...Although net income was down by $1.1 billion in 2007, McDonald’s sales were up 6.8%, and revenue was a record high of $23 billion. “The unique business relationship among the company, its franchisees and suppliers (collectively referred to as the System) has been key to McDonald’s success over the years. The business model enables McDonald’s to play an integral role in the communities we serve and consistently deliver relevant restaurant experiences to customers.” (McDonald's, 2008, 25). McDonald’s overall strategic plan is called Plan to Win. Their focus is not so much on being the biggest fast-food restaurant chain, rather it is more focused on being the best fast-food restaurant chain. McDonald’s “strategic alignment behind this plan has created better McDonald’s experiences through the execution of multiple initiatives surrounding the five factors of exceptional customer experiences – people, products, place, price and promotion” (McDonald's, 2008, 25). McDonald’s also incorporates geographical strategic plans. In the U.S., McDonald’s strategic plan continues to focus on breakfast, chicken, beverages and convenience. These are the core areas in the United States. McDonald’s has launched the Southern Style Chicken Biscuit for breakfast and the Southern Style Chicken Sandwich for lunch and dinner. In the beverage business, McDonald’s starting introducing new hot specialty coffee offerings on a market-by-market basis. In Europe, McDonald’s uses a tiered menu approach. This menu features...
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...I. Current News On February 1, 2010 Brown-Forman stated it is planning to establish its own distribution company in Germany starting in the third or fourth quarter of 2010. Germany plays a role in international sales and having a fully-owned sales and marketing operation will greatly help Brown-Forman’s sales. Brown-Forman should gain a competitive advantage in Germany because they will no longer need a distributer. By being able to sell and market its own products Brown-Forman should have increased international sales in Germany. (Brown-Forman News, 2010) On January 15, 2010 Brown-Forman announced its plan on giving up to $100,000 to American Red Cross to assist in the relief efforts. Brown-Forman also said it will match employee donations up to $20,000 for American Red Cross, which means the company and its employees will contribute as much as $140,000 to the Haitian Relief efforts. This kind of charity is good public relations for the company. It shows Brown-Forman is more than just a company that cares only about their net income and sales. Because there are many companies in the same industry who haven’t done anything for Haiti, people could be more likely to buy Brown-Forman’s line of products knowing that the company donated money. (Brown-Forman, 2010) In 2009, The Brown-Forman Corporation achieved the highest year to year score increase among all companies rated by the Human Rights Campaign. The Human Rights Campaign is America’s largest civil rights...
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...1. What accounts for Deutsche Brauerei’s (DB) rapid growth in recent years? What strategic choices were made? The Ukraine account grow rapidly in the recent years. The strategic is just expanding, more focus on the sale/volume, not on how to turn the order to money. It can be understood that the local distributors need some policy support from DB, because they just start, still at the beginning of capitalization period. The current credit policy is applicable for the starting phase, but long term it needs to be adapted (e.g annual bounce on the pay on time accounts). Meanwhile because of fast expansion, more investments on the Assets in Ukraine is needed. The financial plan includes a 7 million euro investment in new plant and equipment for the Ukrainian operations in 2001, followed by a 6.8 million euro investment in 2002 for a new Ukranian warehouse and distribution center. Which is reasonable, but need more detail plan/business case before make the decision. I would say, half of the amount should be financed by Ukraine team itself, if they are able to turn the account receivable to cash. 2. What is the credit policy for DB for distributors in the Ukraine? Why is it different from other sales? Is it appropriate (examine the business models in both instances). The credit policy for Ukranian distributors from 2 percent 10, net 40 to 2 percent 10, net 80 (clients could take a 2% discount if payment was made within 10 days of the invoice, otherwise payment...
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...The Cold War was a period starting in around 1946, consisting of political and military tension and economic competition. The Cold War was ‘fought’ between the Communist Soviet Union, and the Capitalist West, mainly the United States. As opposed to a hot war, wherein two nations or faction conflict in an armed battle, in a Cold War, the major military forces never engage in physical warfare with each other. Instead, the conflict is expressed via military occupations of various nations, propaganda, strategic conventional force deployments, for example the Berlin Airlift, and providing aid to vulnerable nations, like the Marshal and Molotov Plans. The two superpowers also competed against each other in terms of technological and military advancements; the Space Race and Arms Races respectively. The main reason for this tension was the opposing systems of government and their ideologies, with each seeing a threat in the other. Though the two nations acted as allies in the war against Nazi Germany, their conflicting beliefs and ideologies soon left them as enemies. The Soviet Union soon occupied Eastern Europe, while the Western Allies occupied West Europe. Unsurprisingly, tension began to rise. The US’ Marshall Plan was put into effect to provide financial aid in the rebuilding of nations ravaged by the war in Europe. However, the Soviets denied their nations they occupied to participate. The USSR also funded and aided in communist revolutions in countries occupied by the West...
