Case studies in_strategy(catalogue_iii)

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S T R A T E G Y – III





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Fashion Industry: Can Asia Buckthe Trend?

Well, how does one define fashion goingglobal – When a Gucci or Armani isdisplayed on the fashion streets of Japanand China or when celebrities like LizHurley or Will Smith showcase themselvesin an Asian outfit? The winds of globalfashion industry are changing their course– no more do fashion winds move onlyfrom west to east but they blow from eastto west too. Asian fashion, of late, hasmade its presence felt on the global ramp.For centuries, western brands like Gucci,Versace, Armani and LVMH maintainedtheir supremacy in the world of fashion.Innovation, rich designing, marketingexpertise coupled with the presence ofexcellent fashion connoisseurs, enabled thewestern brands to command a premiumover the years. In comparison, the Asianfashion industry, which is still in the nascentstage of growth, has been trying vigorouslyto position itself among the global players.Although oriental fashion is pulling hugecrowds to its fashion weeks, the Asianfashion industry, despite talented designersand lean manufacturing processes, is failingto build a brand image in the high-endluxury segment. Factors like low brandvalue, lack of technical know-how,infrastructure and distribution networkshave been hampering their growthopportunities globally.

This case study dwells upon the dynamicsof the global fashion industry and thecomparative position of the Asian fashionindustry. The case study also analyses thechallenges and threats to Asian fashiondesigners and brands from global playersbesides providing a scope to identify theways in which Asian fashion industry cancreate an uncontested market space andmake competition irrelevant.

Pedagogical Objectives

• To understand and analyse fashionindustry dynamics in a flat world (marketshare, profit margins, value chain, etc.)

• To analyse the critical success factorsfor fashion industry and debate onwhether they would change when thecompanies go global

• To understand the Asian fashionindustry's capabilities and contrast themwith the global fashion industry's criticalsuccess factors

• To debate on the essential requisites forany Asian fashion house to go globaland the strategies they should follow toposition themselves so as to successfullycompete with the incumbents.

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Industry FashionReference No. INA0078Year of Pub. 2009Teaching Note AvailableStruc.Assign. Available

Keywords

Asia, Oriental, Fashion, Blue OceanStrategy, SWOT Analysis, GAP Analysis ,Japan, China, Europe, Retail, Gucci, Global,Brand, Apparel, Supply chain

CAFE Fuel Rules: Changing AutoIndustry Dynamics in the US

In a move to increase fuel efficiency andto reduce gasoline usage for travel, a billwas passed by US Federal governmentraising the standards of Corporate AverageFuel Economy (CAFE) standards to 35miles per gallon (mpg), to be achieved by2020 from the current standards of 27.5mpg for passenger cars and 22.2 mpg fortrucks. US car manufacturers like GM, Fordand Chrysler were apprehensive of thisdecision as they were in doubt in achievingthe proposed standard in 12 years. Theautomakers were left with two options –either make cars more expensive or makethem smaller and less powerful. Byupgrading their manufacturing processesand investing in expensive technology,they hoped to reach the standards set bythe Act. It was also found that Japanesemanufacturers like Honda or Toyota werecloser to the proposed standards ascompared to the 'Detroit 3' and Europeancar manufacturers. On the other hand,fearing a rise in oil prices, consumers arelooking for fuel efficient and compact cars.Consumers as well as market analystspresume that new CAFÉ standards can bemet by 2020 which is in contradiction tothe view of the automakers. The caseattempts to profile the needs of consumersand expertise of auto-manufacturers, inthe wake of new CAFÉ rules.


• To comprehend the implications ofenvironmental regulations on industrydynamics

• To understand the impact of CAFE billon US customers and auto manufacturers

• To understand the prospects andchallenges of US auto industry.

Industry Auto IndustryReference No. INA0077CYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

CAFÉ rules; Environmental Standards;Industry Analysis Case Studies; Big three;Detroit three; Japanese Automakers;

Customer preference; Competitiveenvironment; US Auto industry

The US Newspaper Industry atCrossroads?

The print newspaper industry of the UShas been witnessing revenue decline since2005. Decreasing circulations andconsequently decreasing advertisingrevenue, due to the increasing popularityof digital media, is said to have affectedthe print medium. Many newspapercompanies initiated several cost cuttingefforts to cope up with the industrydowntrend. The increasing onlineadvertising revenue at the US newspaperwebsites put forth a notion that theindustry will undergo a paradigm shift fromthe print medium to the online medium.Many analysts believed that the USnewspaper organisations will retain theirlocal franchises in print format, as itcontributes significantly to their revenue.However, speculation is rife about thefuture of US print newspaper industry asthe focus shifts to the online medium.


• To analyse the increasing popularity ofnew media over the traditional media inthe US

• To provide an overview of the USnewspaper industry and the competitivescenario

• To analyse the various factors that affectthe US print newspaper industry

• To analyse how the US print newspaperindustry can hold its audience andincrease its revenue.

Industry Newspaper PublishingReference No. INA0076BYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

US Newspaper Industry; NAA; WAN;Digital Media; Ad spend; Classified ads;Consumer spectrum; Interactivemarketing; New media; Internetadvertising; Crossroads; Newspaperwebsites; Business models; Google; Yahoo

Indian Animation Industry:Roadblocks for Global

CompetitivenessSince 2005, India witnessed an increase inthe amount of work related to animationoutsourced to India. Most of the companiesthat outsourced such work were from theEurope, US and also Asia. Though therehas been an increase in the volume of

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outsourced projects and co-productiondeals, the animation content in the formof movies and television content did notseem to entice the Indian audience. Thiscast doubts on the competitiveness of theIndian animation industry. This case studyexamines the various hurdles that Indiananimation companies need to cross, notonly to appeal to the local market but alsoto become globally competitive.


The case study helps in understanding

• The growth of global animation industry

• Growth prospects of the Indiananimation industry in relation to theworldwide markets

• Inadequacy of the Indian animationindustry to compete globally.

Industry Animation IndustryReference No. INA0075BYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

India; Emerging economy; Animation;Global animation Industry; Indiananimation Industry; Roadblocks;Developing nations; Financial News;Outsourcing; Intermediaries; IndustryAnalysis Case Study; MNCs; Animationoutsourcing hub

Suzuki in India: The GrowingGearless Segment of Indian

Two-Wheeler MarketThe world's second largest manufacturerof two-wheelers – the Indian two-wheelerindustry is broadly classified into threeproduct segments – scooters, motorcyclesand mopeds. During 1980, the de-licensingpolicy of Indian government allowedforeign companies to operate in Indiantwo-wheeler market through joint ventures(JV). Especially, the entry of Japanesecompanies changed the dynamics of Indiantwo-wheeler market by concentrating oncustomer aspirations, and embracing newtechnology. Banking on the opportunity,during 1982, Suzuki Motorcycle India Pvt.Ltd (Suzuki), a subsidiary of Suzuki MotorCorporation (SMC), entered the Indiantwo-wheeler market through a jointventure partnership with TVS Group, anIndian company, to manufacturemotorcycles. Until 2000s, the motorcycleswere more popular in Indian two-wheelermarket. But the launch of gearless scooter'Honda Activa' – a four-stroke scooter byHonda Motorcycle and Scooter India PvtLtd (HMSI) in 2001, changed the demanddynamics of Indian scooter segment. Since2007, the gearless scooter segment hasbeen growing as compared to motorcycles

(14.4% to 2.17 million units). The demandfor such scooters increased in Indian two-wheeler market due to improvement inproduct features, design and style; and wastargeted to attract young college girls,housewives, and teenagers. Looking forgrowth, Suzuki launched gearless scooter'Access 125' (Access) in the 100cc to 150ccsegment to compete with its competitorslike Honda, Kinetic, and Bajaj. But still, asegment of customers preferredmotorcycles because of bigger wheels,better road grip, power, higher groundclearance, and low maintenance costcompared to scooters. The case facilitatesdiscussion on whether Suzuki would be ableto succeed in capturing these buyers mindspace.


• To examine the growth drivers anddemand factors of Indian two-wheelermarket

• To understand the importance ofcontinuous innovation in two-wheelermarket

• To study the impact of consumerbehaviour in Indian two-wheeler industry

• To discuss whether the strategies adoptedby Suzuki would help it succeed inshifting the consumer priorities frommotorcycles to gearless scooters inIndia.

Industry Automobile IndustryReference No. INA0074AYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Indian Two-Wheeler Market; IndustryAnalysis Case Study; Transportation;Consumer Behaviour; Motorcycles;Gearless Scooters; Marketing Strategy;Joint Venture; Competition; ForeignPlayers; Product Innovation; Suzuki;Honda Motorcycle & Scooter India (P)Ltd.; Hero Honda; Bajaj Auto; Kinetic;LML

Compact Camera Grey Marketin India: Nikon's Dilemma

Sensing the fast growth in the Indiancamera market, Nikon Corporation, aJapan based camera brand, in 2007, decidedto set up a subsidiary in India. Nikon was alate entrant and players like Sony, Canon,Kodak and Samsung had already establishedthemselves as key players in the Indianmarket. To establish itself in the Indianmarket, Nikon had to compete with theseestablished players. Apart from this, thepresence of grey market was a seriousconcern for Nikon. Nikon's own productswere widely being sold in the grey market

at much lower prices. Whether Nikonwould be able to successfully fight greymarket issue in India was yet to be seen.


• Dynamics of compact camera marketin India

• Market entry strategies of Nikon inIndia

• Strategic implications of grey markets

• Nikon's strategies to fight grey markets.

Industry Compact Camera MarketReference No. INA0073AYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Nikon Corporation; Compact CameraMarket in India; Grey Market; CompactCamera; Single Reflex Camera (SLR);Canon India; Kodak India; Nikon'sCoolpix; Industry Analysis Case Study; GreyMarket; Digital Cameras; Productcannibalisation; Brand Image; BrandBuilding

Indian Hotel Industry (A): TheCompetitive Dynamics

Fuelled by the country's booming economy,low-cost air carrier introduction andliberalisation of FDI norms that allow100% foreign investment in real estate,the Indian hotel industry is currently seeinga boom. Demand for hotel accommodationhas increased tremendously across India butthe rooms' supply has seen an insignificantgrowth, causing staggering room rates andinsufficient room availability. Inbound touroperators blame these as key deterrentsthat keep tourists from visiting thecountry. Moreover, with poorly facilitatedairports, inadequate road infrastructure,high taxation levels and a bureaucratic visaprocessing system, India's hotel industryhas serious challenges ahead. Significantinvestments in tourism infrastructure areessential for this industry to progress andultimately achieve its potential.


• To understand Indian hotel industrydynamics before and after the country'seconomic liberalisation and analyse thekey success factors of the industry

• To examine the Indian hotel industrysegmentation and contrast it with thecountry's economic development androom prices

• To highlight global hotel chain's growingpresence in India and the various marketentry strategies available for them toestablish their presence in India

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• To analyse Indian hotel industry'sdemand-supply mismatch, the reasonsfor it and the necessary steps to fill thegap.

Industry Hospitality IndustryReference No. INA0072Year of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Indian Hotel Industry; IndustrySegmentation; India's EconomicLiberalisation; Industry Classification;SWOT Analysis of Indian Hotel Industry;Critical Success Factors; Challenges in theIndian Hotel Industry; Role of Governmentin Industry's Development; IndustryAnalysis Case Study; Taj and Oberoi Groupof Hotels; Market Entry Strategies; GlobalHotel Chains in India; Incredible IndiaCampaign; Demand Supply Disparity

Emergence of China in theGlobal E-Commerce Market (B):

Alibaba.com's SurgeSecond in the two case series, this caseportrays Alibaba.com, a portal thatwithstood the Chinese and emerged as aleader in a short span of 9 years. Launchedin 1999, the portal targeted SMEsproviding Business to Business (B2B)solutions and aggressively expanded thecustomer base by tailoring its offerings tovarious SMEs. Alibaba's web presenceincludes an international marketplace,which focuses on global importers andexporters, and a China marketplacefocusing on domestic suppliers and buyers.Alibaba's business and operational patternshelped it to become the highest marketvalued firm. This enabled the company tobe listed on the Hong Kong StockExchange in November 2007. And set itssights on global expansion, also offeringmore services to its domestic clients.Though hailed as a good strategy, as theincremental revenues will out doincremental costs by miles, it has its ownrisks. Company's success of the companydepends on its ability to tailor itself tosuite the needs of global diversities – not amean task by any measure and not manyportals could achieve in the past. This caseenables analysis on the strategies, whichthe company has adopted in its initialstages to establish itself facing adverseconditions. How could Alibaba.com installfaith in its customers in such a short spanof time? What measures did the companytake to overcome the resistance of theChinese? Is the company too ambitious inits global plans? Can the company handlediverse needs of foreign and domesticcustomers? What measures should it taketo succeed the complexities involved inglobal expansion? Which regions should itfocus on?


• To understand the dynamics of theChinese B2B E-commerce market

• To analyse the business methodology ofthe Alibaba group

• To discuss the risks of online business,especially in global expansion

• To understand the importance ofefficient and adequate business model inthe growth of an online business.

Industry E-CommerceReference No. INA0071Year of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

E-commerce; Dynamics of online business;Alibaba.com; Internet commerce; Chineseelectronic commerce; China in global e-eommerce; Digital economy; Criticalsuccess factors of e-commerce; IndustryAnalysis Case Study; Strategies ofAlibaba.com; Internet economy

Emergence of China in theGlobal E-Commerce Market (A):

Dragon Drags on AdaptationOne of the most popular economic storiesin the last decade and half was the emergenceof China as a formidable force in the globaleconomy. With the growth booming at morethan 10% per annum, all sectors of theChinese economy got the required thrust,E-commerce being one of them. Internetpenetration in the country registereddramatic surge, as the Chinese establishmenteased regulations and foreign multinationalsprovided the required know-how along withnecessary hardware. Once the infrastructurewas in place, the Chinese businesscommunity was quick in embracing E-commerce. However, the commonpopulace was not quick enough, being pulledback by many apprehensions – chief amongthem were lack of physical feel of theproducts and security (over privacy andpayments) – ultimately E-commerce hasnot gained expected popularity. Albeitslowly, number of people purchasing onlineis picking up – much to the liking of Chinesee-commerce companies. This case study,the first in the two case series, enables adiscussion on why e-commerce failed toattract Chinese public, though it had all thenecessary ingredients. Why was Chinesepublic averse to online transactions? Whatstrategies did the companies adopt toincrease the popularity of E-commerce?How China was able to establish itself onglobal E-commerce market place?


The case study is meant to understand theimportance of electronic form of business

and how it has changed the meaning ofbusiness over the decade. Specifically it canbe used to:

• To understand the difference betweenInternet economy, electronic businessand electronic commerce

• To discuss the significance of digitaleconomy vis-a -vis traditional economy

• To understand the constituents of e-commerce business

• To analyse the critical success factorsfor the growth of e-commerce

• To debate the relevance of e-commercebusiness in China

• To understand the resulting businessopportunities and challenges.

Industry E-CommerceReference No. INA0070Year of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

E-commerce; Dynamics of online business;Industry Analysis Case Study; Electronicglobal marketplace; Internet commerce;Chinese electronic commerce; China inglobal e-eommerce; Digital economy;Critical success factors of e-commerce;Opportunities and challenges of e-commerce; Internet economy; Oldeconomy and New Economy

Luxury Brands in China: Profitingfrom Scale

China’s 1978 economic reforms helpedboost its economic growth and in turn, theincome levels there. China’s demographytoo changed - with thousands ofmillionaires and a growing middle classcoming up. All this had an impact on thecountry’s luxury industry, whose growth isexpected to jump from 1% in 2000 to 29%by 2015, making it the largest market forluxury brands. However, China is acomplex cultural market.


The case study helps students:

• Analyse the impact of China’s economicreforms

• Discuss the growing demand for luxurybrands

• Assess Chinese consumer behaviour

• Discuss various strategies

• Analyse the challenges for players.

Industry LuxuryReference No. INA0069Year of Pub. 2008Teaching Note AvailableStruc.Assign. Available

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Keywords

Luxury Brands; Counterfeiting; LuxuryRetailing; Tourism and Luxury Industry;Brand Image; L’Oreal; LVMH;Competition; Critical Success factors;Market Entry Strategies; ConsumerBehaviour; Industry Analysis Case Study;Industry Dynamics; Brand Building;Challenges for Luxury Goods Companies

Google vs Baidu.com (C): TheBattle for China’s Internet Search

MarketFrom being an emerging economy, Chinais a surging one and the number of itsInternet users is swelling. With that, thenumber of companies offering searchservices there is also going up. Google, thepreferred search engine in many countriesbeats its rival Yahoo! by a wide margin.Yet, in China - forecast to be the largestInternet market in the world - Google findsitself upstaged by a local rival, Baidu.com.China’s cultural nuances seem tocompletely elude Google. The companyto find a foothold in China, is however,leaving no stone unturned. It has openedan office in 2005, hiring a Chinese at thehelm. The company is working to improveits sales force. Along with this, Google inChina has launched a censored Chineseversion of its site in 2006, which is a firstfor the company. This case, the third inthe series, Google vs Baidu.com, details theChinese online search landscape along withthe major players. The focus is on theongoing battle between Google and Baidu,and the reasons for their failure and successrespectively. The case facilitates adiscussion on the critical success factorsfor search engines and the need forlocalisation. The business dilemma ofchoosing between ethical behaviour andshareholder wealth creation is also brieflydealt with. The case finally dwells onwhether Google, after making changes toits approach, will be able to succeed inChina and what should be its plan of action.


• The critical success factors for a searchengine and whether these factors needto be localised

• The Chinese Internet search market andwhat makes it attractive tomultinationals

• Why Google, otherwise the leadingInternet search provider worldwide, islosing out in the Chinese market to alocal player that has no presenceoverseas

• The business dilemma between ethicalbehaviour and what may be construed asfoolishness by exiting a lucrativeemerging market.

Industry Internet Search & NavigationServices

Reference No. INA0068Year of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Google; Baidu.com; China’s Search EngineMarket; Business Model; Industry AnalysisCase Study; Globalisation and Localisation;CAGE Frame Work; Alliance Strategies;Acquisitions and Partnerships; ChineseGoogle; Government BusinessEnvironment; Internet Censorship; OnlineAdvertising; International Business; LegalEnvironment and Regulations

Motorola in China (B): From‘Intended’ to ‘Emergent’

StrategiesThis case study is a sequel to Motorola inChina (A): Dealing with an EvolutionaryIndustry Life Cycle. This case explains howMotorola tuned its strategies to emergingtrends. Actually, by January 2003, its goingwas becoming tough in the Chinese market.Most of its invented strategies failed. Thenit realised that its strategies can no longerneglect the market trends. Viability of theseemergent strategies can be vividlydiscussed.


• To analyse and discuss the causes ofMotorola’s failure in China’s mobilephone market, in spite of having theFirst Mover Advantage

• To analyse whether its emergentstrategies are workable and sustainable.

Industry TelecommunicationsReference No. INA0067Year of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Motorola; China Handset Market;Economic reforms in China; MobilePhones; Motorola and Eastcom; IndustryAnalysis Case Study; Motorola and Nokia;Centrally planned economy; Industry LifeCycle; Intended Strategies; EmergentStrategies; First Mover Advantage; FirstMover Disadvantages; Chinese Guanxi;Chinese Business Environment

Motorola in China (A): Dealingwith an Evolutionary Industry Life

CycleAn industry’s life cycle runs through fourstages: introduction, growth, maturity anddecline. In the first stage, companies

prompt customers to buy the new product.Then the growth phase sees rapid marketexpansion and increasing competition, withthe entry of new players. In these twophases, a lot of evolution (both in termsof products and markets) happens. Productsundergo many changes with the applicationof new technologies, rising demands andvarying choices of consumers. This casestudy sees how Motorola dealt with suchevolution in an emerging market. Motorolawas the first to enter the Chinese mobilephone market in 1987. So it was blessedwith the First Mover Advantage for nearly15 years. However, with the evolution ofChinese telecom industry, improvementsin mobile networks there and entry of newcompetitors (local and foreign), Motorolabegan to lose its market share. But Chinabecame a crucial market for Motorola, asits western markets dried up.


• To understand the evolution of China’smobile industry and the operatingchallenges

• To discuss and analyse strategyformulation in the evolutionary phaseof an emerging market

• To discuss whether First MoverAdvantage can guarantee success in thelong run.

Industry TelecommunicationsReference No. INA0066Year of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Motorola; China Handset Market;Economic reforms in China; MobilePhones; Motorola and Eastcom; IndustryAnalysis Case Study; Motorola and Nokia;Centrally planned economy; Industry LifeCycle; Intended Strategies; EmergentStrategies; First Mover Advantage; FirstMover Disadvantages; Chinese Guanxi;Chinese Business Environment

China’s Retail Industry (B):Consumer Behaviour andCompetitive Responses

While case (A) enables an analysis ofChina’s retail industry dynamics, case (B)provides scope for analysing Chineseconsumer behavior (with specific referenceto retailing). Using this analysis, studentscan decode the variety of competitor’sresponses Each one wants to their slice (abigger one though) of the retail cake.Whose strategic moves are viable? Whichcompany is better poised to tap China’sretail potential? Since economic reformsin the 1980s, China’s production andproductivity rapidly grew, while average





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consumption growth was slower. No doubt,consumers create a huge retail potential.But, do they have similar aspirations? So,what should companies assume? Do theirassumptions mismatch consumeraspirations? More so, as the Chineseconsumer tends to save more than spend,how can retailers get them to do thereverse?


• To understand the (ever-) changingconsumer behaviour in China and debateits effects on the way retail companiesrespond

• To juxtapose and analyse the obviousparadoxes in these responses (which canhelp better in converting adversities intoadvantages?)

Industry RetailReference No. INA0065Year of Pub. 2007Teaching Note AvailableStruc.Assign. Available

Keywords

Wal-Mart; Carrefour; Chinese ConsumerBehaviour; Economic reforms in China;Centrally planned economy; Investment-led growth; Industry Analysis Case Study;Consumption-led growth; Organised retailindustry; China’s traditional retail industry;Re-balancing of the economic growth;Saving patterns in China; Consumptionpatterns in China

FOPP, UK’s Music Retailer (A):Profiting from Positioning?

With the current trend of consumersexploring music online and supermarketsoffering CDs at competitive prices, stand-alone music retailers face an uphill task tomaintain real differentiation in theindustry. The Fopp case series (A&B) trackthe positioning, the challenges and thegrowth dilemmas of Fopp - a music retailerwith 105 stores spread across UK andScotland. The company had been sellingCDs, DVDs, books, and peripherals for about25 years. Started in early 1980s, the retailchain has grown from a small corner shopto UK’s third largest music retailer. Whatdifferentiates Fopp from its rivals is itspositioning to reach Fifty Quid Bloke: themarketing name for people aged between25 and 45, who are cash-rich and time-poor. A typical Fifty Quid Bloke is seen ona Friday afternoon buying piles of CDs, allworth £50, thereby giving the companymore revenue per visitor. The company issaid to have developed strong patronagewith these music followers. Case A describesthe dynamics of the music industry ingeneral and UK’s music retail industry inparticular, and will trigger a discussion onFopp’s positioning strategy against the

online music stores and supermarkets.When the giant retailers are struggling byselling all-things-to-all-people how couldFOPP survive by selling just CDs, DVDs,books and gift items to one consumersegment? How long can the patronage inthese dynamic times last? Now, wheninternet is posing the biggest threat to everyother seller, can the company sustain? Ifyes, how long? If no, does the companyneed to change its business approach?


• To understand unique business dynamicsof music industry and also music retailing

• To analyse the critical success factors inthe music retail industry

• To understand and relate consumerbehavior in music retail industry to thetarget market selection.

Industry EntertainmentReference No. INA0064Year of Pub. 2007Teaching Note AvailableStruc.Assign. Available

Keywords

Music Retailing; Customer Segmentation;Customer Targeting; Niche MarketingFopp; Industry Analysis Case Study; FiftyQuid Bloke; Music Labels; Music Recorders;Universal Music Group; Sony BMG MusicEntertainment; HMV; CustomerCommunity; Music Industry; Positioning;Differentiation

China’s Retail Industry (A): AnAssessment of Potential and

ChallengesThe first of this three-part case series helpsrichly and deeply analyse a happeningindustry in China - retailing. Its competitivedynamics is the fine thread that runsthrough all the three cases. Now that Chinais on every global (MNC/TNC) company’sgrowth agenda, the class can debateindustry-specific dynamics as well aseconomy-wide factors. So bigger questionspop out. What is the “China Factor”?What does this mean to the companiesoperating or willing to operate in China?What should be their homework beforeentering China? What should be theirstrategic moves, while they are in China -strategy or tactics? With Chinese economyintegrated into the global economy (since1978 and more so from 2001 when itformally joined the WTO), its economicgrowth rate has hovered around 10%–12%.And that’s very good news for all the majorglobal corporations because there is hugedemand there. However, this good newshas a flip-side too: China’s business terrainis bumpy for a variety of reasons. Whatare those reasons? Hard infrastructure andsoft infrastructure are the prime suspects.

But many more are embedded into this caseseries that can be unearthed with meticulousanalysis. Retail industry is one among themany that saw intensified competitionduring the past decade, in China.Competition is not yet even because ofhuge untapped potential; so a discussionon Industry Life Cycle can ensue. It is forthe players to strategise their moves andcounter-moves, where value chain analysiswould prove essential. Market entrystrategies of Wal-Mart and Carrefour wouldmake up for an interesting analysis.


• To give a brief overview of retailindustry’s formats and the operationaldynamics involved

• To understand the potential andattractiveness of China’s retail industry

• To analyse the challenges of operatingin China’s retail industry because of itsvalue chain

• To debate on the critical success factorsin China’s retail industry

• To analyse the market entry strategiesof Wal-Mart and Carrefour and debateon their effectiveness.

Industry RetailReference No. INA0063Year of Pub. 2007Teaching Note AvailableStruc.Assign. Available

Keywords

Wal-Mart; Carrefour; Economic reformsin China; Retailing in China; Centralisedsupply chain system; Logistics and SupplyChain Management; Centrally plannedeconomy; State-owned department stores;Dalian Dashang; China’s traditional retailindustry; Metro AG; Ito Yokado; IndustryAnalysis Case Study; Chinese Guanxi;Retail industry dynamics

Global Steel Industry: TheCountry Factor

The reconstruction of infrastructure acrossthe world after the Second World Warprompted steel industry rise sharply.Demand exceeded supply resulting highprofitability which translated into capacityaugmentation. But since 1970’s the demandplummeted down, resulting over capacityand high cyclicality in the Industry. Theindustry regained from 2002 due to China’sbooming economy, higher economicdevelopments in other BRIC (Brazil,Russia, India) countries, emergence of CEE(Central and Easter Europe) countries asrapidly developing economies and positiveeconomic developments in Triad (Europe,USA and Japan) etc. Analysts wereskeptical about the long term sustainabilityof the industry. The concern is vital for

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the senior managers and the policy makersin the steel industry to understand thedynamics of this industry and to shape theirstrategies accordingly.


• An outlook of global steel industry

• Factors affecting the demand and supplyof the global steel industry

• The impact of China, BRIC, TRIAD andCEE economies on the global steelindustry

• Opportunities and challenges for theplayers in the global steel industry.

Industry SteelReference No. INA0062KYear of Pub. 2007Teaching Note AvailableStruc.Assign. Available

Keywords

CEE; TRIAD; Steel Production; BRIC;Value Chain; Arcelor-Mittal; Baosteel;Fragmentation; Industry Analysis CaseStudy; Downstream Production;Investment Trap; Global Steel Industry;Regional Champions; Niche Specialists;Global Player; Steel Cycle

US Housing Market: Waiting forRecovery

After experiencing a boom for aconsiderably long period, the US Real Estatestarted declining from early 2006. Thenumber of new housing projects droppedfrom an annual rate of 1.535 million to1.486 million. Meanwhile, the mortgageloans had reduced from a peak of 6.8% onaverage for a 30-year fixed loan in July to6.24% in October 2006. The Federal rateremained unchanged at 5.25% from themonth of August. There were speculationsthat the Federal Reserve could cut rates inthe coming months if inflation remainedunder control and the economy flagged.This further slashed down the housingfinance loans. All these triggered a recoverybut the market so far had not shown anykind of bounce-back activities. Moreover,as the once-booming U.S. housing marketcame down in 2005-2006, economistsdebated whether this was a "soft" or "hard"landing and the impact this slowing wouldhave on consumers' confidence and on theoverall economy. This case captures boththe up and down trends of the US housingsector. The case further explores the factorsaffecting the housing sector and whetherthere will be any recovery in the US housingmarket.


• To discuss how the economic factors arerelated with the real estate market

• To understand the US real estate market

• To analyse the volatilities in the US realestate market

• To debate whether the US real estatemarket would recover after the downturnstarted in 2006.

Industry Real EstateReference No. INA0061KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

US real estate; United States housing bubble;Industry Analysis Case Study; Economicbubbles; Stock bubble; P/E (price-to-earnings) ratios for houses; NationalAssociation of Realtors; Speculation; Houseprice index; Baby boomers; Downtrend inhousing; Foreclosure; US mortgage rates;Stock vs house investment; Collapse inhousing; Housing wealth

Kyoto Protocol and its effects onthe carbon trading

Carbon Market, the new concept of tradingCarbon dioxide (CO2) and otherGreenhouse gas was much similar to theother trading markets of the world. Thisconcept came into force with theimplementation of the international treatycalled Kyoto Protocol, which envisionedreduction of Greenhouse Gas emission inthe world. The treaty was mainly applicableto the industrialized and developedcountries of the world.

The first implementation period was 2007-2012 which enforced many countries andindustries around the world to maintain theirlevel of emissions. This also gave boost tocarbon market around the world. Thismechanism initiated major carbonexchange and market around the world.

The case highlights the major carbontrading markets around the world and thecountries which would implement thistreaty. The treaty was rejected by leadingindustrialized countries like US, Canada andAustralia. It also faces some challenges,debate and criticism by environmentalactivist. Amidst the challenges andregulatory hindrances, the treaty promisedto provide an initiative to prevent furtherglobal warming. The case ends on thedebate whether Kyoto Protocol willachieve its vision by 2012.


• To understand the concept of carbontrading and carbon markets

• To understand the international treaty ,Kyoto protocol and its mission andvision

• To debate the ethical participation bydeveloped and developing countries onhumanitarians ground in carbon trading.

Industry Carbon marketReference No. INA0060AYear of Pub. 2007Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Carbon dioxide; Greenhouse Gases; IndustryAnalysis Case Study; Kyoto Protocol;Carbon trading; Emission Trading; GlobalWarming; Climate Change; Annexure Icountries; Annexure II countries; AssignedAmount Units; Emission Reduction Units;Chicago Climate Exchange(CCX); EU ETS;UK ETS; New south Wales market (NSW);Joint Implementation; Clean Developmentmechanism (CDM)

Chinese Automakers'International Drive

Following the footsteps of their Asianpredecessors Japanese and South Koreanautomakers all major Chinese automakerslike Geely, Cherry and other leading autocompanies aspired to become globalplayers. With the advantages of low costproduction and government support,Chinese automakers primarily targeted USand European market to sell their cars andconsequently become powerhouse in globalautomotive industry.

Nevertheless, Chinese automakers hadmany obstacles to overcome before sellingcars in international markets. The imageof poor quality, weak design and lack ofdistribution networks hindered the progress.Besides, the world automotive market wassaturating and analysts opined that thegrowth prospects were better in Chinaitself.


• To discuss the global and Chineseautomotive industry scenario

• To discuss international market entrybarriers and strategies to overcome them

• To discuss challenges faced by Chineseautomobile manufacturers in their questto go global.

Industry AutomobileReference No. INA0059AYear of Pub. 2007Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Chinese Automakers; China Cars; IndustryAnalysis Case Study; Automobile Industry;Globalisation; International Markets;Expansion Strategies; ShanghaiAutomotive (SAIC); First Automobile




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Works (FAW); Dongfeng MotorCorporation; Geely Automobile; CheryAutomobile; Challenges of globalisation;Exports; Low cost production

Emerging Destinations inOutsourcing: The Indian

dilemmaAs of 2006, India continued to remain anIT outsourcing powerhouse, with $17.7billion revenue in software and IT servicesexports, compared with $3.6 billion forChina and $1 billion for Russia, accordingto the trade organizations in each country.Also, India's outsourcing industry was stillgrowing at a faster pace than that of Russia'sand other outsourcing centers. But as laborcosts and turnover rates began rising inIndia, companies started looking out forcheaper labor. As a result, many alternativeoutsourcing destinations emerged.Countries speaking European languages likeHungary, Czech Republic, Russia, Poland,Bulgaria and Romania were benefiting fromthe trend of 'nearshoring'. Moving IToperations into developing countries canpose big risks, such as language and culturaldifferences, geopolitical instability, and therisk of stolen intellectual property. India'soutsourcing players needed to overcomemajor challenges to continue their growthand sustain their competitive advantageover other emerging outsourcingdestinations. India needed to improve itsinfrastructure, maintain competitive laborcosts and tackle the turnover rates of laborattrition. It had to concentrate more onnew areas in outsourcing such as E-governance, Retail Services Outsourcing,Pharmaceutical Research, FinancialServices and Healthcare.

The case outlines the changing globalscenario of the outsourcing industry,emerging destinations and challenges facedby Indian outsourcing companies towardskeeping competitive advantage andretaining business.


• To introduce the students to theOutsourcing industry

• To highlight the various new destinationscoming up in outsourcing

• Factors that constitute a successfuloutsourcing destination.

Industry Business Process OutsourcingReference No. INA0058CYear of Pub. 2007Teaching Note AvailableStruc.Assign. Not Available

Keywords

Outsourcing; Nearshoring; Emergingdestinations; Industry Analysis Case Study;Indian outsourcing industry; Chinese

outsourcing industry; BPO sector;Offshoring

Organic Food Market in the US:The Wal-Mart Effect

In the wake of a rapidly growing market fororganic products in the US, in March 2006,Wal-Mart, the world’s biggest retail chain,announced that it would include moreorganic products in its grocery section. Themanagement of Wal-Mart hoped to attractmore and more customers to buy its organicitems thereby promoting the consumptionof organic products. While some analystsbelieved that it would increaseenvironmental awareness among theconsumers and prompt the farmers andsupplier to adopt green practices, anotherset of analysts felt that Wal-Mart could useits market strength to exert pressure onfarmers and suppliers to its own advantage.

The case starts with a short history oforganic farming in the US and moves onto Wal-Mart discussing it business briefly.It then highlights Wal-Mart’s businesspractices over the years and finally triesto raise a question regarding what could bethe possible repercussions of Wal-Mart’sentry into the organics.


• To get an understanding of organicfarming

• To analyse the impact of Wal-Mart’sentry on the organic food market of theUS

• To debate whether Wal-Mart’s entrywould drive suppliers to adopt organicfarming or exert pressure on them forlower prices.

Industry Organic FoodReference No. INA0057KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Wal-Mart; Organic food; Retailing;Organic farming; National OrganicProgramme (NOP); Supercentre; Sam’sClub; Neighbourhood market; Groceryretailing; Industry Analysis Case Study; USfarmers; Organic seal; Supermarket;Discount store; United Food &Commercial Workers

Air China and the ChineseAviation Industry

By 2005, Air China was the only profitablecarrier among the three major airlines inChina. The other two, China Southern andChina Eastern, were making losses. Thelow cost carriers also were struggling. By

contrast, the Chinese aviation market hadbecome the second-largest in the world afterthe US, carrying 138 million passengers in2005. Apart from that, Chinese airlinesordered a large number of new aircrafts in2005. Analysts felt that governmentinterference in matters related operationswas the main reason behind airlines’ poorperformance. Though government wasreforming the airline industry to make theChinese airlines more competitive, expertsdoubted Air China’s ability to remainprofitable in the long run. The case discussesin detail the evolution of China’s aviationindustry to its present form as well asgovernment reforms. It also discusses AirChina and its operations. The concludingsection attempts to highlight thechallenges that the Chinese aviationindustry (particularly Air China) faces. Italso tries to raise a question regarding thestructure of the industry in future.


• To understand the evolution of China’saviation industry

• To understand government reforms thatshape the structure of the industry

• To discuss competitive dynamics ofChinese aviation industry

• To analyse the competitive advantagesof Air China

• To analyse Air China’s ability to sustainprofitability in the long run.

Industry AviationReference No. INA0056KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Air China; Chinese Aviation Industry;CAAC; CANC;Shanghai Airlines.

China’s Auto Industry: TheEmerging Trends

With China’s entry in the WTO inDecember 2001, the domestic automobileindustry witnessed a plethora of changes.Overall tariff and non-tariff barriers werereduced and the sector was opened up forFDIs. China rapidly emerged as the third-largest automobile market behind the USand Japan, with about 3.1 million new carsbeing sold in 2005. The Chinese autoindustry was evolving gradually into amature market with consumers becomingmore aware of the differences betweenbrands.

The case while providing a broad overviewof the Chinese automobile industry,discusses the emerging trends in theindustry as well as in the consumerbehaviour.

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• To understand the dynamics of theChinese automobile industry in the pre-and post-WTO era

• To understand the critical factorsresponsible for the emergence ofChinese automobiles as the leadingbrands, both in the domestic andinternational market

• To discuss the global impact of theincreasing export capability of theChinese automobile manufacturers

• To understand the changing dynamicsof consumer psychographics in China.

Industry AutoReference No. INA0055KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

China; Auto Industry; Cherry; First autoworks; GM; Toyota; Volkswagen.

Mittal's New Move: CapacityExpansion or Vertical IntegrationIn October 2005, Mittal Steel, the world’slargest steel company, made a bid forKryvorizhStal Steel, the largest steelcompany of Ukraine. In the era, whenconsolidation and acquisition werecommon practices in the industry, MittalSteel’s new move would help it toconsolidate its presence more aggressively.The acquisition was a key acquisition forMittal Steel in Central Europe, as itprovided the company with a large sizelow cost platform in a core and fast growingmarket. It also helped Mittal Steel toexercise control on the large iron orereserves of the Ukrainian Steel major,which it planned to use in its expansionprogramme. In the steel industry, due toraw material shortage, the ownership ofmines and long-term alliances with the rawmaterial suppliers became a critical successfactor for any company. The case studyoffers a scope for discussing the rationaleof the acquisition in the recent globaltrends, the value chain of the industry andhow Mittal Steel plans to leverage it.Students can also discuss how Mittal Steelcan leverage the acquisition bystrengthening its position in Central andEastern Europe and areas close to China.


• To discuss the trends, patterns of globalsteel industry and consolidation as amajor strategy in fragmented steelindustry globally

• To discuss acquisition of KryvorizhStalSteel, the largest steel company of

Ukraine by Mittal Steel, potentialsynergies and problems associated withthe acquisition

• To discuss how acquisition as a growthstrategy help companies to consolidatein fragmented steel industry

• To discuss the concept of ‘forwardintegration’ and ‘backward integration’in steel industry

• To discuss how alliance with raw materialsuppliers and ownership of mines helpsteel companies to have better controlover the value chain of the industry

• To discuss value chain of the steelindustry and steel making process.

Industry SteelReference No. INA0054KYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

Mittal Steel; CVRD; Riotinto;Kryvorizhstal; Backward Integration.

L.N. Mittal: ConsolidatingPresence Globally

Lakshmi Niwas Mittal (popularly knownas LNM), also called the “Carnegie ofSteel”, built his steel empire by aggressivelyacquiring poorly performing steel plantsat low prices in 14 countries across theglobe, like Trinidad and Tobago,Kazakhstan, Romania, Germany, Poland,Canada and America, and turning them intomoney-making ventures. He is consideredto be industry visionary, spotting trendsmuch before his contemporaries andinvesting accordingly. In October 2004,Mittal acquired International Steel Groupof the US for $4.5 billion and became thelargest steel producer in the world,surpassing the world leader, Arcelor. Thecase study offers scope for discussion aboutthe acquisition strategy, adopted by Mittaland how it helped him to become themarket leader. It also provides informationregarding the current and future levels ofconsolidation in the global steel industries,consolidation as a major strategy in thesteel industry, steel industry value chainand the risks that companies like MittalSteel, would encounter.


• To understand the trends, dynamics ofglobal steel industry

• To understand how consolidation act asgrowth strategy in global steel industry

• To understand how consolidationtransform the globally fragmented steelindustry into a consolidated one

• To understand how to makeconsolidation successful one, problemsassociated with successful making of aconsolidation

• Acquisition as a key growth driver inglobal steel industry.

Industry SteelReference No. INA0053KYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

Mittal steel; consolidation; value chain;global steel industry.

Auto Component Industry: ANew Perspective

According to a report by McKinsey andACMA in 2004 Indian auto componentindustry was worth around $5 billion(Rs.25,000 crore) and was growing at therate of 18% yearly. But industry expertsfelt that in auto component exports, Indiawas far behind other developing countries.Indian companies did not have the scale ofproduction to beat global companies. TheIndian auto component industry was highlyfragmented as most of the auto makersbelonged to Tier IV and Tier III category.High fragmentation, low investments inR&D, low capability in high-end designing,manufacturing and development hinderedIndian auto parts maker to move up thevalue chain. Global OEMs and Tier 1suppliers were relocating their plants andset up R&D centers from US/Europe toIndia due to its low cost and skilledmanpower. But the majority of Indian autocomponent firms belong to the lower tierof Industry value chain. Tier Imanufacturers enjoyed advantages overTier II and Tier III suppliers in gettingorders with the help of their designing,manufacturing and development skills.Since Tier I suppliers got the order directlyfrom auto makers it helped them torecover the investments quickly andenjoyed better profit margins. Indianmanufacturers, mostly belong to Tier IIIand Tier IV category, lacked in high enddesigning, manufacturing and developmentskills. The case deals about how Indian autocomponents industry which is in the un-organised sector, could exploit itsstrengths, nullify its weaknesses and becamethe preferred sourcing partner of globalOEMs ,by moving up the value chain ofthe industry.


• To discuss in details about global andIndian auto component industry, trendsand patterns of the industry

• To discuss the value chain of the autocomponent industry




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• To discuss how small players from anindustry can move up the value chainand became the key growth driver ofthe industry

• To discuss how joint venture, technicalalliance, designing, development andmanagement skills help small companiesto move up the value chain

• To understand the structure of theindustry.

Industry Auto Component IndustryReference No. INA0052KYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

OEM; Delphi Corp; Reverse Engineering;Tier 1; Backward Integration.

Automobile Industry in Russia:The Growth Potential and the

Competitive PressuresIn 1991, the Soviet Union dissolved intodifferent countries and the major countryto emerge was Russia. As Russia started toliberalise, its economic policies changedand it gradually moved towards a market-driven economy. Incomes of Russianconsumers are rising and they aredemanding more choices. Amid thismakeover, the Russian automobileindustry, which of late was dominated bythe state-owned players, is now witnessinga change. Automobile manufacturersaround the globe are keen to set upmanufacturing facilities in Russia-to servethe Russian market, and also export todifferent countries. Global players such asToyota, Nissan, Renault, and Volkswagenplan to set up massive manufacturingfacilities in Russia. So, as competitionincreases, Russian carmakers face numerouschallenges to capture the market. State-owned companies like AvtoVaz have togear up to withstand competition fromforeign carmakers.


• To discuss the evolution of theautomobile industry - with special focuson cars

• To discuss the political and economictrends since the formation of theRussian federation

• To understand the Russian automobileindustry and its growth potential

• To discuss the challenges andcompetitive pressures in the Russian carindustry.

Industry AutomobileReference No. INA0051Year of Pub. 2006

Teaching Note AvailableStruc.Assign. Available

Keywords

Manufacturing industry; Avtovaz; Russianeconomy; Russian Political changes;Automobile industry; Volkswagen; Russianautomobiles; Russian Consumer market;Car industry; Economic crisis;Liberlisation; Globalisation; Automobilemanufacturing

The Viacom Split: Is it the RightSolution?

Viacom, the media conglomerate, has hada history of splitting into two units andremerging as one entity. In 1999 theybecame one, but in 2005, the Viacom Boarddecided to again divide the company. Thesplit was structured in such a way that theexisting company (Viacom) changed itsname to CBS Corporation, while the newViacom was a freshly founded spin-offcompany. The new CBS Corporation wasactually the same company (Viacom) thatwas founded in 1986. The 1986 Viacom,in turn, was the successor to a previouscompany also known as Viacom andfounded in 1971.

Industry watchers wondered about theadvantages of the split. Founder SumnerRedstone had justified it statingemphatically that the days of the bigconglomerates were over. The future wouldbe interesting to see. Would the twocompanies evolve and grow into individualbehemoths? Or would they again cometogether and become a single entity?

The case traces the history of Viacom from1971 when the television syndicationdivision of CBS Films was renamedVIACOM, from Video and AudioCommunications. It highlights theacquisitions made over the years to expandoperations and increase revenues, the entryof Sumner Redstone in 1986 when NationalAmusements bought over andreincorporated Viacom, the merger withCBS Corporation in 1999, and theseparation into two companies again inJanuary, 2006.

The case also discusses investors’apprehensions, the observations ofanalysts and industry watchers, the viewsof the Redstone family, the process ofconsolidation and growth, and the futureof the two companies.


• To study and analyse why the Viacomgroup merged and split over the yearsespecially from 1970 onwards

• To enumerate and understand the prosand cons of division and re-merger, and

the likely future progress of the twocompanies.

Industry MediaReference No. INA0050CYear of Pub. 2006Teaching Note AvailableStruc.Assign. Not Available

Keywords

VIACOM; CBS Corporation; Split; Spin-off; Division; Stock price; Investors; Debt-burden; Strategy; Sumner Redstone; MTV;Networks; Paramount; Digital;Distribution; Consolidation; Growth.

Will the Three Pointed StarRegain its Lost Sheen

Mercedes was dodged by quality problemsthat eventually dented the brand’s premiumimage and eroded its profits. The caseprofiles Mercedes’ glorious past and detailsthe reasons that led to the brand’s lostsheen. It further outlines the new makeover initiatives at Mercedes under theleadership of a new chief, Dieter Zetschewho had a proven turnaround track record.The case provides scope for discussion onstrategies for retaining the premium imageof a brand.


• Helps the students to understand theconcept of Branding

• Traces the turnaround strategies ofMercedes.

Industry AutomobileReference No. INA0049CYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mercedes-Benz; DaimlerChrysler; DieterZetsche; Jurgen Schrempp; Mitsubishi;Eckhard Cordes; CORE; J.D. Power andAssociates; Revamp.

US Automotive Supply Industry:The Chinese Threat

The US automotive supply industry, morethan a century-old, produced vitalcomponents for the auto industry andemployed nearly three times as manypeople as the auto industry itself. It wasthe backbone of the US auto sector andpossessed a much larger machine-toolcapacity. Over the years, the US autosupply industry went through tough times.A number of reasons were attributed to this.The industry was forced to cut prices bythe US auto makers who were their mainclients and being bound by contracts, theauto suppliers were forced to comply. There

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was also a rise in raw materials, especiallysteel. The main players were also chargedfor accounting manipulations and they hadto spend considerable resources to rectifythe frauds. All this quickened thebankruptcy of a number of leading autosuppliers in the US.

In this background, there was a steadyincrease in the quantum of Chinese importsand they posed a threat to the US autoindustry. The Chinese had a low wageadvantage but did not possess thetechnological edge. Although industryexperts said that the Chinese threat wasexaggerated, if the US auto suppliers didnot gear-up to meet competition, it wasfeared that they would face almost thesame ills that the US auto sector was facingin the face of competition from Japaneseand Korean auto makers.

The case allows for discussion on the futureof the US auto supply industry in the faceof competition from China. It also allowsfor discussion on the strategies that theChinese should adopt to become a leadingforce in the global auto parts market.


• To discuss the future of the US autosupply industry in the face ofcompetition from China

• To discuss strategies that the Chineseshould adopt to become a leading forcein the global auto parts market.

Industry Auto Supply IndustryReference No. INA0048CYear of Pub. 2006Teaching Note AvailableStruc.Assign. Not Available

Keywords

Auto parts supply industry; Auto partsmanufacturers; OEM suppliers; Big Three;Price cuts; Raw material costs; Accountingmanipulations; Hedge fund operators;Chinese auto suppliers; Delphi; low-costof labour; replacement market; R&D;Transplant automakers; bankruptcy.

Alibaba.com – Will it win China’ssearch Engine Market?

Established in 1999, Alibaba.com hadbecome the biggest online business-to-business (B2B) player in China. Its forayinto other ecommerce activities like onlineauctions and online payments were alsohighly successful although they were incompetition with world leaders like eBay.In October 2005, Alibaba and Yahoo! Chinasigned a deal under which Alibaba wouldmarket the Yahoo! China brand in China.By this deal, Alibaba sought to establishitself in the search engine market andfurther consolidate its position in theecommerce scene in China. The search

engine market in China was dominated bya number of local and international players.

The case provides scope for discussion onwhether Alibaba would emerge a winner inChina’s search engine market. It alsoprovides scope to discuss if it could sustainits success or if its growth was only due tothe inherent advantages of an emergingmarket.


• To discuss strategies of a B2B company

• To discuss whether Alibaba would emergea winner in China’s search engine market.

Industry B2BReference No. INA0047CYear of Pub. 2005Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Alibaba; B2B; Chinese Internet market;Search market; Yahoo! China; ecommerce;Baidu; Google; Jack Ma; value addition;subscription; revenue model;entrepreneurship.

US AUTO INDUSTRY: HEADINGTOWARDS A DEAD END?

The Big Three automakers GeneralMotors, Ford and Chrysler(DaimlerChrysler AG) of the United States(US) dominated the US domestic automarket accounting for more than 70% ofauto sales in 1998. However their marketshare took a nosedive in 2004, when theyaccounted for only 58.6% of sales withthe Japanese automakers overtakingthem.Declining market share and highinventories forced the Big Three to reduceassemblies in North America by 9% duringthe first half of 2005. They were alsoaffected by an unfavorable operatingenvironment caused by the continuousprice war and some serious costcompetitive issues like increasing legacycosts and frequent disputes with the UAW.

Under these circumstances, it was top beseen if the US auto industry was headingtowards a dead end, or if it had a chance ofa turnaround?


• Issues faced by the US Auto Industry

• Challenges faced by the industry inentering new markets and new productcategories.

Industry Auto IndustryReference No. INA0046CYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

US Automobile Industry; General Motors(GM); Ford; DaimlerChrysler; Toyota;Hyundai; Japanese automobiles/cars;Korean automobiles/cars; UAW; legacycosts; The Big Three Automobile industry;Chinese cars; labour costs; bankruptcy.

Retailing in China: The ForeignFactor

China had become the economic power-house of the 21st century. The retail tradewas another high growth area which sawthe entry of many foreign consumer goodsmanufacturers into the Chinese market.China’s retail market growth was firstamong the 12 leading countries in Asia. In1978, the Chinese Government initiatedthe process of liberalisation which soonopened the door to globalisation in thecountry. The modern retail trade did notemerge until the middle of the 1990s whenChina made the transition from a plannedeconomic system to a market driven one.Since 2002, after China’s entry into theWorld Trade Organisation, manygovernmental restrictions on the retailtrade were diluted or removed givingmultinational retailers unprecedentedfreedom to establish wholly owned foreignenterprises (WOFEs) rather than operatethrough joint ventures. By 2006, at least35 of the global top 50 retailers wereoperating in China. In 2005, total retailsales in China touched the US$755 billionmark. The high population density in thecountry had lured global retailers to set upshop and compete with a growing band oflocal operators. These retailers catered toan expanding middle-class of consumersexpected to grow from 42 million in 2005to 200 million by 2015. Over 1,000 newretailers had received approval, of whichmore than half were foreign investors. By2006, there were over 1,000 foreignretailers in China compared to just 314two years earlier. The case looks at theretail background in China and discusses:(1) the performance of retailers; (2) pricingand consumer behaviour; (3) the need formergers and acquisitions which helpedretailers expand their networks andincrease bargaining power with suppliers;(4) the importance of proactive strategiesto penetrate virgin markets especially inthe rural areas; and (5) the significance ofvalue-for-money retailing.


• To understand the fragmented retail tradein China and the effect of the entry ofinternational players into the Chinesemarket

• Help students appreciate the buyingpower of a growing middle-class ofconsumers on the Chinese economy andthe need for local retailers to analyse




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and learn from the strategies of theforeign entrants

• Study the need for focused marketingefforts by foreign companies topenetrate the rural sector.

Industry RetailAvailable at www.ibscdc.orgwww.ecch.comReference No. INA0045C 206-058-1Year of Pub. 2006Teaching Note AvailableStruc.Assign. Not Available

Keywords

China; Retail trade; Consumer; WorldTrade Organization (WTO); Supermarketchains; Value-for-money; Globalisation;Wholly owned foreign enterprise (WOFE);Mergers and acquisitions (M&A); Retailsales; Households; Chain stores; Brand;Economic growth.

Boeing and Airbus: The AsianChallenge

Asia had always been a large, potentialmarket for the two giants in the aviationindustry, the American BoeingCorporation and the European AirbusIndustries. The opening out of the thirdworld to foreign investment with theadvent of globalisation saw competitionintensify between Boeing and Airbus to leadthe Asian market. Dominating this marketwas imperative for both the major playersin order to achieve the top rank in theaviation sector. In their bid to become theleading aircraft manufacturer in the world,both companies had introduced newproducts on a global scale, Airbus the A380‘Double-decker’ and Boeing the 787‘Dreamliner’.

The case traces the background of Boeingand Airbus, some of the models flown anddiscusses the scope for penetration andconsolidation in the Asia-Pacific regionwith special reference to the markets inChina, Japan, India and Singapore.

Pedagogical Objective

• The need to cover and service emergingmarkets in order to attain the numberone rank in the aviation industry.

Industry Aircraft IndustryReference No. INA0044CYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Boeing; Airbus Industries; 787 Dreamliner;A380; Market leadership; Asia-Pacific;Airlines; Air India; Management strategy;Singapore Airlines; Air China; JapanAirlines; Business rivalry; Marketing;Strategies.

The Maturity in the Indian WineIndustry

Established in the mid-1980s, the Indianwine industry with a growth rate of 30%has been showing immense potential forgrowth. With some Indian brands winningawards at international wine competitions,Indian wines were increasingly beingappreciated in the global market. However,despite the encouraging growth rate andthe assiduous efforts being made by thelocal players and the government, can theindustry live up to the promise ofbecoming a global entity?

The case traces the growth of the Indianwine industry, the various challenges facedby the nascent industry, the big players inthe market and the efforts made by themto increase sales in both the domestic andglobal market.


• The case outlines the growth of theIndian wine industry

• The case discusses the challenges facedby the Indian wine industry

• It also discusses the efforts made by themto increase sales.

Industry Food and Beverages IndustryReference No. INA0043PYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Viticulture; potential for growth;international wine markets; exports;imports; ‘Old World’ world wine producingcountries; ‘New world’ world wineproducing countries; major wine growingregions in India; other players; big players;marketing; promotional strategies; majorhurdles; future prospects.

Indian Passenger Car Industry –Heading Where?

The Indian passenger car industry hasshown unprecedented growth after thedeclaration of the new automobile policyby the Indian government in 1993. Theindustry has attracted most major globalplayers to India and as a result the markethas become fiercely competitive. Thereare about forty models with more than one-fifty variants of vehicles from thirteenmanufacturers. The passenger car marketis also undergoing structural changes onthe demand and supply side. Carmanufacturers are gearing up for capacityexpansion, building a strong vendor baseand revamping supply chains to face thefuture. In 2004-05, three of the thirteenmanufacturers namely, Maruti Udyog,Hyundai and Tata Motors have

commanded over 80% of the market share.The case discusses the developments andstrategies of the three major players till2005. It also discusses the future scenarioof these players in light of severalperspectives.


• The case discusses the developments andstrategies of the three major players,Maruti Udyog, Hyundai and Tata Motorstill 2005

• It also discusses the future scenario ofthese players under several perspectives.

Industry AutomobilesReference No. INA0042PYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Car segments; Pricing; Positioning; Marketshare; Vendor rationalisation; Cost;Competition; Consolidation;Fragmentation; Auto policy; Industrystructure; Product portfolio; Strategy; Scaleof operations.

Internationalization ofManagement Education in ChinaThe emergence of China’s new managerialclass had positive and negative implicationsfor US companies. On one side, China’smassive market of 1.3 billion peopleseemed lucrative enough to be penetrated.It was presumed that the graduates of thenation’s new MBA programmes wouldsupply a steady stream of local talent withbetter in-depth knowledge of China,compared to their Western managers. Onthe other side, local companies empoweredwith western management ideas could putforward tougher deterrents for themultinational companies. Chinesecompanies could be in possession of themanagement know-how needed to go headto head with global giants. The concept ofefficiency, productivity, profitability, andgrowth held vast potential to flare upChina’s already blistering economy, raiseliving standards, and transform the nationfrom a low-cost manufacturing center to amake-or-break battleground for the globaleconomy.

So the Chinese B-school expansion had itspositives and negatives for the US andEurope. Had the west thought of this? Werethey too fast in creating Chinesecompetitors? The concept of MBA in USwas almost 100 years old so, they weremuch more experienced and competent inMBA education. But, in 15 years, Chinahad progressed in leaps n bounds as far asmanagement education was concerned. Inthe years to come, it would be interesting

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to observe whether China would besuccessful in creating world-class MBAprogrammes to challenge the strong holdsof the Kelloggs, Whartons, and Harvardsof the world. It seemed a long way to go,but it also seemed important for the top-ranked US. B-schools to take a note of thenew Chinese scenario.


• To understand the implications ofemergence of Chinese managementschools on US companies.

Industry EducationReference No. INA0041BYear of Pub. 2006Teaching Note AvailableStruc.Assig. Not Available

keywords

Chinese B-Schools; Chinese MBA; US-China educational tie-ups; Symbioticrelationship; CEIBS; Tsinghua University;Executive MBA (EMBA); InternationalMBA (IMBA); Management Education.

Corporatisation of the Indian FilmIndustry

The case attempts to explore the effortsof the industry and the government tocorporatise the Indian film industry. TheIndian film industry in 2005 was the largestproducer of films in the world, but its globalshare of revenues accounted to just 1%. Itwas granted ‘industry’ status in 2000 andsince then corporatisation had begun inthe form of banks lending against filmprojects, film insurance, and emergence ofmultiplexes. The industry was no doubt setfor growth, but was facing hurdles in theform of high entertainment tax, financing,piracy, poor distribution and lack oftraining schools. The government hadinitiated efforts to curb piracy, encourageco-production treaties with other countriesand reduce entertainment tax. In spite ofall this, industry insiders shrugged offcorporatisation as a fad and suggested thatthe industry will continue to work the wayit used to be.


• To understand the structure and thebusiness model of the Indian film industry

• To study the changes aftercorporatisation in the business model

• To analyse whether corporatisation canincrease the revenues of the industry.

Industry Entertainment/FilmReference No. INA0040BYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Film Industry; Indian Film; Bollywood;Industry status; film insurance; filmfinance; corporatisation; Entertainmenttax; Piracy; Film Exhibition; Filmdistribution; multiplexes.

Independence Air:Transformation from RegionalCarrier to a Low Cost Carrier

For 14 years, Independence Air hadoperated as a regional carrier, under thename of Atlantic Coast Airlines (ACA).However, in June 2004, ACA was re-launched as a Low-Cost Carrier (LCC),“Independence Air” under its CEO andchairman Kerry Skeen (Skeen). The casediscusses the steps taken by themanagement to transform the regionalcarrier to a LCC focusing on theoperational, marketing and brandingaspects. The case also focuses on thecompetitive landscape in the US airlineindustry.


• The challenges that the airline mightface transforming from a regional to alow cost carrier

• The feasibility of the model being usedby Independence Air of using bothsmaller Regional Jets and larger Airbusto operate a low cost airline

• The strategy being employed by theairline to stimulate traffic in the regionaland major cities

• The competitive challenges it mightface from the low-cost and legacycarriers.

Industry AirlinesReference No. INA0039BYear of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Independence Air; Atlantic Coast Airlines;Kerry Skeen; Hub; Regional Airline; Low-Cost Carrier; United Airlines; US Airways;Low-Cost Business Model; ICLUBS; IJETS;FLYI; Regional Jets; Transformation.

The Road from Mumbai to PuneIn April 2004, the Mumbai-PuneExpressway, India’s first infrastructureproject built to global standards, was soldto a private party, along with the Mumbai-Pune section of NH4, the only otherexisting link between two commercial hubsof India, Mumbai and Pune. The sales dealgives the private party the right to tolland maintain both the highways for 15

years. This deal adds one more controversyto a project already marred by numerouscontroversies over vital issues


• To understand the issues relating topublic-private partnerships ininfrastructure projects.

Industry InfrastructureReference No. INA0038BYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Infrastructure; BOT(Build/Own/Transfer);Highway; Expressway; Contract; PublicPrivate Partnership (PPP); Traffic; Road;Finance; Tolls; MSRDC.

Audi’s Intended AccelerationIn late 1986, ‘Audi AG’ was accused by apopular television show for a flaw in theAudi 5000 sedan that caused the vehicle toaccelerate instead of braking, therebycausing fatal accidents. The allegation wasfollowed by a sharp decline in the sales ofAudi cars in America and the company wasnearly wiped out from the market.Although subsequent investigations provedthat it was drivers’ error that caused theaccidents rather than vehicularmalfunction, the damage had been inflictedon the company. Faced with the dauntingtask of rebuilding the company’s image andre-capture lost market shares, Audi took anumber of steps that revived its sales. Bythe end of 2004, Audi re-emerged as astrong player in the US luxury car market.


• To examine the steps taken by thecompany to revive its brand image.

Industry Automobile manufacturingReference No. INA0037BYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Audi AG; Audi of America; World of Audi;New World of Audi; UnintendedAcceleration; Sudden Acceleration; 60Minutes; NHTSA; Audi 5000; Audi A6; USluxury car market; Luxury carmanufacturers; Quattro; SUV; TrendsetterProgramme.

Diesel Dilemma in the USIn 2004, diesel vehicles accounted for only2% of the US auto market. In the US, dieselengines carried a bad image of being a ‘dirtyfuel’. Though diesel engines offered better






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mileage they emitted more smog formingnitrogen oxides than gasoline engine whichcaused serious health problems. In order tobring back diesel in the US, severalinitiatives were taken by the federalgovernment and the OEMs. In this regard,several regulations and standards werepassed to reduce the diesel emission and toimprove the quality of the diesel sold inthe US. The case discusses about thedifference between gasoline and dieselengines and reasons for the failure of dieselvehicles in the US. The case furtherhighlights on the potential of diesel in theUS market. The case also discusses aboutclean diesel and its acceptance in the USmarket.


• The importance of global warming andits impact on the automobile industry

• The state of the automobile industry inthe US market with specific referenceto diesel vehicles

• The initiatives taken by the OriginalEquipment Manufacturers (OEMs) inorder to bring back diesel in the USmarket

• Discuss the various regulation passed bythe federal government to offer cleandiesel

• Will diesel be able to shed its dirty imagein the US market?

Industry AutomobileReference No. INA0036BYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Diesel Engine; Global Warming; GasolineEngine; Original Equipment Manufacturers;Emission; Clean Diesel; Federal Regulationsand Standards; Ford; GM; DaimlerChrysler;Miles per gallon; US car industry; Fuelefficiency; Miles traveled.

POSCO in 2004 – The World’sMost Profitable Steel Maker

The case is set in the year 2004 and talksabout POSCO, the South Korean steelmaker that was the leading steel companyin terms of profitability. The case startswith the evolution of the world steelindustry, the major technology shift (BasicOxygen Method to Electric Arc Furnace(EAF) Method) that changed the industryeconomics, and talks briefly about theevolving demand-supply conditions. By2004, steel industry was considered oldeconomy and steel was commoditised. Theincreasing competition from mini-mills(companies using the EAF technology toproduce steel) left some of the major steel

producers’ operations unprofitable. As aresult steel producers were resorting tovarious strategies, including consolidation,to sustain in the industry. The case describeshow POSCO sustained and grew in suchconditions, achieved its position ofleadership and the strategies it adopted onits way. Specifically, the case talks aboutPOSCO’s product-market choices,technology initiatives, joint ventures, andits organisational structure. The case alsobriefly touches upon the challenges facedby POSCO in sustaining its position.


• Discuss POSCO’s advantages anddisadvantages based on key successfactors in steel industry in 2004

• Analyse POSCO’s position vis-à-vis theother players in the industry

• Discuss if POSCO’s strategies arereplicable by other players in the industry

• Discuss the strategies for sustaining andimproving POSCO’s position in theindustry

• Building competitive advantage in acommoditised industry such as steel.

Industry SteelReference No. INA0035BYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Steel Industry; Mini-mills; Steel marketingtechnology; Finex technology;Technology innovations; Mass production;Location; advantage; Joint ventures andstrategic partnerships; value addedproducts; Centralised management; Steelconsumers; Steel production; Raw materialsources of steel; Iron ore; Scrap steel.

The Chinese Luxury GoodsIndustry in 2005

The case highlights the tremendous growthpotential for the luxury goods market inChina. The case also focuses on the luxuryindustry in 2005 and the top 3 players.The booming economy in China coupledwith increasing disposable incomes of theChinese is making China a market thatcannot be missed out by the luxury goodsplayers. But the luxury players have toface the problem of counterfeiting whichhas reached to the extent of contributingto China’s GDP and supporting localeconomies. The luxury goods firms are ina dilemma, whether to enter the Chinesemarket and face the problem ofcounterfeiting or play safe by staying awayfrom China and let go the opportunity ofa strong potential market which is all setto be the No.1 in the near future


• To analyse whether the luxury industryshould enter China

• To analyse whether the presence ofcounterfeiting is a threat to the luxurygoods industry.

Industry Luxury GoodsReference No. INA0034BYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Luxury Goods; China; Counterfeiting;Fake; Pirated; Country of Origin; LuxuryRetailing; Market Potential; Tourism andLuxury Industry; Local Partnerships;Brand Image; LVMH. Gucci; Richmont;Yuan.

Future of Hybrid Cars in the USIn the recent years in the US, the prices ofgasoline were increasing at an alarming rateand had reached a record high level of $2per gallon in 2004 and the demand forgasoline was projected to average around20.9 million barrels per day by the end of2005. This created a lot of pressure onthe consumers in general, and theautomobile manufacturers in particular, toreduce the dependence on foreign oil. Themanufacturers were forced to produce fuelefficient cars and advanced diesel andhybrid technology was considered as analternative. The case discusses theanatomy of the hybrid cars and the issuesfor the success of the hybrid cars in theUS. The case further highlights thechallenges faced by hybrid cars in the US,for acceptance


• This case can discuss where the USautomobile industry is heading to. WillHybrids out run the gasoline cars in thefuture?

• The increasing oil dependency of US andits impact on its economy

• How hybrids can mitigate the growingenvironmental pollution

• The challenges and strategies hybrid carmakers have to face and pursue to sellmore hybrids.

Industry Automobile IndustryReference No. INA0033BYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

US automobile industry; Hybrid cars in theUS; Hybrid Anatomy; Oil dependance;Global Warming; Fuel Efficiency; Toyota

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Prius; Zero Emission Vehicles; Advanceddiesel; US auto Manufacturers; CAFÉStandards; US environmental ProtectionAgency; Emission Levels; Ford; HondaInsight; DaimlerChrysler.

Gucci in 2005: On theComeback Trail

The Italian company, Gucci was a smallluxury leather goods store when started, in1921. But in 2005, it has grown into amulti-brand conglomerate with a colorfulpast and a bright future to look forward to.Gucci is the third-largest luxury goodscompany in the world after Louis VuittonMoet Hennesy (LVMH) of France and theSwiss group Richemont.

Owing to an economic slump and a seriesof other global events, Gucci along withother luxury goods companies saw a badrun in recent years. But since 2004, whenRobert Polet has taken over as the CEO ofthe group, things have started looking upfor the group. Polet has drawn up ambitiousplans for the expansion of the company.Experts wondered whether the companywill be able to bounce back as envisaged byPolet. Or are his plans too ambitious?


• To discuss about the luxury goodsindustry

• To understand about the Chinese leathermarket

• To discuss about Gucci’s performanceunder different leaders.

Industry Luxury Goods SectorReference No. INA0032BYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Luxury goods industry; Gucci; LVMH;Richmont; Robert Polet; Mark Lee;Guccio Gucci; PPR; SARS; Fashionaccessories; Luxury goods in Asia; Luxurygoods in Asia; Luxury Goods in Europe;Slump in sales; Cosmetics; Jewelry.

The US Radio IndustryThis case study takes a look at thetechnological changes that have happenedin the US Radio Industry over the lastcentury. It explains various phases ofdevelopment in radio technology startingfrom the traditional AM/FM terrestrialradio to digital technologies like SatelliteRadio, Internet radios and High Definition(HD) Radios. All these technologies hadcertain advantages as well as limitationsassociated with them. The case endeavours

to raise a debate on which technology wouldcome to dominate the US Radio Industryin the near future.


• To discuss about the terrestrial andsatellite radio

• To discuss about the developments inthe US radio industry.

Industry Radio BroadcastingReference No. INA0031BYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

US Radio Industry; Terrestrial Radio;Satelite Radio; Sirius Satelite Radio;Internet Radio Technology; Satelite RadioTechnology; HD Radio Technology; Futureof US Radio industry; Sirius vs XM; Hertz.National Association of Broadcasters;Federal Communications Commission;AM/FM radio.

Globalization of the Indian FilmIndustry: Reel or Real?

The Indian film industry is one of thelargest industries in the world. Over theyears it has witnessed considerableimprovement in the art of film-making,distribution and exhibition as a result ofglobalisation and recent technologicalinnovations. Such changes have led to theindustry getting noticed by people in thewest, especially Hollywood. This raisesissues on the future of the industry in theinternational circuit and the challenges thatare to be confronted to make it a reality.


• To discuss about the trends in the Indianfilm industry

• To understand how globalisation hasinfluenced a creative industry

• To understand how the growth inBollywood is challenging Hollywood

• To understand the growth of India’sentertainment industry in the worldmarket.

Industry FilmReference No. INA0030BYear of Pub. 2005Teaching Note AvailableStruc.Assig. Not Available

keywords

Cinema; Film industry; Hollywood;Corporatisation; technical advancement;production collaborations; marketing;Bollywood; international awards; Indian

dispora; globalisation; development;piracy; plagiarism; finance.

Are Hybrid Cars the Answer toSoaring Oil Prices in the US?

Rising Oil prices always raised globalconcern and alarm, both for thegovernments and also for the commonman. But it meant something more for theUS since they were the biggest importerand consumer of oil in the world.Economists forewarned that if the USdoesn’t wake up to this, the common manwill be left with two options, feed theircars with oil or feed themselves with food.Nevertheless experts said that, thosevehicles that run on alternate fuels like,hybrid cars could save the US from thispredicament. Even though the hybrid carmarket in the US was in its nascent stage,the people concerned were very muchoptimistic that the cars of the future wouldbe hybrids. This case discusses the perilsand the panacea, to the problem thatseriously affected the US.


• To discuss the need for hybrid cars inthe US.

Industry AutomobileReference No. INA0029BYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Hybrid cars; oil; oil dependency; oil imports;automobile industry; Toyota; OPEC; oilprice; Federal Reserve; Trade deficit; greenhouse effect; environment pollution;mileage; fuel efficiency.

Drive-in Theaters in the US – Onthe comeback trail?

Once considered obsolete, drive-in theatersin the US are seen as a family-friendlyalternative to multiplexes and other formsof commercialised entertainment. Once atthe brink of extinction in the 1980s, drive-in theaters were on the path of revival.They reached their peak in the 1950s. Withthe advent of the cable TV and VCR coupledwith the rising costs of real estate and agrowing reputation of drive-ins as ‘passionpits’, the popularity of the drive-insdeclined in the 1970s and 80s. The 1990ssaw new flickering of life in the industry.Since 1990, about 40 new drive-ins sprungup, and 20 existing ones added new screens.By 2005, about 400 were in operation.

