...market, Tootsie Roll Industries must have an understanding of their customer’s demographic traits and a defined market size included in the business plan. The company states that its brands resonate strongly among every age group, culture, and demographic; for every occasion and event (Tootsie Roll Industries, Inc., 2013). To further provide a visual for their targeted market, Tootsie has a picture on their website of a child who is excitedly holding an unopened bag of delicious candy ready to be eaten. As the company plans on continued expansion, the targeted market must include a broader demographic of people. The company must first understand the buying patterns of the targeted market. This includes if the product appeals to customers more at a certain time of the year, how affordable the product is, where the customer first heard of the product, and the customer’s motivation for continued purchases. According to Abrams, R. (2003), “When assessing the size of the market, you will find demographic and geographic information easiest to locate. Much of this data is available from U.S. Census Bureau reports, local governmental agencies, real estate brokerages, chambers of commerce, and business directories.” With a reachable and definable target market, Tootsie will continue to expand its customer base as well as the company itself. Competition Benchmarking, analysis of internal operations, and predicting future competition are all strategic steps that Tootsie Roll Industries must...
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...Tootsie Roll Industries, Inc. has been engaged in the manufacture and sale confectionery products since 1896 when Austrian-born Leo Hirshfield opened a tiny candy shop in New York City. Hirshfield handcrafted a variety of products, including an individually wrapped, oblong, chewy, chocolate candy that quickly became a customer favorite. The hand wrapping – believed to be an industry first – enabled Hirshfield’s product to stand out among the competitor’s candy-counter offerings, which were sold by the scoop from jars (St. James Press, 1996). Sold at a penny apiece and affectionately named after Hirshfield’s five-year old daughter, Clara, whose nickname was “Tootsie,” Tootsie Rolls propelled Hirshfield’s modest corner store into burgeoning candy enterprise that has evolved in little more than a century into the multinational corporation, Tootsie Roll Industries. The Tootsie Roll Industry main head quarter and production plant is located in Chicago, Illinois. Its operations are also in Illinois; Massachusetts; Tennessee; Wisconsin; Mexico City, Mexico; and Concord, Ontario. Today they employee around 2200 employees. The company’s website is www.tootsie.com. Its three top competitors are listed as The Hershey Company (Ticker Symbol HSY), Nestle S.A. (shares are traded at SIX Swiss Exchange symbol NESN.VX (Nestle , 2011), and Mars Inc (privately held company). The board of Directors has appointed PricewaterhouseCoopers LLC as the independent registered public accounting firm for...
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...the sign next to me. Tootsie Roll Industries Company. What does that mean? In inhaled. The sensational smell of fruit and chocolate overwhelmed me. I seem to stretch for miles and miles. However, I was only three inches thick! Being stretched on the conveyer belt is relaxing, taking in the sights, smells, and noises. Although the Tootsie Roll Industries Company factory is musty, gray, and dirty, it is also very beautiful. There are endless rows of conveyor belts with other lollipops on it. Who cares about those pops? I’m about to turn into a Tootsie Pop! I inhaled again. Caramel! I thought. That must be my flavor! Down and down the conveyer belt, an endless line of machinery. I can see a turn...
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...Tootsie Roll Industry Financials Molly Matyka, Dalisa Santiago, Kevin Spalding, Denise Sudler, ACC/561 October 22, 2012 Karen Lascelle Loan Package for Tootsie Roll Industry In order to obtain a loan to help finance the Tootsie Roll Inc., whether it is through a banking institution or a private lender; a properly written loan package is needed to obtain the proper financing for the company’s future advancement. Each funding source is needed to be detailed to ensure the right financing is obtained and the best terms for Tootsie Roll Inc. to re-pay the loan back once it is obtained. Tootsie Roll Inc. has decided to modernize the organization and wants to improve its technology to be compatible with other business organizations. Additional capital is needed to help the company transition through this phase of growing the business as well as updating system regarding technology growth and renovations. This report contains a customized loan package detailing the financial aspects of Tootsie Roll Industry business operations, its ability to repay the loan as well as its funding and operation costs to support future expansion and growth of the business. The Need for the Loan Package In an effort to remain profitable in these economic times, it is essential for Tootsie Roll, Inc. to strive for efficiency in production. To enable this quest for maximum efficiency, an investment into the production facilities is necessary. Tootsie Roll Inc. strives...
