Aggregate Production Management 2002 Online Case Study Solution

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Aggregate Production Management 2002 Case Study Solution and Analysis


NASCAR (National Association for Stock Car Auto Racing) is a company carrying out series of Stock Car racing in United States and acting as a sanctioning body for driving the rules for Stock Automobile Racing. 2) Stock Cars And Truck Racing by NASCAR is the 2nd largest spectator sport, with greatest number of sponsors. 1) The other sources of revenue for Aggregate Production Management 2002 Case Study Analysis includes; 10% of the total earnings from tv rights, sanctioning charges i.e. $1-2 million per race, and licencing NASCAR brand name to companies.

NASCAR has a closed corporate culture with the non-interventionist approach. However this non collaborative approach brings tensions in the sport. The building of Vehicle of Tomorrow by Aggregate Production Management 2002 Case Study Help, with an objective of safety for the chauffeurs, brought numerous stress among the stakeholders of the sport.

The communication audit, conducted in 2010, exposed that despite the fact that the business highly depend on the communications in between its stakeholders, there was no identifiable company communication strategy. The industry's target customers, direction and objectives were all unidentified.

The audit explained various doing not have of NASCAR in terms of lack of internal integration, absence of fan management strategy and absence of social and digital media of marketing. The company has complex community with independent tracks, motorists and groups. This structure with closed corporate culture bring various difficulties in speeding up a modification. Other partners in community includes the media networks i.e. tv and radio, and business online marketers.

Aggregate Production Management 2002 Case Study Solution audiences was extremely devoted to the sport and the brands related to the NASCAR, making it appealing for sponsors and business online marketers.

Issue Statement.

The company is currently dealing with the problem of decreasing rates of attendance at racing tracks and rates of television viewers. This can put a significant influence on its incomes from sponsors, media rights, and from other sources of profits.

Situational Analysis.

The business was rather effective till 2005 with its traditional marketing methods, however quickly after 2005 the company starts facing various problems consisting of decline of its fan base. Several external along with internal elements are accountable for the decrease. Internal factors consist of; insufficient financial investment in social media and other digital medias of.

Fan base of NASCAR made up of married males with an average age of 47, which passes their fandom to their children and create generational commitment. Other obstacles for NASCAR includes the shift of its fans to other sports as they were improving their fan's experience enabling access to their broadcasts out of the homes through jumbo turns, Wi-Fi access, and so on.

SWOT Analysis.


In SWOT analysis, strengths specified as company's qualities which are different from its rivals. These are company's core competencies on which business efficiency or company success based upon. Aggregate Production Management 2002 Case Study Analysis core competencies includes it has rights of determining rules as approving body. Guidelines and regulations concerning expert stock car racing are determined by NASCAR like if any group with required abilities and resources can enter into races by following rules and policies dictated by NASCAR. NASCAR has monopoly it this aspect. Its strengths also includes that it has title of second biggest 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 around the globe with more than $56 million revenues. The main sources of their profits come from television rights, sanctioning charges, sponsorship and licensing. It has longest season of 10 months and having ownership of three national series i.e. Outdoor camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has also big resource of fans and corporate sponsors. All the occasions of NASCAR are sponsored by corporates due to the fact that of most significant brand name loyalty of fans toward brand names promoted by Aggregate Production Management 2002 Case Study Help. (See Appendix A).


Weaknesses of NASCAR includes its close culture which is non collective. Aggregate Production Management 2002 Case Study Solution establishes Car of Tomorrow without cooperation so result is that motorists did not like that principle. It was also discovered that NASCAR had no reliable strategy for organisation interaction.


Opportunities in SWOT analysis are external elements which can be beneficial to company or the external elements on which business is having competitive benefit. NASCAR typically utilized to count on traditional media sources like local newspaper for promotion of its sports. Generally these conventional media sources try to cover their house group and particular sort of events. NASCAR also familiarized from these standard media outlets that sport was tough to cover. Media landscape likewise altered from standard to digital landscape. Papers failed. NASCAR can work on its capabilities to get optimal possible benefits from this brand-new digital landscape. NASCAR have underinvestment in digital resources. So it can capitalize in social and digital media to get its benefits. Digital rights of NASCAR were likewise sold to Turner Sports. NASCAR utilized to make money check of around $15 million yearly from Turner Sports. There are variety of cons behind this deal. For instance Aggregate Production Management 2002 Case Study Help needed to get approval from Turner Sport if it wish to develop its Facebook page, twitter account or even mobile application. Turner Sport likewise had rights of every video which is shoot throughout race at track. Then they are needed to pay licensing fees to Turner Sport, if media sources like newspapers, publications and cable channels desire to publish videos of races on their respective pages. NASCAR can work on terms and conditions and attempt to negotiate with Turner Sports to get optimal advantages of it. Star power plays extremely essential role in producing profits from every sport. However it was noted that Aggregate Production Management 2002 Case Study Solution is lagging in this area i.e. star power. For example when sports fans were asked relating to popular celebs and stars then NASCAR motorist was not discovered even in top twenty responses. So NASCAR can put efforts in this location too for earnings generation. They must direct their chauffeurs that how they can end up being sport stars. 4 tactical focuses which are produced by research study team can likewise be worked as opportunity for NESCAR. These four strategic focuses compares and analysis Aggregate Production Management 2002 Case Study Analysis strategies.


