Case Study: The Major Problems Facing Eco-Me?

1074 Words3 Pages

Eco-Me There are multiple problems facing Eco-Me and not making them a successful business. One of the major problems is that the company is close to $500,000 in debt, which doesn’t allow for everyone to always get a paycheck. The alternative to this debt would be Marcus paying off full amount of debt, financing the inventory and financing the equipment so the business can run smoothly. Another issue is that the company has no significant machinery for product production making it slow and inefficient. Most of the product production is done is by hand or on the one small jerry-rigged machine that the company has for filling the bottles which is basically done by estimating. The alternative to this would be that Marcus will buy the company all new equipment that will be able to make 1200 bottles in 20 minutes as opposed to in a day with the manual labor. Another issue is that the company uses friend’s names on the various products creating branding confusion with the clients. An alternative to that would be to create a whole new label which appeals to the customer as opposed to something that customer can
The major management issue was the founder giving up control of the company to Marcus and letting him change the product and labeling. The major marketing issue was the way the product was branded with friend’s names on it confusing the customer as to what exactly each of those names meant even if it had a meaning to the founder. The major investment issue was getting the founder to agree on a deal with Marcus without feeling robbed of her company. Marcus would invest money in this company because he believes in the company and uses it in his own home. He believes that the company can compete with similar cleaning products and thinks he can make the company profitable by getting them to 10 million dollars in sales over

Open Document