Global Business Plan for Yankee Candle Company Essay

northern examine partnership began in 1969, as penniless mike Kittredge, age 16, liquid crayons to form a wax light as a Christmas present for his Mom. A neighbor, fascinated by his fabulous creation, expressed her thirst to purchase one of his tapers thus northern candela come with was born. mike mapping his pargonnts brutement, kitchen, and garage to pee his seraphic cadmiums. Five years later, in 1974, Mike moved harvestingion into an quondam(a) paper mill situated in Holyoke, Massachu performts. In 1998 Forstmann Little & bon ton partnered with northern candela Compevery and began to publicly hand on the NYSE in 1999. Mike Kittredge sold his first candle to a neighbor for $1.36, in 1969 and in 2005 northern compact disk Companys fargon of money exchanges were $601,180,000. Mikes humble beginning in the family home has openhanded into a deal out customer interlock of 16,400 just nowt in locations, a growing base of Company claim and operated re tail stores (390 determined in 42 states), unionise situation catalogs, its website, international distributors, and to a European wholesale webwork of approximately 2,200 store locations (2006) northerns passion for fragrancy has live a bring in sufficient entity with visions of sustaind spheric refinement. northern standard candle Company has brand their yield as persistent and streng whenceed in fragrance. northern has essential everywhere 150 fragrances for their various candle results. Their crossroad line overwhelms jars, votive, tarts, wax potpourri, pillars, tapers, and tea lights candles. northerns design is innovative and their scents argon pleasant, relaxing, and rejuvenating. northern cadmium Companys design department is visionary in developing candles to accent modern dcor and fragrances that appeal to its customers. northern lead seek and introduce aromas that atomic number 18 common to the classical finis as they develop into this up start grocery. northern wax light get out simulate their passion for fragrance and give a wide frame of choices for its vernal customers in Greece.The Yankee compact disk Company continues to plant on the passion and creativity of Mike Kittredge driven by a flush to warm hearth and home with the fragrances of animation by means of duty, innovation, and passion. Yankee has been dedicated to excellence through step up their 37 year history. A caller-out spokesperson attributes their success to, our vertically integrated concern modelling, which enables us to work virtually every aspect of our business, from harvest-feast development to manufacturing to distribution to merchandising and sales. This expression drop outs us to consistently provide high school tone of voice and innovative products (2006) Yankees innovation is evident in their candles and partner designs, which acclimate too various dcor preferences and the expanding variety of fragrances, which a ppeal to its customers. Yankee Candle Company is driven by an terrific passion to spread the fragrances of animation virtually the valet for all to enjoy.The product expansion into the Greek grocery is an some(a) some other feeling towards reaching their objectives. Yankee Candle Company volition expand its fragrances to blend in with the e labour partyations of new markets. Yankee leave alone continue to develop partnerships with constituted Company geted retail stores as venues for their products to be sold. The candle company has already established Yankee Candle Europe with a 30,000 square foot distribution perfume in Bristol, England that provides Yankee products for approximately 2,200 stores. This distribution center go out be employ to ex mienation Yankee products to be sold by retail stores in Greece.The Yankee Company has judged to expand their markets and item out to the Country of Greece. We give be business our candle line product from the joined St ates to Greece. The product expansion into the Greek marketplace is another step towards reaching their objectives. Yankee Candle Company forget expand its fragrances to blend in with the endings of new markets. Yankee give continue to develop partnerships with established Company takeed retail stores as venues for their products to be sold. As Yankee Candle expands into new regions of the world, distribution centers forget be built to service their wholesale store ne bothrk. Where trade barriers, frugalal and political policies will allow. When expanding into new countries, Yankee Candle will establish an online obtain website to market and sell their products.Since 1994, the get together States is part of the NAFTA presidential term in the midst of three countries. The North the Statesn assoil Trade Agreement, known usually as NAFTA, is a free trade proportionateness among Canada, the United States, and Mexico. NAFTAwent into effect on January 1, 1994. NAFTA is with al used to refer to the tripartite trade bloc of North American countries. www.wikipedia.org.Since the ancestry of the Eurpeon marrow in 1957 six countries were a part of this union. Nineteen only states consider joined in and creasted a thriving union. Greece joined the EU January, 1981.The exchange and repatriation of finances risks the Euros exchange rate against the dollar sign, form un persistent. The low interest rates, increase challenger in the banking industry, and continued growth in commercial bank lending to refer bad debt and strong growth in consumer borrowing. Economic growth is forecast to sub codd in 2006 and 2007. The consumer price largeness slowed dramatically in Greece before its entry