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...Tootsie Roll Charles M Mobley University of Phoenix Tootsie Roll Tootsie Roll Industries is a world leading candy company. The company began during 1896 in New York City ("Company Information," 2011). Leo Hirshfield began crafting the confections at his local shop. The delicious candy sold for one penny. The Tootsie Roll launched Hirshfield’s modest shop into a multinational corporation. The company headquartered in Chicago produces 62 million Tootsie Roll candies daily ("Company Information," 2011). The company has grown to include some of the world’s favorite candies. Tootsie Brand candies include the Tootsie Pop, Charms Blow Pop, Sugar Daddy, Dubble Bubble, and Junior Mints. The company has 22 candy brands ("Company Information," 2011). Tootsie Roll has annual sales of nearly 500 million dollars ("Company Information," 2011). The company is one of the leading candy producers in the world. Tootsie Roll Industries believes a family culture and progressive management will produce a leading company within the candy industry. Forbes Magazine has recognized the company as one of “Americas 200 Best Small Companies.” Business Ethics Magazine calls Tootsie Roll Industries on of the “100 Best Corporate Citizens” ("Company Information," 2011). The company’s commitment to ethics and integrity carries over into communities and national interests. Tootsie Rolls’ are a part of the U.S. militaries rations. Tootsie Roll Industries product sales in 2007 were 493 million...
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...flavor of a tootsie pop” has been a popular phrase for years, a commercial jingle that reminds every one of the wonderful taste, a memory from childhood that brings people from miles around to local candy stores seeking Tootsie rolls, whether it is a lollipop or a tootsie roll chocolate, everyone one is familiar. Tootsie Roll Industries is a world leading Candy Company. The company began during 1896 in New York City ("Old Time Candy," 2014). Leo Hirshfield began crafting the confections at his local shop. The delicious candy sold for one penny. The Tootsie Roll launched Hirshfield’s modest shop into a multinational corporation. The company headquartered in Chicago produces 62 million Tootsie Roll candies daily ("Old Time Candy," 2014). The company has grown to include some of the world’s favorite candies. Tootsie Brand candies include the Tootsie Pop, Charms Blow Pop, Sugar Daddy, Dubble Bubble, and Junior Mints. The company has 22 candy brands ("Old Time Candy," 2014). Tootsie Roll has annual sales of nearly 500 million dollars ("Old Time Candy," 2014). The company is one of the leading candy producers in the world. There are numerous processes that contribute to the success of the company. An essential process for the company is the actual production of its staple candy the Tootsie Pop. The Process One way to categorize the process of the company is to whether it is a single stage process or a multiple stage process. The Tootsie Roll Company has...
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...Overview Tootsie Roll Industries, Inc. is America's most favorite candy company, manufacturing and selling some of the world's most popular confectionary brands. It started in a modest New York candy store with the Tootsie Roll's introduction in 1896. The company is based in Chicago Illinois. It has grown to become one of the country's largest candy companies, with operations throughout North America and with distribution channels in more than 75 countries. Tootsie Roll Industries, Inc. engages in the manufacture and sale of confectionery products primarily in the United States and Mexico. It primarily offers candy products. The company offers its products under the TOOTSIE ROLL, TOOTSIE ROLL POPS, CHILD’S PLAY, CARAMEL APPLE POPS, CHARMS, BLOW-POP, BLUE RAZZ, CHARMS MINI POPS, CELLA’S, MASON DOTS, MASON CROWS, JUNIOR MINTS, CHARLESTON CHEW, SUGAR DADDY, SUGAR BABIES, ANDES, FLUFFY STUFF, DUBBLE BUBBLE, RAZZLES, CRY BABY, and NIK-L-NIP trademarks. Tootsie Roll Industries, Inc. distributes its products through candy and grocery brokers to wholesale distributors of candy and groceries; supermarkets; variety stores; dollar stores; chain grocers; drug chains; discount chains; cooperative grocery associations; warehouse and membership club stores; vending machine operators; the United States military; and fund-raising charitable organizations. The company also exports its products to Canada and internationally. With annual sales approaching nearly half-a-billion dollars, Tootsie Roll...
