8 Location Strategies

Tesla vs The World: Revolutionizing The Car Buying Experience

Posted on by spr1322njanszyn

Showroom

It’s beginning to look like Tesla Motors’ CEO Elon Musk’s vision of becoming the world’s first mainstream electric car manufacturer is coming to fruition.  “Tesla” has been the top buzz-word in the news covering financial markets for the past few weeks now, and it has not been losing any steam, especially following a 99% rating by Consumer Reports on its Model S.  Tesla stock has already soared by nearly 175% this year.  Due to Tesla’s successes, both investors and consumers are gaining more faith in Tesla and its products.  Along side its stock price, Tesla has also been experiencing increases in sales after winning Motor Trend’s Car of the Year Award, and introducing its own financing program in a partnership with Wells Fargo.

The successes of Telsa Motors is proving to be too much pressure for the conventional car dealership, indicated by a proposed North Carolina bill to ban Tesla Motors galleries in the state.  Unlike car dealerships that make their profits by purchasing their cars at wholesale prices from the manufacturer, and then marking up the prices for the ultimate consumer, Tesla uses a direct-sales method to get their consumers behind the wheel of their machines.  The bill, which has just passed the state Senate, would ban manufacturers from selling their cars without going through a dealer.  Now, if you want to purchase a Tesla car, you can go to their gallery showroom, meet with a representative, choose your configurations, and make the purchase on-site through their website. There are many reasons why these dealers might be pushing for the Governor’s signature on this bill, but I am confident that it has nothing to do with simply playing by the same rules that other dealers are playing by.  Currently, in North Carolina, it is already illegal for an automobile manufacturer to sell their cars without doing so through a dealer, so what would this bill change?  Under current legislation, Tesla still has the criteria of being considered as a car dealership.  The bill would declassify Tesla as a dealer, since it prohibits manufacturers from making sales “using a computer or other communications facilities, hardware, or equipment”.  Tesla is the only manufacturer that uses this as their sole method of selling cars.

Tesla’s products aren’t the only revolutionary aspect of their business.  This buying experience eliminates the need to sit at a dealership for hours, trying to get the price of a car down to a reasonable number, while the salesperson makes multiple runs to the coffee machine, AKA “the manager” during negotiations.  Instead, you go to the showroom, sit in the car, choose your options, and place your order.  Whatever price you pay at the showroom, is the lowest price you’re going to get. No haggling necessary. Is this simply an effort by conventional dealerships to rid Tesla of its competitive advantage, or is it a sign of their hope to have Tesla models in their own lots, and cash in on their growing successes?

Source: http://gma.yahoo.com/teslas-direct-sales-business-model-targteted-n-c-170402561–abc-news-money.html
Image:  http://global.networldalliance.com/new/images/article/tesla_2.jpg

 

 

A Thousand Lives: The Hidden Cost of Clothes

Posted on by spr1322mjamil

Three weeks ago the Rana Plaza factory building in Bangladesh collapsed, killing 1,127 people. A majority of these were workers producing garments for sale in the United States and Europe. The factory manufactured apparel for brands including Benetton and Walmart among others. An investigation revealed that the building was deemed unsafe just days before the collapse, but factory supervisors ordered their employees to continue working in these hazardous conditions.

jp-bangladesh1-articleLargeThe obvious question is why a tragedy like this would occur, even after there had been a forewarning. The answer is because factories like Rana Plaza and others in Bangladesh are under immense pressure to produce a high volume of low-cost garments for their biggest buyers, Walmart, H&M, Inditex (which owns Zara), and Gap to name a few. These companies pride themselves on their ability to get apparel into stores only weeks after designing them. However, this incredible efficiency requires a tremendous amount of manual labor, and no where are labor costs cheaper than in Bangladesh. The massive global supply chains of a majority of apparel manufacturers flow through the South Asian country which trails only China in terms of garments exported. Unfortunately, most of the large Western companies are unaware of the conditions that exist in the factories where their products are being produced.

The latest tragedy has finally caught the attention of European and American companies. This past week H&M, the largest buyer of garments from Bangladeshi factories, agreed to a plan to improve fire and building safety in Bangladesh’s apparel factories. The five-year plan calls for independent safety inspections and for companies to make the findings public. Joining H&M were Inditex, the world’s biggest clothing retailer, and several other European apparel companies. However, PVH, the owner of brands such as Tommy Hilfiger and Calvin Klein, is the only American company that has signed the pact. Companies including Gap, Walmart and JC Penney have considered the plan, but have not yet signed on, mostly due to the cost and how legal issues would be resolved.