into pre-economic and fiscal union (EMU) in January 2001 and was helped by other temporary mea for sures.The economy of the United States is stable made up of internal alternative, crowd and manufacturing, and investments. The United States has the massivest and o ne of the well-nigh scientificly advanced national economies in the world, with a GDP of 13.049 trillion dollars. www.wikipedia.org. Consumers and producers carry some decision-making that form the economy, but the government in like manner has a powerful role on the effects of the economy.The economy of Greece is growing fast(a) after the implementation of stabilization policies in recent years. Greece remains a net importer of industrial and detonator goods, foodstuffs, and petroleum. Leading exports are manufactured goods, food and beverages, petroleum products, cement, chemicals, and pharmaceuticals. www.wikipedia.org. Greece is orbicular leader in shipping, which is the transportation of goods and onus by land, air, or sea.Types of money used through out the world change from country to country and or by region. The Unites States of America official currency is the dollar, type USD also known to be decrease by $. The US currency was adopted in 1785 by the United S tates Congress. The United States dollar is also known as a world currency in 1985 $300 billion dollars were in circulation,with both thirds beingness out side of the unchained States. Each year the amount of U.S dollars is being circulated around the world continues to increase. In comparing to the unshackled States of America, Greece uses the euro as denomination of currency type, symbol . Greece is part of the European Union also knows as the EU. What I frame most interesting is the European monetary Union has ceded control of monetary constitution to the European Central Bank. Versus the Untied States victorious control over their own currency.The European Union has a walloping economy, believably slightly larger than that of the United States of America with a 2005 GDP of 12,865,602 zillion vs. 11,734,300 cardinal (USD figures) (using nominal US Dollar GDP) gibe to the International Monetary Fund. www.wikipedia.org.Greeces dealing with other countries in the regi on tolerate been steadily improving. Greece is working with Turkey to crack their disagreements, mainly with regard to Cyprus. Failure to collapse the division of the island of Cyprus whitethorn increase tensions amid Greece and Turkey as the latter finds its dictation to join the European Union uncompletely bloodsucking on success, but tensions insurrection sharply with Turkey over the figure of Cyprus. Greece is also facilitateing and improving relations with the economic development of the Balkans. The Balkans is now viewed by Greece as a greater threat to protective paying than Turkey. besides, renewed instability in the Balkans leads to ferment in Greece and trade disruption. Political corruptness is considered higher in Greece than some other European Union countries. Politicians are dependent on media with strong ties to business interests. in that respect is a politicized, anti-globalization environmental movement in Greece which is increasingly complicated in its use of the courts and the European Union to block large projects.United States culture is very respective(a) but due to the level of the American culture there are many integrated but exclusive subculture at heart the U.S. The subcultures disagreeentiated by status, ethnic background, residence, theology or other factors that functionally approve the group and act jointly on each subculture member. The ethnic groups are White, Black, Asian, Amerindian, Alaska indigenous, native Hawaiian, and other Pacificislander. The various religious belief are Protestant, Roman, Catholic, Mormon, Jewish, Muslim, Baptist, and others. Lastly, the linguistic processs are English, Spanish, Indo-European, Asian, Pacific island and others. allow us not forget that the government type is constitution-based federal republic but strong democratic tradition. As a result, the subcultures befool their own joint set of customs, attitudes, and values.Greece is a diverse culture partial by its place at the village between the East and the West and by the various occupations endured by the Greek concourse throughout history. The Greeks are proud of their culture which is the definition of their national and ethnic belonging. The Greeks culture is made of their traditions, religion, music, terminology, food and wines. Some of the traditions and superstitions start out from one island to another.Many countries differ at heart a range of dimensions including social structure, language, religion, and traditions to expose a few. The residuum has important implications on marketing strategy of the product. The most ethnical difference that has an impact would be traditions. Candle scent preference may differ from one country to another. The company may encounter resistance to some of its unalike scents or wax.The organization must particular(prenominal) research Greece hea and so norms and understanding the difference between US and Greece. Cross-Cultural dressing (l iteracy) would be necessityed to make sure the company advertising or marketing strategy does not offend anyone in the other country. The candles should be affordable due to the unemployment rate inwardly Greece only the organization must make a profit consider the salute to export the candles within that country.Yankee Candle is aware of the culture difference between the US and Greece, thereof staffing would be important to the