Strategic Management of Macpac Case Study

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Macpac Case Study

Strategic Management of Macpac Case Study

Analyzing the case study of Macpac identifies multiple strategic issues which the company faced in its peripatetic from startup to "iconic New Zealand Company" (Benson-Rea, M. & Shepherd, D. 2008). Of these strategic scenarios three in particular stand out as representative of the challenges facing organizations in the "worldwide movement toward economic, financial, trade, and communications integration" (Business Dictionary. N.D.). Globalization provides context for Macpac's three strategic challenges and subsequent policy choices: expansion of sales beyond New Zealand to encompass the scope and breadth of global markets, direct selling to retail partners; and of greatest importance to their financial survival, the outsourcing of manufacturing to Asia. These three strategic challenges form the foundation as to how Macpac moved through their life cycle from introduction, growth, maturity, decline, and ultimately renewal. An analysis of each of these three strategic challenges will allow for a more perspicuous view of the development of the organization.Buy full Download Microsoft Word File paper
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Case Study on Strategic Management of Macpac Case Study Assignment

Macpac's advent over three plus decades was concomitant to the rise in export opportunities for companies around the globe. Based in New Zealand the company initially sold predominantly in their locale however, the late 70's and early 80's saw the expansion of exports of the firm's outdoor gear to Australia, accounting for "five percent of total sales of one million: (Benson-Rea, M. & Shepherd, D. 2008). This initial movement to an export driven sales approach further develops the basic principles of Strategic Management: customer focus, competitive advantage, and resource-based analysis (Lynch, R.N.D.). Bruce McIntyre "the entrepreneurial founder of Macpac" (Benson-Rea, M. & Shepherd, D. 2008) understood that the future of the business was rooted in the development of global markets. From a strategy perspective an organization will typically follow one of two models or both in developing their blueprint: prescriptive process and emergent process. "A prescriptive strategy is one whose objective is defined in advance and whose main elements have been developed before the strategy commences. An emergent strategy is one whose final objective is unclear and whose elements are developed during the course of its life, as the strategy proceeds" (Lynch, R.N.D.). In the case of sales expansion beyond New Zealand borders, there was a combination of both processes. McIntyre clearly had designs on expanding the business to Australia and in this regard the prescriptive process was evident. Too, McIntyre looked to the U.S. For market growth, and subsequently to Europe in economically strong countries: Great Britain, Switzerland, Netherlands, and Germany. These efforts while having the desired outcome of increased global sales relied more on changing developments and elements as the strategy unfolded. The U.S. market for example was extremely tough for Macpac to crack while Europe seemed to fit well into their sales and marketing approach. Invariably the prescriptive and emergent process together was responsible for the success of the export strategy. In 2005 exports accounted for 65% of total Macpac sales (Benson-Rea, M. & Shepherd, D. 2008), a figure representative of not only the burgeoning global trade environment, but a strategic shift to direct selling of product to retailers.

The 1990's were a time of transition for Macpac, particularly in the shift away from utilizing agents and distributors. Of fundamental importance to the company was the expansion of sales opportunities however, the reliance on outside distribution channels was detrimental to their profitability. In 1992 the company "started selling directly to Australian retailers…followed closely by similar arrangements in Europe and the U.K." (Benson-Rea, M. & Shepherd, D.… [END OF PREVIEW] . . . READ MORE

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