130430150217-made-in-bangladesh-620xaI believe this safety pact is a step in the right direction on the road to abolishing subpar working conditions around the world. Therefore, from a management perspective, I think that companies that are not signing the pact, like Walmart and JC Penney, are making a mistake. Not signing sends a negative message to consumers and investors, if the companies are unwilling to spend money to protect human lives customers will question the ethics of the company’s management. Ethics is an important facet of operations management. The managers at American apparel companies need to recognize these issues, like their European counterparts have, and address the dangerous working conditions that exist in their supply chain. I think in the long run the benefits of ensuring safe conditions for all in the supply chain will outweigh the cost.

What is your opinion on the decision of many American companies to not sign the safety pact?

Do you think it is the duty of American companies to ensure the safety of workers in foreign countries?

 

Sources

http://www.businessweek.com/articles/2013-05-13/h-and-m-pledges-to-make-bangladeshi-factories-safer 

http://www.ft.com/cms/s/0/79cedd4e-c000-11e2-b19c-00144feab7de.html#axzz2TmPslBBP

http://money.cnn.com/2013/05/13/news/companies/hm-bangladesh-safety/index.html

http://www.nytimes.com/2013/04/25/world/asia/bangladesh-building-collapse.html?pagewanted=1&_r=0&hp

http://www.bloomberg.com/news/2013-05-14/h-m-inditex-joining-bangladesh-pact-pressures-wal-mart-retail.html

For GE: old school is new school

Posted on by spr1311sabraham

 

130502161742-wma20-a-620xa

General Electric (Ticker “GE”) Fortune Magazine World’s Most Admired Companies at rank 11.  GE is the single surviving company from the 1896 Dow Jones Industrial Index and currently has  roughly 305,000 employees and over 140 billion dollars in revenue last year [GE 10-K for the year ending March 31, 2013].  I believe it is safe to say these guys know what they are doing.  They are in the business of designing and manufacturing appliances plus energy, health, aviation, and transportation equipment in addition to operating a financial services company.

Due to GE’s aggressive and hard pressed past, there are very few companies with the same or even similar brand recognition, especially as they have had such a long standing track record.

Though a mammoth company, GE too had troubles fighting down turns in 2008.  GE’s financial services wing, GE Capital, found itself holding just about half of GE’s profits.  GE Capital was having difficulties and thus GE had to cut its dividend which was a huge blow to its image.  All of this finance/business aspect of the company then affected how GE would then change its ways operationally.  GE realized it needed to simplify, and was most definitely a task involving and most reliant on its operations management team.

Most interesting for me was the refocus on a portfolio of the company to refocus on its traditional core industries.  That is, they are now going to focus and dominate at what they are good at.  For example, in 2012 GE began to make water heaters which was its first new product in 50 years.  The site that it was built on was named Appliance Park, KY (notice any connection?) though this site had been used less and less due to favorable overseas factories which were much cheaper.  Interestingly, in 2009 GE shifted toward moving those overseas jobs back into the domestic light.  This process is just being finalized and in full swing.

The result?  A cheaper and much more rapid production thanks to an efficient domestic supply chain perfected by the company.

Another interesting note about this company’s changes: GE is spending money on investments in the “industrial internet” in order to take hold of ‘big data’ to make more efficient machines.

Things to think about:

-How do you think GE asses’ its ‘utilization’ and ‘efficiency’ for its production facilities now that there is a fully implemented shift into domestic production for this large company.

-We discussed in our course lecture the concept of ‘planning over a time horizon’.  How do you think GE will have to change the way it plans its capacity or the upper limit or ceiling on the load that an operating unit can handle?

-We have seen virtually all large companies using automation and focusing on capacity.  We just discussed this in the course lecture last week.  How do you think GE’s focus on investing in the “industrial internet” will change the efficiency of their production machines?  Do you think this will be a drastic change? Something they won’t see for a long period of time?

Link to this CNN Money Article: http://money.cnn.com/2013/05/06/leadership/general-electric-industry.pr.fortune/index.html

Has Starbucks Met its Match?

Posted on by izzydelly

 

 

The popular coffee franchise has made a statement in a number of different markets, but has it met its match against Vietnam? The Seattle based coffee chain put its first location in Ho Chi Minh City in February. This country is known to have a very specific way of making coffee; nothing like what Starbucks has in the U.S.

