Subject category:
Case Method and Specialist Management Disciplines
Published by:
Ivey Publishing
Version: 2002-07-25
Length: 10 pages
Topics:
Expansion; Entrepreneurship
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https://casecent.re/p/15946
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Abstract
BJ Bear Company is currently trucking used grains for animal feed. Founded in 1990, the first 18 months of operation had resulted in a loss for the company. Now, they needed a new source of contribution to profit. In early 1992, they were considering some related product/market diversification, ie, entering the business of municipal waste. The garbage business was potentially a cash flow generator, but BJ Bear had neither the necessary trucks nor the resources to purchase them. Is this new direction the right one for the company? If so, what are some potential sources of financing?
About
Abstract
BJ Bear Company is currently trucking used grains for animal feed. Founded in 1990, the first 18 months of operation had resulted in a loss for the company. Now, they needed a new source of contribution to profit. In early 1992, they were considering some related product/market diversification, ie, entering the business of municipal waste. The garbage business was potentially a cash flow generator, but BJ Bear had neither the necessary trucks nor the resources to purchase them. Is this new direction the right one for the company? If so, what are some potential sources of financing?