Preview

MABE Case

Powerful Essays
Open Document
Open Document
2784 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
MABE Case
Key Issue
From the case, we see that the primary source of concern is what Mabe should do with its Joint Venture in Russia in spite of the opportunities, benefits and threats of doing business there. In a nutshell, Mabe is trying to decide whether or not to continue with the Joint Venture (JV hereafter) or seek ways to improve the JVs performance and gain more market share.

Internal Analysis
VRINE Analysis
Resources/Capabilities
Value
Rarity
Inimitability
Non-substitute
Exploitability
Internationalization Strategy √ √ √ X √
Research and Development √ √ √ √ √
Organizational Cultures √ X √ √ √

Internationalization Strategy
MABE has a good internationalization strategy with widely spread manufacturing plants in Mexico and Latin America, such as Venezuela, Colombia, Peru and Ecuador. It relies highly on acquisitions and JVs with local brands to lower manufacturing cost and increase its market share by entering different markets. This strategy is valuable as it decreases net costs and increases net revenues. It is rare because one third of all gas, electric ranges and refrigerators sold in the U.S. are manufactured by MABE. It is also hard to imitate as MABE spent many years to develop its plants in Mexico and Latin America, thus, competitors would face a cost disadvantage in developing similar strategy. Its products can be easily substituted as GE is still one of the largest competitors. However, MABE has exploited the full potential of this strategy in the international market.
Research & Development
In the early stage of development, MABE formed alliance with GE and took advantage of the foreign technology and penetrated new market. Later on, it developed higher and more sophisticated technical skills and decreased reliance on GE and developed its proprietary technology. It has used its R&D capability to exploit opportunities in the electric stoves, refrigerators, dish washing machines and clothing dryers markets. Thus, its

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Case

    • 532 Words
    • 3 Pages

    In the fall of 1977, Michael Stephens, sole proprietor of Stephens Construction, asked Warren Sanders, a local real estate broker, to find a large piece of land that would be suitable for development into a single family residential project. Sanders located several parcels and found a homestead staked and owned by Robert and Arlene Cross. Sanders contacted and met with Robert Cross in February of 1978 and stated that he was looking for land for a developer and had asked Cross to sign a listing agreement, but he refused. In September of 1978, Anders contacted Cross again and showed an offer from Stephens. Cross rejected this and two following offers.…

    • 532 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Through keen managerial strategy our company was able to establish business overseas before our competitors. Pioneering the overseas market allowed us to be able to get our product to as many dealers internationally faster than our competitors. This has allowed us to establish an international reputation which is a main point of emphasis when companies purchases new machinery.…

    • 553 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Case

    • 278 Words
    • 2 Pages

    I think that the owner does need to know a medium amount of knowledge because he needs to be able to handle things wisely. What you know is what you can do.…

    • 278 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Case

    • 397 Words
    • 2 Pages

    Managers are most likely to step across ethical and legal boundaries when the pressure to perform is great. Pressure can be healthy but companies that set high-performance targets and grant large rewards for achieving these must have strong control systems to ensure that people are not tempted to cross boundaries. What are the four important control systems? Please identify each control by name.…

    • 397 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Mabo Case Note

    • 521 Words
    • 3 Pages

    The Merriam people have lived on the Murray Islands in the Torres Strait since well before the colonization of Australia by the British in 1788. The Merriam people have a form of law that regulates their society including the land in their society. The Merriam law was observed by the Merriam people since well before colonization and continues to be observed by the Merriam people. In 1982 the Queensland parliament passed the Queensland Amendment Act 1982 which purported to regulate certain aspects of land including the land of the Merriam people. The Merriam people, led by Eddie Mabo and others, objected to the purported effects of the Queensland Amendment Act 1982 as far as they concerned their land and challenged the legality of the Act by initiating proceedings against the Queensland government in the High Court of Australia. The Queensland Government then enacted the Queensland Coast Islands Declaratory Act 1985 which purported to remove any “other rights, interests and claims whatsoever”[1] in the material land. The Merriam people challenged the Queensland government in the High Court regarding the legality of the Queensland Coast Islands Declaratory Act 1985. This judgment of this action was recorded in Mabo v Queensland (1988) 166 CLR 186, which became known as Mabo No 1. Mabo No 1 held that the Queensland Coast…

