SlideShare a Scribd company logo
1 of 25
Six was significant in the name as the Persian herb formed the
sixth principal ingredient and the basis for their secret formula!
So, in 2003, Ravi and Keith formed the Zip-6 Corporation with
each controlling an equal number of the firm’s shares and Ravi
as CEO and Keith as COO.
Initial growth was slow the first year as the new firm lacked
adequate capitalization to allow it to manufacture and bottle the
product, depending instead on other established bottlers to
produce and bottle it for Zip-6. Nevertheless, the nascent
business was able to generate $512,000 in first year revenues.
More importantly, a number college football, basketball, and
soccer endorsements were secured throughout the South.
The year 1996 was a watershed for the firm with the entry
of Nils Young, a wealthy venture capitalist into the firm. Young
was impressed with Ravi, Keith, and Zip-6 and agreed to
purchase one-third of the firm for $4.5 million, leaving Ravi
and Keith in charge. This allowed the firm to purchase an
existing manufacturing and bottling facility that had been
previously used by a brand that had been purchased by a global
beverage firm and merged into their existing manufacturing
facilities. This finally gave Zip-6 a home of its own. The
infusion of cash also allowed Zip-6 to mount its first serious
national marketing effort. By the close of 2006, annual revenues
were $2.3 million and were growing at an annual rate of 26%.
By 2000, Zip-6 was a well-established fixture on most U.S.
sports drink shelves. Annual revenues stood at $5.7 million.
Ravi, Keith, and Nils all felt that spending some of the firm’s
retained earnings to purchase some prime-time advertising spots
on the Super Bowl game that year would be a good investment
and so $1.2 million was used to mount the firm’s first “big
time” advertising campaign. The results were immediate and
dramatic! Demand nearly doubled and two shifts were
implemented in producing and bottling the product.
By second quarter 2002, annual revenues were at $8.5
million on strong demand. There was however, one particularly
troubling situation that had been building, and reached a peak in
that year. The deteriorating political climate within Iran had all
but stopped shipments of the Persian herb to Zip-6’s British
importers of the product. Ravi and his father had earlier
anticipated this problem and had attempted to cultivate this herb
in the United States unsuccessfully. Their attention focused on
the tiny island of Socotra in the Indian Ocean. This remote
island, claimed by the nation of Yemen in the Indian Ocean was
found to grow a native species of the Zip-6 secret herb, nearly
identical to the rare Persian herb and fully suitable for use in
the sports drink. A Yemeni herb trader was contracted to
supply Zip-6 through the port of Aden.
Ravi and Keith, while pleased with the upward growth of
Zip-6, were nevertheless candid about the product’s market
position within the U.S. where the market was dominated by
several brands of sports drinks. In that same year, a new breed
of drinks was also beginning to rise in sales – energy drinks.
Zip-6 occupied a somewhat interesting position in this market
as it is a sports drink with some of the attributes of an energy
drink. They hired a market consultant who advised them that
market potential existed for Zip-6 outside of the United States.
Several potential foreign markets were identified. These were
Mexico, Brazil, and Korea. Zip-6 thus began a multi-year
journey from U.S. domestic sports drink manufacturer to Zip-6
Inc. a global sports drink manufacturer and bottler.
Today, ten years later, Zip-6 is a global sports drink
manufacturer with active global markets in Brazil, Korea, the
United States, and Mexico. The firm operates bottling and
distribution facilities in the U.S., Brazil, and Mexico. It
operates within Korea through a licensing agreement with Lotte
Chilsung, a leading Korean soft drink manufacturer and bottler.
It is pursuing exploratory research into additional South
American and Asian markets
Six was significant in the name as the Persian herb formed the
sixth principal ingredient and the basis for their secret formula!
So, in 2003, Ravi and Keith formed the Zip-6 Corporation with
each controlling an equal number of the firm’s shares and Ravi
as CEO and Keith as COO.
Initial growth was slow the first year as the new firm lacked
adequate capitalization to allow it to manufacture and bottle the
product, depending instead on other established bottlers to
produce and bottle it for Zip-6. Nevertheless, the nascent
business was able to generate $512,000 in first year revenues.
More importantly, a number college football, basketball, and
soccer endorsements were secured throughout the South.
The year 1996 was a watershed for the firm with the entry
of Nils Young, a wealthy venture capitalist into the firm. Young
was impressed with Ravi, Keith, and Zip-6 and agreed to
purchase one-third of the firm for $4.5 million, leaving Ravi
and Keith in charge. This allowed the firm to purchase an
existing manufacturing and bottling facility that had been
previously used by a brand that had been purchased by a global
beverage firm and merged into their existing manufacturing
facilities. This finally gave Zip-6 a home of its own. The
infusion of cash also allowed Zip-6 to mount its first serious
national marketing effort. By the close of 2006, annual revenues
were $2.3 million and were growing at an annual rate of 26%.
By 2000, Zip-6 was a well-established fixture on most U.S.
sports drink shelves. Annual revenues stood at $5.7 million.
Ravi, Keith, and Nils all felt that spending some of the firm’s
retained earnings to purchase some prime-time advertising spots
on the Super Bowl game that year would be a good investment
and so $1.2 million was used to mount the firm’s first “big
time” advertising campaign. The results were immediate and
dramatic! Demand nearly doubled and two shifts were
implemented in producing and bottling the product.
By second quarter 2002, annual revenues were at $8.5
million on strong demand. There was however, one particularly
troubling situation that had been building, and reached a peak in
that year. The deteriorating political climate within Iran had all
but stopped shipments of the Persian herb to Zip-6’s British
importers of the product. Ravi and his father had earlier
anticipated this problem and had attempted to cultivate this herb
in the United States unsuccessfully. Their attention focused on
the tiny island of Socotra in the Indian Ocean. This remote
island, claimed by the nation of Yemen in the Indian Ocean was
found to grow a native species of the Zip-6 secret herb, nearly
identical to the rare Persian herb and fully suitable for use in
the sports drink. A Yemeni herb trader was contracted to
supply Zip-6 through the port of Aden.
Ravi and Keith, while pleased with the upward growth of
Zip-6, were nevertheless candid about the product’s market
position within the U.S. where the market was dominated by
several brands of sports drinks. In that same year, a new breed
of drinks was also beginning to rise in sales – energy drinks.
Zip-6 occupied a somewhat interesting position in this market
as it is a sports drink with some of the attributes of an energy
drink. They hired a market consultant who advised them that
market potential existed for Zip-6 outside of the United States.
Several potential foreign markets were identified. These were
Mexico, Brazil, and Korea. Zip-6 thus began a multi-year
journey from U.S. domestic sports drink manufacturer to Zip-6
Inc. a global sports drink manufacturer and bottler.
Today, ten years later, Zip-6 is a global sports drink
manufacturer with active global markets in Brazil, Korea, the
United States, and Mexico. The firm operates bottling and
distribution facilities in the U.S., Brazil, and Mexico. It
operates within Korea through a licensing agreement with Lotte
Chilsung, a leading Korean soft drink manufacturer and bottler.
It is pursuing exploratory research into additional South
American and Asian markets
Following graduation in 1993, Ravi went to work at a global
beverage firm in Atlanta as a chemist while Keith settled in to
his new job with a large accounting firm in its Atlanta offices.
The two stayed in close contact over the next few years and
made it a practice to spend one evening each week visiting a
favorite sports bar and talking about sports and their futures. On
one such visit, Ravi excitedly confided to Keith that he had
discovered a formula for a sports drink that provided
exceptional hydration and energy but contained one ingredient
that had been banned by the FDA as potentially harmful. While
visiting his father in Dearborn for the Holidays, he discussed
this with him since Ravi’s father had been a college chemistry
professor in his native Iran. Ravi’s father quickly noted that an
ancient Persian herb could provide the same chemical properties
as the problematic ingredient without any of the potentially
unwanted side effects. Ravi discussed with his friend the
possibilities of offering this formula to his employer but
indicated he would rather like to develop it himself but lacked
the skills to do so. Over the next several weeks, Ravi and Keith
discussed this over a series of bar visits and finally decided to
launch Zip-6 as a startup venture brand. Six was significant in
the name as the Persian herb formed the sixth principal
ingredient and the basis for their secret formula! So, in 2003,
Ravi and Keith formed the Zip-6 Corporation with each
controlling an equal number of the firm’s shares and Ravi as
CEO and Keith as COO.
Initial growth was slow the first year as the new firm lacked
adequate capitalization to allow it to manufacture and bottle the
product, depending instead on other established bottlers to
produce and bottle it for Zip-6. Nevertheless, the nascent
business was able to generate $512,000 in first year revenues.
More importantly, a number college football, basketball, and
soccer endorsements were secured throughout the South.
The year 1996 was a watershed for the firm with the entry
of Nils Young, a wealthy venture capitalist into the firm. Young
was impressed with Ravi, Keith, and Zip-6 and agreed to
purchase one-third of the firm for $4.5 million, leaving Ravi
and Keith in charge. This allowed the firm to purchase an
existing manufacturing and bottling facility that had been
previously used by a brand that had been purchased by a global
beverage firm and merged into their existing manufacturing
facilities. This finally gave Zip-6 a home of its own. The
infusion of cash also allowed Zip-6 to mount its first serious
national marketing effort. By the close of 2006, annual revenues
were $2.3 million and were growing at an annual rate of 26%.
By 2000, Zip-6 was a well-established fixture on most U.S.
sports drink shelves. Annual revenues stood at $5.7 million.
Ravi, Keith, and Nils all felt that spending some of the firm’s
retained earnings to purchase some prime-time advertising spots
on the Super Bowl game that year would be a good investment
and so $1.2 million was used to mount the firm’s first “big
time” advertising campaign. The results were immediate and
dramatic! Demand nearly doubled and two shifts were
implemented in producing and bottling the product.
By second quarter 2002, annual revenues were at $8.5
million on strong demand. There was however, one particularly
troubling situation that had been building, and reached a peak in
that year. The deteriorating political climate within Iran had all
but stopped shipments of the Persian herb to Zip-6’s British
importers of the product. Ravi and his father had earlier
anticipated this problem and had attempted to cultivate this herb
in the United States unsuccessfully. Their attention focused on
the tiny island of Socotra in the Indian Ocean. This remote
island, claimed by the nation of Yemen in the Indian Ocean was
found to grow a native species of the Zip-6 secret herb, nearly
identical to the rare Persian herb and fully suitable for use in
the sports drink. A Yemeni herb trader was contracted to
supply Zip-6 through the port of Aden.
Ravi and Keith, while pleased with the upward growth of
Zip-6, were nevertheless candid about the product’s market
position within the U.S. where the market was dominated by
several brands of sports drinks. In that same year, a new breed
of drinks was also beginning to rise in sales – energy drinks.
Zip-6 occupied a somewhat interesting position in this market
as it is a sports drink with some of the attributes of an energy
drink. They hired a market consultant who advised them that
market potential existed for Zip-6 outside of the United States.
Several potential foreign markets were identified. These were
Mexico, Brazil, and Korea. Zip-6 thus began a multi-year
journey from U.S. domestic sports drink manufacturer to Zip-6
Inc. a global sports drink manufacturer and bottler.
Today, ten years later, Zip-6 is a global sports drink
manufacturer with active global markets in Brazil, Korea, the
United States, and Mexico. The firm operates bottling and
distribution facilities in the U.S., Brazil, and Mexico. It
operates within Korea through a licensing agreement with Lotte
Chilsung, a leading Korean soft drink manufacturer and bottler.
It is pursuing exploratory research into additional South
American and Asian markets.
Following graduation in 1993, Ravi went to work at a global
beverage firm in Atlanta as a chemist while Keith settled in to
his new job with a large accounting firm in its Atlanta offices.
The two stayed in close contact over the next few years and
made it a practice to spend one evening each week visiting a
favorite sports bar and talking about sports and their futures. On
one such visit, Ravi excitedly confided to Keith that he had
discovered a formula for a sports drink that provided
exceptional hydration and energy but contained one ingredient
that had been banned by the FDA as potentially harmful. While
visiting his father in Dearborn for the Holidays, he discussed
this with him since Ravi’s father had been a college chemistry
professor in his native Iran. Ravi’s father quickly noted that an
ancient Persian herb could provide the same chemical properties
as the problematic ingredient without any of the potentially
unwanted side effects. Ravi discussed with his friend the
