Tuesday, April 23, 2019
Case Analysis (Global Management) Essay Example | Topics and Well Written Essays - 3000 words
Case Analysis (Global Management) - Essay ExampleInstead of attempting to over-reach the follows total capacity, seeking opportunities to maximize its current market position would be the most appropriate. wherefore is this? Chabros established a agonistical pricing form that was aligned with an acceptable operating margin. Coupled with this competitive advantage, Chabros also maintained a quality-focused customer relationship management process that included flexible wages terms and no requests for letters of credit. This was a sustainable strategy until the global economic recession in 2009 which radically reduced sales in certain subsidiaries. As a proven business model of CRM and the ability to establish very competitive pricing in key markets, the business would only bear adjustment of its current sales and marketing strategy to obtain the desired improvements in revenues. With the business evermore being at risk of changing currency values, market demand, and recessiona ry concerns, improving capacity would affix more expenditures to the operating budget that would not, likely, offset gains by simply improving output capacity for its mellowed revenue-producing production facilities.The most appropriate strategy for Chabros is to pursue a market penetration strategy to achieve its desired results. By maximizing capacity, increases in salaries and other associated labor would be highly detrimental to achieving market success. Chabros was considering entering the Moroccan market as a means of expanding its market presence, however there are factors that could seriously impede progress in finding rapid sales success there. Firstly, tariffs are exceedingly high on both products, especially veneer, which would have to translate into higher pricing in enunciate to offset these new costs. Add to this a value-added tax rate of 14 percent, it is not likely that the identical competitive advantages as related to pricing would work in this market when ha ving to incur all of these
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