COMM 3845 Final

Sherman Antitrust law

& Clayton Act: prevents horizontal mergers within the same industry (joint ventures usually fine bc temporary) --> laws in Japan also restrict anticompetitive/trust practices (ANTIMARKET COLLUSION)

Starbucks Corporation

(1971) American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world ahead of UK rival Costa Coffee, in 64 countries and territories, including United States, China, Canada, Japan, and United Kingdom. Founders: Jerry Baldwin, Zev Siegl, Gordon Bowker --> international expansion from America is always relatively late --> doesn't care about market cannibalization, for example Nau-Gibson and corner shops because caters to customers who want coffee NOW & FAST --> does well in countries like England but NOT AUSTRIA, where it is custom to sit down and drink your coffee casually --> strange that it has done well in France --> withdrew from Israel, no local partner --> very successful in Japan but fading bc always new products in Japn

Railroad industry

--> 19th century modern development --> needed goods to go from Chicago to NYC so made individual segments a whole (broad companies) --> coordination necessary to avoid wreckage --> CEOs became responsible for organization --> led to 1st organizational charts

Structure Change

--> always change when new CEO is hired (18 MONTHS AFTER IS MOST COMMON POINT FOR CHANGE) --> industry leaders hire CEOs from w/i --> #2 and #3 cos. hire CEOs outside of company --> NEW CEO exempt from performance reviews for 3-4 years bc of implementation of RESTRUCTURING = retirement money

Market Cannibalization

--> when co. takes away from sales of another store of their own ex. Starbucks & Starbucks -->The negative impact of a company's new product on the sales performance of its existing related products. Rather than appealing to a new segment of the market and increasing market share, the new product appeals to the company's current market, resulting in reduced sales and market share for the existing product. -->Another common case of cannibalization is when companies, particularly retail companies, open sites too close to each other, in effect, competing for the same customers. The potential for cannibalization is often discussed when considering companies with many outlets in an area, such as Starbucks or McDonald's.

Vertical Integration

-->(arrangement in which the supply chain of a company is owned by that company) When a company expands its business into areas that are at different points on the same production path, such as when a manufacturer owns its supplier and/or distributor. Vertical integration can help companies reduce costs and improve efficiency by decreasing transportation expenses and reducing turnaround time, among other advantages. However, sometimes it is more effective for a company to rely on the expertise and economies of scale of other vendors rather than be vertically integrated. --> can go both backward or forward (owning suppliers of raw materials for efficiency & cost saving v. owning retailer that sells directly to customers)

4) Geographic International structure

-->based on business languages --> has to be at least 10% sales of co. business CEO exec. vice. pres. North America--Latin America--Asia--(Europe, Middle East, Africa) 1) Problem Latin America: how to divide? some speak English, some French, some Spanish, Portuguese, etc. [different languages w/i one division] 2) Problem Asia: richest country Japan and poorest countries in the world ; as well as 3/4 of the world's population in one international division ; also might not have experience there 3) Problem (Eur, Middle East, Africa): does Russia belong to Eur or Asia?-->usually Eur ; Why is Africa paired with Eur?-->many tribal languages that divide but business language is based on colonialism after all, ex. English in South Africa ; different cultures throughout all of Africa 4) What about Australia & New Zealand? paired with Asia or with North America? ex. this is all Proctor & Gamble's business structure

Lukoil-Mobil

-->oil resources after fall of Communism were attractive --> Mobil obtained Lukoil after $10 billion investment for pipeline -->Lukoil= $0, but inside contracts with Russian gov't --> power asymmetry = Mobil didn't want to pay a 2nd $10 billion for oil "already paid for"--so they were acquired by Exxon instead (loss of independence, where as British Petroleum is still independent HQ=London)

Alfred DuPont Chandler

-->structure matches strategy His book Strategy and Structure: Chapters in the History of the Industrial Enterprise (1962) examined the organization of E.I. du Pont de Nemours and Company, Standard Oil of New Jersey, General Motors, and Sears, Roebuck and Co. He found that managerial organization developed in response to the corporation's business strategy. deceased Harvard Business School professor; How did American cos. get to be so large & successful? relationship with STRUCTURE --> examine Std Oil (HQ in NYC, moved from Cleveland... but he examined NJ), DuPont (Delaware), GM (Detroit) , and Sears (Illinois) -->interesting connection to GM bc DuPont owned some GM shares

4. $$$$ Specialized Modes

1) BOT= build, operate, and transfer ex. build special cement plant and teach company how it works, then move to another country for operation -->HARD bed each new market is different

3 significances:

1) change & restructuring & switch problems 2) "follow the leader" 3) how to match international co. structure to international strategy

IMPROVEMENT

1) talk to people = engagement 2) suggestion box --> Americans rarely use them bc we consider our jobs sources of money only, where as Japanese love them bc their interests overlap with the co. they work for (not just about money)

Channel

1. The system of intermediaries between the producers, suppliers, consumers, etcetera, for the movement of a good or service. (how product gets from manufacturer to consumer) --> in a new country, can have large differences in CHANNEL LENGTH ex. UK ice cream -- New England failed attempt (of Birds Eye-Wall's?) In November 2006, private equity fund Permira acquired the BirdsEye (New Jersey) and Iglo businesses from Unilever (british-dutch) for €1.7bn, under the name BirdsEye Iglo Group ex. Birds Eye frozen vegetables = Birds Eye is an American international brand of frozen foods[1] owned by parent company Pinnacle Foods in North America and by private equity group Permira in Europe. (sold from Unilever) -- England knows itself better ?

