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Case Study: Chabros Itn'l Group
Exam 3 and 4
23
Other
Undergraduate 4
06/04/2013

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Cards

Term
Where does Chabros originate from? (pg 1)
Definition
Lebanon
Term
Why Chabros’ Italian partners sold their shares? (pg 2)
Definition
they found it difficult to adapt to the Saudi Arabian mentality and the Saudi's way of doing business
Term
Why Chabros bought a production plant? (pg 2)
Definition
sales exceeded production
Term
Why did Chabros decide to enter Qatar? (pg 2)
Definition
Qatar was attractive because it was a small natural-gas-rich country that was following the path of its neighbor, Dubai, in fast economic growth
Term
How did opening the second subsidiaries in UAE and Saudi Arabia affect Chabros? (pg 2)
Definition
increase sales volume and take advantage of lower prices associated with purchasing large quantities
Term
How did entering Egypt benefit Chabros? (pg 2)
Definition
to access a new market where it could sell its supply of lower quality lumber and veneer
Term
What was the reason of the drop in sales in 2009? (pg 3)
Definition
drastic fall in Chabros Dubai's sales
Term
How did the demand for lumber change compared to veneer in 2009? (pg 4)
Definition
veneer $3/sq metre
lumbar $1,000/cu metre
Term
How is the potential for lumber compared to veneer? (pg 4)
Definition
lumbar had more potential and freedom to grow its lumber business than its veneer business
Term
How did the distribution system of Chabros work? (pg 4)
Definition
Chabros intl Group's subsidiaries used their own trucks to distribute their products within the countries they operated in
Term
What were the transportation costs of Chabros as a percentage of the total cost? (pg 5)
Definition
4% to 10%
Term
Who are the local, regional, an global competitors of Chabros? (pg 5)
Definition
Local - small and medium sized hardwood/veneer companies
Regional - hardwood/veneer suppliers in MENA region level
Global - General Woods, Weston, Fritz Kohl
Term
What are the competitive advantages of Chabros? (pg 5-6)
Definition
varied and more customized wood products
distinctive strategic relationships with its suppliers
25 years experience
manufacturer and wholesaler
economies of scale
adapted to to its Western suppliers and MENA customers
Term
What is the advantage of being both a manufacturer and a wholesaler? (pg 5)
Definition
strategic flexibility
wide variety of wood, while selling cheaper than competitors
Term
What are the disadvantages of Chabros?
Definition
being a wood manufacturer
not working on image and brand name
Term
In which country does Chabros (pg 10)

make production
sell lower quality improved wood
Definition
make production - Serbia
sell lower quality improved wood - Egypt
Term
How much money did Chabros make from lumber and veneer in 2009? (pg 12)
Definition
lumbar - $55 million
veneer - $35 million
Term
What was the profit margin of Chabros in 2009? (pg 12)
Definition
4.2%
Term
Which city generated the highest sales for Chabros in 2009? (pg 12)
Definition
Dubai
Term
What was the amount of sales Chabros generated in 2009? (pg 12)
Definition
$90 million
Term
When do you use the following growth strategies? (pg 13)

market penetration
market development
product development
diversification
Definition
market penetration - same markets and same products
market development - new markets and same products
product development - same markets and new products
diversification - new markets and new products
Term
Chabros has a high market share in both lumber and veneer business in which countries? (pg13)
Definition
UAE and Qatar
Term
In which location Chabros has the highest number of subsidiaries? (pg 13)
Definition
Dubai
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