    • 521 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Case

    • 655 Words
    • 3 Pages

    Assignment: Your team’s task is to recommend to the Board of Blaine Kitchenware (BKI) whether the firm should undertake the leveraged recap. In doing so, please address the four questions below.  Teams 1-6: your task is to recommend for a leveraged recap with quantitative and qualitative support  Teams 7-13: your task is to recommend against a leveraged recap with quantitative and qualitative support Along with a signed copy of the Marshall Honor Code, submit a hard copy case report of one-page, single-spaced executive summary, summarizing your analysis and recommendation(s), followed by up to five-page legible appendices of supporting calculations, analyses and reference. Note: An excel file with case exhibits 1-4 has been posted on Blackboard. You can only use this file (which contains copyrighted materials) for our class purposes and you may not copy or post the file on any other medium. Objective: This case is designed to provide you with the opportunity to apply financial analysis to critical financial decisions. We will apply various capital structure and payout theories to a leveraged recap decision by 1) examining issues involved in determining the appropriate capital structure, especially as it applies to enterprise and equity valuation; 2) analyzing the impact of the leverage on the weighted average cost of capital of the firm. You might find Chapters 3, 4, 7, 12 and 14-16 of our text useful. Possible concepts used: EFN, growth rates, financial ratios, financial leverage, MM propositions and tradeoff theory, pecking order theory, agency cost theory, share repurchase, special cash dividends, enterprise value, debt and equity value, WACC, cost of debt, cost of equity as well as the CAPM. Questions: 1. Is Blaine Kitchenware, Inc. financially sound? In particular, is the firm profitable? What is the firm’s sustainable growth rate? How is the company currently…

    • 655 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Whirlpool is the world’s largest producer and marketer of small and large home appliances such as mixers, food processors, washing machines, refrigerators, air conditioners, etc. Whirlpool also has a long standing relationship with Sears, which sells Whirlpool products under the brand name Kenmore. In addition to its North American presence (both manufacturing and sales), Whirlpool also has a strong presence in Mexico, and Europe. Being the largest producer in the world has helped Whirlpool to compete on lower costs through economies of scale and through its Global Procurement Organization (GPO). In addition, its large networks also help in distribution, marketing, and ultimately in its sales. Another key factor how it competes is through its relationships with customers such as Sears.…

    • 305 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Case

    • 903 Words
    • 4 Pages

    Sara Lee Corporation uses primarily a related diversification strategy. Note that questions 5 and 6 will be discussion only; no written answers required.…

    • 903 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    case

    • 307 Words
    • 2 Pages

    They have made advertisements waging product wars against Ivory in a stiff competition to take over the personal care market…

    • 307 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Global competition faced by the company- more often in the form of Japanese. GE at present was unable to face it to their full potential…

    • 1386 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Haier Swot

    • 3072 Words
    • 13 Pages

    Haier was just found in 1984. At the beginning stage of its business, it mainly produces household refrigerators as the core product. 20 years later, Haier has obtained the leadership position in the Chinese home appliance industry which consists about 21% of market share. More importantly, Haier has become a multinational company and has expanded its business to America and elsewhere Asia. According to sales, Haier was ranked fourth in the major home appliances industry in the world. What are the seasons behind which make Haier creates such an amazing performance for just 20 years? In the followings, it is going to discuss about the comparative competition of Haier in terms of product, manufacturing, supply chain and distribution network, sales channels, warranty and service and management system.…

    • 3072 Words
    • 13 Pages
    Good Essays
  • Satisfactory Essays

    Case

    • 251 Words
    • 2 Pages

    Starwoods introducing frequest guest program, and $50million ad campaign. Problem: raising costs for all hotels as they need to keep pace with competition.…

    • 251 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Maytag Corporation is an US based company dedicated to designing, building, marketing, and servicing the best appliances in the world. Initially founded in 1893 to manufacture farm equipment, the company converted its object to specialize in appliance manufacturing. After being successful in a niche of higher quality washer in US, Maytag had decided to become a full-line and worldwide manufacturer of appliances through acquisitions. Unfortunately, Maytag managers had to deal with higher costs and lower quality of products manufactured by some of the acquired firms, as well as the differences in organizational cultures. In addition, acquisition brought a deal of problems such as a heavy debt. To improve its financial situation, Maytag 's managers decided to sell the only acquired company operating overseas (Europe, Australia, and New Zealand), but…

    • 3636 Words
    • 24 Pages
    Satisfactory Essays
  • Satisfactory Essays

    (sales increased by 17%). This meant both Coca Cola and Pepsi were losing some of their…

    • 706 Words
    • 6 Pages
    Satisfactory Essays
  • Good Essays

    |international companies for large projects, and has also exhibited adaptability by manufacturing and supplying intermediate products to the | |…

    • 6320 Words
    • 26 Pages
    Good Essays