Study Document
...Ecommerce [calculations available in full version]
The calculations were done in Excel, except the payback period. This was done starting at -850 and then adding back each year's cash flow. Year 5 started with a deficit of 20, which amounts to 31 days worth of payback, in other words the payback will be complete by the end of January in Year 5.
2. Based on this analysis, the company should open the mine. There are several reasons why. First, there is no rule of thumb for Bullock with respect to payback period – and once the project has started it will be finished, so that is not really a great way to analyze the problem.
Second, IRR and MIRR are both above the cost of capital, which is assumed to be the company's hurdle rate of 12%. A project that returns above the cost of capital is normally a viable one.……
Study Document
...Ecommerce Sustainability
Literature Review
The Starbucks' Social Responsibility & Sustainability (2017) outlines the company's plan for each on several fronts. These are complex issues, and they receive some complexity in their treatment. Starbucks has four main areas of focus: community, ethical sourcing, environment, and diversity. Roughly, community and diversity would fall into the category of social responsibility, as these cover community service, youth action, the Starbucks Foundation, the Ethos Water Fund, and the company's diversity plan. On the sustainability front, there is the ethics of coffee, tea, cocoa and farmer support and this combines with water, energy, green building and climate change. The company's marketing of its approach contains a lot of high level discussion, but there are opportunities to take a deeper dive into specific initiatives and metrics. A lot of what Starbucks does with its approach focuses on things that matter most to the company (its supply chain, for……
References
Aguilera, R, Rupp, D., Williams, C. & Ganapathi, J. (2005) Putting the S back in corporate social responsibility: A multi-level theory of social change in organizations. Academy of Management Review. (2005). Retrieved November 4, 2017 from https://www.ideals.illinois.edu/bitstream/handle/2142/1768/TS_Aguilera.pdf?sequence=2&isAllowed=y
Banerjee, S. (2008) Corporate social responsibility: the good, bad and the ugly. Critical Sociology. Vol. 34 (1)
Blowfield, M., Frynas, J. (2005) Editorial setting new agendas: Critical perspectives on corporate social responsibility in the developing world. International Affairs. Vol. 81 (3) 499-513.
Brammer, S., Jackson, G. & Matten, D. (2012). Corporate social responsibility and institutional theory: New perspectives on private governance. Socio-Economic Review. Vol. 10 (2012) 3-28.
Campbell, J. (2007) Why would corporations behave in socially responsible ways? An institutional theory of corporate social responsibility The Academy of Management Review. Vol. 32 (3) 946-967.
Epstein, E. (1987) The corporate social policy process: Beyond business ethics, corporate social responsibility, and corporate social responsiveness. California Management Review. Vol. 29 (3) 99.
Friedman, M. (1970) The social responsibility of business is to increase its profits. New York Times Magazine. Retrieved November 4, 2017 from https://www.colorado.edu/studentgroups/libertarians/issues/friedman-soc-resp-business.html
Heningway, C. & Maclagan, P. (2004) Managers' personal values as drivers of corporate social responsibility. Journal of Business Ethics. Vol. 50 (1) 33-44.
Study Document
...Ecommerce Financial Plan
Startup Costs
Equipment
30,000
Supplies
8000
Property
10000
Legal
3000
Total Start Up
51,000
Monthly Expenses
Salaries
11000
Utilities, etc
1200
Insurance
500
Supplies
200
Total Monthly
12900
Profit & Loss Statement
Year
Revenues
199000
Cost of Goods Sold
119400
Gross Profit
79600
less
Monthly Expenses
154800
Capital/Startup Costs
51000
Profit (Loss)
-126200
So in the first year, the company will turn a loss as it tries to grow its business. It is worth noting that in the final month of the first year, the projected loss is just $900, so the company is expected to turn a profit by the time the second year begins, which is quite good for an unknown company trying to build a business around online distribution and secure major grocery contracts.
The profit and loss statement is the same as the cash flow statement – there is nothing in the business model……
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