pas:lenddoonth:iarrmnaacnouc 1-34 Strategy; Calvin Klein For many, the name Calvin Klein (CK) is synonymous with high-fashion clothing and accessories, super models, and fashion shows. It has an image of quaiity and style. in r; ality, a significant amount of CK products are sold by discount retailers such as (Thsice. How Can this be? The answer is that 69-year-old designer Calvin Klein licensed Warnaco Grotbl facturers to produce his products. Under this arrangement, CK receives a royalty sales. As it turns out. Warnaco found that it could be more successful with the brand through abroad strategy involving a number of retailers, including discounters. Required What type of strategy (cost leadership or differentiation) is Calvin Klein following at this time? Comment on how effective you think the relationshingidiatiMi n i,%to.be. mcennnar
1 -40 Strategy; Auto Tire Manufacturing Michelin. the 1 1S-vear-o1d illalitifactilrer tireS. I• a worldwide leader in tire sales. But there are plenty of challenoes. ()tic is the Vrowlh ()I 1ow-c()%1 tire producers in Southeast Asia and elso‘ here. Michelin know that most tire buyer, arc sh(TpIng pri-marily for price, viewing tires primarily as a commoditv •Fhis is true even tilt mph the probkrliS with Firestone and other tire makers in recent years have brouuht consumer :mention to tire sarety.lu help differentiate his firm's product, Edouard Michelin (Michelin's lormer (.1•.0) pushed 4.1evelopment technologically advanced tires that, for example, provide blowout protect 1( )t) and ;it c more suited for high-performance use. Required Is the auto tire a commodity? Would you consider Michelin to be a cost leader or a differentia-tor, and why?
rategic Positioning Fowler's Farm is a 1.000•acre t airy an to acco Jack FoN% ler, the owner, has been fanning since 1982. Ile initially purchased 235' acres and has made the folio% ing purchases since then: 300 acres in 19$5. 150 acres in 1988: dairy- equipment and buildings worth S 50.000 in 1088. and acres in 1998. The cost of farmland ha: inflated over the sears so that. although Jack has a total iny cstment of S1.850.000. the land's current market value is 2.o50.000. the current net book value of his buildiiTs and equipment is S300.000. with an estimated repiaceinnt cost of 51.'50.000. Current price pressures on farm commodities have affected Fowler Farm as well as others across the counts. Jack has watched as many of his neighbors either have quit tanning or have been consolidated into larger- more profitable farms. Fo% ler's Farm consists of three different operating segments: dairy farming. tobacco. and corn and other crops intended for livestock feed. The dairy farm consists of 198 milk-producing cows that are grazed on 250 acres of farmland. The crop farm consists of the remaining acreage that covers several types of terrain and has several types of soil. Some of the land is high and hilly, some of it is low and clay like. and the rest is humus-rich soil. Jack determines the fertilizer mix for the type of soil and type of crop to he planted by rules of thumb based on his experience. The farm equipment used consists of automated milking equipment. six tractors. two tandem-axle grain bed trucks, and numerous discs, plows, wagons. and assorted tractor and hand tools. The farm has three equipment storage barns. an equipment maintenance shed. and a 90.000-bushel grain eleva-tor drier. The equipment and buildings have an estimated market value of 51.500.000. Jack employs five full-time farmhands. a mechanic, and a bookkeeper and has contracted part-time accounting tax assistance with a local CPA firm in Pittsboro. All employees are salaried: the tarmhands and the bookkeeper make S25.000 a year. and the mechanic makes S32.000 annually. The CPA contract costs S15.000 a year. In 2010. the farm produced 256000 gallons of raw milk. 23.000 bushels of tobacco. and 75.300 bushels of corn. Jack sells the tobacco by contract and auction at the end of the harvest. The revenue in 2010 was S1.3-I5.000. providing Jack a net income after taxes 4S:33.511ff Jack's daughter Kelly has just returned from college. She knows that the farm is a good busi-ness but believes that the use of proper operating procedures and cost management ..stems could increase profitability and improve efficiency. allowing her father to have more leisure time. She also knows that her father has always run the farm from his experience and rules of thumb and 1. wary of scientific concepts and management principles. For example. he has little understanding of the accounting procedures of the farm, has not participated in the process, and has adopted fot. it any• - . methods to maintain control over inventories and equipment. He has trusted his employees to main-tain the farm appropriately without using any accounting or operating procedures over inventories • • equipment, preventive maintenance schedules, or scientific application of crop rotation or livecti management. Generated by CamScanner
SWOT Analysis
Required Dc\ clop a SWOT anal\ sis for Fowler's Farm based on Problem 2-32. The analysis should in-
elude two to three items in eadt categor\ : strengths,
Required Develop a balanced scorecard with three or more groups of CSFs for Fowler's Farr- ' 1 Problem 2-32. Explain your choice of groups and identifs'..;Y enerafed by CamScanner your CSFs are quantitative and can be measured. Generated