A Real Increase in Profitability?

The table below highlights a firm that has dramatically increased its profitability in a few years. But they have focused on a short-term, not long-term, basis and you need to determine what impact this may have.

 

ACTIVITY/TASK

Year 0 Year 1 Year 2 Year 3
Sales 20m 19.50m 18.6m 16m
Costs 5m 4.75m 4.6m 4m
Operating profit 15m 14.75m
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Are these good growth results?

The following food retailer has experienced significant top-level growth over the past few years. But underpinning their results is a significant increase in franchised stores/outlets, so are the results as good as they appear?

 

ACTIVITY/TASK

Here are some top-level financial figures for a food retailer growing primarily through a franchise system:

Year 1

Year 2

Year 3

Year 4

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Going Glocal

When Proctor & Gamble entered China, around 25 years ago, they adopted a glocal strategy, whereas their major competitors adopted a multinational strategy. This approach has proven to be quite successful in the long-term, but was this the best approach?

 

ACTIVITY/TASK

Procter & Gamble is one of the largest businesses in America. Their major brands include: Gillette, Duracell, Olay, Oral-B, … See the full activity...

International Strategic Alliances

In recent years, a number of Australian universities have expanded into international markets (particularly in South-East Asia), usually utilizing a strategic alliance with an existing local college. But strategic alliances are designed to provide mutual benefits, is this the case here?

 

ACTIVITY/TASK

Australian universities are faced with a mature education market in Australia. While there are changes in preferences for … See the full activity...

Best International Market Entry Option

After significant success in the local market, the company is looking to market to the more affluent markets in Asia markets. But the question is how they should do this? Which option would you recommend from the list below?

 

ACTIVITY/TASK

“Full of Fun” fruit juices are a novel range of drinks primarily targeted at children aged 4 to 12 years … See the full activity...

Should we expand internationally?

A chain of well-known surf wear stores is considering expanding to international markets, but they are unsure whether this is a good idea for their business – can you help them decide?

 

ACTIVITY/TASK

Britney:

Thanks everyone for coming to the meeting. As you know, the company has been considering international expansion and I would just like to gather your … See the full activity...

Impact on Positioning

This activity outlines two situations in regards to the potential impact on the firm’s positioning due to their distribution channel selection. Your task in this activity is to answer the assessment questions at the end regarding each situation.

 

ACTIVITY/TASK

Increasing Sales of Jeans

The manufacturer of a well-known brand of jeans has determined that its selective distribution strategy is limiting … See the full activity...

A Pricing Strategy Success?

In the following case study, your task is to determine whether the firm should continue with its current strategy (which is mainly priced-based) or does it need to adopt a new approach?

 

ACTIVITY/TASK

Credit unions are like small banks that usually only offer services to individual customers (that is, non-businesses). What is unusual about many of them is that they … See the full activity...

Which Brand Strategy?

The following is an excerpt from a manager’s meeting for firm that manufactures pretzels (a snack food that is considered to be a healthy alternative to chips/crisps – quite popular in the USA, but not so much in other countries). In the discussion they highlight the four broad brand strategy choices. Assuming that you were part of this management team, See the full activity...

Aligning New Products to Strategy

Your task in this activity is to generate some potential new product ideas/concepts that would logically fit with McDonald’s overall strategy. As we know, new products should not be introduced in isolation, or just to take advantage of a market opportunity. New products should be introduced to help implement and deliver the firm’s overall strategy.

 

ACTIVITY/TASK

The following assumed example … See the full activity...