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Merck Latin America D Mexico Case Study Solution and Analysis


Introduction

NASCAR (National Association for Stock Automobile Automobile Racing) is an organization conducting series of Stock Automobile racing in United States and acting as a sanctioning body for driving the rules for Stock Cars and truck Racing. 2) Stock Vehicle Racing by NASCAR is the second biggest viewer sport, with greatest number of sponsors. 1) The other sources of earnings for Merck Latin America D Mexico Case Study Analysis consists of; 10% of the total earnings from tv rights, approving costs i.e. $1-2 million per race, and licencing NASCAR brand to companies.

NASCAR has a closed business culture with the non-interventionist technique. The building of Automobile of Tomorrow by NASCAR, with an intention of safety for the drivers, brought numerous tensions among the stakeholders of the sport.

The interaction audit, conducted in 2010, exposed that despite the truth that the company extremely rely on the interactions in between its stakeholders, there was no identifiable service interaction technique. (

The audit explained numerous doing not have of NASCAR in terms of lack of internal integration, absence of fan management technique and absence of social and digital media of marketing. The business has intricate ecosystem with independent tracks, teams and motorists. This structure with closed corporate culture bring various obstacles in speeding up a change. Other partners in environment includes the media networks i.e. television and radio, and corporate marketers.

Merck Latin America D Mexico Case Study Solution viewers was extremely loyal to the sport and the brand names connected with the NASCAR, making it appealing for sponsors and business marketers.

Issue Statement.

The company is presently dealing with the issue of declining rates of presence at racing tracks and rates of television viewers. This can put a substantial effect on its incomes from sponsors, media rights, and from other sources of income.

Situational Analysis.

Although the business was quite successful till 2005 with its standard marketing techniques, but not long after 2005 the business starts facing different issues including decline of its fan base. Numerous external as well as internal elements are accountable for the decline. Internal elements consist of; inadequate financial investment in social networks and other digital medias of.

Fan base of NASCAR consisted of married males with a typical age of 47, which passes their fandom to their children and develop generational loyalty. However the household system in America was altering leading to decrease of influence of married male fan base over their youngsters. Together with it perceptions about car was also changing with viewing car a vehicle to reach at point B from point A, rather than as a fun task. Other challenges for Merck Latin America D Mexico Case Study Analysis consists of the shift of its fans to other sports as they were improving their fan's experience permitting access to their broadcasts out of the houses through jumbo turns, Wi-Fi gain access to, and so on. These all obstacles were tending the business to revise its marketing methods.

SWOT Analysis.

Strengths.


In SWOT analysis, strengths specified as business's qualities which are various from its competitors. These are company's core proficiencies on which company performance or company success based on. Merck Latin America D Mexico Case Study Analysis core competencies includes it has rights of dictating guidelines as approving body. Policies and rules relating to professional stock vehicle racing are dictated by NASCAR like if any team with required skills and resources can enter into races by following rules and policies dictated by NASCAR. NASCAR has monopoly it this aspect. Its strengths likewise consists of that it has title of second biggest spectator sport in the United States with having more fortune 500 sponsors based in United States. Its races were used to broadcast in more than 150 countries around the globe with more than $56 million earnings. The primary sources of their revenues originate from television rights, sanctioning fees, sponsorship and licensing. It has longest season of 10 months and having ownership of three nationwide series i.e. Outdoor camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has also large resource of fans and business sponsors. Since of most significant brand loyalty of fans toward brand names marketed by NASCAR, all the events of NASCAR are sponsored by corporates. (See Appendix A).

Weaknesses.

Weaknesses in SWOT Analysis are thought about as external aspects. Weak points includes the factors that stops company to perform at needed level of efficiency. Weak points of NASCAR includes its close culture which is non collaborative. They have non-interventionist technique. They usually used to form guidelines and other needed processes without intervention of others which leads to poor partnership. For example NASCAR develops Vehicle of Tomorrow without partnership so result is that chauffeurs did not like that concept. As this is racing sport so covering of sports by media is likewise challenging. It was also discovered that NASCAR had no reliable method for company communication. If it occurred off track, they do not know how to manage issue. Inefficient organisation communication leads to that they do not have clear direction for their long term objectives. They do not know 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 elements on which company is having competitive benefit. NASCAR normally used to depend on traditional media sources like regional newspaper for promotion of its sports. Normally these conventional media sources attempt to cover their home team and certain sort of events. NASCAR also came to know from these conventional media outlets that sport was tough to cover. Media landscape likewise altered from conventional to digital landscape. Papers went out of business. NASCAR can deal with its abilities to get optimal possible benefits from this new digital landscape. NASCAR have underinvestment in digital resources. So it can capitalize in digital and social media to get its advantages. Digital rights of NASCAR were likewise sold to Turner Sports. NASCAR utilized to make money check of around $15 million each year from Turner Sports. There are variety of cons behind this deal. NASCAR had to get approval from Turner Sport if it want to produce 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. Then they are needed to pay licensing charges to Turner Sport, if media sources like newspapers, magazines and cable television channels want to post videos of races on their respective pages. So NASCAR can work on terms and conditions and try to work out with Turner Sports to get optimal advantages of it. Star power plays really essential function in producing revenues from every sport. It was noted that NASCAR is lagging in this area i.e. star power. When sports fans were asked regarding popular celebs and stars then NASCAR chauffeur was not discovered even in top twenty responses. So NASCAR can put efforts in this area too for earnings generation. They must assist their drivers that how they can become sport stars. Four strategic focuses which are produced by research group can likewise be acted as chance for NESCAR. These 4 tactical focuses compares and analysis Merck Latin America D Mexico Case Study Solution strategies.

