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Case Study

Case Study Metabical

Examine methods for forecasting demand of a new product and estimating profitability. R/ The different forecasting methods can be divided in two categories.
1. Qualitative methods: these types of methods are usually based on the opinion of people, some of these methods are:

Executive committee consensus: develop medium-long forecast by asking a group of knowledgeable executives their opinions with regard to future values of the items being forecasted. Dolphin method: involves a group of experts who eventually develop a consensus; they usually make long range forecasts for future technologies or future sales of a new product.
Sales force composite: sales people are a good source of information with regard to customers’ future intentions to buy the new product.
Customer surveys: by using a customer survey, a company can base its demand forecast on the customers’ purchasing plans.

2. Quantitative methods: These methods forecast demand levels based on analysis of historical time series.
Quantitative methods are used to estimate future demands as a function of past data; appropriate when past data are available. The method is usually applied to short-intermediate range decisions.

Forecasts based on historical data: these methods are probably the simplest ones to deploy and can be accurate over the short term.
Naive methods: these are the most cost-effective and efficient objective forecasting model. For stable time series data, this approach says that the forecast for any period equals the previous period’s actual value. Moving average: An indicator frequently used in technical analysis showing the average value of a security’s price over a set period. Moving averages are generally used to measure momentum and define areas of possible support and resistance.
Exponential smoothing: is a technique that can be applied to time series data, either to produce smoothed data for presentation, or to make forecasts. The time series data themselves are a sequence of observations. The observed phenomenon may be an essentially random process, or it may be an orderly, but noisy, process.

Whereas in the simple moving average the past observations are weighted equally, exponential smoothing assigns exponentially decreasing weights over time.

Trend analysis method: These methods involve determining the trend of consumption based on past consumption and project future consumption by extrapolating this trend.
Decomposition of time series: is a statistical method that deconstructs a time series into notional components.
Associative (causal) forecasts:
Regression analysis: includes a large group of methods that can be used to predict future values of variable using information about other variables.

These methods include both parametric (linear or non-linear) and non-parametric techniques.

Econometric modeling: An economic indicator indicates change in the magnitude of an economic variable. It gives the signal about the direction of change in an economic variable. Some methods for estimating profits are: Absolute Return: The Absolute Return method calculates the cost of the shares or units in a firm, by determining the total cost associated with the open position, divided by the number of shares or units owned.

The total cost is based on the total expenditure associated with buying shares and options (including broker fees and stamp duty), less any income received from dividends or gains or losses associated with selling shares and options. The Absolute return is a very effective way of determining your overall return on a position if you are actively trading an investment as it provides a rolling view of your return. Pooling Method: This method uses pooling to calculate the cost and related return. When shares or units are acquired, the number of shares or units in the pool increases and the amount paid for them is added to the cost of the pool.

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Case Study

Case Study- Culinarian Cookware

1. Describe consumer behavior in the cookware market. How is cookware bought? How is it sold? What are the implications for Culinarian’s marketing strategy? Cookware was bought either by piece or in a boxed set. Below are two graphs about how cookware is bought and sold. How is cookware bought: How is cookware sold: Implications: There is a big potential in mass merchandise outlet, which has not been explored yet.  Enhance cooperative relationships with a department store, because this is a very important sector with a large share in both purchasing and selling. Direct sales don’t have a large share (only 5%), and the percentage that people buy through this channel is almost zero, so we need to consider if direct sales are necessary.  A large share of cookware is sold in 75 local specialty stores (27%), and we need to reduce the sales of this channel.  Target customers should be women from 30-55 with a household income of over $75,000.
2. What are Culinarian’s strengths and weaknesses? Why has the company been successful?
Above all, the company has very clear four strategic priorities. Furthermore, good execution is very important. Strategies play like a guideline, and all marketing and sales activities are launched under this guideline. Then, the company did a good job of preserving its brand image with unparalleled product quality and advanced technology. Building strong relationships with retailers is another factor. The company offers a higher margin to retailers than other competitors, which stimulates the retailer to push the sales. Finally, Culinarian is quite clear about their target customers, who have high-income, so their advertising is very effective that they focus on magazines and newspapers targeted at the high-income audience.

3. Was the 2004 promotion profitable? Calculate the profitability using Brown’s logic and then calculate profitability using the consultant’s model. How would you calculate profitability? My conclusion is the 2004 promotion was profitable.
Using Brown’s logic

Actual units = 184987
Forecast units = 59871
Variable costs = 38.4

Incremental contribution impact = (62. 4-38. 64)*184987-(72-38. 64)* 59871 = 2397995.
Using the consultant’s model.

Actual units = 12938.6
Forecast units = 119504.
Variable costs = 52. 05

Incremental contribution impact = 10. 35*129386-19. 95*119504-99332+39540 = -1104752
My method Conclusion: the promotion is profitable Promotion period March to May Variable cost Both overhead cost and advertising cost should not be included in the variable cost, so my variable cost should be 38. 64-(52. 05*7%)= 35.
I use the consultant’s figure by the computer-generated model, which is 119504 Actual units Actual orders from March to May in 2004, which equals 184987 (47191+89423+48373) (62. 4-35)*184987-(72-35)*119504=646995
4. Should Culinarian run a 2007 price promotion?
If so, what should be the specifics of such a promotion (e. g. , product scope, discount rate, timing, communicate) Culinarian should run a 2007 promotion. First of all, in 2006, Culinarian’s CEO established four strategies for the company. The 2007 price promotion would be a very good implementation of the strategy. Moreover, the 2005 telephone survey shows that unaided brand awareness for Culinarian is 15% with household income under $75000 and 25% with household income over $75000 ( this figure is lower than its competitor Le Gourmand and Robusto). Finally, the cookware market in U. S. had been increasing year on year, so had been Culinarian’s products, so there must be a great potential for sales growth. Details of the promotion Product Scope They should run a promotion on product DX1 and CX1. First, SX1 and PROX1 are for advanced and professional chefs, so they are very high-end with smaller shares of the revenue.
Then, DX1 and CX1 take a lion share of the total revenue. Finally, discount on DX1 and CX1 would not affect the brand image as they are relatively low-end products with low price and technology. Timing They should choose April, May, and June as spring sales and October, November, and December as winter sales. May and June are wedding seasons, while November and December are Christmas time. According to the survey, 55% of the respondents received or purchased cookware as a gift. So I suggest there should be two price promotions in spring and winter.
Communications: Commercial advertisement on cook channels (39% watch television cooking shows and 18% purchase cookware seen on television cooking shows) Direct support to retail stores such as displays and sales staff (30% stated that they would be drawn to stores with attractive displays, and 25% preferred a full- service store) Enhance channel communication with mass merchandise outlet (32% of respondents bought cookware in mass merchandise outlet) Traditional channels, including TV, radio, newspapers and cook magazines. (10% said they might respond to TV, radio, magazine, or newspaper advertising). Discount rate:20%

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Case Study

Case Study James Dyson

JAMES DYSON CASE Introduction You know the feeling when some everyday product lets you down. You wish someone could solve the problem. James Dyson does that. He is a man who likes to make things work better. With his research team he has developed products that have achieved sales of over $10 billion worldwide. In 1978, while vacuuming his home, James Dyson realized his bag vacuum cleaner was constantly losing suction power. He noticed how dust quickly clogged the pores of the bag and blocked the airflow, so that suction dropped rapidly.
He set to work to solve this problem. Five years and 5,127 prototypes later, the world’s first cyclonic bagless vacuum cleaner arrived. James Dyson offered his invention to major manufacturers. One by one they turned him down, apparently not interested in new technology. They seemed determined to continue selling bags, worth $500 million every year. Later, Hoover’s vice president for Europe, Mike Rutter, said on U. K. national TV, “I do regret that Hoover as a company did not take the product technology off Dyson; it would have lain on the shelf and not been used. ”
Thinking about the issue of core competency and strategic capability, what is the secret of James Dyson’s competitive advantages? Early inventions The Sea Truck, Dyson’s first product, was launched in 1970 whilst he was at the Royal College of Art. Sales of the Sea Truck amount to $500 million. His next product, the Ballbarrow, was a modified version of a wheelbarrow using a ball to replace the wheel. Dyson remained with the idea of a ball, inventing the Trolleyball, a trolley that launched boats. He then designed the Wheelboat which could travel at speeds of 64 km/h on both land and water.

Vacuum cleaners In the late 1970s Dyson had the idea of using cyclonic separation to create a vacuum cleaner that wouldn’t lose suction as it picked up dirt. He became frustrated with his Hoover Junior’s diminishing performance: dust kept clogging the bag and so it lost suction. The idea of the cyclones came from the spray-finishing room’s air filter in his Ballbarrow factory. While partly supported by his art teacher wife’s salary, and after five years and 5,127 prototypes, Dyson launched the ‘G-Force’ cleaner in 1983, the world’s first bagless vacuum cleaner.
Unfortunately, no manufacturer or related distributor would launch his product in the UK as it would disturb the valuable cleaner-bag market, so Dyson launched it in Japan through catalogue sales Strong brand A key task for an entrepreneur like James Dyson is to give innovation the right look, literally and metaphorically. Brand image comprises the product, its attributes and its brand personality. Customer perception of a product and its attributes are inextricable from its perceived superiority that derives from a range of factors including technical excellence and value for money. Has he been able to appropriate the rewards of the value he has added? In an attempt to maintain their competitive advantage, Dyson and his colleagues at Malmesbury have continued to develop new innovations. Determined to create vacuum cleaners with even higher suction, they have developed an entirely new cyclone system. Dyson has developed the robot cleaner that not only makes cleaning easier but guides itself even more logically than a human being would. Then, in November 2000, he launched the world’s first two-drummed washing machine, the Contrarotator.
Dyson’s engineers constantly re-examine products of all types, including the washing machine. They found that in the traditional automatic washing machine the fabric is not flexed all that much and that washing by hand gave better results than the single drum machine. So, Dyson developed a machine that would ‘even improve on hand washing’. Reputedly, it took four years, a million man hours and ? 25 million to develop the machine, which comes with a built-in jack and trolley and a coin trap to capture buttons and loose change.

