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Trends in the Global Business Environment

Unit Title Trends in the Global Business Environment
Assessment Type Group Assignment
(Group Report)
Note: Groups of 4 students only. Once a group is formed and entered into Blackboard, no changes are allowed.
This is strictly required to be your own original work. Plagiarism will be penalised. Students must use correct in-text citation conventions in accordance with the Harvard method.
Assessment Title Group Report
Purpose of the assessment and linkage to Unit Learning
Outcomes (ULO) To identify contemporary trends in today’s global business environment This assessment will address the following unit learning outcomes:

  1. Students will demonstrate familiarity with the academic literature.
  2. Students will demonstrate the capacity to write persuasive reports containing sound recommendations, in preparation for a career in business or government.
    Assessment
    Weight Group Report = 30%
    Total = 30%
    Total Marks 30 Marks
    Word limit Report not more than 3,000 words
    Due Date Week 10 (Sept 24, 2021) at 5pm
    [Late submission penalties accrue at the rate of – 5% per day]
    Submission Guidelines • All work must be submitted on Blackboard by the due date along with a completed Assignment Cover Page.
    • The assignment must be in MS Word format, 1.5 spacing, 12-pt Arial font and 2 cm margins on all four sides of your page with appropriate section headings and page numbers.
    • Reference sources must be cited in the text of the report, and listed appropriately at the end in a reference list, all using Harvard referencing style.
    Consult your lecturer if you are unsure or you require clarification on plagiarism.
    Note: You may not get the assignment submission links unless you are registered/enrolled in a group on Blackboard.
    Note: All students must contribute equally to the assessment. You must acknowledge your group members’ names in the cover sheet. If your name is not included in the cover sheet, you might not receive marks. If you choose to complete the assessment individually, you should self-enrol in a solo group and submit your group assessment individually.
    Assignment Specifications Required Structure/Format of the report
    • The report must include a cover page
    • Table of Contents
    • Executive Summary
    • An Introduction: Briefly introduce the purpose of the report. Within the introductory paragraph, you need to address the key topics you will address in the body paragraphs.
    • Body Paragraphs: With headings/subheadings: Please remember to support your claims/arguments with in-text scholarly references.
    • A Conclusion: The conclusion must briefly summarise the key points in the body paragraphs.
    • Reference List: Please include all in-text references in the list of references formatted in Harvard style. A minimum of 12 references is required.
    Each group of 4 students will select and analyse One of the following questions and submit a collaborative written report.
    Students’ reports will vary widely. Their writing should reflect an understanding of the chapter’s basic concept(s), thorough research, and logic and critical thinking skills
    Please choose One question only from the following:
  3. Using the Internet, research the prices of several products in one or more foreign countries and compare them to their prices in the home country where the goods are produced. What factors do you think determine the foreign prices? Do you think any of the prices are artificially high or low in one country or another?
  4. Managers and leaders are continually required to make decisions – to make ‘right’ decisions. However, decision-making is affected by biases. Discuss some of the common biases in decision-making and how they might be overcome.
  5. Some researchers predict major impacts of information technology still to come in the workplace. Discuss.
  6. Assessing an individual’s performance and productivity are major challenges for managers. Automating various processes has been identified as a way of improving performance. What are the implications of automation in contemporary organisations particularly professional jobs?
  7. Discuss and identify how ‘globalisation’ impacts business today. What are some competencies that are necessary for international managers?
  8. Discuss why an understanding of national culture is crucial for multinational enterprises seeking to operate in a global business environment. Outline the dimensions commonly used in describing national culture.
  9. Discuss the role of ‘Corporate Social Responsibility’ (CSR) in today’s world. Give practical examples for your arguments.
    Your final submission is due Week 10 (Sept 24, 2021) at 5pm
    Late submissions will attract penalties at the rate of 5 % per day.
    Assignment Structure Required:
    • Holmes Institute Cover Page [This is essential and must be completed accurately]
    • Executive Summary – This should be a concise synopsis of the whole report.
    • Table of Contents – This should be well formatted with numerical sub headings • Main Body of the report contains Section Headings for each paragraph listed
    • Sub-sections are numbered.
    • Appropriate paragraphing must be used.
    • Introduction – Briefly introduce the purpose of the report. Within the introductory paragraph, you need to address the key topics you will address in the body paragraphs.
    • Body Paragraphs – With headings/sub-headings: Please remember to support your claims/arguments with in-text scholarly references.
    • Conclusion – The conclusion must briefly summarise the key points in the body paragraphs.
    • Reference List – Please include all in-text references in the list of references formatted in Harvard style. A minimum of 12 references is required.
    • The report must be within the 3,000-word limit.
    Marking Rubric for the Written Report
    Criteria Ratings
    Comprehension Max 10 marks Excellent
    6.5 – 7 Very Good 5 – 6.5 Good
    4 -5 Satisfactory 3 – 3.5 Unsatisfactory 0 – 2.5
    Has understood and responded to each of the
    task requirements appropriately. Has understood and responded to most task
    requirements appropriately. Has understood some task requirement and attempted to
    respond appropriately. Limited understandin g of the task was evident, but some
    requirements are missing. No evidence that the student has understood what is required in this task.
    Structure,
    Synthesis of
    Research
    Max 10 marks Excellent
    6.5 – 7 Very Good 5 – 6.5 Good
    4 -5 Satisfactory 3 – 3.5 Unsatisfactory 0 – 2.5
    Cohesive paragraph structure consistently encourages
    engagement
    with the content. New information from research is synthesised and presented thematically
    (topic by topic) to address the assessment question in an analytical way. Cohesive paragraph structure supports engagement with the contents. Uses discrete paragraphs to
    present information. New material from research is structured into themes to address the
    assessment question in an analytical way. Some effort to achieve cohesive paragraph structure. Ideas are not always presented in
    discrete paragraphs.
    Some effort to include new material from research into themes to address the
    assessment question in an analytical way. Has used a
    report structure to organise information logically. But has presented response composed of a series of
    discrete paragraphs
    based on the summary of main ideas from each article. This report reads more like a book report than a piece of analysis. Limited or no attempt at a
    report structure. Information presented randomly or as a series of
    questions/answ ers only. No sense of
    cohesion between ideas. No evidence for synthesis of new ideas from research. No
    analysis attempted.
    Research and
    Referencing Skills
    Max 7 marks Excellent 4 Very Good
    3 Good
    2.5 Satisfactory 2 Unsatisfactory 0-1.5
    Uses academic research skills to select 12 or more current, credible and authoritative academic references.
    The student has considered
    how the articles relate directly to assessment requirements. Uses Harvard
    style Uses academic research skills to select 10 or more current, credible and authoritative academic references. Some evidence that the student understands the relevance of the articles to the assessment requirements.
    Uses Harvard referencing style and in-text citations with few errors. Uses academic research skills to select 8 or more current, credible, and authoritative academic references.
    Attempt to understand relevance of the articles to the assessment requirements.
    Uses Harvard referencing style and in-text citations, but with errors. Uses academic
    research skills to source 6 academic references.
    No real evidence that the student understands the relevance of the articles to assessment requirements. Limited
    attempt at using Harvard referencing style. In-text Has not located
    4 academic references or selected references do not meet the task requirements. Uses general web searches to locate online webpages or articles rather than library databases. Little or no attempt to use a
    referencing
    referencing style and intext citations with no errors. citations are either missing or show
    errors throughout. style or include in-text citations.
    Written
    Expression
    Max 3 marks Excellent 2 Very Good
    1.5 Good
    1.25 Satisfactory 1 Unsatisfactory 0-0.5
    Uses discipline language appropriate
    for an academic or
    professional audience.
    Writing is fluent and
    uses appropriate paragraph/se ntence structures. No critical
    language or grammatical errors. Includes discipline-specific language sufficient for an academic or
    professional audience. Writing is generally fluent and uses mostly appropriate paragraph/sente nce structures. Minor language or grammatical errors usually do not interfere with meaning, but some editing and proofreading is required. Some disciplinespecific language included to meet general expectations of an academic or professional audience. Writing is generally clear and mostly uses appropriate paragraph/sente nce structures.
    Editing and
    proofreading
    would reduce errors and improve clarity. Limited use of disciplinespecific
    language
    which may not always meet expectations
    of an academic or professional audience. Inconsistent paragraph and sentence structures.
    Language and grammatical errors are frequent.
    Little
    evidence of proofreading or editing. Limited vocabulary. Inappropriate or incorrect use of discipline specific language. Consistent and numerous
    errors in writing (grammar, paragraph and sentence structure) make reading difficult. No evidence for editing or proofreading.
    Note: Please note that the lecture slides may contain the basic key concepts only and students are expected to have read a wide range of scholarly literature to complete all assessments. In addition, for many subjects, students are expected to have undertaken additional research using ProQuest research database and/or Google Scholar.
    Recommended Reading List
    Adekola, A & Sergi, BS 2007, Global Business Management: A Cross-Cultural Perspective. Taylor & Francis, Routledge.
    Charles, WL, Hill, G, Tomas, MH 2019, Global Business Today, 11th ed. McGraw-Hill Education.
    Charles, WL, Hill, G, Tomas, MH 2018, International Business: Competing in the Global Marketplace, 11th ed. McGraw-Hill Education.
    Geringer, M, Minor, M & McNett, J 2012, International Business, 1st ed. McGraw- Hill Education.
    Maidment, FH 2013, Annual Editions: International Business, 17th ed. McGraw-Hill Education.
    Morrison, J 2020, The Global Business Environment: Towards Sustainability? 5th ed. Macmillan Education, UK.
    Peng, MW 2014, Global Business, 3rd ed. South-Western: Cengage Learning.
    STUDENT ASSESSMENT SUBMISSION AND LATE PENALTIES
    To be eligible to pass this unit, you should complete all forms of assessment and demonstrate achievement of the learning outcomes. All assignments must be submitted electronically ONLY, uploaded to Blackboard via the Final Check and Submission of SafeAssign.
    Submission deadlines are strictly enforced and a late submission incurs penalties. For full details, please refer to your Student Handbook. Students can access the Assessment and Marking Policy online (h ttps://www.holmes.edu.au/pages/about/policies).
    VIEWING STUDENT GRADES AND ASSESSMENTS
    Students can view their results for assessments and overall results. For further details, including the fee applicable, please refer to your Student Handbook. Students can access the Assessment Feedback and Review Policy and Procedures online
    (https://www.holmes.edu.au/pages/about/policies).
    Supplementary Assessments
    A Supplementary Assessment will be granted to a student who has met each of the following conditions:
    1.1 The student has achieved a grade of less than 50% in a previous attempt at the unit;
    1.2 The student has submitted all required assessment items for the unit;
    1.3 The student’s name has not been recorded in the Academic Misconduct Register in relation to the unit of the supplementary assessment occurs;
    1.4 The student will be informed by Faculty of a supplementary examination within ten (10) working days of results being released.
    1.5 A Supplementary examination cannot be deferred unless there are compelling and compassionate circumstances.
    1.6 A student who attempts a supplementary assessment will not be able receive a total mark higher than 50% for that unit.
    Academic Integrity
    Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity is integral to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all assessment tasks need to comply with academic integrity guidelines. Table 1 identifies the six categories of Academic Integrity breaches. If you have any questions about Academic Integrity issues related to your assessment tasks, please consult your lecturer or tutor for relevant referencing guidelines and support resources. Many of these resources can also be found through the Study Sills link on Blackboard.
    Academic Integrity breaches are a serious offence punishable by penalties that may range from deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of course enrolment.
    Table 1: Six categories of Academic Integrity breaches
    Plagiarism Reproducing the work of someone else without attribution. When a student submits their own work on multiple occasions this is known as self-plagiarism.
    Collusion Working with one or more other individuals to complete an assignment, in a way that is not authorised.
    Copying Reproducing and submitting the work of another student, with or without their knowledge. If a student fails to take reasonable precautions to prevent their own original work from being copied, this may also be considered an offence.
    Impersonation Falsely presenting oneself, or engaging someone else to present as oneself, in an in-person examination.
    Contract cheating Contracting a third party to complete an assessment task, generally in exchange for money or other manner of payment.
    Data fabrication and falsification Manipulating or inventing data with the intent of supporting false conclusions, including manipulating images.

