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Summary and facts of Foreign Subsidiary Case

Category: Corporate Finance Paper Type: Report Writing Reference: APA Words: 1500

The case study is discuses about the foreign subsidiary case, and it discusses about the atmosphere of the little Vermont town of Burlington. This case study provides the overviews about Napoleon Corporation and its financial situations. The operational strategies and perspectives of the Oscar Lyne are explained in this case in explanative manners along with the financial performance of the Napoleon Corporation. This company has faced costly compensation and public embarrassment due to the weak promotional planning in the subsidiary of the United Kingdom. The significant facts that are discussed in the case study are related to the subsidiary company named as; Trident Limited and its various particular dilemmas related to weak promotional planning and operational planning. Oscar Lyne now required a consultant in order to evaluate the performance and problems of Trident Limited.    

Statement of the consultant of Trident Limited

As a consultant of Trident Limited, the situation which I have analyzed is that some wrong decisions have been taken by the operating divisions related to the promotional planning.

It is a major problem because the wrong decisions will lead the company to great loss like the Trident company has faced and it is a problem because it has created some serious situations for the company as well as the customers who are buying the products from the Trident Limited, the company has made such statements in order to get the attention of the customers and the statement made by the trident company was such a big deal that it cannot be fulfilled. This is a problem for the employees of the countries, the suppliers, and the customers as well who are buying their product. It is a problem for the employs in such terms that the employees have made such wrong decisions and has not consulted it with anyone before implementing it, they launched a travel promotion if the customers buy the products from the Trident Company in order to get the travel tickets to travel to different countries suggested by the Trident Limited.

Problem Analysis of consultant of Trident Limited

It has been analyzed in this case that the strategies of Trident Limited are not established in a good way to fulfill customer needs. It cannot be fulfilled as more customers can buy the products, and they can qualify for the travel tickets, and then this will cause a problem for the employees and the industry as well.

They have to notify this problem before implementing any decision publically. And it is a problem for the customer as they have spent many dollars buying the products from Trident just in order to get the travel tickets. They have spent so much money with such confidence that they will get the ticket in return, but more than 200,000 people responded to the Trident Company and buy their products and only 6000 people get the travel ticket. The ticket for other customers was in progress, and this made an issue for the customers. They want their money back or wanted a travel ticket, as they have spent so much money on the products. If they didn't get the money or the travel ticket, the other customers have lost their interest in the products of the Trident Company. The Trident Limited have bare a great loss of almost $50 million. This has been a problem for the employees working in the industry, the industry, and the customers. All these are affected by just a single decision taken by the company in order to attract the customers and to sell their products and gain profit, but sometimes over efficiency and innovation leads to a big loss.

Evaluation of Alternative of consultant of Trident Limited

The alternative decisions can be made to avoid this loss and this great tragedy. The Trident Company and all the employees and the operating divisors should make a decision altogether before implementing a travel ticket on the purchase of the Trident Limited.

·         Launching a travel promotion for UK travellers

Pros of consultant of Trident Limited

Ø  Increase in the customer attraction towards purchasing tickets on discount

Ø  Increase in the sales growth of the company

Ø  Enhance the overall profitability of the company

Cons of consultant of Trident Limited

Ø  Decrease in customer satisfaction if failed to implement properly

Ø  Excessive customer response towards promotion (more than expectations) would cause issues  

Ø  It will require the company to expense more cost

·         Introduce a lucky draw based ticket selling system.

In this alternative option, customers would be able to get the same deals on the same ticket prices (as stated in the promotion) however, deals would be only given to the selected customers after a lucky draw.

Pros of consultant of Trident Limited

Ø  The alternative is based on a clear selection method which will reduce chances of conflicts between the company and its customers

Ø   The alternative will also limit the total number of winners to avail discount deal from promotion

Ø  Customers who would not be selected in the lucky draw would not be able to claim against the company thus the company's reputation will remain safe

Cons of consultant of Trident Limited

Ø  It will result in a decrease in customer’s attraction towards the offered deal because many customers will not focus on this offer as they would consider that the probability of winning this deal is limited.

Ø  Only 50,000 customers would enjoy this offer

Ø  Some customers might be disappointed due to they were not selected on the lucky draws

·         Employs more expert marketers to create a proper marketing promotion

Pros

Ø  With employing more expert marketers, they will able to create a proper marketing promotion

Ø  The expert marketers will prevent the company from making the same mistake and disappointing the customers

Ø  Those expert marketers will also enhance the marketing strategy for the company to get more customers in the future

Cons

Ø  The expert marketers will demand a bigger salary

Ø  The expert marketers might be unable to convince the customers who have already disappointed previously

Ø  The company will need to recruit expert marketers who will demand the expense budget

·         Assign  a professional staff to manage this promotion

Pros

Ø  The assigned staff will make sure that there will be no issue like this appear

Ø  The assigned staff will maintain the number of travel tickets to be distributed and notify the company so that they would not accept any payment from more customers

Ø  There will be no misinterpretation of the data regarding how many customers who have bought the products and deserve to get the travel tickets

Cons

Ø  The assigned staff might also perform some mistakes around the distribution of tickets

Ø  The customers might complain only to this assigned staff, and thus, he or she must have the proper knowledge to handle the customers

Ø  The assigned staff might demand a high salary

Recommendation of consultant of Trident Limited

Introduce a lucky draw based ticket selling system appears to be the best alternative whereas, in this alternative option, the customers would be able to get the same deals on same ticket prices (as stated in the promotion), however, deals would be only given to the selected customers after a lucky draw. By doing this, the customers will understand that the consequence of the lucky draw and will not get angry or disappoint if they would not be selected to win the travel tickets.

However, the company still needs to revisit the plan frequently to add some changes or to remove some things from the plan according to the response of the customer. Then by revisiting the plan, you can update the plan according to the requirements and choice of the customers, and this will be a benefit for the company, and it can set its place again in the market.  Resisting the plan and strategy is one major thing to be done after implementing the strategy. This will reduce the risk in the market, and the company will be more sustainable.  

Implementation of consultant of Trident Limited

The implementation of the strategy is one of the most important parts of any study, if these strategies are implemented before executing any plan, then the plan will be successful, and no flaws will occur in the plan. While the discussion is related to the implementation of the strategy than it is necessary to highlight the stakeholders of the company who are accountable in order to implement the strategy.

Short Term Plans

Long Term Plans

Lucky draw based ticket’s promotion

Time: 3 month

Action:

Trident Limited will offer a lucky draw based ticket promotion system for the most frequently visited tourist places or some selected destination of the UK.   

 

Offer 25% off to regular customers 

Time: 1 year

Action:

In this long term plan, Trident Limited will plan to provide at least 25% off in Christmas and winter holidays to all their regular customers.   

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