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An Introduction To Business To Business Exchanges Case Study Solution & Analysis


Introduction

An Introduction To Business To Business Exchanges Case Study Solution (National Association for Stock Cars And Truck Vehicle Racing) is a company carrying out series of Stock Vehicle racing in United States and functioning as a sanctioning body for driving the guidelines for Stock Vehicle Racing. The organization was established in 1947, by "Big Costs" France. NASCAR set up Stock Car Racing events in United States with the existence of about 130000 viewers typically in 2005. It also broadcast its occasions in about 150 countries. Stock Cars And Truck Racing by NASCAR is the second largest viewer sport, with greatest variety of sponsors. It has about 500 sponsors contributing billions of dollars in its profits. The other sources of earnings for An Introduction To Business To Business Exchanges Case Study Help includes; 10% of the total income from tv rights, sanctioning fees i.e. $1-2 million per race, and licencing NASCAR brand name to business.

NASCAR has a closed business culture with the non-interventionist approach. This non collective approach brings tensions in the sport. The structure of Cars and truck of Tomorrow by An Introduction To Business To Business Exchanges Case Study Analysis, with an intention of security for the motorists, brought various tensions among the stakeholders of the sport.

The communication audit, performed in 2010, revealed that in spite of the fact that the company extremely rely on the communications in between its stakeholders, there was no identifiable service communication method. (

The audit explained numerous doing not have of NASCAR in terms of absence of internal combination, absence of fan management technique and absence of social and digital media of marketing. The business has intricate environment with independent tracks, teams and drivers. This structure with closed business culture bring numerous obstacles in accelerating a modification. Other partners in community consists of the media networks i.e. tv and radio, and business marketers.

An Introduction To Business To Business Exchanges Case Study Analysis viewers was highly devoted to the sport and the brand names related to the NASCAR, making it appealing for sponsors and business marketers.

Issue Declaration.

The company is currently facing the issue of declining rates of attendance at racing tracks and rates of tv viewers. This can put a substantial influence on its profits from sponsors, media rights, and from other sources of revenue.

Situational Analysis.

Although the business was quite effective till 2005 with its standard marketing techniques, but right after 2005 the company starts dealing with different problems including decline of its fan base. Numerous external as well as internal factors are responsible for the decline. 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 challenges for NASCAR consists of the shift of its fans to other sports as they were enhancing their fan's experience allowing access to their broadcasts out of the houses through jumbo turns, Wi-Fi access, and so on.

SWOT Analysis.

Strengths.


In SWOT analysis, strengths specified as business's qualities which are various from its rivals. These are company's core proficiencies on which business efficiency or company success based upon. An Introduction To Business To Business Exchanges Case Study Analysis core competencies includes it has rights of determining rules as approving body. Rules and guidelines concerning professional stock automobile racing are dictated by NASCAR like if any team with needed abilities and resources can enter into races by following rules and regulations determined by NASCAR. So NASCAR has monopoly it this aspect. Its strengths also consists of that it has title of second largest viewer sport in the United States with having more fortune 500 sponsors based in US. Its races were used to transmit in more than 150 countries around the globe with more than $56 million incomes. The primary sources of their revenues come from television rights, approving fees, sponsorship and licensing. It has longest season of 10 months and having ownership of 3 national series i.e. Camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has also big resource of fans and business sponsors. All the occasions of NASCAR are sponsored by corporates due to the fact that of greatest brand loyalty of fans toward brand names advertised by An Introduction To Business To Business Exchanges Case Study Help. (See Appendix A).

Weaknesses.

Weaknesses in SWOT Analysis are thought about as external factors. Weaknesses consists of the aspects that stops company to carry out at needed level of effectiveness. Weak points of NASCAR includes its close culture which is non collaborative. They have non-interventionist technique. They typically used to form rules and other needed processes without intervention of others which leads to poor collaboration. NASCAR develops Vehicle of Tomorrow without collaboration so result is that chauffeurs did not like that principle. As this is racing sport so covering of sports by media is also hard. It was likewise found that NASCAR had no reliable method for business communication. They do not know how to deal with problem if it happened off track. Ineffective organisation communication leads to that they don't have clear direction for their long term goals. They do not understand that where they want to see this sport in future.

