Robert Rubin and Mr. Prince
Worksheet 1
A.
To summarize, the company faces several problems. The last two years have shown that it is not only slow to adapt to changing conditions but also unwilling to look for new markets. Moreover the management structure of the company is unsuitable for this kind of business.
Besides the excessive number of managers there is the problem of poorly defined responsibilities. Like the ratio between salary and commission is out of proportion.
B.
The growth of Formula One over the last ten years has been extraordinary. With 400 million people watching each race it is perhaps the world's number one sport, although football also makes this claim. Formula One is the ideal marketing tool for companies, as shown by the fact that sponsors for Jaguar, like Ford, Pag, and HSBC are very happy - despiet the fact that Jaguar is not actually very successful on the track. Most years the sport is dominated by two teams, Ferrari and McLaren-Mercedes, although other teams like BAR Honda, BMW Williams and Benetton Renault are important as well. Although Ferrari and McLaren-Mercedes have huge sponsorship deals. Ferrari's sponsors inculde Marlboro, Fiat and Shell, whereas McLaren-Mercedes have Mercedes, Mobil and Computer Associates. These two top teams each have a budget of over 300 million, and money comes in from direct sponsorship and trade support as well as merchandising, TV rights and prize money. Ferrari has an unusual problem. Their brand name is very famous and the team is very successful, yet they only sell around 6,000 cars a year. The problem is that they are not directly associated with a mass volume car producer, all the other teams are. In reality Ferrari is controlled by Fiat, but despite being the main owner Fiat gets little publicity when Ferrari wins. Many years ago Gianni Agnelli, the Fiat boss, wanted to rename the case Fiat Ferrari. Although he tried, he failed. A man called Enzo Ferrari, a legend in Italy, stood in his way. He died in 1989 and
A.
To summarize, the company faces several problems. The last two years have shown that it is not only slow to adapt to changing conditions but also unwilling to look for new markets. Moreover the management structure of the company is unsuitable for this kind of business.
Besides the excessive number of managers there is the problem of poorly defined responsibilities. Like the ratio between salary and commission is out of proportion.
B.
The growth of Formula One over the last ten years has been extraordinary. With 400 million people watching each race it is perhaps the world's number one sport, although football also makes this claim. Formula One is the ideal marketing tool for companies, as shown by the fact that sponsors for Jaguar, like Ford, Pag, and HSBC are very happy - despiet the fact that Jaguar is not actually very successful on the track. Most years the sport is dominated by two teams, Ferrari and McLaren-Mercedes, although other teams like BAR Honda, BMW Williams and Benetton Renault are important as well. Although Ferrari and McLaren-Mercedes have huge sponsorship deals. Ferrari's sponsors inculde Marlboro, Fiat and Shell, whereas McLaren-Mercedes have Mercedes, Mobil and Computer Associates. These two top teams each have a budget of over 300 million, and money comes in from direct sponsorship and trade support as well as merchandising, TV rights and prize money. Ferrari has an unusual problem. Their brand name is very famous and the team is very successful, yet they only sell around 6,000 cars a year. The problem is that they are not directly associated with a mass volume car producer, all the other teams are. In reality Ferrari is controlled by Fiat, but despite being the main owner Fiat gets little publicity when Ferrari wins. Many years ago Gianni Agnelli, the Fiat boss, wanted to rename the case Fiat Ferrari. Although he tried, he failed. A man called Enzo Ferrari, a legend in Italy, stood in his way. He died in 1989 and