The following document will provide a case analysis for “Want Beverages” as found within the New Venture Creation textbook.
The start up company presented in this case, Want Beverages, portrays several strengths. Both entrepreneurs, Bill and Angela, are able to use their work experience from Spellbound to develop a thorough understanding of their target market, young active sports drinkers. In addition, they have participated in multiple sporting events that have provided the business owners with an understanding of the Canadian action sports industry. Want Beverages has a history of promotional efforts that have created a significant brand image. ...view middle of the document...
Due to the fact that they sell to their consumers primarily through retail outlets, the payment terms (30/60) tend to require more cash upfront. When looking at the income statement, it appears that they are not selling their product at the right price (selling to retailers for only $1.25). This results in a profit margin of only 52 cents. Due to the expenses accumulated Want Beverages is operating at a net loss and neither entrepreneurs have been able to pay themselves a salary from the business operations. This lack of profit can be detrimental to the future of the business. Another weakness is the fact that though they have minimal led time required for manufacturing, the cost of production is higher than it would be if they were able to order in larger shipments.
There are several goals that Bill and Angela have for Want Beverages. Their primary goal is to become the preferred brand that active youth will want to drink when they require a beverage. In addition, they wish that Want Beverages would become a strong, profitable business that could support them and their young family without depending on the previous clothing brands that they had represented in the past.
Want Beverages can definitely go after...