The main concern here is if Starbucks will thrive in this new country, or become a complete failure. I believe The Critical Decisions of Operations Management should be highly considered.  One of the points is based on the design of goods and services. Starbucks has made a point to please the locals by making a special drink called the Asian Dolce Latte to appeal to local palates. By doing this Starbucks has a better chance to win over the locals that are so keen to stick to their original tastes.  When taking a domestic product abroad, I believe having differentiation in the good or service is also extremely important. Since Starbucks has a flavor of coffee unlike anything the Vietnamese are used to, this differentiation can potentially give them the competitive advantage they need in order to succeed. Starbucks CEO Howard Shultz quotes, “The environment that we create, the store design, the experience…they all add up to a much different position to anything that anyone in Vietnam currently occupies.”

Another critical decision is location strategy. Now, Shultz did not just wake up one morning and decide he wanted a new location in Vietnam. There are currently over 3,000 locations in Asia alone. Starbucks in fact purchases a large quantity of Arabica coffee from Vietnam, thus building a location in Vietnam makes a lot of sense. If they can move closer to the supply, this could greatly reduce exporting costs. To be even more specific, Starbucks purposely located their café in the capital’s higher-end neighborhood, District 1. Here, those that live in the area can afford the expensive taste that Starbucks has. Starbucks essentially nailed it on the head when it comes to this aspect: they are now near raw materials, and they are near to their target customers.

Going global has given Starbucks a vast amount of knowledge on how to succeed. However, they also face some cultural issues as well. As I stated before, the type of coffee served at Starbucks in the U.S. is much different than what the Vietnamese are used to. They enjoy a more bitter and higher caffeinated drink, and in order for Starbucks to do well, they must adjust to the new scene and roll with it. They have also brought a roast-duck wrap and a French baguette to the menu to achieve this goal.

Overall, I believe Starbucks has done an amazing job going global, and if they review and understand the critical decisions of operations management, they will continue to strive to new levels.

Thoughts for discussion:

Will Starbucks succeed in their takeover of Vietnam? Why or why not?
What does this mean for local coffee shops?

Sources:

http://online.wsj.com/article/SB10001424127887323582904578487192544295444.html 

http://travel.cnn.com/can-starbucks-make-it-coffee-mad-vietnam-921956

 

Movin’ on Up?

Posted on by spr1324jstevenson

Wrigley Field is one of the most notable sports venues in the nation. It has been located in the heart of the Wrigleyville neighborhood of Chicago since the beginning of the 20th century. Being one of the spearheads of the economy of the neighborhood, it brings in customers for local businesses.

Recently, Wrigley Field has been undergoing construction the the outfield bleachers, with the addition of the Budweiser section in centerfield. One of the major plans the new Cubs owner, Tom Ricketts, has been to put a video board in left-center field since it is one of the few arenas that has yet to succumb to the trend. Ricketts has been pushing this addition for months though many fans as well as sponsors are completely against it. Becoming desperate, Ricketts threatened to move the stadium to a different location so that he may install the board. Many thought he was bluffing as the the field and neighborhood are the reason for the Cubs success as they are not the best team in the league.

As the owner of one of the most profitable teams in baseball but has a losing record, is it really a wise choice to threaten to move the one thing that keeps the fans coming? Is it worth it to anger sponsors as advertisements would be blocked and removed? Is it worth it to completely block an entire section that has been generating revenue for years and has become part of the Wrigley Field experience? No. The fans are the driving force of this organization. It is shocking that a team fighting a 68-year curse is the most profitable team with the most loyal fanbase. A video board would be possible but would not go over well with sponsors. Threatening the fans, though,will not help Tom Rickett’s case in putting a video board in left field. Any sport’s fan can tell you that they do not respond well to threats.

Moving Wrigley Field would also affect the local businesses as they generate a large amount of their revenue during the summer months of baseball season. Owners of the team as well as their investors would be faced with a difficult decision of where to move the stadium as well as the problem of redesigning and building it as well, unnecessarily decreasing their bank accounts of millions. The value of the field itself is worth much more than a video board as many fans would be less willing to travel elsewhere for games. With the ivy covered outfield and classic brick in the low backstop, Ricketts would be unwise to move the field against the wishes of the team’s loyal fans.