organization. The organization would provide their US employees with language and pagan preparation. Yankee understands that one of their vendors Berlitz has experience and knowledge in cross pagan and language training that would help assist the expatriates. Berlitz offers a variety of programs and has been in thebusiness for 128 years, more than 450 centers in over 60 countries. Berlitz offers online, adult, children and teen programs for cultural and language training including one-on-one sessions. The cultural and language training would be for the family as well. The cultural training would be for two days and 100 hours for language training, however if more hours are needed for language the company would approve this cost. The employees that are breathing out on the international assignment would use up other benefits including when they are expatriating back into the US. However, the expatriates will receive just a day of cultural training and language will not be infallible.The US dollar is not equal to the aforementioned(prenominal) amount in most other countries. Hence, the company would pay an additional allowance to cover the difference. The cost of living may be higher in the other countries, as a result a housing allowance is provided to the employee. The company does consider the cost living in the US and then compare that cost to living in Greece. The education in Greece is not the aforesaid(prenominal) for US citizens. As a result, to the language barrier and cultural it may be very difficult for the em ployees children to get a line the local school in the host country for that reason private schools or boarding school may be required. Consequently the company is aware of this and be set out would provide tuition allowance.Due to the cultural and language difference there are going to be diversity issues, so human resource has provided an open room access policy. The open door policy would allow employees to express him or she concerns and human resource will try to provide a solution to the problem, if possible.Supply chain concern is an important role for the success of Yankee Candle Company to sell scented candles in Greece. Supply chain is most effective for optimal resource use, stripped total cost, and maximum value to the customer. Decisions with in tack chain are to bargain your product or make your own. Yankee Candle Company already produces its own scented candles and will be the same for candles being shipped overseas. The production will be manufactured in the C ompanys 294,000 square foot facility in Whately, Massachusetts. As a manufacturer, the Company is able to closely monitor product shade and control production cost, which fits high qualityproducts and maintains affordable pricing.Information has been gathered from the Greece from the candle business industry. This data will assist in forecasting how much product is needed for a three months supply to butt the supply and demand in Greece. Lead time for the initiation of Yankee Candle Company to enter the Greece market is 10 months. In turn this will give enough time to meet the three month stock supply. The schooling gathered from the Greece candle market will support the types of scented candles that will be produced to ship overseas. Lead time for the onus to arrive at the distribution storage warehouse is three months the life span of a candle is three years.Placing our product will be nearly or around the largest cities and ports in Greece. The largest and most important c ity in Greece is Athens, the capital with macrocosm based in 1991 of 748,110. The largest port in Greece is Thessalonki, with a population of 377,951. Also another large port is located on the North part of the Peloponnesus, is a major seaport, with 155,180 inhabitants. Other sizable cities complicate Lrisa (113,426), Irklion (117,167), and Vlos (76,463). The ports and its population are important factors in conditioned were to place the Yankee Candle Stores. These would be in areas in the region that have the most population and are substantially accessible to Tourist from vacation boats that may doc on these ports.Promoting Yankee Candle Company in Greece would be interchangeable as it is currently in the Untied States. Through its retail stores the Yankee Candle company would open in Greece, direct mail catalogs. To take on a large market Yankee candle will also promote is U.S product through television commercials newspapers, bill board singes through out the larger cities of Greece, and through its own web page http//www.yankeecandle.com/cgi-bin/ycbvp/retail.jsp. Promotion for this product will be introduced to all who wants to have special fragrances in their homes. Business will also be aimed to have recent new fragrances for their offices. Candles are an excellent pose for all ages and for any special occasion. The middle(a) class in Greece is the main target market Yankee Candle Company is promoting the scented U.S candle product. In 2005the labor force in Greece was at 4.72 million compared to unemployment rate of 10.8% figures from www.cia.gov. These figures give Yankee Candle Company the green light to go with international distribution into the Greece market. Pricing the candles will be 30% above the sale price of a U.S product. This will ensure the costs of having a U.S product of seas.Yankee Candles has happyly developed and market new products and earn coarse returns. We have success springs for the fact that it has a vertically in tegrated business model, with the in-house expertness required to design, develop, manufacture, distribute and sell our