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An analysis of hub expansion
Current Situation    • Weathered Euro crisis and has continued to increase      turnover and reduce costs since 2009Refere...
European Market    Flora Holland has seen a rapid increase in imports as a    percentage of sales with 15% of sales being ...
Necessity of new hubs• To improve market share and consolidate  markets• Improves logistics to distant customers• Access t...
Political• There is a big difference between western  Europe/Central Europe and Southern  Europe/Eastern Europe• Example i...
Economic• Cheaper labour costs often in Eastern  European countries• Euro crisis could further damage the  growing markets...
Cultural• Between Holland and Germany there are minimal  differences in culture• However Poland and the Netherlands have m...
Recommendations• We recommend that Flora Holland create  a hub in the port of Rostock• Advantages are the direct route by ...
Any Questions?
References1)   http://www.floraholland.com/en/AboutFloraHolland/Cooperative/Pages/Annualreport.aspx page 82)   http://www....
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Flora holland presentation

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Flora holland presentation

  1. 1. An analysis of hub expansion
  2. 2. Current Situation • Weathered Euro crisis and has continued to increase turnover and reduce costs since 2009Reference:1 • However net profits have decreased and the company has began to internationalize more with imports increasing year on year as well as a new hub in Germany • Difficulties expanding into new areas due to the distance from North America and the local to local market common in Asia
  3. 3. European Market Flora Holland has seen a rapid increase in imports as a percentage of sales with 15% of sales being made up of imports in 2006 and by 2011 this had rose to 25% of sales (Flora Holland Annual Report, 2011).Reference 2
  4. 4. Necessity of new hubs• To improve market share and consolidate markets• Improves logistics to distant customers• Access to new markets• Consolidation of current markets• Disadvantage is the initial costs, cultural differences and its risky
  5. 5. Political• There is a big difference between western Europe/Central Europe and Southern Europe/Eastern Europe• Example is Belarus with an authoritarian leader and human rights abuses• Some countries still have trade barriers that make it difficult for foreign companiesReference 3
  6. 6. Economic• Cheaper labour costs often in Eastern European countries• Euro crisis could further damage the growing markets within Europe
  7. 7. Cultural• Between Holland and Germany there are minimal differences in culture• However Poland and the Netherlands have major differences Reference 4
  8. 8. Recommendations• We recommend that Flora Holland create a hub in the port of Rostock• Advantages are the direct route by sea to Russia and transporting by ship is up to 70% cheaper than other methods• Furthermore it is closer to eastern Europe so the flowers will be easier to transport to countries such as Poland, Ukraine etc
  9. 9. Any Questions?
  10. 10. References1) http://www.floraholland.com/en/AboutFloraHolland/Cooperative/Pages/Annualreport.aspx page 82) http://www.floraholland.com/en/AboutFloraHolland/Cooperative/Pages/Annualreport.aspx Page 123) http://russianlaw.org/Lukashenka/Library/2011-02-01_CIA-Belarus.pdf4) www.geert-hofstede.com/netherlands.html

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