possibilities of offering this formula to his employer but
indicated he would rather like to develop it himself but lacked
the skills to do so. Over the next several weeks, Ravi and Keith
discussed this over a series of bar visits and finally decided to
launch Zip-6 as a startup venture brand.
Six was significant in the name as the Persian herb formed the
sixth principal ingredient and the basis for their secret formula!
So, in 2003, Ravi and Keith formed the Zip-6 Corporation with
each controlling an equal number of the firm’s shares and Ravi
as CEO and Keith as COO.
Initial growth was slow the first year as the new firm lacked
adequate capitalization to allow it to manufacture and bottle the
product, depending instead on other established bottlers to
produce and bottle it for Zip-6. Nevertheless, the nascent
business was able to generate $512,000 in first year revenues.
More importantly, a number college football, basketball, and
soccer endorsements were secured throughout the South.
The year 1996 was a watershed for the firm with the entry
of Nils Young, a wealthy venture capitalist into the firm. Young
was impressed with Ravi, Keith, and Zip-6 and agreed to
purchase one-third of the firm for $4.5 million, leaving Ravi
and Keith in charge. This allowed the firm to purchase an
existing manufacturing and bottling facility that had been
previously used by a brand that had been purchased by a global
beverage firm and merged into their existing manufacturing
facilities. This finally gave Zip-6 a home of its own. The
infusion of cash also allowed Zip-6 to mount its first serious
national marketing effort. By the close of 2006, annual revenues
were $2.3 million and were growing at an annual rate of 26%.
By 2000, Zip-6 was a well-established fixture on most U.S.
sports drink shelves. Annual revenues stood at $5.7 million.
Ravi, Keith, and Nils all felt that spending some of the firm’s
retained earnings to purchase some prime-time advertising spots
on the Super Bowl game that year would be a good investment
and so $1.2 million was used to mount the firm’s first “big
time” advertising campaign. The results were immediate and
dramatic! Demand nearly doubled and two shifts were
implemented in producing and bottling the product.
By second quarter 2002, annual revenues were at $8.5
million on strong demand. There was however, one particularly
troubling situation that had been building, and reached a peak in
that year. The deteriorating political climate within Iran had all
but stopped shipments of the Persian herb to Zip-6’s British
importers of the product. Ravi and his father had earlier
anticipated this problem and had attempted to cultivate this herb
in the United States unsuccessfully. Their attention focused on
the tiny island of Socotra in the Indian Ocean. This remote
island, claimed by the nation of Yemen in the Indian Ocean was
found to grow a native species of the Zip-6 secret herb, nearly
identical to the rare Persian herb and fully suitable for use in
the sports drink. A Yemeni herb trader was contracted to
supply Zip-6 through the port of Aden.
Ravi and Keith, while pleased with the upward growth of
Zip-6, were nevertheless candid about the product’s market
position within the U.S. where the market was dominated by
several brands of sports drinks. In that same year, a new breed
of drinks was also beginning to rise in sales – energy drinks.
Zip-6 occupied a somewhat interesting position in this market
as it is a sports drink with some of the attributes of an energy
drink. They hired a market consultant who advised them that
market potential existed for Zip-6 outside of the United States.
Several potential foreign markets were identified. These were
Mexico, Brazil, and Korea. Zip-6 thus began a multi-year
journey from U.S. domestic sports drink manufacturer to Zip-6
Inc. a global sports drink manufacturer and bottler.
Today, ten years later, Zip-6 is a global sports drink
manufacturer with active global markets in Brazil, Korea, the
United States, and Mexico. The firm operates bottling and
distribution facilities in the U.S., Brazil, and Mexico. It
operates within Korea through a licensing agreement with Lotte
Chilsung, a leading Korean soft drink manufacturer and bottler.
It is pursuing exploratory research into additional South
American and Asian markets.
Six was significant in the name as the Persian herb formed the
sixth principal ingredient and the basis for their secret formula!
So, in 2003, Ravi and Keith formed the Zip-6 Corporation with
each controlling an equal number of the firm’s shares and Ravi
as CEO and Keith as COO.
Initial growth was slow the first year as the new firm lacked
adequate capitalization to allow it to manufacture and bottle the
product, depending instead on other established bottlers to
produce and bottle it for Zip-6. Nevertheless, the nascent
business was able to generate $512,000 in first year revenues.
More importantly, a number college football, basketball, and
soccer endorsements were secured throughout the South.
The year 1996 was a watershed for the firm with the entry
of Nils Young, a wealthy venture capitalist into the firm. Young
was impressed with Ravi, Keith, and Zip-6 and agreed to
purchase one-third of the firm for $4.5 million, leaving Ravi
and Keith in charge. This allowed the firm to purchase an
existing manufacturing and bottling facility that had been
previously used by a brand that had been purchased by a global
beverage firm and merged into their existing manufacturing
facilities. This finally gave Zip-6 a home of its own. The
infusion of cash also allowed Zip-6 to mount its first serious
national marketing effort. By the close of 2006, annual revenues
were $2.3 million and were growing at an annual rate of 26%.
By 2000, Zip-6 was a well-established fixture on most U.S.
sports drink shelves. Annual revenues stood at $5.7 million.
Ravi, Keith, and Nils all felt that spending some of the firm’s
retained earnings to purchase some prime-time advertising spots
on the Super Bowl game that year would be a good investment
and so $1.2 million was used to mount the firm’s first “big
time” advertising campaign. The results were immediate and
dramatic! Demand nearly doubled and two shifts were
implemented in producing and bottling the product.
By second quarter 2002, annual revenues were at $8.5
million on strong demand. There was however, one particularly
troubling situation that had been building, and reached a peak in
that year. The deteriorating political climate within Iran had all
but stopped shipments of the Persian herb to Zip-6’s British
importers of the product. Ravi and his father had earlier
anticipated this problem and had attempted to cultivate this herb
in the United States unsuccessfully. Their attention focused on
the tiny island of Socotra in the Indian Ocean. This remote
island, claimed by the nation of Yemen in the Indian Ocean was
found to grow a native species of the Zip-6 secret herb, nearly
identical to the rare Persian herb and fully suitable for use in
the sports drink. A Yemeni herb trader was contracted to
supply Zip-6 through the port of Aden.
Ravi and Keith, while pleased with the upward growth of
Zip-6, were nevertheless candid about the product’s market
position within the U.S. where the market was dominated by
several brands of sports drinks. In that same year, a new breed
of drinks was also beginning to rise in sales – energy drinks.
Zip-6 occupied a somewhat interesting position in this market
as it is a sports drink with some of the attributes of an energy
drink. They hired a market consultant who advised them that
market potential existed for Zip-6 outside of the United States.
Several potential foreign markets were identified. These were
Mexico, Brazil, and Korea. Zip-6 thus began a multi-year
journey from U.S. domestic sports drink manufacturer to Zip-6
Inc. a global sports drink manufacturer and bottler.
Today, ten years later, Zip-6 is a global sports drink
manufacturer with active global markets in Brazil, Korea, the
United States, and Mexico. The firm operates bottling and
distribution facilities in the U.S., Brazil, and Mexico. It
operates within Korea through a licensing agreement with Lotte
Chilsung, a leading Korean soft drink manufacturer and bottler.
It is pursuing exploratory research into additional South
American and Asian markets.
Six was significant in the name as the Persian herb formed the
sixth principal ingredient and the basis for their secret formula!
So, in 2003, Ravi and Keith formed the Zip-6 Corporation with
each controlling an equal number of the firm’s shares and Ravi
as CEO and Keith as COO.
Initial growth was slow the first year as the new firm lacked
adequate capitalization to allow it to manufacture and bottle the
product, depending instead on other established bottlers to
produce and bottle it for Zip-6. Nevertheless, the nascent
business was able to generate $512,000 in first year revenues.
More importantly, a number college football, basketball, and
soccer endorsements were secured throughout the South.
The year 1996 was a watershed for the firm with the entry
of Nils Young, a wealthy venture capitalist into the firm. Young
was impressed with Ravi, Keith, and Zip-6 and agreed to
purchase one-third of the firm for $4.5 million, leaving Ravi
and Keith in charge. This allowed the firm to purchase an
existing manufacturing and bottling facility that had been
previously used by a brand that had been purchased by a global
beverage firm and merged into their existing manufacturing
facilities. This finally gave Zip-6 a home of its own. The
infusion of cash also allowed Zip-6 to mount its first serious
national marketing effort. By the close of 2006, annual revenues
were $2.3 million and were growing at an annual rate of 26%.
By 2000, Zip-6 was a well-established fixture on most U.S.
sports drink shelves. Annual revenues stood at $5.7 million.
Ravi, Keith, and Nils all felt that spending some of the firm’s
retained earnings to purchase some prime-time advertising spots
on the Super Bowl game that year would be a good investment
and so $1.2 million was used to mount the firm’s first “big
time” advertising campaign. The results were immediate and
dramatic! Demand nearly doubled and two shifts were
implemented in producing and bottling the product.
By second quarter 2002, annual revenues were at $8.5
million on strong demand. There was however, one particularly
troubling situation that had been building, and reached a peak in
that year. The deteriorating political climate within Iran had all
but stopped shipments of the Persian herb to Zip-6’s British
importers of the product. Ravi and his father had earlier
anticipated this problem and had attempted to cultivate this herb
in the United States unsuccessfully. Their attention focused on
the tiny island of Socotra in the Indian Ocean. This remote
island, claimed by the nation of Yemen in the Indian Ocean was
found to grow a native species of the Zip-6 secret herb, nearly
identical to the rare Persian herb and fully suitable for use in
the sports drink. A Yemeni herb trader was contracted to
supply Zip-6 through the port of Aden.
Ravi and Keith, while pleased with the upward growth of
Zip-6, were nevertheless candid about the product’s market
position within the U.S. where the market was dominated by
several brands of sports drinks. In that same year, a new breed
of drinks was also beginning to rise in sales – energy drinks.
Zip-6 occupied a somewhat interesting position in this market
as it is a sports drink with some of the attributes of an energy
drink. They hired a market consultant who advised them that
market potential existed for Zip-6 outside of the United States.
Several potential foreign markets were identified. These were
Mexico, Brazil, and Korea. Zip-6 thus began a multi-year
journey from U.S. domestic sports drink manufacturer to Zip-6
Inc. a global sports drink manufacturer and bottler.
Today, ten years later, Zip-6 is a global sports drink
manufacturer with active global markets in Brazil, Korea, the
United States, and Mexico. The firm operates bottling and
distribution facilities in the U.S., Brazil, and Mexico. It
operates within Korea through a licensing agreement with Lotte
Chilsung, a leading Korean soft drink manufacturer and bottler.
It is pursuing exploratory research into additional South
American and Asian markets
Six was significant in the name as the Persian herb formed the
sixth principal ingredient and the basis for their secret formula!
So, in 2003, Ravi and Keith formed the Zip-6 Corporation with
each controlling an equal number of the firm’s shares and Ravi
as CEO and Keith as COO.
Initial growth was slow the first year as the new firm lacked
adequate capitalization to allow it to manufacture and bottle the
product, depending instead on other established bottlers to
produce and bottle it for Zip-6. Nevertheless, the nascent
business was able to generate $512,000 in first year revenues.
More importantly, a number college football, basketball, and
soccer endorsements were secured throughout the South.
The year 1996 was a watershed for the firm with the entry
of Nils Young, a wealthy venture capitalist into the firm. Young
was impressed with Ravi, Keith, and Zip-6 and agreed to
purchase one-third of the firm for $4.5 million, leaving Ravi
and Keith in charge. This allowed the firm to purchase an
existing manufacturing and bottling facility that had been
previously used by a brand that had been purchased by a global
beverage firm and merged into their existing manufacturing
facilities. This finally gave Zip-6 a home of its own. The
infusion of cash also allowed Zip-6 to mount its first serious
national marketing effort. By the close of 2006, annual revenues
were $2.3 million and were growing at an annual rate of 26%.
By 2000, Zip-6 was a well-established fixture on most U.S.
sports drink shelves. Annual revenues stood at $5.7 million.
Ravi, Keith, and Nils all felt that spending some of the firm’s
retained earnings to purchase some prime-time advertising spots
on the Super Bowl game that year would be a good investment
and so $1.2 million was used to mount the firm’s first “big
time” advertising campaign. The results were immediate and
dramatic! Demand nearly doubled and two shifts were
implemented in producing and bottling the product.
