S. A. Chupa Chups is a Multi-National Company that has grown internationally since its inception in 1958. Reasons for successes of this company have been their aggressive approach in developed and developing nations as well as the partnership they do with existing firms in those nations. The problems I noticed with their development were their efforts to diversify from core competencies and their organization structure that was central-based and did not highly promote worldwide learning from experiences.
Problem I:
The first problem I'm noticing in this case is the effort being put forward to diversify from their core competence, making confectionery products. I do understand that it may be economically sound to diversify into markets that are complimentary to your core where economies of scale could be realized. But in this case it seemed like Chupa Chups was trying to build a kingdom where everything they needed would be supplied by an internal source.
The scenario where Chupa Chups partnered with the bread baker to make cakes was a great use of their core competence being leveraged for other revenues. In this case, there were common resources required for both the candies and the cakes that Chupa Chups didn't have to recreate because of their presence in the industry.
There were other instances where Chupa Chups developed its own distribution system for the products. I feel that there were opportunity costs involved with doing this that could have been defrayed by outsourcing the distribution and investing that capital into making candy.
Proposed Solution(s):
There are two options being recommended that will provide a solution to this problem. The first one assumes that Chupa Chups has a competitive adv...
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...exists within the organization. Also, the meetings that will occur with the virtual teams should probably be no more frequent than once a month.
Impact to Bottom Line:
There will be a cost associated with either solution that will impact the bottom line in the short term. Nevertheless, I feel that there will be intangible benefits realized from this sharing of information that will indirectly have a positive impact on the bottom line.
Recommendation:
I recommend that Chupa Chups diversify and gain economies of scale as suggested in solution two for the first problem. Since they have a huge distribution system, they would have already learned lots about distribution systems that can be incorporated on other customers.
As for the knowledge sharing, I feel that it's important to implement both solutions to gain the full effect of economies of scope.
It is with reason to think this company needs to expand or do something to keep its current competitive advantage. Otherwise in this growing market the company will fall to far behind the larger restaurant chains that are gaining substantial interests in this new market.
The main challenge is to determine how Panera Bread can continue to achieve high growth rates in the future. Panera Bread is operating in an extremely high competitive restaurant market which forces the company to improve and to grow steadily for staying profitable. The company’s mission statement of putting “a loaf of bread in every arm” is just underlying Panera’s commitment for growing. They are now in a good financial situation and facing growth rates of up to 20% per year in a niche market that has a great growth potential. In the next 7 years the fast-casual market is expected to grow by 500% in sales to a total of $30 billion.
Senior Management of PepsiCo is evaluating the potential acquisition of two companies – Carts of Colorado and California Pizza Kitchen – in order to expand the company’s restaurant business. If indeed PepsiCo decides to pursue the acquisition of one or both, they must decide how to align each of these business units in its historically decentralized management approach and how to forge relationships between the acquired business units and existing business units. In their evaluation, Senior Management is faced with the question of whether the necessary capital investment in order to purchase one or both of the businesses can be profitable for each of the acquired business units, but must also take into consideration that the additional business units will not hinder the profitability of the existing business units.
Charles Chocolate’s sales revenue decreased -1.176% between the years 2010 and 2011. The equation that as used to get that was Revenue Growth= 100 × (Current Value-Prior Value/Prior Value) 100 × (11,850,480-11,991,558/11,991,558). The change in the sales revenue could have happened for very many reasons. Being a premium chocolate making company, their product may not have been very high in demand. Also forecasting the demand for their product was not a very easy thing to do either. Another issue that Charles Chocolate’s faced their competitors, such as Godiva and Lindt, are more of a well known brand then they are.
Krispy Kreme Case Study Question 1. The chief element of Krispy Kreme's strategy is to deliver a better doughnut and to appeal to customers in new ways. They have taken great steps to insure customer satisfaction from the use of their proprietary flour recipe to their automated doughnut making machines. They have chosen to target mainly markets with 100,000 households. They also were exploring smaller-sized stores for secondary markets.
Virtual teams are administrated essentially the by same fundamental values as traditional teams. Yet, there is one systematic difference. This difference is the way the team members communicate. As a substitute of using the full range and dynamics of in-office face-to-face exchange, they now rely on a repertoire of special communication networks facilitated by modern technologies, such as e-mails, faxes, phone calls, teleconferences, and virtual meetings as a result of the team being geographically dispersed. Moreover, this new type of team uses asynchronous technology to communicate amongst the team because of the teams perchance being in different time zones. The purpose of this paper is to show the positive and negative qualities of virtual
“Going forward, the company is well positioned for future growth, and Nigel and his team remain focused on driving franchisee profitability and delivering shareholder value” shares Lead Director Raul Alvar...
