Studennt Name:Bhavika
Attached 3 case studies and would need each in one page.
Criteria for the 1-page individual case write-up:
Problem statement: Define the scope of the identified problem in the first paragraph of
your paper. Conclude the first paragraph with the question, and
explain why the question is important. (05 points)
Analysis: Analysis remains focused on addressing the question raised.
Indicate the key factors that are important for answering your
question and indicate the interrelationships between factors.
(10 points)
Recommendations: Suggested recommendations should follow logically from analysis.
Be sure to discuss implementation issues. (05 points)
Thank you,
Maha
Student’s Name
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University Name
Executive Summary
This report outlines three case studies:
Case Study 1– outline the problem statement at Volkswagen that why the company is is facing a constant losses and decline in the sales?
Case Study 2– Outline the problem Statement at Ready to eat Industry that was the lock-step move fruitful for the industry or did it promote anti-competitive practice at the state along with the problem that was price gap due to promotional functions justified or not?
Case Study 3– Outline the problem at Wal-Mart Stores Inc. Was the performance of the company due to industry attractiveness and to what extent it can be attributed to competitive advantage. Along with the cultural problems faced due to global expansion?
Contents
Case Study 1 Volkswagen. 3
Case Study 2 Ready to Eat Industry. 5
Case Study 3 Wal-Mart 6
References. 7
Case Study 1 Volkswagen
In this case study, we can observe that the company Volkswagen is facing a decline and losses from the last eight consecutive years. Due to the financial crisis in the global economy, there was an impact on the company’s economy too. The balance score card of the company is constantly showing red and yellow lines (Kaplan, 2014).
Volkswagen do Brazil was continuously cutting the cost of production and investments from the market share. The expansion strategies were put on hold and no further production was taking place in the workshops of Volkswagen do Brazil. The question is ‘why the Volkswagen do Brazil was facing a constant losses and decline in the sales?’
The importance of the question is that as we know that Volkswagen do Brazil is one of the most prominent and well established companies of automobiles sector. In Brazil, 19% of the GDP produced due to the automotive sector.
The Volkswagen do Brazil was facing a constant losses and decline in the sale of its products due to the some reasons related to government as the government of Brazil announced in 1955, that MNCs abandon the markets of Brazil or start manufacturing the vehicles by using local content. The competition was very high at that time as the companies like fiat, ford, VW and general motors were leaders in the market. The workforces were going of strikes that had created a crucial situation for the company. In 2007, carsteen isensee started cutting the cost of production and reduction in the workforce (Reuters, 2016).
He said that there must be restructuring in planning must takes place with the strategic planning that will help the company to re-establish the same. The money should spend wisely so that an improvement in financial statement, balance scorecard, etc takes place.
The key factors that will let us know about the changes takes place in Volkswagen do Brazil
The company used balance scorecard and strategic plans to establish strategic and cultural changes. They change the bureaucratic culture and develop new relations. They introduced new tool that can develop new and healthy mindset of the employees. Analytical support was providing by the financial and planning department. BSC committee was established to handle finance, customer, growth, potential and internal process of the company. They reduced the cost of production by improving the quality of the same.
In this way by using the above key factors, Volkswagen do Brazil brought changes and transformation in the company’s financial and planning strategies. They should use metrics and novel communication methods effectively that help to improve the performance so that the company is able to capture the heart and mind of people.
Case Study 2 Ready to Eat Industry
Given case study is related to crumbling down of prices in the year 1994. The period depicted a slowdown in the profitability of big three brands (Kellogg’s, general mills and Phillip Morris). The reason behind a slow down in price was due to the widening gap in between the branded and the private label. Is the RTE industry decision to lock- step move was fruitful for the market or does it promote anti-competitive practices in the State? Does the price gap due to promotional function was justified?
The industry saw a steady growth in the 20th Century where there was a minimum price gap among the market leader due to monopolization. The era depicted a rapid growth in the cereal industry due to rise in demand in the local market. There trade practices restricted the entrance of a new competitor which has resulted in accumulation of wealth with the three companies. Other competitor was afraid of entering the industry due to tactical policies of the brand. They know that it was difficult to survive under such a difficult scenario. Profilteration by the brand was considered to be a major reason to the restricted entry of others. The period showed fewer entries of new brands into industry and some of them ended eventually because of sheer competition (Reimer and Connor, 2002).
