Honest Tea free essay sample

Take the deal, because Good for You can use Kraft to have a greater impact. d. Take the deal, because Good for You will see a profits increase. -Answer (c) Part Two please answer the following discussion questions – You can also visit Honest Tea website http://www. honesttea. com/ for additional information. 6. Honest Tea President Seth Goldman calls social responsibility a â€Å"mission-driven business. † What does he mean by this? -He means that the social responsibility is actually what they are trying to do (mission) and how well they are pursuing that goal. 7. In what ways does the Honest Tea brand claim to effect change? Are such goals too high for a drinks-related product? Or should all companies create similar platforms as part of their social responsibility? -By claiming to offer more organic products and wanting to expand into 100,000 outlets. I don’t think that there goals are too high since they were able to expand their product by accepting an investment from Coca-Cola to expand their production and distribution. We will write a custom essay sample on Honest Tea or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 8. According to Goldman, what are the benefits of taking a company through Fair Trade certification? Fair Trade certification allowed people to identify  Honest tea products as they meet agreed environmental, labour and developmental standards. 9. How effective and/or efficient Honest Tea’s methods are, and what methods you might imitate or disregard, should you start your own companies. -Honest tea were using glass bottles which was making them less fuel efficient to ship (disregard). -Offers better quality health-products for consumers (imitate). 10. Compare Honest Tea with Snapple Tea (Dr. Pepper Snapple Group), which corporation do you think is more socially responsible and why? (You can Google â€Å"Snapple CSR† for more information). -I think Honest tea is more socially responsible since they use all organic products compared to Snapple, which makes it a more healthier drinks for its consumers. Also, Honest Tea purchases peppermint leaves for its â€Å"First Nation Peppermint† ice tea from a woman-owned herb company on the Crow Indian reservation in Montana where the unemployment rate is as high as 67%.

Micro Assignment Essay

Micro Assignment Essay Micro Assignment Essay Question 1 A) POINT ONE P1=$2.26 Q1=620.82 The price elasticity of demand using the midpoint method can be calculated with the following equation: = (Q2-Q1)/ ((Q2+Q1)/2) (P2-P1)/ ((P2+P1)/2) Using the values given, the equation is as follows: = (580270-620820)/ ((580270+620820)/2) ($3.39-$2.26)/ (($3.39+$2.26)/2) = 0.06752200084923 40 This shows that the price elasticity of demand for Metlink train tickets is: = 0.16880500212308 B) From the figures provided, we can see that as the price of the train ticket rises, the quantity demanded falls. This follows the law of demand meaning that train tickets are a normal good, as opposed to a giffen good that goes against the law of demand. Due to the elastic figure being less than 1 we can draw the conclusion that train tickets are inelastic. This means there is a relatively small change in the quantity demand despite a change n price. This also suggests that Metlink train tickets are a necessity opposed to a luxury. Question 2 Although previous national studies showed video rentals as being inelastic new evidence from a video store contradicts these results. The manager at the store increased their price expecting a rise in their profit, but in fact the increased price had the opposite effect. This is because although the video rental demand had previously been shown to be inelastic time had past. In the time that had past the ability of the renters to substitute renting video had changed. With new technology it is now easy to download movies thus creating less demand for renting them. Due to new revolutions the demand curve would now become elastic so the demand curve has flattened out. This means because the price has been raised by 20% the demand for video rentals will reduce proving it harder to rent out videos. Revenue will decrease due to lower sales and although being at a higher price it does not match previous years income. This is represented in the following graph: Question 3 A) i) In the short term, if scientists discovered that eating soybeans prevents cancer and heart disease this would shift the demand curve to the right. As a result the quantity demand rises due to consumers hearing that soybeans are good for your health. This increases the equilibrium price and quantity, because there is no shift in the supply curve so the equilibrium point moves to the right with the demand curve. This is represented in the following graph: In the long run if scientists discovered that soybeans prevents cancer and heart disease this would shift the demand curve to the right. As a result the suppliers would be more willing to increase supplies because of the money they will receive for the more goods they produce. This shifts the supply curve to the right. The increase in supply decreases the equilibrium price but increases the demand. This is represented in the following graph: ii) With the increase in the supply in soybeans the space for the feed corn to grow is reduced. Thus there would a shift in the supply curve to the left. This would mean a shift in the equilibrium price would rise. Thus feed corn would be selling for a higher price but the demand would be less. This is represented in the following graph: B) i) The effect that nylon being invented would have on the domestic cotton industry is that the demand for cotton will decrease, shifting the demand curve to the left. Due to nylon being a substation for cotton. Thus the equilibrium price and supply will decrease. Meaning the sale of cotton will reduce which will in turn force suppliers to decrease the price of cotton. This is represented in the following graph: ii) The effect the cotton gin being invented would have on the domestic cotton industry is that the supply curve would shift to the right due