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Business Insights: Global

Ratio Analysis 

This is your opportunity to play detective and do some financial statement analysis. Please select any publicly traded company. The CSU Online Library has several databases to choose from that are good starting points for your research: 

  • Mergent Online,
  • Business Insights: Global,
  • Business Source Ultimate, and
  • ABI/INFORM Collection.

In addition to using at least one database article or report from the CSU Online Library, you may also use any reliable website, such as the company’s web page. 

For the company you select, find the annual report and the financial ratio information for the following ratios: 

  • debt-to-equity,
  • current ratio,
  • return on equity,
  • quick ratio,
  • working capital ratio,
  • price earnings ratio, and
  • earnings per share.

Once you have reviewed the information, write an essay that begins with a brief introduction to your chosen company. Next, explain how the company is doing with respect to the ratios. In one to three sentences, briefly summarize what each of the ratios are telling you about the company. Conclude with how you predict it will do in the future. 

Your essay should be at least one page in length. Use APA format to cite and reference all quoted and paraphrased material, including your textbook. Use a minimum of two sources, one of which may be the textbook. Include a title page, introduction, body, conclusion, and references page. An abstract is not required

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Review Healthy People 2030 Global Health Initiatives.

Topic 1

Review Healthy People 2030 Global Health Initiatives.

  • Choose one disease process and discuss the disease process.
  • Discuss the goals for this disease presented in Healthy People 2030.
  • How does the CDC play a role in meeting the goals?

CITE AND REFERENCE, ALL QUESTIONS MUST BE ANSWERED. 

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Explain the interrelationships of the major domestic and global market sectors.

Assignment Instructions
Assignment marks: 75 | Presentation and referencing marks: 5 Total marks: 80
Total word limit: 4,100 words
Weighting: 40%
Download and use the Assignment Answer Template provided in KapLearn to complete your assignment.
Your assignment should be loaded into KapLearn by 11.30 pm AEST/AEDT on the due date.
Refer to ‘Time remaining’ on the ‘Assignment’ page in KapLearn to ensure you submit your assignment by the specified due date and time.
Learning outcomes (LO) mapping Marks
LO1 Explain the interrelationships of the major domestic and global market sectors. 20
LO2 Explain the role of intermediaries in financial markets. 7
LO3 Assess the changes and impact of key economic and financial indicators on the Australian financial markets. 19
LO4 Assess the changes and impact of government and monetary policy on the Australian financial markets. 8
LO5 Compare how the different asset classes are used and traded. 15
LO7 Analyse current issues driving domestic and global financial markets in a given scenario. 6
Research, presentation and/or referencing 5
Total marks 80
Assignment details
• This assignment covers Topics 1 to 7 and accounts for 40% of your final grade.
• There are two (2) sections in this assignment:
– Section A comprises three (3) short-answer questions worth a total of 50 marks.
– Section B comprises two (2) questions worth a total of 25 marks.
Answer all questions.
• Marks will be awarded for presentation and referencing.
• You are required to conduct research beyond the FIN101 subject materials to assist you in answering some of the assignment questions.
• Refer to the Criteria-Based marking Guide for guidelines on what is expected for each question.
• Full workings must be shown for all calculations. Show all calculations in the text of your assignment and not attached as an appendix. Appendices to the assignment will not be read.
• Answers are to be in your own words. Reference and cite all your sources (within the text of your answer) when quoting or using material from external sources. Include a reference list at the end
of your assignment. For further information on referencing, refer to the ‘Referencing and Research’ page in the ‘Build Your Skills’ hub in KapLearn.
• Indicative weightings are noted beside each question. Use these weightings to assist you with your allocation of time and resources. The weightings indicate the relative importance of each question.
• State all assumptions used in providing your answer.
Policies
• The overall word limit for the assignment is 4,100 words. Marks will only be awarded for answers up to the word limit (plus 10%) for each question. Any material written after this will not be counted towards your mark for that question. Headings, quotes and references within the body of the answer are included in the word count. Numerical tables, calculations, and reference lists are not included. For more information on word counts and their rationale, go to Assessment ? Assignment ? Assessment Preparation Guide.
• The Assessment Preparation Guide contains information about format and presentation, word limits, citations and referencing, collusion, plagiarism and other policies, useful resources, submitting your assignment and accessing your results.
• Follow the Harvard referencing style as recommended in Kaplan Australia: Harvard Referencing Guide located on the ‘Referencing and Research’ page in the ‘Build Your Skills’ hub in KapLearn.
• Requests for special consideration or information pertaining to special consideration written in the body of the assignment will not be considered by the assessor. Refer to the
‘special consideration’ section of the Assessment Policy on Kaplan’s website for more information.
Assignment presentation and referencing (5 marks)
You are required to research beyond the subject notes in answering the questions in this assignment. Reference and cite all your sources when quoting or using material from external sources. Include a reference list at the end of your assignment.
You are required to:
• use appropriate presentation and format for your assignment
• demonstrate independent research and analysis
• demonstrate appropriate use of relevant references
• follow the Harvard referencing style as recommended in Kaplan Australia: Harvard Referencing Guide available from the ‘Build Your Skills’ hub in KapLearn
• include a reference list at the end of your assignment following the recommended referencing style
• adhere to the assignment word limit.
Criteria-Based Marking Guide for presentation and referencing
The Criteria-Based Marking Guide (CBMG) provided at the end of each question is designed to assist students to understand what is expected of them in each question and to let you know how their performance will be judged. It provides advice about the criteria used in the marking of the question and what discriminates between an excellent, satisfactory and unsatisfactory answer.
The below CBMG outlines the expectations for presentation and referencing in this assignment.
Excellent (Mark range: 4–5 marks) Satisfactory
(Mark range: 2.5–3.5 marks) Unsatisfactory (Mark range: 0–2 marks)
• clear and appropriate assignment layout and structure
• adheres to assignment and question word limits
• clear evidence of independent research and analysis incorporated throughout assignment
• appropriate use of referencing
• accurate use of Harvard referencing style
• comprehensive reference list provided at end of assignment • adequate assignment layout and structure
• adheres to assignment and question word limits
• some evidence of independent research and analysis
• appropriate use of referencing
• use of Harvard referencing style
• reference list provided at end of assignment • poor assignment layout and/or structure
• assignment is significantly under or over the word limit
• no demonstrated independent research or analysis
• no use of references
• referencing does not use Harvard referencing style
• no or inadequate reference list provided at end of assignment
Section A
There are three (3) short-answer questions in this section worth 50 marks. Answer all questions.
Section A of the assignment relates to the information presented in the ECC case study.
Refer to the case study on the assessment page and the feedback you received for Analysis Task before attempting this assignment.
Question 1 Global influences on individual companies
(15 marks | Word limit: 900 words)
LO1 Explain the interrelationships of the major domestic and global market sectors
LO2 Explain the role of intermediaries in financial markets
LO3 Assess the changes and impact of key economic and financial indicators on the Australian financial markets
You have been asked by the board to build upon the preliminary work that you performed earlier for James and David; collating those notes into a more thorough briefing pack.
The board is interested in two key areas:
(a) In the context of ECC having to choose between the Indonesian Investment and thus becoming IPC, or the acquisition and thus becoming ECR; discuss the key domestic and global financial drivers applicable to both scenarios, explaining the key interrelationships that exist between domestic and international markets. (10 marks — 600 words)
(b) Given the above response, the board is concerned about recent high growth in Australia and is nervous about any RBA intervention. In the context of the above, comment on how your views in (a) may change if we start to see the RBA increasing rates steadily over the coming two years. (5 marks — 300 words)
Note: You should build upon your answers from the analysis task. marks are awarded for your justification and research into the topic. Use the start date of your study period as your base.
Criteria-Based marking Guide for Question 1(a)–(b)
Excellent
(Mark range: 11–15 marks)
Satisfactory
(Mark range: 7.5–10.5marks)
Unsatisfactory (Mark range: 0–7 marks)
• draws on advantages and disadvantages listed in analysis task
• has clearly stated an opinion on ECC expansion with comprehensive justification discussing the key domestic and global financial drivers applicable to both scenarios and explaining the key
interrelationships that exist between domestic and international markets
• clearly shown evidence supporting their justification
• evidence is supported with extensive independent research • draws on advantages and disadvantages listed in analysis task
• has stated an opinion on ECC expansion with some justification adequately discussing the key domestic and global financial drivers applicable to both scenarios and explaining the key interrelationships that exist between domestic and international markets
• has shown some evidence supporting their justification
• evidence is supported with some independent research • does not draw on advantages and disadvantages listed in analysis task
• has not stated an opinion on ECC expansion and/or with little (or no) justification discussing the key domestic and global financial drivers applicable to both scenarios and explaining the key interrelationships that exist between domestic and international markets
• little (or no) evidence to support their justification
• little (or no) evidence supported by independent research

