Case analysis Assignment Example | Topics and Well Written Essays - 500 words - 1

Case analysis - Assignment Example Further, the company introduced e-books which most people found convenient and were environmental friendly than print books. Therefore, the company opted to receive and reuse unwanted books, which they thought was still an appealing option for green consumer. The firm gave the community and the school a nonprofit equity stake, which offered them with high financial value in case the firm was sold or merged. In turn, this would ensure that such nonprofit partners understand that future stock alternatives were going to rely on their performance as a company in ensuring literacy level is on the raise. It is evident that as the company expanded, it had to rethink about its donation percentage since the current donation practice disadvantaged it. Therefore, the management was forced to amend the original fifteen percent of all sales because when the company expanded nationally, the average sale of university and college books started dwindling, which meant that, they were operating under a loss. The company continued to perform dismally but changes in oil and gas prices positively affected the company in the sense that the fifteen percent donation increased the firm’s gross margin. Initially, the company had thought of giving half of its profit margins to nonprofit partners such as the community and the school. However, they realized that this concept was a big problem to external investors. If they could give half of the company’s profit margins, it meant creation of lower valuation for the firm because investors would claim fifty percent of what they might have received otherwise. In turn, this would lead to inability to raise funds thus straining themselves. Better World Books donated over $ 8 million to international literacy programs via the sale of its books. Since the company sold over 10,000 copies of books on daily basis, it attained a profit margin