BR was sold to Delta Foods in 1996 for US $2 billion. At this time, it was one of the largest fast-food chains in the world generating sales of US $6.8 billion. DF purchase of BR brought in a new cultural paradigm. DF is an individualistic, aggressive growth company with brands they believe are strong enough to support entry into new overseas markets without the need for local partnership. The DF strategy is one of direct acquisition and JV’s were not part of their strong suit. DF strategic implementation is based on hiring local managers directly or transferring seasoned managers from their soft drink and snack food divisions. The DF disdain for JVs is clearly reflected by their participation in only those JVs where local partnering was mandatory (e.g. China) to overcome regulatory barriers to entry. JVs had been the predominant strategy for BR which was unlike the DF outlook. Terralumen’s strategy was misaligned and out of sync with the DF strategy. This was unlike the complementarity that existed with BR’s strategy. This misalignment began to affect the JV relationship that had worked well with BR in the initial years. The failure of Terralumen and DF to recognize this fundamental cultural difference between their operational strategy styles i.e. Individualistic and Collectivism leads to their inability to proactively create steps for better alignment in the early period after acquisition, creating uncertainties and difficulties for both corporations. There is a lack of communication and virtually absence of trust between two new partners. DF appeared to be flexing its muscles in the relationship and using a more masculine approach compared to Terralumen’s more feminine approach. Both the corporations are strategically involved in a complex situation where they appear reluctant to address the issues at stake and move ahead together. The DF strategy of
Most of telecommunication companies consider the customer as the most important asset for them. For that reason, nowadays, a challenging problem that encounters telecommunication companies is when the customer leaves the company to another service provider for a reason or another [1]. In most cases, this churn can happen in rates which seriously affect the profitability of the companies since it is easy for the customers to switch companies.
Rheude, J. (2016). The Future of Distribution - How Products Will Get to Markets. Retrieved from https://www.webretailer.com/lean-commerce/future-distribution/
Frito-Lay is one of the top producers in the snacking industry and the name rings all too familiar among consumers. What consumers are not familiar with is the competition among Frito-Lay and their numerous competitors such as “ConAgra (DAVID Seeds, Crunch n’ Munch, Orville Redenbacher), Kraft Foods (Nabisco, Honey Maid) and Procter & Gamble (Pringles)” (Sloan, Marshall & Stuart, 2012 p. 443). The lovable corn chip snacks got their beginning in 1932 when C.E. Doolin began selling them in San Antonio, Texas. Coincidentally in the same year Herman W. Lay founded his business with Lay’s potato chips in Nashville, Tennessee. Subsequently in 1961 the two chip retailers merged to become Frito-Lay, Inc. However, by 1965 Frito-Lay, Inc merged with
In this assignment, I chose to conduct a SWOT (strengths, weaknesses, opportunities and threats) analysis on a bakery company in Kedah called Kek Sayang. Kek Sayang is a family based business. It is also the oldest bakery in Alor Setar. It started with a really small vendor established on 1st January 1980. On 2002, it has transformed to a boutique bakery. On 2006, the shop has been renovated to include a small portion of cafe-sort to cater all kind of customer. It sells varieties of handmade cakes, buns, pastries and cookies. Later on, the menu extended to drinks which include coffee, smoothies and milkshakes. Its vision is to be the best Bakery in Kedah. Thus, only the finest ingredients are used and artisan techniques are applied
Getting the right product at the right place and at the right time involves an efficient distribution system. It involves distribution and storage of goods and making it finally available to the customers. Our product will be produced and sold in Winnipeg. So, it will be distributed within the city using different modes of distribution. The customers always prefer to buy the products at convenient places. The Fresh Juice will be sold first at the smaller and cheaper places first as we need to analyze the market and experiment the tastes and preferences of the customers.
Although there would be the con still that anyone could make cupcakes and enter the market easily. My target market would be around vegan and gluten free consumers. The other companies will always be around as everyone loves there sweets but as the economy develops more health issues and risk people will slowly start to turn to alternative eating lifestyles. Which can lead to a breakthrough of more vegan food base restaurants and shops in the near future. Its also a business that will stabilize it self as it will always be a want in this world. The only thing that may be strenuous on a business may be the revenue due to price adjustment as the economies household incomes fluctuate. When that should happen a new business model will be put in to effect to keep the business thriving and
Virtual teams – virtual team is one of the most popular teams in every organization because in virtual team the member are separated in different nation and use technologies to communicate to accomplish their goal on the time.