By second quarter 2002, annual revenues were at $8.5
million on strong demand. There was however, one particularly
troubling situation that had been building, and reached a peak in
that year. The deteriorating political climate within Iran had all
but stopped shipments of the Persian herb to Zip-6’s British
importers of the product. Ravi and his father had earlier
anticipated this problem and had attempted to cultivate this herb
in the United States unsuccessfully. Their attention focused on
the tiny island of Socotra in the Indian Ocean. This remote
island, claimed by the nation of Yemen in the Indian Ocean was
found to grow a native species of the Zip-6 secret herb, nearly
identical to the rare Persian herb and fully suitable for use in
the sports drink. A Yemeni herb trader was contracted to
supply Zip-6 through the port of Aden.
Ravi and Keith, while pleased with the upward growth of
Zip-6, were nevertheless candid about the product’s market
position within the U.S. where the market was dominated by
several brands of sports drinks. In that same year, a new breed
of drinks was also beginning to rise in sales – energy drinks.
Zip-6 occupied a somewhat interesting position in this market
as it is a sports drink with some of the attributes of an energy
drink. They hired a market consultant who advised them that
market potential existed for Zip-6 outside of the United States.
Several potential foreign markets were identified. These were
Mexico, Brazil, and Korea. Zip-6 thus began a multi-year
journey from U.S. domestic sports drink manufacturer to Zip-6
Inc. a global sports drink manufacturer and bottler.
Today, ten years later, Zip-6 is a global sports drink
manufacturer with active global markets in Brazil, Korea, the
United States, and Mexico. The firm operates bottling and
distribution facilities in the U.S., Brazil, and Mexico. It
operates within Korea through a licensing agreement with Lotte
Chilsung, a leading Korean soft drink manufacturer and bottler.
It is pursuing exploratory research into additional South
American and Asian markets
Six was significant in the name as the Persian herb formed the
sixth principal ingredient and the basis for their secret formula!
So, in 2003, Ravi and Keith formed the Zip-6 Corporation with
each controlling an equal number of the firm’s shares and Ravi
as CEO and Keith as COO.
Initial growth was slow the first year as the new firm lacked
adequate capitalization to allow it to manufacture and bottle the
product, depending instead on other established bottlers to
produce and bottle it for Zip-6. Nevertheless, the nascent
business was able to generate $512,000 in first year revenues.
More importantly, a number college football, basketball, and
soccer endorsements were secured throughout the South.
Six was significant in the name as the Persian herb formed the
sixth principal ingredient and the basis for their secret formula!
So, in 2003, Ravi and Keith formed the Zip-6 Corporation with
each controlling an equal number of the firm’s shares and Ravi
as CEO and Keith as COO.
Initial growth was slow the first year as the new firm lacked
adequate capitalization to allow it to manufacture and bottle the
product, depending instead on other established bottlers to
produce and bottle it for Zip-6. Nevertheless, the nascent
business was able to generate $512,000 in first year revenues.
More importantly, a number college football, basketball, and
soccer endorsements were secured throughout the South.
Six was significant in the name as the Persian herb formed the
sixth principal ingredient and the basis for their secret formula!
So, in 2003, Ravi and Keith formed the Zip-6 Corporation with
each controlling an equal number of the firm’s shares and Ravi
as CEO and Keith as COO Initial growth was slow the first
year as the new firm lacked adequate capitalization to allow it
to manufacture and bottle the product, depending instead on
other established bottlers to produce and bottle it for Zip-6.
Nevertheless, the nascent business was able to generate
$512,000 in first year revenues. More importantly, a number
college football, basketball, and soccer endorsements were
secured throughout the South.
The year 1996 was a watershed for the firm with the entry of
Nils Young, a wealthy venture capitalist into the firm. Young
was impressed with Ravi, Keith, and Zip-6 and agreed to
purchase one-third of the firm for $4.5 million, leaving Ravi
and Keith in charge. This allowed the firm to purchase an
existing manufacturing and bottling facility that had been
previously used by a brand that had been purchased by a global
beverage firm and merged into their existing manufacturing
facilities. This finally gave Zip-6 a home of its own. The
infusion of cash also allowed Zip-6 to mount its first serious
national marketing effort. By the close of 2006, annual revenues
were $2.3 million and were growing at an annual rate of 26%.
By 2000, Zip-6 was a well-established fixture on most U.S.
sports drink shelves. Annual revenues stood at $5.7 million.
Ravi, Keith, and Nils all felt that spending some of the firm’s
retained earnings to purchase some prime-time advertising spots
on the Super Bowl game that year would be a good investment
and so $1.2 million was used to mount the firm’s first “big
time” advertising campaign. The results were immediate and
dramatic! Demand nearly doubled and two shifts were
implemented in producing and bottling the product.
The year 1996 was a watershed for the firm with the entry of
Nils Young, a wealthy venture capitalist into the firm. Young
was impressed with Ravi, Keith, and Zip-6 and agreed to
purchase one-third of the firm for $4.5 million, leaving Ravi
and Keith in charge. This allowed the firm to purchase an
existing manufacturing and bottling facility that had been
previously used by a brand that had been purchased by a global
beverage firm and merged into their existing manufacturing
facilities. This finally gave Zip-6 a home of its own. The
infusion of cash also allowed Zip-6 to mount its first serious
national marketing effort. By the close of 2006, annual revenues
were $2.3 million and were growing at an annual rate of 26%.
By 2000, Zip-6 was a well-established fixture on most U.S.
sports drink shelves. Annual revenues stood at $5.7 million.
Ravi, Keith, and Nils all felt that spending some of the firm’s
retained earnings to purchase some prime-time advertising spots
on the Super Bowl game that year would be a good investment
and so $1.2 million was used to mount the firm’s first “big
time” advertising campaign. The results were immediate and
dramatic! Demand nearly doubled and two shifts were
implemented in producing and bottling the product.
By 2000, Zip-6 was a well-established fixture on most U.S.
sports drink shelves. Annual revenues stood at $5.7 million.
Ravi, Keith, and Nils all felt that spending some of the firm’s
retained earnings to purchase some prime-time advertising spots
on the Super Bowl game that year would be a good investment
and so $1.2 million was used to mount the firm’s first “big
time” advertising campaign. The results were immediate and
dramatic! Demand nearly doubled and two shifts were
implemented in producing and bottling the product By second
quarter 2002, annual revenues were at $8.5 million on strong
demand. There was however, one particularly troubling
situation that had been building, and reached a peak in that
year. The deteriorating political climate within Iran had all but
stopped shipments of the Persian herb to Zip-6’s British
importers of the product. Ravi and his father had earlier
anticipated this problem and had attempted to cultivate this herb
in the United States unsuccessfully. Their attention focused on
the tiny island of Socotra in the Indian Ocean. This remote
island, claimed by the nation of Yemen in the Indian Ocean was
found to grow a native species of the Zip-6 secret herb, nearly
identical to the rare Persian herb and fully suitable for use in
the sports drink. A Yemeni herb trader was contracted to
supply Zip-6 through the port of Aden. Ravi and Keith, while
pleased with the upward growth of Zip-6, were nevertheless
candid about the product’s market position within the U.S.
where the market was dominated by several brands of sports
drinks. In that same year, a new breed of drinks was also
beginning to rise in sales – energy drinks. Zip-6 occupied a
somewhat interesting position in this market as it is a sports
drink with some of the attributes of an energy drink. They hired
a market consultant who advised them that market potential
existed for Zip-6 outside of the United States. Several potential
foreign markets were identified. These were Mexico, Brazil, and
Korea. Zip-6 thus began a multi-year journey from U.S.
domestic sports drink manufacturer to Zip-6 Inc. a global sports
drink manufacturer and bottler. Today, ten years later, Zip-6 is
a global sports drink manufacturer with active global markets in
Brazil, Korea, the United States, and Mexico. The firm
operates bottling and distribution facilities in the U.S., Brazil,
and Mexico. It operates within Korea through a licensing
agreement with Lotte Chilsung, a leading Korean soft drink
manufacturer and bottler. It is pursuing exploratory research
into additional South American and Asian markets.
Unit 3 [220: Global Business]
Assignment Details and Rubric
The Political, Economic, and Technological Implications for
Business
Working with your Zip-6 Scenario: Foreign Business
Environment
Nils, the partner of Ravi and Keith at Zip-6, approached them
with an interesting possibility. A fellow
venture capitalist friend revealed to him that he and his partners
were acquiring a large family-owned
group of businesses in the South American country of
Colombia. Most of these family-owned
businesses are diversified manufacturing businesses in the
capital of Bogota, but there is one soft
drink bottling operation in the acquisition that does not fit
within their venture business plan and thus
they would like to divest (sell) this particular operation. Nils’
friend knew that Nils, Ravi, and Keith had
extensive presence in neighboring Brazil and thought that this
business in Colombia might offer Zip-6
an additional expansion opportunity in the region. Neither Nils,
Ravi, nor Keith have any knowledge of
this nation.
Your job in this Assignment is to conduct some basic research
into the country of Colombia (a
neighboring country to Brazil) and examine the most important
historical events (political, economic,
and technological) that might impact the country of Colombia’s
business climate for the future of this
investment by Zip-6. Review the full Zip-6 Scenario found on
the course page.
After researching the historical events in Colombia, write your
analysis in an informative essay
addressing all the checklist items and advising Ravi and Keith
on a recommended course of action
and your justification for such an approach. Be sure to reference
any sources used in your work using
APA formatting.
Web Resources:
Colombia:
1. Go to the C.I.A.’s World Factbook resource and search for
information on Colombia
2. Go to the U.S. Department of State website and search for
information on Colombia
3. Go to Michigan State University: globalEDGE™ website:
http://globaledge.msu.edu/Countries/Colombia
You may also use information from other sources that are from
governmental or educational sites as
well. Do not use Wikipedia!
http://extmedia.kaplan.edu/business/AC465/AC465_1405B/KU_
inform_essay.pdf
http://extmedia.kaplan.edu/business/AC465/AC465_1405B/KU_
inform_essay.pdf
http://globaledge.msu.edu/Countries/Colombia
Unit 3 [220: Global Business]
Checklist:
1. What events (political, economic, and technological) are the
most important in recent years
that might have impacted the business culture in Colombia?
2. Do you feel that the Colombian economy today is sufficiently
robust to support the growth of
the sports drink industry and Zip-6’s entry within the country
and why?
3. Write your original informative essay in Standard American
English. Please be sure to include
an Introduction, Body (addressing all the checklist items), and
Conclusion.
● Pay special attention to correct grammar, style, and
mechanics.
● Respond to the checklist items in a complete manner.
● Ensure that your viewpoint and purpose are clearly stated.
● Demonstrate logical and appropriate transitions from one idea
to another.
● Your paper should be highly organized, logical, and focused.
Draft your response addressing these points in a minimum of
500 words or more in APA format and
citation style and submit the file to the Unit 3 Dropbox before
the close of the unit.
Name your file: Your FirstName_LastName_Assignment_Unit#.
Unit 3 Assignment Rubric
Category Description Weighting Possible
Points
40
Points
Earned
Content Colombia:
• Go to the C.I.A.’s World Factbook
resource and search for information on
Colombia
• Go to the U.S. Department of State
website and search for information on
Colombia
• Go to Michigan State University:
globalEDGE™ website:
http://globaledge.msu.edu/Countries/C
olombia
Answer provides correct and
complete information demonstrating
critical thinking:
http://extmedia.kaplan.edu/business/AB220/AB220_1501B/220_
reference.pdf
http://extmedia.kaplan.edu/business/AB220/AB220_1501B/220_
reference.pdf
Unit 3 [220: Global Business]
Checklist:
1. What events (political, economic, and
technological) are the most important in
recent years that might have impacted
the business culture in Colombia?
2. Do you feel that the Colombian
economy today is sufficiently robust to
support the growth of the sports drink
industry and Zip-6’s entry within the
country and why?
80%
16
16
Grammar
and
Mechanics
3. Write your original informative essay in
Standard American English. Please be
sure to include an Introduction, Body
(addressing all the checklist items), and
Conclusion.
● Pay special attention to correct
grammar, style, and mechanics.
● Respond to the checklist items in a
complete manner.
● Ensure that your viewpoint and
purpose are clearly stated.
● Demonstrate logical and
appropriate transitions from one
idea to another.
● Your paper should be highly
organized, logical, and focused.
Write a 500-word minimum informative
essay plus a separate title and a
reference page.
20%
8
Total:
100%
[40]
Possible
Points
[ ] Points
Earned
Additional Instructor Comments:

