Thomas Alva Edison established Edison Electric Light Company in 1878. General Electric Company, known as and commonly abbreviated simply to GE, was formed in 1892, as a result of a merger of the competing companies Edison General Electric Company and the Thomson-Houston Electric Company. Having its headquarters in United States, GE is a major technology conglomerate and is the only company listed in the Dow Jones Industrial Index today that was also included in the original index of 1896. GE is a big multinational corporation and has a diversified infrastructure. Its business activities span a wide range of areas from aircraft engines, industrial products, water processing products, power generation to financial services, medical diagnostic imaging, security technology, consumer financing, and television programming. GE operates in more than 100 countries and employs about 300,000 people worldwide. In smaller and less developed countries, it operates through distributorship or dealership channel by giving Continue reading
Management Case Studies
Management case studies are real-life examples of issues and problems found in particular workplaces or business organisations. Case study assignments give the opportunity to relate theoretical concepts to practical situations. Most case studies are written in such a way that the reader takes the place of the manager whose responsibility is to make decisions to help solve the problem. In almost all case studies, a decision must be made, although that decision might be to leave the situation as it is and do nothing.
Case Study of Avon: From Direct Selling to Direct Marketing
For years, Avon lady was a fixture in American neighborhoods. Selling door-to-door built Avon into the world’s largest manufacturer of beauty products. Avon operates in 135 countries and besides the cosmetics it also sells jewelry, home furnishings, and babycare products. Avon pioneered the idea of hiring housewives for direct selling cosmetics in the neighbourhood. But in 1980s, as millions of women began to work outside the home, the cosmetics maker’s pool of customers and sales representatives dwindled, and its sales faltered. By 1985, its profits were half what they had been in 1979. Consumer research showed that many women thought Avon’s make-up was “stodgy,” its gifts products overpriced, and its jewelry old-fashioned. So the company created a more contemporary line of jewelry, lowered the prices of its giftware to offer more items under $15, and expanded its lipstick and nail polish colours. On the selling side, recruiting sales people had Continue reading
Case Study: Business Model Innovation and Customer-Driven Innovation at Dell
Dell Computers have been the leaders in computer world for more than two decades. Dell has been empowering countries, communities, customers and people everywhere to use technology to realize their dreams and possiblities. Since the first Dell PC was introduced in 1986, Dell has continued to shape the industry by breaking new ground and pioneering critical developments in home, small business and enterprise computing. The Dell business connects with more than 5.4 billion customers every day with earnings of $14.9 billion comprising a net profit of $584 million. Dell’s continuous research and development (R&D) have proven efforts to reach the globe, which is driven by some of the industry’s foremost product designers and engineers. The core of Dell computers is always been in innovation approach with a commitment to deliver new and better solutions and technologies that fulfills and meets demands and customer needs. They accept Partnerships with varied industry Continue reading
Case Study of McDonalds: Strategy Formulation in a Declining Business
McDonald’s Corporation or rather the CEO, Mr. Greenberg realized there was a major problem arising within their corporation when their earnings declined in the late 1990s till the early 2000s. Their net income not only shrunk to 17%, but also suffered from slow sales growth below the industry average during that period of time. Although their market share was well above their competitors such as Burger King and Wendy’s nevertheless there was a slow share growth. Therefore the question of what caused the Big Mac Attack is raised. It is observed that there was a growing trend of customers moving to non hamburger meals which is being offered by indirect competitors such as KFC, Subway (dominating the market with more than 13,200 US outlets) and Pizza Hut as an alternative choice. Sandwiches and a variety of microwaveable meals are being offered at supermarkets, convenience stores and even at petrol stations. Continue reading
Case Study: Bre-X Scandal – The $6 Billion Gold Fraud
The Bre-X scandal is the perfect example of a true fraud that results from dishonest and deceitful business ethics, morals, and principles. The Bre-X scandal is considered to be the biggest mining and gold scandal of all time, and one of the biggest stock scandals in Canadian history. The Bre-X scandal significantly damaged the Canadian Financial Markets and caused substantial reductions in consumer buying and trading confidence, which caused a considerable amount of damage to the Canadian economy. Subsequent to the collapse of Bre-X in 1997, its stocks and shares became worthless and left investors with significant losses. The Bre-X scandal began in March 1993, subsequent to the company purchasing a large mining site in Busang, Indonesia (on Borneo). Subsequent to Bre-X purchasing the mining site in Busang, it boasted that it was sitting on the largest known gold deposit in the world. In October 1995, Bre-X announced that it Continue reading
Case Study: Marketing Strategy of Walt Disney Company
What started out to be nothing more than a dream of Walter Elias Disney, with the release of Alice in Wonderland, a series of short film comedies, the beginning of a world renowned global corporation Walt Disney had evolved. Walter and his brother Roy were equal partners in what was originally the Disney Brothers Cartoon Studio in 1923 and with the suggestion of Roy, it soon was renamed The Walt Disney Studio. After four years of success and profit, Walter and Roy experienced a business set back when they found their film distributor M.J. Winkler had stolen their cartoon characters and animators in attempt to undercut them. With the help from their chief and loyal animator, Ub Iwerks, Walt created Mortimer Mouse, which was renamed Mickey Mouse by his wife. The first cartoon with synchronized sound was released at the Colony Theater in New York, November 18, 1928. Walt Disney Continue reading