...A CASE STUDY ON THE INDIAN SMALL CAR INDUSTRY Prof. Tapan Panda A Case Study on the Indian Small Car Industry A BRIEF OVERVIEW ON THE INDIAN SMALL CAR INDUSTRY If there is one big market that is forcing the global auto majors to think small, it is India. Until yesterday, all the world's auto-manufacturers expected to create success out of their midsize products. There were as many as five players in the mid car segment and just one--the Rs 7,956-crore Maruti Udyog Ltd (MUL)--in the small car segment. Suddenly Daewoo Motors India and Hyundai Motors India--are changing lanes midway, making the small car market as the pivot of their marketing strategy in India. Couple that with the fact that two domestic manufacturers--the Rs 10,074-crore Tata Engineering & Locomotive Co. (TELCO) and the Rs 223-crore Kinetic Engineering--are ready with similar indigenously-designed products to compete in this market The last two years has really been the period of war in the small car market The story Behind…. The auto majors read the market wrong. Since the small segment was dominated by MULwith a market share of 96 per cent and given that the Trans –national brands already had tried-and-tested mid-size models in Indian market, this segment was more attractive than the existing ones. This perceptual change was because of two reasons. • • The clutter in the large and midsize segment due to entry of many international players. The small segment grew faster than the mid-size one, driven...
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...Women face greater challenges at the workplace. Do you agree or disagree? Write an essay, giving reasons to support your viewpoint. A photograph recently caught my attention. It was a mother carrying her 18 month old daughter in one hand and a document in the other. What’s special about it? She is a member of the European Parliament, Licia Ronzulli, and this photograph was taken when she was addressing the parliament. This epitomizes modern motherhood, and takes multitasking to new dimensions. Just stringing together the two words “women” and “workplace” automatically conjures the third word in our mind- “Challenge”. But as work places are constantly evolving, what one perceives as a challenge is indeed changing. A few decades ago nurse , receptionist or secretary was all a working woman could aspire to be. Any woman who dreamed beyond was ridiculed and her integrity was questioned. Corporates viewed women as weaker and less committed than male counterparts. “Lady Candidates Need Not Apply”- was the common last line in job advertisements. Those 5 words in a ‘TELCO’ advertisement sparked Sudha Murthy to send the famous postcard to JRD Tata in 1974 saying “I am surprised how a company such as Telco is discriminating on the basis of gender”. When I first walked through TML factory, I wondered how Sudha would have felt 37 years before, knowing that hers were the first feminine footsteps there. Did she possibly know then that she had taken a giant leap for her kind in TELCO...
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...Daewoo Cars: Changing the Rules about How to Compete I. Introduction Daewoo-the South Korean corporation- was highly successful launched in entering the UK car market. It was successfully selling 35,000 vehicles in less of two years. This corporation continuously invests for £ 700 million in setting up a car factory in Britain, which considered to the large scale investment in design, development, and marketing and sales. In preparing the car launched, they were promoting themselves as ‘the biggest car company you’ve never heard of’. Daewoo was the second Korea’s bigger car maker and the 33rd largest business group and also has an aggressive plan for expansion and globalization. The pre-launched was stated the Daewoo presence and the market strategy in controlling the distribution chain by dealing direct customers. Daewoo’s market position was based on an innovative packaging of benefits and services around the car, a totally new approach to distribution, and the customer’s purchasing experience, and an emphasis on customer service. For evidence, Daewoo achieved 0.9 percent share of UK new car market by selling 10,000 vehicles within six month. The competitiveness in UK market car was fiercely challenging. According to the market research by Daewoo, motorist found that traditional motor dealers were not making customers feel welcome. The researches also found that one third of buyers were women. This market opportunity was used by Daewoo in implementing the...
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...Global Expansion Strategies of Two Korean Carmakers- Case Analysis B6110: Supply Chain Optimization and Outsourcing January 27, 2012 Two Korean Carmakers- Strategic Situations Daewoo and Hyundai are two Korean carmakers who enjoy many structural similarities. Yet the two are direct competitors in the Korean automobile industry, where they are jostling for position, pushing for economies of scale, and hoping to sure up a competitive advantage. Both Daewoo and Hyundai look to international expansion as their recipe for success. Each has formulated a specific expansion strategy in the past based on its particular market situation. Both Daewoo and Hyundai now look to international global expansion for future success. Expansion & Supply Chain The direct competition with each other in the Korean car market had an enormous influence on each firm’s past globalization strategies. The Korean automobile industry has been dominated by Hyundai since the 1970’s. By 1993, Hyundai had established a 50% market share in the Korean market, whereas Daewoo only held 20% (Bowon, 2005, p. 148). In 1993, Hyundai also enjoyed 58% of the market share of automobile exports by Korean companies, whereas Daewoo’s exporting efforts had failed (Bowon, 2005, p. 148). Moving forward from 1993, Daewoo and Hyundai took into account their competitive position against each other when deciding how to conduct their global expansion strategy. “Daewoo focused on expeditiously achieving...