The industrial revolution in 1990s showcased an era of complete transformation in technological process. Although there was no major change in the taste of the product but the cereal brand tried to introduce different size, shape, combination and taste. The distribution channels were increased which depicted a market share of 75.6% of sales in retail stores itself. The price- promotion was responsible for a hike in a price by15.6% from 1990-1993. Hike in the price was considered to be corrupt in the period because it finally put a burden on the consumers (Corts, 1994).
The period shows an innovation in the cereal industry by diversification of the products. Both General Mills and Kellogg’s tried to bring innovation in their product to accommodate the changing market requirements. The period from 1991-94 show an entrance of new brands into the market which posed a huge competition to the existing super brands? Consequently the rise in the prices has caused a threat on the existence of the other brands and General Mills finally withdrew itself from the scenario.
Case Study 3 Wal-Mart
Wal-Mart stores Inc. is the largest retail company that employees around 1.4 million people. The company provides general merchandise, family apparel, household items, toys, fabrics, beauty products, electronics along with jewelry and footwear. The company was created by Sam Walton in 1962 with the view to keep low prices and provide good service to the customers. The company was approved and listed on the New York Stock Exchange in 1972. The strategic goals of the company are to dominate the retail-market and gain competitive advantage. The company has expansion plans globally and also to diversify its operations into other segments. The competitive strategy is to dominate the market in the sectors in which they conduct their operations and sell products at a low cost and outsell its competitors. The company has been immensely successful since its inception. It has outdone its competitors in gaining a larger market share. The industry seems attractive but to what extent the performance of the company is attributed to the attractiveness of the industry and to what extent to competitive advantage (Ghemawat, Bradley & Mark, 2004)? Also can the company sustain its recent performance and keep pace with its expansions globally facing the cultural challenges (Ghemawat, Bradley & Mark, 2004)?
The industry in which the company competes with other retailers is highly attractive, the barriers to entry are high and the potential for growth and rate of growth is also high. The customer is price sensitive and does not demand high product differentiation. The company had to overcome the problem of storage by setting up its own warehouses to cut down the costs and develop a strong support system. To gain competitive advantage they had to bargain with the suppliers with high level. The inventory turnover was high, and to achieve economies of scale distribution hubs were set up and middle man was cut out. The distribution network was developed sustainably and relationships with the suppliers were maintained. The company has strong operating efficiencies. The performance of the company was not really attributed to the attractiveness of the industry.
The cultural challenges faced by the company due to its expansion, pose a problem. The significant expansion and turnover rate of 44% along with the charges that the company falls behind the rest of the world in the promotion of women to management ranks. The company needs to analyze this shortfall carefully to develop location flexibility.
References
Corts,K. [1994] Ready-to-eat breakfast cereal industry in 1994 (a). Harvard business review, 17 p [Accessed on 25th October 2016].
Ghemawat, P., Bradley, S., & Mark, K. (2004) Wal-Mart Stores in 2003.[Online]. Available at file:///C:/Users/Abasus%20Solutions/Downloads/1037695_748672129_case3walmart%20(1).pdfU.S.: Harvard Business School. [Accessed on 25th October 2016].
Ghemawat, P., Bradley, S., & Mark, K. (2004) Wal-Mart Stores in 2003.[Online]. Available at file:///C:/Users/Abasus%20Solutions/Downloads/1037695_748672129_case3walmart%20(1).pdfU.S.: Harvard Business School. [Accessed on 25th October 2016].
Kaplan, R., (2014). Volkswagen do Brasil: Driving Strategy with the Balanced Scorecard. . [Online]. US: Harvard business school. [Accessed on: 25th October 2016].
Reimer,J. and . Connor,J.[2002]. [Online]Market Conduct in the U.S. Ready-to-Eat Cereal Industry. Available at: http://ageconsearch.umn.edu/bitstream/19726/1/sp02re01.pdf [Accessed on 25 October 2016]
Reuters, (2016). Volkswagen told to do more for its European customers. [Online]. Available at: http://fortune.com/2016/10/24/volkswagen-eu-compensation/ [Accessed on: 25th October 2016].
