Sunday, September 15, 2019
This is because the owner of the Chinese factory will not acquire the new machinery required to produce additional quantities of products in timely manner and Lack of knowledge on International supply chain by the management 3) Macro Ã¢â¬â Economic:- The economy of every country and region differs In Its fundamental economic heartsickness, UN like Australia where there is relatively high level of per capita participation in regular exercise and sporting activity and CARR of athletic apparel grew at 8. 3% comparing with other country CARR 0. 8%. ) Socio economic 5) Financial 6) Legal 7) Physical 8) Political 9) Acculturation 10) Labor 1 1) Technological Benefits of globalization:- 1 )Cost benefit 2) Tattling benefit 3) Learning benefit 4) Arbitrage benefit Module 2:- Value chain of sports:- The mall supply chain for Seek seems quite short. It begins with producers of cloth and other materials for fashion clothes. Materials are purchased by the businesses that manufacture the clothi ng for Seek. The manufacturers are mainly small independent firms in Russia and Malaysia, but the company has its own small manufacturing subsidiary.The manufactured goods are transported to the company's distribution centre in Russia. Seek buys the manufactured clothes that It has designed, and distributes them to centre in France. Retailers may be department stores or its own stores. There are also some e-sales direct to customers. There may be some weaknesses in the supply chain. Most sales are in Europe but most manufacturing is in Russia (Eastern Europe) or Malaysia. Although these areas may be cheaper for manufacturing, the costs of transporting the clothes to the distribution centre in Russia and then to the distribution centre in France may be quite high. There is no information about the efficiency of Cheeks delivery system, but operating with two distribution centers may be inefficient and slow down the transfer of manufactured goods to shops. Its competitor Ezra has a man ufacturing centre in Europe and a modern distribution system. This may give Ezra a strategic advantage because transport costs should be lower and distribution times quicker. Ezra operates a Just in time system for ordering goods from manufacturers, and this seems to be more successful than Cheeks attempts to do the same thing. The supply chain operates slowly between Seek and its manufacturers, and this may put the company at a disadvantage compared with Ezra and H. Value chain of Sports apparel r SUPPLY CHAIN 1) Initial research :- Dakar invest a considerable amount of its financial resources in research and development of its products. Research plays a considerable time and money for value creation. 2) Target identified and validated :- A new product line hat daze is contemplating is in the area of compression sleeves and guards.These are compression wear items that protect selected parts of the body such as arm sleeves and calf sleeves. 3) Optimization :- 4) Development:- Dakar currently has a team of in house designers and sports scientist. The seven designers come form a variety of professional backgrounds, including fashion,sportswear swim wear and lingerie. 5) Testing :- Samples are generally created in Australia in a purpose built facility at the Dakar head office. And company has a highly experienced team who cut make and trim the sample armaments prior to large scale production. ) Production:- Production occurs at a Chinese, family owned sports swear clothing manufacturer 7) Marketing:- In Australia Dakar operation through Online stores, with approximately 20 outlets. Distribution also occurs through major chains of sporting goods retailers and department stores. Through global Dakar operates through online and through agency agreements. Normal Supply chain:- The Main supply chain of Dakar is quite short. It begins with Innovation of product from the in-house R center, manufacturing in china, sales in online, distribution center.Weakens in supply ch ain:- Most sales happens in Australia. Although these areas may be cheaper for manufacturing the cost of transpiration the clothes to the distribution center in Australia may be quite high Industry segmentation:- Industry:- Athletic apparel Industry segmentation, Products:- Compression Tights, T-shirts and shorts, Triathlon suits and lightweight running singlet's and shorts. Life cycle stage:- Growth:- As the Compounded annual growth rate of Australia market grew at 8. 3% from 2008 to 2012.Remote Environment:- Social:- The Australian market is perceived as a ideal market to test products placements on educated and informed consumers. This is beaus Australia has a relatively high level of per capita participation in regular exercise and sporting activity and relatively high levels of physical activity per capita, the highly developed Australian economy is dominated by a larger proportion of consumers who are early adopters of new technologies and products with high disposable incomes .Technology:- Dakar invests a considerable amount of its financial resources in research and development of its products. Industry environment analysis:- Threat of new entrants to the industry:- As Athletic apparel great at a CARR at 0. % there is less chance that new competitor coming into the industry. Industries dominated by branded products are difficult to enter due to large amount of time and money required to create a competing branded products. And also Access to distribution channels as their goods and services through established distribution channels as those have already been locked by existing competitors.Market segment Analysis:- What makes a market:- Markets are aggregates of consumer groups with similar needs. Consumers having relatively high level of per capita participation in regular exercise and sporting activity. Needs:-Compression apparel is designed to improve athletic performance by reducing muscle vibration and improving circulation. Preferences:-This appare l has been credited not only with increasing athletic performance, but also with reducing recovery time and post exercise soreness Current solutions:- Market size:- This market contributes 10. 