...India, and its forays into global markets. The case details the growth of Fiat, the problems the company faced, and the strategies it adopted to tackle these problems. It discusses the alliance between the two companies, and the benefits and costs from the alliance for each company. India The fiat Group’s association with the Indian automobile market began in 1905 when it appointed Bombay Motor Cars Agency as the sales agent for its cars in India. In the 1950s, the Fiat Group entered into a license agreement with India-based Premier Automobiles Ltd. (PAL) to manufacture its cars. Fiat Auto formally entered the Indian market in 1997 through a joint venture with PAL. The joint venture would benefit both parties; TM would gain in terms of better accessibility to technology, design, and global markets, while for Fiat Auto, it would mean a larger presence in India, one of the world‘s fastest growing auto markets, without heavy investments. Also, with Honda, Toyota, GM, Mitsubishi, M&M/Renault, Nissan, Skoda, etc., chalking out plans to enter the small car segment, especially the premium small car segment, it seemed likely that the TM-Fiat Auto joint venture would face intense competition in the coming years. Fiat’s Benefits in Partnership The Fiat Group‘s auto division used mass production to keep production costs low. By the late 1950s, the Group had set up several new manufacturing plants abroad for automobiles as well as for farm machinery. In the 1970s, the Fiat Group‘s numerous...
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...Metro Cash & Carry A German Wholesaler’s foray into the Indian Markets Case Analysis Table of Contents S No. | Topic | Page No. | 1 | Introduction | 3 | 2 | China | 5 | 3 | China – Challenges | 5 | 4 | Russia | 6 | 5 | Russia – Challenges | 6 | 6 | India | 7 | 7 | India – Challenges | 8 | 8 | Recommendations | 9 | 9 | Conclusion | 9 | 10 | Appendix A | 10 | Introduction & Business Model The Metro Group is one of German’s largest trade and retail group player which. It is divided into four major business units: 1. Real/Extra - an everyday retail supermarket 2. Kaufhof - an up market department store chain 3. Media Market/Saturn - Europe’s leading electronics retail chain 4. Cash & Carry - wholesale distribution of goods The first ‘Metro Cash & Carry’ store opened in 1964 and it has been on an expansion route ever since. It initially sold only dry goods and then ventured into fresh goods & non-food items. Over a period of time, the product offerings increased leading to an increase in the customer segment. By 2003 they accounted for 240 Billion Euros of the total German wholesale market. Metro C&C worked differently than the traditional wholesale system where they sold food and non-food items in large warehouses on a cash basis. Their main customers were restaurants, bars, cafes, bakeries, SMEs and other food retailers. They issued electronic cards to the customer on the basis of which they...
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...NEW VENTURE CREATION (MBSA 2313) Case Study: Holista CollTech: Direction for Focused Growth INDIVIDUAL ASSIGNMENT LECTURER’S NAME: DR. ADRIANA MOHD. RIZAL SECTION: 02 COURSE: MBA GENERAL PART TIME (JB) NAME: SITI ZAINAB BINTI ZAINOL MATRIX ID: MBS 141025 Case III Assignment Questions (Holista CollTech): Case Summary In December 2009, Holista CollTech Ltd. was established as a biotechnology company and its core business was the production of ovine collagen and Kacip Fatimah extracts. The ovine collagen was used mainly in a broad range of food, health supplements, cosmetics, and medical products, while Kacip Fatimah extracts were ingredients for food and supplements products. Holista CollTech's corporate vision was to be a global player in the multi-billion dollar collagen and herb extract markets. However, it faced fierce competition in the collagen market which was already dominated by a number of large multinational firms, and in the herb extract market in which competition was becoming increasingly intense due to the rising number of imitators. This was a challenging situation for Holista CollTech Ltd. since these competitions could prevent the company from achieving its objective to increase its control in these two markets. 1. What were Holista CollTech’s businesses? What were the company’s long-term objectives? The Holista CollTech’s businesses can be divided into two catagories. The first business is R&D...
