Organic Farming and Ceres Essay - 1614 Words

Ceres Gardening Ceres Gardening Company Case Study 1. How has the company grown? What is its basic strategy + how has it evolved? What have been the key factors in the companys growth? The growth of the company has been fueled by the market demand growth in organic products. Ceres increased their revenues by over 75% in just five years, while growing profits by over 25% (based on Exhibits 2, 3 4). Ceres’s basic strategy started with its founder, Jonathan Wydown, to promote sustainable organic gardens and landscapes to environmentally conscious consumers. Mr. Wydown has been a proponent of soil preservation, biodiversity, and natural fertilizers and pest control. Mr. Wydown was confident that the same principles behind†¦show more content†¦* Debt Equity shows Ceres’ financial leverage and its aggressive posture in financing its growth with debt. The company could potentially generate more earnings than it would have without this outside financing. This indicates that even with Ceres’ expansion of distribution channels, extension of payment terms, and the creation of a direct sales force, Ceres was able to manage to stay below 1 with a mean average of .74. * Inventory Turnover shows an efficient turnover of inventory. Ceres does not hold inventory for long periods of time, which can incur additional costs by having assets sit without revenue generation. It shows Ceres’ ability to manage inventory in a seasonal cycle and further indicates their ability to forecast demands on product movement. * Accounts Receivable shows Ceres’ effectiveness in extending credit as well as collecting debts. The extended payment terms appear to be working. The prompt collection of debts enables Ceres’ to use the monies to reinvest into the business. Table 1 - Ratios Used Ratios | 2002 | 2003 | 2004 | 2005 | 2006E | Mean | Current RatioCurrent Assets/Current Liabilities | 3.10 | 2.63 | 2.18 | 2.13 | 2.01 | 2.41 | Quick Ratio(Current Assets-Inventories)/Current Liabilities | 1.78 | 1.79 | 1.59 | 1.68 | 1.63 | 1.70 | Debt Equity(Total Liabilities/Shareholders Equity) | .47 | .55 | .76 | .89 | 1.05 | .74 | InventoryShow MoreRelatedCeres Gardening Essay1629 Words   |  7 PagesCeres Gardening Company Case Study 1. How has the company grown? What is its basic strategy + how has it evolved? What have been the key factors in the companys growth? The growth of the company has been fueled by the market demand growth in organic products. Ceres increased their revenues by over 75% in just five years, while growing profits by over 25% (based on Exhibits 2, 3 amp; 4). Ceres’s basic strategy started with its founder, Jonathan Wydown, to promote sustainable organicRead MoreCeres Gardening Case800 Words   |  4 PagesCeres Gardening Company: Funding Growth in Organic Products Jonathan Wydown, CEO of the Ceres Gardening Company, scrutinized the figures presented by Annette O’Connell, vice-president of Marketing. It was December 2006, and the two were finalizing the firm’s marketing strategy and objectives for 2007. Having just received the latest industry report on growth and trends, they discussed the implications for Ceres (see Exhibit 1). O’Connell observed: This report confirms what we believed—growthRead MoreMy Local Organic Farming Community1747 Words   |  7 Pagesgetting involved with my local organic farming community to learn pressing issues young farmers face. I almost immediately notice that Sonoma County, which is quite a large, has extremely knowledgeable leaders on the topic of food politics. Furthermore, I found these people are generous and living an organic local lifestyle. Aside from the given importance of eating local and healthy, there are two major factors which make it critical for me to learn and eat organic foods. I have special needs nephewRead MoreBen Jerry Case Analysis Essay6672 Words   |  27 PagesSource: Ben Jerry’s 1998 CERES Report. CORPORATE ENVIRONMENTAL STRATEGY In 1992, Ben Jerry’s became the first publicly held company to adopt the CERES (Coalition for Environmentally Responsible Economies) principles as part of its environmental strategy (Ben Jerry’s 1998 CERES Report). CERES is a non-profit coalition of interest groups working in partnership with companies towards the goal of corporate environmental responsibility worldwide. This involvement with CERES is evidence of the company’sRead MoreStrategic Analysis of Sabmiller16462 Words   |  66 PagesEdgars chain (added in 1982). A government order in 1979 for SAB to sell its Solly Kramer retail liquor stores was completed in 1986, five years before its deadline. Also in 1986 SAB established a joint venture with Ceres Fruit Juices to sell leading noncarbonated juice brands Ceres, Liquifruit, and F ruitee. In 1987 Murray B. Hofmeyer succeeded Cronje as chairman. Hofmeyer and his successor, Meyer Kahn, continued to diversify through acquisition, adding Lion Match Company, the leading manufacturerRead MoreStrategic Analysis of Sabmiller16447 Words   |  66 PagesEdgars chain (added in 1982). A government order in 1979 for SAB to sell its Solly Kramer retail liquor stores was completed in 1986, five years before its deadline. Also in 1986 SAB established a joint venture with Ceres Fruit Juices to sell leading noncarbonated juice brands Ceres, Liquifruit, and Fruitee. In 1987 Murray B. Hofmeyer succeeded Cronje as chairman. Hofmeyer and his successor, Meyer Kahn, continued to diversify through acquisition, adding Lion Match Company, the leading manufacturerRead MoreEsquel Group14861 Words   |  60 Pagesframework for businesses, governments and nongovernmental organizations (NGOs) wishing to report and communicate information on their economic, environmental and social performance. Convened by the Coalition for Environmentally Responsible Economies (CERES) in partnership with the United Nations Environment Program (UNEP), the GRI incorporates the active participation of corporations, NGOs, accountancy organizations, business associations and other stakeholders from around the world. The GRI Mission