Case no.10 about rosetta stone page no.542to 561 solve it depend on ch12

Rosetta Stone Case Study Analysis

Rosetta Stone Case Study Analysis
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Rosetta Stone Case Study Analysis


I. Current Situation
A. Current Performance
The company wants to gain more profit in coming years. While analyzing the current
performance of the company we can understand that in the year of 2009 the sales of the company
were $252.3 million. Compared to the last year we can understand that there is a increase of
more than 20.4%. The company also attaining the profit of $ 13.36 million in the current year,
from the financial data we can understand that there is decline in profit percentage (3.8%) of the
company. While analyzing the return on investment of the company that is 16.73% in 2009 gives
an positive trend and helps for improving the operations of the company.
B. Strategic Posture
We know the fact that there are different companies providing language learning training and
courses to the people. While analyzing the case of Rosetta Stone we can understand that mission
of the company is to make changes to the way that used by the people to learn different
languages. The main objective of the company is to become market leader in providing language
learning solutions to all the people. In order for attaining this objective the company are also
formulated different strategies such as;
 Gaining product and technological leadership and excellence
 Improving and expanding the product port folio
 Increase the market share in US
 Diversify the business in to untapped US market places,

Rosetta Stone Case Study Analysis


While analyzing the mission and objectives of the company we can understand that it is mainly
focused for global operations.
II. Corporate Governance
A. Board of Directors
Name Designation Internal or External
Tom Adams CEO Internal
Phil Clough Managing General Partner –
ABS capital
External
John Coleman COO and President of BOSE
Corp
External
Patrick Gross Chairman – Lovell group External
John Lindahl Managing General Partner –
Norway Equity Partners
External
Ted Leonsis Employee of AOL External
Laura Witt General Partner – ABS capital External
Laurence Franklin CEO of Tumi External
The tenure of the eight board of directors is about four years and they have to use their skills and
abilities for managing the issues faced by the company. The shares of the company is listed in
New York Stock Exchange under the ticker RST that is Rosetta Stone Inc.
B. Top Management

Rosetta Stone Case Study Analysis


Name Designation
Tom Adams CEO
Greg Keim CTO
Gregory Long Chief Product Officer
Michael Wu General Counsel and secretary
Mike Fulkerson Vice President Technology and Labs
Pamela Mulder Senior Vice president, International
Development
Jay Topper Senior Vice president, Customer Success
Pete Rumpel Vice president, Institutional Sales and
marketing
Eric Duehring Senior Vice president, Global Brand Marketing
Michela Oliver Senior Vice president HR
Pete Young CIO
International leadership
Tak Shiohama President, Rosetta Stone Japan
Steven Cho MD,Korea
Stlke Riester MD, Europe
Oskar Handrick Country Manager, Germany.

Rosetta Stone Case Study Analysis


While analyzing the international leaders and top management officials we can understand that
they are technically qualified and capable of managing the different languages and issues.
Strategci Decisions taken by the leaders are helps the organization for attaining the objective of
sustainability and it also helps for managing the future challenges.
III. External Environment: Opportunities and Threats (SWOT Analysis)
A. Natural Physical Environment: Sustainability Issues.
While analyzing the natural physical environment we can understand that company does not find
any option or opportunity to manage the issues. The actions of the company influenced by the
climatic factors and it directly affect the aspects such as;
The company stored the inventory in single facility, which means any climatic problem will
create huge loss for the company. We know the fact that customer services are important for
every company, interruptions of operations at call centre will also affects the performance.
Sometimes climatic changes or forces affect the systems, network and database stored by the
company.
B. Societal Environment
Economic:
Opportunity Threat
Increase in the no. of domestic consumer European Union Issues
Demand increased in developed countries Depression
Increase in commercial spending of technology Lack of knowledge in technology

Rosetta Stone Case Study Analysis


Technological:
Opportunity Threat
Global Expansion Competition
Proliferation of online social media Lack of knowledge in technology
Emergence of internet enabled mobile phones Patency issues
Political – Legal:
Opportunity Threat
Bush tax cuts Reduction of disposable income
Government Support Competition
Socio-cultural
Opportunity Threat
Globalization Privacy issues
Job requirement Software problems
C. Task Environment
Threat of new entrants: Medium
The company has protected their software by using copy rights and trademarks. Some companies
entered in to the market, but still they can became the market leader with their unique services

Rosetta Stone Case Study Analysis


Bargaining power of buyers: Low
The company is offering different products and services to the customers and they are also
providing customization services to the customers.
Threat of Substitute products or services: High
They are different products are available in the market; competitors are providing the products at
less price.
Bargaining power of suppliers: Low
The company is not directly related with the manufactures and they are using third party contract
manufactures for managing the operations
Rivalry among firms: Medium
The competition is not affecting the operations of the company, but they have to introduce
innovative services for retain the customers.
Relative power of unions, government, and special interest groups etc.: Medium
Union does not have the bargaining power and the government has significant influence in the
operations of the company. The company entered in to a contract with the US government for
supply the products and services
D. Summary of External Fctors
EFAS Table

Rosetta Stone Case Study Analysis


External Factors Weight Rating WS ( Weighted
Score)
Remarks
Opportunities
Demand for...