...Lille Tissages, S. A. Background Lille Tissages, S.A. was one of the largest companies in the textile industry located in Lille, France. Its 2003 sales had exceeded FF96 million out of which 2.6% was for item 345. Item 345 was one of the most successful products. In its prime years from 1998 – 2001 they had a market share for Item 345 of 35%. In 2002 the market share dropped to 30%, and then continued to drop in 2003 to 20%. See exhibit 1. This is believed to have been caused by Lille Tissages, S.A. raising the price of Item 345 from FF15.00/m to FF20.00/m in 2002, while the competitors kept their price atFF15.00/m. The reason for raising the price in 2002 was the need to bring the profit per meter up to that of other items on the line. Although the company was in a strong position financially, it would require considerable capital in the next few years to finance a recently approved long-term modernization and expansion program.1 Facing stiff competition the senior management needed to reconsider the pricing plan for Item 345. So in early 2004 they held a meeting to decide in which direction to go. A reasonable forecast of industry volume for 2004 was 700,000 meters. The sales director proposed that if the firm were to reduce the price of Item 345 to FF15.00/m, they would be able to increase sales to 175,000 units (or 25% of industry volume). But if they were to keep the price at the current value of FF20.00/m, they would be able to sell not less than 75,000...
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...What's Lille Tissages' business and competitive situation? Lille Tissages is planning a significant expansion and relying heavily on internally generated cash flows from Item 345. However, this item has recently experienced reduced market share and profitability due to a price increase its competitors chose not to follow. While Lille Tissages is the industry leader in terms of operations and prestige, the sales figures have shown that brand loyalty is eroding in favor of similar products at lower costs. Additionally, an entire department and its facilities are dedicated to the production of this item alone and its resources cannot be leveraged in other production areas, placing further strain on the importance of this product’s performance in the market. While one of Lille Tissages’ strengths is its reputation in the industry, post price-increase sales figures reflect the growing weakness of their once competitive advantage. The company is currently considering reducing the sales price of Item 345 in an effort to bolster sales and profitability to cover both existing and future fixed costs. This would be an aggressive option for various reasons: (1) lower contribution margin per unit sold, (2) competitors do not price their products until Lille Tissages has communicated theirs to the market, and (3) Lille Tissages does not adjust its yearly prices once they have been announced. Lille Tissages realizes that competition is fierce and changes may need to be considered in their...
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...CASO LILLE TISSAGES Carlos Caridad Montellano Lille Tissages, S. A. Preguntas 1. En caso de Lille Tissages bajar el precio a 15.00 francos? 2. Si el departamento que produce artículo 345 era un centro de beneficio y si usted fuera el director de ese departamento, ¿supondría una ventaja financiera para ti bajar el precio? 3. ¿Hay alguna posibilidad de que la competencia suba sus precios si Lille Tissages mantiene el suyo en 20.00 francos? Si es así, ¿cómo integras este factor en su análisis? 4. A 15.00 francos ¿tendrá un beneficio Lille Tissages con el artículo345? ¿Cómo lo decides? Pregunta 1 Cambiar el precio va a alterar el margen de contribución unitario, que es el precio de venta costo variable menos. Margen de Contribución 15.00 francos / metro Lille Tissages espera poder vender hasta 175.000 metros de artículo 345 en 15.00 francos / metro. Precio de venta: 15,00 Contribución / unidad: 08,51 Contribución total: 1.489.250,00 Margen de Contribución 20.00 francos/ metro Lille Tissages, vender no menos de 75 mil metros de artículo 345 en 20 francos Precio de venta: 20,00 Contribución / unidad: 13.20 Contribución total: 990.000,00 La otra posibilidad es mantener el precio en 20.00 francos / metro. El director de ventas afirmó que las ventas no estarían por debajo de 75.000 unidades para el año 2004. Esto supone un beneficio de 15.000 francos, sin embargo, mirando a la tendencia de la cuota de mercado, no creo que la cuota de mercado...
