The Bumble and Bee Organic Case Study Questions.

What is the main strategic issue facing Bubble & Bee Organic (B&B) during the period under consideration?

1. Describe if there are multiple issues. Why are they important?

2. What factors influenced the choice of financing for B&B?

3. Prepare proforma financial statements and key financial ratios for B&B for 2015 2017 under all four possibilities:

a) Buying the building with unit sales growth

b) Buying the building with no unit sales growth

c) Renting the building with unit sales growth

d) Renting a building with no unit sales growth Discuss B&B financial viability under each case. What is the risk B&B faces in each case? Which case is the best scenario and worst scenario and why? By looking at the proforma financial statements and ratios, will the creditors lend to B&B?

4. Discuss the advantages and disadvantages of the owner controlling 100% interest in a company.

5. Describe what covenants the lender should require from B&B to extend the loan.

6. Compare owning and renting of property such as the one considered by B&B.

7. Discuss the importance of financial modeling and proforma financial statements in decision-making. Also, discuss what additional assumptions you recommend to improve the analyses. 8. Write a brief conclusion.