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Case Study

A Case Study of Action for Children

Introduction
Action for Children is a charitable organisation registered in England and Scotland with headquarters located at Watford. Founded in 1869, it was formerly known as the National Children’s Home, which was established by Reverend Thomas Bowman Stephenson, a minister from the Methodist church. In 1994, the charity adopted the name the National Children’s Home Action for Children (Action for Children, 2013a).
In September 2008, the charity changed its name to Action for Children to reflect its shift from a children’s home to providing more diverse services (Dunne, 2010). The charity’s work is now focused towards more community-based projects including children’s centres; providing support to vulnerable families; and helping to avert potential problems (Action for Children, 2013a).

The focus of Action for Children is the welfare of children and young people. The charity is ‘committed to helping the most vulnerable and neglected children and young people in the UK to break through injustice, deprivation, and inequality, so they can achieve their full potential’ (Charity Commission, 2013, p.1).
In the UK, Action for Children is the foremost provider of services for children, young people and their families, including community centres; services and facilities in rural areas; services for children with disabilities and their families; and services for young people who are leaving care. The charity offers various services in England, Scotland, Wales, and Northern Ireland; and provides assistance to activities in the Caribbean, Central America, and Southern Africa (Action for Children, 2013b).
The organisation, its values, aims and work that they do
Methods of data collection
The data used for this report was obtained by conducting a document search in the organisation’s website, campaign materials (e.g. leaflets, posters, etc.), policies and articles. Additional information regarding the organisation was also obtained through a document search using Google and Google Scholar.
The main challenge in this data gathering process is the lack of third party sources to confirm the information from an objective perspective. Since the data came mostly from Action for Children’s website, the information may be subjective and biased in favor of the organisation. In order to address this issue, this report also utilised information from other data sources.
The organisation’s values and aims
Action for Children was established with the objective of promoting the nurturing and caring of children and young people who need help, from various backgrounds, ethnicities, and religions. The main beneficiaries of its programmes and activities are children and young people. The aims of Action for Children include the following: (OSCR, 2013)
Advancement of education and health
Providing recreational amenities or organising recreational service and amenities, with the goal of improving the living situations of the persons for whom the facilities and/or activities are intended for
To offer respite to people in need due to age, illness, disability, financial difficulties, or other disadvantage
Action for Children aims to end the cycle of poverty through its various activities and campaigns. It challenges social injustice and empowers children to succeed despite the obstacles that hinder them from moving forward. The charity works with local authorities, families, communities and local organisations. (Action for Children, 2013b)
Action for Children’s vision is for all children and young people to feel that they belong, are loved, and valued. The charity aims to help children and young people to conquer unfairness, poverty, and discrimination in order to allow children to achieve their full potential, create their own path, and experience happiness in their lives. Its core values are passion, equality, and hope. (Action for Children, 2013b)
Action for Children continues to work in partnership with the Methodist Church. Its values remain deeply rooted in the principles of the Methodist Church. The charity’s vision and values are reflective of the words of John Wesley, who proclaimed that ‘go not only to those who need you, but to those who need you most’ (Action for Children, 2013d, p.1).
The organisation’s projects and activities
For the past 140 years, Action for Children UK has been helping and supporting the most at risk and neglected children in the country. The charity has worked with more than 250,000 children, juveniles, parents, and carers as it tackles several issues including child neglect and abuse (Action Children, 2013c).
Action for Children provides a various types of pioneering services to children in care, children with disabilities, and young people. These include family support services, adoption and fostering services,, and specialist schools. Action for Children has 600 projects, services and schools across the UK. The charity also advocates for social justice through its research, campaigning, and lobbying for change. (Action Children, 2013c)
Action for Children works with children and young people who: (a) need support for their families; (b) cannot live with their birth families; (c) have some form of disability; (d) who are in care; and (e) experience severe difficulties in their lives. It is committed to offering early intervention and long-term solutions for children and young people in need. (Action for Children, 2013b)
The charity has also adopted an early intervention and prevention approach in dealing with children and families. The charity seeks to catch issues early on and stop them from getting worse. It also aims to prevent such issues from occurring in the first place, as much as possible. Action for Children believes that early intervention is the best form of child protection and helps to prevent children’s problems from recurring in a cyclical pattern. The charity has been working with politicians and decision makers in the UK to push for early intervention in welfare programmes for children and young people.
Action for Children has adapted its programmes to fit the needs of local communities. As such, each area also has its own focus on specific activities: (Action for Children, 2013e)
Wales – Gweithredu Dros Blant
Action for Children offers assistance to over 15,000 children, young people, and their families each year. The charity has over 50 projects across Wales and partners with 21 local authorities in the region.
England – England North, England Central and West, England South
The local authority regions of North East, North West, Yorkshire and Humber are supervised by Action for Children’s England North division. There are over 150 projects in this region, with offices in Harrogate, Newcastle-upon-Tyne, and Warrington. This division provides more than 115 services for children and families and offers 65 services.
Northern Ireland
Through 14 projects across Northern Ireland, Action for Children has helped around 5,000 children, young people, and their families. The charity focuses on providing children’s and family centres in this region. All these services are delivered in partnership with local authority, community, and voluntary organisations.
Scotland
With over 60 services across the country, Action for Children is the biggest provider of services to children and young people in Scotland. The charity offers assistance to over 8,000 children, young people and their families. This includes a variety of services such as family centres, relief centres for disabled children, emergency lodging for young homeless people, criminal justice projects, fostering projects, and other services that are targeted to address the needs of local communities.
Analysis of the organisation’s policies in relation to the UNCRC
The United Nations Conventions on the Rights of the Child (UNCRC) is ‘an international human rights treaty that grants all children and young people (aged 17 and under) a comprehensive set of rights’ (DfE, 2012, p.1), including civil, political, economic, social and cultural rights. The UK is a signatory of the convention and the UNCRC was implemented in the country in 1992. The UNCRC has highlighted the need for the participation of children in the UK, especially regarding activities that contribute to their welfare (Shier, 2006).
The UNCRC describes the factors that a child needs in order to have a secure, joyful, and satisfying childhood irrespective of their gender, religious beliefs, race, social origin, or their parents. The UNCRC affirms that all children and young people should have the right to: (DfE, 2012, p.1)
Special protective measures and aid
Be able to use various services, including healthcare and education
Cultivate their personalities, skills, and abilities to its maximum capacity
Live in an environment where they can be happy, loved, and understood
Be educated regarding their rights and participate in an open and dynamic manner
Based on the above, it can be observed that the aims and institutional policies of Action for Children are in line with the substantive rights that are accorded to children, as stated in the UNCRC. The charity has been fully supportive of the UNCRC and has in fact lobbied for the full assimilation of the UNCRC into the legislations of England, Wales, Northern Ireland, and Scotland. It has also provided help to the DfES in its collation of the UNCRC reports from other British Overseas Territories in the South Atlantic.
Action for Children has included in its lobbying and campaigns the importance of the UNCRC. It has worked in partnership with legislative bodies to provide services to children, young people and their families. It delivers services in five main areas that are in accordance with the UNCRC’s main agendas. This includes family support, aid for children with disabilities, assistance to children in care, support for young people with criminal offenses, and education.
The charity is very active in campaigning for change in the lives of children, young people, and families who are facing extremely challenging situations. It also carries out research and lobbies the government for support. Its policy and research pushes policy makers to prioritise the welfare of the most at risk and neglected children and young people in the UK (Action for Children, 2013b). These programmes and activities are all in line with the core tenets of the UNCRC.
Addressing child neglect is one of the main agendas being pushed for by the UNCRC. In recent years, Action for Children has focused most of its activities on addressing child neglect. The charity came up with directed initiatives to tackle the key causes of neglect. It also provided more training to staff and volunteers in order to better identify and address neglect. Moreover, it launched a campaign to make UK citizens more aware of child neglect (Action for Children, 2013e).
Action for Children has also highlighted three key articles of the UNCRC in its programmes and has lobbied the UK government for support in these areas.
Article 12 states that children and young people should have the right to communicate their opinions and be heard.
Article 13 gives each child the right to freedom of expression while respecting the rights of other people.
Article 23 gives children with disabilities the right to participate actively in the community.
In its report to the UN Committee on the Rights of the Child, Action for Children upheld the UNCRC and called on the government to provide significant investments in services to uphold the welfare of children, young people and their families, and eradicate child poverty. It also appealed to the UK government to take a more active role in fostering a more encouraging view about children and young people in order to stop age discrimination. The charity recommended that legislation should be created to guarantee that children are given protection against assault and/or the threat of assault, which are the equal to the protection given to adults. It also highlighted that disabled children and young people’s freedom of expression are not being maintained. Lastly, Action for Children underscored that greater importance should be given to the opinions of children and young people.
Opportunities, challenges and barriers to implementation of the institutional aims and policies
Methods of data collection
The data used to answer this section of the report was also obtained from Action for Children’s website (i.e. documents, articles, policies, leaflets, etc.) as well as from other third party sources such as the Charity Commission UK and the Office of Scottish Charity Regulator (OSCR)
Opportunities
Action for Children is able to implement its aims and policies primarily through its activities and programmes. Around 81% of its income is received from local authority, central government, and NHS funding. Income from donations is also a critical source of funding (Action for Children, 2012).
In 2011, the charity had a total income of nearly ?198 million and spending of over ?184 million. With over 4,000 employees and more than 2,000 volunteers, it is currently one of the largest charitable organisations in the UK. Action for children has 576 projects and provides assistance to an estimated 48,000 children, young people and their families in various local communities all over the UK (Charity Commission, 2013). Using this funding, the charity was able to pursue opportunities to achieve its institutional aims and policies.
Action for Children also offers opportunities for people to get involved aside from donating money. Volunteers and partners are able to help by writing, emailing, or talking to local authorities and government ministers about the charity’s campaigns. For instance, Action of Children is currently lobbying the UK government to update the law on child neglect. It is encouraging people to email local MPs to ask them to change the law.
Challenges and Barriers
The main challenge to Action for Children’s implementation of institutional aims and policies concerns issues in funding. The recent recession has caused problems in funding, especially with local authorities. There are more children requiring services because of the economic crises; however, local authorities have had to cut down the budget for allocated for charitable organisations including Action for Children (Caplin, 2013).
Action for Children is faced with the challenge of how to maintain its sustainability despite less budget allocations from local authorities and other government agencies. To ensure that the charity remains efficient in providing support to its beneficiaries despite budgetary issues, it has focused most of its expenditure on direct services.
In recent years, there has also been intense competition for donor income among charitable organisations. There is competition amongst charities to win ‘cause-related marketing contracts with commercial enterprises and sponsorship deals’ (Bennett, 2003, p.335). Charities also have to be competitive when they offer tenders for government grants. This is another source of challenge for Action for Children.
Action for Children has taken various steps to remain sustainable and financially efficient. It has significantly reduced its management costs and streamlined its operations. It has also invested business development in order to better address the needs of their local authority partners. Despite spending cuts, the charity strives to provide adequate services and early intervention programmes to children, young people, and their families.
The charity has also taken more efforts into growing its income from donations. It has taken efforts to be transparent to all its funders – both statutory and voluntary – particularly in terms of how money is utilized by the charity. It has launched My Action for Children, which is a website that allows donors to select where their donations goes. It also provides an annual report with details of all programmes, activities, and expenditures of the charity.
Action for Children has diversified its sources of income. This includes partnerships with other organisations to implement its programmes and activities. This includes private individuals, organisations, and businesses. It also raises funds through corporate partnerships, fundraising events, and sales of videotapes for children.
Another challenge for the charity is the implementation of some programmes, which are not the priority of the UK government. For instance, the charity has not yet succeeded in lobbying for the government to stop its hesitation to the UNCRC’s mandate on asylum and immigration. Specifically, the charity is lobbying the UK government to end its practice of putting asylum seeking and refugee children into detention. However, it has not succeeded in putting an end to this practice. Despite its failure to influence the UK government regarding this issue, Action for Children continues to lobby for the better treatment of child refugees and asylum seekers.
Conclusions
As one of the largest charitable organisations in the UK, Action for Children has devoted its efforts into providing various services for children and young people in the UK. It is one of the foremost providers of preventive and intensive assistance to the most vulnerable members of society, including children in care, young people who problems with the law, children with disabilities, and those with mental health problems.
Its primary aim is to help the most at risk children and young people overcome social injustice, poverty, unfairness and discrimination so that they can reach their full potential. The charity’s vision is for all children and young people to have a sense of belonging, to feel loved and valued – to live in a world where they can build their own future and experience joy in their lives. These aims, vision and objectives concur with the UNCRC. Action for Children has upheld the UNCRC and has lobbied for its full incorporation into UK laws.
Action for Children’s funding comes primarily from government grants with additional support coming from donations and partnerships. However, the recession has severely affected its finances due to budget cuts by local authorities and government agencies, as well as competition from other charities. This is compounded by the increase in children who need help due to the economic crisis. The main challenge, therefore, is how to maintain its sustainability despite problems in funding and resources. The charity has addressed this barrier by focusing its income on direct services and by seeking alternative forms of income such as private donors, partnerships, and sponsorships.
References
Action for Children. (2012). Annual Report 2012. Available: http://www.actionforchildren.org.uk/media/4075296/annual_report_2012.pdf. Last accessed 15th May 2013.
Action for Children. (2013a). Our history. Available: http://www.actionforchildren.org.uk/about-us/our-history. Last accessed 15th May 2013.
Action for Children. (2013b). Our vision. Available: http://www.actionforchildren.org.uk/about-us/what-we-do/our-vision. Last accessed 15th May 2013.
Action for Children. (2013c). What we do. Available. http://www.actionforchildren.org.uk/about-us/what-we-do. Last accessed 15th May 2013.
Action for Children. (2013d). About the partnership. Available: http://www.actionforchildren.org.uk/about-us/methodist-partnership/about-the-partnership. Last accessed 15th May 2013.
Action for Children. (2013e). Fact Sheet. Available: http://www.actionforchildren.org.uk/media/5137243/1feb_2013_factsheet.pdf. Last accessed 15th May 2013.
Bennett, R. (2003). Competitor analysis practices of British charities. Marketing Intelligence & Planning. 21(6), p.335-345.
Caplin, M. (2013). Austerity threatening child welfare in UK, report warns. Available: http://www.christiantoday.com/article/austerity.threatening.child.welfare.in.uk.report.warns/32095.htm. Last accessed 15th May 2013.
Dunne, H. (2010). Best rebranding exercise, Winner: From NCH to Action for Children. Available: http://www.corpcommsmagazine.co.uk/news/575-best-rebranding-exercise. Last accessed 15th May 2013.
Charity Commission. (2013). 1097940 – Action for Children. Available: http://www.charitycommission.gov.uk/Showcharity/RegisterOfCharities/CharityWithPartB.aspx?RegisteredCharityNumber=1097940&SubsidiaryNumber=0. Last accessed 15th May 2013.
Office of Scottish Charity Regulator (OSCR). (2013). Extract from the Scottish Charity Register, Action for Children, SC038092. Available: https://www.oscr.org.uk/search-charity-register/charity-extract/?charitynumber=sc038092. Last accessed 15th May 2013.
Shier, H. (2006). Pathways to participation: openings, opportunities, and obligations. Children & Society. 15(2), p.107-117.