More Related Content

Similar to Six was significant in the name as the Persian herb formed the six.docx

Please write a detailed post responding to this question.Question.pdf
Please write a detailed post responding to this question.Question.pdfPlease write a detailed post responding to this question.Question.pdf
Please write a detailed post responding to this question.Question.pdf
amarndsons
 
A Project Work on Pepsico
A Project Work on PepsicoA Project Work on Pepsico
A Project Work on Pepsico
MusaPehlari
 
I need help with conducting a 9-cell industry attractiveness and bus.pdf
I need help with conducting a 9-cell industry attractiveness and bus.pdfI need help with conducting a 9-cell industry attractiveness and bus.pdf
I need help with conducting a 9-cell industry attractiveness and bus.pdf
allurafashions98
 
Please write a detailed assessment of the long-term advantages and d.pdf
Please write a detailed assessment of the long-term advantages and d.pdfPlease write a detailed assessment of the long-term advantages and d.pdf
Please write a detailed assessment of the long-term advantages and d.pdf
amarndsons
 
University of RichmondUR Scholarship RepositoryRobins Ca.docx
University of RichmondUR Scholarship RepositoryRobins Ca.docxUniversity of RichmondUR Scholarship RepositoryRobins Ca.docx
University of RichmondUR Scholarship RepositoryRobins Ca.docx
ouldparis
 
Pepsi final report
Pepsi final reportPepsi final report
Pepsi final report
kimi-deol
 
A project report on how to increase sale of pepsico sumeet
A project report on how to increase sale of pepsico sumeetA project report on how to increase sale of pepsico sumeet
A project report on how to increase sale of pepsico sumeet
amanpreet5612
 
THE BEVERAGE BATTLEFIELDIn 2007, the President and CEO of Coca-Col.pdf
THE BEVERAGE BATTLEFIELDIn 2007, the President and CEO of Coca-Col.pdfTHE BEVERAGE BATTLEFIELDIn 2007, the President and CEO of Coca-Col.pdf
THE BEVERAGE BATTLEFIELDIn 2007, the President and CEO of Coca-Col.pdf
infomalad
 
Marketing strategies of coca cola (1)
Marketing strategies of coca cola (1)Marketing strategies of coca cola (1)
Marketing strategies of coca cola (1)
Pinnakk Paul
 

Similar to Six was significant in the name as the Persian herb formed the six.docx (20)

Please write a detailed post responding to this question.Question.pdf
Please write a detailed post responding to this question.Question.pdfPlease write a detailed post responding to this question.Question.pdf
Please write a detailed post responding to this question.Question.pdf
 
A Project Work on Pepsico
A Project Work on PepsicoA Project Work on Pepsico
A Project Work on Pepsico
 
I need help with conducting a 9-cell industry attractiveness and bus.pdf
I need help with conducting a 9-cell industry attractiveness and bus.pdfI need help with conducting a 9-cell industry attractiveness and bus.pdf
I need help with conducting a 9-cell industry attractiveness and bus.pdf
 
Please write a detailed assessment of the long-term advantages and d.pdf
Please write a detailed assessment of the long-term advantages and d.pdfPlease write a detailed assessment of the long-term advantages and d.pdf
Please write a detailed assessment of the long-term advantages and d.pdf
 
University of RichmondUR Scholarship RepositoryRobins Ca.docx
University of RichmondUR Scholarship RepositoryRobins Ca.docxUniversity of RichmondUR Scholarship RepositoryRobins Ca.docx
University of RichmondUR Scholarship RepositoryRobins Ca.docx
 
Pepsi co
Pepsi coPepsi co
Pepsi co
 
"I mean Business" Quiz - 24x7
"I mean Business" Quiz - 24x7"I mean Business" Quiz - 24x7
"I mean Business" Quiz - 24x7
 
Sales promotion of pepsi
Sales promotion of pepsi Sales promotion of pepsi
Sales promotion of pepsi
 
Pepsi final report
Pepsi final reportPepsi final report
Pepsi final report
 
Pepsi company
Pepsi companyPepsi company
Pepsi company
 
A project report on how to increase sale of pepsico sumeet
A project report on how to increase sale of pepsico sumeetA project report on how to increase sale of pepsico sumeet
A project report on how to increase sale of pepsico sumeet
 
Pepsi-its industry in india
Pepsi-its industry in indiaPepsi-its industry in india
Pepsi-its industry in india
 
THE BEVERAGE BATTLEFIELDIn 2007, the President and CEO of Coca-Col.pdf
THE BEVERAGE BATTLEFIELDIn 2007, the President and CEO of Coca-Col.pdfTHE BEVERAGE BATTLEFIELDIn 2007, the President and CEO of Coca-Col.pdf
THE BEVERAGE BATTLEFIELDIn 2007, the President and CEO of Coca-Col.pdf
 
2 consumer-preference-coca-cola-versus
2 consumer-preference-coca-cola-versus2 consumer-preference-coca-cola-versus
2 consumer-preference-coca-cola-versus
 
Marketing strategies of coca cola (1)
Marketing strategies of coca cola (1)Marketing strategies of coca cola (1)
Marketing strategies of coca cola (1)
 
Biz finals
Biz finalsBiz finals
Biz finals
 
Biz finals
Biz finalsBiz finals
Biz finals
 
Biz finals
Biz finalsBiz finals
Biz finals
 
Lay.pdf
Lay.pdfLay.pdf
Lay.pdf
 
Pepsico a global brand
Pepsico a global brandPepsico a global brand
Pepsico a global brand
 

More from whitneyleman54422

In this task, you will write an analysis (suggested length of 3–5 .docx
In this task, you will write an analysis (suggested length of 3–5 .docxIn this task, you will write an analysis (suggested length of 3–5 .docx
In this task, you will write an analysis (suggested length of 3–5 .docx
whitneyleman54422
 
In this SLP you will identify where the major transportation modes a.docx
In this SLP you will identify where the major transportation modes a.docxIn this SLP you will identify where the major transportation modes a.docx
In this SLP you will identify where the major transportation modes a.docx
whitneyleman54422
 
In this module the student will present writing which focuses attent.docx
In this module the student will present writing which focuses attent.docxIn this module the student will present writing which focuses attent.docx
In this module the student will present writing which focuses attent.docx
whitneyleman54422
 
In this essay you should combine your practice responding and analyz.docx
In this essay you should combine your practice responding and analyz.docxIn this essay you should combine your practice responding and analyz.docx
In this essay you should combine your practice responding and analyz.docx
whitneyleman54422
 
In this Discussion, pick one film to write about and answer ques.docx
In this Discussion, pick one film to write about and answer ques.docxIn this Discussion, pick one film to write about and answer ques.docx
In this Discussion, pick one film to write about and answer ques.docx
whitneyleman54422
 
In this assignment, you will identify and interview a family who.docx
In this assignment, you will identify and interview a family who.docxIn this assignment, you will identify and interview a family who.docx
In this assignment, you will identify and interview a family who.docx
whitneyleman54422
 
In this assignment, I want you to locate two pieces of news detailin.docx
In this assignment, I want you to locate two pieces of news detailin.docxIn this assignment, I want you to locate two pieces of news detailin.docx
In this assignment, I want you to locate two pieces of news detailin.docx
whitneyleman54422
 
In the provided scenario there are a few different crimes being .docx
In the provided scenario there are a few different crimes being .docxIn the provided scenario there are a few different crimes being .docx
In the provided scenario there are a few different crimes being .docx
whitneyleman54422
 
STOP THE MEETING MADNESS HOW TO FREE UP TIME FOR ME.docx
STOP  THE MEETING MADNESS HOW TO FREE UP TIME FOR ME.docxSTOP  THE MEETING MADNESS HOW TO FREE UP TIME FOR ME.docx
STOP THE MEETING MADNESS HOW TO FREE UP TIME FOR ME.docx
whitneyleman54422
 