Opportunities.

Opportunities in SWOT analysis are external aspects which can be beneficial to company or the external aspects on which business is having competitive advantage. NASCAR generally used to rely on standard media sources like local paper for publicity of its sports. Usually these standard media sources try to cover their home team and certain kind of occasions. NASCAR likewise came to know from these standard media outlets that sport was challenging to cover. Media landscape likewise changed from standard to digital landscape. Newspapers failed. NASCAR can work on its capabilities to get optimal possible benefits from this brand-new digital landscape. NASCAR have underinvestment in digital resources. It can capitalize in social and digital media to get its advantages. Digital rights of NASCAR were likewise offered to Turner Sports. NASCAR utilized to make money check of around $15 million each year from Turner Sports. There are number of cons behind this deal. For instance An Introduction To Business To Business Exchanges Case Study Help needed to get approval from Turner Sport if it want to create its Facebook page, twitter account or perhaps mobile application. Turner Sport likewise had rights of every video which is shoot throughout race at track. If media sources like papers, magazines and cable channels want to post videos of races on their particular pages then they are needed to pay licensing charges to Turner Sport. NASCAR can work on terms and conditions and attempt to work out with Turner Sports to get maximum benefits of it. Star power plays very essential role in creating earnings from every sport. However it was kept in mind that An Introduction To Business To Business Exchanges Case Study Analysis is lagging in this area i.e. star power. When sports fans were asked regarding popular celebs and stars then NASCAR driver was not found even in leading twenty reactions. So NASCAR can put efforts in this location too for revenue generation. They need to assist their drivers that how they can become sport stars. Four tactical focuses which are generated by research team can also be acted as opportunity for NESCAR. These 4 tactical focuses compares and analysis An Introduction To Business To Business Exchanges Case Study Help methods.

Dangers

Threats in SWOT analysis are specified as external elements that can danger to company's success. Economic down turn was experienced in late 2000 which can be threat for NASCAR since if there is economic down turn then people would be having less roi. Earning of people would be effected and they would be more mindful in spending their money. Economic down turn likewise leads to boost fuel costs which likewise impacted NASCAR. Since fans of NASCAR utilized to attend its event from long distances. NESCAR had a rule of 65/25/10 for profits circulation. 65 percent profits from media rights would be dispersed to race tracks, 25 percent revenue would be dispersed to competing group and staying 10 percent would be retained by NESCAR which is sanctioning body. Completing team wanted to increase their part of earnings from 25 percent due to the fact that of boost in operating expense of a race team and likewise there is decline in the variety of full-season sponsorship. NESCAR likewise faces threats from other sponsors because they are making huge financial investments to improve experience of fans. For example which includes updating existing avenues, building brand-new opportunities, offering Wi-Fi center and likewise offering other interactive mediums to engage sports on mobile phones. Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their youngsters and create generational loyalty. So the obstacle is that the family system in America was altering resulting in reduction of impact of married male fan base over their youngsters. Along with it perceptions about automobile was likewise changing with viewing cars and truck a lorry to reach at point B from point A, instead of as a fun project. If NASCAR make considerable investments in new sectors which are based on brand-new clients then it may face unfavorable remarks from its core fan base, now.

Porter's Five Forces Analysis

It is crucial to comprehend industry in which business is working since NASCAR's bottom line i.e. net profit is greatly depends on this. There are 5 forces that are utilized to recognize success, strength and attractiveness of NASCAR business.

Competitive Rivalry

These motorists can go against NASCAR if they got better opportunity in terms of prizes and tv exposure. If audiences delight in other race cars and trucks and motorists more than NASCAR then audiences can shift to those other intriguing cars and trucks and motorists. NASCAR could be having danger from its two direct rivals that is Formula 1 and Moto GP.

Provider Power

If company shifts from one provider to another, the provider power indicates the number of suppliers are available in industry and what is the expense associated with provider. In this industry there is supply monopoly due to the fact that chauffeurs with required resources and abilities are restricted.

Buyer Power

In the case of NASCAR consumers are its audiences. Viewers can change to other competitors quickly due to the fact that audiences will having low switching cost.

