Synopsis: Toucon Collections, Inc. is an importer and distributor company with a history about 100 years. Now, its bargaining position has eroded and the gross margin slipped in recent years due to aggressive competitive bidding by others. And this case is about an opportunity for Toucon Collections to broaden their firm’s position through a contract with mass-merchandise store chain. The contract submitted by the chain stated that it would buy at 10% below Toucon’s existing prices, and that its initial purchase would be for no less than $750,000. And they estimated the purchases to be at least $4 million annually.
* Control: Because there is only a single owner, a sole proprietor has control of all aspects of the business. The owner makes all of the decisions in how the business is to operate. * Profit retention: A sole proprietor keeps all profits of the business and does not have to share them with another individual. If the sole proprietor employs others, then it is the responsibility of the owner to pay the employees. * Location (expansion): Relocating to another state for a sole proprietorship is simple.
Since chipotle was adding at least 100 restaurants a year the CEO of McDonald’s thought it was too much work so in 2006 McDonald’s cashes on its investments and walks away with 1.5 billion dollars. (So McDonald’s does not own chipotle at this time) His dad invested an additional 1.5 million dollars, ells also created a board of directors which brought in an additional investment of 1.8 million to keep expanding the company. By the early 2000’s the expansion of chipotle
Meanwhile some food service workers are claiming $12.85 an hour is not enough to raise a family on or even live in Pittsburgh. Such as Christoria Hughes, a food service worker who has been working at UPMC for the last 6 years, she claims the $12.85 sounds good but on paper its under $350 a week. Mr. Peaslee said his employees are being paid fairly and are receiving great benefits with plenty of career opportunities. Referring to the tuition assistance plan, pension and 401(k) match. However as good as all of that sounds, once again do not judge a book by its’ cover.
After reading the Cerjugo case, there are a number of symptoms that can be identified throughout the case that suggest that the multi-million dollar manufacturing and distribution company is experiencing major difficulties.The first and most obvious symptom is the fact that the the juice sector of their company has not been able to reach its targeted profir margin for 2 years in a row.Another issue cerjugo encounters is high turnover rates in their sales force,including his manager of juice manufacturing and employees who do not feel motivated enough to fully understand the juice attributes which is hindering Cerjugo’s brand awareness.The lack of the employee understanding of the juice attributes hurts the company’s brand because employees are not able to effectively convey all the necessary information about the product to the consumers.furthermore cerjugo’s brand awareness will keep hindering as long as consumers are unaware of the “freshness”,all natural ingediants and the overall high quality of the juice which is Cerjugo’s main competitive advantage over their rivals. Root causes the root cause of the lack of employee understanding of the overall juice divison is the fact that theer is no job specialization what so ever.Each member of the sales force is required to sell beer and juice,however most of the employees were hired from when the company only sold beer and prefer to stay within their confort zone. The reward system the company is currently using is the root cause of the unmotivated salesforce and the high turnover rates,Cerjugo uses a performance bases reward system based on the beer and juice sales an employee makes. Another root cause is the organizational structure that Cerjugo curremtly uses. All the front line employees for both beer and juice production seem to be reporting back to only Carlos Menga the beer manager.The disorganization of
Each year, Welch would fire the bottom 10% of his managers and rewarded those in the top 20% with bonuses and stock options. He also expanded the broadness of the stock options program at GE from just top executives to nearly one-third of all employees. In Jack: Straight From The Gut, Welch states that GE had 411,000 employees at the end of 1980, and 299,000 at the end of 1985. Of the 112,000 who left the payroll, 37,000 were in businesses that GE sold, and 81,000 were reduced in continuing businesses. In
During 2004, the situation got worse and the assets had gone down to 48.5%. Lucent’s cash and cash equivalents went down from 24% of their entire assets in 2003 to almost 20% in 2004. Lucent’s inventories, however, came up from 4.0% in 2003 to 4.8% in 2004, this is about a 20 percent increase in the total inventory. Lucent Technologies had a quite significant drop of their debt structure between the years of 2003 and 2004. While the current liability dropped from 25.6% in 2003 to 24.3% in 2004, it is apparent that this company has allocated for this as a long-term debt since it rose from 23% of total liabilities in 2003 to 26.4% in 2004.
In U.S., traditionally known as the core market, GM was selling less and less cars even since 2000 (The New York Times, 2009) and lost one third of its position, covering 28,1% share in 2000 and only 19,8% in 2009 (figures for cars and light trucks sales in U.S., Canis et al. 2010). From today’s point of view it could be surprising that GM still holds its leading position in
The South Korean unit, however, is comparatively very small. It had $22M in sales in 2005, which represents less than 1.5% of company revenues, and employed 50 people. Even though the South Korean subsidiary bet its business plan and also expects significant expansion, the unit will maintain a reduced size. Constantly growing at 40% per year, in three years the unit would still represent less than 3% of total sales, assuming no further growth of the company. Accordingly, other relevant and high growth units that follow the current structure and have been successful so far, like China, would probably deserve more attention.
A good leader doesn’t have to know manuals by heart, only that they know how to reference material and complete a task complete and with mission complete rate at less above 95 percent. Even if a mission seems like it will fail or the time schedule is not in cooperation with the task’s completion a leader will find a way to complete. The reason a lot of leaders seem like bad or incompetent leaders is because most are rushed into a leader’s position before they feel like their time to grow is complete. I know sometimes it can not be helped and a unit needs leaders but that is when a good leader steps in a helps that leader out. Others are just plan as day bad or horrible leaders.