Hazards

Economic down turn was experienced in late 2000 which can be threat for NASCAR due to the fact that if there is economic down turn then individuals would be having less return on investment. Economic down turn likewise results in boost fuel costs which also affected NASCAR. Now if NASCAR make substantial financial investments in brand-new sectors which are based on new clients then it may deal with negative comments from its core fan base.

Porter's Five Forces Analysis

It is essential 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 determine profitability, strength and beauty of NASCAR service.

Competitive Competition

These chauffeurs can go against NASCAR if they got better opportunity in terms of prizes and television direct exposure. If viewers take pleasure in other race automobiles and drivers more than NASCAR then viewers can shift to those other interesting cars and trucks and chauffeurs. NASCAR might be having risk from its 2 direct rivals that is Solution 1 and Moto GP.

Supplier Power

The provider power shows the number of providers are offered in industry and what is the expense connected with supplier if company shifts from one supplier to another. In this market there is supply monopoly because chauffeurs with needed resources and skills are limited.

Purchaser Power

This force is regarding to clients that is it easy for consumers to shift to other products. Then consumers are less most likely to change, if there is more switching expense is associated. When it comes to NASCAR consumers are its audiences. Because audiences will having low changing expense, viewers can switch to other competitors easily.

Hazard of Replacement

Alternatives are referred as alternatives. The replacements in this case can be other home entertainment means like viewers can move to other sports. So there are wide range of replacements are readily available in this situation which recommends that danger of substitute is high.

Threat of New Entry

In the case of NASCAR threat of brand-new entry is low. They require to build cars and trucks and racing tracks and also needs to pay large amount to chauffeurs for changing.

PESTEL Analysis

Political


As NASCAR is working in different markets so it requires to face various policies. It is also noted that NASCAR has actually faced increased scrutiny regarding regulative. Every federal government has different priority so NASCAR has to be prepared for it as concern can be shifted to other sector.

Cost-effective

Economic elements consists of tax rate, currency exchange rate, economic performance of that specific business, conditions of labour market, inflation rate and so on. If there is federal government intervention in the marketing and sales sector, fortunes of the NASCAR and its competitors can be affected. NASCAR can leverage capabilities of staff members to create new opportunities and enhance existing opportunities.

Social

Every society is different from each other. Each has various social worths and norms. It assists in comprehending concerning society and preference of consumers. Social factors includes customs, culture, mindsets towards particular services and products, demographics, norms, interests and so on. It can be concluded that advertising through other ways instead of conventional (i.e. paper) can be preferred in this society.

Technical

Technology has influence on nearly every organisation. It includes innovation in company strategy. In this case of Merck Latin America D Mexico Case Study Help it can be kept in mind that companies are heavily spending for research study and development. NASCAR should also work on its media rights policy with Turner Broadcasting System.

Legal

Due to the fact that every nation has different legal terms and conditions, Legal plays an essential role in every country. Merck Latin America D Mexico Case Study Help needs to be make certain that they safeguard their legal rights in every county so any company does not harm to its legal rights.

Environmental

Environmental factors are likewise essential for every business. NASCAR requires to make sure that its automobiles are not creating contamination more than appropriate level.

7 P's of Marketing

Item

The items of Merck Latin America D Mexico Case Study Help 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 business online marketers throughout broadcast of NASCAR races. (Hanlon, 2018).

Cost.

Rates strategy of NASCAR for its race events tickets is based upon the place and value of the racing events. In addition to race occasions tickets, NASCAR likewise charge different service charge to its stakeholders and earns profits. It charged sanctioning costs of $1-2 million per race on average in 2005.

Promotion.