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...Global alliance: two or more countries joining globally. In February 2 1996, Sprint Corporation, Deutsche Telekom and France Telecom have created a global alliance in telecommunications that offers advance voice and data services to businesses, telephone carriers and consumers around the world. Cross Border Alliance international merger and acquisition with partners. Global Sourcing: describe practice of sourcing from the global market for goods and services across international boundaries. Global sourcing is designed to reduce costs and increase efficiency by buying products and services all over the world. Joint Venture: joint venture is typically a business agreement between two or more businesses for the purpose of a mutually beneficial sales transaction for a product or service. BHPBilliton is a joint venture with a British Company and an Australian company formed to combine the resources exploration competencies of both companies. IJVs: international...
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...and support in completing the project. We would like to express our gratitude towards BITS Pilani for their kind co-operation and encouragement which helped us in completion of this project. GV Hemanth Kumar G Visruth Reddy Sourav Mukherjee Abhinav Chitre Pinky Saini Contents INTRODUCTION 3 PORTFOLIO OF SL PACKAGING PVT LTD. 4 POLITICAL ENVIRONMENT 6 Political Environment and risks in Australia: 6 Political Environment and risks in South Africa: 6 UNITED STATES 10 CULTURE 12 UNITED STATES: 12 AUSTRALIA: 12 SOUTH AFRICA: 13 HOFSTEDE ANALYSIS: 13 ENTRY STRATEGIES 16 SUPPLY CHAIN STRATEGIES 20 MARKETING STRATEGY 21 FOREX ISSUES 28 CONCLUSION: 30 REFERENCES 30 INTRODUCTION The jute trade happens around Bangladesh and the Indian State of West Bengal. The region around...
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...New Zealand Journal of Asian Studies 8, 1 (June, 2006): 17-40. DOING BUSINESS IN INDIA RODNEY SEBASTIAN ASHVIN PARAMESWARAN Australian National University FAIZAL YAHYA1 National University of Singapore In 1991, India’s closed economy opened up and attracted investments from several multinational companies (MNCs) around the world. As a result, people began to seek information about doing business in India, giving rise to a plethora of literature aimed at assisting them. Generally there are two prominent views of India. One is that India is a poor, under-developed country, lacking infrastructure and rife with religious superstitions, corruption and violence. The other is that India has an under-rated affluent and intellectual class, an advanced Information Technology (IT) sector and a rich culture. Neither view is entirely accurate. For those planning to do business in India, it is important that they are well informed of the real, complex situation in order to make calculated investments. Knowledge about doing business in India has to be constantly revised, updated and eradicated of biased or stereotypical views. A symptom of the maturity of this knowledge is recognition that the Indian business environment is amorphous. Conditions vary from state to state, industry to industry and region to region. This paper seeks to examine some aspects of this complexity and suggests how prospective investors could use the knowledge generated. Apart from Ramachandran’s (2000) acknowledgement...
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...an innovator in the area of footwear for the sport with notable examples including development of the Copa Mondial moulded boot used for matches on firm dry pitches for almost forty years. The studded equivalent was named World Cup follow in celebration of the 1978 tournament won by Argentina, one of the nations it supplied at the time. Some of the famous football teams currently sponsored by Adidas include Real Madrid, Milan, Middlesbrough, Palmeiras, Chelsea, River Plate, Liverpool, Marseille, Universidad de Chile, Bayern Munich, Schalke 04, Benfica, Wolfsburg, Galatasaray, Panathinaikos, Derby County, Ajax and Lokomotiv Moscow among others. Adidas became renowned for advancing the Predator boot design developed by ex-Liverpool and Australian...
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...hydrogenated cooking fats company to leading integrated business, technology and process Solutions Company. Wipro Technologies is widely recognised on a global scale and is the largest independent R&D service provider throughout the world. Wipro is also at the forefront of leading IT and software companies of India. Achievements – Azim Premji is the Chairman of Wipro Technologies and is among the richest Indian for past so many years. In year 2005, he was honoured with Padma Bhushan. He is a leading icon among the Indian businessmen and his story has inspired many budding entrepreneurs. He has achieved several milestones in his career and he was vote among the 20 most powerful men in the world in 2000. He was in the list of 50 richest people of the world from 2001 to 2003. He was also rated among the 100 most influential people in the world in 2004 by Times Magazine. He is among the list of richest Indian for so many years. He was honoured with Padma Bhushan in 2005 by the government of India. About wipro Wipro Limited (formerly Western India Products Limited) is an Indian multinational provider of Information technology (IT)...