9 % of overall world Athletic apparel.Market growth:- The compression apparel has been exponential growth in the past five years with some us industry reports suggesting annual sales growth of 55% from 007-2010 and 68 percent of 20101-2013. Blue ocean strategy:- New customer markets:- This strategy is its creation of new undiscovered markets through innovative activities, this strategy is value innovation and ultimately renders the competition irrelevant. Consumer value is created through innovative activities that provide new and improved offerings Like Dakar is contemplating is in the area of compression sleeves and guards.These are compression wear items that protect selected parts of the body such as arm sleeves and calf sleeves. This will help consumer increased circulation to enhance rec overy ND reduce soreness as well as providing sun protection. This protective sleeves market. Key success factors for Sports apparel are:- 1) Processing efficiency:- the organization must be price competitive on a global basis to compete effectively with local and global competitors. ) Product quality:- The organization must produce consistently reliable high quality products and position its brand to represent quality and good value 3) Understanding the customer. The organization must understand what the customer wants and needs what they value and where and when they want to shop 4) Product differentiation and innovation. To stay competitive the organization must be able to respond to changing customer needs and wants by delivering products in innovative ways. 5) The company has a broad portfolio of products.It does not rely for its success on one product or a limited range of products. A broad portfolio of products means that the company is not exposed to the risk of decline in t he market for one or even a number of its products. Some products may be in decline but there will also be products that are still in the growth phase of their life cycle. 6) The organization must create customer wariness of the benefits associated with its products and where they can be purchased and products must be available where they shop.MODULE 3 Strategic drivers:- 1) Industry and Market:- Athletic apparel 2) Products:- compression tights, T-shirts, and shorts, triathlon suites, outerwear and other items designed to be worn before and after sporting activity 3) Customers:- Consumers who are early adopters of new technologies and products with high disposable incomes 4) Channels:- Dakar operates its own network of retail stores in Australia with 20 outlets, sporting goods retailers and department stores, online, and n international market through agency agreement example Singapore and Taiwan. ) Competitive advantage:- Dakar invests a considerable amount of its financial resour ces in research and development of its products Innovation.. Product reliability of their brand in Australia and other countries for last 5 years and also exclusive distribution channel also making the product differentiation. And also having wide range of product range making it easy for a customer to find what they want from a single provider. Establishing a certain consistent image in the market, such as romp, courteous service can also be used as differentiating factor by the organization.Operation drivers:- Profit:- There is an increase in profit from 1. 1 Million to 21. 6 million and percentage of margin increased from 8% to 32. 5%. Cost:- Cost percentage has been decreased driver to order to meet the operation driver. Peoples and organization drivers:- The culture of an organization along with the employees it attracts and the resources it develops will naturally direct an organization. Strategic capabilities:- Valuable, rare, difficult to imitate or replicate, non substitute d. SOOT analysis:-Strengths:- Well established organization structure, and passionate employees led by an executive management team that has largely keen in place since the company inception. The core group of employees have been individuals who love sport and exercise and also created by a group of elite athletes with an entrepreneurial dream. The culture at Dakar has typically been one of energy and excitement. Dakar is one of the leading brand in Australia Production quality is consistently maintained by their production centre in china Dakar invest a considerable amount of its financial resources in research and placement to introduce new products. Avian wide range of product range making it easy for a customer to find what they want from a single provider had a good team of in house designer and sports scientists good work culture Opportunities:- Dakar share of market is only 5. 5% of total 1. 2 billion, the sales need to be scaled up in order to gain the market share Internati onal expansion through JP and agreement with other companies Online sales are the big opportunity for expanding into international market.Weakness:- production capacity cannot be increased as their manufacturing facility in china to willing to acquire the new machinery required to produce additional quantities of products in timely manner Through agency agreements in place it does not currently opiate any company owned offices outside of Australia Threats:- Employees are currently appears to be a high level of inertia, confusion and uncertainty within the organization and its employees. Entry barriers like sheer quantity of retail outlet in Asia markets and regulatory barriers imposed on wholly foreign owned companies setting up in some Asian countries. Unlike CARR in Australia with 8. 