Strategic Alliances: Reasons and Types

Strategic Alliances: Reasons and Types Introduction Strategic alliances and why are they formed Strategic alliances can be seen as one of the fastest growing trends for business today; Alliances are sweeping through nearly every industry and are becoming an essential driver for their super growth. A strategic alliance, by definition, is a form of affiliation that involves a mutual sharing of resources for the benefit of all of the strategic partners. â€Å"Mutuality† is key (Beavers 2001). The business consideration is whether both alliance partners need each other. Strategic alliances range in size and scope from informal business relationships based on simple contracts to joint venture agreements, some times where corporations are set up to manage the alliance. According to Vyas et al (1995) strategic alliances are cropping up across the global arena mainly due to the maturation of several trends of the 1980s, such as: intensified foreign competition, shortened product life cycles, soaring cost of capital, including the cost of research and development, and ever-growin g demand for new technologies. However, strategic alliances can be tricky. Partnerships foster mutual benefits, but the alliances exist only as long as they are advantageous to both parties. Research indicates that a high proportion of strategic alliances fail (Forbes 2002; Lorange and Roos 1991; Day 1995). This essay explores concept of strategic alliances drawing from Mintzberg et als schools of strategy and then critically identifies the main factors that determine the design and delivery of effective co-operative strategies. It does so by using the case study that pertains to Avebe and Noveon Alliance. Why? For many multinational firms, strategic alliances have become increasingly important tools for ensuring speed and flexibility in carrying out multinational strategies. A typical example is SEVEL (Societa Europea Veicoli Leggeri), the 1978 strategic alliance between Fiat and Peugeot for the production of a new light van named Ducato. Both parties were short on resources and saved time and energy by combining their RD and manufacturing efforts (Lorange and Roos 1991). Strategic alliances can be effective ways to diffuse new technologies rapidly, to enter a new market, to bypass governmental restrictions expeditiously, and/or to learn quickly from the leading firms in a given field Mintzberg et als Schools of Strategy Strategic alliance is an agreement between two or more individuals, or entities, or organisations to cooperate in a specific business activity, so that each benefit from the strength of other and gains competitive advantage. The formulation of strategic alliance has been seen as a response to the globalisation and increasing uncertainty and complexity in the business environment. Strategic alliances involve the sharing of knowledge and expertise between the partners as well as in reducing the risk and costs in areas like relationship with the supplier and the development of new products and technologies. Strategic alliances usually make sense when the parties involved have complimentary strengths. Its unlike full-scale acquisition, an alliance does not give a firm total control over its partners. Avebe and Noveon Alliance Case Study. Avebe, a Dutch company, established in 1919 as a joint sales organisation for the greater part of the Dutch independent potato starch industry. Through research and development, joint ventures and acquisition in Netherlands, Europe and Worldwide, Avebe now plays a major role in the global sales, marketing, production and development of potato starch and starch specialities used in food, pharmaceuticals, animal feed, textile, paper and adhesives. Avebes specialities are used by the textile industry for obtaining good weaving efficiency, to obtain smooth fabrics, and for sharp and durable printing of fabrics. Noveon, headquartered in Cleveland, Ohio with regional centers in Belgium and Hong-Kong, is a leading global producer and marketer of technology advanced speciality chemicals for a broad range consumer and industrial application. Noveon was recognised as leading producer of polymers. It was also acknowledged as the largest producer acrylic acid for synthetic polymer. Reason for cooperation Avebe Avebe was outstanding in printing thickeners but not yet in reactive dye printing market. It was not possible for Avebe to enter into this market as it was purely a starch based industry. Only a combination of starch and synthetic polymer could help them enter this market. For this Avebe had two options- Noveon and Alloid Colloids (under ICI Corporation, England). Combination of Avebes and Noveons products in laboratory test showed excellent printing thickness for reactive printing dye market. The final selection was based on four considerations, namely- Noveon had the same synthetic polymer as that of ICI in dry form and Avebe was expert in dry blending. Dry blends resulted in more efficiency both in space and cost compared to liquid one. Noveons synthetic was proved the best when combined with Avebe than any other. Noveon had excellent market expertise in the US, which Avebe lacked. Combination of Avebe and Noveons expertise expected around 25% of the new market to either company. Reasons for cooperation Noveon Noveons alliance with Avebe started by an accident. Noveon acquired QSI in South Carolina in 1994. QSI used to purchase natural starches from Avebe for its operation. This was the start of their joint venture. Synthetic polymer Noveon had was fairly expensive; while Avebes natural starch was relatively cheap. They expected that blending of these two would result in better quality at reasonable price. Noveon expected that the price of synthetic and natural thickener blends would increase in US and Europe, due to the demand for high quality products. Combination of synthetic and natural thickeners could reduce the cost of dye stuff and chemicals. The saving was estimated to be around $ 1 million per year. Noveon selected Avebe for their technology. Far East and Europe preferred Avebe as their best choice. Initial agreement The agreement was signed by both the companies on 24th March 1995. After two year, to anticipate competition, both the companies formulated a marketing agreement for their joint product. The agreement was as follows- Division of the world market. As per this agreement, Noveon agreed market their product in America and the Caribbean. Avebe agreed to market its product in Europe, Asia- pacific and Russia. China and India was open for both. Restriction on sale of each others product. As per this agreement Avebe was forbidden to sell Noveons product and Noveon agreed not to sell Avebes products to any other company without a prior consent of other. 