...Global Strategic Management A Case Study of the TJX Kestrel L. Ambrose American Public University System Abstract TJX Companies, Inc. is known as the world’s leading off-priced retailer of apparel and home fashions. With its steadily growing brand portfolio, the company aims to offer consumers better value proposition than department stores. Keywords: global strategic management, corporate governance, off-price retail, Global Strategic Management: A Case Study of The TJX Companies, Inc. Company Overview Based in Framingham, Massachusetts, The TJX Companies, Inc. (TJX or “the company”) is the leading retailer of off-priced fashion and home goods merchandise in the United States and worldwide. The company’s brand portfolio includes T.J. Maxx, Marshalls, HomeGoods and the Sierra Trading Post in the U.S.; Winners, HomeSense and Marshalls in Canada; and T.K. Maxx and HomeSense in Europe. These stores specialize in brand name apparel, footwear, accessories and home décor merchandise at discount prices, usually 20- 60% below department and specialty store prices. In 2013, TJX ranked 115th in the Fortune 500 rankings, jumping 10 spots from the previous year. This ranking makes the company number one in the specialty apparel retail industry on the Fortune 500 list, followed by Gap, L Brands, and Ross [ (Cable News Network, 2014) ]. Market and Products TJX operates in the niche off-price segment of the retail industry. The company operates under four major retail...
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...intelligence > Top ten global pharma Top ten global pharma Dr Vishal Agrawal, project manager, and Sunehli Jamwal, analyst, from GlobalData, highlight the top ten pharmaceutical companies by 2011 revenue. Pfizer 1 Johnson & Johnson 2 US pharmaceutical giant Pfizer maintained its top position in 2011 with stipulated revenue of $67.4 billion, up by 1% compared with $67.1 billion in 2010. The company’s new marketing strategy, coupled with focused organisational, financial and R&D restructuring efforts, compensated for the losses caused by Lipitor’s patent expiry. The approval of Xalkori for lung cancer, Inlyta and pneumococcal vaccine Prevnar 13 have proved to be a real lifeline for Pfizer. Moving ahead, the steady progress of the late-stage pipeline (with 22 projects in phase III and 11 under registration) will be a primary source of confidence for the company. The key strategy of the group is now to advance experimental drugs towards approval: these include Bosutinib, Tofacitinib, experimental clot-preventing drug Eliquis and its many pipeline drugs to make up for the inevitable decline in Lipitor revenue. With a view to reducing costs, Pfizer’s huge research budget has been cut by 12%. In 2012, Pfizer will focus on small to mid-sized deals and effective research partnerships to strengthen its portfolio in all therapeutic segments. Johnson & Johnson (J&J) reported 2011 revenues of $65 billion, a 5.6% increase over 2010. In 2011, the company generated 40% of its...
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...Analysis of Global Leadership Practices for The Coca-Cola Company Robert Walbrun 11/25/2014 City University - Seattle Abstract This paper will discuss The Coca-Cola Company, a company that does business with international stakeholders. It will analyze the leadership practices of working across cultures and outline what the organization does well in this regard and what opportunities exist for improvement. In conclusion, this paper will recommend actions that should be taken to make improvements in relations with international stakeholders. Analysis of Global Leadership Practices for The Coca-Cola Company The Coca-Cola Company spans across over 200 countries with more than 3500 products worldwide (“Coca-Cola at a glance”, n.d.). The company has been adaptive to the changing world and has adjusted its leadership structure to meet current business needs. Partnerships around the world have allowed it to adjust its manufacturing and distribution approach to meet the needs of each independent market. The company is cognizant of its emerging markets and makes investments that secure the future of those markets. While Coke is an extremely strong and recognizable brand around the world it has also exposed itself to controversial situations as it has worked to establish itself in new global markets. Unique challenges inhibit the company’s growth in some markets but recognition of collateral impact to specific business decisions and appropriate adjustments will...
