1. Inventory management and entrepreneurship:
- SW's inventory chart shows reorder levels and minimum stock levels over seven months.
- Barriers to entrepreneurship include high production costs and competition, such as OS’s entry into the market.
- Venture capital offer analysis: $100,000 for 40% equity, potential to scale with a facility producing 50,000 units/month.
2. Business finance concepts:
- Working capital defined as current assets minus current liabilities; critical for operational liquidity.
- Costs of inventory holding: storage, obsolescence, and capital tied up in stock.
3. Fizzy Drinks (FD) case:
- Competitive market with 19 rival brands; loss of market leader status to TR due to reduced ingredient quality and marketing budget cuts.
- Financial data: maximum capacity 100m units, operating at 60%, fixed costs $15m, and variable costs $1/unit.
4. Productivity and market research:
- Productivity drop impacts include reduced output, employee morale decline, and higher per-unit costs.
- Importance of primary market research to identify evolving consumer preferences and regain market position.
5. Strategic evaluations:
- SW’s growth potential vs. equity dilution by accepting venture capital.
- FD's reliance on market research for recovering brand loyalty and competitive edge while addressing employee retention and morale issues.
Laura Bellini
Classification: Paper 2
Page count: 4
Viewed: 454
Last update: 6 months ago
Crash report