Question 2 Impact of economic growth
(25 marks | Word limit: 1,000 words)
LO1 Explain the interrelationships of the major domestic and global market sectors.
LO3 Assess the changes and impact of key economic and financial indicators on the Australian financial markets.
At a recent board meeting, many of the board members raised concerns regarding the outlook for global economic growth as well as the possibility that ECC’s contracts with China will not achieve the scale of the projected profitability.
Note: Use the start date of your study period as your base.
(a) Evaluate the outlook for global economic growth over the next twelve months. In your answer include a percentage forecast for global economic growth. Within your evaluation, you should discuss:
• how markets are interrelated, and can directly impact upon each other
• what impact this has on the global commodities market, with particular attention to the energy markets, given this macro-economic global view, and your stated perspective on China
• any currency impacts this may have on the Australian dollar, the Indonesian Rupiah, and the Chinese RMB. (15 marks — 500 words)
(b) (i) The Chinese economy has changed drastically since the early 2000’s. As a result, Chinese Government authorities are presently in the process of restructuring their economy. The board would like to understand what this restructuring is; what this means for the future of Chinese economic growth; and what sectors of the domestic and international economy will be impacted. Briefly explain: • what this restructuring is
• what this means for the future of Chinese economic growth, and
• what sectors of the domestic and international economy will be impacted? (4 marks — 200 words)
(ii) Given these changes as anticipated, what do you anticipate these forecasts mean for ECC as a board. Explain what impact these changes will have on ECC, on Australian financial markets, and other related markets (such as commodities)? (6 marks — 300 words)
Criteria-Based Marking Guide for Question 2(a)–(b)
Excellent
(Mark range: 19–25 marks)
Satisfactory
(Mark range: 12.5–18.5 marks)
Unsatisfactory (Mark range: 0–12 marks)
• forecasts provided with comprehensive evaluation on the outlook for global economic growth
• comprehensive discussion on restructuring of the Chinese economy, its influence of the future of Chinese economic growth, and the sectors of the
domestic and international economy
• accurate explanation is provided on the impact of changes in Chinese economic restructure on ECC, on Australian financial markets, and other related markets (such as commodities) • forecasts provided with basic evaluation the outlook for global economic growth
• basic discussion on restructuring of the Chinese economy, its influence of the future of Chinese economic growth, and the sectors of the domestic and international economy
• appropriate explanation is provided on the impact of changes in Chinese economic restructure on ECC, on Australian financial markets, and other related markets (such as commodities) • incorrect, incomplete or no evaluation on the outlook for global economic growth
• poor or no discussion on restructuring of the Chinese economy, its influence of the future of Chinese economic growth, and the sectors of the
domestic and international economy
• poor or no explanation is provided on the impact of changes in Chinese economic restructure on ECC, on Australian financial markets, and other related markets (such as commodities)

Question 3 Influences exchange rates
(10 marks | Word limit: 900 words)
LO1 Explain the interrelationship of the major domestic and global market sectors.
LO7 Analyse current issues driving domestic and global financial markets in a given scenario.
Assume that the ECC Board has decided to stay with the commodity they know best and are in the process of purchasing the Indonesian Coal Mine and becoming Indo-Pacific Coal (IPC).
Prior to the purchase of the mine, the Australian Dollar has depreciated; in the main due to a sharp appreciation of the US dollar. ECC are still committed to the purchase. The funding for the purchase has been approved by way of an offshore loan arranged by a consortium of banks and will be denominated in USD.
Brief the board on the following:
• The impact of the appreciating US dollar on IPC, including the impact on the company’s profit and loss and their balance sheet. (4 marks — 350 words)
• The impact of the appreciating US dollar on the broader international markets (including the FX, interest rate and commodity markets). (4 marks — 350 words)
• Any indicative solutions/strategies which IPC need to consider (note: please do not go into specific hedging strategies). (2 marks — 200 words)
Criteria-Based Marking Guide for Question 3
Excellent
(Mark range: 7.5–10 marks) Satisfactory (Mark range: 5–7 marks) Unsatisfactory (Mark range: 0–4.5 marks)
• clear understanding of foreign exchange markets and how currency fluctuations will affect the investment decision
• correctly identifies the risks and advantages associated with foreign investment
• comprehensive discussion of all factors affecting ECC’s operations domestically and abroad
• indicative solutions/strategies are provided • some understanding of foreign exchange markets and how currency fluctuations will affect the investment decision
• correctly identifies some of the risks and advantages associated with foreign investment
• some discussion of all factors affecting ECC’s operations domestically and abroad
• some indicative solutions/strategies are provided • basic/no understanding of foreign exchange markets and how currency fluctuations will affect the investment decision
• does not identify the risks and advantages associated with foreign investment
• basic/no discussion of all factors affecting ECC’s operations domestically and abroad
• indicative solutions/strategies are not provided/ incorrect
Section B
There are two (2) short-answer questions in this section worth 25 marks. Answer all questions.
Question 4 Asset classes
(15 marks | Word limit: 700 words)
LO5 Compare how the different asset classes are used and traded.
Assume you are a financial adviser. You have been approached by a ‘wholesale’ client who has accumulated sufficient investible funds to consider establishing their own personal investment portfolio. This client has now asked for a detailed report from you regarding investment options.
Your client has asked you to provide an analysis of each of the four asset classes below. Focus briefly on the current factors impacting each market, their anticipated returns, and the associated risks (if any) in each.
The four asset classes to consider are:
1. cash
2. fixed interest
3. equity (using the All Ords Index as your benchmark)
4. property (using the A-REIT Index as your benchmark).
Your answer an explanation of correlation (or non-correlation) between the asset classes (if any).
Conclude your answer with a forecast of which asset class overall you believe will provide the best returns for the period, justifying your opinion based on your forecast and associated justification. (15 marks — 700 words)
Criteria-Based Marking Guide for Question 4
Excellent
(Mark range: 11–15 marks) Satisfactory
(Mark range: 7.5–10.5 marks) Unsatisfactory (Mark range: 0–7 marks)
• correct estimated percentage forecast of returns for each asset class is provided
• a comprehensive explanation of correlation of returns
• concluding statement about the best forecast is provided with well-supported justification • a mostly correct estimated percentage forecast of returns for each asset class is provided
• a mostly correct explanation of correlation of returns
• concluding statement about the best forecast is provided with some justification • incorrect or incomplete estimated percentage forecast of returns for each asset class is provided
• little or no explanation of correlation of returns
• concluding statement about the best forecast is not provided or poor or no justification is provided
Question 5 Influence of Monetary and Fiscal Policy
(10 marks | Word limit: 600 words)
LO2 Explain the role of intermediaries in financial markets.
LO4 Assess the changes and impact of government and monetary policy on the Australian financial markets.
It is critical to understand how governments and central banks react to domestic and international global events. Consider the following:
(a) In an overheating economy, what steps should the Reserve Bank of Australia take to stabilize the economy? In your answer, discuss issues which may impact the success of these measures. (5 marks — 300 words)
(b) When an economy faces a sudden downturn, what action can the government take to alleviate this issue? In you answer define fiscal policy and discuss the primary fiscal policy tool used by the government. (5 marks — 300 words)
Note: You should build upon your answer to the Analysis task and the feedback provided by the assessor.
Criteria-Based Marking Guide for Question 5(a)–(b)
Excellent
(Mark range: 7.5–10 marks) Satisfactory (Mark range: 5–7 marks) Unsatisfactory (Mark range: 0–4.5 marks)
• comprehensive outline of policy measures employed by RBA
• comprehensive outline of policy measures employed by the government
• clear understanding of the underlying concepts behind monetary policy in Australia
• clear understanding of the underlying concepts behind fiscal policy in Australia
• answer is well supported and explained with independent research including references • adequate outline of policy measures employed by RBA
• adequate outline of policy measures employed by the government
• clear understanding of the underlying concepts behind monetary policy in Australia
• clear understanding of the underlying concepts behind fiscal policy in Australia
• answer is supported and explained with some independent research including references • limited outline of policy measures employed by RBA
• limited outline of policy measures employed by the government
• basic/no understanding of the underlying concepts behind monetary policy in Australia
• basic/no understanding of the underlying concepts behind fiscal policy in Australia
• answer is not supported and explained with independent research including references
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The global airline industry continues to grow rapidly, but consistent and robust profitability is elusive