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Case Study

A Case Study of Delhi

Disaster is a phenomenon that involves a sudden accident or a natural catastrophe that causes great damage or loss of life and detrimental effect on assets. It is an event that has unfortunate consequences. Disasters happen due to natural and man-made causes which have impact on human and other living beings and colossal damage to property and establishments.
Natural Types of disasters are caused due to forces of nature that include Earthquakes, Tsunami, Landslides & debris flow, Cyclones, hurricanes, typhoons, tornadoes, thunderstorms and lighting; Floods and flash floods, Drought and water shortage, famines agricultural diseases & pests, etc. Unnatural or Man-Made disasters, also called asanthropogenic hazards, are caused by human action or inaction.
Anthropogenic hazards have severe and adverse effects on humans, eco-organisms and ecosystems, property and establishments. Anthropogenic hazardsinclude thedisaster due to war, terrorism, social and civil disorder;Industrial hazards include industrial accidents, releases of hazardous materials, mining accidents, release of toxic gases, etc;

Engineering hazards include failures of structures, buildings, dams etc;rail accidents, collisions and sinking of ships etc; waste disposal hazards like Industrial release, domestic wastes, nuclear and radiological wastes; Hazardous materials such as Organo-halogens, Toxic metal; Nuclear and Radioactive Hazards; Rail, Road and Aviation hazards; Aero-Space Hazards and Bio-hazards.
CBRN Disasters
CBRN disaster is one of the man-made or anthropogenic disaster and is an outcome of science and technology.CBRN material is amplified as for chemical, biological, radiological, and nuclear material. CBRN materials cause great harm either caused due to deliberate action of terrorists or non-deliberate causes like human error or accidents.
CBRN materials of weaponized nature can be easily delivered using conventional bombs (e.g., pipe bombs), improved explosive materials (e.g., fuel oil-fertilizer mixture) and enhanced blast weapons (e.g., dirty bombs). Non-weaponized CBRN materials that are at high risk are referred to as Dangerous Goods (DG) or Hazardous Materials (HAZMAT).
An accidental CBRN incident is an event caused by human error or natural or technological reasons, such as spills, accidental releases or leakages. These accidental incidents are usually referred to as HAZMAT accidents. Outbreaks of infectious diseases, such as SARS, or pandemic influenza are examples of naturally occurring biological incidents.
A Brief on CBRN Disasters is as follows:
Chemical Disasters
The chemical disasters can be categorized into industrial and non-industrial (weapons). Chemical, being at the core of modern industrial systems, poses serious concern for disaster management within government, private sector and community at large. Chemical disasters may be traumatic in their impacts on human beings and have resulted in the casualties and also damages nature and property.
The elements which are at highest risks due to chemical disaster primarily include the industrial plant, its employees & workers, hazardous chemicals vehicles, the residents of nearby settlements, adjacent buildings, occupants and surrounding community. Chemical disaster non-industrial (weapons)Chemical weapons are those that are effective because of their toxicity: that is, their chemical action can cause death, permanent harm or temporary incapacity. Some of the toxic chemicals are phosgene, hydrogen cyanide and tear gas.
Biological disasters
These are causative of process or phenomenon of organic origin or conveyed by biological vectors, including exposure to pathogenic micro-organisms, toxins and bioactive substances that may cause loss of life, injury, illness or other health impacts, property damage, loss of livelihoods and services, social and economic disruption, or environmental damage.
Biological weapons are weapons that achieve their intended effects by infecting human, flora and fauna with disease-causing microorganisms including viruses, and pathogenic organisms. The disease caused is due to the result of the interaction between the biological agent, the host and the environment.
Nuclear and Radioactive Disasters
A nuclear and radiation accident is an event that has led to significant consequences to people, the environment or the facility. The consequences include lethal effects to individuals, radioactive isotope to the environment, or reactor core melt. The reason for the incident can be due to a human error, accident or malicious act.
The outcome of any nuclear explosion is release of radiations that include gamma, neutron, and ionizing radiations. During a nuclear explosion, people near to ground zero would receive lethal doses of radiation; however, they get killed by the blast wave and thermal wave. The residual radiation from a nuclear explosion is mostly from radioactive fallout.
Any radiation incident resulting in, or having a potential to result in, exposure to and/or contamination of the workers or the public, in excess of the respective permissible limits can be termed as a nuclear/ radiological emergency.
Characteristics of CBRN incidents are following:

Causes mass casualties and loss of lives.
Creates an extremely hazardous environment with long term effects.
Relatively easier and economical to produce chemical weapons.
Difficulty in detecting in determining the type of material involved
Necessitates organised, trained and equipped personnel to give rescue and cure.
Requires pre-coordination within health services to establish medical treatment protocols, to stock pharmaceuticals and to determine treatment requirements and establishing coordinated incident management/response procedures for such incidents.
Highly challenging to counter it. Difficulty in diagnosis and then first aid, and cure.

CBRN weapons are likely to be deployed:

Against highly dense population of civilians especially at higher echelon or VIP targets
Strategically important targets and infrastructure such Power plants, chemical and petrochemical facilities, plants, gas stations, nuclear facilities, etc.?
On the Security forces and their establishments.
Affect the psychological and political will and create national insecurity.

Countermeasures for CBRN disasters include:

Protection equipment and kits for personal and community.
Medical emergency aids and therapy.
Government strategies, National intelligence systems, standard operating procedures, training and sensitization of public.
Administrative machinery for pro-active and re-active mitigations.
International laws and Regulations.

Management of CBRN Disastersin India and Disaster Management Act 2005
Since, from drafting of Indian Constitution and independence of India in 1947, the subject Disaster Management could not find a suitable entity in the Constitution of India. It is only in the year 2005 the Disaster Management Act was enacted and came into force. This Act provides a legal and institutional framework at national, state and district levels for the creation of specialized disaster management institutions.
Post enactment the perception about disaster and its management has undergone a change.Now the definition of disaster includes not only the events emanating from natural and man-made causes, but even those events which are caused by accident or negligence. In pursuance of the Act, the Ministry created national level institutions like:-

National Institute of Disaster Management (NIDM),
National Disaster Management Authority (NDMA),
National Disaster Response Force (NDRF) and
National Executive Committee (NEC) in 2006.

Statement of the Problem
One of the challenging aspects in terms of security to any nation in the coming decades is CBRN incidents. The cessation of cold-wars and straight battles, with rise of terrorist nations has given way to covert methods such as CBRN attacks to the enemies of the state.
Further, the exponential growth of industries and piling of hazardous substances pose enormous threat to all living kinds and non-living assets. CBRN attacks are an easy means to hamper the progress of a state. In the present day scenario when economic competition among nations is high, CBRN attacks are cause of concern from both safety and security point of view.
India’s economic success in recent decades faces significant challenges to security alongside its opportunities for further growth.The security can be breached either by its own internal failures due technical causes or the other from hostile agencies. Advancement in technology has triggered the means and methods for the hostile agencies to cause harm to our country.
In the present scenario, the threat perception is CBRN attack cannot be denied. Initially, CBRN perceived as threats to military alone, but today civilian population are easy and influential targets. Thus, the need for the civil authorities to prepare against CBRN incidents is of paramount importance. This aspect also imposesto examine the CBRN issues scientifically and devise strategies to prepare against them.
Disaster Management (DM) Act 2005 defines the role of various authorities and stakeholders (centre-state-local) for disaster management in India. In the event of any disaster, the DM forces come into action for rescue and aid. However, for CBRN disasters there seems that the subject knowledge is limited to the people who are engaged either professionally of academically with CBRN issues. Preparedness, training, evaluation, education and awareness are the key to mitigate and minimize personal injuries and loss of life due to disaster.
Does questions arise that are the various stakeholders aware and fully prepared to respond effectively and in a responsible manner to approach for disaster rescue? To manage CBRN disasters, judicial engagement of stakeholders is highly crucial. It is also important to engage various non-governmental agencies, organizations and individuals towards buildin

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Case Study

Mktg 2101 Red Bull Case Study

MKTG 2101 Consumer Behaviour Case Study -Red Bull: Rampaging through Global Markets 1. What segmentation base has Red Bull adopted to target customers? How should Red Bull further segment the market in the future? Red Bull have adopted a segmentation base strategy relating to market demographics. In particular the company has targeted young active people aged 16 – 29 years. Red Bull also use geography, identifying mainly university students and urban professionals who needed an ‘energy boost’ throughout their busy schedules and activities.
Mateschitz’ strategy aimed to target opinion leaders, believing that “the authority of one alpha bee can influence the buying habits of hundreds”. The Red Bull segmentation strategy also has an important psychographic component, particularly focussing on young people with attitudes, perceptions and lifestyles that are consistent with risk taking, fast paced and energetic behaviours; highlighted with the company motto “No Red Bull, No Wings”. In order to continue to succeed, I believe that Red Bull must optimise opportunities in the growing economies of India and China.
With greater economic freedoms and increased population growth in the middle class there are millions of young people falling into an attractive demographic for the Red Bull product. These young people will be the opinion leaders of the future in their countries, therefore holding the key for a success. Ways in which the company can expand its current activities to begin the process will lie in the correct marketing strategies; in particular I believe that the continued sponsorship of extreme events in these regions will be the perfect way to introduce young people to the product in an exciting new way. . How does Red Bull arouse the motivations of customers to purchase its energy drinks? Red Bull and Mateschitz explain “we are always looking for a more creative, different point of view” (Dolan 2005) to promote and present the product to the customer. This attitude is consistent with the brand personality and the image of its customers. It is for this reason that the company aligns itself with the young male – fast paced and energetic, interested in extreme sports, risky behaviour and never satisfied with the last thrill.

The company too, is never satisfied, continuing sponsorship of extreme sports, owning Formula 1 racing teams and even developing its own sports such as BMX bike riding, Kite Boarding, Freeskiing, paragliding and more! The company is able to continually satisfy the needs of the market, arousing the customer with exciting new promotions and events which challenge the limits of human belief. For example, the Red Bull sponsored BMX events where the riders are attempting and completing unseen tricks and ‘death defying’ acts on a weekly basis.
The company has also attempted a viral marketing strategy, in order to get the product to the consumer in a cheap and effective way. However, these efforts are also well calculated, for example, the drivers of the Red Bull VW Beetle are generally extremely good looking females aged 19 – 28 years, attractive and corresponding for the targeted young male. 3. Describe the brand personality of Red Bull. Why do you think the concept of brand personality is so important to Red Bull?
Brand personality allows the consumer to develop a meaningful attachment to the product. People do not develop meaningful, long lasting relationships with the thing itself, it is when the consumer is able see the product with a certain persona, with feeling and meaning; it is then that the relationship develops and potentially blossoms. Red Bull and Mateschitz understand this and have created a brand personality that embodies excitement, energy and exhilaration, “Red Bull isn’t a drink, it’s a way of life”.
People are overwhelmed with the image, the amazing aura around the events and the excitement created by the athletes. Young people feel the product, the brand and the colours when they see these competitors doing the amazing things that they aspire to, enshrouded with the simple colours of silver and blue. A clean, refined image burned into their brain, connected to the memories of thrilling moments when their heart was pumping, hands were sweating and adrenalin was frantically pulsating through their bodies.
By creating these experiences for their consumer Red Bull are facilitating the development of important relationships with their product. In my opinion, maintaining brand personality and relationships is imperative for Red Bull. Mateschitz himself states, “We don’t bring the product to the people. We make it available and those who love our style come to us” highlighting his acknowledgement of the importance of people aligning themselves with the brand personality and developing a meaningful and long lasting relationship with the Red Bull product
References * Dolan, K. (2005). The Soda With Buzz. Forbes. com http://www. forbes. com/global/2005/0328/028 print. html * Sciffman, L. , O’Cass, A. , Paladino, A. , D’Alessandro, S. and Bednall, D. 2011. Consumer Behaviour, 5th Edition. Pearson Prentice Hall: Australia * Gschwandtner, G. (2004). The Powerful Sales Strategy Behind Red Bull. Selling Power. September. http://www. sellinpower. com

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Case Study

Case Study of Talisman Energy

This paper will present the Talisman decision in penetrating the Iraq oil and gas market, which will highlight the Talisman Energy restructuring portfolio diligence for the purpose of maximizing profits and reducing losses that are likely to occur in near future in daily operation of the business entity.
The paper will start will a problem statement that explains the administrational, marketing and management leakages, present a critical analysis, SWOT analysis, threats, alternatives, and recommendations. The paper will in turn encompass comprehensive review including surface and subsurface, and how Talisman Energy enables oil extraction in lira be a great success.
The paper will further discuss how Talisman Energy takes the oil and gas commodities to the market and influences the consumer purchasing power, and provide a review for the proposed Talisman Energy marketing and organizational strategy.

