Terracycle: Case Study - Worm Boy Essay

‘Herewith appear to be the most pressing matters; one, infective and inexperienced entrepreneurial leadership. Two, the dialectic nature between front of house and back of house, and three, a lack of general training motivation and direction in original concept.’

We are dwelling in an age in which everything needs to be instant. Competition is stiff, hence, any company that needs to maximize sales must use all tactics to win the attention of the

The company has been functioning well in terms of generating profit and demand so far. However, there will be a 20% increase in demand for the next month of operations as predicted by management, and the production and supply management's problems may come as a problem they can no longer afford.

The roles of for-profit and nonprofit businesses in the economy are both organizations that rely on the factors of production which are the four fundamental resources. One of them is natural resources such as land, fresh water, wind and mineral deposits. The value of all natural resources tends to rise with high demand, low supply, or both. Another one is capital which includes machines, tools, buildings, information, and technology. Capital does not include money, although businesses use to money acquire, maintain, and upgrade their capital. In additional human resources consist of physical, intellectual, and creative contributions of everyone who works within an economy. Education and motivation have become progressively important to human resources. The last fundamental resources are entrepreneurship and they are people who take risk of

The company is looking to increase profitability and find a long-term solution to the inventory problem.

The purpose of this essay is to critically discuss 2 debate topics using both opposing sides, for and against, in order to create an academic argument for each topic. Debate 1 will argue the points of “Starting a small business is too risky or can anyone do it?” will be supported with references of journals and articles. Debate 2 will analyse the for and against argument for the topic of “To fail to plan is to plan to fail: you must plan” where academic articles will be used to back up each point made to for each side of the debate. Business has been a foundation in society for centuries but only within the past 10 years has the UK government promoted SME’s (small and medium enterprises) and encouraged the public to invest in creating a business with incentive grants and education programmes such as Business gateway and the hatchery.

I have always been interested in “doing my own thing” or, better known as, entrepreneurship. In high school, I would buy T-shirts, sweatshirts, and hats in bulk. I’d embroider little emblems on them and mark up the price by 100%. People at school would buy $1 shirts and pay $9 for my craftsmanship. However, I wanted bigger and better things. I channeled Andrew Carnegie in my approach to business: why just stop at my little venture when I could vertically integrate and market for myself? I decided to invest all my money in a new cause and thus, my own social media marketing company was born. The skills I’ve learned in starting my company is something that cannot be taught. I would relish the opportunity to grow and learn at an institution like The Stephen M. Ross School of Business that understands the importance of innovation and exploration.

After carefully reviewing the income statement, balances sheet and cash flow it seems that the company has a negative cash flow for 1998, so even before thinking about obtaining internal and external resources for long term investment, the company must assure resources for their own working capital.

As shown in the ratios chart, working capital has increased by $13M. Maturities of short-term investments and cash flow from operations are projected to be sufficient to sustain the company’s overall financing needs, including capital expenditures. The following corporate strategic plan identifies a project that needs financial backing.

On the other hand, the company has been growing constantly. In deed, according to the net income estimation for 2007 (see Table 7) the company increases its profits $25 thousand dollars more than the previous year. This is an evidence of how the company is been management and of its willing to grow year after year. Nevertheless, the first quarter of 2007 the working capital only has increased by $7 thousand dollars, which is the difference between the current assets and current liabilities but the importance of this is that according to the rotation on receivables and payable accounts, shown in Table 5 and 10, leads us to the conclusion that the company will have to pay its suppliers

The company revenue can be spent to purchase sustainable plant and equipment. Installation of equipment means better atmospheric appeal for stores.

The main objective of this semester was to learn various organizational behaviors that are conducted in a business environment outside the classroom; these would help us as students and as future business entrepreneurs. Throughout the semester, every week different professors came and gave us lectures. Each lecture was about different topic with professors of different departments. Along with the weekly lectures we also had an interactive session that gave us the opportunity to apply the lessons and techniques learnt in our professional and personal lives.

"We were looking for ways to make our business year-round, and we were involved in a lot of different things. We were involved in the scallop industry, storing boats in the winter, servicing engines. We even distributed bread," explains First.

secretary of education states that “high-quality education" that encourages "creativity, imagination, and ingenuity’”. It is true that thirty percentage of startup business failure reasons of “unbalanced Experience or Lack of Managerial Experience”, followed by “lack of Experiences in line of goods or services” is about eleven percentage. Interestingly, company competence occupied the highest rate of failure of 46% (Statistic Verification, Entrepreneur Weekly, Small Business Development Center, Bradley University, university of Tennessee Research). In addition, successful entrepreneur usually possess “highly motivated and willingness to take initiative to execute duties” and have appropriately responsible to their activities, decision, and company’s outcomes.

Our choices led to a constant increase in net income over the three years. Short term debt increase by approximately 100% percent but steadily reduced over the next three years. We were happy with the positive growth of the company and the fact that we were able to pay off most of the initial short term funding required by the increase in working capital requirement. Overall the current situation of the company in 2018 is good, although the total value created is less than 20% of that created in phase 1. From this we learned that the value of the firm can be significantly increased more through a reduction in working capital requirement than through increasing the firm’s sales and net income.