Michael Searle

Small Business Management

Roxanne Quimby Case

November 4, 2010

Roxanne Quimby Case

From what I read about the case study Roxanne and Burt really have three options

they can sell the business, return to Maine, or remain in North Carolina. The

decision I would make is for them to remain in North Carolina. I think that this is

the best conclusion for the company here is why.

Sell the business

According to the case study Roxanne dose not want to work at Burt’s Bees forever,

and has other goals that she wants to pursue in her life like going to India. Although

I know that Burt’s Bees will eventually be sold, selling the company at this current

time probably wouldn’t be as beneficial as waiting for the company to continue to

grow and allow the revenues to increase. They may be able to sell the company now

but since they have such little overhead and very little as far as assets are concerned

they would most likely only receive a couple of million dollars. However allowing it

to grow to its fullest potential Burt’s Bees could be sold for possibly even the high

eight figures.

Return to Maine
Although the attitude of the workers in Maine is great, however they are relatively

unskilled and this combined with a factory that has little or no automation puts

Burt’s Bees productivity levels much lower when you compare them to other

industries in that market. Also Roxanne spent most of her time working with the

production workers and supplementing as extra work force. This left really no time

for her to preform managerial roles. Also in Maine it was harder to attract new

management to come and work at Burt’s Bees. The production of the facility

couldn’t meet the demands and therefore the companies’ profits were limited to

what ever they could produce and were not being maximized. Also I think in Maine

taxes are quite high not as bad as probably New York but compared to North

Carolina they are much higher in Maine.

Stay in North Carolina

To Remain in North Carolina is in my opinion the best choice for Burt and Roxanne

since this will allow the company to grow and reach its fullest potential. As I said

earlier the taxes in North Carolina are much lower there is no pay role taxes like

there is in Maine which is a major plus. It will be easier for the company to hire new

and competent management unlike in Maine where it was difficult to find skilled

workforce in that area. As far as location is concerned I would consider North

Carolina a booming epicenter compared to Maine. Although I would maybe like to

visit Maine sometime in the summer I have never traveled there, nor would I

consider it to be a hot spot for other vacationers. North Carolina has a much more

favorable location and will allow Burt’s Bees to maximize there customer base.