Preview

Callaway golf company

Satisfactory Essays
Open Document
Open Document
1530 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Callaway golf company
Varun N Visawadia

Callaway&Golf&Company&!
Objec2ve:!

Callaway!Golf!Company!(CGC)!faced!a!loses!of!17%!a6er!enjoying!50%!margin!for!10!years.!The! objecAve!here!is!to!analyze!reasons!for!losses!and!recommend!ways!and!means!to!overcome!it. Value&Proposi2on&of&CGC:

High!Performance!products,!High!Quality,!Excellent!Customer!Service,!Brand!Equity,!Proven!
technologically!advanced!working!equipment,!One!Ame!investment!for!Average!golfers,!
PresAgious!for!Skilled!Professionals.
Company

Customer

Collabatotars

Competition

Context

Golf equipment manufacturer Average golfers

Retailers at wide locations Taylor Made

Emergence of new manufacturers

Known for high quality products

Loyal customers

Provide facilities for trial

Small companies with cheap products More business in off-course retail shops Strong R&D

Skilled golfers that rely on brand equipment Extremely competitive market

Product innovation was now becoming difficult Subsidiary - CGC
Sales Company

Product

Price

Promotion

Place

High in performance

Premium price

Sales people both inside and outside

63% sale in US market S2H2

One price policy

Word of mouth

Weight balancing technique for clubs

Expensive($1000/kit)

Less media coverage
No discount on bulk

Varun N Visawadia

Sales&predic2on&for&next&two&years:&

In!2!years,!we!can!esAmate!increase!in!sales!due!to!rigorous!adverAsing!and!reTorganized!sales! force!and!other!expenses.!(Refer!addendum!for!calculaAons) Assump2ons!:

R&D!costs!to!be!same

Net!sales!to!be!increased!around!15%!for!next!2!years!as!number!of!golfers!is!increasing!300!to!
400!every!year

Cost!of!Goods!sold!also!increases!by!15%

Selling!expenses!increase!by!20%!(comparing!with!previous!years)

General!&!administraAve!expenses!increase!by!2%

R&D!cost!increase!by!2%!

Restructuring!cost!keeping!$60,000!constant!for!next!2!years

Income!Tax!=!!20%!

Callaway's&strategy&from&1988E1997&:&
Research&and&Development&&
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Informative Essay On Rock Bottom Golf
    • 660 Words
    • 3 Pages

    Informative Essay On Rock Bottom Golf

    Rock Bottom Golf is one of the leading discount golf retailers in the globe. Their main aim is to offer golfers with unbelievable deals on best quality golf equipment. For this first they purchase large numbers of closeout merchandise, keep their overhead as low as they can, leverage technology and then transfer the savings to the consumer. They may not have the whole lot that you are seeking for, but the prices on the products that it has are the cheapest one you can get and that is guaranteed. You can also get free same day shipping every day to the continental US.…

    • 660 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Lee Corporation
    • 251 Words
    • 2 Pages

    Lee Corporation

    Exchange Rates Schedule of Adjusted Amounts Based on CAD $100,000 Date Exchange Rate Foreign Currency 12/31/2004 0.830979 12/31/2005 0.857927 2,694.80 12/31/2006 0.858222 29.50 12/31/2007 1.01204 15,381.80 Necessary Journal Entries to calculate other comprehensive income. Retained Earnings 15,000.00 Deferred Tax 10,000.00 Accumulated Depreciation 25,000.00 Retaind Earnings 21,000.00 Deferred Taxes 14,000.00 Inventory 35,000.00 Investment in Subsidiary 2,694.80 Cumulative Translation Adjustment 2,694.80 Investment in Subsidiary 29.50 Cumulative Translation Adjustment 29.50 Investment in Subsidiary 15,381.80 Cumulative Translation Adjustment 15,381.80 Lee Corporation Statement of Changes in Stockholder's Equity For the year ended on December 31, 2007 Common Stock Additional Paid-in Capital Treasury Stock Retained Earnings Accumulated Other Comprehensive Income Total Stockholder's Equity Balance as of January 1, 2007 $500,000.00 $1,000,000.00 $(200,000.00) $225,000.00 $1,525,000.00 Prior Period Adjustments: Depreciation Error (Net) $(15,000.00) $(15,000.00) Inventory Methods Change (Net) $(21,000.00) $(21,000.00)…

