...success--------------------------------------------3 2 current business and operation strategy--------------------------------------3 3 Strengths and weakness-------------------------------------------------------3 4 Order winners and qualifiers-------------------------------------------------3 5 Environment analysis---------------------------------------------------------3 6.1 external analysis--------------------------------------------------------------3 6.2 Forces analysis---------------------------------------------------------------3 6 main expectations-------------------------------------------------------------3 7.3 main expectation--------------------------------------------------------------3 7.4 improvement from the relationship with Flextronics---------------------3 7 key challenges-----------------------------------------------------------------3 8 key issues-----------------------------------------------------------------------3 Reference---------------------------------------------------------------------------3 Appendix---------------------------------------------------------------------------3 Abstract This report is based on the case study of Lego Group’s outsourcing journey. It will apply some business and operations management theory and models to analysis of Lego’s management decisions in forming the operations strategy and development operations designs. Through the analysis, the...
Words: 2165 - Pages: 9
...Coca-Cola, the iconic soda maker, had its roots in globalization in the early twentieth century. Historically, up until the 1980s, Coca-Cola primarily encouraged the strategy of localization. When Roberto Goizueta became the CEO in 1981, Coca-Cola slowly shifted towards a more standardized policy in an attempt to more effectively penetrate international markets. Within a matter of ten years, Coca-Cola was forced to once again shift its policies because standardization creating growth the corporate giant had hoped to see. Both strategies of localization and standardization have had limited successes in the past. The question now becomes what are the necessary considerations needed to be taken into account to enable a product to sell internationally and to continue to grow? Before analyzing the strategy Coca-Cola should partake, it is important to look at the general strengths and limitations to both strategies. On one hand, standardization brings in competitive advantages that localization cannot bring. According to Meyer and Bernier, the ultimate advantage of standardization is economies of scale in R&D, production, and marketing. Such economies of scale have led to “greater sales volume, lower production cost, greater profitability, and [an] integrated image around the world” (Meyer and Bernier 11). However, standardization often fails to adhere to cultural differences. For example, when Phillips a technology company, introduced its standardized coffee maker to the Japanese markets...
Words: 922 - Pages: 4
...lead the new market entry. To enter the market, Silvio and company had many factors to contend with; including but not limited to (1) the strategic approach and mode of entry; (2) organizational structure; (3) marketing, sourcing and logistics strategies; and (4) international and local staffing policies. Simultaneously, the company had to consider the best international strategic approach applicable to the specific market environment; government guidelines; product development including targeting and positioning; chain supply management including logistics efficiency; and possible human resources management issues including cultural navigation and other differences. The following critical issues will be discussed in this analysis; (1) identify and discuss two major issues and management problems that challenge Schindler’s cultural adaption for its operations in India; (2) was Silvio the right choice for general manager of the India operation; (3) the overall evaluation of Silvio’s first eight months as general manager of the Indian company. Two major issues and management problems challenging Schindler’s cultural adaption for its operations in India are (1) strategy as a new market entrant and (2) marketing, sourcing strategies and logistics. To begin, Napoli’s approach to entering...
Words: 1514 - Pages: 7
...Information Plan 1 Table of contents 1. Business strategy 1.1. Mission 1.2. Shared values 1.3. Vision 1.4. Goal 1.5. Strategy 1.5.1. SWOT Analysis 1.5.2. PEST Checklist 1.5.3. Dimensions of competency 2. ICT Strategy 2.1 Mission 2.2 Vision 2.3 Goals 2.4 Strategy 2.4.1. Higher level of standardization & more commonality in business processes and systems 2.4.2. Lower IT operating costs 2.4.3. Higher value for new initiatives 2.4.4. Improve cultural characteristics, enabling the decrease of resistance to changes. 2.4.5. Increased level of sharing for systems and services 2.4.6. Generic strategies 3. Business & ICT Alignment 3.1 Technology transformation 3.2 Innovative: making use of opportunities 3.3 Strategic Alignment Model Enhanced 4. Enterprise Architecture 2 1. Business strategy 1.1. Mission Improving people’s lives through meaningful innovation. For the past 120 years meaningful innovations have improved the quality of life for millions, creating a strong and trusted Philips brand with market access all over the world. In light of key global trends and challenges – e.g. the demand for affordable healthcare, the energy efficiency imperative, and people’s desire for personal wellbeing – phillips is confident in their chosen strategic direction. 1.2. Shared values The values of Philips reflect the ambition that have been laid down in our strategy. The values are like a compass guiding ...