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...Proceeds and Affects from the Loan The Tootsie Roll Industries, Inc. has chosen to allocate the funds from the loan to critical departments that will contribute to the growth of the company. The loan will permit Tootsie Roll to acquire new updated equipment for better production such as robotics to increase productivity. The allocation of these funds will open up research, and development, to produce healthier and cheaper ingredients for products. However, acquiring new robotic production machines or equipment will require a decrease in manpower, wages, and salaries. Approval of the loan will positively affect Tootsie Roll by the way products are manufactured and distributed. The loan acquisition will increase the productivity of the company because of the acquisition of new assets to benefit production. Through the downturn in the economy, Tootsie Roll Industries, Inc. has adjusted product prices or package weights to offset the higher costs (Kimmel, Weygandt, & Kieso, 2011). During the first quarter of 2009, the Tootsie Roll Industries, Inc. adopted the authoritative guidance for disclosures about hedging activities derivative instruments. It requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of derivative instruments, and related gains and losses (Kimmel, Weygandt, & Kieso, 2011). It also required disclosures about related credit-risk features in derivative agreements (Kimmel...
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...Negotiation Management 1. How does Tootsie Roll Industries communicate its values to suppliers and employees? Tootsie Roll Industries is able to communicate its values to suppliers and its employees by using an open system of communication. Employees are able to confront and resolve conflict in an open manner and negotiations are encouraged. Employees also have the ability to cross train and sit in on other departments meeting which allows them the opportunity to see how other areas operate and voice any opinions or suggestions they may have. Allowing this open behavior allows the employees to see the whole picture of how the company operates. Many times departments can suffer because they are only thinking about their own tasks and how the big picture operates together. Each factor can affect each area of the business; like a chain reaction of events, one mistake can lead to many consequences. By creating the housing structures and opening additional jobs for the Chicago area, the company has demonstrated that it supports the middle class population. With creating these opportunities for the employees, it can lead to individuals having their survival needs met and are much more likely to stay loyal to the company for a longer period of time. 2. What communication techniques demonstrate the company’s flexibility? The openness of the company’s atmosphere could also demonstrate their flexibility. Being able to cross train can also lead to promotions down the line because you...
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...Taffy is a soft, chewy, sweet candy. The texture of taffy is very similar to the texture of the inner part of a tootsie pop. Both textures are described as creamy, sticky, and stretchy. As well as having texture in common, these sweet treats both come in various flavors. Some taffy and tootsie pop come in the same flavors. Some of these flavors include chocolate, cherry, caramel, and strawberry. The consumption method for eating taffy is not compatible with the method of a tootsie pop. A tootsie pop has a stick for the consumer to hold onto. Taffy must be consumed by popping the candy out of the wax paper and into the consumer’s mouth. Although they have their differences, each sweet treat will leave you wanting more. Dum-Dum suckers are a hard, sweet, flavorful brand of...
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...Tootsie Roll offers a combination of having a “family-run corporate culture with a progressive management style that embraces an entrepreneurial spirit, Tootsie sets the industry standard at delivering the highest quality product at the lowest possible price, a robust yet efficient operations model” (Tootsie.com) The Tootsie Roll has strong Business Conduct and Ethics to guide its employees and officers, and directors to obey the law and act ethically. The code principles of its Business Conducts and Ethics include: Compliance with the law, rules, and regulation, prohibition against insider trading, conflict of interest, corporate opportunities, confidentiality, fair dealing, safety and environment, protection and proper use of company assets,...
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...Tootsie Roll Industries, Inc. Loan Package ACC/561 Tootsie Roll Industries, Inc. Loan Package In week three, Learning Team E presents a loan package for public held company, Tootsie Roll Industries, Inc., in business for over 100 years. Tootsie Roll is a manufacturer of confectionary products. In addition to sales in the United States, Tootsie Roll’s profits grew in Mexico, Canada, Europe, Asia, South and Central America. This loan package consists of three sections: Financial Ratios, Corporate Strategy-2008 Project: Capital Expenditure, and Loan Approval’s Effect on Tootsie Roll Industry, Inc. Financials. Comments on Financial Ratios and Company Financial Position Selected financial ratios were calculated and are summarized in the table below. | | |Tootsie Roll Industries, Inc. Financial Ratios | | | |Dollar amounts are in thousands except Earnings Per Share | |Selected Liquidity Ratios |2007 |2006 | |Current Ratio...