candle products. Our vertically integrated business model acts as a powerful political program to support our product innovation initiatives. This business model included strong research and development activities, an experienced employee team, and a bottom skill in test marketing our products. We collected these resources to research consumer interests and home interior design buying trends, and then to create master copy candle designs, fragrances, accessories, gift sets, home fragrance merchandise, and personal care dots that align with our findings. We then release this merchandise into our distribution take in a way that permits us to seek and track consumer feedback. This process positions us to fine-tune our new products from performance, to packaging, to labeling, to pricing parcel to maximize the potential for each item we develop to have a successf ul launch and widespread acceptance. Together, these efforts helped to drive sales, run new customers and extend the appeal of the Yankee Candle brand.Once exporting was elect as the mode of entry, Yankee Candle secured assistance from a company called, exporting Trade of America to learn most insurance, tariff, and tax laws involved in transaction with Greece. Yankee Candle Company will face various legal challenges when exporting its candles into Greece, but the process will go much easier with the help of an export solicitude company. Yankee will need to harmonize with employee laws and have knowledge about hiring, firing, and chasten regulations in Greece. They will need to be acquainted with their legal system and how those laws are enforced. Greece is a parliamentary republic with a president, who is heads the executive administration, a prime minister, who is head of thegovernment, and a 300 seat legislature. The legal includes a Supreme Court, regional districts, an d prefectures to decide civil and criminal cases. There is a national police force as well as policing agencies from the European Union.As a member of the European Union, the EU laws supersede those of the individual member nations. Yankee Candle Company will need to be aware of the EU laws, enforcement, penalties, and necessary trade practices. The European Union could cause legal complications as the union adds new members, arbitrates disagreements among its memberships, and as competitor increases in the global marketplace.There has been a longstanding family between Greece and the United States of America. The two countries have diplomatic, intelligence, and law enforcement ties. Greece and the United States, recently sign-language(a) treaties covering extradition and mutual legal assistance, which further strengthened this cooperation. (2006) Trade between these two nations should proceed with success barring increase terrorism, war, or a terrific rude(a) disaster that impa cts the global economy.It is important for any company to evaluate their strengths, weaknesses, opportunities, and threats. As Yankee Candle employees examines their organization they listed the following as company strengths strong business model, long-lasting candles, well-branded product, variety of fragrances, adaptability of product to various cultures and dcor, strong financial backing, increasing profitability, expanding marketplace, effectual manufacturing and distribution process, and an innovative product development. Yankee Candle Companys weaknesses include rising cost for manufacturing and distributions, technological skills, star manufacturing center, adapting products to various cultures and customs, and material shortages.There are several opportunities that must be pursue to maintain profitability increase front line in the global marketplace, expanded online shopping options, adapt fragrance choices to new markets, get to foreign manufacturing and distribution center, and add accessories to their product line. There are many threats to the worldly concern of Yankee Candle Companyincluding competitions pricing and product differentiation, terrorism, natural disasters, exchange rate, rising costs for manufacturing and distribution, and the products life-cycle.The away(p) environment strengths include reduction in trade barriers, strong European Union, technological advancements, and utilization of websites. The outside(a) weaknesses are trade blocs, closed economic and political policies that embarrass or limit imports/exports, and the affects of terrorism. External opportunities include improving the economic levels of third world countries, utilizing the skills, resources, and expertise of various countries to lower costs and create an integrated economy, develop innovative products, and create a global network. Finally, the external threats include terrorism, political instability, natural disasters, increased global competition, t rade blocs that become fortresses against those outside their union, countries imposing regulations against outsiders who want to merger or acquire other foreign companies, scrap among existing trade bloc members, and inflation/deflation of the monitory systems.Reference(2006, 4,12). The Yankee Candle Company, Inc. 2006 First Quarter Earnings meshworkcast. Retrieved 4/23/06, from SBC Yahoo Finance Web site http//biz,yahoo.com/bw/060412/20060412005002.html?.v=1www.wikipedia.org., retreived April 24, 2006.http//www.cia.gov/cia/publications/factbook/geos/gr.htmlEconRetrieved 5/13/06 from the World FactbookUnknown, Retrieve on April 23, 2006 fromhttp//www.odci.gov/cia/publications/factbook/ gull/gr.htmlUnknown, Retrieve on April 23, 2006 fromhttp//www.greeka.com/greece-culture.htm