Stoichiometry Lab – The Chemistry Behind Carbonates reacting with .docx
Stoichiometry Lab – The Chemistry Behind Carbonates reacting with .docxStoichiometry Lab – The Chemistry Behind Carbonates reacting with .docx
Stoichiometry Lab – The Chemistry Behind Carbonates reacting with .docx
whitneyleman54422
 
Stock-Trak Portfolio Report Write-Up GuidelinesYou may want to.docx
Stock-Trak Portfolio Report Write-Up GuidelinesYou may want to.docxStock-Trak Portfolio Report Write-Up GuidelinesYou may want to.docx
Stock-Trak Portfolio Report Write-Up GuidelinesYou may want to.docx
whitneyleman54422
 

More from whitneyleman54422 (20)

In this unit, you will experience the powerful impact communication .docx
In this unit, you will experience the powerful impact communication .docxIn this unit, you will experience the powerful impact communication .docx
In this unit, you will experience the powerful impact communication .docx
 
In this task, you will write an analysis (suggested length of 3–5 .docx
In this task, you will write an analysis (suggested length of 3–5 .docxIn this task, you will write an analysis (suggested length of 3–5 .docx
In this task, you will write an analysis (suggested length of 3–5 .docx
 
In this SLP you will identify where the major transportation modes a.docx
In this SLP you will identify where the major transportation modes a.docxIn this SLP you will identify where the major transportation modes a.docx
In this SLP you will identify where the major transportation modes a.docx
 
In this module the student will present writing which focuses attent.docx
In this module the student will present writing which focuses attent.docxIn this module the student will present writing which focuses attent.docx
In this module the student will present writing which focuses attent.docx
 
In this module, we looked at a variety of styles in the Renaissa.docx
In this module, we looked at a variety of styles in the Renaissa.docxIn this module, we looked at a variety of styles in the Renaissa.docx
In this module, we looked at a variety of styles in the Renaissa.docx
 
In this experiential learning experience, you will evaluate a health.docx
In this experiential learning experience, you will evaluate a health.docxIn this experiential learning experience, you will evaluate a health.docx
In this experiential learning experience, you will evaluate a health.docx
 
In this essay you should combine your practice responding and analyz.docx
In this essay you should combine your practice responding and analyz.docxIn this essay you should combine your practice responding and analyz.docx
In this essay you should combine your practice responding and analyz.docx
 
In this Discussion, pick one film to write about and answer ques.docx
In this Discussion, pick one film to write about and answer ques.docxIn this Discussion, pick one film to write about and answer ques.docx
In this Discussion, pick one film to write about and answer ques.docx
 
In this assignment, you will identify and interview a family who.docx
In this assignment, you will identify and interview a family who.docxIn this assignment, you will identify and interview a family who.docx
In this assignment, you will identify and interview a family who.docx
 
In this assignment, you will assess the impact of health legisla.docx
In this assignment, you will assess the impact of health legisla.docxIn this assignment, you will assess the impact of health legisla.docx
In this assignment, you will assess the impact of health legisla.docx
 
In this assignment, you will create a presentation. Select a topic o.docx
In this assignment, you will create a presentation. Select a topic o.docxIn this assignment, you will create a presentation. Select a topic o.docx
In this assignment, you will create a presentation. Select a topic o.docx
 
In this assignment, the student will understand the growth and devel.docx
In this assignment, the student will understand the growth and devel.docxIn this assignment, the student will understand the growth and devel.docx
In this assignment, the student will understand the growth and devel.docx
 
In this assignment, I want you to locate two pieces of news detailin.docx
In this assignment, I want you to locate two pieces of news detailin.docxIn this assignment, I want you to locate two pieces of news detailin.docx
In this assignment, I want you to locate two pieces of news detailin.docx
 
In this assignment worth 150 points, you will consider the present-d.docx
In this assignment worth 150 points, you will consider the present-d.docxIn this assignment worth 150 points, you will consider the present-d.docx
In this assignment worth 150 points, you will consider the present-d.docx
 
In the readings thus far, the text identified many early American in.docx
In the readings thus far, the text identified many early American in.docxIn the readings thus far, the text identified many early American in.docx
In the readings thus far, the text identified many early American in.docx
 
In the Roman Colony, leaders, or members of the court, were to be.docx
In the Roman Colony, leaders, or members of the court, were to be.docxIn the Roman Colony, leaders, or members of the court, were to be.docx
In the Roman Colony, leaders, or members of the court, were to be.docx
 
In the provided scenario there are a few different crimes being .docx
In the provided scenario there are a few different crimes being .docxIn the provided scenario there are a few different crimes being .docx
In the provided scenario there are a few different crimes being .docx
 
STOP THE MEETING MADNESS HOW TO FREE UP TIME FOR ME.docx
STOP  THE MEETING MADNESS HOW TO FREE UP TIME FOR ME.docxSTOP  THE MEETING MADNESS HOW TO FREE UP TIME FOR ME.docx
STOP THE MEETING MADNESS HOW TO FREE UP TIME FOR ME.docx
 
Stoichiometry Lab – The Chemistry Behind Carbonates reacting with .docx
Stoichiometry Lab – The Chemistry Behind Carbonates reacting with .docxStoichiometry Lab – The Chemistry Behind Carbonates reacting with .docx
Stoichiometry Lab – The Chemistry Behind Carbonates reacting with .docx
 
Stock-Trak Portfolio Report Write-Up GuidelinesYou may want to.docx
Stock-Trak Portfolio Report Write-Up GuidelinesYou may want to.docxStock-Trak Portfolio Report Write-Up GuidelinesYou may want to.docx
Stock-Trak Portfolio Report Write-Up GuidelinesYou may want to.docx
 

Recently uploaded

1029 - Danh muc Sach Giao Khoa 10 . pdf
1029 -  Danh muc Sach Giao Khoa 10 . pdf1029 -  Danh muc Sach Giao Khoa 10 . pdf
1029 - Danh muc Sach Giao Khoa 10 . pdf
QucHHunhnh
 
1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi  6.pdf1029-Danh muc Sach Giao Khoa khoi  6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf
QucHHunhnh
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
heathfieldcps1
 
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
ZurliaSoop
 

Recently uploaded (20)

Mehran University Newsletter Vol-X, Issue-I, 2024
Mehran University Newsletter Vol-X, Issue-I, 2024Mehran University Newsletter Vol-X, Issue-I, 2024
Mehran University Newsletter Vol-X, Issue-I, 2024
 
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
 
UGC NET Paper 1 Mathematical Reasoning & Aptitude.pdf
UGC NET Paper 1 Mathematical Reasoning & Aptitude.pdfUGC NET Paper 1 Mathematical Reasoning & Aptitude.pdf
UGC NET Paper 1 Mathematical Reasoning & Aptitude.pdf
 
Kodo Millet PPT made by Ghanshyam bairwa college of Agriculture kumher bhara...
Kodo Millet  PPT made by Ghanshyam bairwa college of Agriculture kumher bhara...Kodo Millet  PPT made by Ghanshyam bairwa college of Agriculture kumher bhara...
Kodo Millet PPT made by Ghanshyam bairwa college of Agriculture kumher bhara...
 
Single or Multiple melodic lines structure
Single or Multiple melodic lines structureSingle or Multiple melodic lines structure
Single or Multiple melodic lines structure
 
How to Manage Global Discount in Odoo 17 POS
How to Manage Global Discount in Odoo 17 POSHow to Manage Global Discount in Odoo 17 POS
How to Manage Global Discount in Odoo 17 POS
 
1029 - Danh muc Sach Giao Khoa 10 . pdf
1029 -  Danh muc Sach Giao Khoa 10 . pdf1029 -  Danh muc Sach Giao Khoa 10 . pdf
1029 - Danh muc Sach Giao Khoa 10 . pdf
 
Making communications land - Are they received and understood as intended? we...
Making communications land - Are they received and understood as intended? we...Making communications land - Are they received and understood as intended? we...
Making communications land - Are they received and understood as intended? we...
 
This PowerPoint helps students to consider the concept of infinity.
This PowerPoint helps students to consider the concept of infinity.This PowerPoint helps students to consider the concept of infinity.
This PowerPoint helps students to consider the concept of infinity.
 
How to Give a Domain for a Field in Odoo 17
How to Give a Domain for a Field in Odoo 17How to Give a Domain for a Field in Odoo 17
How to Give a Domain for a Field in Odoo 17
 
Mixin Classes in Odoo 17 How to Extend Models Using Mixin Classes
Mixin Classes in Odoo 17  How to Extend Models Using Mixin ClassesMixin Classes in Odoo 17  How to Extend Models Using Mixin Classes
Mixin Classes in Odoo 17 How to Extend Models Using Mixin Classes
 
1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi  6.pdf1029-Danh muc Sach Giao Khoa khoi  6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf
 
Application orientated numerical on hev.ppt
Application orientated numerical on hev.pptApplication orientated numerical on hev.ppt
Application orientated numerical on hev.ppt
 
Fostering Friendships - Enhancing Social Bonds in the Classroom
Fostering Friendships - Enhancing Social Bonds  in the ClassroomFostering Friendships - Enhancing Social Bonds  in the Classroom
Fostering Friendships - Enhancing Social Bonds in the Classroom
 
Unit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptxUnit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptx
 
Introduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The BasicsIntroduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The Basics
 
Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
 
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
 
Google Gemini An AI Revolution in Education.pptx
Google Gemini An AI Revolution in Education.pptxGoogle Gemini An AI Revolution in Education.pptx
Google Gemini An AI Revolution in Education.pptx
 

