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International Business Assignment Report Sample

Hammer Wines Adult Mixer Report Business Computing 1 (ISYS2059) Student Name: Student Number: Contact Number: Workshop Lecturer: Workshop Time: HW Adult Mixers Report Table of Contents 1. Executive Summary...................................................................................................... 3 2. Presentation of data collected..................................................................................4 2.1 Analysis of Mixer Drinks by State..........................................................................5 2.2 Analysis of Mixer Drinks by Retail Outlet...........................................................6 2.3 Analysis of Mixer Drinks by Flavour Preferred.................................................7 3. Discussion of Results................................................................................................... 9 3. Discussion of Results (cont'd)................................................................................10 4. Other Relevant Factors............................................................................................. 11 5. Summary of Report.................................................................................................... 12 6. Recommendations...................................................................................................... 13 HW Adult Mixers Report 1. Executive Summary The following report details the results of Hammer Wines' expansion into the nonalcoholic beverage market. The purpose of this report to is to analyse the results of a 4-month trial of 6 mixer drinks that were introduced into 4 of Hammer Wines' sales regions all throughout Australia. With the data gathered from this report, a more informed decision can be made whether pursuing this venture into a new market is a viable plan for Hammer Wines in the near future as well as the marketing potential and sales trends for each drink. HW Adult Mixers Report 2. Presentation of data collected To analyse the findings and interpret the raw data, the findings were segregated into three types of filters as shown below. Analysis 1 STATE: Analysis of which state is the most popular Analysis 2 RETAIL: Analysis of which retail outlet is the most popular Analysis 3 DRINKS: Analysis of which drink is most popular HW Adult Mixers Report 2.1 Analysis of Mixer Drinks by State Net Revenue Earned Net Revenue in AUD 2500000 2000000 1500000 1000000 500000 0 Chart 2.1.1 NSW QLD & NT VIC &TAS WA & SA HW Adult Mixers Report 2.2 Analysis of Mixer Drinks by Retail Outlet Analysis by Retail Outlet 700000 Number of Cans Sold 600000 500000 400000 300000 200000 100000 0 Chart 2.2.1 COLD CELLARS DAN MURPHY'S DUNCAN'S THIRSTY CAMEL HW Adult Mixers Report 2.3 Analysis of Mixer Drinks by Flavour Preferred Analysis of Mixer Flavour 2500000 2000000 1500000 1000000 500000 0 M AL D ON N IO S S PA Y RR E NB A CR Z IZ W M LI E FT SO K IN R D M Sum of Total Cans Sold Chart 2.3.1 GO AN T GH I L DE Y RR E B SP A R DA SO E PL I TR Sum of Net Revenue OT SH O SS E PR EX HW Adult Mixers Report Analysis of Mixer Flavours by Month 600000 500000 Number of Cans Sold 400000 300000 Sum of September Sum of October Sum of November Sum of December 200000 100000 0 M AL D ON ON SI S PA Z IZ W Y T RR E OF B S E AN M CR LI K IN R D M GO N A T GH I L DE Mixer Flavour Chart 2.3.2 DA SO Y RR E T B SP HO S A R E PL I TR O SS E PR EX HW Adult Mixers Report 3. Discussion of Results (Refer to Chart 2.1.1 above) Chart 2.1.1 shows the net revenue earned (deducting distribution costs from total revenue) from the sales of the drinks and the overall performance of all drinks over the 4 months. From the results, QLD & NT appears to be the most lucrative state while VIC & TAS performed the worst out of the 4. This is even more remarkable when during the period of trial, 4 retailers from VIC & TAS were chosen as part of the trial compared to 3 retailers from the rest of the other states. The reason for this may be that VIC & TAS are sparsely-populated states and is comparitively smaller in surface area than the other 3 areas. As such, the smaller potential market of consumers in VIC & TAS may obscure the data collected, if we investigate the data based on just the net revenue earned (Refer to Chart 2.2.1 above) Chart 2.2.1 shows the total number of cans sold during the 4-month period by each retailer, throughout all the states. We can see that DAN MURPHY'S is the most popular store by far in all the months, while DUNCAN'S is the least popular. Further analysis shows us that DAN MURPHY'S December total is much lesser compared to