SEagrams

BUSM35436 Business Instances

Case Evaluation Template

IDENTITY:

DAY TIME & TIME of CLASS: (eg. Mon 3pm)

Marks Guideline

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Key Facts of the watch case (no analysis)

-Who is a decision developer? (Remember: in analyzing a case you have to place yourself in the position in the decision machine and try to find out what YOU would carry out in his/her position). -maximum 5 key facts that sum it up the case.

-Ian Swanson, leader of Financing at Seagrams greater Customer left with the task to determine prices levels to recommend based upon the new transfer duty plan.

-For Chivas Regal, passing upon 100% in the duty savings, could result in 25% increase of volume. Transferring 75% of savings could increase this by10%. To get standard cognac. Passing totally of work savings, could increase quantities by 10%

-The access of " look-a-likes” Japanese people whiskey offers obtained a moderate sum of the market and is increasingly popular towards " price conscious” consumers

-Hypermarkets have been a favourable form of distribution funnel by corporations and have expanded control over thirty percent of the area sales

-New laws that applies to all kinds of spirits that could potentially improve margins for Seagrams and overtake rivals based on what decision Ian makes

a few

Problem(s) Declaration

-What is the main problem(s) or opportunity(s) that you (as decision maker) must cope with? -How immediate and how essential is this concern and for what reason?

Based on the new import obligation regime, which pricing alternative he ought to choose to be able to ensure Seagram's market share and profitability boosts in Taiwan.

What decisions will need to he produce on charges levels? How would it effects Seagram's overall global operations?

Due to the fact that there is certainly an increasing quantity of " Price conscious” people in Taiwan, the threat of low priced alcohol such as Japanese people whiskey may lower Seagrams in sales volume and market share (Since Seagrams is definitely high priced). This is problems that must be addressed immediately.

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Problem(s) Evaluation

-What is the backdrop that has led to the problem(s)?

-What will be the key points the fact that decision machine must consider when finding out a solution? (eg. constraints that limit the possible alternatives or possibilities that could arise) -If a financial analysis is required, outline that in this section. -Perhaps a different format pertaining to analysis is far more appropriate? (eg. SWOT, INFESTATION, Porter's Five Forces).

Swot Examination for Seagrams

Strengths

-Seagrams is a globally known brand. Leading producer and marketer of premium mood in the world. -Wide range of product lines from super premium -- standard

-Decentralized structure. Distributed service centers in chinese suppliers, hong-kong and Taiwan to supply extra back office support internationally. -Premium and very premiums have demostrated dominance in markets

Disadvantages

-Seagrams will not own a production in the regular catergory -Pricing strategies happen to be slightly limited due to manufacturer image. " prestige” look -lack of investment directed toward understanding customer and market dynaamics Opportunities

-Could probably expand in standard catergory

-decrease on premise and liquor shops sales and focus on excitable markets -target price mindful consumers

-duty regime changes, can allow transfering in prices

Dangers

- Low brand loyalty

-entrance of domestic " look-alikes” and Japanese tequila - lowered advertising and promotion expenditures to meet profit targets

As a result of heavy drop in customer confidence, it really is clear that brand devotion is not strong and there raising price mindful consumer foundation rather than picture conscious consumers. Since Seagrams premiums can be heavily aimed towards brand image based consumers, they are burning off a lot market share and sales volume coming from " selling price conscious” consumers (who at the moment make up a lot of Taiwans current consumer base). Furthermore, home producers have been completely taking advantage of this...