...1987, the company was acquired by General Electric, so it became a joint venture and it would help Mabe to develop business efficiently and expand market widely. In 2008, MABE cooperated with a Spanish company―Fagor to enter Russian market. However, company’s development was not very successful and many problems came out. Therefore, MABE need to decide their JV strategy in Russia in the future and had to consider whether the company should invest in Russia or give up Russian market and then invest in other countries. They should look for favorable, stable and promising investment environment and develop economies of scale to expand global marketing share. 2. PESTEL (external) Analysis: Political The Russian government wants to obtain foreign investments because they spent a lot of money to achieve this goal. However, there are many state-owned companies controlling the important industry, it can cause an unfair competition in market. Even worse, corruption and bribery are common phenomena that can directly affect the development of economy. Besides, the infighting between Russia and America leads to an unstable economic condition in Russia that was struggling with the sanctions imposed by America and its allied countries. Economic: Because of the historical reasons, Russian heavy industries are highly developed, so appliance manufacture has a good condition. Then, Russia has many non-renewable resources and the GDP growth is relatively fast. Meanwhile, it is one of BRIC...
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...Financial………………..……………………………………………..…………6 3. Alternatives & Recommendation…………………………………….……7 d. Alternatives………..………………………………………………………..……….……7 e. Recommendation………...…………………………………………...….…….………....7 f. Implementation………………………………………...………………………………...8 g. Contingency Planning……………………………………………………………………8 4. Appendices………………………………………………………….………9 h. Appendix A: VRINE Table…………………………………………………......……….9 i. Appendix B: Decision Matrix…………………………………………....…….…..……9 j. Appendix C: Gantt chart……………………………………………………………….10 k. Appendix D: Financials………………………………………………………………...11 Problem Identification Founded by the Mabardi and Berrondo families in 1946, MABE is a private Mexican appliance manufacturing company. The firm has evolved drastically after selling nearly half of their shares to a multinational company. The industrialist gained reputation and...
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...electrical appliance market and was continuing to press on towards global success. Through leveraging their foundational strategic partnership with General Electric (48% ownership) and developing others in new markets, Mabe was able to quickly spread it’s influence in international markets however, it now faced the challenge of pushing beyond Latin and North American markets. Boasting a sizeable and highly profitable appliance industry, Russia represents an attractive opportunity for Mabe however, with opportunities come a number of potential issues. This paper will address the core issue of whether Mabe should remain in the Russian market. The symptomatic issues that arise from this concern the suitability of Mabe’s joint venture partner Fagor, it’s future pricing strategy, whether to start producing locally and if other geographic markets should be entered. Various strategic and financial tools will be utilized to capture the relationship between the aforementioned issues and Mabe’s positioning as a whole, allowing the presentation of recommendations and thorough implementation plans. PESTEL Analysis Many factors define and impact the environment of an organization, which should be identified, understood and analyzed by the company so it can achieve optimum performance. With the case of Mabe’s entry of Russia, it is evident through the following analysis that there are strong factors at play which must be addressed in order to achieve success. Political: the Russian political...
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...environment on the joint venture and MABE as a whole * Other global opportunities for growth in emerging markets, including China and India OPTION 1. Continue Operations in Russia with the JV Cons: * The JV may have not yielded the results the venture intended on achieving, but the potential for earning increased profit exists. They will have to work hard for it to produce, as it should. * Amount of expenses currently incurred by MABE can be cut significantly but not at the current operational plan. Pros: * The venture currently has a 4 percent market share in stove sales, and a 2 percent market share in refrigerators and washing machines in operations in Russia. * Sales were at $70 Million in 2011, which suggests an increase in consumption and spending in Russia since the economic downfall of 2008. * The narrowing of the JV’s product line should produce better results than their previous expectations of providing a broad line of products able to serve the Russian market. * Strengthened management team within the past four years * Being fused within Fagor’s portfolio * Being within a such a vast geographical market. OPTION 2. Implement changes to continue the Russian JV. Pros: * The JV already has a few years of exposure in the Russian market, and certain operational changes may strengthen their position within the market. * Operating locally could bring cost advantages over competitors since they don’t have to pay import/export...