Words: 2889 - Pages: 12
...ATENEO DE DAVAO UNIVERSITY Zara CASE STUDY Submitted to: Timajo, Renante Submitted by: Rodriguez, Suzaine Joyce Jimenez, Real Joy Ongbay, Maxenne Abigail Catbagan, Jethro A. Point Of View We assume the point of view of Pablo Isla Alvarez Tejera, who is the First Deputy Chairman and CEO of the Fashion retailer group, Inditex, in where Zara fashion stores is their most popular brand. B. Identify The Mission And The Vision Vision The vision of the company according to their website: “Zara is committed to satisfying the desires of our customers. As a result we pledge to continuously innovate our business to improve your experience. We promise to provide new designs made from quality materials that are affordable”. Mission The mission as stated in the website: “Through Zara’s business model, we aim to contribute to the sustainable development of society and that of the environment with which we interacts” C. The Business Model Of The Company Zara is a Cost leader in the fashion business. They practice cost efficient techniques like “fast-fashion” where trendy catwalk-inspired items manufactured quickly and sold at affordable prices and deliver new products in less than three weeks rather than the biannual style of the luxury brands which leads to faster reaction to customer demand within season. Outsourcing is also one of the reasons of the Cost leadership of the company, in where the unloading of new merchandise from the trucks into the stores are made by the...
Words: 1762 - Pages: 8
...Chapter 12 Global Products Outline * The pros and cons of global product standardization * Localization vs Adaptation * Global product lines * Developing global new products Do Not Read (Unless Noted) Page 401 list 1-5 Page 401-403 Ford’s Global Car Drive, all Page 407 para 3 and 6 Page 408-409 Pitfalls of Global Standardization, all Page 410 Getting the Picture Page 411 para 3 Page 413 Sales Forecast, all Page 416-425, all Introduction * Market coordination * Product standardization * Marketing Mix uniformity Global products/brands have coordination between markets, standardization of products and uniformity of marketing, across all markets. Regional products and brands are unique to a particular trading region. Note: * The difference between Global and Regional products is of degree not kind/type. That is, the issues are the same (kind/type), but the number of countries (degree) to which the marketing analysis applies is different. * Regional products can be thought of as latent global products. Localization vs Adaptation Localization: * Changes that are required for the product to function in a new market. Without localization the product cannot compete because it will not be able to function properly. It will be rejected immediately. NOTE: A standardized product still needs to be localized to function properly. Adaption: * Changes that are required to match customers’ preferences...
Words: 937 - Pages: 4
...environment basing on the rate of change and basis of competitive advantage, which creates four quadrants including efficient, predicable operators; information integrators; responsive situation providers, and new capability enablers. A new review of Accenture IT Governance Model reveals that Alcan falls under the efficient, predictable operator’s quadrant. This quadrant suits companies that have low rates of change and focus on attaining operational efficiency, which entails meeting business requirements while closely controlling operating costs. Alcan’s IT management is characterized by centralization with the business units operating under a single IT plan and strategy. Alcan focuses on cutting costs of production and makes use of its IT department to ensure that costs are low. This is facilitated by standardization and consolidation of its IT infrastructure, resulting in vertical integration of its IT governance structure. The Weill and Ross IT Governance model emphasizes on the specification...
Words: 1217 - Pages: 5
...country rather they could look to adopt a standardized approach or can opt for an adapting strategy in order to meet the cultural, countries, communication and economic differentiations. The purpose of this essay is to understand the significance of global integrated marketing communication and to recognize the factors that should be considered in order to adopt standardization or adaptation approach for communication in international market. Standardization According to Kustin (2004), presenting the similar marketing strategies internationally is said to be the standardization approach. As stated by Vrontis & Thrassou (2007), the needs and wants of the consumer does not fluctuates among many of the countries. Moreover, the globalization has playing a great part in escalating the similarities and reducing the differentiations. However, adopting the standardization approach lower down the costs of the organization. Moreover according to (Lundeteg, 2012), standardzied strategy could also be termed as the one size fits for all strategy. The giant organizations and multinational organizations such as P&G should go for the standardization strategy as it saves the extra-costs associated with the labeling, packaging styles, colors and logo of the products. (Loyka & Powers, 2003). Different countries require different things and organizations that adopt standardizations strategy for their products and services might not have the required uniqueness. The individuality...