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...Running head: Global Steel Company Global Steel Company Christopher Vera Park University 2nd Assignment Global Steel Company Global Steel is a steel company involved in the production and sale of steel, either on a semi-finished or value-added basis. Global Steel Company represented in this methodology represents one of a diverse group of issuers differentiated by scale, market position and business model. The industry is further differentiated by regional characteristics which can influence market conditions and by the dramatic growth seen in emerging markets such as China and India. These distinguishing characteristics in combination with whether exposure is to emerging or developed country market risk can contribute to greater rating disparity than quantitative measurements might imply. The market for steel producers in the United States is different from other markets as the three leading steel producers, ArcelorMittal, ThyssenKrupp and Tata (Corus) enjoy substantial market share for some important product grades in a market place with somewhat higher consolidation than elsewhere. In addition this producer is also the major U.S. steel distribution company. Global Steel needs to implement the following: 1. Invest in massive advertising 2. Create a marketing plan 3. Promote their product to new markets 4. Find a wider range of potential customers 5. Offer discounts on big orders to offset the higher price 6. Improve...
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...implications of the growing role of private military companies (PMCs) for governing global politics Introduction The focus of the investigation, the findings of which are presented in this essay, was on the implications for the governance of global politics of the growing role of private military companies (PMCs). PMCs are different from traditional military contractors, which more often than not are referred to as defense contractors. Traditional military (or defense) contractors manufacture the weapons of war, provide the supplies that are required by armed forces, or perform other services that do not directly involve their personnel in combatant roles. Private military companies, in contrast to traditional military contractors provide both direct military services and security services. PMC personnel are directly involved in combatant roles when the contract provides for the delivery of military capacities. PMC personnel may be directly involved in combatant roles when the contract provides for the delivery of security services. PMC personnel providing security services must be prepared to engage in combatant roles; however, much of their duties will be as guards to prevent breeches of security. In the investigation, the results of which are presented in this study, the implications of the growing role of PMCs on the governance of global politics considers the effects of PMCs in both their military roles and their security roles. While the direct combatant roles...
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...Global Strategy for Toyota Company Name Course Instructor Date Introduction Toyota Motor Corporation is a multinational motor manufacturing company based in Toyota, Aichi, Japan. It consists of over 333,498 employees as of March 31st 2013. It was ranked the largest automobile manufacturer in the world in 2012 based on production, as it reported the production of its two hundredth millionth vehicle in the same year. It is also ranked as the thirteenth largest company based on revenue [ (Toyota Global, 2013) ]. According to the company’s consolidated financial statements, Toyota has 540 consolidated subsidiaries and 226 affiliates. The financial reports of the company for the fiscal year ending on March 31st 2013 revealed revenues totaling 216.7 billion US dollars, 13 billion operating income and a net income of 9.47 billion. The company has remained dominant and continued growing for years due to various strategies that it employs worldwide. The corporation remains relevant by ensuring that it is up to date with contemporary issues of concern, therefore addressing important responsibilities and issues. In today’s world of business, globalization is a vital aspect and more so in an international corporation such as Toyota motors. The company must therefore be able to deal with the consequences of globalization such as increasing competition. Toyota Motor Corporation has applied various theoretical frameworks in its strategies to ensure it remains relevant and achieves...
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...754 • Case 24 • ABC Chemical Company Goes Global The ongoing economic recession in Japan will continue to erode consumer purchasing power and confidence; luxury goods will suffer as consumers move toward cheaper products. This is already becoming evident: consumption of cognac and premium whisky is declining in Japan. Since TWO DOGS was launched in 1998, there has been massive growth in the sales volume of cheaper products, such as ‘‘Can Chu-Hi’’ and ‘‘Hyoketsu Chu-Hi’’. These locally made Japanese brands are, in convenience stores, almost half the price of fully imported TWO DOGS. DISCUSSION QUESTIONS 1. Should TWO DOGS maintain its premium price and thus risk losing volume growth to cheaper products during the recession? 2. What effect would lowering its price have on its brand positioning? 3. Would lowering its price require TWO DOGS to change to a licensing strategy? If so, should local production be in Japan? Or in nearby Asian countries with lower manufacturing costs, such as China or Thailand? 4. What other options does TWO DOGS have? Could the company change to a multi-brand strategy by introducing a new brand targeting the low-end segment? C ASE 24 ABC CHEMICAL COMPANY GOES GLOBAL Driven by competitive pressures, and the attractiveness of the industry’s fastest growing market in the world, a U.S.-based chemical manufacturer, ABC Chemical Company (name changed to maintain confidentiality) considered expansion into Asia, specifically, China. William Smith is...