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...TABLE OF CONTENT a) Introduction b) Corporate diversification c) Reasons for Diversification d) Types of diversification strategies e) GOAL of diversification f) RISK of diversification g) Corporate diversification of TATA group h) List of diversification of TATA group i)CONCLUSION Introduction Diversification is a form of corporate strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets. Diversification can occur either at the business unit level or at the corporate level. At the business unit level, it is most likely to expand into a new segment of an industry that the business is already in. At the corporate level, it is generally via investing in a promising business outside of the scope of the existing business unit. Diversification is part of the four main growth strategies defined by the Product/Market Ansoff matrix:[1] [pic] Ansoff pointed out that a diversification strategy stands apart from the other three strategies. The first three strategies are usually pursued...
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...Question 1 Using this case and the cultural dimensions explored in this chapter, discuss some of the way in which Australian and New Zealand are members of cultures very different from any other in Asia. Differences in the behavior of individuals and groups within an organisation in foreign subsidiaries can be a result of differences in societal or sociocultural variables of culture such as religion and language. These variables affect cultural dimensions. Which in turn affect an individual’s motivation and expectations in the work place. The predominant religion in Indonesia is Islam, while Australia is considered to be Mixed Christian and New Zealand Roman Catholic (Deresky 2014). Companies operating in Muslim countries or that have a large Muslim workforce are expected to make provisions for pray time and religious commitments such as Ramadan. In Australia and New Zealand Christianity employees typically have a number of day off during religious holidays, and the respect for people not wanting to work on Sundays (Deresky 2014). The official language in Indonesia is Bahasa Indonesia (Riza 2008), and in Australia and it is English (Australian Bureau of Statistics 2011) The GLOBE project investigates how cultural variables are related to organizational practices. GLOBE dimension scores of Australia and Indonesia are as follows. Assertiveness: Australia 4.28 Indonesia 3.86 Future orientation: Australia 4.09 Indonesia 3.86 Performance orientation: Australia 4.36 Indonesia...
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...0 Contents Executive Summary ..................................................................................................................................... 3 1. Introduction ......................................................................................................................................... 6 2. Trade in Goods ................................................................................................................................... 7 2.1 Bilateral Trade between Australia and China .............................................................................. 7 2.2 South Australian Trade with China .............................................................................................. 8 2.2.1 Disaggregated Analysis of South Australian Trade with China ........................................... 8 2.2.2 South Australia’s trade and comparative advantage ........................................................... 9 2.2.2.1 South Australia’s Revealed Comparative Advantage in comparison to other States and Territories .......................................................................................................................................... 12 2.2.2.2 2.2.2.3 Disaggregated Analysis of Key Agricultural Products ....................................................... 18 2.2.2.4 Possible Impacts of ChAFTA Commitments on Agriculture for South Australia ............... 20 2.2.2...
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...IntMk-CStud-4.qxd 26/05/2005 14:05 Page 563 section 4 case studies cases 4.1 Wal-Mart’s German Misadventure 4.2 Handl Tyrol: Market Selection and Coverage Decisions of a Medium-sized Austrian Enterprise 4.3 Blair Water Purifiers to India 4.4 A Tale of Two Tipples 4.5 Kellogg’s Indian Experience 4.6 Strategic Alliances in the Global Airline Industry: from Bilateral Agreements to Integrated Networks 4.7 GN Netcom in China 4.8 IKEA: Entering Russia 4.9 The ‘David Beckham’ Brand 563 571 574 583 586 590 594 599 604 case 4.1 Wal-Mart’s German Misadventure I don’t think that Wal-Mart did their homework as well as they should have. Germany is Europe’s most pricesensitive market. Wal-Mart underestimated the competition, the culture, the legislative environment. — Steve Gotham, retail analyst, Verdict Retail Consulting, October 20021 We screwed up in Germany. Our biggest mistake was putting our name up before we had the service and low prices. People were disappointed. — John Menzer, head of Wal-Mart International December 20012 ‘Don’t look now:’ low prices all year round! With thanks to Walmart 563 IntMk-CStud-4.qxd 26/05/2005 14:06 Page 564 section 6 case studies section 4 German blues For the world’s largest retailing company, Wal-Mart, Inc., the German market was proving difficult to crack. By 2003, even after five years of having entered Germany, Wal-Mart was making losses. Though Wal-Mart did not reveal these figures, analysts estimated...
