...Krishna Burberry: Burberry moved manufacturing work overseas to China (offshoring). This involved the closure of their factory in Rhondda, causing 300 jobs to be lost in Rhondda. Consequently staff were crying when given the news and protests were held, causing the reputation and brand image to worsen in the short-term of Burberry as a result of making such an unethical move. This was a large concern as Burberry provided well-paid, quality employment, so the 300 job cuts in Rhondda meant a sad loss to the development of the economic infrastructure of Rhondda. Also in the short-term Burberry had to suffer larger cash outflows due to the redundancy payments. However the lower labour costs in China, although rising, allowed profits to rise. Also Burberry saw a 19% sales revenue rise, due to the rising customer disposable incomes in China, and as a result profits rose. Therefore in the short-term the move to China was not good as it meant large cash outflows due to the redundancy payments, and the job cuts in the UK made Burberry receive an unethical, negative brand image and reputation, reducing sales and profits. Although in the long-term Burberry is likely to benefit from greater sales and so more profits, particularly due to lower labour costs, but this depends on the rate at which labour costs are rising in China relative to that of the UK, and how high the shipping costs are of the goods from China to the UK. Dyson: Dyson's very innovative bladeless fan was the result...
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...In 2012, HMV plc spent £25 million on social responsibility projects. In January 2013, HMV entered liquidation. With reference to HMV and/or other organisations that you know, to what extent is acting in a responsible manner important for sustained businesses success. (40 marks) Acting in a responsible manner will always be an important part of a business’s success, as it links into a business’s reputation which is ultimately how the customers and potential customers view the business before decided whether to purchase their goods or services from them. If a business, for example The body shop is renowned for being socially responsible in relation to environmental factors and employee issues, then its reputation will be strong and customers will look highly upon the business, as opposed to a business, such as Nike, who was found out to be using sweat shops and abusing their workers not long ago, to which consumers responded badly. HMV for many years has been a very popular and well established business. So behaving in a responsible matter will have proved to be an evidently important factor in the success of their business, before they entered liquidation. In their 2008 social responsibility report, HMV stated that “HMV Group recognises that its businesses have social and environmental impacts and that we have a responsibility to manage these impacts effectively at a strategic and operational level”. Environmental factors, social responsibility and economic growth are all...
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...An emerging market is a country that has some characteristics of a developed market, but does not meet standards to be a developed market. This includes countries that may be developed markets in the future or were in the past. Examples of emerging markets are Brazil, Russia, India and China also known as the BRIC countries. A business such as Unilever may want to target these countries because the people living there may be earning more money than they used to so they may be more inclined to buy a more modern or well renowned product, this offers businesses like Unilever more opportunities for growth for example Unsilvers underlying sales in emerging markets rose 2.8% in the first three months of the year, compared with analyst estimates of 2.1%. Unilever say that emerging markets now account for 57% of their total business. Another reason large businesses may want to target emerging markets may be that current domestic markets may be mature or saturated which may encourage companies to increase product life cycle by targeting these emerging markets. However it is sometimes difficult to understand how these emerging markets so they may spend huge amounts of money on research and development to see how these markets work and to put together strategies on how to be successful in these markets. This can be very costly for big businesses and they can potentially suffer if their business plans fail. There is always a risk when targeting these markets as there is never a certainty...
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...3/23/13 Dominos Pizza - Growth & Strategy (Part 1) - Driving Competitive Advantage Username Passw Submit Forgot your password? | Not a member? Please register tutor2u Economics Business Stds Politics Sociology IB Diploma Law Religious Stds Blogs Management History Geography Physics Give It a Go & Other AQA BUSS2 & BUSS4 | AS & A2 Economics | GCSE Business Dominos Pizza - Growth & Strategy (Part 1) - Driving Competitive Advantage Friday, November 26, 2010 by Geoff Riley Print Email Tweet This! Save to Favorites Despite or perhaps because of difficult economic times, the pizza delivery company Dominos UK & Ireland has enjoyed rapid growth over the last couple of years. The company, which owns the Master Franchise to the Domino’s brand in the UK and Ireland, now operates through over 130 franchisees with an average of 4.5 stores each. And their long-term strategy contains the target of rolling out at least one new Dominos store per week in each of the next ten years, growing the business into a billion pound brand in the UK – almost double the current size. Shareholders in Dominos are happy! The company floated on the Alternative Investment Market (AIM) in 1999 and moved into the FTSE-250 mid-cap index in 2007. It now trades at £5.20 per share contrasted with an initial floatation price of 17 pence. Measured by turnover, Dominos is now bigger than the combined income of its largest four rivals including Perfect Pizza and Pizza Hut. The sheer scale of the...