Risk of Substitution

Replacements are referred as options. The substitutes in this case can be other home entertainment implies like audiences can shift to other sports. So there are wide range of alternatives are readily available in this scenario which recommends that risk of substitute is high.

Danger of New Entry

It is specified as how it is easy for any business to go into in that particular market. In the case of An Introduction To Business To Business Exchanges Case Study Solution risk of new entry is low. Since if any company needs to enter in this company than they need to make heavy investments. They need to develop vehicles and racing tracks and likewise requires to pay substantial amount to chauffeurs for changing.

PESTEL Analysis

Political


As NASCAR is working in various markets so it needs to deal with various guidelines. It is likewise kept in mind that NASCAR has dealt with increased scrutiny concerning regulative. Every federal government has various concern so NASCAR has to be prepared for it as priority can be shifted to other sector.

Cost-effective

Financial elements consists of taxation rate, currency exchange rate, financial performance of that particular business, conditions of labour market, inflation rate etc. If there is federal government intervention in the marketing and sales sector, fortunes of the NASCAR and its competitors can be affected. NASCAR can utilize abilities of workers to create new chances and enhance existing chances.

Social

Each has various social worths and standards. It helps in comprehending relating to society and preference of consumers.

Technical

In this case of NASCAR it can be kept in mind that companies are heavily spending for research study and advancement. NASCAR needs to also work on its media rights policy with Turner Broadcasting System.

Legal

Because every nation has different legal terms and conditions, Legal plays an essential role in every nation. An Introduction To Business To Business Exchanges Case Study Solution requires to be ensure that they secure their legal rights in every county so any company does not harm to its legal rights.

Environmental

Ecological elements are likewise important for every service. Due to the fact that normally governments do not allow those organisation which can harm to environment. These ecological aspects consists of laws regarding pollution, environment modification, safe garbage disposal, policies relating to insurance and so on. NASCAR needs to ensure that its automobiles are not producing contamination more than acceptable level.

7 P's of Marketing

Item

The items of An Introduction To Business To Business Exchanges Case Study Help in its item portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, approving rules for races and ad-space to business marketers during broadcast of NASCAR races. (Hanlon, 2018).

Cost.

Prices method of NASCAR for its race occasions tickets is based upon the venue and importance of the racing events. Along with race events tickets, NASCAR also charge various service fees to its stakeholders and earns profits. It charged approving fees of $1-2 million per race on average in 2005.

Promotion.

Promotional strategy of An Introduction To Business To Business Exchanges Case Study Analysis is extremely based upon its fan base. A strong fan base share its fandom with others and increase the variety of viewers for NASCAR races. The business is not entirely relied upon its fan base for its promo and promote through local radio stations too. The business has actually likewise embraced the merchandising media of promotion, in which the company sells merchandises with its logo design.

Place.

NASCAR have its racing tracks in different cities in United States. The most important tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Car Club Speedway in California and Darlington Raceway in South Carolina. It tries to perform its races in most of the cities in United States to understand nationwide popularity.

Individuals.

Nestle people strategy is consisted of offering much better experience to its viewers, its fan base and to all of its stakeholders. Individuals are a crucial element of An Introduction To Business To Business Exchanges Case Study Analysis A marketing strategy as its events are the source of entertainment for crowd. Its people method consists of efforts to provide much better experience to its Fans, Race Drivers, Team, Event Organizers and so on, all of which come under individuals technique of NASCAR.

Processes.

A number of service processes are needed to conduct racing events in an effective method. These processes include; appropriate schedule of time, arrangement for viewers, selling tickets, arrangement of area for sponsors, handling logistics etc. These all processes contribute I building NASCAR image, improving spectators experience and increasing fan base.

Physical Evidence.

Crucial physical evidences for the NASCAR consists of the presence of its racing tracks, stock cars and trucks and racing occasions. Along with it, its retailing brand names including t-shirts, caps, goodies and so on, likewise function as a physical evidence for NASCAR.

Product Life Cycle Evaluation.

The racing occasions by NASCAR was introduced on June 19, 1949. At the first phase competitors for NASCAR was low, as the competitors drove the automobiles similar to the cars driven by normal people.

Growth.

