Tire Industry Capstone Project Marketing Essay

Tire Industry Capstone Project Marketing Essay The report examines the global Tire industry. the industry is dominated by 10 firms controlling 95 of the global market. First, the report analyses the fundamentals of the industry followed by an analysis of each of the companys performance. The report later analyses the key success factors and indicators for the industry and makes recommendations as to the way forward. Introduction The tire industry is a large-scale market that produces high quality original and replacement tires with the use of natural and synthetic rubber. These tires produced from natural materials and synthetic rubber is greatly utilized by motorcycles, trucks, cars, earthmoving equipment, aircrafts, bicycles, and scooters. The tire industry is divided into different sections that include America, the Asia-Pacific, and Europe. This constitutes about 95% of the worlds market. Our list of ten selected public companies has their headquarters represented among these markets, and thus the percentage of their sales per market varies. Despite a global recession, a number of these tire firms has demonstrated a strong performance, and the recovery has especially been pronounced in the Europe and markets of Canada, United States and Mexico. The contents will reveal in what areas these ten public firms are particularly delivered, and some ways in which they are still struggling, or have room for some improvement. While the growth has traditionally been viewed in the West, the emerging markets in Asia such as China prove to be a battleground for revenue and sales growth of the future. The relative leaders in this industry are Michelin and Goodyear, with the lowest performing firms as Kumho and Yokohama. Some of the firms decisions have placed them in a favorable position to dominate opportunities around the globe, while others have an overwhelming amount of disadvantage in meeting such goals. Performance requirements such as high-speed test, endurance test, low pressure test, road hazard impact test, bead unseating test, and accelerated aging test. The endurance test show that the test results increase linearly in stringency based on the number of tire failure. However, the top performing firm is the Michelin meeting the performance criteria with over 90% in all the criteria. Michelin is technologically a better tire company compared to the rest, while Kumho is the least performing tire company. List of the Ten Public Firm in the Tire Industry The top ten tire firms include: 1. Bridgestone Corporation 2. Compagnie Gà ©nà ©rale des Établissements Michelin 3. Good year Tire and Rubber Company 4. Continental AG 5. Pirelli C. S.p.A. 6. Sumitomo Rubber Industries Ltd. 7. Yokohama Rubber Company, Limited 8. Hankook Tire 9. Cooper Tire Rubber Company 10. Kumho Tire Co. Ltd Key Success Factors and Key Success Indicators For the purposes of this research paper, we will analyze three key success factors namely the financial factors, human resource and customer satisfaction. For each of the KSF identified for analysis, there are at least three key success indicators as listed below; Customer Satisfaction Customer average rating as given through company annual surveys Awards for crucial success Position among top 20 in the country Human resource Employee count growth Proportion of workers who have higher education Revenue per worker Key Financial factors Return on equity Return on asset Leverage ratio Gross margin ratio Annual sales growth The ability to adapt to new technology Investment in IT In-house staff training BPR change initiatives Customer satisfaction Average score Awards received Position in top 20 Sustainability indices as reported in the respective companies sustainability report for the last year. Percentage of material reused Percentage of material recycled Reduction in material use In their similar research work, Ghosh, et al. (2001) came up with a distinctive formula for awarding the weights to individual critical success indicators. For the purpose of this paper, Ghosh, et als weightings on the respective KSI are adopted. The scores of these tree factors are given equal weight at 33.3% due to their perceived equal importance in the industry. However, the key success indicators in each of the three categories are given different weights as per their perceived importance in the realization of the respective KSF. All the KSF along with their associated KSI are scored in the excel sheet and weighted totals calculated. Some of the key KSFs that we have identified include sustainable practices, public perceptions, consumer responsibility, the economy, in addition to environmental stances and practices. The KSIs include the market share that each firm possesses, the number of countries in which they operate, the percentage of business devoted to tires, as well as the number of employees per dollar of revenue and diversification of the board in terms of country of origin. These KSF and KSI were selected to effectively evaluate the relationship that between other external factors that will make tire production in the industries thrive. A key success factor could also include dealer or brand loyalty, and how well companys can retain their customer basis. It is believed that sustainable practices of how the wages and benefits exist will greatly promote the success of tire production, in addition to how the merchant network or tire distribution is handled; considering the fact that production is directly controlled or is dispensed out on a franchise basis. When it comes to public perception, this deals with whether the brands from a specific region are favored, due to their ascribed value. In addition, the devotion to advertising in terms of dollars on a by-region basis would be an interesting KSI under the KSF of public perception. Consumer responsibility is how they respond to incentive programs offered by merchants, or where they turn to purchase whether they go in store or defer to online shopping. One other interesting KSF that we are concerned with is the environment. What this means in terms of a KSI is the method and rate of scrap tire disposal. In addition, interest is the consumption levels of electricity, water, fuels or others necessary for disposal and manufacturing. However, it is anticipated that this KSF will majorly determine the long term success of tire firms. When it comes to the KSF of the economy, differentiating it from the internal finance of companies is not certain, using the KSI and KSF to assess and analyze performance in the tire industry is justified. Factors Driving Profitability The players in the tire manufacturing industry are operated