Case Study 1 Honda Effect Marketing Essay

What are the cardinal differences between these two histories of Honda ‘s entry into the US bike market?

There are two histories of Honda ‘s which explain the manner they entered in US bike market. Those histories were Boston consultancy ( BCG ) and An Insider ‘s history which is recorded by Richard Pascale.

These two histories of Honda ‘s entry into the US bike market differ in each other. The cardinal differences are as follow:


The history does non stipulate mark market and does non advert troubles faced by Honda the clip they enter in US market. BCG analyses the fight of the bike industry and reference more about Research and Development. In June 1960 Honda ‘s Research and Development attempt was staffed with 700 designers/engineers while merely 100 interior decorator where employed by Europeans and Americans rivals. Besides research shows that in 1962 production per man-year was running at 159 units and a figure non matched with a Harley Davidson until 1974. But, besides BCG R & A ; D shows that Honda ‘s fixed plus investing was $ 8170 per employee which is more than twice its Europeans and Americans rivals.

Besides BCG explained Honda ‘s competitory advantages over its challengers. Honda started to force in the US market the smaller and lightweight bikes which had three velocity transmittal, an automatic clasp, five horsepower while American rhythms had merely two and a half HP, and an electric starting motor and measure through frame for female riders.

Besides history shows that Honda accent is on deliberate schemes to re-dress the negative image.

An Insider History

The history specified the mark market which is Los Angeles where there was a big 2nd and 3rd coevals Japanese community, a clime suitable for bike usage and a turning population.

Besides an insider history explained the challenges faced by Honda at that clip of entry. Some of the challenges were the clip they dropped to dealer and treated impolitely and larger figure of rivals in the bike industry.

But the history was about soundless about research and development, merely mentions the different engine capacity such 250cc and 350cc. History shows less analysis of motor rhythm fight and besides accent is on emergent schemes.


Map Laura Ashley ‘s stakeholders utilizing a power/interest matrix

Stakeholders are the specific people or groups who have a interest or involvement in the result of the project/business.

Types of stakeholders

Internal stakeholders, such as direction, employees, analyst, laminitiss, main executive and board of managers.

External stakeholders, such as clients, authorities, Malayan United Industries ( MUI ) , franchisee

Stockholder function used to identifies stakeholder outlooks and power and helps in understanding political precedences. Power-Interest matrix is manner of mapping the power and involvement of stakeholders.


Degrees of Interest

B ( maintain Informed )




Bonham Industries

Mark and Spenser

A ( Minimal Effort )


Retired CEO

Low High



D ( Key Players )



Malayan united Industries ( MUI )

Chief executive officer and BOD

Rescue Team

C ( Keep satisfied )






Customers are under section C ( maintain satisfied ) . They have really high-power for the concern. Business without clients wo n’t be, so they are really of import and they must be satisfied with company ‘s merchandises.

Government besides is a cardinal participant. It has a power because it controls all houses in the state, and it may make up one’s mind either to registrar a company or non. But besides British authorities has high involvement over the concern for the intent of puting revenue enhancement.

Beatrix and Marjorie were the laminitiss of the company. They are cardinal participants. They have a concluding say in the company, but they appoint Chief executive to work for them. They have high involvement about concern in order to cognize if concern is making good and if they can accomplish the aims of the concern.

Malayan United Industries ( MUI ) is the current largest stockholder of the company. So MUI is besides a cardinal participant of the concern. They have high power and high involvement over the concern because they ever looking on maximizing net income and growing of the concern.

Case 3: using A Balanced Scorecard

What statements would you utilize to carry an organisation to follow the Balanced Scorecard attack?

The balanced scorecard is a methodological tool meant to assist concerns pull off their hereafter growing, aims and programs. Balanced scorecards help the company to find whether the set ends have been met or non.

Balanced scorecards combine four strategic positions which answer four inquiries to the company. It answers the inquiry of how do clients see us. How do stakeholders see us, what must we stand out, and can we go on to better and make value?

