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General Electric has long worked within a conglomerate structure that gives it a significant amount of diversification. The company breaks down its diversification in its annual reports. GE earned $148.6 billion in 2014, coming in the following segments:
The largest group is GE Capital, which itself has a high level of diversification:
The company's diversification approach is generally strong. First, GE has done this for decades and is therefore more familiar with running a conglomerate than most companies. There is a historical competitive advantage that comes with this. As one of the first conglomerates, GE has always been attractive as a place for the world's best executives, and it continues to draw in top level executive talent on account of this. Further, GE is fairly ruthless with respect to what businesses it wants to be in. The company explicitly states that they only want to operate in businesses where…
Business Wire. (2015). Wells Fargo to acquire GE Capital's commercial distribution finance and vendor finance businesses. Business Wire. Retrieved November 17, 2015 from http://www.businesswire.com/news/home/20151013006060/en/Wells-Fargo-Acquire-GE-Capital%E2%80%99s-Commercial-Distribution
Chee, F. (2015). GE clears final hurdle to $14 billion Alstom deal. Reuters. Retrieved November 17, 2015 from http://www.reuters.com/article/2015/09/08/us-alstom-m-a-general-electric-eu-idUSKCN0R81QR20150908
GE Aviation (2015). GE Aviation and Woodward combine fuel systems expertise for new joint venture. GE Aviation. Retrieved November 17, 2015 from http://www.geaviation.com/press/other/other_20150520.html
General Electric 2014 Annual Report. Retrieved November 17, 2015 from http://www.ge.com/ar2014/assets/pdf/GE_AR14.pdf
Identification Evaluation of the main problems.
Sometimes, the best laid plans of mice and men go awry. The case of Bernard Arnault's involvement in LVMH is one of dazzling brilliance on one hand and intractable egotism on the other.
Arnault's stated strategy seems to make sense: acquire brands epitomizing the combination of classically tasteful luxury with forward-looking modernism. He looks for brands that are traditional in feel, but constantly renewing and reinventing themselves. However, some of his acquisitions for LVMH have seemingly deviated from this otherwise successful strategy. So, first of all, these deviations are problematic for the LVMH cachet.
Secondly, when even seemingly sensible acquisitions have failed to deliver value to the firm and its investors, Arnault has been reticent in divesting them. It is unclear why someone seemingly gifted with such business savvy would fail to unload an unprofitable, burdensome brand. This is an issue which needs…
However, during that time, the car sales industry was experiencing a recession and Virgin Cars was caught up in the midst of this recession. Therefore, even though through franchise agreements with manufacturers they could stock many cars without paying for them, car sales slumped considerably thus the company was not able to turn a profit.
Among the actions that could have been taken by Virgin Cars to make it successful was taking time to design the business plan and site their stores in order to make sure they gain the most competitive advantage. Secondly, by researching the car sales industry and profile the market before starting the business. By so doing, they would have been able to set more realistic expectations for car sales and device strategies to improve sales despite the recession.
Diversification as a strategy for business growth usually gives rise to successful companies. The strategy of…
Ansoff, I. (1957). Strategies for Diversification. Harvard Business Review, 35(5), 113-124.
Balmforth, J. (2009). Virgin Atlantic. London: Midland Publishing Limited.
Branson, R. (2006). Virgin Atlantic Airways. [Article]. Aviation Week & Space Technology, 165(13), 20-20.
Dominic, O.C. (2006). End of the road for Virgin Cars as Branson gets out, Sunday Times, the.
When companies decide to expand into international markets, there are three approaches (strategies) for competing internationally; multi-domestic, global, and transnational.
• Assess the advantages and disadvantages of each strategy and evaluate how to build a competitive advantage. (you may use notes on textbook)
¢elect a specific organization in a chosen industry or sector and provide examples.
When companies decide to expand into international markets, there are three approaches (strategies) for competing internationally; multi-domestic, global, and transnational.
The firm views itself as operating within the context of numerous independent subsidiaries each of which concentrates on its own domestic locality and market.
The advantages are the following:
innovation from local R&D
Products tailored to individual countries
High quality due to backward integration
However, challenges include
High costs due to tailored products and duplication across countries
The innovation from the local R&D groups resulted in products that were R&D…
Market force: case study The Fast Lane: ALDI Achieves Supreme In-store Efficiency with Operational Excellence
Quick MBA Global Strategic Management
Micro control refers to the formation and the type of "clan" within the organization and the behaviour of the employees. It could be stated that, focusing the attention towards the internal functioning of the organization is a method of controlling the outcome of the company's efforts regarding the services which it provides its clients with. In other words micro control operations are necessary as a sort of basis for the macro control ones.
It is true that in terms of efficacy the company should focus more on the difference between input and output, but it is just as true that the internal management of the human resources is fundamental, especially under the circumstances in which the company has changed its approach to business and pretends to value the employee just as much as the customer. This is all the more true if we take into consideration the fact that the…
Baron, James (1999). Strategic Human resources: frameworks for general managers. Wiley Lopes, Teresa da Silva. "Diversification strategies in the global drinks industry." Said Business School, University of Oxford, retrieved March 12, 2009 at http://www.aueb.gr/deos/EIBA2002.files/PAPERS/C52.pdf
Zachary, G.G., Molenkamp, R.J. (2005). The BART system of group and organizational analysis. Retrieved March 9th, 2009 from www.academy.umd.edu/tle/BART
Diversification in Small and Medium Enterprises
Adjustment and enewal in the Aftermath of the Iraq War: A Case Study of Strategic and Functional Orientation for Diversification in a SME
In this chapter, discussion will further explore how National United Group's (NUG) location decisions and its position in an industrial cluster are critical to understanding its strategic orientation, and also the design, implementation, and outcome of its diversification strategies in the post Iraqi war period. The results of the study are discussed as they relate to the theoretical models and framework examined in the literature review. This section addresses the findings related to the fundamental questions asked of study participants, NUG managers and NUG employees, and the findings related to the examination of archival information.
The chapter discussion is organized according to the frameworks and theoretical models that were introduced in the literature review, and discussion explicitly refers to the questions…
1. Bagchi-Sen, Sharmistha and Kuechler, Linda. Strategic and Functional Orientation of Small and Medium Sized Enterprises in Professional Services: An Analysis of Public Accountancy. Service Industries Journal, July 2000, Vol. 20, 3, pp. 117-146.
2. Carter, Nancy M. Small Firm Adaptation: Responses of Physicians' Organizations to Regulatory and Competitive Uncertainty. Academy of Management Journal, June 1990, Vol 33, 2, pp. 307-333.
3. Chapman, Keith, MacKinnon, Danny and Cumbers, Andrew. Adjustment or renewal in regional clusters? A study of diversification amongst SMEs in the Aberdeen oil complex. Transactions of the Institute of British Geographers. September 2004, Vol. 29, 3, pp.382-396.
4. Morgan, Neil A., Kaleka, Anna and Katsikeas, Constantine S. Antecedents of Export Venture Performance: A Theoretical Model and Empirical Assessment. Journal of Marketing, Jan. 2004, Vol. 68, 1, pp. 90-108.
Annotated Bibliography on Value Creation Through Diversification
Glvan, A., Pindado, J., & De La Torre, C. (2014). Diversification: A value-creating or value-destroying strategy? Evidence from the Eurozone countries. Journal of Financial Management, Markets, and Institutions, 2(1), 43-64.
This research is aimed at showing the relationship between company value and product diversification strategy. The study digs deep into the types and levels of diversification to determine the real value addition that can be achieved using this strategy. The method used to calculate the benefits of diversification is regression, and the diversification measures used include the Revenue-based Herfindahl Index and Total Entropy. Other traditional variables that impact firms' value are also included in the function.
The study results showed that diversification impacts the firm's value, but a breakpoint marks the maximum benefits. Going beyond this point drops the value of the company. A more significant section of previous research is based outside the UK…
Glvan, A., Pindado, J., & De La Torre, C. (2014). Diversification: A value-creating or value-destroying strategy? Evidence from the Eurozone countries. Journal of Financial Management, Markets, and Institutions, 2(1), 43-64.
Otero-Serrano, J. (2011). Does Firm Diversification Represent a Value Added for Stockholders? International Journal of Business and Finance Research, 5(4), 99-113.
Schommer, M., Richter, A., & Karna, A. (2019). Does the diversification–firm performance relationship change over time? A meta?analytical review. Journal of Management Studies, 56(1), 270-298.