Focusing on Talisman in Sudan region, they were accused of using indirect strategies to give weapons to the government of Sudan through the help of NGO’s which resulted in media gaining the attention and also interest from general press (Day 2014).
Apparently, Talisman Energy firm had an upper hand on marketing influence and tapping the consumer affinity and, consequently, adopted step to threat human rights in Sudan region and the latter helping them to become a monopoly thereby becoming the largest independent oil and gas firm as a result of huge revenue collected. Talisman cannot therefore risk and face havoc like what happened in Sudan. Talisman should therefore investigate how independent Kurdistan is from the rest of Iraq.
Problem Statement
In 1953, Talisman energy became an independent institution and specialized in oil and gas extraction and production, marketing, transportation, marketing of crude oil, gas, and natural oil (Carsle 2000). According to Carsle, Talisman Energy firm focuses on mainly extraction, transportation and marketing of gas and oil in North America, United Kingdom, Scandinavia, and South East Asia. The company produces 430,000 bowed in 2008 approximately 50 percent oil and 50 percent gas.
Talisman expressed interest in Eastern Africa especially Sudan in years approaching millennium (late nineties) the Sudanese government officials intimidated the natives from a landing strip that was meant to aid in oil related activity which in turn resulted in massive financial planning.
Critique And Analysis
According to Rodriguez and Troyes (2014), Talisman constructed a large 2.5 million net acres of land to help them diversify in their operation and reach a wider market space. To reach more of their consumers, company decided to set goals and objectives to help maximize on their operation and become a market force, their goals were clearly established basically starting with proposed objective and goals, making outline and strategies to accomplish to the set organizational goals in respect to the willingness and financial drive of the shareholders.
Objectives help people and even institutions like Talisman Energy succeed and propel them to even greater heights of accomplishments through providing people with specific and adequate roles in the organization set up, giving consistent decisions and also to choose the best preference among large numbers of objectives through; encouraging proper dedication and fulfillment based on the results expected and to provide corrective action and even control.
Ultimately, the strategic restructuring of the energy production portfolio aimed at creating a sustainable and very consistent growth from its unconventional gas business in North America, Asia, South Asia, and Norway (Franklin 2012). The Talismans’ administration team aimed to launch a less time energy generation portfolio to ease the renewal of the hydrocarbon that increases the cost of energy at the same time focusing on the environmental conservation portfolio.
According to the Talisman management, introduction of a cheaper, effective, and a low cost energy generation tactics that would increase the Resave life index over time (The Canadian Press 2012). Talisman is looking forward to aid the extension and expansion processes in South Asia where F&D cost are considerably very low.
SWOT Analysis
Talisman is an independent international upstream oil and gas company whose main business activities include: exploration development, the process of production transportation and selling of oil in crude form natural gas liquids and natural gas (Day 2014). The company has three core areas, North America, the North Sea, and The South-EastSea.
Talisman is conventional in leading gas explorer and has a significant unconventional natural gas potential, in the areas bordering the North Sea; the company majorly operates more than 40-50 outfalls and has very big exploitation acreage in areas in Norway. In theSouth-East region, Talisman has a substantial and long life natural gas that has never been explored and a highly expansive acreage monopoly and a very strong market force even further elevates company to leverage in the shares in the market
In respect to the diversified and phenomenon graphical presence, it has ongoing production, development and exploration in region around North America, North Sea and, South Asia, Australia, North Africa and Trinidad and Tobago. Statistically, Talisman aggregate production of the year ending 31st 2008 was 452000 barrel of equivalent per day costing approximately 189 000 booed, and 11700 booed from North America, 33000 board from the Scandinavian segment.
Day (2014), argues that the new oil and gas production has significantly increased in recent times, 200 Talisman (Vietnam 46/2) announced that first oil production from the song poc field in Bloc 46/2 and the offshore in Vietnam produce a productive energy resources in that the new oil and gas production would boot the Talisman power output, which ultimately will boost revenue collected. In fact, the acquisition and contract signing took place by acquiring all the shares from CNOOC meager oversees from subsidiaries for a consideration of 212.5 million US dollars.
Threats
The economic slowdown in the US and the entire regions around Europe is a major threat, which causes saturation as a result of resources due to over-exploitation (Carsle 2000). Environmental degradation and damage due to removal of the top soil thereby strict regulations must be enacted to protect flora and fauna.
The Talisman make money by entering Iraq by investing 3.5 million dollars in two blocs in Kurdistan, the firm will therefore acquire 40 percent if block k44 operates by Calgary’s western gloss Resource ltd (Cooper & Vlaskovitz 2011). The Kurdistan region government (KRG) boast of 20 percent Interest.
Talisman plans to spend 80 Million cover past lost by committing fully to projects at hand. The initial cost will range from 10-15 million US dollars, this will either prove positive to investors or negative to them.
Discussion Of Alternatives
There was ultimate need to conserve the earth, one of the valuable commodities. Moreover, Talisman has embarked on more resourceful oil mining alternatives to create a strong and sustainable, and reliable energy for the future generation. Apparently, Iran is one of the largest oil reserves in the world and is ranked fourth worldwide after Saudi Arabia and Canada yet the great part of the country is yet to be investigated (Ries 2016).
There are various strategies that can be utilized as other alternatives to oil mining maximization, which include the use of wind power, geological formations from which oil can be exploited, use of fossil fuels that is considerably much cheaper to limit the hydrocarbon carbon dioxide gas in the atmosphere; thus, the progressive heating of the earths’ surface culminates to a global warming scenario (Orihuela 2014).
Apparently, the industrial affiliation shifted to more renewable sources of energy solar energy such as biomass and tidal energy to suit the Talismans’ tight financial budget. The energy source adopted will depend on the cost of production and its impact on environmental pollution and wellbeing of humankind.
Recommendations
Ensuring that the goals set and the objectives made must be thoroughly met through implementation by monitoring and evaluation programs. This helps in adapting progress over time and improves overall effectiveness and flexibility (Cory 2013). Monitoring of the implementation of set goals is important as it assures the effort conform to what is expected in long run signifying that the company is on the right path and measuring if the results achieved are in line with set objectives (The Canadian Press 2012).
The company should review the tactics to ensure they remain relevant to help changes in environment, culture and rapid demographic changes. Political goodwill must prevail to help optimization of the company operation, like the tax levied should never be too high and provide essential incentives to attract investors set up their businesses. Apparently, records kept must always be open and very clear to allow retrieval in case there is a need in future.
Conclusion
Goals are very useful in setting up a company, to propel the organizational zeal and achievements they are yearning for, to act as a pointer of the future to know whether you are making progress or not. There are pictures where top managers visualize where the organization should be in coming years and also a way that they can see off competitors that see to threaten existence of the company. Goal setting should incorporate planning strategy to help the company be on track and help it focus only on activities important to the organizational performance.
Talisman emphasizes mainly on three objectives: Developing long term growth opportunity, building high impact exploration paths and continue focusing on the current portfolio. Goals bring order, meaning and purpose that will sustain the interest of stakeholders involved and therefore act as a motivation factor to them. By forming goals,an individual sets everything right required of him to succeed to the very top level. Success is therefore achieved by goal’s definition, it is 1 percent inspiration and ninety nine percent perspiration. It is not luck.

