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Aes Corporation B Global Sourcing Initiative Online Case Study Analysis

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Aes Corporation B Global Sourcing Initiative Case Study Solution and Analysis


Introduction

NASCAR (National Association for Stock Car Car Racing) is a company carrying out series of Stock Cars and truck racing in United States and acting as a sanctioning body for driving the rules for Stock Cars and truck Racing. 2) Stock Car Racing by NASCAR is the second largest viewer sport, with highest number of sponsors. 1) The other sources of income for Aes Corporation B Global Sourcing Initiative Case Study Solution includes; 10% of the overall profits from television rights, sanctioning charges i.e. $1-2 million per race, and licencing NASCAR brand to companies.

NASCAR has a closed corporate culture with the non-interventionist method. Nevertheless this non collaborative technique brings tensions in the sport. The structure of Cars and truck of Tomorrow by Aes Corporation B Global Sourcing Initiative Case Study Solution, with an objective of security for the motorists, brought different stress amongst the stakeholders of the sport.

The interaction audit, performed in 2010, exposed that regardless of the truth that the business highly count on the interactions between its stakeholders, there was no identifiable company communication technique. The market's target customers, direction and goals were all unknown.

The audit pointed out different doing not have of NASCAR in terms of lack of internal combination, absence of fan management technique and lack of social and digital media of marketing.

Aes Corporation B Global Sourcing Initiative Case Study Analysis viewers was extremely devoted to the sport and the brand names connected with the NASCAR, making it appealing for sponsors and business marketers.

Issue Declaration.

The business is presently facing the problem of declining rates of presence at racing tracks and rates of television audiences. This can put a significant impact on its profits from sponsors, media rights, and from other sources of earnings.

Situational Analysis.

The company was quite successful till 2005 with its standard marketing techniques, but soon after 2005 the company begins dealing with numerous problems including decline of its fan base. A number of external along with internal elements are responsible for the decrease. Internal factors include; insufficient financial investment in social media and other digital medias of.

Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their children and produce generational loyalty. Other challenges for NASCAR includes the shift of its fans to other sports as they were improving their fan's experience allowing access to their broadcasts out of the homes through jumbo turns, Wi-Fi gain access to, and so on.

SWOT Analysis.

Strengths.


In SWOT analysis, strengths defined as company's qualities which are different from its rivals. These are company's core proficiencies on which business performance or company success based upon. Aes Corporation B Global Sourcing Initiative Case Study Solution core proficiencies includes it has rights of dictating guidelines as approving body. Rules and guidelines regarding professional stock automobile racing are determined by NASCAR like if any team with required skills and resources can participate in races by following rules and regulations dictated by NASCAR. NASCAR has monopoly it this element. Its strengths likewise consists of that it has title of second largest spectator sport in the United States with having more fortune 500 sponsors based in US. Its races were utilized to transmit in more than 150 nations all over the world with more than $56 million revenues. The main sources of their incomes come from television rights, sanctioning fees, sponsorship and licensing. It has longest season of 10 months and having ownership of 3 nationwide series i.e. Outdoor camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has likewise big resource of fans and corporate sponsors. Since of biggest brand loyalty of fans toward brand names promoted by NASCAR, all the occasions of NASCAR are sponsored by corporates. (See Appendix A).

Weaknesses.

Weak Points in SWOT Analysis are thought about as external elements. Weak points includes the factors that stops company to carry out at needed level of effectiveness. Weaknesses of NASCAR includes its close culture which is non collective. They have non-interventionist approach. They generally utilized to form guidelines and other needed procedures without intervention of others which results in poor partnership. NASCAR develops Cars and truck of Tomorrow without collaboration so result is that drivers did not like that idea. As this is racing sport so covering of sports by media is likewise challenging. It was likewise found that NASCAR had no effective strategy for organisation interaction. If it happened off track, they do not understand how to deal with issue. Inadequate service interaction leads to that they do not have clear direction for their long term goals. They don't know that where they want to see this sport in future.

Opportunities.