Setianto, R. H. (2020). Corporate diversification and firms' value in an emerging economy: the role of growth opportunity. Journal of Asian Business and Economic Studies.
conditioned the key decisions and behaviors of individuals and groups within National United Group (NUG) as these forces relate to strategic diversification. Synergies resulting from an early merger resulted in a firm better able to address the demands of an expanding market. Importantly, the merger enabled diversification beyond spare auto parts distribution.
Domestic labor markets in Iraq are governed by traditional practices that are regionally idiosyncratic and that permit considerable leeway in local decision-making. International automotive firms signaled interest in NUG's products and services, but Iraq's fractious social-political environment generated substantive security challenges and disruption in their distributorship and marketing arrangements, impacting its ability to meet both domestic and international market demands. NGU's decentralized management has failed to understand changes to the local market dynamics in the post-war recovery period, which resulted in business opportunity cost and jeopardized the firm's financial viability and sustainable growth.
Chapter 4 provides a conceptual…
Tera vs. Netflix
TEVA VS. NETFLIX
Teva, which you likely do not even know (Northrup, 2010), has won its business game by betting its success on products with a true future, while Netflix, stuck with a well-known brand name, appears to be dying the death of overconfidence. Technically, Teva could still do less well than anticipated because the market they are in -- the production of generic drugs and the ingredients that allow for making generic drugs -- is coming up for grabs. But right now they are seen as a clear success. Netflix, on the other hand, has not actually failed -- at least not yet. But they do seem to be doing their best to act like they should. At least one well-known investor has sounded my warnings and believes that Netflix has all but disappeared, even in the face of a number of possible industry opportunities (ChartProphet,…
IMAP (2011). Pharmecueticals & Biotech Industry Global Report 2011. IMAP, Inc. Retrievable from http://www.imap.com/imap/media/resources/IMAP_PharmaReport_8_272B8752E0FB3.pdf .
Krause Fund (2010). Health Care -- Teva Pharmeceuticals. Spring. Retrievable from http://tippie.uiowa.edu/krause/spring2010/teva_sp10.pdf .
Northrup, L. (2010). Teva Pharmeceuticals: The ubiquitous company you've never heard of. The Consumerist. Viewable at http://consumerist.com/2010/05/teva-pharmaceuticals-the-ubiquitous-company-youve-never-heard-of.html . Accessed April 25, 2012.
How important is it for you to diversify your investment portfolio? How would you diversify your investment portfolio?
Although 'the stock market' is often spoken of as a collective entity, in reality it is made up of a many different types of industry subsets. Furthermore, stocks are not the only assets investors should have: bonds, CDs, and more conservative and risky investments make up the full 'buffet' of available ways to allocate funds. The right 'menu' of investments will vary depending upon the investor's age, comfort with risk, goals, and other factors. "To build a diversified portfolio, an investor should look for assets whose returns haven't historically moved in the same direction, and, ideally, assets whose returns move in the opposite direction. This way, even if a portion of your portfolio is declining, the rest of your portfolio is designed to be growing. Thus, you can potentially offset the…
The pro's guide to diversification. (2013). Fidelity Investments. Retrieved from:
Risk and return: Diversification. (2013). PreMBA test. Retrieved from:
Companies and Diversification
Akpinar, O, and Yigit, I. (2016). The Relationship Between Diversification Strategy and Firm Performance in Developed and Emerging Economy Contexts: Evidence from Turkey, Italy And the Netherlands. Journal of Economic and Social Development, 3(2), 78-86.
This research encompassed a close look at data from 166 firms in the Netherlands, 265 firms in Italy, and 128 firms in Turkey (using data from 2007-2011). The point of the research was to explore the difference between various types of diversification and production performance in those three nations. Akpinar (professor, Kocaseli University in Kocaseli Turkey), and Yigit (business faculty member at Marmara University in Turkey) explain that "Related Diversification" is market expansion into new areas, and "Unrelated Diversification" is expansion into a new market "having no relation with the existing one" (Akpinar, et al., 2016).
The hypothesis used by the authors: there would be a positive relationship between "performance and related…
Global Business Strategies
When a firm looks to complete a joint venture, it is necessary to determine what type of exit strategy (or strategies) would be appropriate. This strategy allows the company to leave the agreement without facing extreme los, and it also allows the business to maintain the respect that they had gained in the industry already. In the proposed joint venture with the Murakami Mill in Japan, the risks have already been detailed, and it seems that the venture will be profitable to both parties. However, it would be irresponsible not to look at possible plans to leave the venture if it is not acceptable for some reason. In this section, exit strategies including divestiture of assets, allowing a joint venture partner to take the risk, diversification, shutting down the operation and other contingencies will be examined.
Divestiture of Assets
The goal of entering into a…
Allen, S. (2010). What is a joint venture and how do they work? Retrieved from http://entrepreneurs.about.com/od/beyondstartup/a/jointventures.htm
Carroll, M. (2012). A founder's framework for when it's time to move on and leave your startup. Retrieved from http://www.forbes.com/exit-strategy/
Kotelnikov, V. (2010). Diversification strategies. Retrieved from http://www.1000ventures.com/business_guide/im_diversification_strategies.html
Robbins, S. (2012). Exit strategies for your business. Retrieved from http://www.entrepreneur.com/article/78512
19). The family-friendly atmosphere at the company's restaurants has also been conducive to its growth, as well as Applebee's combination of good food and alcoholic beverages. For instance, Crandall and his colleagues suggest that the casual dining nomenclature ". . . includes such settings as Applebee's where the food comes with a relaxed atmosphere. The concept here is 'not-so-fast' food for aging boomers who may still crave a burger but now want to sit down and eat it from a plate, perhaps with a glass of wine" (p. 19). The company has a proven track record of success in its foreign markets, making further expansions a viable proposition as discussed further below.
Identification and Discussion of Potential Foreign Market and Proposed Entry Strategy
In general, companies have a wide range of entry strategies available to enter foreign markets, including using company-owned restaurants that use locally hired managers or franchises (Prater…
Applebee's form 10-K. (2011, December 31). United States Securities and Exchange
Commission. Retrieved from http://www.sec.gov/Archives/edgar/data/49754/
Crandall, R., Vozikis, G.S. & Sparks, D.L. (1996, Fall). Differentiating restaurant startups: A
Samsung's Marketing Strategy
Marketing management is an important component for the success and profitability of a company in its respective industry or market. Samsung, a South Korean company, has faced intense competition from Apple and other smartphone companies across the globe. Since 2014, Samsung's profit and market share have significantly declined due to intense competition from Apple and Chinese players. However, Samsung has experienced tremendous profitability and increased in the past year because of the adoption of new strategies. According to Jung -- a (2016), Samsung Electronics predicted its best quarterly results in over two years in June 2016. The company experienced increased profitability at a time when the smartphone sector or industry was characterized by declining sales. While Apple, LG Electronics, and Chinese players struggled to cope with the decreased demand for smartphones, Samsung enjoyed high margins of operating profits estimated at $7bn for the June 2016 quarter (Jung-a,…
The History of Apple Corporation
Strategy Development and Implementation
The History of Apple Corporation
The corporation has an exciting history, as it has transformed to the biggest and most successful technology firms in the world, under the best managers of time. Both the employees of the firm, the management and the product consumers have been linked to the firm's success. The firm was started with the two Steves, who from their early lives had shown considerable interest in electronics. Steve Jobs and Steve Woznlak were former employees at Atari and HP respectively. However, in April 1976, the two conceptualized the Apple computer, which was among the first personal computers at that time. The company has focused on products that are innovative and new in the market ever since it was started. It is Job that started developed the legendary Macintosh, which is known to many as 'Mac'. There…
Lamb, C.W., Hair, J.F. & McDaniel, C. (2011). Essentials of Marketing. New York: Cengage Learning.
Quelch, J.A. & Deshpande, R. (2004). The Global Market: Developing a Strategy to Manage Across Borders. New York: John Wiley and Sons.
Schermerhorn, J.R. (2011). Exploring Management. New York: John Wiley and Sons.
The Case for Diversification
Deltacom/Earthlink is facing a challenging operating environment. As a regional player in an intensely-competitive market, we face an uncertain future. We acquired Deltacom in order to facilitate future growth, but a quick look at our financials indicates that our growth has flatlined and our profits declined to almost nothing last year (MSN Moneycentral, 2013). One of the issues is that there was considerable overlap between Earthlink and Deltacom, and we felt that this would provide us with synergies, in reality it simply made us bigger without enhancing our operations or reducing our risk. At this point, we probably need a new strategic direction in order to ensure our future survival. Diversification is one of the best strategies to achieve this.
