...Case Analysis: GLOBAL WINE WARS Recommendations for the French Wine Industry * Issues: 1. French wine makers continue to lose global market share due to the entrance of new competitors from Australia and other “New World” wine makers. French wine makers face an existential threat should they concede the U.K export market. 2. 3. 1. The wine industry as a whole is handicapped by its own traditional production issues including high and rising input costs, long value chain (many middle men) and the fragmentation which enables suppliers to have extensive bargaining power. * Rationale behind our recommendations: * Rather than making recommendations for an individual wine company or an AOC, we believe that a national initiative along with industry-specific changes is necessary given the scale of the issue. We believe that implementing government-based recommendations will foster the changes sought with the industry-specific recommendations. Recommendations to the French government: * Create an initiative from the top by exploiting the long reputation of gold wine crafters and creating a national advantage: * Herve Gaymard, the French Minister of Agriculture, with the support and visibility of Jacques Chirac, President of France, should kick off a new initiative: La Renaissance du Vin Français de l’an 2003 (The 2003 French Wine Renaissance) with a new vision: “France, the gold standard in wine production with new innovations”...
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...to the recent ban of the rival drink Red Bull in France, Zip-6 has decided to look into its potential prospects in France. Entering into the French energy drink market could be beneficial not only for Zip-6 but also for a country that is becoming increasingly concerned with the ingredients in energy drinks. In order to make an informed decision concerning the possible entrance into the French energy drink market Zip-6 needs to know what kind of competition currently exists, what the trade limitations might pose a problem, and what entry strategy would be best suited for the situation. One of the biggest influences for the company to enter into a country would be the competition currently on the market in the host country. “The degree of rivalry in the French market is affected by the continuing concentration of market share by two or three players, market rivalry is therefore currently classified as moderate.” [ (MarketlLine Industry Profile Carbonated Soft Drinks in France, 2012) ] The two or three aforementioned companies that have a hold in the French market would be Coca-Cola, Nestle SA, PepsiCo, Inc., and Suntory Group. Coca-Cola is the only one that has a corner in the energy drink market with several already in production, while the others do not distribute an energy drink to speak of in France. France’s beverage market can be “difficult for a new entrant to compete with the brand strength and reach of existing players.” [ (MarketlLine Industry Profile Carbonated...
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...Yasmeen Iman Snow Deforest Thompson Gary Oha CAPM Yasmeen Iman Snow Deforest Thompson Gary Oha CAPM Contents Overview of CAPM 1 Advantages and Limitations 3 Breakthroughs and Setbacks 4 Works Cited 6 Overview of CAPM The CAPM was introduced by Jack Treynor , William F. Sharpe , John Lintner and Jan Mossin in 1964, building on the earlier work of Harry Markowitz on diversification and modern portfolio theory (Fama & French, 1982). Sharpe, Markowitz and Merton Miller jointly received the 1990 Nobel Memorial Prize in Economics for this contribution to the field of financial economics. Fischer Black developed another version of CAPM, called Black CAPM or zero-beta CAPM that does not assume the existence of a riskless asset. This version was more robust against empirical testing and was influential in the widespread adoption of the CAPM (Fama & French, 1982). CAPM has become very attractive as a tool that measures risk to possible in relation to expected return, although it is still widely used for estimating the cost of capital for firms and evaluating the performance of managed portfolios. While CAPM is accepted academically, there is empirical evidence suggesting that the model is not as profound as it may have first appeared to be. CAPM’s empirical fallings arise theoretically from many over simplified assumptions made by the model. This has made it difficult to implement valid test for this model (Kristina Zucchi...
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...money in any stock or in any other commodity that is what should be the accuracy of prices of selling or buying the stocks, what could be the risk, what are the factors should be considered that ignores uncertainty and the expected returns of the stock. The Capital Asset Pricing Model (CAPM) and Arbitrage Pricing Theory (APT) both are well known pricing model determines the risk factor for analyzing the appropriate returns for the investors in their own unique ways. CAPM model uses the whole market environment as one factor but on the other hand APT uses five different economics factor which is more detailed in describing risk which accelerates for these factors. The adoption of CAPM is in practice but other hand its various criticisms are documented on it as well and academics are working on the new approaches of it such as APT and others is discussed in later paragraphs. In this assignment I will discuss the assumptions of CAPM and APT model and their pros and cons and the limitations of CAPM over APT models. CAPM and its Shortcomings Hary Markowitz (1952) and Tobin (1958) first introduced the idea of asset pricing model. Markowitz (1952) observed that “when two risky assets are combined, their deviations from the mean are not additive, provided the returns from the two assets are not perfectly correlated and when portfolio of risky...