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...Buss4 essay – Lewis Maher 19/5/16 QUESTION: The Intel Corporation produces microprocessors that are used in computers. It has a market share of over 75% and has been praised for its highly innovative culture. Do you think that an innovative culture can be relied on to guarantee the future success of a business? Justify your answer with reference to Intel and/or other organisations you know. ( 40 marks ) The main reason why Out and About PLC should adopt Lisa’s plan is due to the current success of the firm. The firms current market shares and profits have reduced by 15%, due to the increased competition by JJB and Argos. The new plan to target the extreme sports market would be beneficial to Out and About because the market is growing rapidly, which is complete opposite to their current position. Also, they could have an oligopolistic share of the market, which could mean increased profits, due to economies of scale and the reduction of costs. Whereas Out and About are losing 15% market share, the extreme sports market is growing by 15.7% in the next few years, and Out and About could enjoy a turnaround of success. A second reason why Out and About should adopt Lisa’s plan is because it would provide them with a new brand image. Currently, only 5% of under 21s and 15% of 21 to 30 are aware of Out and About. However, even less shop here and the reputation of traditional merchandise puts off younger shoppers. Out and Abouts market research has given them a specific market...
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...Disney-Pixar Mickey and Nemo. Pinocchio and “Toy Story.” Cinderella and “Cars.” The merger of legendary Walt Disney and everything-we-create-kids-adore Pixar was a match made in cartoon heaven. Disney had released all of Pixar’s movies before, but with their contract about to run out after the release of “Cars,” the merger made perfect sense. With the merger, the two companies could collaborate freely and easily.Did the merger work? Well, take a look at the successful movies that Disney and Pixar have put out since: “WALL-E,” “Up,” and “Bolt.” Pixar has plans for twice-yearly films, unthinkable before the merger, and has certainly gained the expert advice from Disney when it comes to advertising, marketing plugs, and merchandising. When it comes to marketing to children, no one does it better than Disney. Even pre-merger cartoon “Cars” got the Disney treatment and remains a top seller in merchandising amongst 4 year old boys (just ask my nephew). irius/XM radio merger On July 29, 2008, satellite radio officially had one provider when Sirius Satellite Radio joined forces with rival XM Satellite Radio. The merger was officially announced over a year before, in February 2007, but the actual merger was delayed due to one tiny problem – when satellite radio first began in 1997, the FCC granted only two licenses under one condition: that either of the holders would not acquire control of the other.Oops. So Sirius and XM filed the proper paperwork with the FCC, allowed the FCC to...
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...Struggling Nokia aims high with low-end phone Bargain-basement handset touted as cash spinner in battle to catch upmarket rivals Tuesday, 30 April, 2013, 5:32am * The Nokia 105 has been released in some Asian markets. As Nokia battles to catch Apple and Samsung Electronics in the market for smartphones costing US$500 or more, it's counting on a bare-bones handset that sells for just US$20 to give it an edge. Priced 97 per cent below the latest iPhone, the Nokia 105 features preloaded games, a colour screen, a radio, a speaking clock and a torch. The phone, Nokia's cheapest, has been available for a few weeks in India and Indonesia and will soon start selling in Europe. Even with its bargain-basement price, the 105 is critical to Nokia's entire handset business. Nokia reported on April 18 that it sold about 11 million fewer mobile phones in the first quarter than analysts had projected, with sales of basic phones plunging 21 per cent to 55.8 million units. A failure to revive the low-end business would leave Nokia without an important source of cash as it seeks to develop challengers to the iPhone and Samsung handsets that run Android. Falling sales of simpler phones were "definitely worrisome", said Mika Heikkinen, a fund manager at FIM Asset Management in Helsinki."They have to get this under control." Nokia chief executive Stephen Elop points to the 105 as a signal that the low-end business can recover after a difficult quarter. While demand for the iPhone...
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...| 5/4/2015 | | | | | | | | | | | | Impact of Leadership On Merger & AcquisitionsImportance of Leadership to M&A success or its failure | | | | | | | | | | | | | | | | | | | | | | | | By Shreyash Kumar Sharma | Assignment Details 1. Scope Highlight the impact of Leadership on Mergers and Acquisition. Focus on one success and one failure story 2. Assignment Flow 3.1 Executive Summary 3.2 Failure – BMW and The Rover Company * Summary * Acquisition Details * Analysis * What Went Wrong? 3.3 Success – AkzoNobel N.V – Imperial Chemicals Industries plc. * Summary * Acquisition Details * Analysis * Success Story 3 Closure 2.1 - Executive Summary In the current knowledge based economies, in order to gain access to one of the most important intangible asset of one business – the brand –, the companies merge or acquire the targeted brand (Kumar & Blomqvist, 2004) Today’s business world deals with an increasing phenomenon of Mergers and Acquisitions (M&A‟s), a process through which companies gain access to some tangible and intangible resources. The benefits of mergers and acquisitions (M&A) include, among others: * a diversification of product and service offerings * an increase in plant capacity * larger...
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