In portfolio management, diversification is a strategy where a number of different types of investments are created in a single portfolio (Investopedia, 2013). The…
Investopedia. (2013). Definition of diversification. Investopedia. Retrieved November 22, 2013 from http://www.investopedia.com/terms/d/diversification.asp
Investopedia. (2013). Risk and diversification. Investopedia. Retrieved November 22, 2013 from http://www.investopedia.com/university/risk/risk2.asp
Katzenstein, J. (2013). Diversification strategies. California State University. Retrieved November 22, 2013 from http://som.csudh.edu/depts/adjunct/jkatzenstein/mgt490/Diversification%20Strategy%20Presentation.ppt
MSN Moneycentral (2013). Earthlink. Retrieved November 22, 2013 from http://investing.money.msn.com/investments/stock-income-statement/?symbol=elnk
Foreign Market Entry Diversification
Foreign Market Entry and Diversification
Diversification is expanding a company's current operations by adding new markets, products, services or stages of production to its current portfolio. It is all about entering a single or a series of new business lines that differ from its current operations (Cengage, 2006). Murphy Auto Company (MAC) is one of the largest luxury automobile company which wishes to diversify and enjoy even greater profits compared to its competitors. The justification behind the need to diversify first and foremost is the intense competition that the brand faces from cheaper car companies, since due to recession, people prefer buying cheaper alternatives compared to buying such brands like Mercedes and MAC.
Another justification for diversification is the inability of the firm to fully satisfy the needs of the target market owing to the cultural differences of societies they operate in. By diversifying…
Cengage, G. (2006). Diversification Strategy. Retrieved August 15th, 2012, from enotes.com: http://www.enotes.com/diversification-strategy-reference/diversification-strategy
Russo, B. (2011). China's Automotive Industry in 2011 [PowerPoint slides]. Retrieved from booz & co. And Synergistics Slideshare website: http://www.slideshare.net/wrusso1011/chinas-automotive-industry-in-2011
Su, J. Quora. (2011, February 15th). What are the key challenges that companies expanding to foreign markets should take care of? [Web log message]. Retrieved from http://www.quora.com/What-are-the-key-challenges-that-companies-expanding-to-foreign-markets-should-take-care-of
Georgia State University Faculty. (2012). Diversification Strategy [PowerPoint slides]. Retrieved from Georgia State University (GSU), GSU website: http://www2.gsu.edu/~wwwsmg/BA8993week10.ppt
Most critical is the ability to capitalize on core competencies while also alleviating any cultural conflicts inherent in pursuing any diversification strategy (Doving, Gooderham, 2008). Related diversifications are related to core competencies can be seen in many industry value chains, especially in the financial services industry (Milberg, 2008). As related diversifications reduce the cultural, system and process risk of a merger or acquisition, they have been proven empirically to be more successful in certain industries, especially financial services (Doving, Gooderham, 2008).
Erik Doving, aul N. Gooderham. (2008). Dynamic capabilities as antecedents of the scope of related diversification: the case of small firm accountancy practices. Strategic Management Journal, 29(8), 841. Retrieved August 6, 2008, from ABI/INFORM Global database. (Document ID: 1499091871).
atrick Marren (2007). High-functioning business strategy. The Journal of Business Strategy, 28(6), 37-39. Retrieved August 7, 2008, from ABI/INFORM Global database. (Document ID: 1369331501).
William Milberg (2008). Shifting sources…
Patrick Marren (2007). High-functioning business strategy. The Journal of Business Strategy, 28(6), 37-39. Retrieved August 7, 2008, from ABI/INFORM Global database. (Document ID: 1369331501).
William Milberg (2008). Shifting sources and uses of profits: sustaining U.S. financialization with global value chains. Economy and Society, 37(3), 420. Retrieved August 8, 2008, from ABI/INFORM Global database. (Document ID: 1507056611).
Ann Mooney (2007). Core Competence, Distinctive Competence, and Competitive Advantage: What Is the Difference? Journal of Education for Business, 83(2), 110-115. Retrieved August 8, 2008, from ABI/INFORM Global database. (Document ID: 1410903891).
Attracting more customers and gaining financial advantage over the competition as profits would increase
Forces the company to drastically reduce costs, meaning that product quality could suffer demises
Can achieve either of cost advantage or differentiation
Addresses a niche market
Product uniqueness which allows for the charging of a premium price to cover for the additionally incurred expenditure
Additional costs which will reduce overall financial gains (they will however be recuperated from the premium price)
7. Description of the Selected Strategy
Based on the analysis conducted at the previous stage, it becomes obvious that the most adequate course of action at this stage is that of implementing differentiation strategies. These actions basically translate into the promotion of new products onto existent markets, meaning that Porter's differentiation strategy is the analogue of Ansoff's product…
Kotelnikov, V., Differentiation Strategy -- How to Survive in the Era of Hypercompetition, 1000 Ventures, http://www.1000ventures.com/business_guide/differentiation_strategy.html last accessed on July 2, 2009
Kowalski, M., August 14, 2007, Chocolate Prices On the Rise, Business Week, http://www.businessweek.com/globalbiz/content/aug2007/gb20070814_776262.htmlast accessed on July 2, 2009
Rupani, S., August 31, 2007, The Sweet Business of Gourmet Chocolate, Business Week, http://www.businessweek.com/bwdaily/dnflash/content/aug2007/db20070829_846210.htm last accessed on July 2, 2009
2009, Euphoria Chocolate Company, Hoovers, http://hoovers.com/euphoria-chocolate/--ID__122582,FRIC__ -- /free-co-competition.xhtml last accessed on July 2, 2009
The marketing strategies that will create positive relationships with the shareholders will certainly be in the growth strategies category. Following the discussion we have previously had for the customers category of stakeholders, a diversification strategy seems to be the most appropriate to encourage positive relationships with the shareholders.
Indeed, a diversification marketing strategy will encourage the shareholders to believe that the company is constantly willing to promote its own business model and its own particular products and services on the market. Additionally it will also sustain the idea that the company has a clear plan and strategy for the future, one that will support the company's profitability.
On the other hand, the company also has to promote innovation strategy of the leader/pioneer type. Such a strategy will determine the fact that the management's aim is towards supporting a leadership path into the future. Such marketing strategies will allow the shareholders…
1. Starbucks Corporation Corporate Social Responsibility / FISCAL 2006 ANNUAL REPORT. On the Internet at http://www.starbucks.com/aboutus/csrannualreport.pdf.Last retrieved on July 17, 2007
Advisers for example survey the market and make recommendations to their customers on the strength of such estimations. Such investments carry a high level unknown risks, depending upon the type of investment a customer prefers to make. Some customers prefer higher risks for higher returns, while others are more careful with their investments. In such a company, risk quantification and creation play a more important role than risk prevention.
Diversifying risks in the financial business is a strategy that mitigates the risk of investment. The strategy entails diversifying the number and types of investment made in order to minimize the risk of financial loss for the client. Such a strategy is useful in high-risk and high-return types of investments.
Concentrating risk is the opposite strategy of diversifying risk in the investment business. This strategy carries a high risk of loss, but also a high possibility of return if successful. It…
Consolidation Strategies and Market Structure
Business may need to adopt a strategy of consolidation. he financial pressures in healthcare organizations have been noted as increasing the occurrence of consolidation (Goldstein, 2012). here are different consolidations strategies available, the choice of strategy should depend in the firms own situation and the general macro-environmental conditions as well as opportunities that exist. Berkowitz (2010) outlines four potential strategies; divestment, pruning, retrenchment, and harvesting. Each may be considered individually.
Divestment occurs where a business unit or product line is sold. A firm may decide that a particular business unit or product is not profitable, or does not add sufficient value. If the division or product range is profitable, it may be perceived as having a high opportunity cost; investment in one business/product may be tying up capital that may be used elsewhere (Morris, Devlin, Parkin, & Spencer, 2012). If a division is…
The last strategy is harvesting, this is where a there is a gradual withdrawal of support for a product or services. During the withdrawal of support the product or service is still supplied, and demand will usually decrease, or the firm may seek to transfer the demand onto an alterative or substitute (Berkowitz, 2010). The term harvesting refers to the company taking as much revenue as possible from the product or service being harvested, while the demand decreases (Berkowitz, 2010). Harvest strategies are often seen when a product or service is nearing the end of its lifecycle (Kotler & Keller, 2011). For example, a harvest strategy may be used by a pharmaceutical form where newer more effective forms of treatment are being developed, so older products will no longer be needed.