3) Information exchange/ training. Both Avebe and Noveon agreed for a meeting once in six months to exchange development, manufacturing and technical service information relating to their joint venture. Reasons for alliance 1) Alliances assist the firms learning and diversification into new areas of activities. Alliances help to extend a firms competitive advantage in several ways. A firm enters into strategic alliance because this can potentially provide benefits that are not possible through either internal development or external acquisition. This helps the company to acquire benefit by reducing the cost rather than taking it all by itself. An alliance stand as an intermediate to help the allies enter into new industry and markets. 2) Alliance provide useful platform to test their products in new markets. Alliances help in extending and renewing their sources of competitive advantage while expanding globally. This helps the new companies to enter into new market with little market knowledge. By this these companies learn how to compete in the global market. Working together helps in overcoming the economic obstacles too. 3)  Design School of strategic management- Henry Mintzberg This prescriptive school of Mintzberg see strategy formulation as a process of conception which is responsible for the development of strengths, weaknesses, opportunities and threats of the organisation (SWOT). In this school the strengths and weaknesses are of the company are mapped along with the opportunities and threat in the market place. This is implemented in order to formulate clear and unique strategies in a deliberate process. In this the internal environment is matched to the external environment. This school mainly helps in reducing ambiguity and is mainly used in stable environments. It supports strong and visionary leadership. The main drawback of the design school is that it is weak in a fast moving environment and there are risks of resistance. It also has many variables and is inherently complex and also inflexible. Types of strategic alliances Strategic alliances can be classified into three main types: Shared- supply alliance Shared- supply alliance bring together companies which join forces to achieve economies of scale on a given component or on an individual stage in the production process. The shared elements are further incorporated in products that are further incorporated in products that remain specific to each other and that competes directly in the market. This type of alliance is formed when the minimum efficient size at a particular stage in the production process is much greater than for the entire product, and when neither of the partner produce large enough to achieve the critical size. Shared- supply alliance are usually formed between partners of comparable size. This alliance primarily involves research and development (RD) and manufacturing activities. Coordination of research activities between the partners makes it possible to optimize the use or resources. These alliances are usually formed by firms operating in the same zone. In this case of shared supply alliance the assets and ski lls that the partner companies bring to the joint project are similar in nature and their goal is to benefit from increased economies of scale. Quasi- concentration alliance This alliance brings together companies that develop, produce and market a joint product. There is no open competition in quasi- concentration alliance. Quasi- concentration alliances are primarily characterized by transactions between the consortium of allies and the market. Transactions between the companies are also carried out within the alliance. This alliance covers all the main functions involved in carrying out an activity, that is, research and development, manufacturing, and marketing. Marketing and sales are either split between the partners on the basis of geographic presence or carried out jointly. Complementary alliance. Complimentary alliances bring together companies which contribute assets and skills of different natures to bring up a combined project. Here one manufactures the product, which is marketed by others distribution channels. There is no competition within the allies. This type of an alliance is mainly formed by only two parties.

Irish Studies in the Informatics Age :: Irish Culture European Research

Irish Studies in the Informatics Age [†¦] and Gutenmorg with his cromagnom charter, tintingfast and great primer must once for omniboss step rubrickredd out of the wordpress else is there no virtue more in alcohoran. For that (the rapt one warns) is what papyr is meed of, made of, hides and hints and misses in prints. Till ye finally (though not yet endlike) meet with the acquaintance of Mister Typus, Mistress Tope and all the little typtopies. Fillstup. Finnegans Wake (London: Faber & Faber 1939), p.20. Television kills telephony in brothers' brawl. Ibid., p.52. This essay aims to trace the history and development of the electronic book in Ireland with some consideration of wider cultural issues involved in the very notion of digitising literature for the computer-based reader. In regard to digitising, the Irish book is subject to precisely the same conditions as any other literary product, so considered; that is to say, the processes applied by computers are precisely the same, be the books Irish or otherwise. In consequence the subject of this essay properly concerns textual archives and collections rather than discrete texts, whether held on national servers or linked together in cyberspace in such a way as to constitute a definite cultural topography for the internet user. The electronic Irish book is, then, less the name for a new way of producing literature than a new medium for the 'Irish anthology'—that is, a library of digital texts, however extensive, which has been created to represent (in sample or totality) the Irish lite rary tradition. In prevailing cultural conditions, each item in such a library is likely to be a digital copy of a formerly printed work of the kind in question rather than a new cultural entity generated ab initio within a new cultural medium. As to whether we call our subject the 'electronic Irish book' or the 'Irish electronic book', the difference is roughly analogous to that between 'smoked Irish salmon' and 'Irish smoked salmon'—a significant consideration for shoppers since the former implies a greater authenticity of actual contents than the latter, though not necessarily a superior dining experience. For practical purposes, it is Irish texts that concern us here, whether digitised in Ireland or elsewhere. Texts of other national provenance, whether in English or in another language, are the equivalent to 'Irish smoked salmon' in the foregoing culinary comparison; these may well abound to the degree of greatly outnumbering the others (as they do in any sizeable bookshop), but they are not the subject of this essay.