Wall's

1922 Wall's is an ice cream brand owned by the Anglo-Dutch food and personal care conglomerate Unilever. Originating as an independent food brand in the United Kingdom, Wall's is now part of the Heartbrand global frozen dessert subsidiary of Unilever, used in China, Hong Kong, Indonesia, Pakistan, Malaysia,[2] Mauritius, Philippines, Qatar, Saudi Arabia, Singapore, Thailand, Turkey, United Arab Emirates, Vietnam and the United Kingdom. --> its distribution set it apart from competitors ex. freezer exclusivity= gave free freezers to shops or corners shops only for its product, and therefore blocked competition -->Unilever continues to use the brand for ice cream in the UK. Whilst remaining (2006) the market leader in the UK for individual hand-held products such as Cornetto and Magnum, and value-added multi-portion products designed to be eaten at home, such as Viennetta, the Wall's brand faces severe competition from the major supermarket brands and to a lesser extent from Nestlé (absorbing the Rowntree's and Lyons Maid brands) and Mars spin-off ice cream products [Unilever sold off Birds Eye]

Teflon

1938: By Roy Plunkett for DuPont SUCCESSFUL R&D FOR DOMESTIC CO. PTFE is used as a non-stick coating for pans and other cookware. It is very non-reactive, partly because of the strength of carbon-fluorine bonds --> slipperiness in pans --> but also for the outside of tanks + bulletproff vests --> TOUGHEST MANMADE SUBSTANCE

SWOT analysis

A SWOT analysis (alternatively SWOT matrix) is a structured planning method used to evaluate the STRENGTHS, WEAKNESSES, OPPORTUNITIES, and THREATS, (for ENTRANCE into a market) involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective.

6. $$$$$$ Joint Venture/ Strategic Alliances

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it. However, the venture is its own entity, separate and apart from the participants' other business interests. --> to keep up with modern world --> proliferation of JVs became hare to look after from the outside; difficult for companies to manage bc focus was taken away from individual cos. businesses ex. Telecomm (Oakland, Cali) filed bankruptcy, too many creditors

Forward Integration

A business strategy that involves a form of vertical integration whereby activities are expanded to include control of the direct distribution of its products. ex. retailer control

1) Functional Structure

A functional structure is one of the most common organizational structures. Under this structure, the organization groups employees according to a specialized or similar set of roles or tasks. While functional structures operate well in stable environments where business strategies are less inclined to changes or dynamism, the level of bureaucracy makes it difficult for organizations to respond to changes in the market quickly. ex. CEO functional purchasing manager--manufacturing--marketing--finishing--international [ all underneath CEO in one line] --> Strengths: productivity & specialization --> Weaknesses: unit coordination & management issues --> INTERNATIONAL BUSINESS not added to functional structure until accorded for at least 10% sales of co. business

Royalty

A royalty payment is made to the legal owner of a property, patent, copyrighted work or franchise by those who wish to make use of it for the purposes of generating revenue or other such desirable activities.

Warren Buffet

American business magnate, investor and philanthropist. He was the most successful investor of the 20th century. Buffett is the chairman, CEO and largest shareholder of Berkshire Hathaway (American multinational conglomerate holding company headquartered in Omaha, Nebraska, United States, that oversees and manages a number of subsidiary companies) --> 5,000 people invited to his summit in Kansas, a consistent success

DuPont

American chemical company that was founded in July 1802 as a gunpowder mill by Éleuthère Irénée du Pont. Wilmington, Delaware. --> NO forward integration as sells chemicals in bulk --> Backward Vertical Integration: 1981, DuPont acquired Conoco Inc. (ACQUISITION), a major American oil and gas producing company that gave it a secure source of petroleum feedstocks needed for the manufacturing of many of its fiber and plastics products. (concern over oil sources, but was too different from chemical business SO... -->In 1999, DuPont sold all of its shares of Conoco --> [bought Conoco when shares were high and sold when they were low--so lost lots of sales; as you should buy low, sell high]

Compensation

American idea of motivation; but the correlation between the two is NOT well documented

Abraham Maslow

American psychologist who was best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization --> looked at the MOTIVATIONS of people --> Maslow's Motivation of Workers Pyramid: Self-actualization self-esteem (these first two are higher-order) social = middle tier security physiological (last two are lower order) -->his research began at MIT: safety engineers thought that if you design the workplace accordingly... -->irreducible # of workplace accidents ex. traffic-tram system and individual cars + trucks; theory that drivers got tired by the end of their shift --> SAFETY BELL CURVE: NOT bc they were tired; early part of shift: fresher; BUT MIDDAY: crashes bc of tediousness + couldn't see the "end" of the day + could get overtime pay for filing crash report forms

5. $$$$$ FDI

An investment made by a company or entity based in one country, into a company or entity based in another country. -->Foreign direct investments (taking a majority stake) differ substantially from indirect investments (hands-off/passive) such as portfolio flows, wherein overseas institutions invest in equities listed on a nation's stock exchange. -->The investing company may make its overseas investment in a number of ways - either by setting up a subsidiary or associate company in the foreign country, by acquiring shares of an overseas company, or through a merger or joint venture. -->The accepted threshold for a foreign direct investment relationship, as defined by the OECD, is 10%. That is, the foreign investor must own at least 10% or more of the voting stock or ordinary shares of the investee company. --> 2 KINDS: 1) BROWN FIELD= buy already existing company or manufacturer (somewhat like M&A) OR 2) GREEN FIELD= go to a country + build what you need to create a product, ex. Marlboro cigarette plant in Russia

