NatureView.docx - Professor Kinard BA 427 Nature View – Case Analysis Overview Nature View is a natural and organic yogurt manufacturing facility

NatureView.docx - Professor Kinard BA 427 Nature View –...

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Professor Kinard BA 427 Nature View – Case Analysis Overview Nature View is a natural and organic yogurt manufacturing facility based out Vermont. Founded in 1989, the key to Nature Views success was a combination of the founder’s original recipe, avoiding artificial agents such as sweeteners and thickeners other competitors use. Nature View claims a shelf life of 50 days compared to competitors 30 days, eliminating the factory size needed by other competitors to push product out before spoilage. In addition to Nature View’s unique business model, their hiring of a new CFO, Jim Wagner, in 1996 enabled the company to develop strong financial controls that brought stability and constant growth to the company. In 1997 Nature View received an investment from a venture capital per Wagner’s recommendation. By the year 2000, Nature View sold 8-ounce cups of 12 different flavors and 32-ounce cartons with vanilla or plain yogurt. Nature View was seeing revenues of $13,000,000 – a large increase from $100,000 ten years ago. However, the venture capital that had previously invested in Nature View wanted to cash in, leaving Nature View with three options to jump revenue from $13,000,000 to $20,000,000 and secure their next investment. Issue Identification
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With Nature Views previous investor cashing out, the company needed to find their next investor. To secure the best valuation, Nature Views needed to hit a revenue goal of $20,000,000 by 2001, a 53% increase in a matter of a year. Partnered with Christine Walker, Nature View’s management needed to determine the best option out of three possible options to meet their revenue goals. Two out of the three possible options include opening sales to supermarkets, which may hinder strong relationships with wholefood markets due to differences in unit prices as well put Nature Views finances at risk due to high initial marketing and slotting costs. Nature View’s management came up with three options: 1) Expand six SKU’s of Nature Views’ 8-ounce product line into one or two supermarkets. Suggested by vice president of sales, this strategy would help Nature Views obtain a strong presence on super market shelves while keeping marketing and slotting costs down. While the team acknowledge this benefit, there were questions surrounding the high competition among 8-ounce products the company would have to face. Namely
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