Miswak Case Analysis

Going Ahead
If we were Drewnowsky and Peet, we would not start the Miswak Company. After reviewing the balance sheet, it can be seen that the company would indeed make a profit each year, but the bank loan that they would have to take out in the second and third year is very high, settling at $42,811.54 and $41,624.23 respectively. Therefore, they would have a lot of liabilities that would need to be paid back and not enough inflow of cash to do so. Also, after calculating the profit margin for each year, it can be seen that if they did go through with running the company, it would not be worth their efforts. In the first year the profit margin for the Miswak Company is 2.5%, then increases to 10% in the second year and again in the third year

In fact, 39% of people who took the Miswak Company’s survey said that they would not buy miswak because they did not want to brush their teeth with a “stick”. The company would have to ensure that the people who are buying their product are loyal to them. To ensure loyalty from customers, one of the main aspects that must be ensured is having a good quality product. Unfortunately, the miswak stick might not meet this criterion. After reviewing the survey, it can be seen that 43% of people who have tried miswak products were either very dissatisfied or somewhat dissatisfied. Even if the Miswak Company were able to sell their product to a lot of people in the first few years, they would struggle to have customers who continuously purchase their

They are the Total Health Show and the Whole Life Expo. Total Health Show currently hosts 200 exhibits specifically catering to the natural healthy lifestyle, 60 international speakers and attracts around 20,000 people. This event will earn the highest profit ($4585) with a cost of $1400 and $5985 in sales. This event also requires a deposit of 20% at the time of booking. The show that offers the next highest return is the Whole Life Expo. They are currently the largest showcase of natural health and green living products and services. They also attract 200 exhibitors and 90 speakers in a three-day event held at at the end of November. This event will earn the second highest profit ($3438) out of the four available options, earning sales of $4788 and costs of $1350. Another reason why we feel Whole Life Expo to be the best, besides Total Health Show, is because they are the cheapest for the brand to attend. With the remaining three shows all offering the same return on investment, choosing the one, which costs the least, makes the most financial