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Happy Christmas  Company
 

Happy Christmas Company

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case solution of Happy Christmas company

case solution of Happy Christmas company

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    Happy Christmas  Company Happy Christmas Company Presentation Transcript

    • Situated in YIWU the export hub in chinaProducts are directly related to the charismas. YIWU have market share of 55% of exports in the world.Happy Christmas Company was founded 10 years ago
    • BRAZILCHINA ARGENTINA PESTLE COLOMBIA VENEZUELA
    • POLITICALENVIRONMENTAL ECONOMICAL FACTORS PESTLELEGAL FACTORS SOCIAL FACTORS TECHNOLOGICAL FACTORS
    • Relatively stable industry. Favorable Market Chineseknowledge. consumer behavior. Favorable location Yiwu. HighlyStrong export specialized history. manufacturing techniques.
    • QUALITY ISSUES. REDUCTION IN HUMAN CAPITAL.DISTURBED BRAND IMAGE/ DAMAGED REPUTATION. SEASONAL BUSINESS.
    • Product diversification. Market diversification.Mergers, joint ventures & piggy backing.Targeting other foreign festivals. Large domestic consumer market. Co-branding
    • RELATIVE MARKET SHARE HIGH LOWMARKET GROWTH RATE HIGH BAUBBLES, LOW CHRISTMAS TREES
    • HAPPY CHARISMAS COMPANY IS CURRENTLY FOCUSINGUSA EUROPE RUSSIA
    • POTENTIAL FOREIGN MARKETSSouth American New Zealand Australia countries Brazil Argentina Venezuela Colombia
    • Dominant religion ofREASON TO SELECT THESE Christianity Other main reason is Triad COUNTRIES Same buying behaviors Mature, profitable and stable at Free trade agreement of the the same time Asia Pacific (FTAAP) Different free trade agreements Asia Pacific Economic between China and South Cooperation (APEC) American countries China South America (Economic Forum)
    • Market Penetration ProductDevelopment Market DevelopmentDiversification
    • EXISTING PRODUCTS NEW PRODUCTSEXISTING MARKETS RED ENVELOPE, BAUBBLES, CHRISTMAS EASTERN BUNNIES, TREES HALLOWEEN MASKNEW MARKETS BAUBBLES, CHRISTMAS EASTERN TREES BUNNIES,HALLOWEEN MASK
    • Eastern Bunnies Halloween masksChinese Red Envelope
    • CURRENTLYUSA EUROPE RUSSIA FUTURE SOUTH AMERICA CHINA USA EUROPE RUSSIA Brazil Argentina Venezuela Colombia
    • Carl Star International Group (HK) Ltd (Sea and Air) Sea bay International Freight Forwarding Ltd (Sea) FedEx International Shipping Ltd (Sea and Air)Providing low per unit rates as well additional value added features.
    • Fired its 300 employees Need to havespecialized and Higher wages of experienced labors people. ISSUES REGARDING HUMAN RESOURCE Rising or appreciating Low profits tendency of Chinese Yuan
    • FromChina Large human capital HIRING OF STAFF Aware of their market Buying Culture behavior
    • Skilled Labour will be having “Contracts” with Happy CharismasCompany and they will be considered as the permanent employees of thecompany.(Engineers, Supervisors and Managers) Unskilled Labor will be having “Daily Wage Rates” and they will be considered as temporary employees of the company (labor force).
    • Apprenticeship Job rotation Job instruction training Informal learningOn the job training
    • LOANS FROM DIFFERENT SOURCES
    • 2011 2012 (Projected) SALES 12,880,833 18033166GROSS PROFIT 4,327,327 6,913,608PROFIT AFTER 4,179 1,273,736 TAXEARNING PER 0.010 2.19 SHARETOTAL ASSETS 25,663,254 33,802,074 TOTAL 25,663,254 33,802,074LIABILITIES / OWNER EQUITY
    • Ratio 2012 2011 (Projected) GROSS PROFIT MARGIN 38.34% 33.60% PROFIT/LOSS MARGIN 7.06% 0.03%RETURN ON COMMON EQUITY 23.09% 0.11%
    • PRODUCTCharismas Halloween Eastern Chinese red Baubles trees masks bunnies envelope PRICE Different pricing strategy PLACE China South America PROMOTION Different strategy
    • Words of mouth Using the E-commerce lucky redFollow-up Advertisingwith client Direct Sales pitches marketing Events
    • Words of E-commerce mouth
    • CONCLUSIONS
    • Enhance the quality of their productsCompany should focus on business to business (B2B) in South America Company needs to focus on Uppsala model Company needs to focus on their Human Resource Company should be targeting other festivals It’s time to change; company should change their name Company should focus on direct marketing in china and indirect promotional strategies for South America. In the coming future, the company should focus on USA and Europe
    • THANK YOU