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Cabela’s in the Land Down Under
Presenters
Courtney 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
•
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•
•
•
•
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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 doubletiered 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.
Research
&
Development
Special
Services
Manufacturing
Finance
Domestic
General Mgr.
Outdoor Apparel
International
General Mgr.
Australia
Hunting, Fishing,
Outdoor Apparel
Canada
Hunting, Fishing,
Outdoor Apparel
Domestic
General Mgr.
Home Furnishings
Purchasing
Purchasing
Purchasing
Purchasing
Marketing
&
Sales
Marketing
&
Sales
Marketing
&
Sales
Purchasing
Purchasing
Marketing
Accounting
Accounting
Accounting
Marketing
&
Sales
Marketing
&
Sales
Accounting
Accounting
Accounting
Diana Vaughn
Exit Strategy
• Methods of Exiting
the business
– Divestment
– Diversification
– Joint Venture
Ready to Execute
• Research
complete
• Budget set
• Staffing in
place
Questions?
If not, we will get the flock out of
here!