You Make the Call-Situation 3

question 83

Essay

You Make the Call-Situation 3
Who hasn't heard of the energy drink Red Bull? It is the 900-pound gorilla in the growing energy drink market. But Hansen Natural Corporation, maker of Monster energy drink, is giving Red Bull a run for its money. The company reaches its core market of males aged 18 to 32 by flooding retailers with giant (16-ounce) cans of its various energy drink offerings, in essence super-sizing the much smaller cans sold by Red Bull. Its striking packaging and oversized cans are helping Monster make inroads in the growing energy drink market.
(Source: Roben Farzad, "Who's Afraid of the Shorts? Not Monster," Business
Week, November 28, 2006, p. 40.)

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operating costs, from its total revenues, indicating the company’s profit.

Dividends

A portion of a company’s earnings distributed to its shareholders as a reward for their investment.

ASPE

Accounting Standards for Private Enterprises; a set of accounting principles and standards in Canada designed for private companies.

IFRS

International Financial Reporting Standards, which are global standards for how particular types of transactions and other events should be reported in financial statements.