out of a number of major centers, and in order for them to earn and maintain a profit, they must ultimately transact with corporate or smaller-consumers. Analyzing the growth rate and operating margins of the firms reveals that just as they are dispersed in where their boardrooms, headquarters, plants, and branches are located they likewise differ on where such revenue and sales are captured. To further complicate factors, some of the weaknesses confronting these firms are regionally based, while others have a global reach and threaten the whole of their operations. Thus, the mixture of strengths and weaknesses facing the firms is ripe of both extreme differences in addition to some unavoidable similarities. Undoubtedly, one of the major factors that seem to affect all the participants is the increase of prices of raw materials. In this context are crude oil, rubber, and other inputs to the manufacturing process. While it is deserving of a separate discussion altogether, the price of one barrel of crude oil has been on the rise amidst global conflict, uncertainty, and other issues. This is a necessary input in the manufacturing of tires and it is not easily replaceable. A direct result of this factor that drives (or threatens) profitability is that the price of products tends to increase as the surge in cost of raw materials is passed on the consumers. Another factor driving profitability then is the type of market segments on which the tire manufacturer focuses on. For example, some of the firms such as Kumho and Yokohama have placed much dedication towards niche markets such as construction, or others, that may be willing to fork over more money for a higher quality product. Due to the diverse approach of these tire manufacturers; we placed much emphasis on the financials aspect. More than the fact that these figures were, on the whole, easy to locate, they are closely connected with a phenomenon that will soon confront the industry. This issue in the horizon is that of so-called unfunded pension and retirement benefits. As a result of this impending crisis, we determined that the financial conditions of firms would be closely related to how they may overcome such. One other reason we determined that this was a crucial factor of performance was that the baby boomer generation concept would imply that a large group of full-time workers would, at the same time, attempt to cash out on such benefits. It means that firms with a high debt-to-equity ratio have less leverage to move around funds to overcome a shortfall when it comes to paying out employees on a mass-scale. Likewise, those with relatively lower revenues would have a particularly challenging time to maintain their operations and to fund such retirees. Some other key performance indicators we determined had significance was the relative market share of each firm, in addition to the number of countries where operations existed. We figured these were important given that some of the more successful firms such as Bridgestone are more diversified geographically. The reason this is important can also be understood in the context of global economics. If one is operating a firm such as Kumho or Yokohama and the Korean or Japanese region respectively endures some domestic market turmoil, it is unlikely that the average trend of sales from international markets will be able to keep them from reporting negative financials, or even facing insolvency. A damaging annual period will not only weaken a firms reputation or brand image, but will also cause the company to struggle to keep the support of investors potentially coming with major consequences. On the other hand, as Bridgestones record demonstrates, having equal or at least some level of balanced representation across the globe means that the only way they will significantly suffer is if there is a financial crisis or some type of market volatility on a global scale. Even so, it is unlikely that such a disaster would have equal effects in each continent or country, or that it would occur simultaneously. It means that in the wake of disaster, a firm that is well-spread across the globe would be able to earn a profit in some areas, while losing in others, and be able to maintain its existence. A further key performance indicator of interest is the customer segments facing the tire manufacturing industry. For example, there has been the trend for companies teaming up and pooling their productive resources in order to transact with high-ticket market segments such as the airline industry. We determined that this key performance indicator is derived out of the Porter force of bargaining power of buyers. It is also directly connected and can help firms individually, and overall, to overcome the struggles that come from increasing raw material and commodity prices, globally. If carefully constructed, such agreements between rivals can assist in overcoming their mutual threats, and allow them to devote more resources and attention to important fields such as research and development, or creativity. Subsequently, more useful technologies and more desirable products will be churned out, in a mutually (or internationally) beneficial manner that will allow each industry player to ma ximize their own chosen attribute of differentiation. For example, some firms may devote much energy towards passenger cars, while another focuses on non-highway equipment, or high performance tires. If working together can help to alleviate the hurdle of increasing input prices in the manufacturing process, there will be a net benefit on the industry in the quality and the number of products disseminated to the market segments. Bibliography Datamonitor: Compagnie Generale des Etablissements Michelin. Company Profile. Publication Date: 5 Aug 2011. Datamonitor: The Yokohoma Rubber Co., Ltd. Company Profile. Publication Date: 24 Feb 2012. Datamonitor: Bridgestone Corporation. Company Profile. Publication Date: 29 Jul 2011. Ghosh, B. Liang, T., Meng, T., Chan, B. (2001). The key success factors, distinctive capabilities, and strategic thrusts of top SMEs in Singapore. Journal of Business Research. Vol. 51(3): 209 Marketline: Kumho Tire Co. Inc. Company Profile. Publication Date: 31 May 2012. Porter, M. E. The Five Competitive Forces That Shape Strategy. Harvard Business Review, January 2008. Appendix and exhibits Tire Industry: NAICS Code: 326211 Top Ten Companies: 1. Bridgestone Corporation 2. Compagnie Gà ©nà ©rale des Établissements Michelin 3. Goodyear Tire and Rubber Company 4. Continental AG 5. Pirelli C. S.p.A. 6. Sumitomo Rubber Industries Ltd. 7. Yokohama Rubber Company, Limited 8. Hankook Tire 9. Cooper Tire Rubber Company 10. Kumho Tire Co. Ltd

