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Do your analysis of the situation and provide alternative scenarios and their outcomes.


1. Describe the analytical approach (for example if you are doing corporate valuation) –what method you are using, where is the information coming from and what assumptions are being made to undertake the analysis. Justify the chosen approach.
2. Show the actual analytical model and findings (wherever applicable).
3. Finally, what your analytical findings are and how they support your recommendation. Describe various alternatives and their implications for the final decision.

From the alternatives above choose the best alternative as your final recommendation.
1. Justify as to why this is the best alternative.
2. Specify the dimension/objective based on w

Strategic Framework

Introduction

The main issue discussed in the case study Burt’s Bees investigates sustainability initiatives along with videos which provide details regarding the history of a company, the implementation of the sustainable goals, and leadership. Therefore, the company should focus on the origin to 1984 when Burt Shavitz and Roxanne Quinbly joined hands to sell the candles made of beeswax and currently provides a variety of hair care, products for bath, and the natural skin (Marquis, 2010). For this reason, the case is at the turning point for the Burt’s Bees after the Clorox Company acquisition after two years. The decision of the problem solved in the case study is that Burt’s aims to ensure the truth is observed based on the mission as well as values and morals of the core founders of the company (Drewniany&Jewler, 2013). The company holds that there should be sustainability; commitments to the products, as well as practices which are earth friendly should be embraced. The tension concerning the leaders and the company to deliver positive outcomes socially and financially is examined.

Strategic Framework

When examining the strategic framework of the case study, the market environmental factors, the case setting, and dynamic forces which concern the main issues are analyzed. To begin with the market environmental factors, Burt’s Bees had set 2020 goals which indicated that there should be no waste of products. On the other hand, the employees showed a one hundred percent involvement, the natural products, the biodegradable packaging, Post-Consumer Recycled or the PCR, the renewable as well as the leadership energy regarding the environmental design. The organization set the goals and begun working towards fulfilling them and also, estimating the waste produced by the company. The result was forty tons was which were produced by the company and thrown in the fields. Based on the market environment, the organization aimed to minimize the amount of the waste as well as preserve the energy (DuBois & Dubois, 2012). The case study shows that the Burt’s Bees continues being at the leading edge due to the environmental innovation which is evident. The setting of the case study shows that the Burt’s Bees operates on a set of rules as the CEO John Replogie indicates. The setting shows that the company employs the model of Greater Good Business. Within the model, the goals on sustainability, the measure of the progress, and collection of the baseline metrics are conducted. The company is impacted by the dynamic forces such as the political, legal, and manpower which influences the decision-making (Mendoza &Ventura, 2012). Burt’s Bees needs to expand globally hence the political and legal forces require it to agree with other countries. The manpower forces require the company to hire more individuals who would help in managing the workload. For that reason, the company can fulfill the set standards to achieve the endeavors based on the social and environmental developments.

Analysis

Analysis

My analysis of the case study provides alternative scenarios as well as the outcomes as outlined in the paper. Corporate valuation is used as the analytical approach to examine the procedures set to measure the market and the economic value of Burt’s Bees. By conducting an in-depth numerical analysis for the corporate valuation for Burt’s Bees, the organization uses machine which maintains four decimals. For instance an example of loss significance in the company is provided in the calculations below.

                           

Therefore the desired value for the significant loss is 11.174755.

Using the corporate valuation, a Discounted Cash Flow, (DCF) has been conducted for the Burt’s Bees. The DCF is used to measure the opportunities of investment that the Burt’s Bees should exercise. Based on the future projections of Burt’s Bees, the discounts helps to reach the present measure $23 million. To calculate the DCF for Burt’s Bees, the Enterprise Value or the EV should be calculated. The TEV or Total Enterprise Value should also be obtained. Finally, using the DCF consider the annual cash flow of the company as X, multiply with the growth rate. Calculate the NPV of the company cash flow and divide with the rate of discount. Below is an example of how the DCF can be used to in the corporate valuation of Burt’s Bees.

DCF is calculated as:

                                           

Therefore having some values from the Burt’s Bees on a table as shown below,

Year 1

= 50 * 1.10

55

Year 2

= 55 * 1.10

60.5

Year 3


= 60.5 * 1.05

63.73

Year 4

= 63.53 * 1.05

66.70

Year 5


= 66.70 * 1.05

70.3

The Terminal Value


= 70.04 (1.03) / (0.08 - 0.03)

1,442.75

Note that the terminal value =Annual projected cash flow (1+Growth rate in the Long-term)/(Discount Rate-Long-term Growth Rate)

Therefore the Burt’s Bees DCF= (55 / 1.081) + (60.5 / 1.082)+  (63.53 / 1.083)+  (66.70 / 1.084)+  (70.04 / 1.085)+ (1,442.75 / 1.085)= 1231.83

Therefore the estimated corporate value for Burt’s Bees is $1.231 billion.

