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The Vermont Teddy Bear Company Founded in the 1980s by John Sortino

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Founded in the 1980s by John Sortino, the Vermont Teddy Bear Company formed a niche in the manufacture and distribution of teddy bears with individualized outfits. The bears are sturdy (they come with a lifetime warranty), high quality, plush, and jointed, making them attractive to both collectors and those seeking a casual gift. Sortino marketed his product not only as toys for children, but also as an alternative to flowers and candy as gifts for special occasions (a feature which was made possible by customizing outfits for particular themes). The introduction of a toll-free order number and the use of "bear grams" helped the company see strong growth in the early 1990s, but Vermont Teddy Bears is now suffering from growing pains: it recently suffered its first loss in several years, and its costs are increasing at rates far outstripping its sales growth. This analysis considers factors which may influence the future direction of the company, and one possible scenario which may emerge along with the consequences to Vermont Teddy Bears.

The economy could play a significant role in Vermont Teddy Bear's future. If the economy suffers a downturn, consumers are less likely to pay the relatively high prices for the Vermont Teddy Bears since their disposable income will become more precious to them. Reasons that the economy might suffer a downturn would be an increase in interest rates generated by the Federal Reserve in an attempt to

. . .
ent can reduce the company's operating costs and improve its profit margin. However, technological changes would not be available only to Vermont Teddy Bears and the company could face increased competition from local and international companies. Ecological factors are a neutral consideration for Vermont Teddy Bears in that their manufacturing processes do not generate significant ecological considerations. However, the company may want to adopt a proactive ecological stance in order to ensure that it is not subject to protests or adverse consumer reaction due to materials used in its production processes. At this point, ethical considerations are relatively minor for the organization, which has received high praise in the media for its operation. However, the fact that the company uses home workers may pose a problem for it in the future as the comparison to sweat shops may arise, particularly if workers are paid on a piece-rate basis. Since workers can refuse work and are considered independent contractors, this may not be an issue, but it is one for which the company may want to be prepared. Possible Scenario and Effect Using the above factors as primary influences on the company's operation, the following scenario migh
. . .

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Approximate Word count = 1260
Approximate Pages = 5 (250 words per page)

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