Promotional method of NASCAR is highly based upon its fan base. A strong fan base share its fandom with others and increase the number of viewers for NASCAR races.

Location.

NASCAR have its racing tracks in numerous cities in United States. The most essential tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Automobile Club Speedway in California and Darlington Raceway in South Carolina. It attempts to conduct its races in most of the cities in United States to grasp across the country appeal.

Individuals.

Nestle people strategy is consisted of offering better experience to its audiences, its fan base and to all of its stakeholders. Individuals are a crucial element of Merck Latin America D Mexico Case Study Analysis A marketing technique as its occasions are the source of home entertainment for crowd. Its individuals strategy includes efforts to supply much better experience to its Fans, Race Drivers, Team, Event Organizers etc., all of which come under individuals method of NASCAR.

Processes.

A number of business procedures are needed to perform racing events in an efficient method. These processes include; correct schedule of time, plan for viewers, selling tickets, arrangement of space for sponsors, handling logistics and so on. These all procedures contribute I building NASCAR image, enhancing spectators experience and increasing fan base.

Physical Evidence.

Most important physical evidences for the NASCAR includes the existence of its racing tracks, stock cars and trucks and racing occasions. Together with it, its retailing brand names consisting of t-shirts, caps, goodies etc., likewise function as a physical evidence for NASCAR.

Product Life Cycle Evaluation.

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

Development.

After performing its first race effectively the company moved towards developing its own tracks. The very first Merck Latin America D Mexico Case Study Analysis based track, specifically the Darlington Raceway track, was initiated in 1950 in South Carolina. It was followed by establishment 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 tv in 1979. The very first occasion relayed on television was flag-to-flag coverage of Daytona.

In 1972, William France Jr., ended up being the president of NASCAR and n about 3 years, he transformed NASCAR from a regional Sport popular organization into one with international fan base. He started a new era of lucrative 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 range of income sources. The company has about 500 sponsors with transmitting its events in about 150 nations. The business has large number of tracks in the majority of the cities of United States.

Decline.

The decrease in the business's offerings started after 2005 with typical attendance rate per race decreased by 22% from 2005 to 2010 and tv viewership rate decreased by 30% from 2005 to 2010. The significant causes of decrease consist of the financial crisis of 2008, which increased the expense of getting to tracks for viewers due to increasing fuel prices, and the moving of its fan base towards other sports.

Market Segmentation.

The market division of Merck Latin America D Mexico Case Study Solution can be divided into 4 sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).

Geographic.

The geographical segmentation of Merck Latin America D Mexico Case Solution is based upon the geographical presence of its tracks in numerous states and cities in United States, and the television broadcasting of its occasions in different nations. The business has 23 tracks in about 20 states of America and has tv broadcast through numerous Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This huge geographical division offers the business local in addition to international fan base.

Market.

The demographic segmentation 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. Nevertheless currently NASCAR is attempting to increase its target market to the young growing population and kinds also. To increase the demographic section of its market NASCAR should modify its marketing strategies to attract more age groups and lower its rates to enter in the marketplace segment with a low typical earnings.( htt1).

Psychographic.

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

Behavioural.

Behavioural segmentation of NASCAR is based upon the behaviour of fans in terms of seeing the race live on the television or by going in the events. Currently, the fans choice 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 costly.

Target audience.

Hispanics.

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

Kids.

Kids are likewise one of the possible target market sector for NASCAR, as they are more linked socially than other groups. Automobile racing video games developed by Merck Latin America D Mexico Case Study Help can be a prospective source of getting attention of kids towards NASCAR track racing. NASCAR needs more attention towards tailoring and enhancing its digital features to bring in the kids target market.

Generation Y.
Generation Y target market includes those who spent 5 times more resources on discretionary expenses i.e. acquiring tickets for racing events, than others. This substantial expense makes the segment capacity for NASCAR marketing method of increasing its fan base. The market segment is also easy to technique as 81% of the Y Generation consumer uses Facebook the use and every day is two times of using television and radio. The market sector views sports as an affair, instead of adherence to sport. The market sector considers NASCAR as a company lacking in developing a multiculturalism atmosphere. Merck Latin America D Mexico Case Study Solution should take different steps to enhance the experience of Generation Y customers in its events.

5 C's of Marketing

5 C's of marketing assists in taking decisions concerning marketing.

Climate/Context.

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

Business.

NASCAR is a car racing business with having USP of high quality auto racing with an international structure. Its sector is sports group and events. Its target market is males in the age group of 15-60 years. Company has actually closed business culture and having non-interventionist method.

Partnerships.

