...Multinational Corporations Jabwood Case Write-up Mohammad Ismail 3035076280 Page: 1 Background & Problem Identification Jabwood, a timber trading company with branches in Lebanon and a strong distribution and service network all over the Middle East, is owned and operated by the Jabado family since the 1930s.Recently it has experienced a fall in its sales volume and market share due to the middle eastern uprising and the falling demand.. Jabwood is expecting to lose the revenue and market share further as TANITA (competitive edge) is extending its exclusive sales rights from Jabwood to other companies. Jabwood is currently considering international expansion into new markets – in particular Saudi Arabia and China – to offset these declining revenues. This case examines the macroeconomic environment of Lebanon, China and Saudi Arabia, and the timber industry in these countries. The characteristics of a successful international expansion are considered. Besides identifying attractive criteria for each country, the case requires a decision on a strategy to enter the market to ensure a successful expansion of the company. Given the risks involved and the potential profits from each of these countries, Jabwood has to decide whether to expand in any market or both, and the input mode to be taken to increase your chances of success. To summarize the objective of this case, Jabwood has to answer the following critical questions Should Jabwood expand? To China,...
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...IS101 G6 1 WWW.FREEDOMCARD.SE 2013-‐10-‐03 Problem description Freedomcard is a very small organisation that had success in the market, but due to inefficient processes in the company, the planned expansion of the company is in jeopardy. Freedomcard has two main processes in their company: Find Partners that will offer value to the card in exchange for access to a group of potential customers. Sell the card that gives the customers access to the value offers that the Partners provide and administrate the customer data • • The process of finding Partners and signing contracts with them works satisfactory today and leave for the moment very little room for improvements by adding any kind of IT supported processes. The current process of selling the card and administrate the customer data however, is cumbersome and contains a lot of resource demanding steps which also easily generate errors and/or incomplete data and could be improved by adding some IT supported processes. The Sales and administration process has several steps and typically starts early summer: 1. The sales management estimates the volume of cards expected to be sold during the start of the semester. 2. An order for the expected sales is placed with the supplier (mostly the volume are kept to lowest possible number of cards in order to minimize the number of unsold cards that have to be scrapped by the end of the sales period, which at the same time creates...
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...Jabwood International Case Analysis I. Analysis Problem: Jabwood International is experiencing a downward trend in revenue and sales and may continue this trend if change is not made immediately. Causes: Due to the financial crisis and economic downturn across the world, Lebanon has seen an almost flat performance in the real estate market driving down the prices of raw materials used in construction such as wood. Advances in transportation and technology have led to increased competition in the timber industry. A subsidiary of Jabwood based out of Saudi Arabia was closed for non-business related matters. This subsidiary, before closure, contributed almost half of Jabwood’s sales. Jabwood is a large company that has a very strict and limiting business structure. Jabwood’s physical presence remains solely in Lebanon. Jabwood relies heavily on one major supplier for approximately 60 to 70 percent of its revenue. This supplier intends to offer the opportunity to sell to other wood wholesalers, eliminating Jabwood’s exclusivity. Possible Alternatives: In order to increase revenue and sales, Jabwood International has many options. In my opinion, the only feasible options would include expanding their business into two countries: Saudi Arabia and China. Expanding into the Saudi Arabia market is a very enticing solution for many reasons. Saudi Arabia does not have its own wood supply and therefore relies heavily on other countries for this need. Jabwood has had operations...
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...I. Analysis Problem: Jabwood International is experiencing a downward trend in revenue and sales and may continue this trend if change is not made immediately. Causes: Due to the financial crisis and economic downturn across the world, Lebanon has seen an almost flat performance in the real estate market driving down the prices of raw materials used in construction such as wood. Advances in transportation and technology have led to increased competition in the timber industry. A subsidiary of Jabwood based out of Saudi Arabia was closed for non-business related matters. This subsidiary, before closure, contributed almost half of Jabwood’s sales. Jabwood is a large company that has a very strict and limiting business structure. Jabwood’s physical presence remains solely in Lebanon. Jabwood relies heavily on one major supplier for approximately 60 to 70 percent of its revenue. This supplier intends to offer the opportunity to sell to other wood wholesalers, eliminating Jabwood’s exclusivity. Possible Alternatives: In order to increase revenue and sales, Jabwood International has many options. In my opinion, the only feasible options would include expanding their business into two countries: Saudi Arabia and China. Expanding into the Saudi Arabia market is a very enticing solution for many reasons. Saudi Arabia does not have its own wood supply and therefore relies heavily on other countries for this need. Jabwood has had operations in Saudi Arabia in the past and is aware of...
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