...destination in order to meet the requirements of customers or corporations. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging. “The birth of Logistics can be traced back to ancient war times of Greek and Roman empires when military officers titled as 'Logistikas' were assigned the duties of providing services related to supply and distribution of resources.” (…..) This system could have very well begun what we call logistics management in today’s modern time. Logistics has rapidly evolved over the past years. A person can’t talk about logistics without understanding the management structure of logistics which is the push and pull system because companies struggle trying to figure out which strategy to use. Push planning is generally supply driven and is a successful approach when a company owns market share and controls demand for its products. A push strategy combines the resources of retailers, wholesalers and manufacturers to create consumer demand for a product or product line. With this push strategy each phase of the supply chain pushes the merchandise forward to the next step in the supply chain. The manufacturer pushes the merchandise to wholesalers, the wholesalers then pushes the merchandise down to the retailers, and the retailer pushes the merchandise down to the consumers. This is pushed to consumers through the form of a discounted sales pricing. Since the push strategy's focus on value and...
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...Philippine School of Business Administration, Graduate School of Business, Aurora Boulevard, Quezon City, Philippines The Marikina shoe industry in the Philippines is in its biggest down shift. While it earns the reputation of being the country’s shoe capital, the emergence of globalization, trade liberation and intense competition has cause the decline of the industry. This study aims to determine the particular levels of productivity among the surviving manufacturer and the best marketing practice of the better shoe manufacturer brands. This study compares the best production practices of top shoe manufacturer and the traditional practices. The study shows that the best production practices of the top five shoe business in the locality and the entire country. This implies that shoe manufacturer seriously reconsider a paradigm shift from traditional “mag aareglo and sapatero” to a more complex and efficient production line in shoe manufacturing. The same is true with the notion of design and quality mentality is the best preferred by customer to a better understanding of the buying consideration of customer on price, brand and shoe design. Keywords: shoe industry, globalization, trade liberation, competition, productivity, mag-aareglo, sapatero,...
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...a company's distribution channels. Kerry Capell's (2002) Business Week article looks at Sweden-based Hennes & Mauritz's (H&M) sourcing and inventory management strategies and their reliance on distribution channel partners. H&M has developed a unique distribution channel strategy to compete with better entrenched retailers including Gap, Old Navy, Zara and FCUK. H&M Product Strategy Understanding H&M's distribution strategy requires a clear understanding of their product philosophy and strategy. Like Gap and other clothing retailers, H&M markets to a particular segment of the fashion consumer market. H&M's philosophy is "Fashion and quality at the best price" (H&M, 2004). H&M keeps up with its competitors by providing a variety of styles from "updated classics and fashion basics" to cutting-edge fashion trends (H&M, 2004). Kotler defines the product as a combination of goods and services (Kotler et al, 2001). H&M seeks a product edge by providing affordable fashion lines similar to its competitors, but with a "fast turnaround" from design to production to sales floor (Capell, 2002). Capell focused on this integrated distribution channel in his article. Distribution Channel Outline Marketers often refer to the fourth P, place, as placement, logistics or distribution. Marketers must create a place or a way for logistics and physical delivery to get a product to market and into the hands of target consumers (McColl-Kennedy and Kiel, 2003). A distribution channel refers...
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... increasing focus, and as a mixer for alcoholic drinks. Red Bull is well recognised for its extreme marketing strategies. For example, Red Bull has a “Mobile Energy Team,” which is largely made up of university students. The Mobile Energy Team regularly travels from University to University to promote Red Bull and provide samples of the product. A second example of Red Bull’s marketing strategy is their support for extreme sporting events, for example; Nascar driving. However, with the increase of new entrants in the functional drink market, Red Bull’s market share has decreased. This decrease leads straight into the problem statement; What strategy(ies) can Red Bull, the global market leader, use to further expand into current and emerging markets within the next three years in order to increase market share and sales? Several symptoms from the case where used to create an Industry Competitive analysis, a Fishbone analysis, and a SWOT analysis. Ultimately, after evaluating the Industry Competitive analysis, the Fishbone analysis, and the SWOT analysis, three alternatives were chosen to be further explored. These three alternatives can be summarized as: 1. International Production in Emerging Markets 2. Healthy Product Variants in Western Countries 3. Off-trade Retail and Strategic Alliances The first suggestion focuses on international production in emerging markets. As taken from the case study, China, India, and Indonesia, have been recommended as the initial...