3. $$$ Franchising

Arrangement where one party (the franchiser) grants another party (the franchisee) the right to use its trademark or trade-name as well as certain business systems and processes, to produce and market a good or service according to certain specifications. The franchisee usually pays a one-time franchise fee plus a percentage of sales revenue as royalty, and gains (1) immediate name recognition, (2) tried and tested products, (3) standard building design and décor, (4) detailed techniques in running and promoting the business, (5) training of employees, and (6) ongoing help in promoting and upgrading of the products. The franchiser gains rapid expansion of business and earnings at minimum capital outlay. --> DIFFERENT FROM LICENSING: selling not just right to use brand name and make product, but also the BUSINESS MODEL ex. for cheese production --> supplied expertise: consultants for franchisees

Unilever

British-Dutch multinational consumer goods company co-headquartered in Rotterdam, Netherlands, and London, United Kingdom. Its products include food, beverages, cleaning agents and personal care products. It is the world's third-largest consumer goods company measured by 2012 revenue, after Procter & Gamble and Nestlé. --> always #2 to P&G SO they hired new CEO & restructured by selling off chemical section of their global product design structure to Imperial Chemical Industries (ICI), a British chemical company [which they previously used to ensure their consumer product lines] --> "Follow the leader" --> owns Ben&Jerry's and SlimFast

Cereal Partners Worldwide

Cereal Partners Worldwide S.A. is a joint venture between General Mills and Nestlé, established in 1991 to produce breakfast cereals. The company is headquartered in Lausanne, Switzerland, and markets cereals in more than 130 countries (except for the U.S. and Canada, where General Mills markets the cereals directly). --> one of the most successful strategic alliances in the long-term worldwide --> focused on once specific industry task: cereal --> created to oppose #1 Kellogg's --> muesli granola --> American expansion to Europe (however Kellogg's is still #1 in Europe for cereal... but the JV still exists... why?)

1. $ Direct Export

Direct exports represent the most basic mode of exporting made by a (holding) company, capitalizing on economies of scale in production concentrated in the home country and affording better control over distribution. Direct export works the best if the volumes are small. Large volumes of export may trigger protectionism. The main characteristic of direct exports entry model is that there are no intermediaries. -->cheapest mode -->can keep costs low by using capacity + materials in own country -->way of tip-toeing into another country (seeing if contain load of goods sells there) --> Problem w/ container load: 1. Who is going to sell it? (You need an export/import agent OR firm... so you must narrow down the list from 1) industry conventions, for example, if a company present at the convention is successful in a particular country and find out WHO THEIR agent is in that country... OR 2) a list from state department) --> ex. Reisen manufactured in Germany and sold in U.S. in Chicago

4 P's

E. Jerome McCarthy proposed a four Ps classification in 1960 1) Price: what you assign for a good in a particular mkt, likely to be different from mkt to mkt internationally--> find price @ MAX REVENUE; maybe if prince drops, sales will go up, BUT net revenue will go down (gross revenue - costs) 2) Product=varied from place to place 3) Promotion= not the same thing as marketing, subcategory under it, advertising in a variety of different ways ex. coupons 4) Place= distribution channels, etc.--but also different pricing point @ CVS vs. Nordstrom so rubs off on what products and what price diff. places can carry and charge

Exxon Mobil Corp.

Exxon Mobil Corp., or ExxonMobil, is an American multinational oil and gas corporation headquartered in Irving, Texas, United States. It is a direct descendant of John D. Rockefeller's Standard Oil company, and was formed on November 30, 1999, by the merger of Exxon and Mobil (formerly Standard Oil of New Jersey and Standard Oil of New York). The world's 5th largest company by revenue --> now communicating with Lukoil about arctic oil

Firestone Tire Co.

Ford's safety problems turned out to be Firestone tires so the co. was sold to Japanese Bridgestone Co., giving Ford large cash reserves, which would later help them during the recession as they could keep their independence from the American gov't through insulation unlike Chrysler

Éleuthère Irénée du Pont

French refugee recruited by TJ to build up gunpowder in US in order to clear/blow up trees to create farming fields --> member of religious minority Huguenots & promised religious freedom in the U.S. -->The company was started at the Eleutherian Mills, on the Brandywine Creek, near Wilmington, Delaware --> Earth berming: Earth is piled up against exterior walls and packed, sloping down away from the house. [used this so that explosions would only reach buildings aimed @] --> family-run until they hired professional managers but family members still on the BOARD --> business cycle for explosives: during war, wealth accumulation (but outbreak of PEACE during 1900s meant there was a need for R&D of peaceful uses for explosives --> Partially nitrated cellulose has found uses as a plastic film and in inks and wood coatings & NYLON for stockings)

General Mills

General Mills, Inc. is an American multinational manufacturer and marketer of branded consumer foods sold through retail stores. Its headquartered in the Minneapolis suburb of Golden Valley, Minnesota. (where grain used for products) --> segmented the brand of Cheerios Original to "sub-brands" (product differentiation/ market segmentation) --> cheerios production technology is somewhat of a trade secret, but the real value is the BRAND --> LARGEST COMPETITOR: Kellogg's who has always been #1 (HQ = Battle Creek, Michigan)

Proctor & Gamble

HQ = Cincinnati, Ohio founded by William Procter and James Gamble, both from the United Kingdom. Its products include pet foods, cleaning agents, and personal care products. -->make consumer goods like Head + Shoulders, Tide, etc. called "consumer nondurables" so repeat customers will buy products again -->5% of the world only for 50% of its profits