There are four basic market structures which reflect different competitive position. The four models are monopoly, oligopoly, monopolistic competition, and pure competition (Mintzberg et al., 2011; Berkowitz, 2010). A monopoly is where there is only one supplier for a product (Berkowitz, 2010). In this marketplace a consumer has no choice, as there is only a single supplier (Mintzberg et al., 2011). If a single company controls the market and there are no forces of
Seneca Foods was founded in 1949 and is a producer of canned, frozen and bottled foods for the supermarket trade, often under store labels. In 2013, Seneca posted $1.27 billion in sales and net income of $41.4 million. The company is in the mature stage of growth for both itself and the industry, growing mainly with increases in population and inflation. The company's operations are subject to variability from weather, which affects the crops at the heart of the supply chain, and the seasonality of the industry.
Internally, Seneca has a strong supply chain, wherein it contracts with farmers to ensure supply of critical fruits and vegetables for its products. That said, Seneca remains quite small compared with many of its competitors, as Seneca mainly sells in the U.S. And has few major brands. Larger competitors sell globally and have individual brands as large as Seneca's entire operation. One of…
"Retail." Seneca Foods. Retrieved from http://www.senecafoods.com/products/retail
"Seneca Foods 2013 Annual Report." (2013). Seneca Foods. Retrieved from http://www.senecafoods.com/sites/default/files/node-annual_report-field_annual_report_pdf_/annual_13report.PDF
"Farming Operations." Seneca Foods. Retrieved from http://www.senecafoods.com/farming-operations
"About Us." Seneca Foods. Retrieved from http://www.senecafoods.com/about-us
Digbly International Inc. has been successfully using throughout the year a Broad Cost Leader Strategy, which permits it a presence in both markets. The Broad Cost Leader Strategy implies obtaining a cost competitive advantage over other companies. For Digbly, it is also equivalent to producing highly qualitative sensors for the market, but keeping in mind a cost efficiency which means lower R& D. spending and scale economies where possible.
The company's mission, as expressed by the vision statement, has always been to produce quality at low prices ("high quality at lowest prices"). In this perception, the necessity to offer the market completely new products at double the price does not have an economic justification. It is preferable, in this sense, to reposition the product so that it will reach the customers who are likely to be purchasing a lower priced sensor. Value and low cost are the two…
Does having two companies' stock increase the expected value of your portfolio? If not, then why is diversification a good thing in this example?
Having the portfolio which consists of two equal stocks doesn't increase portfolio's value, which will remain the same ($105,000), yet it decreases the risk of winding with nothing, as the probability of winding with nothing in case portfolio consists of two companies' stocks is twice smaller (0.25 against 0.5) and the probability of favorable outcome is 0.75 compared to 0.5 for a one company stock portfolio.
A d) Calculate the probability that you will end up with nothing, and the probability that you will end up with $210,000, for each of the following cases: splitting your money evenly between 3 stocks, between 5 stocks, and between 10 stocks. What is happening to the probability of "in-between" outcomes as portfolio diversification increases in this example (no exact…
The central problem is to determine a strategy going forward for Valve Corporation. The company is the market leader in its space, but needs to consider how to either expand this business or enter new ones. Growth is the major strategic objective for Valve at present. The company can also place emphasis on reinforcing its competitive advantages, but this leaves it vulnerable to changes in its industry space, and given the size of some of the competitors such changes could ultimately be unfavorable to Valve. So expanding the business and building out new opportunities seems like it should be the main strategic priority for Valve.
There are two central opportunities for Valve. The first is international expansion, bringing its platform to audiences around the world. Predominantly a U.S.-based business, Valve can grow quickly if it is able to establish its business either in Asia or in Europe. The…
Introduction and Description of the Problem
Tesco is the market leader in the UK supermarket industry, with a share of 28.8% as of the summer 2014 (Statista 2014). Other major firms in the industry are Asda, Sainsburys and Morrisons, but the industry overall is highly fragmented. Most firms in the industry compete in the mainstream segment of the market, including Tesco. Few major players operate with a premium platform. The industry has recently been characterized by the rise of discounters, including new market entrants from the continent in Aldi and Lidl, both of which compete in the discount segment, along with incumbent discounter Iceland.
The emergence of the discounters is a major strategic problem for Tesco. The discounters, well-financed and operationally sophisticated, have been able win market share in the UK with their low prices, and at this point are stealing share away from the more established companies.…
BBC. 2014. Economy tracker: Unemployment. British Broadcasting Corporation. Accessed November 16, 2014 from http://www.bbc.com/news/10604117
Kirka, D. 2013. Tesco will put out of U.S., sell Fresh & Easy. USA Today. Accessed November 16, 2014 from http://www.usatoday.com/story/money/business/2013/04/17/tesco-exits-usa/2090801/
Matthyssens, P.; Vandenbempt, K. And Berghman, L. 2008
Value Innovation in the Functional Foods Industry: Deviations from the Industry Recipe
Strategic Plan for the Social Security Administration
social security administration is an institution created with the aim of ensuring that workers have a secure future when they retire. The organization pools funds from the people through the check-off system where the employees and other citizens are deducted some amount from their salary automatically. The practice was adopted when it was realized that some people encountered some problems when remitting the money. It also ensured that they live a comfortable life once the income streams from salary have been deducted (Ware, 2011). The same is done in order to ensure that people who have always had challenges to the status of their economy. This paper discusses the strategic plan of the social security administration with respect to making the work go on smoothly. In this study, the possibility of growing the organization to better levels is also analyzed. The paper also…
Bovbjerg B.D. (2008). Social Security Administration Field Office: Reduced Workforce Faces Challenges as Baby Boomers Retire Congressional Testimony. DIANE Publishing
Bovbjerg B.D. (2010). Social Security Administration: Better Planning Needed to Improve Service Delivery: Congressional Testimony. DIANE Publishing
Osterweil, L. (2007). Social security administration electronic service provision a strategic assessment. Washington, D.C.: National Academies Press.
Ware, W. (2011). Elements of systems modernization for the Social Security Administration a report. Washington, D.C.: National Academy Press.
Strategy and SWOT Analysis
Key Concepts in Business Strategy and SWOT Analysis
Creating a competitive business advantage is a complex endeavor. Various techniques have been developed to guide the self-analysis process practiced by business enterprises. Traditional strategic planning engages a company in both internal and external analysis. In order to conduct a strategic analysis that makes niche or unique opportunities salient, it is necessary to have a robust view of the competitive landscape. Alternately, a thorough analysis of operations and position requires a penetrating look at the internal capacity of the company. A SWOT analysis promotes a clear-eyed look at the external and internal dimensions of a business that have the potential to impinge on the development of an effective strategic plan for the company.
A SWOT analysis takes the participants through a systematic process of examining the strengths, weaknesses, opportunities, and threats that are aspects of a company's business.…
Chen, J. (2013). 2013, The Year of Starbucks. Retreived http://seekingalpha.com/article/1103821-2013-the-year-of-starbucks
Starbucks (2013).Investor overview. Retreived http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-irhome
Interbrand (2013). Best Global Brands 2012. Retreived http://www.interbrand.com/en/best-global-brands/2012/Best-Global-Brands-2012.aspx
Portfolio diversification as a form of risk management is one of the cornerstones of modern investment theory. According to the theory, the ideally-diversified portfolio is 'deeply diversified' within each asset class and also 'broadly diversified' across all the asset classes within the portfolio (Simon 2010:2). Asset classes consist of "stocks, bonds, real estate, commodities, precious metals and collectibles;" forms of market capitalization (micro-, small-, mid- and large-cap); style; sectors; industry types; and geography (Portfolio diversification, 2012, Investing in mutual funds). The objective of diversification is that "risk has virtually been eliminated within each class" by combining lower and higher-risk assets (Portfolio diversification, 2012, Investing in mutual funds). Theoretically, the perfectly diversified portfolio should incur no additional risks to the investor greater than what is posed by the general market conditions. There is always risk in investment, but portfolio management is designed to minimize the risk.
To achieve this objective,…
Buffet, Warren. 1965. Letter to partners. Value Investing World. Accessed:
http://www.valueinvestingworld.com/2007/08/warren-buffett-on-diversification-1966.html [17 Aug 2012]
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Identify four factors that affect whether an industry does or does not present a company with a good business opportunity?
The business environment has become highly complex and challenging for firms due to various macro-environmental factors. These factors directly impact the operational and financial performance of firms in one way or another (Sharp, Bergh, & Li, 2013). The economic, political, legal, social, cultural, competitive, and technological forces collectively form the external business environment for business organizations (Hill & Jones, 2010). However, the four leading factors that drive the performance of organizations whether their industry does or does not present them with good business opportunities include: globalization, technological advancements, consumer behavior, and competitive intensity (Thompson, Peteraf, Gamble, Strickland, 2013).