However, the greatest threat seemed to bethe US government’s decision to extenddaylight savings time by a month each yearas part of a sweeping new energy plan,






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which would mean pushing the clockforward by an hour. From 2007, 48 USstates would turn their clocks forward onehour in March, instead of April, and turnback in November instead of October. Thiswould force families to head to a multiplexrather than keep their children awake foran extra hour. This would mean a huge lossfor drive-in theaters. Does this spell doomto the drive-in theaters?


• To discuss how drive-in theaters in theUS can be an alternative for multiplexesand other entertainments

• To understand the role of US governmentin the success of drive-in theaters.

Industry Entertainment/MovieReference No. INA0028BYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Drive-in theatre; Movie; Baby Boom;Films; Daylight saving Time; Camden;RCA; Concession Stand; AM/FM;Attendence; ticket; Frequency; Family;Comeback; Intermission ads.

South Africa’s Telecom Industry:Neotel’s Foray and the New

Competitive LandscapeThe South African telecom market hadbeen the monopoly of the state controlledTelkom, which was the sole provider offixed line telecommunication services.High tariff rates of Telkom hampered thenascent BPO industry, which the SouthAfrican government was promoting toboost employment in the country. Undersuch circumstances, the telecom marketin South Africa was deregulated and Neotelwas launched in August 2006 as the SecondNational Operator (SNO), which is 51%owned by a consortium headed by India’sTata group. It is believed that Neotel wouldgive stiff competition to Telkom, whosemonopoly was characterised by high tariffsand delayed services. As Neotel is the firstcompany to be launched after theliberalisation and deregulation of thetelecom industry in South Africa, otherAfrican nations would be monitoring itsprogress as a prelude to liberalising theirown telecom markets.


• To understand the major forces shapingthe telecommunication market in SouthAfrica

• To analyse the impact of the launch ofNeotel on the South African telecomindustry

• To debate whether the advent of Neotelwould bring true choice to South Africantelecom users who were dependant on amonopolistic service provider.

Industry TelecommunicationsReference No. INA0027Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Telecom industry in South Africa; Telkom;Telecom Tariffs in South Africa;Liberalisation of South African TelecomIndustry; Fixed line telephony in SouthAfrica; BPO Industry in South Africa;Second National Operator; Shareholdingof Neotel; Telecom Tariffs and SouthAfrican GDP Growth; CompetitiveStrategies of Neotel.

Reinsurance Industry in China:Opportunities and Threats for

Foreign ReinsurersIn 1998, nine foreign reinsurers togetherdid business of RMB 52 billion in China,which was mainly from the placement ofthe business in the international marketby the Chinese insurers. By 2005, thesenine foreign reinsurers were doing businessto the tune of RMB 300 billion. China’saccession to the World Trade Organisation(WTO), and the subsequent liberalisationof the insurance and reinsurance sectors,had ushered in vast business opportunitiesfor foreign reinsurers in a market whereChina Re was the only major domesticplayer. But the business potential does notdiscount the threats and challenges forreinsurers.


• To understand the concept of reinsuranceand its importance

• To understand the dynamics of thereinsurance industry in China

• To discuss the business opportunities forforeign players in the reinsurance marketin China

• To understand the various reinsuranceproducts developed for the Chinesemarket

• To discuss the challenges and threats inoperating in the Chinese reinsuranceindustry

• To discuss what foreign reinsurers aredoing to mitigate these threats.

Industry ReinsuranceReference No. INA0026Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Reinsurance; China’s Reinsurance Market;Business Environment; Market EntryStrategies; Market Development; RiskManagement; Reinsurance Products;Property and Casualty (P&C) Reinsurance;Life and Health (L&H) Reinsurance; ChinaRe; Swiss Re; Munich Re; Cologne Re.

The Making of ‘The Da VinciCode’: The Recipe for

Blockbuster?In 2006, The Da Vinci Code registered itselfamong those rare genre of films whosepopularity have been found to be on parwith the novels from which they have beenadapted. By May 2006, The Da Vinci Code,a historical fiction written by Dan Brown,had achieved an all-time international best-seller status with 60.5 million printeditions. The extensive research that wentbehind writing the book resulted in anabsorbing concoction of fact and fiction.The book’s sensational theme that JesusChrist was married to Mary Magdalene andhad sired a bloodline that still exists hasbeen instrumental in its grabbing globalreadership across faiths. It is opined thatthe innovative promotional efforts by thepublisher and the author have also been amajor driving force behind the novel’sphenomenal success.


• To understand the factors that create ablockbuster out of a fictional novel

• To analyse the basic elements thatcontributed to the global success of TheDa Vinci Code

• To debate whether controversies andcriticisms are the perennial add-ons forany blockbuster novel or a movie basedon it.

Industry Entertainment IndustryReference No. INA0025Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

The Da Vinci Code; Dan Brown; OpusDei; Hollywood Blockbusters; Leonardo DaVinci; Oscars; Ben-Hur; Google; TheVatican; Mary Magdalene Robert Langdon;The Vitruvian Man; The Last Supper;Louvre; Sony Pictures.

Low Cost Carriers in IndiaThe aviation industry in India underwent amajor change in 1994, after the privateoperators were allowed to operate onscheduled routes. Although seven airlinesbegan their operations soon, but only two

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players survived. The case discusses in detailhow the private airlines and the low-costcarriers are trying to tap the huge potentialavailable for them in India. Finally, thecase highlights the challenges faced by thesenew entrants.

The case includes a note on the low-costairlines of US and UK.


• To illustrate the success and growth oflow-cost carriers in developed countriesand India

• To discuss and understand Porter’s 5force analysis in LCC industry.

Industry AviationReference No. INA0024AYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Low-Cost Carriers; No frills airlines;Aviation Industry; Strategic Management;air travel in India; Core Competence;Competitive tariff; airline marketpotential; Indian Middle class;infrastructure; aircraft maintenance;aircraft fuel; Indian Airlines; Jet Airways;Air Deccan; Kingfisher Airlines; SpiceJet;GoAir.

China’s Home ImprovementMarket: Should Home Depot

Enter or Will it Have a Late-mover(Dis)advantage?

Since the mid-1990s, the homeimprovement market in China is growingrapidly. Besides housing reforms, rise inpeoples’ incomes, purchasing power andproperty investment encouraged privatehome ownership in China. Homeownershipin China, which was non-existent twodecades ago, has increased to 70% today.New homeowners have to fit up the basicslike flooring, plumbing and furniture, asthe houses are unfinished ones. This hasencouraged consumers to engage in do-it-yourself (DIY) and home improvement/decorating activities. Coupled with this hugepotential growth and market liberalization,China’s home improvement marketattracted many domestic and foreign homeimprovement retailers like IKEA and B&Q.China, with a population of 1.3 billion anda rapidly growing economy, has becomean attractive market for many foreigncompanies. Atlanta-based Home Depot,the world’s largest home improvementretailer, is weighing its China options:should it enter or not. Some analysts aresceptical about its late-moverdisadvantage? Or does this delay help inshortening its learning curve and riserapidly.


• To understand the evolution of China’seconomic growth

• To debate on the inequalities betweenthe geographical regions in China

• To analyse and understand the housingreforms in China

• To analyse China’s home improvementmarket industry to understand theopportunities and challenges for homeimprovement retailers in China

• To debate whether Home Depot shouldenter China or not

• To discuss whether Home Depot’s lateentry would be an advantage or adisadvantage.

Industry Home improvement RetailingReference No. INA0023Year of Pub. 2006Teaching Note AvailableStruc.Assig. Available

keywords

Foreign home improvement retailers inChina; China’s home improvementindustry; Do-it-yourself (DIY) and buy-it-yourself (BIY); Late-mover disadvantageand first-mover advantage; Home Depot,B&Q and IKEA; China’s housing reforms;China’s economy; real estate; propertymarket; Joint ventures/strategic alliancesand partnerships; Market entry strategies;China’s urban-rural divide; Orient Home,Homeway and Home Mart; Incomedisparity; GDP (gross domestic product)and purchasing power parity.

A Successful Cross-borderPartnership in PharmaceuticalIndustry: The Case of Roche-

Chugai in JapanAfter its early stage of development priorto the 1970s, the global pharmaceuticalindustry witnessed an accelerated growthdue to huge investment in R&D, adoptionof innovative technologies and thediscovery of new drugs. Blockbuster drugscreated multi-billion dollar companiescalled the Big Pharma that dominated thepharmaceutical industry, which was one ofthe most profitable industries in the world.However, at the turn of the 21st century,falling productivity of R&D investmentand tough government regulations hadresulted in scarcity of new drugs andspiraling new drug development costs. Inaddition, a slew of patent expiries, risingcompetition from generic drugmanufacturers and declining consumer trusthad created a difficult businessenvironment. These conditionsprecipitated a trend of strategic alliancesamidst pharma companies to control costsand ensure market positions. In 2001,

Switzerland-based Roche Group merged itsJapanese operations with one of Japan’sleading pharma companies, Chugai. Despitethe low success rate of cross-borderalliances, with a Swiss parent company anda Japanese management team, the Roche-Chugai partnership successfully achievedthe estimated R&D, revenue and costsynergies. The outlook for the company’sfuture was also very bright.


• To identify and discuss the strategicinflection points in the pharmaceuticalindustry

• To discuss the underlying reasons, whichhave spawned strategic alliances amongstcompetitors in the pharmaceuticalindustry

• To discuss the critical success factors incross-border alliances

• To analyse the reasons for the successof the Roche-Chugai partnership inJapan and the factors that contribute toits sustainability.

Industry PharmaceuticalsReference No. INA0022Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Global pharmaceutical industry; Businessenvironment; Generic drug manufacturers;Pfizer Merck GSK (GlaxoSmithKline);Patent protection patent expiry; Clinicaltrials; New drug development process;Research and development investment,research and development productivity;Blockbuster drugs; Consumer behaviour;Promotional advertising expenditure; Newchemical entity (NCE); Food and DrugAdministration (FDA); Cross-borderalliances; Mergers and acquisitions.

India’s No-frills Airlines: No-profitAirlines?

Although the private sector laid thefoundation of India’s aviation industry withthe setting up of Tata Air Lines in 1932,for a substantial period (1953-1994) theaviation industry had been highly regulatedwith abysmal government participation.However, subsequent deregulation of theindustry in 1994 witnessed the entrance ofprivate players. The Indian aviationindustry evolved further with the entry ofthe No-frills or low-cost airlines in 2003with the advent of Air Deccan. Other low-cost competitors too joined the fray, notonly taking competition to a new level butalso expanding the market as a whole. Butcertain domestic policies like higheraviation fuel charges and airport chargeswere hindering the low-cost airlines from




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reducing prices or increasing profits. Itremains to be seen as to how the Indianlow-cost carriers would take on thechallenge.


• To discuss how the introduction ofrevolutionary business concepts in anindustry affect the business prospects oftraditional players

• To discuss the business and revenuemodel of low-cost airlines

• To discuss how the Indian low-costairlines were competing to reduce costsand increase profits

• To discuss the challenges the Indian low-cost airlines face and debate on thepossible solutions.

Industry Indian Aviation IndustryReference No. INA0021Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Low-cost airlines; No frills airlines; Indianaviation industry; Air Deccan; Businessmodel of low-cost carriers; Point-to-point;Hub-and-spoke; Full-service airlines;Business design for low-cost airlines; Coststructures; Internet-based distribution.

Japan’s Private Banking Industry:The Competition

Although Japan is considered as one of thefastest growing markets for privatebanking in Asia, the concept of privatebanking was alien to the Japanese for manyyears. Citibank was the first financialinstitution that introduced private bankingto the Japanese and played an importantrole in the development of private bankingin the country. Following Citibank'ssuccess, many other financial institutions,both domestic and foreign, entered theindustry. However, the private bankingindustry in Japan received a blow in theyear 2005, when Citibank was issued a noticeto close down its private banking operationsin the country, for violating the rules andregulations of the Japanese financialsystems regulator Financial ServicesAgency [FSA]. After Citibank pulled outof private banking in the country, thecompetition among the other financialinstitutions providing private bankingservices intensified. The economic reformsundertaken by the Japanese governmentalso encouraged many financial institutionsto provide private banking services to theirclients. Analysts expect demand for privatebanking services in Japan to increasemanifold in the coming years.


• To understand the development ofprivate banking industry in Japan

• To discuss the role of Citibank in thedevelopment of private banking in thecountry

• To discuss the competitive scenario inthe private banking industry in Japan

• To discuss the opportunities availableto various players present in theJapanese private banking industry,especially after the withdrawal ofCitibank from the industry

• To debate whether various foreign anddomestic financial institutions weretaking the right step by taking increasingexposure to the private banking industryin Japan.

Industry Private BankingReference No. INA0020Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Private banking; Japan; Citibank;Competition; High net worth individuals;Government financial institutions; Postalsavings system; Foreign banks; Japanesefinancial system; Reforms; Baby Boomers;Wealth management services.

Automobiles: Made in China,Sold in America?

China, with a vast skilled and low-cost labourforce, has transformed itself into a hotbedof automobile manufacturing for bothmultinational and domestic companies.Chery, a state-owned carmaker, is one ofthe fastest growing domestic automobilemanufacturers. Like a few of its domesticcompetitors, Chery also plans to export itscars to the developed markets, especially inthe US. However, the traditional notion ofAmerican customers that ‘Made in China’goods are of inferior quality, might affectChery’s prospects in the US.


• To understand the dynamics of China’sautomobile market

• To discuss how the ‘country as a brand’affects the sales of its products in foreignmarkets

• To discuss Chery’s internationalexpansion strategies and how it is makingefforts to cope with the regulatory andtechnological challenges to establish itsbrand in the US market.

Industry Automobile ManufacturingIndustry

Reference No. INA0019

Year of Pub. 2006Teaching Note AvailableStruc.Assig. Available

keywords

Foreign carmakers in China; China’sautomobile industry; Chinese automobilebrands; China as an automobilemanufacturing hub; Low-costmanufacturing countries; Localisation;High value added activities; Branding of‘Made in China’ products; Expansionstrategies of Chery; Country as brand;Challenges for Chinese carmakers.

India's Luxury Car Market: TheCompetition Heats Up

The impact of India’s initiatives oneconomic liberalisation and globalisation(post 1991) was most apparent in theautomotive sector. The economy wasgrowing at 7% per annum and theinformation technology revolution inIndia had created a sizable professional classwith huge purchasing power. Moreover, thenew age Indian was becoming morecomfortable with his riches and flagrantdisplay of wealth, which ushered inopportunities for global luxury carmakersin India. Analysts estimate that the luxurycar segment would be growing at a rate of28% annually. More than 7,000 luxurycars were sold in India every year and nearly20 global luxury brands were competingfor the market share.


• To highlight the strategies adopted byglobal luxury car markers for India

• To discuss the competitive scenario andthe future of the luxury car market inIndia.

Industry AutomobileReference No. INA0018Year of Pub. 2005Teaching Note AvailableStruc.Assig. Available

keywords

Indian luxury car market; Premium carmanufacturer; Indian economy; Indian carindustry; Quantitative restrictions;Economic liberalisation and globalisation;De-licensing of automotive sector;Consumer behaviour; Marketing strategies;Brand awareness; Dealer networks;Customs duty.

The Advent of PersonalisedMedicine: New Business Model

for Pharmaceutical Companies?The pharmaceutical industry’s blockbusterbusiness model seems to be fading off.Innovation is resulting in just a trickle of

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new drugs, Big Pharma is losing its patentsand lawsuits are shaking up the industry. InAugust 2005, a Texas jury ordered the USdrug company Merck, to pay US$253million (£141 million) to the wife of atriathlete who died after taking the firm’sblockbuster Vioxx. That was only the firstof thousands of lawsuits filed against Merckon the same charge, the situation of Merckcan well be extrapolated to the industry.What went wrong with the Big Pharma?Are the problems self-inflicted? For toolong the industry relied on a belief that asingle drug can cure a particular ailment inall the affected people across the globe.This belief stands refuted by the geneticmapping and the research thereof. Newfindings suggest that every individual’sreaction to a particular drug is unique, basedon their unique genetic setup. Every diseasehas a number of variants, again based ongenetic variations, and therefore demandsunique medication called personalisedmedicine. Clearly, analysts say that thedays of the mass model of drugs have cometo an end.


• To highlight the rise of personalisedmedicine

• To discuss whether the seasoned playersin the pharmaceutical industry shouldadopt this, and the payoffs therewith.

Industry Pharmaceuticals ManufacturersReference No. INA0017Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Personalised medicine; Business model ofpharmaceutical companies; HumanGenome Project; DNA sequences; BigPharma companies; Blockbuster drugs;Innovation in pharmaceutical companies;Research and development inpharmaceutical industry; Patents onblockbuster drugs; Pharmacology; Merck;Drug development process.

Low Cost Carriers inMexico:Growth Prospects and

ConcernsMexico’s flagship air carriers are Mexicanaand Aeromexico. Though the two airlinescontrolled 80% of the Mexican market,since 2000, due to the high prices theycharged, they started losing market shareto other domestic and US airlines. Inaddition, many US low-cost carriers enteredthe Mexican aviation market andpopularised the concept of low-cost airtravel, which resulted in the rise in airpassenger traffic in Mexico. To benefitfrom this growth, several new companiesand existing Mexican airlines, including

Mexicana started their own low-costairlines. However owing to some concernsanalysts are divided on the prospects oflow cost carriers in Mexico.


• To discuss the evolution of the Mexicanairline industry over the decades, andthe growth of low-cost carriers in thecountry

• To discuss the growth prospects andconcerns for the low-cost airlines inMexico.

Industry AirlinesReference No. INA0016Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Mexican airlines; Low-cost carrier; Code-sharing agreement; Mexicana;Restructuring plan; Breakeven;Aeromexico; Crossair; Loss-making routes;Incompetent managers and poor decisions;Market share; Structural problems; Growthstrategies; Mexican airline industry; Unitedairlines.

Global Pharma Industry: In Needof a New Business Model?

Once celebrated as the engine of modernmedical innovation, pharmaceutical firmsare lambasted for the low productivity oftheir research, their wasteful marketing and,above all, for the high prices that theirproducts command. The drug companiesdefend their prices, and their profits, byciting the high cost of making new drugs,more than US$800 million. This infuriatescritics, who argue that the firms could easilylower prices and find savings onpromotions without touching their preciousresearch and development budgets. To meetthis end they propose a new business modelfor the pharma giants, which will focus onlowering marketing budgets and embracinginnovative methods in dealing with highcosts of drug making.


• To discuss the pros and cons of theexisting business model

• To discuss the essence of the proposedbusiness model.


keywords

Global Pharmaceutical Industry; Businessmodel of drug companies; Drug industry;

Big Pharma; Innovation inpharmaceuticals; Drug marketing;Advertising for drugs; Blockbuster drugs;Patent laws for drugs; Cost components ofdrug companies; Research and developmentin drug companies.

Mobile Information Technologyand Communication Devices:

The Energy CrisisMobile information and communicationdevices are instrumental in fulfilling themodern day needs of flexibility, mobility,communication and convergence.Conceding to the customer demands formore sophistication and convenience, themobile device manufacturers areincorporating advanced features resultingin the emergence of mobile phones withcamera, music player and colour screen,laptops and notebook computers withpowerful microprocessors. But thetechnology of rechargeable batteries,required to power these features, is notprogressing equally, thus creating a powergap. The insufficient power supply isgradually emerging as the Achilles' heel inthe progress of the communicationsindustry. The delay in development ofother viable alternatives to meet this powergap is further worsening the situation,posing the threat of an energy crisis forthe future that could lead to stagnation ofadvancements in mobile devices.


• To highlight the technologicaladvancements in the mobile informationand communication devices, theevolution of rechargeable batteries thatpower the mobile devices, and thereasons for an impending energy crisis

• To discuss the viable measures to dealwith the impending energy crisis.

Industry Mobile Electronic DevicesReference No. INA0014Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Mobile communication electronic devices;Mobile information technology devices;Energy sources for electronic devices;Battery technologies; Rechargeablebatteries; Nickel metal cadmium batteries;Lithium ion polymer batteries; Fuel celltechnology; Power-hungry mobile devices;New generation portable devices; Portablepower sources; 3G (third generation) and4G (fourth generation) communicationtechnologies; Advanced features inelectronics; Power gap and energy crisis;Battery technology innovation.




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Pharma Majors in DevelopingCountries: An Extended

Corporate Social ResponsibilityThe developing countries have always hada crisis when it came to disease andmedicine. With twelve major infectiousdiseases afflicting them and non-availabilityof drugs, their woes worsened due topharmaceutical neglect of developingcountries. Questions arise as to whetherthe pharma giants of developed countrieswere actually serving the people in suchpoor countries, where diseases like HIV(Human Immunodeficiency Virus)/AIDS(Acquired Immune Deficiency Syndrome)and tuberculosis kill millions each day.Meanwhile the pharma majors werecriticised for their profit-oriented businesspractices undermining social responsibility.In an effort to make drugs available, thegovernments of these countries took someinitiatives, which led to reduction of pricesof the patented drugs and the onset ofgenerics in these markets.


• To highlight social responsibility factorof the global giants and how crucial itcan become for their survival in thefuture

• To discuss significance of the WTO’s(World Trade Organisation) Dohadeclaration, which outlined the inclusionof compulsory licensing and parallelimporting to serve the interests of thecommon man in such developingcountries

• To discuss the various drug donationprogrammes, private-public partnershipsand the price war initiated by theintroduction of generics in thedeveloping countries.


keywords

Social responsibility; Third World diseasesand market; Drug patent regime;Intellectual property rights; Uruguay roundof GATT (General Agreement of Tradeand Tariffs); Pharmaceutical neglect;Pursuit of profit maximisation; NGO’s(Non-governmental organisation) criticismagainst pharma giants; Doha Agreement;Lawsuits and governments; The socialfront.

France’s Wine Industry: In Needof Better Marketing

In the early 21st century, the wine industryin France, an icon of French culture, hasbeen passing through a troubled phase. The

last four decades of the 20th century hadseen per capita domestic consumption ofwines reducing from 126 litres in 1960 tojust 56 litres by 2000. The import of Frenchwines in America and Britain had alsoreduced considerably since the mid-1990s.With a vast stock of unsold wines, theFrench wine industry was plagued by a hugefinancial crisis.


• To highlight the myriad problems facedby the French wine industry

• To discuss the initiatives taken by theFrench government to bail out theindustry from the crisis.

Industry WineReference No. INA0012Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

France; French wine industry; Varietals;Appellations; Bordeaux; French wineexport; Appellation d’Origine Controlee(AOC); Institut National des Appellationsd’Origine (INAO); New world; Evin Law;Fermentation; Varietal labelling; Alcoholadvertising; Industrial distillation of wines.

Global Automobile Industry:From Mass Production to Mass

CustomizationBy the end of the 1990s, the globalautomobile industry began to see flaws inits much acclaimed mass production model.Henry Ford’s mass production modelbrought about manufacturing excellencethrough economies of scale and costefficiencies in automobile industry.However, with the changing marketscenario, the ‘Big Three of Detroit’, alongwith other top manufacturers were feelingthe pressure of meeting the sophisticatedand ever-changing consumer preferencesin the market. Consumers had becomechoosy about the color and styles of themodels they purchased. Masscustomisation-making cars to-order andoperating in niches like environmentalfriendly cars are being considered as apossible solution to the problems thatbesiege the industry.


• To highlight the shift from the massproduction model to niche segments inthe global automobile industry

• To discuss the initiatives taken by thebig three of Detroit.

Industry AutomobileReference No. INA0011Year of Pub. 2004

Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Detroit big three; Mass production; Build-to-stock; Dell’s mass customisation; Entrybarrier; Economies of scale; GeneralMotors buy-power; Fuel-efficient cars;Henry Ford; Alfred Sloan General Motors;End of Detroit; Zero inventory; e-Commerce; Five-day-car; Leanmanufacturing.

The South African Car Industry:The Resurgence

The South African car industry has alwaysattracted the major carmakers in the worldsince the 1920s. Although the industrymanaged to overcome the turmoil of theGreat Depression and the Second World War,due to the Apartheid policy of itsgovernment, there was an internationalboycott of South African trade. After thenew democratic government came to powerin 1994, the country started takinginitiatives to bring back its past glory as thecar-manufacturing hub of Africa. By the endof 2000, the auto industry was contributing5.4% to the GDP of South Africa.


• To highlight the initiatives taken by thedemocratic South African governmentto reclaim the status of Africa’s car-manufacturing hub

• To discuss the effects of such initiatives.

Industry AutomobileReference No. INA0010Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

South Africa; Delta Motor Corporation;General Motors; Volkswagen; Ford;Mercedes Benz; Completely knocked downversions; Apartheid; United auto workers;Democratic Republic of South Africa;BMW; Nelson Mandela; Toyota; Nissan;Albert Wessels.

The Demise of Detroit: Why theBig Three Lost

Detroit’s Big Three - ‘General Motors’,‘Ford’ and ‘Chrysler’ reigned supreme inthe US automobile market all through the1960s and 1970s. But the Japanese,German and Korean car manufacturers, whogradually eroded the Big Three’s US marketin the 1980s, challenged their supremacy.The invasion started with the small-carsegment and by the end of the 1990s, theSUV and the luxury car segments had alsobeen captured. The Big Three had

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underestimated their competition andfailed to understand the pulse of the market.With its inflexible plants, high legacy costsand their looming labour problems, Detroitwas in deep waters.


• To highlight the gradual erosion of theBig Three’s US market

• To discuss the reasons for such erosion.


keywords

General Motors; Ford; DaimlerChrysler;Toyota; Honda; BMW; Volkswagen;Detroit; Motown; United Automobile,Aerospace and Agricultural ImplementWorkers (UAW); Hyundai; Market shareof Big Three; Big Three; The end ofDetroit; US automobile industry.

Low-Cost Carriers in AsiaThe concept of a Low-Cost Carrier (LCC),that got instant popularity in the US in1970s, was adopted in Europe in the 1980s.Asia was a little slow in picking up thetrend. The first LCC in Asia, the ‘OrientThai’, started in the mid-1990s in Thailand,faced lot of problems as the governmentof Thailand saw it as a threat to its nationalcarrier, ‘Thai Airways International’.Subsequent deregulation of the domesticaviation industry in Thailand came as abreather for ‘Orient Thai’. Following thisexample many other LCCs sprang up indifferent Asian countries like the ‘CebuPacific Air ’ (Philippines), ‘Air Asia’(Malayasia) and Deccan Air (India).Seeking to tap the potential of LCCs, eventhe national carriers jumped into the frayin 2003. In December 2003, SingaporeAirlines (SIA) announced the launch of itsforthcoming LCC – ‘Tiger Airways’. ThaiAirways was also planning to launch itsown LCC , ‘Nok Air’, by mid-2004.


• To highlight the emergence of low costcarriers in Asia

• To discuss the increased competitionfrom the national carriers.

Industry AirlinesReference No. INA0008Year of Pub. 2004Teaching Note AvailableStruc.Assig. Available

keywords

Low-cost carriers (LCC); Asia; Malaysia;Philippines; Thailand; Singapore; India;

AirAsia; Orient Thai; Tiger Airways; One-Two-Go; Anthony Fernandes; UdomTantiprasongchai; Singapore Airlines; AirDeccan.

Japan’s Tech Industry: TheComeback Trail

Japan’s technology industry, which hadbeen weak since the bursting of the ITbubble, has suddenly been rejuvenated.Earlier Japanese companies like Sony,Sanyo and Matsushita were considered tobe the benchmark for tech goodsworldwide. The recent development inother Asian countries like China, Koreaand Taiwan had brought them at par withJapan. Companies like LG of Korea startedgiving tough competition to their Japanesecounterparts. But the demand for Japaneseelectronics and other goods in recoveringworld markets had helped lift the economyout of a 10-year slump. Digital applianceproducts such as mobile phones and digitalversatile disc (DVD) devices werepropelling this movement.


• To highlight the effect of thetechnological industry on the Japaneseeconomy.

Industry ITReference No. INA0007Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Japanese tech. industry; Japanese economy;South East Asian financial crisis; Japaneseexports and imports; Southeast Asiancountries; Lucky Goldstar (LG); Samsung;Digital appliances; Liquid crystal displays;Yen appreciation; Plasma TV; Sony;Matsushita; Sanyo; Semiconductor industry.

Indian Auto ComponentsIndustry

Contrary to popular perception thatliberalisation stifles the growth of domesticmanufacturers, Indian auto componentsindustry has evolved to compete withglobal companies. During this process ofevolution, the industry produced some ofthe world-class component manufacturerslike Sundaram Fasteners and Bharat ForgeLtd. Not just domestic manufacturers, evenglobal giants like Delphi and Visteon haveset up their manufacturing bases in India.But the industry had its own challenges interms of meeting quality norms, soundlogistics and the like. These problems werefurther coupled by the fewer number oftier 1 suppliers. Analysts attributed theproblems to the nascent state of theindustry.


• To highlight the growth of Indian autocomponents industry in the context ofliberalisation

• To discuss the challenges faced by theindustry.

Industry Automobile and TransportReference No. INA0006Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Low-cost auto components; Autocomponent makers; Maruti Udyog Limited;Mahindra & Mahindra; Phasedmanufacturing programme; AutomotiveComponent Manufacturers Association(ACMA); Product liability clause; Tier 1suppliers; Original equipmentmanufacturers.

India: An Automobile Hub in theMaking

Forty years ago when Peter Druckerphrased the auto industry as the ‘industryof industries’, little did the carmakers knowabout outsourcing and technology sharing.Now, when most of the markets arebrimming with competition from acrossthe globe, carmakers had no option but tokeep their costs low. In this context, Asiafirst emerged as a manufacturing hub withcountries like India, South Korea and Chinabecoming outsourcing destinations. TheIndian context is particularly striking asthe country opened its doors to foreignautomakers only in 1992. After a littlemore than a decade, Indian automobileindustry stood as a shining example ofproducing low-cost cars with internationalquality norms. From DaimlerChrysler toFord to Hyundai, most of the globalcarmakers today see India as the globalhub of car manufacturing and componentoutsourcing. Even indigenous carmakerslike Tata Motors and Mahindra &Mahindra have made inroads into the globalmarkets. Recently, Tata Motors reachedan agreement with MG Rover of Britain tosupply 100,000 of its ‘Tata Indica’ toEurope.


• To highlight Asia’s emergence as amanufacturing hub in the increasingcompetition and the pressure to keepthe costs low

• To discuss the outsourcing in the Indianautomobile Industry.






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keywords

Liberalisation; Foreign direct investment(FDI); Maruti Udyog Limited; HyundaiMotor India; Tata Motors; MG Rover; Autoancillary industry; Original equipmentmanufacturers (OEMs); Exportdestinations; Product liability clause;DaimlerChrysler AG; Economic reforms;Outsourcing strategies; R&D gap; DelphiIndia

Big Pharma R&D: Is it worthspending?

Big Pharma like Pfizer, Glaxo and Novartisspend as much as $30 billion a year onR&D. But the number of new molecularentities resulting from such R&D spend isshrinking.


• To highlight the decreasing number ofnew molecular entities

• To discuss the other challenges faced bytoday’s Big Pharma.


keywords

Big pharma; R&D; Pfizer; Novartis; Newmolecular entities; Eli Lilly; Astrazeneca;Bristol-Myers Squibb; Sanofi-Synthelabo;Schering-Plough; Merck; Pharmaceutical;GlaxoSmithKline; USFDA; Drugs.

Cost Advantages of Low CostCarriers in USA

In the1970s, the deregulation of the USdomestic aviation gave rise to a new kindof airlines - the ‘No-frills’ or ‘Low-Cost’carriers. The low-cost carriers had anentirely different business model from theregular or the traditional carriers. The firstlow-cost carrier to start operations wasSouthwest Airlines in 1971. Since the1970s, the low-cost carriers have alwaysclocked profits. Even in the aftermath ofthe September 11 terrorist attacks in theUS, while traditional airlines had togetherlost $10 billion in 2002, Southwest earned$418 million for its 30th consecutive year.As the traditional airlines suffered fromhigh operational costs for long, they alsodecided to enter the low-cost game tosustain their profits and to regain themarket share they had ceded to their lowcost counterparts. On April 15th 2003, DeltaAirlines launched its low-cost arm, ‘Song’,followed by ‘Ted’ by United Airlines in late2003.


• To understand the low-cost carriers’business model

• To discuss the emerging scenarios in theAmerican airline industry in the light ofmajor carriers’ entry into the low-costarena.

Industry AirlineReference No. INA0003Year of Pub. 2004Teaching Note AvailableStruc.Assig. Available

keywords

Low-cost carriers in USA; Cost structurein aviation industry; Regular carriers inUSA; Losses in the US aviation industry;Deregulations in the aviation industry; Huband spoke system; Market share of low-cost carriers; Operating costs in the aviationindustry; Business models of low-costcarriers; Southwest Airlines; On-line airticket reservation; Cost-cutting measuresat Delta Airlines; Cost-cutting measures atAmerican Airlines; Song and Delta; Bigcarriers fighting back.

Transnational Alliances in CivilAviation

Since its inception as a means of masstransport in the 1940s, the civil aviationindustry worldwide has always been understringent government regulations. Due tothe fragmentation of the industry, itsuffered from operational inefficiencies,financial losses and poor customer services.This led to changes in business models ofthe industry from time to time –deregulations in domestic aviation in manycountries followed by strategicinternational alliances between majorairlines of different nations. In September2003, a new business model emerged whenKLM (Royal Dutch Airlines) merged withAir France to mark the first merger of twonational flagship carriers.


• To highlight the need for change in thebusiness model of the civil aviationindustry

• To discuss the significance and effectsof the new model.

Industry AirlineReference No. INA0002Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Aviation alliances; Mergers in aviationindustry; Regulations on airlines; Chicagoconvention, 1944; KLM-Air Francemerger; Code sharing agreements in

aviation industry; First transatlanticalliance, 1993; SkyTeam; Hub and spokesystem; Deregulations in the airlineindustry; Strategic alliances betweenairlines; Open skies; Aviation networks;Aviation industry after September 11,2001; Consolidation of the aviationindustry.

Mercedes-Benz: QualityConcerns

By the end of 1990s, Mercedes-Benz, thecar that had been adored by Presidents andPopes for seven decades, was witnessingrising customer complaints regarding itsquality. Mercedes, which ranked No.1 inthe first ‘Vehicle Dependability Survey’ ofJ.D. Power and associates in 1990, saw itsrank slipping to No.3 in 1999 and then toNo.26 in 2003.


• To discuss the reasons for the qualityproblems of Mercedes A-Class and M-class cars

• To discuss how in turn this affected theoverall brand image of Mercedes.

Industry AutomobileReference No. INA0001Year of Pub. 2003Teaching Note Not AvailableStruc. Assign. Not Available

Keywords

Mercedes-Benz; History of Mercedes;Trademark of Mercedes; Quality ratingsof Mercedes; JD Power; Quality problemsat Mercedes; Firsts at Mercedes; Qualityconcerns at Mercedes; Quality checks atMercedes; Vehicle dependability study;Initial quality rankings; Customercomplaints at Mercedes; Suppliers ofMercedes in the US; Grievances aboutMercedes; MCG Best.

'San Lu', The Chinese MilkProducts Manufacturer's Product

Failure: Managing the Crisis?This case study's primary objective is totrigger a discussion on how to manage acrisis keeping in mind three very importantfacts: a) the crisis emanated from a productfailure, b) the product is highly sensitive,i.e. it's a food item and c) when thecompany in question comes from China,which has recorded serial product failures.Since the 21st century, China has beenknown for its food crises ranging from fakemilk powder and pet food to duck eggs and

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toothpaste. In September 2008, thecountry witnessed another milk powdercrisis that sickened and killed many babies.The case delves into the reasons for whythe country is so prone to food crises. Thelatest crisis involved San Lu, one of thelargest domestic dairy firms. In spite ofbeing one of the largest and the most trusteddairy firms, San Lu's milk powder was foundto be contaminated with an industrialchemical, melamine. Unfortunately, therewere other 22 firms involved in the crisis.To manage the crisis, San Lu made a muchdelayed product recall and issued a publicapology. However, are these measuressufficient to undo the damage and rebuildcustomer trust in a country where foodsafety is consumer's first priority andcutting back on dairy purchases isunavoidable? The case delves into thechallenges that San Lu, the dairy industryand China would face in refurbishing itstainted image.


• To understand and analyse the reasonsfor serial product failures and frequentfood crises in China

• To analyse the San Lu milk crisis andunderstand the reasons behind it

• To explore the ways and means availablefor San Lu to manage the crisis in theshort term as well as the long term.

Industry Dairy industryReference No. TRT0136Year of Pub. 2009Teaching Note AvailableStruc.Assign. Available

Keywords

Food supply chain, Crisis management,logistics, Brand image, Quality control,Regulatory system, Business ethics,Corporate Social Responsibility, Made inchina, Corporate image, Internationaltrade

Vodafone (C): Sarin 'Follows'Pug

To quickly recoup from the growth crisisand capitalise on the fastest growing mobilemarket in India, Sarin found his desi routesthrough HTIL's bid. Third in the Vodafonecase series, this case study presents Sarin'ssignature deal in clinching Hutchison Essar'smajority stake. Not every day that onegets to control a big player in a highlyregulated and competitive environment.Thereby, Vodafone's acquisition ofcontrolling stake in Hutchison Essar wasvery crucial for its growth in emergingmarkets. The case study highlights Sarin'sstrategic efforts in establishing its presencein India like rebranding initiatives toincrease its brand awareness through

massive promotional campaigns,infrastructure sharing with other networkoperators and others that are exclusivelyfocused on reaching the low-end customersegments. However, Sarin decides to quitthe company leaving his successor,Vittorio Colao, with a pile of unfinishedbusinesses. Given the scenario, canVodafone succeed in the Indian marketamid stiff competition from large family-run companies like Bharti, Reliance andTata groups? Can its growth in Indianmarket compensate for its stalled growthin Europe? What are the challenges Colaowould face in the future?


• To justify Vodafone's decision to acquirecontrolling stake in Hutchison Essar

• To evaluate Vodafone's strategies to winthe Indian customers

• To examine Vodafone's rebrandingstrategies in India

• To emphasise Vodafone's successfulperformance in Indian markets

• To analyse the growing competition andother challenges to Vodafone in India

• To examine Sarin's exit from thecompany and potential challenges forhis successor

• To suggest how Vodafone can gainsustainable competitive edge indeveloping countries like India.

Industry TelecommunicationReference No. TRT0135Year of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Mobile; Hutchison Essar; Rebranding;Managing in Troubled Times Case Studies;Vodafone; Acquisition; Infrastructure;Bundling; 3G; GSM; CDMA; Spectrum;Tariff; Wars; MVNOs; Vittorio Colao;DoT; COAI; and TRAI

Vodafone (B): Sarin Finds His DesiRoutes?

Stalled growth in major markets amiddeclining profitability could no longerjustify Vodafone's investments inacquisitions. Hence, the new CEO, ArunSarin's immediate task in hand was tointegrate the far-flung empire. A sequel tothe case study, Vodafone (A): Sarin GetsStumped!, this case study emphasisesVodafone's foray into emerging marketslike Turkey, Romania, Africa and India. Ata time, when Vodafone was eager to makea mark in India – world's fastest-growingmobile market – HutchisonTelecommunications International Ltd.

(HTIL) offered to sell off its majority stakein Hutchison Essar. With a backdrop of achronology on Indian telecommunicationsindustry and Hutchison Essar's presence inIndia, the case study highlights Vodafone'sdilemma in joining the race for HTIL bid.Should it wait for increasing its minoritystake in India's leading telecom operator,Bharti AirTel or join the race for HTIL'sbid? Amid this situation, it remains to seewhether the Indian-born CEO routesVodafone's new growth map to his homecountry or find out a new way to flourishin the market.


• To discuss the intricacies of operatingin an emerging market

• To examine Vodafone's foray intoemerging markets and its way of handlingthe challenges

• To discuss the development trends inthe Indian telecom industry and itsgrowth potential

• To examine the growth strategies ofHutch in India

• To analyse whether Sarin's Indiannativity would help him chartVodafone's new growth map in India

• To resolve Vodafone's dilemma –whether to bid for HTIL offer or to waitfor further stake in Bharti AirTel.


Keywords

Vodafone; Emerging Markets; CostReduction; Monopoly; Telecom Circles;Licensing Agreements; BSNL; MTNL;Managing in Troubled Times Case Studies;VSNL; Bharti AirTel; Reliance; Hutchison;Market Entry; ARPU

Vodafone (A): Sarin GetsStumped!

Vodafone, one of the leading wirelesscompanies was lurching in losses – biggestever in the European corporate history –owing to its legacy of expensive buyouts,ill-timed exits and its own strategic flaws.At a time when rivals were moving towardsconvergence of Information,Communications and Technology,Vodafone's mobile-only approach was aspectacular failure. Aggressive expansionsamid growing market saturation, strugglingunit and failure to make a mark in the US,brought Vodafone's growth engine to a halt.Amid such situations of crisis, Arun Sarinsucceeded Christopher Gent. Given the




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scenario, is the shine wearing off forVodafone? What challenges do Sarin face?Can he revive the company back to itsglory days? Where should Vodafone lookfor growth now?


• To discuss the intricacies of intensifyingcompetition in the telecom industry andways to gain competitive edge overothers

• To discuss the role of mergers andacquisitions as an important strategy foraggressive growth plans, particularly inthe case of international expansions

• To discuss the success story of Vodafonein the global telecom industry andidentify the factors that has stalled itsgrowth in its major European markets

• To examine the leadership traits of Gentand Sarin during situations of crisis aswell as growth opportunities

• To identify the various challenges facedby Sarin in carving out a successfulgrowth path for Vodafone

• To suggest different options forVodafone's sustainable growth in maturedmarkets.


Keywords

Telecom; Convergence; Europe;Consolidation; 1G; 2G; 3G; GSM andCDMA; Value Chain; Market Penetration;Competitive Advantage; Expansions;Managing in Troubled Times Case Studies;Acquisitions; MVNO; Takeover;Leadership; Arun Sarin

Nokia (A): A Stable Player in aTurbulent Industry

With an estimated global market volumeof 1.15 million units in 2007, the mobilehandset industry is the largest consumerelectronics market in the world. However,from 2008, growth has slowed down forthe industry that till now has enjoyed adouble digit growth. Added to the woes isthe increase in demand for low-pricedhandsets, which means lower margins forthe handset manufacturers. Nokia is adominant industry player and has held thetop position since 1998, after upstagingMotorola. The company till now hasmanaged to stay ahead of rivals. Now, withSamsung challenging Nokia in the low-costhandset market, there is impendingsaturation as the industry matures andmargins are expected to go down. In such ascenario how can Nokia maintain its

competitiveness and stay ahead of itscompetitors? This case study is the first ina two part series on Nokia and provides athorough outlook on the mobile handsetindustry and the changes therein. It detailsthe changes in the mobile handset valuechain and then enables a discussion on whatdo these changes imply for the incumbentplayers. The discussion centres on whathave been Nokia's strengths and based onthe industry analysis, what are theopportunities and threats to the company.Based on this, what should be Nokia'sstrategy and what course of action shouldthe company take to maintain itscompetitiveness?


• To understand the telecom industry basedon Michael Porter's Five Forces analysis

• To analyse the emerging trends in thetelecom industry and the critical successfactors for the handset makers

• To understand the changes in the mobilehandset value chain and the evolvingproduct concept and its significance forthe incumbent players

• To understand the strategies that Nokia,the industry leader, should follow tomaintain its competitiveness.

Industry TelecomReference No. TRT0132Year of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Mobile; Success; Value Chain;Segmentation; Total Product; IndustryAnalysis; Scenario Analysis; Porter; Nokia;SWOT; Competitive Advantage; Managingin Troubled Times Case Studies; Growth;Theodore Levitt; Samsung; Motorola

How Goldman Sachs Survivedthe US Mortgage Crisis

The massive financial cataclysm triggeredby the US subprime mortgage lendingduring the year 2006 forced many leadingmortgage lenders in the US to close theiroperations and file for bankruptcy. It alsoresulted in the investment banks, engagedin securitising subprime loans intomarketable securities, running the risk ofinsolvency. Hit by the market turbulence,leading global investment banks, includingLehman Brothers, Merrill Lynch,Citigroup, UBS, Bear Stearns and MorganStanley, registered a total loss of $136billion in 2007 for their subprimeexposures. However, Goldman Sachs GroupInc., one of the world's largest investmentbanks, reported net earnings of $11.6billion in 2007 despite the credit turmoil.This case facilitates discussion on how

meticulously Goldman has averted the crisisand reported revenues amidst the massivemortgage melt-down.


• To trace out the reasons behind the USmortgage crisis

• To analyse the impact of the crisis onGlobal financial market

• To discuss Goldman Sachs' pro-activestrategies in mitigating the market risksand reporting profits.

Industry BankingReference No. TRT0131CYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Goldman Sachs; Investment Banks in theUS; Mortgage Crisis; Sub-prime crisis; UShousing market; Securitisation; Mortgage-backed securities (MBS); Collateralised DebtObligation (CDO); Collateralised MortgageObligation (CMO); Credit Crunch; SpecialPurpose Vehicle; Troubled Times CaseStudies; Pass-Through-Certificates (PTCs);Poor Credit Rating; Short selling; Credit-default Swaps

Will the Red Envelopes at Netflixget Obsolete?

Since the time it was launhed till the present(2008), Netflix has been the leading playerin the online video rental market. Itsrevolutionary business model heightenedthe industry competition. But, with themovie download service launched bypowerhouses like Apple and Amazon,industry veterans speculated about thecertainty of Netflix to retain its marketposition. It was felt that, if Netflix did notexperiment with the movie downloadtechnology, it might end up losing itsposition in the industry ladder. Finally, inlate 2007, Netflix entered into the moviedownload market. It differentiated itsoffering through a technology calledstreaming movies. This technology did notturnout to be a big hit as it was not feasiblefor offline viewing and on high definitionscreens. In order to make-up for itsdrawbacks, Netflix partnered with LGElectronics in early 2008. Netflix'sfounder, Reed Hastings stated that the firmalso had similar partnership plans with fewother companies in the digital landscape.Reed expects that the Netflix-LGpartnership will help the firm rectify itsshortcomings in streaming moviestechnology. Analysts on the other handare skeptical about the success of thetechnology and feel that in the longrun itmight lead to shrinking of Netflix's coreservice of DVD-by-mail. It remains to beseen if the technology convergence at

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Netflix will succeed and render its redenvelopes obsolete.


The case study helps the students to analyseand understand:

• The importance of innovation(technology convergence) in the successof Netflix through years

• How Netflix gained popularity with itsDVD-by-mail service

• The future of Netflix's idea to partnerwith firms in the digital landscape.

Industry Online DVD rental IndustryReference No. TRT0130BYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Red Envelopes; Netflix; Amazon; Apple;DVD-by-mail; technology convergence;Reed Hastings; Netflix-LG deal;moviedownload service; streaming movies;innovation; online DVD rentals;subscription based business model; pay-perrental; late fees

Unrest at Volkswagen: WhoTakes the Decisions?

For decades Volkswagen, Europe’s largestcarmaker, had enjoyed a reputation forhaving one of Germany’s most highly-developed systems of labor/managementco-operation, with managers involvingemployee representatives in crucialdecisions. Germany’s co-determination law,under which VW functioned, started outconceptually as a law to ensure a balancebetween the interests of management andlabor in the company but had morphedinto an insidious alliance aimed at "keepingappearances", "being the favorite" and "notrocking the boat". CEOs and top managersdepended on votes from laborrepresentatives to be reappointed. Insteadof making tough decisions on restructuringor job cuts, VW managers were inclined todelay or avoid change and instead curryfavor with union bosses sitting on theirboards, often to the detriment of thecompany. And with the resignation ofBernd Pischetsrieder, the chief executiveof VW it seemed that life in Germany forcorporate bosses seemed to have becometreacherous. Pischetsrieder was forced outafter lengthy struggles with Ferdinand KPiech VW's Chairman and chief of thecompany’s supervisory board and a highlyinfluential figure (being the grandson ofFerdinand Porsche). Piech had an agendaof his own and Pischetsrieder was caughtbetween aggressive investors and VW's setof problem. VW had been hobbled byanemic sales, deteriorating quality, and

unnaturally close relationships betweenmanagement and employee leaders. Piech,a powerful shareholder with his "Faustianpact" was all out to get his way. Despitehaving hired groomed and nurturedPischetsrieder (to streamline the companyin the face of withering global competition)to take his place at VW when he himselfmoved up as the Chairman of thesupervisory Board, he axed him. Beforebeing forced to resign Pischetsrieder wasgiven a five year extension till 2012.Volkswagen shares dropped as investorstook in the depth of problems facing thecompany. There was unrest at VW. Wasthere more to be read between the lines ofPischetsreider's resignation? Was there anundue union influence at Volkswagen? Whotook the decisions?


• To understand the dynamics of corporategovernance, by evaluating its merits anddemerits and the impact on managerialbehaviour in German automobilecompanies

• To evaluate the importance ofshareholder and stakeholder-orientedgovernance systems

• To evaluate the various managementstyles adopted in automobile companies

• To discuss and understand the impact ofexecutive intelligence on businessleaders.

Industry Automobile IndustryReference No. TRT0129BYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

system of cross-holding;industrial co-determination; company-centricmanagement; inflexible workforce; historyof intransigent leaders; union bureaucracy;co-opted with insiders; state ownership;dynamics of corporate governance in VW;managerial behaviour in VW; FerdinandPiech; Volkswagen's supervisory board,s h a r e h o l d e r / s t a k e h o l d e r - o r i e n t e dgovernance; Unrest and organisationalinstability at VW; impact of executiveintelligence

Trouble at Starbucks: Will theVisionary Founder Howard

Schultz be Able to Transform theCompany?

US based Starbucks Corp. (Starbucks),world's largest chain of coffee houses hasbecome one of the most admired brandsworldwide under the leadership of itsvisionary founder Howard Schultz(Schultz). However, after Schultz'sdeparture as CEO, Starbucks' focus on rapid

store expansion has wrought many troublesfor the company. The company hasexperienced declining customer traffic andslow down in sales in their core domesticmarket. In an effort to cope up with thesituation, Starbucks announced the returnof Schultz as the CEO who laid out plansto transform the company and bring it backto its success path. The case studyhighlights the problems of Starbucks andfacilitates discussion on whether Schultz'sreturn as a leader can take Starbucks towardsrecovery or not.


• To understand entrepreneurial leadership

• To analyse the hindrances of rapidexpansion

• To analyse leadership change in troubledtime of the company.

Industry Specialty Retailing/BeveragesReference No. TRT0128AYear of Pub. 2008Teaching Note AvailableStruc.Assign. Not Available

Keywords

Starbucks Corp., Speciality CoffeeIndustry; Howard Schultz; LeadershipChange; Turnaround; Transformation;Return of Founder; Managing in TroubledTimes Case Study; InternationalExpansion; McDonald's; Dunkin’ Donuts;Brand Building; The Starbucks Experience;Entrepreneurial Leadership;Transformational Plans;Transformational Initiatives

Motorola – Losing its 'Razr's' EdgeMotorola, world's second largest player inCellular Industry, gained a significantmarket share in 2004 backed by itssuccessful products and managed to sustaingrowth for a while with new versions andderivatives of Razr, one of its mostsuccessful cell phone models. However, thecompany failed to develop innovativeproducts that could replicate Razr's successand lost out to its competitors whodeveloped innovative products. The caseoutlines the dynamics of the global mobilephone/cellular Industry, Motorola's earlierturnaround, its earlier success with Razrphone, causes for its decline in phone/cellular industry, its initiatives to stem thedecline and its new growth strategy.


• The dynamics of global cellular industry

• Importance of product innovation in cellphone industry

• How innovation helped Motorola gainan edge over its competitors


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• The reasons behind marketing failuresof Motorola's 'Razr' phone.

Industry TelecomReference No. TRT0127PYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Motorola's Decline; Telecom Industry;Motorola Razr; Managing in TroubledTimes Case Study; Handset Market; CEOEdward Zander; Razr's Rise; Razr's Decline;New strategy of Motorola

Image Crisis at BPBP, the London-based oil company is oneof the six global energy super majors withinterests in exploration, productionrefining and marketing of oil, gas, powerand renewables. In 2006, BP suffered aseries of mishaps that tarnished its image.Among the mishaps were pipelinecorrosion at Prudhoe Bay in Alaska leadingto oil leakage, a civil complaint filed againstBP for manipulating the propane marketand a gas oil leakage in the port of LongBeach, California. All these mishaps andscandals had an adverse impact on BP'sreputation. Analysts were skeptical if BPwould resurrect its stained image.


• The dynamics of the oil industry

• The crisis management strategy at BP

• The importance of crisis managementon the brand image of companies.

Industry Energy and UtilitiesReference No. TRT0126PYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Energy; BP; crisis management; oil spills;Texas refinery; Managing in TroubledTimes Case Study; Helios; green image;reputation crisis

Mattel’s Product Recalls (B):Managing the Crisis

A sequel to Mattel’s Product Recalls (A):The Chinese Imbroglio this case study dealswith Mattel’s series of recalls in August-September 2007, just before the peakholiday-selling season. It highlights themedia and public onslaught, the initialblame-game between Mattel and theChinese manufacturers, its CEO, RobertEckert’s public apology and his personalhandling of the crisis. What is interestingto discuss here is that with a significantimpact on Mattel’s reputation and sales

during Christmas season, how would itregain its lost consumer trust? Withmajority of its toy production coming fromChina, how would Eckert revive the taintedimage of China-made products?


• To analyse Mattel’s method of crisis-handling

• To understand the role of public relationsand media, as an effective tool incommunicating the recall information

• To examine the role of leadership inmanaging the crisis

• To identify effective ways of handlingsuch crisis.

Industry Toy IndustryReference No. TRT0125Year of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Robert Eckert; Public Apology; DesignRelated Recalls; Manufacturing RelatedRecalls; Safety Check and Quality ControlSystems; Media and Public Relations inHandling Crisis; Renaissance of ‘Made inUSA’; Tainted ‘Made in China’ Image;Crisis Management; Role of Leadership inManaging Crisis; Managing in TroubledTimes Case Study; Recall Impact onReputation and Performance

Mattel’s Product Recalls (A): TheChinese Imbroglio

The case study tracks Mattel’s history ofliability accusations and product recalls, formore than two decades. It was regularlyclashing with regulatory agencies like CPSC,regarding disclosure of existing or potentialhazards in some of its toys. Amid suchcircumstances, Mattel was once againaccused of defective toys - owing to design,as well as, manufacturing flaws in August2007. In fact, industries across the globewitnessed a spate of recalls of China-madeproducts that included every thing from petfood and toothpaste to clothes and toys.What then should Mattel do to handle thecrisis? How can it successfully leverage onChina’s cost-efficient production, withoutaffecting its reputation and profitability?


• To discuss Mattel’s emergence as theworld’s premier toy-maker

• To critically examine the reasons behindMattel’s product recalls for more thantwo decades

• To identify the problems in outsourcingmanufacturing operations to suppliersin low-cost countries

• To suggest different ways of handlingMattel’s crisis.

Industry Toy IndustryReference No. TRT0124Year of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Liability Accusations; Consumer ProductSafety Commission (CPSC); Tainted ‘Madein China’ image; Barbie; Fisher Price; HotWheels; Age Compression; Shorter ProductLifecycles; Supply Chain Issues;Outsourcing Manufacturing Operations;Toy sales in Holiday Shopping Season;Robert Eckert; Managing in TroubledTimes Case Study; Lead Contamination inSurface Paint; Design Flaws; CrisisManagement

Microsoft: Struggling in China?Since entering into China, Microsoftstruggled for gaining market share andmake profits in the mainland. The problemit seemed was not with its brand, aseveryone was using Microsoft’s OperatingSystem (OS). The problem was that ofpiracy. Microsoft tried various ways to getthe government to crack down on piracy,but instead the government supportedLinux, the low-cost competitor ofMicrosoft’s Windows. Linux’s presence andthe lack of Government support leftMicrosoft in a weak position in China. Thecase study also highlights various initiativestaken by Microsoft in China to strengthenits position in the growing Chinese softwaremarket. It also focuses on the measurestaken by the company to develop strongrelationships with the Chinese government.


The case has been structured tocomprehend and explore:

• The dynamics of the Chinese market

• The challenges faced by MNCs indeveloping economies

• Analyse strategies adopted by Microsoftin China.

Industry SoftwareReference No. TRT0123BYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Piracy; MNCs; Linux; Chinese market;Gaunxi; local partners; ZTEtelecommunication; developingeconomies; Price; Managing in TroubledTimes Case Study; operating system; MaoZendong; Deng Xeoping; Deregulation;integration

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Troubled Carmaker Chrysler (B):Can Robert Nardelli Resurrect

the Company?One of the leading private equity firms,Cerberus Capital Management, L.P.(Cerberus), acquired American auto iconChrysler, amidst its turnaround efforts.Cerberus agreed to keep Chrysler’smanagement intact, but surprisingly,replaced the chairman and CEO, ThomasLaSorda with Robert (Bob) Nardelli inAugust 2007. Cerberus’ logic behind hiringBob Nardelli, a former General Electric(GE) high ranking executive and formerCEO of The Home Depot Inc., was thathe could bring a fresh perspective toprivately held Chrysler with his result-driven aggressive leadership and proventrack record of successful turnarounds.However, Bob Nardelli’s functioning atHome Depot had been criticised despiteachieving increase in sales. Nardelli had toleave Home Depot in the wake of slidingstock price, anger over his hefty pay andproblems with employees and shareholders.Bob Nardelli’s controversial background,lack of experience in the automobilebusiness and manage-through-fear stylecould make or break the already troubledChrysler.


• To discuss the leadership change atChrysler

• To analyse whether the highly autocraticleader Bob Nardelli is the right leaderfor Chrysler or not and can he resurrectChrysler’s past glory?

Industry AutomobileReference No. TRT0122AYear of Pub. 2007Teaching Note AvailableStruc.Assign. Available

Keywords

Chrysler; American Auto Industry;Cerebrus Capital Management; PrivateEquity Firms; Turnaround; Takeover;UAW; International Expansion; Robert(Bob) Nardelli; Thomas (Tom) LaSorda;Leadership Change; General Electric (GE);Home Depot Inc.; Managing in TroubledTimes Case Study; Leadership Styles;Autocratic Leadership

Troubled Carmaker Chrysler (A):Can Cerberus be its Holy Grail?

The decade old merger of Germanautomaker Daimler Benz AG and Americanauto icon Chrysler Corp. ended in May2007, when in an unprecedented auto deal,majority stake was acquired by New Yorkbased private equity firm Cerberus CapitalManagement, L.P. Hailed as ‘the mergermade in heaven’, the deal between Daimler

and Chrysler turned out to be a completefailure. Changing trends of US auto industry,huge legacy of health-care cost, shift inconsumer demand, increasing fuel pricesand competition from Asian carmakers aresome of the factors saddling down Chrysler.At the time of takeover Chrysler wasalready in the midst of a turnaround planthat includes the elimination of 13,000jobs and a huge investment for newimproved product offering to meet shiftingconsumer demand.


• To analyse the private holding ofChrysler, its consequences and issues forits new parent, Cerberus

• To discuss on what possible strategiescan Cerberus adopt for Chrysler andwould this private equity firm be able toturnaround the distressed Chrysler andbe its holy grail?

Industry AutomobileReference No. TRT0121AYear of Pub. 2007Teaching Note AvailableStruc.Assign. Available

Keywords

Chrysler; Daimler Benz AG; AutomobileIndustry; American Auto Industry; BigThree; Cerebrus Capital Management;Private Equity; Challenge for Chrysler andCerebrus; Asian Automakers; PrivateEquity Firms; Turnaround; Takeover;UAW; International Expansion; Mergersand cquisitions

Air Deccan (B): The Captain, TheBaron and The Unknown

As a sequel to “Air Deccan (A): TheCaptain’s Cocktail”, this case studyexplores the options to revive Air Deccan- particularly the fund-raising initiatives.It highlights Air Deccan’s search for afinancial, as well as a strategic, investor -without diluting its low-cost image andvision of reaching the common man.Given the various international anddomestic contenders bidding for a 26%equity stake in Air Deccan, participantscan debate on who would make a betterinvestor-partner for Air Deccan -considering each one’s possible synergiesand adversities.


• To identify the right investor-partnerfor Air Deccan’s equity investment - inthe light of its vision, cash crunch, costcomplexities and operationalinefficiencies

• To help solve Air Deccan’s dilemma inchoosing the right investor-partner

• To assess whether fund-raising fromprivate corporate investor is desirableat this stage of operation.

Industry AviationReference No. TRT0120Year of Pub. 2007Teaching Note AvailableStruc.Assign. Available

Keywords

Kingfisher Airlines; UB Group; VijayMallya; Anil Dhirubhai Ambani Group(ADAG); Texas Pacific Group (TPG);Irelandia Investments; Equity dilution;Fund raising; Financial and strategicinvestor; Vision alignment and cultural fit;Competition; Premium value carrier;Managing in Troubled Times Case Study;Cash depletion; Low cost model

Air Deccan (A): The Captain’sCocktail

The case study tracks the journey of AirDeccan, a pioneer low-cost carrier (LCC)in the Indian skies since 2003. With apassion for reaching out to the commonman and a vision of making every Indianfly, Captain G. R. Gopinath built Air Deccan- blending his experience in aviation withan emotional connection to reach downinto the society. Despite its initial successin revolutionising Indian civil aviation withits significantly lower fares, Air Deccanwas mired in continuous losses - owing totechnical and operational snags, coupledwith aggressive expansions. The expansioncame in for a scathing attack from variousquarters including airline industry expertsin India. Thereby, given the costcomplexities, industrial constraints andcompetitive scenario in the Indian aviationindustry, can Air Deccan revive itsprofitability with relentless low fares andsustain competition in the long run?


• To discuss Air Deccan’s business modelas an LCC in the Indian civil aviation

• To identify the factors that led to AirDeccan’s losses and analyse whether theyare controllable or not

• To critically examine the value chainand cost structure of Air Deccan’soperations

• To analyse the options for Air Deccan’ssurvival, amid financial crunch andoperational inefficiencies.

Industry AviationReference No. TRT0119Year of Pub. 2007Teaching Note AvailableStruc.Assign. Available





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Keywords

Low-cost Carriers (LCCs); No-frills service;Managing in Troubled Times Case Study;Traditional Network Carriers; Global CivilAviation; Profitability vs Expansions;Value Chain Analysis; Load factor andcapacity utilisation; Operationalefficiencies; Cost structure analysis; Pricewars; Financial crunch; Competition;Business model; Industrial constraints; G.R.Gopinath

3 UK's Profitability and RegulationConcerns: Can its CEO, Kevin

Russell Pull it off?3G UK Limited (3 UK), a group companyof global conglomerate HutchisonWhampoa Limited, forayed into UKmobile telecom market in 2003 - by rollingout first 3G services there. However, itcouldn’t make profits – in spite of havingno competition in 3G services. Later,Ofcom, UK’s telecom regulatory authority,ordered to cut termination charges by 45%.But 3 UK was till then a net payer oftermination charges. This order, companysources fear, would further worsen thebottom-line and so they are appealingagainst the order. Kevin Russell, appointedas the new CEO in early 2007, has hishands full – in steering the companythrough its regulatory battles and stayingcloser to its advantages. Can he pull it offor would his plans misfire?

Debates can rage whether 3 UK can growon its first mover advantage as the first 3Goperator, or will it languish as a late entrantinto the market dominated by 2Goperators. Even the role of regulations inthe company’s profitability can bediscussed.


• To discuss the critical success factors inthe telecom industry

• To analyse UK telecom industry’scompetitive dynamics

• To understand first-mover and late-mover advantages and disadvantages inthe telecom sector.

Industry TelecomReference No. TRT0118Year of Pub. 2007Teaching Note AvailableStruc.Assign. Available

Keywords

Third generation mobile companies; 3Gcellular communications; 3Gcommunications in UK; HutchisonWhampoa Limited; 3 UK; Managing inTroubled Times Case Study; Cellularoperators in UK; Mobile communicationsin UK; Regulatory authorities in UK

telecom; Structure of the UK telecomindustry; Evolution of UK’s telecomindustry; Privatisation of British Telecom

Taco Bell and the Ecoli CrisisTaco Bell, a subsidiary of Yum Brands Incis a leading Mexican style fast foodrestaurant chain and one of the bestperforming brands of Yum. An e-colioutbreak has hit Taco Bell restaurants inNovember 2006, affecting people in sixUS states. Taco Bell is now left with a majordamage control challenge of convincingits customers that its restaurants are safeto eat even as the cause of the outbreakremains a mystery.

The case outlines the damage controlstrategies adopted by Taco Bell restaurantsto regain market share and retain itscustomers in the wake of its ecoli outbreakincident. It focuses on the company’s crisismanagement and repercussions of theoutbreak.


• To discuss the dynamics of crisismanagement

• To analyse the crisis managementstrategy adopted by Taco Bell in thewake of ecoli outbreak at its restaurants.

Industry Fast Food IndustryReference No. TRT0117PYear of Pub. 2007Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Crises Management; Public Relation; TacoBell; Yum; Brands; Managing in TroubledTimes Case Study; Brand Reputation;Damage control

Kraft Foods: Arresting Fall inGrowth Rate

Kraft is the second largest manufacturerof packaged foods in the US. It has severalbrands which contribute over $1 billiondollar each to revenues of Kraft. Kraft wasregistering below the target growth in salesin 2006. To arrest the fall in the growthrate, Kraft's C.E.O. Irene Rosenfeld(Rosenfeld) was launching severalinitiatives.

The case discusses these initiatives and alsodiscusses Kraft's earlier problems andinitiatives to overcome these problems,US food industry, future potential forgrowth of Kraft.


• To anlayse the dynamics of the US foodindustry

• To discuss Kraft's early growth strategyand its following decline

• To discuss Kraft's revival strategy.

Industry Food & Beverage IndustryReference No. TRT0116PYear of Pub. 2007Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

US food industry; Managing in TroubledTimes Case Study; Kraft Cheese; OscarMayer; Philadephia; Jacobs; Cool Whip;Orea; Itene Rosenfeld

Sony's Battery Recall: TroubledTimes at Sony

In August 2006, Dell Inc. and AppleComputer Inc. announced the recall ofabout 6 million lithium-ion batteries fittedin their laptop computers and soldthroughout the world. The companies saidthat the faulty batteries made by SonyCorporation could overheat and, in rarecases, catch fire. Sony acknowledged theproblem and offered to assist thecompanies by sharing a part of the recallcosts. Later, other notebook manufacturersalso recalled Sony-made batteries takingthe count to around 9.6 million batteries.Analysts expected that the recall wouldcost Sony approximately $500 million.They also opined that the recall came at atime when Sony was busy turning aroundits loss-making consumer electronicsdivision. While the investors werepanicked by the cost burden, analysts raisedquestions about Sony's product quality.

The case deals with how Sony respondedand handled the massive battery recall. Italso highlights the corrective measurestaken by Sony to overcome the problemsand save its reputation.


• To get an idea of the global rechargeablebattery market as well as Sony's batterybusiness

• To understand what triggered the massivebattery recall and its implications onSony

• To assess the steps taken by Sony tomanage the entire recall process

• To debate whether Sony would be ableto overcome the problem and save itsreputation.

Industry Consumer ElectronicsReference No. TRT0115KYear of Pub. 2007Teaching Note Not AvailableStruc.Assign. Not Available

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Keywords

Sony battery recall; Lithium-ion battery;Global battery market; Global batterymanufacturers; Managing in TroubledTimes Case Study; US battery supply anddemand; Demand for secondary battery;Market share of notebook vendors;Financial implications on Sony; Batteryoverheating; Recall cost; Sony consumerelectronics; Playstation3; Global voluntaryreplacement programme

Apple Computer: Grappling withChallenges

In the second half of 2006, Apple computerInc. (Apple) was engulfed in controversies.At first, some irregularities were revealedin stock options grants made between1997 and 2001, creating a furore amongApple shareholders. Secondly, in August, itannounced the recall of 1.8 millionbatteries fitted in its laptops, saying thatthe batteries could, in rare cases, overheatand burst into fire. Though Apple said thatthe recall would not have any financialimpact on the company, theannouncement panicked the customers aswell as shareholders. While the companywas busy settling both the issues, analystswondered how Apple was going to save itsreputation with customers and calm theshareholders.

The case deals with the problems thatApple is facing and the steps taken by thecompany to overcome them.


• To discuss the problems facing AppleComputer

• To analyse the accounting and financialimplications arising out of the problems

• To understand the corrective measurestaken by Apple Computer to overcomethe problems

• To debate whether Apple would be ableto win customer as well as shareholderconfidence.

Industry Personal ComputersReference No. TRT0114KYear of Pub. 2007Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Apple Computer; Apple battery recall;Stock options; Li-Ion Battery; Backdating;Managing in Troubled Times Case Study;CPSC (Consumer Product SafetyCommission); Notebook market share;Dell; Sony; Rechargeable lithium battery;Laptop computer; Steve Jobs; iPod;Securities and Exchange Commission

MySpace and Lifestyle Media:Critical Issues

With 82% of the market share in itscategory, MySpace was the leading socialnetworking website where people couldshare photos, music, videos and otherinterests with a growing network of mutualfriends. MySpace helped users create avirtual world where people couldcommunicate and socialise through theirmembership profiles without actuallymeeting them in reality. The rise ofMySpace exemplified the emergence oflifestyle media as the most sought-aftercommunication medium, particularlyamong the teenagers. Lifestyle media hadevolved as a combination of personalisedmedia experience, empowering consumersto utilise their productive, leisure and socialtime around converged media experiences.

The case, while providing an overview ofMySpace and lifestyle media as a whole,underscored the meteoric rise of the socialnetworking websites and its impact on thesociety.


• To discuss the emergence of lifestylemedia and its business perspective

• To understand the evolution of MySpaceand its pitfalls

• To analyse whether MySpace would ableto sustain its popularity in the long run.

Industry Internet Content ProviderReference No. TRT0113KYear of Pub. 2007Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Myspace; Lifestyle media; Socialnetworking website; Friendster;FriendSpace; Convergence; Millennials;MySpace Music; MySpace Records; RupertMurdoch; On-line advertising; Viralmarketing; Video content; Mass media;Managing in Troubled Times Case Study;Sexual assault

Japanese Motorcycles: FacingChallenges in China

Despite controlling over 50% of the globalmarket, with a cumulative world productionof 38.9 million units in 2005, leadingJapanese motorcycle manufacturers likeHonda, Yamaha and Suzuki, failed to havea considerable market share in China – thebiggest motorcycle market in the world.Local brands in China controlled over two-thirds of the market and foreign brandswere continuously outdone on price. TheJapanese bike manufacturers also faced stiffcompetition from pirated bikes, whose

designs and manufacturing patterns wereidentical to the Japanese brands.

The case, while providing an overview ofthe Chinese motorcycle industry, discussesthe broad challenges faced by the Japanesemotorcycle manufacturers in China.


• To discuss about the China's motor cycleindustry

• To understand the restrictions imposedon Chinese motorcycle market

• To discuss the challenges faced byJapanese bike manufacturers in theChinese market

• To debate on the survival strategy forthe Japanese manufacturers in theChinese market.

