Case 12: Rinnovar International
Executive summary:
Rinnovar International Inc. is currently seeking to buy established companies which will add new lines to its range of products. The strategy of expanding both in its domestic market, the United States, and overseas by buying companies rather than expanding through organic growth. This to make sure RI is able to compete strongly within five years in the prestige and mass-market cosmetics and skincare segments.
Introduction:
This report will look at four company profiles and rate them on how well they would be for an acquisition by Rinnovar International. After rating all four of the company profiles, one company can be selected as most suitable as an acquisition. The companies that are going to be evaluated in this report are: Mumbai Herbal Products, Hondo Beauty Products, Good Earth and Sheen Hair Products.
Findings:
Mumbai Herbal Products: profit in previous three years, but international sales have slowed down. Team needs to be strengthened. Company needs more exporting, marketing and financial expertise from outside the company to expand. Owners may not permit 100% ownership by Rinnovar, only 50/50 of equity and profits.
Hondo Beauty Products: supplier of bath and shower products to major cosmetic companies in Korea and to buyers in Asia, the US and Europe. Ultra-modern factory, exceptionally good quality control. Fast profit growth in the previous three years. Ownership 60% Kim, 40% private shareholders. The family would consider 100% ownership by Rinnovar International.
Good Earth: a wide range of mass-market products. Strong position in cosmetics and fragrances market. Is considered a highly ethical company. Expansion seems to be slowing down. Slow growth in profits. Heavy investment will affect future profits in short term. Fast growing market in Brazil.
Sheen Hair Products: many products with well-known brand names. All production is located in low-cost developing countries. No spectacular profit growth due to competition. 100% ownership possible for the right price. Strong brands managed to keep share in the US market.
Conclusion:
Hondo Beauty Products is the best-looking company profile for acquisition. There are more positive things about the profile than negative things. Rinnovar needs change in products, markets, distribution networks and production centres and an acquisition of Hondo Beauty Products offer all these needed changes.
Recommendations:
I would recommend an acquisition of HBP. Its provides everything that Rinnovar International is looking for. Such as, a wide range of cosmetics, bath, and shower products. they have buyers in Korea, China, the US, and Asia so they offer new markets. HBP has many partnerships with foreign companies. They also have an ultra-modern factory in Korea which is probably a lot cheaper than producing in the US. And lastly 100% ownership is possible after some hard negotiating with the Kim family.
Case 11: In range
The crisis took place after the company was receiving severe criticisms from politicians, academics, community leaders and the media. An article of the psychologist Carl Davis gave the company a lot of criticism. The crisis however will be prevented by holding a media conference. This will enable them to defend the company.
This is not a real crisis for the company. The company just has a violent product which is aimed at young people. They just need to keep the press is involved in the story but make sure the game doesn’t get banned. This isn’t a crisis but rather a product opportunity story. We should make sure that the media speak about the gender of the game. If the media would try to stop the game they would have acted differently. Then they would have gone behind the scenes, and would have written an article with less drama. Only then could it be used to ban the product.
The only thing the media has done so far is making the game even more exiting. If the company is clear and consistent they should be fine. The company needs to make sure that everyone knows what the real intention of the game is. If the company is ethically handling this right than it will never face a crisis. Communicating their core intentions will also help prevent other crises.
The Chief Executive of ExtremeAction US Linda Thomson and Bob Morgan Director Public Relations will give a little party where they tend to invite many people that have great influence. Actors, politicians, popular gamers. Of course, only people that are very positive about the game. They are a nice dinner with all their guests. They are even giving demos to 500 well known, 18-year-old gamers so they can spread even more positive feedback about the game.
Case 10: Hurrah Airlines
Writing report: summarising
Executive summary:
Telephone calls and voicemail messages come in often from customers who are unhappy with our services. Since we are a budget airline we must keep operating costs low in order to provide our passengers with cheap tickets.
Introduction:
This report will look at:
- the problems that customers have experienced
- recommendations for improving customer service
Findings:
- Helpline is not always available.
- Suitcase gone missing after flight. Complaints have not been investigated.
- Poor customer service. Mails and calls have not been answered or replied.
