a lifestyle business? (Points : 5)
The company that I have chosen for this assignment and project is Lowe 's Companies, Inc. Lowes strongly focuses on the mission statement “helping the customers to improve their homes”. The company started in 1921 as a small store in North Carolina. Great success and high demand of Lowe’s products led to an increase in the number of stores. By 1955, there were five more functional stores. Rapid growth took place around 1960s. Carl Buchan was one of the founders of Lowe’s, who died in year 1960. Exactly a year later in 1961, the company went public. This was the time when Lowe’s was given its name. Initially it was called North Wilkesboro Hardware Company. By 1979, Lowe’s established more than 50 stores in the United
Green Brick Partners, Inc. is a publicly traded company listed on The NASDAQ Capital Market under the symbol "GRBK". Green Brick Partner invests in a wide variety of real estate investments. Green Brick Partners is a real estate operator sophisticated in the purchase and development of land for developmental use, construction lending and home building operations. JBGL Capital (land development business) and JBGL Builder Finance (builder operations business) and their associates are established in all aspects of the homebuilding process. Along with land acquisition and development, entitlements, design, construction, marketing and sales of various residential projects in master planned communities, primarily in the metropolitan areas of Dallas-Fort Worth and Atlanta. ("Welcome to", n.d)
4. What’s your interpretation of the company’s philosophy posted prominently over the door of its design studio? What does it say about innovation?
Pure Eco Inc. is an insulation contractor. Their offices are located in Encino, California and Chatsworth, California. Their varied list of insulation services includes attic and ceiling insulation, walls insulation, crawl space insulation, radiant barrier, and soundproof insulation. At Pure Eco Inc., they make sure their customer’s home is being maximized for efficiency with insulation that makes a difference. Pure Eco Inc. offers free home estimate.
Conversely, looking at the income statement for PMWL, operating income shows healthy gains of $45,862, which means the operating expenses are significantly lower in comparison to AWBL’s. However, PMWL’s cost of goods sold appear abnormally high, which makes an investor question whether this company is at it’s maturity phase in the product life cycle, and how much additional capital is necessary to bring this figure down to a number that leverages economies of scale and allows for profit maximization.
Burt’s Bees was founded in Maine by Burt Shavitz their products of lip balm and other natural creams. Roxanne and Burt are the owners of the organization. They believed in the natural lifestyle, and because of that they began the Burt’s Bees product line. The main goal was to be able to provide the consumers with affordable organic beauty products. Burt’s Bees uses all natural products ingredients in their toothpaste, deodorant and other health products. Burt’s Bees is known for their hippie face on their products. Burt’s Bees was known for producing natural products. The organization only produces items that are considered healthy. According to Todd, 2004, “Both Burt's Bees and Tom's of Maine are small companies which do not operate their own retail outlets, but sell many of their products in natural and organic groceries around the country.” Burt's Bees provides organic beauty products by only using consumer and environmentally friendly resources. The company informs the buyers of their mission to reduce waste and plastic.
IntroductionEnager Industries Ltd (Enager) was a relatively young company whom manufactured and produced products/services within three divisions- Consumer Products, Industrial Products and Professional Services. Consumer Products, the oldest among the three divisions in Enager, designed, manufactured and marketed a line of houseware items. Industrial Products built one -of -a- kind machine tools to customer specifications. Professional Services, the newest among the three, provided several kinds of engineering services and this division had grown rapidly because of its capability to perform "environmental impact" studies. Each division was treated as an essentially independent company but all new project proposals requiring investment in
Otto Environmental Systems North America, Inc. is a plastic manufacturer of waste and recycling containers, we are tier one supplier for GM and Electrolux. Our mission is to provide innovative products created for today’s collection needs and customized services developed with technology and experience.
a) Think about the life stories of our three informants and the quotes regarding the brands they use .Is it appropriate to say that these consumers have formed relationships with the brands they know and use? In what ways yes, in what ways no?
6. Has the company created and sustained its corporate competitive advantage? Explain the sources of sustainability for Tyco.