Case Study-Hubbard Foods-Fake Company

2633 Words Jan 31st, 2006 11 Pages
COMPANY BACKGROUND

Hubbard Foods Ltd started up in mid-1988 and a private limited company. The company was originally named Winner Foods Ltd and only 4 employees at that moment, now currently has staff about 150.
In 1990, Dick¡¦s decision was made to introduce the Hubbard brand as the main brand for breakfast cereal products. The company¡¦s products set the price at both the high price range and low end of the cereal market.
Hubbard¡¦s has consistently built a culture around caring for others, creating employment and being socially responsible. In 2000, the company increased pay and allowances, and increased communication between management, the union and employees.
In 2000/2001, the company exported 14.4 per cent of its production
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In fact, it doesn¡¦t have enough power to do the acquisition. Licensing is one of the good way also because it is both low in cost and risk, it only license out the production way is enough. However, the consideration is the returns are not high.
Actually, exporting rate is low; it have to see the internal strategic and external strategic position first if they analysis this problem. There has a major change in internal strategic position from no production line to a systematic production way, this would be the significant change. In an external way, the extension of the production would let to export product to the world-wide where is an untapped market. It should be a major change because it is only export to Australia, U.K., Singapore and Hong Kong only if it is not have a systematic production line. Now, which way should take if enter into a new market. Using exporting way; it¡¦s a high cost and low control method because they need to spend a lot of marketing and distributing expense to form the channel for them to export, however, ¡§no pain, no gain¡¨. (Hanson, 2005)
A strategic alliance is a good way for the company because it allows sharing the risks and the resources with the alliance that mean does not have to bear all the risk of the exporting. In addition, the alliance can help it to develop the new competencies - maybe the new product or

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