Case Study

Additional Case Study Components

In order to continue our research of the two companies you are analyzing for Janella, we are going to take a look at a few fnal components that your team may consider before making a fnancial recommendation.

1. Corporate Social Responsibility (CSR)

A business model that helps a company be socially accountable to itself, its stakeholders and the public. By practicing corporate social responsibility, companies can be conscious of the kind of impact they are having on all aspects of society, including environmental, social and governance factors (ESG).

Having strong corporate social responsibility positively impacts both the society and company brand. It has also proven to boost company morale.

Example of Corporate Social Responsibility

“Starbucks has long been known for its keen sense of corporate social responsibility and commitment to sustainability and community welfare. According to the company, Starbucks has achieved many of its CSR milestones since it opened its doors. According to its 2020 Global Social Impact Report, these milestones include reaching 100% of ethically sourced cofee, creating a global network of farmers and providing them with 100 million trees by 2025, pioneering green building throughout its stores, contributing millions of hours of community service, and creating a groundbreaking college program for its employees.” (Investopedia)

2. Competitive Advantage

Conditions that allow a company to produce a good or service at a lower price or at a higher quality than a competitor.

Having a competitive advantage allows companies to generate more sales or achieve higher proft margins compared to its industry rivals.

How do companies achieve competitive advantages? • Cost structure • Branding • The quality of their product or service • Strong distribution network • Superior intellectual property • Superior customer service

3. Capital Expenditures (CapEx)

Funds used by a company to acquire, upgrade and maintain physical assets such as property, industrial buildings or equipment.

CapEx is any type of expense that a company capitalizes or shows on its balance sheet as an investment instead of on its income statement as an expenditure.

A company’s CapEx can be an indicator of how much a company is investing in its growth.