Build a Bear

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[pic 2]Assignment Cover Sheet [pic 3][pic 4]

FEEDBACK FORM INTERNATIONAL COLLEGE OF BUSINESS & TECHNOLOGY 

Module: International Business          Student:            Assessor:          

Assignment: Case Based Assignment  

 Strength of your work:

Final Marks Calculation

Case study 1 - Build a bear

1. BBW is a large scale organization, which own by Maxine Clarke with more than 1,200 full time and 4,800 part time employees. The first BBW store was open in 1997 in the USA. By 2003 BBW’s international expansion begins with new locations in Canada & England. Also, by the end of 2002 BBW signed a franchises agreement with Japan. They always aligned with environment change, which shows that they don’t have any strategic drift. They have 8 build a bear stations where the customers will be involved in making their own bear during the 8 stages. They always cope with the changes in environment by having different stations, global integration (creating website – by which can play games). From their main website www.buildabear.com customers can play games earn bills from which they can buy new clothes and furniture for cub condo house and guests can also trade items with other citizens in the world. Moreover, BBW’s strategies are kind of globalized where they have 8 standard stations, and they accept the customer’s suggestions given for the process and company where it turns to a Glocal strategy. Customers suggest add a black Labrador it was invented, and after that a customer suggests add Sock Company did. The customers of BBW are receiving a personal mail from Maxine Clarke or from one of the company’s management team member. They also have a “cub advisory board” a group of girls and boys who receive new products and suggest additional ones where Maxine stays closer to customers. This shows that the BBW has very high market responsiveness.

1. No. BBW has 346 company-owned stores in the United States, Canada, the United Kingdom, Ireland and France, whereas 62 franchised stores throughout the world. This shows that they don’t have a balance between company owned stores and franchised stores. From the franchisees third-party BBW is getting less than 1% of the total revenue, and they have to pay only one time franchise fees. So, this is a few amounts they are getting from these high profited franchised stores. In order to cope they can increase the royalty fees that they go from franchised stores, also they can increase the franchise fees which franchisees are paying one time.  Moreover, they can target to increase the number of franchised stores which would be a balancing between company owned stores and franchised stores.

1. The founder of choose holdings Aps acquired the franchise rights for Germany for US$750000. The first two stores opened were in Hamburg in 2006 and two further stores in berlin and braunschweig. As a further plan they want to open 50 more stores within 5years. However, due to different reasons BBW was a failure in Germany. It’s because the market in Germany is quite different from Scandinavia. In Germany adults are more involved in buying bears those children for their adult purpose, whereas children using bears are older for them. Moreover, the managers of BBW shops in Germany are mostly involved with administrative tasks rather than involved with selling and direct contact to customers in the front line. This leads to low sales and poor relationship between customers and the BBW staffs. So, due to above differences in Germany their shops did not perform as planned.

1. Throughout the years BBW has been fading out from the global market due to lack of marketing, and old bored bear concept. In order to manage the global comeback BBW can focus on high-volume stores in tourists markets. Also they can double down on stores in locations that cater to its best customers. Moreover, the consumers grow bored with the concept bear. So, they can make souvenir and open shops in more tourist friendly locations. In addition, they can change their concept of inside the stores, like changing the toys iconic theme to standard theme. Furthermore, in order to less their loss they can close down the unprofitable location stores, and open new stores in outlet center department stores and theme park. As well as, they can make new generation cartoon characters such as “despicable me” minion and “Frozen” Elsa and Anna character. They also can adopt the strategy as expanding the brand beyond the work shop and into its own licensed products.