Six was significant in the name as the Persian herb formed the six.docx

  • 1. Six was significant in the name as the Persian herb formed the sixth principal ingredient and the basis for their secret formula! So, in 2003, Ravi and Keith formed the Zip-6 Corporation with each controlling an equal number of the firm’s shares and Ravi as CEO and Keith as COO. Initial growth was slow the first year as the new firm lacked adequate capitalization to allow it to manufacture and bottle the product, depending instead on other established bottlers to produce and bottle it for Zip-6. Nevertheless, the nascent business was able to generate $512,000 in first year revenues. More importantly, a number college football, basketball, and soccer endorsements were secured throughout the South. The year 1996 was a watershed for the firm with the entry of Nils Young, a wealthy venture capitalist into the firm. Young was impressed with Ravi, Keith, and Zip-6 and agreed to purchase one-third of the firm for $4.5 million, leaving Ravi and Keith in charge. This allowed the firm to purchase an existing manufacturing and bottling facility that had been previously used by a brand that had been purchased by a global beverage firm and merged into their existing manufacturing facilities. This finally gave Zip-6 a home of its own. The infusion of cash also allowed Zip-6 to mount its first serious national marketing effort. By the close of 2006, annual revenues were $2.3 million and were growing at an annual rate of 26%. By 2000, Zip-6 was a well-established fixture on most U.S. sports drink shelves. Annual revenues stood at $5.7 million. Ravi, Keith, and Nils all felt that spending some of the firm’s retained earnings to purchase some prime-time advertising spots on the Super Bowl game that year would be a good investment and so $1.2 million was used to mount the firm’s first “big time” advertising campaign. The results were immediate and dramatic! Demand nearly doubled and two shifts were implemented in producing and bottling the product. By second quarter 2002, annual revenues were at $8.5
  • 2. million on strong demand. There was however, one particularly troubling situation that had been building, and reached a peak in that year. The deteriorating political climate within Iran had all but stopped shipments of the Persian herb to Zip-6’s British importers of the product. Ravi and his father had earlier anticipated this problem and had attempted to cultivate this herb in the United States unsuccessfully. Their attention focused on the tiny island of Socotra in the Indian Ocean. This remote island, claimed by the nation of Yemen in the Indian Ocean was found to grow a native species of the Zip-6 secret herb, nearly identical to the rare Persian herb and fully suitable for use in the sports drink. A Yemeni herb trader was contracted to supply Zip-6 through the port of Aden. Ravi and Keith, while pleased with the upward growth of Zip-6, were nevertheless candid about the product’s market position within the U.S. where the market was dominated by several brands of sports drinks. In that same year, a new breed of drinks was also beginning to rise in sales – energy drinks. Zip-6 occupied a somewhat interesting position in this market as it is a sports drink with some of the attributes of an energy drink. They hired a market consultant who advised them that market potential existed for Zip-6 outside of the United States. Several potential foreign markets were identified. These were Mexico, Brazil, and Korea. Zip-6 thus began a multi-year journey from U.S. domestic sports drink manufacturer to Zip-6 Inc. a global sports drink manufacturer and bottler. Today, ten years later, Zip-6 is a global sports drink manufacturer with active global markets in Brazil, Korea, the United States, and Mexico. The firm operates bottling and distribution facilities in the U.S., Brazil, and Mexico. It operates within Korea through a licensing agreement with Lotte Chilsung, a leading Korean soft drink manufacturer and bottler. It is pursuing exploratory research into additional South American and Asian markets Six was significant in the name as the Persian herb formed the sixth principal ingredient and the basis for their secret formula!
  • 3. So, in 2003, Ravi and Keith formed the Zip-6 Corporation with each controlling an equal number of the firm’s shares and Ravi as CEO and Keith as COO. Initial growth was slow the first year as the new firm lacked adequate capitalization to allow it to manufacture and bottle the product, depending instead on other established bottlers to produce and bottle it for Zip-6. Nevertheless, the nascent business was able to generate $512,000 in first year revenues. More importantly, a number college football, basketball, and soccer endorsements were secured throughout the South. The year 1996 was a watershed for the firm with the entry of Nils Young, a wealthy venture capitalist into the firm. Young was impressed with Ravi, Keith, and Zip-6 and agreed to purchase one-third of the firm for $4.5 million, leaving Ravi and Keith in charge. This allowed the firm to purchase an existing manufacturing and bottling facility that had been previously used by a brand that had been purchased by a global beverage firm and merged into their existing manufacturing facilities. This finally gave Zip-6 a home of its own. The infusion of cash also allowed Zip-6 to mount its first serious national marketing effort. By the close of 2006, annual revenues were $2.3 million and were growing at an annual rate of 26%. By 2000, Zip-6 was a well-established fixture on most U.S. sports drink shelves. Annual revenues stood at $5.7 million. Ravi, Keith, and Nils all felt that spending some of the firm’s retained earnings to purchase some prime-time advertising spots on the Super Bowl game that year would be a good investment and so $1.2 million was used to mount the firm’s first “big time” advertising campaign. The results were immediate and dramatic! Demand nearly doubled and two shifts were implemented in producing and bottling the product. By second quarter 2002, annual revenues were at $8.5 million on strong demand. There was however, one particularly troubling situation that had been building, and reached a peak in that year. The deteriorating political climate within Iran had all but stopped shipments of the Persian herb to Zip-6’s British
  • 4. importers of the product. Ravi and his father had earlier anticipated this problem and had attempted to cultivate this herb in the United States unsuccessfully. Their attention focused on the tiny island of Socotra in the Indian Ocean. This remote island, claimed by the nation of Yemen in the Indian Ocean was found to grow a native species of the Zip-6 secret herb, nearly identical to the rare Persian herb and fully suitable for use in the sports drink. A Yemeni herb trader was contracted to supply Zip-6 through the port of Aden. Ravi and Keith, while pleased with the upward growth of Zip-6, were nevertheless candid about the product’s market position within the U.S. where the market was dominated by several brands of sports drinks. In that same year, a new breed of drinks was also beginning to rise in sales – energy drinks. Zip-6 occupied a somewhat interesting position in this market as it is a sports drink with some of the attributes of an energy drink. They hired a market consultant who advised them that market potential existed for Zip-6 outside of the United States. Several potential foreign markets were identified. These were Mexico, Brazil, and Korea. Zip-6 thus began a multi-year journey from U.S. domestic sports drink manufacturer to Zip-6 Inc. a global sports drink manufacturer and bottler. Today, ten years later, Zip-6 is a global sports drink manufacturer with active global markets in Brazil, Korea, the United States, and Mexico. The firm operates bottling and distribution facilities in the U.S., Brazil, and Mexico. It operates within Korea through a licensing agreement with Lotte Chilsung, a leading Korean soft drink manufacturer and bottler. It is pursuing exploratory research into additional South American and Asian markets Following graduation in 1993, Ravi went to work at a global beverage firm in Atlanta as a chemist while Keith settled in to his new job with a large accounting firm in its Atlanta offices. The two stayed in close contact over the next few years and made it a practice to spend one evening each week visiting a favorite sports bar and talking about sports and their futures. On
  • 5. one such visit, Ravi excitedly confided to Keith that he had discovered a formula for a sports drink that provided exceptional hydration and energy but contained one ingredient that had been banned by the FDA as potentially harmful. While visiting his father in Dearborn for the Holidays, he discussed this with him since Ravi’s father had been a college chemistry professor in his native Iran. Ravi’s father quickly noted that an ancient Persian herb could provide the same chemical properties as the problematic ingredient without any of the potentially unwanted side effects. Ravi discussed with his friend the possibilities of offering this formula to his employer but indicated he would rather like to develop it himself but lacked the skills to do so. Over the next several weeks, Ravi and Keith discussed this over a series of bar visits and finally decided to launch Zip-6 as a startup venture brand. Six was significant in the name as the Persian herb formed the sixth principal ingredient and the basis for their secret formula! So, in 2003, Ravi and Keith formed the Zip-6 Corporation with each controlling an equal number of the firm’s shares and Ravi as CEO and Keith as COO. Initial growth was slow the first year as the new firm lacked adequate capitalization to allow it to manufacture and bottle the product, depending instead on other established bottlers to produce and bottle it for Zip-6. Nevertheless, the nascent business was able to generate $512,000 in first year revenues. More importantly, a number college football, basketball, and soccer endorsements were secured throughout the South. The year 1996 was a watershed for the firm with the entry of Nils Young, a wealthy venture capitalist into the firm. Young was impressed with Ravi, Keith, and Zip-6 and agreed to purchase one-third of the firm for $4.5 million, leaving Ravi and Keith in charge. This allowed the firm to purchase an existing manufacturing and bottling facility that had been previously used by a brand that had been purchased by a global beverage firm and merged into their existing manufacturing facilities. This finally gave Zip-6 a home of its own. The
  • 6. infusion of cash also allowed Zip-6 to mount its first serious national marketing effort. By the close of 2006, annual revenues were $2.3 million and were growing at an annual rate of 26%. By 2000, Zip-6 was a well-established fixture on most U.S. sports drink shelves. Annual revenues stood at $5.7 million. Ravi, Keith, and Nils all felt that spending some of the firm’s retained earnings to purchase some prime-time advertising spots on the Super Bowl game that year would be a good investment and so $1.2 million was used to mount the firm’s first “big time” advertising campaign. The results were immediate and dramatic! Demand nearly doubled and two shifts were implemented in producing and bottling the product. By second quarter 2002, annual revenues were at $8.5 million on strong demand. There was however, one particularly troubling situation that had been building, and reached a peak in that year. The deteriorating political climate within Iran had all but stopped shipments of the Persian herb to Zip-6’s British importers of the product. Ravi and his father had earlier anticipated this problem and had attempted to cultivate this herb in the United States unsuccessfully. Their attention focused on the tiny island of Socotra in the Indian Ocean. This remote island, claimed by the nation of Yemen in the Indian Ocean was found to grow a native species of the Zip-6 secret herb, nearly identical to the rare Persian herb and fully suitable for use in the sports drink. A Yemeni herb trader was contracted to supply Zip-6 through the port of Aden. Ravi and Keith, while pleased with the upward growth of Zip-6, were nevertheless candid about the product’s market position within the U.S. where the market was dominated by several brands of sports drinks. In that same year, a new breed of drinks was also beginning to rise in sales – energy drinks. Zip-6 occupied a somewhat interesting position in this market as it is a sports drink with some of the attributes of an energy drink. They hired a market consultant who advised them that market potential existed for Zip-6 outside of the United States. Several potential foreign markets were identified. These were
  • 7. Mexico, Brazil, and Korea. Zip-6 thus began a multi-year journey from U.S. domestic sports drink manufacturer to Zip-6 Inc. a global sports drink manufacturer and bottler. Today, ten years later, Zip-6 is a global sports drink manufacturer with active global markets in Brazil, Korea, the United States, and Mexico. The firm operates bottling and distribution facilities in the U.S., Brazil, and Mexico. It operates within Korea through a licensing agreement with Lotte Chilsung, a leading Korean soft drink manufacturer and bottler. It is pursuing exploratory research into additional South American and Asian markets. Following graduation in 1993, Ravi went to work at a global beverage firm in Atlanta as a chemist while Keith settled in to his new job with a large accounting firm in its Atlanta offices. The two stayed in close contact over the next few years and made it a practice to spend one evening each week visiting a favorite sports bar and talking about sports and their futures. On one such visit, Ravi excitedly confided to Keith that he had discovered a formula for a sports drink that provided exceptional hydration and energy but contained one ingredient that had been banned by the FDA as potentially harmful. While visiting his father in Dearborn for the Holidays, he discussed this with him since Ravi’s father had been a college chemistry professor in his native Iran. Ravi’s father quickly noted that an ancient Persian herb could provide the same chemical properties as the problematic ingredient without any of the potentially unwanted side effects. Ravi discussed with his friend the possibilities of offering this formula to his employer but indicated he would rather like to develop it himself but lacked the skills to do so. Over the next several weeks, Ravi and Keith discussed this over a series of bar visits and finally decided to launch Zip-6 as a startup venture brand. Six was significant in the name as the Persian herb formed the sixth principal ingredient and the basis for their secret formula! So, in 2003, Ravi and Keith formed the Zip-6 Corporation with