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...What does globalization of market and production mean? How have changes in technology contributed to the globalization of markets and production? Would the globalization of production and markets have been possible without these technological changes? Suppose, you are the marketing manager of a food products company that is considering entering the Indian market. The retail system in India tends to be very fragmented. Also, retailers and wholesalers tend to have long-term ties with Indian food companies, which make access to distribution channels difficult. What distribution strategy would you advise the company to pursue? Why? Suppose, you are the marketing manager of a food products company that is considering entering the Indian market. The retail system in India tends to be very fragmented. Also, retailers and wholesalers tend to have long-term ties with Indian food companies, which make access to distribution channels difficult. What distribution strategy would you advise the company to pursue? Why? Suppose, you are the marketing manager of a food products company that is considering entering the Indian market. The retail system in India tends to be very fragmented. Also, retailers and wholesalers tend to have long-term ties with Indian food companies, which make access to distribution channels difficult. What distribution strategy would you advise the company to pursue? Why? Suppose, you are the marketing manager of a food products company that is considering entering...
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...AN FINAL REPORT ON SALES AND DISTRIBUTION CHANNELS AT STEEL AUTHORITY OF INDIA LIMITED SUBMITTED BY: R.N.MUKHERJEE (07BS3134) STEEL AUTHORITY OF INDIA LIMITED AN FINAL REPORT ON SALES AND DISTRIBUTION CHANNELS AT STEEL AUTHORITY OF INDIA LIMITED SUBMITTED BY: R.N.MUKHERJEE (07BS3134) A Report Submitted In Partial Fulfilment Of The Requirements Of MBA Program Of ICFAI BUSINESS SCHOOL, HYDERABAD DISTRIBUTION LIST: PROF. SUBHASIS RAY (FACULTY MEMBER-MARKETING, IBS Hyderabad) MR. TANMOY SEN (SR. MANAGER (Mrkt-MS), SAIL, KOLKATA) 2 ACKNOWLEDGEMENTS I express my gratitude to Mr. M.R.Rath, Sr. Manager (HRD), Steel Authority Of India Limited (Kolkata) for giving me an opportunity to work with SAIL and for extending support in the form of knowledge and guidance. I would also like to thank my company guide, Mr. Tanmoy Sen, Sr. Manager (Mrkt-MS Division), Steel Authority Of India Limited (Kolkata) as well as other employees of Steel Authority Of India Limited, Kolkata, namely, Mr.R.M.Suresh, Mr. Pankaj Singh, Mr.D.K.Sinha, Mr. N.M.Padhy, Mr. H.Hembram and Mr. M.R.Rath for being a constant source of encouragement as well as for providing guidance throughout the project. I also sincerely acknowledge the guidance and esteemed advice extended by Prof. Subhasis Ray, Faculty Member - Marketing Area, IBS (Hyderabad). Finally, I would like to thank all those people who in the course of my project have knowingly or unknowingly helped me, especially the channel members I...
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...What is a distribution channel? A distribution channel is the chain that a product goes through from production to consumer. What is the relationship between channels of distribution and logistics? A distribution channel is the chain that a product goes through from production to consumer. Most manufacturers do not sell directly to the consumer, the product usually goes first to a distributor, then to the retailer (store) then the consumer. Channels of distribution might be a company owned storefront or an agreement with another company to sell your product. Logistics is the management of moving the items to those channels. How does geographic location affect your selection of distribution channels? Geographical location affects selection greatly. If a product is made at a factory in Mexico and, of course the end result is to get the product into the hands of the paying customer, then distributors will be carefully selected most likely near the border in Texas. This cuts down on shipping and makes more financial sense to choose a distributor that is nearest the product. It is then the job of the distributor to get the product to a retailer and then to the customer. geographical location affects the links ,if not properly strategies, do to traffic gleam, untired road, place of production not closer to inventory and off target market place without though market analysis environment. 2. What are similarities and differences between promotional push strategies and promotional...