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...These are my observations on the Lille Tissage Exercise that I had given in the last BBMK class. Facts : Lille Tissage is the largest company in its segment. (FF 96 Mn T.O) and it wants to expand for which capital is needed. The company’s sales force is on Straight salary – they sell all lines. • Makes Item 345 – Price Leader – Small Competitors – Wait for LT to announce price – Losing market share from 1995 on Item 345 1. It is a fact that item 345 has lost market share and as the product manager I would be concerned about it. By retaining FF20 price I can gain market share only if competition increases their price to FF20. At the outset this seems unlikely because competition has not exhibited the “follow the leader” pricing in the last two years. 2. Item 345’s price increase two years ago was driven by the management’s desire to generate revenues to fund some expansion. This is an internal consideration and is not based on market forces. For example, if the price rise was due to increase in costs on the supply side, everyone would be affected and everyone will perhaps increase price once the leader does. Here there is no reason for competition to raise the prices. Hence as the product manager, I would question the wisdom behind funding some expansion plan at the cost of my market share. 3. It is also important to make full use of the manufacturing facility of item 345 because, as given in the case, this...
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...BGI COURSE SYLLABUS |Course Number and Title |MGT 553 Finance, Accounting, and the Triple Bottom Line I | | | | |Instructors |Kate Lancaster, PhD, CPA | | |kate.lancaster@bgi.edu | | |(W) 805.756.2922, (H-MB) 805.772.7452 | | |(H-BI) 206.780.1015, (C) 805.440.4618 | | |Toni Smith, PhD, CPA | | |toni.smith@bgi.edu | | |603.659.5108 | | |Brian Setzler, MBA, CPA | | ...
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...6 août 2014 LOGISTIQUE ET ADMINISTRATION DU COMMERCE INTERNATIONAL François Soulet de Brugière 16 avenue de la Clairière 59650 Villeneuve d’Ascq Tél mobile : +33 (0)6.0779.0699 e-mail : fsoulet@leroymerlin.fr I. Le monde et sa diversité 21 I - A : Les perceptions du monde 21 I-A-1 / La perception de l’espace 21 I-A-2 / La perception du temps 22 I-A-3 / La perception de l'argent 23 I-A-4 / La perception du rapport à l'autre 23 I-A-5 / Les espaces économiques mondiaux, 23 I - B : Territoire national, territoire douanier et territoire fiscal 41 I-B-1 / La France : 83 territoires et possessions à ce jour : 41 I-B-2 / Le territoire fiscal communautaire 41 I-B-3 / Les principaux opérateurs du commerce extérieur 43 II. Etre présents sur les marchés étrangers 43 II - A : Les différentes formes de distribution 43 II-A-1 / Les trois formes de distribution 43 II-A-2 / Le transfert de savoir-faire 43 II-A-3 / 7 Critères capitaux de sélection d’un fournisseur 44 II-A-4 / Les possibilités de représentation commerciale à l'étranger 44 II-A-5 / L’entreprise conjointe (Joint Venture – JV) 44 II-A-6 / Les zones franches (Free Trade Zone) 45 II-A-7 / Le dispositif français d'aide à l'export en matière commerciale 45 II-A-8 / Les entreprises françaises et l’export 52 II-A-9 / Une esquisse...
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...Easy French STEP-BY-STEP Master High-Frequency Grammar for French Proficiency—FAST! Myrna Bell Rochester New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. ISBN: 978-0-07-164221-7 MHID: 0-07-164221-8 The material in this eBook also appears in the print version of this title: ISBN: 978-0-07-145387-5, MHID: 0-07-145387-3. All trademarks are trademarks of their respective owners. Rather than put a trademark symbol after every occurrence of a trademarked name, we use names in an editorial fashion only, and to the benefit of the trademark owner, with no intention of infringement of the trademark. Where such designations appear in this book, they have been printed with initial caps. McGraw-Hill eBooks are available at special quantity discounts to use as premiums and sales promotions, or for use in corporate training programs. To contact a representative please visit the Contact Us page at www.mhprofessional.com. TERMS OF USE This is a copyrighted work and The McGraw-Hill Companies, Inc. (“McGraw-Hill”) and its licensors reserve all rights in and to the work. Use of...
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