Industry MotorcycleReference No. TRT0112KYear of Pub. 2007Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

China’s motorcycle industry; Honda;Yamaha; Suzuki; Vehicular restriction;Tariff barriers; Piracy; Modularisationstrategy; Managing in Troubled Times CaseStudy; Open architecture; Joint venture;World Trade Organisation (WTO);Intellectual property rights (IPR)

Airbus's A380: Stalled on theRunway

The global civil aviation market was aduopoly between Boeing and Airbus andthe competition was featured by bitterrivalry among these two companies.Though, both the companies predictedalmost same growth of the civil aviationmarket during 2005-2010, two companieshad contrasting view for the future natureof the growth. While Boeing was aprotagonist of fragmentation in networkand 'point-to-point traffic' concept andtherefore, supported the development ofsmaller aircraft, Airbus favored the 'hub-and-spoke' model of operation, networkconsolidation and believed in the conceptof larger aircraft. Airbus projected ademand of 1144 super jumbos by 2020while Boeing predicted a demand of 320super jumbos. In 2000, Airbus announced'Project A380' to develop the largestcommercial aircraft with an investmentof $13 billion. The aircraft was positionedagainst Boeing's 747 models in super jumbocategory, and the company planned toairborne first A380 within 2005. Themodel was highly acknowledged by leadingcommercial airlines operators, like,Emirates and Singapore Airlines. But thecompany failed to deliver the aircraft on





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the stipulated date and when on 3rdOctober 2006, the company announced afurther delay of six months leading airlinesoperators felt bad about the company.Leading airline operators like, SingaporeAirlines cancelled the order for A380 andopted for alternatives. As a consequenceof the delay of A380, Boeing marketedaggressively for its 747-8 model, whichthe company planned to launch by 2007.A few Airlines, like, Emirates, cancelledthe order for A380 and opted 747-8 ofBoeing. This case gives a glimpse of globalcivil aerospace market, the trends,competitive fight between two competingaircraft manufacturers and two competingmodels from two manufacturers. This casealso provides an insight about why Airbuslacked in project management skills, whyit failed to meet the deadline of the deliveryof its A380 model, airlines operatorsreaction about the delay, how Airbusplanned to make over the image, strategyadopted by Boeing to leverage the delay ofAirbus and the future scenario of globalcivil aerospace market.


• To understand the market dynamics ofcivil aerospace industry

• To analyse competitive position ofAirbus vis a vis Boeing

• To discuss the importance of projectmanagement in company's overallstrategy.

Industry Aircraft ManufacturingReference No. TRT0111KYear of Pub. 2007Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Boeing; Airbus; Hub-and-spoke; Point-to-point; Project A380; Global civil aviationmarket; Global civil aerospace market;Bombardier; Managing in Troubled TimesCase Study; EADS (European AeronauticDefence and Space Company); Airlinesoperators; Boeing Dreamliner; Emirates;Singapore Airlines; BAE Systems plc;Original Equipment Manufacturers (OEMs)

Wal-Mart's Struggle in JapanIn the 1980s, the Japanese retail marketwas dominated by local players like Daiei,Aeon and Ito-Yokado. The Japanesegovernment started to encourage foreigntrade and foreign retailers. With the entryof these retailers, the domestic retailerswitnessed decline in their sales. To protectthe interests of the local players, LargeScale Retail Store Law (LSRSL) wasamended by the Japanese government inthe late 1980s which restricted the entryand expansion of foreign retailers in Japan.In the 1990s, when the LSRSL was amended

to encourage foreign trade in Japan, a fewplayers like Carrefour and Costco to enterJapan. To encourage more foreigninvestment, the Japanese governmentabolished the LSRSL in 1998 and a fewcompanies like Wal-Mart and Tescostarted studying the Japanese market tomake an entry into Japan. In 2002, Wal-Mart entered Japan through an alliancewith a local player, Seiyu. In spite of Wal-Mart's efforts, it witnessed lossconsecutively from the time it entered theJapanese market. It was pointed out thatthe decline was due to its low pricingstrategy which proved ineffective in Japan.Seiyu's ineffective management was alsocited as another reason for Wal-Mart'sdownfall in Japan. To strengthen itsposition as a leading retailer, Wal-Martimplemented several strategies. It increasedits investment in Seiyu to more than 50%and made the local player a subsidiary ofWal-Mart. The retailer also implementedseveral inventory management practicesand attempted to streamline their supplychain operations. In 2006, to succeed inthe Japanese retail market, Wal-Martdecided to introduce both high and lowpriced items as its popular selling strategy'Everyday Low Pricing' did not seem totake off.. Despite Wal-Mart's attempts, itremained to be seen whether the giantretailer would succeed in Japan or make anexit like it did in Germany and South Korea.


• Wal-Mart's strategies to enter theJapanese retail Industry

• Wal-Mart's Inventory management andsupply chain management practices

• Wal-Mart's sales strategies through highpriced and low priced products.

Industry RetailReference No. TRT0110BYear of Pub. 2007Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Japan; Retail; EDLP; LowPrice; Rollback;Seiyu; Daiei; Aeon; SMART; Managing inTroubled Times Case Study; Supplier;Japnese Consumers; Discount; Inventory

Vodafone: Losing Connectivity inJapan

Vodafone Group Plc is the world's leadingmobile telecommunications company witha total market capitalization ofapproximately UK £72 billion in 2006.Vodafone entered the Japanese market in1999 through the acquisition of J-Phoneand went on become the second largestwireless telecom company in Japan. Buteventually it could not retain the positionin the Japanese market. It was felt that

Vodafone lagged behind its competitors inintroducing new technology or services inthe Japanese market. By 2005, Vodafonein Japan had lost a substantial number ofcustomers to its competitors, who wereoffering superior handset features andservices. Vodafone seemed at a loss to gaina foothold in the Japanese market andfinally, in 2005, it sold its Japanese mobilebusiness Softbank.

Industry experts attempted to analyse thereasons for Vodafone's exit from Japan. Inthis context analysts debated that Vodafonefailed to understand the competition andthe Japanese market and hence made anexit which could have been avoided. It wasfelt that Vodafone would have to re-evaluate its global strategy.


• To understand Vodafone's global strategy

• To gain an insight into the competitiveenvironment of the Japanese telecommarket

• To analyse the reasons for Vodafone'sexit from Japan

• To consider the strategies that Vodafoneshould have adopted to remain in themarket.

Industry TelecommunicationsReference No. TRT0109BYear of Pub. 2007Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Vodafone; Japan Telecom Company;Softbank; Racal Telecom Limited;DoCoMo; Sarin; KDDI; RipplewoodHoldings; Managing in Troubled TimesCase Study; Robin Hearn; Global Strategy;Ovum; 'bigger is better' strategy; traditionalmarket; Telecom; Christopher Gent

Problems Galore at Dell: Signs ofa Downfall?

Since 2001 Dell had been the undisputableleader in the US PC market. Dell had beenso enamored with its PC business that itfailed to notice what its competitorspursued. Dell failed to innovate while IBMand others turned to consulting anddevelopment. IBM sold out its PC businessto Lenovo since it realized that PCmanufacturing did not fit into their corebusiness agenda. Later it seemed that Delldeveloped a streak of complacency in itsattitude. PC market saturation in the USand other developed economies, along withinvestor impatience, fierce competitionand product quality deterioration saw Dellmissing its expectations in 2006. Theirentry into portable music players and PDAsdid not strike much luck since Apple's iPodsoutsold every other brands in the US

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market. This case discusses the problemsthat Dell faced and what Dell has to do inorder to avoid a downfall.


• To understand the US PC market

• To understand Dell's strategy of sellingPC's

• To understand problems for Dell's growthin recent times.

Industry PC IndustryReference No. TRT0108BYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Personal Computers; Dell; PC DirectSelling; US PC industry; LINUX; Microsoft;IBM; Lenovo; Managing in Troubled TimesCase Study; Chinese computer market;laptop explosion; AMD; product qualitydecline; Product recalls; Michael Dell

Dell's Recall of Batteries: Would itTaint Dell's Image?

Dell, one of the largest PC makers in theworld, on 14th August, 2006 recalled 4.1million notebook batteries. The recalledbatteries were manufactured by Sony Corp.,Japan. The batteries were defective andDell felt it best to recall and replace thebatteries free for all affected customers.Dell was a proprietary parts manufacturer.This recall which was the third such wasDell's nemesis. Dell's customer perceptionsand its after sales service had much to bedesired. Confidence in Dell's notebooksremained a big question mark when thethird incident occurred and the companyseemed not to have taken action or theaction that was to be taken of returningthe faulty batteries were seen by some as adilute method of appeasing customers asthey expected a company like Dell todouble check their quality especially sincethe batteries were outsourced. Dell with itsunique marketing philosophy of notretailing their products needed to havedouble insurance as far as winning andretaining customers were concerned.

Dell had recalled batteries in 2001 and in2005. Dell seemed to know what exactlywas wrong with its batteries, but behavedlike an ostrich and buried its head in themud and continued to market the samebatteries. The recalled batteries wereexpected to cost at least $246 million toDell. Sony agreed to share a part of thecost. The financial aspect was one part ofthe recall but unquantifiable was thereputation of the company that went alongwith the recall. While people would buyproducts for the brand name and what itrepresented it would be rare if one

remembered all components of theproducts. The recall hence had a longerlasting negative impact on Dell rather thanSony.

Sony though willing to lend a handfinancially also stated that it did not havethe manufacturing capacity to produce somany batteries within the time requiredfor its replacement. This meant that anoutsourced contract was being sub-contracted to yet another supplier. Whatwould happen to the customer? Theaverage customer had already lostconfidence in Dell, with new batteries notnecessarily manufactured by Sony but someunknown manufacturer how did Dellpropose to satisfy its customers on qualityand more important how did it propose toattractive new clientele.

How would Dell handle this crisis? Whatwould happen to Dell's image andreputation with the recall? And would Delland Sony continue their relationship afterthis third fiasco?


• To discuss about the world PC market

• To understand Dell Inc as the largest PCmakers in the world and its competitivestrategy

• To analyse the impact of Dell's recall ofits batteries on its image and reputation.

Industry Hardware IndustryReference No. TRT0107BYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Dell Inc.; Sony Corp.; Largest Batteryrecall; Notebooks; Lithium-ion Batteries;Consumer electronics; Consumer ProductSafety Commission; Managing in TroubledTimes Case Study; Faulty Batteries;Hardware Industry; Burnt Laptops; Crisismanagement

Altria: The American TobaccoGiant's Troubled Portfolio

New York based Altria Group Inc.(ALG),the parent of the world's second largestconsumer packaged-food company KraftFoods, was a leading Food and TobaccoConglomerate. In addition to Kraft Foods,ALG's portfolio of operating companiesincluded Philip Morris International, PhilipMorris USA-producers of the world'spopular Marlboro brand of cigarette andalso had a financial services division PhilipMorris Capital Corporation. Altia Groupwas known as Philip Morris Companiesand changed its name to Altria in the year2003, which was considered to be an effortof image change or a mere PR campaign

by several analysts. Since its acquisition ofKraft Foods in 1988, Altria was accused ofusing its Food division to hide its tobacconegatives.

Kraft Foods' performance was declining andAltria announced the possibility ofspinning off Kraft in 2004 and was planningto restructure its operations since then.Kraft Foods was also contemplating to beindependent of its tobacco tainted parentAltria Group Inc which had 88% of its stake.ALG alike many other tobacco giants facedlarge amount of tobacco litigations for longand was waiting for its legal liabilities to becleared before proceeding with anyrestructuring. In 2006, ALG had favorablerulings for its three major tobacco casesand some analysts expected anannouncement of Kraft spin-off as the legalenvironment seemed to be improving. ButAltria did not proceed with Kraft spin-offas according to the company still huge legalrisk existed for the company. The casetalks about the corporate portfoliostructure of ALG and the challenges thatthe conglomerate faced like increasinghealth consciousness, governmentregulations, excise taxes and tobaccolitigations.


• To discuss Altria as a corporate and itsentities

• To understand the legal liabilitiesinvolved for tobacco companies

• To discuss the importance of corporaterestructuring

• To understand the importance of rightmix of companies in a corporateportfolio

• To understand the role of a corporateparent in managing its portfolio andrestructuring.

Industry Tobacco & Food ConglomerateReference No. TRT0106AYear of Pub. 2006Teaching Note AvailableStruc.Assign. Not Available

Keywords

Kraft Foods; Altria; Food and BeverageCompany; Tobacco Company; Tobaccolitigations; Corporate Restructuring;Corporate Portfolio Management;Reasons for troubles at Kraft Foods;Reasons for Spin-off of Kraft Foods;Tobacco Liabilities for Altria; Managingin Troubled Times Case Study; Lawsuitsfor Altria; Liabilities to TobaccoCompanies; Ethical Issues for TobaccoCompanies; Philip Morris International;Philip Morris USA; Philip Morris CapitalCorporation; Second Largest ConsumerPackaged-goods Company; Marlboro;Cigarettes



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Crisis Management – The JetBlue Way

In February, 2007 JetBlue, a leading low-cost airline of US cancelled around 1096flights in a week leaving hundreds ofpassengers and aircraft grounded due to anice storm and enormous operationalshortcomings. During the ice storm whenmost other airlines responded by cancelingmore flights earlier, JetBlue did not followthe same path. It did not cancel the flightswell in advance and as a result, thousandsof passengers ended up trapped at NewYork's John F. Kennedy InternationalAirport, the hub of its operations. Whileother airlines took just a day or two to getback to the schedule, JetBlue took a weekand affected around 130,000 passengers.

The flight delays, cancellations andambiguity in operations caused customerdissatisfaction and affected its brand image.However, JetBlue aggressively put inefforts to mange the crisis and regaincustomers' trust. The Founder and CEO ofJetBlue, David Neeleman apologized inpublic and tried to convince people,investors and customers that the airlinewould recover. JetBlue announced toreimburse 130,000 passengers which wouldcost it more than $30 billion. After thecrisis, to restore is stained reputation thecompany introduced "customer bill ofrights", the first of its kind in the industry.

The case discusses about the crisismanagement and issues highlightingJetBlue's tactics to manage the crisis andrestore its corporate image. The case alsotalks about Neeleman's leadership in crisismanagement.


• To discuss crisis management at JetBlue

• To understand the role of leadership intimes of crisis.

Industry AviationReference No. TRT0105AYear of Pub. 2007Teaching Note AvailableStruc.Assign. Available

Keywords

Managing in Troubled Times Case Study;Jet Blue; Low-cost carriers (LCCs); Issuesand crisis at JetBlue; Crisis Management;Leadership; David Neeleman; Brand Image;Brand Building; Regaining CorporateImage; Customer Bill of Rights; CustomerSatisfaction; Aviation Industry in US;Business model of LCCs

Airbus: Flying throughTurbulence

In 2006, Airbus booked 824 new orders foraircraft, representing a 44% market share

at a value of $75.1 billion. Unable tocommence supply of A380, a futuristicdouble decked jet, it suffered 34 ordercancellations. With two years behindschedule and $2 billion over budget on theproject, Airbus also faced a revenue loss of$6.6 billion, which could make thecompany financially extinct. The casedescribes the events which led to the delay.The first was the fuselage wiring issue whichwas caused by the different softwareversions used by Airbus' German and Frenchengineers. Wake vortexes, the airtornadoes developed by an aircraft behindit, was very powerful in the case of anA380, because of its huge size and fourhigh thrust engines. The ICAO,recommendation that additional nauticalmiles be used to separate other aircraft andA380, was a blow to Airbus, since alreadystrained airports could not offer additionalspace to an A380, which cancelled itsbenefit of carrying passengers almost twicethat of its nearest rival B 747.

The case describes the political turmoilregarding the Airbus' restructuring plan'Power8'. 10,000 job cuts, hiving off sixmanufacturing plants spread over threecountries and cost cutting are few measureswhich Airbus planned to implement hopingto revive its fortunes, amidst stiffopposition from participatinggovernments and labor unions.


• Project Management and ProductDevelopment Cycle

• Dynamics in Aviation Industry

• Political and Social factors in Businessenvironment.

Industry Aviation – AircraftManufacturing

Reference No. TRT0104CYear of Pub. 2007Teaching Note AvailableStruc.Assign. Available

Keywords

Airbus A380; Boeing 787 Dreamliner;Catia V5 CAD Software; Wake Vortex ofA380; Managing in Troubled Times CaseStudy; ICAO recommendations on A380;EADS; A380 order cancellations; Power8Restructuring plan; Long haul aircraft

Archies - Time to ReinventGreeting cards have become a part of thecultural and social life of people worldwide.In India, people send cards on the eve offestivals and occasions such as Diwali, Holi,Pongal, Durgatsov, Christmas, and NewYear etc. The social expression industryhas grown to 12 billion in number and US$14 billion in revenue worldwide by 2004.But currently, the greeting cards industry

is facing new challenges. People no longersearch for hours for greeting cards thatsuit the occasion and the personality ofthe recipient, or write warmly wordedpersonalised messages on each card andpost them. People simply send an SMS(short message service) from their cellphones. Or they log onto the Internet,visit greeting cards websites and send e-greetings to their beloved. The number ofpeople who prefer to shop for greetingcards is declining. To stay relevant, Archieshas to attract customers and retain them.What can Archies do to reverse this trendof declining sales?


• To discuss the segmentation-targeting-positioning strategy followed in strategicmarketing management

• To discuss the diversification strategyand strategy of entering into newsegments

• To discuss how innovation plays a keyfactor in strategic marketingmanagement

• To discuss the trends and patterns ofsocial expression industry in India

• To discuss how technology played a keydifferentiator in the marketing game

• To discuss the concept of nichemarketing.

Industry Social ExpressionReference No. TRT0103KYear of Pub. 2005Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Archies; Anil Moolchandani; Greeting cardindustry; Jagdish Moolchandani; Managingin Troubled Times Case Study; ArchiesGreetings and Gifts Ltd; Disney character;Retail Disney; e-Greetings; Indian socialexpression industry; Heart warmers;Distribution network; Brand equity

Airbus A380 Delay: What WentWrong?

After Airbus announced a delay in thedeliveries of its forthcoming A380, thebiggest passenger jet ever made, in June2006, it raised an alarm for the aviationworld, especially for the customers of A380.Prior to this, in 2005, the European planemanufacturer had already extended itsdelivery schedule by six months. Thecompany cited some production issues asreason for the delay. However, industrywatchers suspected that there was more tothe story than mere production issues.While the panicked customers wereconsidering claiming compensation for thedelay (some even were planning to cancel

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the orders), analysts wondered what causedthe crisis and how Airbus was going toovercome it. Some also believed that thecrisis at Airbus was a golden opportunityfor Boeing to regain its leadership position.

The case tries to highlight Airbus’ problemsand raises a question regarding how it couldsort out its problems. It also discusses aboutBoeing’s ability to capitalise on theopportunity.


• To understand the reasons that causeddelay in launching the new aircraft A380

• To understand the implications of delayin launching new products and thecomplexities involved therein

• To know in detail about the developmentof A380, the world’s largest passengeraircraft

• To assess how Airbus planned to dealwith the situation.

Industry AviationReference No. TRT0102KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

747-8; A380; Hub&Spoke; Point to point;Freighter; Inter continental.

Coca-Cola – Struggling inGermany

In late 2004 and early 2005, Coca ColaCo. (Coke), the leading soft drinksmanufacturer in the world, faced a massivedecline in sales in Germany due to theimpact of the newly enacted RecyclingLaw. The company was forced to makeuse of recyclable bottles, abandoning itstrademark packaging as well as to alter itsdistribution system in Germany in order tomake a turnaround in the country.

The case, while highlighting the challengesfaced by Coke in Germany, also focuses onthe initiatives taken by the company torestore its former position in the Germanmarket.


• To understand the structure andcompetitive forces in the German softdrinks industry

• To understand the regulatory frameworkin Germany and the challenges faced bysoft-drinks manufacturers due to strictGerman Recycling Law

• To discuss the turnaround strategies ofCoca-Cola, with reference to the Germanmarket

• To discuss the localisation strategy ofCoca-Cola with modifications to itsglobal marketing-mix variables.

Industry Carbonated BeveragesReference No. TRT0101KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Coca-Cola; Germany; German RecyclingLaw; Store brand; Discounters.

GM in 2005: Facing Challengesin North America

In the face of intense competition fromits Japanese rivals such as Toyota andHonda, GM was losing its market share inNorth America. Analysts pointed out anumber of reasons for the downslide. GM’shealth care benefit costs for existingemployees and the legacy costs, in termsof pensions for retirees, were steadilyincreasing. Skyrocketing gasoline pricescaused a decline in the demand for GM'sgas guzzling Sports Utility Vehicles (SUVs)and trucks. The share prices, which weremore than US$80 even five years back,came down and were hovering aroundUS$28 to US$30 on the New York StockExchange, by March 2005. In April 2005,GM posted a net loss of US$1.1 billion forthe first quarter, the biggest quarterly losssince 1992, when the company almostwent bankrupt. The Case discussed causesfor the problems in detail and analyzed thepossibilities of GM’s turnaround.


• To understand the concept of genericcompetitive strategies

• To understand the structure of Automanufacturing industry

• To analyse competitive strategies alongwith industry life cycle with referenceto GM.

Industry Auto ManufacturingReference No. TRT0100KYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

GM; Automobile Industry in US; Ford;Toyota; SUV; Cost Competitiveness.

Wal-Mart’s Withdrawal fromSouth Korea

In May 2006, Wal-Mart, world’s largestretailer announced its exit from SouthKorea selling its 16 stores to ShinsegaeCo., the country’s top discount chain for

825 billion won ($882 million), subject toapproval from South Korean regulators.Wal-Mart said that its decision to withdrawfrom South Korea was in keeping with itsglobal growth strategy to expand inmarkets where they could realise the desiredeconomies of scale. Wal-Mart’sperformance in the South Korean marketwhich was considered highly competitiveand demanding had not been encouraging.Analysts blamed Wal-Mart’s failure tolocalise as the main reason for its exit.They argued that Wal-Mart had nottailored its stores and offerings to suit theneeds of the Korean consumer. Analystswondered why the world’s largest retailer,with annual total sales of $312.4 billion,as of January 2006 and serving more than175 million customers weekly in 15countries worldwide decided to pull out ofa growing economy like South Korea.

While the majority blamed Wal-Mart’sfailure to localise its strategies as the reasonfor the debacle many felt that theenvironment in South Korea was notconducive to foreign brands. Hardly amonth before Wal-Mart’s announcement,Carrefour of France, world’s second-largestretailer quit the South Korean market.Many international brands like Nokia,Nestlé and Google, struggled in the SouthKorean market. While analysing the reasonfor its withdrawal, experts felt that Wal-Mart should use this failure to its advantagein other Asian economies like Japan andChina. How it would do this was to be seen.The case offers scope for discussion onlocalisation strategies to be adopted byretailers in overseas markets and theimpact of failure to localise.


• To teach localisation strategies

• To discuss the outcome of a company’sfailure to understand and tailor localisedstrategies.

Industry RetailReference No. TRT0099CYear of Pub. 2006Teaching Note AvailableStruc.Assign. Not Available

Keywords

Wal-Mart; Localisation strategy; SouthKorea; Asian markets; Consumerbehaviour; E-Mart; Shinsegae; SamsungTesco HomePlus; Retail Industry;Multinational brands; Trade Unions;Carrefour Korea; Competitive Markets.

Canon Digital Cameras: Will itContinue to Click?

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regarding Canon’s present strategies andwhat more can it do to improve its marketposition. The case traces the growth ofthe digital camera industry and reasons forretardation of the growth. It also intendsto raise debate on the growing cameraphone industry and its impact on the digitalcamera business as a whole. It also highlightsCanon’s strengths in the digital businessand the areas from where is it facingcompetition. The case is designed to helpunderstand the digital camera industry,Canon’s position as a cameramanufacturer, competition faced by Canonand impact of its strategies on its business.


• To help understand the digital cameraindustry

• To discuss Canon’s position as a cameramanufacturer

• To discuss competition faced by Canonand impact of its strategies on itsbusiness.

Industry Consumer Electronics-DigitalCameras

Reference No. TRT0098CYear of Pub. 2005Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Canon; Cameras; Digital cameras; Digitalimaging camera phones; Mobile/Cellphones; Cellphone cameras; Globaldigital camera market; Canon strategies;Film cameras; Fujio Mitarai Sony; Kodak;consumer electronics; Digital Slrs.

Dell’s Direct Model: Change ofDirection?

The launch of IBM’s Personal Computer(PC) in 1981, was a boon to the PC industry.During the following years, both the PChardware and software markets flourished.Dell was one of the many start-ups whichentered the market during this period ofhigh growth. Since its inception, Delladopted a business model which wascontrary to the established norms of theindustry. The company bypassedtraditional distribution channels and soldPCs directly to customers. This helped thecompany to save on costs like resellermargins and high inventories. While theindustry followed a ‘build-to-forecast’approach, Dell followed a ‘build-to-order’model. Established players believed invertical integration whereas Dell ‘virtually’integrated itself by building closerelationships with its suppliers andcustomers. The result was that Dellexperienced stupendous growth during the1990s. In the year 2001, the companybecame the world’s largest PC

manufacturer, based on the number of PCsshipped.

While Dell’s competitors struggled to keepup with Dell’s low-cost PCs and efficientsupply chain, Dell progressed fromstrength to strength. But with the turn ofthe 21st century, the fortunes of theindustry players seemed to change. Dell’sgrowth rate started declining. Changingelements in the business environment likethe maturing US market, resurgence of HPand Apple Computer, rise of low-cost Asianplayers like Lenovo and Acer, and highgrowth in the household demand for PCs,a segment where Dell was not focused, ledthe company to miss earnings and salesprojection several times during 2005-2006.Dell’s apparent inability to successfullyrespond to these environmental changes,led the market experts to doubt whetherDell’s revered business model was equippedto provide Dell with a competitiveadvantage in the long-term.


• To discuss the evolution of the PCindustry

• To analyse the traditional business modeladopted by the PC industry vis-à-visDell’s business model and businessphilosophy

• To discuss Dell’s culture and its effectsthereof

• To analyse the internal and externalfactors that affected Dell’s growth inthe 21st century

• To discuss the strategy adopted by Dellin response to its problems and itseffectiveness.

Industry Personal ComputersReference No. TRT0097Year of Pub. 2006Teaching Note AvailableStruc.Assig. Available

keywords

Business model innovation; PC industryevolution; Michael Dell; Kevin Rollins;Direct to consumer business model;Customer segmentation; Organisationculture; Business philosophy; Strategicinflection points; IBM; HP; AppleComputer; Lenovo; Acer; Competitivestrategy; Growth strategy.

YKK – Countering the CounterfeitDragon

YKK is the largest manufacturer of zippersand fastening products in the world. Thecompany though remains almost unknownbecause of the nature of its product whichforms a very small part of the final product.This case discusses the brand YKK, itsoperations, and the counterfeit problem

faced by the company. Counterfeitingbecame a serious problem for YKK since itcaused financial losses and also adverselyaffected its brand image. The case focuseson the measures undertaken by YKK toprevent counterfeiting and increase theawareness of its brand.


• To discuss the counterfeit problems facedby YKK and the effects it had on thecompany’s finances

• To discuss the strategies adopted by YKKto overcome the problem and spreadawareness about its brand.

Industry Zipper ManufacturingReference No. TRT0096PYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

YKK; Zipper manufacturing industry;Counterfeit zippers; Japan; Zipper;Fastening products.

Maytag: In Need of RepairMaytag Corporation, a $1.4 billioncompany is ranked fifth in the home andcommercial appliance business. It has a longhistory of producing high quality productsand owned famous brands like Hoovervacuum cleaner, Admiral, Magic Chef,Jenn-Air and Amana. However in 2005, itsuffered a loss of $75 million in the fourthquarter and its market share fell by 55%.The case study discusses the reasons behindthe fall of Maytag, rising competition inthe home appliance market and Maytag’sattempts to make a comeback.


• To discuss the dynamics of the USconsumer durable market

• To discuss the factors leading to declineof Maytag

• To discuss Maytag’s strategies to makea comeback.

Industry Consumer Durable IndustryReference No. TRT0095PYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Maytag; Maytag’s deadline; US consumerdurable market; Neptune drying centre;Accellis oven; De’Longhi; Dyson; Lowe;Try-out stores; Amana appliances; Sportutility vacuum; Steam Vac; Ripplewoodholdings; Whirlpool-Maytag tieup; Hoovervacuum cleaners.

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Kraft: Deromedi’s DilemmaWhen Roger Deromedi (Deromedi) isbrought on board as Kraft’s CEO inDecember 2003, all Kraft’s flagshipbusinesses – cheese, biscuits, cold cuts, andcoffee – are losing market share and salesvolumes. Kraft, the icon of Oreo and Macand Cheese innovation, has not launched asignificant new brand since DiGiorno pizzain 1995. Deromedi has introduced a seriesof initiatives hoping to arrest fallingprofits. He is reinventing the brandportfolio and divesting laggard andperipheral product lines that account forless than 5% of total revenues andconcentrating on blockbuster brands thatare or can be market leaders in theircategories worldwide. He has narrowedKraft’s thrust to four core areas: coffee,cheese and dairy. To transform theportfolio, Kraft accelerates the shifttowards growing categories and geographieswhere it can leverage its sustainablecompetitive advantages and scale. TheOctober 2004 launch of the Tassimo isexpected to give Kraft a chance to provethat it can be more than just a commoditybroker.


• The case highlights how once considereda ‘category captain’, Kraft’s acquisitionstrategy, brand extension strategy andits product portfolio management hasstagnated its growth.

Industry Food and BeverageReference No. TRT0094PYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Market leadership; Growth; Turn-around.

Keeping Swissair in the AirSwissair was an award winning Europeanairline owned by SAir group. This casepresents the history of Swissair and theissues that resulted in its downfall. Thestrategies adopted by Swissair have beenpresented in the case.


• To discuss the dynamics of thecommercial aviation industry

• To understand the factors leading tocollapse of Swissair

• To discuss the attempts made by Swissairto make a turnaround.

Industry AirlinesReference No. TRT0093PYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Swissair; Commercial aviation sector;Swissair’s bankruptcy; Swissair’s businessstrategy; Effects of liberalisation onSwissair; Swissair’s turnaround; Europeaneconomic area; Alcazar project; Hunterstrategy; Qualiflyer alliance; Hub andspoke; Crossair.

Jet Blue: Too much TurbulenceEstablished in 1999, JetBlue was a low coststart-up airline. After the 9/11 terroristattacks while the airline industry sufferedlosses and struggled to survive in the toughbusiness environment, JetBlue continuedto grow and gain market share due to itsinnovative marketing strategies. However,in 2005 JetBlue’s profits were underpressure as it registered its first ever lossesin the fourth quarter. This case study, whilehighlighting the formation and growth ofJetBlue against the backdrop of theSeptember 9/11 attacks, offers the scopeto discuss the situation of the US aviationindustry and JetBlue’s strategy for aturnaround.


• To discuss the dynamics of the low-costairlines in the US

• To understand JetBlue’s low-costbusiness model

• To discuss the market factors affectinglow-cost airlines.

Industry Airline SectorReference No. TRT0092PYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

JetBlue; Commercial aviation sector;JetBlue’s low-cost business strategy;JetBlue’s losses; Aviation industry scenario;Increasing fuel costs; JetBlue’s turnaroundstrategy; Fuel hedging; Embraer; TrueBluefrequent flyer programme; RockwellCollins guidance system.

Ford: Built for the Road AheadIn 2004, with the entry of Japanese,Chinese and Asian automakers into the USautomobile market, the Big Three-GM,Ford and Chrysler experienced a decline intheir market share and sales. Theirwarranty and pension costs had increasedand consumers complained of low qualityparts used in their vehicles. GM and Fordwere downsizing their work force tocompensate over their lost sales. The year2005 turned out to be a major shake-upfor Ford as it had to recall about 6 millionvehicles to rectify defects. Though key

players like GM, Toyota and Chryslerrecalled their vehicles to revamp defects,Ford recalled its vehicles 17 times .

Ford had quality problems in the past years,but in 2005, it was facing a crisis ofconfidence. The National Highway TrafficSafety Administration was grilling Ford fordetails of problems in Ford vehicles thathad resulted in fire accidents in the MiddleEast, South America, and Southeast Asia.In order to regain its position in the USautomobile market, Ford planned torevitalise its brands and to improve thequality of its vehicles. It also planned tointroduce low cost models in segmentswhere the auto makers had been largelyabsent. With the entry of automakers likeChery and Geely, into the US automobilemarket, apart from local competitors likeGM and Chrysler, would Ford regain itscredibility in US market in the near future?


• To understand how Big Three in the USautomobile industry dominated themarket

• To understand how deterioration inquality affected Ford

• To analyse the turnaround strategies ofFord.

Industry AutomobileReference No. TRT0091BYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Quality; Big Three; Accident rate;Suppliers; Turnaround; Layoff; Closure offactories; Toyota; Recall of vehicles.

New York in 2004: Recoveringfrom 9/11?

New York, probably the best known cityin the world, was devastated by the terroristattack on its symbol, the World TradeCenter on September 11th 2001. With thecity already under recession, the attackscompounded the misery. Apart from theeconomic impact, the trauma resultingfrom the attacks caused a severe healthand environmental problems. Questionswere raised about the city’s ability to copeup with such tragedy.

But on the eve of September 11th 2004,things seemed to have turned around. Theeconomy was picking up. Long standingproblems of New York were being addresses.But question marks remained over issueslike disaster preparedness, co-ordinationamong agencies, etc. The case highlightsthe journey of New York’s recovery andthe challenges that are yet to be addressed.






36www.ibscdc.org


• Disaster management in cities

• Consequences arising out of disasters ofsuch magnitude and how administrationcan best respond to it

• Disaster recovery

• Issues relating to urban society

• Management of city economy.

Industry Urban ManagementReference No. TRT0090BYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Crisis management; Urban economics;Disaster management; Urban planning;Disaster recovery; Disaster ImpactAssessment; Environmental impactassessment; Urban healthcare; Disastersand trauma; Co-ordination amonggovernment agencies; Urban security;Public Policy; Urban project management;Government response and disasters;Economy and terrorism.

Coca Cola in Germany (Part A)Challenges due to Deposit Law

The focus of the case is on the Germanoperations of the Coca-Cola Company.The company had pioneered thecarbonated soft drink market in Germanyand had dominated the market throughoutits 70 years of operations. But problemsbegan to crop up in early 2000. Coca-Colahad initiated consolidation of its bottlersin order to improve its global supply chainmanagement. In Germany, the companyinitiated the same by 2001 and planned tocomplete the process by the end of 2003.But the introduction of the deposit lawhad a negative impact on the GermanBeverages and bottling industry. This alsoaffected Coca-Cola’s German operations.As a result its market share starteddecreasing. In 2004, the new CEO, NevilleIsdell, took charge and began to evaluatethe options available to improve thesituation


• To discuss why sales declined in Coca-Cola’s German subsidiary

• To discuss the Deposit Law

• To discuss the options left before Coca-Cola in increasing the sales andcountering Deposit Law.

Industry BeverageReference No. TRT0089BYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Coca-Cola; Coke; Coca-Cola in Germany;German; Deposit Law; Consolidation ofbottlers; Sandy Allen; German NationwideRecycling system; Waste Management inGermany; Pepsi Co.; Hard discounters inGermany; Local German beverages; PETbottles; Refillable bottles; Carbonateddrinks; Non-corbonated drinks.

Starbucks: Turbulence in itsOverseas Market

Starbucks was a leading coffee giant,expanding the company globally. Since2003, Starbucks had to face problems dueto anti-Americanism in its overseasmarket. Moreover stiff competition in themarket posed a big challenge to Starbucks.Starbucks is trying to overcome all of theseproblems Will Starbucks succeed in itsattempts?


• To discuss about the effect of anti-Americanism globally

• To understand the problems faced byStarbucks in the global market.

Industry BeverageReference No. TRT0088BYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Starbucks; Overseas market; Anti-Americanism; Stiff competition; Strategy;Future-plan; Mergers; Football; Brands;Olympic games.

Starbucks In France: TeethingProblems

In 2005, Starbucks was the largest specialtycoffee shop chain in the world. In 35 yearsof its operation, Starbucks emerged as theworld’s leading retailer, roaster, and brandof specialty coffee with coffeehouses inNorth America, Middle East, Europe, LatinAmerica and the Pacific Rim. The companyhad outlets in more than 10,000 locationsaround the world by the end of 2005.

The coffee multinational initially operatedin various locations of North America,starting its business in the US in 1971. In1996, Starbucks started its internationalventures as the US market reachedsaturation by that time. It entered the Asianmarket first. After receiving encouragingresponses in Asia, Starbucks enteredEurope in 1998. In 2004, the coffee chainreached Paris in France. France, being thebirthplace of café society, already hadseveral well-established and reputed coffee

chains. Moreover, the café culture of Francewas much different from the cultureStarbucks was known for. Hence analystsquestioned whether Starbucks was aware ofthe risk it was taking by entering intoFrance and challenging the origin of cafésociety.


• To highlight the need for adapting tothe culture of a country to flourish inbusiness

• To understand the coffee culture inFrance.

Industry Beverage/CoffeeReference No. TRT0087BYear of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywordsStarbucks; French coffee culture; Howard;Schultz; Gourment coffee; Expresso bar;Cappuccino; Coffee beverage; Seattle;French coffee Market; Starbucksexperience; Italain Caffee; Arabica bean;Hear Music; No smoking policy.

Hong Kong Disneyland:Appeasing the Dragon?

In 2005, The Walt Disney Company(Disney), the No.2 media andentertainment company in the world,opened its first theme park in China, the‘Hong Kong Disneyland’ in Hong Kong.

Hong Kong Disneyland is the Americangroup’s third international amusementpark, the other two being TokyoDisneyland and Disneyland Paris. In 1992,when Euro Disney (later Disneyland Paris)was opened in France, the French criticstermed it as an American cultural invasionand the locals stayed away from it. Finally,Disney made the park more culturallyacceptable to the local visitors and the parkbecame Europe’s most visited place.

So, in 2005, when the Hong KongDisneyland came up, Disney made sure thatit would be a feel-like-home experiencefor the Hong Kong and Mainland Chinavisitors. The company wanted to avoidthe mistake it made in its European foray.Also, as the Hong Kong Government,known to be very conservative, has acontrolling stake, Disney had to makesome modest concessions to local customs.But analysts questioned whether Disneywould be able to transport the magic ofDisneyland brand to Hong KongDisneyland. It tried hard to make the parkculturally acceptable to the Hong Kongand Mainland China population. But in thisattempt, will the aura and magic ofDisneyland be lost?

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• To discuss about the specialty of DisneyLand

• To understand about Hong KongDisneyland

• To highlight the need for adaptabilityon entering a new market.

Industry Entertainment AmusementPark

Reference No. TRT0086BYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Disneyland; Hong Kong; DisneyThemeParks; China; Feng Shui; Robert lger;Dragon; Entertainment; Attendance; Rides;Culture; Amusement Park; DisneylandResort; Mickey Mouse.

Obesity: Fading McDonalds’Image

Since 2002, McDonalds was targeted forthe soaring obesity and other healthrelated issues. Negative propagandahighlighting the deterioration in its foodquality of McDonalds ruined its image asthe most lovable brand in the US. In 2006,in order to get away from negative publicityand to regain its lost reputation and sales,McDonalds included nutritionalinformation in all its fast-food packagingand also started the McDonalds’ GlobalMoms Panel. It had plans to advertiseaggressively about its high-quality food andalso to revamp 100 of its restaurantsaccording to the changing needs of itscustomers. Though McDonalds wasconfident of regaining its image, analystsargued that midst its challenges, it wouldtake a long time for the company toreclaim its lost aura.


• To discuss how the fast food industry inthe US was affected by health relatedissues

• To understand how McDonalds managedto achieve growth through its strategies.

Industry Fast Food IndustryReference No. TRT0085BYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

McDonald’s; Obesity; Fast food industry;Wendys; Burger King; Market leadership;lack of quality; Eroding image; Plan to win.

Coca-Cola in Japan: From RoleModel to Role Reversal

The Coca-Cola Company’s Japaneseoperation, Coca-Cola (Japan) Co. Ltd.(CCJC), was considered to be a role modelfor the company’s other global operations.CCJC also contributed to one-fifth of TheCoca-Cola Company’s annual profits.However, the situation started changingfrom 2002, with a decline in the salesvolume of CCJC. Since the beginning of2006, a number of steps have been initiatedby the management of CCJC to turn thefortunes of the company around.


• To discuss why CCJC was considered tobe a role model for The Coca-ColaCompany’s other global operations

• To analyse the factors responsible forthe decline in the fortunes of CCJC

• To understand the strategies undertakenby the company management to turnthe fortunes of CCJC around

• To debate whether CCJC would be ablerecover its position as a role model forThe Coca-Cola Company’s other globaloperations.

Industry BeveragesReference No. TRT0084Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Coca-Cola (Japan) Co. Ltd.; Role model;Marketing strategies for Japanese; Market;Japanese beverage market; Market trends;Cultural Disparities; Role reversal; Georgiamarketing campaign; Managementchanges; Population of Baby Boomers;Japanese culture; Innovative healthproducts; Strengthening Georgia coffeebrand; Expanding tea portfolio.

Olympus in 2006Tokyo based, Olympus was the world’sfourth best selling digital cameramanufacturer after Canon Inc., Sony Corp.and Eastman Kodak. Olympus alsomanufactured medical endoscopes anddominated the medical industry withmarket share of 70%.

The digital camera business suffered fromsteep price falls, slow industry growth andthe increasing popularity of cameraphones. In March 2005, Olympus suffereda net loss of ¥11.8 billion compared to anet income of ¥33.6 billion in 2004, largelydue to the poor performance of the digitalcamera segment of the imaging business.

Olympus faced various challenges to grabmarket share, make profits and to innovate

the product in a statutory market for itssustenance. Apart from cheap camerasfrom China, camera phones added morewoes to Olympus. In spite of a having along history of operating in the cameraindustry, Olympus wasn’t able to sustainthe industry and rival pressure. Expertsopined that Olympus should engage incontract manufacturing (to China),strengthen its R&D rigorous or let downits business and concentrate on medicalendoscopes.


• To study the competitive scenario ofOlympus

• To study the challenges faced byOlympus

• To analyse the future prospects ofOlympus.

Industry Digital PhotographyReference No. TRT0083AYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Olympus Inc.; Digital photography;Olympus Corp.; Olympus imaging; Digitalcameras; Camera phones; Canon; Sony;Eastman Kodak; Digital SLR; industrydecline.

Pitney Bowes in 2006Pitney Bowes (Pitney) which controlled60% of the worldwide postage-metermarket and 80% of the US market eversince, it was authorised by postal authoritiesin 1920, to rent postage meters, haddominated the business. But in 1959, theUS Department of Justice challengedPitney’s monopoly. And by 1964, Pitneywas facing sixteen competitors in themarket. It gradually fell apart faced withcompetition. Fred Allen’s leadership putPitney back into business and GeorgeHarvey, who succeeded Allen, consolidatedadopting new technologies and products.Now Pitney provided office technologiesand services that helped companies gainefficiencies and capitalise on opportunities.Pitney’s solutions included a wide range ofmailing and document technologies,efficiency management services and one-to-one management expertise.

Unlike other businesses the postal industrywas changing dramatically. It was drivenby technological, social and regulatorychanges. The competition intensified witheach passing day and market segmentsbegan to fragment. As the postal businesschanged, operators responded by reshapingtheir businesses. New technologies alteredthe established industry standards andmarket liberalisation opened the way for





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new competitors. There was a significantshift in what was once sent by physicalmail to other media such as financialprospectuses were now posted on Internetthan sent by mail.

Pitney was in the final stage of a majormakeover, turning from an old-fashionedUS postal meter company into a cutting-edge global solution provider of integratedmail and document management systemsand services. Michael J. Critelli, a 57 yearold Harvard Law School graduate whobecame CEO in 1996, had grown Pitneythrough quiet effective leadership had adaunting task to put a modern stamp onPitney’s 85-year old business.


• To discuss the challenges andopportunities in store for the worldpostage system

• To understand the concept of peripheralvision of corporate leaders

• To illustrate change management, 360degrees turnaround, re-brandingstrategies, quiet leadership, restructuringetc.

Industry Business EquipmentReference No. TRT0082AYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Peripheral vision; Postal meters; Franking;Stamps; Document technologies; Officesolutions; Fax machines; Businesscommunication; e-mail; Snail mail; Quietleadership; Mail; Postal reform; Digitalstamps; USPS; 360 degrees; Mail-sorting;Re-branding; Restructuring; World; Globalpostal systems; Document delivery.

Time Warner: Dick Parson’sDilemma

Time Warner had interests in publishing,cable systems, filmed entertainment,interactive services and televisionnetworks. It owned a collection of brandslike America Online (AOL), Time Inc.,Home Box Office (HBO), New LineCinema, Turner Broadcasting System,Warner Bros. Entertainment and TimeWarner Cable all under one roof.

In 2000, Time Warner merged with AOL.It was called ‘historic’ as it brought togetheran online service company and a mediaand entertainment services provider. Withthe merger, Time Warner’s stocks went upby 39%, $25.31 to $90.06 in 2000. Thedeal represented a major change in TimeWarner’s approach to become a Net player.But the value of AOL had dropped from its$200 billion high, since its merger with

Time Warner. Though AOL was thegateway to the Internet for manyAmericans through the mid 1990s, of latethe rise of high-speed Internet access fromtelecommunication companies and cablecompanies had shrunk its user base.

Moreover, Carl Icahn, the billionaireinvestor who had 3% share in the companyhad been putting pressure on Time Warnerto split the company. He accused the TimeWarner board of not taking enough stepsto enhance shareholder value.


• To discuss the impact of a single shareholder on the entire company

• To discuss the future of Time Warner

• To analyse the growth dilemma facedby Time Warner.

Industry Media ConglomerateReference No. TRT0081AYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Leadership; Carl Icahn; AOL-Time WarnerMerger; Media and entertainment; ISP;Internet Business Dick Parson; Onlineservices; Shareholders value; AmericanOnline; Time Warner; Strategy.

Trouble at Tiffany in JapanThe internationally renowned jewelrycompany, Tiffany had been facingproblems in their second largest market,Japan, since 2002. After performingcommendably even during the times ofdeep economic recession in Japan,Tiffany’s sales in Japan was slipping sincethe last couple of years, while other jewelryretailers were flourishing.

The case explores the probable reasons forTiffany not performing as per theirexpectation. Tiffany’s core customers hadremained the affluent class, but to attractyounger and less affluent customers, it alsointroduced and promoted less expensiveproducts which had tarnished its elite image.Their retailing strategy of opening majoritystores in department stores through whichtraffic of their target customers wasdecreasing, had backfired. Tiffany’sprincipal strategy in Japan had been tofocus on their expensive bridal jewelryespecially traditional engagement rings.With changes in the Japanese traditions,preferences of Japanese consumers andwith the aging of the Japanese populationtheir strategy has turned questionable.Managing the fluctuation in the Yen-Dollarexchange rate, also became a matter ofconcern.


• To analyse the Japanese jewelry marketand discuss the reasons for Tiffany’stroubles in Japan

• To suggest strategies that Tiffany shouldformulate to regain its position in Japan

• To recognise the opportunities andchallenges in store for a global jewelryretailer.

Industry Jewelry RetailReference No. TRT0080AYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Tiffany; Mitsukoshi; Wholesaling;Retailing; Retailing strategy; Japanrecession; Japanese jewelry market;Japanese consumer; Segmenting; Targeting;Positioning; Currency fluctuation; NewProduct introduction; Expansion strategy;Competition; Consumer Behavior; BabyBoomers; Product management.

NBC Universal Inc.: Managing inTroubled Times

NBC Universal (NBCU) dominated UStelevision from the 1970s till 2004 with itshighly popular serials like Friends, Cheers,Seinfeld and Frasier. However, due to itsfailure to offer new entertaining shows since2005, the company witnessed a decline inits viewership and was ranked fourth behindits competitors like FOX, ABC and CBSnetworks. In December 2005, NBCU mademajor changes in its top-level managementand appointed Jeff Zucker as the CEO. Italso planned to market its new shows throughdigital technology to reclaim its leadershipposition.


• To understand the dynamics of the UStelevision market and the critical successfactors in that market

• To analyse the reasons behind the lossof viewership of NBCU

• To debate whether Jeff Zucker’s revivalstrategies would help NBCU to reclaimits leadership in US television.

Industry TelevisionReference No. TRT0079Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

American Television Industry; NielsenTelevision Ratings; Friends; HANA;Ivillage; GE’s Imagination Breakthrough;Jeff Zucker; Turnaround Strategies;Webisodes; Martha Stewart.

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Yahoo!: Challenges in its OnlineEntertainment Ventures

With growth in the global entertainmentand media industry, many Internetcompanies are making efforts to increasetheir presence in diversified onlinebusinesses like digital entertainment.Yahoo!, one of the leading web portalsproviding a variety of services like onlinechat, online music and online sports, alsoventured into the online media business byforming the Yahoo! Media Group in January2005. To offer its users different televisionprograms on the Internet, Yahoo! MediaGroup partnered with Hollywood and othermedia companies like Mark BurnettProductions to launch reality shows likeThe Runner and Wow House. However,these programmes had to be shelved due todeclining viewership. Besides, Yahoo! facestough competition from AOL, MSN andGoogle in online media business.


• To understand the importance of newtechnologies in converging traditionalmedia like the radio and television withemerging medium like the Internet

• To analyse Yahoo!’s gradual expansioninto the online media business amidstcompetition from Google, MSN andTime Warner/AOL

• To discuss the initiatives of Lloyd Braunto enable Yahoo! Grab a bigger marketshare in the global online media business

• To focus on the inherent challenges anInternet company has to face when ittries to foray into online media businessand competes against well establishedtelevision companies.

Industry Internet Search and NavigationServices

Reference No. TRT0078Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

On-line entertainment industry; Yahoo!’sbusiness model; Yahoo!’s products andservices; Media companies in the US;Brand advertising of Internet companies;Yahoo!’s diversified growth; Google;Microsoft; Time Warner; America Online;The US film industry; Turnaroundstrategies of Yahoo!

Temasek Holdings, TheSingapore Government’sInvestment Agency: The

Troubled Strategy?Temasek Holdings was a GovernmentLinked Corporation (GLC), owned directlyby Singapore’s finance ministry - its sole

shareholder. Temasek, like the other GLCsof Singapore, had played a vital role in thecountry’s spectacular economicdevelopment. Saturation in the localeconomy resulted in Temasek to lookbeyond the borders and invest globally.However, Temasek’s government-linkedfactor was coming in the way of itsinvestment strategy.


• To discuss, the evolution and role ofGovernment Linked Companies inSingapore’s economic development

• To discuss, Temasek’s investmentstrategy

• To discuss the problems that Temasek isfacing regarding its global investmentstrategy and their causes

• To discuss, Temasek’s strategy of turningitself around to face the challenge andpossibilities of success.

Industry Financial ServicesReference No. TRT0077Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Available

keywords

Temasek Holdings; State supportedcapitalism in Singapore; Entrepoteconomy; State supported model ofdevelopment; Government linkedcorporations; Manufacturing sector’s shareof Gross Domestic Product (GDP);Singapore Inc.; Policy of regionalisation;Temasek’s investment strategy; Strategicdevelopment; Corporate development;Capital resources management; Building upcorporate behemoths; Divestments;Return on investments.

Dell's Business Model: Is it Time toReinvent?

Dell Inc. has become the world’s largestPC manufacturer through its direct sellingbusiness model. Despite criticism andskepticism about its business model, it hasenabled the company to revive andreinforce its market leadership on differentoccasions. However, during FY 2005-2006,Dell missed its own revenue projectionsfor two consecutive quarters. This hasraised concern among analysts about theviability of Dell’s business model in thematuring PC industry and whether Dellwould be able to sustain its sales growth.


• To understand the direct selling modelof Dell and identify the key drivers ofthe model that have enabled Dell tobecome the leader in the global PCindustry

• To discuss the limitations associated withDell's direct selling model

• To analyse the possible reasons behindDell missing its revenue forecasts

• In the light of impending challenges, todebate whether it is time for Dell toreinvent its business model.

Industry Personal ComputersReference No. TRT0076Year of Pub. 2006Teaching Note AvailableStruc.Assig. Available

keywords

Competitive scenario of the globalpersonal computer (PC) market; Dell’sdirect selling model; Dell’s strategies tokeep costs low; Dell’s business model vis avis other PC makers; Growth of Dell; Dell’sbusiness challenges; Dell’s logisticsmanagement; Dell’s supplier management;Dell’s support centres across the globe;Dell’s leadership in the global PC industry;Dell’s competition with Lenovo; Dell’sbusiness strategy for retail customers.

Cendant Corp., the Travel andReal Estate Conglomerate:

Troubles and ResponsesIn 1998, Cendant Corporation, a US-basedtravel and real estate conglomerate washit by one of the largest accounting fraudsin the US history and its stock valuedropped by $14 billion in a day. Thecompany was forced to pay $3.2 billion toits shareholders on account of this fraud.The company also faced challengesranging from low returns from expensiveacquisitions and allegations of hugecompensation to its CEO, to its beingundervalued and its ineffective sharebuybacks. To resurrect itself from suchtroubles, Cendant realigned its businessesand divested its non-core assets and splitup into four separate companies with eachcompany specialising in one of Cendant’sbusiness lines – hospitality, real estate,travel booking and car rental.


• To understand the growth strategies of acompany that has diverse businessesunder its brand

• To discuss the aftermath of the disclosureof the accounting fraud on Cendant andhow it underwent a restructuring toregain its lost ground

• To highlight the core competencies ofCendant and how the company realignedits different businesses based on thesestrengths

• To debate whether the responses arestrategic in nature or are mere reactions.





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Industry Residential Real EstateBrokerage


keywords

CENTURY 21; Coldwell banker; Vehiclerental and mortgage services; Real estateservices; Hospitality services; Traveldistribution services; CUC InternationalInc.; Hospitality Franchise Systems Inc.(HFS); Wright Express Corporation; HebdoMag International; National LeisureGroup; The Harpur Group Ltd.; ebookers;Gullivers Travel Associates.

Perils of Going Global: WPP’sItalian Imbroglio

Since its inception in 1985 under thestewardship of Sir Martin Sorrell, WPP,the world’s second largest advertisingconglomerate, has rapidly expandedthrough acquisitions and partnerships. Ithas 2,000 offices in 106 countries andemploys 100,000 people. However, itscontinuous expansion and globalisationunder a centralised management structureled to a loss of control over the entiregroup. One such instance was the dismissalof the Italian country head, Marco Benatti,who was fired due to allegations of fraudand other financial discrepancies, and asubsequent investigation was launched inWPP's Italian arm.


• To understand the growth strategies ofWPP in the global advertising andmarketing industry

• To discuss the managerial problems in arapidly expanding global company witha centralised management.

Industry Advertising and MarketingReference No. TRT0074Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Wire and plastic products; Advertising andmarketing services; Global advertisingcompanies; WPP’s problems in Italy; SirMartin Sorrell; Marco Benatti; MediaclubItaly; Grey Global; Management problemsin global companies; Ogilvy & Mather;Specialised and interactive communicationservices; Investigations into WPP Italy.

Paramount Pictures’ TroubledTimes: Can Someone Script a

Turnaround?Paramount Pictures, founded in 1912 asFamous Players Film Company, is the lastof the major US film studios to be locatedin Hollywood. The studio has an illustrioushistory of delivering some of the greatesthits in Hollywood like The TenCommandments, Roman Holiday, TheGodfather series, Mission Impossible andTitanic. Since 2000, the absence ofblockbusters has hit its finances. Adding toits financial woes is the alleged link-up ofits chairman and CEO, Brad Grey withAnthony Pellicano, a former privateinvestigator, who was arrested on chargesof illegal wiretapping and racketeering inearly 2006. Despite the acquisition of apromising film studio like DreamWorksSKG, the future of Paramount Pictures isstill uncertain.


• To understand the evolution of the moviebusiness in the US, from the studio erato Hollywood in the 21st century

• To discuss the strategic initiatives takenby Paramount Pictures to boost itsfinancial health

• To debate whether a major studio likeParamount can survive in the businesswhich is being increasingly characterisedby small studios making small-budgetmovies to cater to niche audiences.

Industry Motion Picture Productionand Distribution


keywords

Famous players; Adolph Zukor;MajesticMountain; Paramount antitrustcase; SIMPP (Society of IndependentMotion Picture Producers); Viacom Inc.;The Paramount Library; AnthonyPellicano; Brad Grey; DreamWorks SKG;CBS Corporation; Mission Impossible III;George Soros; Tom Cruise.

Takafumi Horie and Livedoor: AnOpportunist or a Victim?

In sharp contrast to the genteel, dark-suitwearing Japanese business elite, TakafumiHorie (Horie), the CEO of Livedoor, wasflamboyant and informal. Horie symbolisedthe new generation of Japaneseentrepreneurs who dared to challenge thestatus quo in the conservative businesscommunity. His rapid rise to fame largely,because of his acquisition spree, had shockedmany. Greater was the reaction when he

was arrested on charges of falsifyingfinancial statements of the company.


• To discuss the rise of Takafumi Horieand his style of operations

• To compare the operations of thetraditional Japanese companies ascompared to that of Livedoor

• To discuss whether Horie became a victimbecause of his flamboyant lifestyle whenexperts agree that a large number ofcompanies are engaged in similar illegalactivities like Livedoor

• To discuss the impact of Livedoor scandalon the Japanese financial market.

Industry Information TechnologyServices


keywords

Livedoor; Entrepreneurship; TakafumiHorie; Charismatic leadership; Corporatescandal; Financial scandal; Effect of scandalon financial markets; New generation ofJapanese entrepreneurs; Stock split;Poison pills; Livin’ on the edge.

PepsiCo’s New Challenge:Transformation into a Health

Food CompanyIn early 2002, the growing concern abouthealth and obesity among Americans wastaking its toll on fast food chains andcompanies. PepsiCo was among the firstfew companies that tried to refurbish itsimage as a health foods company. PepsiCoinitiated a series of efforts by partneringwith reputed physicians and reviewing theentire product line.


• To discuss the series of initiatives thatPepsiCo has undertaken to transformitself into a health foods company

• To discuss how an industry came underfire due to the rising concern aboutobesity and health.

Industry BeveragesReference No. TRT0071Year of Pub. 2004Teaching Note AvailableStruc.Assig. Available

keywords

PepsiCo; Health foods; Good for you;Better for you; Fun for you; SteveReinemund; Food industry and obesity; Dr.Kenneth Cooper; Dr. Dean Ornish; Trans

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fats; Health food company; Pepsi edge;Green dot; Tropicana; The Quaker OatsCompany.

Japan Airlines Corporation:Brand Building Strategies

Established after the Second World War,Japan Airlines evolved into Japan’s leadingair carrier in a highly regulatedenvironment. After liberalisation of theJapanese airlines industry in 1987, JapanAirlines suffered losses due to a toughbusiness environment and inherentinefficiencies. Its merger with Japan AirSystem created Japan Airlines Corporation(JAL), which became one of the world'sleading air carriers. However, in 2005 aseries of safety lapses in JAL planesseverely damaged customer confidence inthe airline and the company received afirst-ever operational improvement orderfrom Japan’s Transport Ministry.


• To highlight the formation and growthof JAL against the backdrop of theJapanese airlines industry

• To discuss its brand building strategies towin back customer confidence.

Industry AirlinesReference No. TRT0070Year of Pub. 2006Teaching Note AvailableStruc.Assig. Available

keywords

Japan Airlines; Japan Airlines Corporation;Japan Air System; All Nippon Airways;Toshiyuki Shinmachi; Japanese airlinesindustry; Civil Aviation Law; Japan AirlinesCompany Limited Law; Brand buildingstrategies; Building customer confidence;Deregulation liberalisation; Brand image;Ministry of Land, Infrastructure andTransport.

GM’s Growing Troubles: LabourDriven or Market Driven?

General Motors (GM), which maintainedits number one position in Fortunemagazine’s annual 500 list over the years,is into losses worth $1.6 billion in thirdquarter of 2005 mainly due to losses at itsNorth American operations. The GMmanagement cited rising healthcare andlabour costs as major reasons for losses.But, the United Auto Workers (UAW) feelsthat vehicle design, product developmentand foreign competition are the majorreasons for company’s losses. Theopposing positions between the two (GMand UAM) had hindered negotiationsconcerning reduction of healthcare costs,

job cuts, outsourcing and sub-contracting.Finally on October 17th 2005, GMannounced its deal with the UAW, whichagreed to reduce its healthcare costs forretirees by $15 billion and its annualemployee healthcare expenses by $3 billiona year. Other than reducing costs, GM hasalso planned to increase revenue byrefocusing on sales, marketing anddevelopment of new models.


• To highlight the reasons for the recentlosses at the North American operationsof GM

• To discuss the deal entered into by GMand UAM and the effects of the deal.

Industry Automobile ManufacturingReference No. TRT0069Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

General Motors; Rick Wagoner; Labourcost; Legacy cost; Global auto motorindustry; American auto motor industry;United Auto Workers (UAW); Healthcarecosts; Competition; Car models; Sportsutility vehicles (SUVs); Ron Gettelfinger;Delphi; Detroit; Low-cost manufacturers

eBay Celebrating TenthAnniversary: The Challenges

AheadOn June 23rd 2005, eBay, the world's largeston-line auctioneering company, celebratedits 10th anniversary. The company, whichstarted its operations with the trade ofcandy dispensers, became a world leader inon-line business through its innovativebusiness model and consistentperformance. While the company’smanagement feels it is just the beginningof the success story, many industry expertsopine that the sector is heating up withthe entry of other Internet heavyweightslike Yahoo!, Amazon, and Google, resultingin several challenges for eBay.


• To trace the evolution of eBay into anon-line business giant

• To highlight eBay’s business model, itscompetitive advantage and the growthstrategies adopted by eBay

• To discuss the future opportunities andchallenges for eBay.

Industry Internet AuctionsReference No. TRT0068Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Growth strategy; Triple A’s - Acquisition;Activation; Activity; World’s on-linemarketplace; Pierre Omidyar; MegWhitman; e-Commerce; Reputationmanagement system; Paypal Kijiji; Zeroinventory system; Yahoo!; Microsoft;Google; Competitive strategies; Froogle;Alibaba; EachNet; Peer-to-peer networks;Business model.

Nissan in America: The TroubledStrategy

After a turnaround that is worthy of beingcalled a miracle, Nissan saw its sales slippingin the very important US market and losta considerable market share. Lack of newmodels is said to have hampered the salesgrowth. The next model will be released inlate 2006, by March of that year Nissanwould have spent a year without releasinga new model – something unusual in thehypercompetitive automobile industry,where new models, at best, or variations inthe old models, at worst, are commonplace. It is noted that by the time Nissancomes out with a new car, its market sharewould have fallen beyond recovery. Chiefexecutive officer Carlos Ghosn, oftenreferred to as the 'golden boy' of theautomobile industry, is confident andadvocates that there is no problem thatcannot be solved by a good car. He mightbe right, indeed he has revived the fortunesof debt ridden Nissan by introducing twodozen new models since 1999. However,pessimists would say ‘miracles do not workoften’.


• To highlight the strategies adopted byCarlos Ghosn to revive Nissan.

Industry AutomobileReference No. TRT0067Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Automobile industry in the US; Nissan;Nissan in America; Carlos Ghosn; Nissan’sstrategy in the US; Carlos Ghosn’s strategy.

The American Institute ofCertified Public Accountants

(AICPA): A Decade ofChallenge and Change

By the turn of the 21st century, due to aseries of accounting scandals in companieslike Enron and Worldcom in the US, FederalPublic Policy makers felt that the AmericanInstitute of Certified Public Accountants'(AICPA’s) authority to set accounting






42www.ibscdc.org

standards and their enforcement should betransferred to a government empoweredbody. Subsequently, the Sarbanes-Oxley Actestablished the Public Company AccountingOversight Board (PCAOB), which hasjurisdiction over every area of CPA practicein relation to public companies. However,for the majority of practising CPA’s, whoserve privately held business andindividuals, AICPA retains its authority toset accounting standards, enforceprofessional ethics and monitor the qualityof the firm practices. Since 2003, AICPAhas begun many initiatives, which includeprogrammes that would help inimplementing the Sarbanes-Oxley Act andrebuild investor confidence.


• To highlight the growth of AICPA

• To discuss the institution’s challengesagainst the backdrop of majoraccounting scandals that have rockedcorporate America.

Industry Membership OrganisationsReference No. TRT0066Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

American Institute of Certified PublicAccountants (AICPA); Growth strategies;Sarbanes-Oxley Act; Security laws;Oversight Board; Financial AccountingStandards Board (FASB); Generallyaccepted accounting principles (GAAP);Generally accepted auditing standards(GAAS); Public Company AccountingOversight Board (PCAOB); AccountingScandals; Enron; Accounting StandardsBoard; Securities Exchange Commission(SEC); Challenges for AICPA.

Diageo: World’s Largest SpiritsCompany in Troubled Times

In 2003, Diageo, the world’s largestproducer of alcoholic drinks, was involvedin a controversy over its alleged role inruining the age-old reputation of the globalScotch Whisky Industry. This was followedby the decline in the sales of its Ready toDrink (RTD) beverages in the US and asluggish economic growth in Europe, itsmajor market. Besides this it also startedwitnessing stiff competition from otherglobal giants like the Pernod Ricard-AlliedDomecq alliance, William Grant’s andChivas Regal.


• To highlight the business hurdles beingfaced by Diageo

• To discuss the strategies adopted by it toretain its number 1 position in the world.

Industry DistilleriesReference No. TRT0065Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Diageo; European economy; US dollardecline; Consumer taste; Restructuring plan;Troubled times; Mergers and acquisitions;Pernod Ricard; Competition; Competitiveadvantage; Marketing and innovation;Diversification; Weak demand; Taxes;Future of Diageo.

Troubled Times at MorganStanley: Strategic Missteps of

Philip J. Purcell?Philip J. Purcell took over as the chiefexecutive officer (CEO) of Morgan Stanleyin 1997. Dean Witter Discover & Co. wasmerged with Morgan Stanley in the sameyear. Although initially the companyrecorded robust performance, post 2000the performance started deteriorating andthe critics accused Purcell’s strategicmissteps as the reason. As a result, Purcellhad to step down as the CEO of thecompany on June 13th 2005. But hissupporters were of the opinion that hisstrategies would have been successfuleventually and he was merely a victim ofcircumstances.


• To discuss the challenges faced by PhilipsJ Purcell in turning around the fortunesof the company.

Industry Capital MarketReference No. TRT0064Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Morgan Stanley; Philip J. Purcell; Strategicmissteps; Discover credit card; Investmentbank; Group of 8; Retail brokerage; Assetmanagement; Spin-off; Culturaldifferences; Consumer–corporateconglomerate; Dean Witter Discover &Co.; Financial supermarket.

EADS: The Boardroom Battle atEurope’s Aerospace Giant

European Aeronautic Defence and SpaceCompany NV (EADS), Europe’s largest andthe world’s second largest aerospace firm,has plans to venture into the US defenceindustry, which is dominated by UScompanies. Despite doing well on thebusiness front, EADS is mired in aboardroom battle, which stems from itsunique organisational structure. With the

German and French shareholders failing tocome to a consensus on the futuremanagement structure of EADS, manystrategic decisions of the company havebeen put on hold.


• To highlight the power struggle withinthe EADS board

• To discuss how conflicting nationalinterests in a company with dualcommand, might hamper its businessprospects.

Industry Commercial AircraftManufacturing


keywords

Global aerospace and defence business;Global commercial aircraft manufacturers;Strategic partnerships in the defenceindustry; European aerospace and defencemanufacturers; Ownership structure ofEuropean Aeronautic Defence and SpaceCompany NV (EADS); Relationshipsbetween principal shareholders of EADS;Voting rights at EADS board; Conflictingnational interests at EADS board; Futurebusiness plans of EADS; Transnationalownerships and mergers; State ownershipin European defence manufacturers;Multinational ownership and leadershipstruggles; Franco-German alliance inaerospace and defence manufacturing;Dual-command structure at EADS.

BSkyB: Troubled TimesIn June 2005, the European Commission(EC) passed a directive that proposed toput an end to British Sky Broadcasting’s(BSkyB) exclusive rights over telecastingof FA Premier League football matches.The Commission proposed to split 20%-50% of the rights with another buyer atthe next contract renewal due in 2007.Sentanta Sports, a Dublin-based Irish TVgroup, is vying for a part of thebroadcasting rights to strengthen itsportfolio of sport rights in and outside ofIreland. Analysts believe that the loss ofexclusive rights of BSkyB will reduce theearnings of the clubs in the FA PremierLeague and may also lead to the bankruptcyof some clubs. On the other hand, someanalysts have opined that loss in exclusivityby BSkyB would lead to a greater numberof games being aired on ‘free-to-air’television benefiting fans across the UK.


• To highlight the different strategiesadopted by BSkyB in the wake of thedirective by the EC

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• To discuss the challenges that JamesMurdoch, chief executive of BSkyB facesin trying to retain viewership andmaintain the company’s position in thecompetitive broadcasting market.

Industry Direct Broadcast ServiceProviders


keywords

BSkyB; European Commission; SetantaSports; FA Premier League; UK; Personalvideo recorder; Competition law; Pay-per-view; Segmented pricing strategy;Customer churn rate; Sky Mobile; IPTV(TV over Internet protocol); HDTV (HighDefinition Television); English CricketBoard (ECB); Digital television.

The Reliance Group Split-up:What Went Wrong with the Indian

Conglomerate?The Reliance Group, controlled andmanaged by the Ambani family, is India’slargest business house. Started in 1958,Reliance grew from a small tradingcompany to a conglomerate with majorinterests in petroleum, petrochemicals,power, finance and telecom industries,under the leadership of Dhirubhai Ambaniand his sons Mukesh and Anil. After thedeath of Dhirubhai, who was believed tohave died intestate, the elder son, Mukeshassumed control of the family-ownedbusiness. Within two years, a majorownership battle for the control ofReliance between the two brothers cameto light. With both brothers hurlingaccusations at each other the image ofReliance suffered until their mother,Kokilaben Ambani, effected a settlement.


• To highlight the growth of Reliancegroup and the impact of split-up ofReliance Group on the financials andgrowth.

Industry Not ApplicableReference No. TRT0061Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Reliance group split-up; Dhirubhai MukeshAnil Ambani; Reliance Industries Limited(RIL); Indian Petrochemicals Limited(IPCL); Reliance Energy Limited (REL);Reliance Capital Limited (RCL); RelianceInfocomm (RIC); PetroleumPetrochemicals; Ownership and controlissues; Corporate governance and

transparency; Family-owned businessenterprise; Indian conglomerate; VimalHazira Jamnagar Naroda; Diversificationstrategies; Largest petroleum refinery.

Walgreen Co.: The US DrugstoreChain's Survival Strategies

against the Drug WarsFounded by Charles Walgreen in 1901,Walgreen grew to become the largestdrugstore chain of the US, by 2005. Eversince its inception, Walgreen had expandedby opening new retail pharmacy stores andby 2005 it operated over 4,800 stores inthe US. Though Walgreen had grown tobecome the largest chain of drug stores, ithad to face many challenges from the mailorder operators since the mid 1990s. Thecompetition from the mail order operatorshad almost changed the business model ofthe retail pharmacy stores. The customersof Walgreen started purchasing their dailymedical requirements, on-line from theInternet sites operated by the mail orderpharmacies (also known as the PharmacyBenefit Managers). To retain its customers,Walgreen started its own on-line drugstorecalled www.walgreen.com in 2000. Furtherin 2003, Walgreen initiated theAdvantage90 programme providing itscustomers the choice of purchasing fromthe retail stores as well as from the on-linesites.


• To discuss the growth strategies ofWalgreen to deal with the challengesfaced by it in adopting its business modelaccording to changing industry trends.

Industry Drug RetailingReference No. TRT0060Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Walgreen Co.; Charles Walgreen; OrganicGrowth; Largest drugstore chain;Competition from mail order system; On-line drugstore; Pharmacy benefit managers;Advantage90 programme.