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...Module 4 - Social and Cultural Influences In order to expand into another country, an understanding of cultural difference that can affect the business needs to be addressed. This is called cross-cultural literacy. To gain a better understanding of Australia, a study was conducted of population, social and cultural aspects. Demographic Trends In 1945, the population of Australia was seven million and was predominantly Anglo Celtic. Today, the population is twenty-one million with 43% either being born overseas or at least one parent being born overseas. In 2009, the birth rate was 12.47 births per 1,000 persons in the population. The literacy rate is 99.0%. Cultural Analysis – Values, Norms, Social Structure Australia has a blend of traditions and influences which define their values and norms. “..Everyone is expected to uphold the principles and shared values that support Australia’s way of life. These include: respect for equal worth, dignity and freedom of the individual; freedom of speech and association; freedom of religion and a secular government; support for parliamentary democracy and the rule of law; equality under the law; equality of men and women; equality of opportunity; peacefulness; a spirit of egalitarianism that embraces tolerance, mutual respect, and compassion for those in need. Australia also holds firmly to the belief that no one should be disadvantaged on the basis of their country of birth, cultural heritage, language, gender or religious belief...
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...HAIER, TAKING A CHINESE COMPANY GLOBAL 1. SUMMARY Haier (“the Company”) was China’s biggest white-goods producer and supplier in 1990s. In 1984, there was nearly 300 local producers in China market, most of which were producing poor quality goods. However, customers were willing to pay more for higher-quality products and reliable service. This need created an advantage for differentiation. In Chinese market, demand was high. Haier being able to read customer need properly, focused on Product Quality, After-Sale Services and Brand Building. While there was oversupply in the market, with product differentiation Haier was able to raise its prices. Their target was to be a first-class brand. In early 1990s, while the demand was exceeding the supply, they decided to set up a large scale production. In 1991, they focused on Diversification on product range. They acquired an AC and a Freezer company, which were performing poor and turned around these companies into profitability quite soon with the right restructuring and strategy. There was a government pressure on Haier to take over poor performing firms ( i.e. in 1993, acquisition of Red Star). In 1992 the Company needed additional capital to invest in land and construction, but did not get subsidied due to government restrictions.As an alternative solution the Company undertook an IPO and went public with its 43.7% refrigerators division on Shangai Stock ExChange in 1993. In 1997, the Company added TV and telecommunication...
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...In today’s society we depend on companies worldwide to provide goods and services to satisfy our needs and wants. These companies worldwide are called multination company which is defined as a company that has one head office but has operations in more than one country. These operations deliver goods and services to many different areas. “Although this can lead to great sales and provide the services around the world, this can lead to what is called global stratification” (Ivancevich, J. M., & Baker, J. C. 1970). Global stratification is defined as the inequality amongst countries in the world. The differences in rich and poor countries and the patterns of global stratification are imperialism, world system, culture of poverty and dependency theories. “Each country that is stricken with poverty will be becoming rich as the United States is becoming poor” (Hira, R. 2004). More jobs are being sent overseas, although a company such as Nike has a world headquarters in Washington State, there are many other headquarters in other countries such as; Canada, Austria, Japan, and Mexico. When the company decided to branch off and send jobs elsewhere, this leaves the United States’ workers out of jobs, which then will cause loss of homes, and ability to pay their bills and take care of their families. Having no job means the unemployment rate has skyrocketed in the past several years. The positive effect this has no the United States is that the price of merchandise will be cheaper...
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...| Haier: Taking a Chinese Company Global and Crossing Borders: MTC’s Journey through Africa | 1. Was Haier’s decision to globalize into developed markets early on a good strategy? You need to be able to articulate a clear rationale about the risks and benefits of this model in offering a comprehensive assessment of the route that Haier took. Would this be a good option for other emerging market firms as well? Would you specify any caveats in applying to other firms? * Ans: Haier’s decision to globalize through developed markets was not only bold but also risky. However, on the basis of our analysis we conclude that it was a very good strategy. If the framework of four-tiered market structure discussed in Emerging Giants1 is applied, the option open to Haier to reach global markets was to penetrate through local, glocal markets. However, this would have taken a long time and also would have cost substantial resources. If this strategy is adopted they also would have faced several hurdles and competitors. * * Haier’s strategy to take an external route to reach global market made its path simple. The hurdle in this option was to penetrate the pyramid. However, Haier identified weak structures in the top of the pyramid, global part, and penetrated it successfully. After penetrating it, it started moving downwards to complete the circular path. * * Global Global * * Glocal Glocal Local Local Bottom Bottom ...