  • 8. each controlling an equal number of the firm’s shares and Ravi as CEO and Keith as COO. Initial growth was slow the first year as the new firm lacked adequate capitalization to allow it to manufacture and bottle the product, depending instead on other established bottlers to produce and bottle it for Zip-6. Nevertheless, the nascent business was able to generate $512,000 in first year revenues. More importantly, a number college football, basketball, and soccer endorsements were secured throughout the South. The year 1996 was a watershed for the firm with the entry of Nils Young, a wealthy venture capitalist into the firm. Young was impressed with Ravi, Keith, and Zip-6 and agreed to purchase one-third of the firm for $4.5 million, leaving Ravi and Keith in charge. This allowed the firm to purchase an existing manufacturing and bottling facility that had been previously used by a brand that had been purchased by a global beverage firm and merged into their existing manufacturing facilities. This finally gave Zip-6 a home of its own. The infusion of cash also allowed Zip-6 to mount its first serious national marketing effort. By the close of 2006, annual revenues were $2.3 million and were growing at an annual rate of 26%. By 2000, Zip-6 was a well-established fixture on most U.S. sports drink shelves. Annual revenues stood at $5.7 million. Ravi, Keith, and Nils all felt that spending some of the firm’s retained earnings to purchase some prime-time advertising spots on the Super Bowl game that year would be a good investment and so $1.2 million was used to mount the firm’s first “big time” advertising campaign. The results were immediate and dramatic! Demand nearly doubled and two shifts were implemented in producing and bottling the product. By second quarter 2002, annual revenues were at $8.5 million on strong demand. There was however, one particularly troubling situation that had been building, and reached a peak in that year. The deteriorating political climate within Iran had all but stopped shipments of the Persian herb to Zip-6’s British importers of the product. Ravi and his father had earlier
  • 9. anticipated this problem and had attempted to cultivate this herb in the United States unsuccessfully. Their attention focused on the tiny island of Socotra in the Indian Ocean. This remote island, claimed by the nation of Yemen in the Indian Ocean was found to grow a native species of the Zip-6 secret herb, nearly identical to the rare Persian herb and fully suitable for use in the sports drink. A Yemeni herb trader was contracted to supply Zip-6 through the port of Aden. Ravi and Keith, while pleased with the upward growth of Zip-6, were nevertheless candid about the product’s market position within the U.S. where the market was dominated by several brands of sports drinks. In that same year, a new breed of drinks was also beginning to rise in sales – energy drinks. Zip-6 occupied a somewhat interesting position in this market as it is a sports drink with some of the attributes of an energy drink. They hired a market consultant who advised them that market potential existed for Zip-6 outside of the United States. Several potential foreign markets were identified. These were Mexico, Brazil, and Korea. Zip-6 thus began a multi-year journey from U.S. domestic sports drink manufacturer to Zip-6 Inc. a global sports drink manufacturer and bottler. Today, ten years later, Zip-6 is a global sports drink manufacturer with active global markets in Brazil, Korea, the United States, and Mexico. The firm operates bottling and distribution facilities in the U.S., Brazil, and Mexico. It operates within Korea through a licensing agreement with Lotte Chilsung, a leading Korean soft drink manufacturer and bottler. It is pursuing exploratory research into additional South American and Asian markets. Six was significant in the name as the Persian herb formed the sixth principal ingredient and the basis for their secret formula! So, in 2003, Ravi and Keith formed the Zip-6 Corporation with each controlling an equal number of the firm’s shares and Ravi as CEO and Keith as COO. Initial growth was slow the first year as the new firm lacked adequate capitalization to allow it to manufacture and bottle the
  • 10. product, depending instead on other established bottlers to produce and bottle it for Zip-6. Nevertheless, the nascent business was able to generate $512,000 in first year revenues. More importantly, a number college football, basketball, and soccer endorsements were secured throughout the South. The year 1996 was a watershed for the firm with the entry of Nils Young, a wealthy venture capitalist into the firm. Young was impressed with Ravi, Keith, and Zip-6 and agreed to purchase one-third of the firm for $4.5 million, leaving Ravi and Keith in charge. This allowed the firm to purchase an existing manufacturing and bottling facility that had been previously used by a brand that had been purchased by a global beverage firm and merged into their existing manufacturing facilities. This finally gave Zip-6 a home of its own. The infusion of cash also allowed Zip-6 to mount its first serious national marketing effort. By the close of 2006, annual revenues were $2.3 million and were growing at an annual rate of 26%. By 2000, Zip-6 was a well-established fixture on most U.S. sports drink shelves. Annual revenues stood at $5.7 million. Ravi, Keith, and Nils all felt that spending some of the firm’s retained earnings to purchase some prime-time advertising spots on the Super Bowl game that year would be a good investment and so $1.2 million was used to mount the firm’s first “big time” advertising campaign. The results were immediate and dramatic! Demand nearly doubled and two shifts were implemented in producing and bottling the product. By second quarter 2002, annual revenues were at $8.5 million on strong demand. There was however, one particularly troubling situation that had been building, and reached a peak in that year. The deteriorating political climate within Iran had all but stopped shipments of the Persian herb to Zip-6’s British importers of the product. Ravi and his father had earlier anticipated this problem and had attempted to cultivate this herb in the United States unsuccessfully. Their attention focused on the tiny island of Socotra in the Indian Ocean. This remote island, claimed by the nation of Yemen in the Indian Ocean was
  • 11. found to grow a native species of the Zip-6 secret herb, nearly identical to the rare Persian herb and fully suitable for use in the sports drink. A Yemeni herb trader was contracted to supply Zip-6 through the port of Aden. Ravi and Keith, while pleased with the upward growth of Zip-6, were nevertheless candid about the product’s market position within the U.S. where the market was dominated by several brands of sports drinks. In that same year, a new breed of drinks was also beginning to rise in sales – energy drinks. Zip-6 occupied a somewhat interesting position in this market as it is a sports drink with some of the attributes of an energy drink. They hired a market consultant who advised them that market potential existed for Zip-6 outside of the United States. Several potential foreign markets were identified. These were Mexico, Brazil, and Korea. Zip-6 thus began a multi-year journey from U.S. domestic sports drink manufacturer to Zip-6 Inc. a global sports drink manufacturer and bottler. Today, ten years later, Zip-6 is a global sports drink manufacturer with active global markets in Brazil, Korea, the United States, and Mexico. The firm operates bottling and distribution facilities in the U.S., Brazil, and Mexico. It operates within Korea through a licensing agreement with Lotte Chilsung, a leading Korean soft drink manufacturer and bottler. It is pursuing exploratory research into additional South American and Asian markets. Six was significant in the name as the Persian herb formed the sixth principal ingredient and the basis for their secret formula! So, in 2003, Ravi and Keith formed the Zip-6 Corporation with each controlling an equal number of the firm’s shares and Ravi as CEO and Keith as COO. Initial growth was slow the first year as the new firm lacked adequate capitalization to allow it to manufacture and bottle the product, depending instead on other established bottlers to produce and bottle it for Zip-6. Nevertheless, the nascent business was able to generate $512,000 in first year revenues. More importantly, a number college football, basketball, and
  • 12. soccer endorsements were secured throughout the South. The year 1996 was a watershed for the firm with the entry of Nils Young, a wealthy venture capitalist into the firm. Young was impressed with Ravi, Keith, and Zip-6 and agreed to purchase one-third of the firm for $4.5 million, leaving Ravi and Keith in charge. This allowed the firm to purchase an existing manufacturing and bottling facility that had been previously used by a brand that had been purchased by a global beverage firm and merged into their existing manufacturing facilities. This finally gave Zip-6 a home of its own. The infusion of cash also allowed Zip-6 to mount its first serious national marketing effort. By the close of 2006, annual revenues were $2.3 million and were growing at an annual rate of 26%. By 2000, Zip-6 was a well-established fixture on most U.S. sports drink shelves. Annual revenues stood at $5.7 million. Ravi, Keith, and Nils all felt that spending some of the firm’s retained earnings to purchase some prime-time advertising spots on the Super Bowl game that year would be a good investment and so $1.2 million was used to mount the firm’s first “big time” advertising campaign. The results were immediate and dramatic! Demand nearly doubled and two shifts were implemented in producing and bottling the product. By second quarter 2002, annual revenues were at $8.5 million on strong demand. There was however, one particularly troubling situation that had been building, and reached a peak in that year. The deteriorating political climate within Iran had all but stopped shipments of the Persian herb to Zip-6’s British importers of the product. Ravi and his father had earlier anticipated this problem and had attempted to cultivate this herb in the United States unsuccessfully. Their attention focused on the tiny island of Socotra in the Indian Ocean. This remote island, claimed by the nation of Yemen in the Indian Ocean was found to grow a native species of the Zip-6 secret herb, nearly identical to the rare Persian herb and fully suitable for use in the sports drink. A Yemeni herb trader was contracted to supply Zip-6 through the port of Aden.
  • 13. Ravi and Keith, while pleased with the upward growth of Zip-6, were nevertheless candid about the product’s market position within the U.S. where the market was dominated by several brands of sports drinks. In that same year, a new breed of drinks was also beginning to rise in sales – energy drinks. Zip-6 occupied a somewhat interesting position in this market as it is a sports drink with some of the attributes of an energy drink. They hired a market consultant who advised them that market potential existed for Zip-6 outside of the United States. Several potential foreign markets were identified. These were Mexico, Brazil, and Korea. Zip-6 thus began a multi-year journey from U.S. domestic sports drink manufacturer to Zip-6 Inc. a global sports drink manufacturer and bottler. Today, ten years later, Zip-6 is a global sports drink manufacturer with active global markets in Brazil, Korea, the United States, and Mexico. The firm operates bottling and distribution facilities in the U.S., Brazil, and Mexico. It operates within Korea through a licensing agreement with Lotte Chilsung, a leading Korean soft drink manufacturer and bottler. It is pursuing exploratory research into additional South American and Asian markets Six was significant in the name as the Persian herb formed the sixth principal ingredient and the basis for their secret formula! So, in 2003, Ravi and Keith formed the Zip-6 Corporation with each controlling an equal number of the firm’s shares and Ravi as CEO and Keith as COO. Initial growth was slow the first year as the new firm lacked adequate capitalization to allow it to manufacture and bottle the product, depending instead on other established bottlers to produce and bottle it for Zip-6. Nevertheless, the nascent business was able to generate $512,000 in first year revenues. More importantly, a number college football, basketball, and soccer endorsements were secured throughout the South. The year 1996 was a watershed for the firm with the entry of Nils Young, a wealthy venture capitalist into the firm. Young was impressed with Ravi, Keith, and Zip-6 and agreed to
  • 14. purchase one-third of the firm for $4.5 million, leaving Ravi and Keith in charge. This allowed the firm to purchase an existing manufacturing and bottling facility that had been previously used by a brand that had been purchased by a global beverage firm and merged into their existing manufacturing facilities. This finally gave Zip-6 a home of its own. The infusion of cash also allowed Zip-6 to mount its first serious national marketing effort. By the close of 2006, annual revenues were $2.3 million and were growing at an annual rate of 26%. By 2000, Zip-6 was a well-established fixture on most U.S. sports drink shelves. Annual revenues stood at $5.7 million. Ravi, Keith, and Nils all felt that spending some of the firm’s retained earnings to purchase some prime-time advertising spots on the Super Bowl game that year would be a good investment and so $1.2 million was used to mount the firm’s first “big time” advertising campaign. The results were immediate and dramatic! Demand nearly doubled and two shifts were implemented in producing and bottling the product. By second quarter 2002, annual revenues were at $8.5 million on strong demand. There was however, one particularly troubling situation that had been building, and reached a peak in that year. The deteriorating political climate within Iran had all but stopped shipments of the Persian herb to Zip-6’s British importers of the product. Ravi and his father had earlier anticipated this problem and had attempted to cultivate this herb in the United States unsuccessfully. Their attention focused on the tiny island of Socotra in the Indian Ocean. This remote island, claimed by the nation of Yemen in the Indian Ocean was found to grow a native species of the Zip-6 secret herb, nearly identical to the rare Persian herb and fully suitable for use in the sports drink. A Yemeni herb trader was contracted to supply Zip-6 through the port of Aden. Ravi and Keith, while pleased with the upward growth of Zip-6, were nevertheless candid about the product’s market position within the U.S. where the market was dominated by several brands of sports drinks. In that same year, a new breed