CNN, The World’s First 24-hourNews Channel’s 25th Year: The

Challenging TimesCable News Network (CNN) is the world’sfirst ever 24-hour news channel launchedby Ted Turner in 1980. Until RupertMurdoch introduced Fox Channel in 1996,CNN dominated the cable news marketwith its around the clock news broadcasting.Apart from a decline in the viewership,the competition from Fox Channel brought

to light various factors that CNNoverlooked in its broadcasting. Biasedreporting, a little-varied portfolio ofprogrammes and an inclination towardsmarketing rather than reporting quality,all made CNN vulnerable to competition.


• To highlight growth strategies of CNNover the years and the challenges it facesfrom rival channels

• To discuss how CNN is dealing with thecompetition especially from Fox newschannel by initiating changes to itsprogramming and reporting style.

Industry Television Cable, Pay andBroadcast Networks


keywords

Cable News Network (CNN); Competitionamong 24-hour news channels; Ted Turner;Fox Channel; Rupert Murdoch;Conservative and Liberal audience;Innovations in broadcasting; Biasedprograms; Image transformation; CNN’scompetitive strategies.

Amtrak: America’s PassengerRail Service Getting out of

Track?Amtrak was started in 1971 by the USgovernment to provide high qualityintercity railroad passenger transportationat economical rates. Although Amtrak wasexpected to achieve operational self-sufficiency by 1973 without the USgovernment subsidy, the companycontinued to receive federal subsidies,which amounted to $29 billion by 2004.In mid-2005, the US governmentintroduced a bill in the Congress titled thePassenger Rail Investment Reform Act,which intended to privatise Amtrak.However, certain lobbies in the USCongress are opposing the bill.


• To highlight the challenges faced byAmtrak

• To discuss the implications of privatisinga passenger railroad, which has beenlosing $1 billion every year since theearly 1990s.

Industry Intercity Passenger RailroadsReference No. TRT0058Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available





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keywords

National Railroad Passenger Corporation;National monopoly; Amtrak’s operationalself-sufficiency; Passenger Rail InvestmentReform Act; Privatisation of Amtrak;American aviation industry; Americanautomobile industry; Interstate CommerceCommission; Intercity passenger railroads;Passenger network; Federal subsidies;Fastest mode of transportation; Globalprivatisation of railroads; Railpax

US Postal Service: Threats andChallenges

By 2004, the United States Postal Service(USPS) had established a network of 37,000post offices across the nation. Throughvarious cost cutting initiatives and supplychain improvements, USPS reduced its debtfrom $11.3 billion (in 2001) to $1.8 billionin 2004. However, with increasing usageof the Internet for personal and businesscorrespondences, the first class mailservice, which represents more than halfof the USPS revenues, has been declining.Besides, increasing competition fromprivate courier companies accompanied bya potential workforce crisis and rise inexpenses has forced USPS to reduce its costseven further by adopting the latesttechnologies to provide faster and morecost efficient services.


• To highlight the challenges faced byUSPS to survive and retain its marketshare.

Industry Postal ServicesReference No. TRT0057Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Available

keywords

Postal Service in US; Automationtechniques in postal service; CustomerServices at USPS (US Postal Service); On-line postal services; First class mail;Automated postal centres; Cost controlmeasures at USPS; Federal Express;Workforce crisis at USPS; Threats fromthe Internet; Bureaucracy in USgovernment; US Postal Reorganisation Actof 1970.

Siebel Systems, Inc.: Troublesand Turnaround Efforts

Siebel Systems Inc. was one of the fastestgrowing companies in the informationtechnology industry. It was known for itsability to provide software solutions forCustomer Relationship Management(CRM) and Sales Force Automation (SFA).But the global economic slowdown in 2000

brought a spate of troubles for thecompany, from which it seemed hard toemerge. As the company kept reportingdismal performance year after year since2002, concurrently the management wasalso making efforts to stop the losses andachieve a turnaround. As part of theturnaround effort, a new Chief ExecutiveOfficer, Michael Lawrie, was appointed torevive the fortunes of the company. Butbefore he could completely implement hisstrategies, in a sudden move, he wasreplaced with George Shaheen. Thecontinuous losses, ongoing turnaroundefforts and the sudden change of leadershipat the helm raised questions about thehealth of the company and its futureprospects.


• To highlight turnaround efforts andstrategies adopted by Siebel Systems Inc.



keywords

Siebel Systems Inc.; Informationtechnology services; Business processingoutsourcing services; Turnaroundstrategies; Restructuring plan; MichaelLawrie and George Shaheen; CustomerRelationship Management (CRM); TomSiebel; Sales Force Automation (SFA);Incompetent managers and poor decisions;Troubled times and leadership change;Oracle; SAP; IBM; Salesforce.com;Computer services and software;Turnaround specialist; Divestments andspin-offs.

Wal-Mart in Germany: TheRetailing Challenges

By the end of 2004, Wal-Mart had amarginal presence in Germany with 2% inthe retail food market. Even with 91supercentres, Wal-Mart was facingproblems trying to integrate its operationsin Germany and was also finding it difficultto adapt itself to the local culture. Besides,strict government regulations in the retailsector were hampering its expansion.


• To highlight the strategies adopted byWal-Mart to overcome the retailingchallenges in Germany.

Industry Discount and Variety RetailReference No. TRT0055Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Wal-Mart; Germany; Retail industry;Hypermarket; Kay Hafner; Every Day LowPricing (EDLP); Interspar; Zoningregulations; Culture clashes; Restrictiveshopping hours; Supply chain anddistribution system; German retail laws andregulations; Wertkauf; Merchandisevendors.

MG Rover: The Fall of an IconicBrand – The Blame Game

ContinuesMG Rover was once Britain’s biggest carmanufacturer in terms of volume,producing more than half a million carsannually. Established in 1906, the companyexperienced many setbacks in the form ofownership changes, industrial relationproblems, low production and financialconstraints, which finally led to thedownfall of the company. While someanalysts held BMW, the owner of MGRover between 1994 and 2000, responsiblefor the downfall, the others blamed thegovernment for not rising to the situationon time when BMW sold the company toPhoenix Venture Holdings. Themanagement of Phoenix Venture Holdingsheaded by ex-chief executive officer of MGRover, John Towers, faced criticism forutilising the funds available at MG Roverto fulfill their personal financialrequirements.


• To discuss the options available at MGRover to avoid the fiasco.


keywords

Rover Group; Longbridge factory;Ownership changes; Phoenix VentureHoldings; Job cuts; The Mini brand;Bankruptcy; Labour problems; JohnTowers; Tony Blair; Shanghai AutomotiveIndustry Corporation.

American Car-parts Firms’Growing Troubles: Delphi Leads

the WayThe world’s largest auto parts maker, DelphiCorporation, announced in March 2005that it had overstated its profits by $166million and cash flows by $447 millionover a period of six years since 1999. Theaccounting irregularities came to the foreat the time when Delphi was already miredin other problems related to an increase in

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commodity prices like steel, a decrease inproduction by Ford, DaimlerChrysler andGM, as well as increased competition fromforeign players.


• To highlight the challenges faced by theUS car-parts industry

• To discuss Delphi’s problems and itsfuture course of action under difficultbusiness circumstances.

Industry Auto-Parts ManufacturingReference No. TRT0053Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Delphi; US car-parts industry;Autosuppliers; USA; Auto parts;Accounting; Outsourcing; Foreign autoparts suppliers; Big Three; Ford; GeneralMotors; Auto parts manufacturers; Steelprice; Commodity price.

Swiss International Airlines:Revival Plan to Yield Break

even?Swiss International Air Lines (SWISS), thenew national carrier of Switzerland wasformed in 2002, through the merger ofbankrupt former national carrier SwissAirand a regional carrier CrossAir. Thecompany’s several attempts to repositionitself failed. In 2004, the airline’smembership in the Oneworld Alliance anda partnership agreement with BritishAirways went sour aggravating thecompany’s troubles. Also, the airline is yetto break even since its inception. Hence,in early 2005, SWISS announced arestructuring plan aimed at ending itstroubles and posting a net profit by 2006.


• To highlight the reasons behind thecontinuous losses and failure of SWISSInternational Airlines alliance withBritish and other airlines.

Industry Commercial Aviation andAirlines


keywords

Swiss International Air Lines (SWISS);Oneworld Alliance; Code-sharingagreement; British Airways; Restructuringplan; Breakeven; Swiss national air carrier;Crossair; Loss-making routes;Incompetent managers and poor decisions;High cost airline and low cost airline;

Structural problems and cultural clashes;Deutsche Lufthansa AG; Lufthansa-SWISSmerger; Future of SWISS.

Marsh & McLennan: TheTroubled Insurance Broker

Marsh & McLennan (Marsh), the world’slargest insurance brokerage company wasmired in an insurance scandal in 2004. Itwas alleged by New York Attorney GeneralEliot Spitzer, that it had been involved inunethical and illegal practices to benefitits favourite clients through rigging ofinsurance bids in their favour, manipulatingprices of their insurance products and thatit received extra commissions for thosefavours. These allegations and theconsequent investigation by the attorneygeneral had a profound impact on thecompany. It witnessed the erosion of itsmarket capitalisation by nearly 50%, adecrease in earnings, downgrading byinternational rating agencies andresignation of the chief executive officer(CEO). The entire US insurance industrycame under the scrutiny of investigatorsand law enforcers. To protect the companyfrom its falling reputation, the companyappointed a new CEO Michael Cherkaskywho took up the task of reformation by an$850 million settlement of the scandal, achange of business model, elimination ofunlawful practices, and measures tomaintain transparency and bettercompliance. But the company still facesseveral other tougher challenges for thefuture.


• To highlight the flaws in the USinsurance industry, which led to a majorscandal, and its impact on the insuranceindustry.

Industry InsuranceReference No. TRT0051Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Marsh and McLennan Companies;Insurance brokerage firm; New Yorkattorney general, Eliott Spitzer; MichaelCherkasky and Jeffrey Greenberg;American insurance regulatory system;Insurance bid rigging; Price manipulatingand fixing; US SMART (StateModernisation and RegulatoryTransparency) Act; Insurance scandal andprobe; Corporate transparency; Conflictof interests and investor confidence; Fraudand anti-competitive activities; Secretiveculture; Corporate governance; Americaninsurance industry.

Ente Nazionale Idrocarburi(ENI): Succession Battle at the

Italian Oil GiantEnte Nazionale Idrocarburi (ENI) an Italianstate-owned company dealing primarily inoil and natural gas under Enrico Mattei,the founder of ENI, diversified intobusinesses such as electricity, engineering,construction and petrochemicals. After hissudden death in 1962, the company wasmired in financial and operational strugglesand in 1992, Franco Bernabe, a strongsupporter of privatisation was appointedas chief executive officer. Under hisleadership ENI not only became a jointstock company but also showed profits.Vittorio Mincato succeeded Bernabe in1998 and he turned ENI into the world’ssixth biggest oil producer, in terms ofmarket capitalisation. With his termcoming to an end in May 2005,speculations about the succession plans isdoing rounds in the industry circles. Owingto the government’s 30% stake in ENI,Silvio Berlusconi, Italy’s prime ministerwas also in search for a replacement toVittorio. Moreover, though Vittorioannounced that he was expecting a termextension, many within the industry circlesvoted against him.


• To highlight the impact of politicalinfluence on the management as well asthe company’s operations that led tofinancial problems at ENI

• To discuss how privatisation efforts andfreeing the company from politicalinfluence helped the company to emergeas one of the leading oil producers in theworld

• To discuss the possible impact ofsuccession plan on the future of ENI.

Industry Oil and Natural GasReference No. TRT0050Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Succession plans; Privatisation;Government intervention; VittorioMincato; Political influence.

Vonage – The Pioneer in VOIPTelephone Services: Future

ChallengesUS-based Vonage is the pioneer in the VoiceOver Internet Protocol (VOIP) telephoneservices. Through innovative services andpromotion, it emerged as the leading playerin the industry. But the increasingpopularity of Internet services broughtmajor telecom, cable, and Internet





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companies into the VOIP market, creatingfuture growth challenges for Vonage. Thiscase provides insights into the VOIPtechnology, industry trends and thecompetitive strategies of various playersin the fast expanding VOIP market.


• To discuss the future trends in VOIPindustry

• To highlight the challenges faced byVonage to retain its leading position inthe VOIP telephone services.

Industry Telecom ServicesReference No. TRT0049Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Vonage; Voice over Internet Protocol(VOIP); Diversification; AT&T; Comcast;Cable Vision; US telecom industry; Skype;Net2Phone and Delta Three; Business andrevenue model; Cable and telecom giants;Telecom and Internet infrastructure;Verizon; Internet phone industry; Wi-Fi(wireless fidelity) technology.

Troubled Times at PerrierIn the mid-1980s, Perrier was the world’sbest selling mineral water brand. In February1990, after the detection of contaminationin its bottled water, the brand was almostruined. Nestle bought Perrier in 1992. Afterseveral unsuccessful attempts to restructurethe company, in March 2004, Nestleannounced that Perrier was not profitableenough and proposed voluntary retirementfor some of its workers. Perrier’s powerfullabour union, CGT (Confederation Generaledu Travail), opposed the proposal andrefused to accept job cuts. Nestle threatenedto sell off Perrier or move productionelsewhere. With the Nestle managementand the CGT at loggerheads, the Frenchfinance minister had to intervene to settlethe dispute.


• To highlight the problems of Perrier andpossible actions required to revive thecompany.

Industry Water and IceReference No. TRT0048Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Perrier; Nestle; Mineral water; Bottledwater; CGT (Confederation Generale duTravail); Labour relations; Nestle WatersFrance; French mineral water industry;

Contamination; 35-hour workweek;French labour laws; Green bottle; Naturallysparkling.

Mobile Phone Industry’s SafetyConcerns: Managing Troubled

TimesSince the introduction of mobile phonesin the early 1980s, there have beenconcerns regarding the effects of the useof mobile phones on human health. Therewere allegations that the microwaveradiation used to transmit conversationsbetween base stations and mobile phonehandsets could lead to health problems suchas fatigue, reduced concentration andcataracts among others. Although, therewas no concrete evidence that mobilephones posed a threat to human health,researchers warned people to take acautious approach to the use of mobilephones. Meanwhile, mobile phonemanufacturers initiated efforts to counterthe health fears.


• To highlight the efforts initiated bymobile phone manufacturers to mitigatethe fears about the health risksassociated with the use of mobile phones.

Industry TelecommunicationsEquipments


keywords

Mobile phone industry; Health issues;Mobile phone industry’s safety concerns;Microwave radiation; Health risks andmobile phones; Mobile phone base stations;Mobile Manufacturers Forum;Electromagnetic radiation; MobileOperators Association; World HealthOrganisation; Initiatives by mobile phonemanufacturers; Specific absorption rates ofmobile phones; Radiation levels of mobilephones; Mobile TelecommunicationsHealth Research programme.

Vodafone: Losing Connectivity inJapan?

By January 2005, Vodafone in Japan hadlost 59,000 customers to its competitors,who were offering superior handset featuresand services. This prompted Vodafone tore-organise its management structure byrecruiting a new president who had in-depthknowledge of the Japanese market and alsoplanned to offer handsets that were tailor-made for the Japanese customers.


• To discuss the challenges faced byVodafone in Japan.

Industry Wireless Network OperatorsReference No. TRT0046Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Vodafone; Japan; Vodafone KK; 3G mobilehandsets; Japan Telecom; J-Phone;Shamail; W-CDMA; NTT DoCoMo;KDDI; Bill Morrow; Mobile industry; Anti-spam; High Speed Downlink Packet Access(HSDPA); Vodafone Live!

Troubled Times at UnileverAfter the failure of the five-year ‘Path toGrowth’ programme that aimed at 5% to6% annual growth, Unilever’s pre-taxprofit declined from £4.5 billion in 2003to £2.8 billion in 2004. The loss of £255million in the fourth quarter of 2004 wasthe company’s first quarterly loss since2000. This led to the abandonment of its75-year old dual chairmen structure andpaved the way for unification of the bi-national company.


• To discuss the challenges faced byUnilever to retain its market share.

Industry Personal Care ProductsReference No. TRT0045Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Unilever; Troubled times; Personal careproducts; Path to growth strategy;Consumer goods industry; Pricing power;Bureaucracy; Twin board structure;Management team; Performance targets;Procter and Gamble (P&G); Slim Fast;Restructuring; Cost cutting; Supermarketchains.

Pfizer: Dearth of New Productsand Future Challenges

By the turn of the 21st century, despiteinvesting $7 billion a year on R&D, Pfizerhas been witnessing constant decline in itsproductivity. Since 2001, Pfizer’s shareshave declined by 45% to $25 a share.Analysts estimate flat earnings for Pfizerin 2005 and 1.5% annual decline in its salesthrough 2010. Under such circumstances,Pfizer has initiated a comprehensive reviewof its business and the company is expectedto undergo a major restructuring in 2005.

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• To highlight the challenges faced byPfizer

• To discuss the future strategies Pfizerwould adopt to retain its marketposition.

Industry Pharmaceuticals ManufacturersReference No. TRT0044Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Pfizer; Pharmaceutical industry;Innovations; Blockbuster drugs;Acquisitions; Licensing; Regulatorymeasures; Research and development;Lipitor; Food and Drug Administration;Patent expiration; Generic competitors;Ranbaxy Laboratories Limited;Restructuring; Decentralisation.

Unocal’s Embattled Strategy:A Soft Takeover Target?

Until the end of 2004, US-based energycompany, Unocal Corporation, was trailingbehind its peers in share price, productionand net income per barrel. But, on January6th 2005, its share price jumped by 10%when rumours spread about its probableacquisition by China National Offshore OilCorporation (CNOOC), a leading energycompany in China. The company had facedenvironmental problems, was accused ofhuman rights abuses and also failed to meetits production targets.


• To discuss the problems faced by Unocalthat makes it a potential takeover target.

Industry Oil and Gas Refining,Marketing and Distribution


keywords

Unocal; China National Offshore OilCorporation (CNOOC); Takeover; Energycompanies; Oil and natural gas company;Global demand for oil and natural gas;Consolidation in oil industry;Environmental problems; Human rightsviolations; China’s oil imports; Acquisition.

Telstra’s Growing Troubles: IsPrivatization the Solution?

Telstra, the Australian state-ownedtelecommunications and informationservices company, offers fixed and mobile

phone services, and Internet access. A failedinternational venture led to a billion dollarwrite down resulting in losses and debts forthe company. Rising costs and regulatoryissues added to its troubles. In order toreduce its debts and turn the companyaround, the Australian government decidedto privatise it. Besides enabling the studentsto discuss the reasons for Telstra’s troubles,this case also triggers discussion on the prosand cons of privatising Telstra and thepossible alternatives to turnaround thecompany.


• To highlight the Pros and cons ofprivatising Telstra and its impact on thecompany.

Industry TelecommunicationsEquipment


keywords

Telstra Corporation; Privatisation;Diversification; Restructuring; Regionaltelecommunications inquiry; REACH;Pacific Century Cyber Works (PCCW);Voice over internet protocol (VOIP);Wholesale voice; Data and internetconnectivity services; Next GenerationCost Reduction phase III (NGCR III);Australian telecom industry; Managementturmoil; Sensis – directory business; Risingdebts and operating costs; Telstra mobilesatellite.

Nortel Networks: The CanadianTelecommunications Equipment

Giant’s AccountingControversies

The management of Canada-based NortelNetworks Corporation, one of the largesttelecommunications equipment companiesin the world, was forced to restructure dueto the Internet bubble bursting. Howeverwhen it appeared that the company wasable to come out of the downturn in itsbusiness by 2003, disaster struck thecompany again in early 2004, when itannounced that it would be re-stating itsfinancial statements for the years 1998 to2003.


• To discuss the reasons behind re-statements of financials between theyears 1998 to 2003

• To highlight the impact of accountingcontroversies on the Nortel’s futuregrowth prospects.

Industry TelecommunicationsEquipment


keywords

Nortel Networks Corporation; Accountingmis-statements; Financial re-statement;Telecommunications equipment maker;John Roth; Frank Dunn; Controversialbonus plan; Return to profitability; WilliamA ‘Bill’ Owens; Chief of ethics; AuditCommittee of the Board of Directors; BellTelephone Canada; Public and privatetelecom networks; Regulatoryinvestigations; Securities and ExchangeCommission (SEC).

General Motors in Europe: TheChallenging Times

General Motors Europe (GME), theEuropean division of the world’s largestautomobile manufacturer General Motors,started reporting protracted losses anddeclining market share from 1999 due tothe weak European market. New liberalisedcar dealership rules, an unsuccessfulrestructuring plan, a failed alliance withFiat Auto and the growing dominance ofthe Asian carmakers further worsened thesituation. GME’s position slid from secondto fifth in the European market. In 2004,to save the ailing European division fromfurther decline, its new chairman FrederickHenderson, formulated a restructuring planfocusing on reduction of costs, plantcapacities, downsizing and integration offunctional departments. But according tothe industry analysts the task ofrestructuring is likely to be tough and thelayoffs expensive, with weak markets forthe next two years.


• To discuss the efficacy of the restructuringplans for General Motors in Europe.

Industry SugarReference No. TRT0040Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

General Motors Europe; Fiat Auto SPA;European automotive industry; FrederickHenderson; Layoffs and plant closures;European automobile makers; Asianautomakers; European economicrecession; Project Olympia; EU (EuropeanUnion) automobile dealerships regulations;Adam Opel AG; Competitive strategies;Acquisitions and mergers.





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Chuck Prince’s BiggestChallenge: Saving Citi’s

ReputationCitigroup, formed in 1999 by a merger ofTraveler's Group and Citicorp, is the largestfinancial services conglomerate in theworld worth $100 billion in stock equity.Under the leadership of its erstwhile CEO,Sanford I Weill, Citi acquired a reputationfor emphasising on the bottom-line andpursuing aggressive sales practices to thatend. In the process Citi’s reputation tooka beating when a series of charges werefiled against it accusing it of fraudulentpractices. In 200, Weill stepped down asthe CEO, paving the way for Citi old-timerCharles Prince, who took upon himself thetask of delivering profits and growth‘responsibly and honestly’. But twoincidents in mid-2004 showed that the taskwas incomplete.


• To examine the nature and causes ofCiti's regulatory and reputation problemsand the efforts made by Weill and Princeto ensure that Citi’s size and diversitydoes not influence its business practices

• To discuss the dilemmas of businesses todelicately balance the ever-increasingexpectations of Wall Street in terms offinancial performance and ensuring highethical standards

• To discuss how companies with diversebut related divisions can avoid conflictsof interest. The case also providesinformation to assess Prince’s strategiesto curb unacceptable business practicesat Citi.

Industry Financial ServicesReference No. TRT0039Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Citigroup; Traveller’s Group; Sandy Weill;Sanford Weill; Chuck Prince; Citigroup’sculture; Predatory lending; Associates firstcapital; Eliot Spitzer; Commercial bribery;Citigroup’s business practices initiatives;Corporate governance; Citi’s London bonddesk; Citi troubles in Japan.

Merck: A Future Laggard in theGlobal Pharmaceutical

Industry?Merck, voted as America’s most admiredcompany by Fortune for seven consecutiveyears (between 1986 and 1993), was facinga host of problems by 2003. Known for itspioneering research in the pharmaceuticalindustry in the past, Merck had introduced

only six drugs between 2001 and 2003.The company’s sales have also declinedtaking it to number three position in theglobal pharmaceutical industry. Its netincome fell for two consecutive years 2002and 2003 and it had to lay off 4,400employees in 2003, the biggest ever in its117 year history.


• To discuss the reasons behind Merck’sdecline

• To discuss how competitive Merck canbe in future.

Industry Pharmaceutical ManufacturerReference No. TRT0038Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Blockbuster drugs; ‘Me-too’ drugs;Contract research organisations;Prescription benefits management; In-house research; Drug development andclinical trials; Generic manufacturers.

Havas: Troubled Times at FrenchAdvertising Giant

By 2004, the advertising industry worldwidewas in a consolidation phase as was feltthat only the integrated global agencieswould remain profitable, following theeconomic downturn in the new millenium.For Havas, the largest adverstising agencyin France, trouble ensued in 2004 when itlost a bid to acquire Grey Global Inc. (theseventh largest in the world) as its lasteffort to stay independent.


• To discuss the reasons for the weakfinancial health of Havas

• To discuss the strategies adopted by thecompany to maintain its position in theglobal advertising industry.

Industry Advertising & MarketingReference No. TRT0037Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Global advertising and communicationsbusiness; GreyGlobal Inc.; Young &Rubicam; History of Havas; Five yearfinancial summary of Havas;Organisational structure of Havas; Marketshare of global advertising agencies;Geographical distribution of revenues forHavas Group.

Converium: The Swiss Reinsurer’sTroubled Times

Switzerland based Converium Holdings, theninth largest reinsurance company in theworld, found itself in financial difficultydue to the massive losses incurred by itsNorth American subsidiary in the aftermathof the 9/11 terrorist attacks in 2001. Afterrevealing its losses, Converium undertooka reserve strengthening exercise, themagnitude of which shocked thereinsurance industry. In response, bothConverium’s share price and investorratings tumbled jeopardising its existence.


• To discuss the position of Converiumand the various alternatives available todeal with the crisis

• To discuss the future of Converium as aviable entity.

Industry Insurance ServicesReference No. TRT0036Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Converium Holdings; Zurich FinancialServices; Reinsurance; Weak investmentmarket; Spin-off; IPO; AmericanDepository Share; Underwriting; GreenShoe option; Retrocessional stop-losspolicy; Reserves strengthening; Runoff;Rights issue; Renewals; Securit.

Troubled Times at AT&TAT&T, a 125-year-old company thatpioneered telecommunications in the US,suddenly seems to have moved away fromits core business. After its exit from wirelessbusiness in the US in 2004, the introductionof VOIP (Voice Over Internet Protocol)coupled with the deregulation of the UStelecom industry is threatening to reducethe company's revenues from long distancecalls by 20% per year.


• To discuss the troubles faced by AT&Tin a matured industry that is witnessingreduced price margins, increasedcompetition and ever-changingtechnologies.

Industry TelecommunicationsReference No. TRT0035Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

US telecommunication industry; Telecomindustry value chain; Federal

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Communication Chain; Baby Bells; Longdistance carrier; Acquisitions and joinventures of AT&T; Price competition;Over capacity and changing technologies;Financials of AT&T; AT&T Wireless andCingular; Voice Over Internet Protocol(VOIP).

Mitsukoshi: The JapaneseRetailer’s Troubled Times

Mitsukoshi, started in 1673, runs around adozen department stores and about 100smaller stores in Japan and around 20outlets in major European, North Americanand Asian cities. By the 1960s, it hadbecome the best-stocked and prestigiousdepartment store, but since the mid-1970s,Mitsukoshi has been marred by decades ofmanagement problems and a strugglingeconomy.


• To discuss how Mitsukoshi lost its shareto other retailers like supermarkets,superstores and discount stores

• To discuss the strategies adopted byMitsukoshi to respond to Japan’s sluggisheconomy and consumers’ changingbehaviour

• To discuss how the company wasrestructuring to avoid further troubles.

Industry RetailingReference No. TRT0034Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Mitsukoshi; Department store; Retailing;Restructuring; Economy bubble; Consumerprice index; Supermarket; Superstore;Discount store; Japan’s economy; Japaneseretail stores.

Miramax: A Victim ofInterpersonal Conflict?

Started in 1979 by the Weinstein brothersto buy and release foreign and independentfilms, Miramax Film Corp. was acquiredby Disney in 1993. Over the years,Miramax released hits like Pulp Fictionand Shakespeare in Love, but relationsbetween Harvey Weinstein and Disney’sCEO Michael Eisner had beendeteriorating. Miramax’s decision to fundFahrenheit 9/11, a controversialdocumentary, against Eisner’s wishesstrained the relationship further. Thecurrent contract between the Weinsteinsand Disney is to be renegotiated in 2005,but differences over financial performance,control and compensation raiseduncertainty over Miramax’s future.

Eisner’s announcement of his departurefrom Disney fuelled the uncertainty.


• To discuss the changing dynamics of therelationship between Miramax andDisney

• To discuss the impact of interpersonalconflicts between the leaders of theorganisations

• To discuss the possible results of therenegotiations in 2005.

Industry EntertainmentReference No. TRT0033Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Harvey Weinstein; Bob Weinstein;Miramax Film Corp.; Disney; MichaelEisner; Dimension films; Independentcinema; Oscar marketing; Fahrenheit 9/11; Interpersonal conflicts between leaders.

Hewlett-Packard: Losing the HPWay

Hewlett-Packard, started in 1938 by twoelectrical engineers Bill Hewlett and DavePackard, had grown from a small electronicinstruments company into one of the globalleaders in information technology productsand services by the end of the 20th century.The ‘HP Way’, a unique people-focused,consensus-driven work culture initiated bythe founders had been the driving force ofits growth. But the culture had been losingits effectiveness due to the changing profileof the company and the dynamics of globalcompetition. The new CEO (chiefexecutive officer) Carly Fiorina, who tookover the reins of the company in 1999,made radical changes in the ‘HP Way’ torebuild the company, shifting the focusfrom employees to customers. The mergerwith another leading player, Compaq,further diluted the culture.


• To discuss the restructuring strategiesformulated by the new CEO to save thecompany, her reasons for deviation fromthe ‘HP Way’, and the benefits and lossesof the change as debated by the analysts.

Industry Computer Products andServices

Reference No. TRT0032Year of Pub. 2004Teaching Note AvailableStruc.Assig. Available

keywords

Hewlett-Packard (HP); PC manufacturer;The HP Way; Computer products; Strategy

council; Imaging and printing;Management by walking around; HP andCompaq merger; Competitivedifferentiation; Corporate proxy battle;Decentralisation; Restructuringprogramme; Enterprise and storagebusiness; Cost savings; Core competencies.

Microsoft’s Biggest Threat:Microsoft’s Success

By the end of the 1990s, Microsoft seemedto be experiencing a crisis. As a major partof its revenues came from Windows andOffice, Microsoft was busy makingincremental improvements and persuadingcustomers to buy upgrades. As a result, itmissed several opportunities of growth inother areas. On top of it all, came thesecurity threats, antitrust lawsuits andLinux open source software raisingquestions about the growth prospects ofthe company.


• To discuss the major success factors ofMicrosoft in the PC software industry

• To discuss the threats and opportunitiesfor the company in the future

• To discuss how the company’s successand its strong foothold in the operatingsystem and office management software,with its flagship Windows and Officesuite, was considered to be hindering itsgrowth.

• To discuss the growth strategies of thecompany after Steve Ballmer took overas CEO.

Industry SoftwareReference No. TRT0031Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Microsoft’s monopoly; Steve Ballmer;Entry barrier; Windows; Office Suite;Patents; The Internet tidal wave;Microsoft’s cash cows; Cost economies;Linux threat; Theory of increasing returns;Upgrades to Windows; Microsoftinnovations; Microsoft matures; Saturationin PC market.

Euro Disney: FailedAmericanism?

Euro Disney SCA, the subsidiary of WaltDisney Co., the No.2 media conglomeratein the world, opened its first theme parkunder the name Euro Disney in 1992 inFrance. Assuming that the success of itsuniversal appeal in Florida, California andJapan would work again, Disney replicatedthe same formula of fantasy and magic






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kingdoms in Europe. However, in Franceit faced huge resistance with the Frenchlikening it to an imperialism of Americanmultinationals on the country. Consideringit a threat to their culture, the French pressand intellectuals strongly opposed its entryand called it a ‘cultural Chernobyl’. As EuroDisney tried to recover from the troublesby reworking on the details inside the park,revamping food, rides and the pricestructure for the international market,many observers still believed that thecultural inadvertence still remained a threatfor the company’s long-term survival inthe country.


• To discuss how the overlooking ofcultural differences and language barrierswhile pursuing internationalisation,hampers business

• To discuss the importance ofcustomisation in internationalisation ofbusiness, especially in the entertainmentbusiness because of the strong linkbetween culture of the country andentertainment.

Industry Amusement Parks, Arcades andAttractions


keywords

Cultural differences; Globalisation; EuroDisney SCA; Walt Disney in France;American stereotype; McDonalisation inFrance; Cultural Chernobyl; Euro Disneyparks; Disneyland Paris; Language barriers.

AstraZeneca’s Crestor:Challenges in the US Market

London-based drug maker, AstraZeneca, isthe fourth largest in the world and secondlargest in Europe. When the companyannounced its plans to enter thecholesterol-lowering drugs segment (alsocalled statins) with Crestor in the US, itreceived mixed responses from the industryand analysts. Though a lucrative segment,the sensitivity attached to statins’ safetyand usage was of particular concern toAstraZeneca. The drug faced a furthersetback after the European regulatorsdemanded a labelling change and a reputedmedical journal raised doubts aboutCrestor’s safety. This only complicatedCrestor’s strategy as the established players,Pfizer and Merck, took advantage of thenegative sentiment.


• To discuss the challenges faced byAstraZeneca in the process of takingthe drug to market

• To discuss the competitive scenario thatprevailed at the time of Crestor’sintroduction

• To discuss the promotional andmarketing initiatives of the companiesinvolved.

Industry PharmaceuticalsReference No. TRT0029Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

AstraZeneca; Cholesterol-lowering drugs(statins); Blockbuster drugs; Crestor;Lipitor; Baycol controversy; Negativesentiments; Pfizer’s marketing; Merck’sZocor; Bristol-Myers Squibb’s Pravachol;Marketing budgets; FDA approvals (FederalDrug Administration); Merck’s Vytorin;The Lancet; Clinical tests.

Telecom Italia: Troubled Timesin Brazil

The Rome-based telecommunicationscompany, Telecom Italia Group had grownfrom a loss-making state-owned telecomsfirm to Italy’s largest fixed-line operatorand No.1 wireless provider. Although thecompany was the market leader in Italy,the revenues of the company had almostbeen flat. After the privatisation of thecompany in 1997, it experienced problemson different fronts. When MarcoTronchetti Provera was appointed as thechairman in 2001, his efforts put thecompany on the path to profits. Althoughthe company posted profits in 2003, thecompany began to face other problems.The company pinned its hopes for growthon the Brazilian market, which was thelargest market for Telecom Italia outsideItaly. However, its long-drawn battle withBrazil Telecom and Kroll Inc. slowed itsexpansion plans in Brazil.


• To discuss the troubles faced by TelecomItalia after its privatisation

• To discuss the legal battles that thecompany faced in Brazil, the stakes forthe company and the challenges it isfacing in Brazil.

Industry Telecommunications ServicesReference No. TRT0028Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Telecom Italia; Telecom Italia in Brazil;Roberto Colaninno; Marco TronchettiProvera; Telecom Italia Mobile; Olivetti;Pirelli; Edizione Holding; Benetton Group;Brasil Telecom; CVC (Citibank Venture

Capital); opportunity; Opportunity assetmanagement; Kroll; JP Morgan Chase.

Uniqlo Retail Stores in Japan:Turning Challenges into

OpportunitiesFast Retailing Co., owner of Uniqlo apparelstores has revolutionised the Japaneseretailing market through its low pricestrategy. It kept costs low by bypassingJapan’s archaic distribution system andeffectively making use of the low-costmanufacturing facilities in China. Howeverwith competitors replicating its low-coststrategy it was time for Uniqlo to deviseways to remain at the top. The focus beganto shift from ‘high quality low price’ to‘high quality, low price and more variety’.The company also had to deal withresistance from Japanese textile industryassociations against cheap imports fromJapan.


• To discuss the complexities of retailingin Japan, how Uniqlo tasted success bydeviating from the traditional way ofdistribution, and how the companyemployed a low cost strategy to succeedin the price sensitive market, during theeconomic downturn

• To discuss the major challenges that areahead for Uniqlo and how the companyis turning challenges into opportunitiesfor its business.


keywords

Fast Retailing Co.; Uniqlo; Retailing inJapan; Distribution system in Japan;Outsourcing to China; Speciality retailerof private label apparel; Merchandising;Transitional safeguard; Victim of its ownsuccess.

Formula One and Ecclestone:The Powershift?

Since its inception in the 1950s, FormulaOne is called the soap opera of the sportsworld; the exotic locations, huge amountsof money, and famous faces made it uniquecompared to most other world sports. Inthe late 1960s, Bernard CharlesEcclestone, a used-car dealer sensed a greatopportunity to make money by gettinginvolved in the administration of FormulaOne. Gradually, in the early 1980s, he beganacquiring control of the racing series’broadcasting and merchandising rights,which resulted in huge profits for him. In

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due course, Ecclestone emerged as the mostimportant person in Formula One racing,as he owned major stakes in some keysubsidiaries of Formula One. However, thecar manufacturers such as Fiat, Mercedesand BMW, who financed Formula Oneteams, felt that Ecclestone diverted toomuch revenue to his own holdings whileFormula One’s popularity was declining.Consequently the carmakers decided toabandon the Formula One series andplanned to start a new auto-racing series.


• To discuss the financial dominance ofBernard Charles Ecclestone in FormulaOne, the initiatives taken by carmanufacturers to start a rival auto-racingseries and the threat to Ecclestone'sdominance.

Industry International SportsReference No. TRT0026Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Formula One; Bernard Charles Ecclestone;Formula One Constructors Association;Federation Internationale de L’automobile;Max Rufus Mosley; Commission SportiveInternationale; Allsopp; Parker & Marsh;Commercial rights; TV rights; Broadcastingrights; Formula One Management Limited;Concorde agreement; Formula Onepromotions and administration; SLEC(SLavica ECclestone); Grand Prix WorldChampionship.

United Airlines’ GrowingTroubles: Looking for Solutions

United Airlines of the US, the second largestairline company in the world, has beenwitnessing problems since the early 1990s.Its financial situation deteriorated by theturn of the 21st century due to risingoperational costs against decliningrevenues, which eventually led to its filingfor bankruptcy in December 2002.


• To discuss the myriad problems of UnitedAirlines and its efforts to emerge fromits bankruptcy.

Industry AirlinesAvailable at www.ibscdc.orgwww.ecch.com

Reference No. TRT0025304-424-1

Year of Pub. 2004Teaching Note Not Available

Struc.Assig. Not Available

keywords

Domestic airlines in the US; TranspacificRoute Case (1969); Airline Deregulation

Act (1978) of the US; ESOP (EmployeeStock Ownership Plan); Air TransportStabilisation Board (ATSB) of the US; Topten airlines in the world; Hubs of UnitedAirlines; Bankruptcy filing of UnitedAirlines; Restructuring efforts at UnitedAirlines; 401(k) defined contribution plan.

Succession Battles at ViacomViacom is the holding company of CBS(Columbia Broadcasting System) networks,Paramount Pictures, MTV (MusicTelevision) and other media ventures andone of the top three media companies inthe world in terms of its $27 billionturnover and scope of operations. Viacom’spresident and COO (chief operating officer)Mel Karmazin, who built Infinity Radioand CBS, before the CBS mega-merger withViacom, resigned abruptly from his post.The chairman and CEO (chief executiveofficer) of Viacom, 80-year-old mediamogul Sumner Redstone, who controlled70% of the company’s stock took chargeof the company, appointed two executivesto share Karmazin’s responsibility anddesignated them as likely successors whenhe stepped down after three years.


• To discuss the difference in thepersonalities of Redstone and Karmazinand the disparity of their vision for thecompany

• To discuss the dynamics of succession incompanies that have one controllingshareholder, and the effect of topmanagement’s personal vision andattitudes

• To discuss the clash between innovationand cost control, between expanding thecompany and enhancing shareholdervalue and a power struggle between twopowerful and successful self-madepersonalities.

Industry Media and EntertainmentReference No. TRT0024Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Viacom; Sumner Redstone; Mel Karmazin;CBS (Columbia Broadcasting System);Infinity; Leadership style; Topmanagement succession; Creativity;Advertising; Television; Radio.

Stanley Ho’s Gambling Empire:End of a Monopoly?

Stanley Ho exploited a 40-year gamblingmonopoly in Macau to emerge as one ofthe wealthiest and most influential men in

Asia. Ho used his advantage to spread hissphere of activities to every major industryin Macau. In 2001, when Ho’s gamblingmonopoly expired and gambling licenseswere awarded to two more companies, Hofaced competition from world-classadversaries.


• To discuss Ho’s rise to the status of ‘theking of gambling’ and the challenges thatconfront him and his gambling business

• To discuss whether the liberalisation ofMacau’s gambling industry will spell theend for Ho’s empire or enable Ho toearn more money through diversebusinesses.

Industry Gambling Resorts and CasinosReference No. TRT0023Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Stanley Ho; Winnie Ho; Gambling andcasinos in Macao; Competitive growthstrategy; Government granted monopoly;State monopoly or coercive monopoly;Money laundering and triads; Sociedade deTurismo e Diversoes de Macau (STDM);Tourism industry in Macau; Las Vegas Sandsand the Sands Macau casino; Businessethics; Las Vegas of the Orient; Henry FokYing-Tung; Entrepreneurship.

Mitsubishi Product Recall: A Self-made Scandal?

In a growing automobile market, MitsubishiMotor Corporation was losing ground verybadly. A series of scandals involving thecompany’s attempt to hide customercomplaints on products and subsequentproduct recalls had tarnished Mitsubishi'sbrand image. A financial crunch, no newinnovative models and tough competitionwere pushing Mitsubishi towardsbankruptcy.


• To analyse the impact of qualityproblems and the recalls on thecompany's brand image

• To evaluate the company’s options toturnaround its fortune.


keywords

Mitsubishi Motor Corporation; Productrecalls; Toyota; Honda; Automobileindustry; DaimlerChrysler; Competitive





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strategies; Restructuring strategy; YoichiroOkazaki; Turnaround; Corporate socialresponsibility; Growth strategies; Corporateethics; Alliances and partnership.

Regal Entertainment Group:Managing Troubled Times

In the 1990s, the movie chains in the UShad spent billions on the construction ofmegaplexes. While the costs per screenrose fourfold, the audiences in the theatresdid not increase proportionately. In theearly 2000, most of the movie theatreswere uneconomical and were on the vergeof bankruptcy. Taking advantage of thesituation, Denver-based billionaire PhilipAnschutz acquired the three strugglingtheatre chains – United Artists Theatres,Regal Cinemas, and Edwards Cinemas at avery low price. He combined the assets ofthe three companies to form a singleentity – Regal Entertainment Group.


• To discuss the strategies taken up byPhilip Anschutz to refurbish a chain ofbankrupt theatre chains into the largesttheatre chain in the US.

Industry Movie TheatresReference No. TRT0021Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Regal Entertainment Group; United ArtistsTheatres; Regal Cinemas; EdwardsCinemas; Philip Anschutz; Bankrupt moviechains; Movie chains; Oaktree CapitalManagement; Digital projection; RegalCinemedia; Kurt Hall; Michael Campbell;Live concerts; Dividends; Theatre chains.

Alitalia: The Airline in TroubleThe long-drawn crisis at Italy’s nationalairline, Alitalia, started during the mid-1990s, when the low-cost revolutioninvaded Europe. Even as the airline wasfending off threats from the low-costcarriers, the September 11 attacks followedby the SARS outbreak and the war in Iraqwas sounding a death-knell to Alitalia.Twice the Italian government ferried thedeteriorating airline out of bankruptcy –in 1997 and in 2002. But, when thebankruptcy woes came back in 2004, theEuropean Commission opposed thegovernment’s move for a third bailout,raising serious doubts about the airline’ssurvival.


• To discuss how Alitalia, in spite of twobailouts, slipped to the verge of

bankruptcy owing to pressures from low-cost carriers and unions

• To discuss the new industrial plan jointlydeveloped by the government, Alitaliaand the unions.

Industry AirlinesReference No. TRT0020Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Industry-Academia rapport; UCSFfundamental research; Alitalia; Low-costairlines; Ryanair; Alitalia team; AlitaliaExpress; European Commission; Thebailout; Trade union problems; Industrialplan; Restructuring; Giancarlo Cimoli; Jobcuts; Fintecna; Finmeccanica; Businessplan.

The Low-carb Trend: Death Knellfor American Pasta Companies?The popularity of low-carb diets has led toa decrease in the consumption of certainfood categories like pasta and bread. Pastamakers in America saw sales decreasing by7% in the first quarter of 2004. In America,while some companies like Dakota Growersand American Italian Pasta have takensteps towards creating low-carb versionsof their pasta brands, others are waitingfor what they call a ‘fad’ to pass out.


• To highlight the problems faced byAmerican Pasta companies to invest inproduct development.

Industry FoodReference No. TRT0019Year of Pub. 2004Teaching Note AvailableStruc.Assig. Available

keywords

Pasta makers under attack; The lowcarbohydrate craze; Atkins diet; Impact oflow carbohydrate foods on pasta makers;Gearing up for an uncertain future; Outlookfor pasta makers.

Marks and Spencer: TheDownfall and Leadership

VacuumBy the turn of the 21st century, Marks andSpencer, the iconic British retailer, hadbecome vulnerable to hostile takeoverswith its ever-falling share prices and lowprofit margins. Even as recently as 1997-1998, it was in competition with Wal-Martto become the most profitable retail chainin the world. However, it witnessed reversefortune the following year when it

announced a 42% decline in its profits andfrom then on profits kept on downsliding.The inward looking culture of the companyand the absence of a strong leadership wereblamed for its poor performance.


• To discuss the reasons behind the rapiddecline of Marks and Spencer that hasleft it struggling for its existence.

Industry Department StoresReference No. TRT0018Year of Pub. 2004Teaching Note AvailableStruc.Assig. Not Available

keywords

Marks and Spencer; British retailers; Retailindustry in Britain; Sir Richard Greenbury;Philip Green; Leadership in retail industry;Troubled times at Marks and Spencer; St.Michael; Marks and Spencer apparel stores;Marks and Spencer food stores; Floormanagement in retail stores; Boardroombattles in Marks and Spencer; Decisionmaking process in departmental stores;Conservative culture in retailing; Supplychain management in Marks and Spencer.

Krispy Kreme Doughnuts: TheTroubled Times

Krispy Kreme Doughnuts has satisfied USconsumers with its delicious offerings ofdoughnuts for over a half a century. Butwhen its customers started becoming healthconscious, thanks to the low carbohydratecraze, Krispy Kreme was forced to changeits strategies and perform the trick again,this time with less sugar. Krispy Kreme’sfuture is now on a very fine balance; evenone grain of sugar can tip the scale againstit.


• To discuss the troubled times at KrispyKreme and its strategies for a profitablefuture.

Industry Speciality EateriesReference No. TRT0017Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Krispy Kreme; Doughnuts; Lowcarbohydrate diet; Troubled times;Doughnut theatre; Beatrice FoodsCompany; Montana Mills; Share price;Nutrition facts; History of doughnuts;Market for doughnuts in the US;Traditional advertisement of doughnuts;Low carbohydrate craze in the US.

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Home Depot: Nardelli’sChallenge

During the early 2000s, Home Depotchairman and CEO, Robert Nardelli(Nardelli), was under immense pressure asthe company’s growth rate had droppedbelow 20%, compared to its historiccompound annual growth rate of over 25%.To that effect, he had chalked out anelaborate plan to revive growth in late2001, which, if properly executed, wouldmake Home Depot a $100 billion companyby 2005 from $45.7 billion in revenues in2000 (this meant a yearly growth rate ofabout 15%-18%). Following theimplementation of the plan, the companygrew by 17% in 2001, 9% in 2002 and11% in 2003.


• To discuss the problems faced by HomeDepot chairman, Nardelli

• To discuss Nardelli’s plans to boostgrowth and the efficacy of his plans

• To discuss the pros and cons of havingan entrepreneurial style of corporateculture

• To discuss the importance of customerservice in creating a competitive edgein a retail format

• To discuss Nardelli’s plan to focus onservices in addition to selling of hardwareand whether this style is similar to thatof General Electrics (GE’s) and would itsucceed in the retail format.

Industry Home Improvement andHardware Retail

Reference No. TRT0016Year of Pub. 2004Teaching Note Not Available

Struc.Assig. Not Available

keywords

Home Depot - Robert Nardelli’s challenge;Growth strategy; Store formats;Warehousing; Retailing; Customer service;Globalisation; Home improvement retail;Maintenance warehouse; Georgia lighting;Apex Supply; Home Depot learningcentres; Human resources; National Blindsand Wallpaper; Competitive strategy;EXPO Design Centre stores; Landscapesupply stores.

WH Smith Plc.: The British Retailerin Trouble

Established in 1792, WH Smith PLC(WHSmith) is a leading book retailer inGreat Britain. Its main businesses includeretailing, news distribution and publishing.For over two centuries, book lovers havethronged its stores in search of bestsellers,

hard-to-find classics and a wide range ofmagazines. Its stores at airports and trainstations provide reading material for thetravellers. In recent years, the increase incompetition from supermarkets andspecialist retailers has caused a decline inWHSmith’s fortunes.


• To discuss WHSmith’s various problemsand the causes of those problems

• To discuss various strategies for thereversal in WHSmith’s fortunes.

Industry RetailingReference No. TRT0015Year of Pub. 2004Teaching Note AvailableStruc.Assig. Available

keywords

WH Smith PLC.; British retailing industry;News distribution; Publishing; Pensionliabilities; School book funding crisis;Hodder Headline; Kate Swann; Retailingand distribution; Retail business;Turnaround strategy; WH Smith stores;Travel retail business; Net book agreement;Price controls; Newspaper; Magazinewholesaler.

Hyundai in USA: The QualityRides

Hyundai, which forayed into the US carmarket in the mid-1980s, always had animage of a low quality carmaker. From thebeginning, it had failed to live up to thequality expectations of the Americans.Hyundai’s cars were bought only as a lastresort and the company used to feature atthe bottom of most of the quality surveys.The situation changed dramatically afterChung Mong Koo took over as the CEOof Hyundai in 1999.


• To discuss the initiatives taken by ChungMong to build break the image ofHyundai as a low quality car marker.

Industry Auto ManufacturingReference No. TRT0014Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Hyundai Motor Company; Honda; JDPowers initial quality study; Toyota; Sixsigma campaign in Hyundai; Santa Fe;Hyundai’s quality problems in USA;Hyundai’s quality rating improvement;Hyundai’s sales in USA; Hyundai’s qualityinitiatives; Excel sub-compact.

Costco: The Leader's ChallengesSince its inception in 1983, Costco has beenthe leader in the warehouse club category ofretailing. It has been growing steadily underthe leadership of CEO, James Sinegal.According to analysts some of Costco’spolicies like running no frills stores andselling a limited range of productscontributed to its growth. However, itsleadership is being challenged by Sam’s Club,Wal-Mart’s own warehouse club. Costco’saverage annual sales per store are greaterthan that of Sam’s Club. But Sam’s has morestores worldwide. A rejuvenated managementteam under CEO Kevin Turner is cuttingcosts and improving the performance ofSam’s stores. As a division of Wal-Mart, itis expected to get merchandise at cheaperprices than Costco. Already weakened byprice wars, Costco faces a formidablecompetitor in Sam’s Club.


• To discuss the challenges faced by Costcowhen competing against Sam’s Club, whois part of a corporate giant, Wal-Mart.


keywords

Costco; Competition from Sam’s Club;James Sinegal; Warehouse clubs; Sol Price;Jeffrey Brotman; Kirkland Signature;Discount retailing; Small business buyers;Bill Dreher; No frills stores.

LSG Sky Chefs: Managing inTroubled Times

In 2003, LSG Sky Chefs, a wholly-ownedsubsidiary of the German carrier DeutscheLufthansa (AG), was the world leader inthe airline catering industry. LSG derivedits revenues from the US and internationalairlines that have no flight kitchens of theirown. However, after the September 11terrorist attacks, the airline industrywitnessed a severe financial crisis due tothe decrease in the number of passengers.This severely affected LSG Sky Chefs andother airline catering companies as manyairlines cancelled complimentary mealservices as part of their cost cuttingstrategies. Adding to the company’s woes,the Severe Anti-inflammatory Respiratorysyndrome (SARS) disease in Asia and thewars on Afghanistan and Iraq furtherworsened the situation.


• To discuss LSG’s efforts to recover fromthe slump in the business postSeptember 11






54www.ibscdc.org

• To discuss whether the new initiatives‘buy-on-board’ and ‘in-flight cafe’ thatwere considered as a shift from the oldparadigm where the foodservice wasdictated by what airlines could afford,would yield results.

Industry Airline CateringReference No. TRT0012Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

LSG Sky Chefs; Lufthansa; Airline catering;Buy-on-board; In-flight cafe; In-flightmanagement; Chef Solutions; Airportgastronomy; Onex Corporation; DobbsInternational; LSG Holding.

Infrastructure DevelopmentFinance Corporation: The

Controlling BattlesInfrastructure Development FinanceCorporation (IDFC) is the largest privatesector development financial institution(DFI) in India. Post liberalisation of thebanking sector, IDFC was created as avehicle to channel private sector capitalinto commercially viable infrastructureprojects. Since its inception it had manycredits, including that of being a DFI withzero non-performing assets (NPAs).However, there was wide spread criticismthat its lending operations had been tooconservative and thus had failed to fulfillthe infrastructure needs of the country.This raised curtains to the series ofcontrolling battles made by the pro andanti nationalist activists to gain controlover the new-age development bank.


• To discuss the various reasons thatcompel IDFC to be nationalised.

Industry Banking and FinancialServices


keywords

Nationalisation; Private capital;Development financial institutions; Non-performing assets; InfrastructureDevelopment Finance Corporation(IDFC); Long-term finance; Reserve Bankof India; Long-term operational funds;Statutory liquidity ratio; Reverse merger;Privatisation; Indian commercial bankingstructure; New-age development bank;Refinancing; Flexi-bonds.

IDBI: An Ailing GoliathSince the late 1990s, the IndustrialDevelopment Bank of India (IDBI), whichwas set up in the early 1960s by thegovernment of India as a developmentFinance Institution (DFI), has been findingit difficult to sustain its core function ofindustrial financing. Despite being the tenthlargest development bank in the world, itis witnessing eroding profitability, loss oftop rated corporate clients and attritionof its top management.


• To discuss the possible options beingconsidered by IDBI and the governmentof India to revive the financialbehemoth.

Industry Development FinanceInstitution


keywords

Development finance institution; Non-performing assets of the IndustrialDevelopment Bank of India (IDBI);Universal banking; IndustrialDevelopment Bank of India (IDBI);Industrial Credit and InvestmentCorporation of India; Liberalisation of theIndian economy; Banking sector reformsin India; Banking companies; Non-bankingfinancial institutions; Reverse Merger;Commercial banks in India; Unit Trust ofIndia (UTI); IDBI bank; Stock HoldingCorporation of India; Federation of IndianChambers of Commerce and Industry.

Troubled Times at DiageoDiageo was formed in December 1997through the merger of Guinness and GrandMetropolitan, the then leaders in the globalliquor business. By 2003, Diageo hadbecome the world’s largest scotch whiskymanufacturer with its world famous brandslike Smirnoff, Johnie Walker, Guinness andBailey’s. It had operations in 180 countrieswith a global workforce of 62,000employees. However by late 2003, it wasalleged that Diageo was misleadingconsumers by marketing vatted malt underthe Cardhu label, which was supposed to bea single malt whisky.


• To understand the intricacies anddynamics of the scotch whisky industry.

Industry DistillersReference No. TRT0009Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Diageo; Cardhu; Scotch whisky; Speysidedistillery; Malt whisky; Single malt whisky;Pure malt whisky; Guinness; Vatted maltwhisky; Scotch whisky association;William Grant and Sons; Smirnoff;Distilleries in Scotland; Aeneas Coffey;Seagram.

Poland Spring: Managing inTroubled Times

Since 1845, Poland Spring had beenmarketing its bottled water as the originalspring water from ‘the protected andpristine sources of Maine’ in the US. Afterbeing acquired by Nestle Waters NorthAmerica Inc. (NWNA) in 1992, PolandSpring continued to contribute significantlyto NWNA’s revenues in North Americadespite facing controversies regarding theauthenticity of its spring water. Class actionlawsuits were filed against it in 2002 basedon allegations that Poland Spring had beendeceiving its customers by marketing itsbottled water as spring water, when theoriginal spring, from where the companyclaimed to tap its water, had dried up 35years ago.


• To enable readers to understand how thecompany, with its long-standing history,is battling its way through the allegations.

Industry BeveragesReference No. TRT0008Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Nestle; Spring water; Maine; USA; NestleWaters North America Incorporated(NWNA); Beverages; Poland Spring;Mineral water; Borehole; Ricker family;Food and Drug Administration; Majorplayers in the US bottled water industry;Jan Schlichtmann; Natural catchment;Bottlers.

Challenging Times of JapanTobacco

By 2003, Japan Tobacco (JT), the largesttobacco company in Japan and the world’sthird largest, had been facing challengingtimes. Since the late 1990s, due to adecrease in the number of smokers in Japanover rising health concerns, toughenedtobacco regulations and economicrecession in Japan, the company saw a dipin its domestic sales revenue. Its domesticmarket share also declined from 77.1% in1998 to 72.7% in 2003. Another majorconcern for the company was theforthcoming expiry of its license

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agreement with Philip Morris in 2005. Asthe agreement had allowed JT tomanufacture and market 'Marlboro', oneof the most famous brands of PhillipMorris in Japan, the expiry of theagreement was believed to adversely affectJT's domestic sales and revenue. To sustainits market share and fend off foreigncompetitors in its domestic market, JTwent ahead to launch many new cigarettebrands in Japan in 2003 and early 2004.


• To discuss whether the initiatives takenby JT would keep it ahead of itscompetitors or not.

Industry Cigarettes and TobaccoProducts


keywords

Japan Tobacco Incorporated; JapanTobacco and Salt Public Corporation;Japan Tobacco International; Marlboro;Tobacco business law; Japan tobacco law;Global flagship brand; Japan tobacco’sdomestic business; Phillip Morris; RJRNabisco; Mild Seven; Lucia; KatshunhikoHonda; Japan tobacco’s challenges; Japantobacco’s brands.

Yoshinoya: Managing inTroubled Times

By 2003, ‘Yoshinoya D&C Co. Ltd.’,(Yoshinoya), which started as a smallrestaurant in Tokyo in 1899, hadtransformed into a global fast food chain.It was famous for its beef bowl and had1,156 restaurants in the US, Japan,Singapore, Taiwan, Hong Kong and China.It was also planning to expand into Asiaand Australia. However, due to the reportof mad cow disease in the US in December2003, Yoshinoya faced a major crisis, as99% of its beef was imported from the US.Despite the ban, Yoshinoya announcedthat it would continue to use US beef forits products till the stocks lasted.


• To discuss the strategy adopted byYoshinoya to tide over the crisis of madcow disease in the US.

Industry Food RetailingReference No. TRT0006Year of Pub. 2004Teaching Note AvailableStruc.Assig. Available

keywords

Yoshinoya; Mad cow disease; US beef; Beefbowl; Bovine Spongiform Encephalopathy

(BSE); Prions; vCJD; McDonald’s;Australian beef; Japanese beef imports;Major exporters of beef in the world; Footand mouth disease; Sukivaki; Kyotaru sushishops.

Kodak: Fading Moments inDigital Photography

In conventional photography, EastmanKodak Company is synonymous withphoto-films and development. Thecompany, which was a market leader, lostits command over the market due to therise of digital cameras in 1997. While onone hand, Kodak had to deal with newcompetitors like Sony, Hewlett-Packardand Canon who emerged as strongcontenders for leadership in digitalphotographic equipment, on the otherhand, it had to protect its turf in traditionalphotography where Fuji Photo Film Co.,waged a price war. To win back its lostmarket share, Kodak’s the then chairman,George M.C. Fisher, came out with a stringof initiatives to meet the requirements ofdigital photography market.


• To discuss how large-scale changes inthe technology can catch even themarket leaders unawares and result in adownward spiral

• To analyse Kodak’s initiatives to regainits supremacy in the photographyindustry against the backdrop ofdigitisation of photography

• To discuss whether the initiatives ofKodak’s former chairman, George M.C.Fisher, and his successor Daniel A. Carpwould lead the company out of trouble.

Industry Photographic EquipmentManufacturer

Reference No. TRT0005Year of Pub. 2004Teaching Note AvailableStruc.Assig. Available

keywords

Nintendo; Sony; Microsoft; GameCube;GameBoy; GameBoy Advance;PlayStation; XBox; Gaming market;Nintendo’s struggles in gaming market;Video games; Technology; Genre trends ingaming market; Satoru Iwata.

Gaming Market: Nintendo’sStruggles

Nintendo Co. Ltd., a pioneer and one ofthe leading producers of video games inthe world, rose to fame in 1989 after itintroduced the first-ever portable handheldgaming device called GameBoy. Afterproducing a series of video games, the

company’s products attained a cult statusamong pre-teens. However, the companythat heralded the gaming revolution in the1980s and 1990s, had to face severecompetition from Sony and Microsoft. Inspite of being an early entrant, Nintendostruggled to maintain its leadership at theturn of the millennium and hoped tocombat the competition with the releaseof GameCube.


• To discuss how Nintendo can combatthe competition it encountered in thevideo games market, especially fromSony’s PlayStation and Microsoft’sXbox

• To understand how the gaming marketassumed prominence in the 1990s andhow dominance of the establishedplayers like Nintendo came under threatwith the entry of new competitors thatsensed a big opportunity in the growingmarket for video games.

Industry Electronic Gaming ProductsReference No. TRT0004Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Nintendo; Sony; Microsoft; GameCube;GameBoy; GameBoy Advance;PlayStation; XBox; Gaming market;Nintendo’s struggles in gaming market;Video games; Technology; Genre trends ingaming market; Satoru Iwata.

Motorola’s Lost OpportunitiesMotorola that was once a dominant forcein the communication equipment marketseems more like a laggard than a leader.The company blew up some goldenopportunities when it misread consumertastes, alienated telecom companies andfaltered in bringing new products to themarket at the right time. Troubles escalatedfor the company in recent years and it lostits lead in the handset business to Finland-based Nokia. Christopher Galvin, thegrandson of Motorola’s founder Paul V.Galvin was criticised for his hands-offapproach and not taking timely action toput the company back on track. Thecompany’s constant struggle led to theresignation of Chris Galvin in late 2003.Edward J. Zander, former president of SunMicrosystems replaced Chris Galvin amidstinvestors’ expectation to regain thecompany’s past glory.


• To discuss reasons for Motorola's slidefrom leadership position in the handsetmarket and to understand how, in spiteof pioneering technologies in the





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handset market, the company lost somany opportunities of growth

• To discuss the need for companies tounderstand the fast paced changes in themarket and change the course of actionto suit the changing market dynamics.

Industry Wireless Telephone HandsetsReference No. TRT0003Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Motorola’s lost opportunities; Competitionin handset market; Chris Galvin’smanagement style; Nokia; Spinoff ofsemiconductor product segment; ChrisGalvin's resignation; Edward J. Zander.

Bailout of LG Card CompanySince 1999, South Korea had beenencouraging the usage of credit cards inorder to improve tax collections and alsoto achieve a rapid economic growth. LGCard Company took advantage of thefavourable environment and pursuedaggressive marketing and financing policies.However, financial leverage turned out tobe a double-edged sword – good in goodtimes and very bad in bad times. Risingcredit card delinquencies coupled with aslowdown in economic growth did theundoing for credit card companies ingeneral and LG Card company in particular.The company had a shy with bankruptcytwice but was saved due to governmentintervention.


• To discuss whether the Koreangovernment’s action was justified andwhether the LG Card bailout is afinancially prudent decision.

Industry Financial ServicesReference No. TRT0002Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Bailout of LG (Lucky Goldstar) credit cardcompany; Financial leverage; LuckyGoldstar (LG) company; Bankruptcy;Credit card market; Asset backed securities;Financial supervisory service; Net interestspread; Household debt; BC card; Kookmincard; Samsung card; Delinquency; KoreanDevelopment Bank, Woori Bank; Kim JinPyo and Lee Duk Hoon.

Troubled Times at Air CanadaAir Canada, which had remained Canada'sdominant airline since 1930s, found itself

in deep financial trouble with an incomeloss of $828 million in 2002. Events likethe SARS outbreak in late 2002, coupledwith the Iraq war in 2003, aggravated thefinancial difficulties of the cash starvedairline. On April 1st 2003, with anoutstanding debt of $12 billion, Air Canadaannounced that it had filed for protectionunder the ‘Companies’ CreditorsArrangement Act’ (CCAA) to facilitate itsoperational, commercial, financial andcorporate restructuring. In late 2003, whenAir Canada was in desperate need of cashinflow to come out of its bankruptcy, VictorLi, a wealthy businessman from Hong Kongbought a 31% stake in the airline throughhis company, Trinity Time Investments,for $650 million. Although Victor Li’sinvolvement in Air Canada was lookedupon with suspicion by many, Air Canadawelcomed it as a necessary step torejuvenate its beleaguered business.


• To discuss how Air Canada transformedfrom being Canada’s dominant airlineto become a cash-starved and beleaguredbusiness.

Industry AirlinesReference No. TRT0001Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Canadian Airways; Trans-Canada Air(TCA); Canadian Airlines; The NationalResearch Council of Canada (CNR); AirCanada; Onex Corporation; PWA; Freemarket problem; Deregulation of Canada’saviation sector; Companies’ CreditorsArrangement Act (CCAA); Canadian AutoWorkers (CAW); Canadian Union of PublicEmployees (CUPE); GE Capital; Victor Li;Trinity Time Investments.

Cisco in Emerging Markets (B):Looking Beyond China and IndiaA sequel to the case study 'Cisco inEmerging Markets (A): Market EntryStrategies in China and India'. This casestudy delves into Cisco Systems' (Cisco's)market entry strategies in emergingmarkets, other then India and China.

Cisco, the major beneficiary of the Internetrevolution and telecom deregulation inemerging markets in the 1990s, providedmost of the equipment needed to createnetworks. The company stayed ahead ofits time by acquiring companies to enterinto new product markets and even beforethe demand in the developed marketssaturated, it realised the importance of the

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emerging markets. The company, has sincea long time not only been chasingopportunities in emerging markets but alsostarted separate reporting divisions tobetter concentrate on the opportunitiesthere. Cisco has been following a strategythat enables it to expand in these marketsand ensures developing relationships withthe government, businesses and also itscompetitors. Cisco has been witnessingsignificant increase in its revenues fromemerging markets. However, now, thecompany is feeling the pressure of theglobal slowdown because of the USFinancial Crisis (2008) as the demandorders from emerging markets starteddeclining. Adding to its woes, the numberof competitors are also increasing andencroaching upon its turf.


• To examine the potential of emergingmarkets for Cisco's core business

• To elucidate and analyse Cisco's marketentry strategies in emerging markets

• To identify the challenges ahead forCisco.

Industry Networking HardwareEquipments

Reference No. MES0101Year of Pub. 2009Teaching Note AvailableStruc.Assign. Available

Keywords

Cisco System Inc., India, Networkingequipment, Expansion, Low-costengineering resources, Internet market,Market Entry Strategies, Going Global,Emerging Markets, Deregulation oftelecom industry, Small and MediumBusinesses (SMB’s)

Cisco in Emerging Markets (A):Market Entry Strategies in China

and IndiaThe first case in the series on CiscoSystems' (Cisco's) growth strategies inemerging markets, it details Cisco's entrystrategies and its subsequent growth inChina and India. In 2008, the Asia-Pacificregion emerged as an important destinationfor many foreign companies, especially forCisco, a maker of networking equipmentfor the Internet and Telecom, due to therapid growth of China and India.

The company, after initially focusing onthe US and Western European markets,had started tapping the emerging marketsfor further growth avenues. China and Indiawere identified as important markets byCisco. As these countries were witnessingan increase in the number of Internet users,mobile phone subscribers and demand fornetworking equipment in different sectors,



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Cisco started investing heavily. However,Cisco had to change its strategy and adaptto the diverse and local conditions of thesemarkets to succeed.

New rivals that could upstage Cisco byproviding cheaper or more technologicallyadvanced equipment posed as a threat toCisco, which had initially enjoyedunhindered growth. Coupled with this, thecompany also faced the looming threat ofa decline in demand caused by a slowdownin the global economy.


• To examine Cisco's growth throughacquisitions and innovations

• To compare and contrast Cisco's marketentry strategies in India and China

• To debate on the sustainability of Cisco'sposition in the networking equipmentmarket and identify the challengesahead.Media and Entertainment

Industry Networking HardwareEquipments


Keywords

Cisco System Inc., India, Networkingequipment, Expansion, Low-costengineering resources, Internet market,Market Entry Strategies, Going Global,Emerging Markets, Deregulation oftelecom industry, Small and MediumBusinesses (SMB’s)

Turner-Miditech's PlannedLaunch of 'Real' Channel in

India: Will it Succeed?In the backdrop of Indian entertainmentand media industry, the case study delvesinto the intricacies of Indian televisionmarket, particularly the GeneralEntertainment Channels (GECs). Whilemany factors changed the market dynamicsof the industry, increase in the number ofGECs redefined the role of competition.Each channel vied for more viewership,offering a variety of content to includeeverything from fiction and mythologyto reality shows, music and movies.However, inability to change according tochanging consumer psyche made GECs losetheir market dominance to other emerginggenres of specific content – news, lifestylechannels, and 'only music and movie'channels.

Amid this competitive and challengingscenario, on January 21st 2009, RealGlobal Broadcasting (RGB), a 50:50 jointventure between Alva Brothers' Miditechand Turner International announced the

proposed launch of a new Hindi GEC 'Real'in March 2009. The case study debates onvarious issues concerning the launch of thischannel: the timing of Real's launch vis-a -vis the prevailing economic downturnand industry lifecycle. Does nichepositioning work for a GEC? How Realcan win over established players like STARPlus and emerging ones like Colors andNDTV Imagine?


• To examine the nature of business for aGEC and identify its critical successfactors

• To discuss the need for a unique valueproposition and right Segmentation,Targeting and Positioning (STP)strategies to win over entrenched playersin the GEC market

• To examine Real's launch in the GECmarket and its strategies to compete withestablished players as well as new entrants

• To compare and contrast Real'spositioning and marketing strategieswith those of other GECs in the Indianentertainment and media industry

• To debate on the possibilities of successfor Real in the cluttered Hindi GECmarket and to identify the challengesahead.

Industry Media and EntertainmentReference No. MES0099Year of Pub. 2009Teaching Note AvailableStruc.Assign. Available

Keywords

Product Launch, Market Entry Strategy,Entertainment and Media industry in India,Alva Brothers, Sunil Lulla, GeneralEntertainment Channels (GECs), LifestyleChannels – NDTV Good Times, STAR Plus,Zee, Sony, 9x, NDTV Imagine and Colors,Reality shows, Gross Rating Points (GRPs),Distinct positioning, Competitive clutter,Target group – 'neo Indians', Differentiatedcontent, Real Global Broadcasting (RGB)

China Europe InternationalBusiness School (CEIBS): Going

GlobalFollowing the economic boom in the1990s, China demanded its businessmanagers to lead its economic growth.Many Chinese B-schools offering MBA andEMBA programmes have mushroomedduring the years. However, many of themsimply copied western styles and failed toproduce skilled business managers who canunderstand the local market, its needs andproblems. The void was filled when ChinaEurope International Business School(CEIBS), a joint venture between ChineseMinistry of Foreign Trade and Economic

Cooperation and the EuropeanCommission emerged to become Asia's topB-school and world's 11th best B-school ina span of 14 years. The only other B-school that could make it to the FT Global-20 B-schools within a much shorter timeis Hyderabad-based Indian School ofBusiness. What factors contributed toCEIBS reckoning in global best B-schools?What did it do differently that catapultedit to the Ivy league of B-schools? The casestudy also explores, why after establishingitself as a sought after B-school in China,CEIBS is going global, when very few ofthe top B-schools are doing so? Whyamong all other countries, CEIBS set upits first overseas campus in Ghana? Andabove all, whether CEIBS, which establisheditself as a China-centric B-school with aninternational flavour, can replicate itssuccess in a foreign land?


