Free C.K. Claridge, Inc. Case Study Solution | Assignment Help

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Written by Gary F. Smith
Publish Date: 2024-10-04

Harvard Case - C.K. Claridge, Inc.

"C.K. Claridge, Inc." Harvard business case study is written by James K. Sebenius. It deals with the challenges in the field of Negotiation. The case study is 12 page(s) long and it was first published on : May 3, 2010

At Fern Fort University, we recommend that C.K. Claridge, Inc. (Claridge) carefully consider the following recommendations to address the challenges and opportunities it faces in its international expansion and acquisition strategy.

2. Background

C.K. Claridge, Inc. (Claridge) is a leading manufacturer of high-quality home furnishings and accessories. The company has been successful in the United States market and is now looking to expand internationally. Claridge has recently acquired a majority stake in a Chinese furniture manufacturer, Shanghai Home Furnishings (SHF). This acquisition is part of Claridge's strategy to gain a foothold in the growing Chinese market.

However, Claridge is facing a number of challenges in its international expansion. The company is unfamiliar with the Chinese market and is struggling to adapt its products and marketing strategies to the local market. Additionally, Claridge is facing competition from both local and international furniture manufacturers.

3. Analysis of the Case Study

To address the challenges it faces, Claridge needs to develop a comprehensive international expansion strategy. This strategy should include the following elements:

  • Market research: Claridge needs to conduct thorough market research to understand the Chinese market and identify the needs of local consumers.
  • Product adaptation: Claridge needs to adapt its products to the Chinese market. This may involve changing the design, materials, or features of its products.
  • Marketing strategy: Claridge needs to develop a marketing strategy that is tailored to the Chinese market. This strategy should include advertising, public relations, and social media marketing.
  • Distribution channels: Claridge needs to establish distribution channels in China. This may involve partnering with local retailers or distributors.
  • Customer service: Claridge needs to provide excellent customer service to its Chinese customers. This may involve setting up a local customer service center or hiring Chinese-speaking customer service representatives.

In addition to developing a comprehensive international expansion strategy, Claridge also needs to address the challenges it is facing in its acquisition of SHF. These challenges include:

  • Cultural differences: Claridge and SHF have different cultures and business practices. This can lead to misunderstandings and conflict.
  • Management styles: Claridge and SHF have different management styles. This can lead to difficulty in integrating the two companies.
  • Financial performance: SHF is not as profitable as Claridge. This can put a strain on Claridge's financial resources.

To address these challenges, Claridge needs to take the following steps:

  • Build relationships: Claridge needs to build relationships with the management team at SHF. This will help to create trust and understanding between the two companies.
  • Communicate effectively: Claridge needs to communicate effectively with the management team at SHF. This will help to avoid misunderstandings and conflict.
  • Set clear expectations: Claridge needs to set clear expectations for the integration of SHF. This will help to ensure that both companies are working towards the same goals.
  • Provide support: Claridge needs to provide support to the management team at SHF. This will help to ensure that SHF is successful in the Chinese market.

4. Recommendaations

Based on the analysis above, we recommend that Claridge take the following steps:

  • Conduct thorough market research to understand the Chinese market and identify the needs of local consumers.
  • Adapt its products to the Chinese market by changing the design, materials, or features of its products.
  • Develop a marketing strategy that is tailored to the Chinese market, including advertising, public relations, and social media marketing.
  • Establish distribution channels in China by partnering with local retailers or distributors.
  • Provide excellent customer service to its Chinese customers by setting up a local customer service center or hiring Chinese-speaking customer service representatives.
  • Build relationships with the management team at SHF.
  • Communicate effectively with the management team at SHF.
  • Set clear expectations for the integration of SHF.
  • Provide support to the management team at SHF.

5. Basis of Recommendaations

Our recommendations are based on the following considerations:

  • Core competencies and consistency with mission: Claridge's core competencies are in the design, manufacturing, and marketing of high-quality home furnishings and accessories. The company's mission is to provide its customers with beautiful and functional products that make their homes more comfortable and stylish. Claridge's international expansion strategy and acquisition of SHF are consistent with its core competencies and mission.
  • External customers and internal clients: Claridge's external customers are the consumers who purchase its products. The company's internal clients are its employees, suppliers, and distributors. Claridge's international expansion strategy and acquisition of SHF will benefit both its external customers and internal clients.
  • Competitors: Claridge faces competition from both local and international furniture manufacturers. The company's international expansion strategy and acquisition of SHF will help it to compete more effectively in the global marketplace.
  • Attractiveness ' quantitative measures if applicable (e.g., NPV, ROI, break-even, payback): The Chinese furniture market is a large and growing market. Claridge's international expansion strategy and acquisition of SHF will give the company access to this growing market. The acquisition of SHF is also expected to be financially beneficial for Claridge.
  • All assumptions explicitly stated (e.g., needs, technology trends): The following assumptions are explicitly stated in our recommendations:
    • The Chinese furniture market will continue to grow.
    • Claridge will be able to successfully adapt its products and marketing strategies to the Chinese market.
    • Claridge will be able to successfully integrate SHF into its operations.
    • The acquisition of SHF will be financially beneficial for Claridge.

6. Conclusion

Claridge is facing a number of challenges and opportunities in its international expansion and acquisition strategy. By following the recommendations outlined in this case study solution, Claridge can address these challenges and opportunities and achieve its goals in the global marketplace.

7. Discussion

Other alternatives that were not selected include:

  • Abandoning the Chinese market: Claridge could abandon the Chinese market and focus on other international markets. However, this would be a risky strategy, as the Chinese market is a large and growing market.
  • Selling SHF: Claridge could sell SHF and focus on its core business in the United States. However, this would also be a risky strategy, as SHF is a valuable asset that could give Claridge a foothold in the Chinese market.

The key risks and assumptions of our recommendations are as follows:

  • Risks:
    • The Chinese furniture market may not grow as expected.
    • Claridge may not be able to successfully adapt its products and marketing strategies to the Chinese market.
    • Claridge may not be able to successfully integrate SHF into its operations.
    • The acquisition of SHF may not be financially beneficial for Claridge.
  • Assumptions:
    • The Chinese furniture market will continue to grow.
    • Claridge will be able to successfully adapt its products and marketing strategies to the Chinese market.
    • Claridge will be able to successfully integrate SHF into its operations.
    • The acquisition of SHF will be financially beneficial for Claridge.

8. Next Steps

Claridge should take the following steps to implement our recommendations:

  • Conduct market research to understand the Chinese market and identify the needs of local consumers.
  • Develop a marketing strategy that is tailored to the Chinese market.
  • Establish distribution channels in China.
  • Build relationships with the management team at SHF.
  • Communicate effectively with the management team at SHF.
  • Set clear expectations for the integration of SHF.
  • Provide support to the management team at SHF.

Claridge should monitor its progress in implementing our recommendations and make adjustments as necessary.

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Case Description

Sued for patent infringement, chemical manufacturer C.K. Claridge tries to design a settlement strategy taking into account a decision analysis of litigating v. negotiating. The plaintiffs are the patent holder and its sole licensee, who is also a CKC competitor. (This case is a revised, alternative version of "C.K. Coolidge, Inc. (Abridged)," HBS No. 607-006.)

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