3 % globally it was only 0. %. So same level margin cannot be expected by the Dakar. Gap Analysis:- The Dakar business is looking for International expansion opportunities and has identified the follo wing gaps that need to be addressed in its business strategy. Capacity to business strategy gaps Production capacity cannot be increased to the anticipated demand Environment to business strategy gaps:- Global Leticia apparel grew at a CARR at 0. 8 % comparing with Australia CARR 8. 3% The sheer quantity of retail outlets in Asian markets.The regulatory barriers imposed on wholly foreign owned companies setting up in Aids etc there will be high switching cost to find new customer globally. Key stakeholders Gap:- In employees there is a growing perception that the company is becoming focused purely on a global presence growth and forts and will forget the employees that helped it to become successful. Ken tucked General Manager operations who takes care of production process has been suffering from rare illness and is planning to retire from daze within the next 6 months.Dakar need to find out the appropriate person to take of production process after Daze retirement. A lack of exper ience in lobar industry by the employees towards globalization Module 4:- Market development:- page 4. 14 Dakar is an alternative approach to product development is find new markets for existing products. Although the products are unchanged it is not clear how the related markets will respond to products that have not been specially designed for them and related market development can occur through expanding geographically.Innovation:- Innovation is the act of introducing something new. It is the process of creating a new product service proceed or other idea for an organization that will exults in increased customer value and positive changes in efficiency, quality, competitiveness, market share etc. Innovation process value chain in Dakar:- 1) Company invest a considerable amount of its financial resources in research and development of its products and come out with an innovative idea. ) The product development team of in house designers and sports scientist will created a produc t that meet the Idea off product 3) These sample products are created in Australia in a purpose built facility at the Dakar head office. Dakar has a highly experienced team ho cut make and trim the sample garments prior to large scale production. 4) Once the product is satisfactory then the production will be taken place in their Chicane's, family owned sportswear clothing manufacturer. 5) Marketing of the products happens through Online, company owned outlets and international through Agency agreements.Key success factor for new product development and implementation:- 1) Affiance of development:- Dakar spends considerable amount of its financial resources in research and development of its products was comprehensive and effective in order to ensure success. )Seniority and authority of responsible managers:- Dakar is renowned for its commitment to product development since inception of the company. This is evident through its many successful brands and constant successful developme nt.Development of New geographic markets:- The ability of an organization to internationalist depends on its ability to appreciate the environmental differences, understand the risks and implications, and then counter or adapt to them successfully. Critical questions to be addressed by any organization contemplating new market development include the following:- 1) The size and alee of the proposed market:- The global market for athletic apparel is 67. 7 but Australia share was only 1. 2 billion only 1% of the global market, there is a huge scope for the company to get the Market share. ) Market Growth:- Unlike CARR in Common mode of entry into new geographic markets:- page 4. 48 Module 5 Dakar will comes under organic systems Module 6:- Strategic leadership style:- Risk takers:- Key managers in Dakar are:- Will winsome CEO founder of the Dakar Jan Taylor leader the organization strategy in may 2010 Ken tucked, General manager production is there since Dakar started its business Mea n Mean worked with Dakar since 2008 acting as an COOP Most of employees has completed good number of years in Dakar through out its growth phase By the above data we can come to an conclusion that Strategic leadership style was risk takers. -s Model:-This model is useful tool for testing whether a proposed strategy will achieve its aim by asking whether it aligns with the seven major areas under the model Strategy:- the vision of the company is to become one of the 10 most recognized global sporting brands and its strategy towards to achieve its mission to increased sales by 10 time over the next 10 years, wrought entering into the new Geographical locations. Employees are feeling unsecured because they are in constant touch with executive team through the growth of the organization.Once company becomes global there may be chance the Executive team will forget the employees that helped it to become successful. Management should provide clear guidance and make sure that all the level of employee are participating to achieve to full fill company vision Structure:- the structure of the Dakar adopts with the globalization because there manufacturing facility is china and some portion of sales are through online and Agency agreement del. Systems:- Entering into new Geographical location will the current systems of organization.As they had good supply chain management because of the online sales and agency model Resources:- The manufacturing capacity which is china cannot improve the capacity with its current capacity in order to meet the demand. Company should look for an better alternative into to make sure the supply meets demand Skills:- The executive team does not have the international experience except Jane Taylor who is an General Manager strategy. Style Shared values :- Successful development of new markets:- page 4. 