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...Performance and Trading In Currency Markets Name Course Professor/ Tutor University City/State Date Table of Contents 1.0 Introduction 4 1.1 Proposal 4 1.2 Research Questions 5 2.0 Literature review 5 2.1 Traditional Portfolio Measures …………………………………………………………….6 a. Sharpe ratio: 6 b. Treynor ratio: 7 c. Jensen Alpha: 8 d. Fama-French Model 10 2.2 Assumption to Models ……………………………………………………………………11 2.3 Possible Results ……………………………………………………………………………11 2.4 Limitations of the traditional models ……………………………………………………12 3.0 Academic Review 14 3.1 Types of Analysis Applied in Currency Markets ……………………………………14 3.2 Empirical Literature Review ……………………………………………………………17 3.2.1 Hedging in the Currency Market ……………………………………………………19 4.0 Individual Currency Index Returns ……………………………………………………20 4.1.1 The Factors ……………………………………………………………………………21 a. Trend 21 b. Value 22 c. Volatility 22 4.2 Individual Currency Manager Returns ……………………………………………………23 5.0 Limitation to study ……………………………………………………………………25 6.0 Critique of Data source ……………………………………………………………………26 7.0 Results From Previous studies ……………………………………………………………29 8.0 Conclusion 30 References List 31 Performance and Trading In Currency Markets 1.0 Introduction The financial money market or the currency market is one of the markets that reports high trading volume. Most investors are keen in the trends of financial markets both from a local and an international perspective (Fanchiotti...
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...invest in Small stock. This focus is on a small niche that fits within the realms of the company. This provide limitations to the company about the type of stock they will invest in. However it provides an academic understanding as to which stock the company should select based on the formulations. The company’s growth and profit continued to grow with their academic approaches. The company’s management never set the goal to maximize assets. DFA based their approach on academic research and skilled traders. This create a essential formula for the company to create a list of possible investments that fit within the company’s ideal portfolio. DFA used a strategy to decrease the costs between the client and DFA as well as create value. DFA additionally used a value proposition of DFA by using the academic research to create specialized portfolios focusing on the small cap companies (small cap = 300 mil- 2 bill range). This investment approach focused on the Fama and French model. Their research demonstrated the small cap companies tended to outperform the large cap companies. DFA also added trading capabilities to increase variety among the competitive market while decreasing transaction costs. Passive Approach - Pros the company created low operating expenses, no initial decision making from managers or the investors. Relied on the fundamentals of the Fama and French Model. Cons the company managers do not actively participate with decisions, performance measures are...
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...___p.3 Presentation of the company -the Adidas Group _____________________________________________________________________________p.3 -brands and products _________________________________________________________________________p.3 -strategies and values _____________________________________________________________________p.3, 4 Being a product line manager in the Adidas Group - qualities and skills required to work for the Adidas group __________________________p.4 -qualities and skills more specific to a product line manager _________________________p.4 Relevant theoretical concept: the charismatic leadership model -main qualities and skills _____________________________________________________________________p.5 -limitations and potential disadvantages of a charismatic leader ___________________p.5 Theory vs. practice analysis -the various similarities between a charismatic leader and a product line manager ____________________________________________________________________________________________________p.6 -nevertheless, several characteristics differ between theory and practice ______p.6, 7 Conclusion ______________________________________________________________________________________p.7 Bibliography_________________________________________________________________________________p.8, 9 Introduction Leaders are essential for a firm to be successful: a leader...
