Test 3 Case Study Questions

Test 3 Case Study Questions - Essay Cover All Cases Ch...

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Essay- Cover All Cases Ch. 14-19 1. National Office Machines a. Which part of the 4 P’s do they get by joining with a Japanese company (joint venture)? – C i. Place/distribution - because helps sell in Japan more than they have been, increase sales, by merging can take advantage of the Japanese traditional distribution channels that the Japanese use. 1. Japanese have very complex distribution channels that are hard to enter. Emphasis on smaller stores vs. big box stores. ii. Price – manufacturing the product in Japan would decrease importing and middlemen costs. 1. Penetration pricing strategy. Want to be present in the market for a long time. Variable costs would be too low and skimming is too high. This allows you to cover all your costs and still make a profit. Already an established infrastructure and middle class. However customer is a select base b. What issues would you experience in the Joint venture and sending expatriates over to train? i. Issues – expatriates 1. Overcoming reluctance a. How long with they be over there for – was is the length intermediary time 2. Reducing early returns a. Making sure they know what they are coming back to. Job security 3. Successful repatriation – provide personal career planning ii. Negotiation issues – Japanese are very relationship oriented. Don’t put everything out on the table at once. The steps of the negotiation process 1. Nontask related 2. Task related 3. Persuasion 4. Agreement c. What type of compensation plan would you implement? i. Compensation plan – sing you are required to hire all young, college-trained Japanese nationals the best compensation plan would be a commission based salary with no job security (believe that the Japanese system is unfair because promotions are based on age and seniority). So if the young recruit is very capable they would make more working for NOM than a Japanese company. 1. Have two compensation plans. One for the new recruits and the old employees can take that plan as well or they can choose to continue on the compensation plan they
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currently have but slowing implement incentives such as vacations. Also have evaluations every few years and inform current employees that if they do not meet standards they will be reassigned or demoted and new young recruits would be fired if they didn’t their standards. a. What are the advertising and media constraints? – C i. Availability – too few advertising mediums or too many. ii. Cost – media prices are susceptible to negotiation. Depends on agents bargaining ability 1. Competitors of Fair & Lovely did not have as much money to compete with HLL on the advertising level. iii.
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Test 3 Case Study Questions - Essay Cover All Cases Ch...

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