Opportunities in SWOT analysis are external elements which can be beneficial to business or the external aspects on which company is having competitive benefit. NASCAR typically used to depend on standard media sources like regional paper for publicity of its sports. Generally these traditional media sources attempt to cover their house team and certain type of occasions. NASCAR likewise came to know from these traditional media outlets that sport was hard to cover. Media landscape also altered from conventional to digital landscape. Newspapers failed. NASCAR can work on its capabilities to get optimal possible gain from this new digital landscape. NASCAR have underinvestment in digital resources. It can capitalize in digital and social media to get its advantages. Digital rights of NASCAR were also sold to Turner Sports. NASCAR utilized to get pay check of around $15 million yearly from Turner Sports. There are variety of cons behind this offer. NASCAR had to get approval from Turner Sport if it desire to produce its Facebook page, twitter account or even mobile application. Turner Sport likewise had rights of every video which is shoot during race at track. If media sources like papers, magazines and cable channels want to publish videos of races on their particular pages then they are needed to pay licensing fees to Turner Sport. NASCAR can work on terms and conditions and try to negotiate with Turner Sports to get maximum benefits of it. Star power plays really important function in creating revenues from every sport. It was noted that NASCAR is lagging in this location i.e. star power. When sports fans were asked regarding popular celebrities and stars then NASCAR driver was not found even in top twenty reactions. NASCAR can put efforts in this location too for profits generation. They ought to guide their motorists that how they can end up being sport stars. 4 tactical focuses which are generated by research study team can also be served as chance for NESCAR. These four tactical focuses compares and analysis Aes Corporation B Global Sourcing Initiative Case Study Help strategies.

Threats

Economic down turn was experienced in late 2000 which can be risk for NASCAR due to the fact that if there is economic down turn then individuals would be having less return on financial investment. Economic down turn also results in increase fuel rates which also affected NASCAR. Now if NASCAR make substantial investments in brand-new segments which are based on brand-new clients then it might face negative comments from its core fan base.

Porter's Five Forces Analysis

It is important to comprehend industry in which business is working because NASCAR's bottom line i.e. net earnings is greatly depends on this. There are 5 forces that are used to identify profitability, strength and attractiveness of NASCAR organisation.

Competitive Competition

These drivers can go versus NASCAR if they got much better opportunity in terms of prizes and television direct exposure. If audiences take pleasure in other race automobiles and drivers more than NASCAR then viewers can move to those other interesting cars and trucks and chauffeurs. NASCAR could be having risk from its two direct rivals that is Solution 1 and Moto GP.

Provider Power

The provider power shows the number of providers are offered in industry and what is the expense connected with provider if business shifts from one provider to another. Since chauffeurs with needed resources and skills are restricted, in this industry there is supply monopoly.

Purchaser Power

In the case of NASCAR clients are its viewers. Audiences can change to other rivals easily due to the fact that audiences will having low switching expense.

Threat of Substitution

Substitutes are referred as alternatives. The substitutes in this case can be other home entertainment indicates like viewers can shift to other sports. There are broad range of replacements are available in this scenario which suggests that danger of alternative is high.

Danger of New Entry

It is defined as how it is simple for any company to enter in that particular industry. In the case of Aes Corporation B Global Sourcing Initiative Case Study Solution risk of new entry is low. Because if any business needs to enter in this service than they have to make heavy financial investments. They need to build vehicles and racing tracks and also requires to pay hefty amount to chauffeurs for switching.

PESTEL Analysis

Political


It can not be concluded from case research study that there would be change in resource allowances. NASCAR had actually got gain from lower tax policies which results in increasing in revenues. They made heavy financial investments in the research and advancement. As NASCAR is working in numerous markets so it needs to face different regulations. It is also kept in mind that Aes Corporation B Global Sourcing Initiative Case Study Analysis has actually faced increased examination concerning regulative. Every federal government has various concern so NASCAR has to be prepared for it as priority can be shifted to other sector.

Economical

Economic elements includes taxation rate, exchange rate, financial efficiency of that specific company, conditions of labour market, inflation rate etc. Fortunes of the NASCAR and its rivals can be affected if there is federal government intervention in the marketing and sales sector. NASCAR can take advantage of capabilities of employees to develop brand-new chances and improve existing chances.

