PART 3
Toyota Incident
1. Toyota had achieved the pinnacle in the U.S. market by creating a reliable, high-quality,
fuel-economic cars. The past three years have seen that brand’s superiority erode. What
can Toyota do now to recapture their market share? With Toyota’s new brands Venza and
Yaris, can Toyota attract new, younger market with new social media? How does Toyota
break out of the stodgy styling of past brandsor should it?
This question will be good for class discussion. Students may say that Toyota’s new brands
Venza and Yaris will help attract a new and younger market. Social media is the right way
2. Toyota is not only having a quality crisis but an internal battle as well, pitting the founding
Toyota family against a group of professional managers, each blaming the other for the
automakers problems. Why?
3. Did the “Toyota Way” get in the way of corporate response?
This question will be good for class debate in class. Students might say that the seven
distinct elements of the “Toyota Way”—kaizen, genchi genbustu, kakushin, challenge,
4. Did Toyota make enough changes to further prevent sales damage and to get the
company’s reputation back on path?
Although Toyota said it received the first complaint about the Prius in August 2007, some
reports go back as far as the early 2000s. It was only in October 2009 that Toyota began
Later, in February 2010, Toyoda, and Yoshimi Inaba, president and CEO of Toyota Motor
North America Inc. explained how the company was going to manage quality control in the
future. Among the proposed measures were setting up a system for customers’ voices
around the world to reach management in a timely manner and a system which will allow
developing to keep its customers safe and the safety features it is implementing in its
vehicles.
These efforts if properly adhered to may help prevent further sales damage and may
also help get the company’s reputation back on path.
The following steps may also help the company:
It could try to have a flat organizational structure instead of the current hierarchical
The Bell Boeing V-22
1. Why would the Bell Boeing team agree to an offset deal rather than insist on a money-
based transaction?
An offset is any type of nonmonetary compensation that a procuring government requires
an exporting firm to provide as a condition of the sale and generally commits the exporting
2. Why do governments typically take an unsupportive stance on countertrade arrangements?
Governments typically take an unsupportive stance on counterpurchase arrangements
because they may have to deal with goods that they are not accustomed with. Defense
3. Comment on this statement: “Offset arrangements involving overseas production that
permits a foreign government or producer to acquire the technical information to
manufacture all or part of a U.S.-origin article trade short-term sales for long-term loss of
market position.”
Students might say that the above statement is true. Because the U.S. producer is sharing
4. The international market is key for the V-22, which has been named as one of the programs
vulnerable to pending, deep cuts in U.S. defense spending. Does the Middle East hold
promise for the Osprey? Does Europe?
Students might say that the Middle East holds more promise for the Osprey than Europe.
Honeyland Manuka Honey From New Zealand: An International New Venture
1. Imagine that you are in charge of logistics for a small exporting business such as
Honeyland. What are the difficulties you need to think about?
The difficulties concerning logistics can be differentiated into two main categories. First,
there are general issues for a small exporter that ships to an Asian country that is non
2. What are the specific contextual requirements when exporting from New Zealand?
The contextual requirements specific to the countries involved are far-reaching. Both
countries, New Zealand and Japan, have entered into a legal framework that guarantees
3. Considering that Sue is under a significant time constraint, do you think that outsourcing
the entire logistics activity would be a good move for Honeyland?
This question is not easy to answer as both, yes and no, are correct. If the answer is yes,
4. What would have been an alternative entry strategy for the Japanese market?
Theoretically, there are other entry strategies possible, such as involving Japanese
intermediaries or a joint venture arrangement. However, Honeyland’s approach to sell
5. Do you think the company should expand or diversify?
Honeyland has reached the stage where the available time of management seems to restrict
Nova Scotia
1. How would you position Nova Scotia to potential American travelers? Use the benefit-
matching model to achieve your super-match.
The province is not actively considered as a destination choice by most consumers in the
U.S. market. The critical question, therefore, becomes what benefits does this market seek
from vacation travel that can be provided uniquely by Nova Scotia? In particular, what
benefits can be identified in Nova Scotia?
While research in benefit segmentation is needed to answer these questions, the findings
will most likely have a heavy emphasis on water activities, seaside activities, camping, or
2. Constructively criticize past positioning attempts, such as Come to Life.
Two reasonable criticisms are:
The general themes do not bring out the unique features of Nova Scotia; rather,
dimensions provided by locations such as Maine are brought to mind.
3. What other variables, apart from positioning, will determine whether Americans will
choose Nova Scotia as a destination?
Regardless of an attractive image, accessibility is important to the consumer. Accessibility
has two dimensions:
Accessibility in terms of physically getting to the destination
Amer and Japan: Making 2011 the Year to Go to Market for Amer Sports
1. What do you consider as key issues in implementing the new group-level strategy in local
Japanese markets? What do you see as success factors and challenges?
This question will be good for class discussion with students having different viewpoints.
In 2010, Amer Sports set up a group-level marketing function to gain local consumer
2. Consider the determinants of channel structure and relationships. How should Amer Sports
arrange its distribution to reach consumers in the mass markets? What kind of role do
distribution partnerships have in achieving the business goal of appealing to new
segments? What kind of conflicts may arise and how would you prevent or solve them.
At present, Amer Sports distributes to trade customers and directly to consumers. The
business clients include sporting goods chains, specialty retailers, mass merchants, fitness
3. What are your recommendations for channel management in Japan? How should Amer
adopt its global strategy to local conditions in Japan? Can Amer Sports as a Group learn
something from the Japanese markets?
In order to efficiently manage its channels, Amer Sports can establish distributor advisory
councils to help in reactive or proactive measures. After finding a suitable distributor, the
company can draw up a distributor agreement. Generally, such an agreement specifies the