Source: http://www.usatoday.com/story/opinion/2013/05/08/killing-wrigley-field-will-kill-chicago-cubs-column/2145275/

Source: http://www.usatoday.com/story/sports/mlb/cubs/2013/05/01/chicago-cubs-move-wrigley-field-renovations-tom-ricketts-video-screen/2126331/

Audio Innovations-Growth Stage

Posted on by spr1324czarate
Rock-It 3.0 OrigAudio

We have learned in our Management 301 class that every product is subject to a life cycle. In its early stage, called introduction, the product is designed, developed with attention to quality, short production and limited models. The next stage is growth, where forecasting is critical, the product goes through competitive improvements, and distribution is enhanced. Then the product goes through maturity, in which standardization takes place. Finally, the product declines, where there is a lower product cost, differentiation decreases and capacity is reduced.

 
There are several products in the market that we can see going through the life cycle, but I have found an interesting article that makes reference to good examples of products on growth stage. They are the OrigAudio products, such as cardboard speakers, headphones and golf-ball-size amplifiers. According to the article in the Chicago Tribune by Ronald White, these OrigAudio products started being developed by Chicago entrepreneurs Jason Lucash and Mike Azymczk. These two marketers got their products in the market and successfully accomplished to be listed as one of the best inventions in 2009 by Times Magazine, just after a short period of time of their introduction (White, Ronald).
During the introduction stage the process design and development were critical, as well as they had short production run. The article mentions that since they are marketers, they don’t know about engineering, so they have been looking for people that can complete their team by helping them to bring their innovating ideas to life. Now, in the growth stage the entrepreneurs have been working on enhancing distribution. One of their most important decisions was moving to California. According to the article, by moving closer to the Pacific, great benefits were acquired by OrigAudio such as; decrease on transportation costs of inputs from China. But mostly, because the region with core surf and skate crowd represents a good market for them, to increase sales. In order to accomplish their goals they have been and will continue hiring more employees. Also they are working in more innovating designs for their speakers, headphones and amplifiers (White, Ronald). Finally, they are forecasting to have $5 million on sales this year, a totally different amount than in 2010, when they had just $700,000 in revenue (White, Ronald). But it makes sense since they had $3.5 million revenue in 2012 .
Some other OrigAudio products in the market, mentioned in Ronald’s article, are:

  • The Fold and Play speakers, which looks like a Chinese restaurant, take out box.
  • The Rock-It, which according to the article, includes a piece of the size of a marshmallow peep candy.

It looks like these entrepreneurs from Chicago are doing a good job in the growing stage of their products, since they are working on the competitive improvements and options.
Do you think they will be able to stretch their products’ life cycle enough for OrigAudio to earn and keep a good place in the market?
What would be your recommendations for these entrepreneurs to maintain their business growing?

Source:

http://www.chicagotribune.com/business/breaking/la-fi-socal-design-20130510,0,5421129.story

Starbucks: Getting Big but Staying Small

Posted on by spr1323kpavich

“How do you get big but stay small?” Starbucks CEO, Howard Schultz, recently discussed the keys to the immense success and growth of the company. Focusing on operating with the goals of the small, 100 employee company that Starbucks began as is essential, no matter how large the scope of the company gets. Sometimes success can come from the simplest of goals; Schultz discloses that the secret to “getting big while staying small” is focusing on customers as individuals, one cup of coffee at a time.

When it comes to strategy and operations decisions, Starbucks is obviously not competing for cost leadership. Every time I grab a latte and see that my total is $5.14, I flinch a little at the cost. Then when my coffee is handed to me, I breathe it in, take a sip, and say, “Oh, but it’s so worth it.” Hence, their success, for the quality and product differentiation of  a Starbucks cup of coffee is what keeps loyal customers coming back day after day. With suppliers of the highest grade coffee from 30 different countries, Schultz provides that Starbucks’ greatest goal is “to stay committed to our coffee core.” Not only do they maintain the best quality coffee by doing this, but they also ensure that their each and every action is sensitive to the needs of both the environment and the farmers. Treating the farmers as partners supports one of Starbucks’ most fundamental missions, to maintain the importance of every employee as an asset to the company. Further considering the environment, the recycling efforts and introduction of reusable cups are constantly improving.

With companies that have such continued success as Starbucks, I often assume that they got big and then just stayed that way. But, in reality, a commitment to innovation as well as social perception is essential to truly growing as a company. Starbucks has no shortage of either; with more product lines, global expansion, and ethical efforts than virtually any other coffee supplier, the company ensures that they provide they next best thing before anyone else. From K-cups to the newly released Vismo system, VIA ready brew coffee to the new Veranda blend, customers always have a fresh taste to try. In addition to trying these coffees, thousands of customers also tried a new way to purchase it. The Starbucks mobile app allows for purchases and account management.