The very first NASCAR based track, particularly the Darlington Raceway track, was initiated in 1950 in South Carolina. After the growth of racing tracks the company moved towards transmitting its races on tv in 1979.

In 1972, William France Jr., became the president of NASCAR and n about 3 decades, he changed NASCAR from a regional Sport popular company into one with global fan base. He initiated a new era of lucrative sponsorships and television contracts for NASCAR.

Maturity.

The maturity duration for NASCAR started with the efforts of William France Jr., with the company having vast array of earnings sources. The business has about 500 sponsors with transmitting its occasions in about 150 countries. The company has large number of tracks in most of the cities of United States.

Decrease.

The decline in the business's offerings started after 2005 with typical participation rate per race decreased by 22% from 2005 to 2010 and television viewership rate decreased by 30% from 2005 to 2010. The major causes of decline consist of the monetary crisis of 2008, which increased the cost of coming to tracks for audiences due to increasing fuel rates, and the moving of its fan base towards other sports.

Market Division.

The market segmentation of An Introduction To Business To Business Exchanges Case Study Help can be divided into 4 sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).

Geographical.

The geographical segmentation of An Introduction To Business To Business Exchanges Case Analysis is based upon the geographical presence of its tracks in various 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 huge geographical division offers the company regional in addition to international fan base.

Group.

The group division of NASCAR is likewise highlydiverse based upon the gender, earnings and age of the customer. Its current fan base is majorly comprised of male married fans with a typical age of 47 years and an income around $30-50 thousands. Nevertheless presently NASCAR is trying to increase its target audience to the young growing population and kinds as well. To increase the market segment of its market NASCAR must revise its marketing strategies to attract more age groups and lower its rates to enter in the market segment with a low average income.( htt1).

Psychographic.

The psychological characteristics of most of the fans are rather similar. NASCAR has a fan base with a loyalty. NASCAR fans view it compulsive to acquire tickets and see the races as soon as in a week. 71% of them choose to buy products with a NASCAR brand. They are quite extrovert and want to mingle with other fans while racing. They want quality racing with low cost at practical location. Although An Introduction To Business To Business Exchanges Case Study Analysis has attempted to increase the quality of its racing by presenting phase racing, they likewise have attempted to lower prices and make the occasion easier by presenting live racing.

Behavioural.

Behavioural division of NASCAR is based upon the behaviour of fans in terms of seeing the race live on the tv or by going in the occasions. Presently, the fans preference is towards enjoying the race at home on television rather than going, as the client experience at NASCAR tracks is not favourable as well as pricey.

Target Market.

Hispanics.

One of the prospective target audience of An Introduction To Business To Business Exchanges Case Study Analysis was Hispanics; the young and growing population of United States. The market sector has great prospective for NASCAR as the population was growing at a higher rate and it was anticipated to become thrice after forty years and the section has increasing wealth rate with about $1 trillion of wealth in 2014. The section shows affinity with car culture, however require a more focused marketing towards inviting the section towards racing.

Kids.

Kids are also one of the possible target market segment for NASCAR, as they are more connected socially than other groups. Automobile racing video games developed by An Introduction To Business To Business Exchanges Case Study Solution can be a potential source of getting attention of kids towards NASCAR track racing. NASCAR needs more attention towards personalizing and improving its digital functions to bring in the kids target market.

Generation Y.
Generation Y target audience includes those who spent five times more resources on discretionary expenses i.e. buying tickets for racing events, than others. This big expense makes the section capacity for NASCAR marketing strategy of increasing its fan base. The market section is likewise simple to method as 81% of the Y Generation consumer utilizes Facebook every day and the use is twice of using tv and radio. The marketplace segment views sports as an affair, rather than adherence to sport. The marketplace section thinks about NASCAR as a company doing not have in creating a multiculturalism atmosphere. An Introduction To Business To Business Exchanges Case Study Solution needs to take different steps to enhance the experience of Generation Y consumers in its occasions.

5 C's of Marketing

5 C's of marketing assists in taking choices concerning marketing. These 5 C's requirements to be evaluated appropriately for taking any marketing decision. These 5 C's stands for Environment, Company, Collaborators, Competitors and clients.