Economic down turn was experienced in late 2000 which can be danger for NASCAR since if there is financial down turn then individuals would be having less return on financial investment. Economic down turn also results in increase fuel rates which likewise impacted NASCAR. Now if NASCAR make substantial financial investments in brand-new segments which are based on new customers then it may deal with unfavorable remarks from its core fan base.

Porter's Five Forces Analysis

It is essential to understand industry in which business is working because NASCAR's bottom line i.e. net earnings is heavily depends on this. There are 5 forces that are utilized to recognize profitability, intensity and appearance of NASCAR business.

Competitive Rivalry

These chauffeurs can go against NASCAR if they got much better opportunity in terms of rewards and television direct exposure. If audiences take pleasure in other race vehicles and drivers more than NASCAR then audiences can move to those other intriguing automobiles and drivers. NASCAR could be having danger from its two direct competitors that is Formula 1 and Moto GP.

Supplier Power

The provider power indicates the variety of providers are available in market and what is the expense related to supplier if business shifts from one provider to another. In this industry there is supply monopoly because motorists with needed skills and resources are restricted.

Purchaser Power

This force is concerning to consumers that is it easy for clients to shift to other products. Then consumers are less most likely to switch, if there is more changing expense is associated. In the case of NASCAR customers are its viewers. Viewers can change to other rivals easily because audiences will having low switching expense.

Danger of Replacement

Replacements are referred as options. The substitutes in this case can be other home entertainment suggests like audiences can move to other sports. There are broad variety of replacements are offered in this circumstance which recommends that risk of substitute is high.

Threat of New Entry

It is defined as how it is easy for any business to go into in that specific industry. When it comes to Aggregate Production Management 2002 Case Study Analysis risk of brand-new entry is low. If any company needs to enter in this service than they have to make heavy investments, because. They require to build vehicles and racing tracks and also needs to pay substantial total up to drivers for changing.

PESTEL Analysis


As NASCAR is working in various markets so it needs to deal with different guidelines. It is likewise noted that NASCAR has faced increased examination relating to regulatory. Every federal government has different concern so NASCAR has to be prepared for it as concern can be moved to other sector.


Financial aspects includes taxation rate, exchange rate, economic performance of that specific business, conditions of labour market, inflation rate and so on. Fortunes of the NASCAR and its competitors can be impacted if there is federal government intervention in the marketing and sales sector. NASCAR can utilize abilities of staff members to develop new opportunities and improve existing chances.


Every society is different from each other. Each has various social worths and standards. It helps in understanding regarding society and choice of consumers. Social factors consists of customs, culture, mindsets towards specific product and services, demographics, norms, interests etc. It can be concluded that advertising through other methods rather than standard (i.e. paper) can be chosen in this society.


In this case of NASCAR it can be kept in mind that companies are heavily investing for research and development. NASCAR ought to likewise work on its media rights policy with Turner Broadcasting System.


Because every nation has various legal terms and conditions, Legal plays an important function in every country. Aggregate Production Management 2002 Case Study Help needs to be ensure that they secure their legal rights in every county so any company does not harm to its legal rights.


Environmental factors are also important for every business. NASCAR needs to make sure that its cars are not producing contamination more than appropriate level.

7 P's of Marketing


The items of Aggregate Production Management 2002 Case Study Solution in its product portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, sanctioning rules for races and ad-space to corporate marketers during broadcast of NASCAR races. (Hanlon, 2018).


Pricing technique of NASCAR for its race occasions tickets is based upon the location and value of the racing occasions. Along with race occasions tickets, NASCAR also charge various service fees to its stakeholders and makes revenue. For example it charged sanctioning costs of $1-2 million per race typically in 2005.


Advertising strategy of Aggregate Production Management 2002 Case Study Solution is extremely based upon its fan base. A strong fan base share its fandom with others and increase the number of audiences for NASCAR races. The company is not completely relied upon its fan base for its promotion and promote through regional radio stations too. The company has likewise adopted the merchandising media of promotion, in which the company sells merchandises with its logo design.


NASCAR have its racing tracks in numerous cities in United States. The most crucial tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Car Club Speedway in California and Darlington Raceway in South Carolina. It tries to conduct its races in the majority of the cities in United States to comprehend across the country popularity.