Words: 3079 - Pages: 13
...……………………1 Background of the Company……………………….…………………………………………1 Standardization and/or Adaptation in Toyota…………………………..……………1 Marketing Mix: 7ps…………………………………………………………………..……………1 Standardization or Adaptation of Toyota’s Products……………………1 Standardization or Adaptation of Toyota’s Prices…………………………1 Standardization or Adaptation of Toyota’s Promotions……….………2 Standardization or Adaptation of Toyota’s Places…………………..……2 Standardization or Adaptation of Toyota’s Physical Evidence………2 Standardization or Adaptation of Toyota’s Processes ……………….…3 Standardization or Adaptation of Toyota’s People……………………….3 Conclusion…………………………………………………………………………………………..…4 2. Definition of Internationalization Process Theory (IPT) .4-5 3.Conclusion………………………………………………………………………………………………6 Conclusion……………………………………………………………………………………………..6 References…………………………………………………………………………………………….6 Introduction: Executive Summery This report will be discussing one of the world’s leading brands; Toyota Motor Corporation’s approach to international marketing, and how the company positions itself in the global market via the marketing mix. We will do this by looking at how Toyota standardizes and adapts different aspects of its marketing mix, and applies them to different regions throughout the global market. We will also be discussing the Internationalization Process Theory in order to better understand Toyota’s strategies in approaching the global marketing. Background of the Company ...
Words: 2287 - Pages: 10
...1 The fundamentals of standardizing global marketing strategy Nanda K. Viswanathan Delaware State University, Dover, Delaware, USA, and 46 Received February 2004 Revised February 2006 Accepted February 2006 Peter R. Dickson Florida International University, Miami, Florida, USA Abstract Purpose – To examine issues of standardization and adaptation in global marketing strategy and to explain the dynamics of standardization. Design/methodology/approach – This is a conceptual research paper that has been developed based on gaps in prior frameworks of standardization/adaptation. A three-factor model of standardization/adaptation of global marketing strategy was developed. The three factors include homogeneity of customer response to the marketing mix, transferability of competitive advantage, and similarities in the degree of economic freedom. Findings – The model through the use of feedback effects explains the dynamics of standardization. Research limitations/implications – Future research needs to empirically test the model. To enable empirical validation, reliable and valid measures of the three factors proposed in the model need to be developed. Additionally, the model may be used in future research to delineate the impact a variable may have on the ability of a firm to follow a standardized global marketing strategy. Practical implications – The three-factor model aids decisions relating to standardization in a global marketing context. Originality/value – The paper...
Words: 9134 - Pages: 37
...Coca-Cola strategy Today, our Coca-Cola Company serves consumers in over 200 countries and has expanded to about 400 licensed brands. The issue we face is how to continue growing and adjusting to local demands, while at the same time building a coordinated strategy with direction from the center. Thus, we need to come up with a blended solution that can combine standardization and localization. Coca-Cola has pursued many strategies of localization and also standardization, yet none of them were successful. However, the midpoint strategy of my predecessor Neville Isdell was most successful. Our company needs to develop a marketing mix in which each channel of distribution is taking local and standard strategies into account. In order to target the right market, our employees must have flexibility, but also central coordination, to develop standards of promotion, product and price. I recommend using a blended strategy based on the reasons I will mention now in the SWOT analysis. The strength of a blended strategy includes increased recognition that our company gains when acting globally and personal relationships maintained by acting locally. Global themes like “happiness” and “enjoyment” are consistent across countries and therefore, can be used in a successful global marketing campaign. Because those marketing themes are globally consistent, our products can provide a bridge between different cultures. Furthermore, localizing our strategy can help in satisfying specific customer...
Words: 704 - Pages: 3
...its many strengths. Conversely there are several weaknesses which need to be addressed to bring the company to global market it desires. Other problems: * Heinekens brand image is not being consistently projected as “the world’s leading premium beer” in Brands communication. * Regional managers often developed their own commercials and justified their decision to do unique competitive conditions. Standardization was not exist , but required. * Perceived premium brand image in some markets, which resulted in decline of sales volume across all the market. Quantitative Analysis: * Heinekens perceived differently from market to market and from country to country .Each country was in a separate stage of market evolution (Exhibit 2) For example , in in the United States and Asia as a beer for only special occasions. In Latin America the brand is seen as just one of a many of undifferentiated European imports. * Heinekens need to build brand image in Africa, and to enrich and increase market share in Eastern Europe, South America and Japan. (Exhibit 1) * Brand loyalty needs to be build on, in United Kingdom & Spain to keep people from switching brands. And they also need some heavy ads (Exhibit 3) * To reflect beer taste and quality, Heinekens have to make good taste experience for the customers, balanced taste and focus more in the advertisement and the packaging . (Exhibit 6) Recommendations: * New global branding strategy should be...
Words: 376 - Pages: 2
...marketing mix strategies: standardization and Adaptation 2 Second part: Internationalization process theory 3 Conclusion 3 Introduction Many companies operation internationally today with elimination of many trade barrier in many countries in the world. These firms need to come up with international marketing strategies that will enable them complete favourably in these new markets. International marketing strategies mean that international subsidiaries act and formulate marketing ways independently as if they were local companies with minimal coordination or supervision from the parent company. This aims at meeting the local consumer needs in the market but at the same time not lowering the international standards of a brand. This paper discusses the two main marketing strategies that international firms like Coca cola use. These are standardization and adaptation. In standardization, a multinational company uses a uniform approach to marketing her brand so as to minimize costs and promote a global corporate image. On the other hand adaptation means that a firm uses unique marketing dimension that are adaptable to fit each of her local markets (Mathew & Zander, 2007).This paper looks at how practical a brand like Coca cola has used adaptation and standardization in international markets. Part 1: international marketing mix strategies: standardization and Adaptation It is important to note that the two market mix strategies can be used...
Words: 2283 - Pages: 10
...As learned through the textbook and other references for this course the management theories and practices utilized within an organization can help or hinder the success of said organization. Through this paper I will review the strengths and weaknesses of American Healthcare Corporation’s (AHC) IT&S Southern Division as well as critique their primary leader. AHC’s IT&S Southern Division AHC is a large for-profit national healthcare provider network owning and managing over 150 hospitals, 40 surgery centers and hundreds of physician practices across the continental United States. AHC’s primary goal is to provide industry-leading healthcare in the most efficient and cost effective manner with the highest level of patient outcomes and satisfaction. AHC’s history spans over 40 years and was founded by doctors who wanted a better care path for their patients. AHC is comprised of several divisions broken down regionally across the nation and has also broken down key “shared services” departments to service and support the divisions. My analysis will focus on the IT&S Southern Division of AHC. IT&S Southern Division is responsible for the technical support and services of 24 hospitals, 10 surgery centers and 110 physician practices across Alabama, Florida, Georgia and South Carolina. The services provided span the information technology gamut including infrastructure, clinical applications support, physician support, project management and a 24 hour help desk. To enable the...
Words: 4500 - Pages: 18
...BACKGROUND INFORMATION IKEA is an internationally known home furnishing retailer. It has grown rapidly since it was founded in 1943. Today it is the world's largest furniture retailer, recognized for its Scandinavian style. The name IKEA comes from the first letters of IKEA’s founder Ingvar Kamprad and the names of the farm and village where he grew up Elmtaryd Agunnaryd. Although the soil was thin and poor in Ingvar’s village, people had the reputation for working hard making the most out of limited resources. Ingvar applied the lessons learned from his village to the home furnishing market. Nowadays, IKEA’s vision is “to create a better everyday life for the many people by offering a wide-range of well designed, functional home furnishing products at low prices so as many people as possible will be able to afford them”. IKEA had a turnover of 26 billion Euros in 2011 and is present in 35 countries with more than 300 stores. PROBLEM DEFINITION IKEA had faced only successes when expanded from Swedish market in other European countries. The first attempt was in 1973 in Switzerland, followed by Germany in 1974. Since then it expanded across much of Europe with very good results. The issue raised in this case is how a giant like IKEA with a success story all over Europe tries to enter vast markets like the one in USA. So, the problem is how to sustain the corporate culture and brand identity together with the existing cost structure when entering new big markets with the...
Words: 2482 - Pages: 10