 CASE STUDY: Airline Start up Project Brief  LADEYI is a company looking to establish a low cost airline to cater for the  Australasian market and is seeking a feasibility study to determine the feasibility of a  supply chain being set up to support the business venture.  Background Context “The global airline industry continues to grow rapidly, but consistent and robust  profitability is elusive. Measured by revenue, the industry has doubled over the past  decade, from US$369 billion in 2004 to a projected $746 billion in 2014, according to  the International Air Transport Association (IATA). Much of that growth has been driven by low-cost carriers (LCCs), which now control  some 25 percent of the worldwide market and which have been expanding rapidly in  emerging markets; growth also came from continued gains by carriers in developed  markets, the IATA reported. Yet profit margins are razor thin, less than 3 percent  overall. In the commercial aviation sector, just about every player in the value chain — airports,  airplane manufacturers, jet engine makers, travel agents, and service companies, to  name a few — turns a tidy profit. Yet it’s one of the enduring ironies of the industry  that the companies that actually move passengers from one place to another, the most  crucial link in the chain, struggle to break even. Airlines need to make large and ongoing improvements to operate more efficiently.  With few exceptions, the most successful airlines are those with the strictest cost  controls. The biggest (albeit cash-intensive) lever to reduce costs lies in fuel efficiency,  as jet fuel typically accounts for 40 to 55 percent of operating expenses. Cost reduction can also be achieved through enhancements in organizational structure,  operating model, and work practices. In particular, legacy airlines have often built up  complex processes over decades that cost far more than the streamlined processes of  the LCCs.” (Price Waterhouse Coopers, 2015) “The aviation industry in Australia has a long history and currently it has a number of  airlines operating within the country and all over the world. The importance of airlines  in Australia has grown very rapidly because the country is an island and also has a  thriving economy. Defunct airlines and planned airlines are the two types of airlines  which are in operation in this country. The main sectors of the Australian civil aviation  industry are the international airlines sector, general aviation sector and its safety and  the domestic regional airlines sector. The aviation industry of Australia also comprises  of some small segments like hand gliding, gliding, autogyros and ultra-light aircraft. “The international airlines in Australia carry cargo and passengers to and from various  parts of the world. The total number of international airlines which provides services to  Australia is 49. As Australia is an island more than 90% of the visitors to this country  come by air. The total annual average of passengers who come to Australia from around  the world is about sixteen million. Though airlines are the main carrier of passengers  in Australia the freights are mostly carried by the ships to various destinations”.  (Australia Net, 2007)The potential growth of the business and commercial markets within China suggest a  growth in demand for air travel around the region. As part of any business development  there are a number of areas that need to be explored in order to establish the business  case for the venture. An essential part of the business being considered is the logistics  and supply chain that is required to ensure the continuity of business. This is even more  the case as the model that the company is looking to adopts is one of low cost and this  inevitably puts greater pressure on the margins that the company is looking to pay for  goods and services. The company have a range of areas to consider in relation to supply  chain and are looking for a consultancy to provide an independent feasibility study  within this area. The main aspects that have emerged from initial investigation are a  need to understand: • The current local supply chain to support the business and its capacity • Current logistics infrastructure to support the airline growth oppose to competition • Environmental analysis to support CSR operations • Problem solving and business tools application AirAustralasia understand the highly competitive nature of the modern airline industry  and so are keen to ensure that they have a clear examination of the issues that will  inform the supply chain requirements to run the business. Client Requirement The client is looking for a consultant to provide a report in critically discussing how  they would addresses the above aspects with a clear analysis of the supply chain  required to support the setting up of a low cost airline within the Australasian market,  meeting the aims and objectives identified. 

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During the global pandemic, digital technologies are playing a crucial role in supporting us in the fight against COVID-19 and keeping our society functional

Assessment 1: Report
Group/individual: Individual
Word count / Time provided: 2500
Weighting: 30%
Unit Learning Outcomes: ULO-1, ULO-2, ULO-3, ULO-5
Assessment Details:
During the global pandemic, digital technologies are playing a crucial role in supporting us in the fight against COVID-19 and keeping our society functional. Write a report on current trends on technological innovation that has helped in the fight against Covid-19 and build a resilient society. Identify five examples of current trends in technological innovation and then focus the report on one innovation in detail. In addition, identify one company that is using that technological innovation for its competitive advantage and discuss in detail its application. You must be able to identify and synthesise relevant information. You should examine and critically evaluate the most relevant, recent, and scholarly research on a topic (in this case, current trends on technological innovation to combat COVID-19 and continue business as usual). Write the report by following the structure: an introduction, a series of body paragraphs, and a conclusion.
In this assessment, you will have to complete the following tasks:
a. In the introduction, you will have to discuss about current pandemic crisis in brief and how the businesses are keeping our society functional with current and emerging technological. Identify FIVE examples of current technological trends and emerging technological trends and discuss their effect on how we do business, work, trade, learn, seek medical services or entertain for example.
b. In the body of the paragraphs, you will have to identify one current technological trend of your choice and discuss in detail about that technological innovation. Identify the source of technological innovation and type of technological innovation (whether it is incremental or radical; disruptive or sustaining etc). In addition, you will have to identify a company that uses that technological innovation for its competitive advantage and discuss in detail its application including its advantages and disadvantages. Furthermore, identify and discuss where in the technological cycles, does this technological innovation lies and why? (Refer to lecture 2 for technology cycles).
For this part of the assessments, you will have to conduct literature search from current and credible resources to describe one latest innovative technology useful for business information system.
c. In concluding paragraph, you will have to summarise and link the arguments presented in the body to form sound and logical conclusions.
For successful completion of this assessment, you are required to study the material provided (lecture slides, tutorials, and reading materials), engage in the unit’s activities, and in the class discussion. The prescribed textbook is the main reference along with the recommended reading material. Students are expected to discuss their work with lecturer and to seek support.
Marking criteria and Rubric: The assessment 2 – Report A will be marked out of 100 and will be weighted 30% of the total unit mark.
Marking Criteria Not satisfactory
(0-49%) of the criterion mark) Satisfactory
(50-64%) of the criterion mark Good
(65-74%) of the criterion mark Very Good
(75-84%) of the criterion mark Excellent
(85-100%) of the criterion mark
Identifies and discusses by giving examples on the current and emerging technological trends to keep society functional amid COVID-19 pandemic. (30 marks) Poor identification and discussion without any examples on the current and emerging technological trends to keep society functional during COVID19 pandemic. Partially identifies and discusses with only one example on the current technological trends to keep society functional amid COVID19 pandemic. Good identification and discussion on the current technological trends to keep society functional with two or more examples during
COVID-19 An excellent identification and discussion on the current
technological trends to keep society functional with five examples Outstanding identification and discussion on the current technological trends in business to keep society functional with more than five examples.
Critical analysis presented.
Discusses in detail about one technological trend with example of a company using that technological innovation for its competitive advantage during COVIC-19 pandemic. (30 marks) Poor identification and discussion of one technological trend during COVIC-19 pandemic. Partially identifies and discusses one technological trend with example of a company using that technological innovation during COVIC-19 pandemic. Good identification and discussion of one technological trend with example of a company using that technological innovation during COVID-19 pandemic. An excellent identification and discussion on one technological trend in detail with example of a company of a company using that technological innovation for its competitive advantage during COVID-19 pandemic. Outstanding identification and discussion on one technological trend in detail with example of a company using that technological innovation for its competitive advantage during COVID-19 pandemic.
Identification and discussion of sources and types of technological innovation (10 marks) Poor Identification and discussion of sources and types of technological innovation Basic Identification and discussion of sources and types of technological innovation Good Identification and discussion of sources and types of technological innovation An excellent Identification and discussion of sources and types of technological innovation Outstanding Identification and discussion of sources and types of technological innovation
Use of references
Integrates evidence-based literature throughout the report to support the discussion with correct referencing (Harvard Author Date system
(15 marks) No or very few sources have been used and they are of poor academic quality and not relevant to the themes of the unit and chosen topic Significant work is required to make citation and list of references consistent with Harvard Author Date system Inadequate sources have been used and they are of poor academic quality and not relevant to the themes of the unit chosen topic. There is little evidence of reading outside the unit. Significant work is required to make citation and list of references consistent with Harvard Author Date system Literature sources are not of high quality or current and not clearly relevant to themes of the unit and chosen topic. There is some evidence of reading outside the unit.
Some work is required to make citation and list of references consistent with Harvard Author Date system Literature is current and used from quality sources.
The student has reviewed widely on the chosen topic. There is an evidence of critical analysis of literature reviewed Intext citation and list of references mostly compliant with Harvard Author Date system Literature is current and used from quality sources. The student has reviewed widely on the chosen topic, beyond the unit resources. A critical analysis of literature is well integrated.
In-text citation and list of references compliant with Harvard Author Date system.
Written expression and presentation
Writes clearly and succinctly in an appropriate academic style. Quality of assessment presentation Demonstrates appropriate use of language, grammar, spelling, and punctuation. (15 marks) The paper lacks transition and therefore difficult to read and understand. Poorly formatted and presented. Inadequate use of language, grammar, spelling, and punctuation The paper lacks consistent transition. Some paragraphs appear unrelated to the preceding ones or to the topic. Fair formatting, acceptable presentation. There are few grammatical error and unintentional errors in acknowledging sources.
The report is written with some transition. Standard formatting, good presentation. The report exhibits appropriate use of language, grammar, spelling, punctuation
References are credited well and used appropriately.
The report is written with a good transition, which is evident from a structure that includes introduction, body and conclusion. Well formatted, attractive presentation. The report exhibits accurate use of language, grammar, spelling, punctuation. References are credited well and used appropriately.
This report is written with a good transition, in a persuasive, which is evident from a clear structure that includes introduction, body and conclusion. The report exhibits exceptional ability in use of correct language. grammar, spelling and punctuation. References are credited well and used appropriately.

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Provide a comprehensive explanation of the role of leadership in the context of the global hotel sector.

