Cases Answer

CASESTUDY#37I RI DI UM READER’ STHOUGH GHTS: Whi c hc har ac t er i s t i c sofi r i di um’ spr oduc tdoy out hi nkwer emos ti mpor t antt opot ent i al c us t omer s ? Gl ob al r e ac h?So un dqu al i t y ?Si z ean dwe i g hto fp ho ne ?Pr i c e?Ot Ot h er s ?

- The most important characteristics to the potential customers of Iridium is the PRICE of  the product. The service was quite expensive for customers and the cellular phone business had already boomin in developed countries. !o instead of subscribin to Iridium" customers preferred Cellular services. #here would you have positioned the product$ - I would have position the product based on mar%etin stratey of choosin the individuals or roup of people needs it &taret mar%et'" a(ordable prices and quality services.  Throuh lowerin  Throuh lowerin the cost of expenses" expenses" )ndin )ndin ways to minimi*e minimi*e establishi establishin n infrastructure satellites" advertisin how the product can connect people worldwide and extensive contract between customers" investors and company. +. ,o you thin% di(erent product positionin would have saved iridium from ban%ruptcy$ - I thin% so. If Iridium services was initially o(ered to speci)c taret mar%et.  They should should o(er products products to to companies companies li%e li%e shippin" shippin" airlines" travel" and overnme overnment nt oces- such as military and navy that often o in di(erent places around the world rather than individual that needs lobal connectivity. The product is much )tted and useful to these mar%et.

           CaseSt udyno.9 TheOr esundBr i dge 1. Ex pl ai nwh yt hedemandf ort hebr i dgei sl i k el yt obepr i c eel as t i c . Wek n owt ha tPr i c ee l a st i c i t yme me an st h att h er ei sap er c e nt a gec ha ng ei nq ua nt i t yde ma ma nd edd uet o per c ent agec hangei np r i c e.Her et hedema ndf o rt hebr i dg ei sl i k el yapr i c eel a st i c .Sowec an c onc l udet hatt hebr i dgeha veas ubs t i t ut e.Thati saf er r yore venwor k i ngf r om homeav ai l abl e.That meanst he yus emor ef er r yt hanbr i dge.Suppos et het ar r i foff er r yi ndec r eased they can use more bride instead of more ferry.

/. If the !wedish overnment estimates that the price elasticity is 0.1" calculate the e(ect on trac usin the bride" statin any assumptions. -This has several implications for the trac on the bride. The !wedish overnment %nows that )rst of all" an inverse relationship exists. This means that a decrease in price will de)nitely increase the demand" that could create heavy trac" and this can help the overnment in properly pricin it. The second implication is that any chane in price will have 0.1 times the chane on the demand. This means that for the overnment" it is bene)cial to decrease the price to increase the demand. 2or example" if the overnment reduces the price by 034" then it will result in a 014 increase in demand. +.#hy is the calculation above not li%ely to ive an accurate forecast for the lon term$ -2or one thin" the price elasticity of any newly introduced ood or service is bound to be low5 after all" most people lived without the said ood or serve all this time. In the same way as start-ups aim to build brand loyalty by ma%in the new consumer wonder how it was that he ever lived without the services o(ered by the start-up" the same should be the case with respect to the bride for it to eventually become less priceelastic. The aim of the bride however" is chie6y for the sa%e of tourism" which is not a 7necessity8" rather" it is a 7luxury8. The price elasticities of luxuries is always reater than that of necessities5 the car industry would most de)nitely lose many more customers by raisin its price than would" say" the wheat industry. 9owever we have to be careful to remember that price elasticity of demand depends to a lare extent on the availability of substitutes. :lthouh at )rst siht it seems that there is no substitute to the bride &and its price elasticity of demand should therefore be hih'" which is true" the fact that the bride is mostly used to travel to another city to visit cafes" we see that althouh each countryman;s own cafes are not perfect substitutes for their neihbour;s cafes" they are still quite close. If" on the other hand" the bride were used more for the reason that people needed to travel to their
   CASESTUDY#3 5 Reader sThought s: 1.Ho ws houl dsmal l mi nor i t ys ha r ehol d er so fHans hi nEl ec t r i cRai l wa yr e spon dt oHank y u’ sc as h o ff e r ? 2 .Wa si sr e as o na bl et oM&ACo ns u l t i n gt oac c e ptt h eHa nk y uc as hoff er ? 3.Whatwast head v an t aget oHan ky uofs t r uc t ur i ngt het ak eo v ert ot wo t i erb i d? Answer : 1.Smal l mi nor i t ys har ehol der ss t i l l di s agr eedb yabout¥100ont hepr i c e.Al s os t andar dandpoor a na l y s tKa t s uy u ki Na ka i ,q ue s t i o ne dt h es y ne r g i e sbe t wee nHa nk y uan dHa ns hi n .“ Th er ear eno a pp ar en ta dv a nt ag esi nt h er a i l wa yb us i n es s … gi v e ns ma l l c omp l eme nt ar yeff ec t sf r o mt he i rr ai l wa y r o ut e s… un cl e arh owmu c hs y ne r g yc a nb ea ch i e v edi nt h er e al e s t a t ede v el o pme nta ndr e t a i l i n g bus i nes ses . ”I ni t i al l y ,Mr .Mur ak ami oppos edt heHank yuofferasbei ngt ool ow.Nev er t hel es s,j us ta