1) The identifiable benefits of expanding into the new market must be I line with the long term strategic goals of the organization 2) The org anization must ensure that it has sufficient cash reserves to finance the new business until such time as it becomes self supporting 3) The organization should perform both internal and external analysis. The role of communication:- page 7. 37 Cotters 8 steps leadership:- Create Urgency:- Global athletic apparel market 67. Billion and Australia market data to the employee and their position in the global market in order to understand where there stand in the global market. This happens employee think what are the management expectation from the employee. It is the step where people need to know the need for change and what change is necessary for the company. Form a powerful coalition:- The leader need to convince the people for change. Many employees of Dakar Joined because it was a small, friendly and vibrant company that was popular and well respected in the Australia market.So, this is a very difficult task and need a real leadership quality to be done. Create a vision:- Dakar v ision to be one of the 10 most recognized global sporting brands. It hold 40% share in Australia arrest in order to achieves its vision. It should expand in the international expansion opportunities through JP, Franchise, Retail or through Online mode. Several ideas and concepts should be organized properly in a proper form in order to make the person understand it.This will help Dakar employees to understand need for change. Communicate the vision:- it is not Just enough to communicate the vision to the people but it should be done with great power and confidence on a regular basis so that people can trust on it and it remains fresh in their mind so that they can respond accordingly. When ever Dakar opens the new stores and any product launches Will Winsome CEO will be presented. So he need to communicated to the employee what are the idea and vision of the Dakar.Remove obstacles:- instead of people accepting and promoting the change there are certain resisting the change due to wh ich obstacles are often created in the path of the change so the leader need to identify these and correct these by giving rewards to those working good for the change and motivating the one who resisting it. The main perception in the employees was the company is becoming focused purely on a global presence, Roth and profits and will forget the employees that helped it to become successful.In order to avoid this the, Executive team need to make sure that all the employee who made a Dakar as employee of choice need to give chance to them. So that their perception will be removed from their mindset. Short term wins:- during the change in order to motivate the employees and boost up their performance short term targets should be given so that the employees could work hard to achieve it but after achievement they will be high on energy and performance.Assurance from will income that the company is planning to introduce an employee share program offered to full-time employees who have b een employed by Dakar for more than 10 years is an example. Build on chance:- build on the change: the reason of most of the failures of change is the early declaration of victory, changes need to be done slowly and the impacts should not be Judged too early and the long term goals should be focused on. Anchor the changes in corporate: finally it should be taken care of that the change is done properly and is used in the regular day to day life of the work and the leaders would keep on supporting the change so that the employees and the new leaders who are brought in should feel comfortable working. An acquisition strategy can bring more immediate results, possible with less apexes and risk than starting a new subsidiary business operations. In order to become the global player M activity activity is must in order capture the market share. In order to be successful in acquisition strategy.Dakar team need to take care these issues Purpose of acquisition towards global reach is an imp ortant aspect to be communicated to the employees Dakar Executive team should be have the focus n pursuing the strategy Jane Taylor organization strategy development lead has good knowledge on the international expansion which will help the company to resolve the implementation issues Dakar employee should be provided with enough growth in global expansion strategy otherwise there is chance of losing Key talent Acquisition is the best for market penetration because:- 1) Speed of entry :- There strategy towards achievement of the company vision by increasing sales by 10 times over the next 10 years can happen only if the market penetration happens through acquisition of new global entity 2) Vertical Integration:- Through acquiring the good company which has the good capacity to increase the production, because excising manufacturer in china will not to able to deliver the additional quantities required to meet anticipated demand and with reasonable time frames. 3) Technical leakage:- Dakar has spend good number of amount of R, which will differential with there competitors. If there is an acquisition there will be low risk of Technical knowledge leakage 4) Market Penetration:- Market penetration can happened very quickly because total market of acquired firm will the market of Dakar. Not need to again start from the scratch.