Wal-Mart, the mega-retailer, was founded by Sam Walton in 1962 in Bentonville, Arkansas. It started with $700,000 in its first year and scaled up to $5.4 million by 1974. The retailer continues to grow while others struggled with inflation and recessions. In 1980, Wal-Mart became the youngest US retailer to exceed $1 billion in net sales. During the 1980s, Wal-Mart began to further expand and thus pushing some retailers to closing some of their regional stores. The company engaged in diversification by creating membership-stores such as Sam’s Club, smaller, more conventional pharmacy/grocery stores called Neighborhood Markets, and finally Supercenters with a wide selection of consumer goods. And, in 1991, Wal-Mart became the world’s largest retailer. Wal-Mart had been able to implement its Every Day Low Price strategy by focusing on 1) developing a sophisticated logistics system with heavy information technology investments, 2) efficient distribution system by placing retail stores close Continue reading
Business Analysis Case
Porter’s Five Forces Analysis of Red Bull
An Austrian Company created Red Bull back in 1987. Red Bull is an energy drink and is also the worlds most popular energy drink, having sold 4.6 billion cans in 2011. The drink was first sold in Thailand and then modified to suit the tastes of people in the United States. A single can of Red Bull has the same amount of as a cup of coffee. Depending on the country, the level of caffeine in a can of Red Bill can vary, as some countries have restrictions on how much caffeine is allowed in drinks. The product is marketed through advertising events such as sport team ownerships, celebrity endorsements, and music. Unfortunately, Red Bull is not market approved in France, Denmark, and Norway. But Red Bull is legal in 164 countries around the world. Due to the potential health risks associated with the drink, Red Bull has been heavily Continue reading
Case Study: The Business Strategy of Apple
Apple Inc is a multinational American company that design and sells computer software, consumer gadgets and personal computers. It was co-founded by Steve Jobs, Steve Wozniak and Ronald Wayne. Apple Inc is well-known for being innovative as they kept on producing new innovations from the first Apple computer Macintosh to the more recent iPhone and iPad series. Today Apple Inc. is very well known in the world because of their advanced technology in products such as iPods, iPhone, Macbooks, Apple TV and other professional software. All the high tech products provide consumers with a better living standard in many different ways. Moreover, Apple Inc’s dominant position in the global market has changed the trend of consumer usage of electronic appliances such as in virtual communication. People will never need to carry multiple devices where each one only offers a handful of functions. Furthermore, Apple also created a substantial value in Continue reading
History and Background of Qantas Airlines
The Qantas story is of persistence, timing, and determination of how one fledgling airline has endured through the lore and linage of a storied British Colony established in 1788. Great Britain was facing a serious prison overcrowding situation in the mid to late 1780’s. The British Parliament decided to reduce this overcrowding by taking the non-violent, skilled convicts, and use their time incarcerated to establish a new colony. It had been estimated that to establish and maintain a colony took about seven to ten years. With prisoners identified and promised their freedom and a parcel of land in the new colony for their efforts, the ships set sail for Australia. A colony established by convicts began in 1787 and continued through 1790 where over 2000 prisoners were sent to the Sydney Shores. It was not until 1793 that the first free settlers arrived in Australia. For a few years, the Continue reading
Corporate Restructuring Exercises by Procter & Gamble (P&G)
The case discusses the ‘Organization 2005’ program; a six-year long organizational restructuring exercise conducted by the US based Procter & Gamble (P&G), global leader in the fast moving consumer goods industry. The case examines in detail, the important elements of the restructuring program including changing the organizational structure, standardizing the work processes and revamping the corporate culture. The case elaborates on the mistakes committed by Durk Jager, the erstwhile CEO of P&G and examines the reasons as to why Organization 2005 program did not deliver the desired results. Finally, the case discusses how Alan George Lafley, the new CEO, accelerated the initiatives under the Organization 2005 program and revived P&G’s financial performance. Issues Gain insight into the common causes that contribute to steady decline over a period of time in the performance of a large multi-product multi-national company of high repute. Introduction The US based Procter and Gamble (P&G), one Continue reading
Case Study on Apple: Understanding the Real Innovation Behind the iPhone
Innovation is a field of study that is simply just a new method, idea or device. However, it is also often regarded as the application of better answers that are meeting unarticulated needs, new requirements or any already existing market needs. Inside the information and communication technology sector, the mobile phone industry has become a very innovative segment. Technical advancements and new product proliferation have molded this industry into an extremely dynamic one. This has happened even after the market shares are extremely concentrated in the hands of a few giants in the industry. Innovation is the core of every successful product, organization or new venture. Apple Inc. is no exception to that. From their iPod to their Apple Newton to iPhone, Apple, Inc. from the beginning itself have provided the pomp and performance. The iPhone has transformed the mobile phone business completely, along with the internet economy and society Continue reading