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...brand that is well known around the world, especially in the USA. Wal- Mart began in the USA in the state of Arkansas. It was founded by Sam Walton in 1962. Wal- Mart quickly became the largest retailer in the world. Defeating its competitors, Wal-Mart now has control and power of the U.S. retail industry and making huge gains as the top retailer in the world. Globalization was Wal-mart next step because of its retail dominance in the United States. Globalization efforts happened quickly despite the fact that many people were skeptical about Wal-Mart opportunities in the international marketplace. In the year 2006, over 40% of Wal- Mart stores were internationally located. Wal-Mart decided to target emerging markets as the starting point for international expansion in Europe, nations with growing populations in Latin America, and in Asia is targeted China. “The first international store was opened in Mexico City in the year 1991. By forming a joint venture with the Mexican retail conglomerate, Cifra, Wal- Mart was able to overcome cultural differences (Ball al 396).” After some experience with Mexican partners, Wal-Mart succeeded to expand further in Mexico, and entered Brazil and Argentina. Wal-Mart became one of the first international retailers in China. “In the year 2006, Wal-mart out bided its largest competitor in China and acquired Trust-Mart, a chain of over 100 super centers located in 20 cities in China (Ball al 396).” This acquisition made...
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...Strategic Quality Management and Customer Satisfaction Paper Effie Dillard, Joaquin Mercado, Sherri Copeland MGT/449 June 20, 2011 Tracy King-Dye Strategic Quality Management and Customer Satisfaction Paper The History of Amazon.com In the beginning Amazon.com conducted business out of a two car garage in Bellevue, Washington. Today this retailer headquartered in Seattle, Washington has one of the largest organizations on the internet. By employing thousands of employees the organization has gained outstanding success. Customers from all over the world can purchase books, movies, and thousands of other products with just a click of a computer mouse. Amazon.com was introduced to the world in 1994 by Jeff Bezos who resided in Bellevue, Washington. “With a small investment and only one investor Mr. Bezos was able to secure a user friendly website and ship orders to 50 states and over 48 countries. During this time books were the only products that were available”. (The History of Amazon.com, 2011) “By creating a powerful community based website, customers were able to add their book reviews for all customers”. (The History of Amazon.com, 2011) In May of 1997 Amazon.com went public and by public demand the share price went from an expected $18 to $24 a share with total earnings of $54 million dollars. Within the last decade through expansion and popularity, Amazon.com opened international sites in Germany and the United Kingdom...
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...1 Overview This case takes a look at the life of Amazon.com and the many changes to strategies that have been made over the years. Starting out in his garage, former investment banker, Jeff Bezos, took a risk and decided to start Amazon.com. He looked at factors such as, the annual growth in web usage and also looked at features of the book industry, and decided that Amazon would initially be an online bookstore. Bezos focused on growing his company quickly, and by doing this formulated a winning strategic plan that focused on customer service and creating a culture for the company that was filled with talented and unconventional employees. Starting with these factors in mind resulted in Amazon ultimately becoming the most recognizable Internet retailer in the world. Amazon.com has made many changes to its strategies in order to stay ahead of the curve due to the rapid growth of the Internet. Although it started off strictly selling books and the focus was on becoming the “Earth’s Biggest Bookstore”, overtime Amazon.com began to introduce other products to its site. One of the main objectives of the company was to become the best place to buy, find, and discover any product or service available online. Due to Amazon’s evolving strategy, they became the number one online music and video seller. They also acquired companies in the UK, Germany, Canada, France and many other countries. Overtime, instead of fighting for a place amongst big names such as Barnes & Nobles and Borders...
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...IBM Business Consulting Services Challenges for the automotive industry in an on demand environment Seven areas of strategic action Executive brief ibm.com/bcs Contents 1 1 1 3 4 7 Introduction The automotive industry is facing new and pressing challenges. Globalisation, individualisation, digitalisation and increasing competition are changing the face of the industry as we know it. In addition, increasing safety requirements and voluntary environmental commitments by the automotive industry will also contribute to the changes ahead. Size is no longer a guarantee of success. Only those companies that find new ways to create value will prosper in the future. The purpose of this paper is to present a short overview of the automotive industry today and highlight challenges facing the industry. Based on this perspective, we will discuss strategic levers enabling OEMs to transform to on demand enterprises. Introduction Methodology The evolving automotive landscape The on demand challenge Brand management Customer relationship management 10 Core competency management 13 Software management 15 Quality management 17 Product development management 20 Expansion management 22 Strategic steps toward the on demand business 25 Conclusion 25 About the authors 26 About IBM Business Consulting Services 26 References Methodology The information, data and opinions presented in this paper are based on a series of interviews that IBM Business Consulting Services held with...
