best essay ever
Problem definition
INEXPERIENCED EUROPEAN MANAGER
- Mr. Masson had no experience with Kenics when he was hired.
- Masson had a 3-day visit in which he was exposed to the Static Mixer and was told to set up a European operation as he saw fit.
UNPREPARED FOR EUROPE
- No research was done.
- No guidelines were given to Mr. Masson.
LITTLE UNDERSTANDING OF CULTURAL DIFFERENCES THROUGHOUT EUROPE
- Customers spoke in 7 different languages
- Each country had different approaches to purchasing decisions (later Masson defined differences in cultures)
PRICING IN EUROPE
- The factory price could be raised by as much as 45% through various fees (such as airfreight to Europe, import duty, and customs handling fee)
POOR ORGANIZATION IN EUROPE
- The media was fragmented in Europe so direct mail was used more than media advertising
- Kenics Europe agents had to invest their own time and money to learn about the technology
- They also had to pay for and arrange any publicity and trade show
SUPER NOZZLE ISSUES IN EUROPE
- Europe had a much wider variety of nozzle sizes
- The six U.S. sizes only fit 5% of European machines
- The existing agents had made investments that should soon pay off and Masson did not want to disrupt their efforts. “I’m afraid they would react violently to the establishment of direct salespeople and total and sudden emphasis on product selling” – Masson
SWOT
STRENGTHS
S1 Patented technology
S2 Branded subassemblies
S3 Rifle approach in Japan
S4 Joint Venture in Canada
S5 Defined broad market segments
S6 Custom Products
S7 Super Nozzles in U.S.
S8 No competitors
S9 Sales in U.S.
S10 Strong Engineering
WEAKNESSNES
W1 Management
W2 Organization in Europe
W3 Understanding of European markets
W4 Poor training of agents
W5 Shotgun approach in Europe
W6 Market Segments are too broad
W7 Inexperienced European manager
W8 Grouping Europe into 3 segments
W9 Super Nozzles in
INEXPERIENCED EUROPEAN MANAGER
- Mr. Masson had no experience with Kenics when he was hired.
- Masson had a 3-day visit in which he was exposed to the Static Mixer and was told to set up a European operation as he saw fit.
UNPREPARED FOR EUROPE
- No research was done.
- No guidelines were given to Mr. Masson.
LITTLE UNDERSTANDING OF CULTURAL DIFFERENCES THROUGHOUT EUROPE
- Customers spoke in 7 different languages
- Each country had different approaches to purchasing decisions (later Masson defined differences in cultures)
PRICING IN EUROPE
- The factory price could be raised by as much as 45% through various fees (such as airfreight to Europe, import duty, and customs handling fee)
POOR ORGANIZATION IN EUROPE
- The media was fragmented in Europe so direct mail was used more than media advertising
- Kenics Europe agents had to invest their own time and money to learn about the technology
- They also had to pay for and arrange any publicity and trade show
SUPER NOZZLE ISSUES IN EUROPE
- Europe had a much wider variety of nozzle sizes
- The six U.S. sizes only fit 5% of European machines
- The existing agents had made investments that should soon pay off and Masson did not want to disrupt their efforts. “I’m afraid they would react violently to the establishment of direct salespeople and total and sudden emphasis on product selling” – Masson
SWOT
STRENGTHS
S1 Patented technology
S2 Branded subassemblies
S3 Rifle approach in Japan
S4 Joint Venture in Canada
S5 Defined broad market segments
S6 Custom Products
S7 Super Nozzles in U.S.
S8 No competitors
S9 Sales in U.S.
S10 Strong Engineering
WEAKNESSNES
W1 Management
W2 Organization in Europe
W3 Understanding of European markets
W4 Poor training of agents
W5 Shotgun approach in Europe
W6 Market Segments are too broad
W7 Inexperienced European manager
W8 Grouping Europe into 3 segments
W9 Super Nozzles in