Nov. 2, 1999 millennial Ford Motor Co. commercial

HQ = Dearborn, Michigan world looking forward to 2000, but turned out to be a non-event --> MOST EXPENSIVE adv. purchase by a single co. (2 min vs. the common 30 seconds of today) outside of Super Bowl commercials -->Ford's strategy of the 90s: buy different brands of products like Land Rover, Jaguar, Mercury, Mazda, Aston Martin, Volvo, etc., in order to compete with GM= so wanted to put on a commercial that would show people that all of these brands belonged to Ford --> extraordinarily exp: transportation costs to all the different places --> 1)Location + 2)messages/emotions (to bring people together, as that's what transportation does) but featured someone dying, then someone pregnant after, with you through all phases of life... NOT GOOD FOR FORD, people don't like to be jerked around --> had to sell Jaguar, etc. + safety problems such as SUV rollover later --> FAILURE: LARGE BRAND IDENTIFICATION --> SUCCESS: LARGE CASH RESERVES

Howard Schultz

Howard D. Schultz (born July 19, 1953) is an American businessman. He is best known as the chairman and CEO of Starbucks. --> one of the most famous business leaders in the U.S. -->When he was the Director of Marketing, he bought the name + graphic of Starbucks from a group in Verona, Italy but changed the bare-breasted two-tailed mermaid (Siren) to a less sexy anatomically incorrect version for the U.S. --> servant leader

Häagen-Dazs

Häagen-Dazs /ˈhɑːɡəndɑːs/ is an ice cream brand, established by Reuben and Rose Mattus in the Bronx, New York, in 1961. --> Häagen-Dazs was bought by Pillsbury in 1983. --> Grand Met bought Pillsbury in 1989 (Grand Metropolitan plc was a property conglomerate headquartered in England. The company was listed on the London Stock Exchange and was a constituent of the FTSE 100 Index until it merged with Guinness plc to form Diageo in 1997.) -->General Mills bought Pillsbury in 2001.In the United States and Canada, Häagen-Dazs products are produced by Nestlé subsidiary Dreyer's, which acquired the rights as part of the General Mills-Pillsbury (Minneapolis) deal. The brand name is still owned by General Mills but is licensed to Nestlé in the US and Canada. --> sold & distributed only in highest places, celeb endorsements, ads in fancy magazines = high quality, secret --> classic status

Big Five personality traits OCEAN

In psychology, the Big Five personality traits are five broad domains or dimensions of personality that are used to describe human personality, the five-factor model (FFM)[1] The five factors are openness, conscientiousness, extraversion, agreeableness, and neuroticism (or emotional stability). --> however, sometimes disagreeable people point out the critical things that are missing from a job project -->conscientiousness: sometimes people will be late for meetings because more easy-going -->all sorts of levels of neuroticism and even mental stability --> sometimes introverts are necessary to just listen --> openness can lead to over-sharing

Locus of Control

Julian B. Rotter in 1954 people's lives are controlled by different things, ex. hard work, fate, chance -->eastern cultures: big in luck as in gambling in China -->western cultures: often don't believe in fate --> look at plane crash: Swiss were very methodical/analytical and took out manuel that shows likely problems, how to fix, steps to take (FOLLOW THE RULES) ; Americans however were more likely to skip steps bc MORE DESCRIPTIVE and LESS ANALYTICAL, ex. military aviators act intuitively ; and Indonesia- Muslim prayer, so divine being in control instead of people themselves (fate)

JIT

Just in time (JIT) is a production strategy that strives to improve a business' return on investment by reducing in-process inventory and associated carrying costs. --> holding less inventory in the facility -->An inventory strategy companies employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs.

Kellogg's

Kellogg's (also Kellogg, Kellogg Company and Kellogg's of Battle Creek) is an American multinational food manufacturing company headquartered in Battle Creek, Michigan, United States. Kellogg's produces cereal and convenience foods, --> health food --> convenience food --> market segmentation: special K; Kashi

Kit Kat

Kit Kat is a chocolate-covered wafer biscuit bar confection that was created by Rowntree's of York, England, and is now produced globally by Nestlé (which acquired Rowntree in 1988) with the exception of the United States where it is made under license by H.B. Reese Candy Company, a division of The Hershey Company. --> double candy sales of the U.S. in Britain --> chocolate sales increase with distance from the equator, where colder ex. Norway --> MANUFACTURING FACILITY: YORK, ENGLAND --> LICENSEE has a good budget for their own product configuration ex. size --> agreement from Rowntree--> Nestlé --> Hershey

Philips

Koninklijke Philips N.V. (Royal Philips, commonly known as Philips) is a Dutch diversified technology company headquartered in Amsterdam with primary divisions focused in the areas of Healthcare, Consumer Lifestyle and Lighting. It was founded in Eindhoven in 1891 by Gerard Philips and his father Frederik. It is one of the largest electronics companies in the world --> much more pressure to globalize when small country like the Netherlands --> like Nestlé

Value Chain

Michael Porter A high-level model of how businesses receive raw materials as input, add value to the raw materials through various processes, and sell finished products to customers. Value-chain analysis looks at every step a business goes through, from raw materials to the eventual end-user. The goal is to deliver maximum value for the least possible total cost. (design, production, marketing, distribution)

Horizontal Integration

M&A The acquisition of additional business activities that are at the same level of the value chain in similar or different industries. This can be achieved by internal or external expansion. Because the different firms are involved in the same stage of production, horizontal integration allows them to share resources at that level. If the products offered by the companies are the same or similar, it is a merger of competitors. If all of the producers of a particular good or service in a given market were to merge, it would result in the creation of a monopoly.Horizontal integration offers several advantages, including favorable economies of scale, economies of scope (multiple goods), increased market power and reduction in the costs associated with international trade by operating in foreign markets. Horizontal integration is in contrast to vertical integration, where firms expand into different activities, known as upstream or downstream activities.

