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