Under Armour

AU has been able o increase its North American brand awareness by showing the advantages of its differentiated product which has improved athletes' comfort and performance. In order to compete in the global markets against Nikkei and Ideas LILA should consider the following four alternatives: mergers or acquisitions, establishment of foreign subsidiaries, joint ventures, or a continuation of the North American strategy to be used in the international markets.The decision criteria used in evaluating each option looked primarily at how to increase CIA brand awareness and market share, the financial strain on ALGA sources, protection of CIA patents and intellectual property, and the level of control maintained by CIA It is recommended that AU pursue appropriate mergers or acquisitions that will increase its resources and competencies internationally and enable AU to more quickly build its market presence. Aqua's big competitors have been selling their performance apparel internationally for several years, with the added advantage of already having international brand recognition.Since CIA won't have the first-to-market advantage they had in the US Market they need to carefully find complementary companies that can assist in both brand cognition and in core understanding of the global markets. Significant resources will be required initially, but it is expected that this investment will be paid back within 3 to 4 years. If this alternative proves unsuccessful AU should consider a joint venture or alliance which shifts some of the risk on to those other participants.For the full recommendation and action plan please refer to pages 12 to 13. Table of Contents Executive Summary 2 Identification 4 Backgrounds Problem Statement (Scope of Report) 4 Current Strategy 4 Analysis and Evaluation 5 External Analysis Macro-Environments Five Forces Analysis 6 Strategic Group Map 7 Key Success Factors Internal Analysis 9 SOTTO If uncial 9 Alternatives 10 1. Merger and Acquisition s 10 2. Foreign Subsidiaries (Greenfield Venture) 10 3. Joint Ventures and Alliances 11 4.Status Quo – Utilize the IIS Strategy Internationally 11 Decision Criteria 12 Recommendation 12 Action Plan 13 Contingency Plan 13 Appendix A 14 Appendix B 15 Bibliography 16 Identification Background Under Armor (AU), formerly known as KIP Sports, was founded in 1 996 by former University of Maryland football player Kevin Plank. KIP Sports was the originator Of performance apparel engineered with supreme moisture management to keep athletes cool, dry, and light throughout the course of a game, practice, or workout. The company's operations started out of the basement of Kevin Plank's grandmother's house.Shortly after founding KIP Sports, Kevin recruited one of his acquaintances from Maryland University to join the company as a partner. Kip Bulks, the gentlemen brought on as partner utilized his excellent credit rating to open 17 different credit card accounts to fund the cash flow requi rements of KIP Sports. By 1 998 the company's revenues had Increased efficiently enough for KIP Sports to acquire a $250,000 small business loan. The company was ever growing with a broader product line and consumer segments and from time to time it would take out additional loans needed to fund their working capital requirements.It was not until 1999 that Kevin recruited another acquaintance, a gentleman by the name of Ryan Wood from high school, to join the company as Vice President of Sales. In 2005, KIP Sports changed their name to under Armor and went public. This initial offering generated net proceeds of approximately $114. 9 million, from the 9. Million Class A Common stock issued. Problem Statement (Scope of Report) Although AU has done well in the present US market, carving out a sizeable market share, it is unknown how their current strategy will be able to compete with fierce rivals like Nikkei and Ideas on a global frontier.Their big competitors have been able to start selling their performance apparel internationally for several years, with the added advantage of already having international brand recognition, so CIA will no longer have the first-to-market advantage that they had in the US Market. If AU hopes to be successful in the lobar market, they will need to analyze their current strategy while exploring other possibilities to make an informed decision on how best to proceed.Current Strategy The company's principal business activities in 2012 were the development, marketing and distribution of branded performance apparel, footwear, and accessories for men, women, and youths. 90% of its sales were from North American, though international sales were growing. AU uses a broad differentiation strategy as its corporate strategy. It has developed its own patented fabrics to create a differentiated product that its customers are ailing to pay a premium for.Its growth strategy includes broadening its product lines, targeting additional consumer seg ments, increasing distribution, expanding internationally, and growing brand awareness. Aqua's business strategies include how it will compete in each of its product line offerings of apparel, footwear, and accessories for men, women, and youths. Its strategy is to offer a variety of styles and price levels for its customers that will improve comfort, performance, and mobility no matter what weather condition exists. For its apparel it has designed three lines of gear designed o work in various temperatures (Heather, Coolidge, and Legionnaires).Its footwear is designed to be light, breathable, and high performing. Its line of accessories (such as gloves, header and bags) has similar differentiated performance features as Aqua's other products. Aqua's main functional strategies include its marketing brand management and promotion strategies as well as its product design and development strategies. CIA has an extremely large marketing budget (close to 1 68 million in 2011 ) which incl udes athlete endorsements, sponsorship of sporting events and advertising costs.It utilizes an in-house promotion and marketing department whose focus is to increase demand and build brand awareness. Aqua's main retail marketing strategy is to obtain as much CIA exclusive floor space as possible in each Of its major retail stores. Aqua's product design and development strategy is to continually upgrade its products and to use â€Å"visible technology†Ã¢â‚¬Ëœ (Thompson, p C-51) to market the benefits of Aqua's products. There is a high degree of collaboration between the sales, product development, and sports marketing teams in identifying opportunities and markets.Aqua's key operating strategies include its distribution strategies and its sourcing, manufacturing and quality control strategies. Its distribution strategies included wholesale distribution (70%), direct-to-consumer sales (27%), and product licensing (3%). AU has two distribution facilities in Maryland, though it expects to add another facility overseas in the future. Many of Aqua's technically advanced fabrics were developed by third parties. These fabrics are available from a small number of sources. In 2011 CIA had 23 main manufacturers which operated in 16 countries.All manufacturers ad to follow stringent quality control processes and had to adhere to a code of conduct with respect to quality, working conditions and social concerns. Analysis and Evaluation External Analysis Macro-Environment The macro-environment is positive for the sports apparel industry without many restrictive influences in the political or regulatory realm. The most strategically relevant factors of the PESTLE analysis (political factors, economic conditions, socio-cultural