You Make the Call-Situation 3

question 42

Essay

You Make the Call-Situation 3
John Martin and John Rose decided to start a new business to manufacture noncarbonated soft drinks. They believed that their location in East Texas, close to high quality water, would give them a competitive edge. Although Martin and Rose had never worked together, Martin had 17 years of experience in the soft drink industry. Rose had recently sold his firm and had funds to help finance the venture; however, the partners needed to raise additional money from outside investors. Both men were excited about the opportunity and spent almost 18 months developing their business plan. The first paragraph of their executive summary reflected their excitement:
The "New Age" beverage market is the result of a spectacular boom in demand for drinks with nutritional value from environmentally safe ingredients and waters that come from deep, clear springs free of chemicals and pollutants. Argon Beverage Corporation will produce and market a full line of sparkling fruit drinks, flavored waters, and sports drinks that are of the highest quality and purity. These drinks have the same delicious taste appeal as soft drinks while using the most healthful fruit juices, natural sugars, and the purest spring water, the hallmark of the "New Age" drink market.
With the help of a well-developed plan, the two men were successful in raising the necessary capital to begin their business. They leased facilities and started production. However, after almost two years, the plan's goals were not being met. There were cost overruns, and profits were not nearly up to expectations.

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Definitions:

Lack of Emotions

A condition or state where an individual experiences reduced emotional responses or feels emotionally numb.

Overweight

A condition characterized by having more body fat than is optimally healthy, often measured by a body mass index (BMI) between 25 and 29.9.

Insulin

A hormone produced by the pancreas that regulates blood sugar levels by facilitating the uptake of glucose into tissues.

Glucose

A basic glucose form essential for energy in living beings and a component found in several carbohydrate types.