Whether the motivation is impeccable quality or the convenience of a store being located on every corner, the numbers prove that customers think very highly of Starbucks. With global revenues of $13.3 billion in 2012, reflecting a 14% increase from the prior year, Starbucks is hitting record highs in sales.

If you are a Starbucks addict, do you take into consideration the ease of mobile technology or the benefits of the loyalty program when buying coffee? Or do you remain loyal simply because the coffee tastes that good? If you steer clear of Starbucks, would the environmental or social efforts have the ability to make you reconsider?

 

Sources:

Starbucks CEO Schultz on Digital Innovation: http://www.usatoday.com/story/money/business/2013/04/24/starbucks-howard-schultz-innovators/2047655/

Starbucks: FY 12 Annual Report: http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-irhome

Taking the guesswork out of Supply Chain Management

Posted on by Glenn Joseph


Fuel consumption represents nearly 37% of average per-mile trucking costs.  In today’s time, with the advancement of technology, more and more companies are tapping in to technologies that allow for better risk management to improve efficiency and lower the risk of avoidable scenarios that were once considered “the cost of doing business.”  Many large companies such as Procter & Gamble and Whirpool have begun working with companies such as Breakthrough Fuel, which work with many shippers across the country to help provide strategy on fuel management.

Clients using Breakthrough Fuel’s model only pay actual fuel costs for particular routes on particular days, this allows for a savings on fuel consumption.  Breakthrough Fuel also has multiple locations from which a manufacturer can ship from which allows manufacturers to ship based on distance from their destination or the cheapest trucking costs.  To help aid in the transfer of shipments, there has been mass improvements to inventory tracking such as with the use of radio frequency identification (RFID) technology.

With the use of RFID technology and GPS, shippers can know exactly where a certain item is within a container.  This use of RFID chips helps alleviate errors in packaging and shipping such as when working with
parts for bigger items.  Think about a time where you will be able to place all of your groceries in a shopping cart at the supermarket and as you walk out, an RFID scanner will automatically scan all your groceries for you and display a price for each item without the hassle of you having to wait in line.  With the use of RFID technology I really believe that soon that is how our shopping will be.  What do you think are some other good uses for RFID technology?

Firms that ship in less-than-truckload (LTL) amounts need to make sure that they are shipping goods quickly in order to meet the high demand from their customers.  This idea of using LTL services provides shippers a way to send out shipments more quickly but at a higher price.  With the use of RFID technology, a shipper can carry multiple loads from different companies and be able to manage and control where each individual package gets delivered.  Say Walgreens and Dominick’s both need a certain brand of product, the manufacturer can use a logistics management company such as MIQ Logistics to make sure that their product gets to both Walgreens and Dominick’s stores in a certain location with the help of RFID chips to track and monitor the packages.  Certain transportation companies even provide their drivers with mobile devices to manage the inventory within their truck.  Shippers are working on delivering shipments damage free, within a reasonable amount of time, and with confidence that their shipment will arrive in the right location when needed.

What can you see as the advantages or drawbacks to using the LTL technology described above? Do you see any ways of improving this system?

 

 

Sources:

“Science Comes To Shipping.” Fortune Magazine 8 Apr. 2013: S1-S4. Print. (Also available here: http://www.timeincnewsgroupcustompub.com/sections/130408_Freight.pdf)

 

My Old Kentucky Home: Lexus Production Moves to US

Posted on by spr1322mjamil

This past week Toyota announced that it will begin producing its Lexus luxury car in the United States for the first time. The company will invest over $500 million to move production of the Lexus ES 350 luxury sedan to its existing plant in Georgetown, Kentucky. Until now the plant in Kentucky, Toyota’s oldest and largest in the United States, produced the flagship Toyota Camry, as well as the Avalon and Venza. The Lexus ES 350 shares underpinnings with the Camry and Avalon, making the transition somewhat easier. This aspect is just one of several strategic implications of the move of Lexus production to the United States.

While it’s parent is fully Japanese, Lexus is an American child, for many years the luxury car was available only in the United States. This focus on the American market led Lexus to the top of luxury car sales every year from 2000 to 2010. In recent years, however, Toyota has watched BMW and Mercedes Benz pass it in luxury car sales and showing little evidence of slowing down. In my opinion this factor played a role in Toyota finally deciding to move the production of Lexus to the United States. As the president of Toyota, Akio Toyoda, said, the company plans to “give regions greater autonomy to make the products their customers want.” By moving the production of the ES 350 to the United States, I believe Toyota will be able to more closely monitor how Lexus is doing compared to BMW and Mercedes Benz. The company can also make production changes more effectively and efficiently at its plant in Kentucky. This high involvement with its target consumers should aid Lexus as it tries to regain its spot as the top luxury car in the United States. The move of production also helps protect Toyota from the Japanese economy and possible disastrous production issues.