Mars Co.

Mars, Inc. is an American global manufacturer of confectionery, pet food, and other food products -->Headquartered in McLean, unincorporated Fairfax County, Virginia, US --> Divorce: Mars Food UK Limited is the name of the British branch of Mars, Inc. (Slough, Berkshire, England)

Normative Decision-Making (more rational)

Normative = selecting from alternatives + evaluation -->Total Quality Management (consists of organization-wide efforts to install and make a permanent climate in which an organization continuously improves its ability to deliver high-quality products and services to customers), ex. Japanese took this strategy from Americans after WWII and went from bad quality--> great quality --> now reverse: GM trying to use NUMMI strategic alliance to learn from its Toyota partners and Japanese leaders to catch up ex. locus of control in Swiss plane crashes

Market Saturation

Point at which a market is no longer generating new demand for a firm's products, due to competition, decreased need, etc.-->When the amount of product provided in a market has been maximized in the current state of the marketplace. At the point of saturation, further growth can only be achieved through product improvements, market share gains or a rise in overall consumer demand. --> to increase market share, would cost more money than you would make

Pricing point

Price points are prices at which demand for a given product is supposed to stay relatively high. ex. Old navy = low price pt ex. Gap = middle ex. Banana Republic = high --> customer service progression goes down w/ higher price

Pringles

Pringles is a brand of potato and wheat-based stackable snack chips owned by the Kellogg Company. --> manufactured like a potato-product (all the same shape makes them freaky) -->They were originally developed by Procter & Gamble (P&G), who first sold the product in 1967. P&G sold the brand to Kellogg in 2012.

Ted Levitt & Globalization & Promotion

professor at Harvard Business School one of the early ones to come up w/ GLOBALIZATION in the early 1980s he loved to dance to ABBA and he found out ABBA was Swedish but performed their songs in English -->illustration to him of how among young adults common language of English -->identified mkt segments from one country to another ex. age groups OR income levels and use one kind of PROMOTIONAL SCHEME FOR THAT SEGMENT

Reynolds Wrap Aluminum Foil

Reynolds Group Holdings is an American packaging company (HQ Illinois) with its roots in the Reynolds Metals Company, which was the second largest aluminum company in the United States, and the third largest in the world. The company became well known for the consumer product Reynolds Wrap as well as being a leader in developing and promoting new uses for aluminum --> Direct Export failure example --> all wrap was NOT calibrated to the metric scale (ex. square inches) --> China has agrarian economy (not much refrigeration or leftovers so no use for wrap) --> if a product has contact with food, must have "made on" date, but U.S. does MDY as opposed to DMY in European dating and YMD in Chinese dating (led to 2 failed shipments to China as incorrect dates) --> only in households considered wealthy, imported goods of English language considered signs of wealth

Lukoil

Russia's second largest oil company and its second largest producer of oil as of 2005. Headquartered in Moscow, Lukoil is the second largest public company (next to ExxonMobil) in terms of proven oil and gas reserves

Wallace Hume Carothers

SUCCESSFUL R&D FOR DOMESTIC CO. 1935: American chemist, inventor and the leader of organic chemistry at DuPont, credited with the invention of NYLON, which became used for women's stockings as wool stockings were too hot and itchy and cotton stockings wouldn't hold shape --> glass rod experiment, stuck to the polymer or cooked up chemicals (created nylon fabric) --> nylon could also shift back to wartime for parachutes

P&G switch to 5) Global Product Structure

Since July 1, 1999, P&G has eliminated its 4 business units above in the international geographic structure & created FIVE GLOBAL BUSINESS UNITS BASED ON ITS PRODUCT LINES CEO exec VP beauty care--healthcare--food/beverage--paper--laundry/cleaning --> first switch to woman exec VP in 1999 because beauty care ; however Gillette purchased for men --> paper products: include paper towels, toilet paper, DIAPERS (adult diapers being the fastest growing so exec VP of paper products is a euphemism for that) SIGNIFICANCE: --> new CEO and exec VP means RESTRUCTURING and its costs + firing + new way of working + new connections + SOMETIMES, serial restructuring or lots of new CEOs

Tang

Tang is an orange-flavored drink. Originally formulated by General Foods Corporation food scientist William A. Mitchell[1] in 1957, it was first marketed in powdered form in 1959.[2] The Tang brand is owned by Mondelēz International (HQ=Deerfield, Illinois). Sales of Tang were poor until NASA used it on John Glenn's Mercury flight,[3] and subsequent Gemini missions. Since then, it was closely associated with the U.S. manned spaceflight program, leading to the misconception that Tang was invented for the space program -->combined it with their own recycled waste products -->only drank by 8 year-old boys who want to be astronauts

Target

Target Corporation is an American retailing (sales directly to consumers) company, founded in 1902 and headquartered in Minneapolis, Minnesota. It is the second-largest discount retailer in the United States, Walmart being the largest. founded by George Dayton. -->in trouble bc tried to expand to Canada, which is a knee-jerk reaction of American cos. reaching mkt saturation -->tried to introduce new frozen & fresh foods -->but now closing all stores north of the border (doesn't understand Canadian environment)

Star Alliance

The Star Alliance is the world's largest global airline alliance, headquartered in Frankfurt am Main, Germany, and led by current CEO Mark Schwab. It was founded on May 14, 1997, with its name and emblem representing the five founding airlines (Scandinavian Airlines, Thai Airways International, Air Canada, Lufthansa (german), and United Airlines (chicago)) --> strategic alliance to capture all of your flight connections --> collusive bc all same industry + price discussions, but not dealt with yet

Marketing

The activities of a company associated with buying and selling a product or service. It includes advertising, selling and delivering products to people

Value added

The enhancement a company gives its product or service before offering the product to customers.

