Analyse the potential operations management problems that may result from accepting the Chinese department store’s order. (10 marks) One potential problem that may result from accepting the Chinese department store's order is that Burkinshaw may see a drop in the quality of their products. This is because the Chinese factories have a 10% defective rate whereas the UK factories only have a 5% defective rate. This could be a problem for Burkinshaw in particular because the order for the Chinese department store is for 'exclusive, high quality, traditional' products. This in turn means that if the products are defective and not up to standard then they could damage the relationship with the Chinese department store.
The ability to increase sales and stores in America relies on customers’ preference in buying JCP products hence; the strategy is subject to dealing with customers’ satisfaction first before addressing their expansion strategy. The ability to introduce more brands to the global market through the re-organization of the departments is seen to be a proper step to achieving the corporate strategy in globalizing the business. However, this would be hampered by stiff competition from the three major
The business problem that is under investigation is that entrepreneur’s are taking too many risks because they believe they can beat the odds. The unrealistic optimism and the lending to new businesses by the government have a negative impact on an economy. People have the tendency to believe that there is a higher possibility for a positive outcome rather than a negative outcome. They have the false idea that they do not have as high of risks as others and they will succeed. Government, businesses, and individuals have an unrealistic outlook to how starting a new business will succeed in the future.
Ruth’s Chris: the high stakes of international expansion Qiuyu Li A00371649 1. Problems * As a public company, Ruth’s Chris had to meet Wall Street’s expectations for revenue growth. New restaurants were critical and the international opportunities offered a tremendous upside. * It was not a big international restaurant, so the challenge for the company was to decide to expand into the international market. * The company set strict criteria for would–be franchisees all over the world, which eliminated many of the prospects.
Guillermo needs to analyze thoroughly that there are at least two sides to every transaction, and the parties on the other side can be just as bright, hardworking, and creative as the ideas for Guillermo’s Furniture Store (Emery, etc., 2007). Guillermo Furniture Store looks and seeks for advice as mimic’s business competitors to match or be a better provider. Underestimating your competitors can lead to disaster, so Guillermo’s Furniture Store is very cautious. However, Guillermo Furniture Store indeed knows that he is faced with a major decision that
Boots have to make sure that they are able to meet customer expectations P4 - Identify the competitive factors in the retail environment a selected organization faces Bargaining power of buyers: Customers are powerful potential buyers as they can switch easily and doesn’t cost them much as they have stores in easy locations. However supermarkets will have to reduce prices in order to attract customers. There are a lot of small sellers and few large buyers as the buyers buy in large quantities which show that they are powerful. A single buyer is a large customer to a firm as they buy more. Buyers purchase from multiple sellers at once, such as customer stores.
QUESTIONS TO ANALYSE: 1. Please help Haberland support his decision on where should Genicon go next? When entering a new market it should be taking into account the different variables, economic, historical and behaviors toward growth in the sector in which you are working on. The four countries taken into account have advantages and disadvantages compared to what the company is looking for; as each country is different and has different markets and economies, some have growing economies, large population and others have them both their population is not willing to use the services and products offered by the company, it would be a good decision to enter the Chinese market as it is an economy with very high growth levels , besides the increase in the population while is growing, requires more care and as shown in the government reports China is investing heavily in the health sector so they need medical equipment providers to serve all its people who are willing to spend 20% of their income on the offered products. 2.
The strategy of the company is largely driven by the needs of mass retailers. With the advent of large scale mass retailers like Wal-Mart and K-Mart, the bargaining power of retailers over their suppliers increased. Their demands of timely delivery of high quality merchandise at a low price had to be met if the suppliers wanted to survive in the market. Since the relations of mass retailers were very long term and marked with high volume merchandise sale, loss of a single client could translate into huge losses. The very survival of the company became questionable if it does adjust to the ever changing needs of the retail markets.
Yahoo! In China Case Study The Yahoo in China case provides a prime example of some of the many difficulties associated doing with international business. Doing business in China tends to be even more difficult than that of other countries, due to their rigid rules and regulations. While I agree with Yahoo releasing the name of Shi Tao to the Chinese government, I do feel that they could have done a better job of going about the situation. However, I understand that privacy concerns and the right to free expression are central to not only this particular case with Yahoo, but with other companies doing business in China.
Ansoff’s Matrix shows that diversification is the riskiest strategy, this if for a business to create a new product in a new market, which is a strategy which is commonly used when a business expands abroad e.g. Tesco’s ‘Fresh and Easy’ stores in America. If executed perfectly, there are many possible benefits to UK retailers diversifying abroad. They will greatly increase their customer base, exposing their product to the population of the foreign country gaining more potential customers. The businesses will also benefit from a larger market size, again creating more potential.