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Case Study

Palfinger’s AG – Property, Plant, and Equipment

Palfinger’s AG – Property, Plant, and Equipment
a. ) Palfinger’s property would include the property that they have to store the forklifts and other large inventory that they have on. The equipment would include all equipment that is necessary to make the inventory that they sell such as the cranes.
b. ) This number represents the total of the plant, property, and equipment that Palfinger has. This number should be recorded as the historical cost that the plant, property and equipment was purchased at. This total number also has the total sum of amortized depreciation subtracted out to get the net amount of PP&E that is put on the balance sheet

c. ) In the notes to the financial statements, Palfinger reports the plant, property and equipment of the following:
• Land and equipment • Undeveloped buildings and investments
• Plant and machinery • Other plant, fixtures, fittings, and equipment
• Payments and assets under construction
d. “Prepayments and assets under construction” represents expenses that have prepaid for and assets that haven’t been finished yet. Because the assets aren’t completed and haven’t been used, they aren’t being depreciated. The reclassification comes from the allocation of depreciation from the newly completed projects that now have been put to use.
e. ) Palfinger depreciates its property and equipment by using straight-line depreciation over the prospective useful lives of the relevant assets.
They allocate 8-50 years on buildings, 3-15 years on plant and machinery, and 3-10 years on fixtures, fittings, and equipment. This policy does not seem reasonable because there is a short 8-year building useful life. Because of this, Palfinger’s ROA and EPS ratios are heavily impacted. f. You can both depreciate replacements investments and value-enhancing investments that are capitalized and depreciated over the new useful life or original useful life.
The alternative method to this would be to just expense out the costs of renovations or value-enhancing investments. This way it is completely hit on the income statement and is not shown on the balance sheet.
g. ) i. According to the notes to the consolidated financial statements, Palinger bought $61,444 worth of new PPE in 2007. ii. There was a change of ($733) concerning government grants. According to IAS 20 government grants for property, plant, and equipment are presented as reductions of the acquisition and/or manufacturing costs.
When these are deducted from the account, it lessens the amount depreciated during the life of the acquired assets. iii. The depreciation expense for 2007 was $12,557. iv. Netbook value of total disposed PPE, was $1,501 (Derived from $13,799 – $12,298)
h. ) To derive the gain or loss Palfinger incurred, we compute their proceeds from the sale of PPE $1,655 and subtract it from $1,501 (net book value). This gives us a total gain of $154. i. )
Once this is subtracted from the previous years’ depreciation of $4,269, you get a total income statement impact of $3,173. iii. The total income statement impact is exactly the same. The computations turn out to be identical because it is essentially a backward way of computing the initial cost of the asset of $10,673, minus the proceeds from the sale $7,500, which both gives you $3,173. The difference between the two is perception.
Turnover went down about 11% (5. 61/6. 22) for Palfinger, we also see the despite being less effective they’re still more efficient then Caterpillar by about 26% (5. 61/4. 45) in regards to PPE sales for every dollar spent.
m. ) Depreciation, Amortization & Impairment expense1,960 Accumulated Depreciation & Impairment1,960
n. ) i. Due to the companies building location concept ii. Accumulated depreciation impairment1,755 Depreciation, Amortization, & impairment expense1,755 The credit is posted to an account the company has called revaluation reserve, if it is the initial write up.

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Case Study

Shorefast Case Study B March 2013

Table of Contents Introduction………………………………………………………….. 1 Financial Analysis……………………………. ….. …………………. 1 Strategy Diamond Model……………………………………………7 Internal Analysis……………………………. ………………………. 8 Value Chain Analysis……………………………………………. …….. 8 VRINE Analysis……………………………………………. …………12 External Analysis……………………………………………………13 Porter’s five forces………………………………………………………13 PESTEL…………………………………………………………….. ….. 14 Alternative Evaluations…………………………………………. …15 Fit analysis……………………………………………………. ……. 18 Conclusion……………………………………………….. …………. 19 Recommendations……………………………………… ……………19
Introduction Plant Nutrients Inc. (PNI) is an international company that supplied fertilizer ingredients used by its subsidiaries in 6 geographic area which are Northeastern United States, Eastern Canada, Europe, Australia, New Zealand, and South America. The general manager of PNI is Brian Dunwoodie and the marketing manager is Dave Claussen. Mr. Dunwoodie and Mr. Claussen are the main decision makers within the organization. They were meeting with each other to determine the main issues of the company, which how to improve company’s performance next year (1999).
They came up with three potential alternatives, which are strengthening the existing business, adding a seed business and adding precision agricultural services to better PNI’s performance next year. For choosing the best alternatives, this paper will use different frameworks and models to analyze each alternative, for example financial analysis, strategy diamond model, internal analysis (Value Chain and VRINE), external analysis (Porter’s 5 forces and PESTEL). After analyzing all these parts, the fit between internal and external environment will be analyzed as well. Financial Analysis 1. Operating income statement (Exhibit 1)

