cabela’s in the land down under. presenters courtney tarabori stacie peterson james martinez...

Cabela’s in the Land Down Under

PresentersCourtney Tarabori

Stacie Peterson

James Martinez

Richard Shafer

Diana Vaughn

Courtney Tarabori

Brief Overview of Australia

• Commonwealth of Australia

• Worlds Smallest Continent

• Sixth largest Country• Consists of 6 states• Population along

Eastern and Southern coasts

Geography

• Diverse• Snow Capped

Mountains

• Forests including tropical

• 40% is desert

Energy Resources

• Coal• Natural Gas• Petroleum• Iron• Copper • Tin• Opals

Australian Culture

• American Influenced

• Multicultural

• Variation of English

• Currency AUD

Cabela’s in Australia

• Chosen location to launch Cabela's

• Retail• Manufacturing and

Distribution• Lower costs• Reap Benefits from

various Economies

Why Australia?

• Economic Stability

• Political Structure

• Lifestyle Similarities

Stacie Peterson

Rationale

• Thriving Australian economy

• Low political and financial risks

• Free trade barriers• Average age and high

level of outdoor recreation

• Desirable physical environment

Marketing Mix

• Price- lower prices entering Australian market

• Promotion- flyers, showroom, catalogs

• Product- outdoor recreational merchandise

Marketing Mix cont.

• Place/Distribution- Southeastern coastline

James Martinez

Project Budget

• $2.5 million US

• $3.2 million AUD

Exchange Rate

• Currently 1.28

• 5 year average = 1.473

• Standard deviation of 0.2

Financial Organization

• Citigroup– Banking– Financing– Foreign

exchange

Project Analysis

• NPV = $673,493

• IRR = 32.71%

• PB = 1.33 years

Rick Shafer

External Governance

• Refers broadly to rules, processes, or laws that operate, regulate, control business

• Entities such as consumer groups, government agencies, clients

• Provides a structure that benefits all• Ensures organizations adhere to accepted ethical

standards and formal laws

External Governance

• External forces mandated by various levels of government

• In place to protect consumers, employees, shareholders

External Governance

• Federal Agencies

– Securities and Exchange Commission (SEC)

– U.S. Treasury Department – Internal Revenue Service (IRS)

External Governance

• Federal Agencies– U.S. Equal

Employment Opportunity Commission (EEOC)

– Department of Justice-Bureau of Alcohol, Tobacco, Firearms and Explosives (BATFE)

External Governance

• State and Local Agencies

– Mostly concerned with tax based issues that drive state and local economies.

External Governance

• Foreign Agencies – Australia – Federal Department of

Treasury– Foreign Investment Review

Board

Centralized versus Decentralized

• Currently under a typical product division structure.– Top management

centralized-Controls R&D, Special services, Manufacturing, and Finance.

– Four Domestic General Managers (Decentralized)

Centralized versus Decentralized

• Currently under a typical product division structure.

– Addition of International General Manager

Centralized versus Decentralized

• Expansion Problems– One Manager, several

countries– International Division

creates a double-tiered system

Centralized versus Decentralized

• Expansion Opportunities

– Worldwide product division structure

Centralized versus Decentralized

• Expansion Opportunities

– Worldwide product division structure

Headquarters

Domestic General Mgr.

Hunting Equip.

Domestic General Mgr.

Fishing Equip.

Domestic General Mgr.

Outdoor Apparel

Purchasing

Marketing&

Sales

Accounting

Purchasing

Marketing&

Sales

Purchasing

Marketing&

Sales

International General Mgr.

Accounting Accounting

Australia Hunting, Fishing,

Outdoor Apparel

Canada Hunting, Fishing, Outdoor Apparel

Marketing&

Sales

Accounting

Purchasing

Marketing&

Sales

Accounting

Research &

Development

Manufacturing

Purchasing

Finance

SpecialServices

Domestic General Mgr.

Home Furnishings

Purchasing

Marketing

Accounting

Diana Vaughn