• To understand what are the criticalsuccess factors of a B-school in the lightof challenges that B-schools areconstantly facing

• To understand the factors that helpedCEIBS in becoming one of the top-20global B-schools in a short span

• To explore why CEIBS is going global,when very few of the top B-schools havedone so

• To analyse whether CEIBS would be ableto replicate its success in a foreign land.

Industry EducationReference No. MES0098Year of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

MBA; B-Schools; China; Emerging;Success; Globalisation; Market EntryStrategies Case Studies; Ghana; Managers;Executive; Ranking; Positioning; Branding

McDonald's in ChinaMcDonald’s, the leading US fast foodretailer, entered China in 1990 by openingits first restaurant in Shenzhen. As ofMarch 2008, there were more than 800McDonald’s restaurants across China.Yum! Brands, the main competitor forMcDonald's had already established itspresence in China before McDonald's andwas the leader in the Chinese fast foodmarket. McDonald's had launched severalinitiatives in China to adapt to local needsand tastes in order to overtake Yum Brands.It plans to open more than 1000restaurants in China before the Beijing2008 Olympic Games. It is also focusingon opening more drive-thru restaurants inChina. As one of the top official sponsors



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for the 2008 Beijing XXVIX Olympics,McDonald's is counting on a high-profilepresence in Beijing to build its brands inthe mainland and to win favor among theChinese consumers. McDonald's hopes thatthe Olympics will bring in new customersand will give it a competitive edge overYum! Brands. How the fast food scenarioin China will evolve, remains to be seen.


• To analyse the fast food industry inChina

• To analyse the market entry strategiesof McDonald's in China

• To analyse the competitive advantageof Yum! Brands over McDonald's inChina

• To analyse consolidation strategiesadopted by McDonald's to take on theleaders Yum! brands in China.

Industry Fast Food IndustryReference No. MES0097CYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

McDonald's; Market saturation; Yum!Brands; First drive-thru restaurant; ChinaPetroleum &Chemical Corporation;Beijing Olympics; McDonald's ChampionKids; Chinese Fast Food industry; MarketEntry Strategies Case Studies; FranchisingModel; long-term strategy

Pond's Foray into the PremiumSegment – Will the 'Miracle'

Work?HUL’s Talc brand – Pond's - has moved upon premium imagery. In March 2007, itlaunched its Age Miracle range in thepremium skin care anti-ageing category.Earlier, HUL had tried to enter thepremium skin care segment by extendingits Fair & Lovely (FAL) franchise, withoutmuch success. The Indian skincare markethas been growing at around 16% a year,out of which the anti-ageing productsmarket accounts for close to INR 1 billionin sales. Anti-ageing skin care market isgrowing at a rate of 40% in India. As itnow felt that the market is ripe enough,Pond's entered the premium skin segment.It had to bear large promotional costs tosucceed against the stiff competition fromother players in this segment. WhetherPond's can overcome its 'mass' image andmake a mark in the premium segmentremains to be seen.


• To analyse the market for premium skincare products in India

• To analyse the mass brand image ofPond's

• To analyse Pond's entry into thepremium product range

• To analyse the issues and challenges forPond's to succeed in the premiumsegment.

Industry FMCGReference No. MES0096CYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Hindustan Unilever Limited; HUL; MarketEntry Strategies Case Studies; Ponds; MassMarket; Premium Skincare Segment; PondsAge miracle Range; P&G Olay TotalEffects; masstige; Price Sensitive IndianMarket; Anti-ageing

Mattel in China: ‘The Outsourcingand the Recall’

Mattel Inc, USA is the world's biggest toymaker and is ranked 406th in the Fortune500 in 2007. Some of the renowned brandslike Barbie, Hot Wheels, Matchbox andFisher-Price are from the house of Mattel.Mattel used outsourcing as a major tool inits value chain management with Chinabecoming a favoured destination. However,on August 14th 2007, Mattel recallednearly 4,36,000 toys that weremanufactured in China. This was the secondmajor recall by Mattel of its toys thatcontained impermissible levels of lead.Mattel recalled 20 million toysmanufactured in China twice in a span oftwo weeks. Mattel was criticized for nothaving tight quality control procedures inits supply chain of subcontractors.Although Mattel was known for having inplace a sophisticated inspection and testingsystem at many of its factories in China, itcould not avoid a quality scam. Mattelundertook many measures to undo thedamage and it remained to be seen if itcould regain the trust of its consumers. Thecase details Mattel's recall of its toys andthe impact of the same on its brand image.


• To understand the concept ofoutsourcing and its rationale

• To analyse the importance ofoutsourcing in value chain management

• To analyse the significance of qualitymaintenance and supervision duringoutsourcing.

Industry Toy IndustryReference No. MES0095CYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Mattel; Barbie; Fisher-Price; Outsourcing;Value Chain Management; Toy industry;Crisis management; Market EntryStrategies; Case Studies; Productioncapabilities

Reliance Branded JewelleryRetail Outlets: Will it Succeed?

Reliance Retail, one of the biggest retailindustries in India forayed into brandedjewellery and introduced its brand 'RelianceJewel'. The main objective of the companyis to compete with the established brandedjewellery players, especially Tata'sTanishq. To reach the No.1 position inthe branded jewellery market, thecompany plans to promote jewelleryretailing in a big way by establishing morebranded jewellery retail outlets within 2 to3 years.


• To understand the dynamics of Indianretail jewellery market

• To study the critical success factors ofIndian branded jewellery market

• To discuss the challenges faced byReliance from the competitors,especially Tata's Tanishq

• To analyse the future prospects ofReliance.

Industry Branded JewelryReference No. MES0094BYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Gems and Jewellery in India; BrandedJewellery Market in India; Reliance entryinto Jewellery Business; Reliance forayedinto Jewellery stores; History of India'sleading jewellery brand; Tata Tanishqachievement; Marketing Strategy of TataTanishq; Reliance jewels to competeTanishq; Future plans of Tata Tanishq;Timex entry into jewellery; Reliancejewels plans to reach No.1 position;Market Entry Strategies Case Study;Tanishq as a first mover; Reliance as a latemover

Porsche's Expansion in India: ACatch 22 Situation?

The automobile industry of India was at atipping point with the emergence of thesmall car segment in 2007. The domesticand international car makers eyed Indiawhose economy had reported a consistentgrowth of 9% in the past three years. Themiddle class market attracted many but

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according to future estimates, the strongestgrowth would come from the 'Top of thePyramid'. The super luxury car segmentpresented excellent opportunities formarketers. Porsche AG with global sales of¤7,367.9 million for the year 2006-2007,planned to expand its subsidiary, PorscheCars India Private Limited's (Porsche)presence in the luxury car segment. But inthe wake of the expansion plans would itlose exclusivity, and how would Porschemaintain its exclusivity in the emergingIndian economy remained to be seen. Thecase thus helps to understand how Indianslook at luxury and facilitates the discussionabout how Iconic brands can maintainexclusivity in an emerging economy likeIndia.


• To understand the dynamics of theIndian automobile industry

• To understand how Indians look at luxury

• To analyse how brands become Icons

• To analyse whether a trade off is possiblebetween exclusivity and profitability inthe luxury segment.

Industry Automobile IndustryReference No. MES0093AYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Automobile industry India; Autoconsumerism; Experiential marketing;Emotional branding; India's affluent space;Luxury market India; Super luxury carsIndia; Brand Icons; Exclusivity; PorscheAG; Indian auto consumer; Market EntryStrategies Case Study; Luxury marquee'sIndia

Microfinance in India: The Caseof ICICI Bank

Since its entry into Indian microfinancesector in 2001, ICICI Bank, one of thelargest private sector banks in Indiaachieved remarkable progress in itsportfolio. Instead of the conventionalbranch-banking model, it opted todifferentiate it operational model, to forayinto rural markets to tap lucrativeopportunities in the Indian microfinancesector. Apart from basic microfinanceservices, it planned to offer variousfinancial products like weather insurance,health insurance, remittance services andcommodity derivatives to rural masses. But,it faced stiff competition from commercialand other foreign banks, which weredetermined to boost their presence in theIndian microfinance sector. Apart fromthat, the bank faced major challenges likeinformation irregularity, inability of poor

people to offer collaterals and lack ofdetails of credit history. The case facilitatesdiscussion on whether ICICI Bank will ableto sustain its partnership model as theIndian microfinance sector becomeslucrative.


• To assess the opportunities andchallenges in Indian microfinance sector

• To understand evolution of 'SHGs-BankLinkage' programme in Indianmicrofinance sector

• To evaluate growth and feasibility ICICIBank's "Partnership Model"

• To assess competitive scenario shapingup for ICICI Bank and it impacts.

Industry Financial ServicesReference No. MES0092AYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Microfinance; Microfinance in India;Market Entry Strategies Case Study; ICICIBank; SHGs-Bank Linkage Program;IRDP; NABARD; Regional Rural Banks;Entry Level Strategy; Bank of Madura(BoM); Partnership Model; MicrofinanceInstitution in India; SHARE Microfin Ltd;Grameen Foundation; Centre forMicrofinance Research; Institute forFinancial Management Research

JetBlue Founder DavidNeeleman's LCC in Brazil: TheConundrum of New Venture

DevelopmentEntrepreneur David Neeleman(Neeleman), founder of the US basedsuccessful low-cost carrier (LCC), JetBlueAirways Corp. (JetBlue), after steppingdown as JetBlue's chief executive officerin February 2008, announced the creationof a low-cost carrier in Brazil to tap thenation's expanding appetite for flying.Neeleman planned the carrier to start flyingby early 2009. Neeleman saw plenty ofopportunities in the booming Brazilianeconomy where air travel had beenexpanding annually at a double-digit pace.However, the Brazilian market, havinginfrastructural issues and being dominatedby two airlines; Transportes AereasMeridional (TAM) and GOL Linhas AreasInteligentes S.A. (GOL), that togethercommanded more than 90% of domesticairline market, presented a tough situationfor the entrepreneur. The case, highlightingthe Brazilian airline industry scenario, inview of Neeleman's new LCC, provides ascope to analyse the strategies,opportunities, and challenges of a newventure development for an entrepreneur.


• To understand CorporateEntrepreneurship

• New Venture Development :Opportunities and Challenges for anEntrepreneur

• To analyse Strategies for New VentureDevelopment.

Industry Airline IndustryReference No. MES0091AYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

David Neeleman; JetBlue;Entrepreneurship; Azul; TAM; GOL;Brazilian Airline Industry; Low-cost Carrier(LCC); Entrepreneurial Leadership; BrandBuilding; New Venture Development;Duopoly; Five Forces Analysis; MarketEntry Strategies Case Study; SWOTanalysis

Google’s Orkut in Brazil: What’sSo Social About It?

Social network advertising is forecasted toreach $3.6 billion by 2011. There are anumber of companies cashing in on thistrend. Google, the biggest search enginecompany, launched its social networkingsite Orkut in 2004. The site was notsuccessful in the US. However, becameimmensely popular in Latin America,particularly Brazil, where almost 70% ofInternet users were Orkut users. Soon,Google was plagued by allegations thatOrkut communities of neo-Nazis, anti-socials and racists were being formed. Itwas being used to spread child pornography,paedophilia and for Internet trafficking.Google was asked to hand over user data toBrazilian authorities for identifying theperpetrators. Google refused to do so. As aresult, criminal charges were filed againstGoogle’s head of Brazilian operations anda fine was levied on Google for each day ofnon-compliance. Google eventuallycooperated with the authorities. Its woeshowever did not end here. When Googleintroduced advertising on Orkut, there werereports that ads were appearing alongsideillegal content. With no way to monetiseOrkut and the never-ending controversies,will Google be tempted to cut its losses andshut down Orkut in Brazil? This case studytalks about the growth of social networkingsites, particularly on Orkut’s operations inBrazil. The issue of whether userinformation should be shared with the legalauthorities forms the core of the discussion.Should Internet companies hand over userdata when demanded? Does theircompliance mean breach of user trust? Ifthey refuse, termination of services islikely, then how do companies achieve the




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goal of wealth maximisation? How canInternet companies best combine theinterests of their users, advertisers andauthorities, while ensuring that revenueskeep flowing in?


The case is structured to let the studentsanalyse and understand:

• The characteristics of social networkingsites and the reasons behind theirpopularity

• Importance of scrutinising a countrybefore offering a product there

• Social networking sites’ dilemma -whether to share user information withthe legal authorities or refuse and riskgetting shut down?



Keywords

Google; Baidu.com; China’s Search EngineMarket; Business Model; Globalisation andLocalisation; CAGE Frame Work; AllianceStrategies; Acquisitions and Partnerships;Chinese Google; Government BusinessEnvironment; Internet Censorship; OnlineAdvertising; Market Entry Strategies CaseStudy; International Business; LegalEnvironment and Regulations

Google vs Baidu.com (B):Google’s Country Experiences

At the heart of Google’s worldwide successis its PageRank technology and its onlineadvertising model. After success in its homecountry, the US, Google has expanded tointernational markets including countriesin Europe and the Asia-Pacific. Has Googlebeen successful in all the countries itentered? What has been Google’sexperience in these countries? What arethe key insights? This case, the second inthe series, Google vs Baidu.com, looks atGoogle’s meteoric rise worldwide and thereasons for its global success. The focus ison Google’s operations in France, Germanyand Japan. Google’s foray into thesecountries though successful is also markedby the threat of impending competitionfrom a new adversary - the governmentsponsored national search engines. Thecase details the reasons for and theinitiatives of the respective governmentsto challenge Google’s stronghold andmarket dominance. What are theramifications of the governmentinitiatives succeeding for Google and whatdoes it need to do to ensure its continueddominance? The case questions whether

there is a serious challenge or is it only apassing phase in the search giant’s growth.



• A search engine’s business model ingeneral and that of Google in particular

• Should a business model be adapted, whenentering a foreign market?

• How should Google respond tocompetition from the governments inFrance, Germany and Japan?



Keywords

Google; Baidu.com; China’s Search EngineMarket; Business Model; Globalisation andLocalisation; CAGE Frame Work; AllianceStrategies; Acquisitions and Partnerships;Chinese Google; Government BusinessEnvironment; Internet Censorship; OnlineAdvertising; Market Entry Strategies CaseStudy; International Business; LegalEnvironment and Regulations

McDonald’s in RussiaMcDonald’s - a name easily digested bycommons and celebrities alike, in thedeveloped nations - has been trying hardto serve developing nations. It would be amistake if one assumes it is out to betterthe living standards in the second world.Rather, McDonald’s stalled growth indeveloped nations led its foray intoemerging markets. The case studychronicles McDonald’s entry into Russiaand how it set up its outlets, leaping overRussian brand of communism. After its firstRussian outlet opened in 1990, McDonald’sleveraged the Russian’s love for Americanfood and gradually strengthened itspresence. But its growth was restrained -due to Russian bureaucracy as well as abehavioural shift from bigger-in-size tobetter-in-customer-reach. How shouldMcDonald’s deal with its dilemmas inRussia? What are its growth options there?Should it be wary of store expansions orspread across Russia?


• To examine the characteristic featuresof emerging markets, particularly Russia

• To analyse the political, economic andsocial conditions in Russia and identifyareas in which the nation differs fromother developed countries

• To understand and compare McDonald’sbusiness model, both globally and inRussia

• To examine the food consumption trendsand consumer behaviour in the Russianfast food segment

• To analyse the reasons behindMcDonald’s cautious growth in Russiaand suggest ways to gain sizeable marketshare there.

Industry Fast Food RetailingReference No. MES0088Year of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Fast food; Russian economy; Collapse ofthe Soviet Union; Economic reforms;Liberalisation; privatisation &globalisation; Ruble inconvertibility;George Cohon; Khamzat Khasbulatov;Russian financial crisis and its impact;Russian bureaucracy and communism;Market Entry Strategies Case Study;McDonald’s flawed expansion strategy;McComplex; Competition from local andglobal rivals; Growth plans for McDonald’sin Russia; McDonaldl’s at Pushkin Square

Wal-Mart in India: Can it be theMessiah of Indian Farmers?

ndia was among the top producers ofvegetables and fruits, but 30%-40% of theproduce was wasted due to poor storageand handling facilities. The potential ofagri-business in India attracted manydomestic and multinational players. Wal-Mart, the American retailer with net salesof $344,992 million in 2007 planned tostart its operations in India and formed ajoint venture with Bharti Enterprises(Bharti). Bharti was one of the leadingbusiness groups in India with interests intelecom, agribusiness, insurance, and retailwith market capitalisation of INR 1519billion. Wal-Mart planned to invest in backend technology and replicate its globalsupply chain model in India. But analystswere skeptical about Wal-Mart’s entry intoIndia, as the company was known for itsaggressive attitude towards its suppliers.Anti MNC activists were concerned aboutthe social disruptions that the companywould cause in the retail sector. The casedetails the controversies and challengesthat Wal-Mart might face and facilitatesdiscussion on whether Wal-Mart canestablish itself in India.


• To understand the dynamics ofagriculture produce and food retailing inemerging countries like India

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• To discuss the possible factors of agrariancrisis in India

• To analyse the food supply chain in India

• To analyse the logistics and supply chainmanagement strengths of Wal-Mart

• To analyse opportunities and challengesfor a multi national retailer in anemerging economy like India.

Industry RetailingReference No. MES0087AYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

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Agrarian Crisis; Supply Chain; FoodRetailing India; AgribusinessOpportunities; Agriculture produce;Agriculture Marketing; ConsumerBehaviour; Agriculture Credit; Wal-Mart;Wal-Mart in China; RFID; Rural SupplyChain in India; Indo-US Initiative; MarketEntry Strategies Case Study; FoodProcessing in India; Consumer Spending inIndia

Nokia: The Brand and its Future inIndia

The cellular phone market in India hasbeen recording significant growth since thelate 1990s and is the fastest growing in theworld. Nokia, the world leader in cellularphone communications entered India in1995. Since then the Nokia brand has beensteadily growing and has gained wideacceptance in the Indian market. India isthe third largest market for Nokia, in termsof its net sales as of 2006. Nokia is one ofthe most trusted brands in India and leadsother cellular phone brands in terms ofmarket share, advertising and customerservice. The innovative technologies, user-friendly features and affordable pricescontributed to Nokia’s success in India. Thecase facilitates discussion on Nokia’s brandbuilding strategies in India. It also allowsfor discussion on the future of the Nokiabrand and the cellular market in India.


• To analyse the role of brand image insustaining market leadership

• To analyse the competitive scenario inthe cellular market in India

• To discuss the strategies of Nokia in India

• To analyse the localisation strategy ofNokia as a major tool for gaining marketleadership

• To analyse the future of the Nokia brandin India.

Industry Mobile PhoneReference No. MES0086C

Year of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Nokia; Branding; Cellular Phone Market;Marketing Strategy; Market Leadership;Localisation Strategy; Advertising Strategy;Brand Image; Market Entry Strategies CaseStudy; Competition

Harley-Davidson: Market EntryStrategies in India

Global automobile companies have linedup Indian roads taking advantage of theeconomic prosperity of the country.Harley-Davidson, the most iconic USmotorcycle manufacturer is a prospectiveentrant into the Indian market. Earlier,Harley-Davidson bikes were restrainedfrom entering India due to stringentemission norms and high import duties.The emission norms were relaxed as partof a trade agreement between the US andIndia on April 13th 2007. However, thelarge bikes are haunted by high importtariffs in India that double the original priceof the bikes. Further Harley-Davidson bikesalso face competition from its Japanesecounterparts who already have businessesin India. Although the Indian governmentoffers different market entry options forforeign firms, Harley-Davidson hasannounced that it will enter India onlythrough the import route. How and whenHarley-Davidson will enter India is to beseen.


• To understand the motorcycle marketin India

• To discuss Harley-Davidson’s brandidentity and its scope in the Indianmarket

• To understand different market entrystrategies allowed in India

• To discuss the market entry strategiesto be adopted by Harley-Davidson inIndia.

Industry MotorcycleReference No. MES0085CYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Harley-Davidson; Motorcycle Industry inIndia; Cult Brand; Market Entry StrategiesCase Study; Consumer Behaviour; BusinessStrategy; Developing Economy; BusinessEnvironment; Localisation Strategies

Barclays’ Entry into India:Strategies and Prospects

Barclays Bank PLC (Barclays) had beenproviding financial services to the globalcommunity for 300 years. It was operatingin India since the late 1970s as aninvestment banker. In 2006-2007, Barclayschose to enter the retail banking sector inIndia.The Indian banking sector was on ahigh due to the increased purchasing powerof Indians coupled with higher interestrates. Many foreign bankers were willingto expand in India as the economy wasgrowing at a rate of over 8% per annum.India offered ample opportunities incorporate banking, small-and-medium sizeenterprises, retail banking, consumerfinance and micro finance. A large numberof foreign banks focused only on corporatebanking whereas analysts opined that thereal opportunity lay in retail banking andconsumer finance. In this context it wouldbe relevant to analyse Barclays’ entrystrategies into India as also the growthprospects of foreign banks in developingcountries.


• Banking operations by a global bank

• Regulatory framework for foreign banksin India

• Operational strategies used by Barclaysbank to expand in India

• To study the challenges and prospectsof foreign banks in India.

Industry BankingReference No. MES0084CYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Global Bank; Barclays Bank; Foreign banksin India; Entry strategies; Market EntryStrategies Case Study; M&A in Bankingsector; Future challenges

Walt Disney Co. (B): Disney inIndia

Although Disney entered India muchbefore any other player in 1993, it failedto capitalise on its First Mover Advantage.This was mainly because of its failedpartnership with K. K. Modi Group. Afterits partnership ended, it reentered India in2004 with television business. Within 3years, the company was successful inestablishing its presence in the country. Itlater on introduced its other divisions,excluding theme parks. However, with thepresence of strong competition, it has notbeen able to derive what it expected.However, Disney plans to become theleading entertainment brand in India





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through localising its products. To whatextent would it be successful? - is thequestion that can be answered only in thecoming years.


• To analyse the factors forcingglobalisation and the need to globalise,especially for entertainment companies

• To know the importance of emergingmarkets and the need for MNCs torethink their marketing models for thesemarkets

• To discuss the initial problems Disneyfaced after re-entering India and thestrategies it adopted to tackle this

• To discuss the challenges for Disney inthe coming years.


Keywords

Walt Disney; Mickey and Mini Mouse;Donald Duck and Goofy; Animation;Theme Parks and Resorts; GrowthStrategies; Michael D. Eisner; Robert A.Iger; Emerging Markets; Globalisation andLocalisation; Disneyland; Toon Disney vsPOGO; Market Entry Strategies CaseStudy; Animax

Walt Disney Co. (A): TheEmerging Markets Strategy

With little opportunities left in its domesticmedia and entertainment market, WaltDisney began looking outside for newgrowth avenues. After Robert Iger (Iger)became CEO in 2005, Disney’s global focusincreased. The plan is now to derive halfof its profits from overseas markets. Forthis, Iger has been emphasising mostly onemerging markets particularly China andIndia. There are equal opportunities andchallenges in emerging markets for theglobal players. Understanding andovercoming the challenges would helpplayers to extract most from theopportunities. Even Disney, which initiallystumbled, is now making the most fromthe opportunities that exist in the emergingmarkets like China, Russia and India byadopting various strategies.


The case study helps to analyse andunderstand:

• Importance of emerging markets

• Opportunities and challenges for theplayers in emerging markets

• Disney’s market entry strategies

• Lessons from Disney’s success andfailures.


Keywords

Walt Disney; Mickey and Mini Mouse;Market Entry Strategies Case Study;Donald Duck and Goofy; Animation;Theme Parks and Resorts; GrowthStrategies; Michael D. Eisner; Robert A.Iger; Emerging Markets; Globalisation andLocalisation; Disneyland

Vespa’s Entry Strategies for the USMarket

The Piaggio Group, one of the world's toptwo-wheeler manufacturers introduced itsbrand, Vespa, in the US market during 1950.But Vespa had to be pulled out of the marketbecause of stringent emission standards. In2000, Piaggio re-launched Vespa in the USmarket which was better and fuel-efficient.As scooters were gaining popularity aroundthis time in the US and sales rising, Piaggiofelt that it was not an opportunity to bemissed. It went ahead implementing severalstrategies to strengthen its presence in themarket but faced a big challenge incombating rising safety concerns regardingscooters.


• To study the market for scooters in theUS

• To examine the reasons of Vespa behindreentering the US market

• To study the market entry strategies ofVespa

• To elucidate the safety concernsregarding scooters and understandVespa's measures to respond to them

• To study the branding challenges that amultinational company faces on enteringdiverse cultures.

Industry Automobile-Two WheelerReference No. MES0081BYear of Pub. 2007Teaching Note AvailableStruc.Assign. Available

Keywords

Vespa; Piaggio; US market; Two Wheeler;Vespanomics; Aprilia; Moto Guzzi;Lifestyle Brand; Scooter; Market EntryStrategies Case Study; ET2; ET4; Safety;Utility Vehicle; Economy

L’Oreal in India: MarketingMiddle Class Consumers with

Premium Prices?India, in recent years, has emerged as oneof the hot destinations for global cosmeticsplayers. Overseas players like Unilever,Procter & Gamble and L'Oreal dominatethe industry through targeting the growingmiddle class. Players like HindustanUnilever Limited (Unilever's Indiansubsidiary), Procter & Gamble target theircustomers with mid prices; while L'OrealIndiais targeting them with premium prices.This strategy helped L'Oreal to breakeventhe sales and then record a huge increase inits profits. But considering the increasingcompetition and price sensitiveness amongthe Indians, it has to be seen how long canL'Oreal continue this success?


• To analyse the opportunities andchallenges for cosmetics players inemerging markets

• To understand and analyse the Indiancosmetics industry and the changingconsumer behaviour

• To discuss the business model adoptedby the players, particularly themultinationals

• To analyse the reasons for L’Oreal’sinitial strategy failure in India

• To discuss L’Oreal’s revised strategy oftargeting middle-class with premiumprice and its success.

Industry CosmeticsReference No. MES0080Year of Pub. 2007Teaching Note AvailableStruc.Assign. Available

Keywords

Emerging markets; Indian cosmeticsindustry; Cosmetics players; Customersegmentation; Indian middle-classconsumers; Consumer behaviour; MarketEntry Strategies Case Study; MNCs businessmodel; L'Oreal India and strategies; Movingaway from brand image; Mass vs premiumproduct strategy in emerging markets

Standard Chartered Bank inSouth Korea

The case discusses the mega-merger of oneof the leading banks in the world - Londonbased Standard Chartered Bank, with SouthKorea's seventh largest bank - Korea FirstBank. The merger resulted in the creationof one of the largest banks in South Korea-SC Jeil Eun Haeng (SC First Bank). Afterproviding a brief note on the structure andrecent trends in the South Korean bankingindustry, this case also provides a detailed

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commentary on the two banks. The casediscusses the rationale behind the mergerand the benefits which the two companieswere expecting from it. The case then goeson to explain the merger deal in detail. Itfinally discusses the possible challengeswhich the merger could face in the nearfuture.


• To discuss the Korean banking industry

• To understand the core competence ofboth the banks

• To analyse the possible synergies of themerger.

Industry BankingReference No. MES0079KYear of Pub. 2005Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Standard Chartered; Korea First Bank; SCJeil Eun Haeng (SC First Bank); Acquisitionwas largest foreign direct investment; AsianFinancial Crisis (1997); Market EntryStrategies Case Study; The Korean BankingIndustry; Standard Chartered Bank in SouthKorea; Forex Management; Mergersynergies; Commercial banking; Prioritybanking; Retail banking; Mervyn Davis

Dell's Entry into Gaming PC: TheDecision Dilemma

Dell, the world's leader in PC industry,reaped the benefits of its unique businessmodel of customization and direct sales.The company registered double digitgrowth in its two-and-half decades ofexistence. During 2004-05, the companyfailed to maintain its expected growth andthe sales declined. The company facedchallenges due to the saturation of the USconsumer PC market, increasingcompetition and declining price of PCs.The company identified a niche market ofgaming PC with prospective growthpotential. There were very few and smallplayers in the market of gaming PC. Thecompany was in a decision dilemmawhether to enter into the gaming PCmarket or not. If it enters, then what wouldbe its branding and marketing strategy?The case discusses in details the about Dell'sinception, its growth and challenges. It alsogives a detailed outlook about the US PCmarket. Then the case provides descriptionof the gaming PC market with respect toplayers in the market and their positioning,consumer behaviour, recent trends andfuture prospect. The students can discusswhether Dell will enter into the gamingPC market or not and if the companyenters, what will be its value proposition,branding strategy and marketing strategies?


• To discuss about the history and growthof Dell

• To discuss about Dell's unique businessmodel

• To discuss the major players in thegaming PC market

• To assess how Dell targeted the nichesegment of the gaming PC industry

• To argue whether Dell would succeed inthis new initiative.

Industry Personal ComputersReference No. MES0078KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Dell; Personal computer (PC); ConsumerPC segment; Gaming PC; US PC market;Repositioning; Market Entry StrategiesCase Study; Direct sales model;Customisation; Product strategy; Pricingstrategy; Promotional strategy; Branding;Value proposition; Cannibalisation; Targetmarket

IKEA: Re-entering The Land ofRising Sun

IKEA, the Swedish home furnishingcompany entered into Japanese homefurnishing industry during the decade of 80s.However, during that time, the companyfailed to mark its presence in Japanese homefurnishing industry. Analysts commentedthat, since the company failed to adapt thelocalization strategy it failed. In 2006, thecompany again plans to make an entry inJapan. Though, this time the company plansto stress upon the localization strategy. Thecompany modified its furniture and otherhome furnishing items to suite the taste andpreference of the Japanese audience. Thiscase discusses in details about the marketingstrategy adopted by IKEA to make asuccessful entry in Japan. It also covers the4Ps of marketing and segmentation-targeting-positioning strategy adopted bythe company.


• To understand the importance oflocalisation strategy in the context ofIKEA's failure venture in Japan

• To discuss the market dynamics offurniture Industry in Japan during 2006

• To analyse IKEA's STP strategy.

Industry Home FurnishingReference No. MES0077KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

IKEA; Japanese home furnishing industry;Market Entry Strategies Case Study;Product; Price; Place; Promotion;Distribution; Positioning; Targeting;Segmentation; Otsuka Kagu; Localisationstrategy; The IKEA concept; Homefurnishing retailing

United Parcel Service:Expanding in China

United Parcel Service (UPS), an Americanbased express delivery service provider, wasone of the worlds largest. It planned toexpand aggressively into China particularlyafter the latter's entry into the World TradeOrganization (WTO) in the year 2001.UPS increased its flights to and fromChinese cities, built more infrastructure andestablished stronger brand presence in thecountry. It also opened UPS Expresscenters in several Chinese cities tostrengthen its package drop-off and pickupservices. UPS had started its operations inChina in 1988. However, FedEx hadentered China in 1984 and DHL hadcommenced business in China even earlierin 1980. Both these companies had asignificant lead over UPS. Among globalintegrators, UPS had a market share ofonly 11% in China as against DHL's 51%and FedEx's 28%. Nonetheless, UPSdecided to invest heavily in China, in viewof the potential that it offered. The Chineseeconomy was growing at a rapid pace andthere was also phenomenal increase in thecountry's international trade, therebyproviding huge business opportunity for alogistics company. In spite of stiffcompetition from FedEx and DHL, UPSaimed to strengthen its hold on the logisticsmarket there. At the same time, UPS waslosing market share in its home base in theUS. Can the business growth in China makeup for the decline faced in the homemarket?


• To discuss about the courier industry inChina

• To understand the competition in theChinese courier and parcel industry

• To discuss about the entry and expansionof UPS in China.

Industry Courier/Parcel IndustryReference No. MES0076BYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Courier industry; Competition; UnitedParcel Service; Courier Service; ExpressParcel Service; Geographic Expansion;Expansion into China; Market Entry




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Strategies Case Study; Fedex in China; DHLin China; Courier Business in China;Multinational courier companies in China;UPS in China; UPS Express Stores

Success of IBM in IndiaIn 1991, the Indian government startedrelaxing the foreign investment norms andthis encouraged foreign IT companies likeElectronic Data System (EDS), Hewlett-Packard (HP) and International BusinessMachines Corporation (IBM) to enterIndia. Among these, IBM, a multinationalcomputer technology corporation hadshown keen interest in establishing itselfin the Indian market. Till 2001, IBMwitnessed slow growth and startedexperiencing gain since 2002. In 2005, tocompete with the Indian software giantslike Wipro, Infosys and Tata ConsultancyServices, IBM adopted the Global DeliveryModel and with other foreign companieslike Accenture, Intel and AMD planningto invest heavily in India, IBM decided toinvest $6 million to start several initiativesthat would serve to fulfill its vision ofbecoming a globally integrated company.With the Indian software giants dominatingthe IT sector and with the entry of otherforeign software companies, analysts wereskeptical about IBM's success. Would IBMsucceed in its endeavors?


• To understand the impact of relaxing ofFDI norms by the Indian Government

• IBM's experience in the Indian markets

• Adoption of Global Delivery model byIBM

• IBM's strategies to succeed in the Indianmarkets.

Industry IT IndustryReference No. MES0075BYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

IBM; Global Delivery Services; GlobalDelivery Model; e-governance;competition; Market Entry Strategies CaseStudy; On Demand Model; growth strategy;Intel; TSIL; entry of MNCs

Smart Fortwo's Entry into the US.:Smart Move?

In 2005, DaimlerChrysler was the world'sfifth largest automotive group.DaimlerChrysler was a unique andprominent company in the globalautomotive industry. It had a productportfolio that ranged from small cars tosports cars and luxury sedans, and from

versatile vans and heavy duty trucks tocomfortable coaches. DaimlerChrysler AGwas formed in 1998 by the merger of'Daimler-Benz AG' (Germany) and 'ChryslerCorporation' (USA). Thus,DaimlerChrysler had a tradition of morethan one hundred years, featuring thepioneering achievements in automotiveengineering by both of its predecessorcompanies.

On 28th June, 2006, DaimlerChryslerannounced that its unique and urban-friendly, fuel-efficient, subcompact 'Smartbrand (Smart)' would enter the U.S. market.The company redesigned its original model'Smart Fortwo' and informed that the newgeneration Fortwo would be available inthe U.S. in three models from 2007.Americans, in general, did not like smallcars as they were doubtful about the safetyfeatures of such cars. However, since 2003-2004, due to a continuous hike in USgasoline prices, there was a declining saleof the large SUVs and pickups. Hence, thecompany felt that it was the right time tobring its Smart cars to the United States.But, the US market was already floodedwith fuel-efficient subcompact cars likeToyota Scion and BMW Mini Cooper.Some of them also had their US dealernetwork in place. Further, three Japanesesubcompact cars were expected to enterthe US market by 2006-2007. They werelow-priced compared to the Smart brandcars. Therefore industry observers wereskeptical about Smart's success in the US.


• To understand the global automotiveindustry

• To understand the US automotiveindustry

• To understand the challenges in the USautomotive industry

• To analyse whether 'Smart' will be asuccess in US.

Industry Automotive IndustryReference No. MES0074BYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Daimler Chrysler; Smart Fortwo; MercedesCar Group; Market Entry Strategies CaseStudy; Automotive Industry; Swatch;Subcompact car; NAIAS; US car market;Daimler-Benz AG; Chrysler Corporation;Fuel-efficeint car; Small car; Eco-friendlycar; Two-seater car; Gasoline price in USA

Cairn Energy – What WouldCairn's Strategy in India be?

Cairn Energy was an independent oilexploration and Production Company in

UK. Led by its maverick Chief ExecutiveSir Bill Gammell, the company sold itsholdings in the North Sea and focused onbuying and developing oil acreages in SouthAsia. Cairn shot into the limelight whenafter a decade of drilling and exploring ithit big in Rajasthan, India in 2006. Whatwould Cairn's strategy in India be?


• To understand oil exploration industryin UK

• To understand oil exploration industryin South Asia

• Cairn Energy's oil exploration strategiesin India.

Industry Oil and gasReference No. MES0073BYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Cairn Energy; Petroleum sector; Energysector; Energy in Bangladesh; Oil inRajasthan; Sir Bill Gammell; NELP; UKbased Independent Oil Company; Sangureserves; Rajasthan oil reserves; MarketEntry Strategies Case Study; Edinburgh;Scotland based-i&P Company

BenQ Corporation: Entering theBranded Cell Phone Market in

ChinaThe case focuses on BenQ Corporation, aUS$3.2 billion Taiwan-based company. By2001 BenQ had become the largest contractmanufacturer of mobile handsets. However,in 2002 the company decided to move awayfrom contract manufacturing and launchedbranded products. As part of this strategy,in 2004 the company launched brandedmobile handsets in China, which was thefastest growing and the most competitivehandset market globally. The case givesin-depth information on thecharacteristics and nature of the Chinesehandset market, the various competitorsand their strategies. The casesimultaneously highlights the market entrystrategies used by BenQ.


• The steps taken by BenQ to move frombeing a contract manufacturer to a brandmanufacturer

• A comparison of BenQ’s strategy withSamsung’s

• The nature and characteristics of theChinese handset market

• The segmentation, targeting andpositioning strategy used by the variousmobile handset vendors

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• The strategy employed by BenQ to enterthe mobile handsets market in China.

Industry Mobile HandsetReference No. MES0072BYear of Pub. 2005Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

BenQ Corporation; Branded cell phonemarket in China; KY Lee; Contractmanufacturer; Branded players; Chinesehandset market; Market entry strategies;Market Entry Strategies Case Study; AcerPeripherals; Motorola; Nokia; NingboBird; Samsung; Global system for mobilecommunication (GSM) segment; Codedivision multiple access (CDMA) segment;Original equipment manufacturer; originaldesign manufacturer

Vodafone's Branding Dilemma inIndia

In mid February 2007, Vodafone Group Plc.(Vodafone), one of the leading globaltelecommunication companies acquired67% stake in Hutchison Essar, one of theleading telecom operator in India, whichprovided its services under the brand name,Hutch. Speculation mounted whetherVodafone would retain the existing brandor re-brand it. Many analysts opined thatif Vodafone replaces the Hutch brand withits own, the move could backfire, because'Hutch' was well established and mostadmired brand in the Indian telecom sector.

The case details about corporaterebranding dilemma faced by Vodafone inIndian telecom market.


• To understand corporate rebrandingstrategies

• To study the brand transition strategiesadopted by Vodafone globally

• To understand brand positioning ofHutch in India

• To study the challenges involved inrebranding in merger or an acquisition.

Industry TelecommunicationReference No. MES0071AYear of Pub. 2007Teaching Note AvailableStruc.Assign. Available

Keywords

Vodafone; India; Hutch; Market EntryStrategies Case Study; Brand Transition;Brand Promotional Strategies; BrandDilution; Indian Telecom Sector; BrandDifferentiation; Vodafone's GlobalBranding Strategy; Brand Attributes;Vodafone in Czech Republic; Vodafone inTurkey; Vodafone in Italy; Vodafone in

Japan; Dual Branding Strategy; Brandingdilemma

Vodafone's Strategic Move inIndian Telecom Market

Vodafone was one of the world's leadingmobile telecommunication companies withinterest in voice and data communications.Seeing an opportunity in India, wheretelecom sector was rated as the fastest-growing wireless market in the world,Vodafone acquired a 10% stake in BhartiTeleventures Ltd (BTVL) in 2005. WhenHutchison Whampoa Ltd (HWL), a HongKong based Telecommunication companydeclared its intentions to sell its stake inHutchison Essar, a leading telecom playeronly Vodafone had publicly shown itsinterest in acquiring the stake. In February2007, it acquired 67% stake in HutchisonEssar Ltd. According to analysts, theacquisition of HWL's stake would giveVodafone a considerable access to rapidlygrowing Indian telecom market. But,Vodafone faced many challenges inacquiring stake in HWL. The majorconcern was the valuation aspect ofHutchison Essar Ltd. In the recent past,Vodafone had spent nearly $300 billion inacquisitions which had led to decline in theshareholder's confidence. It also faced stiffcompetition to acquire stake in HutchisonEssar Ltd. from other bidders like RelianceCommunications, Hinduja Group and EssarGroup. Vodafone approached Essar toremain its local partner on which Essar'sdecision was pending.

The case details about the shifting strategyof Vodafone to target emerging marketslike India. It also details about theopportunities and challenges in the Indiantelecom market.


• To understand the Indian telecom market

• To understand the market entry strategyadopted by Vodafone

• To study the merger and acquisition asgrowth strategy

• To understand the competitive scenarioin Indian telecom market.

Industry TelecommunicationReference No. MES0070AYear of Pub. 2007Teaching Note AvailableStruc.Assign. Available

Keywords

Vodafone; Vodafone in India; InorganicGrowth strategy; Competitive Scenario;New Product Segment; Market EntryStrategies Case Study; Government Policy;Hutchison Whampoa Ltd.; HutchisonEssar Ltd.; Valuation Aspects; IndianTelecom Sector; GSM Players; Telecom

Regulatory Authority of India (TRAI);Bharti Televentures Ltd. (BTVL); CheungKong (Holdings) Limited; 2G and 3GServices

Starbucks Coffee Company: TheIndian Dilemma

In 2006, the US based Starbucks CoffeeCompany, with over 11,000 stores in 36countries was the No. 1 specialty coffeecompany in the world. Every week over40 million customers visited Starbuckscoffeehouses. After phenomenal success inthe US, and revolutionizing specialty coffeeculture, Starbucks undertook internationalexpansion and popularized its specialtycoffee worldwide. In the 1990s, Starbucksconcentrated its expansion efforts mainlyin Asia. The initial pages of the casedelineate the origin and growth of Starbucksas a company and a super brand and thestrategies adopted by it.

In 2002, Starbucks announced that it wasplanning to enter India. Later it postponedits entry as it had entered China recentlyand was facing problems in Japan. In 2003,there was news again that Starbucks wasreviving its plans to enter India. In 2004,Starbucks officials visited India butaccording to sources they returnedunconvinced as they could not crystallizeon an appropriate partner for its entry. Inmid 2006, Starbucks announced that theywere all set to offer the 'Starbucksexperience' to Indians in the next 18months. The case explores India as thenext destination for Starbucks and providesan industry analysis of the Indian coffeeindustry. It attempts at initiating a debatethat whether Starbucks should enter Indiaor not. If it should, then its entry strategy,differentiation strategy and long termstrategy for India may be identified. Thechallenges that India may present forStarbucks and how should it cope up with,can also be discussed. The case is targetedat management students and can be takenup in their Strategic and GeneralManagement curriculum.


• To analyse Starbucks as a company

• To analyse the Indian coffee industryand India as a potential destination forStarbucks

• To discuss the entry strategies forStarbucks in India

• To discuss the opportunities andchallenges that Starbucks could face inIndia.

Industry Specialty Retailing/BeveragesReference No. MES0069AYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available




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Keywords

Starbucks; Howard Schultz; Seattle; Japan;China; India; specialty coffee instantcoffee; coffee culture; third place concept;differentiation; spoke and hub strategy;Market Entry Strategies Case Study; word-of-mouth promotions; emerging economy;retail environment; Foreign DirectInvestment; industry analysis; beveragemarket; tea; market entry strategy;differentiation strategy; second moveradvantage; entry dilemma; joint venture;competitive scenario; market structure;market development; Starbucksexperience; lifestyle marketing

Bharti Wal-Mart Tie-up:Opportunities and Challenges

The Indian retail scene was abuzz withactivity. With A T Kearney listing India asthe topmost in market attractiveness,many foreign retailers were looking to enterIndia. Wal-Mart, the world renownedretailer had tied-up with Bharti EnterprisesLtd. a leading telecom company in India.While many synergies were expected outof the deal, the Indian retail scene had itsshare of challenges.

The case outlines the areas of opportunitiesand challenges that the Indian retail sceneoffered. It provides scope for the studentto understand the dynamics of the Indianretail scene and facilitates debate on thefuture of Indian retail. It also allows fordiscussion on whether the Bharti Wal-Martcombine would win the race in the IndianRetail market.


• To discuss the challenges faced by foreignretailers in emerging markets like India

• To discuss the issues and opportunitiesin the Indian Retail Scene.

Industry RetailingReference No. MES0068CYear of Pub. 2007Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Bharti; Wal-Mart; Indian Retail; RetailIndustry; Competition in Indian RetailSector; Market Entry Strategies CaseStudy; Tie-up; Store formats; FDI in Retail;Real Estate; Supply Chain and Sourcing;Consumer Behavior; Synergies; Marketattractiveness; mom-and-pop shops;Buying behavior

McDonald’s in Asia:Opportunities and Challenges

McDonald’s was concentrating on itsbusiness in Asia mainly- Japan, China and

India. These areas were touted to beprospective areas for McDonald'sexpansion in the decade ahead. McDonald'shad tried to localise its strategies in theseareas with reasonable success. However, toachieve increased returns from these areas,it had to overcome challenges likecompetition, menu innovations etc. In thisbackground, it was to be seen if McDonald'scould increase its share in the Asian marketand what it should do to achieve this.

The case brings out the strategies adoptedby McDonald's in its markets in China,Japan and India and the challenges in eachof these markets. The case allows thestudent to appreciate the localisationstrategies adopted by McDonald's and alsoto discuss the future of McDonald's in Asia.The case would be suitable to teach modulesin International marketing with specificreference to localisation strategies.


• To understand the globalisation of aninternational fast food brand

• Localisation issues in Asian markets.

Industry Fast Food IndustryReference No. MES0067CYear of Pub. 2007Teaching Note AvailableStruc.Assign. Not Available

Keywords

McDonald’s; Strategy; Fast food outlets;Market Entry Strategies Case Study;Branding; Redesigning; Menu change;Drive thrust

Tesco's Entry Strategies in USThe London based retailer giant, Tescomade its entry into US, by opening "Fresh& Easy" format convenience stores atArizona. Anticipating this move, WarrenBuffet, the second richest person in theworld, bought shares of the company in2006 and its market value went up.Berkshire Hathaway invested $1419.59million in Tesco's expansion projects. Ithad the ability to roll out multiple formatsand adapt to the local tastes of consumers.It was able to maintain its leadership inUK, by pushing Wal-Mart ASDA to thirdposition, in terms of market share. Tescohad undertaken meticulous research aboutUS retail market and preemptivelyacquired real estate for its retail operationsat important locations. For independentand niche retailers, the growth of Tescowould be a great challenge and they wouldeventually need innovation and customersegmentation strategies to survive. But forTesco, US was new turf where there weremore than 50 convenience store chains.7-eleven and Famima,, which have alreadyestablished convenience store chains inUS.


• The case study will familiarize thestudents with

• US retail industry and the concept ofconvenience stores

• Tescoâ•™s customer retention andmarket entry strategies

• Factors which lead to the success of aretailer.

Industry Consumer Electronics IndustryReference No. MES0066CYear of Pub. 2007Teaching Note AvailableStruc.Assign. Not Available

Keywords

Tesco; Wal-Mart; 7-Eleven; Food Retail;Market Entry Strategies Case Study;Convenience Store; Territorial radio; TerryLeahy; Famima; Fresh & Easy; ASDA;Tesco Metro; Warren Buffet; Tesco'Steering Wheel; Tesco Express; tesco.com

Retail market in Vietnam-Challenges and Opportunities

Vietnam was considered to be a potentialretail market and one of the leading marketsin Asia. According to A.T. Kearney's GlobalRetail Development Index (GRDI) 2006,the Vietnamese retail market was found tobe attractive for the foreign players toinvest in the country. The Vietnamese retailmarket already had some foreign retailersin their market. Despite the attractiveness,the market posed a number of challengesto the foreign retailers entering theVietnamese market. The regulations onforeign direct investment (FDI) in Vietnamacted as barriers for the foreign retailers toenter the Vietnamese market. Thedomestic retailers were also threatened bythe entry of the global players. TheVietnamese government had taken anumber of initiatives to help the domesticplayers.

In this background it was to be seen howthe Vietnamese retailer market wouldevolve. The case study gives scope fordiscussion on the challenges facing theforeign retailers and their chances forsucceeding in the market. The case studyalso gives emphasis on the challenges facingthe domestic retailers and the strategiesadopted by them to compete with the globalretailers.


• Retail market environment in Vietnam

• Challenges facing the foreign retailersin entering the new market Incubator-incubatee relationship

• Competitive measures taken by thedomestic retailers along with the

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Vietnamese government to succeed inthe market.

Industry RetailReference No. MES0065CYear of Pub. 2007Teaching Note AvailableStruc.Assign. Not Available

Keywords

Retail Market; Supermarkets; Vietnam;Consumer Behaviour; FDI in VietnameseRetail; Market attractiveness; Competitionin Vietnamese retail industry; Retailers inVietnam; Retailers Strategies; Market EntryStrategies Case Study; Strategies in retailmarket; Foreign retailers in Vietnam;Challenges in Vietnamese retail industry;Entry strategies of Foreign retailers;Growth prospects in Vietnam

Yahoo! China: ChallengesYahoo! China released a statement thattheir President Xie Wen, (Xie) had resigned,only 42 days after he joined the company.This development was just the latest in aseries of problems that Yahoo! had facedin China. In the past, Yahoo! China hadencountered many hurdles- from regulatorytroubles to problems in localization.Yahoo! China was struggling in the Chinesesearch market. Xie wanted to try a Web2.0 strategy of addressing the huge demandfor user-generated content but Jerry Yang,cofounder Yahoo!, wanted to stick to thecompany’s portal model and wasunimpressed by Xie’s strategy. This led toa divide in top management and ended inXie's resignation.

Yahoo! China had tried managementchanges, outsourcing, and local tie-ups toestablish itself in China, but none of themyielded any results.Yahoo! was one of thefirst U.S. Internet companies to move intoChina. In 1999, it entered China bylaunching a Chinese website, cn.yahoo.comand tied up with a local company througha strategic partnership with BeijingFounder Electronics Co Ltd, a leadinginformation products maker in China, totap the emerging on-line advertisementmarket. Yahoo! China faced immensecompetition from local portals likeSina.com, Sohu.com and Netease.com, whohad already won the loyalty of ChineseNet users. By 2003, these three playerswere thriving while Yahoo! China wasstruggling to come up. Yahoo! China couldnot make an impact on the Chineseinternet market as it did not localize itsstrategies. So the company changeddirections and purchased a popular localsearch company, 3721.com, for $120million. This move did not yield much resultand so Yahoo! China tried the new strategyof outsourcing that promised to solve itsproblem. It decided to team up with a localplayer who could understand China better.

Yahoo! China sold its China operations toAlibaba, the leading B2B Chinese portal.Although Alibaba had achieved significantsuccess in the Chinese e-commerce market,the deal did not yield significant increasein traffic. The main issue the case tries tohighlight is how Yahoo! China will faceincreasing competition in the searchengine market in China.


• To introduce the students to the Internetindustry in China

• To highlight the various stages of Yahooand challenges faced in China

• To throw light on the various players inChinese Internet market.

Industry Internet and Online BusinessReference No. MES0064CYear of Pub. 2007Teaching Note AvailableStruc.Assign. Not Available

Keywords

Yahoo!; Yahoo! China; Internet in China;Market Entry Strategies Case Study;Alibaba Baidu.com; Competition;Marketing; Strategy; Emerging markets;Jack Ma; Jerry Yang; Google; search marketin China

Harley-Davidson’s Foray inChina

In the first half of 2006, Harley-Davidson(H-D), an icon of the motorcycle industry,decided to set up its first outlet in China,one of the largest manufacturers in theworld. With this decision, H-D aimed toestablish its presence in the country, amidstvarious tariff and non-tariff barriers. Theadvent of the dealership was also set todiscourage illicit smuggling of bikes andprotect the brand identity of the productsfrom piracy.

The case, while providing an overview ofthe Chinese motorcycle industry and itsvarious roadblocks, discusses the entrystrategies of H-D.


• To understand the competitive forcesin the Chinese motorcycle industry

• To discuss the various tariff, non-tariffand other government restrictions thatreduced foreign competition in China

• To discuss the entry strategy of Harley-Davidson in the Chinese market

• To critically analyse the effects ofpiracy and counterfeit goods on Harley-Davidson’s brand image and its strategyto counter it

• To discuss the impact of WTO on theChinese motorcycle industry.

Industry Motorcyle ManufacturingReference No. MES0063KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Harley Davidson; Chinese motorcyclemarket; Honda; Yamaha.

Dr. Reddy’s Laboratories, theLeading Indian Pharmaceutical

Company, in Europe: TheInorganic Growth Strategy

In February 2006, the Indianpharmaceutical company, Dr. Reddy'sLaboratories Limited (DRL), announcedthat it would acquire the Germany's fourthlargest generic pharmaceutical, betapharm.The deal was settled at US$570 million.After the US, Europe was the second largestpharma market with Germany as its largestconstituent. Moreover, worldwide it wasthe third-largest generic market. Themarket trends showed that generics had abetter market potential over their brandedcounterparts. In addition, the Europeangeneric market proved to be more lucrativethan the US market because it had less ofgovernmental rules directed towards drugapprovals and marketing.

The case analyses the synergies and possiblechallenges of such an acquisition anddiscusses the inorganic growth strategy ofDRL that was aimed at penetration intothe German and subsequently the Europeangeneric market. It also provides a briefoverview of the two companies.


• To discuss DRL’s inorganic strategies bywhich it aimed to penetrate into theworld's fourth largest generic market,Germany and subsequently the Europeangeneric market

• To discuss the possible synergies andchallenges of the acquisition.

Industry PharmaceuticalReference No. MES0062KYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

Dr Reddy’s Lab; Drug market in Europe;Generics; Patent policy; R&D.

Virgin: Entering the Indian SkiesThe low-cost airline was a phenomenonworld wide and was increasing steadily. In





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the mature aviation market of the US andEurope, the low cost airlines business modelwas successful. But in the country like India,where aviation market was still at thenascent stage, the success of the low-costbusiness model was a debatable issue. Afterthe liberalisation in 1991, the Indian skyexperienced the entry of a few private aswell as foreign players in the low-costaviation business. Virgin Blue, which was apart of Richard Branson’s Virgin group, wassuccessful in the low-cost aviation businessin the skies of Australia, New Zealand andSouth Africa and entered the Indian sky.The case discussed in detail the low-costbusiness model of the aviation industry itstarget markets and challenges. Finally, thecase highlighted the challenges faced byVirgin Blue in the fiercely competitiveIndian aviation industry. Besides, itexamined whether the company couldreplicate its successful business model inIndia. The case included a detailed note onthe Indian civil aviation industry, coveringthe profile of the major players, low-costbusiness model followed by other low-costairlines in the Indian aviation industry. Italso elaborated on India’s civil aviationpolicy and the statutory requirements tobe fulfilled by a company, to enter andoperate in the industry.


• To give a glimpse about the Indianaviation industry

• To discuss in details how Low CostAirlines (LCA) act as a keydifferentiator in Indian aviation industry

• To discuss the segmentation-targeting-positioning aspect in aviation industry.

• The 4Ps of marketing and its applicationin Indian aviation industry

• The market entry strategy adopted by anew player to enter into a competitivemarket, problems associated with entryinto new market and how to overcomethe problems.

Industry AirlinesReference No. MES0061KYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

Virgin; Indian aviation Industry; IndianAirlines; Jet Airlines; Sahara Airlines.

China: Disney’s New DestinationIn 2000, the Walt Disney Corporationopened its Disneyland in Hong Kong,which, within a few years, became the mostpopular tourist destination. Earlier, thecompany had opened a Disneyland in Paris(France), but it was not successful. Theanalysts attributed this failure to the cultural

miss match. Thus, while setting up theHong Kong Disneyland, the company gaveproper emphasis on localisation strategy.The case gives a proper description aboutthe entry strategy adopted by Disney andoffers a scope for discussing its success andfailure. The case will also help the studentsto discuss about the success and failure ofthe growth strategy adopted by thecompany and how it has planned toleverage its localisation strategy.


• To discuss the market entry strategy inentertainment industry

• To discuss the concept of localisationstrategy

• To discuss the key success factors intothe success and failure in entering into anew market

• To discuss the success and failure ofgrowth strategy

• To discuss how companies plan toleverage its localisation strategy and canintegrate it with entry strategy andgrowth strategy.

Industry EntertainmentReference No. MES0060KYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

China, Disney; Entertainment park.

Yellow Tail: The AussieChampion in the US Wine MarketYellow Tail, an Australian wine brandbecame a top seller in a short span of fiveyears in the competitive US wine market.With an innovative label and competitivepricing, Yellow Tail created a niche of itsown in the market. The case provides abackground note on the US and theAustralian wine markets and the strategythat Yellow Tail adopted to reach its presentstatus in the wine market.


To understand:

• Strategy of success of a new brand in anestablished market

• Niche marketing.

Industry Food and BeveragesReference No. MES0059CYear of Pub. 2005Teaching Note AvailableStruc.Assign. Not Available

Keywords

Yellow Tail; US; Australia; Wine; JohnCasella; John Soutter; Carramar Estate;

New South Wales; Chardonnay; Merlot;Cabernet Sauvignon; W.J.Deutsch&Sons;Distribution.

Viacom in ChinaViacom Inc., currently split as Viacom Inc.,and CBS Corp. forayed into China in 1995.By 2005, the company brought to theChinese audience, its world-classentertainment programmes meant for kidsand youth. However, the company, likeother foreign companies, had to face thegovernment regulations that kept changingfrom time to time. The case chroniclesthe company background, the diversechannels it used to make progress and thechallenges it had to face in China in thewake of fresh regulations and culturalhurdles.


To understand:

• The media business in China

• Challenges faced by Viacom in China dueto regulations and cultural hurdles.

Industry MediaAvailable at www.ibscdc.orgwww.ecch.comReference No. MES0058C 306-212-1Year of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Viacom; MTV; Nickelodeon; Paramount;Sumner Redstone; China; SARFT; SMG;Regulations.

Hollywood’s Foray into ChinaChina was seen as a potential moviemarket. Yet the Government’s restrictionson the release of foreign films hamperedtheir prospects in the Chinese moviemarket. However, the growing popularityof Chinese films in the internationalmarket, China’s liberalised foreigninvestment policies post its WTO entryand low production costs attracted theattention of Hollywood studios. The casedetails the background of the Chinese filmindustry and the impact made by theGovernment’s foreign investment policieson the Chinese film exhibition industryand the movie market. It also covers thestrategies adopted by the Hollywood studiosto capitalise on the Chinese movie market.


To understand

• Movie Market business in China

• Foreign investment policies of ChineseGovt regarding film industry in China

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• Strategies adopted by Hollywood studiosto capitalise the Chinese market.

Industry EntertainmentReference No. MES0057CYear of Pub. 2005Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

China, Foreign films; Cultural Revolution;United States; Hollywood; WTO; WarnerBros; Wanda Group; Sony and China FilmGroup.

Achieving Success in China:Starbucks’ Strategies and

ChallengesStarbucks, the world’s leading retailer,roaster and brand of specialty coffee openedits first store in China in 1999. Despiteinitial scepticism about the entry of a coffeebrand in a traditional tea drinking nation,Starbucks was well-received in China andhad established its presence there. It wasrapidly expanding and announced that itlooked to China as the largest marketoutside the US. Although Starbucks wasconfident of its growth there, it faced somechallenges. Following its entry, a numberof imitators which tried to replicate all thefeatures of the Starbucks stores had opened.A number of international players alsooperated and planned to expand theirpresence in China. Revenues from itsChinese operations were not significantsince Starbucks operated mainly throughpartnerships and licensees. Marketinganalysts wondered if the initial success ofStarbucks in China could be sustained.

The case facilitates discussion on (1) Entrystrategies adopted by an established brandwhile entering an emerging market (2)Localisation strategies of Starbucks (3)Sustaining and increasing profits from itsChinese operations.


• Entry strategies adopted by anestablished brand while entering anemerging market

• Localisation strategies of Starbucks

• Sustaining and increasing profits fromits Chinese operations.

Industry Coffee ChainReference No. MES0056CYear of Pub. 2006Teaching Note AvailableStruc.Assign. Not Available

Keywords

Starbucks; China; Speciality Coffee Retailer;Entry Strategy; Localisation Strategy;Partnerships; Store Location; StoreOperations; Store Design; Consumer

Behaviour; Trademark; IntellectualProperty Rights; Chinese CoffeeConsumption; Tea industry in China;Expansion strategy.

Geely: The Chinese Car’sAmerican Venture

Geely Automobile Holding Co. Ltd.(Geely), the Chinese automaker decided toenter the US auto market by 2008. Inpursuit of this ambition and to make a markinternationally, Geely participated in twoof the five major international auto shows,namely, the Frankfurt International MotorShow in September 2005, followed by theNorth American International Auto Showin January 2006 at Detroit.

Automobile industry analysts felt that themajor challenge for Geely would be toconform to the quality standards of theAmerican market. Geely said that it wasaware of the high-quality, safety andemission standards of the US market andreported that it was taking the necessarysteps in this regard. Geely would also haveto compete with the established players inthe US Auto industry. The US Auto industrywas itself under threat from the foreignautomakers, as the Japanese and Koreanbrands had eaten into the market share ofFord and GM. Under these circumstances,it was to be seen if Geely with relativelylow-priced cars would succeed in its USventure.

The case allows for discussion on thechallenges faced by the Chinese car to enterthe US market and the strategies adoptedby them to compete with the establishedplayers there. It also offers scope fordiscussion on issues faced by the Chinesecar relating to the low-quality perceptionthat the American consumers had towardsChinese cars.


To discuss:

• Entry strategies of a new foreign playerin a mature market

• Strategies for successful market launch

• Strategies to counter negative consumerperceptions

• Counter measures to be adopted byexisting established players in themarket.

Industry Auto IndustryReference No. MES0055CYear of Pub. 2006Teaching Note AvailableStruc.Assign. Not Available

Keywords

Geely; China; Automobile Industry; LiShufu; Chinese cars; US Auto Market;

Economy cars; International Auto shows;Sedans; US venture; Global Strategies;Global entry; business expansion; Koreanautomakers; US Testing standards.

Reliance Infocomm’s TeethingTroubles – A

This is the first of a two-case series.Considering the boom in the mobiletelephony market in India, RelianceIndustries, India’s biggest business housemakes a foray into the Telecom andInformation Technology sector. Reliancelaunches its services as Reliance Infocommand offers a bouquet of services like mobileand fixed line telephony, broadband,national and international long distanceservices, data services and a wide range ofvalue-added services. Reliance Infocomm’slaunch is widely awaited by the public as itis expected to bring about a revolution inthe mobile telephony market. The servicelooks promising with its innovativetechnology, features and low prices. AsReliance Infocomm is launched across thecountry, top officials are confident of itssuccess. The market reality though issomething different. The company facesteething troubles and market response isdisappointing. Infocomm managementwonders if they can turn thedisappointment in to a success.


• To discuss the launch of Reliance groupin the telecom sector and the initialproblems that it faced

• To briefly discuss the Indian cellulartelephony market scenario and existingplayers.

Industry TelecomReference No. MES0054PYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Reliance Infocomm; Telecom sector;Infocomm Rollout; Teething Troubles;Dhirubhai Ambani Entrepreneurs; CDMA;Cellular Telephony.

Chinese Flavoured KFCKentucky Fried Chicken Corp. (KFC) is adivision of the Kentucky (Louisville) basedglobal fast food franchiser YUM! BrandsInc. In 2005, KFC was America’s No.1 fastfood chicken chain and world’s mostpopular chicken restaurant chain. KFC hadexpanded globally but in China the companyhad been a pioneer in the foreign fast foodsector. KFC adapted itself to China andbecame China’s largest quick-servicerestaurant brand. Rivals like McDonald’s



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were following KFC’s strategies. The casediscusses KFC’s strategies in China.


• To discuss the fast food market scenarioin China

• To discuss KFC’s localisation strategyof tailoring its menu, décor andappearance in China and its success.

Industry Food IndustryReference No. MES0053PYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

KFC; Yum! Brands Inc.; KFC in China;Localisation Strategy; Fast Food in China;KFC’s Strategies.

Geely: The Tyro in the US marketIn 2005, the US automobile market wasdominated by the ‘Big Seven’. Thesemajor players in were ramping upproduction, and were developinginnovative models to claim their marketpositions. Toyota, one among the BigSeven, experienced a steady increase in itsmarket share. Witnessing the success ofToyota, a few Chinese automakers hadplans of entering the US automobilemarket. Geely, a private Chineseautomaker had exported its cars to almost30 countries in Asia, the Middle East andEastern Europe. To expand further, Geelyexpected to market its cars in the US by2008. As Geely was a greenhorn in the USautomobile market, analysts were scepticalwhether Geely would sustain and achievesuccess in the US automobile market.


• To understand about the US automobilemarket

• To discuss about the problems which anew entrant into the US automobilemarket will face.

Industry AutomotiveReference No. MES0052BYear of Pub. 2006Teaching Note AvailableStruc.Assig. Not Available

keywords

Geely; US automobile market; Big Three;Big Seven; Chery; virtual gorilla strategy;CK-7151; John Harmer; US SafetyStandards; confined test market.

eBay’s Asian AdventuresThe online internet market in Asia startedtaking shape by the turn of 21st century as

the internet population started risingacross various countries of Asia. Onlineauction giant eBay, after its successfulbusiness execution in US and Europeancountries eyed opportunities in Asianmarkets. This case talks about how eBayinitiated its business in Asian countries.First, it started its operations in Japanesemarket where it failed and quickly shiftedfocus on other upcoming Asian markets,mainly on China. Before entering intoChina, it tested various Asian online auctionmarkets and zeroed in on specific strategyto tap China’s online auction market. Thecompany also expected to expand its reachin many other Asian countries.


• eBay’s growth and expansion strategies

• Emerging trend of online auction marketin Asia

• The online auction market scenarios invarious Asian countries

• Facts and Fallacies of Asian onlineauction market

• Future of eBay in Asia.

Industry Online auction IndustryReference No. MES0051BYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

eBay’s Asian Adventures; Online Auctionmarket; Internet Population ofAsia;Internet usage in Asia; eBay Businessmodel; Pierre Omidyar; Margaret MegWhitman; Stephanie Tilenius Bo Shao;Each Net; Internet Auction Co. Ltd (IAC);Neocom Technology; Yahoo!; Google;Taobao.com; lpai.com.

METRO Cash and Carry –Exploring the Chinese Markets

In 2004, China, with a population of 1.3billion was one of the world’s largest retailmarkets. With the liberalisation of theChinese economy in 1992 and itssubsequent entry into WTO in 2001, theChinese retail market saw the entry ofmany global retailers. Metro Cash and Carrywas the third-largest retailer in Europe andthe fourth largest in the world, with annualsales of •56.4 billion (US$68.9 billion) in2004 with around 2,300 outlets in 28countries. It entered the Chinese marketin 1996 and faced competition from otherglobal retailers like Wal-Mart andCarrefour. This case discusses in detail theChinese retail and wholesale market afterliberalisation. Further the case discusses theoperations, distribution and merchandizingstrategies of Metro Cash and Carry in Chinaalong with its growth strategies.


• The state of the Chinese wholesale andretail setup before and after liberalisation

• Impact of WTO on the local and globalretailers operating in China

• Metro’s entry strategy in foreignmarkets

• Metro Cash and Carry’s operations inChina

• Metro’s expansion strategies in China

• Challenges faced by Metro Cash andCarry with the entry of other globalplayers in China.

Industry WholesaleReference No. MES0050BYear of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Metro Cash and Carry; German Distributorin India; Foreign Investment PromotionBoard; Foreign Direct Investment; IndianDistribution Set-up; Indian WholesaleIndustry; Indian Retail Industry; OrganisedRetailing; Global Players in India;Membership Cards; Government of India;Wal-Mart.

Amazon’s foray into e-grocerymarket: Successful Venture?

Amazon.com is a leading online bookselling retailer. It has diversified intodifferent products lines. It witnessed its firstprofit in 2002 and continued to do so till2004. In 2005, Amazon.com profitslumped. In 2006, to overcome its lossand to expand further, it has entered intothe online grocery business. But analystshave mixed opinions about its success. WillAmazon.com witness the same success asin book selling business?


• To understand how Amazon witnessedgrowth as an online retailer

• To discuss the fate of Amazon in the e-grocery market.

Industry RetailReference No. MES0049BYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Amazon.com; Online selling; e-grocery;Books; Competitors; Business model;Internet Book Shop; Customers; Products;Barnes & Noble; Book store; Walmart;Dot-com bubble; Webvan; internetretailers.

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Intel’s Foray into Rural IndiaIn March 2006, Intel, the world’s largestchipmaker and leading computermanufacturer, officially launched aninnovative PC platform known as“Community PC”, exclusively designed tomeet the needs of the people in rural India.For the effective implementation of thiscommunity PC programme, Intel startedanother programme called “Jaagruti”(Awakening) under which the communityPCs were deployed in internet kioskscommon in Indian villages with the supportof businesses, government, educationalinstitutions, online services and ISP. The“community PC” and “Jaagruti” were partof Intel’s World Ahead Program, aninitiative that aimed at enhancing lives byaccelerating access to technology foreveryone, anywhere in the world. Theprogram also aimed at tapping otheremerging markets like China, Brazil,Russia, South America and Africancountries.

Though Intel was positive, analystswondered whether, Intel’s strategy of ruralpenetration through such endeavours wouldbe successful.


• To help appreciate the role of creativity,both and in terms of product innovationand marketing.

Industry InformationReference No. MES0048BYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Intel; Community PC; World AheadProgram; Jaagruti; India; Internet; Kiosks;Rural; Ethnography; Literacy; Village;Language; Weather; Technology; Discover.

Wal-Mart in IndiaWal-Mart Stores Inc. (Wal-Mart) was theworld’s largest retailer. It had ventured intointernational operations in mid-1990s.Hailing from a developed country like theUS it had to struggle in Asia’s developingmarkets to maintain its corporatephilosophy of ‘every day low prices’. Therewere other cultural and local adaptationsthat it made to capture the market.

India being the second-largest populouscountry in the world was emerging as thehottest destination for retail ndustry. ButIndia had still not opened its retail sectorfor Foreign Direct Investment. Wal-Martwas eyeing this market for some time now.

The case describes Wal-Mart’s Asianexperiences in China and Japan and howWal-Mart can apply its learning’s to the

Indian market. Indian retail Industry iscovered in-depth. The case ends on thediscussion of what strategies Wal-Martshould use to enter India and whether onceentered it would be successful?


• To understand the political, legal, socialand economical environment of Indiaand its regulation for FDI

• To understand the nature and structureof retail industry in India

• To know the functional and operationalaspects of a giant retail organisation likeWal-Mart

• To discuss the country experiences ofWal-Mart particularly in Asia (Japan andChina) and the implications of enteringone more Asian country India

• To derive a best fir between Wal-Martand India

• To discuss the entry strategies availableto Wal-Mart and followed by Wal-Martin different countries

• To debate on the right entry strategyfor Wal-Mart for entering India.

Industry Global RetailReference No. MES0047AYear of Pub. 2006Teaching Note AvailableStruc.Assig. Not Available

keywords

Retailing; Indian Retail; Entry strategies;Foreign Direct Investment in India;Regulatory environment; Political; Legaland Social environment; Globalisation;Growth Strategy; Competition; Marketleader; Wal-Mart; India; localisation.

Will China emerge as thesecond home for Danfoss?

Danfoss Inc. was one of the largestindustrial components manufacturingcompanies in Denmark. It engaged inmanufacturing of refrigeration controls,motion controls, compressors,thermostats for household appliances. Ithad manufacturing facilities in fourcontinents, branches and distributors inmore than 100 countries and employed17,000 employees across the world andreached global sales figures of •2.2 billionin 2004.