Stability and Growth Pact (SGP) is an agreement, among the 28 Member states of the European Union

The fiscal discipline is ensured by the SGP by requiring each Member State, to implement a fiscal policy aiming for the country to stay within the limits on government deficit (3% of GDP) and debt (60% of GDP); and in case of having a debt level above 60% it should each year decline with a satisfactory pace towards a level below. As outlined by the "preventive arm" regulation, all EU member states are each year obliged to submit a SGP compliance report for the scrutiny and evaluation of the European Commission and the Council of Ministers, that will present the country's expected fiscal development for the current and subsequent three years.

Strategic Management

The systematic analysis of the factors associated with customers and competitors (the external environment) and the organization itself (the internal environment) to provide the basis for maintaining optimum management practices--(formulation and implementation of the major goals and initiatives taken by a company's top management on behalf of owners). The objective of strategic management is to achieve better alignment of corporate policies and strategic priorities. -->the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives

Porter Analysis : Five-forces analysis

This analysis is associated with its principal innovator Michael E. Porter of Harvard Business School. --> part of competitive advantage Porter five forces analysis is a framework to analyze level of competition within an industry and business strategy development. It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of an Industry. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition", in which available profits for all firms are driven to normal profit. -->Porter's five forces include - three forces from 'horizontal' competition: the threat of substitute products or services, the threat of established rivals, and the threat of new entrants; and two forces from 'vertical' competition: the bargaining power of suppliers and the bargaining power of customers. -->Porter developed his Five Forces analysis in reaction to the then-popular SWOT analysis, which he found unrigorous and ad hoc.

U.S. v. Europe international expansion

U.S. = country is so large that we haven't had to globalize most companies Europe = small countries, cos. reach mkt saturation quickly ex. Proctor & Gamble sells more than 50% of its products within North America but there are only 400 million people in NA as opposed to 8 billion in the whole world (so 5% of the world only for 50% of its profits) ex. Nestlé of Vevey, Switzerland (started from evaporated, condensed milk for orphans whose mothers died in childbirth and couldn't drink mammalian milk, "failure to thrive") sells only 3% of its products to North America (much more globalized)

Proliferation of choices & advertising

Where as companies wanted to save money by creating demand for same product around the world, Advertising Agencies tried to resist GLOBAL MARKETING continues with different advertising schemes across countries for the same product ex. hero/worship commercial "Mean Joe Greene" of the Steelers for coca-cola in the U.S., but soccer players everywhere else ex. switch with different brand, Troy Polamalu of the Steelers for COKE ZERO --> CONCEPT that counts --> ppl want same products @ different times --> COMPLEXITY (lack of standardization) ex. marketing message could be the same across countries but played during different months ex. Ricola (swiss throat lozenge) uses Heidi the goat girl saving the coughing person, best in fall season b4 winter when people get sick but diff months in Northern v. Southern hemispheres

2. $$ Licensing

Written contract under which the owner of a copyright, know how, patent, servicemark, trademark, or other intellectual property, allows a licensee to use, make, or sell copies of the original. Such agreements usually limit the scope or field of the licensee, and specify whether the license is exclusive or non-exclusive, and whether the licensee will pay royalties or some other consideration in exchange. While licensing agreements are mainly used in commercialization of a technology, they are also used by franchisers to promote sales of goods and services. --> INCENTIVIZATION --> low manufacturing costs, BUT sharing of revenue b/w licensee + firm = have to share profits --> enforcement of contract/ license agreement --> Territory: boundaries of the system (where can the licensee sell geographically) --> Royalty agreement= licensee w/ 10% royalty rate, encourage licensee to sell as much as possible for this reason --> Term: duration of agreement = want long-term but often these ventures are short (because of whether there are opportunities to continue and if the relationships & pay rates would have to CHANGE) --> requirement of promotion for product all the way up --> more expensive because requires lawyer --> question of quality --> Advantage: not your own production costs --> Disadvantage: some products cannot specify their country of origin

7) Global Matrix Structure

Y-axis: product differentiation X-axis: Geographic allocation So the exec VPs or managing directors would be the intersection b/w a region + a product -->Advantage: allows for customization -->Disadvantage: more complicated overlap b/w areas OR 2 bosses, one for an area and one for a product --> became possible to go beyond 2-dimensional matrix modeling with functional axis added (but no co. adopted 3-dimensional matrix--"caught in the matrix")

Zara

Zara (Spanish: [ˈθaɾa]) is a Spanish clothing and accessories retailer HQ in Arteixo, Galicia, SPAIN and founded in 1975 by Amancio Ortega and Rosalía Mera. It is the flagship chain store of the INDITEX group, the world's largest apparel retailer. The fashion group also owns brands such as Massimo Dutti, Pull and Bear, Uterqüe, Stradivarius, Oysho and Bershka. -->middle price point like Gap, but their high-end price store is more like Banana Republic -->Lack of advertisement (zero) is also in contrast to direct competitors such as Uniqlo and United Colors of Benetton.

