CPA case study
Understanding the external environment (External Environment – everything external to the organization Including but not limited to: Industries, Markets, Political Forces, Regulations. Environmental Issues, Society, Technology and a variety of other factors) IQ – Define Industry and advise about Dakar performance spots apparel Industry Definition (The grouping of similar economic or commercial activities that produce goods or services) Page 2.
5 Dakar Performance sports apparel is into global athletic apparel and footwear industry.
Dakar started making compression apparel for trivialities, before quickly diversifying into small production runs of cycling and ruin clothes for athletes and active Australians. Dakar has expanded its business Into broad range of performance,fitness and compression wear. Q- How would you determine this Industry Is global ? To determine If et Industry Is global ? We would consider the athletic apparel market goods traded globally. Dakar and other international brands like Nikkei, Addis etc trade globally so we would be considered this industry to be in the global industry. Q 3 – Define industry value chain and prepare value chain for Dakar.
The Industry Value Chain (Athletic Apparel Industry) – Comprises the business’ processes, people, organizations, technologies and infrastructure which transform raw materials into finished good or services. Q – Define Industry life cycle and at what stage Dakar lies. NAS – Most Industries have a life cycle, similar to a product life cycle but much longer. Different strategies are required at different points in an industry lifestyle phase or stage. Throughout the life cycle, the structure and environmental an competitive forces that influence and industry change, As such, an organization needs to be adaptable.
The industry would be considered to be In the mature stage of the industry lifestyle, this can be determined because at this stage :- Buyer start to have greater power – Buyer have alternative choices and brands and are easily able to compare price due to the availability of Information on Internet and availability of different brands In market and super markets.
Focus is on efficiency, cost control and market segmentation : – Focus AT Dakar on cost reaction Owe to Tanat teeny nave outsourced maturating AT goods to china to reduce its cost. Industry rivalry is intensified : – Most of
Key Factor promoting future growth as as follows :- Strong growth in Demand Continuous growth in demand of compression apparel. Reduction in cost of manufacturing due to outsource of manufacturing in china. Question 6 – How would you apply Porter’s five force model in this case :- Threat of New entrants if high :- Market is big enough to attract new entrants, There is no such barrier imposed by government on new entrants. There is little expertise required to enter into athletic apparel but require highly specialized knowledge for category of compression apparel.
Dakar has started business from very small that attract new entrants as well. Buyer Power is high :- Buyer have alternative channels for products and have many brands to choose are easily able to compare price due to ten available TTY AT International on Internet Ana In supermarkets stoutest power Is low : – Dakar is making compression apparel for trivialities and other athletic apparel for athletes and active Australians. Usually athletes do not other clothes as substitutes other than athletic apparel so we can easily say substitute power is low.
Supplier power is low :- Due to availability of other international brands in market, supplier power is low. Dads has 40% of market share in Australian and can be easily influence suppliers for not increasing raw material price. Industry Rivalry is high:- Due to continuously increase in demand since 2008, Industry rivalry is high.
Price competitiveness drive rivalry. Availability of other international brands, no such barriers on new entrants ad continuous growth in demand of athletic goods pushes price competitiveness. So we can easily say that industry rivalry is high.
Summary – Overall we can say demand of athletic goods will increase but if Dakar want to maintain or increase its share in Australian and international market, they have to us on quality and their price must be competitive. Module 3: Understanding the internal environment (Internal Environment – the internal influences and performance of an organization, identifying and focusing on the operational drivers, along with ensuring efficient organizational and people performance) (Objective – understand current performance in order to drive future strategic options; growth, products/services, markets, differentiation, industry position) 1 & 2.
Identify stakeholders and align stakeholder needs Key Stakeholders Stakeholders’ Objectives Alignment to objectives; met/not met Will Winsome CEO and Founder of Dakar) Long-term sustainability Revenue and profit growth Seeks operational excellence. Very much alleged Witt company strategy Owe to coagulants Investment In product development and monies in business. Yes, Being a major supplier to the non-alcoholic beverage market has afforded ABLE significant power over its customers.