After attaining the market leadership inDenmark, Danfoss ventured into Chinesemarket in 1995 and by 2005 it investedaround $100 million. Initially Danfosscatered to high and medium end segmentsin China. Gradually Danfoss identified theimmense opportunity available in thelower end segments and in 2006 decided to

employ local engineers and engage inproduction of customised products for thelower end segment customers.


• To study the entry strategies undertakenby Danfoss in China

• To discuss the challenges ahead of Danfossin its strategy to tap low-end segments

• To discuss the growth strategies followedby Danfoss in China

• To analyse the future prospects ofDanfoss in China.

Industry Industrial ComponentsReference No. MES0046AYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Danfoss, Industrial components; Marketexpansion; International venture;Refrigeration industry; Motion Controls;Wuqing; Jorgen Clausen; Low-endproducts; cultural integration;customisation of technology.

Wal-Mart’s China ExperienceWal-Mart evolved as the retailing giant ofthe world in the 21st century. The strategyof “Every Day Low Price” has been itscore competence in beating thecompetition. It grew at a consistentlyhigher rate through out its existence, untilin mid 1990s, when it faced growth crises.Wal-Mart decided to look for newermarkets and Wal-Mart Internationaldivision evolved. Today it operates in 10countries including United States.

In 1996, it entered China, which wasbecoming the powerhouse of Asia. Thestrategic partnership between China and Wal-Mart created a gamut of opportunity forgrowth for China as well as for Wal-Mart.

The case talks about the localisationstrategy of Wal-Mart by penetrating inChina and adapting to its local culture. Theissues faced by Wal-Mart related to theDistribution, Unions, Technology andFinancial systems in China, and how itworked to convert these hurdles intoopportunities. China opened its retailingindustry for foreign investors fully inDecember 2004. Even after nine years ofexistence in the China market, amongforeign retail chains Wal-Mart rankedsecond and in domestic market it did noteven rank amongst the top ten. The expertshave predicted that the Chinese middle classwho drives the retailing market is going toexpand to 400 to 500 million people by2015. In order to capture this massivemarket potential Wal-Mart is gearing upto understand and adapt to Chinese market.





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• To discuss and understand theinternational expansion strategies

• To understand retail industry structureof China

• To discuss the entry strategies to China

• To analyse the operating strategies andgrowth strategies followed by Wal-Martin China

• To understand the ‘glocalisation’strategy and its impact in Chinesemarket

• To discuss the issues like culturaladaptation, localisation and operatingin a fragmented retail market.

Industry RetailingReference No. MES0045AYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Penetration Strategy; Globalisation; OutSourcing; Retailing; Supply ChainManagement; Distribution; Localisation;Cultural Adaptation; Glocalisation.

China’s Luxury Retailing Industry:Saks Inc.’s Market Entry

StrategiesSince its economic reforms in 1978,increasing purchasing power in Chinacoupled with growth in privateconsumption and growing awareness ofluxury goods have fuelled the growth ofthe market for luxury products in thecountry. It is estimated that by 2015, Chinawould surpass the US and Japan as the largestluxury market in the world. To cash in onsuch growth potential, Saks, one of theleading high-end luxury department chainsfrom the US is planning to foray into China.


• To discuss and debate the impact ofeconomic reforms in China on luxuryretailing in the country

• To understand the success factors inChina’s luxury retailing industry

• To discuss the market entry strategy ofSaks in China.

Industry Luxury RetailingReference No. MES0044Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

China’s luxury retailing industry; China’sconsumer behaviour; Saks Inc.; Marketentry strategies; Late movers’ advantage

and disadvantage; Purchasing power; GrossDomestic Product (GDP) andconsumption; Competition; Cosmetics andpersonal care products; Joint venture,partnership and alliance; Roosevelt ChinaInvestments Corporation; Proctor &Gamble (P&G); Giorgios Armani; L’Oreal;Shiseido; Department stores

IKEA in Japan: The Market Re-entry Strategies

In April 2006, IKEA, the world’s largestfurniture retailer, forayed into Japan byopening its second-largest store outsideSweden. The opening of the store markedthe re-entry of IKEA into the Japanesemarket after an unsuccessful 12 years stintbetween 1974 and 1986. Although thecompany has planned to ‘act local’ bycustomising its offerings according toJapanese preferences, it still expects to faceseveral challenges from the Japanesecustomers who are known to beinconsistent and unpredictable, and haveforced many a foreign retailer to exit fromJapan.


• To discuss the need for global companiesto understand consumer needs andpreferences in each of their markets andadapt their offerings accordingly

• To understand the dynamics of theJapanese retail and home improvementmarket

• To analyse the reasons behind IKEA’sfailure in Japan in its first entry (1974-1986) and the factors that encouragedit to re-enter the Japanese market withthe ensuing challenges

• To debate whether IKEA, which isknown for its standard offerings acrossthe globe at the lowest price, would beable to win fastidious Japanese customersthrough customised offerings.

Industry Home Furnishings &Housewares Retail

Reference No. MES0043Year of Pub. 2006Teaching Note AvailableStruc.Assig. Available

keywords

Japanese retail market; Japanese homeimprovement market; IKEA’s first timefailure in Japan; Consumer behaviour inJapan; Foreign retailers in Japan; Japanesefurniture retailers; Japanese real estatemarket; IKEA as a cult brand; Low pricestrategies of IKEA; IKEA’s growthstrategies in Japan; Japan’s economicgrowth.

BBH: The Russian Venture of theUK Brewer, Scottish and

NewcastleMaturity, stagnation and decline in beerconsumption in Western Europe and NorthAmerica forced Scottish & Newcastle, anUK Brewer, to foray into the emergingRussian market by forming Baltic BeverageHolding (BBH), a 50:50 joint venture withCarlsberg Breweries, a prominent Danishbrewer. BBH rode on the wave of risingdisposable income of the Russians, coupledwith a shift from vodka to beer drinking, tobecome the leader in the Russian brewingindustry with a market share of 36%.However, it is opined that the companywould be facing a challenging future giventhe forecasted decrease in beer consumptionin Russia after 2008 and governmentregulations like ban on TV advertisementsof beer to contain juvenile alcoholism.


• To discuss the emergence, growth andforecasted maturity of the Russian beermarket

• To discuss the market entry and growthstrategies adopted by BBH in the Russianbeer market.

Industry BrewersReference No. MES0042Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Available

keywords

Russian beer market; Consolidation ofRussian beer market; Scottish & Newcastle;Carlsberg Breweries; Baltika Breweries;Market entry strategies; Growth strategies;Inorganic growth strategies; Statistics onconsumption of beer in world;Arsenalnoye; Baltika; Baltika No.7;Baltika No.5.

Walt Disney Company in ChinaThe Chinese film industry was a highlyregulated industry until China’s entry intothe World Trade Organisation in 2001.China, with a population of 1.3 billion anda rapidly growing economy, has becomean attractive market for all global mediaand entertainment companies. Walt DisneyCompany, the second-largest media andentertainment company in the world,forayed into China following the maturityof its American and European markets. Inaddition to marketing its consumerproducts, Walt Disney plans to introducetheme parks, and live shows, as well asproducing and distributing movies.


• To highlight Walt Disney’s market entrystrategies in China

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• To discuss the company’s ability tosucceed in a country where its brand haslittle presence and where bureaucracy andred-tapism are rampant.

Industry MediaReference No. MES0041Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Time Warner; Warner China film; SonyPictures Entertainment; Columbia. TriStarMotion Picture Group; News Corp’s Inc.;Viacom Inc; Entertainment business inChina; Hong Kong Disneyland; ShanghaiDisneyland; Growth strategies; Expansionstrategies; Market entry strategies; MTV(Music Television); ESPN (Entertainmentand Sports Programming Network); Filmindustry in China.

Starbucks in IrelandIn 1996, Starbucks Corporation, world’sNo.1 speciality coffee retailer from theUS, started expanding into internationalmarkets due to saturation in its domesticmarket. After entering into Asia, in 1998,Starbucks forayed into Europe and steadilycaptured major markets like Spain, Greece,Germany, Austria and the UK. Followingits success in the key markets of Europe,in 2005, Starbucks ventured into Irelandto gain a sizeable market share bysimultaneously opening a number ofoutlets.


• To discuss the possibility of success ofStarbuck’s business model in a highlycompetitive market like Ireland

• To analyse the reasons underlyingStarbuck’s success in three differentcontinents.

Industry Speciality EateriesReference No. MES0040Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

International expansion strategies;International management; Competition;Competitive strategies; Market entrystrategies; Acquisitions; Global coffeemarkets; Growth strategies; Brand building;Costa Coffee.

Costa Coffee in IndiaIn September 2005, British coffee retailchain Costa Coffee, as part of itsinternational expansion, launched its outletin New Delhi, India. Costa became the first

international coffee chain to startoperations in India. Costa Coffee also plansto enter the wholesale coffee business inIndia and aims to open 300 outlets, throughits franchises by 2008. The changinglifestyle patterns of the Indian middle classfamilies and an increase in their disposableincome has also attracted other foreignplayers such as Barnie, Starbucks and GloriaJean. Costa Coffee is also expected to facestiff competition from domestic playersincluding Cafe Coffee Day and Barista, whoare embarking on a rapid expansion planacross the country.


• To understand the competitive landscapein which coffee retail chains in Indiaoperate

• To discuss the rationale behind CostaCoffee’s entry into India and thestrategies adopted by it to strengthen itspresence in the Indian coffee chainmarket.

Industry CoffeeReference No. MES0039Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Costa Coffee; Starbucks; Market entrystrategy; Competitive strategy; Coffeeretail chains; Cafe coffee day; Barista;Gloria Jean; Asia; Barnie; Call centres inIndia; Coffee consumption in India;Whitbread plc.; Nestle; Tata Coffee.

Cisco in India: India as aResource to India as a Market

Cisco Systems Inc., the worldwide leaderin networking equipment, entered India totake advantage of the low-cost engineeringresources available in the country.However, the company realised thetremendous potential of India as a marketfor its products and started incorporatingstrategies to become the No.1 supplier ofnetworking equipments there.


• To provide an insight as to how Ciscostarted viewing India as a market for itsproducts rather than as a source of low-cost resources

• To discuss whether Cisco was followingthe right strategies for its operations inIndia.

Industry Telecom NetworkingReference No. MES0038Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Cisco System Inc.; India; Networkingequipment; Cisco Systems India Pvt. Ltd.;Expansion; Low-cost engineeringresources; Internet market in India; Globalengineering development centre; Researchand development; Deregulation of telecomindustry; Outsourcing industry; Small andMedium Businesses (SMB’s).

Burger King in ChinaThe rapidly developing fast food marketin China resulted in Burger King openingits first outlet in the country in June 2005.The company was planning to expand itsoperations in China and was confident thatit would be able to make its China venturea success. However, critics were of theopinion that Burger King would not findthe going easy because of a large numberof competitors in the Chinese fast foodindustry.


• To provide an insight into the fast foodindustry in China

• To discuss the market entry strategiesof Burger King in China and whether itwould make its venture in China asuccess.

Industry Fast FoodReference No. MES0037Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Burger King; Fast food industry in China;Kentucky Fried Chicken; McDonald’s;Expansion; Globalisation; Transformationof society; Disposable income; Fragmentedmarket; Franchise model; Competitivechallenges.

Toyota in FranceThe Japanese carmaker Toyota, thesecond-largest car manufacturing company,entered France in 1971 as part of its globalexpansion strategy. Initially, it importedcars from Japan. After the lifting of importrestrictions in 1998, it set up amanufacturing unit at Valenciennes, inNorthern France, and generated 2,000 jobs.The company implemented 'just-in-time'techniques and kaizen to improve its plantefficiency. Toyota became successful inFrance with the increase in sales of its carslike Yaris, Corolla, Avensis and Prius. Butas demand for the cars increased, it startedfacing competition from Mercedes, BMW,and Audi.






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• To discuss entry strategies of Toyota inFrance and the strategies adopted by thecompany to compete with big localplayers like Renault, Volkswagen, andBMW in order to gain a substantialmarket share.

Industry Automobile and TransportReference No. MES0036Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Toyota; France; Growth strategies;Acquisitions; Car industry; Compaq;Expansion; Europe; Competition; SUV’s(Sport Utility Vehicles); Japanese carcompanies; Market shares.

Goldman Sachs in JapanGoldman Sachs, the leading investmentbank in the world, entered Japan in 1969.The economic reforms initiated by thegovernment of Japan in 1996, followingthe collapse of the bubble economy, helpedforeign investment banks to establishthemselves in the country. Goldman Sachstook the opportunity and quickly becamethe leading foreign investment bank in thecountry. In spite of criticism from variousgroups in Japan for its role in somecontroversial deals, the investment bankcontinued with its expansion activities inthe country and has been an active buyerand seller of loss-making Japanesecompanies. However, Goldman Sachs’activities in the country were criticised byvarious quarters in Japan. They alleged thatthe investment bank was functioning morelike a private-equity firm rather than as aninvestment bank.


• To provide an insight into: (1) theinvestment-banking scenario in Japan;(2) the growth of Goldman Sachs inJapan; and (3) the strategies beingadopted by the investment bank

• To discuss whether Goldman Sachs wasadopting the right strategies for growingits business in Japan.

Industry Investment BankingReference No. MES0035Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Goldman Sachs; Investment banking inJapan; Bubble economy; Deregulation;Mergers and acquisitions; Principalunderwriter; Government of Japan;Conflict of interests; Financial Services

Agency (FSA); Tax evasion; Finnciallyweak companies; Economic downturn;Restructuring of business; Private equityfirm; Vulture investor.

FedEx in ChinaIn July 2005 Federal Express Corporation(FedEx) announced the closure of its Asianhub at Subic Bay, in the Philippines andthe creation of its Asian hub at Guangzhou,in southern China. This new hub wouldprovide FedEx with easy access to the PearlDelta River, which is the manufacturingand economic centre of China. Thisproposal came at a time when China hadsigned a historic aviation deal with the US,that provided 11 weekly flights betweenthe two countries. In addition, airfreightfrom China is expected to grow by 10%annually until around 2025. However, thehigh growth in the airfreight market inChina has also attracted other majorplayers like United Parcel Services (UPS)and DHL. FedEx also faces competitionfrom the state-owned postal services, ChinaPost, which is vying for a share of theairfreight market by revamping itsovernight express and second day deliveryservices. Further still, despite China's entryinto the World Trade Organisation inDecember 2001, China has some complexcustoms procedures. Inadequatetransportation infrastructure is anothermajor concern.


• To discuss the market entry strategiesof FedEx in China and the challengesfaced by the company to grow andcompete in China’s complex businessenvironment.

Industry Express Delivery ServicesReference No. MES0034Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Federal Express Corporation (FedEx);China; Market entry strategy; Growthstrategy; DHL;United Parcel Services(UPS); World Trade Organisation; Asia;Express-delivery companies; Airfreightmarket in Asia; China post.

UBS in China: The RenaissanceIn the early 21st century, China’s bankingsector was affected by large incidents ofnon-performing loans, and a prolonged bearmarket had sapped the profits of a majorityof its securities brokerages. To revitalisethe country’s financial markets andprepare them for the opening up of theeconomy in 2006 (as per China’s World

Trade Organisation obligations), thegovernment allowed greater access to selectforeign players through the mechanism ofQualified Foreign Institutional Investors(QFII). In 2003, Switzerland-based UBS AGbecame the first QFII. In 2005, UBSbecame the first foreign company toacquire management control of a Chinesesecurities brokerage.


• To study the evolution of Chinesefinancial markets and the growth of UBSas a leading foreign player in thesemarkets

• To discuss whether UBS would prove tobe the impetus needed to accelerate thegrowth of China’s underdevelopedfinancial sector.


Reference No. MES0033Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

UBS; China; Accession World TradeOrganisation; Financial markets; Bankingsector; Capital markets; Securities; People’sBank of China (PBC); Non-PerformingLoans (NPL’s); Shanghai Stock Exchange;China Securities Regulatory Commission;Qualified Foreign Institutional Investors(QFII); Beijing securities; State ownedenterprise.

Renault in Romania:Prospectsand Challenges

Sluggish growth in the Western Europeanautomobile market forced the Frenchcarmaker Renault to enter the growingmarket of Central and Eastern Europe. Aspart of its strategy for the Central andEastern European regions, Renault decidedto launch its low-cost car, the Logan. Toleverage on low costs, Romania was selectedas the manufacturing base for theproduction of the Logan. The success ofthe Logan prompted Renault to launch thecar in other markets by expanding itsoperations in Romania. However, criticswere of the opinion that Renault wouldnot be able to continue producing theLogan model at low costs for long.


• To analyse the advantages that Romaniaprovides as a manufacturing base forautomobile companies and Renault’soperations in Romania

• To discuss whether Renault would be ableto sustain its low-cost manufacturingadvantage in the future.

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Industry AutomobileReference No. MES0032Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Renault SA; Automobile Dacia SA; Centraland Eastern Europe; Logan; Low-costoperations; Automobile industry inRomania; Highly skilled cheap labour;Manufacturing base; Low-cost car; Exportstrategy.

Honda in ChinaSince the establishment of its firstautomobile manufacturing unit in 1998,Honda became the third-largest foreignpassenger carmaker in China by 2004.When it started exporting its Jazz cars toEurope in June 2005, Honda also becamethe first automaker to export carsmanufactured in China to Europeancountries. Despite the traditional outlookof Europeans who considered ‘Made inChina’ goods as low-quality products,Honda has set up a 100% export-orientedauto manufacturing plant in China.


• To discuss the growth strategies of Hondain China and Honda’s initiatives to makeChina an export base for its Europeanmarket.


keywords

Honda Motor Company Ltd.; Chineseautomobile industry; Competitiveadvantages in China; Sales and distributionnetwork of Honda; Joint venture relatedinefficiencies in China; Honda Accord inChina; Honda’s joint ventures in China;Jazz cars; Cost optimisation techniques ofHonda; 40% local content rule in China;Chinese tariff system; Guangzhou HondaAutomobile Company; Sundiro HondaMotorcycle Company; Weak supplier basein China; Peugeot.

Introduction of Toyota’s Lexus inJapan: The Competitive

Dynamics of Japan’s Luxury CarMarket

On August 30th 2005, Toyota launched itsLexus brand of luxury cars in Japan.Encouraged by the success of Lexus in theUS, which was launched there in 1989,Toyota decided to enter into one of the

most profitable vehicle segments in Japanby launching four new Lexus models.Although Toyota projects sales of 100,000Lexus models in Japan by 2010, analystsexpect fierce competition from formidableforeign players, BMW, Mercedes andVolkswagen.


• To highlight the competitive landscapeof the Japanese luxury car market

• To discuss the competitive strategiesadopted by Toyota to establish Lexus asits luxury car brand in Japan.


keywords

Toyota; Luxury car market; Lexus;Mercedes; BMW; Audi; Japan; Automobile;Market entry; US; Strategy; Branding;Japan automobile market; Automobilemanufacturing.

Warburg Pincus in India: CanIndian Capital Markets Continue

to Entice?Private-equity firm Warburg Pincus’ saleof its 12% stake in the Indiantelecommunications service operatorBharti Televentures, for US$560 millionon March 14th 2004, created flutter amongthe private-equity firms around the world.The deal was the largest private equity dealin the history of the Indian capital market.2004 also witnessed the highest private-equity investment of $1.3 billion in India.Over 90% of the investment came fromoverseas investors, showcasing India as anattractive investment destination. Butsome critics were apprehensive about thistrend.


• To analyse the investment philosophyfollowed by Warburg Pincus globally andIndia’s growing attraction as aninvestment destination for foreignprivate equity firms

• To discuss whether Indian capitalmarkets will continue to attract foreignprivate-equity investments in the future.

Industry Capital MarketReference No. MES0029Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Warburg Pincus; Private equityinvestments; Indian capital markets;Bharti Televentures; Investment analyses;India; Foreign investments; Bottlenecksfor investments; Venture capital.

Hyundai in the US: Prospects andPerils

Hyundai Motor Company, one of the topcar manufacturers of South Korea, hadentered the US market in the mid-1980sthrough the establishment of a subsidiarynamed Hyundai Motor America. Thecompany launched several successivemodels in the 1990s, namely Excel, Sonataand Elantra, as part of its marketingstrategy along with lower prices and goodcustomer service. These cars were verypopular and largely contributed towardsHyundai's success in the US. However, in1992, a great number of Excel models wererecalled due to a fault in its service breaks,hydraulic pedals and linkages, which led toa decline in sales and loss in credibility forthe company. To revive its popularity,Hyundai reinforced its mission statementof ‘Pursuing Happiness Through Cars’ andconcentrated efforts to improve thedesign, quality, manufacturing andmarketing of Hyundai cars in the US. Itintroduced several new models each yearand priced them lower than its competitors.It also implemented marketing strategieslike ‘America's Best Warranty’. By 2005,it became the 4th largest foreign automakerin the US market, the world’s biggest carmarket. Hyundai also aims to become oneof the top five car manufacturers in theworld by 2010.


• To discuss the marketing strategiesimplemented by Hyundai in the US andthe challenges faced by the company inthe matured US car market.


keywords

Global car manufacturing industry; SouthKorean car industry; Hyundai’s marketingstrategy; America’s best warranty;Hyundai’s management systems; JD Powerand associates; Dealer recognitionprogramme; Product line extension;Customer service; Automotive supplychain; Global export hub; Full-lineautomotive distributor; Fuel-celltechnology; Customer retention survey;Learning curve and product life cycles.





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Wal-Mart in India: Opportunitiesvs Threats

In early 2005, Wal-Mart, the world’s largestretailer proposed to make its foray intoIndia, the fourth-largest retail market inthe world. While Wal-Mart viewed India’s$180 billion retail market as a potentialopportunity for global expansion, theretailer’s challenges before its entry intoIndia include strict foreign directinvestment regulations, competition fromthe unorganised retail sector, constituting98% of India’s retail sector, and thegrowing organised retail sector.


• To study the evolution and growth ofIndia's organised retail sector

• To discuss the opportunities andchallenges that Wal-Mart faces in Indiaagainst the backdrop of the country’spolitical environment and competitionin the retail sector.

Industry Discount and Variety RetailReference No. MES0027Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Growth of Indian retail; Organised retailingin India; Foreign direct investmentregulations for retailing in India; Wal-Mart’s market entry strategy;International retailers in India;Competition in India’s organised retailsector; Consumer expenditure in India;Wal-Mart’s sourcing strategies; Boom inIndian retail industry; India’s economic andpolitical risk; Wal-Mart’s challenges inIndia; Metro AG in India; Shoprite in India.

Subway in ChinaSubway, the world’s largest sandwich chainentered China when the fast food businessin the country was witnessing a hugegrowth. But Subway learned thatestablishing a strong presence in China wasnot an easy task. The Chinese were aliento the American way of ordering and eatinga sandwich and at the same time were awareof the rising obesity concerns in the countrydue to high calorie Western fast foods. Tofamiliarise the Chinese to sandwiches,Subway had to provide printed signs toexplain the processes of ordering a Subwaysandwich. Also. Subway faced formidablechallenges establishing and managing thefranchises.


• To study entry and expansion strategiesfollowed by Subway in China, andproblems associated with the fast foodbusiness in China

• To discuss the critical success factors inthe highly competitive and vastlycomplex Chinese fast food market.

Industry Fast foodReference No. MES0026Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Subway sandwiches; Chinese fast foodindustry; Jim Bryant; Bread culture; Entryand expansion strategies; Competitionfrom McDonald’s; Franchising in China;China’s growing middle class; Menucustomisation; Obesity concerns.

UBS: The Swiss Bank in ChinaUBS AG, which was formed in 1998 as aresult of a merger between Union Bank ofSwitzerland (Zurich) and Swiss BankCorporation (Basel), started its associationwith China investment research activities.With continued reforms in the Chinesecapital markets, it increased its exposureby actively participating in corporateinvestment banking and investing in thecapital markets through the scheme ofQualified Foreign Institutional Investor(QFII). UBS has the highest investmentquota among all QFIIs of $800 million andhas asked for a further increase. It has alsoplanned to enter the derivatives sectorwhich has been opened to foreign andprivate participation.


• To discuss the Chinese capital marketreforms, UBS’ operations in China andits strategies for future operations in thecountry.


Reference No. MES0025Year of Pub. 2005Teaching Note AvailableStruc.Assig. Not Available

keywords

UBS AG; Chinese capital markets; ChinaSecurities Regulatory Commission (CSRC);Qualified Foreign Institutional Investor(QFII); A-listed securities; Shenyin andWanguo Securities Co; Swiss bank in China;Investment banking; Initial Public Offering(IPO); Mergers and acquisitions; Investmentresearch; Foreign financial institutions

Kodak in ChinaEastman Kodak Co. (Kodak) forayed intoChina in the early 20th century. Kodak’sprolonged investments in buildingmanufacturing units, massive promotionscoupled with its strategy to localise its brand

in a foreign market brought a shift in itspolicy, from producing goods in China toproducing goods for China. However, itsfocus still remained on tapping China'spotential market for traditional imagingproducts as well as the growing demand fordigital products.


• To discuss the strategies adopted byKodak to increase its presence in China,which has grown to be one of its mostimportant markets.

Industry PhotographyReference No. MES0024Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Eastman Kodak; George Fisher; Economiesof scale; Kodak China; Kodak Wuxi;Xiamen Fuda Photomaterials Co; Fuji Film;Lucky Films; Joint ventures; Legend;Nokia; Kodak Express; Goldman Sachs;Digital photography; Corporate socialresponsibility.

Intel in ChinaPresent in China since the mid-1980s, Intelhas gained a strong foothold in thecountry’s chip market with considerableinvestments in manufacturing facilities andresearch centres. However, of late, Chinahas bred competition for Intel with manyof its domestic companies venturing intochip manufacturing led by the Shanghai-based Semiconductor ManufacturingInternational Corporation (SMIC). Witha vast intellectual talent pool, Chinesechips are expected to be on par with thoseof Intel in future.


• To discuss the growth strategies of Intelin China

• To analyse the competitive challengesthat Intel faces in the growing Chinesechip market.

Industry Microprocessor, MicroControllers & DSPs


keywords

Intel; Intel in China; Chinese chip market;Intel’s threat to China; Intel’s growthstrategies in China; Intel's presence in China;Chinese Silicon Valley; Microprocessormarket of China; SemiconductorManufacturing International Corporation(SMIC); AMD (Advanced Micro Devices);China semiconductor industry; Intel China

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Research Centre (ICRC); InternationalScience and Engineering Fair (ISEF);Dragon chip; Memory chips.

H&M: The Swedish FashionDiscounter in USA

Hennes & Mauritz (H&M), the Swedishfashion retailer, had been popular in Europeas the ‘fast food of fashion’ for its standardoffering of latest fashions at low prices.With about 1,000 stores in 20 countriesacross Europe, the company made anambitious venture outside Europe in 2000by entering the US market. But after anencouraging start, the company failed tolive up to expectations as well as its claimsin terms of growth and profits.


• To discuss the issues that limited H&M’sgrowth, and the new strategies itundertook to address those issues.

Industry Fashion RetailReference No. MES0022Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Hennes & Mauritz (H&M); Fashionretailer; European fashion retailing; Fastfood of fashion; Swedish fashion discounter;New design turnaround time; Effectiveretail globalisation; Expansion strategy;Competitive differentiation; Entry intonew markets; US retailing; Card checkprocess; Low price image; Cost control;Turnover development.

China’s Beauty Industry: L’Oreal’sForay

L’Oreal, the world’s largest cosmeticscompany, entered the booming Chinesebeauty-care market in 1997. Since then, ithas been trying to understand its Chineseconsumers, fight competition from localand international companies and expandfrom cities to the two and three-tier townsof China. Its acquisition of two Chinesebrands, Mininurse and Yue-Sai in 2003-2004, moved its position up from 11th tosecond.


• To discuss the beauty-care industry inChina and the current competitivescenario

• To discuss L’Oreal’s entry and marketingstrategies, and the current and futurehurdles it has to overcome in China

• To discuss L’Oreal’s competitiveposition and the problems it faces dueto the business environment in China

• To discuss the future plans for L’OrealChina.

Industry CosmeticsReference No. MES0021Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

L’Oreal; China; Lindsay Owen-Jones;Chinese cosmetic industry; UnderstandingChinese consumers; Maybelline watershinediamonds; Mininurse; Yue-Sai; Mary Kay;P&G (Procter & Gamble); Counterfeitproducts

Carrefour in ChinaFor marketers around the world, Chinapresents a vast demography in terms ofconsumer habits and preferences. After thecountry embarked on an ‘open door’policy, many multinationals thrived on thecountry's diversity and consumer spendingpower. In the retailing sector, the arrivalof multinationals changed the way theChinese shopped, owing to the emergenceof different types of retail formats. In thisarena, France-based Carrefour successfullypioneered the hypermarket format byestablishing 50 stores in just 10 years. Othergiants that followed were the US-basedWal-Mart and Germany-based Metro AG.However, the domestic hypermarketoperators countered the threat fromforeign giants by merging their operationsand expanding their presence.


• To discuss Carrefour’s successful entryinto China and how it positioned itselfto attract the Chinese shopper

• To discuss the competitive forces thattypically affect the retail giants.

Industry Grocery RetailReference No. MES0020Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Carrefour; China’s retail industry;Hypermarkets; Restrictions on foreignretailers; The reform process; Wal-Mart;Metro AG; Procurement centres; WTO(World Trade Organisation) ascension;Joint ventures; Lianhua supermarkets.

Hang Seng Bank in China: TheGrowth Strategies

The Hang Seng Bank, a part of the HSBCgroup, is one of the largest banks in HongKong. Hang Seng forayed into the Chinesemarket during the mid-1980s by opening

up a representative office in Shenzhen. Itbegan to expand its operations in Chinafrom the late-1990s after the Chinesegovernment relaxed regulations pertainingto the entry of foreign financialinstitutions in China. By 2004, Hang Senghad branches in Shanghai, Fuzhou,Guangzhou and Nanjing.


• To discuss the expansion strategiesimplemented by the Hang Seng Bank toestablish itself in China before theChinese banking sector is opened up in2006 as per the World TradeOrganisation norms.



keywords

Hang Seng Bank; Hang Seng Bank’sexpansion in China; HSBC; Bankingindustry in China; HSBC’s major stakeacquisition in Hang Seng; Hang Seng Bank;Cost to Income Ratio; How Chinesebanking industry has been opened up;History of Hang Seng Bank; Financialservices of Hang Seng Bank.

Metro in India: Fighting againstOdds

By 2003, Metro AG was the third-largesttrading and retailing group in Europe andthe fifth largest in the world, with apresence in 28 countries. Metro forayedinto the Indian market in 2003 with itscash and carry concept of Business-to-Business (B2B) wholesaling. Its entry intoIndia was accompanied by widespreadprotests by the local trading communitiesand allegations of violation of the licensingagreement with the Government of India.


• To discuss the reasons underlying Metro’smarket entry problems in India

• To discuss its expansion strategies in theIndian market through its innovativesupply chain system.


keywords

Metro AG; Metro Cash and Carry; The cashand carry concept; Wholesale distribution;Metro in India; FDI (Foreign DirectInvestment) regulations on retailing inIndia; Indian supply chain; Global retail






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companies; Indian retailing market; Metro’sentry hurdles in India; Cross-divisionalservice companies of Metro Group.

Carrefour in JapanWith the deregulation of the Japanese retailindustry, many foreign companies like Toys‘R’ Us and Costco forayed into Japan in thelate-1990s. Europe’s No.1 French retailerCarrefour, forayed into the Japanese marketin 2000 by setting up its first retail store inthe suburbs of Tokyo, and planned toexpand aggressively by opening 13 storesby the end of 2003. However, until mid-2004, the company was able to set up onlyeight stores and was still finding it difficultto run them profitably.


• To discuss the market entry strategiesof Carrefour in Japan.

Industry RetailReference No. MES0017Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Carrefour; Japanese retail market;Deregulation in the Japanese retail market;Large Scale Retail Store Law; Carrefour inJapan; Hypermarkets in Japan; Foreignretailers in Japan; Retail competition inJapan; Japanese consumer buyingbehaviour; Carrefour’s distribution strategyin Japan.

Whole Foods in UK: The GrowthChallenges

Whole Foods Markets Inc. (Whole Foods)started in 1980 in Texas, US, successfullytapped the growing interest of Americanconsumers in ‘organic foods’, and emergedas the world’s largest organic foods retailingchain by 2000. It spread its operationsacross the US and Canada, gaining theadmiration of both the market analystsand consumers for its products, philosophyand growth. In its pursuit to expand beyondUS and Canada, the company acquired“Fresh & Wild Market” stores in the UK.


• To discuss the strategies that WholeFoods can devise to penetrate into theUK market and achieve its growthtargets

• To discuss the ways in which WholeFoods can win consumers from theexisting competition.

Industry Grocery RetailReference No. MES0016

Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Organic foods; Natural foods; Whole foods;John Mackey; Organic farming; Wal-Mart;Competition in the UK grocery market;Organic foods in the UK; UK retailing;British supermarkets; Tesco Plc.; ASDA;WM Morrisons; J Sainsburys.

Starbucks in GermanyStarbucks, the multinational chain ofgourmet coffee shops, entered the numberone coffee drinking country in Europe –Germany, through a joint venture with theGerman retail chain, KarstadtQuelle. Itfaced stiff competition from retailers whoemulated Starbucks’ business model, oftenadding a local taste. Its German partnerwas battling its own poor financialperformance because of sluggish consumerspending. Two years into its operation,KarstadtQuelle was reviewing the jointventure contract.


• To understand the reasons for the failureof Starbucks’ business model in Germany

• To discuss Starbucks’ efforts toovercome various operational hurdlesfaced in Germany.

Industry Speciality EateriesReference No. MES0015Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Starbucks in Germany; Restaurant and cafeindustry; KarstadtQuelle (Karstadt);Departmental stores; Growth strategies;Coffee house; Competitive strategy; Globalexpansion strategy; Cappucchino; HowardSchultz.

Yahoo! in ChinaYahoo!, the most visited website in theworld launched Yahoo! China in 1999. Itfailed to make much of an impact on theChinese Internet users who wereenamoured with local sites. In 2003,Yahoo! China made a renewed effort toexpand its presence in China. It aimed toconcentrate on search services, on-lineauctions and web-based communications tofurther its presence in China.


• To discuss the opportunities presentedby China’s rapidly increasing Internetpopulation

• To discuss Yahoo! China’s plans toincrease its penetration in China

• To discuss the opportunities and pitfallspresented by the bourgeoning e-commerce and on-line advertisementmarket in China, to the InternationalInternet firms.

Industry Internet Searching ServicesReference No. MES0014Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Yahoo! in China; Beijing FoundersElectronics Co.; Competitive growthstrategy; China Internet NetworkInformation Centre; Partnerships andacquisitions; Chinese Internet industry;Chinese Ministry of Information;Sina.com; sohu.com; netease.com; ShortMessaging Service (SMS); 3721 NetworkSoftware Co. Ltd.; Zhou Hongyi; e-Commerce; e-Trade; Yahoo! Asia.

Wal-Mart’s Foray into Japan:Heading towards Success or

Hara-Kiri?For MNC (Multinational corporation)retailers, the Japanese retailing market isconsidered to be one of the toughest toenter. In 2002, when Wal-Mart announcedthat it was buying a stake in Seiyu, a domesticretailer, as a first step to enter Japan, therewas widespread scepticism among analysts.Since its entry, Wal-Mart has been doing allit can to understand and woo the Japaneseconsumers into Seiyu stores, where it isimplementing its own standard systems andprocesses. Wal-Mart’s challenges includedealing with Japan’s traditional multi-tierdistribution system, understanding the trendsin Japanese buying habits and creating theright product assortment. It also facescompetition from domestic players likeAeon and Ito-Yokado and internationalplayers like Carrefour.


• To discuss the critical success factors inthe Japanese retail industry

• To discuss the strategies adopted by Wal-Mart in Japan

• To discuss the possible future scenariosin the retailing industry of Japan.


keywords

Wal-Mart; Japanese retailing; Numazu;Seiyu; Ito-Yokado; Trends in Japanese

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retailing; Foreign retailers in Japan;Distribution in Japan; Wal-Mart’sinternational business; Greg Penner; Wal-Mart's competitors in Japan.

Samsung in IndiaSamsung India Electronics Ltd. (Samsung)began its operations in India in December1995 and within a span of eight years,became one of the most prominent playersin the high-tech consumer electronics andhome appliances sector in India. By 2003,Samsung had seized a significant share ofthe Indian market in colour televisions,frost-free refrigerators, washing machines,air conditioners and microwave ovens.Analysts attributed Samsung’s success inIndia to its emphasis on the mix of productfeatures, technology and aggressivemarketing.


• To discuss how Samsung managed itsmarketing mix in India to strengthen itsposition in the consumer electronicsmarket.

Industry Consumer ElectronicsReference No. MES0012Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Samsung in India; Marketing mix; Sub-branding; Unique selling proposition;Customisation; Promotions; Cricketsponsorship; Digital Natural Image engine(DNIe)

Pizza Hut in IndiaPizza Hut entered India in 1996 andintroduced pizzas to the Indian customers.But it was not a smooth sail for theinternational giant. Its large dine-ins, highprices and positioning of pizza as meal put-off customers. Meanwhile. Dominos Pizzathat entered India in the same year wasable to gain ground by positioning Pizza asa snack and supporting it with its efficienthome delivery system. Even homegrownpizza chains like Pizza Corner and SmokinJoe ate into Pizza Hut’s market share.


• To discuss how Pizza Hut, after initialset backs and loss of market share madeamends and overcame its short comings

• To highlight the different strategiesadopted by the pizza chains in India.

Industry Fast Food & Quick ServiceRestaurants

Reference No. MES0011


keywords

Pizza Hut; Dominos Pizza; Pizza Corner;Amul; Dine-ins; Home delivery model;Menu customisation; Local sourcing.

GM in ChinaIn July 1994, when the Chinese authoritiesbegan the task of making China’sautomotive sector one of the country’sstrongest industries, the automobilemarket was opened to the foreigncompanies. But the access to the marketcame with a rider – technology transfer tothe local companies. General Motors (GM)entered the Chinese automotive marketthrough joint ventures with seven Chinesecompanies. Eventually GM got thepermission to set up a manufacturing unitinvesting between $1 billion and $2 billionto manufacture mid-sized cars in China.But the company’s Chinese odyssey hasnot been very smooth. It not only had todeal with fluctuating car demand but alsowith its joint venture partners who provedto be tough negotiators. Despite theproblems, GM continued to focus on Chinaand the perseverance seemed to pay offwith the company tripling its sales in 2003.


• To discuss GM’s operations in china andhow the company managed its jointventures in China

• To discuss the competition in theChinese car market.

Industry AutomobileReference No. MES0010Year of Pub. 2004Teaching Note AvailableStruc.Assig. Available

keywords

GM (General Motors); China; Automobiles;Chinese car market; Competition;Volkswagen; Toyota; Shanghai GM; JinbeiGM; Joint ventures in China; Minivehicles.

Business in India: The LG WaySince its entry into India in 1997, LGElectronics India Pvt. Ltd. (LGEIL), thewholly-owned subsidiary of LG ElectronicsIncorporated (South Korea) in India, hasbeen successful in contributing 5% of theglobal operations of its parent LG. LGEIL’sproducts speak the language, which theIndian consumers understand. Further, thepeople who manage its business are chosenlocally and the distribution network iscustomised to Indian conditions. LGEIL,

with its strategies well in place, looksforward to a brighter future.


• To discuss the strategies LGEIL followedin India with regard to its employeesand distribution network in the backdropof its Korean origin and the Koreanphilosophy.

Industry Consumer ElectronicsReference No. MES0009Year of Pub. 2004Teaching Note AvailableStruc.Assig. Available

keywords

South Korean chaebols; LG ElectronicsCorporation; Korean managementphilosophy; Sahoon; Confucian values;Employee training and development; Thepull factor of LG (LG Electronics);Paternalistic management culture of Korea;Corporate ideologies; Consumerelectronics companies in India; Regionaldistribution model; Customer satisfactionmodel; Direct-dealer channel; Brand recall;LG AC (air conditioners) academy.

Market Entry Strategies of GmailGoogle, the biggest Internet search engine,has come up with a new offer for e-mailusers. On April 1st 2004, Google announcedthe launch of ‘Gmail’, in which offered astorage space of one gigabyte to its usersthat was enough for a normal e-mail userto store his mails for a decade. Thisannouncement sent mild tremors throughthe existing players, Yahoo! and MSN, whooffered a free space of just four and twomegabytes respectively. Furthermore,Google announced that it would tag its mailswith only those advertisements that arerelevant to the contents of the mail, whichis also known as ‘contextual advertising’.However, scepticism arose about theprivacy of the e-mails.


• To discuss the entry strategy of Googlein the global e-mail business and the prosand cons of its offer

• To analyse the effects of Gmail onYahoo! and MSN and their possiblecompetitive responses.

Industry Internet ServicesReference No. MES0008Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Google; Gmail; e-mail; Yahoo!; Hotmail;America Online (AOL); Contextualadvertising; e-mail business; ARPANET;






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MSN; Microsoft; Market entry strategies;Roy Tomlinson; Mailcity; PayPal.

Indica’s Foreign ForayIn the 1990s, when India Inc. was strugglingwith the implications of liberalisationpolicy, nobody expected India’s productsto go global. Traditionally, the Indianindustry was considered a follower of theWest owing to its low-quality products anda nascent manufacturing industry. This wasparticularly true for the automobileindustry, which was in its initial stages ofgrowth. But when Tata Motors signed anagreement with MG Rover Group of UK in2002 to export Indica, India’s firstindigenous car, it attracted attention ofmany automakers who realised thepotential that India held. Tata Motorslaunched Indica in 1998, although the cardid not succeed initially, the sales pickedup with the re-launch of Indica.


• To discuss the reasons behind the successof Tata Motors’ Indica in the passengercar segment

• To discuss Indica’s remarkable debut inthe European market.

Industry AutomobileReference No. MES0007Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Tata Motors; Indica; Indica V2; MG Rover;CityRover; Idea; Institut Francais Du Petrolof France; Engineering Research Centre;China Brilliance Industrial Holdings;Phoenix consortium; European Union;Block exemption; Small car segment;British car industry; Supermini cars.

KFC in ChinaWestern fast food giants like McDonald’sand Subway, with Kentucky Fried Chicken(KFC) in the lead, dominate the fast foodmarket in China. KFC is able to please theChinese palate with its ‘finger licking good’chicken that is part of the well-establisheddietary habits of the Chinese. The Chinese,who until the1980s, were used to untidyrestaurants and unfriendly service, haveembraced the ambience, rich decors andfriendly service of KFC. As of 2003, KFChad more than 900 outlets, with itspresence in 12 out of 13 provinces of China.KFC, apart from its popular products, alsocustomised its offerings to suit the Chinesepalate such as Peking duck, bamboo soupetc, that helped to win over loyal patrons.It is also the first food chain to introduce adrive-through restaurant in China. Despite

heavy competition from Westerncounterparts like McDonalds and Subway,and China’s domestic food chains likeRonghua Chicken, KFC maintains its leadin the fast food market worth RMB 67.6(US$8.1 billion) as of 2002.


• To discuss the strategies that enabled KFCto become a dominant fast food retailerin China

• To discuss the critical success factors ofthe Chinese fast food industry.

Industry Fast Food and Quick ServiceRestaurants


keywords

Kentucky Fried Chicken (KFC); Chinesefood culture; Customisation; Franchising;Harkland D Sanders; Fast food revolutionin China; KFC’s initial years in China;KFC’s promotional activities.

Promoting Prius in USOil-burning cars were becomingincreasingly unacceptable in the US, giventhe tough environmental regulationsprevailing there. Consequently, the US wasexpected to be the biggest market for hybridvehicles, even bigger than the Japanesehybrid market by 2004. Prius (pronounced‘pree-us’), Toyota’s hybrid car, whichappeared for the first time in 1997, hit theUS market in 2000. By October 2003,Toyota had sold 50,000 of these cars inthe US. Meanwhile in 2003, the Priussecond generation appeared in the US.Toyota sought to further polish its imageof engineering competence by advertisingits Prius to a wide range of buyers.


• To discuss Toyota's promotional strategyin the US for its Prius hybrid car.

Industry Automobile and TransportReference No. MES0005Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Available

keywords

Toyota; Pruis; Hybrid cars; Saatchi andSaatchi; Oasis; Strategic integrationcapability; Civic Hybrid; Corporatecampaign; Creativity; Dentsu; HondaInsight; Promotional strategy;Environment; Philanthropic activities;Toyota Way.

Harley-Davidson in ChinaThe Harley-Davidson Motor Company(H-D) completed one hundred years in2003. As of August 2003, H-D held a 46%share of the North American heavyweightbike market. However, the company wasnot successful in selling its legendary bikesin China. As of August 2003, the companydidn’t have a single authorised dealer inChina. H-D’s roadblocks in China included,amongst other things, concerns aboutpiracy in China, Beijing’s restrictions onmotorcycle use and the preferences ofChina’s bikers for low displacement bikes.


• To discuss the roadblocks for Harley-Davidson in the Chinese bike market.

Industry Automotive and TransportReference No. MES0004Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Harley-Davidson in China; Harley-Davidson Motor Company; Harley OwnersGroup (HOG); Just-in-time; Displacementmodels; Richard Teerlink; Jeffrey LBleustein; Buell motorcycle; Piracy;Harley-Davidson in Japan; Harley-Davidson in Taiwan; Trade barriers;Chongqing; Zongshen motorcycle; Pricewars.

McDonald’s In ChinaMcDonald’s Corporation is the world’sleading food retailer with 31,108restaurants in 119 countries serving 46million customers a day. McDonald’s hasalways been a franchising company. Aboutthree quarters of its stores worldwide arefranchises and franchisees have alwaysplayed a significant role in McDonald’ssuccess. However, in China it is a differentstory. Barring a pilot franchise in NorthernChina’s Tianjin Municipality, all 566McDonald’s restaurants are either wholly-owned by the company or jointly-ownedwith Hualian or Beijing Sanyuan foods.Although franchising has been a fastgrowing business in China since 2002,challenges exist.


• To discuss McDonald’s franchisingmodel, its business, strategy and theroadblocks to its franchising efforts inChina.

Industry Fast Food and Quick ServiceRestaurants

Reference No. MES0003Year of Pub. 2003Teaching Note AvailableStruc.Assig. Not Available

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McDonald’s; McDonald’s outlets;McDonald’s China DevelopmentCorporation; McDonald’s in China;Kentucky Fried Chicken; Fast food;Strategy; Chinese fast food industry; China;Franchising in China; Franchising;Franchising model; Global branding;Logistics; Supplier networks.

Wal-Mart in JapanIn 1991, Wal-Mart, US’s No.1 retailer since1990, forayed into the internationalmarket for the first time by enteringMexico. By 1999, besides US, Wal-Marthad its presence in nine countries. Since2000, Wal-Mart started witnessingsignificant growth in its international salesagainst flattened domestic sales. Being fedon double-digit sales and profit gains, Wal-Mart decided to expand rapidly intointernational markets to avoidconcentrating only on its home market.Japan, the second-largest consumer marketin the world after US, was its nextdestination. On March 14th 2002, whenWal-Mart announced its decision to enterJapan, the country’s economy was miredin recession with spiralling deflation,shrinking consumer spending and cutthroatcompetition.


• The case discusses the challenges thatWal-Mart faced during its entry into theJapanese retail market and how itplanned to overcome them.

Industry RetailReference No. MES0002Year of Pub. 2003Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Wal-Mart; History of Wal-Mart; SamWalton and Wal-Mart; Wal-Mart’sinternational operations; Retailingstrategies of Wal-Mart; Wal-Mart’sinventory management systems; Wal-Mart in Europe; Wal-Mart in Germany;Wal-Mart in Japan; Retailers in Japan;Retail business in Japan; Consumer buyingbehaviour in Japan; Retailing problems inJapan; Retail competition in Japan; Wal-Mart's financial results.

Microsoft's Entry into AntivirusIndustry

In September 2003, Microsoft entered theantivirus industry by acquiring the antivirussolution provider, GeCAD. This move ofMicrosoft left many a analyst to speculateabout the future of the antivirus industry,given that, throughout its history

Microsoft had dominated every softwaremarket it entered.


• To discuss why Microsoft entered intothe antivirus market, and also the likelyimpact of its entry on the antivirusindustry

• To discuss why Microsoft’s entry intothe antivirus market was perceived as athreat to Linux.

Industry Computer SoftwareReference No. MES0001Year of Pub. 2003Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Microsoft; Antivirus market; Threat toantivirus vendors; Symantec; NetworkAssociates; Microsoft security initiatives;Linux; GeCAD; Flaws in Microsoftproducts; Antitrust laws; Microsoftmonopoly; Future of antivirus industry;Microsoft bundling tactics; NetscapeNavigator; Antivirus vendors concerns.

FedEx Kinko’s to FedEx Office:Brand Management and Cultural

Integration ChallengesThis case enables an interesting discussionon FedEx’s decision to drop one of itsacquired brands, Kinko’s, from its name.Having acquired Kinko’s in 2004, FedExnamed it as FedEx Kinko’s and operatedunder the same brand name till June 2008.

In 2004, FedEx acquired Kinko’s, a chainof copying stores to increase its groundshipping market through Kinko’s storelocations. Reportedly, during this time(2004–2008), the profits of the acquiredunit have fallen from $100 million in 2004to $45 million in 2007. In 2008, FedExannounced an $890 million write-off onthe purchase of Kinko’s and named thirdCEO to head Kinko’s in four years. Thecompany also developed an ill reputationfor poor customer service, during the 4years of its operations. To avoid furtherdamage, in 2008, FedEx decided to dropKinko’s name from its brand and continueoperations under a new brand name, FedExOffice. Will the new brand name helpFedEx improve its performance in copyingand business services segment or will it callfor new problems?


• To understand the nature of FedExbusiness and discuss the Key SuccessFactors (KSFs) for its business

• To analyse the ideal growth options forFedEx, given nature of its business andevaluate the strategic fit between FedExand its acquired companies, especiallythe strategic fit between FedEx andKinko’s

• To analyse the reasons for Kinko’s poorfinancial performance during 2004–2008 and debate on FedEx’s decision todrop Kinko’s from its name and goingin for a new name FedEx Office

• To debate on the efficacy and feasibilityof continuing with the brand identity ofacquired company – in this case, theKinko’s brand – or does it make sense tointegrate the brand of acquiredcompanies with the brand of acquiringcompany.

Industry Express Delivery ServicesReference No. MAA0186Year of Pub. 2009Teaching Note AvailableStruc.Assign. Available

Keywords

Mergers and Acquisitions, CulturalIntegration, Brand Integration,Diversification, Innovation, FedEx,Kinko's, Hub and spoke, Logistics andsupply chain, Freight Services, Brian Philips

Daiichi’s Acquisition of RanbaxyOn June 11th 2008 Japan’s third largestdrug maker Daiichi Sankyo announced, itsstrategic deal to acquire majority stake inthe Indian generic drug major, RanbaxyLaboratories Limited. Daiichi agreed topay around US$4.2 billion for acquiring51% stake (including promoter stake of34.83%) in Ranbaxy, putting the totalenterprise value of Ranbaxy at US$8.5billion. Daiichi-Ranbaxy deal was the largestacquisition in the Indian pharmaceuticalindustry and was viewed by analysts as astep towards the consolidation in the worldgeneric drug market. The deal madeDaiichi-Ranbaxy, the combined entity the15th largest pharmaceutical company inthe world with a market capitalization ofaround US$30 billion. It helped Daiichileverage its innovative drug makingcapabilities and R&D expertise withRanbaxy’s low cost manufacturing abilitiesto achieve a competitive position in theworld generic drug market. Some industryexperts’ claimed that the price Daiichi paidfor acquisition was quite high compared tothe present pricing of other Indian genericdrug making companies.


• An in-depth knowledge about DCFvaluation techniques

• The rationale behind the acquisition ofRanbaxy by Daiichi



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• Long-term synergies arising for Ranbaxyafter Daiichi acquired it

• The advantages and disadvantages ofM&A deals

• The need for growth throughacquisitions in foreign countries

• The consolidation trends in the Indianand Global Pharma Industries.

Industry PharmaceuticalsReference No. MAA0185Year of Pub. 2009Teaching Note AvailableStruc.Assign. Available

Keywords

Mergers and Acquisitions, DCf Valuation,Pharmaceuticals Industries, Generic Drugs,Synergies, Strategy, Industry value Chain,Daiichi Sankyo, Ranbaxy, CompetitiveAnaysis, Open Offer, Financial Forecasting

Ranbaxy’s Sell-off to Daiichi –Rise of a New Business Model in

Global Pharma?The fast-growing emerging markets havegained considerable significance with theBig Pharma losing out on their global marketshare. India, the growing hub of R&D inglobal pharma, is fast catching up as analternative for sustaining competitiveadvantage. In 2008, the sell-out decisionby Ranbaxy, the largest pharmaceutical inIndia, is seen as a sign of the changingdimensions of faster consolidation in globalpharma. Ranbaxy, a generic firm, sold itsmajority stake to Daiichi-Sankyo, a topJapanese innovation company, setting anew trend. The cross-border acquisition isperceived as a growing tendency ofcompanies to focus on future sustainabilitythan on mere profit margins. Bothcompanies are complimenting each other,with Ranbaxy foregoing national interestsfor stronger global competitiveness. Thishybrid model has triggered a new phase ofM&A in global pharma, as Big Pharma startdesperate measures of new mutualcollaborations and alliances to risk losingtheir market share from their genericplayers.


• To examine the changing marketdynamics amidst competition totraditional pharma companies fromgeneric drug makers

• To evaluate the value chain of pharmaindustry and examine the differentbusiness models that evolved

• To analyse the growth drivers of pharmacompanies

• To identify the need for a hybrid businessmodel and analyse the effects of

Ranbaxy’s sell-out to Daiichi on boththe companies and the industry as awhole.

Industry Pharmaceutical IndustryReference No. MAA0184Year of Pub. 2009Teaching Note AvailableStruc.Assign. Available

Keywords

Ranbaxy, International Patent, Daiichi,Business Model, Pharmaceutical,Acquisition, Generic drugs, Research anddevelopment, Blockbuster drugs, clinicaltrials

InBev’s Acquisition of Anheuser-Busch: American Beer with

Belgian Spirit?The race was on for an unassailable lead inthe global beer industry as Belgian-BrazilianInBev made an unsolicited takeover bidfor the American Anheuser-Busch. Withthe fear of losing its 150 years ofindependence, Busch family initiallyrebuffed the offer and tried all means toscuttle the deal. After a month long battleduring June–July 2008, with contentiouswrangling amid lawsuits and Securities andExchange Commission filings, InBevsweetened the offer by increasing the bidfrom $65 per share to $70 per share.Holding less than 4% controlling stake inthe company and diverse opinions amongthe family about the deal, Anheuser-Buschhad little or no chances of avoiding thedeal. Finally on July 12th 2008, Bud wasready to wear a foreign crown. Couldanything reflect American loss ofeconomic supremacy more visibly than forits iconic beer to fall into foreign hands?Though the deal would create the world’sleading beer giant ahead of SABMiller,doubts loom large regarding realising theanticipated synergies, amid diverse culturesand other complexities. Further, will theBud give InBev a global competitive edge?


The case study can be used:

• To examine the growing competition inthe beer industry and conductcompetitive analysis on major players

• To discuss the (changing) critical successfactors of the global beer industry

• To identify the factors that are drivingconsolidation and globalisation in theglobal beer industry

• To examine the desirability and viabilityof InBev’s hostile takeover bid forAnheuser-Busch

• To analyse the problems in integratingcorporate and national cultures,

particularly in a cross-border acquisitionlike InBev and A-B.

Industry BeerReference No. MAA0183Year of Pub. 2009Teaching Note AvailableStruc.Assign. Available

Keywords

Global Beer Industry, SABMiller, Interbrew,AmBev, Budweiser, Bud Light, Carlos Brito,Grupo Modelo, Adolphus Busch IV, GlobalBrewers, Brand Positioning, Stella Artois,Category Wars, Beer ConsumptionPatterns, Consolidation and globalisation

Coca-Cola’s Acquisition ofChina’s Huiyuan Juice: A Juicy

Deal?What is the best way for a company toattain stable revenue and command a largermarket share – especially in an industry,where the life cycle of a product shrinksfast? How does a company manage itsproduct portfolio in a way that continuesto meet the customer demand and extendits validity? Among options galore,companies opt for either organic orinorganic growth. In today’s era ofmarketing where ‘Consumer is the King’,companies compete with one another tolure the consumers. This motto is equallyrelevant to the beverage industry, wherethe tastes of consumers matter a lot.Beverage companies constantly chart outnew strategies to launch their products thatsuit the changing tastes and preferences ofthe consumers. Similarly, Coca-Cola,which believes in ‘glocal’ approach haslaunched products that matches with thelikes and dislikes of the Chinese consumersand as a result is embraced as a local brandby the Chinese. However, carbonatedbeverages started losing their fizz with theoutbreak of Severe Acute RespiratorySyndrome (SARS) in China in 2003. Thistriggered health consciousness among thepeople in China, which, in turn, hasincreased the demand for fruit juices thancarbonated drinks. In order to fall in linewith the changing preferences of thepeople, retain its market share and also tosave itself from the declining stage of theProduct Life Cycle (PLC), on September3rd 2008, Coke offered to acquire HuiyuanJuice Ltd., a leading fresh fruit juice makerof China, for a premium price. Throughthis acquisition, Coke plans to diversify itsproduct portfolio to cater beverages todifferent segments of Chinese consumers,the country in which the huge size ofconsumer base provides a great potential.However, the fickle-mindedness of theChinese is a cause of concern for thecompany, as the life span of the beveragesquickly gets shorter in China. Nevertheless,the success of the deal ultimately depends

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on Coke’s mettle to go through the anti-monopoly law of China. Even if the dealgoes through the law, Coke has to face thelitmus test of its capability in not justretaining the consumers, but in proving itsmarket leadership as well.


• To examine the changing landscape ofthe soft beverage industry in China

• To understand the business dynamics ofCoke in China keeping in view thevarious stages in the life cycle of differentbeverages

• To assess Coke’s strategy in acquiringHuiyuan and the expected synergies ofthe deal.

Industry BeveragesReference No. MAA0182Year of Pub. 2009Teaching Note AvailableStruc.Assign. Available

Keywords

Coca-Cola, China, Beverages, Mergers andAcquisitions, Competitors, Synergies,Carbonated Drinks, Huiyuan Juice, Anti-monopoly law, Bottling, Joint Ventures,Product Life Cycle, Logistics, Distributionchannels, Pepsi

Delta-Northwest AirlinesProposed Merger: Withering

Industry Turbulence?Capping months of negotiations, US’ majorairlines – Delta Air Lines and NorthwestAirlines inched closer by finalising themerger deal. Battling against soaring fuelcosts and looming demand for air travel,the world’s largest carrier intends togenerate substantial revenues from scalebenefits and significantly reduce duplicatecosts. While their complementary routeshelp them gain a global footprint, sailingthrough antitrust approval amid labour andpilot unrest remains a challenge for boththe airlines. Further, the case also delvesdeep into issues such as – the trigger thatled to the merger drive between the two.In a consolidating and troubled industry,should mergers and acquisitions be dictatedby short-term interests or long-terminterests?


• To examine the nature, business and thecompetitive dynamics of airline industry

• To identify the factors that led totroubled times in the US airline industry

• To debate on the need for Delta AirLines to merge with Northwest Airlinesand the need for Northwest Airlines tobe acquired by Delta

• To analyse and debate on the possiblesynergies between Delta Air Lines andNorthwest Airlines

• In a consolidating and troubled industry,which is the ideal company to be takenover – a strong player or a weak player?

Industry Civil AviationReference No. MAA0181Year of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Global Civil Aviation; US Airlines;American Airlines; US Airways; UnitedAirlines; Mergers,Acquisitions,AlliancesCase Studies; Continental Airlines;Southwest Airlines; JetBlue; Low-costCarriers (LCCs); Consolidation; Fleetinefficiencies; Fuel prices; Open Skiestreaty; Competition; European carrierslike Air France-KLM

Cadbury Schweppes:Demerging its US Beverages

CompanyLondon-based Cadbury Schweppes Plc.(Cadbury), a confectionery and beveragescompany, has planned to demerge its USbeverages arm in the second quarter of2008. The decision of the company comesafter its investors expressed concern aboutthe company’s financial performancedespite loads of restructuring since 2003.While the top management and investorsare optimistic about the company’s move,the success of the strategy remains to beseen.


The case study will help the students tounderstand:

• This case study is aimed at MBA/PGDBAstudents and is intended to be a part ofthe business strategy curriculum

• The case study is so structured as to helpstudents understand about a demerger andits ideal timing

• Students are also expected to understandthe need of demerger for Cadbury

• This case study gives scope to discusswhether the timing is right for Cadburyto demerge.

Industry Confectionery & BeveragesReference No. MAA0180Year of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Cadbury; Beverages; Confectionery;Corporate image; Demerger; Decision;Spin-off; Diversification Strategies;

Bottling; Chocolate; Cost; Investment;Mergers, Acquisitions, Alliances CaseStudies; Growth; Loss

The Cerberus Deal – TheBeginning of a New Era for

ChryslerUS automobile giant, Chrysler had joinedhands with German automaker, Daimler –Benz in a much touted ‘Merger of Equals’in 1998. Shortly after, Chrysler sufferedsevere financial crisis and eventually boththe companies opted for a divorce.Daimler had been looking to offloadChrysler to a suitable proposer and inAugust 2007, sold 80.1% of its stock inChrysler to an American Private Equityfirm, Cerberus. Will Cerberus be able tobail Chrysler out of troubled waters?


• To study the dynamics of the US autoindustry

• To analyse the causes for the fall out ofMerger of equals

• To study the challenges faced by aPrivate firm in acquiring a Publiccompany.

Industry Auto IndustryReference No. MAA0179CYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

US auto Industry; Daimler Chrysler Merger;mergers of Unequals; unhappy marriage;Cereberus; Mergers, Acquisitions, AlliancesCase Studies; Chrysler; new Era; Prospectsand challenges

msnbc.com Acquires Newsvine:A New Direction

msnbc.com is a leader in breaking newsand in promoting original journalism.Started by Microsoft and NBC in the year1996 the website has functionedindependently and has been growingprofitably. msnbc.com was most popularfor its coverage of political news. Thepopularity of online news has continuedto expand, as readers, particularly theyounger generation is increasingly turningto the Internet for news. As competitionincreases, news sites like NYTimes.com,USAToday.com, ABCNews.com,msnbc.com and CNN.com are trying todistinguish themselves from others. Thesesites are competing against newsaggregators like Yahoo News and Google.With a view to expand its services in thebackground of these changes, msnbc.comacquired Newsvine, a participatory news



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site, on October 2007. It is msnbc.com’sfirst acquisition in its 11-year history.Newsvine’s acquisition is a new directionfor msnbc.com. How this acquisition wouldhelp improve the company’s competitiveedge remains to be seen.


• To analyse the nature of newsbroadcasting industry services

• To analyse the nature of competition inthe industry

• To analyse the strategy andcompetitiveness of msnbc.com

• To analyse msnbc.com’s acquisition ofNewsvine and how this acquisition helpsin improving its competitive edge.

Industry News Broadcasting IndustryReference No. MAA0178CYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

msnbc.com; Newsvine; News Broadcasting;Online News sites; Yahoo; Google; AOL;Mergers, Acquisitions, Alliances CaseStudies; Competition

eBay: Rethinking SkypeeBay, the online auction giant as part ofits expansion strategy, acquired Skype; apopular communication platform for $2.6billion. eBay’s CEO Meg Whitman hadexpected the acquisition to enhance theirbusiness. However eBay found itself facinga phase of diminishing returns and had towrite down Skype by $900 million. Thecase explores the rationale behind eBay’spurchase of Skype. It also analyses whythe synergies of the deal did not materializeas expected. The case study highlights theunrealised synergies of the acquisition.


• To comprehend the dynamics of onlinebusiness

• To grasp the concept of unrelatedproduct diversification

• To analyse how an integration strategyis vital for online businesses.

Industry Online AuctioneeringReference No. MAA0177CYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

eBay; Skype; PayPal; Mergers,Acquisitions, Alliances Case Studies;Unrelated product diversification;Positioning; Internet based businesses;

Acquisition; Integration; Synergies; OnlineBusiness

Tata Steel’s Acquisition of Corus:Was it Worth the Price?

During 2006–2007, the Indian steelindustry witnessed one of the biggestacquisitions. Tata Steel offered to buy theUK steel giant Corus. Finally, afternumerous rounds of bidding, Tata Steelbought Corus for $12.9 billion. The Corusacquisition moved Tata Steel’s position tothe sixth place among the world’s largeststeel producers. While the Indian industrylauded Tata Steel’s move, there was nationaldebate whether Tata Steel over paid forthe Corus acquisition. The supporters ofthe acquisition mentioned that there wereclear synergies between the two companies.Tata Steel also seemed to have long runbenefits from this acquisition.


The case study helps the studentsunderstand and analyse:

• The growth history and the marketspread of Tata Steel and Corus

• The reasons that promoted Tata Steelto acquire Corus

• The synergistic value between the twocompanies

• The long term benefits of the Tata-Corus deal

• Whether Tata overpaid for the Corusacquisition.

Industry Steel IndustryReference No. MAA0176BYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Tata Steel; Corus, Steel Manufacturing;Acquisition; Bid; Price; Expansion; Stake;Europe; Takeover; Mergers, Acquisitions,Alliances Case Study; Low-cost producer;Tata Group; Ratan Tata; Synergy;Combined Entity

Microsoft’s Bid for Yahoo! Inc:Corporate Valuation Dilemma

Yahoo! one of the leading internet portals,provided online services like news,information, and entertainment content.It also offered email, instant messaging andpersonalised web pages to its registeredmembers. Yahoo was experiencing lowgrowth in revenues for quite a number ofyears in a row. In February 2008, Microsoft,the world’s largest software companyoffered to buy Yahoo! Inc. for $44.6 billion,

or $31 per share in a cash and stock offer.But Yahoo rejected the offer terming it asinadequate. Microsoft later raised the bidto $33 per share, but Yahoo! rejected thisraised bid also. Subsequently, Microsoftwithdrew its bid. The case facilitatesdiscussion on the fair value of a share ofYahoo! The case also attempts to employvarious methods of financial valuation ofa firm. Apart from this, the case also pointsout the difference between the value of afirm as ‘a going concern’ and as ‘a targetfor acquisition’.


• To understand the concept of BusinessValuation

• To understand the difference betweenvalue of a firm as an independentbusiness, and as a target of acquisition.

Industry Online ServicesReference No. MAA0175AYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Microsoft Corp.; Yahoo!; Steve Ballmer;Jerry Yang; Mergers, Acquisitions, AlliancesCase Study; Valuation; Google; OnlineServices; Merger; Acquisition; AOL;Internet Advertisement; Free Cash Flowto Firm; FCFF

Jaguar and Land RoverAcquisition: Will the Deal

Improve Tata Motors BalanceSheet?

Ford Motors Limited (Ford), one of theworld’s leading automobile manufacturershad put its luxury brands Jaguar and LandRover, on the block. Tata Groupcompany’s automotive major Tata MotorsLimited (TML) was one of the top bidders.In March 2008, TML won the bid for $2.3billion. As per the deal, Ford committed toprovide Jaguar and Land Rover withvehicle components and access toengineering and technological support toTML. Apart from funding aspects of theacquisition, analysts wondered how TMLwould manage these luxury brands as it wasa well-known player in low to mid-endsegments. The deal pushed TML in thesegment where it had less experience. Thecase helps in discussing financialimplications of the deal on the balancesheet of TML and opportunities andchallenges for it, post acquisition.


• Offshore expansion through acquisition

• Financial impact on balance sheet ofTML

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• Post acquisition opportunities andchallenges for TML after JLR deal.

Industry Automobile IndustryReference No. MAA0174AYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Tata Motors Limited; Jaguar; Land Rover;Ford Motors, Mergers and Acquisitions;Product-line Synergies; CompetitiveScenario; Luxury Car Segment; Indian CarMarket; Financial Statement Analysis;Ratio Analysis; Tata Group; India’s AffluentMiddle Class; Auto Affordability in India;Mergers, Acquisitions, Alliances Case Study;Financial Performance of Tata Motors

Indian Billionaire Vijay Mallyaand Epic Aircraft – A Strategic

PartnershipPost September 11th 2001 terrorist attacksin US, the demand of Very Light Jets (VLJs)has been growing steadily, as businesstravellers did not prefer wasting time behindstrict check in formalities. Worldwide, thedemand for small aircraft was alsoincreasing because of increase in corporateprofits, personal wealth, booming in stockmarkets and innovation in aircrafttechnology. US-based Epic Aircraft (Epic),a subsidiary of Aircraft Investor ResourceLLC – manufactures small private andbusiness jet aircraft. With India emergingas one of the potential markets in theaviation business, on September 28th2007, Epic entered into strategicpartnership with Indian billionare, VijayMallya (Mallya). Mallya acquired 50%stake in Epic Aircraft with a personalinvestment worth $200 million. Despitethe aircraft manufacturing industryindicating a boom for the manufacturingof small jet aircraft, it still remained aquestion if it will be able to fuel the demandin this segment.


• To understand the concept of strategicpartnerships as a key to businessexpansion

• To analyse the potential for smallaircraft manufacturing industry indeveloping markets like India

• To discuss the growth drivers and demandfactors of VLJs in India

• To understand the pros and cons ofstrategic alliances

• To deliberate the discussion on who gainsin such strategic alliances and theirfeasibility in the long run.

Industry Aircraft ManufacturingIndustry

Reference No. MAA0173AYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Aircraft Manufacturing Industry; VeryLight Jets (VLJs); Mergers, Acquisitions,Alliances Case Study; Small Aircraft; EpicAircraft; Indian Aviation Market;Kingfisher Airlines; Strategic Partnership;Vijay Mallya; Demand for Small Aircraft;Business Jets; Innovation in AircraftTechnology; Low Cost Carriers (LCCs);Competition

Delta-Northwest Merger: USAirlines’ Consolidation Moves

The airlines in the US were facingtremendous pressure on their profit marginsdue to a rapid rise in fuel prices. Apartfrom the fuel prices, the airlines had tocombat changing industry structure becauseof rising dominance of low-cost airlinesand entry of new foreign airlines into theUS market. Delta Air Lines, the third largestairline in the US in terms of revenue in2006, and Northwest Airlines, the 6thlargest airline, announced their intentionto merge in order to combat this situation.However, the pilot union at Northwestopposed the move. The case highlights therationale of the merger in the givensituation, and the challenges that thecombined entity would have to face in thepost merger integration in the wake of thedynamic competitive scenario in the USairline industry.


• To understand the dynamics of airlineindustry

• To understand the competitivechallenges for the combined entity inpost-merger integration.

Industry Airline IndustryReference No. MAA0172AYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Delta Aitlines, Northwest Airlines, IndustryConsolidation, Merger, Post-mergerIntegration, Mergers, Acquisitions,Alliances Case Study; US Airline Industry,Richard Anderson, Douglas Steenland, FuelPrice, Competitive Dynamics, Low-costAirlines

Strategic Alliances in theAutomobile Industry (C): The

Fiat-GM AllianceLast in the 3 part case series on strategicalliances in the automobile industry, thiscase study dwells on the Fiat’s and GM’slife after the alliance. While normalcyreturned with ease at GM, as the USbehemoth continued with its customaryoperations, Fiat exhibited vivacity byentering into a number of collaborativeventures - termed as ‘targeted alliances’ –with automakers from various countries,especially from the developing countries.Though the company tried to project thealliances as ‘business-as-usual’, experts saythat it manifests its wretched conditionand need for support of other companiesto survive. This case helps analyse howsuch deals would help the companysustaining the fierce competition andwithstand its financial losses. Could thecompany find an apt partner in any of itsnew allies? Can any alliance tick for long?How far can Fiat stand on the support ofother companies?