Calaveras Vineyards Essay

The purpose of this analysis is to determine if Goldengate Capital should participate in a $4.5 million management acquisition of Calaveras Vineyards. Located in Alameda Valley, California, Calaveras Vineyards sits on 220 acres, consisting of 175 acres of vineyards, and 45 acres of equipment sheds, a winery building, and a small farmhouse with guestrooms, offices, and sales room. Strategic Analysis SWOT Analysis Financial Analysis Current management of Calaveras, Stout PLC, prepared pro forma financial statements for fiscal years ending 1990, 1991, 1992, and 1993. This information is being used to examine historical data and look for relevant patterns in order to further valuate Calaveras Vineyards. Sales increased from $2.4 million in 1990 to $2.8 million in 1991. In 1992 Calaveras started to produce premium wines with increasing average industry prices. Although sales decreased from 1992 to 1993, cash flow improved immensely. Increasing the average price, and introducing premium wines, allowed Calaveras to gain a higher profit margin. Based on the pro forma historical financial statements, a comparative analysis has been completed to identify Calaveras’ position among other manufacturers of wine and brandy. Calaveras, when compared to other manufacturers industry-wide, may have not have the capability to pay its obligations. The current ratio of 0.4 is less than 1.0, indicating that Calaveras does not have enough current assets to cover their liabilities, to include equity. Although the current ratio is low, this does not mean there is a critical problem. Management should be aware and address quickly to determine what action to take. The assets to sales ratio indicates that Calaveras somewhat efficient in managing its assets in the relation the revenue generated. The higher the number the less investment is needed in order to generate revenue. Calaveras falls somewhere in between the upper and median quartile. They  will need to invest in order to generate more revenue. Calaveras’ is producing a 10% return on sales, above the upper quartile of industry norms. This means the vineyard is growing more efficient and providing growing profits. The return on assets ratio falls between the upper quartile and median quartile of the industry norm, and illustrates how well management is employing the company’s assets. With rate of 4.2% Calaveras is doing better than some of their competitors utilizing assets, but may need to invest to yield a higher rate, which will attract potential partners and lenders. Projections Forecast assumptions were used to project cash flow in the next 5 years. All assumptions are have been analyzed for reasonableness and work to generate a forecasted Income statement and balance sheet. A growth rate of 2% may not be sustainable, but it is conservative and will be used in discounting cash flows. Depending on how Calaveras will utilize free cash flows, capital expenditures may increase, resulting in a decrease in cash flows. However, these expenditures should yield a higher return on sales, and increase cash flows. Valuation Based on the forecasted income statement and balance sheet a discounted cash flow is calculated, using the weighted average cost of capital to discount cash flows.

