Burt Bees

In: Business and Management

Submitted By NicoPretorius
Words 759
Pages 4
What should Roxanne and Burt do?
Burt Bees had become very successful in it operations and established a prominent position in the market of natural cosmetics and other natural products. These products all having their origin in bees wax and honey. The problem that Roxanne and Burt face is expansion of their business. They took the business forward and moved to North Carolina for a more central positioning. This geographical centralization would be advantages for Burt’s Bees because of the theoretical cost saving that the company might have with regards to transportation and distribution cost.
There are however some factors that Burt’s Bees have keep in mind and question that need to be asked and answered. The first consideration that has to be kept in mind is that the products that Burt’s Bees currently produce are labour intensive and employees are mainly unskilled. Will this be the same in North Carolina or will labour be skilled and more expensive? Because North Carolina is more central and is a business hub in the U.S.A., what are the completions in this area and markets strategies? What products are similar companies in the natural cosmetics market selling? These questions need to be answered by Roxanne if they wish to be successful in their attempts at expanding Burt’s Bees. These considerations are not limited in deciding whether to move to North Carolina or not but are generic business questions that need to be answered on a continuous basis.
There are basically three options for Roxanne to choose from. Firstly she could have stayed in Maine and keep on doing what they have been doing in the past and live with the fact that product distribution is high but labour cost is low. Furthermore the product selection being produced will not change drastically and have a proven track record in the market place.
The second option would be to live with the move of the…...

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