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...gas reserves and second largest oil reserves and we know that economies of scale are one of the keys to success for appliance manufacturers.Also the JV market share increase for 0.9% in 2008 to 4.9% at the end of 2012 so we believe in the future Russia could have more stability.Furthermore, As one of our purposes which is entering into the international market so that we choose to stay in Russia and continue with exportation. However, this joint venture could raise the problem of differentiate culture and a complex organizational structure and so on. To implement this, we may have to make some adjustments. Due to we have the cultural distance and after 4 years of operations, Mabe understand the culture which is weak legislative and enforcement regimes and the incidents of corruption and bribery at all levels of state bureaucracy. Also Mabe learned through the previous expansion that the importance of instilling the firm’s culture into the acquired firms.Thus, we should continue implementingon Mabe’s culture. Russia had faced struggles on two fronts: a decreasing population and the deterioration of human capital.Also Russian managers have been found to be more oriented to the short term and to place little emphasis on competitive strategy, formal strategic planning or financial planning. Thus we may implement only few Russian senior employees in Mabe’s Russian JV. For the main junior employees we should focus our human resources on the new generations, due to the fact that candidates...
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...WTO ACCESSION CHALLENGES: CUSTOMS UNION OF RUSSIA, BELARUS AND KAZAKHSTAN AS THE STEP TOWARDS THIS “DREAM” EXECUTIVE SUMMARY WORLD TRADE ORGANIZATION We live in the twentieth century – a time of dynamic changes in the Global Economy, associated with globalization. In International Trade Arena, the vast majority of the countries choose the free trade policy, which develops step by step: from Free Trade Area, a Custom Union into Common Market and Monetary and Economic Union. Politicians and scientists believe that in 20-30 years Trade World will be subdivided into 2-3 intercontinental preferential zones with its own rules and free trade between the parties, but with external custom barriers in relation to other blocks or still will open the ways for mixing of regionalism and multilateralism based on common objectives and principles. Obviously, the development of the World economy and trade will lead to the formation of a single Global Free Market with the agreed rules and disciplines, which will be applicable to all countries. The dominant position is such a direction takes the World Trade Organization (WTO). It was established on December 8, 1994 and began operating on 1 January, 1995 and is known to be a successor of the General Agreement on Tariffs and Trade (GATT). Here, a distinctive feature and the goal of WTO is the creation of international trade rules and disciplinary measures to ensure the conditions of a free international trade, based on mutually beneficial conditions...
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...ARI TOURS TIPS ABOUT ISRAEL ISRAEL and Ari Tours welcome you on this trip. We are sure you are going to enjoy this beautiful country, where you would see the ancient religious sites, visit museums, relax on the beach, shop in exotic markets and sample the Israeli way of life. Here below please find some useful information about ISRAEL: CURRENCY - The new Israeli Shekel (NIS) is the country's legal tender. The rate of exchange is approximately $1 = NIS 3.80. TIME - Israeli standard time is two hours ahead of Greenwich Mean Time and seven hours ahead of Eastern Standard Time U.S.A. WEATHER - The weather in Israel is often compared to the climate in Florida and southern California. The summer season (April to October) has fairly constant temperatures (60 - 90 Fahrenheit). The winter season (November - March) is mild (45 - 70 Fahrenheit) and spells of rain interspersed with brilliant sunshine. ELECTRICAL APPLIANCES - The electric current in Israel is 220 volts AC, single phase, 50 Cycles. FOOD - Israeli food takes the best of the Western and MiddleEastern cuisine and it adds its own flavor. Hungarian goulash, Russian borscht, Viennese schnitzel, American hot dogs, hamburgers and pizza are to be found side by side with the Middle-Eastern falafel, humus, tahini, shishlek, kebab and Turkish coffee, as well as traditional Jewish dishes such as gefilte fish, chopped liver and chicken soup. Most Israelis eat a large breakfast, a main "meat" meal at midday...
