Busn318 question | English homework help

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At the end of Chapter 6, read Situation 3 and using the questions as a guide, discuss recommendations.

At the end of Chapter 7, read Situation 1 and using the questions as a guide, discuss recommendations.

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CH. 6 Situation 3 

situatiOn 3

John Martin and John Rose decided to start a new

business to manufacture noncarbonated soft drinks.

They believed that their location, close to high-quality

water, would give them a competitive edge. Although

Martin and Rose had never worked together, Martin

had 17 years of experience in the soft drink industry.

Rose had recently sold his fi rm and had funds to help

fi nance the venture; however, the partners needed to

raise additional money from outside investors. Both men

were excited about the opportunity and spent almost

18 months developing their business plan. The fi rst

paragraph of their executive summary refl ected their


The “New Age” beverage market is the result of a

spectacular boom in demand for drinks with nutritional

value from environmentally safe ingredients

and waters that come from deep, clear springs free of

chemicals and pollutants. Argon Beverage Corporation

will produce and market a full line of sparkling fruit

drinks, fl avored waters, and sports drinks that are of

the highest quality and purity. These drinks have the

same delicious taste appeal as soft drinks while using

the most healthful fruit juices, natural sugars, and the

purest spring water, the hallmark of the “New Age”

drink market.

With the help of a well-developed plan, the two men were

successful in raising the necessary capital to begin their

business. They leased facilities and started production.

However, after almost two years, the plan’s goals were not

being met. There were cost overruns, and profi ts were not

nearly up to expectations.

Question 1 What problems might have contributed to the

fi rm’s poor performance?

Question 2 Although several problems were encountered

in implementing the business plan, the primary reason

for the low profi ts turned out to be embezzlement. Martin

was diverting company resources for personal use, even

using some of the construction materials purchased by the

company to build his own house. What could Rose have

done to avoid this situation? What are his options after


the fact?


CH.7 Situation 1 


SituatiOn 1

Tina and George Showalter opened the Blonde Bear Bed

& Breakfast in Kenai, Alaska, in 2005. According to Tina,

“Our first summer, we did great with word-of-mouth

advertising, and then we got involved in the Internet,

and it has pretty much exploded from there.” In

this town with a population of under 10,000, 50

businesses signed up with MerchantCircle.com, a local

business listing service. The site provides business

descriptions, reviews, blogs, coupons, maps, and

links among the companies. The cross-promotional

and networking benefits have proven valuable to the


businesses on the site

Question 1 What businesses do you think would

benefit most from being on a local website in your


Question 2 How do businesses that provide such local


Web services diff er from newspapers and Yellow Pages?

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