Correct Answer:
Managers either overestimated the reduction in reject rates that would be achieved at the company’s production facilities or overestimated the cost savings forthcoming from the company’s investments in one or more production improvement option at its production facilities.
Reason: company revenues, net profits and Earnings per share (EPS) mainly depend on the cost saving inside the business organization. Once managers over estimated the reduction in reject rates or cost saving and fails to pursue those decisions. Company may face loss. Eventually business turn out to be worse than they projected.
Other reasons given above in the questions are irrelevant to the current question scenario.
If a company's actual results for revenues, net profits, EPS, and ROE turn out to be...
Which of the following combinations of actions will likely provide the greatest assistance in helping a company achieve a differentiation-based competitive advantage over some/many of its rivals? Delivering orders to branded footwear retailers in 2 weeks in all four geographic regions, spending above-average amounts for search engine advertising in all four geographic regions, offering a mail-in rebate of $6 in each geographic region, and charging prices for branded footwear that are $5 below the industry-high in both the Internet and...
It is reasonable for a company's management team to abandon efforts to win contracts to supply private-label footwear to chain retailers in a given year when it believes the company has good prospects to profitably sell all of the branded pairs it can produce at its existing production facilities (including full use of overtime) the private-label operating benchmark data on p. 7 of the latest FIR shows that the industry- low margin over direct costs per pair sold was only...
Which one of the following results from the latest decision round are least important in providing guidance to company managers in deciding how to improve their company's overall performance and competitiveness versus rival companies in the upcoming decision round? The credit rating data and the balance sheet data for each company on p. 5 of the FIR The Industry Scoreboard and each company's performance on EPS, ROE, stock price, credit rating, and image rating displayed on the first 3 pages...
Under what circumstances should a company's management team give serious consideration to making an offer to supply private-label footwear to chain retailers in a particular geographic region? When the company has the ability to manufacture private-label footwear at a production cost per pair that is at least $2 per pair below its per pair production cost of branded footwear When the data in the latest Competitive Intelligence Report indicates that all winners of contracts for private-label footwear in a geographic...
It is both reasonable and wise for a company to consider modifying its strategy to strongly differentiate its branded footwear from the offerings of rival companies on the basis of a broad selection of models/styles and high S/Q ratings which it sells at well above-average prices when the company is struggling to achieve the five investor-expected performance targets because the global market for branded footwear is crowded with rival companies trying to outcompete each other with mostly copycat strategies aimed...
Discussion questions
1. What is the link between internal marketing and service
quality in the airline industry?
2. What internal marketing programmes could British Airways
put into place to avoid further internal unrest? What potential is
there to extend auch programmes to external partners?
3. What challenges may BA face in implementing an internal
marketing programme to deliver value to its customers?
(1981)ǐn the context ofbank marketing ths theme has bon pururd by other, nashri oriented towards the identification of...
Young Brands OUNG BRANDS (YB) is a manufacturer of sports clothing and team uniforms. Its industry is quite competitive, so the management team has attempted to operate a modern operation with state-of-the-art production facilities. Careful cost management has been an important factor in attaining profits. YB is considered a leader for its fashion sense, pricing, market- ing, and product quality. Professional and university-team uniforms and affiliated products are sold by company salesmen to teams and to retail stores throughout North...
How can we assess whether a project is a success or a
failure?
This case presents two phases of a large business transformation project involving the implementation of an ERP system with the aim of creating an integrated company. The case illustrates some of the challenges associated with integration. It also presents the obstacles facing companies that undertake projects involving large information technology projects. Bombardier and Its Environment Joseph-Armand Bombardier was 15 years old when he built his first snowmobile...
Read the Article posted below, then answer the following
questions:
Mergers & acquisitions are a major form of
corporate diversification strategy, identify and discuss the top
three reasons why most (50-60%) of acquisitions fail to create
shareholder value.
What are the five major components of “CEMEX
Way” and why has this approach been so successful in
post-acquisition integration?
In your opinion, what can other companies learn from
the “CEMEX Way” as a benchmark for acquisition
management?
Article:
CEMEX: Globalization "The...
Assess whether from a utilitarian, rights, justice and caring
perspective, Unocal did the right thing in deciding to invest in
the pipeline and then in conducting the project as it did. In your
view, and using your utilitarian, rights, justice and caring
assessments, did Unocal do the right thing?
CASE:
Unocal in Burma Union Oil Company of California, or Unocal, was founded in 1890 to develop oil fields around Los Angeles and other parts of California. By 1990, Unocal had...