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...The spotlight on sustaining the environment has created new terminology such as “carbon footprint” and “offsetting”. Many organisations have adapted their marketing strategies to capitalise on the consumer appetite for EFS. EF marketing strategy takes into account additional factors which arent usually part of the marketing mix. Such a deviation from the academic acceptance of the “marketing mix” components has led Learnmarketing to develop the ‘environmental marketing mix.’ Environmental Product Strategies There are a large number of environmental issues impacting on the production of goods and products. For example: What is the impact of production, sourcing of materials and packaging on the environment? Can minimum levels of packaging and/or environmentally friendly packaging be achieved without compromising product quality or appeal? Supplier practices i.e. are they at least as environmentally friendly as the organisation they are supplying? Environmentally friendly products can increase and decrease production costs; environmentally friendly production may increase costs for organisations and their suppliers but this may be offset by lower fuel bills through energy efficiency measures or an increase in sales caused by a positive product image. An organisation may able to pass increases in production costs (caused by EFS) to consumers. However this will depend on the level of increase, type of consumer, competitor prices for the same type of product and the strength...
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...Andrews as Vice precident manufacturing and Dale Stewart as marketing vice precident. Eldora production now spread from the bike with cheap price range ($ 100 to $ 200) and for the price class expensive ($ 400 - $ 700). where for the low price range, the selling price of the product is more expensive than its competitors EDC but retailers still want to buy from EDC because the model used is always good, and the delivery is always on time. For expensive market Eldora COMPANY menjajakinya cooperation with other brands (Renaldi). Eldora COMPANY has some strategies that All production units are located on one site Workers at all levels is a human who likes to bike, follow the trends and are always looking for innovations Expansion into international markets through a joint venture with a local brand and other agreements Eldora Company faces the external environment with the dynamic growth of the bicycle market in the world for Americans only 2% per year while asia 4% for the year. At Eldora market bike purchase amount is less than 25% of the world market. While nearly 50% of the rest are sold in Asia. To deal with competitors, many companies build factories in Asia to save on labor costs and distribution costs Ann Reardon has several options to be able to supply the needs of asia are: Build factories in China Formed sales operation in Asia Remain in production in the USA Build a factory in Taiwan or Singapore Build a plant in...
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...2 Value Chain Management The theoretical background is defined around the central term value chain. Chapter 2 presents research concepts to manage the value chain structured by their area of specialization either on supply, demand or values. Secondly, within an integrated framework, the results of the specialized disciplines are combined with the objective to manage sales and supply by values and volume. Value chain management is defined and positioned with respect to other authors’ definitions. A value chain management framework is established with a strategy process on the strategic level, a planning process on the tactical level and operations processes on the operational level. These management levels are detailed and interfaces between the levels are defined. Since the considered problem is a planning problem, the framework serves for structuring planning requirements as well as the model development in the following chapters. 2.1 Value Chain Value chain as a term was created by Porter (1985), pp. 33-40. A value chain “disaggregates a firm into its strategically relevant activities in order to understand the behavior of costs and the existing and potential sources of differentiation”. Porter’s value chain consists of a “set of activities that are performed to design, produce and market, deliver and support its product”. Porter distinguishes between • primary activities: inbound logistics, operations, outbound logistics, marketing and sales, service in the core value...
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...University Affiliation 1.1 Introduction and Background Total S.A is a French multinational oil and gas company whose headquarters is in Tour Total, Courbevoie near Paris in France. Total S.A was one of the major six world oil companies when the French prime minister rejected the idea of a partnership with Royal Dutch Shell. He instead favored the idea of forming an independent French oil company because petroleum was considered as a very important in the case of new war with German (Total.com, 2015). It was formed in 1924 after World War I and was initially called French Petroleum Company (CPF). Initially, this company was a taken as a private sector company (Total.com, 2015). In the 1930s, Total S.A engaged in the oil exploration and production mainly in Middle East countries and after World War II, it diversified its exploration to Canada, Venezuela, and Africa as it pursued energy sources in France. In 1980, Total Petroleum North American wing controlled about 50% CPF it bought the refining and marketing assets of Vickers Petroleum. This action enabled it to have the capacity of transportation and networking over 350 service stations in 20 states. Between the years 1985 -2003, Total CPF rebranded itself to boost the popularity of its gasoline brand. The name of this company changed to “Total” when it became a public company as it was listed on New York Stock Exchange. In the early 1990s, the foreign ownership stakes in this company increased from 23% in 1990 o 44% in 1994...