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...vacuum cleaner from its very British inventor. Together they are synonymous with innovation and legal battles against established rivals. James Dyson was born in Norfolk in 1947. He studied furniture design and interior design at the Royal College of Art from 1966 to 1970 and his first product, the Sea Truck, was launched while he was still Courtesy of Dyson. studying. Dyson’s foray into developing vacuum cleaner technology happened by chance. In 1978, while renovating his 300-year-old country house, Dyson became frustrated with the poor performance of his conventional vacuum cleaner. Whenever he went to use it, there was poor suction. One day he thought he would find out what was wrong with the design. He noted that the appliance worked by drawing air through the bag to create suction, but when even a fine layer of dust got inside, it clogged its pores, stopping the airflow and suction. In his usual style of seeking solutions from unexpected sources, Dyson noticed how a nearby sawmill used a cyclone – a 30-foot-high cone that spun dust out of the air by centrifugal force – to expel waste. He reasoned that a vacuum cleaner that could separate dust by cyclonic action and spin it out of the airstream which would eliminate the need for both bag and filter. James Dyson set out to replicate the cyclonic system. Over the next eight years, Dyson tried to license his dual cyclone concept to established vacuum manufacturers, only to be turned down. At least two...
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...obtained by means of personal interviews with senior management in Moscow and constituted the primary qualitative data. Research questions are posed for further examination of conditions in Russia and the effects of such conditions on the entry mode decisions of MMEs. The study finds economic conditions to be the only important determinant of entry modes for large multinational manufacturing companies investing in Russia with other country factors playing no role in their choices. INTRODUCTION With the expansion of global business activity, the ability to analyze the key characteristics of potential host countries becomes increasingly important. The key to successful international market entry is an understanding of differences in conditions that exist when comparing one market to another. While developed countries still remain the major destination for foreign direct investment (FDI), emerging economies have become increasingly important locations for MMEs’ production. Changes...
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...According to an Edelman report on Gen Y-ers, Gen Y-ers see brands as a form of self expression. The more a brand aligns with a persons lifestyle, the more likely it is that he/she will personally identify with the brand. On social networking sites, Gen Y-ers use brands as a “personal identifier” second only to religion and ethnicity. This trend is global. In a very telling sentence, one Russian Gen Y-er states, “Some brands help me to create my image.” So, I predict that brand tattoos are gaining popularity because more and more people are seeing brands as extension of themselves. People identify brands they feel reflect their personality, and get brand tattoos as a primary form of self expression. GoldenPalace.com paid this woman for the real estate space on her forehead. This is a permanent tattoo, no joke, she sold it in 2005 for $10K. Just goes to show you, if you need money or need the advertising there is always someone out there. ________________________________________ But is it impossible to save a brand if the personality is sinking? In some cases a tarnished and even violent past hasn’t impacted the brand at all – it may even add to the mystique. A slew of hip hop artists from 50 Cent to Eve have or are turning their urban images into lifestyle brands. P. Diddy (a.k.a., Sean Combs), saw his five-year-old Sean John fashion label bring in $400 million in retail sales in 2003. A women's collection and fragrance are also planned. At Federated, one of the biggest...
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.................. 1 2. Find and present at least three other disputes, which are at the agenda of the Dispute Settlement Committee of WTO. ........................................................ 2 a) Russian Federation- Measures on the importation of live pigs, pork and other pig products from the European Union .................................................. 3 b) Brazil- Certain measures concerning taxation and charges ...................... 4 c) Anti-dumping duties on light commercial vehicles (LCV) from Germany and Italy ............................................................................................................... 5 3. Explain the term “dumping prices”. ................................................................. 6 4. Which other commodities are object of protectionist measures? ................ 7 References ............................................................................................................. 9 1. Review the articles and explain what the core of the disputes is. The four investigated articles deal with the influence of governments on particular industries and how they try to strengthen and on the same time protect the competitiveness of domestic players. Three of the four articles highlight China’s protectionism on its market for cultural products. Protectionism can be defined as certain government policies and actions that are developed to restrict international trade and business activities of foreign business players.1...