It has enabled the company to retain cost reductions achieved through efficiency gains rather than pass them onto the retailers. These efficiency gains have allowed the company to enjoy higher profitability levels than the industry overall, and have supported continuous investment to improve technology and infrastructure.
Yes, company is building competitive advantages by process re-engineering to reduce time to market giving refrigerator and storage machines at retailers place.
Introducing world class manufacturing facilities and automated warehousing facility Ball’s revenue composition changing from 90% SD based in 2002 to 68% SD based in 2013. Tom Dwyer (Managing Directors) Sir Rod Fisher (Chairman of the Board) (Qualification: Distinguished Australian businessman and former Olympian). Long- term sustainability Very much aligned with company strategy , he has Joined board in 2009 ad be with many till 2013. Yes, Sales of company has been increased from $23. 3 million in 2009-10 to $66.
5 million in 2013.
Profit of company has been increased from $million in 2009-10 in $21. 6 million 2012-2013. Board of Directors Company growth Market snare Prestige Yes , growth has been achieved and Board requested company to accelerate entry into other complementary products to counteract decline in CDC (option bottled water industry) ABLE has invested in large-scale recycling projects with major customers, such as shopping centers and fast food retailers, and has moved to improve its environment mage by emphasizing that all of its water is sourced within two-hour drive of bottling facilities.
ABLE is very conscious of the impact that its packaging has on landfill.
It has several projects underway to find out ways to reduce its environment impact. Shareholders Innovation Revenue and market share growth increase in share price and return Tailoring marketing campaigns to customer groups and to beverages for different times of the day. ABS is exploring a new product idea ready-to-drink, chilled coffee. First Australian beverage manufacturer to introduce sugar-free drinks using Steven.
ABLE developed slimmer cans and smaller bottle sizes. ABLE prefers to work with experts for improvement in packaging Company identified organic and acquisition growth options within product range.
Also acquired several coffee bean businesses to capitalize on growth of the coffee market in Australia. Yes, gar town NAS Eden conclave Owe to Increase In market snare Ana higher profitability levels than industry average ABLE NAS NJ Return on investment and market share are performance measure used in all of Ball’s business unit.
Employees Stability of employment Pride of working for an innovative organization. Yes, Focus is on sustainability in employees, workplace and community, therefore areas of concern align with employees and Career prospects such as graduate employment program Significant investment in training and development ABLE is focusing on low cost leadership, and has reduced staff levels ABLE is second largest manufacture and planning to be largest in new future, hence it’s a matter of pride for the employees who are associated with the company.
Community/ Environment No Environment Impact.
Healthy and tasty product. Triple bottom line reporting Not much, Impact of bottles on landfill and the carbon output of production and striation. Not much because Cad’s product are not good for health. However to add healthy drinks to the product portfolio, ABLE has acquired fruit Juice manufacturer in Victoria and entered into milk drink market with the purchase of manufacturing facilities from a dairy co-operative.
The company is proud of the fact that it was the first Australian beverage manufacturer to implement triple bottom line reporting Government Reduce Health Impacts of CDC on society (Obesity ) compliance Walt n Australian standards & inanely Industry competition Yes, considering the negative image of the company for being second largest manufacturer of Cads, ABLE has decided to increase its market share of non-SD beverage products so that Cads will represent less than 40%.
Not much, Banning on television advertisements for Cads, fast food + snack food during children’s television shows (new measures will effect profit in CDC and snack food) Key Customers (Retailers) / Distribution Channels Growth Stability of ordering Aligned by offering Yes, Strong distribution network Support for VIM technology (vendors manage own system and ABLE adjusts supplier to cater for it) Business Unit Leaders Must have the commercial acumen and technical skills to operate their business nits on a stand-alone basis Limited support is provided Head Office in terms of Product Strategy and Manufacturing Operation.
& 4. Assess stakeholder groups; understand their impact and influence Subjects (high interest, low power) Consult (High influence, low impact) Players (high power, high interest) Partner (high impact, high influence) Employees Retailers Boa rd Tom Dwyer Shareholders Crowd (low power, low interest) Inform (low impact, low influence) Context Setters (high power, low interest) Manage (high impact, low influence) suppliers Customers Government