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Lecture 6

BU481 Lecture Notes - Lecture 6: Business Ethics, Free Trade, Inventory Turnover


Department
Business
Course Code
BU481
Professor
Karin Schnarr
Lecture
6

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Ganong Case Policy 1
Key Info:
- Set in 1994
- Losing $$$ for 2 years and need to find a solution that will generate a new $10 million
block of business
Industry Analysis:
Porter’s 5 forces
1. Power of Suppliers
a. Many suppliers (low)
2. Power of Buyers
a. Many Buyers (low)
b. Large Retailers may have larger influence as to distribution channels
3. Threat of New Entrants
a. Low with saturation in the market (low)
4. Threat of Substitutes
a. High with many healthy alternatives coming into the market (high)
5. Rivalry Amongst Competitors (High)
a. Many international competitors with large export/ import presence
Key Success Factors
- oitet to oth the ouit ad to its okes aked aoe all else, iludig
o oasio pofitailit
- the eooi eefit to Atlati Caada povided through the location of head offices
[i Ne Busik} i that egio ould ot e oestated [i elatio to the usiesses
success]
Environment Analysis:
P-
- Free trade Agreement with N.A has hurt Canadian industry with the U.S. ability to use
larger economies of scale (higher unit costs)
E-
- Increase in Canadian export selling
- Foreign ownership of Canadian businesses was high with 60% of industry shipments
S-
- Lower proportion of children in Canada
- Growing number of health conscious Canadians
T-
- Industry is only operating at 75% of production capacity
Direction (vision/ mission)
Value Chain Analysis
- Purchasing of raw materials
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