The article further discusses a new marketing campaign they will be starting in 2011. This article is important to management because Miller Coors LLC revenue has been declining and the Chief Marketing officer has recognized this and is attempting to increase future income by capitalizing at the time when beer sales are at its highest. This is also important for management because they have recognized they need new product development strategies as well as diversification. General Analysis The current management trend is that management recognizes that they still have a high market standing, however their sales are down, and they must be innovative, to be a leader in introducing new products. Peter and Donnelly (2009), state” some of the most successful business organizations are here today because many years ago they offered the right product at the right time to a rapidly growing market (p.6)”.
Examination of PowerMaster case support the idea that any philosophy or course of action that does not consider the public interest is vulnerable in today’s business environment. The more enlightened business climate creates the need for a trusting relationship between a firm and its various publics. It is called “business ethics” – “and is supposed to analyze moral and ethical rules in the economic world”. When the G. Heileman Brewing Company decided to market their product, Colt 45 PowerMaster, there were no ethical views considered. Foremost, the newer PowerMaster brand had higher alcohol content than the previous malt brand by the name Colt 45.
He also understood the power of a consistent message. And his mantra for nine years: "Theconsumer is boss." He also said that P&G, to win with powerful discounters, must slash costs and reinvest savings in marketing and product design. Focusing on those things, Lafley became the best organic-growth guy in the consumer-products industry. He drove innovation by reaching outside for ideas -- an alien concept for promote-from-within P&G. Shamelessly, he used hokey terms to
Asahi’s other option was to remain at the current level of production. The Super Dry Beer had been a successful product for them but because of the success they have only been able to keep up with 70% of demand due to their present brewing and capacity level, therefore losing out on sales. There are some financial conditions to take into account in making the decision. The cost of the debt that will be incurred if they were to proceed with an expansion decision would mean large payments on debt which would strain the cash flow. Also, the increase of the debt will reduce the debt to capital ratio which could affect the company’s credit ratings.
Another problem the company is facing is the decline in market share. Market shares have been declining due to the fact that subscriptions are slow decreasing. Our competitors are offering the same products and service in a much lower price than Netflix. The CEO, Reed Hastings and other Netflix executives are currently selling off a lot of their own stock in the company. The company’s stock is now losing value which has to be regained.
Coke versus Pepsi (Cola Wars) The “Cola Wars” between Coca- Cola and Pepsi is not the new case, this rivalry is the buzzword not only in the industry but also for the whole globe because both companies are reaping the lions share because of their unique products but by keep facing the intense rivalry from their own industry peer but Coke has some key advantages that are the outcome of implementing the Porter’s five forces model and that implementation give the edge to coke over Pepsi. To analyze that rivalry, Michael Porter five forces model that describe the strategies for businesses to further expand their business and clientele by keep keenly observing their rivalry’s pros and cons. According to the porter this keen observation is highly inevitable to develop and devise the strategy that has the features not only to solve the current puzzle but also to further strengthen the business. Porter five force model is multifaceted that does not only evaluate the industry status in perspective of open market but also has the characteristics to analyze the rivalry, threats as well as to explore the opportunities to reap the benefit of competitive advantage. To be precise, Porte’s five force model will be discusses in the perspective of business rivalry, bargaining power and close substitute respectively.
Their main market of action is obviously the US one but they currently drive their strategy worldwide as it represents a huge reserve of profits. What kind of competition? Both Pepsi and Coke understood that it was better off not to erode their gross profit by playing on prices, even if the customers have showed price sensitiveness in the past history. They have no incentives to fight on prices as long as • there are not many other sellers in the market • prices can be adjusted quickly • there is a history of cooperative pricing (except punctually) Preservation of overall industry profits by Entry Enter the soft drink market is quite risky given the high dominant position of Pepsi and Coke. Hence, there is no real threat to see a new comer eroding the whole market profits by heating up internal rivalry.
Thirdly, to resolve the issues of a widening customer demographic and unclear brand perception, Starbucks could engage in a promotion to encourage their most loyal customers as well as new business through promotions such as a free cup after “X” visits or a “club card” that encourages repeat business. For all three of these solutions, Starbucks would want to enact these solutions as quickly as possible due to the threat of eroding their brand perception. See Appendix C for rejected alternatives. Rationale for the Recommendation Adding labor hours is our first recommendation. Interestingly, Starbucks faces a unique problem since they are actually improving their service yet the customers are still not necessarily recognizing the progress.
CB is facing a dilemma because the CEO wants new products that are healthier without straining relations with existing customers who made the CB wealthy. The problem is further compounded by the dissention between Dale Berry, (CEO), Terry Hersch, (VP New Product Development) and Pat French (VP Manufacturing). Both Berry and Hersch wanted a new product but French was against such a development. The Approach: Engaged by CB to consider alternatives, I would first reiterate what steps led to Innovation Technology being retained. Problem 1: The current products of CB lead to obesity and associated with heart disease, which is the meritorious reason that justifies a needed change.
Younger customers have been attracted to this fresher approach leaving Lodge Bistro with an older customer base. • The economic environment is less benign than when your mother founded Lodge Bistro. • The change from a highly motivated visionary leader to a more consensual and informal style has resulted in the recruitment of more independent managers. This has affected the morale of the longer serving managers who resent the new approach and feel that the chain is losing its core market (b) The chosen concepts I have chosen concept 4.3, which lists Drennan’s (1992) 12 key factors that influence business culture. I have selected three factors, which will most identify the business weaknesses.