Globalization has a significant influence on the performance of local and international firms operating in a country. Now firms not only have to compete with their domestic competitors, but…
Batra, S.K., & Kazmi, S.H. (2008). Consumer Behavior: Text and Cases, 2nd Edition. New Delhi: Excel Books.
Hill, C.W., & Jones, G.R. (2010). Strategic Management Theory: An Integrated Approach, 9th Edition. Boston, MA: Houghton Mifflin.
Hitt, M.A., Ireland, R.D., & Hoskisson, R.E. (2013). Strategic Management: Competitiveness & Globalization - Concepts, 10th Edition. Mason, OH: South-Western.
Johnson, G., Scholes, K., Whittington, R., & Pyle, S. (2011). Exploring Corporate Strategy: Text and Cases, 9th Edition. Harlow: Prentice Hall.
Over the last several years, the markets have faced a tremendous amount of volatility. Part of the reason for this, is because the global financial crisis and subsequent recession caused the Dow Jones Industrial Average to decline to 6,547. Then, it would climb over 68% to cross above 12,000. This is important, because it is showing how there are tremendous opportunities for investors. However, in order to attain above average returns requires that you are using a strategy that is: embracing growth and minimizing risks as much as possible. To achieve this objective requires having: an asset allocation strategy that will incorporate balance and value. Once this takes place, it will provide the greatest insights as to how we should structure a portfolio that will maximize the total return investors are receiving in the year ahead.
The Portfolio Philosophy
The basic strategy that we will be using is to…
The China Fund. (2011). Yahoo Finance. Retrieved from: http://finance.yahoo.com/q/ks?s=CHN+Key+Statistics
Fidelity U.S. Treasury Money Market Fund. (2011). Fidelity. Retrieved from: http://fundresearch.fidelity.com/mutual-funds/summary/31617H300
Sander, P. (2011). The 100 Best Stocks. Adams, MA: Avon Media.
Standard and Poor's. (2010). Standard and Poor's 500 Guide. New York, NY: McGraw Hill.
Porter's generic strategies began life as a matrix grid featuring low cost and differentiation strategies, which could either be mass market or niche in nature (QuickMBA, 2010). A fifth strategy, hybrid, has been hypothesized by some, noting that there are instances where a firm could be argued to practice some combination of differentiation and low cost.
The Swatch Watch has a differentiated strategy. While not a high end watch, it does have a strong brand, with a unique brand proposition.
The McDonalds Value Meal is essentially a hybrid. All McDonalds product is low cost by the definition of its industry, and the value meal accents the low cost element. However, McDonalds has a high level of differentiation within its industry. It has a healthy 20% net margin, which indicates that it does not follow a true cost leadership strategy -- it could cut prices quite a bit more…
DoJ. (2014). Foreign Corrupt Practices Act. U.S. Department of Justice. Retrieved April 28, 2014 from http://www.justice.gov/criminal/fraud/fcpa/
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No author. (2014). How culture ended the Daimler-Chrysler merger. Kwikessential. Retrieved April 28, 2014 from http://www.kwintessential.co.uk/resources/daimlerbenz-chrysler-merger.html
Nudd, T. (2013). How Subaru fell in love and never looked back. Ad Week. Retrieved April 28, 2014 from http://www.adweek.com/news/advertising-branding/how-subaru-fell-love-and-never-looked-back-148475
The Power Frappuccino was however not introduced directly in all markets, but was first of all tested in different representative markets for a reaction from the customers. We can see from this example that the two main sources for new product ideas worked closely together before this product was introduced.
Another product that was tested during the late 1990s was the Chai Tea Latte, combining black tea, exotic spices, honey and milk. The move in itself could have been considered quite risky, given the fact that Starbucks is recognized as a coffee seller rather than tea shop, but the move did not affect the Starbucks brand. In fact, it showed the customers that there was a lot coming from Starbucks in terms of new product development and that they can virtually expect the company to come up with new ideas not only in the sector where they are market leaders,…
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New Product Marketing Strategy Breakthroughs. On the Internet at
Marketing Forces and Diversification
As American society becomes increasingly ethnically diverse through immigration, relocation, birth rates and other factors, our hospitals must hone their sensitivity to resulting changes in community health needs. In addition, rigorous competition among hospitals requires sensitive, targeted marketing strategies attractive to diverse populations. An excellent example of responsive marketing and health care is given in Noonan's and Savolaine's article. The intelligence and success of the subject community hospital's approach shows that at least a hybrid of its approach should be followed in marketing to and serving a hospital's community.
Analysis with Noonan and Savolaine Article as the Focus
Thoughts about the Market Orientation of the Community Hospital
Focusing on Noonan and Savolaine article's examination of marketing obstetrical services in a diverse Midwestern market, the community hospital showed considerable wisdom in closely examining its prospective patient population by reviewing discharge data for obstetrical patients and asking doctors…
Anonymous. (2011, February 16). Nationwide, interactive community need maps guide community health planning. Retrieved on May 28, 2012 from Proquest.umi.com Web site: http://proquest.umi.com/pqdweb?index=1&did=2268066501&SrchMode=2&sid=3&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1338218546&clientId=14844
Eastaugh, S.R. (2008, May 15). Diversification in the hospital industry. Retrieved on May 28, 2012 from Proquest.umi.com Web site: http://proquest.umi.com/pqdweb?index=0&sid=4&srchmode=2&vinst=PROD&fmt=6&startpage=-1&clientid=14844&vname=PQD&RQT=309&did=1502831361&scaling=FULL&ts=1338218925&vtype=PQD&rqt=309&TS=1338218931&clientId=14844
Noonan, M.D., & Savolaine, R. (2001). A neighborhood of nations. Retrieved on May 28, 2012 from Proquest.umi.com Web site: http://proquest.umi.com/pqdweb?index=5&sid=2&srchmode=2&vinst=PROD&fmt=6&startpage=-1&clientid=14844&vname=PQD&RQT=309&did=93247294&scaling=FULL&ts=1338218230&vtype=PQD&rqt=309&TS=1338218258&clientId=14844
Coca-Cola pursues a differentiation strategy, and has built its company around the pursuit of this strategy. The strengths that the company has -- R&D, marketing, and heavy advertising -- all directly support the differentiation strategy. Coca-Cola uses its strategy to foster sources of sustainable competitive advantage, although the strongest of these is the company's brand. All told, Coke has an excellent strategy that does not result in many missed opportunities. There are different strategic directions that the company could take, but there is also evidence that Coca-Cola management is aware of these options and has rejected them. All told, the approach that the company has taken remains successful, and should be successful for the foreseeable future.
Porter's generic strategies typology highlights four main strategies that can be used to succeed in business (QuickMBA, 2010). Two of these are focused on niche markets, which obviously does not apply…
Interbrand. (2011). Best global brands 2011. Interbrand. Retrieved March 24, 2012 from http://www.interbrand.com/en/best-global-brands/Best-Global-Brands-2011.aspx
Kim, W.C. And Mauborgne, R. (2009), What is BOS? Nine key points of Blue Ocean Strategy. Retrieved on August 15, 2011 from:
Lee, M. (2012). The real story behind the real thing. CNBC. Retrieved March 24, 2012 from http://www.cnbc.com/id/33307309
Hyundaicard's Marketing Strategy: Case Study
rite a full case analysis: HyundaiCard's Marketing Strategy
Hyundaicard's marketing strategy
General overview of Hyundaicard
Current marketing strategy assessment
Assessment of the strategic alternatives
Qualitative ranking of alternatives
Market share of credit card companies
Preference of payment
Hyundaicard financial statements
This essay is a case study for Hyundaicard marketing strategy. Hyundaicard is a company situated in Korea's credit card industry. It forms the basis of the case study because of its' unique experience with marketing, since it was a late comer in the very competitive market it had to employ various marketing strategies in order to shift from being a market follower to being a market leader.
This study will first of all identify some key issues or aspects of the company after which it will conduct an evaluation and assessment of the company's internal and…
Pujari, D., Peattie, K. & Wright, G. (2004), Organizational Antecedents of Environmental Responsiveness in Industrial New Product Development, Industrial Marketing Management, 33 (5), July, pp 381-391
Johansson, G. (2002). Success Factors for the Integration of Eco-Design in Product Development: A Review of State of the Art. Environmental Management and Health, 13(1), pp. 98-108.
Cramer, J. (2000), Responsiveness of Industry to Eco-Efficiency Improvements in the Product Chain: The Case of Akzo Nobel. Business Strategy and the Environment, 9(1), pp, 36- 48
Crane, A. (2001). Unpacking the Ethical Product, Journal of Business Ethics, 30(4), pp. 361- 373
GE & Strategy
"Indeed, diversification and decentralization had been the major strategic thrusts of GEs two prior CEOs…" (Walker, General Electric Strategic Position-1981, 1993). Under decentralization, GE's departments were building blocks with their own product market, market strategies, finance, engineering, manufacturing, and employee relation functions. With expansion came problems of permissiveness and lack of proportion. Employees lacked experience. GE had profitless growth, massive investments with long payback periods, poor planning, and poor understanding of the businesses.