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...Introduction China is identified as one of the most popular markets since it is growing vibrantly. Hence, burgeoning market economy in China has attracted numerous companies that want to enter this market and Danone Group is one of them. Danone is a French food and beverage conglomerate and signed an agreement with the Hangzhou Wahaha Group in 1996, a Chinese beverage company, to set up a series of joint ventures in China. The partnership was established to market products under the Wahaha brand name. Ultimately, the agreement resulted into thirty-nine joint ventures. Those joint ventures were hugely profitable as the Wahaha brand became a household name in China. In spite of these successes, the relationship started to deteriorate. After years of court battles, Danone finally pulled out of the JV and ended this partnership with Wahaha. Based on the case study, this essay will firstly analyze Danone’s market entry mode and limitations of this mode. Subsequently, this essay will discuss contributions of both Wahaha and Danone in this relationship. Finally, this essay will present reasons for the Danone-Wahaha dispute and lessons derived from this dispute. Danone’s market entry mode Danone entered the Chinese market selling consumer drink products, including fruit juice, dairy products and bottled water, all with Chinese joint venture partners who were market leading brands in China. A joint venture is a special type of strategic alliance, which requires establishing a firm...
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...claim right. [1] Besides, Chinese government and individual collectors like Cai Mingchao also made their move against this auction, but China still scarcely makes any material progress in the restitution of the looted legacies throughout. [2] Such case reveals great challenges for countries like China to get back missing or stolen artefacts due to multi-faceted legal problems, and their harvests are often not in proportion with efforts paid. On the other hand, propelled by a huge profit, illegal antique trade has been showing a rampant trend in recent years. Its annual turnover is the second highest in all illegal dealings, merely lower than drug trade. [3] Given the lax law system on the protection of cultural relics and the burgeoning market demand, explicit need is suggested to curb the current situation. Based on the above case and focusing on its universality, this article firstly aims to shed a light on the difficulties in recovering relics. More importantly, in the later part, possible pathways to settle the issue will be discussed, with particular attention to some prospective amendments to...
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...organized alphabetically with an indication of its germinal or current character. The description of the theory is accompanied by current examples of empirical research that updates or contradicts the theory and additional information about limitations, scope and opportunities of research. Finance Theories Taxonomy 3 Table 1 Finance Theories Taxonomy: Theories of capital structure Theory General description Current examples of the theory Other attributes Modigliani and Miller Germinal theory of corporate finance A review of the theory by Criticism against flaws of M& M theory Theory of investment proposed by Miller and Modigliani Miller himself, offers a new (Ball, 2001) (1958) argues that “the value of a firm view about the so called ‘junk 1. Market perfection. M&M assumed is independent of its capital structure” bonds’ which were considered information was complete and (Miller, 2001) undesirable and non-tradable symmetric, when it was not Dividends and capital structure are during the 60s when low-risk 2. Easy acceptance of firms with high irrelevant in the determination of stock was the norm. levels of debt trading off for tax- prices in the market. (Miller and Thirty years after the M&M deductible benefits...
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...Establishing a Business in France AUSTRALIA BELGIUM CHINA FRANCE GERMANY HONG KONG SAR INDONESIA (ASSOCIATED OFFICE) ITALY JAPAN PAPUA NEW GUINEA SAUDI ARABIA SINGAPORE SPAIN SWEDEN UNITED ARAB EMIRATES UNITED KINGDOM UNITED STATES OF AMERICA Establishing a Business in France This guide examines the different ways of establishing a business in France. Topics covered include: • Common types of trading vehicle • Choosing the right option • Formalities for establishing a branch • Formalities for establishing a limited liability company • Employment • Property • Immigration • Taxation • Further matters to be considered This publication is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to. Readers should take legal advice before applying the information contained in this publication to specific issues or transactions. For more information please contact us at Ashurst LLP, Avocats au Barreau de Paris, 18, square Edouard VII, 75009 Paris T: +33 1 53 53 53 53 F: +33 1 53 53 53 54 www.ashurst.com Ashurst LLP and its affiliates operate under the name Ashurst. Ashurst LLP is a limited liability partnership registered in England and Wales under number OC330252. It is a law firm authorised and regulated by the Solicitors Regulation Authority of England and Wales under number 468653. The term "partner" is used to refer to a member...