Howard Johnson's

a chain of hotels, motels and restaurants located primarily throughout the United States and Canada. Founded by Howard Johnson, it was the largest restaurant chain in the U.S. throughout the 1960s and 1970s, with more than 1,000 combined company owned and franchised outlets -->Headquarters: Parsippany, New Jersey, U.S. --> (1925) small corner pharmacy in Wollaston, a neighborhood in Quincy, Massachusetts--> Regardless, the new recipe made the ice cream more flavorful due to an increased content of butterfat. Eventually Johnson came up with 28 flavors of ice cream. Johnson is quoted as saying, "I thought I had every flavor in the world. That '28' (flavors of ice cream) became my trademark."

Supply Chain

a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer. Supply chain activities involve the transformation of natural resources, raw materials, and components into a finished product that is delivered to the end customer. In sophisticated supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable. Supply chains link value chains.

Bartle Bogle Hegarty

an advertising agency. Founded in 1982 by British ad men John Bartle, Nigel Bogle, and John Hegarty, the agency has produced campaigns for many of the world's most illustrious brands. BBH has offices in London, New York, São Paulo, Singapore, Shanghai, Mumbai and Los Angeles -->"the medium is the message" = phrase coined by Marshall McLuhan meaning that the form of a medium embeds itself in the message, creating a symbiotic relationship = but BBH said NO, THE MESSAGE IS THE MEDIUM (2013)

3) Geographic Structure

broken up by region CEO reg A--reg B--etc. ex. U.S. co. like southwest, midatlantic, etc. --> don't sell fur coats in Miami; so sell different products in different regions ex. State Farm Insurance Company= the midatlantic regional HQ are in Charlottesville (as opposed to Baltimore, Richmond, or any other large city); while the corporate HQ are in Bloomington, Illinois -->Pattern: smaller city choice allows lower operating costs of doing business such as lower taxes --> INTERNATIONAL BUSINESS not added to geographical structure until accorded for at least 10% sales of co. business

2) Product Structure

business units by product division CEO A--B--C--D ex. GM= Cadillac, Chevrolet, Buick... GMC, Alpheon, Holden, HSV, Opel, Vauxhall, Wuling, Baojun, Jie Fang, UzDaewoo [no longer Pontiac or Olds Mobile] & a separate sector for TRUCKS... but now they have a simpler structure after losing Pontiac, etc.

Expectation of leaders/managers

dramatic variation across the map about how much leaders required to know about job --> charismatic leadership = extraordinarily appealing bc of personality, whether bad or good, ex. Winston Churchill and the force of his words/cause; ex. Adolf Hitler; ex. Warren Buffet, ex. the Pope --> servant leadership = regards himself as someone who thrives off the work of others + needs to motivate them/dedicate credit to them (By comparison, the servant-leader shares power, puts the needs of others first and helps people develop and perform as highly as possible.) ex. Howard Schultz, workers' welfare + benefits = best leader is one you are unaware of

Organizational Structure

company structure ought to match its STRATEGY

6) Global Functional Design Structure

ex. British Airways CEO Director Mkg & Operations--Dir. Public Affairs--Dir. Engineering--etc. -->11 people reporting to chairman/CEO -->U.S. nomenclature of chairman/CEO expanded to non-American companies like British companies as opposed to "managing director" bc of inferiority complex --> BUT THIS IS A FLAT STRUCTURE: problematic bc all directors reporting to CEO and CEO should only be responsible for strategy, appraisal, etc. = human resources nightmare

Descriptive Decision-Making (more behavioral)

for things that need to be done quicker ex. get on battlefield (not going to identify choices, going to say "take over") ex. locus of control in American plane crashes

Ben & Jerry's

founded 1978 Ben & Jerry's Homemade Holdings Inc, trading as Ben & Jerry's, is an American dairy company, founded in Burlington, Vermont that operates internationally, with interests in food processing, it is a division of the Anglo-Dutch Unilever conglomerate, that manufactures ice cream, frozen yogurt, sorbet, and ice cream novelty products. --> very philanthropic

Leona Helmsley

hotel chain Leona Mindy Roberts Helmsley (July 4, 1920 - August 20, 2007) was an American businesswoman. She was known for her flamboyant personality and had a reputation for tyrannical behavior that earned her the nickname Queen of Mean. Following allegations by unpaid contractors that work done on her home had been charged to her company, she was investigated and convicted of federal income tax evasion and other crimes in 1989. Although having initially received a sentence of 16 years, Helmsley was required to serve only 19 months in prison and two months under house arrest. -->millionaire; left $ to support her dog when she died --> Japanese think we are crazy

Cointreau

is a brand of triple sec (an orange-flavoured liqueur) produced in Saint-Barthélemy-d'Anjou, France. In early 2008, burlesque entertainer Dita Von Teese became the new face of Cointreau's "Be Cointreauversial" advertising and marketing campaign,[3] a campaign created in 2003[4] by the New York advertising agency KraftWorks.[5]

