From the moment Tom was in charge of the company he focused on increasing the companies profit margin. This was not an easy job being that the company’s main products are considered commodities. Aside from that the partyware industry is constantly gaining new competitors that capture the market with similar products at lower prices. Tom Rose is currently faced with two marketing strategies that could be considered industry game changers and greatly impact his business. The original strategy is the launch of a brand line for Rose Partyware that will showcase a new printing technology that will improve quality and reduce costs.
These benefits will help to lower the operating cost and raise revenues for the Blue Ridge Mill. Bob the controller at the Blue Ridge Mill needed to know if the 18million investment in expanding the company was worth it. In order to see if it was worth, first we put together the relevant cash-flows. Bob Prescott want to know if an investment of 18million on an on-site longwood woodyard and new equipment would be worth the risk. Questions 1.
BSBMKG501B MARKETING OPPORTUNITIES Assessment 2 INVESTIGATE MARKETING OPPORTUNITIES 7 October 2014 TASK 1 Assessment of Opportunities All businesses need to set goals and objectives which provide an organisation with focus. Businesses that have specific aims are usually more successful than those that do not. The future that Super Cycles is striving to accomplish is introduce a new marketing opportunity that will fit into current business activities, will be accepted by the current customer base, will not attract intense competition and that will be financial beneficial to the long term tenure of the organisation. The goals need to be specific, measurable, attainable, realistic,
Option 1 has opportunity to add value to the firm as shown by the current value adding activities (Value Chain Analysis, Section 5.1, Question 1). Option 2 has also opportunity to add value as expansion into emerging market increases the market share of Tesco (SWOT Analysis, Section 9, Question 1). Option 3 is a “Value Trap” as there is no match with parent skills i.e. expanding into technology R&D. However, there is opportunity to add value to the firm as analysed earlier in Value Chain Analysis (Section 5.1, Question 1). 2.
In addition, when CEMEX began expanding abroad, they used PMI teams to streamline a new firm, identify and retain talent, and adopt the key standards of CEMEX's business model. This ensures that their subsidiaries are working in the same fashion as the home plant. CEMEX ws also able to reduce their costs by incorporating new technology, which allowed them to maximize knowledge to everyone in the company, and allow operations to flow more smoothly. In addition, concentrating their focus on other countries can help ensure stable revenues, such that if their home country is experiencing a downturn in GDP, they can stabilize their sales in other countries experiencing GDP growth. Further, there has been a reduction on tariffs due to exporting their product.
What benefits did Hershey hope to get out of the implementation of its new system? Consider both impacts on the business and on their technology infrastructure. There were several key reasons Hershey wanted to implement new software. In the candy industry, units are sold for very low prices, which mean massive amounts of candy must be sold to generate any significant amount of revenue. To help with this process, Hershey wanted to improve on their business processes with a more reliable logistics system than their current legacy systems could offer.
Gaining a new customer can, however, be costly. Obviously, the cost of gaining a customer shouldn’t outweigh that customer’s lifetime value but keeping and increasing current customers’ lifetime value would be inexpensive in comparison. The four ways to make that increase in the customer’s lifetime value are: 1. Extend the range of goods and services they buy from you. 2.
While this target is within reason, it also can be construed as aggressive considering the company’s liquidity concerns and target for a one year ROI. As such, I have illustrated a suite of options/recommendations below. Analysis Option 1 – Aggressive Growth Given the 11.4% requirement (above 10% anticipated figure from other statistical work), pursuing the expansion into all 5 new locations would yield a strong return, but requires a significant financial investment and has a greater likelihood of not achieving the 1 year ROI. However, the blitz marketing could result in first mover advantage and with the correct talent acquisition on the sales and management team achieving 11.4% is not unrealistic either. Pros | Cons | First mover advantage | Potential for longer than 1 year ROI | Blitz Marketing | Significant investment (finances and people) | Talent Acquisition & Growth Opportunity | Talent Sourcing Challenge | Greater Risk = Greater Reward | Greater Risk | Option 2 – Moderate Growth An option could also be to explore opening 3 or 4 locations rather than all 5.
Another possible advantage of privatisation is an increase in competition as the privatisation of state owned monopolies usually occurs at the same time as deregulation of the industry. The increase in competition can be the greatest incentive to improvements in efficiency. For example, there is now more competition in the telecom industry and suppliers are now investing in fibre-optic technology and improving the infrastructure via capital investment. However, privatisation doesn’t necessarily increase the level of competition; it depends on the market structure. For example there is currently no competition in tap water, however this is a widely debated area and we could see a change to this soon and
Super Bakery wan in the look of a system that would figure out with more certain cost of each order. By having this system, the pricing could be more accurate. The system could be of great revenue results to Super Bakery as mention before. This strategy is a positive plan for the company and will provide more positive changes to Super Bakery’s Challenge. Would a job order cost system or a process order cost system work for Super Bakery.