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...subsidiary to assess France as| |a potential market for their flatbread products, hereare the findings. | | | | International Marketing Outcome 1 I have been asked to prepare a report for Gruma UK subsidiary to assess France as a potential market for their flatbread products, here are the findings. There are a number of reasons why Gruma have expanded its operations internationally and these can be split into two broad categories: - Push Factors and Pull Factors. Push Factors that Gruma may have to consider are that their own home market maybe saturated and that the company needs to increase growth by providing their products to an international market. Mexico is in economic recession and there is a lack of spending within the country. Another reason is there may be too many other companies supplying the same product in the home market. Economic recession maybe another factor that can be taken into consideration by Gruma, this would result in a lack of spending by the consumers. High cost of production i.e. land labour and capital is another factor to be taken into account by Gruma. Gruma wants to maintain profitability this is why expanding internationally would help to increase their market share. If the products are in the maturity...
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...Discuss potential explanations for the Security Market Line has been flatter than the Capital Asset Pricing Model (CAPM) would predict. Student Name: Jiaxin Shen Student Number: 100103708 Word count: 1227 Discuss potential explanations for the Security Market Line has been flatter than the Capital Asset Pricing Model (CAPM) would predict. The Capital Asset Pricing Model is based on asset portfolio theory and capital market theory. It emphasizes on the study of the relation between the expected return of asset and risky asset in the securities market. As one of prediction models based on the balance of risky asset expected return, CAPM elaborates on the formation of market equilibrium in the case of investors through Markowitz’ theory to investment management. (Pennacchi, 2008) It shows that a sample liner relation about expected return of asset and expected risks. In the model, beta is a significant parameter, since it measures the expected risks of assets. The Capital Asset Pricing Model has been widely adopted by investors, however, it has some limitation. The relation between beta and average return is too flat is confirmed in time-series tests. It is described by the the Security Market Line. Black, Jensen and Scholes (1972) concentrated their attention on the security market line. If the portfolio is efficient, which means there is a positive relation between beta and expected return. The study of Fama and MacBeth (1973) mainly focus on predicting the future returns...
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...Reducing cultural shock with global brands and advertising Eliane Karsaklian - Advancia-Negocia Abstract This paper aims at demonstrating that expatriates represent a specific target for companies as they tend to consume global brands during their stay abroad in order to avoid cultural shock and thus should be addressed with specific communication. The literature review articulates global brands and advertising with cultural shock, explained on the basis of Trompenaars and Hampden-Turner’s dilemmas’ theory. The qualitative method used in this research were 53 in-depth interviews. Results demonstrated that expatriates relay on well-known brands to adapt to new environments when they are abroad and that specific advertising help them to reconcile dilemmas. Key words: Global brands, advertising, expatriates, cultural shock Introduction Economic and social factors are working to increase global competition and global operations, and subsequently an acceleration of traffic in expatriation and repatriation. Johansson and Ronkainen (2005) state that research shows that one of the most common features of a globally integrated marketing strategy is the adoption of one brand name around the world, whereas Callow and Schiffman (2002) talk about how advertising interpretations are dependent on cultural factors of the viewer. Therefore, the present paper is relevant because it demonstrates that particular attention should be drawn to expatriates during their sojourn abroad. While struggling...
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...France when the French "success formula" was used in the US? Despite a fast entrance into the US market in 1988, when the brand quickly rose to the #2 spot in its market trailing Oil of Olay, by 1996, Plénitude lost its rank to Ponds, faced plateaued sales, and remained unprofitable with losses reaching $12.5M. L’Oreal had released Plénitude in the US with the French “success formula” under the assumption that French success would translate to the US market. However, the implementation of Plénitude’s “Class to Mass” marketing strategy in the US did not have the same effect due to the cultural differences in consumer behavior. First, L’Oreal did not give US consumers the opportunity to experience the first aspect of the French strategy: feature one “star product” at a time, focus a majority of resources on this product, and then create demand for another product. This product system worked in France because products were released one at a time. However, in the US, the full product line was released simultaneously. US Consumers were overwhelmed with the product choices and do not know which to product to use. Secondly, the US consumers did not care for the product’s modern advances, negating the second aspect of the strategy to provide evidence of the product’s technological superiority. Rather, US consumers made purchases based on word of mouth; they purchased and trusted Oil of Olay and Ponds because of recommendations from friends and family, whereas French consumers made...
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