forces, technological factors, environment forces, and legal/regulatory Factors) include the socio-cultural forces and technological factors as noted below:Socio-cultural Forces Recreational and professional sports are both very popular in North America and throughout the world. With an emphasis on active and healthy living in addition to the â€Å"life skills† learned in playing on sports teams schools and athletic associations offer many sports opportunities for all ages. Professional sports are a multi-billion dollar industry with athletes and coaches making very large salaries. Although there may be aging demographics in some areas of the world enthusiasm for sports remains high.Technological Factors Technology has only continued to improve as sports apparel companies onetime to refine and develop the relatively newly available â€Å"technologically advanced fabrics and specialized manufacturing techniques† (Thompson, p C-43) in an effort to create a more comfortable, drier experience for the athlete. Great strides continue to be made with these products. Five Forces Analysis Competition from Rival Sellers (Strong): Competition among rival sellers is intense. There are approximately 25 brand-name competit ors in the market for sports apparel, athletic footwear and related accessories in which (AU competes.Aqua's major competitors in its sports performance apparel and athletic footwear include Nikkei, Inc. ND the Ideas Group, both highly successful brand-name global companies. AU competes with other top name brands, such as Columbia, Spryer, and North Face in its performance Skewer products. Nikkei is the clear market leader with approximately 17% of the footwear market share and 4. 4% of the sports apparel market share. Customer Bargaining Power (Strong): Since approximately 70% of AU sales are from retailers, the retailers do have Strong bargaining power. 5% of all retail sales are to large retail chains who also sell Aqua's competitor products. They have the discretion as to whether to allocate a certain level of floor space exclusively to CIA or not. Although there is some differentiation in products between competitors many of the products are fairly standardized, increasing cust omer bargaining power. The cost of switching to competitor brands is likely fairly low as all competitors will be fighting for key retail space. Supplier Bargaining Power (Moderate): CIA specialty fabrics and other raw materials come from a relatively small number of sources.In 2011 , a little more than half of the fabrics used came from six suppliers in several different countries. With only six suppliers for such a large volume the suppliers do have some leverage in increasing their prices. It seems that it may be difficult for LILA to find alternative suppliers, though these suppliers must also depend on the revenues from CIA As such, they will not want to price themselves out of the market and they will want to see CIA succeed. Competition from Potential New Entrants (Weak): Given the strength and number of large brand name competitors already in the industry the threat of new entrants is relatively weak.The Ideas Group has several well-known brands within its company, such as R ebook, Rocket, ND Ideas. Nikkei and CIA are also well-known brands. All of these companies participate heavily in sponsoring sporting events and invest significantly in athlete endorsements. As a result, there are high degrees of customer loyalty, making it difficult for new entrants. These large companies also have well-established networks of distributors. All of these things as well as the capital investment requirements limit the potential of new entrants to the industry.Competition from Producers of Substitute Products (Weak): Although it is unlikely that there are significant substitute products in existence, CIA and its success shows that it is possible for a creative company to enter the industry with some sort of product which would be more appealing. Additionally, both Nikkei and Ideas spend significant amounts of money on research and development. It is possible that one of these competitors will be able to develop a next generation substitute product. Us Mary Overall, th e industry competitive forces are moderate to strong.The competition among rival sellers is quite intense and the retail buyers have significant power in working with all of these sellers. Brand image and loyalty re important in this industry. Nikkei is a well-established company and the clear market leader, but the Ideas Group is also a global leader. CIA has done very well at establishing a solid market share in its sports apparel and training/fitness clothing. Strong profitability is evident in this industry as can be seen in the net profit margins among Nikkei, the Ideas Group, and Under Armor.Strategic Group Map Key Success Factors Performance and Reliability – To remain competitive in this industry, CIA products must meet or exceed customer expectations for high performance and reliability. CIA was founded on creating clothing that was cooler, drier, and more comfortable for its athletes. AU must continue producing high quality items which can be counted on. This includ es utilizing high quality standards. New Product Development -? In this competitive environment it is important that AU invest sufficient funds into research and development so that it can gain improvements in its fabrics and its products.Additionally, CIA must keep a sufficient number and styles of products available to be able to meet various consumer segments, such as it has done with Heather, Coolidge, and Legionnaires. CIA will need to re-examine its product line and its inventory management systems to ensure it is able to better meet customer needs without high levels of excess inventory. Pricing – Due to the number of brand name competitors in the industry with similar products an appropriate pricing strategy is crucial to Aqua's success. CIA will have to remain vigilant in watching competitor prices and discounts given.Brand and Product Image – Each competitor in this industry will need to continually work on communicating and maintaining its overall brand imag e that is consistent with its mission and vision. Additionally, certain key products should have high visibility in terms of the image they represent. Loyalty from customers will be driven in part by these branding images. Customer Support and Services – In part a company is only as strong as it is perceived to be by its customers. Aqua's retailers and its direct sale customers must be treated fairly and be given adequate support when purchasing AU products.Retailers (representing 70% of sales in 2011) will be driven to work with La's competitors if customer support and service is lacking. If Under Armor is able to successfully manage each of these key success actors which matter to its customers it should have continued competitive success for the long-term. Conclusion The external environment is conducive to successful results and profitability for the current competitors in the sports apparel industry. Although CIA is competing against some large global rivals it has been able to gain substantial market share from 0. 6 percent in 2003 to almost 2. 8 percent in 2011.This is compared with 7. 0% market share for Nikkei and 5. 