As Exihit 1 in the case shows that the main product PNI had sold was Fertilizer, the total sales of PNI in 1998 is $4,621,097, which consist of the sales of Fertilizer( $3,339,097), the sales of pesticides ($1,058,000) and the sale of services ($224,000). The sales of fertilizer accounted for 72. 3% ($3,339,097/ $4,621,097) of total sales, the sales of pesticides accounted 22. 9% in the total sales, and the service only accounted for 4. 8% in the total sales, so fertilizer product generate more sales than pesticides and services and this also means the sales of pesticide and services may have huge growth potential in the future.
Hence, PNI should focus more on the sales of pesticide and service in the future. In addition, the gross margin of fertilizer was 20. 07%, and the gross margin of pesticides was 18%. Among these products, fertilizer was the major contributor of PNI’s profit. In terms of the sales of each product, the analyst will use the following tables to identify what the major markets and customers of these products. 2. Fertilizer sales No. 1 The percentage of PNI’s customers accounted in the Fertilizer Market. (Formula: Number of Customers in PNI / Number of Customers in the whole market)
Market AreaPNI Farm SizeSalesCustomersSalesCustomersMarket Share Small$1,128,000527$986,00040476. 7% Medium$10,635,0001578$1,259,00017110. 8% Large$3,631,00095$319,00099. 5% Total$15,394,0002200$2,564,00058426. 5% No. 2 The percentage of the fertilizer sales for the market and for PNI over the total sales by customer segment, 1998 Market AreaPNI Farm sizeSalesSales Small7. 33%38. 5% Medium69. 1%49. 1% Large23. 6%12. 44% Total100%100% Market AreaPNI Farm sizeSalesSales Small100%87. 41% Medium100%11. 84% Large100%8. 79% Total100%16. 7% No. The percentage of PNI’s fertilizer sales contribute to the market sales by customer segment, 1998 3. Pesticide Sales No. 4 The percentage of PNI’s customers accounted in the Market. Market AreaPNI Farm SizeSalesCustomersSalesCustomersMarket Share Small$797000527$35600020939. 6% Medium$63120001578$4580001066. 7% Large$3,300,00095$244,00077. 4% Total$10,409,0002200$2,564,00032214. 6% No. 5 The percentage of pesticide sales for the market and for PNI over the total sale by customer segment, 1998 Market AreaPNI Farm sizeSalesSales Small7. 66%33. 6% Medium60. 64%43. 3% Large31. %21. 2% Total100%100% No. 6 The percentage of PNI’s pesticide sales contribute to the market sales by customer segment, 1998 Market AreaPNI Farm sizeSalesSales Small100%44. 67% Medium100%7. 26% Large100%6. 79% Total100%10. 16% Interpretation of tables 1. Table No. 1 and No. 4 For both fertilizer products and pesticide Products, PNI’s major customers are the small farm owner (Fertilizer: 76. 7%, Pesticide: 39. 6%), so the future trend for PNI is to take more medium and large farm size customers (Medium: Fertilizer: 10. 8%, Pesticide: 6. 7%; Large: Fertilizer: 9. 5%, Pesticide: 7. %). 2. Table No. 2 and No. 5 in the market area, the sales of fertilizers, the medium farm account the largest portion of sales (69. 1%). For the sales of pesticides, the medium farm still accounts the largest portion of sales (60. 64%). In the PNI’s area, both the sales of fertilizers and pesticides to the medium farm customers have the highest percentage (Fertilizer: 49. 1%, Pesticide 43. 3%); therefore, PNI should focus on the sales of fertilizer and pesticide to the medium farms’ customers because it accounts the largest part of PNI’s total sales. 3. Table No. 3 and No. The sales of PNI’s fertilizers and pesticides to the small farms’ customers have already gained the largest sales in the whole market (Fertilizer: 87. 41%, Pesticide: 44. 67%). However, for the sales of PNI’s fertilizers and pesticides to the medium and large farms customers account a very small portion of the total sales in the whole market (Medium: Fertilizer: 11. 84%, Pesticide: 7. 26%; Large: Fertilizer: 8. 79%, Pesticide: 6. 79%). Hence, PNI should also pay more attention to increase the sales to the medium and large farms’ customers due to its huge growth potential. . According to the Exhibit 5 in the case, the large farm size prefer Materials and Regular fertilizers and it contributes almost 54. 3% of the material sales to total sales. Therefore, PNI should focus on selling Materials to large farm size customers. However, the sales percentage of the premium and regular fertilizers, which in the medium farm size contributes the most to the total sales of the market, and the sale percentages are 53. 1% and 59. 7% respectively, and the Exhibit 4 showed that the Premium fertilizers and Regular fertilizers of PNI have the highest ($89. 5) and second highest gross margin ($66. 11); hence, PNI should focus on selling premium and regular fertilizers to small and medium farm size customers. In addition, it is unnecessary for PNI to focus on the sales to dealers because PNI cannot stop the trend that the sales volume to dealers is decreasing year after year. Observation: 1. Medium and large farmers have great grow potential. 2. Small and Medium farms prefer Premium blends fertilizers, which is the most profitable fertilizer product in PNI (gross margin: $ 89. 95/ ton) Strategy Diamond Model
The strategy diamond, which includes arenas, vehicles, differentiators, staging and pacing, and economic logic, shows how well a company do its business in a strategic level. Arenas: PNI’s current product and service lines consisted of fertilizers, pesticides, custom application services and oil testing. The PNI in Lancaster is one of the subsidiaries in the 6 geographical regions, which are Northeastern United States, Eastern Canada, Europe, Australia, New Zealand, and South America. In terms of distribution channel, the company outsource a trucking company to cut down on their distribution costs.
Moreover, the company have modern equipment to produce products and have the best trained operators to provide services in the region. Vehicles: There is no information about vehicle in the current situation. However, if PNI select the second alternative, which is adding a seed business in the near future, the company may alliance with Larson Seed, a regional seed producer, to provide expertise and sales training for PNI sales consultants. Differentiators: PNI bundles their prices so that when a farmer buys their product the services are also included in the price.
The services provided are also customizable to the farmer’s needs. They have the most qualified operators in the region, and because of this, they are able to provide the highest quality services. They have a strong long lasting relationship with their customers as they have been in the business for 20 years. Furthermore, PNI is the only fertilizer supplier in the area with proprietary, premium fertilizers, had invested heavily over the years to develop and test their products. Each customer needs different services that depend on that customer’s situation by creating value bundle.
Staging and Pacing: There is urgency for PNI to do internal development because the company wanted to perform better in the next year (1999). So, the top management had come up with three alternatives to either adding new businesses or strengthening the current business. Economic logic: There is a great potential for PNI to generate more profits when the company minimize its cost. The case mentioned that PNI didn’t achieve its maximum capacity. For example, the capacity of PNI blending plant is 14,000 tons/ year; however, it just blended approximately 10,000 tons in 1998.
By achieving the maximum capacity, the company can utilize the economies of scale to assign the fixed costs of the production into each process, so that the company can make more profit. Observations: Overall, PNI didn’t perform very well in 1998 because the operations within the organization don’t function well. The major reason of it is that the production level didn’t meet the maximum capacity, which increases the cost of each product. When costs go up, the revenue will decrease (assume the volume sold is the same).
Internal Analysis-Value Chain analysis The Value Chain is a tool to analyze the internal environment of a company and determine where the business concentrates their efforts. Inbound logistics: PNI’s warehouse met the latest U. S. environment standards for fertilizer and pesticide storage; however, its storage is able to handle a substantially larger volume than currently required. This means the company have high variable cost per item because it didn’t fully utilize its storage. Operations: The capacity of PNI blending plant is 14,000 tons/ year; however, it just blended approximately 10,000 tons in 1998.
This means PNI were not achieving the maximum capacity. The company has two types of application equipment, which are modern and in good working order. The first type is fertilizer equipment, which consist 25 bulk, full-typed spreaders. The cost of the equipment is incorporated in the price of fertilizer, so it is free for customers. However, customers just used bulk spreaders on about 80, 000 acres in 1998, which is about 32000 acres per spreaders, which is less than a spreader’s capacity of about 4000 acres. So, the company can reduce the number of spreader it gave to customers to reduce costs.
Air spreader is more attractive to large and medium farmers. The capacity is 8000 acres per year under ideal condition, however, only 4000 acres in 1998, which is only half of the actual capacity. Consumers can choose to pay for it by bundling price of equipment to fertilizers or separate the price for spray equipment and fertilizers. The other type of application equipment is pesticide application equipment. There are two self-propelled applicators under pesticide application equipment, which are small unit applicator and larger unit applicator.
The capacity is 8,000 acres per year for smaller unit and 10,000 acres per year for larger unit. In the last two years, these two units are fully utilized, which sprays a total of 18, 000 acres of land each year. The problem is two application units were fully booked, whether lack of application capacity might be constraining pesticide sales. The soil testing lab can handle 14000 samples per year; however, it only handled 6000 samples in 1998. Outbound logistics: PNI deliver raw materials by using an excellent rail service and a local trucking firm handled all shipment to customers.
Dunwoodie said that the outsourcing of PNI’s trucking had reduced costs and investments substantially. Marketing and sales: PNI is the only fertilizer supplier in the area with proprietary, premium fertilizers, had invested heavily over the years to develop and test their products, which are urea and ammonium, regular N-P-K, and premium N-P-K. The last product was a proprietary product that carried the Nutri-Plus brand, which provides significant economic benefits to farmers and the sales of it accounted for half of sales in 1988 and an increasing percent percentage of PNI’s total sales over time.
Most of customers didn’t ask about price, so they are less price sensitive. Dunwoodie estimated that to be about 40% of the total acres treated with chemicals sold by PNI. The market segments are depending on the size of farm, which are sorted by small, medium and large. There are up to 100 acres of crops in small farms, 100-500 acres of crops in medium farms and over 500 acres of crops in large farms. PNI charge on the basis of the customer’s ability and willingness to pay and are sharing in the benefits it create for the customers, which result in higher margin, premium products.
However, PNI lost profit on the higher prices of these products due to high cost of service. The company had about $25,000 in its budget for marketing. PNI spent most of them on PNI-sponsored events where 25-50 local farmers were treated to a meal, some entertainment, and an information program. PNI also advertised in local newspaper and gave away hats, pens, and other premiums to customers and prospects. Moreover, $5000 was spent on a corporate brochure in 1998. Service: extensive agronomic services: soil analysis, crop scouting, nutrient consulting, micronutrients analysis, and pesticide and fertilizer application.
Sales representative do delivery, application, consultation, consultation, and billing to customers. Also, they kept latest product knowledge and attempted to build strong personal relationships with each customer result in low customer turnover rate. Procurement: Supplied by its mother company. Technology development: PNI use modern equipment to produce products and advanced information system to provide more accurate data and feedbacks to the company. Also, if it decides to enter into the precision agricultural business, it needs to use GPS system and other AgriTechs, such as Yield Mapping and Remote Sensing Mapping.
Human resources management: Brian Dunwoodie has 11 staffs reporting to him that includes sales, marketing, accounting, production, administrative functions. Staffs are flexible and empowered, so that they could do what needed to be done. Dave Claussen is responsible for developing PNI’s marketing program. There are two services managers who work with sales consultant to determine the types of products and application rates for individual farmer clients. PNI is possible to use high-level technical support because it use full time and better trained employees than competitors.
Other company use part-time employees with little expertise with the equipment or procedures involved for applying fertilizers and pesticides. There are 4 sales consultants who is selling PNI products and services, working with existing customers, explaining soil test results, helping develop an annual fertilizer and pesticide program, providing general technical advice and attracting new customers. Average 30 days each year to sales and product training, compared to other competitors less than 15 days on training. Each consultant had a designated sales territory, which has approximately 140 customers. Observations: 1.
