...The Goodyear Tire & Rubber Company (Goodyear) was founded in 1898 by Frank Seiberling, with a $3500 down payment. According to Goodyear’s website, they began production with just 13 employees, starting with a line of carriage tires, horseshoe pads, poker chips and bicycle tires. The first month of sales generated just over $8,000 – and nearly 120 years later, their sales exceed $20 billion. To accomplish this growth and success, Goodyear has continued to evaluate their products and services; continuously focused on driving out inefficiencies; reduced unnecessary overhead expenses; and operated on a core set of values to remain an effective organization. Goodyear’s Mission is: “Constant improvement in our products and services to exceed the expectations of our customers and people.” Goodyear’s vision is: “Become a market-focused tire company providing superior products and services to end-users and to our channel partners, leading to superior returns for our shareholders.” (The Goodyear Tire & Rubber Company website). The Goodyear brand,brand and heritage Wingfoot Symbol is recognized in nearly every corner of earth. The wingfootWingfoot symbol was created by the original founder Frank Seiberling, who drew the idea from a statue in his home of the Greek God, Hermes. Frank felt the god portrayed the characteristics and values that were representative of Goodyear. The symbol also led to one of the biggest initiatives in Goodyear history – the wingfootWingfoot express. ...
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...Goodyear Tire and Rubber Company Goodyear is one of the world's leading tire companies. This strategic plan for Goodyear will focus on their passenger vehicle. The plan will focus on ways to strengthen the internal and external methods to ensure that products remain at the best they can be for consumers. In doing this, we will concentrate on pricing, product placement, positioning, and most importantly promotion. Promotion has continued to drive the business and this plan will focus on it continuing to do so for years to come. Company Background & Milestones: It all began in 1898. Goodyear’s founder, Frank A. Seiberling, purchased the company’s first plant with a $3,500 down payment. With just 13 employees, Goodyear production began with a product line of bicycle and carriage tires, and horseshoe pads. Since the first bicycle tire in 1898, Goodyear pedaled its way toward becoming the world’s largest tire company, a title it earned in 1916 when it adopted the slogan "More people ride on Goodyear tires than on any other kind," becoming the world’s largest rubber company in 1926. Today, Goodyear measures sales of nearly $20 billion. Goodyear is currently the No. 1 tiremaker in North America and Latin America. Goodyear is also Europe's second largest tiremaker. In 2011, Goodyear posted net sales of $22.8 billion, up 21% over 2010. Net income available to common shareholders was $321 million in 2011. Goodyear operates 53 plants in 22 countries. Together with its subsidiaries...
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...Goodyear Financial Analysis Writing Assignment: Financial Analysis Assume you are a savvy financial analyst researching companies in which to invest. Select a U.S. publically-traded company you think might be a good investment and perform a financial analysis. FIN 534: Financial Management - Quarter (Winter 2013) Professor: March 12, 2013 Goodyear Financial Analysis Company Overview The Goodyear Tire & Rubber Company a leading manufacturer of tires is one of the best in the world and one of the most recognizable brand names in the world (Edgar). Goodyear has operations in most regions of the world with 52 manufacturing facilities in 22 countries, including the United States (Edgar). Goodyear regional tire businessesconsists of the following four segments: North American Tire; Europe, Middle East and Africa Tire; Latin American Tire; and Asia Pacific Tire (Edgar). Despite the conditions in 2012 Goodyear has done fairly well in the continued weak industry conditions (Edgar). The economic recovery in the developed markets and the uncertainty surrounding debt and other fiscal policy issues in Europe and the U. S. and along with continued high levels of unemployment, all have contributed to a negative impact on overall economic conditions and customer and consumer confidence. Goodyear tire unit shipments in 2012 only decreased 9.2% compared to 2011, primarily as a result of continued weakness in Europe (Edgar). In addition...