4% market share for Ideas. AU should be able to remain competitive and earn reasonable profits as long s management remains attentive and pro-active With any changes in the environment. Internal Analysis SOOT under Armor has a variety of strengths which allows them to compete in the highly competitive sports apparel industry. Over the years, the business has focused on building an authentic brand with high quality apparel that has allowed them to gain significant market share from their competitors. Below you will find an analysis of their internal and external environments.Strengths Built an incredibly powerful and authentic brand in a relatively short time Became the official footwear supplier of major league baseball Uses superior scenically advanced fabrics Weaknesses International presence is very low Limited number of distrib utors to ship their products Insufficient tools in place to manage inventory efficiently and accurately Opportunities Ability to broaden Aqua's product offerings for wear in a variety of recreational activities and sports Athletic wear, a category historically dominated by men, is seeing significant growth with females Gender equality continues to grow in other parts of the world The reads Highly competitive market Competitors have a well established footprint in international markets Materials used in AU products are petroleum-based synthesis and therefore subject to crude oil price fluctuation If uncial Under Armor financial shows both positive and negatives (see Appendix A for the full financial details). The profitability ratios are in good standing and are relatively stable over the 5 year period 2006-201 1.The gross profit ratio indicates that CIA has enough revenues to cover operating expenses and leave the company with a profit. The net profit margin shows that their after t ax profits per dollar of sale decreased from 9. 05% in 2006 to 6. 58% in 2011. That is a drop of 2. 47%. The return on total assets and return on shareholder's equity have both decreased from 2006-201 1. A return of 12-15% range is average and Under Armor is at 15. 23% as of 201 1 which is within the range. Liquidity analysis shows that the working capital has improved over the years. As of 2011, the company has $506,056 of internal funds to cover its current liabilities. That is $332,667 more that in 2006 showing a big improvement The leverage ratios show the negative side of Under Armor.The debt to asset ratio has been increasing from 2% in 2006 to 8% in 201 1. This means hat 8% of borrowed funds have been used to finance assets. Also the debt to equity ratio has increased from 3% to 12%. This signifies lower creditworthiness, potential excessive debt and a weaker balance sheet. On the other hand, in order for a business to continue growing and compete with the industry taking on additional loans is a requirement. Even though it appears that CIA has the capability to pay off the debts these ratios should be watched carefully to ensure that covenants are not broken. The activity ratios show that AU inventory management efficiency has decreased over the years. Under Armour AU has been able o increase its North American brand awareness by showing the advantages of its differentiated product which has improved athletes' comfort and performance. In order to compete in the global markets against Nikkei and Ideas LILA should consider the following four alternatives: mergers or acquisitions, establishment of foreign subsidiaries, joint ventures, or a continuation of the North American strategy to be used in the international markets.The decision criteria used in evaluating each option looked primarily at how to increase CIA brand awareness and market share, the financial strain on ALGA sources, protection of CIA patents and intellectual property, and the level of control maintained by CIA It is recommended that AU pursue appropriate mergers or acquisitions that will increase its resources and competencies internationally and enable AU to more quickly build its market presence. Aqua's big competitors have been selling their performance apparel internationally for several years, with the added advantage of already having international brand recognition.Since CIA won't have the first-to-market advantage they had in the US Market they need to carefully find complementary companies that can assist in both brand cognition and in core understanding of the global markets. Significant resources will be required initially, but it is expected that this investment will be paid back within 3 to 4 years. If this alternative proves unsuccessful AU should consider a joint venture or alliance which shifts some of the risk on to those other participants.For the full recommendation and action plan please refer to pages 12 to 13. Table of Contents Executive Summary 2 Identification 4 Backgrounds Problem Statement (Scope of Report) 4 Current Strategy 4 Analysis and Evaluation 5 External Analysis Macro-Environments Five Forces Analysis 6 Strategic Group Map 7 Key Success Factors Internal Analysis 9 SOTTO If uncial 9 Alternatives 10 1. Merger and Acquisition s 10 2. Foreign Subsidiaries (Greenfield Venture) 10 3. Joint Ventures and Alliances 11 4.Status Quo – Utilize the IIS Strategy Internationally 11 Decision Criteria 12 Recommendation 12 Action Plan 13 Contingency Plan 13 Appendix A 14 Appendix B 15 Bibliography 16 Identification Background Under Armor (AU), formerly known as KIP Sports, was founded in 1 996 by former University of Maryland football player Kevin Plank. KIP Sports was the originator Of performance apparel engineered with supreme moisture management to keep athletes cool, dry, and light throughout the course of a game, practice, or workout. The company's operations started out of the basement of Kevin Plank's grandmother's house.Shortly after founding KIP Sports, Kevin recruited one of his acquaintances from Maryland University to join the company as a partner. Kip Bulks, the gentlemen brought on as partner utilized his excellent credit rating to open 17 different credit card accounts to fund the cash flow requi rements of KIP Sports. By 1 998 the company's revenues had Increased efficiently enough for KIP Sports to acquire a $250,000 small business loan. The company was ever growing with a broader product line and consumer segments and from time to time it would take out additional loans needed to fund their working capital requirements.It was not until 1999 that Kevin recruited another acquaintance, a gentleman by the name of Ryan Wood from high school, to join the company as Vice President of Sales. In 2005, KIP Sports changed their name to under Armor and went public. This initial offering generated net proceeds of approximately $114. 9 million, from the 9. Million Class A Common stock issued. Problem Statement (Scope of Report) Although AU has done well in the present US market, carving out a sizeable market share, it is unknown how their current strategy will be able to compete with fierce rivals like Nikkei and Ideas on a global frontier.Their big competitors have been able to start selling their performance apparel internationally for several years, with the added advantage of already having international brand recognition, so CIA will no longer have the first-to-market advantage that they had in the US Market. If AU hopes to be successful in the lobar market, they will need to analyze their current strategy while exploring other possibilities to make an informed decision on how best to proceed.Current Strategy The company's principal business activities in 2012 were the development, marketing and distribution of branded performance apparel, footwear, and accessories for men, women, and youths. 