The World Books Company - Assignment Example

The money received from the sale of books was shared between the company and the community in the sense that the company sponsored important communal projects. In regards to the school, the company pleaded with the students, librarians, and individuals to give them their books so that they could convert them into money. Further, the company introduced e-books which most people found more convenient and environmentally friendly than print books. Therefore, the company opted to receive and reuse unwanted books, which they thought was still an appealing option for green consumers.

            The firm gave the community and the school a nonprofit equity stake, which offered them with high financial value in case the firm was sold or merged. In turn, this would ensure that such nonprofit partners understand that future stock alternatives were going to rely on their performance as a company in ensuring literacy level is on the rise.

Company’s profit margin and market conditions

            It is evident that as the company expanded, it had to rethink its donation percentage since the current donation practice disadvantaged it. Therefore, the management was forced to amend the original fifteen percent of all sales because when the company expanded nationally, the average sale of university and college books started dwindling, which meant that, they were operating at a loss. The company continued to perform dismally but changes in oil and gas prices positively affected the company in the sense that the fifteen percent donation increased the firm’s gross margin.