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...Diversification Strategies BUS 508 Contemporary Business Professor Lewis Janisa Carter February 1, 2012 Introduction In today’s highly competitive and challenging business environment many variables are to be considered when it comes to the success or failure of a business. Business firms must consider the worlds fast changing societal needs and appropriately employ the diverse strategies needed to flourish. This paper will compare and contrast two businesses, one successful and the other unsuccessful. By doing so, I will take a closer look at diversification strategies and evaluate the reasons that determine a business’s outcome. I will also discuss the importance of business plans, marketing plans, and strategic plans as they are key elements to the success of a business. And finally, I will offer the failed business new diverse strategies that would help with future success. Compare and Contrast Two Businesses and their outcomes Amazon.com Amazon.com was founded by Jeff Bezos in 1994, and launched in 1995. Amazon.com is an American multinational electronic commerce company. It was one of the first American Ecommerce companies to sell over the internet. Ecommerce has multiple advantages over “brick and mortar” and order catalogues. With Ecommerce customers can...
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...BUCHAREST UNIVERSITY OF ECONOMIC STUDIES BUSINESS ADMINISTRATION FACULTY (ENGLISH Section) Analysis of Metro GroupInternational Business project | | Students: Custură Ruxandra Gabriela Imre Botond Munteanu Teodora Metro Group 1. Description of the company 1.1 Field of activity Metro AG, is otherwise known as Metro Group, established in 1964 by Otto Beisheim. It is a German global diversified retail and wholesale/cash and carry group based in Düsseldorf. It has the largest market share in its home market, and is one of the most globalised retail and wholesale corporations. It is the fifth-largest retailer in the world measured by revenues (after Wal-Mart, Carrefour, Tesco and Kroger). Metro Group has 280.000 employees, from 180 nations, with over 2.200 outlets in 32 countries in Europe, Africa and Asia. With this force, Metro Group is one of the most important international retailing companies. In Metro AG portfolio we can find some internationally strong sales brands like: * Metro Cash & Carry - the world's market leader in cash & carry; * Real Hypermarkets – purchased by Auchan; * Media Markt and Saturn - Europe' s leader in consumer electronic retailing; * Galeria Kaufhof - the system leader in the department store business. When doing business, Metro AG goes after important values such as: * Responsibility towards our customers, stockholders and the public; * Innovative strength is one key to success; ...
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...innovative company and a contemporary culture[1] This case study explores the role of organisational management and culture within a very innovative firm, which is responsible for some very well known products such as the famous Gore-Tex fabric, and yet few people know very much about this remarkable organisation. It is operated in a similar way to that of a cooperative such as the John Lewis Partnership in the United Kingdom, where the employees are also owners. In addition the organisation seeks to minimise management with the emphasis on action and creativity. Today this enigmatic firm employs approximately 7,000 people in more than 45 plants and sales locations world-wide. Manufacturing operations are clustered in the United States, Germany, Scotland, Japan and China. Proprietary technologies with the versatile polymer polytetrafluoroethylene (PTFE) have resulted in numerous products for electronic signal transmission; fabrics laminates; medical implants; as well as membrane, filtration, sealant and fibres technologies for a range of different industries. Today the organisation divides its products into four main groupings: medical products; fabric products; electronic products; and industrial products. Gore has approximately 650 US patents and thousands world-wide. Further details of these can be found by visiting the US Patent & Trademark office website at www.uspto.gov. Introduction W.L. Gore & Associates is probably best known in Europe for its Gore-Tex product (that...