the previous 3 months, which remain relatively the equal. COLD CELLARS December total is much higher than the previous 3 months. THIRSTY CAMEL's all 4 months are quite consistent, varying between 370,000 cans to 460,000 cans. However, further analysis is required to understand the consumer's behaviour when it comes to selecting a outlet store. HW Adult Mixers Report 3. Discussion of Results (cont'd) (Refer to Chart 2.3.1 above) Chart 2.3.1 shows the results of the total number of cans sold, according to mixer flavour. Almond Passion is the most popular while Raspberry Soda is the least popular. Only 3 flavours (Mango Delight, Almond Passion, Triple Shot Expresso) manage to hit the 1,000,000 cans sold. (Refer to Chart 2.3.2 above) Chart 2.3.2 shows the sum of cans sold per months according to mixer flavour. We already know that Almond Passion is by the far the most popular drink. Cranberry Wizz did well during the first three months but dropped of remarkably for December. Lime Soft Drink was 2nd in cans sold for September but it dropped remarkably over the next three months. Mango Delight steadily increased in sales numbers over the 4-month period while Triple Shot Expresso exponentially grew in spurts (Sep - Oct) and (Nov - Dec) Raspberry Soda did not perform well at all, though it was consistent. HW Adult Mixers Report 4. Other Relevant Factors As mentioned above in the analysis of Chart 2.1.1, the seemingly low sales figures of the state of VIC & TAS could be due to the low population density and sparse population that resides in Tasmania. To better improve the analysis of the data, we should collect the 2015 population figures of all the states in our trial and compare the sales figures with reference to the population. Next, we cannot conclusively say for sure why a consumer prefers one drink to another without analysing the consumer at all. Together with a simple survey of a sample size of 1000 people per state, we can allocate our resources more justifiably to increase/decrease production in certain drinks that consumers like/do not like to increase the profits. Also, in the analysis, only 1 layer of analysis per chart is used (flavour, state, outlet, month and etc.) We can also use 2 layers of analysis e.g. Flavour & State to see which flavours are most popular in which state. This will allow Hammer Wines to make better informed decisions about the production and sales of the mixer drinks. HW Adult Mixers Report 5. Summary of Report In conclusion, the results of the trial have been very much positive, as we can see much revenue is being generated by the sales of these drinks, which goes to show that they are well-liked amongst of the citizens of Australia. This venture into a new market appears to be fruitful and the profits that have been made so far only justify this. There are certain adjustments to the distribution process and production changes that should be made in order to maximise the general profits that these drinks can make Hammer Wines. These adjustments will be discussed in the following section which covers recommendations to the production process. HW Adult Mixers Report 6. Recommendations After analysing the sales performance for Hammer Wines mixer drinks, the following recommendations should be undertaken. Recommendation 1 Hammer Wines should allocate >50% of its production of cans into DAN MURPHY'S outlet store. As shown in Chart 2.2.1, the bulk of Hammer Wines' sales comes from DAN MURPHY'S. Perhaps what could be done is to stop the distribution channels that go to DUNCAN'S and allocate them to DAN MURPHY'S since the sales of cans in DUNCAN'S have been overwhelmingly low. However, during the summer months (December to February), allocation of cans to COLD CELLARS should be more, as shown in the chart, the sum of cans sold in December for COLD CELLARS shot up. Recommendation 2 Hammer Wines should concentrate the bulk of production (at least 80%) on Almond Passion, Mango Delight and Triple Shot Expresso. Referring to Chart 2.3.2, these 3 drinks are by far the most popular out of the 6 mixers available. Hammer Wines should consider letting go of Raspberry Soda as the number of cans sold does not hit 100,000 in all 4 months. This will free up resources that can be used to increase production in other, more lucrative areas of production, such as the 3 drinks mentioned above. As such, profit will be maximised in the short-run. Before any firm decision is made on the future of production of certain flavours, I would also recommend to conduct a survey to enquire to the general public the various reasons as to why they prefer/dislike certain drinks and use those findings to make a more informed decision.

