Summary of Case Analysis: Goodyear Tire and Rubber Company
1. INTRODUCTION GOODYEAR TIRE AND RUBBER COMPANY
Goodyear Tire and Rubber Company, was founded in 1898 and was the world tire production leader until November 1990 when Groupe Michelin took over after merging with Uniroyal Goodrich Tire Company.
Goodyear¡¦s principal business is the development, manufacture, distribution, and sale of tires throughout the world. Its tires and tube sales represent 83 % of 1991 corporate sales of $10.9 billion with corporate wide earnings of $96.9 million. It has its owned Goodyear Auto Service Centers and franchised Goodyear Tire Dealers in supporting its distribution and sale of tires in US.
Goodyear controls 20 percent of
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SITUATION ANALYSIS
We need to consider a number of relevant information prior to making the decision. The information that needs to be considered is:
(a) What are Goodyear¡¦s situation, its strength, weaknesses, opportunities and threat?
Table 4 ¡VSWOT Analysis on Goodyear
Strength Weaknesses
„X 94 years of experience
„X 37% of US tire-making capacity
„X 60% in the Tire Replacement market (Top Ten in US)
„X 40% in the Original Equipment Manufacturer market
„X Market leader in North America
„X Broadest line of product
„X Broad market brand names with 11 brand names
„X Premium quality brands
„X A leading national advertiser
„X 8000 retails point of sale
„X 1000 company owned Goodyear Auto Service Centers
„X 2500 franchised Tire Dealers „X exclusive distribution policy
„X lack of customer service
Opportunities Threat
„X Additional 850 retails channels „X 2 million Goodyear brands were replace annually at Sears
„X growth of warehouse membership club stores and discount tire retails
„X customers loyalty to Sears
(b) What is the position of Goodyear in the Tire Industry?
There are 2 types of market in the tire industry, namely;
(i) Original Equipment Tire market;
Original equipment tires are sold by
Siam Cement’s offer to purchase an initial order of 200 units at $9,000 per unit, would lead to a net profit of $200,000. While this immediate cash influx may seem advantageous in the short term, it will not offset yearly operational expenses of $250,000 (See Exhibit 1). Additionally, accepting Siam Cement’s offer would position Rubbertech as an Original Equipment Manufacturer (OEM). This decision could impede potential growth that would far exceed the offer that is currently on the table. If Rubbertech does not accept Siam Cement’s offer, they can seize a part of
underlying importance of these issues is how we come to our final decision and how we
In making our final decision, we have undertaken extensive qualitative and quantitative analysis. Such factors we have taken into consideration are the future trend of linerboard prices, the
These number will be used for predicting future financial statements later in this case study.
For the basic earnings per share: according to Canadian Tire’s annual report, basic earnings per share is calculated using the net income attributable to the shareholders of the Company divided by the weighted average number of Common and Class A Non-Voting shares outstanding during the reporting period. (p75, Canadian Tire annual report)
Below are the criteria that will inform her decision on which alternatives satisfies her objective:
Being the headquarters of the Michelin tire company, this major export have profoundly shaped their economic stance. Contradicting the presence of a small market, Auvergne has shown to thrive by developing other companies such as the Volvic Mineral Water, Limigrain, Centre France-La Montagne, and more. The contribution of these companies have exported more than 75% of their
Addressing these questions will enable decision makers to adequately assess the information being presented and make the necessary decisions in implementing the changes or new processes necessary.
Perform a Situation Analysis: What is rousing the requirement for a choice? What might happen if no choice is made? Who will the choice effect (both straightforwardly and by implication)? What information, investigation, research, or supporting data do you need to approve the slants driving your choice?
Back in 1898, Frank Seiberling created, The Goodyear Tire and Rubber Company. It is based in Akron, Ohio.
There have to many factors that have to be consideration before it is decide if it is appropriate or not for a
Evaluate the decision- collect data of how well the choice you made worked (Bateman, 2003).
In the nineties, General Motors's largest profits were made on large trucks and sport vehicles.
If you need to purchase new tires this spring for your vehicle, make sure that you keep the following four things in mind as you go through the tire-purchasing process.
Kal Tire is a tire production company that was established in 1953 by Thomas J. Foord and Jim Lochhead. Its headquarters are located in Vernon, British Columbia and it was named after a prominent lake in the region– the Kalamalka Lake. It has grown over time and now boasts of 165 branches in several regions. They have a wide market reaching many parts of the world including Ghana and Argentina. The products offered by Kal tire include tires and wheels for many sizes of vehicles from small trucks to trailers.