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Case Study - Roxanne Quimby (Burt's Bee's)

In: Business and Management

Submitted By nedguy
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Yes ,Roxanne has indeed been very successful in her choices, starting with close to nothing but an Idea, $400, and two pairs of hands (her’s & Burt’s), she set off to establish a very lucrative business that generates a very sizeable profit (Vis-à-vis the nature of activity of her business), in it’s first year alone, Burt’s Bees Have generated over 700% of her initially projected revenue of $10,000, since revenue usually includes profit (before tax), anything above those $10,000 is pure profit (also before taxes). But she didn’t stop there, she kept finding ways to sell more, and to lower operational costs (while staying Debt-free) and in just five years have managed to multiply the business’ revenue over 37 folds!, Therefore, Based on the first annum alone, that’s one of the greatest examples of success in entrepreneurship,

Regarding whether Roxanne should relocate back to Main, stay in NC or just sell, cash-out and flee. Is this a real dilemma? At first glance, things look clear, Roxanne doesn’t want to let go of her and the company’s philosophies (from being an all-natural company to being perfectly autonomous by having to answer to Nobody) therefore returning to Main seems like the best option, but this is a business course so I will use a more analytical/realistic approach.

First I’d like to start by eliminating option number three: selling the business for 3 million dollars, so that Roxanne could travel to Asia in order to pursue her altruistic dreams which consist of helping aspiring entrepreneurs, although this sounds very nice, and is indeed a touching initiative, the subject matter is entrepreneurship, and how to make better decisions for the sake of the enterprise rather than flying away once things become a bit challenging- which as discussed in class, isn’t characteristic of “real entrepreneurs”, now lets analyze the Main vs. North Carolina…...

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