PNI have extra capacity of warehouse and machinery. 2. Outsourcing trucking service reduce the company’s cost. 3. Staffs are well-trained and be able to provide superior services to customers. VRINE analysis VRINE is a tool to analyze the internal resources and capabilities to determine if a company has a competitive advantage over competitors. Value: There is no unique resource within the organization because the technology and resources the company use to produce the products is easy to access by other competitors. However, the company provide customized services and products to customers, which provide benefits to farmers.
Also, PNI has the best operators within the organization to serve its customers, which helps the company to build a good relationship with customers. It also used the “win-win” philosophy and dispatched sales representatives to keep a good long-term relationship with its customers Rarity: The resources the company use are not rare, because it can be access by competitors too. Inimitability: The technology the company use to produce products is easy to imitate by competitors. Non-substitutability: The chemical fertilizer product can be substituted by Biofertilizers, which is made from microorganisms.
Pesticide can be substituted if farmers buy pest-resistant seed to remove the need to by pesticides. Exploitability: PNI didn’t manage its resources well because they have wasted a lot of resources in the process of operations. For example, the capacity of PNI blending plant is 14,000 tons/ year; however, it just blended approximately 10,000 tons in 1998. Air spreader is more attractive to large and medium farmers. The capacity is 8000 acres per year under ideal condition, however, only 4000 acres in 1998, which is only half of the actual capacity. Observation: 1.
PNI has a non-sustainable competitive advantage. 2. The exploit of resource within the organization is poor. External analysis -Porter’s five forces Michael Porter’s five forces model, which determined industry profitability, included degree of rivalry, threat of new entrants, supplier power, buyer power and threat of substitutes. Rivalry (High) There were five companies sell fertilizers and chemicals to farmers around Lancaster. PNI’s largest competitor is Lancaster County Co-op. It supplied both crop and livestock inputs and purchased grain through a separate division.
It also offered application services-farmers were dissatisfied with the quality of these services and co-op didn’t provide many value-added services, such as precision agriculture. Another competitor is Smith Farm Supply, which is an independent dealer. It only sold chemicals and fertilizers and provide custom application services using less expensive, poorly trained, part-time operators. Smith Farm Supply offered the best prices in the area. The other three competitors are Archibald Farm Supply, Henderson Farm Supply, Wilmington Crop Services; they all focus on supplying chemicals rather than fertilizer.
Threat of new entrant (Low) Since the competition is so fierce, there is less chance that new entrant want to enter into the market. Supplier power (Low) PNI can directly get supplied from its mother company. Plant Nutrients International supplied fertilizer ingredients to its subsidiaries. And their sales would not be influenced by the suppliers. Buyer power (High) The switching cost for customers is very low, so no matter which company offer good service and lower price customers could switch forth and back. Threat of Substitutes (medium-high)
Fertilizer’s potential substitute: Customers may switch to biofertilizer, which is made from organism is applied either by coating seeds with the fungus, because people’s awareness of body health. Pesticide’s potential substitute: farmers may buy pest-resistant seed to remove the need to by pesticides Observation: Overall, the profitability of the market is not attractive because the competition is fierce, buyer power is high and there is some product can substitute the products the company currently sell. PESTEL Analysis
PESTEL analysis is used to analyze the external environment of a company; it stands for Political, Sociocultural, Environmental, Economic, Technological and Legal. Political: PNI’s warehouse met the latest U. S. environment standards for fertilizer and pesticide storage. Sociocultural: Many of the small and some of the medium farms in Lancaster were owned by Amish farmers, they were hard-working farmers whose religious beliefs called stewardship of the land. Most of them are willing to adopt technology that supported stewardship of the land.
Environmental: The chemical fertilizers and pesticides PNI sell have a potential to pollute land, so the company should be careful about the environmental costs regarding ecological or environmental issues. Economic: Asian financial crisis happened in 1997-1998, so it is not a timing to enter market into Asia. However, the financial crisis has limited influence to the United States’ economic environment. Technological: The company use advanced Information System to provide more accurate and detailed data on customers.
Moreover, PNI is possible to use high-level technical support because it use full time and better trained employees than competitors. Legal: Several federal regulations cover fertilizer manufacturing and transportation safety and limit their potential impact on the environment and security. Observation: Overall, there are many factors outside of the company have the power to influence a company’s decision and strategic plan. Alternatives Evaluation 1. Working the existing business harder Dunwoodie says that if they were to make no changes and just work their existing business harder they would be able to meet their objectives.
They are lagging in the large farm segment and if they were to add 20 farms from that segment they would be able to meet their objectives. They could use their excess capacity to spread out their fixed costs. Advantages: a. It has a great potential to increase the number of customers from medium and large farmers. b. It can help the company to achieve its maximum capacity, which will reduce the cost of each product because it assigns the total fixed cost into more numbers of products. (Economies of Scale) c.
Could meet the financial obligation within one year by attracting more medium farmers (the most profitable market segment) Disadvantages: a. It is hard to attract larger farmers because they prefer low-priced products. If PNI wants to attract larger customers, it should reduce product price, which means the profit will decrease as well. b. They should hire and train more sales consultant to meet the increasing number of customers, which increase PNI’s cost too. 2. Adding Seed Business Dunwoodie thought that adding a seed business to PNI would add value to the company.
With the new genetic seed technology chemical sales would decline in the future thus creating more opportunities for seeds. Companies like Larson Seeds were already successful seed suppliers. Larson was looking for a distributer in Lancaster, but Dunwoodie was worried about the already existing competition in the seed market, the new staff they would need to hire, and the training for the employees and the company alike to get into this business. Advantages: a. Its new genetic technology might increase seed sales. b. It can help PNI complete the product line. Disadvantages: a. he new genetic technology can also decrease chemical sales in future, which conflict with PNI’s current product line. b. Another challenge for PNI to access to the seed business was that it needed to partner with a good seed producer, so whether PNI can cooperating with a regional producer would became an important question for Dunwoodie to consider if he wanted to enter the seed business. c. This alternative is hard to meet the company’s one year financial obligation because it is a new business to add a seed business, PNI should take times to discover the right strategy to sell seeds. . the competitive market is fierce, for example, Monsanto is a giant in the seed business. It is hard to steal market share from it. 3. Adding a Precision Agriculture Services If PNI was to adapt the precision agriculture they would be the first ones to market with this service, thus creating a huge competitive advantage. There would be a huge start-up cost to start such a venture, expenses like; new staff, equipment, trucks, and training. With is new technology they would be able to better serve their customers allowing them to put together superior agronomic packages.
A lot of farmers were skeptical of the new technology but after reading the survey, I find that not many of the farmers are educated in the benefits of the new technology. It would be the sales force’s job to educate the customer on the benefits to be able to make the sale. Advantages: a. Many farmers were aware of precision agriculture and precision agriculture was a coming trend, so adding precision agriculture would improve the customer service and increase total sales. b. It can complete the company’s services by providing more precise and accurate method to application service. . It will be a competitive advantage for the company, because no competitor enters into this service. Disadvantages: a. High cost: it would cost $10,000 to set up one pull-type spreader and $225,000 to purchase the truck with six separate tanks. Moreover, PNI still needed people, computers, software, and monitors and so on; the investment would be extremely large. b. The survey found that many farmers had skepticism regarding the real benefits of the precision agriculture. c. It cannot meet the company’s financial obligation in one year. FIT Analysis
Internal: Internally PNI hires the best operators and most experienced sales consultants so that they are able to provide the best services and knowledgeable employees. By meet the company’s goal, which is better financial performance in the next year, PNI should hire more sales consultant to meet the increasing number of customers. Moreover, the company should try to achieve its maximum capacity in the next year, because it will significantly reduce the COGS. External: PNI has 5 competitors in Lancaster, which created a fierce competitive environment.
However, PNI has its competitive advantage over other competitors, which is the customized and superior service it provided and also the relationship it built with customers are both the assets of the company Moreover, there are many factors externally have the power to influence a company’s decision and strategic plan. Observation: Overall there is a good fit between PNI’s internal and external environment. It recruited full-time and well trained staff to provide superior services to customers, which is a competitive advantage of the company.
Externally, customers and even competitors perceived PNI as superior services providers with knowledgeable sales reps in the region. Conclusion In conclusion we think that PNI has the resource and capability to either entering new business or strengthening the current business, because they haven’t achieve the maximum capacity of machinery and warehouse. Moreover, medium and large farmers have great growth potential and they prefer premium blends fertilizers, which is the most profitable fertilizer product in PNI.
In addition, outsourcing trucking service reduces the company’s cost. Furthermore, PNI staffs are well-trained and be able to provide superior services to customers. PNI has a non-sustainable competitive advantage, which means its competitive advantage can be imitate by competitors. In addition, there are many factors outside of the company have the power to influence a company’s decision and strategic plan, such as government’s regulation and sociocultural factors. Recommendation
After analyzing the organization’s internal and external environment, and all three alternatives, we recommend PNI choose the first alternative, which is working on the existing business harder. We also suggest that PNI focus on targeting medium farmer because of the following reasons: 1. PNI have a competitive advantage over their competitors because of their superior quality and customer relations. At the same time, medium farmers value good services when buying products, which is what PNI good at to do. 2.
They are less price sensitive than larger customers, which can help PNI increase sales. 3. Medium farmers prefer premium blending fertilizer, which is the most profitable products in PNI. 4. There are only 6. 7% of medium farmers buy fertilizers of PNI and 10. 6% medium farmers purchase PNI pesticides. This means there is a great potential for PNI to get more customers from medium farmer segment because the customer base is big. 5. It has a greater potential than other alternatives to help PNI achieve its one year financial goal.
Other two alternatives need longer term than the alternative 1 to breakeven, because PNI needs cost more money to implementing the seed business and precision business. However, it costs the company less to implement the first strategy, because the company already have all capabilities and resources to implement the first alternative. However, it is not to say PNI should only target on medium customers. Instead, PNI should keep targeting small and large customers, because it is good to diversify the risk of targeting only one market segment. However, the medium farmers should be the priority of PNI.