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...TABLE OF CONTENTS 1. INTRODUCTION TO BEIRUT BEER: 3 2. REASONS FOR CHOOSING “GERMANY”: 3 3. DIRECT ENTRY MODE: 6 TARIFFS BARRIERS: 7 NON TARIFFS BARRIERS: 8 4. SWOT Analysis: 9 STRENGHTS: 9 WEAKNESSES: 10 OPPORTUNITIES: 11 THREATS: 12 5. THE COMPETITION 13 6. OBJECTIVES 15 7. DATA COLLECTED 19 8. MARKETING MIX 20 9. IMPLEMENTATION 24 10. CONTROL 25 International Marketing Term Project MARKETNING “BEIRUT BEER” IN GERMANY By Bernard Azar, Elie Akari and François Attalah 1. INTRODUCTION TO BEIRUT BEER: Beirut Beer by Kassalty Chtaura is the newest addition of the finest Lebanese-made beer, which is being produced in the Bekaa valley. It is carefully made to ensure premium quality Pilsner beer with a strong, smooth and balanced taste. Its ingredients carefully comply with the Beer’s laws of purity resulting in an authentic Pilsner taste. More importantly, Beirut Beer is 100% proudly produced and bottled in Lebanon, a courageous country where nightlife reigns. Thousands of Lebanese beer fans have enjoyed the irresistible scent and taste of this fine beer since its launch in the Lebanese market in July 2014. 2. REASONS FOR CHOOSING “GERMANY”: In any markets around the world, the buying decisions of consumers will be affected by many cultural and social factors that determine who buys the product and how consumers will make use of it. Alcoholic beverages are one of the trendiest investments in Lebanon today with more than...
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... Wal-Mart SWOT Analysis A SWOT analysis looks at the strengths and weaknesses of a company and the opportunities and threats. When used in business it can help a company carve a sustainable niche in the market. A SWOT analysis can be a powerful tool that can assist a company in uncovering opportunities. If a company can see their weaknesses they can then manage and eliminate threats that would have caught them off guard. By a company looking at themselves and their competitors and using this tool, a company can come up with a strategy that will set them apart from their competitors. Wal-Mart serves customers and members more than 200 million times per week more than 10,130 retail units, under 69 different banners, in 27 countries with sales of $443 billion for 2012. Wal-Mart is the world’s largest retailer as well as the largest private employer having over 2 million employees. The strength that Wal-Mart also has is its popularity by being known worldwide. Wal-Mart serves in retail outlets, online and on mobile devices to their customers. One thing that they always mention is that they are committed to saving people money so they can live better, taking their business to were it is today. In addition the company makes strategic adjustments every time it’s needed and ensures that whenever changes occur the industry has plans to alternate to it. The strength of the company is the supply chain system where the company has products in a locked place until needed in a certain...
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... LeanEco offers cost-effective, sustainable, 24/7 Mission Critical Power Solutions for server farms, datacenters and other business critical applications. LeanEco develops, manufactures and sells an innovative, all-in-one no -break power solution. Mission /Securing Business Uptime. Vision/ LeanEco the obvious choice. Problem Statement LeanEco wants to expand to other markets to establish a great business and to differentiate from the competitors. The two main markets in Europe for UPS are Germany and UK. They counted for 18% and 22% looking at the total European market. (source: Henrik Raunkjær, CEO). Is the German market Attractive to LeanEco? Limitation The Leaneco is interesting firm, but getting the access information is not easy to find. During the presentation the Ceo Henrik Raunkjær only give brief information & the lecture is so quick that can’t even enough to write down (taking notes). Leaneco website is not enough information to support this project. Porters Diamond of National Advantage (Denmark) 1. Factor Conditions The basic factors that the Denmark is no. 6 in the infrastructure in the Competitiveness Yearbook. The technological infrastructure is high and when it comes to education Denmark is marked as no. 1 University and management education that encounter of a competitive economy and the business community. The Danish labour market The salaries has been reinforced by effective exchange rate . Key features of the Danish...
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...September 2005 Project Portfolio Management at XYZ Pharma Early morning, Monday 29th August 2005. John Smith, head of portfolio management and strategic planning, was paging through the slides he had prepared for the Portfolio Management Board (PMB) meeting which would start at 9 am, and which was scheduled to last until Friday. “We have been preparing this meeting for weeks”, he thought, “and it seems the PMB has some tough decisions to make”. The PMB of XYZ Pharma, the pharmaceutical division of XYZ, one of the world’s leading companies in the life science sector, convenes yearly in August to review the composition of the research and development (R&D) project portfolio. It also meets on a monthly basis to monitor the project portfolio and make decisions regarding new developments. According to John Smith, “The PMB is an important decision making body because it shapes the future of the company by determining its product pipeline”. The PMB members include the CEO of XYZ, the CEO of XYZ Pharma, the heads of the different business units, the heads of Development, Research, Global Marketing and Strategic Planning, the regional heads for the US, Europe and Japan and the functional managers for Regulation, Clinical, Licensing, Technical Research and Development, and Patents. The portfolio group, led by John Smith, had analysed the project portfolio carefully and had highlighted several potential threats that required action. According to John, “There will be an indepth discussion...
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