SEagrams
BUSM35436 Business Cases
Case Analysis Template
NAME:
DAY & TIME of CLASS: (eg. Mon 3pm)
Marks Guideline
5
Key Facts of the Case (no analysis)
-Who is the decision maker? (Remember: in analyzing a case you have to put yourself in the position of the decision maker and try to figure out what YOU would do in his/her position).
-maximum 5 key facts that summarize the case.
-Ian Swanson, president of Finance at Seagrams greater China is left with the task to determine pricing levels to recommend based on the new import duty regime.
-For Chivas Regal, passing on 100% of the duty savings, could result in 25% increase of volume. Passing 75% of savings would increase it by10%. For standard cognac. Passing 100% of duty savings, could increase volumes by 10%
-The entry of “look-a-likes” Japanese whiskey has obtained a moderate amount of the market and is increasingly popular towards “price conscious” consumers
-Hypermarkets have been a favourable type of distribution channel by companies and have grown control over 30% of the island sales
-New legislation that applies to all categories of spirits that could potentially enhance margins for Seagrams and overtake competitors based on what decision Ian makes
5
Problem(s) Statement
-What is the main problem(s) or opportunity(s) that you (as decision maker) must deal with?
-How urgent and how important is this issue and why?
Based on the new import duty regime, which pricing alternative he should choose in order to ensure Seagram’s market share and profitability increases in Taiwan.
What decisions should he make on pricing levels? How would it impact Seagram’s overall global operations?
Due to the fact that there is an increasing amount of “Price conscious” people in Taiwan, the threat of low priced alcohol such as Japanese whiskey can lower Seagrams in sales volume and market share (Since Seagrams is high priced). This is a problem that must be dealt with immediately.
25
Problem(s)
Case Analysis Template
NAME:
DAY & TIME of CLASS: (eg. Mon 3pm)
Marks Guideline
5
Key Facts of the Case (no analysis)
-Who is the decision maker? (Remember: in analyzing a case you have to put yourself in the position of the decision maker and try to figure out what YOU would do in his/her position).
-maximum 5 key facts that summarize the case.
-Ian Swanson, president of Finance at Seagrams greater China is left with the task to determine pricing levels to recommend based on the new import duty regime.
-For Chivas Regal, passing on 100% of the duty savings, could result in 25% increase of volume. Passing 75% of savings would increase it by10%. For standard cognac. Passing 100% of duty savings, could increase volumes by 10%
-The entry of “look-a-likes” Japanese whiskey has obtained a moderate amount of the market and is increasingly popular towards “price conscious” consumers
-Hypermarkets have been a favourable type of distribution channel by companies and have grown control over 30% of the island sales
-New legislation that applies to all categories of spirits that could potentially enhance margins for Seagrams and overtake competitors based on what decision Ian makes
5
Problem(s) Statement
-What is the main problem(s) or opportunity(s) that you (as decision maker) must deal with?
-How urgent and how important is this issue and why?
Based on the new import duty regime, which pricing alternative he should choose in order to ensure Seagram’s market share and profitability increases in Taiwan.
What decisions should he make on pricing levels? How would it impact Seagram’s overall global operations?
Due to the fact that there is an increasing amount of “Price conscious” people in Taiwan, the threat of low priced alcohol such as Japanese whiskey can lower Seagrams in sales volume and market share (Since Seagrams is high priced). This is a problem that must be dealt with immediately.
25
Problem(s)