Honest Tea- Entre Finance.docx - Case#5 Honest Tea 1.How is Honest Tea doing Give me SPECIFICS Considering that Honest Tea's sales increased 349 between

Honest Tea- Entre Finance.docx - Case#5 Honest Tea 1.How is...

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Case #5 Honest Tea 1.How is Honest Tea doing? Give me SPECIFICS. Considering that Honest Tea's sales increased 349% between 1998 and 1999, I would say that they are doing fairly well at the beginning. Then later on in December of 2000, there was a cold spell that resulted from the flattening in sales. This could be that they invested loads of money in R&D,SG&A, and Marketing activities, which also explains their net loss. But although they did invest in these certain activities and it led to a net loss, they were taking the right steps for a growing company, and also allowed them to take advantage of the growing market. One of their concerns would be their cost of goods sold, which was 60% in 1999 and 58% in 2000, that’s more than half of their profit. 2.What does Honest Tea need to do to become a successful company? In order for Honest Company to become a successful company, they must continue how they’re currently operating because they started off well and continue to grow and gain skills in the market. What also put them on an advantage was that they were making a
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