The Four strategic positions are as follow ;

Fiscal Position: explain where the company is now, and where the company should be. ( How do stakeholders see us? )

Customer Perspective: This trade with the terminal users of the merchandises or services. They determine whether the concern fiscal facets fail or win. ( How do clients ‘ Se us? )

Internal Position: This trade with concern procedure betterment and the manner concern operates such as labour productiveness betterment, capital investing against cost nest eggs. ( What must we stand out at? )

Innovation & A ; Learning Perspective: It deals with things like preparation and implementing of corporate civilization. ( Can we go on to better and make value? )

The followers are the statements that could be used to carry an administration to follow the Balanced Scorecard attack ;

It helps to acquire balanced view the company public presentation by utilizing four schemes. It may look that a concern is making good in financially but employees developing are equal, client satisfaction is really low. So Balance scorecards paints out the all image of the concern

It helps stakeholders to find administration wellness of short, medium and long term aims at annoyed expression. It does n’t merely measure future things. Decisions are given immediate and do non look on long term.

It helps the administration to be certain that the strategic enforced lucifer with targeted ends.

Case 4: Decree: Metempsychosis of a car manufacturer

In June 2004 Sergio Marchionne was appointed to the station of CEO at Fiat. At the clip of his assignment Fiat was in deep problem and he was brought in to turn it about. Using the information in the instance survey undertake a SWOT analysis of Fiat at the clip of his assignment and propose how a SWOT analysis in 2008 may differ.

SWOT analysis is a strategic planning method used to measure the Strengths, Weaknesses, Opportunities, and Threats involved in a undertaking or in a concern venture. It involves stipulating the aim of the concern venture or undertaking and placing the internal and external factors that are favorable and unfavorable to accomplish that aim. “ ”


In 2004 decree has strong trade name acknowledgment in Europe. They use to bring forth most glamourous autos, and were a elephantine mock up of a bantam auto and the new decree 500. But besides they used to bring forth different type of auto theoretical accounts, which, a decree, Alfa { was known for lighter, faster, more nimble vehicles } and lancia, which raised its trading net income from ? 291m to a‚¬ 803m. While in 2008 Fiat better its engineering by being a first car manufacturer to offer diesel engines that comply with so called euro 5 fuel criterions, and new coevals of gasoline engines called Muitiar { fuel efficiency auto } .


In 2004 decree used to do excessively many ugly autos. They thought they had right to make whatever they wanted. But besides the direction construction was hapless, which, caused groups turnover. While in 2008 decree had hapless public presentation in Russia market.


In 2004 Fiat had chance of turning in a auto industry due to the addition in demand. While in 2008, the chance was the joint venture with IVECO and SAIC in China and TATA in India and they expects to do 3.5 million vehicles.


In 2004 there were bing rivals. While in 2008, there were still more rivals even-though the market was detonating but really competitory. But another menace was new European Union functions on C dioxide emanations in to coerce, but Fiat expect its fleet to hold lower norm emanations than any rival.

Case 5: The Profitability of UK retail merchants.

Are British supermarkets more profitable than their European and US opposite numbers?

Net income is the positive addition from an investing or concern operation after deducting for all disbursals.

Net income a‚? Total revere a‚‹ Total cost

Are British supermarket are non more profitable than their European and US counterpart due to the undermentioned ground:

a ) Lower mean return on capital employed. In UK when you invest your money to any type of concern you must anticipate the return on that concern. The higher capital investing demands serving by higher borders. The higher the ROCE the better. ( It indicates the good net income on concern operations ) . The image shows that, UK companies has lower ROSE ( 16 % ) compared to Europeans and US companies, which have ROSE of 20 % up to 24 %

B ) High Building Cost:

The cost of purchasing sites and of edifice superstores are well higher in UK than in other states. So, when the doomed is higher it means the companies wo n’t gain a good net income. As I said earlier on, to gain a good net income, you must do certain that your entire gross is greater plenty than entire cost

C ) Ownership of British houses is public. UK groups are all publically owned, while many of the Continental houses are still private in Europe and US. It ‘s hard to declare higher or lower net income in public ownership. For illustration the state ( UK ) can gain net income of billion lbs, but in fact it ‘s non from one company, it ‘s accumulated from the full supermarket. But besides, even in the distribution of net income, it ‘s ever demotivated and demoralized workers due to the unjust distribution of net income.

Case Study 6: The Novotel Value Chain

What are Novotel ‘s competitory advantages?

Competitive advantage is an advantage over rivals gained by offering consumers greater value, either by agencies of lower monetary values or by supplying greater benefits and service that justifies higher monetary values. “ ”

In order to derive competitory advantage Michael Porter suggested four generic concern schemes that could be adopted. These schemes tell the company on how to distinguish its merchandises or services and the extent to which the range of a concern ‘s activities are narrow versus wide.