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...Strategies of foreign companies on the Russian truck market - The Case of Volvo Trucks Graduate Business School Bachelor thesis 15 credits Author: Ekaterina Ilina Supervisor: Florin Maican International Business Master Thesis no 2005:37 Göteborg september 2011 Supervisor: Jan-Erik Vahlne, Roger Schweizer Table of contents 1. Introduction ................................................................................................................ 2 2. Methodology .............................................................................................................. 3 3. Theoretical framework ............................................................................................... 3 3.1 Concept of a strategy ........................................................................................................ 4 3.2 Competitive strategies ...................................................................................................... 4 3.3 Strategies for growth ........................................................................................................ 5 3.3.1 Further look into market development strategy ............................................................. 6 ...
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...How many of us would happily make do without a fully equipped modern kitchen – even if it sometimes beats like a transplanted artificial heart at the centre of an artisan cottage stripped back to its original organic floorboards and fireplace? Some might take this present-day dependence as testament to the irresistible appeal of American domestic technology, an appeal that guaranteed its spread during the second half of the 20th century. If any find this story plausible, they would do well to study this handsomely produced and well-illustrated edited collection on the attempted transfer of the American ‘modern kitchen’ to Europe during the early Cold War period of the 20th century. At the outset, editors Oldenziel and Zachmann position themselves at the cutting edge of the historiography of technology. Following Langdon Winner’s classic lead (1), they see politics as embodied in the modern kitchen, helping to bolster traditional women’s roles at time of challenge by feminism and other historical forces. Rebutting any presumed unilinear account of the transatlantic diffusion of this particular set of innovations, they define the modern kitchen as a culturally and ideologically laden technological artefact in its own right – one moreover that needs to be set within an array of large technological systems: electrical grids, gas networks, water systems and the integrated food and transport chain. They insist that a ‘host of social actors’ shape all these technological components:...
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...Cyber Attacks on the Government’s Transportation Grid Breaches and Security Implications by Penetration of the Western Interconnection’s Traffic Control System and its Effects on Modern Day Life Year after year, a number of films are released involving computer hacking of some sort along with cyber-villainy. As entertaining as they are, the validity of these possibilities is not explored. Many of these films center revolve around a chaotic vehicle-related scene where a form of the government’s transportation grid is compromised. The breach typically involves traffic control. As the stoplights and streetlights are in a state known as gridlock, external hackers usually make the situation as unruly as humanely plausible. However, the very nature of this unfortunate scenario can only be determined once the backgrounds of the systems that control it are thoroughly studied. The contiguous United States is divided into three main alternating current power grids. The Western Interconnected System, or Western Interconnection, is the one applicable to those of us living in California. The electric utilities functioning in this region are tied together, operating at 60Hz. While the grid is currently electrically powered, research by the National Renewable Energy Laboratory (NREL) in Colorado indicates the Western Interconnection can handle higher levels of renewable energy, in a quest to implement alternative energy sources. If integrated correctly, the NREL have...
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...INTERNET VS STORE-BASED SHOPPING: THE GLOBAL MOVE TOWARDS OMNICHANNEL RETAILING Euromonitor International August 2014 INTERNET VS STORE -BASED SHOPPING: THE GLOBAL MOVE TOW ARDS OMNICHANNEL RETAILING Passport I LIST OF CONTENTS AND TABLES Executive Summary ..................................................................................................................... 1 Growth Drivers .......................................................................................................................... 1 Internet Retailing Trends .......................................................................................................... 2 Chart 1 Global Internet Sales by Category 2013....................................................... 2 Behaviour and Characteristics of Online Shoppers .................................................................. 3 Retailer Strategies .................................................................................................................... 4 Outlook ..................................................................................................................................... 6 Summary 1 Opportunities and Threats to Retailers ......................................................... 6 Introduction................................................................................................................................... 7 A New Way of Shopping ...................................................
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