Social

Every society is various from each other. Each has various social worths and norms. It assists in comprehending concerning society and choice of customers. Social elements includes traditions, culture, mindsets towards particular services and products, demographics, norms, interests and so on. It can be concluded that marketing through other means rather than standard (i.e. newspaper) can be preferred in this society.

Technical

In this case of NASCAR it can be noted that business are greatly spending for research and development. NASCAR should likewise work on its media rights policy with Turner Broadcasting System.

Legal

Legal plays a crucial role in every country due to the fact that every nation has different legal terms. Aes Corporation B Global Sourcing Initiative Case Study Analysis needs to be make certain that they safeguard their legal rights in every county so any company does not damage to its legal rights.

Environmental

Ecological factors are likewise essential for every service. NASCAR requires to make sure that its cars are not creating contamination more than acceptable level.

7 P's of Marketing

Product

The items of Aes Corporation B Global Sourcing Initiative Case Study Analysis in its item portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, approving guidelines for races and ad-space to corporate online marketers throughout broadcast of NASCAR races. (Hanlon, 2018).

Rate.

Prices strategy of NASCAR for its race events tickets is based upon the location and significance of the racing events. Along with race events tickets, NASCAR likewise charge numerous service charge to its stakeholders and makes earnings. For example it charged approving costs of $1-2 million per race typically in 2005.

Promotion.

Marketing strategy of NASCAR is highly based upon its fan base. A strong fan base share its fandom with others and increase the number of audiences for NASCAR races.

Place.

NASCAR have its racing tracks in different cities in United States. The most important tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Vehicle Club Speedway in California and Darlington Raceway in South Carolina. It attempts to perform its races in the majority of the cities in United States to understand across the country appeal.

Individuals.

Nestle individuals method is comprised of providing better experience to its audiences, its fan base and to all of its stakeholders. People are a crucial element of Aes Corporation B Global Sourcing Initiative Case Study Solution A marketing strategy as its occasions are the source of entertainment for crowd. Its individuals method includes efforts to provide better experience to its Fans, Race Drivers, Team, Event Organizers and so on, all of which come under people technique of NASCAR.

Processes.

A number of company procedures are needed to perform racing events in an efficient method. These processes consist of; appropriate schedule of time, plan for spectators, offering tickets, arrangement of area for sponsors, handling logistics etc. These all procedures contribute I developing NASCAR image, improving spectators experience and increasing fan base.

Physical Proof.

Most important physical proofs for the NASCAR consists of the existence of its racing tracks, stock vehicles and racing events. Together with it, its retailing brand names consisting of t-shirts, caps, goodies etc., likewise function as a physical proof for NASCAR.

Item Life Cycle Assessment.

The racing events by NASCAR was presented on June 19, 1949. At the very first stage competition for NASCAR was low, as the competitors drove the vehicles similar to the vehicles driven by common people.

Growth.

After conducting its very first race effectively the business moved towards constructing its own tracks. The first Aes Corporation B Global Sourcing Initiative Case Study Analysis based track, namely the Darlington Raceway track, was started in 1950 in South Carolina. It was followed by facility of more raceways consisting of Daytona International Speedway, which was opened in 1959. After the growth of racing tracks the company moved towards broadcasting its races on television in 1979. The first occasion relayed on television was flag-to-flag protection of Daytona.

In 1972, William France Jr., became the president of NASCAR and n about 3 years, he transformed NASCAR from a regional Sport popular organization into one with worldwide fan base. He started a new era of financially rewarding sponsorships and tv agreements for NASCAR.

Maturity.

The maturity period for NASCAR started with the efforts of William France Jr., with the company having wide variety of income sources. The business has about 500 sponsors with relaying its occasions in about 150 nations. The business has a great deal of tracks in the majority of the cities of United States.

Decrease.

The decrease in the company's offerings started after 2005 with average presence rate per race decreased by 22% from 2005 to 2010 and television viewership rate declined by 30% from 2005 to 2010. The major reasons for decrease consist of the monetary crisis of 2008, which increased the cost of getting to tracks for audiences due to increasing fuel costs, and the shifting of its fan base towards other sports.

Market Segmentation.

The market segmentation of Aes Corporation B Global Sourcing Initiative Case Study Analysis can be divided into four segments; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).