Market segmentation

is a marketing strategy which involves dividing a broad target market into subsets of consumers, businesses, or countries who have, or are perceived to have, common needs, interests, and priorities, and then designing and implementing strategies to target them. ex. toothpaste

behavior culture

is individual is collective

Convergence

mkts around the world are getting more similar --> used to divide mkts into country stylos ex. U.S., France, UK, Japan --> but NOW, look for similar patterns from place to place and form SEGMENTS (ex. global geographic design structures & market segmentation) --> but 30 years later, the world is no longer that converged--> PEOPLE DON'T LIKE THE SAME THING --> PROLIFERATION OF CHOICES -->however, the dream was to save $$$$$ by creating a demand for one product across several countries OR BY STANDARDIZATION ex. Mentos= no actors + no dialogue; so can use same commercial in multiple countries to save money -->; however, people want same products at different times

André Laurent

observed + documented that if you are a Frenchman working for a German co., you actually become more French bc of the EXPECTATIONS of those you work with that you are in fact French --> culture becomes more PRONOUNCED (it's not a small world after all)

Victory in Europe Day, generally known as V-E Day

public holiday celebrated on 8 May 1945 (7 May in Commonwealth realms) to mark the formal acceptance by the Allies of World War II of Nazi Germany's unconditional surrender of its armed forces.[1] It thus marked the end of World War II in Europe. --> Truman got rid of "rationing" after VE day, supply & demand drove mkt decisions instead --> but rationing in the UK cotinued until 1954--socialist gov't didn't trust the MARKET

Marks & Spencer

reached market saturation; international expansion attempt failed bc market isn't the same elsewhere ex. ferry to Dover, France

Operations Management

refers to the administration of business practices to create the highest level of efficiency possible within an organization. Operations management is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization

Economies of Scale

the greater the quantity of a good produced, the lower the per-unit fixed cost because these costs are shared over a larger number of goods. -->reduction in long-run average total cost and marginal costs

the third place

the idea that people our age & slightly older need a neutral place that is neither WORK nor HOME -->Ray Oldenburg: third place (or third space) is the social surroundings separate from the two usual social environments of home ("first place") and the workplace ("second place"). Examples of third places would be environments such as cafes, clubs or parks --> ex. in comedies and sitcoms --> ex. bars, but bc alcohol was not good for women and men to meet for business, COFFEE SHOP HAS REPLACED THE BAR AS THIS NEUTRAL PLACE ex. Friends & Kelsey Grammar show Cheers

Synergy

the interaction or cooperation of two or more organizations, substances, or other agents to produce a combined effect greater than the sum of their separate effects -->put A & B together to get something greater than just A + B --> often cost-reduction is hidden behind the term: ex. firing many people during merger

Market Share

the portion of a market controlled by a particular company or product

Stress

unhealthy + healthy ways of coping variable, unpredictable U.S. is not highest in stress Japan: daily life stress + workplace stress

Hawthorne Works Hawthorne Effect

was a large factory complex of the Western Electric Company in Cicero, Illinois. Named after the original name of the town, Hawthorne, it opened in 1905 and operated until 1983 OR JOLIET? -->well-known for the industrial studies held there in the 1920s and the Hawthorne effect --> LARGEST FACILITY OF THE WESTERN ELECTRIC COMPANY (Joliet) --> managed bell system (The Bell System was the system of companies, led by the Bell Telephone Company and subsequently by AT&T, which provided telephone services to much of the United States and Canada from 1877 to 1984,) --> mechanical telephone age --> divided space up into rooms instead of open space -->gender segregation: men-hard labor; women-dexterity motor skills jobs -->lots of immigrant groups who couldn't communicate across each other --> thought productivity would increase with increased light so MIT turned on the lights; but when they turned them off again, productivity still increased = this was because they felt that MANAGEMENT was paying attention to them so they changed their behavior/more motivated = Hawthorne effect

Erie Railroad

was a railroad that operated in the northeastern United States, originally connecting New York City with Lake Erie. It expanded west to Chicago with its 1941 merger with the former Atlantic and Great Western Railroad, also known as the New York Pennsylvania and Ohio Railroad (NYPANO RR) --> connected Great Lakes to the Atlantic Ocean and was the 1st organization railroad merger

New United Motor Manufacturing, Inc. (NUMMI)

was an automobile manufacturing company in Fremont, California, jointly owned by General Motors (American multinational corporation headquartered in Detroit, Michigan) and Toyota (Japanese automotive manufacturer headquartered in Toyota, Aichi, Japan) that opened in 1984 and closed in 2010. On October 27, 2010, it reopened as a 100% Tesla Motors-owned production facility, known as the Tesla Factory. -->designed to produce small cars in Americas -->voluntary export restraint (NTBT) on Japanese cars to U.S., so NUMMI was pushed to make this happen -->Toyota wanted to open plants in U.S., but workers didn't want to work in the dangerous workplace [UAW= United Automobile Workers Union] -->GM lost money for every small car they sold, reputation for poor quality, no pricing value --> SO, GM interested in Japanese model of business called (JIT= just-in-time manufacturing) but GM's quality search is still ongoing bc the Japanese don't stand still or let American co's catch up

Constellation Analysis

web education research identifying critical people who INFLUENCE overall classroom behavior --> found that in the men's room, the most influential people were siting in the back row by the windows (thought this was bc they could CONTROL the windows, and therefore their situations) -->erroneous: most influential guys were those who wanted to look out the window TO SEE THE GIRLS

"Follow the leader"

when particular companies in an industry have the same structure dominating that industry ex. P&G and Colgate-Palmolive Company [HQ- NYC] is an American multinational consumer products company focused on the production, distribution and provision of household, health care and personal products, such as soaps, detergents, and oral hygiene products (including toothpaste and toothbrushes). --> Unilever