Accounting Case Study: Organic Tee Business Performance Analysis

This case study examines Organic Tee, a business co-founded by Joe and Eve, focusing on their accounting practices and financial performance. Organic Tee, which sells environmentally friendly T-shirts, faced challenges in website management and expanding their business. The case study analyzes strategies such as outsourcing website maintenance, partnering with retail shops, and diversifying product lines to increase revenue. It emphasizes the importance of accurate financial record-keeping, including social and environmental performance in annual reports to enhance corporate social responsibility and customer loyalty. The study also suggests improvements in marketing strategies, employee training, and supplier oversight to maintain a competitive edge and align with market leaders. The case study highlights the significance of financial statements, transaction recording, and product diversification for domestic and international growth, advocating for brand ambassadors and enhanced marketing strategies to boost sales and profitability. The analysis underscores the need for effective measures to train employees and mitigate misinterpretations of product effectiveness, which is essential for Organic Tee to remain competitive in the market.

Running head: ACCOUNTING
Accounting
Name of the Student:
Name of the University:
Author’s Note:

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Case Study
This case study is concerned with Joe and Eve who have been friends with each other
from the time of university. It is seen that Joe has an IT degree along with a business degree.
Eve on the other hand has her degree on designing. It has been observed that Eve has he
hobby of manufacturing her own customised T-shirts and she does the same by purchasing T-
shirts from shops in China and after that printing on them making them a new fashion trend.
Joe has been impressed with this idea and thereby offered Eve the idea of opening a front line
T-Shirt business. Eve expressed her thoughts and idea of opening a company that would
make use of environmentally friendly raw materials and inks so that it would not hamper the
society and the environment. Joe and Eve thereby started their own business with the mission
and vision sale their product with the help of online business and online sales. The business
became a fruitful one as slowly the business gained prominence as customers were inclined
towards purchasing clothes that were environmentally friendly.
The business was named Organic Tee. Like any other business, this organization
faced the similar issues as it is seen that the company faced trouble in hosting the website and
updating and programming the website and the back end order the sale system. It is seen that
the company has started expanding their business and therefore their level of problems and
difficulties have increased and thereby various strategies have been implemented in order to
reduce such problems. With respect to the maintenance and updating of the website, it would
be effective if the work is send offshore because it is seen that functioning the work with the
help of local firm would increase the cost and the cost that will be incurred if the work is
done offshore would be lower with respect to the work done locally. It is known that all the
businesses function simultaneously with the risk and therefore undertaking this risk could
become beneficial for the firm. The company is on the lookout of expanding their business
and therefore have taken measures to partner with the retail shops so that their revenue and

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sales would increase. It is seen that they have been increasing their line of business with the
introduction of new product lines like the shoe line, scarfs and hats. However, shoe line can
be a profitable one and undertaking effective measures like the effective promotional
strategies and making the loyal customers ensure that the products are environmentally
sustainable would increase their level of sales.
The expenses and the income that are incurred by the organization is needed to be
recorded and maintained in an effective manner so that the financial stability of the firm
could be maintained. It is even essential for the organization record each and every
transaction effectively so that precise financial statement of the firm can be constructed. The
organization should even construct the effective annual report and the annual report should
not only include the financial statement but information in relation to the social and
environmental performance of the firm. Information regarding these aspects needs to the
given as well so that the customers can knowledge about the activities undertaken by the firm
with respect to the society and the environment. In this manner, the company can stay in line
with their rival firms and the market leaders. The construction of these statements in the
annual report and frequent reviewing of the market and the operational activities of the rival
firms would be influential for Organic Tee to increase their market share and competitive
edge. Therefore, in a summary, it can be said that:
 Organic Tee has to improve their construction of the annual report by including the
social and the environmental aspects as well so that corporate social responsibility of
the company can be established and in that manner establish loyalty among the
customers.
 The company has to maintain cordial relationship with the customers and the
suppliers and proper supervision over the operations and the products given out by the
suppliers so that the suppliers abstain from using hazardous chemicals for the ink used

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for the printing of the shirts, which can hamper the environment friendly outlook for
the organization.
 The financial statement of the firm is needed to be improved and developed so that it
can be line with the market leading organizations. It is essential for Organic Tee to
record all the transactions that are taking place so that effective maintenance can be
restored.
 It is even significant that the company diversifies their product line with the help of
which the company can develop and make a name for itself domestically and
internationally.
 The company should even look to improve the marketing and promotional strategies
by appointing an ambassador for their brand who has a reputation towards
environmental activities. This would enhance the level of sales for the firm and in that
manner their level of profitability.
 The company requires to take effective measures like training their employees and the
staffs associated with the retail shop so that they can understand the effectiveness of
the products that are sold in the market and the misinterpretation of the effectiveness
of the product to the customers can be mitigated.
Therefore, implementation of the same can be influential for Organic Tee to stay in line
with the market leader and maintain their competitive edge in the economy.

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Bibliography
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Kanellou, A. and Spathis, C., 2013. Accounting benefits and satisfaction in an ERP
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