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Case Study

Digestive Case Study Essay

Toucan Collections Case Analysis Problem: Should Toucan Collections accept the contract from the department store, therefore changing the basic business definition of the company? If not, how should it grow its business? Alternatives: 1. Do nothing, do not sign the contract and continue selling as is 2. Sign the contract, significantly increase the number of replicas, but significantly increase promotions of Toucan’s authentic core products 3.
Do not sign the contract but grow business through brand extension with new product Recommendation: REJECT: Toucan Collections has maintained a great annual growth rate of around 20% in the last decade, which has attributed to their $25 million gross sales. Competition has increased tenfold in the last few years, and these competitors are targeting customers through a variety of channels. If Toucan does nothing to change their marketing style and keep up with the competition, they will get swallowed within the seller market.?
Alt 1 (Do nothing) REJECT: On paper, this contract sounds to have great potential, providing a possible 16% increase in sales and reliable income. But the possibility that the company would only continue with the $750,000 purchases needs to be looked at since it would not increase revenue enough to outweigh the possible consequences of the contract. A positive is that they would be following the industry trends and keeping up with their competitors.

However, the case states that Toucan has (worked hard for) and developed a reputation of trust and quality. By following the contract and triple-ing its replica production, they would by shying about from the base definition of their business. They are known for trust and quality, but are shifting to replicas? This would send a very bad message to its core target market. Replicas make up a very small portion of their net sales, so expanding in this area seems to be inconsistent with achieving their overall goals.
However, since the replica market is bought by consumers gift shopping and decorating it should be acknowledged that there is potential to further tap into this market since it will always be present. The other positive option with doing the contract is that they increase their marketing efforts towards highlighting Toucan’s core, reputable products. They could explain that the company in which they would be doing business with is also a reputable business, and will be carrying Toucan’s authentic products as well.
As long as Toucan lets the public know that it is not straying from its core market simply expanding the markets that they sell to, the trust that has been built up should not be tarnished. They will understand that the Toucan will continue to supply quality, unique authentic products as well as replicas, and they have the choice of what to choose from. But, all this is contingent on the fact that they have enough resources to triple their replica production and can handle the dealing with a mass market, while not reducing resources to core products?
Alt 2 (Sign contract) (ACCEPT) One possibility is po? Alt 4 (Do not sign contract) ssibly trying to find another authentic product to sell and extending their product line. They could find another region of the world, or some other product that fits with their brand image, and try to sell that in addition to their other products. This would fit with their business definition and make more sense with their core customers and future goals. No matter what they do, they should increase their marketing to keep up with the competition’s increasing presence.