The information is obtained from the market evaluation which shows the market participants and how the company traces its roots selling the candles made of beeswax. The assumptions associated with the corporate valuation which is an analytical approach are based on the incomes made by the company. The approach assumes that the business individuals provide alternatives in the investment opportunities. Another assumption is that alternative earning potentials as well as the risk profiles are involved in the business investment. Finally, it is assumed that the corporate value is defined as the risk, timing, and the number of the earnings acquired from the company investments. Therefore, the corporate valuation stands out amongst the analytical approaches hence it would be effective at the Burt’s Bees. The actual analytical model called the Greater Good outlines the principles that should be employed by the company. The findings are that the sustainability goals, the measure of processes, and the baseline metrics built momentum for the company. These findings support the recommendation that the company needs to implement sustainable goals to be successful.

There are various alternatives which have implications in the company’s final decision-making. The first alternative is that Burt’s Bees needs to stay within the Niche market. The implication is that the company will raise the customer base by attracting those who are loyal. It is clear from the scenario that the company began increasing the customer base through retailing of the gift stores (Mirvis & Marks, 2003). The Parrish’s 2004 confirm that the niche market plan increases the sale for every company. The second alternative involves the joint venture entering the mass market. Mirvis & Marks, 2003 provides a scenario that the small firms need to join with the large companies to attain credibility. The implication for the joint venture is that the company will attain credibility and increase the sales for Beeswax candles.

The best alternative is rebranded-strengthen awareness to enter the mass market. This is because rebranding strategies increases and strengthens the company in the long-term;hence it can be expanded to enter the mass market (Sadgrove, 2016). The dimension of the strategy is to increase the value and profits for the company since it will compete in the mass market effectively. Burt’s Bees will be required to store the measures regarding the performance, as well as implement the strategy in the long-term. The current clients need to be maintained through enhancing the brand’s image.

The alternative rebranded-strengthen awareness to enter the mass market is associated with various limitations and assumptions. The significant limitation is that the Burt’s Bees customers in the non-buyer category will need to be introduced into the strategy (Nguyen Thanh, 2014). The company will increase awareness concerning the rebranding hence many costs will be incurred. The competition also increases hence the internal and the external forces impact the business (Radebaugh, 2014). Also, Burt’s Bees will be risking in implementing the strategy since they will not be sure if there will be additional customers. The organization will need to spend time in the new strategy alternative the rebranded-strengthen awareness to enter the mass market to achieve market penetration. The assumptions are that there exists the product portfolio within the company since the Burt’s Bees products are diversified. Therefore the product portfolio will minimize the customer’s confusion (Sarooghi, Libaers & Burkemper, 2015). The second assumption is that Burt’s Bees would produce natural products which would attract a majority of the individuals. The final assumption is that Burt’s Bees have loyal customers. The customers are assumed that they will be passionate regarding the success of the company in the future. Therefore, Burt’s Bees needs to decide on the future strategy for the growth of the company as well as maintain the loyal customers.

Conclusion:

In conclusion, this paper evaluates the Burt’s Bees case study. The main issue which concerns the implementation of the sustainable goals and leadership are explored. A strategic framework which provides information regarding the setting of the case, market environmental elements, and the dynamic forces impacting the business are also outlined in the paper. Through the market valuation as an analytical approach provides alternative scenarios with their implications and outcomes (Parrish, 2010). Finally, the best strategy is explored which is recommended for the Burt’s Bees. It is expected that Burt’s Bees produces natural products with the aim of protecting the consumers as well as maximizing their well-being.  The company is obliged to trace its roots 1984 to facilitate the sale of candles which are made of wax.

References:

Drewniany, B. L., & Jewler, A. J. (2013). Creative strategy in advertising. Cengage Learning.

DuBois, C. L., & Dubois, D. A. (2012). Strategic HRM as social design for environmental sustainability in organization. Human Resource Management, 51(6), 799-826.

Marquis, Christopher 2010. "Burt's Bees: Balancing Growth and Sustainability (Multimedia)." Harvard Business School Multimedia/Video Case 410-704,

Mendoza, A., & Ventura, J. A. (2012). Analytical models for supplier selection and order quantity allocation. Applied Mathematical Modelling, 36(8), 3826-3835.

Mirvis, P. H., & Marks, M. L. (2003). Managing the merger: Making it work. Beard Books.

Nguyen Thanh, T. (2014). Branding and Integrating Marketing Communications to Strengthen Brand: case: Bank X.

Parrish, E. (2010). Retailers' use of niche marketing in product development. Journal of Fashion Marketing and Management: An International Journal, 14(4), 546-561.

Radebaugh, L. H. (2014). Environmental factors influencing the development of accounting objectives, standards and practices in Peru. The international Journal of Accounting Education and Research. Urbana, 11(1), 39-56.

Sadgrove, K. (2016). The complete guide to business risk management. Routledge.

Sarooghi, H., Libaers, D., & Burkemper, A. (2015). Examining the relationship between creativity and innovation: A meta-analysis of organizational, cultural, and environmental factors. Journal of business venturing, 30(5), 714-731.

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My Assignment Help (2021) Burt’s Bees Essay: Sustainability Goals And Leadership Study. [Online]. Available from: https://myassignmenthelp.com/free-samples/mkt101a-marketing-fundamentals/applied-mathematical-modelling.html
[Accessed 05 March 2024].

My Assignment Help. 'Burt’s Bees Essay: Sustainability Goals And Leadership Study.' (My Assignment Help, 2021) <https://myassignmenthelp.com/free-samples/mkt101a-marketing-fundamentals/applied-mathematical-modelling.html> accessed 05 March 2024.

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