Case Study: Starbucks Social Media Marketing Strategy

With more than 17000 Starbucks stores in the world, spanning throughout 49 countries  , and with significantly higher prices than the market average, the Starbucks enterprise is a tale of success, and a direct result of a genius social marketing and branding strategy. At the core of the business their signature fresh, dark-roasted, full-flavored coffee brews and beans consorting with specialty teas and blended beverages, the special ambiance, its principles and its sense of connection and community; it’s all about creating the ‘Starbucks Experience’, which is the soul of the business, a place to gather, talk and enjoy the allures of their savory brews, a ‘Third Place’ in people’s lives between home and work, for customers to feel perfectly comfortable and imbued with familiarity. Connecting and engaging with the customers is a very important aspect of Starbucks philosophy and one of the reasons why they have been so successful in Continue reading

Bank Rate or Discount Rate – Bank Rate Policy Defined

Bank Rate or Discount Rate  is one of the earliest methods of general credit control developed by the Bank of England and it was considered an effective method till the outbreak of First World War. After the war, Bank of England developed other methods as it found the bank rate policy to be not so effective. The essence of discount rate policy that commercial banks approach the central bank whenever they are in need of financial accommodation. They get the necessary assistance by re-discounting the eligible bills and other securities. The Central bank would re-discount these instruments at a rate which directly determines the volume of funds which the commercial banks can get through this method of financial accommodation. A revision of this re-discounting rate by the central bank will necessitate the commercial banks to change their rate of discounting of eligible bills and securities.  As a result the businessmen Continue reading

Transnational Corporations (TNCs) and Foreign Direct Investment (FDI) Decisions

Knowledge-intensive production, technological change, shrinking economic  space greater openness have also changed the context for Transnational Corporations (TNCs). There are new  opportunities and pressures to  utilize  them. The opening of markets creates  new geographical space for TNCs to expand in and access tangible and intangible  resources. It also permits wider choice in the methods firms can use (FDI, trade,  licensing, subcontracting, franchising, partnering and so on) to operate in  different locations. At the same time, advances in information, communication  and transportation technologies, as well as in managerial and organizational  methods, facilitate the trans-nationalization  of many firms, including SMEs. The  combination of better access to resources and a better ability to  organize  production  trans-nationally  increases the pressure on firms to  utilize  new  opportunities, lest their competitors do so first and gain a competitive advantage.  Competition is everywhere – there are fewer and fewer profit reservations and  market niches that remain protected Continue reading

Business Valuation Methods

The cardinal rule of business valuation is, that the value of something cannot  stated in an abstract form; all that can be stated is the value of a thing in a particular place, at a particular time, in particular circumstances. Valuation of the target requires valuation of the totality of the incremental cash  flows and earnings.  Valuation of a target is based on expectations of both the magnitude and the timing of  realization  of the anticipated benefits. Where, these benefits are difficult to forecast, the valuation of the target is not precise. This exposes the bidder to valuation risk. The degree of this risk depends on the quality of information available to the bidder, which, in turn, depends upon whether the target is a private  or a public company, whether the bid is hostile or friendly, the time spent in preparing the bid and the pre-acquisition audit of the target. Continue reading

Case Study: Failure of Vodafone in Japan

Vodafone Group plc is a British multinational mobile network operator, its main headquarter is in Newbury, England. It is the world’s largest mobile telecommunication network company, based on revenue, its market value on the UK stock exchange is about £80.2 billion as of August 2010, making it Britain’s third largest company. It is currently operating in 31 countries and has partner networks in a further 40 countries. In 2001 Vodafone announced to get into Japanese market with acquiring AT&T’s 10% economic interest in Japan Telecom Co., Ltd. (“Japan Telecom”) for a cash consideration of US$1.35 billion ( £0.93 billion). Japan Telecom was one of Japan’s leading telecommunications companies and parent of the fast growing mobile network, J-Phone Communications Co., Ltd., and its regional wireless operating companies (collectively known as “the J-Phone Group”). After this deal, Vodafone held 25% of Japan Telecom’s equity. The reason for Vodafone going into Japanese market Continue reading

Running out of money? 5 ways to save your business!

As a business owner, money is an important part! Not only do you need to pay your employees, cover all your costs, but of course you want to have some money for yourself too. Especially with sudden extra expenses, having enough money can be a big problem. Long term, the lack of money could even ruin the dream of having your own business; that’s why we want to share with you some tips and tricks on how to earn extra money for your business. Always expect extra expenses! Especially for someone who is just starting out with their business, money can be tight. There is no room for extra expenses! Unfortunately, emergencies can happen, or you suddenly have costs that you didn’t calculate into your budget, but what now? Just throw away your dream and all the invested resources? No, we have some essential and valuable tips and tricks for Continue reading