 ASSESSMENT 1 BRIEFSubject Code and Title LGH602 Leadership for Global Hospitality
Assessment Individual Case Study Report
Individual/Group Individual
Length 1,500 words (+/- 10%)
Learning Outcomes This assessment addresses the following Subject Learning Outcomes:
a) Provide a comprehensive explanation of the role of leadership in the context of the global hotel sector.
c) Investigate and critically reflect on the emerging contemporary drivers in effective leadership, including adaptive leadership, ethics, sustainability, diversity, cultural and emotional intelligence in relation to students’ leadership.
Weighting 25%
Total Marks 100 marks
Task Summary
Develop a case study on the leadership demonstrated by a hospitality organisation in relation to one (1) of the following 4 global hospitality leadership situations:
1. Ethics (for example, commissions to online travel agents, overbooking, etc.);
2. Sustainability;
3. Employee relations (for example, salary, benefits, working environment, expatriate workers, etc.);
4. Cultural diversity.
You should first identify one of the four areas for discussion that are listed and then choose a hotel leader/brand or hospitality organisation which is focussing on that issue.
You can use your personal experiences of working in hotels or other hospitality sectors, or you can research a hotel leader/brand or other hospitality organisation online.
LGH602_Assessment_1_Brief_Case Study_Week Due 5
Your case study report should consider the following points, using this suggested format:
Torrens Assessment Cover Sheet
Table of Contents
Introduction – outlining what the topic of the report is and then briefly discuss what the reader will learn from reading the report. It usually does not include any referencing.
1. Context for the Case Study
1.1. Explain the area of discussion you have chosen (ethics, sustainability, employee relations, cultural diversity) – why is this an important area for global hospitality?
1.2. Identify and briefly discuss the hotel leader/brand or other hospitality organisation that has been a leader in this area.
1.3. Why are they a leader in this area – what specific initiatives have been developed and implemented in relation to the situation?
1.4. How have they been publicly recognised in relation to this situation? (for example, have they won awards, peer praise, industry recognition etc?)
2. Leadership Case Study
2.1. What leadership behaviours, attitudes and styles have been used/applied throughout the implementation of these initiatives? Did they demonstrate any adaptive or situational leadership in relation to this situation?
2.2. How were these initiatives shared and communicated?
2.3. Are there any ethical issues associated with implementation?
3. Critical Evaluation
A Critical evaluation of the leadership behaviours, attitudes and styles used – was this leadership effective? How would you evaluate the leader’s overall response?
Conclusion – summarising the key points that you made in the body of your report, including the main theory applied. Do not include new information or any references in a Conclusion. It is simply a summary of previous information.
Reference list – minimum of 6 academic and/or industry-related sources with separate listing for visuals/images.
Please refer to the Task Instructions for details on how to complete this task.
Context
• Ensure your research is referenced effectively and correctly (see below).
• Write in the context of the global hospitality industry.
• Make sure that you understand the topic and focus on the topic – do not drift into irrelevant or unnecessary content. If you do not understand the topic, ask your Learning Facilitator.
• Follow a standard report format (see below).
• The submission will be assessed according to the quality and depth of thought, relevance and how effectively you have applied the subject material and theories to the case study, rather than testing how much you can remember and how theoretically correct it is. Refer to the marking criteria (see rubrics and the end of this document) before submitting, and conduct a self-evaluation.
• Stay within the maximum word count of 1,500 words +/- 10% (excluding the Table of Contents, Reference List and Appendices).
Task Instructions
Layout and Presentation
Layout and Presentation of your document is as important as your content. Your assessment is designed to demonstrate your understanding of a certain topic, so it is important to ensure that the layout does not compromise this.
The format is report not essay – and this forms part of your grading. Therefore, students are discouraged from writing lengthy verbose sentences displayed in long chunky paragraphs. Rather students are encouraged to follow the suggested Table of Contents and apply additional formatting mechanisms, (in addition to those outlined in the Torrens/BMIHMS Page Formatting Guide) which reduce wordiness and increase the readability of the content and that are consistent with report writing.
Referencing
Blogs, unauthorised biographies, promotional material, and sensational content must be excluded from the case study report. Students must fully reference all sources of information with in-text citations and a Reference List. A minimum of six (6) academic or recognised industry references are required.
Torrens University Australia uses the APA 7th edition referencing style, and all referencing (both in-text referencing and the Reference List) will be graded according to the APA Academic Writing Guide which can be found on Blackboard. Please note: formal academic referencing will be strictly enforced at Torrens University Australia and Blue Mountains International Hotel Management School and any suspected breaches will be formally reported.
Submission Instructions
• To be submitted via Blackboard in as a word document – submissions sent by email directly to the Learning Facilitator will not be accepted for grading and returned to Student.
• Standard Torrens University Australia penalties will apply for late submissions, equivalent to 10% of the total assessment marks for each day the submission is late.
Academic Integrity
All students are responsible for ensuring that all work submitted is their own and is appropriately referenced and academically written according the Academic Writing Guide. Students also need to have read and be aware of Torrens University Australia Academic Integrity Policy and Procedure and subsequent penalties for academic misconduct. These are viewable online.
Students also must keep a copy of all submitted material and any assessment drafts.
Assessment Rubric
Criteria (100% total) The outcome shows: Fail = Unsatisfactory performance Pass = Just Satisfactory performance Credit = Good quality showing more than satisfactory performance Distinction = Superior quality demonstrating independent thinking High Distinction =
Outstanding quality showing creativity and
originality
Communication and presentation
(20%) Communication is unstructured and unfocused both in written word and document layout. Some communication is effective. Acceptable standard of academic writing, some errors in writing and layout of document. Can communicate
Effectively – good standard of academic writing and well-crafted document layout. Can communicate in a superior manner. High standard of academic writing, no errors evident. High standard in document layout. Can communication high quality, engaging and effective manner, extremely well-crafted document layout.
Attention to purpose (30%) Fails to address the assessment task set. Some of the work is focused on the aims and themes of the assignment. Has addressed the main purpose of the assignment however not in a concise or coherently manner. Has addressed the purpose of the assignment coherently concisely and accurately. Has addressed the purpose of the assignment comprehensively and in a coherent, concise, and accurate manner.
Originality (10%) No real attempt at originality. Originality is marginal to the basic idea. Used imagination to produce an idea with elements of originality. By taking a variety of perspectives, presents an original idea, which has been evaluated. Uses creative and lateral thinking to develop and present original ideas.
Critical thinking and critical evaluation
(20%) Does not exercise critical thinking skills and/or does not apply critical evaluation methods. Aware of some critical thinking/critical evaluation techniques and uses them with limited success. A limited range of critical thinking/critical evaluation techniques applied with some success. A clear range of critical thinking/critical evaluation techniques applied with a good degree of success. A clear range of critical thinking/critical evaluation techniques applied with a high degree success.
LGH602_Assessment_1_Brief_Case Study_Week Due 5 Page 5 of 6
Links to course readings and
additional research
(20%) Incomplete research and links to any course readings. Limited additional research and documented
links to the course material. Good additional independent research evident and some documented links to the course material. Excellent research into the issues with clear links to class and related readings. Research of outstanding quality, clear links to a wide range of theoretical ideas and strategic.
The following Subject Learning Outcomes are addressed in this assessment
SLO a) Provide a comprehensive explanation of the role of leadership in the context of the global hotel sector.
SLO c) Develop and articulate leadership goals and strategies that will consolidate personal leadership capacity through reflection and involvement in industry simulations.
LGH602_Assessment_1_Brief_Case Study_Week Due 5 Page 6 of 6
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Build-A-Bear Workshop (BBW): how to manage the global comeback?