Nestle individuals technique is comprised of providing much better experience to its audiences, its fan base and to all of its stakeholders. People are an important aspect of Aggregate Production Management 2002 Case Study Analysis A marketing method as its occasions are the source of entertainment for crowd. Its individuals strategy consists of efforts to supply better experience to its Fans, Race Drivers, Crew, Occasion Organizers etc., all of which come under individuals technique of NASCAR.


Numerous service processes are needed to conduct racing events in an efficient way. These processes consist of; appropriate schedule of time, plan for viewers, offering tickets, plan of area for sponsors, handling logistics etc. These all procedures contribute I developing NASCAR image, improving viewers experience and increasing fan base.

Physical Proof.

Essential physical evidences for the NASCAR includes the existence of its racing tracks, stock automobiles and racing events. In addition to it, its retailing brand names including tee shirts, caps, goodies etc., likewise serve as a physical evidence for NASCAR.

Product Life Cycle Assessment.

The racing events by NASCAR was presented on June 19, 1949. At the first phase competitors for NASCAR was low, as the rivals drove the vehicles similar to the automobiles driven by normal individuals.


After performing its first race successfully the company moved towards developing its own tracks. The first Aggregate Production Management 2002 Case Study Solution based track, namely the Darlington Raceway track, was initiated 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 development of racing tracks the company moved towards broadcasting its races on tv in 1979. The very first event transmitted on television was flag-to-flag coverage of Daytona.

In 1972, William France Jr., became the president of NASCAR and n about 3 decades, he changed NASCAR from a regional Sport popular organization into one with global fan base. He initiated a brand-new age of financially rewarding sponsorships and television agreements for NASCAR.


The maturity period for NASCAR began with the efforts of William France Jr., with the business having large range of profits sources. The company has about 500 sponsors with broadcasting its events in about 150 nations. The company has a great deal of tracks in the majority of the cities of United States.


The major causes of decline include the monetary crisis of 2008, which increased the expense of getting here at tracks for audiences due to increasing fuel prices, and the moving of its fan base towards other sports.

Market Division.

The marketplace segmentation of Aggregate Production Management 2002 Case Study Help can be divided into four sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).


The geographical division of Aggregate Production Management 2002 Case Analysis is based upon the geographical existence of its tracks in numerous states and cities in United States, and the tv broadcasting of its occasions in numerous nations. The company has 23 tracks in about 20 states of America and has tv broadcast through various Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This vast geographical division supplies the company regional as well as international fan base.


The group division of Aggregate Production Management 2002 Case Study Solution is likewise highlydiverse based upon the gender, income and age of the customer. To increase the market segment of its market NASCAR ought to revise its marketing strategies to draw in more age groups and lower its prices to go into in the market segment with a low average income.


NASCAR has a fan base with a loyalty. NASCAR fans perceive it compulsive to purchase tickets and see the races as soon as in a week. NASCAR has actually attempted to increase the quality of its racing by introducing stage racing, they likewise have actually attempted to lower prices and make the event more practical by presenting live racing.


Behavioural segmentation of NASCAR is based upon the behaviour of fans in terms of enjoying the race live on the television or by going in the events. Currently, the fans choice is towards watching the race at home on tv rather than going, as the consumer experience at NASCAR tracks is not beneficial as well as expensive.

Target audience.


One of the potential target market of NASCAR was Hispanics; the young and growing population of United States. The market segment has terrific prospective for NASCAR as the population was growing at a higher rate and it was expected to end up being thrice after forty years and the segment has increasing wealth rate with about $1 trillion of wealth in 2014.


Kids are likewise one of the potential target market segment for NASCAR, as they are more linked socially than other groups. Vehicle racing games established by Aggregate Production Management 2002 Case Study Analysis can be a potential source of gaining attention of kids towards NASCAR track racing. NASCAR requires more attention towards personalizing and improving its digital functions to draw in the kids target market.

Generation Y.
Generation Y target audience consists of those who spent five times more resources on discretionary expenditures i.e. acquiring tickets for racing occasions, than others. This huge expense makes the section capacity for NASCAR marketing technique of increasing its fan base. The marketplace section is also easy to technique as 81% of the Y Generation consumer utilizes Facebook every day and the usage is two times of using television and radio. The market sector views sports as a social occasion, rather than adherence to sport. The market section thinks about NASCAR as a company lacking in producing a multiculturalism atmosphere. Aggregate Production Management 2002 Case Study Analysis ought to take different steps to enhance the experience of Generation Y customers in its occasions.

5 C's of Marketing

5 C's of marketing assists in taking choices concerning marketing. These 5 C's needs to be analysed correctly for taking any marketing decision. These 5 C's mean Environment, Company, Collaborators, Competitors and clients.