• The case study is meant to help debatehow far new alliances formed at the wakeof the collapse of one alliance wouldhelp the company's cause. The case alsohelps discuss hat necessary steps for acompany to ensure that its desperatenessshould not engulf business logic.

Industry Automobile IndustryReference No. MAA0171Year of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Alliances in global automobile industry;Fiat-GM Alliance; Cross-borderconsolidation; Ford-Fiat alliance; Tata-FiatAlliance; Fiat and targeted alliances; Fiatin Europe; Negotiations in automotiveindustry; Mergers, Acquisitions, AlliancesCase Study; Fiat in Italy

Strategic Alliances in theAutomobile Industry (B): The

Fiat-GM AllianceThis is the second in the 3 part case serieson strategic alliances in automobileindustry. This case exemplifies howalliances can break up even when they areachieving the desired objectives. The Fiat-GM alliance was focused on costminimization, by reducing redundancies inprimary cost components vis-à-vispurchases and manufacturing processes.The alliance was doing well to this end andit resulted in more-than-perceived savings





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for both the companies. However,negative developments in both thecompanies – independent to the alliance -have unfortunately resulted in a situation,where neither Fiat nor GM was willing tocarry forward the alliance. This case studyhelps a debate if the companies were correctin terminating the properly functioningalliance. Did the companies end up takingan emotional call over a business decision?Was there no way that the companiescould keep the alliance alive? If that wasthe case, was entering into the allianceitself a mistake? If so, who was at fault –GM or Fiat?


• The case study is meant to help analysethe developments in the partneringcompanies that could result in callingoff even the well-working alliances,even when such developments havenothing to do with the functioning ofthe alliance.


Keywords

Alliances in global automobile industry;Fiat-GM Alliance; Cross-borderconsolidation; Agnelli Family; Mergers,Acquisitions, Alliances Case Study; Fiatrestructuring; put option; GM in Europe;Fiat in Europe; Big Three of Detroit; USautomobile industry; Strategic InflectionPoints in automotive industry;Negotiations in automotive industry

Strategic Alliances in theAutomobile Industry (A): The

Fiat-GM Alliance‘Nothing is permanent but for change.’This adage holds good even for the industry– responsible for umpteen number of socio-economic changes in the modern societies– called industry of industries, theautomobile industry. But, the changingtimes forced the global auto-industry tomaster newer tips for its survival. Duringthe 1980s and early 1990s, the auto-industry shrunk, from a horde ofindependent companies, into a handful ofglobal consortiums fiercely competing witheach other. Immediate need to cut costsand intensifying price wars madecarmakers align with each other (insteadof competing) – for gaining access totechnology and markets and to achieveeconomies of scale. In this milieu, theimportance has shifted from capitalintensive and risky mergers andacquisitions, to strategic alliances like theone formed by Fiat and GM. Some of these

collaborations are by choice while othersare by force like the Fiat-GM Alliance. Thiscase study, first in the series of 3 cases,enables a discussion over the conditionsthat led to the formation of the alliance.It helps analyse the nature of the allianceand debate whether it was rneeded, in thefirst place, and how far it could endure.Does the alliance have the required steamto reward the partners? Was thepartnership a result of mutual respect notsacrificing one side for the other?


• The case is meant to provoke analysesamong students to understand the processof forming an alliance and the criticalsuccess factors for doing so.


Keywords

Alliances in global automobile industry;Fiat-GM Alliance; Cross-borderconsolidation; Price wars; Mergers,Acquisitions, Alliances Case Study; overcapacity; GM in global car industry;Emerging trends in automobile industry;Big Three of Detroit; US automobileindustry; Strategic Inflection Points inautomotive industry; Critical SuccessFactors in automotive industry

Google vs Baidu.com (D):Google's Alliance Strategy in

ChinaGoogle after an unsuccessful stint in Chinahas changed its approach by opening anoffice there, hiring a local to headoperations and offering a censored versionof its site in January 2006. The company,to increase market share, is taking the routeof alliances with the major telecom andInternet operators in China and is alsoadding new services to its Chinese portfolio.Meanwhile, Google's nemesis in China –Baidu.com – is also not lying low and isbecoming stronger. The company on thestrength of its market share in China, ranksthird worldwide. It too is forming allianceswith multinationals struggling to find afoothold in China. The company has addeda whole gamut of products to its offering.This case, the fourth in the series, Googlevs Baidu.com, takes off from when Googlestarts its censored Chinese language site.The reasons for this are discussed briefly.Focus is on the strategies of the top twoplayers, Baidu and Google, to win a largermarket share in China. The caseexhaustively details each player's strategyand the reasons for it. It facilitates adiscussion on the results of their respective

strategies. It sums up with leaving thereaders to discuss who has gained in theongoing battle. Has Google managed to finda place in China or are there issues thatstill need to be addressed?



• The search engine market scene in Chinaand why the international companies arefinding it difficult to crack

• What strategies can companies followfor growth

• Advantages and disadvantages ofalliances as a growth strategy in theChinese Internet search space.


Reference No. MAA0168Year of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Google; Baidu.com; China's Search EngineMarket; Business Model; Globalisation andLocalisation; CAGE Frame Work; AllianceStrategies; Acquisitions and Partnerships;Chinese Google; Government BusinessEnvironment; Internet Censorship;Mergers, Acquisitions, Alliances Case Study;Online Advertising; International Business;Legal Environment and Regulations

Philip Morris USA and PhilipMorris International: The Spin-off

DecisionThe world's largest tobacco giant, Altria,plans to spin off its international tobaccodivision, Philip Morris International(PMI) by March 2008. The company willthereby operate from its headquarters inSwitzerland. The spin-off was plannedbecause of tobacco litigations and anti-tobacco groups in US, and dwindlingsmoking population there. While thecompany is optimistic about the growthopportunities after the spin-off, healthgroups all over the world are concernedover the company's public healthcommitments.


The case study can help the studentsunderstand:

• Spin-off, its significance, merits anddemerits

• Why PMI is going for a spin-off?

• The sustainability of an independentPMI.

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Industry TobaccoReference No. MAA0167Year of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Philip Morris; Marlboro; Mergers,Acquisitions, Alliances Case Study; tobaccoindustry; Anti-smoking campaigns;Corporate image; The Altria Group;Tobacco lawsuits; Spin-off; DiversificationStrategies

Whole Foods Market'sAcquisition of 'Wild Oats' – A

Strategy to ReduceCompetition?

Whole Foods Market (WFM) and WildOats were major players in the highlycompetitive US organic food industry. In amuch-speculated move, WFM acquiredWild Oats in September 2007. Many voicedthe opinion that the acquisition may resultin a monopolistic situation wherein WFMwould control majority of the market. Theacquisition was, however, seen by expertsas an expansion strategy of WFM ratherthan one to reduce competition in theorganic foods industry. The case focuseson the competition prevalent in theorganic food industry, the trends andcustomer preferences of the same. The casealso looks at the synergy and prospects ofthe acquisition.


• To comprehend the strategies of globalplayers in the organic food industry

• Acquisition as a strategy to reducecompetition

• Prospects and challenges in Merger ofEquals (MoE).

Industry Organic FoodReference No. MAA0166CYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Organic food; Whole Foods Market; WildOats; Acquisition Strategy; Future ofOrganic food Industry; MarketSegmentation; Pricing Strategy; Mergers,Acquisitions, Alliances Case Study;Distribution strategy

Thomson Corp., AcquiresReuters: Is it in the Consolidation

Phase?Market data plays an indispensable role insuccessful business activities and the market

data industry enjoys a global presence.Catering mainly to the needs ofinstitutional and retail brokers, the industryis dominated by a few major players –Bloomberg L.P., Reuters Group Plc andThomson Corporation. The new entrantsinto the industry are stock exchanges – amajor source of direct data. Since the1980s, the market data industry has beenexperiencing a wave of mergers andacquisitions. The major breakthrough is theproposed acquisition of Reuters Group Plcby Thomson Corporation worth $17.2billion, on May 15th 2007. The deal isexpected to displace the market leader,Bloomberg L.P. The case, while enablingan understanding of the market dataindustry, facilitates discussion on how theacquisition would impact the businessdynamics of this industry.


• The business dynamics of the marketdata industry

• The competitiveness and businesslifecycle of a market data provider.

Industry Market Data IndustryReference No. MAA0165CYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Thomson Corporation; Reuters;Bloomberg; Mergers, Acquisitions,Alliances Case Study; Consolidation Phase;Industry Dynamics; Business Dynamics;Business Strategy; Business Environment

M&A's in Indian Aviation Industry– Strategies for Healthy

CompetitionSince 2000 Indian aviation industry hasbeen recording steady growth. The role ofthe private airline sector has become verysignificant with the increase in domesticair traffic and the increased purchasingpower of the growing middle-class. Thearrival of LCCs (Low Cost Carriers)revolutionised Indian aviation industry andair travel hit an all-time-high. As moreand more players arrived at the aviationscene the competition grew. Heavy price-cuts and discount offers against a backgroundof rising operational costs proveddetrimental, with almost every airlinerreporting huge losses. The industry, takingcue from the global developments, movedtowards consolidation of stakes so as toscale down excess competition. Manymergers and acquisitions took place whichmay result in significant synergies in theindustry. This strategy to tie-up with thecompetitor rather than bleed millions byway of losses is seen as an exemplary movetowards healthy competition. The

opportunities as well as the challenges thesemergers bring to the aviation industry is tobe seen. And the question that needs to beaddressed is - Will the growth of the IndianAviation Industry sustain?


• To understand the dynamics of Indianaviation industry

• To analyse the impact of rise of LCC'sin aviation industry

• To analyse the consolidation initiativeswithin the Indian aviation industry tocombat unhealthy competition

• To analyse the synergies that can begained through consolidation

• To analyse the challenges that theindustry may face in the future.

Industry AviationReference No. MAA0164CYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Indian Aviation; Consolidation; Mergers &Acquisitions; Competitive strategies; Lowcost carriers; Civil Aviation; Airlinecompanies; Indian airlines; Deregulation;Mergers, Acquisitions, Alliances Case Study;Jet Airways; AirDeccan; KingfisherAirlines; Air Sahara

Blockbuster Acquires Movielink:A Growth Strategy?

Blockbuster Inc. is a leading global providerof in-home movie and gameentertainment. The video rental markethas had a transition from store-based videorentals to online video rentals. To tacklethe changes, Blockbuster implementedvarious initiatives to regenerate theactivities of the company and enhancedthe organisational structure so as toimprove profitability. In August 2004,Blockbuster introduced an online DVDrental service in the US to compete withthe established market leader, Netflix. In amove to further provide customers witheven more convenient access to homeentertainment, in August 2007, Blockbusteracquired Movielink – one of the leadingmovie downloading services. Blockbusteracknowledged that the acquisition was adefensive move to keep up with Netflix inthe competitive online video rentalmarket. The case allows for discussion onhow this acquisition will give a competitiveedge to Blockbuster.


• To understand the potential market forvideo rentals





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• To analyse the market position ofBlockbuster in the video rental market

• To analyse the rationale behind theacquisition of Movielink by Blockbuster

• To analyse whether the acquisition wouldhelp Blockbuster to improve its revenuesin the market.

Industry Movie Rental ServiceReference No. MAA0163CYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Blockbuster; Video Rental; Online DVDRental; Movie Download; Mergers,Acquisitions, Alliances Case Study; GrowthStrategy; Movielink; Video Rental Market;Acquisition ; Business Model

BBC – YouTube Pact: A Win-WinStrategy

New trends have appeared in the mediaindustry and it has been inundated with newtechnologies catering mainly to the youngaudience. The media and entertainmentindustry is characterised by the growth ofvariety of edufotainment (education,information, entertainment) programmes.This led to the synergy of video sharingwebsites and international broadcasters.BBC, one of the leading, credibleinternational broadcasters, struck a deal onMarch 2nd 2007 with YouTube, theGoogle-owned video sharing portal.According to the deal, three channels werecreated 'BBC Worldwide', 'BBC', and 'BBCNews' to showcase short clips of the BBCprogrammes content on the YouTube site.The deal was expected to benefit both BBCand YouTube. The case provides room fordiscussion on the impact of the deal andthe opportunities and threats faced byvideo sharing websites.


• To understand the changing scenario inthe media industry

• To discuss the evolution inedufotainment programmes

• To analyse the challenges andopportunities of the BBC-YouTube deal

• To discuss the scope and future of web2.0 companies.

Industry MediaReference No. MAA0162CYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

BBC; YouTube; Entertainment and MediaIndustry; strategy; Convergence;

Digitalisation; Win-Win Strategy;Mergers, Acquisitions, Alliances Case Study;Broadcasting; Social Networking

Hewlett-Packard: CultureChange through Acquisitions

Hewlett-Packard (HP) grew to be a leadingtechnology solutions provider in the1990s. It attributed its growth to the uniqueculture that the company had fostered –'The HP Way'. Analysts and employees atHP strongly felt that the firm evolved tobe one of the best performing companiesin the Silicon Valley due to the managementstance that the HP Way reflected.However, with changing rationale of itsoperating market, marketers and managersbegan to be skeptical about HP's efficiencyto retain its market position. Theyanticipated that the HP Way might be amisfit to tackle aspects like, increasingcompetition in Silicon Valley and theexpected downturn in the software industryduring the late 1990s. Managers at HP feltthat there is a need to alter the HP'sengineer focused R&D strategy. This ledto a different growth approach throughmergers and acquisitions. The approachgradually led to a culture change withinHP. Its inherent culture was slowly butsurely getting infused into the culture ofthe acquired companies. HP embraced thedominant features of the acquiredcompanies. But HP's existing employeesand ex-employees resented the culturechange. Employees did not want the HPWay to change as it was consideredreligious by them. However it remains tobe seen if HP will convince its employeesabout the benefits of the new culture. Onthe other hand, time will tell, if the HP'sstrategy to learn through acquisitions andmergers will succeed in the long-term.


The case study provides insights tounderstand and analyse:

• The significance of organisationalculture

• Impact of organisational culture on theperformance of a company

• Effect of mergers and acquisitions onthe organisational culture of a firm

• Whether mergers and acquisitions willwork for HP in long run.

Industry SoftwareReference No. MAA0161BYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

HP; Hewlett Packard; OrganisationCulture; Silicon Valley;

Mergers,Acquisitions,Alliances Case Study;Co-founders; Acquisitions; Mergers;innovation via absorption; HP Way;Tabblo; Voodoo; HP-Compaq merger;Compaq; Employee Satisfaction;Management By Objectives

Microsoft in China: ThePartnering Success

Chinese people are more price sensitiveand using illegal software on a large scale.The country had huge plants that churnedout some 54 million illegal softwarepackages each year. This treacherousenvironment was an obstacle forMicrosoft's success. After stumbling foryears in its earlier approaches to theChinese market, Microsoft hired Tim Chenas head of Microsoft's Chinese business forthe revival. Chen initiated several effortslike building good relation withGovernment, partnership with localcompanies, slashing the price of itsOperating System (OS), educating andtraining people. However industry analystsdoubted Microsoft's success in China. Thiscase study explores strategies used toovercome the challenges faced by an MNCin China.


• The importance of developingeconomies to MNCs

• The challenges in bureaucraticdeveloping economies

• Analyse strategies adopted by Microsoftin China.

Industry SoftwareReference No. MAA0160BYear of Pub. 2008Teaching Note AvailableStruc.Assign. Available

Keywords

Illegal software; Tim Chen; Linux; China;54 million illegal software; Joint venture;Training; open source code; price; Mergers,Acquisitions, Alliances Case Study; counterstrategy; R&D; Vista; Lenovo;shareholders; turnaround

China Eastern Airlines:Shanghai's Last Samurai?

With a backdrop of regulatory economicconditions in China, the case study presentsthe restructuring initiatives of its civilaviation industry in different phases.Growing liberalisation and deregulation inthe global airline industry, coupled withChina's entry into WTO opened the gatesto foreign competition. Entry of foreigncarriers intensified competition in theindustry and domestic carriers began to lose

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their market share to foreign rivals.Infrastructural and industrial constraintsadded to the existing woes and restrictedthe growth and profitability of the domesticcarriers. One such carrier rattled by thehighly protected and regulated conditionswas China Eastern Airlines (CEA). Saddledwith debt and restructuring problems, CEAwas bleeding cash and was looking forprivate investment, which would not onlyprovide financial assistance but alsoimprove operational efficiencies. Twoimportant contenders competing for asignificant stake in CEA were – SingaporeAirlines (SIA) – Temasek and Air China-Cathay Pacific. While SIA would benefitfrom the booming aviation market inChina, SIA's proven success may helpCEA's revival. However, Air China tries totrump the deal. Given this scenario, shouldCEA invite foreign investment to improveits efficiencies or should it restructure itscapital and operational base by mergingwith the domestic Air China?


• To discuss the developments in China'scivil aviation industry and theirimplications on domestic and foreigncarriers

• To assess the competitive dynamics ofChina's civil aviation industry, amidincreasing liberalisation

• To evaluate CEA's business model andthe possible factors that contributed toits failure to sustain growth

• To analyse the critical aspects – likecost controls, profitability and growth– of companies operating in a protectedand restricted economy

• To assess CEA's growth options amidintense competition from domestic andforeign rivals.Players and structure ofthe US subprime mortgage industry

• Benefits and issues surrounding thesubprime mortgage market.

Industry Civil AviationReference No. MAA0159Year of Pub. 2007Teaching Note AvailableStruc.Assign. Available

Keywords

Air China; China Southern Airlines;Dragonair; Cathay Pacific; SingaporeAirlines; Civil Aviation Administration ofChina (CAAC); Load Factor and CapacityUtilisation; Code-sharing Agreements;Mergers, Acquisitions, Alliances Case Study;Foreign Strategic Investment; Competitionin Chinese Aviation Industry; FinancialCrunch, Industrial Constraints; AircraftManufacturing; Airline Inefficiencies;Beijing; Shanghai and Guangzhou

Boeing vs Northrop Grumman-Airbus Bid for USAF: Is it a Battle

over Refuelling Tankers?In March 2007, Boeing and an alliance ofUS’ Northrop Grumman and Europe’sAirbus bid to secure a $40 billion contractto replace United States Air Forces’ (USAF)air refuelling tankers. The bid raised variousconcerns which included sentiments likeUS taxpayer’s money flowing to Airbus,arming it to compete more aggressivelywith Boeing in the US and othercommercial airplane markets. Americanpolitical supporters of Airbus, mostly fromthe state of Alabama, where Airbus hadpromised to build two aircraftmanufacturing plants, said that the Airbus’tanker aircrafts should be encouraged sincean international competitor would bringmore value to the bid. Anticipating thatAirbus would bring more jobs and expertiseto the state, the state extended incentivesupport to Airbus

Observers felt that the fight for the totalbid between Boeing and Airbus is muchmore complex than supplying the refuellingtankers.


• To analyse Boeing as a national pride ofUS

• To analyse the role of governments indefense bidding

• To analyse issues like national sentimentson foreign participation in defense deals.

Industry Aviation IndustryReference No. MAA0158CYear of Pub. 2007Teaching Note AvailableStruc.Assign. Available

Keywords

Refuelling Tanker Bid for US Air Force;Boeing KC 767; Airbus KC 30 MRTT;Northrop Grumman; EADS North America;Mergers, Acquisitions, Alliances Case Study;KC 135 Stratotanker; Druyun Scandal onTanker Procurement; Boom andReceptacle Fuelling; Hose and DrogueFuelling; Launch Aid; USAF’s Request forProposals; Load and Fuel carrying capabilityof Tankers; Incentive Funds; Lobbying inUS Defense Contracts; Airbus’ Plants inAlabama

Why Daimler Sold Chrysler?Daimler Benz AG, one of the leadingGerman automobile manufacturers andChrysler Corporation of US joined handsin a transnational merger in 1998 for $36billion. Daimler Benz, expected to gainaccess to North American markets throughthis deal while Chrysler hoped that it can

come out of its losses and pursue globalexpansion. But, the relationship betweenthe two went sour due to differences inmanagerial decision-making andorganisational culture. Apart fromdifficulties in achieving synergies, Chryslersuffered further loss in 2000. Chrysler againincurred losses in 2003 and in 2006. In thewake of losing market share and stockprices, Daimler started looking for astrategic partner or a probable buyer toturnaround Chrysler units in America.


• To analyse Merger dynamics

• To analyse Factors influencing successfulmergers

• To discuss Global trends in automobileindustry (US in particular).

Industry Automobile IndustryReference No. MAA0157CYear of Pub. 2007Teaching Note AvailableStruc.Assign. Available

Keywords

Daimler Chrysler Merger; US AutomobileIndustry; Transplant Operations; Toyota;Big 3; Mercedes Benz; ManagementCulture; Cerberus Capital; Mergers,Acquisitions, Alliances Case Study;Crossover vehicles; SUVs; Dieter Zetsche;Juergen Scrempp; Toyota Prius; JohnSnow; United Automobile Workers

Renault-Nissan-Mahindra: TheStrategic Partnership for Growth

In the late 1990's, the global automakerswere motivated by the synergies acquiredthrough alliances to form partnershipsacross the world. India became renownedfor its low-cost, qualified, skilled workforceand overall infrastructure facilities. Manymultinational auto giants like Fiat, Honda,Suzuki, Renault, etc formed alliances withIndian companies. On February 26th 2007,the first three-way alliance in theautomobile industry was formed by France’sRenault, Japan’s Nissan and Mahindra andMahindra of India. The purpose of thealliance was to facilitate the establishmentof a $902 million greenfield automobileplant in Chennai, India. The uniqueness ofthis alliance is that it will set up themanufacturing facility at a single locationto manufacture utility vehicles and carsfor all the three partners under theirrespective brand names. It would be India'sbiggest vehicle manufacturing facility.

This case facilitates discussion on theopportunities and challenges that the uniquethree-way alliance will face in the emergingauto market of India.




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• To understand the dynamics of theIndian automobile industry

• To discuss the uniqueness of the Renault-Nissan-Mahindra alliance

• To analyse the opportunities andchallenges of the three-way alliance inthe emerging auto market of India.

Industry Indian Automobile IndustryReference No. MAA0156CYear of Pub. 2007Teaching Note AvailableStruc.Assign. Available

Keywords

Three-way Auto Alliance; InternationalConsortium; Renault-Nissan-M&M;Synergies of Auto Alliances; IndianAutomobile Industry; Global auto alliances;India's biggest vehicle manufacturingcentre; Mahindra Renault; Mergers,Acquisitions, Alliances Case Study;Passenger cars/ Tractors; StrategicAlliance/ Joint Venture; The StrategicAlliance: Opportunities; The StrategicAlliance; Global automakers; Greenfieldautomobile Plant; Auto Alliances in India

Consolidation in Global SteelIndustry: What Lies Ahead

Since the mid-1990s, the global steelindustry had exhibited a brisk and impressivepace of restructuring and consolidation. Aspate of mergers and acquisitions hadcharacterised the steel sector. It wasestimated that by the end of 2006, the topten steel producers represented about 28%of the global production. The share wasexpected to rise up to 35% in 2010,implying only three-four players producingmore than 80 million tons, and five-sixplayers producing between 40-50 milliontons. The key drivers behind theconsolidation of steel industry includedreduced overcapacity, cost control, betternegotiation, and better management of thebalance between demand and supply as thelarger the producers were, the more theywere able to adapt production fluctuationsin demand. It was further believed that theglobal consolidation would continue to bea factor shaping the steel industry resultingin greater discipline in it. However, someanalysts were skeptical about the overallimplications of the consolidation on thesteel industry. Many concerns were raisedabout the consolidation wave such as “Isbigger necessarily better?”

The case discusses the consolidation in theglobal steel industry, major trends ofconsolidation and the key drivers behindit. The case also highlights issues such as,is bigger necessarily better? What are thelikely future trends in the steel industry?


• An outlook of global steel industry

• Mergers and acquisitions in the globalsteel industry

• The factors behind consolidation.

Industry SteelReference No. MAA0155KYear of Pub. 2007Teaching Note AvailableStruc.Assign. Available

Keywords

Consolidation; Steel Industrydevelopment; steel Production; TotalShareholder Return; Value Chain; Arcelor-Mittal; Baosteel; Mergers, Acquisitions,Alliances Case Study; Fragmentation;Cyclicality; Investment Trap; Global SteelIndustry; Regional Champions; NicheSpecialists; Global Player; Steel Cycle

Will the Merger BetweenMyTravel and Thomas Cook

Payoff?On February 12th 2007, Thomas CookAG, a tourism subsidiary of German retailerKarstadtQuelle announced a merger withMyTravel Group plc. The merger was inresponse to a decline in the Europeanvacation travel business growth. Themerger intended to arrest the decline andgain over the top company in the business,Touristik Union International (TUI). But,TUI in reply announced a merger with FirstChoice Holidays of UK, to defend itsposition as the leading European travelfirm.


• The strategic rationale behind mergerand acquisitions

• The competitive landscape of theEuropean Tour Operating Industry

• Thomas Cook’s market capturingstrategies

• Whether the merger will pay-off forThomas Cook.

Industry Tour Operating IndustryReference No. MAA0154BYear of Pub. 2007Teaching Note AvailableStruc.Assign. Available

Keywords

Thomas Cook AG; MyTravel; TUI; FirstChoice; Mergers,Acquisitions,AlliancesCase Study; European Tour OperatingIndustry; Merger; KarstadtQuelle; Tourism;Travel Business; Regional Diversification;Aircrafts; Germany; UK; Europe; Debt-for-equity

P&G and Gillette’s Merger: OralCare Products (Brands)Integration Challenges

Acquiring Gillette for $57 billion helpedP&G become world's biggest consumergoods company. However, this milled P&Ginto problems. Prominent among them wasintegrating the oral care divisions of bothcompanies – particularly its Cresttoothpaste brand with Gillette's Oral-Btoothbrush brand. To complete thetransition successfully, and also resolve allbrand integration problems, P&Gappointed Gilette's oral care presidentBruce Cleverly as integration manager.This case study helps discuss integrationproblems and possible solutions; mosthelpful in a Mergers and Acquisitions course,to understand the post-merger integrationchallenges.


• The case is structured to help studentsunderstand:

• Critical success factors in a successfulmerger

• Integration challenges in mergers

• Brand integration challenges

• Successful merger story of P&G andGillette.

Industry FMCGReference No. MAA0153Year of Pub. 2007Teaching Note AvailableStruc.Assign. Available

Keywords

Personal care products; Mergers andacquisitions; Integration challenges; BrandIntegration; Branding; Branding challenges;Procter and Gamble; Mergers, Acquisitions,Alliances Case Study; Gillette; Brandbuilding in consumer goods; Oral caremarket in the US; Starbucks in Ireland

DaimlerChrysler: Time for a Spin-off?

The case study is about the US basedoperations of the auto companyDaimlerChrysler.

DaimlerChrysler group is one of the largestvehicle manufacturers in the world. It is aleading supplier of passenger cars, sport-utility vehicles (SUVs), minivans and pick-ups and commercial vehicles. Thecompany came into existence with themerger of Germany based Daimler-Benzand the US based Chrysler Corporation (in1998) was finding it difficult to integrateGerman and American cultures and toleverage each other’s strengths fully andgo-to-market as a cohesive unit.

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In 2006, the Chrysler Group division ofDaimlerChrysler was facing a difficultmarket environment in the United Stateswith excess inventory, non-competitivecosts for employees and retirees,continuing high fuel prices and a strongershift in demand toward smaller vehicles. Itrecorded a loss of $1.4 billion for the thirdquarter of 2006.

The case discusses reasons behindDaimlerChrysler’s problems in the US andthe turnaround initiatives launched by itsparent company in 2006.


• The case focuses on theDaimlerChrysler Company, a mergedentity of Germany based Daimler-Benzand the US based Chrysler Corporation

• It evaluates the difficulties faced by theparent company in integrating the twocompanies

• The case also evaluates the strategiesand the new business models adopted bycompany.

Industry AutomobileReference No. MAA0152PYear of Pub. 2007Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Auto cos.Daimler and Chrysler's mergerin1998; synergies in the merger; problemsfaced by the company after merger; USauti industry; US big three:GM Ford DaimlerChrysler; japanese competiton in US;recession in US economy and autoindustry; turnaround initiative by chairmanDieter Zetsche; reduction in inventorie;chrysler group optimization programme;new environmentally friendly vehiclelaunches by the company

Vivendi’s Acquisition ofBertelsmann’s BMG

On September 7, 2006, Universal MusicGroup of Vivendi, a French conglomerate,won the deal to acquire German mediacompany Bertelsmann AG’s BMG MusicPublishing Group for $2.09 billion, beatingthe other majors such as Warner MusicGroup Corporation, Viacom Inc. and EMIGroup PLC. Vivendi SA’s Universal MusicGroup was already the biggest recordedmusic company and the fourth largestmusic publishing company in the world.The acquisition is expected to make theUniversal Music group the largest musicpublisher by catalogue size. Analysts havepredicted that the share of Universal MusicGroup in the music publishing marketwould rise from 12% to 20% with the BMGPublishing purchase. The case, while

exploring the operation structure andrevenue streams of the music industry,analyses the expected synergy between thetwo companies and its possible challenges.


• To understand the US music industry

• To understand the business models ofBMG Music Publishing Group andVivendi, the world’s largest musicrecording company

• To analyse the factors propelling theacquisition of BMG by Vivendi

• To discuss and debate the future prospectsand challenges of the deal.

Industry MusicReference No. MAA0151KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Music industry; Big four music companies(Warner Music Group (WMG), EMI, SonyMusic, Bertelsmann Music Group (BMG);Warner/Chappel Music; Sony-BMG merger;AOL-Time Warner; Vivendi Universal;Performing right societies; Musicpublishing; Record companies

Univision: Making the RightChoice?

On September 27, 2006, the UnitedNation’s largest Spanish-languagebroadcaster, Univision CommunicationsInc. announced a buyout offer by aconsortium of investors including MadisonDearborn Partners, Providence EquityPartners, Texas Pacific Group, Thomas H.Lee Partners and media mogul Haim Saban.The deal was priced at $36.25 a share incash or a total of approximately $13.7bincluding the assumption of $1.4b in debt.The deal was expected to close in the springof 2007, subject to regulatory approvalsand customary closing conditions.Televisa, the world’s largest Spanish-language broadcaster had also shown itsinterest in Univision and had placed anoffer of $35.75 per share. The Televisagroup was backed by Venezuelan mediainvestor Gustavos Cisneros, Bain Capital,Blackstone Group, Carlyle Group, CascadeInvestment and Kohlberg Kravis Roberts.Analysts were expecting Televisa as thewinner because Televisa was providingUnivision’s top programming through alicensing agreement, which generatedabout 40% of Univision’s revenue. Theagreement was expected to go through2017. Moreover, Televisa had a 12.5%stake in Univision. But the deal turnedtowards the consortium led by privateequity firms and media mogul Haim Saban.

The case would explore whether Univisiontook the decision of a buyout only to raisethe value of its share as analysts pointedout, in particular and the increasing trendof merger and acquisition in the mediaindustry in general.


• The Spanish broadcasting industry inAmerica

• To understand the business model andoperation of Univision, the largestSpanish-language media company in theUnited States

• To understand the business model andoperation of the private equitycompanies, the Saban Capital, MadisonDearborn Partners, Providence EquityPartners, Texas Pacific Group, ThomasH. Lee Partners

• To debate and analyse the potentialsynergies and challenges arising out ofthe deal.

Industry MediaReference No. MAA0150KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Univision Communications Inc; Televisa;Madison Dearborn Partners; ProvidenceEquity Partners; Texas Pacific Group;Thomas H Lee Partners; Haim Saban;Private equity; Bain Capital; KKR(Kohlberg Kravis Roberts); Spanishbroadcasting in America; NBC; ABC; CBS;Leveraged buyout

The Rise of Private Equity Firms:The Case of Clear Channel

Communications Inc.On November 16, 2006, Clear ChannelCommunications Inc., the biggest US radiostation owner agreed to be acquired for$18.7 billion by an investor group led byThomas H. Lee Partners LP and BainCapital Partners LLC. The media giantplanned to sell 448 of its radio stations, alllocated outside the top 100 markets as wellas its 42-station television group, locatedin smaller markets. Collectively, theproperties made up less than 10% of thecompany’s revenues in 2005. ClearChannel owned and operated 1150 radiostations and also retained a majority stakein Clear Channel Outdoor, the worldwideoutdoor advertising specialists. Under theterms of the deal Thomas H. Lee PartnersLP and Bain Capital Partners LLC wouldassume $8 billion of Clear ChannelCommunication’s debt, taking the overalltakeover price to $26.7 billion. Theinvestment group had competition from




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another consortium made up ofProvidence Equity Partners, BlackstoneGroup and Kohlberg Kravis Roberts (KKR).According to some analysts, thetremendous long-term growthopportunities of Clear ChannelCommunications in both the radio andoutdoor business would create value for theprivate equity groups. The case will presentthe buyout history and the synergies arisingfrom the acquisition for both the groups.The case further deals with the emergenceof private equity firms as the ‘maverickinvestors’ and the recent flush of mergersand acquisitions by them.


• To understand the US radio industry

• To understand the business model ofClear Channel Communications Inc., thelargest radio station company in UnitedStates

• To understand the rise and dominanceof the private equity companies globally

• To discuss and analyse the potentialsynergies and challenges arising out ofthe deal.

Industry Diversified InvestmentReference No. MAA0149KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Clear Channel Communications Inc;Private equity; Bain Capital Partners LP;Thomas H Lee Partners LP; HCA(Hospital Corporation of America);Sungard Data System; US radio industry;Podcast; Digital broadcasting; Highdefinition; Snapple Beverage Group;Mezzanine capital; Leveraged buyout;Telecommunications Act 1996; CBSOutdoor

The Battle for UnivisionTelevisa, the Spanish-language media giantand Mexico’s biggest media company hadmade a bid for $13 billion or $36.25 ashare for Univision Communication, thethird largest Spanish language broadcaster.The Televisa group was backed byVenezuelan media investor GustavosCisneros, Bain Capital, Blackstone Group,Carlyle Group, Cascade Investment andKohlberg Kravis Roberts. The other biddinggroup consisting Madison DearbornPartners Inc., Providence equity Partners,Texas Pacific group, Thomas H. LeePartners and billionaire Haim Saban’s SabanCapital Group had placed their bid of $12.3billion or $35.5 a share. The deals werefacing hurdles for price and governanceissues as Univision was expecting bids

worth more than $40 a share. Analystshad perceived some big potentialregulatory hurdles for the bidders in dealingwith the Federal CommunicationsCommissions foreign ownership andoverlapping asset restrictions. Analystswere divided in their opinion whetherUnivision would accept the offer or try topush the bids higher or decide against sellingthe company entirely.

The case deals with the strategic reasonswhy different companies prefer to acquireUnivision, the deal offer by variouscompanies and bidding and counter biddingprocess to acquire Univision. This case alsohighlights the various synergies andproblems associated with the Univisionacquisition.


• The Spanish broadcasting industry inAmerica

• To understand the business model andoperation of Univision, the largestSpanish-language media company in theUnited States

• To understand the business model andoperation of the private equitycompanies, the Saban Capital, MadisonDearborn Partners, Providence EquityPartners, Texas Pacific Group, ThomasH. Lee Partners

• To understand the business model andoperation of the other bidding group,the Televisa

• To discuss which one among the twobiding groups would fit well with theSpanish media company Univision

• To analyse the future prospects and perilsarising out of the deal.

Industry MediaReference No. MAA0148KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Televisa; Univision; Bain Capital;Kohlberg Kravis Roberts & Co; Cascadeinvestments; Carlyle Group; BlackstoneGroup; TV Azteca; American BroadcastingCompany (ABC); CATV (CommunityAntenna Television); Time Warner; NewsCorporation; Hispanic market; MadisonDearborn Partners Inc; Saban Capital

MERC and CBOT Merger:Building One Roof Trading

On October 17, 2006, the two largestAmerican futures exchanges, ChicagoMercantile Exchange (CME) and ChicagoBoard of Trade (CBOT) had announced a

consolidation where CME would buyCBOT for about $8b in stocks and cash.The combined company would be calledCME Group Inc. The combined companywas valued at $25b and was expected tohave average daily volume of 9m contracts,resulting in the world’s largest derivativesmarket by volume. According to analysts,the deal would result into greater scale,further diversification of the product setand potentially conservative cost savingassumptions. However, there are certainchallenges for both the exchanges includingthe large volume or ‘laws of large numbers’and a CME shift to focus on executionrather than growth. This case explores howthe move taken by the two futureexchanges is going to help them to grabthe opportunities in global market,strategic benefits they are likely to get outof it and the problems perceived by theanalysts.


• To understand the world derivativesmarket

• To understand the business models ofthe two largest American futureexchanges, Chicago MercantileExchange (CME) and Chicago Board ofTrade (CBOT)

• To analyse the prospective synergiesfrom the merger of the CME and CBOT

• To debate the future challenges that thetwo exchanges would face as a result ofthe merger.

Industry DerivativesReference No. MAA0147KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Chicago Mercantile Exchange (CME);Chicago Board of Trade (CBOT);Derivatives; Over-the-counter market;Open outcry; Boot strap; Futures; Options;New York Stock Exchange; Euronet NV;Demutualisation; CME Globex; LifeConnect; Application programminginterface (API); NASDAQ (NationalAssociation of Securities DealersAutomated Quotation system)

KKR’s Bid for Vivendi: TheChallenges Ahead

On November 5, 2006, Kohlberg KravisRoberts (KKR), the New York based privateequity firm offered $50.8 billion to takeover the French music andtelecommunications group Vivendi in a dealthat would have been the world’s biggestbuyout. The deal demonstrates the growingprowess of private equity on the global

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stage. KKR had been in discussions with JPMorgan Chase and Citigroup aboutfinancing the transaction. Back in October2006, Vivendi paid $1.6 billion forBertelsmann’s music publishing business,making it the industry’s largest recordingcompany and music publisher. KKRprimarily focuses on late stage leveragedbuyouts. According to analysts, Vivendi istrying to reap the benefits of cross-promoting its content among variousplatforms. Analysts were divided in theiropinion regarding the deal. Frenchregulations prevent foreign concerns fromowning majority stakes in broadcasters.Moreover some analysts raised doubts overthe justification of the marriage betweenmusic and private equity. This case exploresthe prospective synergies of this deal inparticular and the scale of power, buyoutfirms now hold in the global merger andacquisition market in general


• To understand the US music industry

• To understand the increasing dominanceof the private equity firms as globalacquirers

• To understand the business model of theprivate equity firms

• To understand the business model ofVivendi, the largest recording companyand music publisher in the world

• To debate the potential synergies andchallenges of the acquisition of Vivendiby the private equity firm KohlbergKravis Roberts & Co (KKR).

Industry Diversified InvestmentReference No. MAA0146KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Kohlberg Kravis Roberts & Company(KKR); Vivendi; HCA (HospitalCorporation of America); Private equity;Music industry; MER Capital; BMG(Bertelsmann Music Group); Performingright societies; Mechanical right societies;Recording industry; Warburg Pincus;Leveraged buyouts; RJRN Nabisco; Junkbonds; Bear Stearns

Casinos Blue Ocean for PrivateEquity-after Change

On October 3, 2006, Las Vegas basedHarrah’s Entertainment Inc. (HET), theworld’s biggest casino operator, announcedit was considering a $15.05 billion or $81per share buyout offer from private equityfirms Apollo Management and Texas

Pacific Group (TPG). Combined withHET’s long-term debt of nearly $10.7billion as of June 30, 2006, the buyoutproposal carried a value of $25.75 billionmaking it the fifth largest leveraged buyoutever. The proposed deal signaled newinterest in the gambling sector for privateequity groups. Until the 1990s, casinocompanies were not able to attract privateequity or other firms for a buyout becauseof regulatory requirements. But from theacquisition of Harvey’s Casino Resorts byColony Capital in 1998, private equityplayers had shown their increasing interestin the casino industry.

The case will cover whether the casinogiant would prove to be an intelligentchoice for the private equity firms.Subsequently, the case would cover somemore issues such as (a) Prospectivesynergies and risks for both the acquirerand the target company, and (b) Increasingappeal of gaming companies.

A casino was a facility that accommodatescertain types of gambling activities.Casinos were often placed near or combinedwith hotels, restaurants, retail shopping,cruise ships and other vacation attractions.

Colony Capital was a private internationalreal estate investment firm in Los Angeles,California.


• To understand the US casino industry

• To discuss why the private equity firmsare increasingly making the gamingcompanies their takeover target

• To understand the business model of theprivate equity firms

• To understand the business model ofHarrah’s Entertainment Inc. (HET), theworld’s biggest casino operator

• To analyse the prospects and perils ofthe acquisition of the HET by theprivate equity firms.

Industry GamingReference No. MAA0145KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Gaming companies; HET (Harrah'sEntertainment Incorporated); TexasPacific Group (TPG); UBS Securities;Caesars Palace; Apollo Management;Casino industry; Private equity; Grossannual revenue (GAR); Las Vegas Strip;Leverage buyout; Hurricane Katrina;Hurricane Rita; Warburg Pincus; BurgerKing

NYSE–Euronext Merger: A Cross-border Merger of Equals

In June 2006, NYSE decided to merge withEuronext NV, a cross-border stockexchange organisation in Europe and createthe largest exchange in the world with amarket capitalisation of $21 billion andan average daily turnover of $100 billion.The transatlantic merger was set to createthe world’s most liquid and global financialmarketplace and intended to offerunmatched benefits for investors andissuers across the globe. The strategicpartnership also aimed to bring togethertwo industry leaders on a commonplatform and establish market leadershipposition in diverse businesses like cashequities, derivatives and futures, listings,bond and market data.

The case, while providing a broad overviewof the two stock exchange companies,offers scope to discuss the synergies of themerger and the probable pay offs.


• To analyse the rationale behind themerger of two leading stock exchanges

• To discuss the expected synergies of themerger

• To debate whether the deal would bemutually beneficial for both the parties.

Industry Stock ExchangeReference No. MAA0144KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;NYSE (New York Stock Exchange);Euronext; Cross-border merger; Regulationnational market system; The Arcaedge;John Thain; Revenue synergies; Sarbanes-Oxley Act; Electronic communicationnetwork; Stock exchange; Horizontalmarket model; Derivatives trading; Federalcash market system; NASDAQ (NationalAssociation of Securities DealersAutomated Quotation)

Google’s Bid for YouTube: TheNext Step for Internet

Revolution?In late 2006, Google, a leading onlinesearch company, decided to acquireYouTube, a video-sharing website portal,for $1.65 billion and establish itself as aleading player in the online video market.The acquisition aimed to combine Google’stechnical know-how with one of the fastestgrowing online video communities andcreate new models for advertising in theInternet. With online advertising market




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forecasted to grow to $26.4 billion by 2010from $17.4 billion by the first half of 2006,the deal marked a strategic move by thecompanies to create targeted marketingvehicles for advertisers.

The case offers scope to discuss theemerging avenues in the Internet in thebackdrop of the deal and the probable pay-offs.


• To discuss about the online advertising

• To analyse the deal with its implication

• To debate on the acquisition and theprobable pay-offs.

Industry InternetReference No. MAA0143KYear of Pub. 2007Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Google; YouTube; Acquisition; Socialnetworking website; On-line video;Adwords; Adsense; Participatory videoadvertisements (PVA); Brand channels; On-line advertising; Millennial generation;Copyrighted content; MySpace; Cost-per-click (CPC)

Global Consolidation of StockExchanges: The Potential

SynergiesDuring the late 1990s, demutualisationtook place in most of the global stockexchanges and the erstwhile mutualownership structure was changed topublicly-owned shareholding ownership. Atthe same time, with rapid advancementsin technology, automated trading graduallytook the centre stage and various mergersand acquisitions took place to improvebusiness efficiency for efficient clearingand trading settlements and reduceoperating costs. The consolidation in stockexchanges created an integrated financialmarket, with worldwide operating facilitiesand removed the barriers of time and space.

The case, while providing an overview ofthe global consolidation in stock exchanges,discusses the potential benefits and barriersto the consolidation.


• To understand the business dynamics ofstock exchange

• To discuss the importance ofconsolidation of stock exchanges.

Industry Stock ExchangeReference No. MAA0142K

Year of Pub. 2007Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Stock exchange consolidation; Electroniccommunication network; Algorithmictrading; Order routing; Demutualisation;Share trading; Integrated financial market;Liquidity; Sarbanes-Oxley Act; Clearingsystem; Settlement system; NYSE (NewYork Stock Exchange); Euronext;Economies of scale

Alcatel’s Acquisition of Nortel:The Strategic Fit

In order to strengthen its presence in theglobal market and expand its leadership inbroadband access, Alcatel, one of the leadingglobal suppliers of high-tech equipment fortelecommunications networks, decided toacquire the UMTS radio access business ofNortel Networks Corporation (Nortel) for$320 million in September 2006. With thesale of the UMTS business, Nortel alsoaimed to simplify its business and focus onother key businesses where it anticipatedhigher return on investments.

The case offers scope to discuss thesynergies of the merger and the probablepay offs.


• To understand the telecommunicationmarket

• To analyse the rising importance ofBroadband access

• To discuss the core competence ofAlcatel and Nortel

• To analyse the probable synergiesbetween Alcatel and Nortel.

Industry Telecommunication EquipmentReference No. MAA0141KYear of Pub. 2007Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Alcatel; Nortel; Acquisition; UMTS(Universal Mobile TelecommunicationsSystem); GSM (Global System for MobileCommunications); CDMA (Code DivisionMultiple Access); 3G (Third Generation);VoIP (Voice over Internet Protocol);Broadband; UTRAN (UMTS TerrestrialRadio Access Network);Telecommunications network; Win-windeal; Big initiative; Six Sigma

Novartis: Consolidation inGenerics

The case discusses the mega acquisition oftwo big generic pharmaceutical companies,Hexal AG of Germany and Eon Labs of theUnited States (US), by the world’s secondlargest generic pharmaceutical company –Swiss based Novartis (Sandoz, the genericbusiness division of Novartis). Theacquisitions created the largest genericpharmaceutical company in the world, interms of revenue. The case provides adetailed note on the global genericpharmaceutical industry, with a focus onits recent trends. After giving a brief noteon Sandoz and the two acquired companies,the case discusses the rationale behind theacquisition and the benefits, which Novartisexpected from it. It also explains theacquisition deal in detail and finally,discusses the possible challenges, whichNovartis could face in the near future.


• To discuss the global Pharma industry

• To understand the reasons for growth ofGenerics

• To discuss about the acquisitions and theexpected synergies

• To debate on the challenges thatNovartis could face in the genericbusiness.

Industry PharmaceuticalReference No. MAA0140KYear of Pub. 2005Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Novartis; Sandoz; Hexal AG; Eon Labs;Pharmaceutical (pharma) industry; Genericdrugs; Patented drugs; Acquisition;Intellectual property rights; Blockbusterdrug; Big pharma; Cost competitiveness;Extended product portfolio; Verticalintegration; Daniel Vasella

Genzyme’s Acquisition Proposalfor AnorMED, Inc.

US based biotechnology company Genzymemade an offer to acquire AnorMED, aCanadian chemistry-based researchorganization with an offer price of $7.75per AnorMED’s share, a 14% premiumover the closing price. The acquisition ofAnorMED would provide Genzyme theaccess to ‘Mozobil’, a rapid stem cellmobilizer. Moreover, the former also hada strong pipeline of drugs in anti-retroviraland oncology therapeutic segments. Thephase III clinical study of Mozobil wassuccessful and the product was expected to

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be a blockbuster in the area of stem celltransplant. Genzyme wanted tocommercialize Mozobil, based on its globalinfrastructure and sales network. In thatrespect, the company started discussionswith AnorMED regarding Mozobil inOctober 2005. Genzyme could have gotaccess to Mozobil either through inlicensing, or by acquiring AnorMED. But,AnorMED did not agree to the in licensingproposal as the company was looking forlicensing opportunities only in Japan anddecided to launch Mozobil in the NorthAmerica and Europe independently bydeveloping its own marketing anddistribution network. Genzyme was leftwith the option to acquire AnorMED, tostrengthen its existing transplant productportfolio. This case deals with the proposedacquisition of AnorMED by Genzyme. Itprovides a brief overview about the twocompanies and highlights the reasons foracquisition. This is followed by a briefoverview of the transplant market and theimportance of mozobil for Genzyme. Thecase also deals with the expected synergiesand possible challenges that will result inthe process of the acquisition.


• To have a brief idea about the stem celltransplant

• To understand how can stem celltransplant change our way of living

• To analyze the reasons, why Genzymeis concentrating on the transplantproduct segment

• To conceptualize ‘Hostile Bid’ and‘Poison Pill’ strategies

Industry BiotechnologyReference No. MAA0139KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Acquisition; Mergers, Acquisitions,Alliances Case Study; Synergy; Genzyme;AnorMED; Biotechnology; Stem cell;Transplant; Mozobil; Clinical trial;Oncology; Anti-retroviral; Leukaemia;Chemotherapy; Orphan drug; Bought outdeal

CCB’s Acquisition of BOA (Asia):Merger of Two Complementary

BanksOn October 20, 2006, China ConstructionBank’s shareholders approved the Bank’sproposal to acquire 100% of Bank ofAmerica (Asia) Ltd for $1.24 billion. CCB'spurchase price (1.32 prices to book) waslower than the market average of two timesprice-to-book ratio. The low price showed

Bank of America's eagerness to enter themainland market by partnering with CCB.The Asia unit of the US banking giant held8.5% stake in CCB, and the foreignownership rules would allow it to increaseits interest up to a ceiling of 19.9%. Thedeal had enormous merits for BOA (Asia),considering the fact that the best bank ofChina had been enhancing its operatingefficiencies in recent years, with healthydevelopment in its international presenceand rapid growth in its foreign exchangebusinesses. On the other hand, Hong Kongwas an important platform to CCB for itsoverseas developmental strategies, with anaim to drive its overseas operations. Theacquisition would enable CCB to double itsHong Kong market share to 1.4%, boostingits ranking among the city's 24 licensedbanks from 18th to ninth, with total assetsof HK$96 billion. Going forward, CCBwould be looking to acquire other overseasinvestment banking units, with targetsincluding Hong Kong-based Gold bondCapital and Taiwan's Core PacificInternational. However, CCB was not awayfrom controversies and corruption charges.Zhang Enzhao, the Ex-Chairman of thebank, resigned on March 16, 2005, citing"personal reasons". However, a lawsuit inthe US alleged that he received a bribe of$1 million from Alltel InformationServices, for securing a contract. The NPLratio still stood high at 4%, compared tothe international average range of 0.5 to2.5%. Moreover, the reduction of NPLwas made possible due to huge capitalinjection by the PRC government in theform of Hujin Investments, which may nothappen in future. In such a scenario, thevaluation of BOA (Asia) seemed to be at alower than expected level.


• To understand the role of mergers andacquisitions in the growth strategy ofbanking companies

• To have a brief understanding of theChinese banking Industry

• To study the impact of banking reform

• To understand the potential synergiesof a merger of two complementarybanks.

Industry BankingReference No. MAA0138KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Bank; China; Reform; Acquisition; Nonperforming loan (NPL); Loan; Deposit;Basel; Capital adequacy; Gross domesticproduct (GDP); Hong Kong; Book value;Huijin; Net interest; Valuation

Amgen's Acquisition of Abgenix:The Expected Synergies

Amgen, the world's largest biotechnologycompany, completed the acquisition ofAbgenix, Inc., for $22.50 in cash per shareof common stock, a 54 percent premiumover Abgenix's last closing price. Theacquisition of Abgenix provided Amgenwith full ownership of one of its mostimportant pipeline products,“Panitumumab”. Panitumumab was theirmost advanced cancer therapeutic and wasa natural extension from Amgen's existingoncology supportive care franchise. Theacquisition also eliminated a royalty thatAmgen would have paid to Abgenix onfuture sales of Denosumab. Some analystsbelieved it to be a right move, as of the endof September, Amgen had over $5.5 billionin cash and was generating over $1 billionin free cash flow per quarter, but otherswere skeptical about the high expected salesfigure of panitumumab. This case deals withthe acquisition of Abgenix by Amgen. Itprovides a brief overview about the twocompanies and highlights Amgen’s focuson oncology segment. This is followed bya brief overview of biotechnology sectorand the global cancer drug market. Thecase also deals with the expected synergiesand possible challenges that will result fromthe acquisition.


• To understand, why pharmaceuticalcompanies become aggressive over aparticular drug

• To understand the different modes ofcommercializing a new drug developedby a pharmaceutical company

• Evaluation of the possible future strategicoptions for Merck

• To understand the synergies of a mergerof two pharmaceutical companies.

Industry BiotechnologyReference No. MAA0137KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Acquisition; Synergy; Amgen; Abgenix;Biotechnology; Oncology; Cancer;Panitumumab; Metabolic disorder;Inflammation; Licensing; Clinical trial;Pipeline; Xenomouse; Venture capital

Google and Ebay’s AD Deal: WillIt Work?

The online auction and shoppingorganization eBay signed up Google toprovide Web search advertising outside US.The two companies would start “click tocall” advertising across Google and eBay.




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The new feature would enable the onlinebuyers to click on an advertisement andtalk directly to an advertiser or eBay sellerusing Google’s Talk software or eBay’sSkype.This deal may generate revenue foreBay through its Skype. Google could alsobe benefited by expanding more into localadvertising. The case discusses about Googleand eBay and its alliance with a briefoverview of online advertising.


• To discuss the impacts of ad deal betweenGoogle and eBay

• To discuss how Google worked as a searchengine

• To understand the company backgroundof eBay

• To get an overview of online advertising,globally

• To see whether this alliance leads to awin-win situation for both the companiesor not.

Industry Search NetworkReference No. MAA0136KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Google; eBay; Advertising; Search engine;Yahoo; On-line auctioneer; Internetadvertisement; Microsoft; Google Talk;PayPal; Adwords; Business strategy;Alliance; Dell; Skype

Merck's Acquisition of Serono:Creation of the Largest

Biotechnology Company ofEurope

Germany based pharmaceutical companyMerck KgaA was set to acquire theSwitzerland based biotechnology company,Serono SA (Serono) in September 23, 2006at US$13.3 billion (10.4 billion euros). Theacquisition proved to be of strategicadvantage to Merck. Until the recent past,Merck was only into the branded andgeneric pharmaceutical business with verylittle focus on biotechnology. Theacquisition of the world’s third largestbiotechnology company provided it withan avenue to enter into the segment ofbiological medicines. With a strongpresence in the US, Serono also providedMerck an opportunity to fortify its marketposition in the country.

The case discusses Merck’s inorganicgrowth strategies by which it tries to enterthe new business segment of biologicalmedicines and strengthens its position inthe US market. However, the acquisition

has its own challenges. Considering thesteep decline in total revenue and netmargin of Serono between 2001 and 2005,critics were skeptical about the success ofsuch an acquisition. Therefore, the casealso raises a debate between the possiblesynergies and challenges of the acquisition.


• To understand the Drug development lifecycle of a pharmaceutical company

• To have a brief idea of the recent trendsin Biotechnology industry

• To understand the problems associatedwith the commercialisation of a drug



Keywords

Mergers, Acquisitions, Alliances Case Study;Merck KgaA; Serono SA; Biotechnology;Inorganic growth; Pharmaceuticalcompany; Multiple sclerosis; Productportfolio; Drug development; Acquisition;Moody's; Biological medicines; Generics;Patented drugs; Recombinant genericengineering

Hospira’s Acquisition of MaynePharma: Creation of World’sLeading Generic InjectablePharmaceutical Company

In September 2006, the Illinois (US) basedspecialty pharmaceuticals and medicationdelivery company, Hospira Inc. announcedits decision to acquire the Austalianspeciality injectable pharmaceutical drugcompany, Mayne Pharma for US$2 billion(AU$2.6 billion). While Hospira was themarket leader in the US generic injectabledrug market, Mayne held a major share ofthe same market in Australia and Europe.The deal would provide important strategicadvantages to Hospira. The acquisition,while on one hand, was expected to increaseHospira’s international sales by two fold,on the other hand, it would enable thecombined company to reduce the cost byabout US$50 million, effective from 2007.

The case deals with the possible productand financial synergies of the acquisitiondetails, Hospira’s rationales and thecorresponding strategies of capturing thelucrative global generic injectable drugmarket. However, the success of the dealdepended on an important factor, such asthe integration of the varied work culturesof the US and Australia. In order to have abetter understanding of the business

situation, it not only provides a brief outlineof the global and the US generic injectabledrug market, but also the profile of thetwo companies.


• How product development life cycle ofa pharmaceutical company differs fromthat of a manufacturing industry

• To analyse the prospects of a particulardrug in terms of efficiency andpenetration

• To analyse the product portfolio andpipeline drugs of a pharmaceuticalcompany



Keywords

Mergers, Acquisitions, Alliances Case Study;Hospira; Mayne Pharma; Acquisition;Pharmaceuticals; Generic; Genericinjectable drug; Drug delivery system;Abbott Laboratories; Global genericmarket; Product synergy; Cost efficiency;Integration of work culture; Homogenouswork force

Wal-Mart’s Bid for Trust-Mart:Consolidating Presence in ChinaWal-Mart Stores Inc. was bidding $1 billionfor a chain of 100 hypermarkets owned byTrust-mart, a Taiwanese retailer operatingin China. The deal had the potential tomake Wal-Mart ahead of its competitorsin China to become the country’s biggestfood and department store network. Wal-Mart cited the reason of familiarity ofChinese people with the transaction ofthese hypermarkets, to support theacquisition. With China’s economy growingmore than 10% a year, the retail marketwas booming in 2006. Retail sales surged12.9 percent in 2005 over the year before,to 6.7 trillion Yuan ($847 billion). By2020, industry forecasts said the marketcould expand to about $2.4 trillion. In thisjuncture analysts thought that such a dealwould certainly help Wal-Mart toconsolidate in China. It also helped thecompany to being ahead of othercompanies like, Carrefour SA of France,which earlier had more number ofhypermarkets in China.

This case will focus on why world’s largestretailer is so keen to make the deal into areality and how Wal-Mart could get strategicadvantages from this deal, what are theproblems associated with the deal and how

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Wal-Mart plans to over come it.


• To discuss about the Chinese retailmarket

• To discuss about Wal-Mart’s bid for TrustMart

• To analyse the probable synergiesbetween Wal-Mart and Trust Mart.

Industry RetailReference No. MAA0133KYear of Pub. 2007Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Wal-Mart; Trust-Mart; China; Retailchain; Hypermarkets; Acquisition;Carrefour; Chinese retail market; Sam'sClub; Strategic rationale; Reputation crisis;Food and department store; Deal;Consolidation; State Economic and TradeCommission (SETC)

US Airways Bid for Delta Air Lines:Potential Synergies and

ChallengesOn 15th November, 2006 US AirwaysGroup made a surprise bid to buy Delta AirLines for $8 billion. Once Delta Air Lineswas a troubled carrier and emerged frombankruptcy. As a part of their business planUS Airways was known for purchasing theailing airways.

For instance, it purchased American Westin 2005; which was near bankruptcy duringthe time of acquisition. Analysts perceivedthat the recent acquisition would help USAirways to consolidate its presence infiercely competitive US aviation market.They also pointed out that its corecompetence of acquiring ailing airlines andmaking them airborne again helped thecompany to consolidate its presence. Itwas opined that the combined companywould be more effective and profitablecompetitor in the current fragmented USairlines market.

This case deals with the detail analysis ofthe deal and the expertise of US Airwaysto make such deal happen, especially intaking the bankrupt companies. It alsounfolds the potential synergies andchallenges associated with the deal. Thecase also discusses the detail about USairlines Industries and the importance ofthe consolidation in gaining the strategicadvantages.


• To discuss the US aviation market

• To analyse the bid for acquisition

• To discuss the probable synergies of theacquisition.

Industry AviationReference No. MAA0132KYear of Pub. 2007Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers,Acquisitions,Alliances CaseStudy;US Airways; Delta Airlines; AmericaWest; Merger; Acquisition; Synergies;Citibank; Consolidation; Airline market;Strategic advantage; Southwest; JetBlue;Anti-trust; Fare war; LCC (Low CostCarriers)

“Nike and Apple: A SuccessfulPartnership?”

On May23, 2006 Nike and Appleannounced about their new joint venturewhich could bring the worlds of sports andmusic together like never before. Theywere about to launch the innovativeNike+iPod, the product of theirpartnership. Both the companiesannounced that their first product wouldbe Nike+iPod Sport Kit, which was awireless system that would allow the Nikefootwear user to communicate with theiriPod nano. This would provide the user aunique personal running experience and theuser could workout their experience. MarkParker and Steve jobs the CEOs of Nikeand Apple respectively unveiled their newproduct Nike+iPod at an event in NewYork (US). The event was attended two ofthe world’s most famous sports persons,seven time Tour de France champion LanceArmstrong and marathon record-holderPaul Radcliffe. They were quite hopeful oftheir partnership would elevate the musicand sports to a new level. Nike footwearwas to be connected to iPod nano throughthe Nike+iPod Sport Kit. Users could getthe information on time, about thedistance, calories burned and pace.Footwear users could also get to listen tothe Nike Sport Music section on the iTunesand management perceived that it wouldhelp to maximize the Nike+iPodexperience.


• To discuss about the strategic alliancebetween Nike and Apple

• To analyse the marketing mix

• To debate on the success of the newproduct.

Industry Sports ApparelReference No. MAA0131KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Nike; Apple; Nike and iPod; Sport kit;Footwear; Steve Jobs; Mark Parker;Receiver; Nike+Experience; Nike Plus;iPod; iTune; Basic workout; iPod Nano;Tour de France

GM Ford Alliance: An InnovativeTrend in Global Auto Industry

Analysts viewed that the probable GM-FordAlliance would be the biggest news to rockthe global automobile industry since theinvention of the automobile. GM and Fordtie-up was a distinct possibility thatreflected in talks occurred between GMCFO Fritz Henderson and Ford CFO DonLeclair. As the report came as GM and Fordhad been slashing their work forces andclosing plants in efforts to reversemultibillion-dollar losses. Their sales alsohad been affected by competition frommore fuel-efficient models from Asianautomakers, like Toyota. This newinitiatives became almost inevitable in thisjuncture, as opined by the management ofboth the companies. As both the companieswere the industry leaders, analysts wereskeptical whether this alliance would takeplace or not. Therefore, the challenges infront of both the companies were to makethe alliance happen and thereafter to makethe alliance work. This case deals with thechallenges of forming such alliance, howFord and GM strategies to make the alliance,overcome the challenges and can leveragethe alliance as a part of their turnaroundexercises.


• To understand the rationale behind apossible alliance between the two globalauto giants

• To get an overview of the globalautomobile industry

• To discuss how an alliance would helpthe companies strengthen their positions

• To debate whether such an alliance, ifformed, would work.

Industry AutomobileReference No. MAA0130KYear of Pub. 2007Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;GM (General Motors); Ford; Alliance;Global auto industry; Innovative trend;Detroit; Fordism; Auto manufacturer; RickWagoner; Automotive News; Lay-off;Rationale of alliance; Merger; Toyota;Honda




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Ferrovial’s Acquisition of BAA:High Profile British Assets

Changes HandBAA Plc, (formerly British AirportsAuthority) the world's largest commercialoperator of airports, agreed a sweetenedoffer of US $19.3 billion (£10.3billion)takeover bid from Spanish constructiongiant Ferrovial on Monday, 5th June, 2006.BAA, which had rebuffed Ferrovial’s earlieroffer of 810 pence (US$15.16) per share,which had a worth of US$16.38 billion(£8.78 billion) four months ago (inFebruary, 2006), then agreed to the revisedoffer of 950.25 pence (US$17.79) pershare. US’s investment bank GoldmanSachs Inc. the major rival of the bidhowever urged BAA shareholder for nottaking any hasty decisions as they offered955.25 pence (US$17.86), which was morethan the Ferrovial’s offer. BAA’smanagement said that Ferrovial’s bid hadbetter strategic rationale, compare toGoldman Sach’s. BAA’s board opted forFerrovial because its bid was more advancedin terms of regulatory clearances and alsoit would allow BAA’s shareholder to optfor shares instead of cash. Madrid basedFerrovial which diversified frominfrastructure services to offset cyclicalconstruction operations, BAA takeover bidby far was the strongest move for them.This case discusses about the acquisitionstrategy of Ferrovial and it’s impact onBritish Aviation industry.


• To understand the commercial airportoperation Industry

• To discuss the rationale of diversificationbeyond the core business.

Industry AviationReference No. MAA0129KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;BAA Plc (formally known as BritishAirport Authority); Ferrovial; GoldmanSachs; Heathrow; Acquisition; Takeover;Aviation; Construction; Controversy;Strategic initiative; Sweetened offer;Airport Development and InvestmentLimited (ADI); Madrid; Civial AviationAuthority (CAA); Office of Fair Trading

Standard Chartered:Consolidating its Presence in

TaiwanThe London-based Standard Chartered Plc.had announced on September29, 2006 thatit would purchase Taiwan-based HsinchuInternational Bank for NT$ 40.5 billion

($1.2 billion) which would go down in thehistory books as Standard Chartered’ssecond biggest acquisition, after it acquiredSC First Bank in Korea for $3.3 billion in2005. The deal would allow StandardChartered to realize its 10-year hunt toacquire a big target in Taiwan. It was thefirst application from an international bankto directly acquire 51-100% of a Taiwanesebank. Taiwan was the Asia’s fifth-largesteconomy and the island’s $ 700 billionbanking industry had also earned thereputation of being the fourth biggestbanking market in Asia. Taiwan had beenin favour of promoting foreigninvestments in its banking sector and thedeal to acquire Taiwan’s seventh-biggestprivate-sector bank by Standard Charteredwas the latest manifestation of that. Thedeal would allow Standard Chartered notonly to augment its earnings but also toachieve a two-digit Return On Investment(ROI) percentage figure by 2007. Analystsperceived that the deal would enableStandard Chartered to have one of thelargest branch networks of any overseasbank on the island and make Taiwan itsfourth biggest market in terms of income.


• To understand the role of mergers andacquisitions in the growth strategy ofbanking companies

• To analyse the benefits and drawbacksof acquisitions associated with bankingcompanies

• To study the impact of liberalisation onthe Taiwanese banking sector

• To understand the potential synergiesof an acquisition.


Keywords

Mergers, Acquisitions, Alliances Case Study;Bank; Taiwan; London; Standard Chartered;Hsinchu; SC First Bank; ROI (return oninvestment); Assets; Dividend per share;SME (small and medium-sized enterprises);Taiwan's banking industry; Deal; Netprofit; Hibank; Asia

Sanpaolo: Consolidating itsPresence in the Egyptian MarketViewed as the country’s biggest auction ofstate assets, the Egyptian Government onOctober 17, 2006 decided to sell off 80%stake of Bank of Alexandria (BoA) SAEfor $1.6 billion at $12.6 per shareFollowing a three-round auction ItalianSanpaolo IMI Bank emerged the winnerafter it outbid five other contenders

comprising of two European lenders andthree Arab groups in order to purchase 80%of Egypt’s fourth biggest commercial bank,Bank of Alexandria. The sale of BoArepresented the first phase of privatizationof the fourth largest Egyptian bank, whichwould be soon followed by the big threestate-owned banks in Egypt. Theprivatisation of BoA was in tune with thepolicies undertaken by the EgyptianGovernment to restructure its bankingsector to reduce the public sector stake inthe banking arena from 75% to 40%. Thetransaction had been regarded as part ofSanpaolo’s development strategy toestablish its footprint in the emergingmarkets such as Hungary, Romania,Slovenia, Egypt and Albania withrepresentative offices likely to beestablished in Serbia, Mediterranean inTunisia (BIAT) and Morocco. The dealwas considered to be a subset of aprivatisation programme undertaken torejuvenate the country’s economic reforms.


• To understand the role of mergers andacquisitions in the growth strategy ofthe banking companies

• To analyse the benefits and drawbacksof mergers and acquisitions associatedwith banking companies

• To study the impact of the acquisitionon the Egyptian banking sector

• To understand the potential synergiesof the acquisition

• To learn the impact of reforms in theEgyptian Banking sector

• To understand the pros and cons of theEgyptian Banking sector reforms.


Keywords

Mergers,Acquisitions,Alliances CaseStudy;Bank of Alexandria (BOA); EgyptianBank; Auction; Initial public offering(IPO); Sanpaolo; Italy; Americandepositary receipt (ADR); Ratings;Egyptian Pound (EGP); Capital;Privatisation; Non-performing loans;Foreign direct investment; Central Bankof Egypt (CBE); Law

Sanpaolo: Consolidating itsPresence in Albania

The Turin-based Italian bank, SanpaoloIMI S.p.A agreed in 2006 to acquire 80%stake of the Tirana-based American Bankof Albania in a deal that would value theAlbanian vendor at $156.9 million

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(EUR124.91 million). The US-based $30million (EUR24 million) AlbanianAmerican Enterprise Fund (AAEF), whichwas the sole shareholder of the Americanbank had already confirmed the preliminaryagreement between the banks. Thetransaction, subject to regulatoryapprovals, would be officially through afterit gets the nod from the supervisoryauthorities of Italy and Albania. The USCorporation had even agreed to offer theItalian bank the remaining 20% stake ofthe American Bank of Albania to fulfillthe acquisition process in toto. Analystsbelieved that the deal would enable theItalian bank to reinforce its presence inAlbania. Together with Banca ItaloAlbanese and the American Bank ofAlbania, the Italian bank would capture amarket share of 20.6% in loans and 15.3%in deposits that would make the combinedentity the second-largest bank in Albania.With a total distribution network of 24branches and a multi-specialist bank set-up, the new entity could develop a strongretail network in Albania. The transactionwith Sanpaolo would effectively enhancethe development of the Albanian economythrough providing regional growthopportunities in Kosovo, Macedonia andMontenegro. The capital generatedthrough this high-profile transaction wouldbenefit the Albanian bank in particular toenable it to strengthen its position in thecountry. Together with Sanpaolo IMIGroup, the Albanian lender would beuniquely positioned to share the strengthsand financial knowledge in direct financingfor major projects as well as in the specificexpertise of Bonds issues.


• To understand the role of mergers andacquisitions in the growth strategy ofSanpaolo

• To analyse the benefits and drawbacksof mergers and acquisitions associatedwith banking companies

• To study the impact of the acquisitionon the Albanian banking sector

• To understand the potential synergiesof the acquisition

• To understand the pros and cons of theAlbanian Banking sector reforms.


Keywords

Mergers, Acquisitions, Alliances Case Study;Turin; Albanian American Enterprise Fund(AAEF); Albania; Banca Italo Albanese;Sanpaolo; Tirana; American Bank ofAlbania (ABA); Compounded annualgrowth rate (CAGR); Gross domestic

product (GDP); Italian Albanian Bank(IAB); Return on assets (ROA); Return onequity (ROE); Albanian banking market;Italy; Tax

Banca Intesa – SanpaoloMerger: Set to Create Italy’s

Largest BankOn October 12, 2006, Milan based BancaIntesa S.p.A and Turin based Sanpaolo IMIS.p.A agreed to merge to create Italy’slargest bank that would surpass UniCreditS.p.A., the dominant local lender in Italy.Banca Intesa S.p.A. (formerly known asIntesaBci) and Sanpaolo IMI S.p.A. werethe second and third largest banks in Italywith each having more than 3000 branchesin and around Italy. The merged entitywould be legally based in Turin in northernItaly with its operating headquarters inMilan. It would have EUR 507.5 billion($650 billion) in combined assets and amarket capitalisation of around EUR 70billion ($87.85 billion), which would rankthe merged entity sixth among theEuropean banks and the largest in Italy.The merged entity would have 13 millioncustomers in Italy which would be twice aslarge to what UniCredit S.p.A had. In termsof assets, the merged entity would have540.9 billion euros that would surpassUnicredit S.p.A by a wide margin. The dealwas supposed to be the effect of aconsolidation wave that had been loomingaround the fragmented banking sector inItaly. Domestic banks were unitingthemselves to match their potential withtheir foreign partners apart fromcompeting with Italy’s dominant locallender, UniCredit S.p.A.