CHAPTER 1 GLOBAL MARKETING IN THE FIRM. CASE STUDY 1.1 Build-A-Bear Workshop (BBW): how to manage the global comeback?
In spring 2010 the founder of BBW, Maxine Clark, is enjoying one of the beautiful May days before she will have to pack her luggage for her next trip to Europe, where she will have some further negotiations with some potential master franchisees. The last two years have been difficult for BBW after a financial crisis that hit the whole world in 2008. Maxine still believes 100 per cent in the BBW concept, which takes advantage of the new trend in our experience economy – to let consumers participate in the creation of customer value. However, it seems that the global wave of enthusiasm has been sated, and how can BBW get it back on track again with new international growth as the result?
Background
Build-A-Bear Workshop, Inc. (BBW) – www. buildabear.com – is the leading and only global company that offers a create-your-own animal service in the retailing experience sector.
Founded in 1997, the company currently operates more than 400 Build-A-Bear Workshop stores worldwide, including company-owned stores in the United States, Puerto Rico, Canada, the United Kingdom, Ireland and France, and franchise stores in Europe, Asia, Australia and Africa.
Build-A-Bear Workshop posted total revenue of $468 million in the fiscal year 2008.
Since opening the first store in St. Louis, Missouri in October 1997, BBW have sold over 70 million stuffed animals. BBW have grown their store base from 200 stores at the end of the fiscal year 2005 to 346 as of 3 January 2009 and increased revenue from $362 million in 2005 to $468 million in the fiscal year 2008.
As of January, 2009, BBW employed approximately 1,200 full-time and 4,800 part-time employees.
BBW does not own or operate any manufacturing facilities. Their animal skins, stuffing, clothing and accessories are produced by factories located primarily in China.
The company’s motto is Where Best Friends Are Made. It is headquartered in Overland, Missouri.
How it started
Maxine Clark left Payless ShoeSource in 1996. At that time she was 47 years old and her financial rewards in retailing had been very high. When she left Payless, she could have left retailing or even retired. She had earned enough money to do anything she wanted, even if pay or responsibilities were not comparable. She had the luxury to learn and start up something totally new.
Generally, she was bored by shopping, and she was looking to recreate the excitement and magic that she felt as a child when she visited certain stores. Going shopping was an event. Customers became part of the store, and it was special.
Maxine Clark remembers:
/ like to say the lightbulb went off for Build-A-Bear Workshop one day in the summer of 1996. I was out shopping with my friend Katie, who was 10 years old at the time. We were on a mission to find Beanie Babies, but the store that had promised a new shipment had none left. Katie looked at me and said, ‘These are so easy – we could make them.’ She meant go to my basement and do a craft project, but what I heard was so much bigger and the idea for Build-A-Bear Workshop was born. Source’, http://www.businessweek.com/smallbiz/content/sep 2007/sb20070912_785676.htm?Chan=search.
In the process of developing a retail entertainment concept for children, Clark visited toy factories and children’s retail stores, put together a list of ideas, then consulted the experts: children. Clark consulted first with the children of a friend, then formed an advisory board of 20 children, ages 6 to 14, and showed them three of her ideas. The decision to pursue the Build-A-Bear concept emerged from the board’s enthusiasm, combined with Clark’s personal preference for teddy bears and the high profit margin for stuffed animals.
Clark then hired design consultant Adrienne Weiss Co. of Los Angeles, using 80 per cent of her $750,000 personal savings investment, to develop the Build-A-Bear concept. Clark collaborated with consultants in developing every detail, including
40 PARTI THE DECISION WHETHER TO INTERNATIONALIZE
artwork, employee costumes, store design and company logo. The logo features a teddy bear being measured, stitched, stuffed and groomed. All lettering is similar to children’s printing.
Maxine Clark opened her first Build-A-Bear Workshop concept store in a St. Louis shopping mall (in the USA) in 1997. Sales were near $400,000 in the store in less than four months.
In 1999 the success of the retail concept attracts venture capital for expansion; Build-A-Bear opens ten new stores in United States. The sales in these stores averaged $700 per square foot of retail space, an enormous success in contrast to national mall averages of $350 per square foot. The cost of opening a new store ranged from $500,000 to $700,000, but with annual sales estimated at $2 million per store, Clark easily found capital investment for expansion.
In 2003 BBW’s international expansion begins with new locations in Canada and England. Although Clark intended to take the company global from its inception, concrete plans did not begin to take shape until late 2002. In November 2002 Build-A-Bear signed a franchise agreement with Japan, held by Tech R&DS Co. Ltd. The company also began a search for locations in the United Kingdom. These new countries for BBW were chosen in response to requests from customers who had visited stores while in the United States or had visited the company’s website. A high number of addresses in the Find-A-Bear ID database for these countries indicated strong interest in the Build-A-Bear concept.
Customers’ retailing experience
A Build-A-Bear Workshop store is an average of 3,000 square feet. Every element of the store design was intended to delight children under the age of 12.
Guests who visit Build-A-Bear Workshop stores enter a teddy bear-themed environment. They will be met by store associates, known as master Bear Builder associates, who share the experience with guests at each of the phases of the bear-making process, which consists of eight stuffed animalmaking stations: Choose Me, Hear Me, Stuff Me, Stitch Me, Fluff Me, Dress Me, Name Me and Take Me Home. To attract their target guests, BBW has designed their stores to provide a ‘theme park’
Build-A-Bear
destination in the mall that is open and inviting with an entryway that spans the majority of their storefront and highly visual and colourful teddy bear themes and displays.
At Choose Me, guests are introduced to all the furry characters in the store and then select one, which soon becomes their new friend. There are more than 30 varieties of stuffed animals including teddy bears, bunnies, dogs, kitties and more. Build-A-Bear Workshop stuffed animals are very affordable, ranging in price from $10-25.
At Hear Me, guests may select from several sound choices to place inside their stuffed animal to further personalize their new friend. The sound chip is inserted safely inside the new friend during the stuffing process. Guests can record their own 10-second Build-A-Sound message. Pre-recorded sounds include giggles, growls, barks, meows and other animal sounds, as well as messages such as ‘I Love You’ or songs like ‘Take Me Out To The Ballgame. At Stuff Me, with the help of master Bear Builder associates, guests fill their new friend with stuffing for just the right amount of huggability. A very special step that is unique to Build-A-Bear Workshop also happens at this station. Each guest selects a small satin heart – a Build-A-Bear Workshop trademark, adds to it his or her own love and wishes, and carefully places it inside their new furry friend. This process brings the furry friendship to life (see picture below). At Stitch Me, the last seam is neatly pulled shut, nearly completing each new best friend. Before CHAPTER 1 GLOBAL MARKETING IN THE FIRM 41 Build-A-Bear stitching the furry friend, the master Bear Builder associate inserts a barcode, allowing it to hopefully be reunited with its owner if ever lost and returned to Build-A-Bear Workshop. Thousands of furry friends have been reunited through our exclusive Find-A-Bear® ID programme. The barcode also generates a unique code on the birth certificate so guests can bring their new friend to life online for free at buildabearville.com to continue their friendship adventure when they get home. At Fluff Me, the guest brushes the animal to make sure their new friend is well groomed and huggablel At Dress Me, guests may dress their new friend in the beary latest furry fashions. The bear apparel boutique features clothes and accessories for all occasions. Build-A-Bear Workshop® even has its own fashion expert mascot, ‘Pawlette Coufur’, Fashion Advisor to the Furry Famous. Build-A-Bear Workshop works with a variety of partners, including Hello Kitty, Disney and Harley-Davidson. At the Name Me the guests answer several questions about their new bear friend, including the birth date and of course, its name. The furry friend is then entered into the Find-A-Bear ID programme and this information is used to create a personalized birth certificate for the furry friend. Finally, at the Take Me Home station, the guests receive their customized birth certificate and a special Stuff Fur Stuff® club membership, a rewards programme for our guests. Instead of a traditional shopping bag, each new furry friend is then placed in their very own ‘Cub Condo carrying case, which is designed as a handy travel carrier and new home.
The duration of a guest’s experience can vary greatly depending on their preferences. Most guests choose to participate in the full animal-making process and all eight stations, a process which BBW believe averages 45 minutes to complete. Because customers are involved with creating their purchase, they remember it vividly and tell lots of other people about it. Almost half of our new customers heard about the store from a friend or family member.
Guests can continue the fun with their bear friends when they get home and sit at their computer. At buildabearville.com, guests can bring their new furry friend to life online for free by using the code found on their birth certificate. They create a unique online character and play games to earn Bear Bills, which can be used to purchase more clothes, furniture for their Cub Condo houses and other items. Guests can also trade items with other citizens in the world. Membership to the site is free and does not expire.
Beyond bringing their new friend to life online for free, guests are rewarded for in-store purchases. When they make a clothing or accessory purchase in store or at www.buildabear.com, they receive a receipt code. The code gives them virtual store credit to use at the Bear Boutique in Build-A-Bearville, which is the only place to find exclusive virtual fashions and furniture items for their virtual furry friends.
To provide the fun of making a furry friend to groups – birthday parties, scout troops, company outings and family reunions – Build-A-Bear Workshop offers a Build-A-Party® programme. This exclusive service allows guests to plan and customize their own party with preselected animals, clothes and accessories.
Overall, BBW believe they are strongly positioned to lead in this retail space with over 70 million stuffed animals sold and over 24 million households in their online database.
On average each customer spends approximately $50 in the BBW store (including web-sales afterwards).
o
42
PART I THE DECISION WHETHER TO INTERNATIONALIZE
Customer feedback drives the business
BBW’s primary audience is e-mail-savvy; the company relies heavily on electronic communications. So, Maxine Clark’s e-mail inbox fills up with 4,000 notes per month, most of them from customers.
Those voices have created most of the company’s new products. Some customer suggestions: add a black Labrador as a product. The company did. In its first six months, it sold 100,000 units. The company had already been offering shoes to go with each animal. Why not add socks, a customer suggested. Shortly thereafter, the company did. Another customer suggested party rooms for birthdays and get-togethers, which the company began to offer in selected stores in 2002.
Every e-mail writer receives a personal response from Maxine Clark or one of the company’s executive team. Maxine Clark stays close to customers with a ‘Cub Advisory Board’, a group of 20 boys and girls 8-17 years old who review new products and suggest additional ones. It meets with Clark and her team three or four times per year.
BBW involvement in cause marketing
BBW believes in the teddy bear philosophy of being good people and good bears. Throughout its 11 -year history the company has given guests a voice to support causes that are important to them, helping children, families, animals and the environment. Since the company’s inception, BBW has donated over $20 million to these causes.
One of these partnership is with the World Wildlife Fund (WWF), offering a series of WWF co-branded plush animals in stores. In 2000 Build-A-Bear Workshop introduced the giant panda, the first in a series of co-branded stuffed animals. Since then, a new furry friend has been launched each year, many representing animals in danger around the world. In addition to the giant panda, Build-A-Bear Workshop has sold the Bengal tiger, leopard, lion, polar bear and the giraffe. Each WWF bear animal comes with a collector’s medallion featuring the WWF official panda logo and a numbered Certificate of Authenticity, further enhancing its value to the collector.
In 2006 BBW announced that it had given $1 million to the WWF through the sales of its WWF Collectibear stuffed animal series. For each plush animal sold one dollar goes to WWF to protect and conserve wildlife around the world.
In 2009 Build-A-Bear Workshop® continued its partnership with the WWF by introducing the newest member of the WWF Collectibear® series.
Starting 28 August, make your own WWF Gray Wolf ($25) at Build-A-Bear Workshop stores or buildabear.com®. In the United States and Canada $1 from the sale will be donated to WWF to help protect endangered animals and their habitats.
BBW retail store base, international expansion and franchise strategy
The BBW retail segment includes the operating activities of company-owned stores in the United States, Canada, the United Kingdom, Ireland and France.
The table lists of BBW’s 346 company-owned stores in the United States, Canada, the United Kingdom, Ireland and France as of 3 January 2009.
Company-owned stores Number of stores (January 2009)
United States 271
Canada 21
United Kingdom:
England 42
Scotland 6
Wales 1
Northern Ireland 1
Ireland 1
France 3
346

In 2003, BBW began to expand the Build-A-Bear Workshop brand outside of the United States, opening company-owned stores in Canada and our first franchised location in the United Kingdom. As of 3 January 2009, there were 62 Build-A-Bear Workshop franchised stores located in the following countries:
Country
No. stores
Japan 10
South Africa 9
Denmark 8
Australia 6
Thailand 6
Singapore 5
Germany 4
Russia 4
Norway + Sweden 3
Benelux* 3
Other 4
Total 62

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theories to global warming

Your assignment is to prepare and submit a paper on theories to global warming.

The above interval shows that 95% of the (T1 – T) values fall in the range (0.582,0.622). Hence, we can conclude that the temperature in the last 50 years is certainly greater as compared to the mid-1850s. This is a clear indication of a significant rise in temperature in this period.This is a graph plotted with ‘year’ on the x-axis and ‘measured temperature’ corresponding to the year on the y-axis. It is very clear that taking into account even in the last 58 years, the temperature of the earth has been rising steadily.1)The 1st survey method shows that there is still a section of people who are not aware of the factual figures regarding global warming and think that this is a much-hyped subject and the issue is not a major cause for concern.2)The 2nd method of obtaining statistical data(series of measurements) is in contradiction with the above observations.

This asserts that there has been a rise of about 0.9°C in the average temperature of the earth over the last century.Indeed, the dynamics and dangers of global warming are alarming.&nbsp.

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How would you characterize the current global BBW strategy

CHAPTER 1 GLOBAL MARKETING IN THE FIRM
39
CASE STUDY 1.1
Build-A-Bear Workshop (BBW): how to manage the global comeback?
In spring 2010 the founder of BBW, Maxine Clark, is enjoying one of the beautiful May days before she will have to pack her luggage for her next trip to Europe, where she will have some further negotiations with some potential master franchisees. The last two years have been difficult for BBW after a financial crisis that hit the whole world in 2008. Maxine still believes 100 per cent in the BBW concept, which takes advantage of the new trend in our experience economy – to let consumers participate in the creation of customer value. However, it seems that the global wave of enthusiasm has been sated, and how can BBW get it back on track again with new international growth as the result?
Background
Build-A-Bear Workshop, Inc. (BBW) – www. buildabear.com – is the leading and only global company that offers a create-your-own animal service in the retailing experience sector.
Founded in 1997, the company currently operates more than 400 Build-A-Bear Workshop stores worldwide, including company-owned stores in the United States, Puerto Rico, Canada, the United Kingdom, Ireland and France, and franchise stores in Europe, Asia, Australia and Africa.
Build-A-Bear Workshop posted total revenue of $468 million in the fiscal year 2008.
Since opening the first store in St. Louis, Missouri in October 1997, BBW have sold over 70 million stuffed animals. BBW have grown their store base from 200 stores at the end of the fiscal year 2005 to 346 as of 3 January 2009 and increased revenue from $362 million in 2005 to $468 million in the fiscal year 2008.
As of January, 2009, BBW employed approximately 1,200 full-time and 4,800 part-time employees.
BBW does not own or operate any manufacturing facilities. Their animal skins, stuffing, clothing and accessories are produced by factories located primarily in China.
The company’s motto is Where Best Friends Are Made. It is headquartered in Overland, Missouri.
How it started
Maxine Clark left Payless ShoeSource in 1996. At that time she was 47 years old and her financial rewards in retailing had been very high. When she left Payless, she could have left retailing or even retired. She had earned enough money to do anything she wanted, even if pay or responsibilities were not comparable. She had the luxury to learn and start up something totally new.
Generally, she was bored by shopping, and she was looking to recreate the excitement and magic that she felt as a child when she visited certain stores. Going shopping was an event. Customers became part of the store, and it was special.
Maxine Clark remembers:
/ like to say the lightbulb went off for Build-A-Bear Workshop one day in the summer of 1996. I was out shopping with my friend Katie, who was 10 years old at the time. We were on a mission to find Beanie Babies, but the store that had promised a new shipment had none left. Katie looked at me and said, ‘These are so easy – we could make them.’ She meant go to my basement and do a craft project, but what I heard was so much bigger and the idea for Build-A-Bear Workshop was born. Source’, http://www.businessweek.com/smallbiz/content/sep 2007/sb20070912_785676.htm?Chan=search.
In the process of developing a retail entertainment concept for children, Clark visited toy factories and children’s retail stores, put together a list of ideas, then consulted the experts: children. Clark consulted first with the children of a friend, then formed an advisory board of 20 children, ages 6 to 14, and showed them three of her ideas. The decision to pursue the Build-A-Bear concept emerged from the board’s enthusiasm, combined with Clark’s personal preference for teddy bears and the high profit margin for stuffed animals.
Clark then hired design consultant Adrienne Weiss Co. of Los Angeles, using 80 per cent of her $750,000 personal savings investment, to develop the Build-A-Bear concept. Clark collaborated with consultants in developing every detail, including
40 PARTI THE DECISION WHETHER TO INTERNATIONALIZE
artwork, employee costumes, store design and company logo. The logo features a teddy bear being measured, stitched, stuffed and groomed. All lettering is similar to children’s printing.
Maxine Clark opened her first Build-A-Bear Workshop concept store in a St. Louis shopping mall (in the USA) in 1997. Sales were near $400,000 in the store in less than four months.
In 1999 the success of the retail concept attracts venture capital for expansion; Build-A-Bear opens ten new stores in United States. The sales in these stores averaged $700 per square foot of retail space, an enormous success in contrast to national mall averages of $350 per square foot. The cost of opening a new store ranged from $500,000 to $700,000, but with annual sales estimated at $2 million per store, Clark easily found capital investment for expansion.
In 2003 BBW’s international expansion begins with new locations in Canada and England. Although Clark intended to take the company global from its inception, concrete plans did not begin to take shape until late 2002. In November 2002 Build-A-Bear signed a franchise agreement with Japan, held by Tech R&DS Co. Ltd. The company also began a search for locations in the United Kingdom. These new countries for BBW were chosen in response to requests from customers who had visited stores while in the United States or had visited the company’s website. A high number of addresses in the Find-A-Bear ID database for these countries indicated strong interest in the Build-A-Bear concept.
Customers’ retailing experience
A Build-A-Bear Workshop store is an average of 3,000 square feet. Every element of the store design was intended to delight children under the age of 12.
Guests who visit Build-A-Bear Workshop stores enter a teddy bear-themed environment. They will be met by store associates, known as master Bear Builder associates, who share the experience with guests at each of the phases of the bear-making process, which consists of eight stuffed animalmaking stations: Choose Me, Hear Me, Stuff Me, Stitch Me, Fluff Me, Dress Me, Name Me and Take Me Home. To attract their target guests, BBW has designed their stores to provide a ‘theme park’
Build-A-Bear
destination in the mall that is open and inviting with an entryway that spans the majority of their storefront and highly visual and colourful teddy bear themes and displays.
At Choose Me, guests are introduced to all the furry characters in the store and then select one, which soon becomes their new friend. There are more than 30 varieties of stuffed animals including teddy bears, bunnies, dogs, kitties and more. Build-A-Bear Workshop stuffed animals are very affordable, ranging in price from $10-25.
At Hear Me, guests may select from several sound choices to place inside their stuffed animal to further personalize their new friend. The sound chip is inserted safely inside the new friend during the stuffing process. Guests can record their own 10-second Build-A-Sound message. Pre-recorded sounds include giggles, growls, barks, meows and other animal sounds, as well as messages such as ‘I Love You’ or songs like ‘Take Me Out To The Ballgame. At Stuff Me, with the help of master Bear Builder associates, guests fill their new friend with stuffing for just the right amount of huggability. A very special step that is unique to Build-A-Bear Workshop also happens at this station. Each guest selects a small satin heart – a Build-A-Bear Workshop trademark, adds to it his or her own love and wishes, and carefully places it inside their new furry friend. This process brings the furry friendship to life (see picture below). At Stitch Me, the last seam is neatly pulled shut, nearly completing each new best friend. Before CHAPTER 1 GLOBAL MARKETING IN THE FIRM 41 Build-A-Bear stitching the furry friend, the master Bear Builder associate inserts a barcode, allowing it to hopefully be reunited with its owner if ever lost and returned to Build-A-Bear Workshop. Thousands of furry friends have been reunited through our exclusive Find-A-Bear® ID programme. The barcode also generates a unique code on the birth certificate so guests can bring their new friend to life online for free at buildabearville.com to continue their friendship adventure when they get home. At Fluff Me, the guest brushes the animal to make sure their new friend is well groomed and huggablel At Dress Me, guests may dress their new friend in the beary latest furry fashions. The bear apparel boutique features clothes and accessories for all occasions. Build-A-Bear Workshop® even has its own fashion expert mascot, ‘Pawlette Coufur’, Fashion Advisor to the Furry Famous. Build-A-Bear Workshop works with a variety of partners, including Hello Kitty, Disney and Harley-Davidson. At the Name Me the guests answer several questions about their new bear friend, including the birth date and of course, its name. The furry friend is then entered into the Find-A-Bear ID programme and this information is used to create a personalized birth certificate for the furry friend. Finally, at the Take Me Home station, the guests receive their customized birth certificate and a special Stuff Fur Stuff® club membership, a rewards programme for our guests. Instead of a traditional shopping bag, each new furry friend is then placed in their very own ‘Cub Condo carrying case, which is designed as a handy travel carrier and new home.
The duration of a guest’s experience can vary greatly depending on their preferences. Most guests choose to participate in the full animal-making process and all eight stations, a process which BBW believe averages 45 minutes to complete. Because customers are involved with creating their purchase, they remember it vividly and tell lots of other people about it. Almost half of our new customers heard about the store from a friend or family member.
Guests can continue the fun with their bear friends when they get home and sit at their computer. At buildabearville.com, guests can bring their new furry friend to life online for free by using the code found on their birth certificate. They create a unique online character and play games to earn Bear Bills, which can be used to purchase more clothes, furniture for their Cub Condo houses and other items. Guests can also trade items with other citizens in the world. Membership to the site is free and does not expire.
Beyond bringing their new friend to life online for free, guests are rewarded for in-store purchases. When they make a clothing or accessory purchase in store or at www.buildabear.com, they receive a receipt code. The code gives them virtual store credit to use at the Bear Boutique in Build-A-Bearville, which is the only place to find exclusive virtual fashions and furniture items for their virtual furry friends.
To provide the fun of making a furry friend to groups – birthday parties, scout troops, company outings and family reunions – Build-A-Bear Workshop offers a Build-A-Party® programme. This exclusive service allows guests to plan and customize their own party with preselected animals, clothes and accessories.
Overall, BBW believe they are strongly positioned to lead in this retail space with over 70 million stuffed animals sold and over 24 million households in their online database.
On average each customer spends approximately $50 in the BBW store (including web-sales afterwards).
o
42
PART I THE DECISION WHETHER TO INTERNATIONALIZE
Customer feedback drives the business
BBW’s primary audience is e-mail-savvy; the company relies heavily on electronic communications. So, Maxine Clark’s e-mail inbox fills up with 4,000 notes per month, most of them from customers.
Those voices have created most of the company’s new products. Some customer suggestions: add a black Labrador as a product. The company did. In its first six months, it sold 100,000 units. The company had already been offering shoes to go with each animal. Why not add socks, a customer suggested. Shortly thereafter, the company did. Another customer suggested party rooms for birthdays and get-togethers, which the company began to offer in selected stores in 2002.
Every e-mail writer receives a personal response from Maxine Clark or one of the company’s executive team. Maxine Clark stays close to customers with a ‘Cub Advisory Board’, a group of 20 boys and girls 8-17 years old who review new products and suggest additional ones. It meets with Clark and her team three or four times per year.
BBW involvement in cause marketing
BBW believes in the teddy bear philosophy of being good people and good bears. Throughout its 11 -year history the company has given guests a voice to support causes that are important to them, helping children, families, animals and the environment. Since the company’s inception, BBW has donated over $20 million to these causes.
One of these partnership is with the World Wildlife Fund (WWF), offering a series of WWF co-branded plush animals in stores. In 2000 Build-A-Bear Workshop introduced the giant panda, the first in a series of co-branded stuffed animals. Since then, a new furry friend has been launched each year, many representing animals in danger around the world. In addition to the giant panda, Build-A-Bear Workshop has sold the Bengal tiger, leopard, lion, polar bear and the giraffe. Each WWF bear animal comes with a collector’s medallion featuring the WWF official panda logo and a numbered Certificate of Authenticity, further enhancing its value to the collector.
In 2006 BBW announced that it had given $1 million to the WWF through the sales of its WWF Collectibear stuffed animal series. For each plush animal sold one dollar goes to WWF to protect and conserve wildlife around the world.
In 2009 Build-A-Bear Workshop® continued its partnership with the WWF by introducing the newest member of the WWF Collectibear® series.
Starting 28 August, make your own WWF Gray Wolf ($25) at Build-A-Bear Workshop stores or buildabear.com®. In the United States and Canada $1 from the sale will be donated to WWF to help protect endangered animals and their habitats.
BBW retail store base, international expansion and franchise strategy
The BBW retail segment includes the operating activities of company-owned stores in the United States, Canada, the United Kingdom, Ireland and France.
The table lists of BBW’s 346 company-owned stores in the United States, Canada, the United Kingdom, Ireland and France as of 3 January 2009.
Company-owned stores Number of stores (January 2009)
United States 271
Canada 21
United Kingdom:
England 42
Scotland 6
Wales 1
Northern Ireland 1
Ireland 1
France 3
346

In 2003, BBW began to expand the Build-A-Bear Workshop brand outside of the United States, opening company-owned stores in Canada and our first franchised location in the United Kingdom. As of 3 January 2009, there were 62 Build-A-Bear Workshop franchised stores located in the following countries:
Country
No. stores
Japan 10
South Africa 9
Denmark 8
Australia 6
Thailand 6
Singapore 5
Germany 4
Russia 4
Norway + Sweden 3
Benelux* 3
Other 4
Total 62

  • Benelux includes Belgium, the Netherlands and Luxembourg.
    CHAPTER 1 GLOBAL MARKETING IN THE FIRM
    43
    All stores outside of the US, Canada, the United Kingdom, Ireland and France are currently operated by third-party franchisees under separate master franchise agreements covering each country. Master franchise rights are typically granted to a franchisee for an entire country or group of countries for a specified term. The terms of these master franchise agreements vary by country but typically BBW receives an initial, one-time franchise fee and continuing royalties based on a percentage of sales made by the franchisees’ stores. The terms of these agreements range up to ten years with a franchisee option to renew for an additional term if certain conditions are met.
    Revenue from international franchise fees was $3.6 million for fiscal 2008 – it represents less than 1 per cent of the total revenues.
    Competition
    Because BBW is mall-based, BBW see their competition as those mall-based retailers that compete for prime mall locations, including various apparel, footwear and specialty retailers. BBW also competes with toy retailers, such as Wal-Mart, Toys fl Us, Target, Kmart and Sears and other discount chains, as well as with a number of companies that sell teddy bears and dolls in the United States and elsewhere, including, but not limited to, Ty, Fisher Price, Mattel, Ganz, Russ Berrie, Applause, Boyd’s, Hasbro, Commonwealth, Gund and Vermont Teddy Bear. Since BBW sells a product that integrates merchandise and experience, BBW also view their competition as any company that competes for guests’ time and entertainment dollars, such as movie theatres, amusement parks and arcades, other mall-based entertainment venues and online entertainment.
    BBW is aware of several small companies that operate ‘make your own’ teddy bear and stuffed animal stores or kiosks in retail locations, but BBW believes none offer the breadth and depth of the Build-A-Bear Workshop experience or operates as a national or international retail company.
    BBW also believes that there is an emerging trend within children’s play patterns towards Internet and online play. According to Emarketer.com, kids aged 8 to 11 reported that they spend between one and two hours online each day. In 2007, 24 per cent of US child and teen Internet users will visit virtual worlds. By 2011, an estimated 53 per cent will do so. Therefore, BBW believes they can compete with other companies and Internet sites that vie for children’s attention in the online space including webkinz.com, clubpenguin.com and neopets.com.
    Until now, Build-A-Bear Workshop is the only virtual world with real world retail stores. A growing number of traditional children’s toy and entertainment companies have also developed their own virtual world online, including Barbie.com, be-bratz.com and virtualmagickingdom.com.
    BBW’s marketing strategy
    While BBW offers consumers an interactive and personalized experience, their tangible product is stuffed animals, including our flagship product, the teddy bear, a widely adored stuffed animal for over 100 years. According to data published by the Toy Industry Association and The NPD Group, sales of the traditional toy market were $22.2 billion in the United States (excluding video games) in 2008 with plush and doll sales having a combined 20 per cent share of the traditional toy market. According to further data provided by The NPD Group, worldwide toy sales topped $71.96 billion dollars in 2007. In 2008, Playthings Magazine ranked BBW as the tenth largest toy retailer in the United States for 2007 based on sales.
    The overall BBW strategy is directly connected to the customer contacts in the BBW store area. In contrary to normal personnel in stores, the BBW shop assistants are trained more to be ‘entertainers’ (providing an experience to the children) than being traditional shop selling assistants.
    BBW’s pricing strategy
    Unlike other mall-based retailers that frequently use markdowns or sale events to drive sales, BBW uses value-added marketing to raise brand awareness and drive traffic to our stores and makes limited use of markdowns.
    BBW’s advertising strategy
    BBW employs a variety of different marketing tools and programmes to drive traffic to their stores and raise brand awareness. BBW use television advertising that targets both children and adults to keep their experience and BBW products at top of mind. Periodically BBW features specific new product introductions and promotions as a call-to-action to visit their stores. BBW also uses radio, print and online advertising integrating their message across various touch points to maximize their reach to new and existing guests. BBW leverages the database from their Stuff Fur Stuff club loyalty programme with over four million active members in their direct mail
    o
    PART I THE DECISION WHETHER TO INTERNATIONALIZE
    I BBB financial situation 2006-2008
    BBW 2008 US$ (millions) 2007 US$ (millions) 2006 US$ (millions)
    Total revenues 467 474 437
    Less costs:
    Variable costs (materials etc.) 270 259 228
    Selling, general, administrative 186 177 159
    Other costs 6 16 21
    Net income (net profits) 5 22 29
    Source’. BBW’s 10K report.
    I Retail sales per gross square foot (only BBW stores in North America)
    Fiscal 2008 US$ Fiscal 2007 US$ Fiscal 2006 US$
    Net retail sales per gross square foot
    Store age 5 years 448 517 577
    Store age 3-5 years 455 537 556
    Store age 3 years 432 497 592
    All comparable stores 445 516 573
    Source’. BBW’s 10K report
    and e-mail programs and provide information and e-commerce on their website, www.buildabear.com.
    BBW have developed licensing and strategic relationships with some of the leading retail and cultural organizations in North America and Europe. We believe that our guest base and our position in our industry category makes us an attractive partner and our customer research and insight allows us to focus on strategic relationships with other companies that we believe are appealing to our guests.
    BBW financial results
    The last three years main financial results of BBW indicate that problems are coming up.
    Same-store sales is Wall Street’s favourite metric for evaluating retailers. Wall Street will take one look at this trend, punish the stock, and move on in search of the next big thing. But could it be that a business still has value despite the pressure on same store sales that we see above? After all, same-store sales is but one metric.
    For example, if costs are dropping faster than sales, there are still profits to be made. Unfortunately,
    Build-A-Bear’s full-year operating margins as a percentage of sales have actually been in decline for the last three years.
    But consider the level of sales a Build-A-Bear store achieves in its first year. If that number is ridiculously high, then there is room to allow for declines in the next several years while still making comfortable profits. For the sake of comparison, here are Build-A-Bear’s sales per square foot compared with an assortment of successful American retailers. BBW use net retail sales per gross square foot and comparable store sales as performance measures for our business. The following table details net retail sales per gross square foot by age of store for the periods presented.
    As seen in Table 2 the sales problems appear to be biggest in the newest stores – at least the percentage drop in retail sales per gross square foot is biggest in stores 3 years.
    Since BBW opened its first store more than 10 years ago, it has expanded to most parts of the world, In the following, the expansion to the Northern European market is further explained.
    CHAPTER 1 GLOBAL MARKETING IN THE FIRM
    45
    BBW expands to Scandinavia and Germany
    In 2002 the Dane, Seren Nielsen and his daughter experienced the BBW concept for the first time in United States. He was very enthusiastic about the concept and shortly after coming home to Denmark formed a company together with some friends. In 2003 this new company, Choose Holding ApS, bought the franchise rights for Denmark for US$250,000. The first BBW shop opened in Copenhagen in April 2004.
    The initial business was to establish five stores in Denmark the first five years, based on the experience in United States, where there is a shop per 1 million inhabitants. However, Choose Holding ApS had established nine stores in Denmark up to August 2009.
    In 2005 Choose Holding ApS acquired the franchise rights for Norway and Sweden. The first store in Sweden opened in 2005, and in Norway in 2006.
    The group is led by John Kristensen and Soren Nielsen and currently has nine stores in Denmark, two in Sweden and one in Norway.
    After the success in Scandinavia, the founders of Choose Holding ApS acquired the franchise rights for Germany for US$750,000. The first two BBW stores opened in Hamburg in 2006 with two further shores in Berlin and Braunschweig. The plan is to open 50 BBW shops in Germany during the next five years. However, the market in Germany is quite different from that in Scandinavia:
    • The children using bears are older.
    • The parents are more involved in the buying process than the children.
    • The dressing in BBW is more relaxed than most Germans are used to – the managers of the German BBW shops are mostly involved with the administrative tasks and not involved with selling and direct contact to customers in the front line -contrary to the traditional BBW way of communicating directly to the customers.
    • The slogan ‘Where best friends are made’ did not work in Germany. It had to be adapted to ‘Beste Freunde zum selbermacheri (Best friends to make for oneself).
    These differences meant at the German BBW shop did not perform as planned, and the four German BBW shops were taken over by one of the founders of Choose Holding ApS in 2008.
    QUESTIONS
  1. How would you characterize the current global BBW strategy?
  2. Is the headquarters of BBW in the USA following the right mixture of own stores and franchised stores?
  3. What would you consider as the main reasons for the BBW failure in Germany?
  4. How should BBW manage the global comeback?
    Sources: www.buildabear.com (Financial Reports, 10K); http:// www.businessweek.com/smallbiz/content/sep2007/sb20070912_ 785676.htm?Chan=search; http://www.fundinguniverse.com/ company-histories/BuildABear-Workshop-Inc-Company-H istory.html; http://www.fyens.dk/article/948187Business- Fyn—Bjoerne-eventyr-fik-voksevaerk (28.02.2008); http://borsen.dk/investor/nyhed/ 122205/.
    CASE STUDY 1.2
    Arcor: a Latin American confectionery player is globalizing its business
    Arcor (www.arcor.com.ar/eng/) was founded in 1951 to produce sweets. However, in order to tell the company’s history fully we must go back to 1924, the year Amos Pagani, a young Italian immigrant, decided to start a bakery in the Province of Cdrdoba. Today Arcor is still a private company owned by the Pagani family.
    In the 1970s and 1980s Arcor transformed itself into a vast industrial complex, showing the way for other companies in the country, and continued to grow both in Argentina and in different countries in the region. Arcor started operations in Paraguay in 1976, in Uruguay in 1979, in Brazil in 1981 and in Chile in 1989

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