The Vermont Teddy Bear Company
Essay by 24 • December 8, 2010 • 933 Words (4 Pages) • 1,586 Views
The Vermont Teddy Bear Company
For the way that I viewed the Internal Scanning process for which affected the company the most; I chose the following points from the case study and I have also provided my reasoning of why as well. I have also filled in a chart from http://thatcher.cc/TIU/tiu%20stratman/ifas.htm and I also have included it. The list is as follows:
„| Confusion with the CompanyÐŽ¦s tagline
„| Two different CEOÐŽ¦s in a short time period/ different views of operation
„| Changes in retail locations
„| Changes in the competing marketplaces
As for the chart, please review it below:
The company changed their name from the ÐŽ§Vermont Teddy Bear CompanyÐŽÐ to ÐŽ§The Great American Bear Company.ÐŽÐ (Wheelen, 22-4, 22-16) The confusion doubled when similar products were offered by a competitor. (Wheelen, 22-4) This caused a great decrease in the sales of the Bear-Gram.
The original intent for the name change was to increase sales and ÐŽ§to broaden appeal and to take advantage of the national and international distribution opportunities.ÐŽÐ (Wheelen, 22-4) The company had intitally thought the name ÐŽ§Vermont Teddy Bear CompanyÐŽÐ wasnÐŽ¦t as recognized out West; so therefore it would not make that much of a difference. They were wrong on this account as well; when they realized the mistake, they quickly returned to their original tagline: ÐŽ§The Vermont Teddy Bear CompanyÐŽÐ instead of ÐŽ§The Great American Bear Company.ÐŽÐ (Wheelen, 22-4, 22-16)
Other Internal changes included having the CEO change twice in only a matter of a few years. The CEOÐŽ¦s were R. Patrick Burns and Elisabeth Robert. R. Patrick Burns and along with a newly format management team, they decided that they wanted to spread and develop growth for the company. They decided the Bear-Gram business should have less emphasis, and focus it more on other distribution channels. (Wheelen, 22-4) The management team had also came up with a new plan for the next five years. This plan included new stores and to make the current catalog bigger.
The new stores were opened up in Shelburne, Vermont (this was the factory store, it became a high traffic tourist destination), a second store was in North Conway, New Hampshire, a third store in New York City, New York, and the fourth store was opened up in Freeport, Maine. The new stores and bigger catalog were not as profitable as the company had hoped. (Wheelen, 22-4, 22-5)
Due to the consistence decline performance of the company, R. Patrick Burns resigned as CEO and Elisabeth Robert then picked up the reigns. Elisabeth Robert tried to switch the focus back to the Bear-Gram business and made the statement about the company was competing in the wrong marketplace. In her statement the marketplace that they belong is the ÐŽ§gift & impulse business,ÐŽÐ and that ÐŽ§This is a completely different marketplace. Our competitors are the people who sell chocolates, flowers, and greeting cards. We target the last minute-shopper who wants almost instant delivery.ÐŽÐ (Wheelen, 22-4 ÐŽV 22-10)
As for the way that I viewed the External Scanning process for which affected the company the most; I chose the following points from the case study and I have also provided my reasoning of why as well. I have also filled in a chart from http://thatcher.cc/TIU/tiu%20stratman/efas.htm and I also have included it. The list is as follows:
„| Confusion with the CompanyÐŽ¦s tagline
„| Competition put out similar products
„| Competition with similar
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