The Secret of Finding Meaning in Life

The Secret of Finding Meaning in Life Life is truly too short, this phrase really bothered me because it made me think of how I could make my life meaningful and with sense; something that is living life to the fullest and touching the life of others by serving them because in serving you will know what really life is Just like Jesus who came to earth not to be serve but to serve. But how we could make our life living with significance and meaning?This question is so stunning especially when we realized that we are at the wrong path since we are living here on earth. Is there such thing as secret of finding meaning in life? That might some what answers me base on certain articles that I Just read and as well as the video that amazed me while viewing. This first article defines life and it's meaning which is â€Å"Meaning in Life [live the life that you want]† by Albert S. Wang, written on November 19, 1997.This article, questions you if you are really contented and happy of wh at you have and if this is really the life that you wanted. It is said in here that to be able to live a life that you want and to put a meaning on it; you must first know yourself from within because this makes you know of who you are, second is know where you want o go for it gives you direction in finding your happiness. These things are beginning of having a meaningful life.To find the meaning of your life, you must find it with action not Just by waiting for it to come and you can also find this meaning in life not just in distant place but mostly it is found near you. Putting a meaning in your life is all about the choices and decisions that you made on where you want to go. Just live your will and you'll see that each day you will grow in having a meaningful life. The second article that touches me is entitled â€Å"So What Will Matter? † sent by Leandro G. Cruz and shared by Joe Gatuslao of Bacolod City, Philippines. Its original title is A Life That Matters.This arti cle is so inspiring because it stresses that all that you have got starting from yourself Just like beauty, fame, wealth and all other things that you have are Just in vain because these things are not forever yours, these are just passing things and you cannot bring these things when you leave earth but what really matters are the thing that you made that others will remember you of your goodness, the things that you gave not Just in material aspects but in all, living your ife with significance, teaching others and set yourself as an example to them.All of these things are living a life that matters. This third article has an unknown author which entitles â€Å"A Purpose†. The article speaks that all of us who are created by God has a unique and significant purpose. Each of us is given a chance to find our designated purposes but you must wait when the right time comes because nas set it tor you at a time when you are equipped and ready. Most of the time you'll experience t he roughness of life but don't be dismayed because there is always a helping hand that will take care of you, which isGod who never leaves you. Just stay at the right path and do good deeds for in the end you will find your own way to the pearly white gate. The next article is the one that I liked most which is â€Å"The Journey of Our Life† shared again by Joe Gatuslao from Bacolod City, Philippines. This article actually tells a story about the Emperor who owned a huge land and he told his horseman that if he could ride on his horse and cover as much land area as he likes, then the Emperor would give him the area of land he has covered.The horseman did not stop riding and whipping the horse because he wanted to cover as much area as possible. Came to a point when he had covered a substantial area and he was exhausted and was dying. Then he asked himself, â€Å"Why did I push myself so hard to cover so much land area? Now I am dying and I only need a very small area to bury myself. † This story is really similar with the Journey of our life because most of us are always striving for richness, properties, possessions, power etc.So we work harder and harder until we come to realized that all of these things are not necessary for living a happy and meaningful life; we must balance our way of living so that we could not missed omething in life that might happen once. The next thing that I am going to share is all about the video clip that I watched; it's about an old woman at the age of 47 and her name is Susan Boyle who joined in a certain show that searches for extraordinary talents namely Britain's Got Talent.During her performance, a big shock was made by Susan because at the beginning when she first introduced herself, everybody was against her like they are judging Susan of Joining the show where she looks like so ordinary and nothing to show up but when she start on singing all where stunned by her angelic voice and hey gave her a standing ov ation but most importantly the three big yes from the strict Juries. This gives us an insight that we must not Judge the person's appearance because you'll never know what's the biggest surprise that comes from within.God created us with equal gifts and we must use this as an inspiration to others. This last article is a prayer entitled as â€Å"Mere Possessions†. It's all about the prayer of a woman who asked a help from the Lord, asking that she might not put much stock in possessions because things don't last and you cannot bring all of these things when you leave earth. That we come into the world with nothing, we leave with nothing.Having a meaningful life is about your choices and decisions that were made; Just make sure you have chosen the right path because if you do then you'll end walking along the pearly white gate and that is the fulfillment of having a meaningful life. There is really no such thing as a secret of finding a meaning in life; it's Just you who will make it meaningful by doing what is right and Just; live happy and be happy all the time because life is Just too short, you might missed something so let's make the most of it.

Why Is Child Obesity an Important Health Problem in America

Why Is Child Obesity an Important Health Problem in America? Webster University Unknown Student Techniques of substance Abuse Counseling Dr. Barbara Omer July 28, 2002 Abstract Obesity is a chronic state of being overweight. It s a life threatening condition and current research has shown that obesity is the leading cause for the increased health threats that persons of the developed world face. Obesity increases a person s threat for contracting diabetes, strokes, heart problems, certain kinds of cancer etc. What s worse is the over two thirds of the industrialized world s population is suffering from obesity and that s putting them in greater health dangers. In recent years, policymakers and medical experts have expressed†¦show more content†¦Each included about 40,000 adults; one survey was carried out in 1991 and 1992; the other was done a decade later, in 2001 and 2002. According to researchers, Flegal,Carroll, Odgen,amp; Johnson (2002), the people surveyed were asked whether a relative had â€Å"been an alcoholic or problem drinker at any time in his/her life,† a question repeated for several types of relative — mother, father, brother, sister, half-sibling and children. Participants also reported their own weight and height, so body mass index could be calculated (B.M.I. is a calculation of weight in kilograms divided by height in meters squared, and a result of 30 or more is considered obese).The first survey, from the early 1990s, found no link between a family history of alcoholism and obesity. â€Å"There was an almost perfect overlap between the B.M.I. distribution of people without a family history of alcoholism and people with a family history of alcoholism. In 2001 and 2002, adults with a family history of alcoholism were 30 to 40 percent more likely to be obese than those with no alcoholism in the family. 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