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...“A PROJECT OF MARKETING PLAN” PRE SE NTE D T O PROF. DR. NADEEM AHMAD BASHIR PR ES ENT ED BY MAZHAR HUSSAIN I.D # 023111 ABDUL HAFEEZ I.D# 023117 MUDASSAR HAMEED I.D # 023392 MUHAMMAD NADEEM AHMAD I.D # 023114 Institute Of Management Sciences Lahore To the people who have worked tediously through the ages to uphold the principles of determination, commitment and devotion for the sake of humanity. ACKNOWLEDGEMENT We wish to place on record our indebtedness to the following people for the continuous support we received during the process of compilation of this report. In particular to Dr. Nadeem Ahmad Bashir, our teacher, for his unrelenting interest, keeping constant contacts and help that he gave during the process. We are also thankful to Daewoo people for providing material relating to this report. TABLE OF CONTENTS 1. Executive Summary 2. Daewoo International Corporation Introduction General Information Company Chronology Departments Management 1 2 3. Daewoo in Pakistan Introduction Why Daewoo in Pakistan? Start in Pakistan Investment 6 4. Services 5. Special Features 6. SWOT Analysis 7. Marketing Plan • • • • • • • • • Mission statement People vision Marketing objectives Target market Market positioning 8 9 10 11 8. Marketing Mix Product Place Promotion Price 13 9. Conclusion & Recommendations 15 Executive Summary The Diagnostic study on Daewoo Express Bus Service is indeed...
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...automobile industry. First, automobile industry is connected with many other relative industries. In addition, it is a labor intensive industry which needs a lot of fixed cost and the capital for further investment. These characteristics also evoke many alliances between the relative firms in order to reduce the costs. Second, rivalry among existing firms has become very fierce in this industry since the economy started to decline. One of the wise ways to get through this crisis would be the alliance strategy. 2. In the first JV, did GM and Daewoo have the necessary relational capabilities to make the JV work? In the first Joint venture between GM and Daewoo, I would like to say they fail to develop their relational capabilities. At the beginning, it is true that they had the relational capabilities in order to make the JV work. GM was willing to give their superior technology to upgrade Daewoo’s quality of product, and Daewoo was willing to help GM enter the small car market in both North America and Asia. However, it did not worked very well due to the poor communication. When the problems such as labor strikes and the poor quality of LeMans occurred, their efforts to overcome these problems were poor and uncooperative to each other. Daewoo argued that the poor sales were not primarily due to quality problems, but due to GM’s poor marketing efforts that had not treated the LeMans as one of GM’s own models. Further, Daewoo was...
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...CASE – 1 INTERNATIONAL CASE: MCDONALDS’S – SERVING FAST FOOD AROUND THE WORLD Ray Kroc opened the first McDonald’s restaurant in1955. He offered a limited menu of high-quality, moderately-priced food served in spotless surroundings. McDonald’s QSC&V (quality, service, cleanliness, and value) was a hit. The chain expanded into every state in the nation. By 1983 it had more than 6,000 restaurants in the United States and by 1995 it had more than 18,000 restaurants in 89 countries, located in six continents. In 1995 alone, the company built 2,400 restaurants, and by 2001 it had more than 29,000 restaurants in 121 countries. In 1967, McDonald’s opened its first restaurant outside United States, in Canada. Since then, international growth has been accelerate. In 1995, the “Big Six” countries that provide about 80 per cent of the international operating income are: Canada, Japan, Germany, Australia, France, and England. Yet fast food has barely touched many cultures. The opportunities for expanding the market are great, as 99 per cent of the world population are not yet McDonald’s customers. For example, in China, with a population of 1.2 billion people, there were only 62 McDonald’s restaurants in 1995. McDonald’s vision is to be the major player in food services around the world. In Europe, McDonald’s maintains a small percentage of restaurant sales but commands a large share of the fast-food market. It took the company 14 years of planning before...
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...The Baldwin-Wallace College Journal of Research and Creative Studies, Fall 2007, 1(1):12-24 Performance of the South Korean Automobile Industry in the Domestic and United States Markets Robert R. Ebert1 and Mariel Montoney2 1 2 Department of Economics, Baldwin-Wallace College, 275 Eastland Rd., Berea, OH 44017; Economics Program, Baldwin-Wallace College, 275 Eastland Rd., Berea, OH 44017 The South Korean automobile industry has undergone considerable growth since its inception in the 1960s. That growth was initially driven by domestic demand. Since the Asian financial crisis of 1997, however, production increases for the South Korean automobile industry have been primarily a function of export sales. The research presented here explores changes in the structure of demand in its two principal marketsdomestic South Korean market and the United States market. Two models of demand are developed- one for each of the markets. Several macro economic variables are identified that have a statistically significant relationship with the demand for automobiles in each of the markets. An interesting finding of the research is that the factors apparently driving demand are different in the two markets suggesting the structure of automobile demand in South Korea differs significantly from the demand for that country’s vehicles in the United States. A major challenge facing the South Korean automobile industry is how to utilize its capacity when confronted with...