  • 15. of drinks was also beginning to rise in sales – energy drinks. Zip-6 occupied a somewhat interesting position in this market as it is a sports drink with some of the attributes of an energy drink. They hired a market consultant who advised them that market potential existed for Zip-6 outside of the United States. Several potential foreign markets were identified. These were Mexico, Brazil, and Korea. Zip-6 thus began a multi-year journey from U.S. domestic sports drink manufacturer to Zip-6 Inc. a global sports drink manufacturer and bottler. Today, ten years later, Zip-6 is a global sports drink manufacturer with active global markets in Brazil, Korea, the United States, and Mexico. The firm operates bottling and distribution facilities in the U.S., Brazil, and Mexico. It operates within Korea through a licensing agreement with Lotte Chilsung, a leading Korean soft drink manufacturer and bottler. It is pursuing exploratory research into additional South American and Asian markets Six was significant in the name as the Persian herb formed the sixth principal ingredient and the basis for their secret formula! So, in 2003, Ravi and Keith formed the Zip-6 Corporation with each controlling an equal number of the firm’s shares and Ravi as CEO and Keith as COO. Initial growth was slow the first year as the new firm lacked adequate capitalization to allow it to manufacture and bottle the product, depending instead on other established bottlers to produce and bottle it for Zip-6. Nevertheless, the nascent business was able to generate $512,000 in first year revenues. More importantly, a number college football, basketball, and soccer endorsements were secured throughout the South. Six was significant in the name as the Persian herb formed the sixth principal ingredient and the basis for their secret formula! So, in 2003, Ravi and Keith formed the Zip-6 Corporation with each controlling an equal number of the firm’s shares and Ravi as CEO and Keith as COO. Initial growth was slow the first year as the new firm lacked adequate capitalization to allow it to manufacture and bottle the
  • 16. product, depending instead on other established bottlers to produce and bottle it for Zip-6. Nevertheless, the nascent business was able to generate $512,000 in first year revenues. More importantly, a number college football, basketball, and soccer endorsements were secured throughout the South. Six was significant in the name as the Persian herb formed the sixth principal ingredient and the basis for their secret formula! So, in 2003, Ravi and Keith formed the Zip-6 Corporation with each controlling an equal number of the firm’s shares and Ravi as CEO and Keith as COO Initial growth was slow the first year as the new firm lacked adequate capitalization to allow it to manufacture and bottle the product, depending instead on other established bottlers to produce and bottle it for Zip-6. Nevertheless, the nascent business was able to generate $512,000 in first year revenues. More importantly, a number college football, basketball, and soccer endorsements were secured throughout the South. The year 1996 was a watershed for the firm with the entry of Nils Young, a wealthy venture capitalist into the firm. Young was impressed with Ravi, Keith, and Zip-6 and agreed to purchase one-third of the firm for $4.5 million, leaving Ravi and Keith in charge. This allowed the firm to purchase an existing manufacturing and bottling facility that had been previously used by a brand that had been purchased by a global beverage firm and merged into their existing manufacturing facilities. This finally gave Zip-6 a home of its own. The infusion of cash also allowed Zip-6 to mount its first serious national marketing effort. By the close of 2006, annual revenues were $2.3 million and were growing at an annual rate of 26%. By 2000, Zip-6 was a well-established fixture on most U.S. sports drink shelves. Annual revenues stood at $5.7 million. Ravi, Keith, and Nils all felt that spending some of the firm’s retained earnings to purchase some prime-time advertising spots on the Super Bowl game that year would be a good investment and so $1.2 million was used to mount the firm’s first “big time” advertising campaign. The results were immediate and
  • 17. dramatic! Demand nearly doubled and two shifts were implemented in producing and bottling the product. The year 1996 was a watershed for the firm with the entry of Nils Young, a wealthy venture capitalist into the firm. Young was impressed with Ravi, Keith, and Zip-6 and agreed to purchase one-third of the firm for $4.5 million, leaving Ravi and Keith in charge. This allowed the firm to purchase an existing manufacturing and bottling facility that had been previously used by a brand that had been purchased by a global beverage firm and merged into their existing manufacturing facilities. This finally gave Zip-6 a home of its own. The infusion of cash also allowed Zip-6 to mount its first serious national marketing effort. By the close of 2006, annual revenues were $2.3 million and were growing at an annual rate of 26%. By 2000, Zip-6 was a well-established fixture on most U.S. sports drink shelves. Annual revenues stood at $5.7 million. Ravi, Keith, and Nils all felt that spending some of the firm’s retained earnings to purchase some prime-time advertising spots on the Super Bowl game that year would be a good investment and so $1.2 million was used to mount the firm’s first “big time” advertising campaign. The results were immediate and dramatic! Demand nearly doubled and two shifts were implemented in producing and bottling the product. By 2000, Zip-6 was a well-established fixture on most U.S. sports drink shelves. Annual revenues stood at $5.7 million. Ravi, Keith, and Nils all felt that spending some of the firm’s retained earnings to purchase some prime-time advertising spots on the Super Bowl game that year would be a good investment and so $1.2 million was used to mount the firm’s first “big time” advertising campaign. The results were immediate and dramatic! Demand nearly doubled and two shifts were implemented in producing and bottling the product By second quarter 2002, annual revenues were at $8.5 million on strong demand. There was however, one particularly troubling situation that had been building, and reached a peak in that year. The deteriorating political climate within Iran had all but
  • 18. stopped shipments of the Persian herb to Zip-6’s British importers of the product. Ravi and his father had earlier anticipated this problem and had attempted to cultivate this herb in the United States unsuccessfully. Their attention focused on the tiny island of Socotra in the Indian Ocean. This remote island, claimed by the nation of Yemen in the Indian Ocean was found to grow a native species of the Zip-6 secret herb, nearly identical to the rare Persian herb and fully suitable for use in the sports drink. A Yemeni herb trader was contracted to supply Zip-6 through the port of Aden. Ravi and Keith, while pleased with the upward growth of Zip-6, were nevertheless candid about the product’s market position within the U.S. where the market was dominated by several brands of sports drinks. In that same year, a new breed of drinks was also beginning to rise in sales – energy drinks. Zip-6 occupied a somewhat interesting position in this market as it is a sports drink with some of the attributes of an energy drink. They hired a market consultant who advised them that market potential existed for Zip-6 outside of the United States. Several potential foreign markets were identified. These were Mexico, Brazil, and Korea. Zip-6 thus began a multi-year journey from U.S. domestic sports drink manufacturer to Zip-6 Inc. a global sports drink manufacturer and bottler. Today, ten years later, Zip-6 is a global sports drink manufacturer with active global markets in Brazil, Korea, the United States, and Mexico. The firm operates bottling and distribution facilities in the U.S., Brazil, and Mexico. It operates within Korea through a licensing agreement with Lotte Chilsung, a leading Korean soft drink manufacturer and bottler. It is pursuing exploratory research into additional South American and Asian markets. Unit 3 [220: Global Business]
  • 19. Assignment Details and Rubric The Political, Economic, and Technological Implications for Business Working with your Zip-6 Scenario: Foreign Business Environment Nils, the partner of Ravi and Keith at Zip-6, approached them with an interesting possibility. A fellow venture capitalist friend revealed to him that he and his partners were acquiring a large family-owned group of businesses in the South American country of Colombia. Most of these family-owned businesses are diversified manufacturing businesses in the capital of Bogota, but there is one soft drink bottling operation in the acquisition that does not fit within their venture business plan and thus they would like to divest (sell) this particular operation. Nils’ friend knew that Nils, Ravi, and Keith had extensive presence in neighboring Brazil and thought that this business in Colombia might offer Zip-6 an additional expansion opportunity in the region. Neither Nils, Ravi, nor Keith have any knowledge of this nation. Your job in this Assignment is to conduct some basic research into the country of Colombia (a neighboring country to Brazil) and examine the most important historical events (political, economic, and technological) that might impact the country of Colombia’s business climate for the future of this investment by Zip-6. Review the full Zip-6 Scenario found on the course page.
  • 20. After researching the historical events in Colombia, write your analysis in an informative essay addressing all the checklist items and advising Ravi and Keith on a recommended course of action and your justification for such an approach. Be sure to reference any sources used in your work using APA formatting. Web Resources: Colombia: 1. Go to the C.I.A.’s World Factbook resource and search for information on Colombia 2. Go to the U.S. Department of State website and search for information on Colombia 3. Go to Michigan State University: globalEDGE™ website: http://globaledge.msu.edu/Countries/Colombia You may also use information from other sources that are from governmental or educational sites as well. Do not use Wikipedia! http://extmedia.kaplan.edu/business/AC465/AC465_1405B/KU_ inform_essay.pdf http://extmedia.kaplan.edu/business/AC465/AC465_1405B/KU_ inform_essay.pdf http://globaledge.msu.edu/Countries/Colombia
  • 21. Unit 3 [220: Global Business] Checklist: 1. What events (political, economic, and technological) are the most important in recent years that might have impacted the business culture in Colombia? 2. Do you feel that the Colombian economy today is sufficiently robust to support the growth of the sports drink industry and Zip-6’s entry within the country and why? 3. Write your original informative essay in Standard American English. Please be sure to include an Introduction, Body (addressing all the checklist items), and Conclusion. ● Pay special attention to correct grammar, style, and mechanics. ● Respond to the checklist items in a complete manner. ● Ensure that your viewpoint and purpose are clearly stated. ● Demonstrate logical and appropriate transitions from one idea to another. ● Your paper should be highly organized, logical, and focused. Draft your response addressing these points in a minimum of 500 words or more in APA format and citation style and submit the file to the Unit 3 Dropbox before the close of the unit.
  • 22. Name your file: Your FirstName_LastName_Assignment_Unit#. Unit 3 Assignment Rubric Category Description Weighting Possible Points 40 Points Earned Content Colombia: • Go to the C.I.A.’s World Factbook resource and search for information on Colombia • Go to the U.S. Department of State website and search for information on Colombia • Go to Michigan State University: globalEDGE™ website: http://globaledge.msu.edu/Countries/C olombia Answer provides correct and complete information demonstrating critical thinking:
  • 23. http://extmedia.kaplan.edu/business/AB220/AB220_1501B/220_ reference.pdf http://extmedia.kaplan.edu/business/AB220/AB220_1501B/220_ reference.pdf Unit 3 [220: Global Business] Checklist: 1. What events (political, economic, and technological) are the most important in recent years that might have impacted the business culture in Colombia? 2. Do you feel that the Colombian economy today is sufficiently robust to support the growth of the sports drink industry and Zip-6’s entry within the
  • 24. country and why? 80% 16 16 Grammar and Mechanics 3. Write your original informative essay in Standard American English. Please be sure to include an Introduction, Body (addressing all the checklist items), and Conclusion. ● Pay special attention to correct grammar, style, and mechanics. ● Respond to the checklist items in a complete manner. ● Ensure that your viewpoint and purpose are clearly stated. ● Demonstrate logical and appropriate transitions from one idea to another.
  • 25. ● Your paper should be highly organized, logical, and focused. Write a 500-word minimum informative essay plus a separate title and a reference page. 20% 8 Total: 100% [40] Possible Points [ ] Points Earned Additional Instructor Comments: