Besides, Intergum is one of the biggest and most flexible company in the sector with respect...
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Besides, Intergum is one of the biggest and most flexible company in the sector with respect to production capacity and product diversification. On the other hand, due to relative lack of advertisement and promotion campaigns, there is a constant excess capacity in production. Besides, Intergum has been having problems with chewing gum aromas and marketing functions and within the last few years experienced employees have been hired by competitor firms. In the first half of 2019, Intergum tried to retaliate Perfetti by a large-scale advertising and new packaging (plastic and different shaped packages). Yet, this counter move did not provide more than stabilization of market share erosion and even worsened profitability because of higher packaging and promotion costs. One of the most important factors in the chewing gum sector is large scale logistics and distribution network and Intergum has one of the best distribution networks in the sector. Wrigley top management insists on a five-year break-even policy for any strategic investment they make. (Company-declared cost of capital for US dollar investment is around %5 annually). Questions: • Conduct external & internal analysis including all dimensions and scoring. • Prepare separate SWOT tables for the situations in which (a) Wrigley acquires Intergum with renovation. (b) Ülker's plant with expansion; or (c) initiate a greenfield development to invest in Turkey. Identify a five-year strategic plan and key strategic/financial objectives. Decide whether to a) acquire Intergum, b) acquire Ülker's plant or c) invest in Turkish market by Greenfield development options (assume that plant and logistics network can be activated in approximately 1 and a half years for the greenfield option!!!). PLEASE DO INCLUDE YOUR REASONING FOR EACH OF THE DECISION AND ANALYSIS YOU MAKE. OTHERWISE THEY ARE NOT USEFUL. GOOD LUCK! • • . Besides, Intergum is one of the biggest and most flexible company in the sector with respect to production capacity and product diversification. On the other hand, due to relative lack of advertisement and promotion campaigns, there is a constant excess capacity in production. Besides, Intergum has been having problems with chewing gum aromas and marketing functions and within the last few years experienced employees have been hired by competitor firms. In the first half of 2019, Intergum tried to retaliate Perfetti by a large-scale advertising and new packaging (plastic and different shaped packages). Yet, this counter move did not provide more than stabilization of market share erosion and even worsened profitability because of higher packaging and promotion costs. One of the most important factors in the chewing gum sector is large scale logistics and distribution network and Intergum has one of the best distribution networks in the sector. Wrigley top management insists on a five-year break-even policy for any strategic investment they make. (Company-declared cost of capital for US dollar investment is around %5 annually). Questions: • Conduct external & internal analysis including all dimensions and scoring. • Prepare separate SWOT tables for the situations in which (a) Wrigley acquires Intergum with renovation. (b) Ülker's plant with expansion; or (c) initiate a greenfield development to invest in Turkey. Identify a five-year strategic plan and key strategic/financial objectives. Decide whether to a) acquire Intergum, b) acquire Ülker's plant or c) invest in Turkish market by Greenfield development options (assume that plant and logistics network can be activated in approximately 1 and a half years for the greenfield option!!!). PLEASE DO INCLUDE YOUR REASONING FOR EACH OF THE DECISION AND ANALYSIS YOU MAKE. OTHERWISE THEY ARE NOT USEFUL. GOOD LUCK! • • .
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The image youve provided appears to be a case study or exercise related to strategic management and decisionmaking for a company within the chewing gum sector There is a scenario sketched out which se... View the full answer
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Managing Business Ethics Making Ethical Decisions
ISBN: 9781506388595
1st Edition
Authors: Alfred A. Marcus, Timothy J. Hargrave
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