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...Organizational Impact Paper Q/I361 June 12, 2014 Nikki Jackson Organizational Impact Paper Innovation can transform and possibly reinvent services and products to accommodate the needs and demands of the market. Today innovation is taking organizations and rewiring them for growth. In a time of change and reduce profits, organizations are retooling and finding the need to modify business strategy. Without innovative programs or ideas, change is difficult for a business however; change can’t be avoided in this competitive world of business. We will evaluate the impact of innovation on South West Air Line, General Motors, and JCPenny, AT&T, and talk about the impact on strategy, process, product, or services with each type of organization. All organizations noted above use innovation and creativity as the main source for improving business strategy. Southwest Airlines Southwest airlines are a company that started with very little money back in 1971 that now operates on the offensive as an innovator. The innovation that made Southwest Airlines prevalent is the way they can offer lower fares, the regularity of flight accessibility and on time departures and arrivals, and their exceptional safety record. Southwest is always thinking innovation which keeps the airline in the forefront in the industry, while using their innovated thinking the airlines acquired jet fuel at a lesser amount for future use; this is clever innovative and creative thinking. “Tickets less travel...
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...A PROJECT REPORT ON “STUDY OF AFTER SALES SERVICES” UNDERTAKEN AT EMPIRE MOTORS PRIVATE LIMITED. (NAVSARI) Submitted By: PRAFFUL R VADNARE ID: 06MBA60 Guided By: JITESH PARMAR MBA PROGRAMME (Year 2006-08) SHRIMAD RAJCHANDRA INSTITUTE OF MANAGEMENT AND COMPUTER APPLICATION SHRIMAD RAJCHANDRA INSTITUTE OF MANAGEMENT AND COMPUTER APPLICATION. COLLEGE CERTIFICATE This is to certify that the summer project report entitled “Study of after sales services” at Empire motors Pvt. Ltd., Navsari has been carried out by Prafful R. Vadnere (06 MBA 60) towards the partial fulfillment of the requirement for the degree of Master of Business Administration has been found satisfactory during academic year 2006-07. [Mr. Jitesh Parmar] Faculty Guide Date: Place: Gopal Vidyanagar. [Dr. Bankim Patel] Director DECLARATION I the undersign Mr. Prafful Ravindra Vadnere declare that this summer project report entitled “Study of after sales services at Empire motors Pvt. Ltd., Navsari” is the result of my own work for the fulfillment of the award of degree of Master of Business Administration and has not been previously submitted to any other University or Institute for any other examination and any other purpose by any other person. I further declare that the personal data and information received from any respondent during survey has not been shared with any one and is used for academic purpose only. Date: Mr. Prafful R. Vadnere (06 MBA 60) ACKNOWLEDGEMENT Achieving anything...
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...What in your view were the reasons for divorce between GM and Daewoo? In 1984, General Motors (GM) and Daewoo formed a 50/50 joint venture (JV) called the Daewoo Motor Company. GM and Daewoo each contributed $100 million in equity. The JV would produce the Pontiac LeMans, which was based on GM’s popular Opel Kadett model developed by GM’s wholly owned German Subsidiary Opel. Commentators hailed the alliance as a brilliant outcome of a corporate marriage of German technology and Korean labor (whose cost was low at that time). As a win-win combination, GM would tackle the small car market in North America and eventually expand into Asia, while Daewoo would gain access to superior technology. Unfortunately, the alliance was problematic. By the late 1980s, Korean workers at the JB launched a series of bitter strikes to demand better pay. Ultimately, the JV had to more than double their wages, wiping out the low cost advantage and the poor quality of the LeMans. Electrical systems and brakes often failed. Daewoo, however, argued that the poor sales were primarily due not to the quality problems but to GM’s poor marketing efforts that had not treated the LeMans as one of GM’s own models. Further, Daewoo was deeply frustrated by GM’s determination to block efforts to export the LeMans to Eastern Europe, which Daewoo saw as its ideal market. GM’s reasoning was that Eastern Europe was Opel’s territory. GM’s Expectation * Increase in imports (80,000 to 1,00,000 cars a year) ...