The four schemes are in the figure below:

One of the competitory advantages of Novotel is Partnership programmes. They use supplier partnership programmes for buying and acquisition efficiencies. When company purchase in majority they normally enjoy price reduction from the provider. But besides partnership programmes help Novotel on presenting both graduated table and range economic systems.

Another competitory advantage of Novotel is Management procedures. Novotel have multi skilled workers who are flexible to work at any section. Their purpose of holding multi skilling workers is to keep or enable the standardized degrees to be delivered at all locations worldwide. But besides they have good cognition of retaining their staffs. They provide developing for the staffs and organize them to work as a squad which addition efficiency and effectivity of the Novotel.

But, besides Layout of the hotel is another competitory advantage of Novotel.

Novotel use the layout of their hotel to take the client instantly to the welcoming/friendly public infinites of saloon and eating house, which are ever on the entry floor next to response.



How confident are you that the ‘Personal Pair ‘ Project will alter the distinction and low cost trade off?

Differentiation is a concern scheme in which a company tries to derive a competitory advantage by supplying a alone merchandise or service, or supplying a alone trade name of client service. While Low cost trade off is state of affairs under which a house offers a comparatively low monetary value to excite demand and addition market portion.

Am so confident that the Personal Pair Project will alter the distinction and low cost trade off due to the undermentioned facts ;

Advocates of the Personal Pair undertaking envisioned a niche that would let Levi ‘s to avoid competition against the low cost high volume manufacturers. Market research revealed that lone one-fourth of adult female were genuinely happy with the tantrum of their denims, and the company hoped to pull higher income clients who would be willing to pay a small excess for a perfect tantrum.

Another fact is a mass customization theoretical account that could take down costs every bit good as supply the distinction advantage since the re-engineered procedure is frequently more efficient one time new engineerings are applied. For illustration, the mass customization theoretical account, which operates on the pull goaded attack of holding the client thrust the production procedure, would take down distribution costs and stock lists of unsold merchandises.

Besides, Personal Pair was a jeans customization plan made possible through a joint venture with Custom Clothing Technology Corporation ( CCTC ) . CCTC approached Levi Strauss, described the potency of its engineering and suggested together, the two companies could come in the mass customization sphere.

Another fact is, The Personal Pair reflected a signifier of collaborative customization. The attack helps clients who find the array of picks in the market place overwhelming, to contract down their specific demands. The company enters into a duologue with clients to assist them understand what they need, and is so able to supply specialised merchandises that meet that specific demand. Collaborative customizers are able to maintain stock lists of finished merchandises at a lower limit, which brings new merchandises to market faster. That is, they manufacture merchandises in a “ just-in-time ” manner to react to specific client petitions.

CASE STUDY: 8 the virgin group

What are the chief issues confronting the Virgin Group and how should they be tackled?

Virgin group was founded in 1970 under Richard Branson. The group was covering with mail-order concern and developed as a private company in music publication and retailing. The company was floated in stock exchange in 1986with turnover of ? 250m.

In 2002, Virgin group become one of the UK ‘s largest private companies with one-year turnover estimated at ? 5bn. The concern was virgin Atlantic ( International Airline concern ) . The group consist over 200 concerns straddling three continentals and including fiscal services, planes, trains, film and music shops.

The followers are the chief issues confronting virgin group ;


This is the 1 of the issue that virgin group face in trains operation. Cross state and West seashore lines were runing franchises. They both failed to run the concern and its trains failed to get on clip.

Virgin group should subscribe good contract with their franchisees and to do certain they making good in the industry.

Large trade name name.

Virgin group has reputable trade name. 96 % of UK consumers were cognizant of trade name and 95 % were able to call Richard Branson as a laminitis. All the clients enjoy a nice message on Atlantic flight which is core concern of virgin group. So for those clients who have a bad experience with one of the merchandise lines may destruct others.

So, virgin group should make and set a batch of attempts to maintain the trade name up.

Too broad Portfolio.

The company contained over 200 concerns over three continents. So, the act of running excessively many concerns may raise the issues like communicating and motive jobs. It ‘s cumbrous to pass on effectual for all concern points over three continents, but besides to actuate employees who are far from you.

So, company should hold really competent directors in all concerns for all three continents who will work good with the employees.

Leave a Reply

Your email address will not be published. Required fields are marked *