we ekl a t e r ,o nJ un e5 ,2 00 6,h ea gr e edt oHa nk y u’ sbi d .Her e ma r k e d,“ Ih op et h ene wc omp an ywi l l b ema na ge dwi t hs h ar e ho l d er si nmi n d. " 2 .I ti sr ea s ona bl ef o rM&ACo ns u l t i n gt oac c ep tt h eHa nk y uca s ho ffe rb ec au s eM&ACo ns ul t i n g, s t a r t e dt ous ei t sn ewl ya c qu i r e ds t a k et oHan s hi nt oma k er a di c al de ma nd sont h ema nag eme nt . Ha ns hi n ,wor r i edt ot hepr opo sal sf r om M&ACon sul t i ngt h ati nc l udedt hemaj or i t yr epr es ent at i onon t h eb oa r d ,r e s po nd edbydi s c u s s i n game r g erwi t hHa nk y u .Th ep l a nn edde al h ast obea pp r o v e db y Mr .Mu r a k ami ,wh os eM&ACo ns ul t i n gwo ul dha v et ose l l i t s47p er c en ts t a k e. 3 .Themo v epa v est h ewa yf o rt h efi r s tma j o rt a k eo v era mo ngJ a pa n’ spr i v a t er a i l wa y ss i n cet h e s ec ondwor l dwar .AHank y uHans hi nc ombi na t i onwou l dc r eat eJ ap an ’ st hi r dl ar ge str ai l wa yi nt er ms ofr e v enue .Thes har ehol dera ct i v i s t ,wh og ai nedar epu t at i onf o rmak i ngs t r i ng entde mand sont he c ompa ni e si nwh i c hhei n v es t e d,wa ss pea k i n gaf e wh ou r sbe f or eb ei n ga r r e s t e db ypr o s ec ut or son i ns i dert r adi ngc har ges . Ha nk y ul a un ch edat e nd ero ffe rl a s twe ekf o r4 5p erc e nto fHa ns hi natY9 30as ha r e ,v a l u i n g Hans hi natabout$3. 5bn.Theofferwi l l e xpi r eonJ une19.I ft het enderbi di ss uc ces s f ul ,Hank y uwi l l a cq ui r et h er es to fHa ns hi nt hr o ug has ha r es wap–e x c han gi n g1 . 4o fi t so wns h ar e sf o ro nes h ar e i nHa ns hi n .  __________________________________________________________________________ CASESTUDY#4 8 " ATTRACTI NG GEN. YTO ARETAI LCAREER" 1 . )Ho wc a nDi v ade my s t i f ywh ath ap pe nsb eh i n dt h es c e ne san dma k ep ot e nt i a lGe ne r a t i o nY empl o y eesawar eoft heoppur t un i t i esa v ai l abl et ot heb ey ondt h es hopflo or ?

:nswer = ,iva can advertise the fact that there are many di(erent ways to et to the top of the company in hiher upper level manaement at the appropriate channelin of the move. :lso the reat bottom line is that wor%ers can either bene)t the company well beyond the cost of their operation on the distinct opportunities and %eep aain the production process oin. /.' ,iva has implemented a learnin orani*ational culture in an attempt to attract and retain sta(. ,iscuss the possibly pros and cons of this stratey for >eneration ?. :nswer= Pros= @A >en. ? are inherently social demoraphic who )nd it easier to communicate e(ectively throuh their increased connectivity via social media and telecommunications.

@A The naturally inquisitive nature of >en. ? can also brin positive chane into a business. Cons= @A >en. ? are enerally seen as )c%le in terms of lonetivity of their role at a company. @A >en. ? can also cause neative disruption in the wor%place as the Bold uardB of senior manaement strule to adapt. +.' >ive examples of how other orani*ation &perhaps even non-retailers' attract a >en.  ? wor%force. #hat could ,iva learn from other orani*ation$ :nswer= Da%e them an o(er they cant refuse and provide security !how them how the company is adoptin !how them how they can ro# (er wor% life balance !tay up to date with technoloy Challene them with meaninful wor%.

   Case !tudy 13 =The Petroleum Dar%et= 0FG3-/330 0. #hy the price of oil rose sharply in 0FG+" 0FGF" and 0FF3. 0FG+$ - The price of oil rose sharply in 0FG+ when the rani*ation of Petroleum Exportin Countries proclaimed an oil embaro aainst the Hnited !tates" Portual" Rhodesia" and !outh :frica as their response to the ?om ippur war" a war between the :rabs and Israelis. In Jovember" PEC announced a /K4 cut in production which increase the prices of oil from LK.0/ to L00.MK per barrel. 0FGF - It was considered as the /nd oil shoc% because it led to a second drop in supply which drove the price above L+3 per barrel. This drastic production cut caused by the trouble in Iran led to a massive oil shortaes whuch drove the oil price to L/1 per barrel. 0FF3 - In this year" crude oil prices increased to L+/ per barrel because of the invasion of the Iraqi troops to uwait. It created a decline of 1 million barrels per day in world oil production. /. #hy the price fell between 0FN3 and 0FN/" and aain between 0FN/ and 0FNK$ - The year of 0FN3s was considered as the B0FN3s oil lutB It was a serious surplus of crude oil caused by fallin demand. In the Hnited !tates" Europe" and Oapan" oil consumption had fallen 0+4 by 0FN3s. Reduced demand and inreased production produced a lut in the world mar%et. The result has a six year decline in the prices of oil from the year of 0FN3 and was culminated by plunin more than half in 0FNM alone