In the 1970s, GE was restructured with corporate staff in two parts to implement a hierarchical structure. There was shift in the business mix. ut, this structure created major communication problems. GE moved into the sector structure. This developed the problems of discontinuities of strategic plans and unnecessary costs from duplication and uncoordinated actions. GE was moving in all directions with no focus to where it was going.
In 1981, when Jack Welch became…
Bartlett, C.A. (2005, May 03). GE's Two-Decade Transformation: Jack Welch's Leadership. In G. Walker, Modern Competitive Strategy. Retrieved from Harvard Business School.
(1993, Mar 24). General Electric Strategic Position-1981. In G. Walker, Modern Competitive Strategy. Retrieved from Harvard Business School.
Walker, G. (n.d.). Managing the Multibusiness Firm. In G. Walker, Modern Competitive Strategy (pp. Chapter 11, pages 309-331).
com TV, a station accessible by Internet that would present clients with viable information on the company and their products. More importantly, the television station would offer advice and demonstrations on how to install the items purchased on your own, without the assistance of home improvement specialists.
The desired consequence of all these opportunities, as well as other strategies, is to increase the market share and revenues. However, all options include a certain level of risk that could generate unfortunate results. That is why, prior to making a decision, management, marketing and financial departments need to analyze the opportunity from several view points.
3. Long-term objectives on profitability, competitive activities, technological and market leadership, as well as the social and environmental responsibilities of the company
Aside from the general long-term objective of increasing their market share and revenues, the managers at Home Depot desire to become among the strongest international…
Wikipedia, the Free Online Encyclopedia, March 21, 2007, the Home Depot, http://en.wikipedia.org/wiki/Home_depot,last accessed on March 23, 2007
Website of Home Depot, 2007, Corporate Governance Overview, http://ir.homedepot.com/governance/guidelines.cfm#mission , last accessed on March 23, 2007
Corporate Home Depot, 2007, 2007 Supplier Diversity Events, http://corporate.homedepot.com/wps/portal/!ut/p/.cmd/cs/.ce/7_0_A/.s/7_0_10P/_s.7_0_A/7_0_10P,last accessed on March 23, 2007
Dane Carlson, September 6, 2006, Home Depot to Add Live Television to Web Site, Business Opportunities Weblog, http://www.business-opportunities.biz/2006/09/06/home-depot-to-add-live-television-to-web-site/,last accessed on March 23, 2007 Brian Grow, October 25, 2004, Home Depot: Thinking Outside the Big Box, Business Week Online, http://www.businessweek.com/magazine/content/04_43/b3905090_mz017.htm , last accessed on March 23, 2007
This is significant because it shows how some critics of contrarian investing will often point to the various instances of speculation and assume that it is contrarian investing. In some cases the psychology of consumers can become so extreme, that the definition of what is speculative expands greatly. As a result, using contrarian investing in conjunction with other indicators / tools can help prudent investors and traders, be able to identify when the market condition are becoming more extreme.
Contrarian Indicators and Tools
When using the different contrarian indicators / tools in conjunction with one another, you can begin to see how this strategy can be used, to effectively determine if the market conditions are overbought or oversold. There are number of different tools that can be utilized to indentify major changes that are occurring in the trend of a stock or the market averages. These would include: headlines…
"3M Historical Prices," Yahoo Finance, http://finance.yahoo.com/q/hp?s=MMM&a=00&b=2&c=1970&d=04&e=25&f=2010&g=v&z=66&y=0
"3M Reports First Quarter Results," 3M, http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MjA2NjEwOHxDaGlsZElEPTMzNDE0MXxUeXBlPTI=&t=1
"3M Reports Fourth Quarter and Full Year 2008 Results," 3M, http://library.corporate-ir.net/library/80/805/80574/items/322063/054431D4-6347-45F1-AF4D-85CCA5F89C52_mmmQ4release.pdf
"American Depository Receipt." Investopedia, http://www.investopedia.com/terms/a/adr.asp
The workforce is addressed on a personal level to ensure that each individual not only understands what the expectations are of him or her, but also to ensure that they will give only their best effort towards the organizational goal. In order to motivate employees in this way, it is necessary for each individual to understand the organizational goals and to care sufficiently about these. Employees therefore have to find meaning in their work. This can best be done by communication.
It is one fortunate feature of the current technological world that communication can occur both regularly and instantly. Instead of having to print out thousands of circulars, managers can write a single email and send it to thousands of employees simultaneously with a single click. This greatly facilitates the communication paradigm between management and employees, or indeed between the HR department and employees.
Various forms of communication are possible…
Business Wire (2008, Jan 31). Corporate Co-evolution Develops Broader Macroeconomic Principles that can be applied to today's International Corporate Environment. http://findarticles.com/p/articles/mi_m0EIN/is_2008_Jan_31/ai_n24241274
Carney, Michael. (2002, Jan-Feb). The co-evolution of institutional environments and organizational strategies. Organization Studies. http://findarticles.com/p/articles/mi_m4339/is_1_23/ai_87782496
Christensen, C.M. (2006). The innovator's dilemma. New York: Harper Collins, Collins Business Essentials.
Cuddihey, Alden (2003, Fall). Aligning human resources and business: an overlooked formula for success. Canadian Manager. http://findarticles.com/p/articles/mi_6710/is_3_28/ai_n29036750
being specific. In addition, the use of advertising and sales promotion also is used on products that are quickly purchased yet have a high level of customer loyalty associated with them. All of these conditions would favor using an advertising and sales promotion driven approach over a personal selling one. Examples of products in this category include soft drinks, groceries of all types, and low-end consumer electronics that are purchased quickly based on brand loyalty over intensive analysis. In general, products that have lower margins and are highly commoditized are those that are sold through this approach. Personal selling on the other hand is very expensive as a sales strategy are often is used in situations where the sales cycles are longer as customers evaluate options more thoroughly, and where the products being sold are much higher in price. The greater the price of a product, the less commoditized it…
Michael Burkett (2005, July). The "Perfect" Product Launch. Supply Chain
Management Review, 9(5), 12-13. Retrieved November 21, 2007, from ABI/INFORM Global database. (Document ID: 875601091).
Jari Collin, Dennis Lorenzin. (2006). Plan for supply chain agility at Nokia:Lessons from the mobile infrastructure industry. International Journal of Physical Distribution & Logistics Management, 36(6), 418-430. Retrieved November 20, 2007, from ABI/INFORM Global database. (Document ID: 1079220951).
Chan Kim, Renee Mauborgne. (2005). Value innovation: a leap into the blue ocean. The Journal of Business Strategy, 26(4), 22-28. Retrieved November 22, 2007, from ABI/INFORM Global database. (Document ID: 888965931).
This means that during full agricultural seasons, prices will be lower, while during extra season, prices will increase. The price increase is explained by a lower and more difficult production of fruits and vegetables during winter times and also by the necessity to properly store the goods produced during the full season so that they remain fresh. In all, the retail price has to incorporate the production, transportation and storage costs and also the company's profit.
Currently, the average price promoted by Wokland is of 17 dollars per one kilogram of fruits and 10 dollars per one kilogram of vegetables. The net profit for 2005 was of 1.7 million dollars and the net profit for 2006 was of 1.5 million. In order to reach the desired 2 million dollars profit in 2007, the company has to increase their revenue sales by 33%. The easiest way to achieve increased…
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Merger, Acquisition and International Strategies
Mergers, Acquisitions and International Strategies
A merger is a combination of two or more business entities with the aim of consolidating the resources that they have and creating a single entity with that. The process of merging is done through acquisition or direct pooling together of the resources available. Acquisition occurs when a firm buys a stake in another firm and assumes control of it. Acquisitions are part of growth strategies paid for in cash, payment through stock of the acquiring company or both. Mergers and Acquisitions commonly denoted by M & A work hand in hand and are in recent times seen as one. M & A is a strategy of finance and management dealing with the selling, buying, combination of, firms and entities to help grow a firm rapidly. M & A occur to help a firm create a new strategy, joint venture…
GM:New York Stock Quote - General Motors Co - Bloomberg. (n.d.). Bloomberg - Business, Financial & Economic News, Stock Quotes. Retrieved December 1, 2012, from http://www.bloomberg.com/quote/GM:U.S .