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...History Of Tata Motors Tata Motors Ltd. is one part of the business conglomerate, Tata Group, and was formerly known as TELCO (Tata Engineering and Locomotive Company). The other ventures of Tata Group include Tata Steel, Tata Consultancy Services, Tata Technologies, Tata Tea, Titan Industries, Tata Power, Taj Hotels, and so on. Headquartered in Mumbai, India, Tata Motors is a multinational corporation accounting for 70% cumulative market share in the domestic commercial vehicle segment. Today, the company is the world’s second largest manufacturer of commercial vehicles, world’s fourth largest truck manufacturer and world’s second largest bus manufacturer. It is a dual-listed company, which is traded on both the Bombay Stock exchange as well as the New York Stock Exchange.. Information On Origin & Background Of Tata Motors Tata Motors was first established in 1935 as a locomotive manufacturing unit. The first commercial vehicle was manufactured in 1954, in collaboration with Daimler-Benz AG of Germany. In 1960, the first truck, quite similar to a Daimler truck, rolled out from the Tata factory in Pune. Ever since its launch, the truck became highly successful. However, the success of the commercial vehicles was just the beginning of the flourishing and booming future of Tata Motors. The company went ahead diversifying itself and took up other products as well. Apart from exporting heavy-duty trucks, the company decided to come up with lighter versions for the local...
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...1. Introduction This paper will examine the relationship between the dividend policy and stock price volatility based on the previous studies. Dividend policy is referred as a direction to the dividend paid out. In practice, we can through three aspects to show how the dividend policy is important. Firstly, in term of the clientele effect, the transaction cost and tax of investor position can exert an influence on whether dividend policy gains are preferred which means that dividend policy will exert an important influence on investors’ behaviour. Secondly, according to the signaling effect, dividend paid is the mean by manager to signal the new information to investor. And thirdly on basis of the agency theory, dividend policy would attribute to the conflict between the interests of management and interests of stakeholders. Through the different dividend policy, firms can use the earning to make scrip dividends, special dividends, share repurchase and non–pecuniary benefits. In 1961, Modigliani and Miller (MM) argue that, given perfect and efficient markets, the pattern of dividend payments by a business have no effect on shareholder wealth. The only way to maximum shareholder wealth is investment with a positive NPV. So depend on M&M theory, Atrill (2000) agrees that to pay a lower dividend will simply be compensated by an increase in share price through reinvestment. De Angelo and Masulis, Kim (1988) and Miller (1986) supported that dividend paid can greatly reduce...
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...Crawford School of Economics and Government The Australian National University and Christopher Findlay School of Economics University of Adelaide Abstract The last nine months has seen Chinese foreign direct investment in the Australian resource sector become an issue of policy interest. There are two big questions that the prospects of a significant rise in foreign direct investment (FDI) from China into the Australian resources sector have raised. Is the surge of FDI into Australian mining and energy consistent with achieving the traditional gains from foreign investment? And are there any particular problems associated with investment from foreign state-owned enterprises or state managed sovereign wealth funds? These are among the questions addressed in this paper. The paper argues that there are no issues that cannot be dealt with under the umbrella of the established test of ‗national interest‘ in managing the growth of Chinese FDI into the Australian minerals sector. It argues that a confusion has been introduced into policy over the questions of state-ownership and supplier-buyer relations in respect of Chinese investments and that clarifying these issues is likely to be important to Australia‘s capturing the full benefits from the growth of Chinese resources demand and longer term economic and strategic interests in China. Paper for Presentation to Crawford School Public Seminar, Seminar Room 1, Crawford Building, Australian National University, 12.30 pm, Thursday, 4...
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