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


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


Collaborations consists of distributors, suppliers and alliances of Aggregate Production Management 2002 Case Study Solution. It is teamed up with different racing teams which are participating in racing. It also collaborated with Turners Sport for digital rights. NASCAR used to earn money check of around $15 million annually from Turner Sports. There are number of cons behind this deal. For instance NASCAR needed to get approval from Turner Sport if it want to develop its Facebook page, twitter account and even mobile application. Turner Sport likewise had rights of every single video which is shoot throughout race at track.


The client of Aggregate Production Management 2002 Case Study Analysis are its audiences. They target consumers with having age of 15-60 years. 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.


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

Marketing Methods.

1. Developing and Maintaining Facebook Page.
Among the prospective target markets sectors for NASCAR is Hispanics which is the growing population sector of U.S.A. however sadly NASCAR had been unable to draw in the this targeted sector. In order to draw in the young growing generation the NASCAR need to market by using social networks like Facebook. It needs to develop a Facebook page consisting of the info regarding the races and the locations of tracks to make the consumer helpful about the core operations of Aggregate Production Management 2002 Case Study Help. It must also update its Facebook page on daily basis to supply details about its approaching events. This would make the target audience segment more informative about business and would lead to bring in big fans base.
2. Establishing and Upgrading Accounts of Key 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 major factor behind it is that, the racers mainly play in teams and are not able to build an essential account and preserve a close contact with fans. The poor contacts with fans result in less destination of audiences towards the racers and a low star power. Star power is a crucial aspect for bring in viewers towards tracks and towards tv. The star power for the motorists at NASCARA might be enhanced by creating and upgrading accounts of crucial motorists by NASCARA itself. This would remove the requirement of requiring drivers to preserve their accounts and would result in increasing fans attention towards NASCARA drivers.
3. Establishing New Games and enhancing existing video games for kids.
In order to attract these kids, NASCARA should enhance its current racing video games by presenting customization in the vehicles i.e. changing colours, selection of speed, introducing group racing in the video game, utilizing better graphics related to the racing tracks and introducing various levels in the game. All these modifications in the existing game would supply better experience to kids.
Along with it, NASCAR must also develop new video games associated with racing like kids racing with kids characters as chauffeurs, cartoon racing with racing in between various cartoon characters with an option of selecting the favourite cartoon character for the kids. These methods would make it possible for the business to draw in among its potential target sections.
4. Introducing multiculturalism at occasions.
Aggregate Production Management 2002 Case Study Solution occasions are comprised of fans with very couple of multiculturalism, due to cost of arrival in events, making it unattractive for the clients viewing sport events as get-togethers i.e. Generation Y clients. As the Generation Y customers are a potential target audience for NASCAR, for that reason the company needs to take certain steps to attract this potential target audience. It must embrace strategies to bring in the consumers far from the tracks location with various culture. The technique to do so could be providing special discounts on tickets or complimentary tickets to viewers originating from a particular range 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.
Aggregate Production Management 2002 Case Study Help needs to deal with facilities and amenities at tracks due to the fact that on the race day audiences got dissatisfied. Since in very same industry other business are supplying better services than NASCAR, audiences have many expectations from Aggregate Production Management 2002 Case Study Analysis. Then its fans might shifted to its rivals, if NASCAR do not work on this issue. According to fans there were not adequate centers were offered as compare to other sports companies. So NASCAR ought to make sure that it offer sufficient facilities that includes cleaned toilets, comfortable seating arrangement. They should also supply WIFI services and accessibility of credit cards throughout that track. It needs to be likewise ensure that there are enough jumbo turns put at all needed locations. There need to be likewise food stalls that offer quality food to viewers. In this method viewers will be having pleasant experience at the day of occasion. (See Appendix B).
Marketing Budget plan.
Marketing budget plan made on the basis of the above techniques for the period of 5 years from 2011 to 2015, reveals the cost related data for the marketing techniques. (See Appendix B). It can be seen that technique 5 of enhancing client experience at tracks would need greatest preliminary investment and cost and method 4 of presenting multiculturalism will need least expensive preliminary investment with least expensive further per year cost. The company should prioritize the resource allotment on these strategies on the basis of its offered resources and the possible benefits which the strategy would offer.
NOTE: The worths about cost are assumed on rational basis due the lack of truths and figures associated with cost in the case study. Inflation rate of United States is assumed to be 10%.


On the basis of deep analysis of the external and internal aspects of Aggregate Production Management 2002 Case Study Solution causing the decrease of tv viewership rate and presence rate at tracks, the above marketing techniques are advised to NASCAR to increase its fan base in long run. These strategies would cope with internal elements like bad customer experience at tracks, inadequate social media marketing, incapable digital medias like games, absence of culturalisms at tracks and so on, along with with external elements like shifting of fans towards other sports, demographical changes in America and altering domesticity styles.

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