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Tesla Motors | Premium Electric Vehicles. (n.d.). Tesla Motors | Premium Electric Vehicles. Retrieved December 1, 2012, from http://www.teslamotors.com/
Starting with the latter, it seems obvious that the organization should continue its international expansion, because it will increase its market share, as well as its long-term revenues. At the same time, international expansion will help the company diversify its customers and tap into the new markets of Asia and Central and Eastern Europe.
The international expansion should be pursued through the internal instruments of the company alone rather than through entering alliances or joint ventures. The main reason for this is that such alliances might dilute the brand rather than bring palpable positive elements to the company's development.
However, expansion should also be done internally through the diversification of the portfolio of brands and products. This will imply investing in research and development, but also an important marketing campaign, aimed both at maintaining the global brand and in informing the potential and current customers about new developments, new products,…
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Business Strategy Reprot
Background to Company
Woolworth Limited is the food and takeaway liquor retailer in Australia, often colloquially known as Woolies' and going by the slogan 'The fresh food people'. It operates in every Australian state and territory. Offshoots are Woolworth's online (Homeshop) which allows uses to purchase food over the Internet and Woolworth's Liquor a department of Woolworth's supermarket stores (IRIS Tasmania, November 2007).
Woolworth Limited has to follow government rules and regulations. The political factor involved in this situation is creating both opportunities and a threat for Woolworth Limited. It is an advantage in that it affords Woolworth a diverse work crew since the Australian government applies the Fair Work system that requires that employees and other staff receive maximum weekly hours, protections from unfair dismissal of employee, flexible working roaster, balance between work and family life, and advance notice of termination and redundancy…
"Woolworth Limited" www.woolworthslimited.com.au. Retrieved October 22, 2010
"Woolworths online." 2010-06-11. http://www.homeshop.com.au/. Retrieved 2010-06-11.
"Woolworths Limited - Half Year Presentation HY10" (PDF). 2010-01-28. http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01041760 . Retrieved October 22, 2010
Business Transformation Strategy
GE Capital oodchester is a leading provider of motor car, equipment, and personal finance in the country of Ireland. They offer the most flexible packages for diverse financial needs and as such, have earned the position of leading the personal and capitol acquisition financial services. GE Capital oodchester also provides specialized financing and services and they focus on niches including equipment and car leasing, hire purchase and loans to businesses and individuals across Ireland. Headquartered in Dublin, GE Capital oodchester services the financial needs of its customers through its regional sales centers and extensive dealer and partner network.
GE Capital oodchester is a wholly owned subsidiary of GE Capital. ith assets of more than U.S.$425 billion, (gecapitol.ie, online) GE Capital is a global, diversified financial services company with 28 specialized businesses worldwide. GE Capital has had an enviable record of growth over the past decade delivering value…
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Kraft Foods' Competitive Strategy
Kraft Foods is a one of North America's largest packaged food companies. To reach its current competitive position the organization is changed to great deal of the last decade, with increased focus on the core products, and the sale or spin-off of the non-core divisions, for example the sale of the frozen pizza division 2010 to Nestle, and in 2012 the demerger of Mondel-z International (Kraft Foods, 2014). This has left the company with a high level of focus in selected product categories and North American markets. The shift in the company's focus has impacted on the way in which they compete, but despite this change narrowing of focus, the organization still be seen as one which serves the mass market, with some type of Kraft Food product 90% of all households in the United States, 99% of all households in Canada (Kraft Foods, 2014).
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MAKETING STATEGY, PLANNING & Management POCESS: APPLE & HTC
Analysis of the Marketing Strategy, Planning and Management Process
Apple Inc. is a multinational company incorporated in America and headquartered in Cupertino. The firm designs, sells, and develops consumer electronics, online services, personal computers, and computer software. The company is widely known for its hardware products such as the iPod media player, iPhone Smartphone, Mac computers, and iPad tablet computer. The company offers online services such as iCloud, App Store, and iTunes Store. The consumer software of Apple includes iOS and OS X operating systems, Safari web browser, the iTunes, and the iWork and iLife productivity and creativity suites.
In contrast, HTC Corporation was previously known as High-Tech Computer Corporation based in Taiwan and manufactures tablets and Smartphones. The headquarters is in Taiwan at New Taipei City. The company started in 1997, had the initial original equipment and design manufacturer focused…
Chen, C., & Qiu, H. (2012). The Analysis of Marketing Activities in Taiwan High-tech companies. Xin zhu shi: Guo li qing hua da xue.
Clow, K.E., & Baack, D. (2004). Integrated Advertising, Promotion & Marketing Communications (2nd Ed.). Upper Saddle River, N.J.: Pearson Prentice Hall.
Estelami H. (2009). Marketing Turnarounds: A Guide to Surviving Downturns and Rediscovering Growth. New York: Dog Ear Publishing.
Fabbi M. (2011). Feeding the Marketing Plan with Innovation and Responsibility. New York: GRIN Verlag.
Merger, Acquisition, And International Strategies
From a humble beginning in 1998 of responding to about 10,000 queries by offering search engine services, Google, Inc. has grown to a gigantic multinational corporation providing immense and widely used, actually over 30, services with a search engine capacity that responds to more than 200 million queries daily.
Using a combination of personal logging information and other information gathered from its spectrum of services and Google cookies, it is capable of building large dossiers of pertinent information of its individual users. In this essay I wish to examine Google's three most popular and innovative services namely: Ad Sense, Gmail and Google Search in order to show how the huge amount of data gathered from these three services are used to create incredibly big profiles of all its individual users. I will not, however, underestimate the important role its other services like Google…
Bhatia, A., Deep, G., & Sachdeva, A. (2012). Strategic analysis of search engine giant: A case study of googleinc. International Journal of Computing and Business Research. Retrieved from http://www.researchmanuscripts.com/isociety2012/55.pdf
Delichatsios, S.A., & Sonuyi, T. (2005). Get to know Google, because they know you. Retrieved from http://groups.csail.mit.edu/mac/classes/6.805/student-papers/fall05-papers/google.pdf
Dess, L.E.(2012). Corporate level strategy. Retrieved from International Strategic Management: http://brianhenderschiedtbsad428.blogspot.ca/2012/03/walmart-corporate-level-strategy.html
Digication.(2014). Google's corporate level strategy. Retrieved from https://stonybrook.digication.com/calvins_google/Corporate_level_strategy
Those proposals included broadening its vital presence, and strong growth, in commercial markets and health imaging, refocusing research and development dollars; speeding investments in commercial markets; and taking over other companies and technologies to enlarge Kodak's portfolio of digital products and services.
On the force of its taking over Kodak Versamark and NexPress, Kodak's Graphic Communication Group is piling a portfolio of major variable-date printing equipment providers. Kodak's Digital and Film Imaging Systems business persists to prove its success in digital markets. In 2003, Kodak's share of the consumer digital camera market went up to No. 4 across the world, making the strong acceptance of the Kodak Easyshare range of cameras. Kodak the sole company coming in the Top 5 also ranks No. 2 in digital camera sales in America. Following just 8 months after entering the snapshot printer market in April 2003, Kodak claimed the top slot and persists…
Eastman Kodak. http://www.coursework.info/i/51664.html . Retrieved from Accessed on 4 June, 2005
Health, Safety, and Environment 2004 Annual Report: Employee Training an Important Practice at Kodak. Eastman Kodak Company. Retrieved at http://wwwcaen.kodak.com/U.S./plugins/acrobat/en/corp/environment/04CorpEnviroRpt/HSE2004AnnualReport.pdf . Accessed on 4 June, 2005
Introduction. Retrieved at http://www.kodak.com/U.S./en/corp/kodakHistory/index.shtml . Accessed on 4 June, 2005
Kodak Reports Significant Progress in Digital Growth Strategies. 22 September, 2004. Retrieved at http://www.cdrinfo.com/Sections/News/Details.aspx?NewsId=10658Accessed on 4 June, 2005
The operations in terms of elements like supply chain, outsourcing and location of operations are clearly based/focused on areas wherein they have built up their strengths over a considerable period of time. The company began as Kaufman & Broad in 1957. (KB Home Customers Find FTC Penalties Inadequate) However over the last five years, the Earnings per share of the company had grown by 22.29%, it has had dividend growths at the rate of 26.41%. Thus it is considered as a company with have a built in speculative element of streak. This is also being shown by the price of the share which is $75.91, whereas the book value is only $24.66. (KB Home (NYSE: KBH): (www.forbes.com) After all, one should understand that the real estate prices do not shoot up and high prices may exist due to some speculative influences which are trying to take over the company and…
From their cereal to their numerous other brands such as Morningstar Farms, Kashi, and Keebler, Kellogg delivers many products that have remain unchanged for years, providing a conformed an high quality product tat meets consumer expectations. Their decision to pull peanut-containing products from shelves during the salmonella scare last year reflects not only good business sense, but also their commitment to quality; at the time of the recall, not a single case had been linked to Kellogg's products (Hoaks 2008).