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...For the case of “Hair: Taking a Chinese Company Global”, the first takeaway is that in order to enter a foreign market, having licensing agreement and setting up joint ventures are the best things to do in order that the company could successfully imitate the practices. The second takeaway is that quality is not something that could ensure your supreme sustainability in the market. It may enable a company to charge premium price for a period of time, but no one could guarantee if the industry would impose any stringent regulations that could fundamentally weaken one’s competitive advantage like quality. However, Hair establishing a complicated distribution channel could be a wise strategy that successfully impose a tight barrier for foreign entry into its market. The third takeaway is that being the first-mover in localizing its products to cater the foreigner market could help Hair, a Chinese brand suffering from such deeply-rooted bad image of low-quality, succeed in the more-developed countries like the US where lots of giants are already occupying a significant amount of market share. For the case of “Responding to the Wii”, the most important takeaway is the concept of two-sided model and its pricing strategy. First, the presentation makes me realize that there are quite a number of real life examples belonging to the two-sided market like operating system, recruiting sites etc because there is an indirect network effect in which the increase in “consumer” (end-users/job...
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...Performance Apparel Industry, with an analysis on Under Armour, a growing company headquartered in Baltimore, Maryland. The Future of Under Armour is unforeseen but we know that Under Armour wants to be number one in the industry above all competitors. Nike and Adidas will always strive to be the leaders but is our products truly better than theirs? The first section of this report will consist of an overview of the trends in technology, demographics, economics, political/legal and finally social/cultural. Political/Legal There is not too much content that Under Armour must worry about in this section. They just need to stay in the realms of regular business and legally obtain the correct patients so that no other competitors steal valued material. This actually makes their products perform better than other competitors. Politically Under Armour needs to promote good and safe work habits. They do not want a negative view like Nike obtained after they were seen utilizing sweatshops to make a deeper profit in the Industry. Even if a few customers find out they are using bad practices, then it shatters the whole reputation and brand image. Socio-cultural and Global Under Armour and other competitors can and have been using a global image to win the customers over. It is very important that Under Armour utilizes the global image of their quality product, for instance, showing their products on a global scale such as providing gear to the NFL and MLB. People are likely to wear...
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...In this chapter, a number of important questions that companies must resolve before taking the leap to operate outside their home environment. 1. What market opportunities, sourcing advantages, or strategic imperatives provide the motivation for their international expansion? 2. By what means will they expand their overseas presence-through modes such as exports, licensing, joint ventures, wholly-owned subsidiaries, or some other means? 3. How will the management mentalities – their embedded attitudes, assumptions, and beliefs- that they bring to their international ventures affect their chances of success? Operating in an international rather than a domestic arena presents managers with many new opportunities. Having worldwide operations not only gives a company access to new markets and low-cost resources, it also opens up new sources of information and knowledge and broadens the options for strategic moves that the company might make to compete with its domestic and international rivals. However, with all these new opportunities come the challenges of managing strategy, organization, and operations that are innately more complex, diverse, and uncertain. What is multinational enterprise? * Multinational enterprise has substantial direct investment in foreign countries (Not just the trading relationships of an import-export business), and actively manage and regard those operations as integral parts of the company, both strategically and organizationally. (They are...
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...Total Quality Pioneers Paper xxxxxxxx Quality Management and Productivity MGT/449 xxxxxx xxx Introduction People are confronted with scenarios concerning quality nearly every day. The word or notion of quality can be defined a number of ways. Some think quality should be determined by individual standards and expectations, while others believe quality is an ever changing state. Goetsch and Davis systematically broke down the elements of quality and determined that “quality is a dynamic state associated with products, services, people, processes, and environments that meets or exceeds expectations and helps produce superior value (Goetsch and Davis, 2010 p.5).” Whatever ones interpretation of quality might be, the intent of this paper is to more clearly define quality and its elements as well as describe how the quality pioneer's use of the total quality elements made the pioneers successful. Furthermore, this paper will explain why the elements of quality are useful in today’s environment and offer some insight as to what the future of quality might look like. Quality and its Elements Quality is defined with a variety of distinct explanations. Nevertheless, understanding quality is the key. End use consumers that are businesses explain quality unmistakably through the use of standards, specifications, and other measurable features. For instance, an individual in search of a new automobile will make his or her final purchase decision based on the quality...
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