Jennifer Garcia

  • IkeaA corporate strategy article by Thunderbird students Marquita Blanding, Ankush Brahmavar, Tim Clarke, Jennifer Garcia, Stephanie Sharma and Jason Teague

    With approximately 500 million young adult consumers in India[1] and an affluent growth rate of 13% equaling USD 203 billion,[2] it would appear that Sweden-based IKEA can’t afford to delay its entrance into India any longer. A country that is accustomed to paying a higher price for the niceties that are afforded around the world, India has an educated, innovative, resource-rich base ready to ‘spend.’

    In January 2012, the Indian government amended FDI restrictions to allow foreign companies to own 100% of their retail ventures in the country.  This was a welcome change from the earlier ownership cap of 51%, as it paved the way for global retail chains like IKEA, Wal-Mart, and others to have full control of their Indian operations. But the market opening came with new restrictions that many retailers view as obstacles to its investment, including a requirement that foreign companies obtain at least 30% of their products from domestic small companies and cottage industries. In light of this rule, IKEA has expressed that local sourcing requirements were “concerning” and more easily met by food retailers such as Carrefour than a single-brand company like IKEA with global product ranges.[3]

  • Boston Beer CompanyA corporate strategy article by Thunderbird students Andrea Bly, Jennifer Garcia, Liang-Kuan “Albert” Ho, Steve Juntunen and Kara Nguyen

    Shares of The Boston Beer Company, Inc. (NYSE: SAM) closed Friday, December 16, 2011 at $103.05, up 40% since October. The company, who spearheaded the craft beer revolution in the US, has grown to produce over 32 varieties of beer under the company’s flagship brand, Samuel Adams Boston Lager and a variety of malt beverages and hard cider products under brand names Twisted Tea and HardCore Cider.

    Under its Samuel Adams line, Boston Beer Company leads the craft brewery industry with annual revenues of $500 million in 2010. They have outperformed the uninspired beer market this year, reporting solid increases in sales and profits every month in 2011. This exploding success in the specialty market occurred against the backdrop of dismal growth in the mass market. But even within the specialty segment, Boston Beer has outperformed rivals with 6.6% volume growth in 2011, compared to 5% growth in the craft beer category.

    This spectacular performance has attracted a lot of attention. Currently trading at 25 times the consensus earnings; should investors call it quits before a crash or will The Boston Beer Company be able to leverage recent success into sustainable growth?