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...Assignment – 3 Supply Chain Integration- Strategies Introduction: Supply Chain Management revolves around various activities which are when integrated results in better performance of business. There is a need to integrate all these activities for a Value Supply Chain by reducing costs, reducing bullwhip effect, utilize better resources, increase service level. More importantly, by integrating the front end of supply chain, Customer Demand to the back end of the supply chain, production and manufacturing portion of it. This report lists the typical characteristics of the below mentioned strategies by considering a product and see how the strategy has been implemented. They are: ▪ Push Strategy ▪ Pull Strategy ▪ Push-Pull Strategy ▪ Pull-Push Strategy Push Strategy: In Push based Supply Chain Strategy, ▪ Production and Distribution strategies are based on long term forecasts. ▪ Manufacturers depend on demand forecasts and orders given by the retailers. ▪ Products are known to the customer and so the demand is moderately constant. Product Considered: Generally the FMCG products follow this type of strategy. Consider Rice, Staple food of Countries like India. The production is moderately constant by all the farmers and is season based. They don’t consider demand for production decisions and the production is continuous. Continuous production takes place the product is released in to the market. In this case, the manufacturers...
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...org * info@ebusiness-watch.org CASE STUDY: HENNES & MAURITZ1 Abstract H&M is a very successful and expansive Swedish fashion group. H&M’s strategy has been developing along: • expansion, through the set up of a proprietary distribution network of centrally controlled stores • price-competitiveness and profitability, through very efficient management of production and logistics • very short lead times which ensure quick response to market trends and reduction of stocks H&M was a pioneer in pursuing a strategy of vertical integration with the distribution network. This strategy has allowed the company to directly collect and fully exploit information about sales and consumers in order to improve and accelerate response to the market Case characteristics • Sector focus Clothing • Business focus Large company • Geographical focus Worldwide Case objectives • Supply chain integration ÆÆÆÆ • Integration of internal processes ÆÆÆ • Integration of extended enterprise ÆÆÆÆ Æ = some relevance for case; ÆÆÆÆ = high relevance Background and objectives H&M is well known for being a successful and expansive company, both in terms of market and of financial performance. The company’s strategy is carried out along the lines of continuous expansion and search for most promising markets, cost-efficient production of goods, and reduction of lead times. H&M is also an example of competitive advantages brought by integrated e-business solutions. Procurement...
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...Introduction and Background: The case involves a company named The Darby that manufactures and distributes meters used to measure electric power consumption. Before gradually building a customer base throughout Texas, the Darby Company started as a small production plant in El Paso. As a first step, a distribution center was created in Fort Worth, Texas and then in Santa Fe, New Mexico. The El Paso plant then marketed its meters in different states, including Arizona, California, Nevada, and Utah. A third distribution center was opened in Las Vegas and a second production plant in San Bernardino, California. Manufacturing costs alter from one production plant to another. El Paso plant produces at a cost of $10.50 per meter. However, the San Bernardino plant’s cost are $0.50 less than the cost of the El Paso plant since it utilizes newer and more efficient equipment. Concerning the efficiency of the distribution system, not much attention was paid because of the company’s quick growth, but the company’s management crew decided to start addressing this issue due to its immense importance. As shown in the book, the cost of shipping a meter from each of the two plants (El Paso and San Bernardino) to each of the three distribution centers (Fort Worth, Santa Fe, and Las Vegas). The El Paso plant produces quarterly 30,000 meters, while the San Bernardino plant manufactures 20,000 meters. One of the limitations...
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...Swedish Sawmill Distribution Channel Challenges Åsa Gustafsson asa.gustafsson@lnu.se Lars-Olof Rask lars-olof.rask@lnu.se School of Engineering Linnaeus University, Växjö, Sweden Abstract Purpose; The purpose of this study is to identify distribution channel research needs given the variety of distribution channel challenges among Swedish sawmill companies. Design / methodology / approach; Explorative case study research Findings: The paper proposes a typology of sawmill distribution channel challenges, as well as aligns research needs with distribution channel type. The typology is based on i) number of sawmill units within the firm, in combination with ii) distribution channel heterogeneity. Significant management decisions and research needs are identified for the different types. Research limitations / implications; This research makes tentative statements regarding typology of sawmill distribution channel challenges and potential research needs in the Swedish sawmill industry with regards to the respective typology. However, further research is needed in order to validate these results. What is original/value of paper: This paper focus on the sawmill industry distribution channels, which is a neglected but important area for sawmill’s competitive advantage. The paper also contributes to research by applying contingency theory and typology as an approach to deal with the variety of sawmills distribution channel challenges. Keywords; Typology, distribution channel challenges...
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