Geographic.

The geographical segmentation of Aes Corporation B Global Sourcing Initiative Case Solution is based upon the geographical presence of its tracks in numerous states and cities in United States, and the tv broadcasting of its occasions in different nations. The business has 23 tracks in about 20 states of America and has television broadcast through numerous Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This large geographical segmentation supplies the business regional along with worldwide fan base.

Group.

The demographic division of NASCAR is likewise highlydiverse based upon the gender, earnings and age of the consumer. Its existing fan base is majorly comprised of male married fans with a typical age of 47 years and an income around $30-50 thousands. Presently NASCAR is attempting to increase its target market to the young growing population and kinds. To increase the demographic segment of its market NASCAR ought to modify its marketing techniques to attract more age and lower its rates to enter in the marketplace sector with a low typical earnings.( htt1).

Psychographic.

NASCAR has a fan base with a commitment. NASCAR fans view it compulsive to acquire tickets and see the races as soon as in a week. NASCAR has attempted to increase the quality of its racing by introducing phase racing, they likewise have tried to lower costs and make the occasion more hassle-free by presenting live racing.

Behavioural.

Behavioural segmentation of Aes Corporation B Global Sourcing Initiative Case Study Solution is based upon the behaviour of fans in terms of seeing the race survive on the tv or by going in the occasions. Presently, the fans choice is towards watching the race in the house on tv instead of going, as the customer experience at NASCAR tracks is not beneficial as well as pricey. This preference makes the rates for participation lower than the rates for television viewers. NASCAR has to change the behaviour of its fan base by introducing qualitative services at its tracks.

Target audience.

Hispanics.

One of the prospective target market of Aes Corporation B Global Sourcing Initiative Case Study Analysis was Hispanics; the young and growing population of United States. The marketplace section has excellent potential for NASCAR as the population was growing at a greater rate and it was expected to end up being thrice after forty years and the section has increasing wealth rate with about $1 trillion of wealth in 2014. Although, the segment shows affinity with automobile culture, however need a more focused marketing towards welcoming the section towards racing.

Kids.

Kids are also among the possible target market segment for NASCAR, as they are more connected socially than other groups. Producing fan base amongst kids can provide a potential increase in the number of fans for racing due to their connection. Kids spend most of their times in using smartphones and playing computer game. Car racing video games established by Aes Corporation B Global Sourcing Initiative Case Study Analysis can be a possible source of gaining attention of kids towards NASCAR track racing. However, NASCAR's digital features associated with kids are not capable of gaining the attention. NASCAR requires more attention towards customizing and enhancing its digital features to draw in the kids target market.

This huge expense makes the section capacity for NASCAR marketing strategy of increasing its fan base. The market segment considers NASCAR as an organization lacking in creating a multiculturalism atmosphere. NASCAR ought to take numerous actions to enhance the experience of Generation Y customers in its occasions.

5 C's of Marketing

5 C's of marketing helps in taking choices relating to marketing. These 5 C's needs to be analysed appropriately for taking any marketing choice. These 5 C's mean Climate, Company, Collaborators, Clients and Competitors.

Climate/Context.

It needs to make PESTLE analysis in order to understand climate or context in which NASCAR is working. PESTLE represents political, economic, social, technical, legal and environmental and is stated above.

Business.

NASCAR is an auto racing business with having USP of high quality car racing with a global structure. Its sector is sports team and events. Its target audience is males in the age group of 15-60 years. Business has actually closed corporate culture and having non-interventionist approach.

Collaborations.

Collaborations includes distributors, suppliers and alliances of Aes Corporation B Global Sourcing Initiative Case Study Analysis. It is teamed up with various racing teams which are participating in racing. It likewise collaborated with Turners Sport for digital rights. NASCAR used to make money check of around $15 million every year from Turner Sports. There are number of cons behind this deal. For example NASCAR had to get approval from Turner Sport if it want to produce its Facebook page, twitter account and even mobile application. Turner Sport likewise had rights of each and every single video which is shoot throughout race at track.

Clients.