90% of its sales were from North American, though international sales were growing. AU uses a broad differentiation strategy as its corporate strategy. It has developed its own patented fabrics to create a differentiated product that its customers are ailing to pay a premium for.Its growth strategy includes broadening its product lines, targeting additional consumer seg ments, increasing distribution, expanding internationally, and growing brand awareness. Aqua's business strategies include how it will compete in each of its product line offerings of apparel, footwear, and accessories for men, women, and youths. Its strategy is to offer a variety of styles and price levels for its customers that will improve comfort, performance, and mobility no matter what weather condition exists. For its apparel it has designed three lines of gear designed o work in various temperatures (Heather, Coolidge, and Legionnaires).Its footwear is designed to be light, breathable, and high performing. Its line of accessories (such as gloves, header and bags) has similar differentiated performance features as Aqua's other products. Aqua's main functional strategies include its marketing brand management and promotion strategies as well as its product design and development strategies. CIA has an extremely large marketing budget (close to 1 68 million in 2011 ) which incl udes athlete endorsements, sponsorship of sporting events and advertising costs.It utilizes an in-house promotion and marketing department whose focus is to increase demand and build brand awareness. Aqua's main retail marketing strategy is to obtain as much CIA exclusive floor space as possible in each Of its major retail stores. Aqua's product design and development strategy is to continually upgrade its products and to use â€Å"visible technology†Ã¢â‚¬Ëœ (Thompson, p C-51) to market the benefits of Aqua's products. There is a high degree of collaboration between the sales, product development, and sports marketing teams in identifying opportunities and markets.Aqua's key operating strategies include its distribution strategies and its sourcing, manufacturing and quality control strategies. Its distribution strategies included wholesale distribution (70%), direct-to-consumer sales (27%), and product licensing (3%). AU has two distribution facilities in Maryland, though it expects to add another facility overseas in the future. Many of Aqua's technically advanced fabrics were developed by third parties. These fabrics are available from a small number of sources. In 2011 CIA had 23 main manufacturers which operated in 16 countries.All manufacturers ad to follow stringent quality control processes and had to adhere to a code of conduct with respect to quality, working conditions and social concerns. Analysis and Evaluation External Analysis Macro-Environment The macro-environment is positive for the sports apparel industry without many restrictive influences in the political or regulatory realm. The most strategically relevant factors of the PESTLE analysis (political factors, economic conditions, socio-cultural forces, technological factors, environment forces, and legal/regulatory Factors) include the socio-cultural forces and technological factors as noted below:Socio-cultural Forces Recreational and professional sports are both very popular in North America and throughout the world. With an emphasis on active and healthy living in addition to the â€Å"life skills† learned in playing on sports teams schools and athletic associations offer many sports opportunities for all ages. Professional sports are a multi-billion dollar industry with athletes and coaches making very large salaries. Although there may be aging demographics in some areas of the world enthusiasm for sports remains high.Technological Factors Technology has only continued to improve as sports apparel companies onetime to refine and develop the relatively newly available â€Å"technologically advanced fabrics and specialized manufacturing techniques† (Thompson, p C-43) in an effort to create a more comfortable, drier experience for the athlete. Great strides continue to be made with these products. Five Forces Analysis Competition from Rival Sellers (Strong): Competition among rival sellers is intense. There are approximately 25 brand-name competit ors in the market for sports apparel, athletic footwear and related accessories in which (AU competes.Aqua's major competitors in its sports performance apparel and athletic footwear include Nikkei, Inc. ND the Ideas Group, both highly successful brand-name global companies. AU competes with other top name brands, such as Columbia, Spryer, and North Face in its performance Skewer products. Nikkei is the clear market leader with approximately 17% of the footwear market share and 4. 4% of the sports apparel market share. Customer Bargaining Power (Strong): Since approximately 70% of AU sales are from retailers, the retailers do have Strong bargaining power. 5% of all retail sales are to large retail chains who also sell Aqua's competitor products. They have the discretion as to whether to allocate a certain level of floor space exclusively to CIA or not. Although there is some differentiation in products between competitors many of the products are fairly standardized, increasing cust omer bargaining power. The cost of switching to competitor brands is likely fairly low as all competitors will be fighting for key retail space. Supplier Bargaining Power (Moderate): CIA specialty fabrics and other raw materials come from a relatively small number of sources.In 2011 , a little more than half of the fabrics used came from six suppliers in several different countries. With only six suppliers for such a large volume the suppliers do have some leverage in increasing their prices. It seems that it may be difficult for LILA to find alternative suppliers, though these suppliers must also depend on the revenues from CIA As such, they will not want to price themselves out of the market and they will want to see CIA succeed. Competition from Potential New Entrants (Weak): Given the strength and number of large brand name competitors already in the industry the threat of new entrants is relatively weak.The Ideas Group has several well-known brands within its company, such as R ebook, Rocket, ND Ideas. Nikkei and CIA are also well-known brands. All of these companies participate heavily in sponsoring sporting events and invest significantly in athlete endorsements. As a result, there are high degrees of customer loyalty, making it difficult for new entrants. These large companies also have well-established networks of distributors. All of these things as well as the capital investment requirements limit the potential of new entrants to the industry.Competition from Producers of Substitute Products (Weak): Although it is unlikely that there are significant substitute products in existence, CIA and its success shows that it is possible for a creative company to enter the industry with some sort of product which would be more appealing. Additionally, both Nikkei and Ideas spend significant amounts of money on research and development. It is possible that one of these competitors will be able to develop a next generation substitute product. Us Mary Overall, th e industry competitive forces are moderate to strong.The competition among rival sellers is quite intense and the retail buyers have significant power in working with all of these sellers. Brand image and loyalty re important in this industry. Nikkei is a well-established company and the clear market leader, but the Ideas Group is also a global leader. CIA has done very well at establishing a solid market share in its sports apparel and training/fitness clothing. Strong profitability is evident in this industry as can be seen in the net profit margins among Nikkei, the Ideas Group, and Under Armor.Strategic Group Map Key Success Factors Performance and Reliability – To remain competitive in this industry, CIA products must meet or exceed