From an operations management viewpoint, I think that Toyota is much better off by moving the production of the Lexus to the United States. The ES 300 is essentially an American car, it is not nearly as popular in Japan as it is in the US, therefore it made little sense to have it produced half a world away from where it was being sold. There are no economic benefits since there is an exchange rate penalty for Japanese automakers. Additionally, the 2011 earthquake and tsunami in Japan had devastating effects on production. This disaster revealed just how vulnerable Toyota and other Japanese automakers are, and in my opinion, played a key role in Toyota moving the production of Lexus to the United States. By having all of it’s operations and production in one place, Toyota can become more efficient and continue being a leading automaker.

Do you think it was a good decision by Toyota to move the production of Lexus to the United States?

Will this lead other foreign carmakers to move to America and what affect will that have on the production of American cars?

 

Sources

http://www.nbcnews.com/business/toyota-investing-over-500m-launch-us-lexus-production-1B9519106

http://www.nytimes.com/2013/04/20/business/toyota-will-make-lexus-es-350-in-kentucky.html?_r=0

http://www.bloomberg.com/news/2013-04-19/toyota-to-make-lexus-in-kentucky-amid-localization-push.html

 

Playboy Plans to Open Club in India

Posted on by spr1332mmadrid

(FILES) In this photograph taken on July 23, 2012, Indian Bollywood film actress Sherlyn Chopra poses during a press event for the first Indian woman ...

AFP – Getty Images file

(FILES) In this photograph taken on July 23, 2012, Indian Bollywood film actress Sherlyn Chopra poses during a press event for the first Indian woman to pose nude for ‘Playboy’ magazine in Mumbai. Plans to open India’s first Playboy club in coastal Goa state have hit a stumbling block.

 

Playboy, the magazine, has many connotations associated with it. By and large it has been a streamlining magazine brand for over 50 years and continues to grow. Due to the companies progressive popularity Playboy opened Playboy clubs, which feature female waitresses in black satin bodices, bow ties, cuffs, and bunny ears. While the clubs promote a healthy, classy atmosphere, they have increasingly been growing around the world. In fact, Playboy has been in talks to open a new club in India, off the coast of Goa. The club would be the first in India and would feature the waitresses in a dress more adapted to the Indian culture.

 

However, talks have been halted after the local politicians have vetoed the license to allow Playboy to move in and set up the club. Local authorities have been on record as saying that if the government does in fact approve the license, they are also in “support for prostitution in the area”, and that, “Playboy promotes vulgarity”. Many local residents and lawmakers have even been as serious as threating to go on a hunger strike if the club opened up in Goa. The promoters for the Playboy brand in India have said they need to rework the contract and “technical glitches” before anything can be finalized. Additionally, they have said they plan on opening other Playboy clubs in different cities around India, and that they will continue to try to push for the club in Goa.

 

Furthermore, it should be noted that Playboy is trying to actively ensure that the dresses in the club do not offend Indian culture and that the club was intended to be a café where women could have “special privileges”. Those privileges were not revealed however. All of this coming in a time when India is pushing for a more restrictive atmosphere towards women. Even though many people are advocating towards creating a healthier environment aimed at the attitudes of women. A daunting challenge ahead for Playboy, one that seems very hard to overcome. Subsequently, the question then becomes whether or not Playboy chose to bite off more than they could chew. Sure, entertaining the idea of creating something people in India have not been introduced to seems legit. Nonetheless, Playboy stands in between a crossroads not only dealing with cultural norms, but with political agendas aimed in a different direction than what a Playboy club seemingly offers to customers.

 

Essentially it comes down to how upper management will control the club and ensure that boundaries are not overstepped. It is entirely possible for Playboy to succeed in those uncharted waters, but it will be based on how well the company with deal with the challenges ahead. Already steps are being made in the right direction by management and it can absolutely be successful in a touristy beach destination. In saying that, should Playboy aim at opening the club in an environment whose attitudes and views toward women are completely different than western culture? Did management make a poor choice in authorizing the go ahead for a club in India? Why not just open a club in a place where none of this would be an issue?  

 

 

 

 

 

 Source:

http://www.nbcnews.com/business/bunnies-playboy-kind-get-cold-reception-indian-state-1B9518660