Collaborations consists of suppliers, suppliers and alliances of NASCAR. NASCAR utilized to get pay check of around $15 million each year from Turner Sports. NASCAR had to get approval from Turner Sport if it want to create its Facebook page, twitter account or even mobile application.

Customers.

The customer of Merck Latin America D Mexico Case Study Solution 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 create generational commitment.

Competitors.

The direct competitors of NASCAR are Solution 1 and Moto GP. Teams normally represents sponsors in NASCAR and the medium of marketing is motorists. Therefore it can be stated that drivers and race automobiles are rivals. If they got much better opportunity in terms of rewards and television exposure, these chauffeurs can go against NASCAR.

Marketing Methods.

1. Maintaining and establishing Facebook Page.
One of the possible target markets sectors for NASCAR is Hispanics which is the growing population segment of USA however sadly NASCAR had actually been unable to draw in the this targeted sector. It needs to develop a Facebook page containing the details relating to the races and the places of tracks to make the customer helpful about the core operations of NASCAR.
2. Developing and Upgrading Accounts of Key Drivers.
NASCAR motorists has a low star power as compare to players of other sports. Its ranks 7th in regards to star power (see Case Exhibit). The significant reason behind it is that, the racers mainly play in teams and are not able to construct a crucial account and keep 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 an important factor for drawing in viewers towards tracks and towards tv. The star power for the motorists at NASCARA could be improved by creating and upgrading accounts of crucial drivers by NASCARA itself. This would eliminate the requirement of forcing motorists to maintain their accounts and would lead to increasing fans attention towards NASCARA motorists.
3. Developing New Games and improving present video games for kids.
Kids invested most of their time on playing video games and utilizing mobile phones. Regrettably, kids playing NASCARA have a worst experience of playing its games. As a result, they are less attracted towards the sport. In order to attract these kids, NASCARA ought to enhance its present racing games by presenting customization in the automobiles i.e. altering colours, choice of speed, presenting group racing in the video game, using better graphics connected to the racing tracks and presenting numerous levels in the video game. All these adjustments in the current game would supply better experience to kids.
Together with it, NASCAR should likewise construct brand-new games connected to racing like kids racing with kids characters as chauffeurs, cartoon racing with racing in between numerous animation characters with an option of choosing the favourite cartoon character for the kids. These strategies would enable the business to draw in one of its possible target sectors.
4. Presenting multiculturalism at occasions.
Merck Latin America D Mexico Case Study Solution events are comprised of fans with really few multiculturalism, due to cost of arrival in occasions, making it unappealing for the consumers perceiving sport occasions as social occasions i.e. Generation Y consumers. As the Generation Y consumers are a possible target audience for NASCAR, therefore the business must take specific steps to attract this prospective target market. It must adopt methods to draw in the customers far from the tracks place with different culture. The technique to do so could be offering unique discount rates on tickets or free tickets to viewers originating from a specific range or from another state. It would increase multiculturalism of the fans and would make Generation Y customers more pleased.
5. Improving Consumer Experience at Tracks.
Because on the race day audiences got dissatisfied, NASCAR needs to work on facilities and facilities at tracks. Audiences have many expectations from NASCAR due to the fact that in exact same market other business are offering much better services than NASCAR. Then its fans may moved to its competitors, if NASCAR don't work on this concern. According to fans there were not adequate centers were available as compare to other sports providers. NASCAR needs to make sure that it offer sufficient facilities that consists of cleaned up bathrooms, comfy seating arrangement. They need to also provide WIFI services and availability of charge card throughout that track. It needs to be likewise ensure that there are enough jumbo turns put at all needed locations. There must be also food stalls that provide quality food to audiences. In this method audiences will be having pleasant experience at the day of event. (See Appendix B).
Marketing Budget.
Marketing budget plan made on the basis of the above techniques for the duration of 5 years from 2011 to 2015, shows the cost related data for the marketing techniques. (See Appendix B). It can be seen that technique 5 of improving consumer experience at tracks would need greatest preliminary financial investment and expense and strategy 4 of presenting multiculturalism will need least expensive preliminary financial investment with lowest further annually cost. The business must prioritize the resource allocation on these methods on the basis of its available resources and the prospective advantages which the strategy would provide.
KEEP IN MIND: The worths about cost are presumed on logical basis due the lack of figures and realities related to cost in the event research study. Inflation rate of United States is presumed to be 10%.

Recommendations.

On the basis of deep analysis of the internal and external elements of Merck Latin America D Mexico Case Study Solution causing the decline 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 methods would deal with internal factors like poor customer experience at tracks, inadequate social networks marketing, incapable digital medias like video games, lack of culturalisms at tracks etc., along with with external elements like shifting of fans towards other sports, demographical modifications in America and altering family life designs.

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