    • 251 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Callaway golf
    • 434 Words
    • 2 Pages

    Callaway golf

    Brand, their overall excellence as a club professional, for having high level of proficiency at playing the game,…

    • 434 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Brewster Seaview Landscaping Company
    • 3579 Words
    • 15 Pages

    Brewster Seaview Landscaping Company

    References: Barling, E., Kelloway, K., Frone, M.R. (2005). Handbook of Work Stress. New York: Sage Publications.…

    • 3579 Words
    • 15 Pages
    Better Essays
    Read More
  • Good Essays

    Scotty Cameron
    • 1104 Words
    • 5 Pages

    Scotty Cameron

    "I'll create the putter, you create the stroke, together we'll make magic," a quote Scotty Cameron proclaims, once unattainable to golfers alike regarding putters (2012 Design & Concept of Go - Lo - M3). Nevertheless, the rise of the Golfing world's Van Gogh aroused the golf community. Specifically, Scotty Cameron never invented the putter, oh no, he constructed better putters, changing the quality of putters, and all golf clubs for eternity. Through adopting the finest materials money had to buy, hand milling, bending, welding, and customization of every detail including the paint, his creations spiraled. In addition, his success showed no stopping signs, rolling into a legacy of its own. When a Scotty Cameron putter awakens, every one is…

    • 1104 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    Ganong Bros Ltd.
    • 1947 Words
    • 8 Pages

    Ganong Bros Ltd.

    Social: In the Canadian industry it has been effected by two social reasons. Those reasons are; a lower proportion of children in Canada, and that there is also a growing number of health conscious Canadians.…

    • 1947 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Good Essays

    Jack Greenberg, Inc.
    • 919 Words
    • 4 Pages

    Jack Greenberg, Inc.

    1. Family owned business is a business that is owned by one family, most of the shareholders are from the same family. One of the major problems in this type of business is a conflict in interests among the family’s member. The auditor should be careful and observe the type of the relationship among the family’s member. There should be a written agreement to specify rights, duties, and obligations for each member, the auditor should read those documents for further information. One issue that faced the auditor is to understand the attitude of each member, the risk of manipulating facts can be existed due to the close relationship. In the case of Jack Greenberg, the son has manipulated the numbers in the record for his father’s sake and no one would be able to prevent him since he is one of the owners. The possibility of hiding facts is high in this kind of business because of the close relationship among the family’s member. I believe the family owned business demands more effort from the auditor to check and discover misstatements.…

    • 919 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Rock Creek Golf Club
    • 1499 Words
    • 6 Pages

    Rock Creek Golf Club

    The implicit rate for the lease is 3.78%. This has been determined using the “IRR” function within excel, with the cash flows of $89,600 in year zero (since RCGC will be receiving 40 golf carts valued at $2,240 each) and -$20,000 in years one through five (payment of $500 for each of the 40 golf carts each year for five years). Table 2-1 listed below uses data based on a 40 golf cart purchase. With total net cash flows equal to -$10,400. This means that RCGC is paying $10,400 above the selling price in order to lease over a five-year period.…

    • 1499 Words
    • 6 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Kendle International Inc
    • 2076 Words
    • 9 Pages