- Complaint about extra cost for a wheelchair for a disabled man.
- Daughter and mother didn’t get the seats on the plane that they pre-booked and paid for instead they got a bad seat with no cushion.
- Flight cancelled, no other later flight given to the person and no refund later.
Conclusion:
There are a lot of complaints about customer services. They are not managing the customer expectations. The consistent promises that they give should be delivered always.
Recommendations:
Four recommendations.
Advertising and sales need to reinforce their single message about what they will deliver. Staff needs to be trained so they can deliver a consistent service. The way they handle customer complaints, they need clear processes for dealing with customer complaints. The last thing they need to do is increase the capacity on their customers services desk.
Case 9: last throw of the dice
Summary agreements made:
Concordia’s investment will be repaid within 4 years. Profit will be split 50/50. ‘Friends forever’ will be the film title and Paris the film location. Before the production starts 50 % of the total investment will be paid. The other 50% will serve for production and post-production. Charles will be the director. Gunnar will write the film music.
A famous band will make a commercial for the film which will improve the benefits more than it will improve the costs. The camera assistants will be students to lower the cost because of the expensive professional cinematographer.
Two famous actors will play two of the main characters. Charles’ friend will play the third main character. Concordia will pay for all marketing costs and promotion costs.
Product placement will lower the costs and bring in money. The ending will be bitter sweet. Not one of the woman get what they want but their friendship will be better than ever. The final shot will be the friends’ arms around each other.
Case 8: motivating the sales team
Chief executive DKP
Leicester, England
Dear sir
I think I have come up with a solution for the problem in our sales department. I have several propositions that will help solve our revenue problem in the near future.
David Seymour should stay manager. He’s an excellent manager of a difficult team. He just needs more time to put things right. To do so David will need management training course which focuses on teambuilding so he can motivate his team.
Not only David needs to improve on motivating. The team members all need to improve, therefor they should also participate in teambuilding to grow closer to each other and learn how to cooperate.
All the team members have their own set off skills which are all added value to our sales team. If we can manage to let them work side by side we can manage to get our goal of 20% revenue more.
A department meeting should be held every two weeks. In this meeting, everyone should be encouraged to express their own opinion.
We shouldn’t however change the bonuses for the team members. We can encourage them to work at their best by rewarding them with extra’s if they earn it and praise them for their good work. Not punish them if the team doesn’t meet the targets. We could however encourage them to work good as a team to earn more credit and bonuses.
Dinner should be organised but David should do this different than he proposes. Diner should be held with all team members to create closer relationships. Them getting to know each other outside the office will help them bond and perform better inside the company.
Yours faithfully
Pieter De Muyt
Director
Case 7: S&L Selig and Lind
Introduction:
For our open Project Manager position four candidates have been selected to possibly fulfil this a position in Selig and Lind. All candidates have been will be evaluated on their various strengths, personality, job, and staff appraisal interviews.
Summary of shortlisted candidates:
- Manager 1, Ruth, Sales Manager in Central Europe.
- Workaholic, tough, fair, and ambitious
- Manager 2, Eduardo, manager in New business.
- Organised, a good listener, excellent interpersonal skills
- Manager 3, Kazuo, manager in Business Support Unit.
- Organising ability, getting the job done, loyalty to the company
- Manager 4, Martina, manager in the IT Department.
- Organiser, team leader, motivator, doer
Recommendation with reasons:
I have evaluated all four candidates and come up with Martina as my person favourite candidate.
Martina is a planner who is good at leading teams. Another great thing about Martina is that she gets the job done. She gets the job done because she is good at motivating her team.
Martina is young but her ambition makes up for that. She is trustworthy and responsible. When working she will organise people to get the work done. She does this by setting goals after consulting her team. She trusts them and gives them responsibility and authority to carry out he instructions.
Her priority is good since she always wants to make the right decisions as quickly possible. She makes sure that her team is motivated using bonuses. This system will work because everyone is motivated by money.
She makes sure that the things get done in time by getting an update from each of her employees weekly to check the progress that has been made.
All these reasons above combined make Martina an excellent candidate to fulfil a place in Selig and Lind as Project Manager.
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