ib business- organix case study assignment

ib business- organix case study assignment - Organix Case...

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Organix Case Study Assignment Business Management – SL Introduction to organizations: 1. List and explain 3 external factors that affected the company. Legislation and regulation: The company had to wait for a long time to meet the organic quality standards and to be able to officially call their products “organic”. Economic Climate (or gov?): Since the prices of fruits and vegetables vary in terms of supply and demand, it was difficult for Max and Terry to predict revenues for the farm. As a result, they had to keep worker’s wages low. Social factors: While traveling, Terry noticed that there was an increasing interest in healthy, fresh, organic produce. Thus, starting an organic farm and restaurant would satisfy the growing health consciousness. Competition: When first opening up the restaurant and the barn shop, Max and Terry had to deal with the fact that there were a lot of other restaurants and organic shops that were better known and more popular. 2. Summarize four other ways that Max and Terry could have financed their new business. Max and Terry could have used personal savings or past earnings They could have taken loans from banks or other financial institutions They could also have gotten funds from investors They could have used credit cards to finance their business 3. List 3 stakeholders in the Organix company and explain how they might have been affected by the company’s reputation decline in 2007. Some of the stake holders that were affected by Organix’s reputation decline are: John Mugano (the company’s marketing manager), local customers, and the employees. John Mugano would have been affected by the company’s reputation decline because it would mean that he would have to work harder to bring company status back up. Also, since the company’s reputation went down the company was loosing a lot of its customers (thus causing lower revenue). As a result, John Mugano might have been given a lower salary/ lower wages because Max and Terry would not have been making enough money from the company to offer high employee wages. The Customers would also be affected by the company’s reputation decline because they expect good quality food and products from Organix. If the services at Organix were known to be unsatisfactory, customers would have to look for new Organic restaurants to eat at and
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This note was uploaded on 02/23/2012 for the course MGT 3375 taught by Professor Blanco during the Fall '11 term at Texas State.

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ib business- organix case study assignment - Organix Case...

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