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...Case Analysis Goodyear Tire and Rubber Company Submitted by: Rick Fletcher MB545 Marketing Management City University, Renton MBA 2000 Program Fall Quarter, 1999 Introduction The Goodyear Tire and Rubber Company is currently the #1 tire maker in the world[1]. The 101 year-old company has maintained that position through most of the company's history. However, in the early 1990's Goodyear slipped to #3 as France's Michelin and Japan's Bridgestone found better ways to get their products to consumers. To regain their #1 status, Goodyear was forced to re-think their century-old practice of marketing their product exclusively through its dealer network. Problem Definition Goodyear is facing tough competition from tire companies that focus their attention on the replacement tire market rather than the new car market. Also, their competitors do not rely solely on dealer networks to distribute their product. To respond to these challenges, Goodyear decided to focus on the replacement tire market and to sell tires through Sears, Wal-Mart, Discount Tire, and other discount stores in addition to their traditional franchise stores. The decision to sell tires through discount stores created some problems for Goodyear: • Allowing tire franchises and multibrand discount stores to sell Goodyear tires upset Goodyear dealers because it drastically increased competition. • Multibrand outlets may lure customers...
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...Finance Argosy University Assignment M8A1 This research paper is focus on Goodyear Tire and Rubber Company (Goodyear). The objective of this research paper is to determine if Goodyear should expand to Vietnam as a Foreign Direct Investment (FDI) or not. The research will focus on these areas: 1) Goodyear Financial 2) History of Goodyear 3) Principal of Business 4) The Country Vietnam a. History b. Economy d. Trade and Balance of Payments g. Intellectual property rights h. Work forces i. Currency exchange rate 5) Conclusion Goodyear is a US based company, which is traded on the New York Stock Exchange (symbol GT). They have more than 20,000 investors and employ about 72,000 people around the world. They are one of the world’s leading tire companies and second largest tire manufacturer in Europe behind Michelin. They have 55 plants in 22 countries and operate in most regions of the world. Goodyear Tire and Rubber Company was founded by Frank A. Seiberling in 1898. During the early stages of the company, rubber and cotton were the lifeblood of the organization. The wingfoot trademark of Goodyear was not known to the public until it was first advertised in 1901. In 1905, four years after Goodyear first advertised, they emerged into a tire manufacturer leader. In 1910, Goodyear became a multi-national company when it acquired foreign plant in Bowmanville, Ontario, Canada...
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...BACKGROUND AND PROBLEM DEFINITION Goodyear is the second largest producer of tires in the world. Sears made a proposal to carry one of the company’s popular brands of tires, the Eagle brand. Goodyear declined the proposal in 1989 but due to decline in market share and change in management, the company is giving the proposal a second thought. The company needs to decide whether to accept the proposal and have the Eagle brand sold in Sears or decline the offer and remain the status quo and have the tires sold only through company-owned service centers and franchised dealers. MARKET AND INDUSTRY ANALYSIS The tire industry is global and the tires produced in 1991 were about 850 million. Three largest tire manufacturers account for 60 percent of all tires sold worldwide. They are Group Michelin, Goodyear, and Bridgestone Corporation. The industry has two end-use market; the original equipment tire market (around 25 to 30 percent) and the replacement tire market (around 70 to 75 percent). Major tire manufacturers build their brand name with strong wholesale and retail dealer relationships. Goodyear’s sales in replacement tires is directly affected by the average mileage driven per vehicle. The more people drive, the better the sales of replacement tires. Consumers are very price sensitive and most likely do not know much about tires. The buyers usually take recommendations from the dealer and are not loyal to a brand. Adding retail outlets is giving Goodyear a chance to increase their...
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...Study: Goodyear Tire Coree Cox MKTG 4354 4/9/15 The Problem Due to the growth of warehouse membership clubs and discount tire retail chains, the Goodyear brand has recorded a 3.2% decline in their market share for passenger car replacement tires in the U.S., as well as, a significant drop in their repurchased tire sales. The Answer Goodyear needs to rethink and restructure their distribution policy by creating a joint venture with the mass merchandiser, Sears. Goodyear should only consider including their Eagle brand in the new distribution arrangement with Sears; this also means that Goodyear should continue offering a wide variety of exclusive Goodyear brands in their own dealerships. Lastly, Goodyear should continue widening its promotional base into the European marketplace. The Rationale An estimated 2 million worn out Goodyear tires were replaced annually at 850 Sears Auto Centers across the United States; by creating a joint venture with Sears, Goodyear could address this issue. Because Goodyear market share is shrinking, having your brand in a mass merchandiser like Sears would help reverse this effect. By only stocking one of their brands in Sears, Goodyear could mitigate the risk of cannibalization with their own franchises. Goodyear is third in European market share, so by expanding their promotional base into popular European sporting events, they could compete more effectively with Michelin Group and Pirelli. Situational Analysis Goodyear is the...