After Sales Service
Auto manufacturers -- especially American ones -- have come under a lot of deserved fire recently for certain failed business strategies, but GM's warranty has always been well viewed by consumers and has only increased in the scope and depth of its coverage in the past few months (GM 2009). In addition to the standard 100,000-mile powertrain warranty and complimentary roadside assistance already offered by GM, their…
Alagse. (2009). "Customer focused low cost leadership strategy." Accessed 20 September 2009. http://www.alagse.com/strategy/s10.php
Fair, M. (2002). "The history of Amazon. Accessed 20 September 2009. http://www.essortment.com/hobbies/historyamazonc_ttas.htm
Gaudet, B. (2009). "Johnson & Johnson: Strong Pipeline, Compelling Valuation." Accessed 20 September 2009. http://seekingalpha.com/article/139532-johnson-johnson-strong-pipeline-compelling-valuation
General Motors Warranty. (2009). Accessed 20 September 2009. http://www.gm.com/ experience/warrantyandquality/' target='_blank' REL='NOFOLLOW'>
With four newer plants able to produce higher qualities and quantities of products at more efficient rates all scheduled to come online within the next decade (and with two of these expected to be operational in the next few years), this area of the business is almost certain to become unprofitable for Lockwood.
The timber land that the company holds, however, is still quite valuable, though according to the consultants (and logic) it is most valuable as a source of controllable raw materials for the actual product-manufacturing end of the forest product division's operations. At the same time, the consultants suggest that the value of the timber land will increase dramatically over the next decade, and if this asset can be held with minimal carrying costs while the rest of the forest products division is sold immediately this would be ideal, as the timber gains in value while the paper…
The company was in a difficult position during the previous year, losing significantly to discounter Target or to Wal-Mart and it even had to announce that it may leave the toy industry if things are not likely to improve during the next period of time. In order to "thin inventory," the company came up with heavy discount policies and gift cards to increase the volume of sales.
According to Dhruv Grewal, professor of marketing and retail at abson College, "it's time for Toys R Us to think outside the box." ut analysts say that Toys R Us may need more ideas, such as unique gift card options and co-op branding with other retailers to survive
Another type of policy used by toy retailers is to expand the categories so that people buy at one time, including books, music, video games and DVDs (as an advantageous package). This type of policy…
Wal-Mart doesn't plan to toy much with prices" http://www.usatoday.com/money/industries/retail/2004-10-11-toy-2004_x.htm
Grant, Lorrie. Wal-Mart doesn't plan to toy much with prices. On the Internet at www.usatoday.com/money/industries/retail/2004-10-11-toy-2004_x.htm.Last retrieved October 20
These customers are the largest potential customers and the ones most willing to work with our company. There will not be a channel specifically geared to the individual homeowner, because of the difficulties in installing the barrier in an existing building, and the fact that the barrier needs to be installed by a professional in order to be under warranty. We have explored some options for distributing to the single customer market, but none have proven to be viable. At present, therefore, the only significant distribution channel will be direct distribution to contractors who have formed a business relationship with our sales representatives.
We control the channel -- but for access to the customers we have a team of sales representatives. These will preferably be people who are already involved in the industry and have good contacts. It is important to realize that by distributing through one channel to one…
Branding strategies are key to a company's success. Levi-Strauss must take care not to sully its reputation by jumping into a new line of business attire. The proposal to create a new line of Levi-Strauss office clothes is flawed. The following consulting report outlines the reasons why the company must change its approach towards developing a new line.
Branding strategies are key to a company's success and why the Levi-Strauss name is synonymous with jeans worldwide. Having expanded beyond dungarees and into men and women's casual apparel, the Levi-Strauss brand has remained consistent without being stagnant. Market research would be immanently helpful in making a final decision on whether or not to diversify the brand even further, but based on what we already know, Levi-Strauss cannot enter the business attire industry as a formidable competitor to Brooks Brothers without risking significant if not debilitating losses. It is therefore not…
Barwise, P. & Meehan, S. (2010). The one thing you must get right when building a brand. Harvard Business Review. Retrieved online: http://hbr.org/2010/12/the-one-thing-you-must-get-right-when-building-a-brand/ar/1
Deshpande, R. (2010). Why you aren't buying Venezuelan chocolate. Harvard Business Review. Retrieved online: http://hbr.org/2010/12/why-you-arent-buying-venezuelan-chocolate/ar/2
Lake, L. (n.d.). Developing your brand strategy. Retrieved online: http://marketing.about.com/od/brandstrategy/tp/brandstrategydev.htm
Milkman, Katherine L. (2008) Tap Consumers' Desire for "Shoulds." Harvard Business Review; Jul-Aug2008, Vol. 86 Issue 7/8, p22-23
XYZ Company is looking for several measures to promote its growth and profitability in a manner that aligns with its respective organizational goals. This process requires development of strategies for the company that helps in determining the direction it undertakes in its respective industry and market. The ability of this company to achieve its desired goals is dependent and affected by its capability to develop effective operational strategies. Without suitable and effective strategies, it will be relatively difficult for the company to achieve its goals. In essence, XYZ Company cannot achieve desired success and profitability without creating and implementing suitable strategies. The development of effective strategies for this company requires examining its various operational components including marketing, operations, laws, ethics, leadership, globalization, economics, and information systems.
Organizational strategy is defined as the sum of the activities or initiatives a company or business seeks to undertake in order to…
"Business-Level Strategy." (n.d.). Lecture 4. Retrieved from University at Albany -- State University of New York website: http://www.albany.edu/faculty/es8949/bmgt481/lecture4.html
"Corporate Strategy." (n.d.). Institute for Strategy and Competitiveness. Retrieved from Harvard Business School website: http://www.isc.hbs.edu/strategy/pages/corporate-strategy.aspx
Gutterman, A.S. (2011, November 7). Functional-Level Strategy. Retrieved April 20, 2016, from http://alangutterman.typepad.com/files/mdc_11.07.2011.pdf
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Smuckers is inexperienced with the global coffee trade. For Smuckers, the Folgers acquisition has increased its risk significantly, while the benefits are incidental and synergistic. In short, the gains from the acquisition may not have been worth the risk. The degree of diversification is low, which means that there is little improvement in the company's product-line risk position to counter the increase in risk faced as a result of increased exposure to the global coffee market. Time will tell if the expected increase in coffee prices makes the acquisition looks like a poor choice,
The recent strategic choices by Smuckers do not lend the firm any new sources of sustainable competitive advantage. The moves were made in order to take advantage of marketing and merchandising synergies. These moves, therefore, have strengthened existing competitive advantages. One of the primary sources of sustainable competitive advantage for Smuckers is its broad, complementary product…
No author. (2007). Porter's generic strategies. Quick MBA. Retrieved March 10, 2010 from http://www.quickmba.com/strategy/generic.shtml
Bhattarai, a. (2008). Smuckers to pay $3 billion for Folgers Coffee. New York Times. Retrieved March 10, 2010 from http://www.nytimes.com/2008/06/05/business/05folgers.html
MSN Moneycentral: JM Smucker Co. (2010). Retrieved March 10, 2010 from http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=SJM&lstStatement=Income&stmtView=Ann
JM Smucker Co 2009 Annual Report. Retrieved March 10, 2010 from http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MzQyODkzfENoaWxkSUQ9MzI5MzkwfFR5cGU9MQ==&t=1
Wal-Mart has recently experimented with diversifying into smaller stores. Its first move in testing smaller stores was on a university campus in Arkansas, where it offered food and non-food ranges in the Campus store replacing their ordinary parapharmacy / drugstore products. Its objective in diversifying into smaller stores is intended as competition against the other two major players, CVS and Wal-Green who showed rapid growth between 2005-2010.
Wal-mart's other decision to diversify arises from the fact that it has saturated its hypermarket and mass merchandiser channels and wishes to grow and find new store locations without destructing existent ones. Its modest growth sales in the U.S. In 2010, and its disappointing consequences of its Project Impact programme, have compelled it to look into the possibility of diversifying into smaller stores.
Porter (2001) presents three essential tests for assessing the conditions under which diversification will create shareholder value:
1. The attractiveness…
Euromonitor International. Wal-Mart tests small stores to exploit new growth areas, Jan. 2011.
Porter, M.E. From competitive advantage to corporate strategy, Harvard Business Review, 2001