customer expectations for high performance and reliability. CIA was founded on creating clothing that was cooler, drier, and more comfortable for its athletes. AU must continue producing high quality items which can be counted on. This includ es utilizing high quality standards. New Product Development -? In this competitive environment it is important that AU invest sufficient funds into research and development so that it can gain improvements in its fabrics and its products.Additionally, CIA must keep a sufficient number and styles of products available to be able to meet various consumer segments, such as it has done with Heather, Coolidge, and Legionnaires. CIA will need to re-examine its product line and its inventory management systems to ensure it is able to better meet customer needs without high levels of excess inventory. Pricing – Due to the number of brand name competitors in the industry with similar products an appropriate pricing strategy is crucial to Aqua's success. CIA will have to remain vigilant in watching competitor prices and discounts given.Brand and Product Image – Each competitor in this industry will need to continually work on communicating and maintaining its overall brand imag e that is consistent with its mission and vision. Additionally, certain key products should have high visibility in terms of the image they represent. Loyalty from customers will be driven in part by these branding images. Customer Support and Services – In part a company is only as strong as it is perceived to be by its customers. Aqua's retailers and its direct sale customers must be treated fairly and be given adequate support when purchasing AU products.Retailers (representing 70% of sales in 2011) will be driven to work with La's competitors if customer support and service is lacking. If Under Armor is able to successfully manage each of these key success actors which matter to its customers it should have continued competitive success for the long-term. Conclusion The external environment is conducive to successful results and profitability for the current competitors in the sports apparel industry. Although CIA is competing against some large global rivals it has been able to gain substantial market share from 0. 6 percent in 2003 to almost 2. 8 percent in 2011.This is compared with 7. 0% market share for Nikkei and 5. 4% market share for Ideas. AU should be able to remain competitive and earn reasonable profits as long s management remains attentive and pro-active With any changes in the environment. Internal Analysis SOOT under Armor has a variety of strengths which allows them to compete in the highly competitive sports apparel industry. Over the years, the business has focused on building an authentic brand with high quality apparel that has allowed them to gain significant market share from their competitors. Below you will find an analysis of their internal and external environments.Strengths Built an incredibly powerful and authentic brand in a relatively short time Became the official footwear supplier of major league baseball Uses superior scenically advanced fabrics Weaknesses International presence is very low Limited number of distrib utors to ship their products Insufficient tools in place to manage inventory efficiently and accurately Opportunities Ability to broaden Aqua's product offerings for wear in a variety of recreational activities and sports Athletic wear, a category historically dominated by men, is seeing significant growth with females Gender equality continues to grow in other parts of the world The reads Highly competitive market Competitors have a well established footprint in international markets Materials used in AU products are petroleum-based synthesis and therefore subject to crude oil price fluctuation If uncial Under Armor financial shows both positive and negatives (see Appendix A for the full financial details). The profitability ratios are in good standing and are relatively stable over the 5 year period 2006-201 1.The gross profit ratio indicates that CIA has enough revenues to cover operating expenses and leave the company with a profit. The net profit margin shows that their after t ax profits per dollar of sale decreased from 9. 05% in 2006 to 6. 58% in 2011. That is a drop of 2. 47%. The return on total assets and return on shareholder's equity have both decreased from 2006-201 1. A return of 12-15% range is average and Under Armor is at 15. 23% as of 201 1 which is within the range. Liquidity analysis shows that the working capital has improved over the years. As of 2011, the company has $506,056 of internal funds to cover its current liabilities. That is $332,667 more that in 2006 showing a big improvement The leverage ratios show the negative side of Under Armor.The debt to asset ratio has been increasing from 2% in 2006 to 8% in 201 1. This means hat 8% of borrowed funds have been used to finance assets. Also the debt to equity ratio has increased from 3% to 12%. This signifies lower creditworthiness, potential excessive debt and a weaker balance sheet. On the other hand, in order for a business to continue growing and compete with the industry taking on additional loans is a requirement. Even though it appears that CIA has the capability to pay off the debts these ratios should be watched carefully to ensure that covenants are not broken. The activity ratios show that AU inventory management efficiency has decreased over the years.

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Effects of Sex Education on Adolescent Behavior by Deborah Dawson

Effects of Sex Education on Adolescent Behavior by Deborah Dawson Sex education refers to the process in a human life where one acquires information and forms, values, attitudes and beliefs about intimacy, identity and relationships. It includes reproductive health, sexual development, affection, relationships amongst people, roles of different genders and body image. It addresses all aspects of life; psychological, spiritual, social and cultural dimensions.Advertising We will write a custom essay sample on â€Å"Effects of Sex Education on Adolescent Behavior† by Deborah Dawson specifically for you for only $16.05 $11/page Learn More The article on â€Å"Effects of sex education on adolescent behavior† by Deborah Dawson gives different percentages of adolescents in regard to the type of sex information they receive in United States of America; especially on pregnancy and contraceptives. It is a professional journal on sex education. The main effect of sex education on adolescent behavior is reduced adolescen t pregnancies and induced abortions. I like this article because it emphasizes the need to educate the adolescents on sexual issues. The article is an excellent piece of work. I believe sex education impacts greatly on adolescents. Sex education is the tool to ensure the change of attitudes and thoughts amongst teenagers concerning sex, pregnancy and birth control. Sex education helps the participants to gain knowledge on their reproductive health and methods of birth control. Sex education is essential to adolescents. It changes their attitude towards other people’s sexual behavior. It is important to measure the behavioral impacts of sex education. I think the program has great effect on values and attitude of teenagers in regards to sex. Somehow the program could be having no impact on levels of sexual activity amongst teens. All the same, sex education has increased the sense of responsibility among teenagers. There is a positive relationship between use of contraceptives and sex education, which in my view shows responsibility. I believe the levels of sexual