MARTINEZ CONSTRUCTION COMPANY IN GERMANY
1. General presentation of the case study (Summary)
Martinez Construction is a well-established construction company in Eastern Spain. Because of a recent decline in contracts in the Spain society, Martinez Construction Company needed to expand to international market in order to survive (expand and grow). After a survey in the international market, the newly formed Democratic Germany seemed the perfect place. Furthermore, the best solution was to acquire an existing firm with the help of Treuhandanstalt (privatization agency). This was a result of the lack of liquidity of the Martinez Company.
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2.2. Identification of the causes that led to the appearance of this/these problem(s):
The problems arise mainly because the CEO of the Spanish company made his decisions of expansion in Germany on a blue-eyed approach. The idea occur to him when meeting German tourists in Spain that were relax and happy without taking into account that the East Germans were not allowed to travel so far and there are important differences between the mentality of Western and Eastern Germany.
Another cause is represented by the Manager’s idea that he can develop a well-established business in the Eastern German because of cheap labor and raw materials. His choice to expand on German marketplace was not based on rational facts or clear developed objectives.
Despite the fact that the management of Martinez Company conduct a series of research regarding the different market entry strategies into German markets which ended with the solution of acquiring a company from THA, a market selection can not rely only on information based on secondary sources. There are always certain information that can only be found when visiting the potential marketplace (distributors, suppliers, the existing management and employees).
2.3. Identification of the potential negative effects that will appear if the problem(s) is/are not going to be solved:
Negative effects on the short-run: * Lack of experience in managing
With up to date analysis of competitors marketing strategy and tactics Kudler can keep its own marketing strategy and tactics prepared to do whatever is necessary to market better quality and win the satisfaction of consumers over its competitors. Whether it is producing a larger selection of wines, expanding its bakery products, finding new ways to make its meats and seafood tastier than its competitors, or even lowering prices, Kudler can lower its prices to gain market advantage only if it has up to date information about competitor’s prices. Same with its products, Kudler can only differentiate its products if it knows sufficient information about competitor’s products (Business Marketing Plan.net, 2011).
Based on the results of Kudler’s marketing research, making it possible to offer similar options, in addition, its existing growth strategy may prove to become a profitable path for Kudler to take. On the other hand, the research could find that
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The topic being researched is how Kudler Fine Foods can improve the success of the business by preparing for possible competition, and streamlining expansion procedures. The sources used are the Kudler Fine Foods Strategic Plan, and The University of Phoenix online databases. Findings suggest that implementing a research and market analysis plan, as well as an effective risk management plan will ensure successful expansion and growth of Kudler Fine Foods. A risk management plan and market analysis of new locations, will allow Kudler to acknowledge potential problems and pre pare for them. The following is a problem statement explaining what is currently wrong with Kudlers plans on expansion, and how they can improve these
Kudler Fine Foods is the brain child of Kathy Kudler. She envisioned a one stop gourmet food store and has grown to three locations to date. She continues to maintain direct control over large bulk purchase order items, stringent customer service policies, and hiring. This paper discusses how the organization competes in the marketplace and the strengths and weaknesses of the company according to the marketing surveys their customers completed. The following also discusses which market structure best applies to the organization and how that structure positively and negatively affects the firm, how the effectiveness of the competitive strategies in the market structure affect the
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