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...Human Factors involved in the crash of ValuJet Flight 592 A Human Factors Case Study Submitted to the Worldwide Campus In Partial Fulfillment of the Requirements of Course SFTY 320 Human Factors in Aviation Safety Embry-Riddle Aeronautical University October 2013 Abstract On May 11, 1996, Flight 592 departed from Miami. It had pushed back from gate after a delay of 1 hour and 4 minutes due to mechanical problems. There were 105 passengers on board, mainly from Florida and Georgia, as well as a crew of two pilots and three flight attendants, bringing the total number of people on board to 110. At 2:04 pm, the DC-9 took off from runway 9L and began a normal climb. 10 minutes later the aircraft crashed into the Florida everglades with all hands on board lost. This Case Study will analyze and evaluate all contributing factors, with focus on the human factors, and propose solutions that would have kept the Liveware element from causing the accident. Intro The crash of ValuJet 592 was an accident that gripped the nation. In a decade of low priced airfare, ValuJet was a house hold name for providing economical flights. The loss of flight 592 raised nationwide concerns over the airline industry; from maintenance practices, to management pitfalls among all of the low cost air carriers. 592’s crash also rocked the entire airline industry, and ultimately caused a loss of confidence by the majority of the public in economical airlines. It was a completely avoidable...
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...GM Ignition Switch Scandal General Motors recalled about 800,000 cars due to faulty ignition switches on February 6, 2014. The problem with the faulty part was that it could shut off the engine while driving, thus preventing the airbags from deploying and inflating. General Motors to recall more of its small cars, which resulted in almost 30 million cars worldwide recalled and them having to compensate for 124 deaths. The faulty part had been well known to GM for upwards of ten years prior to them declaring the recall. (Smith, 2014) This major issue began in 2001 during pre-production testing of GM’s Saturn Ion. GM engineers experience problems with ignition switches on the Ion. The exact problem was with a mechanism in the car that is supposed to hold the ignition key in place. According to GM’s records, an internal report shows that the problem was resolved when the switch was redesigned and fixed. Not too long after this initial issue in 2004 a GM service technician sees a Saturn Ion stall while being driven stating that "several other keys on the key ring” was the issue. The technician then records within the same report that "the additional weight of the keys had worn out the ignition switch." (Valdes-Dapena, 2014) Another major ethical dilemma occurred in the testing and manufacturing of another GM car, Chevrolet Cobalt. In 2004, A GM engineer bumps into the key in a Chevrolet Cobalt during testing, thus causing it to immediately lose power. In 2005 General Motors receives...
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...<All about GM> * General Motors Company, commonly known as GM, is an American multinational corporation headquartered in Detroit, Michigan, that designs, manufactures, markets and distributes vehicles and vehicle parts and sells financial services. , * General Motors acts in most countries outside the U.S. via wholly owned subsidiaries, but operates in China through 10 joint ventures, including Shanghai GM, SAIC-GM-Wuling and FAW-GM. * The company manufactures most of its China market vehicles locally. Shanghai GM, a joint venture with the Chinese company SAIC Motor, was created on March 25, 1997. The Shanghai GM plant was officially opened on December 15, 1998, when the first Chinese-built Buick came off the assembly line. The SAIC-GM-Wuling Automobile joint-venture is also successfully selling microvans under the Wuling brand (34 percent owned by GM). Much of General Motors' recent growth has been in the People's Republic of China, where its sales rose 66.9 percent in 2009, selling 1,830,000 vehicles and accounting for 13.4 percent of the market. (This is what a microvan looks like) * * Buick is strong in China, being led by the Buick Excelle subcompact. The last emperor of China owned a Buick.The Cadillac brand was introduced in China in 2004, starting with exports to China. GM pushed the marketing of the Chevrolet brand in China in 2005 as well, transferring Buick Sail to that brand. * In August 2009 the joint venture of FAW GM Light Duty...
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...GM 592 Skill Development Assignment Week 6 Well the company that I work for is a high performance culture as for what is expected of its employees and the mission and values of the company. The slogan is the “customer is always right “. We have to bend over backwards sometime to satisfy the customer’s needs. However, if I was to look at everything internally I would say that it is a low performance culture because insular things and resistance to change. Management to me is a dictator ship when it comes down to making changes. The send out the e-mail of what is expected for us to do but they do not work in the stores or know how much extra time it will take to implement the changes. My current boss basically reads the e-mails tell us what they say and then it is just do it. He never questions the changes because for one there is nothing he can do about it but his approach is so dry to where I personally have some sort of resistance. Sometimes I feel that if those who come up with the plans for the changes were in practice they would grumble as well. Creating a strategy culture fit would be the leadership action used by my organization. Because I work in a pharmacy there is a lot of liability when we make mistakes with customer’s medication. A lot has to do with understanding the doctor’s writing and making the necessary phone calls to clear up any concern. Then the scanning of the bottles upon dispensing help with error of giving the patient the wrong medication and...
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