activity may remain high, but sex education helps in reducing cases of teenage pregnancy and abortions. The article is an excellent piece of work, but it has a few gaps. The sex education program presented in this case is more of theory than interactive. Students should play active roles, be involved in groups and watch videos for them to see the reality. This will improve its effectiveness. Daniel Wight’s article on â€Å"Limits of teacher delivered sex education† highlights some of the challenges which face sex education program in schools. In his study he involves 25 schools in East Scotland with and his main objective was to establish whether sex education delivered in schools or by teachers’ reduced unsafe sexual intercourse among adolescents.Advertising Looking for essay on health medicine? Let's see if we can help you! Get your first paper with 15% OFF Learn More I like this article because it offers a comprehensive report on limitations of sex education offered at schools. I adolescents spend most of their time at school, which means that teachers should ac like guardians. Also teachers should be able to deliver sex education effectively. The main aim of sex education in schools is to reduce cases of risky sexual behavior among adolescents. The quality of education they get matters most. Such gaps in delivering of sex education calls for other interventions like SHARE which means; Sexual Health Relationships: Safe, Happy and Responsible. In my opinion I would encourage such a programme to complement the school based curriculum. The program proves to be more effective in improving the quality of sexual relationships, reducing unsafe sexual activities and unwanted pregnancies. Sex education should not be a theoretical class work only, but should take a pro-active view in order to be effective. Effective sex education pro gram includes, working in small groups and games, providing sexual health leaflets, using interactive video and playing of different roles in order to develop skills. Including all these aspects in the program ensures that the program is effective. When the interactive program is put in practice, a considerable change of behavior is noticed. This is an excellent article to close up the gaps occurring in sex education delivered by teachers. It shows how delivering of sex education has changed and the results which come with the changes. Dawson, D. (1986). The effects of sex education on adolescent behavior. Family Planning Perspectives, 162-170. Print Wight, D., Raab, G., Henderson, M., Abraham, C., Buston, K., Hart, G. Scott, S. (2002). Limits of teacher delivered sex education: interim behavioral outcomes from randomized trial. BMJ, 324 7351, 1430. Print.Advertising We will write a custom essay sample on â€Å"Effects of Sex Education on Adolescent Behavior† by Deb orah Dawson specifically for you for only $16.05 $11/page Learn More

Dauphin Island Research Paper Example | Topics and Well Written Essays - 2500 words

Dauphin Island - Research Paper Example This essay stresses that Dauphin Island is popular for its many attractions which are located on the east end that include the dauphin island sea lab, fort Gaines, Audubon Bird sanctuary, dauphin island campground and various boat launch spots. Additional attractions found on the island west end include the beautiful beaches with sugar white sand parks and the public golf course. Exceptional condominiums, hotels, motels, and private homes provide good lodging areas for both winter and summer visitors. Delicious restaurants mark the commercial and tourist regions and avail both fresh sea food from gulf waters and traditional menu items. This paper makes a conclusion that mobile mainland coast supports the most extensive and contiguous salt marsh habitat within the Alabama state. This habitat stretches all the way from the cedar point to the Alabama Mississippi line. Dauphin Island has in the past played an important role in the existence of this habitat as it acts as a shield against powerful waves characterizing the Gulf of Mexico known to pose great challenge to the habitat existence. In the recent time things have changed as the Katrina cut and the ongoing islands west end deterioration increasingly expose this valuable marsh habitat and the associated wildlife to powerful waves and consequential shoreline erosion. Absence of protection following the weakening and erosion of Dauphin Island is clearly evident on the salt marshes bordering the mainland coast.

George Gordon Byron Research Paper Example | Topics and Well Written Essays - 1500 words

George Gordon Byron - Research Paper Example Poem 1- She Walks in Beauty 6 A. Personal Analysis 6 A.1. How the Poem Fits into the Era 6 A.2. Literary Analysis 7 V. Poem 2 – The Destruction of Senacherib 8 A. Personal Analysis 8 A.1. How the Poem Fits into the Era 8 A.2. Literary Analysis 8 VI. Poem 3 - Darkness 9 A. Personal Analysis 9 A.1. How the Poem Fits into the Era 9 A.2. Literary Analysis 9 VII. Conclusion 10 Works Cited 11 I. Introduction A. Thesis Statement What seems to stand out from the poetry and from the life of the man, is that of Byron like his poems depicting a kind of beauty that is detached from ordinary reality, and yet so much more beautiful for being so, detached yet somehow real and palpable, and utterly heroic. This seems to represent in one way what Romanticism is all about (Byron; Brooklyn College English Department; Academy of American Poets; Poetry Foundation). B. Brief Overview B.1. Literary Era The literary era to which Byron and his poetry belongs is the era of Romanticism (Brooklyn College English Department). B.2. Biography The poet was born into royalty, and was able to inherit a title, so that by age of 10, he became Baron of Rochdale. His father died at a young age, and he was full of resentment for his mother. He died at the age of 36 (Academy of American Poets) B.3. ... that we inherit the convenient set of terminal dates for the Romantic period, beginning in 1798, the year of the first edition of  Lyrical Ballads  by Wordsworth and Coleridge and of the composition of  Hymns to the Night  by Novalis, and ending in 1832, the year which marked the deaths of both Sir Walter Scott and Goethe. (Brooklyn College English Department) B. Defining the Era, Characteristics of the Poetry There is an emphasis on the individual, the individual as a hero, where the personality is supreme, elevated. Imagination has a central place in Romanticism too, which also likewise was put up in a pedestal as being the best part of the human mind and consciousness. Symbols and symbolism, as they pertain to nature, for instance, were also highly valued. Feelings were given emphasis, especially as with regards to the expression of feelings in poetry (Brooklyn College English Department) C. Era in the Context of British History 1798 marked the year of the Irish Rebelliion , marked by a period of intense conflict between Britain and its neighbor, culminating in union (Bartlett). This period was also marked by the turn of the century struggle between Napoleon on the one hand and Britain on the other, all the way to 1802 (History World). C.4. Era in the Context of World/Global History and Events Elsewhere in the world Napoleon was brought down also during this period, at Waterloo in 1815, and the slaves were finally emancipated in New York around 1827, when slavery was outlawed in that state (Taylor) C.5 How Byron Fits Into This Era Byron was a leading voice of the Romantic era. He is credited with having a large influence on the movement and on the Romantic poets and artists in general, especially with his poem â€Å"Don Juan†. The term â€Å"Byronic hero† is also