Frog Leap

Question: Is Frogs Leap a socially responsible business? How does it stack up against its wine industry peers? Benchmark Frogs Leap against any winery that you have heard of. You may need to do some outside research. What grade would you give Williams for his efforts at sustainability? Using the financial ratios compiled in Table 4 Table 5, below, What is working for Frogs Leap, and what can be improved? What should Frogs Leap sustainability action plan for the next 10-20 years contain? Answer: Is Frogs Leap a socially responsible business? Each and every business has to be socially responsible if it wants to sustain in the business since no business can function in isolation. The business has to be responsible towards the environment that is helping him in grow its products or render its services, the society in which it is operating etc. The Frogs leap believes that the vine must always and necessarily grow on the healthy soil and is supported by the nutrients of the plants. The frogs leap has been farming since the year 1988. The winery has the most great and historic wines of the world and the same has been made from the non-irrigated grapevines. Further, the frogs leap farms all of its vineyards without irrigation. The frogs leap believe in growing the wines from those that reflect their soil, climate and the circumstances. They simply try and show the natural beauty of the grapes through. They grow vine instead of using the artificial chemicals to do the same. This shows that they are socially responsible enough. Further, it employs a good number of employees, this shows that they are responsible towards its society. Therefore, in the nutshell, it can be said that they are socially responsible. How does it stack up against its wine industry peers? In accordance with the marketing director of frogs leap, having just the product is just the first level. In order to beat the competition, the business must have a great vine. It is its vision of the entire journey that makes it possible for frogs leap to become successful and compete with its peers. They understand the concepts as to how the money works, how the leverage words, what the cash flows look like and when the business will grow. Frogs leap believes in the vision that it is easy to get the product on the market stands but it is not easy to move it among the customers. It will keep on staying there till it is a very good product and it is a really good price attached with it. They are business smart and gives them the opportunity to do things. (YouTube, 2015) The business measures the success with its unique criteria and that is what makes it compete with the peers. They respect the challenge conventional wisdom. This further leads to the growth of the company with the growth of the vines. Benchmark Frogs Leap against any winery that you have heard of. You may need to do some outside research. What grade would you give Williams for his efforts at sustainability? In the vine industry, there is a huge amount of competition when it comes to the shelf spaces, spots on the restaurant wine lists, and time with the retailers, wine critics, and space at the public events. Therefore, it is really important for the vinery to gain a competitive edge by impacting the community, engaging the employees, reducing the costs and increasing the profits. Frogs leap must adopt the sustainable principles and make changes in its operational activities so as to become more sustainable in the business. They must keep on looking for the ways from which it could improve the environmental and the social performance. Once, the low hanging fruit has been picked up, the business must be driven towards attaining the sustainability and this would make it even more challenging. The hard work, the determination and the business environment will open up the new ideas and then the new discoveries shall be made. Though it is impossible to grow the grapes and then make vine without leaving a make on the environment but the goals is to continuously improve. Frogs leap must take the ideas for the business and then make then the part of the sustaining initiatives. Once, the business goals have been shifted, it will become socially responsible. (static1.squarespace.com, 2015) Frogs leap is committed to grow the best vine. They maintain their vineyard. They are certified for growing the vine organically since the year 1989. This is the proof of their commitment towards the environment. Using the financial ratios compiled in Table 4 Table 5, below, what is working for Frogs Leap, and what can be improved? The following is the analysis of the ratios: The frogs leap is successful since its gross profit margin is continuously increasing which shows that either it is increasing its saes or reducing its expenses. Its total debt to its total assets is quite good which is 64%. It has a good working capital It has a stable current ratio which shows that it would be able to meet its short term obligations with ease. Its quick ratio is also good which again shows that its ability to meet the short term obligations Its inventory days is lower than its competitors which shows that it is able to convert its inventory into sales at a faster pace. Its sales is higher than its competitors. The following are the recommendations: Work on reducing its accounts receivables. This shows that the frogs leap is not able to convert its accounts receivables into cash whereas its peers are. They must offer discounts to its customers etc. Work towards inventing new ways of reducing the expenses Work out new ways of increasing the earnings before interest, taxes, amortization and amortization. Try to increase its debt coverage ratio either by increasing its net income or by reducing its interest on debt. Improve its return on equity either by increasing the amount of net income or by reducing the amount of equity Try to improve its operating margin Improve its return on assets either by increasing the amount of net income What should Frogs Leap sustainability action plan for the next 10-20 years contain? Frogs leap has had its own ups and downs as is evident from its financial ratios but no business can sustain if it does not make efforts for improvement. They targeted 12 customers. They believed that if the entity could get them to share as to what they needed and wanted, and if the frogs leap provided them with the solution or the product of their liking or that could fulfil their need or the want, then it would be able to sustain itself. The reason for this success was their nimble, fast and quick approach. They are the succeeding generation. The frogs business aims at gong down more and more generations. There is as such a sure shot sustainable action plan and they believed that they should make the vinery so that each and everyone wants to be a part of it. They invest in the values and in the assets making it possible to make a grand success. References: https://www.750group.com, A. (2015). Frogs Leap Winery - Our Wines. Frogsleap.com. Retrieved 4 May 2015, from https://www.frogsleap.com/our-wines.php static1.squarespace.com, (2015). Sustainable Winemaking: A Liquid Revolution. Retrieved 4 May 2015, from https://static1.squarespace.com/static/4ffc3ba1e4b036a61fbde6ff/t/50d277fbe4b06152e1371ba6/1355970555148/White+Paper_Sustainable+Winemaking_060110.pdf YouTube, (2015). Frog's Leap 2011 Segment 1 YouTube sharing. Retrieved 4 May 2015, from https://www.youtube.com/watch?v=DNGc-an7XPMfeature=youtu.be YouTube, (2015). Frog's Leap 2011_Intro.mov. Retrieved 4 May 2015, from https://youtu.be/UGiih2wXFAQ YouTube, (2015). Frog's Leap 2011_Segment 2-YouTube sharing.mov. Retrieved 4 May 2015, from https://youtu.be/WfnN8NkI10Q YouTube, (2015). Frog's Leap 2011_Segment 3-YouTube sharing.mov. Retrieved 4 May 2015, from https://youtu.be/8CMYZZMUAH0 YouTube, (2015). Frog's Leap 2011_Segment 5-YouTube sharing.mov. Retrieved 4 May 2015, from https://youtu.be/ngRwOZXUBgQv