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INTRODUCTION

Globalization is the process of incorporation across world-space occurring from the interchange of views, ideas, products and other aspects of world and its culture. It generates interdependence of cultural and economic activities by advancing in telecommunications and transportation infrastructure including the rise of internet. The connectedness of the economies and cultures of world is one of the major reasons of globalization (Steger, 2010).

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The UK has one of the western world’s most open economies and the globalization process crucially impacts on the UK economy through various factors such as high levels of FDIs, rising import penetration level, increasing competitive advantage of UK companies, structural change in industries, increasing importance of human capital and the globalization ‘s impact on the UK companies (Steger, 2010). The report considers Morrisons as an international company and explains the globalization process and its impact over the company. Morrisons is the fourth largest supermarket chain in United Kingdom which is headquartered in West Yorkshire, England. The report explains how globalization and its forces from a number of aspects affect company in both negative and positive manner.

Globalization Process

Globalization is a change process. It consists of the flow of forces’ multitude; the capital flow, the technology flow, information, people, cultural, knowledge and ideas flow. The propositions of these flows act as a catalyst for social, economic cultural and political change. There are various dimensions of the process of globalization (Ritzer, 2010). They include:
1. Perspectives and definitions on Globalization
2. Free Trade Issues
3. Supranational Institutions
4. Non-Governmental Organizations
5. The Movement of Citizen against Globalization.

There are various impacts of process of globalization on Morisions and they have been discussed as under:

 

Competition:

Globalization will lead to increased competition which can also be related to product and service price and cost, technological adaptation, target market, quick production by companies, quick response etc. When a company manufactures with less cost and sells the product cheaper, it is able to increase its share of market.

Customers have a large mass of choices available in the market and this affects consumer behaviors. They want low prices and high quality. All these expectations need a reaction from Morrisons effectively, otherwise company’s sales will decrease and it will lose share in market and profit (Scholte, 2005). It must always be ready for price, service, product and preferences of customers because all of these are requirements of global market.

Exchange of Technology

One of the most thriving demonstrations of globalization is the new technology use by internationally oriented and entrepreneurial firms to exploit new opportunities of business. Procedures and internet and e-commerce hold particular potential for small and medium scale enterprises seeking to widen their engagement into new global markets. Thus competition increases for existing companies like Morrisons and this will affect the market share and sales of the company Finance Assignment Help.

Knowledge/Information transfer

 Information is the most valuable yet expensive factor of production in the present environment. Information or knowledge can be easily exchanged and transferred from one place to another. If Morrisons have a chance to use information and knowledge then it means that it can adjust to this international changing. This issue is as same as with the transfer of technology issue in the international markets (Pang, 2006). The quick changing of the market requires also rapid knowledge transfer and efficient using of that information and knowledge. Thus, this can be beneficial for the company in both long and short run.

International Business Strategy

Globalization also bounds companies to have international strategies of business because strategies of one region or country cannot be used effectively in another country. Thus, it requires companies like Morrisons to have international strategies so that regional or local consumers can be benefited and that the sales can be increased. Morrisons has to make sure that it operates with international strategies which are standardized to suit culture and lifestyles of people everywhere around the world.

Moreover, these standardized strategies still need to be modified because there are certain cultures that restrict companies to advertise its products and services in certain ways. For example, countries in the Middle East will not allow Morrisons to run an advertising campaign using a female model wearing western clothes. In the same manner, company cannot use white colors to market its products and services in China since white color represents ‘mourning’ in Chinese culture (Gaburro and O'Boyle, 2003). Thus, it is necessary for Morrisons to have international strategies modified with specific culture of different countries. 

Competitors and Competitive Advantage

Globalization also brings along competition as well as competitive advantage for
international companies. Free trade and entry barriers in various countries bring competitors from around the world for local companies of a country. But it also brings a number of opportunities for learning and developing on its own for any local company in a country. Competitive advantage is the factor that makes a company successful and thriving over its competitors (Brinkman and Brinkman, 2002). Thus, Morrisons should adopt various strategies that help in developing competitive advantages over competitors to avoid competition and become a market leader.

CONCLUSION

Globalization can bring both opportunities and threats for Morrisons. Thus, it is up to the company how it takes advantages of all those opportunities and avoiding threats. Company also needs to take care of certain aspects that may affect the public image of organization. In this way, it will be easier for Morrisons to acquire competitive advantage and gain sustainability within the country in which it is operating.

REFERENCES

  • Ervin, J. and Smith, A. Z., 2008. Globalization: A Reference Handbook. ABC-CLIO.
  • Jones, A., 2010. Globalization: Key Thinkers. Polity.
  • Lechner, J. F., 2009. Globalization: The Making of World Society. John Wiley & Sons.
  • Pang, K. S. N., 2006. Globalization: Educational Research, Change and Reform. Chinese University Press.
  • Ritzer, G., 2010. Globalization: A Basic Text. John Wiley & Sons.