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...Facts: Lilly Ledbetter worked for Goodyear Tire and Rubber Company’s in Gadsden, Alabama for nineteen years. For most years, she worked as an area manager, which was one, held primarily by men. In the beginning, Ledbetter’s salary stayed similar with the men whom performed similar work. Throughout time, her pay was less than the males pay whom held equal or lower seniority area manager positions. During 1997, Ledbetter’s salary was approximately fifteen percent lower than the lowest paid male Area Manager and about forty percent lower than the highest paid male Area Manager. Ledbetter was subjected to end of year evaluations of their performance performed by their supervisors’. The supervisor evaluated the salaried employee’s performance, ranked the performance against that of other salaried employees, and then recommended a salary increase within a range established by Goodyear guidelines. Having a good, evaluation resulted in a pay increase. Ledbetter was ranked between 1992 and 1997 near the bottom of the other Area Managers. She was awarded either a modest raise or no raise each year. In November 1998, Ledbetter filed a Questionnaire under Title VII of the Civil Rights Act of 1964 with the Equal Employment Opportunity Commission. A formal charge of discrimination claiming, “She had received a discriminatory low salary as an Area Manager because of her sex.” Issue: Can a plaintiff bring an action under Title VII of the Civil Rights Act of 1964 claiming illegal pay discrimination...
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...MEMORANDUM The Goodyear Tire & Rubber Co 200 Innovation Way Akron, Ohio , 44316-0001 phone: (330) 796-2121 Fax: (330) 796-2222 Date: August 05, 2013 To: Mr. Zilverstein, Head of Business Development From: Noam Hadass, Senior Analyst Subject: Analysis - Goodyear Tire & Rubber Co. Dear Mr. Zilverstein , please find below as you requested: * SWOT analysis on the company * an issue that we believe will affect the company in the future * A visual for Goodyear’s revenue in the years 2010-2012. SWOT ANALYSIS Strength: * Loyal customers: When given a choice, customers are loyal to Goodyear Tires. Instead of targeting all customers, Goodyear Tires can invest most of its resources on new customers and only a small portion on the preservation of existing ones. Weakness: * 19th largest air polluter in the U.S: the manufacturing process of Goodyear tire is ineffective regarding the amount of pollution it creates. And as the world is advancing towards “Green” manufacturing in all sectors, being a major polluter can affect the positive corporate image Goodyear are trying to create. Also this makes the company sensitive to regulation towards pollution. Opportunity: * Penetrate new markets in China and India: right to this day Goodyear has a very little market share in these developing countries. With about a third of the world’s population, this market represents an opportunity for large growth...
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...Imagine a woman over 60 years old who had to carry around huge, bulky tires and performed numerous other tiresome tasks, but still did not get the pay she deserved. In an infamous court case known as the Ledbetter v. Goodyear case, a 77-year-old woman named Lilly Ledbetter sued Goodyear Tire and Rubber Company for paying her below the minimum wage for over 19 years. When Ledbetter first found out about this income discrimination, she was very stunned and said in an interview, “... I thought because Goodyear was a federal contractor they would be following the law. But that turned out not to be the case, and I couldn't find out.” Lilly Ledbetter was in a puzzled state after she found out that the company she worked for paid her below the minimum...
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...THE AQUATRED LAUNCH INTRODUCTION TO THE CASE Goodyear is engaged in the development, manufacture, distribution and sale of tires and related products and services worldwide. The company primarily operates in the US. It is headquartered in Akron, Ohio and employs about 1,05,000 people. Although Goodyear was the leader in U.S. passenger tire market with 15% market share, the company still had to be very careful because the competition was intense. There were so many players in the industry, both branded and private label. Although, each of them had less than 10% of market share, the second in rank, Michelin, was growing very fast in both replacement and OEM market. Also, the private label had become the biggest threat for all branded tires since many branded tire owners intended to replace their tires with private label. Move Towards Value-Based Pricing Under Gaultµs direction, Goodyear began the process of transforming itself from a manufacturing-based company to a customer value-based company. One of Goodyearµs earliest successes with executing customer value-based pricing came with the Introduction of the Aquatred tire. The first step was to conduct consumer research to identify and prioritize the attributes that would motivate consumers to purchase a new type of replacement tire. The research revealed that consumers wanted a tire that was all-season, had a good ride characteristic, a low noise level, and provided good mileage. But, Goodyearµs marketing team discovered...