Climate/Context.

It needs to make PESTLE analysis in order to comprehend climate or context in which NASCAR is working. PESTLE represents political, financial, social, technical, legal and ecological and is mentioned above.

Business.

An Introduction To Business To Business Exchanges Case Study Analysis is an automobile racing company with having USP of high quality vehicle racing with an international structure. Its sector is sports team and events.

Cooperations.

Collaborations consists of suppliers, suppliers and alliances of An Introduction To Business To Business Exchanges Case Study Solution. It is teamed up with various racing teams which are taking part in racing. It also worked together with Turners Sport for digital rights. NASCAR used to make money check of around $15 million annually from Turner Sports. There are variety of cons behind this offer. NASCAR had to get approval from Turner Sport if it want to create its Facebook page, twitter account or even mobile application. Turner Sport likewise had rights of each and every single video which is shoot during race at track.

Customers.

The customer of An Introduction To Business To Business Exchanges Case Study Solution are its audiences. They target customers 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 create generational commitment.

Rivals.

Teams generally represents sponsors in NASCAR and the medium of advertising is motorists. These chauffeurs can go versus NASCAR if they got much better chance in terms of rewards and television direct exposure.

Marketing Methods.

1. Developing and Maintaining Facebook Page.
One of the possible target markets sections for NASCAR is Hispanics which is the growing population segment of U.S.A. however unfortunately NASCAR had been unable to bring in the this targeted segment. It ought to develop a Facebook page consisting of the info regarding the races and the areas of tracks to make the consumer informative about the core operations of NASCAR.
2. Establishing and Upgrading Accounts of Secret Drivers.
An Introduction To Business To Business Exchanges Case Study Help drivers has a low star power as compare to gamers of other sports. The poor contacts with fans result in less tourist attraction of audiences towards the racers and a low star power. Star power is a crucial aspect for drawing in viewers towards tracks and towards television.
3. Establishing New Games and improving existing games for kids.
In order to attract these kids, NASCARA ought to enhance its current racing games by presenting personalization in the cars and trucks i.e. altering colours, selection of speed, presenting group racing in the game, using better graphics related to the racing tracks and introducing various levels in the video game. All these adjustments in the present video game would supply better experience to kids.
Along with it, NASCAR should likewise develop brand-new games connected to racing like kids racing with kids characters as chauffeurs, animation racing with racing in between various cartoon characters with an option of picking the preferred animation character for the kids. These methods would allow the business to draw in among its possible target sectors.
4. Presenting multiculturalism at events.
NASCAR events are comprised of fans with very few cultural variety, due to expense of arrival in occasions, making it unsightly for the clients viewing sport events as social events i.e. Generation Y customers. As the Generation Y customers are a potential target market for NASCAR, for that reason the business should take particular steps to attract this prospective target market.
5. Improving Customer Experience at Tracks.
NASCAR ought to work on facilities and features at tracks due to the fact that on the race day audiences got disappointed. Viewers have numerous expectations from An Introduction To Business To Business Exchanges Case Study Solution due to the fact that in very same market other business are offering much better services than NASCAR. IF NASCAR do not work on this problem then its fans might moved to its competitors.
Marketing Spending plan.
Marketing budget made on the basis of the above methods for the period of 5 years from 2011 to 2015, reveals the cost related information for the marketing strategies. It can be seen that method 5 of enhancing client experience at tracks would need greatest preliminary financial investment and cost and method 4 of introducing multiculturalism will require most affordable preliminary investment with most affordable further per year expense.
NOTE: The values about expense are presumed on reasonable basis due the lack of figures and facts connected to cost in the case research study. Inflation rate of United States is presumed to be 10%.

Suggestions.

On the basis of deep analysis of the external and internal factors of An Introduction To Business To Business Exchanges Case Study Solution causing the decrease of television viewership rate and presence rate at tracks, the above marketing methods are suggested to NASCAR to increase its fan base in long run. These techniques would cope with internal elements like poor consumer experience at tracks, inadequate social networks marketing, incapable digital medias like games, lack of culturalisms at tracks etc., as well as with external aspects like shifting of fans towards other sports, demographical modifications in America and altering family life designs.

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