Roxanne Quimby met Burt Shavitz at his roadside honey stand in Maine. Twenty years later, a multimillion-dollar business is thriving. That business is Burt's Bees, the top all-natural, earth-friendly manufacturer of personal care products. Small businesses are found in nearly every industry, but retailing and wholesaling, manufacturing, and high technology are especially attractive to entrepreneurs because they are relatively easy to enter and require low initial financing. Small-business owners also find it easier to focus on a specific group of consumers in these fields than in others, and new firms in these industries suffer less from heavy competition, at least in the early stages, than do established firms. Read the case and answer the questions that follow. Part I: In 1984, Roxanne Quimby was on her way to her waitressing job when she decided to stop at a roadside stand to buy some honey from beekeeper Burt Shavitz. She soon joined forces with Shavitz, and they began marketing candles and other products out of the beeswax. Quimby made homemade labels and traveled to crafts fairs throughout Maine. By 1993, Burt's Bees was bringing in $ 3 million per year in sales, and over the next 13 years, $ 125 million in total sales. These days, Burt's Bees beauty and baby products are distributed through 20,000 retail stores and natural food stores, as well as online. They do not use advertising, relying instead on word-of-mouth promotion from satisfied customers and extensive sampling effort, giving customers firsthand experience with the products. Part II: When Roxanne Quimby first met Burt Shavitz, she was living a self-sustaining and uncompromising lifestyle in the Maine woods with her three children. While building Burt's Bees, Quimby applied her philosophies and values to the growing company – for example, eschewing wasteful packaging wherever possible, using the best ingredients available, and walking away from potentially lucrative discount store sales when a chain store company asked for concessions that violated her environmental sensibilities. Recently, the company signed with PETA (People for the Ethical Treatment of Animals) and is certifying with Leaping Bunny (The Coalition for Consumer Information on Cosmetics) against animal testing. Part III: In 2003, Quimby sold 80 percent of Burt's Bees to New York investment firm AEA Investors for $ 179 million, although she retains 20 percent. Quimby has been using the proceeds toward creating a national park in her beloved Maine. Burt's Bees is now the top all-natural, earth friendly manufacturer of personal care products and has been honored with a top spot in the Triangles Business Journal Fast 50 Awards. Which of the following best represents Quimby's approach to starting the business Burt's Bees? Started from scratch Purchased a franchise Purchased an existing business Began distributing from a wholesale company Began marketing a product someone else invented
Roxanne Quimby met Burt Shavitz at his roadside honey stand in Maine. Twenty years later, a multimillion-dollar business is thriving. That business is Burt's Bees, the top all-natural, earth-friendly manufacturer of personal care products.
Small businesses are found in nearly every industry, but retailing and wholesaling, manufacturing, and high technology are especially attractive to entrepreneurs because they are relatively easy to enter and require low initial financing. Small-business owners also find it easier to focus on a specific group of consumers in these fields than in others, and new firms in these industries suffer less from heavy competition, at least in the early stages, than do established firms.
Read the case and answer the questions that follow.
Part I: In 1984, Roxanne Quimby was on her way to her waitressing job when she decided to stop at a roadside stand to buy some honey from beekeeper Burt Shavitz. She soon joined forces with Shavitz, and they began marketing candles and other products out of the beeswax. Quimby made homemade labels and traveled to crafts fairs throughout Maine. By 1993, Burt's Bees was bringing in $ 3 million per year in sales, and over the next 13 years, $ 125 million in total sales. These days, Burt's Bees beauty and baby products are distributed through 20,000 retail stores and natural food stores, as well as online. They do not use advertising, relying instead on word-of-mouth promotion from satisfied customers and extensive sampling effort, giving customers firsthand experience with the products.
Part II: When Roxanne Quimby first met Burt Shavitz, she was living a self-sustaining and uncompromising lifestyle in the Maine woods with her three children. While building Burt's Bees, Quimby applied her philosophies and values to the growing company – for example, eschewing wasteful packaging wherever possible, using the best ingredients available, and walking away from potentially lucrative discount store sales when a chain store company asked for concessions that violated her environmental sensibilities. Recently, the company signed with PETA (People for the Ethical Treatment of Animals) and is certifying with Leaping Bunny (The Coalition for Consumer Information on Cosmetics) against animal testing.
Part III: In 2003, Quimby sold 80 percent of Burt's Bees to New York investment firm AEA Investors for $ 179 million, although she retains 20 percent. Quimby has been using the proceeds toward creating a national park in her beloved Maine. Burt's Bees is now the top all-natural, earth friendly manufacturer of personal care products and has been honored with a top spot in the Triangles Business Journal Fast 50 Awards.
Which of the following best represents Quimby's approach to starting the business Burt's Bees?
-
Started from scratch
-
Purchased a franchise
-
Purchased an existing business
-
Began distributing from a wholesale company
-
Began marketing a product someone else invented
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