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...Liquidity Ratios: Overall Tootsie Roll has better liquidity. Liquidity measures the short-term ability to pay obligations as they are expected to be due within the next year. When working capital is a positive number, there is a higher likelihood that the company will be able to pay it liabilities. Is this case Tootsie Roll is more likely to be able to pay their liabilities because they have a positive working capital and Hershey’s is negative. The current ratio indicates the ability to pay on maturing obligations and to be able to meet unexpected cash needs. Again in this case Tootsie Roll has a higher probability of being able to pay their obligation and meet their unexpected cash needs. They have a $2.34:1 ratio compared to Hershey’s $0.92:1 Current cash debt coverage is considered a better representation of the ability of a business to meet its immediate obligations on the average day. The text explains if below 0.40 more investigation in the company’s liquidity should be done. Both Tootsie Roll and Hershey are above 0.40; however Tootsie Roll still shows a higher ability to meet their immediate obligations. Inventory turnover ratio shows how quickly the company sells its products. Although a high inventory ratio means the company is tying up little funds in inventory, it also means they could be losing out on sales opportunities due to inventory shortages. In this case Hershey sells their product faster, but they may be losing out on sales due...
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...In this file ACC 561 Week 3 Team Assignment Tootsie Roll Industries Inc Loan Package there is a review of the following parts: 1. Tootsie Roll Industries, Inc. Loan Package 2. A Ratio Analysis of the Financial Statements 3. Table1. Liquidity ratio table 4. Table2. Solvency ratio table 5. Table3. Profitability ratio table 6. Effects of the Loan on the Company 7. Conclusion Business - Accounting Resources: Accounting and The Successful Business Plan , and the Electronic Financial Worksheets (EFW) Excelâspreadsheet and EFW Help PDF file on the course materials page. Read the financial statement for Tootsie Roll Industries Inc. in Appendix A of Accounting and EFW Help PDF file on the course materials page. Review the 19 sections that comprise the Sample Plan in the table of contents of The Successful Business Plan , and refer to each of these specific sections within the text for further information. Conduct an Internet search information on how to assemble a loan package by researching loan package requirements at The U.S. Small Business Administration website (http://www.sba.gov/) or on other websites, such as the SCORE website (http://www.score.org/). Research the specific loan package requirements of creditors, such as American Express, by reviewing their websites. Complete theEFWspreadsheet using the Tootsie Roll financial data in Appendix A of Accounting . Be sure to: · Use only the applicable worksheets within the EFW spreadsheet; worksheets not...
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...Three Case Study Questions Trina G. Stevens trinagstevens@bellsouth.net Part III of the Course Project for PM598 Nov10 Contract and Project Management Presented to Instructor Robert Davy of DeVry University December 5, 2010 RUHLING MANUFACTURING COMPANY QUESTIONS Question # 1: Why might negotiation be favored over competitive bidding in certain procurement situations? A buyer or a procurement section of an organization, or business might choose negotiation over competitive bidding when a project is small, not planned, or an emergency. There are some situations in which a buyer would favor negotiation rather than competitive bidding. For example, when the buyer is contracting for part of the seller’s services rather than a product. Also when there are ambiguities involved with the project. Another reason to use negotiation is when cost and risk cannot be correctly identified early within the project. Negotiation is used a lot when there are new, or unexpected ideas introduced to solve a problem within the project. Negotiation is usually cheaper and quicker than competitive bidding. Question # 2a: Considerations of Epsilon's alternative proposal: a. What is the applicability of a requirements contract from Ruhling’s point of view? - Assume that Epsilon will still make a profit resulting from economics of long runs and learning curves The applicability of a requirement contract from Ruhling’s point of view is that they would agree...
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