Case Study: Merger Between US Airways and American Airlines

On December 9th, 2013 the two airlines, US Airways and American Airlines merged to form the American Airline Group that turn out to be the major airline in the world. This merger was structured by the enlarged competition that airlines are countenancing in the business at present. The merger offered a prospect for both airlines to make use of the benefits of an extensive network that would effect subsequent to merging as countered to when each one operates separately. One of the foremost circumstances that encircled the merger was the imminent insolvency of American Airlines. The company in 2011 had filed for bankruptcy even though it relapsed to profitability the same year in July.… Read the rest

Case Study on Marketing Strategy: Starbucks Entry to China

Starbucks is one of the largest coffee chains in the World. The company has a unique style and atmosphere in their coffee houses. We chose China because it is the world’s most populous country with over 1.3 billion people live there and second-largest country by land area. After 1978, the country’s economy were underwent dramatic changes which involved such relief as permission for entrepreneurs to start up their own business and opening the country for foreign investment. It is obviously that Starbucks managers decided to take advantage of such opportunity to expand their business into new region. To evaluate Chinese market the company used several steps of analyses.… Read the rest

Global Market Models and Concept Analysis

Managers must be conscious that markets, supplies, investors, locations, partners, and competitors can be anywhere in the world. Successful businesses will take advantage of opportunities wherever they are and will be prepared for downfalls. Evidently, successful managers, in this environment, need to understand the similarities and differences across national boundaries, in order to utilize the opportunities and deal with the potential downfalls. In developing appropriate global strategies, managers need to take the benefits and drawbacks of globalization into account. A global strategy must be in the context of events around the globe, as well as those at home. International strategy is the continuous and comprehensive management technique designed to help companies operate and compete effectively across national boundaries.… Read the rest

Transnational Strategy in International Business

Over the years, several companies have decided to carry out their business activities in overseas markets and hence, have expanded as international or global businesses in efforts to be known as multinational enterprises (MNEs) and enjoy the perks of being a global business. In order to come up with strategies for entering and sustaining in international markets, companies invest a lot of time, effort, and money, and yet many do not succeed in their international business planning and/or execution. We can come across several big names that have been unable to prove themselves successful in the international market such as Walmart, Starbuck’s initial launch in Australia, and Amazon in China.… Read the rest

Case Study: Why Did Euro Disney Fail?

Until 1992, the Walt Disney Company had experienced nothing but success in the theme park business. Its first park, Disneyland, opened in Anaheim, California, in 1955. Its theme song, “It’s a Small World After All,” promoted an idealized vision of America spiced with reassuring glimpses of exotic cultures all calculated to promote heartwarming feelings about living together as one happy family. There were dark tunnels and bumpy rides to scare the children a little but none of the terrors of the real world.

The Disney characters that everyone knew from the cartoons and comic books were on hand to shepherd the guests and to direct them to the Mickey Mouse watches and Little Mermaid records.… Read the rest

Case Study: The Strategic Alliance Between Renault and Nissan

Renault and Nissan are two major automobile brands working independently as well as are in a 19-year old alliance where Renault holds 43.4 percent stake in Nissan and Nissan owns 15 per cent in Renault.   The Renault-Nissan Alliance  is the first of its kind involving Japanese and a French company. Renault was identified for modern design and Nissan for the excellence of its engineering. The two companies had just decided to a most important strategic alliance in which Renault would take for granted $5.4 billion of Nissan’s Debt in return for a 36.6% equity share in the Japanese company. Before the alliance it was concluded that the combined company would be the world’s largest car-maker.… Read the rest