Part One: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.You MUST post your work here as well as upload your homework assignment to the Assignment page and your student folder.CH. 6 Situation 3situatiOn 3John Martin and John Rose decided to start a newbusiness to manufacture noncarbonated soft drinks.They believed that their location, close to high-qualitywater, would give them a competitive edge. AlthoughMartin and Rose had never worked together, Martinhad 17 years of experience in the soft drink industry.Rose had recently sold his fi rm and had funds to helpfi nance the venture; however, the partners needed toraise additional money from outside investors. Both menwere excited about the opportunity and spent almost18 months developing their business plan. The fi rstparagraph of their executive summary refl ected theirexcitement:The “New Age” beverage market is the result of aspectacular boom in demand for drinks with nutritionalvalue from environmentally safe ingredientsand waters that come from deep, clear springs free ofchemicals and pollutants. Argon Beverage Corporationwill produce and market a full line of sparkling fruitdrinks, fl avored waters, and sports drinks that are ofthe highest quality and purity. These drinks have thesame delicious taste appeal as soft drinks while usingthe most healthful fruit juices, natural sugars, and thepurest spring water, the hallmark of the “New Age”drink market.With the help of a well-developed plan, the two men weresuccessful in raising the necessary capital to begin theirbusiness. They leased facilities and started production.However, after almost two years, the plan’s goals were notbeing met. There were cost overruns, and profi ts were notnearly up to expectations.Question 1 What problems might have contributed to thefi rm’s poor performance?Question 2 Although several problems were encounteredin implementing the business plan, the primary reasonfor the low profi ts turned out to be embezzlement. Martinwas diverting company resources for personal use, evenusing some of the construction materials purchased by thecompany to build his own house. What could Rose havedone to avoid this situation? What are his options afterthe fact?CH.7 Situation 1SituatiOn 1Tina 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-mouthadvertising, and then we got involved in the Internet,and it has pretty much exploded from there.” Inthis town with a population of under 10,000, 50businesses signed up with MerchantCircle.com, a localbusiness listing service. The site provides businessdescriptions, reviews, blogs, coupons, maps, andlinks among the companies. The cross-promotionaland networking benefits have proven valuable to thebusinesses on the siteQuestion 1 What businesses do you think wouldbenefit most from being on a local website in yourhometown?Question 2 How do businesses that provide such localWeb services diff er from newspapers and Yellow Pages?
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