The client of Aes Corporation B Global Sourcing Initiative Case Study Analysis are its audiences. They target consumers with having age of 15-60 years. Fan base of NASCAR consisted of married males with an average age of 47, which passes their fandom to their youngsters and develop generational commitment.

Competitors.

Groups usually represents sponsors in NASCAR and the medium of advertising is motorists. These motorists can go against NASCAR if they got better opportunity in terms of prizes and tv direct exposure.

Marketing Methods.

1. Preserving and establishing Facebook Page.
One of the prospective target markets sections for NASCAR is Hispanics which is the growing population sector of USA but sadly NASCAR had actually been unable to bring in the this targeted section. It needs to develop a Facebook page consisting of the information concerning the races and the places of tracks to make the consumer informative about the core operations of NASCAR.
2. Establishing and Upgrading Accounts of Secret Drivers.
NASCAR motorists has a low star power as compare to players of other sports. Its ranks 7th in terms of star power (see Case Exhibition). The significant factor behind it is that, the racers mainly play in teams and are unable to develop a key account and preserve a close contact with fans. The bad contacts with fans lead to less attraction of viewers towards the racers and a low star power. Star power is an essential factor for drawing in audiences towards tracks and towards television. The star power for the drivers at NASCARA could be improved by developing and upgrading accounts of essential drivers by NASCARA itself. This would get rid of the requirement of requiring drivers to maintain their accounts and would lead to increasing fans attention towards NASCARA drivers.
3. Developing New Games and enhancing current video games for kids.
Kids invested the majority of their time on playing video games and utilizing mobile phones. But regrettably, kids playing NASCARA have a worst experience of playing its games. As an outcome, they are less brought in towards the sport. In order to attract these kids, NASCARA must improve its current racing video games by introducing customization in the vehicles i.e. altering colours, choice of speed, presenting group racing in the video game, utilizing better graphics associated with the racing tracks and presenting different levels in the video game. All these modifications in the existing game would provide better experience to kids.
In addition to it, NASCAR must likewise construct brand-new games associated with racing like kids racing with kids characters as drivers, cartoon racing with racing between various animation characters with an option of choosing the preferred animation character for the kids. These strategies would allow the business to attract among its potential target sections.
4. Presenting multiculturalism at occasions.
Aes Corporation B Global Sourcing Initiative Case Study Solution events are consisted of fans with extremely few multiculturalism, due to expense of arrival in events, making it unattractive for the consumers perceiving sport occasions as social occasions i.e. Generation Y consumers. As the Generation Y customers are a possible target audience for NASCAR, for that reason the business needs to take particular steps to attract this possible target market. It needs to adopt strategies to draw in the consumers far from the tracks area with various culture. The method to do so could be supplying unique discount rates on tickets or free tickets to viewers coming from a particular distance or from another state. It would increase multiculturalism of the fans and would make Generation Y consumers more pleased.
5. Improving Customer Experience at Tracks.
NASCAR should work on facilities and amenities at tracks because on the race day viewers got dissatisfied. Viewers have numerous expectations from Aes Corporation B Global Sourcing Initiative Case Study Analysis because in very same market other companies are supplying better services than NASCAR. IF NASCAR don't work on this problem then its fans may shifted to its rivals.
Marketing Spending plan.
Marketing spending plan made on the basis of the above techniques for the duration of 5 years from 2011 to 2015, shows the expense related information for the marketing strategies. It can be seen that technique 5 of enhancing client experience at tracks would need highest preliminary investment and expense and method 4 of presenting multiculturalism will need most affordable preliminary investment with lowest even more per year cost.
NOTE: The values about expense are presumed on reasonable basis due the absence of figures and facts connected to cost in the event research study. Inflation rate of United States is assumed to be 10%.

Suggestions.

On the basis of deep analysis of the external and internal factors of Aes Corporation B Global Sourcing Initiative Case Study Help triggering the decline of television viewership rate and presence rate at tracks, the above marketing techniques are advised to NASCAR to increase its fan base in long term. These methods would handle internal aspects like bad consumer experience at tracks, insufficient social media marketing, incapable digital medias like video games, absence of culturalisms at tracks etc., as well as with external factors like shifting of fans towards other sports, demographical modifications in America and altering family life designs.

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