News Critique Essay Example

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Resources and Capacities

A Brief Summary of the Event

Biostem Technologies Inc. announced that they have acquired a new product line at a cost of $155,500. The new line, Test-O-Shave, is a product line that deal with hygiene products and natural grooming. It produces oils, women’s slave line and organic soap in addition to the men‘s line products. Biostem intends to rebrand this line to become the foundation of its retail hygiene products and natural grooming. The line differs from the existing soaps and products that contain chemicals potentially capable of reducing normal testosterone levels and causing cancer. It provides natural and health products that are free to be used by both male and female without any health impact.

The announcement comes at a time when the increased numbers of cancer cases and other health issues have attracted the attention of both the users and different organizations. Governments’ health organizations and some private organizations have been advocating for natural products to minimize the increased trend of health issues. Users on the other hand have also becoming cognizant of the importance of using natural and hygienic products to mitigate their chance of getting these health complications1. The company CEO stated that the company has continued to focus on expanding their capacities, brand name and customers’ base.

How does the news item illustrate the topic assigned for your presentation?

The topic assigned for this assignment is ‘Analyzing resources and capacities’. The acquisition of Test-O-Shave product line presents a wide analysis of this topic of resources ad capacities. First, brand name has become a major intangible resource in the business world. According to statistics, most of the organizations that are successive in the today’s competitive market rely heavy on their brand names to retain their competitive edge in the market. Companies such as Coca-Cola have dominated their market as a result of their strong brand name. The decision to acquire the Test-O-Shave product line is arguably an effort to enhance the brand name of the Biostem Technologies Inc. products.

Brand name is made by ensuring that the products provided to the customers are quality and meet their needs. The Test-O-Shave product line provides to the customers both natural and hygienic products. These products reduce the chance of getting cancer and hence will attract more customers due to this quality. The company has a chance of building a strong brand name as a company that provides products that are free from health issue. This will be a major capacity for the company as it continues to penetrate in the market in different parts of the world.

The acquisition can also be viewed in terms of the customers’ base of the Biostem Technologies Inc. During the announcement of the acquisition of the new product line, the company CEO stated that the new line will improve the company customers’ base. The natural and hygienic products provided in this product line attract a considerable large market share. The acquisition of the line has increased the company market base and market share. Customers are major resources to a business organization as most successive organizations have large number of customers. Apparently, Biostem Technologies Inc. acquisition of the new product line increases the company resources.

Finally, the decision to acquire the Test-O-Shave product line by the Biosterm will increase the tangible resources of the company. The acquisition comes with new products namely creams, oils and women’s slave line. The company hence has a wide range of products to offer to their customers that include the new and the initial products. A large number of products mean more resources for the company. In addition to the products, the company has managed to acquire the employees which were initially working with the Test-O-Shave product line before acquisition. Therefore, the event expands the company’s human resources as well as products.

Can you predict the further development of the situation? What might happen next?

The continued awareness among the public about the importance of using natural products to reduce health hazards will continue to push the users to natural products. Biostem Technologies Inc. as a company providing natural and hygienic products will attract more customers. However, the company needs to create awareness about the new product line and products. The branding of the line will improve the capacities of the company. The company will be required to expand their production line to meet the large market that will come with the new products. There will be need for more employees and other tangle resources to deal with the high demand for their products.

There is possibility of the new entry in this market in the future and Biostem Technologies Inc. need to dominate the market before the competition increases. Therefore, the company will improve their innovations to produce more products that meet customers’ need so that they can retain the market as competition increases.


American City Center Business Journals. Biostem Technologies Completes Text-O-Shave Product Line Acquisition. The Business Journal, (2015): 1. Accessed on 18 December 2015. url:

1American City Center Business Journals. Biostem Technologies Completes Text-O-Shave Product Line Acquisition. The Business Journal, (2015): 1. Accessed on 18 December 2015. url: