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Flare Fragrances Computer Inc

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Submitted By seeratjohar
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Flare Fragrances Company Inc

Definition of Success:

In order for MEC to change the negative impression of their private-label and increase market share to 3 percent and profit by approximately $92 million (Exhibit 7) within 5 years, MEC will need to address the following: 1. How to educate and communicate to the consumers regarding production and design so that market share increases by 0.36 percent per year for the next 5 years. 2. How to decrease cost of sales by 16.7 percent of the private label merchandise so that the gross margin increases to 50 percent by 2014. 3. How to enhance the competitive advantage of green initiative by increasing sales by approximately $619,325(in thousands) to put toward the environmental fund and patronage return in order to contribute to a market share increase of 0.36 percent per year for the next 5 years.
Decision Criteria * Operational/Ethical- Support the creation and stewardship of parks and recreation opportunities in Canada, to foster a change toward environmental, social and economic sustainability in the marketplace by maintaining the 1% contribution for the planet. * Marketing- Change the perception customers have on how MEC performs its business, shown through an increase in sales and/or the number of members to contribute to the required 1.8 percent increase in market share. * Financial/ Marketing- Increase market share through increasing sales by 1.8 percent over the next 5 years. * Financial- Decrease sales costs 16.7% by 2014 and also increase gross margin by 50% * Operational- Differentiate products services from competitors in order to gain a competitive advantage in the Sporting Goods market.
Situational Analysis
Mountain Equipment Co-op is operating in a large market, of selling self-propelled sporting goods. As there are major retailers, such as Canadian Tire and...

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