    Kendle International Inc

    Candace Kendle, the chairman and CEO of Kendle International Inc and her husband Christopher C. Bergen, the president and CFO privately hold Kendle, a Contract Research Organisation which was incorporated in Cincinnati, Ohio in 1981. The Company provides integrated clinical research and drug developmental services on a contract basis to the pharmaceutical and biopharmaceutical industries. The Company's services comprise Phase II, III and IV of clinical trials. The CRO industry is a full service industry which provides integrated product development services to the pharmaceutical and biotechnology industries. CROs thus derive most of their revenue from the R&D spending of pharmaceutical and biotechnology companies which is growing at a rate of 10% a year. These services are provided in accordance with government regulations. In 1995, worldwide spending on R&D by pharmaceutical and biotechnology companies was estimated at $35 billion, of which $22 billion was spent on drug development activities and $4.6 billion was outsourced to CROs. CRO’s strive to boost revenues through faster drug development while also dealing with cost control pressures. The CRO industry is highly fragmented, with several CROs ranging from small, limited-service providers to full-service corporations. The number of new smaller entrants is increasing, however to develop capabilities of a full service CRO, significant cost and experience are necessary in order to: develop expertise in the various therapeutic areas, to develop the ability to manage complex clinical trials, to prepare regulatory submissions and also for developing integrated clinical data management capabilities. These factors have led to an increased rate of industry consolidation. Key Success Factors in the CRO Industry: Therapeutic expertise, broad range of service offering across multiple phases, Integrated Clinical Data Management (for efficiency in collection, editing, analysing date from thousands…

    • 2076 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Case Study Analysis Callaway Golf
    • 1408 Words
    • 6 Pages

    Case Study Analysis Callaway Golf

    They understood their customer well. They had the ability to identify and solve latent needs (e.g., a driver with accuracy) created a "pull" demand pattern. Pull demand made collaboration of retailers' easy and even enhanced promotion through voluntary celebrity usage. This took design expertise, in addition to understanding the addictive/obsessive/emotional relationship golfers have with their equipment. Selection of the average golfer as target customers tapped into the market most influenced by and likely to discuss golf technology. This is also one of the fastest growing segment, 27 %( 5.4m) of 20m US golfers in 1986, 32% (8.4m) of 26m US golfers in 1998.…

    • 1408 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Good Essays

    Callaway Marketing Strategy
    • 703 Words
    • 3 Pages

    Callaway Marketing Strategy

    Callaway's main strategy is differentiation based on technologically advanced products which (supposedly) have performance advantages sufficient to justify the premium price. Callaway's goal is to maintain its #1 position as the world's largest golf merchandise company. To maintain its status and distance itself even further from the competition, Callaway will need to utilize its size and unique technological advances to continue to produce great products that maintain customer loyalty while attracting a broader customer base. Callaway now can also use the products of its recent acquisition of Spalding to further reach a wider customer base. As it continues to pursue a better research and development program this will enhance its value chain capabilities and allow them to compete even stronger within the golf industry. The case speaks about Callaway's principal value chain activities being product development, purchasing, assembly, quality assurance, and marketing. Callaway's value chain does not appear to differ significantly from that of its rivals, outsourcing versus internal activities seem to be similar. Some resource and capabilities that I think will be important for Callaway in the future are:…

    • 703 Words
    • 3 Pages
    Good Essays
    Read More
  • Better Essays

    Coach Inc
    • 1759 Words
    • 8 Pages

    Coach Inc

    1) 1. What are the defining characteristics of the luxury goods industry? What is the industry like?…

    • 1759 Words
    • 8 Pages
    Better Essays
    Read More
  • Good Essays

    Benefits Of Golf Essay
    • 543 Words
    • 3 Pages

    Benefits Of Golf Essay

    Golf is one of the most popular sports worldwide, and it challenges your mind and your physical abilities as well. It's played on outdoor grass courses, and buying the necessary equipment to play this sport isn't a very big investment either.…

    • 543 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Clarkson Lumber Company
    • 405 Words
    • 2 Pages

    Clarkson Lumber Company

    i. CLC must improve their current ratio to ensure the bank it will have the ability to repay a larger loan.…

    • 405 Words
    • 2 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Coach Inc
    • 263 Words
    • 2 Pages

    Coach Inc

    Coach, Inc. is a designer, producer, and marketer of a prestige line of handbags, briefcases, luggage, and accessories. The company made its reputation selling sturdy leather purses in unchanging, traditional, classic styles, and it remains one of the best-known leather brands in the United States and has a growing reputation overseas. In addition to its main product line, the company offers Coach brand watches, footwear, and home and office furniture through agreements with licensing partners. Nearly two-thirds of company sales are derived from direct-to-consumer channels.…

    • 263 Words
    • 2 Pages
    Satisfactory Essays
    Read More

Related Topics