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...Lilly Ledbetter was a long-time manager of a Goodyear Tire Company in Gadsden, Alabama from 1979 till 1998. Around the time she was going to retire she discovered that she was making much less than her male counterparts, almost 40% less over her 20 years there. She sued Goodyear and won being rewarded $3,514,417 from the jury, but due to laws restricting how much money a jury could reward, the judge reduced the winnings to $360,000. Goodyear appealed the case and brought it to the 11th Circuit of Appeals which ruled in Goodyear’s favor. They believed that Ledbetter missed the 180 day window to appeal for discretionary pay. The case was brought all the way to the Supreme Court in the court case Ledbetter v Goodyear Tire & Rubber Co. (2007),...
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...getting your car serviced at a Goodyear establishment, chosen based on the service that was purchased. Standardized small town service. Business with friends mentality. Example: Handwritten thank you notes, air freshners, a quick vacuum or car wash, a hand scraper or new wiper blades, a multi-point inspection, any other small token of appreciation. Path: Being home these past few days has made me think about why I go back to certain places for a cup of coffee, a haircut or a burger. Every time the answer was atleast partially due to the small touches that aren’t present anywhere else. Fresh cream from the dairy, a hot towel while you wait, or the cook coming out with something he had been meaning to try. I can’t tell you how many times someone has suggested taking my car to a certain dealership because they wash them after performing a service. Little gestures like that create a memory and turn the transaction into something a little more than an exchange of goods/services for money. It’s that little extra that puts those establishments at the top of people’s lists. - - - - - Issue: Consumers have to remember what services they have had performed, when, which comes next in order to keep their vehicles running at optimal levels. This can be very frustrating or daunting for the average consumer. Destination: Family “profile” of vehicles that is kept in a Goodyear data base and can be accessed from any authorized Goodyear entity. Updated by Goodyear anytime a...
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...Bad Year in Goodyear The foundation of the Arizona Department of Corrections correctional model is the designation of Arizona State Prison Complexes by security level and prison population. The Arizona State Prison Complex at Perryville, located in Goodyear, Arizona, is one of the ten facilities operated by the Arizona Department of Corrections. Once a men's prison, it was converted in the year 2000 to house women offenders. A score classification system is utilized to assess an inmate's custody level within Perryville and also the level of threat that they may pose to the community, with scores ranging from 1 to 5 (5 being the most serious risk). ASPC-Perryville is a minimum, medium, maximum, and close custody institution, with Lumley Unit housing all female Death Row inmates; maximum security inmates; closed custody inmates; the Women's Treatment Unit (referred to as WTU, it is a substance abuse program that is only offered to a few select women who meet the strict criteria); and Reception and Administration. Referred to as R & A, this is the yard where all inmates are initially housed for anywhere from one to ninety days, and are locked down 23 hours a day. They are then assessed by a counselor (called a CO III, or Correctional Officer III) and classified, and given their release date(s), the first being the inmate's TR. Temporary Release can be earned by participating and completing programs such as SB1291, offered only to those convicted of a drug crime. The second...
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...The case detailing Nucor was interesting to me because they kept an extremely small corporate staff consisting of only 25 employees. This allowed them to keep a flat structure, keep less of a hierarchy, and decentralized their operations in general. Strengths Nucor’s main strength was its good relations with outside companies. This allowed them to keep operations small but at the same time fulfilled many of their needs like research and development, advertising, and company relations. Outsourcing these core components allowed Nucor to gain the experience from each of these companies while keeping their costs down. Keeping the company small also allowed them to offer superior bonuses to employees based on production. Incentives were derived from target profits for each of its 22 divisions. With a generous bonus system, this gave them an incentive to produce, and since the organizational structure was decentralized, the employees just needed to worry about hitting their specific profit level, and not as much about bureaucracy, which allowed them more freedom to perform well at their jobs. Weaknesses Nucor’s family environment for its employees was also its greatest weakness. Many employees knew that they would not lay off any employees which decreased employee motivation. This made cutting costs for Nucor extremely difficult because they still had to pay all their employees base salaries, even if they weren’t performing. In September of 2008, when the financial crisis...
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