from China goes to Wal-Mart. This made Wal-Mart China’s eighth largest trading partner. Governments, businesses, communities, and individuals in countries around the world face both challenges and opportunities as a result of rapidly expanding economic globalization. Changes in a country’s economy can happen very quickly and can deeply affect people and institutions. The fact that Wal-Mart is a company not even a country; and is China’s eighth largest trading partner; just makes us realize how much economic growth depends on businesses to produce more goods and services faster and more efficiently.
The stock prices rose because the air transportation agreement between United States and China and the market opportunities of this deal in China for FedEx and UPS. b. FedEx stock prices outpaced UPS because FedEx had a larger presence in China with its Chinese volumes nearly doubling from 2003 to 2004. FedEx having 11 flights weekly and serving 220 cities in china with direct flights to important cities. c. FedEx’s increase in market value is because of the efficient market. All investors have access to information, and due to its current market share and operations in China.
He succeeded in winning a niche foothold in the mainstream as quickly as possible through his brand image (close to nature yet highly technical sport wear). When normal people started calling him to inquire about how to find the products, it meant he was finally moving from his niche to the mainstream market and the chasm was crossed. 2. Should Icebreaker enter the Chinese market? Provide a rationale using information from the case.
FedEx had high stock prices because they had a larger presence in China then UPS did. FedEx was more innovative and catered to more cities in China, also offering more weekly flights then
Just these three political interferences could eventually seal the fate of Riordan Manufacturing operating abroad. Still, there are many benefits to operating overseas; all is needed is a solid business plan. One major advantage is the level of education and experience the country has to offer to its customers when it comes to meeting the rigorous standards of exporting by Western legislations and consumers. Secondly, labor is significantly cheaper than India and most foreign countries. 2.
Due to the cheap labour available, Trans national companies have invested in China and therefore products are now mass produced there more than any other country in the world. Popular global events such as the Olympics have also made an impact on the development of China as it earns them money and gives them a chance to show their progress in development to the rest of the world. However,
Outsourcing brings proven benefits in the form of economic leveraging, increase in the quality of products and it provides a number of opportunities to less developed countries. For example in recent times, Americans are overwhelmingly supporting the major retail stores like Wal-Mart, Target and K-Mart. The reason behind this consumer loyalty is that it has become much easier to shop at these locations rather than the local mom and pop stores located on the corner of most neighborhoods. The benefit is that you can purchase everything on your shopping list from one location, saving you time, money and gasoline. In a highly competitive business world, on a firm’s priority list is the subject of increasing profit and reducing cost.
For Canadian businesses, China still represents a vast untapped market for Canadian goods and services. For trade-dependent Canada, it is important to navigate this shift in global economic current by modifying its trade policies to ensure its continuous economic growth. Although trade with United States still continues to dominate its international trade and investment policy, Canada’s economic stability will depend upon its economic ties with China representing the second pillar of global economic growth. As China is slated to become the world’s largest economy in the near future, it is imperative that Canada focuses on strengthening its economic and political ties with China. As of today,
Case #22: Tiffany & Co. I.) SWOT Analysis Strengths: - Positive brand image - Diversity of product offerings - Strong financial position (good liquidity, not too levered, increasing profits, etc.) - Effective inventory management - Knowledgeable sales staff (within company operated stores) - Multiple sales/distribution channels - Exclusive licensing agreements with respected jewelry designers Weaknesses: - Too reliant (79% of total sales) on the fine jewelry product line - International net sales less than domestic net sales despite more international stores - Weak use of celebrity sponsors Opportunities: - Potential for growth in emerging markets (Brazil, China, Canada) - Strategic partnerships with mining companies to help reduce overall costs - Growing acceptance of internet shopping can help them globally expand without building physical stores in other countries Threats: - Global economic downturn will reduce the demand for high-end luxury goods - Increased competition from various competitors - Reliant on a resource (diamonds) which can fluctuate in price and availability - Environmental regulation that would affect their production/supply processes II.) Strategic Recommendations Based on the SWOT analysis, I would make a few strategic recommendations to Tiffany.
* Brill’s proposed organizational changes to create Eurobrand teams will be perceived as a direct challenge to the country manager’s local authority levels. * Concern about the effectiveness due to the team size (upwards of 12). Analysis: The market structures and taste differ to a large extend in different European countries. The wounds of the “Podcafe” and the frozen fruit juice line debacle are still fresh in the minds of Corporate in Kalamazoo. Lora Brill had an uphill task of balancing the company’s interests with the urge to become a market mover.