• To understand the role of mergers in thegrowth strategy of the bankingcompanies

• To analyse the benefits and drawbacksof mergers associated with bankingcompanies

• To study the impact of the Banca Intesa-Sanpaolo merger on the Italian bankingsector

• To understand the potential synergiesof the merger.


Keywords

Mergers, Acquisitions, Alliances Case Study;Milan; Turin; Banca Intesa; Sanpaolo;Unicredit; Italy; American depositaryreceipt (ADR); Entity; Bank; Euros; Assets;Rating; Market; European; Merger

Phelps Dodge's U$40 bn Deal forINCO and Falconbridge:

Blockbuster Mining TakeoverDeal

On June 2006, US based copper minerPhelps Dodge Corporation announced itsplan to acquire Canada's INCO Ltd andFalconbridge Ltd for US$ 40 bn. The dealwould be the biggest corporate takeover inthe Canadian corporate history. The newentity would be named Phelps Dodge INCOCorporation. Analysts predicted that thenew company would be globally the largestnickel producer, world's largest publiclytraded copper producer and a leadingproducer of molybdenum and cobalt. Thecorporate office and the copper divisionof the new company would be headquarteredin Phoenix (Arizona, US), while the newcompany's nickel division, INCO Nickel,would be headquartered in Toronto(Canada). However, after theannouncement of the mega-merger, boththe analysts and global mining industrywere skeptical about the success of the dealsince the industry had experience of similarbig deal that often caused disappointmentand crushed small time investors. Analystsopined that it was certainly possible thatthe merger of INCO Ltd and FalconbridgeLtd. with Phelps Dodge Corporationbecame a 'marriage made in heaven' but aportfolio strategy study of eleven largesttransactions proved an unhappy historyof transactions that could be better termedas 'marriage made in hell'. The case dealsin detail about the potential synergy andstrategic advantage behind the deal, howthe companies plan to leverage the dealand how this mega deal could overcomethe problems associated with big deals.


• To understand the global mining industry

• To discuss about the acquisition

• To analyse the potential synergies ofthe merger

• To debate on whether the merger wouldbe successful or not.

Industry CommodityReference No. MAA0124KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Phelps Dodge Corporation; Inco Limited;Falconbridge Limited; Phelps Dodge IncoCorporation; BHP Billiton; Rio Tinto;Anglo American; Companhia Vale do RioDoce (CVRD); Global mining industry;Sudbury Basin; Metal bulletin; TeckCominco; Roger Angnelli; Alcan AluminiumLtd; Noranda Inc



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GM-Renault-Nissan: An Allianceto Dominate Global Auto

IndustryIn 2006, global auto industry came to knowabout the alliance between the three giantsof automobile industry, General Motor,Renault and Nissan. Though General Motorwas able to retain its superiority in globalautomobile industry, the company recordedhuge loss. The success of Renault-Nissanalliance inspired General Motormanagement to make an alliance with it.This alliance will help three companies incost rationalization and will help inexpanding geographical reach. But, sincethe three companies belong to differentcountry with different managementculture, analysts were skeptical about thesuccess of the alliance. The case discussesabout the potential synergies in thealliance and the problems associated withit. It also raises the question whether CarlosGhosn would be able to replicate hissuccessful business model to help GeneralMotor to turnaround.


• To discuss the logic behind an alliancebetween GM and Renault-Nissan

• To analyse if such an alliance would helpthe companies to strengthen theirrespective positions

• To gain an insight into the globalautomobile market

• To debate whether the alliance, ifformed, would work.

Industry AutomobileReference No. MAA0123KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;General Motors (GM); Nissan; Renault;Alliance; Global auto industry; US autoindustry; Ford Motor Company; DaimlerChrysler AG; Hyundai Motor Corporation;Volkswagen; Honda Motor; Carlos Ghosn;Rick Wagoner; Chevrolet; Suzuki

RUSAL-Sual Merger:Consolidation in the Global

Aluminium IndustryA proposed triumvirate between RUSAL,SUAL and GLENCORE had been in theoffing that would create a new aluminiumgiant in Russia.RUSAL (known as RussianAluminium company), owned byOleg.V.Deripaska was the largest aluminiumproducer in Russia and globally the third-largest in terms of aluminium output. SUAL(known as Siberian-Urals Aluminiumcompany), owned by Viktor Vekselberg was

the second-largest aluminium producer inRussia and sixth-largest globally in termsof aluminium output.GLENCOREInternational AG was a Swiss-basedcommodities trader founded by Marc Rich.In 2005, RUSAL and SUAL individuallyproduced 2.7 and 1.05 million tonnesrespectively. With GLENCORE added intothe mix, the merged entity would set tobecome the world's largest aluminiumproducer with output of 4 million tonesper year. The merged entity would surpassthe likes of Alcoa Inc. of USA and AlcanInc. of Canada in terms of global aluminiumoutput and would have 100% monopoly inthe Russian aluminium market. Analystswere skeptical whether, the merged entitywithin a few years, could rise to becomeone of the main mining companies globallytouching the standards set by Australia'sBHP Billiton and Britain's Rio Tinto.


• To understand the role of mergers andacquisitions in the growth strategy ofthe aluminium companies

• To analyse the benefits and drawbacksof mergers and acquisitions associatedwith aluminium companies

• To study the impact of consolidation inthe Russian aluminium sector

• To understand the potential synergiesof the consolidation in the Russianaluminium sector.

Industry CommodityReference No. MAA0122KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;RUSAL; SUAL; GLENCORE InternationalAG; Alcan; Alcoa; BHP Billiton; Rio Tinto;Global aluminium industry; Russianaluminium industry; Falconbridge; Xstrata

Lenovo Acquires IBM's PCDivision - Will Lenovo Gain?

On December 8, 2004, Lenovo, China'slargest and Asia's leading PersonalComputer (PC) vendor, announced that itwould acquire global giant IBM's PCdivision. Lenovo was reported to payIBM, $1.25 billion, to get a foothold inthe market of the global leading brand, andthus a gateway to other internationalmarkets. Further, the deal made Lenovothe world's third largest producer of PCsafter Dell and Hewlett Packard (HP), witharound 8% of the global market share.IBM, in turn, acquired 18.9% stake inLenovo, though it took its operations offits books after the acquisition. The dealwas judged as a significant one for IBM as

it tried to gain a good reputation in theburgeoning consumer markets of Chinathrough selling its PCs there. IBM wasexpected to sell its servers and services, onwhich the company wanted to concentrateafter the acquisition, in China in the nearfuture.

After the acquisition, during 2005-2006,Lenovo continued its significant profitablegrowth in the Chinese PC market andreached new heights in the global market.With IBM's 'Think' products and self-brand'Lenovo 3000 series PCs', Lenovo targetedthe Small and Medium-sized Businesses(SMBs), along with IBM's typical largeenterprise market. On August 3, 2006,Lenovo reported results for the first fiscalquarter of 2006-2007 which ended on June30, 2006. It showed in the report that itsrevenue of $3.5 billion jumped 38% fromthe same period in 2005. However, analystsclaimed it as misleading. They stated thatthe first quarter figure of 2006 added IBM'sthree months of revenue, whereas the sameperiod previous year included the globalgiant's two months of revenue. The factwas, based on IBM and Lenovo's 2003 salesfigure, it was clear that 75% of the jointventure's revenue would come from IBM'sPC business. Further, it was also knownthat Lenovo had to rip the IBM-Thinkbrand name after 5 years from thecompletion of the agreement. Hence,analysts seemed skeptical about Lenovo'ssuccess in the international scene in thefuture. They questioned whether Lenovowould be able to maintain its 'new' revenuefigure and hence would gain from theacquisition after 5 years, as the global PCbuyers were likely to refuse the IBMproducts without the ThinkPad tag.


• To understand the global PC market

• To understand Lenovo's acquisitionstrategies

• To understand advantages of acquisitionto Lenovo

• To analyse whether the acquisition willpayoff.

Industry PC IndustryReference No. MAA0121BYear of Pub. 2005Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Acquisition; IBM-Brand name; Global PCmarket; Chinese PC market; Thinkpad;Intellectual Property; Agreement;expansion plan; IBMs Servers and services;IBMs PC Division; entry strategy; jointventure; small and medium based business;integration plan; low price; toughcompetition

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XM and Sirius Merger : Potentialvs Pitfalls

The US Satellite Radio industry in 2006was defined by XM Satellite Radio HoldingsInc. and Sirius Satellite Radio Inc. withsubscriber base of about 7 million and 5million respectively. During the same year,Sirius initiated a merger proposal with XMquoting "significant benefits" out of acombined entity. But, XM turned down theidea of merger stating that both thecompanies could co-exist in the market asthe industry was still in the nascent stage.

The refusal of merger move by XM evokedmixed responses from industry analysts.There were many exchanges of ideasregarding the likelihood of a merger. It wasalso debated whether the potential mergerwould benefit both the companies. Industryexperts made an attempt to project thepost-merger scenario. Analysts were alsotrying to grasp whether XM was justifiedin refusing to merge with Sirius.


• To study the dynamics of the US satelliteradio industry

• To understand the advantages of apotential merger

• To analyse the reasons spelt out by XMRadio for not supporting the idea of amerger

• To comprehend the post-mergerscenario and the pros and cons for theindustry and the market.

Industry Entertainment-Satellite RadioReference No. MAA0120BYear of Pub. 2007Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Merger; satellite radio; XM; Sirius; FCC;Broadcast; Entertainment; Music;Subscriber; Monopoly; UBS; DirecTV; WallStreet; EchoStar; Dish Network

Seagate's Acquisition of Maxtor:Strengthening Storage

leadership?Seagate Technology planned to maintainand possibly expand its leadership in thedisk drive segment by the acquisition ofMaxtor Corporation in 2005. The identityof the disk drive business was centered on asqueeze between thin margins and avoracious appetite for R&D dollars.Seagate's additional purchasing potentialfrom Maxtor's customers would bring in alarger revenue flow to support its vision ofR & D.The deal worth US$1.9 billion would

probably give Seagate a steady revenuestream from enterprise products and morestrength to battle in other emerging andpromising storage market segments.Maxtor on the other hand was goingthrough a financial crisis since 2004.Seagate seized the opportunity and tookover Maxtor. The acquisition to becompleted in 6 months by May, 2006intended to strategically place Seagate totake advantage of Maxtor's presence insegments where it performed better. WillSeagate's acquisition of Maxtor pay off?Will it be able to strengthen its storageleadership with this acquisition? Was itinescapable that Seagate had no otherchoice than to expand, and that acquiringMaxtor, probably its most closely matchedcontender, was a matter of competitivenecessity? Could this “necessity” translateinto an advantage for Seagate?


• To understand Seagate's strategy toemerge as global leader in hard disk driveindustry

• To understand Seagate's expansionstrategy

• To understand the features of the harddisk drive industry

• To understand M&A strategy in the HardDisk Drive Industry.

Industry Hard Drive IndustryReference No. MAA0119BYear of Pub. 2006Teaching Note AvailableStruc.Assign. Available

Keywords

Seagate; Mergers, Acquisitions, AlliancesCase Study; Maxtor; Bill Watkins; C S Park;Acquisition; Hard drive Industry; StorageIndustry; Storage Leadership; Marketshare; Global presence; Financial crisis

Nestlé's Acquisition of JennyCraig: Health Conscious Effort?

Nestle, the world's largest chocolate andfood manufacturer announced in 2006, itspurchase of Jenny Craig, a weight-lossmanagement company based in California,US. The term 'Obesity' and 'Weight-Loss'were literal oxymorons and how could acompany like Nestle combine these two inits business? ask analysts. Industryobservers were highly cynical aboutNestlé's move into weight-loss business,since its traditional business of high-fat andsugary food manufacturing totallycontravened with its new venture. This casedetails the possible assumptions that wouldhave prompted Nestle to enter into thisnew business stream.


• To understand the weight loss industryin US

• To understand the problems of Nestle

• To understand Nestle's turnaround plans.

Industry Dairy and Food ProductsIndustry

Reference No. MAA0118BYear of Pub. 2006Teaching Note AvailableStruc.Assign. Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Nestle; US Food and Dairy Industry; WeightLoss Industry; Jenny Craig; ProductPortfolio; Nestle’s Acquisition of JennyCraig; Fair Trade Movement; Child Slaveryin Business; Business Portfolio; Diet/HealthFoods; FMCG; Inorganic Growth Strategy;Mergers and Acquisitions

Citigroup's Acquisition ofGuangdong Development Bank:

A Strategic Move in China?Citigroup, a leading global financialcompany with 200 million customers inmore than 100 countries had total revenuesof $83.6 billion in 2005. Citigroupoperated in four major business groups:Global Consumer, Corporate andInvestment Banking, Global WealthManagement and Citigroup AlternativeInvestments.

Citigroup was the first American bank toestablish its operation in China in 1902.Gradually, it became one of China's largestand most important banks. But due toChinese banking regulations, Citigroup wasnot able to offer many of its services. Tostrengthen its operations in China,Citigroup acquired 5% stake in ShanghaiPudong Development Bank for $67million in December 2002, and Citigroupled consortium acquired 85.6% stake inGuangdong Development Bank (GDB) for24.267 billion Yuan (US $3.06 billion) inNovember 2006. Citigroup retained themajority stake in the acquisition. GDB, amid-size national bank with assets of US$47.9 billion and 12 million customers hadextensive network of 500 branchesthroughout China. It also had significantSmall and Medium Enterprise cardholders.But, GDB faced weak capitalization andhigh level of non performing loans. Itscapital adequacy ratio was also belowregulatory requirement.

The case leads the discussion on WhetherCitigroup at the face of competitionhaving strong presence in China for over140 years would be able to capitalize onthe acquisition of GDB and strengthen itspresence in the Chinese banking sector?





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• To understand inorganic growth strategy

• To understand government policy andits impacts in Chinese banking sector

• To discuss the competitive scenario.


Reference No. MAA0117AYear of Pub. 2006Teaching Note AvailableStruc.Assign. Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Citigroup; Citigroup in China; Merger andAcquisition; Expansion Strategy; GrowthStrategy; Guangdong Development Bank(GDB); Foreign Banks in China; SelfService Banks in China; Minibanks inChina; Local Currency Business; ThePeople's Bank of China; China BankingRegulation Commission (CBRC); NonPerforming Loans; Big-Four Banks inChina; Competitive Banks; Joint Venture;Guangdong Province; Shenzhen; HSBC

Disney-McDonald’s: On theParting Ways

The entertainment giant Walt Disney andthe largest fast food chain McDonald'sCorporation had announced the biggestmarketing deal in 1996. For 10 years,Disney and McDonald's appeared to havethe perfect alliance where Happy Meals ofMcDonald's accompanied Disney's moviebased toys. The exclusive marketing pactfetched good benefits to both Disney andMcDonald's. However, In May, 2006Disney and McDonald's announced todiscontinue with the marketing alliance,which expired on January 1, 2007. Thedecision to discontinue the exclusivealliance posed many questions.

The case discusses the exclusive marketingalliance between the two companies indetail and highlights the consequences ofthe same. It highlights the reasons for thebreak-up of Disney-McDonald's decade oldmarketing pact and dilemmas regardingcross-promotional marketing future.


• To discuss cross-promotional marketingstrategy of McDonald's and Walt Disney

• To understand the genesis of themarketing deal and the reasons leadingto its break-up.

Industry Leisure and EntertainmentReference No. MAA0116AYear of Pub. 2007Teaching Note AvailableStruc.Assign. Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Walt Disney; McDonald's; MarketingAlliance; Biggest exclusive marketing pact;Happy Meals; Disney character toys; CrossPromotional Strategies; EntertainmentConglomerate; Fast Food Chain; HappyMeal Promotion; Marketing Partnership;Break-up of marketing partnership;Obesity; Corporate Social Responsibility

Citigroup's Acquisition of EggBank: The Spin-Offs

Egg Banking plc (Egg), a UK based onlinefinancial service provider was part ofPrudential plc, leading insurer globally. Egghad created strong brand name in UKmarket by providing innovative productsin banking, investment and insurance. Ithad 5% share in UK's credit card market.But, France operation of Egg bank remainedunprofitable and in 2004 it existed fromFrench market to focus on UK business.Meanwhile, condition in UK unsecuredmarket badly affected to Egg's performanceand in 2006 it reported loss reported lossof £145 million.

In 2007, Citigroup acquired Egg bank for£575 million ($1.13 billion) in cash fromPrudential. Citigroup expected to havesynergies in terms of Egg's customer baseand brand name that it had created in UKmarket.

The case details about Citigroupâ•™sinorganic growth strategies in UK market.Also, it details about how Citigroup be ableto capitalize the acquisition and able tocreate leadership position UK's financialmarket.


• To understand business spin-offs

• To study the online banking scenario inUK market

• To understand inorganic growth strategy

• To understand competitive scenario inonline banking market.

Industry BankingReference No. MAA0115AYear of Pub. 2007Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Online Banking Sector; Egg Bank;Prudential Plc.; Market DevelopmentStrategies; Targeting New ProductSegment; Competitive Scenario; WealthMaximization; Citigroup; Citigroup inBritain; Unsecured Lending Market; EggBank in France; Citigroup's Acquisition ofEgg Bank

China Merchants Bank:Challenging Times Ahead

China Merchants Bank (CMB) was sixthlargest share-holding commercial bankowned by corporate legal entities. It offeredwide range of product and services toindividual and corporate customers throughextensive network of more than 463branches, 747 self-service counters and2,288 ATMs located in 39 cities. CMB wasthe leading issuer of credit cards in China.It had 42% of the market share in China'sdual-currency credit card segment in 2005.Also, CMB was pioneer amongst othercommercial bank to launch a series of e-banking distribution channels like on-linebanking, phone banking, mobile bankingand self service banking in China.

But, China's accession to WTO in 2001promised opening up of finance sector byend of 2006. The foreign institutions wouldbe allowed to offer services in local currencyto all retail and corporate customers acrossthe country. In China, CMB faced stiffcompetition from Citigroup and HongKong and Shanghai Banking Corporation(HSBC) in the credit card segment. Also,CMB faced tough competition from the"Big-four" Chinese banks in terms of theirtotal assets base and extensive branchnetwork.

The case details about with the opening ofthe China's banking industry andstrengthening of competition, the timesahead for CMB were challenging.


• To understand Chinese bankcard market

• To study the market developmentstrategy adopted CMB

• To understand the competitive scenarioof Chinese bankcard sector

• To understand the impact of governmentpolicy.

Industry BankingReference No. MAA0114AYear of Pub. 2007Teaching Note AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;China Merchants Bank (CMB); ChineseBankcard Market; SWOT Analysis;Competitive Scenario; Foreign Banks inChina; Entry Level strategies; JointVentures; Strategic Alliance; BankingSector Reform in China; China UnionPay(CUP); "Big-four" Chinese Banks;Citigroup in China; HSBC in China

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Cedar Fair-Paramount Parks:Would the Acquisition payoff?

Amidst the growing global amusement parkindustry, the US industry had a great roleto play. Cedar Fair L.P., one of the keyplayers of the US amusement park industryacquired Paramount Parks, subsidiary ofCBS Corporation in June 2006 for $1.24billion in cash. The acquisition wasexpected to increase the geographicaldiversity and attain cash flow synergy of$20 - $30 million over the next 3-5 years.The combined entity of Cedar Fair –Paramount Parks was expected to attractattendance of 25 million and generaterevenues of $1 billion by 2007-09. In orderto finance the acquisition, repay earlierdebt and pay shareholder dividends, CedarFair planned to raise debt of $2 billion. AsCedar Fair already faced debt burden,financing the acquisition through debt wasa concern.

The case discusses the expected benefits,opportunities of acquisition and highlightsthe financial and product integrationchallenges of Cedar Fair.


• To analyse the US amusement parkindustry and factors affecting on it

• To understand Market penetration andProduct-line integration strategiesthrough acquisition

• To understand fund managementstrategies to build cash flow synergies incase of acquisition.

Industry Amusement Park IndustryReference No. MAA0113AYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Cedar Fair L.P.; Paramount Parks;Amusement Park Industry; Acquisition;Theme park; Walt Disney; Six Flags Inc.;Product line integration; CBS Corporation;Anheuser Busch Entertainment;Geographical diversity; Cash flow synergy;Public offering; International Associationof Amusement Parks and Attractions;Attendance; Market share; Revenue;Interest expense; Dick Kinzel; Debt; Publicbonds; Dividend; Innovativeness;Creativity

The Bank of America-MBNAMerger: Creating a Giant in theAmerican Credit Card Industry

Bank of America, the second largest bankin the US, acquired MBNA, the third largestissuer of credit cards in the US, enabling

the merged unit - Bank of America N.A. -to become the country’s largest issuer ofcredit. Bank of America adopted inorganicroute to grow. The merger was opposed bysome consumer advocacy groups. The casestudy highlights issues related to the mergerand its repercussions on the credit cardindustry.


• Analyse the American Credit cardindustry and share of Bank of America

• To understand the growth strategies ofBank Of America thorough in organicgrowth route

• To Analyse the effect of mergers andacquisition in the credit card industry.

Industry Credit CardReference No. MAA0112AYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Credit Card Industry; Bank of America;MBNA; banking; investment banking;merger, acquisition; competition;competitive strategy; monopoly;consumer action; synergy; United Statesof America (USA)

OneSteel – Smorgon SteelMerger: The Challenges Ahead

OneSteel was a major steel player inAustralian domestic market with anestimated market share of 30%. SmorgonSteel was also a major player in theAustralian steel industry and a keycontributor to the Australian economy.Their financial operation showed that itwas a well defined group with emergingeconomic growth.

The merger of OneSteel and Smorgon wasexpected to create successful leadershipposition in Australian steel industry. Theproposed merger was small on a global scalebut accountable for about 35% ofAustralia's production. The merger wasconsistent with the global trend ofconsolidation in the international steelsector.

The case discusses about OneSteel andSmorgon Steel's plans to combatcompetition from their main rivalBlueScope. BlueScope Steel's key potencyincluded low-cost operations, strongbrands, leading domestic market positions,and a growing presence in the markets ofAsia. The brands of BlueScope Steel weremarket leaders in Australia and New Zealandalong with strong presence in Asia.BlueScope had spent more than $350million to acquire 20% stake in Smorgon.

The case ends with a debate whether themerger of OneSteel and Smorgon wouldgenerate enough synergies for them tosustain competition. The merger wouldreduce the number of leading steel industryplayers and help eliminate competitionfrom the Australian steel industry. Whetherthe merger would provide value or provecostly for the industry as a whole?


• To understand the dynamics of theAustralian steel industry

• The impact of the merger of two industrygiants on the industry

• The post merger synergies to withstandthe competition

• To discuss the rationale behind mergers.

Industry SteelReference No. MAA0111AYear of Pub. 2007Teaching Note AvailableStruc.Assign. Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Steel industry; Restructuring; Technologicalleadership; Core Competency; Reinventingvision; Merger & Acquisitions; StrategicAlliances; OneSteel; Smorgon

Liverpool Football Club:Takeover by American TycoonsLiverpool Football Club was a leadingsports club in England. It had won 18 titlesin first division football, the highest forany football club in England.

In December 2006, Dubai's DubaiInternational Capital (DIC) approachedthe club with a takeover bid. DIC took itstime to study the club's books and offered£450 million for the club. At the sametime, two American businessmen GeorgeGillett and Tom Hicks launched their bidfor the club worth £438 million. DICwithdrew its offer, and Liverpool acceptedthe offer from the two Americanbusinessmen.

The case compares and contrasts the prosand cons of the two offers, and ends in adebate over the club's future success ratewith the new ownership.


• To understand the football sportsindustry and the valuation of a sportsclub

• To understand the revenue model of afootball club

• To debate on the Liverpool FootballClub's future success rate with the newownership.





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Industry Sports ClubReference No. MAA0110AYear of Pub. 2007Teaching Note AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Liverpool Football Club; Sports Club;Takeover; Valuation; bid comparison;Finances of a football club; revenue models;England football clubs; MontrealCanadiens; National Hockey League;Fédération Internationale de FootballAssociation (FIFA); International FootballAssociation Board; Business Strategy;George Gillett; Tom Hicks; ManchesterUnited; Malcolm Glazer

Hewlett Packard's acquisition ofMercury: StrengtheningPresence in CorporateApplications Software

Hewlett Packard (HP) was a US basedcomputer and printer giant. The computerand printing divisions contributed to morethan half of HP's revenues in 2005.HPwas considered a small player in themargin-rich software business. HP hadsoftware called Open View for corporateapplications. HP had an aim ofstrengthening its software business and hadmade a slew of acquisitions of softwarecompanies in the past.

In July 2006, HP acquired Mercury, a USbased software company specializing inBusiness Technology Optimisation (BTO),software which helped companies to ensurethat their information technology (IT)systems were working on business prioritiesand delivering maximum value. Analystsexpected BTO business to exceed $1.9billion in the coming years. HP believedthat the acquisition would help it instrengthening its presence in the corporateapplications software. The case discussesthe business model of HP and the possiblesynergies of the acquisition.


• The concepts associated with businessmodels of the computer companies

• The issues related to the differentbusiness segments in the software market

• The issues related to shift in the businessmodel by a computer company toconcentrate on the margin rich andbooming business segments

• The issues related to inorganic growththrough acquisitions

• The possible synergies of acquisition

• The challenges in store for the mergedentity after acquisition.

Industry IT (Information Technology)Reference No. MAA0109PYear of Pub. 2006Teaching Note AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Hewlett-Packard; HP open view; HPadaptive enterprise; Mercury portfoliomanagement; ERP

Gazprom and Rosneft Alliance:A Win-Win Strategy

From 2002 onwards, Russian companieswere outperforming Saudi counterparts inoil and gas production. Gazprom, abehemoth Russian company was the biggestnatural gas supplier in the world with amarket capitalisation of US$ 270 billionas of May 2006. Instead of cooperatingwith foreign companies, which were readyto invest in oil and gas explorationprograms in Russia, it signed an agreementof cooperation with Rosneft. Gazprom hadlocked horns with Rosneft regardingacquisition of Yukos, a company which wasfacing bankruptcy charges in 2000s.Eventually, major assets of Yukos wereacquired by Rosneft in 2004, which gavethe company access to more oil and gasresources. A merger negotiation betweenGazprom and Rosneft was also postponedin 2005. On November 29, 2006,Aleksei.B.Miller andSergei.M.Bogdanchikov, the chiefexecutives of Gazprom and Rosneft, agreedto form joint ventures for exploration ofnew oil reserves, building petrochemicalplants, and to bid on field licenses outsideRussia. But there were many challenges too.The major stakeholder in both thecompanies was the Russian governmentand changes in political administrationcould affect corporate decisions. The UGSpipeline of Gazprom passed through manycountries in Europe and was prone toattacks of terrorism. There were incidentsof corruption and sleaze, and both thecompanies had debts to the tune of 10-12billions. This move was also considered ashift towards nationalization as it meant aconfluence of two companies forcooperation which had large state holdings.The case allows for discussion on the futureof the alliance, the synergies and challengesthat would emerge.


• To discuss Russian oil and gas industry

• Gazprom & Rosneft- Two leading oiland gas producing companies in the world

• Alliance between the two companies andsynergies possible.

Industry Oil & Gas IndustryReference No. MAA0108CYear of Pub. 2007Teaching Note AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Gazprom; Rosneft; Yukos; Sibneft; UnifiedGas Transportation System ( UGS); VolgaUral Region; Western Siberia; RussianGovernment; Alexei.B.Miller; Sergei.M.Bogdanchikov; Russian oil Industry; OilReserves; Natural gas; Nationalisation;Petrtroleum and Natural gas exploration

Sirius and XM: Should TheyMerge to Perform Better?

The Federal Communication Commissionallowed use of "S" band for satellite radiobroadcast in 1997. Out of 8 companieswhich applied in 1997, only XM and Siriuswere granted permission. XM was launchedon September 25th 2001, in San Diegoand Dallas. Sirius, headquartered in NewYork, began its operations officially in2002. Both of these services had more than130 channels which hosted programsvarying from music, talk shows, sports andweather. More than 200 million US citizensstill listened to territorial radio, where ascombine subscriber base of the satelliteradio companies was just 14 million as of2006. In order to attract more subscribers,Sirius agreed to pay $100 million a year toHoward Stern for hosting shows. XM madeagreements with celebrity talk show hostslike Oprah Winfrey and Ellen DeGeneres.As of 2006, the content spending andother expenses resulted in huge loss forboth the companies. In the wake of internetradio, HD radio and alternate digitalservices becoming popular in US, accordingto them, merger option was a tool forsurvival. On February 19th 2007, thecompanies agreed to merge together toavoid losses and to differentiate their radioservices from other budding technologies.FCC in the US, which gave licences, wasnot forthcoming in approving the mergerbecause they were doubtful of formationof monopoly, even though they had manyalternate competitors.


• To discuss US Radio Industry and changesin radio entertainment

• Different forms of radio services in US

• Role of XM and Sirius in the satelliteradio industry

• A duopoly looking for consolidation forsurvival.

Industry Radio IndustryReference No. MAA0107CYear of Pub. 2007

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Teaching Note AvailableStruc.Assign. Not Available

Keywords

Mergers,Acquisitions,Alliances CaseStudy;Sirius; XM; satellite Radio; HD Radio;Howard Stern; Oprah Winfrey; SportsChannels; Music Channels; Mel Karmazin;Gary Parsons; Federal CommunicationsCommission; Consumer Federation ofAmerica

YouTube's acquisition byGoogle – Issues and ChallengesYouTube, the most popular video sharingwebsite boasted of a viewership of 34million visitors each month and its userswatched more than 100 million videos perday. Started as a viral video site it had grownto a Web phenomenon within a span ofone year and remained one of the keyinstances of success in Web 2.0. Thoughthe content on YouTube was entirely user-generated some people posted music andvideos they did not have the right to postthereby violating copyright laws. However,YouTube immediately removed the clipsonce a copyright violation was brought toits notice. To avoid potential lawsuits thecompany had signed agreements withvarious music companies and was in theprocess of creating technology that wouldhelp identify and prevent copyrightedmaterial from being uploaded.

Despite the fact that user generated videowebsites were a great success, YouTube didnot have a proven business model and wasunclear about how it would generate revenuein the future. On October 9, 2006, Google,the world leader in Internet Searchannounced that it would acquire YouTubefor US$1.65 billion in stock which wasconsidered the most expensive deal madeby Google during its eight-year history.This case gives an overview of theinception of YouTube, its growth and thereasons for its prime success on the web. Italso depicts the possible synergies andchallenges that would emerge followingGoogle's acquisition of YouTube and howit would facilitate YouTube deal with itscopyright infringement troubles and adopta profitable business model.


• To discuss success strategies for web 2.0companies

• To discuss how companies can integrateacquired companies into their businessmodel.

Industry Internet (Web 2.0)Reference No. MAA0106CYear of Pub. 2007Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;YouTube; Google; Web 2.0 companies;Social Networking sites; Acquisition; Videosharing websites; Chad Hurley; Eric Schmidt;MySpace; Google Video; YouTube’scopyright issues Web Traffic;Competition; User generated content; Viralvideo sites

Capgemini's acquisition ofKanbay International: The Road

AheadCapgemini was one of the world's leadingproviders of Consulting, Technology,Outsourcing and Local Professional Serviceswith regional operations in North America,Northern Europe, Asia Pacific and Central& Southern Europe. On October 26, 2006Capgemini announced its acquisition ofKanbay International, a global IT servicesfirm that offered management consulting,technology integration, applicationdevelopment and outsourcing solutionsmainly in the financial services vertical.Kanbay was a US based company with astrong presence in the American and Indianmarket. The acquisition, valued at $1.25billion and scheduled to be completed byearly 2007 was an all cash deal that soughtto address Capgemini's shortcoming in thefinancial services market and its beleagueredpresence in the U.S. market. The transactionwas also intended to help Capgeminiconsolidate its presence in the Indian marketby adding up Kanbay's employees to itsIndian workforce thereby making it the thirdbiggest non Indian player in terms of thetotal headcount in the country next only toIBM and Accenture.

The case outlines the establishment ofCapgemini, its growth and the spate ofacquisitions over the years. It providesinsight into the rationale for its acquisitionof Kanbay by highlighting the potentialbenefits of enhancing its presence in theUS financial services market, augmentingits business process outsourcing offeringsand gaining an edge over its Europeancounterparts in the offshore region byscaling up its Indian operations. The mainissue the case tries to highlight is theconcern raised by industry analysts aboutthe Kanbay acquisition in the backdrop ofCapgemini's troubled acquisition of Ernstand Young which had not yielded thedesired synergies. This was mainlyattributed to differences in the cultures ofboth the entities. It was to be seen ifCapgemini would successfully integrateKanbay into its portfolio.


• To discuss acquisition strategies followedby companies for inorganic growth

• To discuss how companies can handlepost acquisition challenges.

Industry Outsourcing IndustryReference No. MAA0105CYear of Pub. 2007Teaching Note AvailableStruc.Assign. Not Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Capgemini; Kanbay; Global ConsultingCompanies; Global IT Services Industry;Acquisition; Ernst and Young; PaulHermelin; Raymond Spencer; BFSI Space;Financial Services Market; I Cubed StrategyBaru S Rao; Competition; InorganicGrowth; Outsourcing market

Disney & Pixar: On the Road toMerge

In January 2006, various Wall Streetanalysts speculated that Disney, one of thelargest motion picture studios in the world,was planning to acquire Pixar AnimationStudios, the producer of hit animationmovies, such as Toy Story, Finding Nemo,The Incredibles, etc. With its traditionalhand-drawn animation business declining,Disney was looking for ways to preserveits animation business. The company hadan agreement with Pixar to distribute andmarket animation movies produced by thelatter which was scheduled to end in June2006. As the agreement came closer to anend, Disney considered various options,including a takeover, a stake in Pixar or anextended agreement. While the first optionwas most likely, analysts debated whetherthe two should merge or not. The casestudy outlines a brief history of theanimation industry as well as the evolutionof the computer animation. It alsoattempts to give a short description of boththe companies. Finally, it tries to give abrief account of the present situation andhow a takeover would affect both thecompanies.


• To discuss the pros and cons of a possiblemerger between Disney and Pixar

• To get a brief idea of the history ofanimation

• To understand the emergence ofcomputer animation

• To get a detailed account of the twocompanies – Walt Disney Company andPixar Animation Studios.

Industry EntertainmentReference No. MAA0104KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available




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Keywords

Disney; Pixar; Merger; EntertainmentIndustry; Animation.

Origin Energy’s Merger withContact Energy: In Quest OfGreater Scale and Diversity

In February 2006, the energy industry inAustralia witnessed a sea change whenOrigin Energy Ltd., the leading Australianenergy company, decided to merge withContact Energy Ltd., New Zealand’s secondlargest electricity generator. The cross-border merger created Australia’s largestintegrated energy group with a marketcapitalisation of A$7 billion. The mergertook place by way of dual-listed companystructure and aimed to benefit both theshareholders by creating grater scale anddiversity.

The case, while providing a broad overviewof the two energy companies, offers scopeto discuss the synergies of the merger andthe probable pay offs.


• To understand the dynamics of a cross-border merger

• To discuss the synergies associated witha merger with specific reference toAnsoff’s Product/Market Mix

• To understand the dynamics of theenergy sector in Australia and NewZealand

• To understand the dynamics of a DualListed Company (DLC) structure

• To discuss the convergence in the energymarket and its impact on the globalbusiness environment.

Industry EnergyReference No. MAA0103KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Origin energy; Natural resource; Energy;Merger.

At&T’s Merger with Bellsouth:Creating a One-Stop Shop

In March 2006, AT&T Inc. (AT&T), thelargest telecommunications company inthe US, announced a $67 billion mergeragreement with BellSouth Corporation(BellSouth), a leading telecommunicationscompany in the US. The merger was aimedto create a nimble and efficient companythat would be better equipped to embracethe industry’s shift to Internet Protocol

network-based technologies. At the sametime, the merger intended to simplify theownership structure of Cingular Wireless,the largest mobile phone company in theUS, which was jointly owned by bothAT&T (60%) and BellSouth (40%).

The case, while providing a broad overviewof the two telecom companies, offersscope to discuss the synergies of the mergerand the probable pay offs.


• To understand the synergies associatedwith a merger and the probable pay-offs

• To understand the competitive forcesof the US telecommunications industry

• To discuss the strategic shift of telecomcompanies from traditional services tobundled offering of video, data and voiceservices through broadband Internetaccess and network expansion

• To discuss the viability of AT&T –BellSouth merger and its impact on thebusiness portfolio in the long run.

Industry TelecommunicationReference No. MAA0102KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

AT&T; BellSouth; Economics of scale;Economics of scope.

Alcatel And Lucent Merger:Creating A Telecom Titan

In the first half of 2006, Alcatel decided tomerge with Lucent and create the largestand most experienced global services andsupport organisation in the industry. Themerger was set to generate combinedrevenues of about •21 billion ($25 billion)based on 2005 calendar results and create aglobal leader in converged network andservices. The merger further aimed tocapitalise on the emerging market demandsfor high-end technologies, includingcritical safety and security applications.

The case, while providing a broad overviewof the two telecom companies, offersscope to discuss the synergies of the mergerand the probable pay offs.


• To understand the dynamics of a cross-border merger

• To critically analyse the impact of globalconsolidation of thetelecommunications industry

• To understand the synergies associatedwith a merger

• To discuss the viability of Alcatel-Lucentmerger and its impact on the businessportfolio in the long run.

Industry TelecommunicationReference No. MAA0101KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

KeywordsTelecom; Landline; Cellular; AT&T;Alcatel; Lucent; Merger; Acquisition.

Novartis’ Acquisition of Chiron:Access to vaccine market

Novartis AG (Novartis) was a leading globalpharmaceutical (pharma) company. In therecent times, the company had notachieved much success in developing newdrugs. Moreover, many of its drugs hadeither lost patent protection or were goingto face the same in the next few years.The company was facing toughcompetition from generic drug makers,which had adversely affected its futuregrowth prospect. In order to retain itsleading position in the pharma industry,the company diversified into othersegments, thereby expanding its productportfolio and geographic reach. In 2005,Novartis acquired the Chiron Corporation(Chiron), a leading pharma companyhaving strong presence in vaccines, bloodtesting and biopharmaceuticals. This casedeals with Novartis’ acquisition of Chiron,which would help the former to enter intovaccine and blood testing businesses forthe first time and strengthen itsbiopharmaceuticals business segment. Thecase has provided background notes on thetwo companies and a detailed descriptionof the pre-merger scenario of Novartis. Italso discusses the acquisition deal in details.The case puts forth the rationale behindthe acquisition and the expected benefitsfor Novartis. It finally discusses thepossible challenges which Novartis can facein the near future. The case also provides adetailed note on the structure and futuretrends of the global vaccine market.


• To understand global vaccine market

• To understand the growth strategythrough acquisitions.

• To analyse the rational behind any M&Adeal.

•· To analyse framework for successfulmerger, blueprint for integratingacquisitions

• To discuss strategic reasons for M&Avalue creation.

Industry Pharmaceutical IndustryReference No. MAA0100K

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Year of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Novartis; Chiron; Vaccines; HIV; NATTechnology.

Lenevo’s Acquisition of IBM’s PCDivision – The Making of a

Legend?The case discusses the mega acquisition ofthe world’s third-largest PersonalComputers (PC) manufacturer – IBM, bythe world’s ninth largest, PC manufacturer– the China based Lenovo, creating one oflargest PC manufacturers in the world. Afterproviding a brief note on Lenovo, the casediscusses the details of the IBM PC business– its entry, rise and decline. The casediscusses the rationale behind theacquisition and the benefits which Lenovowas expecting from it. The case thenexplains the acquisition deal in detail. Itfinally discusses the possible challengeswhich Lenovo could face in the near future.The case also provides a detailed note onthe structure of the global PC industry, itsmajor players and the recent trends.


• To understand the growth strategythrough acquisitions

• To analyse the rational behind any M&Adeal

• To analyse framework for successfulmerger, blueprint for integratingacquisitions

• To discuss strategic reasons for M&Avalue creation.

Industry Personal ComputersReference No. MAA0099KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Lenevo; IBM; M&A; Global PC market.

AMD’s Acquisition of ATI: ShouldIntel Worry?

In 2006, AMD planned to acquire graphicschip maker ATI in a deal of $5.4 billion.The merger posed a threat and challengeto Intel, the world’s largest chip maker.This acquisition would broaden AMD’sproduct portfolio and would get rid of itsimage as a seller of microprocessors only.The new entity would synergies bothAMD’s strength of fast computing powerwith ATI’s specialty in delivering detailedgraphics onto a single chip. The case deals

with the background of both companiesAMD and ATI. It also gives an insight intothe PC and chip industry overview withthe expected potential synergies of theacquisition.


• To understand the PC and chip industry

• To discuss the competition between theprocessor companies

• To analyse the competitive advantagesof the acquisition.

Industry Microprocessor & DSPReference No. MAA0098KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

AMD; ATI; Intel; Semiconductor;Processor; Chip.

Ranbaxy’s Acquisition ofTerapia: Creation of the LargestGeneric Company of Romania

In March 29th 2006, Ranbaxy LaboratoriesLimited, the leading pharmaceutical andgeneric drug company of India, announcedthat it would acquire Terapia, the largestindependent generic company of Romania.Ranbaxy announced that it would acquire96.7% of Terapia at USD 324 million fromits parent investing company, AdventInternational. The deal, expected to becompleted within the second quarter of2006, was valuable for Ranbaxy. With theUS generic market gradually shrinking, anumber of governmental regulations to beadhered to, and the price erosion in themarket, Ranbaxy had to shift its focus toEurope. With a considerable foothold overthe country’s generic market, Ranbaxyintended to cross the threshold of the otherhigh growth generics markets of Europe.

The case focuses on Ranbaxy’s inorganicgrowth strategies and the various marketfactors that it considered while enteringthe lucrative generic market of Romania.It also provides a brief description of theUS, European and the Romanian genericmarket. Such information, coupled withthe company backgrounds of the twocompanies, would help in analysingRanbaxy’s chances of establishing a strongfoothold over the Romanian andsubsequently the European generic market.


• To discuss the European Genericpharmaceutical market

• To discuss Ranbaxy’s inorganic growthstrategies and the various market factorsthat it considered while entering thelucrative generic market of Romania


Industry PharmaceuticalReference No. MAA0097KYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

Ranbaxy; Terapia; Drug market in CEE;Generic Drug Market.

Dell’s Acquisition of AlienwareOn March 22nd 2006, Dell Incorporation,the world's largest PC (personal computer)manufacturer, officially announced that ithad acquired Alienware Corporation for anundisclosed sum. The US-based privatecompany, Alienware, was a branded leaderin the high-end gaming PC segment in theUS. Dell entered the gaming PC market inAugust 2005 with its XPS range of PCs.With the acquisition of the leader(Alienware), Dell expected to have agreater share of the gaming PC market.Dell would also gain knowledge in industrialdesigning and marketing of gaming PCs,which it could successfully implement forits own XPS range. On the other hand, theacquisition helped Alienware to ventureinto newer product lines and newer countrieswith Dell’s financial backing. It would alsogain out of Dell’s strong logistic supportsystem. Analysts were skeptical about theacquisition as Dell’s previous acquisitionswere not very successful. There was achance of cannibalisation of Dell’s XPSrange by Alienware’s gaming PCs. The casedeals with the synergies and challenges ofthe acquisition of Alienware by Dell. It alsoprovides a brief overview of the twocompanies.


• To discuss Dell’s strategy of entering intoa newer market-the gaming PC market

• To discuss the possible synergies andchallenges of the acquisition

• To discuss the global gaming PC market.

Industry PCReference No. MAA0096KYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

Dell; Alienware; Acquisition; XPS Range;Cannibalisation; Gaming PC(personalcomputer); Nelson Gonzalez;Voodoo PC; Falcon Northwest; Organicgrowth; Product development; Supplychain; Michael Dell; Mark Vena; OEM(original equipment manufacturer).





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The Adobe-MacromediaMerger

Adobe Systems was a leading developer ofvarious graphics and publishing suites, likeAcrobat, Photoshop, and Illustrator etc.On April 18th 2005, it announced theacquisition of Macromedia (a popular namein multimedia authoring and webdevelopment) for US$3.4 billion. Thefuture prospects of the newly mergedentity became a significant issue as analystsgave divergent opinions on the merger.Some felt that through acquisition the twocompanies could offer better products andsolutions. While few others feared that thecombination would lead to greater controlof the two companies in the publishingand multimedia business. The case intendsto provide a broad profile of the twocompanies, the competitive scenario in themarket, and the various factors that led tothe acquisition. The case also discusses thesynergies the two companies could drawupon for leverage in the new, emergingmarkets.


• To discuss the broad profiles of the twocompanies before merger

• To discuss scenario in the market, andthe various factors that led to theacquisition

• To discuss the synergies the twocompanies could draw upon for leveragein the new, emerging markets.

Industry Application SoftwareReference No. MAA0095KYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

Adobe; Macromedia; PDF; Flash;PostScript.

Sun’s Acquisition of StoragetekSun Microsystems had been struggling hardto manage its operations, ever since it wasstruck by the dotcom bust. By the end offiscal year June 2004, Sun had revenues of$11.2 billion. Its hardware business wasstumbling due to intense competitivepressures from IBM, Hewlett-Packard andDell. Further, its Solaris operating systemstruggled against Linux, Windows and UNIX.In the new business scenario, storage emergedas one prominent area where an increasingnumber of companies consolidatedthemselves to seek competitive leverage.The rapid digitisation of information, theexpansion of the Internet, the increasingbusiness needs for data storage and security,along with the new regulatoryenvironments, collectively pushed thedemand for storage. The merger statement

issued by Sun, underlined thecomplementary product and service profilesof the two companies. This case provides aholistic understanding of Sun’s productprofiles, the difficulties it faced in the postdotcom era and the rationale behind theacquisition of Storagetek.


• To discuss the product portfolio of SunMicrosystems

• To discuss the difficulties the companyfaced in the post dotcom era

• To discuss the synergies and challengesbehind the acquisition of Storagetek.

Industry Servers and MainframesReference No. MAA0094KYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

Sun; Storagetek; Server; Solaris; Sparc;Tapes; Hard disks.

Seagate’s Acquisition of MaxtorOn December 21st 2005, Seagate acquiredMaxtor for US$1.9 billion. Owing to therising competition and falling prices ofpersonal computer hardware, Seagate wasfinding it increasingly difficult to leverageits market leadership in hard disk storage.Many analysts felt that the acquisition ofMaxtor was a visibly planned move bySeagate to consolidate its position in thehard drive business and stop a further fallin prices. This case provides the readerwith a broad overview of the twocompanies, the hard disk storage marketscenario, the synergies of acquisition andthe road ahead.


• To provide a broad overview of the twocompanies and the hard disk storagemarket scenario


Industry Data Storage DevicesReference No. MAA0093KYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

Seagate; Maxtor; Storage.

Ultra Tech – Acquisition of L&TCement by Grasim

Grasim, a leading Indian business group,has acquired the majority stake in Ultra

Tech Cement Co. Ltd. (Ultra Tech.), thenew identity for the de-merged cementbusiness of Larsen & Toubro (L&T). Withthis, Ultra Tech has become a subsidiary ofGrasim. The acquisition which took twoyears to complete, is the biggest ever inthe Indian cement industry. Grasim believesthe merger will help it to attain economiesof scale and enjoy a pricing advantage. Onthe other hand, L&T hopes the de-mergerwill sharpen its focus on its core businessareas such as hi-tech engineering and high-end construction. Will Grasim be able toexploit the full potential of the deal?


• To discuss the trends and patterns inbuilding material industry

• To discuss the merger and acquisitionprocess in building material industry

• To discuss the process of acquisition andproblems of acquisition.

Industry CementReference No. MAA0092KYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

Ultratech; L&T; Grasim; Building materialindustry; M&A; ACC.

ThyssenKrupp AG: ConsolidatingPresence in the US

ThyssenKrupp AG, the largest steelcompany of Germany, offered to acquirethe largest steel company of Canada,Dofasco Inc. Luxembourg-based ArcelorSA, the world’s second largest steelcompany, also intended to acquire theCanadian company. Dofasco Inc. is aleading automotive steel manufacturer andsupplies to the leading automobilemanufacturers of the US. Both Arcelor andThyssenKrupp are the suppliers ofautomotive steel to the Europeanautomobile industry, intending to make aforay in the US automotive steel industry.Being a major supplier to the leadingcarmakers in the US, Dofasco Inc. is theobvious choice for both the companies.However, the analysts are skepticalwhether the high price for Dofasco will bea prudent decision in the long run. Thecase provides a scope for discussing therecent trends in the global steel industry. Italso analyses how ThyssenKrupp plans toleverage its investment and overcome thechallenges.



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• To discuss acquisition process of DofascoInc. by ThyssenKrupp AG, potentialsynergies and problems associated withthe acquisition


• To discuss the key factors which makean acquisition a successful one

• To discuss in details about the problemsof acquisition and how the maximumleverage can be gained

• To discuss, the bidding process andfunding of an acquisition

• To discuss the value chain of the steelindustry and primary steel makingprocess and secondary steel makingprocess.

• To discuss the concept of ‘WhiteKnight’, ‘Black knight’ and ‘PoisonPill’.

Industry SteelReference No. MAA0091KYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

ThysenKrupp; Value chain; Steel IndustryDynamics.

Mittal’s Biggest Gamble: Bid forArcelor

On January 26th 2006, Laxmi Niwas Mittal(popularly known as LNM), chairman andCEO of Mittal Steel, the world’s largeststeel company, made a bid for Arcelor SA,(the world’s second largest steel company).In the era, when consolidations andacquisitions were common practices in theindustry, Mittal Steel’s new move wasexpected to help it in consolidating itspresence more aggressively. The proposedacquisition price of US$ 23 billion, was thebiggest in the global steel industry. Theproposal was, however, strongly opposedby Arcelor’s management and the entireEurope was divided on the issue. SinceMittal Steel produced cologne, Arcelor,being the producer of perfumes only,claimed that the merger between the twocompanies was not possible. Even theFrench Government and LuxembourgGovernment strongly opposed MittalSteel’s move. The concept of corporatexenophobia followed the move. WhileLNM defended the move from the pointof view of the benefit of the global steelindustry and identified in it the geographic,commercial, manufacturing andoperational synergies, Arcelor denied it.The French and Luxembourg governments,moreover, accused LNM for poor

management style and were afraid that theacquisition would result in job loss. Thecase study offers a scope for discussing therationale of the acquisition in the recentglobal trends, the value chain of the industryand how Mittal Steel plans to leverage it.The case study also allows the discussionof how Mittal Steel can leverage theacquisition by strengthening its positionacross the globe.



• To discuss acquisition process of Arcelor,the largest steel company of Europe andsecond largest globally by Mittal Steel,potential synergies and problemsassociated with the acquisition


• To discuss the key factors which makean acquisition a successful one

• To discuss in details about the problemsof acquisition and how the maximumleverage can be gained

• To discuss, the bidding process andfunding of an acquisition.

Industry SteelReference No. MAA0090KYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

Mittal Steel; Arcelor; Xenophobia;Consolidation.

LNM and ONGC: CreatingGlobal Energy Powerhouse

In July 2005, Laxmi Niwas Mittal,chairman of world’s largest steel company,LNM group and Subir Raha, chairman ofIndia’s largest oil producing company,ONGC signed an agreement to float twoCyprus based companies (ONGC-MittalEnergy Ltd and ONGC-Mittal EnergyServices Ltd) in order to acquire overseasoil and gas assets and energy-relatedbusinesses. The deal would help the twocompanies to set up an energy consortiumglobally. The two new entities would takeup projects related to exploration,development, production, evacuation andrelated consequential processing ofhydrocarbons, in the form of oil,condensates and gas (including LNG).These activities would be carried out in 25countries where LNM group had strongpresence. For ONGC, the new strategy was

to lay a strong foothold in a number oflucrative acreages, against stiffcompetition from international oilcompanies, in the Middle East, Central Asiaand East European countries. For the LNMgroup, which had capitalised on the steelboom, it was a move onto yet another‘hot’ commodity, oil and gas. But, its firstfutile bid for PetroKazakhstan proved thatLNM’s business influence would not workwonders all the time and it was not also atpar with global oil majors like Chevron,BP and Exxon-Mobil. ONGC-MittalEnergy Ltd would bid for Kurmangazyoilfield in late 2005. Industry analysts,across the globe and major oil companieswere keeping a close watch to see howsuccessful the joint venture would turn outto be over time.


• To understand the changing dynamicsof global steel industry and oil and gasindustry

• To understand the concept of SpecialPurpose Vehicle (SPV)

• To understand when a company opt fordiversification strategy

• To understand how to integrate twodifferent company from two differentindustry

• To understand how to make an alliancea successful one

• To understand the problems of makingan alliance work

• To understand the upstream and downstream activities of global energyindustry.

Industry PetrochemicalReference No. MAA0089KYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

Mittal Steel; ONGC; SPV; LNM-ONGCEnergy Services Limited; OVL.

MTV-Google Alliance: SharingVideo Across The Online Media

In August 2006, MTV Networks formed astrategic agreement with Google to shareits video content across Google’s network.The innovative video distribution modelenabled Google to distribute ad-supportedvideo content to niche websites and blogstargeted at teens and young adults. Withonline advertising market forecasted togrow to $26.4 billion by 2010, the dealaimed to generate interests among contentowners, web publishers and advertisers, andcreate new revenue opportunities for bothGoogle and MTV.




110www.ibscdc.org

The case offers scope to discuss theemerging avenues in the Internet in thebackdrop of the video distribution deal ofMTV and Google.


• To understand the changing dynamicsof video content in the Internet

• To discuss the growing significance ofonline advertising as a leadingadvertising vehicle for companies

• To discuss the business model of Googleand its sustainability in the long-run

• To discuss how brand awareness could beincreased by innovative marketingcampaigns

• To critically analyse the competitiveforces shaping the video content industryin the Internet.

Industry EntertainmentReference No. MAA0088KYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

MTV; Google; Online media; Lifestylemedia; Distribution strategy; Adwords.

Nokia and Siemens: Creating aTelecom Alliance

Nokia, the world’s largest manufacturer ofmobile phones and Siemens Informationand Communications, the information andcommunication divisions of Siemens AGwere to merge their mobile and fixed-linephone network equipment business in orderto create one of the world’s largest networkfirms. On June 19th, 2006 Nokia andSiemens had announced their intention tomerge the Network Business Group ofNokia and the carrier related operationsof Siemens into a new company, whichwas named as Nokia Siemens Networks.The 50-50 joint venture was to be based inNokia’s home country of Finland. It washeaded by Simon Beresford-Wylie; he wasto run the company. Nokia SiemensNetworks had predicted annual sales ofUS$20.2 billion. The joint venturepositioned itself to develop and implementthe revenue generating and cost savingproducts and services, which also expectedto be benefited by their global reach. Inthis regard they had also planned to saveup to US$2.75 billion by the year 2010.They were quite hopeful of creating oneof the world best Research andDevelopment teams, which would have theability and competency to provide theinnovative skill to produce the nextgeneration fixed and mobile productplatform and services.


• To understand the generic motives ofstrategic alliance

• To discuss how to develop strategy forsuccessful JV with reference to Nokiaand Siemens

• To analyse critical issues of JV.

Industry TelecommunicationReference No. MAA0087KYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

Keywords

Nokia; Siemens; Mobile Phone; 3G.

Tata Steel’s GlobalisationStrategies - The Acquisition Bidfor Corus and the Strategic Fit

On October 17th 2006, India’s largestprivate steel-maker, Tata Steel, bared itsbold bid to acquire Anglo-Dutch steel-maker, Corus, almost five times the sizeof the bidder. The proposed takeovercreated an uproar in business circles becauseof the audacity of the proposed deal. If thetakeover bid was to be approved by Corus’shareholders, Tata Steel would be the world’sfifth largest steel producer. Varioussynergies – like economies of scale, strongdownstream business operations, enhancedR&D, and a wide distribution network –were expected to emerge out of the deal.However, there were also many concerningissues that needed to be addressed.

As Tata Steel was preparing for theExtraordinary General Meeting scheduledon December 4th 2006 for presenting itsbid to the Corus shareholders, there was anunexpected twist in the tale. On November17th 2006, Brazilian steel-maker, CSNentered the fray. The synergies that itexpected from the deal were similar to thatof Tata Steel and its bid amount was largerthan Tata Steel’s. While Tata Steel bidCorus for $8.1 billion, CSN jacked the bidprice with a ‘potential offer’ of $8.3 billion.A gripping scenario seemed to be in theoffing, whose suspense could be solved byCorus’ shareholders when they decidewhich company can be a better partner forgrowth in the long run.


• To analyse the competitive dynamicsin the global steel industry and determineits critical success factors and the keyresult areas

• To analyse the competitive advantagesof Tata Steel and its globalisation strategy

• To analyse the strategic rationale forthe acquisition of Corus by Tata Steel

• To perform a comparative analysis ofTata Steel and CSN, for determining whomakes a better partner for Corus

• To identify the alternative optionsavailable to Tata Steel, if the deal doesnot go through.

Industry Steel IndustryReference No. MAA0086Year of Pub. 2006Teaching Note AvailableStruc.Assign. Available

Keywords

Mergers, Acquisitions, Alliances Case Study;Steel Industry; critical success factors;Industry Structure and competitivedynamics; Arcelor-Mittal; Nippon Steel;POSCO; Baosteel; JFE Steel; CSN; Corus;Industry Trends; China Factor; Key ResultAreas; Game Theory; Vicious cycle ofdemand and supply imbalance; World Steelproduction and Consumption;Consolidation – Acquisitions and Mergers;Tata Steel; Ratan Tata; GlobalisationStrategies; Organic and Inorganic growth;Rationale for Bid, Economies of Scale;access to raw materials; R&D; StrategicFit; Financial Analysis; Cultural fit;Integration issues; Bidding war

Telefonica’s Strategy for Growthin Europe: Acquisition of O2?

In 2005, the Spanish telecom giant,Telefonica made a bid for O2, a Britishwireless carrier. The bid created headlinesfor being the second largest ever all cashoffer in telecom history. Withconsolidation taking place on a major scalein the European telecom sector, Telefonicatoo looked for a channel for expansion inthe booming sector. The case chroniclesthe expansion strategies of Telefonica andthe reasons behind its bid for O2.


• To make students understandtelecommunications industry worldwide

• Spanish telecom giants acquisition of O2,its strategies behind it.

Industry TelecomReference No. MAA0085CYear of Pub. 2006Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Telefonica; O2; Europe; Latin America;Telecommunication; Spain; Acquisition;Telefonica Moviles; Cesar Alierta; PeterErskine.

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Fiat Auto SpA – Tata Motors’ JointVenture

Fiat Auto SpA and Tata Motors hadannounced their joint venture tomanufacture passenger vehicles, enginesand transmissions for Indian and overseasmarkets. Fiat India’s Ranjangaon plantwould be used for this venture and its plantin Cordoba, Argentina was to be used forthe manufacture of Tata’s commercialvehicles which were to be distributed inLatin American and European marketsthrough Fiat’s network.

Fiat India, with no significant sales and nonew successful car launches in India, waslooking for Tata’s established dealernetwork and would also get vehiclefinancing for its customers.. Tata Motors,in turn, was gaining technology, theunutilised plant capacity of Fiat and mostimportantly a reliable and cost effectiveengine for its proposed INR one lakh car.

The case outlines the backdrop of theAutomobile industry in India, thebackground of these companies, theirperformances and the need for them toforge a venture taking the Indian, LatinAmerican, Chinese and European marketsinto consideration. It also looks into thevarious strategies adopted by the partnersto get the best out of the joint venture.


• To make students realise the strategiesbehind global joint ventures

• To evaluate the actual cost-benefitanalysis of Tata Motors and Fiat Autoon this venture

• To understand the joint promotion anddistribution network of automotiveindustry.

Industry Automobile Industry in IndiaReference No. MAA0084CYear of Pub. 2006Teaching Note AvailableStruc.Assign. Not Available

Keywords

Tata Motors; Fiat Auto SpA; Tata Motors’One lakh car; Strategic partnership;Automobile marketing network in India;Automobile financing in India; Plantutilisation; New car launches; Reengineeredplastic components for cars; Joint venture;Automobile marketing in Europe; TruckMarket in Latin America; Technology anddesign transfer; Cross branding; Small carmanufacturing.

BBC-Microsoft Tie-up: Strategyfor Next Generation Digital

PresentationBritish Broadcasting Corporation, BBC hadentered into tie up with Microsoft in 2006

to take it into next generation digitalpresentation of its content. Fallingviewership for conventional newspresentation in television had resulted inBBC’s Board of Governors to announcenew media initiatives which assessed BBC’scurrent stature and its need to cater toyounger audiences who are on the move.BBC had Channels offering 24x7presentations which were increasingly puton internet and interactive channels forspecific groups were also floated. Uploadingand downloading images were made possibleand search on BBC’s exhaustive archivecontent was also open. BBC felt that thesemeasures were not enough and looked foralliance partners who could radically alterits presentation platform to suit nextgeneration requirements. After scoutingRealNetworks, IBM and LindenLaboratories, BBC tied up with Microsoft.

As its director general, Mark Thompson,had quoted that BBC needed a creativeresponse to the amazing, bewildering,exciting and inspiring changes happeningin both technology and expectations, theMoU outlined its emphasis that BBC’scontent delivery and consumption will beexplored for the next generation platform.Potential areas of collaboration will includesearch and navigation, distribution andcontent enablement, the MoU said.


The case anticipates familiarising thestudents on

• The changing scenario in presentationof news and other programmes intelevision

• Evolution in conventional news andinfotainment media

• Threat posed by internet to theconventional media

• BBC’s worldwide standing on multi-channel broadcasting and its efforts tobe modernised

• Various divisions and channels in BBCand their functions

• Contribution of Microsoft in developingBBC’s next generation presentation.

Industry News & InfotainmentReference No. MAA0083CYear of Pub. 2006Teaching Note AvailableStruc.Assign. Not Available

Keywords

BBC-Microsoft Tieup; Next generationdigital presentation; Evolving digitaltechnology in news channels; CreativeMedia; New Media initiatives in BBC;Challenges to traditional newscast; SharingBBC Archives; Multi device newscast;Digital TV in UK; BBC News 24;

Advertising revenues from BBC sites; Newscontent in BBC; BBC Jam and Cbeebies.

ONGC’s Overseas Merger &Acquisition Strategies

Over the years, India had become heavilydependent on imported crude oil. For thegrowing Indian population and developingIndian industry, the rising cost of crudewas becoming a burden. Oil and NaturalGas Corporation Ltd (ONGC) was one ofthe leading Exploration & Production(E&P) company in India. The domesticcompetition to ONGC grew afterliberalisation policy of Indian governmentin 1991. The government prepared a plancalled ‘India Hydrocarbon Vision 2025’ andsuggested ONGC to go global. Thecompetition in domestic business and hikein oil prices motivated ONGC to createONGC Videsh Ltd (OVL) for overseasoperations. By 2006, ONGC is present in14 countries and has 24 ongoing projects.

OVL had set a target of producing 60Million Metric Tonnes Per Annum(MMTPA) in 2025, but its output in 2006was only 6.34 MMTPA. Its strategy forexpansion was based on three entrymethods: (a) wholly-owned projectsacquired during bidding of oil blocks indifferent countries, (b) production sharingcontracts and (c) participation interests.It had established presence in major oilproducing countries like Russia, Qatar,Libya, Iraq and Iran. Even then, the outputfrom major projects was insufficient tosupport Indian crude requirements. Toovercome the limitations, OVL hadinitiated expansion through acquisition ofnew projects during 2006.


• To study the challenges faced by theIndian oil and gas industry and India’senergy requirements

• To discuss ONGC and its role in theIndian crude oil sector

• Merger and Acquisition strategies ofOVL.

Industry Oil & Gas IndustryReference No. MAA0082CYear of Pub. 2006Teaching Note AvailableStruc.Assign. Not Available

Keywords

ONGC; OVL; Oil & Gas Industry in India;Participation Interest; Sakhalin – I project;GNOP; Chinese National PetroleumCorporation; Shell and Petrobras; OMEL;Block 35 and 36 in Cuba; Crude oil andnatural gas; Exploration and production;Million Metric Tonne Per Annum of Crude.




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Adidas-Reebok Merger:Sprinting behind Nike

On August 3rd 2005 Adidas, the Germansports shoes and apparel companyannounced its decision to buy Reebok, anAmerican rival for $3.8 billion and createa $10 billion footprint in global athleticfootwear, apparel and hardware markets.The deal was expected to improve Adidas’sposition in the North American marketon the one hand and Reebok’s position inthe European and Asian markets on theother. However, most industry watcherswere skeptical about the deal being achallenge to Nike, the market leader.

This case examines the challenges that layahead for Adidas in terms of positioning ofproducts, price and brand. Despite thesynergies available as claimed in the dealthe industry experts believed that the twobig brands might duplicate efforts ratherthan complement each other.


• To discuss the challenges of Adidas inpositioning after the merger with Reebok

• To discuss the synergy that would bedeveloped after merger.

Industry Sports WearReference No. MAA0081CYear of Pub. 2005Teaching Note Not AvailableStruc.Assign. Not Available

Keywords

Adidas; Reebok; Nike; Merger; Sport Shoe;Footwear; Sports Apparel; Adidas-Salomon; Deal.

US Airways – America WestMerger: Flight to Success?

On May 19th 2005, US Airways Groupannounced that it would be acquired byPhoenix-based America West HoldingsCorporation, parent company of AmericaWest Airlines. The combined airline namedUS Airways positioned itself as the ‘World’sLargest Low-Fare Airline’. The newlyformed US Airways Group finalised alltransactions enabling America West andUS Airways to begin operations as onecarrier – US Airways in September 2005.Both the airlines merged to create the fifthlargest domestic airline in the US, whichwas positioned as the largest full-service,Low-Cost Carrier in the country. WilliamDouglas Parker, CEO of America West,became the chairman, president and CEOof the merged airline.

Parker in his early forties was the youngestCEO of a large US airline. He was the personbehind the revival of America West afterthe 9/11 terrorist attacks. In 2005, it washis responsibility to make the merged

airline a success. Prior to the merger, USAirways was the dominant carrier onAmerica’s East coast with hubs inPhiladelphia, Pittsburg and Charlotte,North Carolina. But the airline wassuffering from financial problems and hadsought bankruptcy protection for a secondtime in 2004, since the 2001 crisis.America West was concentrated in theWestern region and was a full-service carrieroffering services at discount prices. In early2005, prior to the merger, the airline wasnearing bankruptcy.

Criticism over the merger started when thecode name for the merger talks leaked outin April, 2005. The merger named ProjectBarbell (for the airlines’ strengths on theopposite coasts of the country), quicklyearned the nickname Project Dumbbell.Critics questioned the wisdom of AmericaWest’s decision to link up with a bankruptpartner. In Parker’s opinion there weredistinct advantages in merging with anairline under bankruptcy. Labour issuesdominated the post-merger scenario.Parker had anticipated these problems, asit was true for any merger, especiallybetween culturally diverse organisations.


• To study Industry Life Cycle Model

• To discuss about consolidation as a wayout of the negative financial trend.

Industry Airline IndustryReference No. MAA0080CYear of Pub. 2006Teaching Note AvailableStruc.Assign. Not Available

Keywords

US Airways; America West; Merger; USAirline Industry; 2001 attacks; Legacycarriers; Low-cost carriers; Low-costbusiness model; Price wars; Oligopolisticmarket; Airlines deregulation; ProjectBarbell; William Douglas Parker;Corporate Culture; Labour Integration.

The Body Shop (Part B): L’OréalTurning Green?

On March 17th 2006, L’Oréal the world’slargest and most successful cosmeticcompany, announced its take over of theBody Shop, the ethical cosmetic retailerin the UK, founded by Anita Roddick.

Under the leadership of CEO, LindsayOwen-Jones, since 1988, L’Oréal grew at aphenomenal growth rate and by 2004achieved 19 years of consecutive doubledigit growth. By 2005, most of its brandsare facing stagnating sales in its majormarkets. The Asian markets, Brazil, Chinaand Russia are the only drivers of growth.In most of these emerging marketsL’Oréal’s brands are not in the affordable

range for the middle class consumers.Threat from competitors such as Unilever,P&G, Beiersdorf and Henkel as well ascomplacency within the organisation sinceit has reached number one position are themajor hurdles faced by the company in thetwenty-first century.

When news of this take over got out, theBody Shop faced severe criticism and publicoutrage on having sold out to a companywhich conducted animal testing and hadnot shown commitment to any ethicalissues. Body Shop’s ethical rating by theEthical Consumer Magazine dipped from11 out of 20 to 2.5. 24% of L’Oréal wascontrolled by Nestlé. Consumers felt thatthis was a case of selling to the devil and afarewell to the values that the Body Shophad espoused thus far.

The deep pockets and global reach ofL’Oréal were expected to improve theBody Shop’s performance in terms of moreefficient manufacturing and marketingknow how. The Body Shop was to providethe giant a new perspective into retailing,a foothold in the masstige markets and anethical platform.

Was Anita’s decision right for hercompany? Will the takeover result in theexpected synergies?


• To discuss about L’Oréal’s intentions intaking over the Body Shop

• To highlight the ways in which L’Orealand Body Shop dealt with ethical issues.

Industry Personal Care MarketReference No. MAA0079CYear of Pub. 2006Teaching Note AvailableStruc.Assign. Not Available

Keywords

L’Oreal; Ethical marketing; CorporateSocial Responsibility; Lindsay Owen Jones;The Body Shop; Personal care products;Masstige brand; Community trade; Ethicalcosmetic retailer; Beauty care market;Acquisitions; Global branding; Animaltesting; Emerging markets; Market leader.

L’Oreal in 2006: The Body ShopAcquisition

In 2005, the $18.89 billion L’Oreal groupis the largest and the most successfulcosmetics company in the world, with over19 international brands. Whether it sellsItalian elegance, New York chic or Frenchbeauty through its brands, L’Oreal hasreached out to a wide range of customersacross different income groups and cultures.Over the years L’Oreal has acquired manybrands and successfully integrated them inits brand architecture, sometimes retaining

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their brand origins and at other times givingthem a ‘makeover’. The case discussesL’Oreal’s brand architecture, its retailstrategy, promotion strategy, corporatestructure and competition. The Body Shopis known for selling natural products andsupporting environmental and human-rights causes.

In March 2006, L’Oreal has acquired TheBody Shop International a UK-based retailcosmetic brand revered for its ethical valuesfor $1.1 billion. The development hassurprised many as on the surface thereseemed to be little in common betweenL’Oreal, which cultivates an image ofFrench chic, and The Body Shop knownfor selling natural products and supportingenvironmental and human-rights causes.Moreover, L’Oreal is a manufacturer ofbeauty products and not a retailer. The casediscusses the strategic fit, the benefits andthe ramifications of the acquisition andthe future possibilities of the associationbetween the two companies.


• The case discusses L’Oreal’s brandarchitecture, its retail strategy,promotion strategy, corporate structureand competition

• The case discusses the strategic fit, thebenefits and the ramifications of theacquisition and the future possibilitiesof the association between the twocompanies.

Industry Consumer GoodsReference No. MAA0078PYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

L’oreal; The body shop; Lindsay OwenJones; Anita Roddick; Brand architecture;Brand positioning; Reposition strategy;Retail strategy; Strategic brand fit;Promotion strategy; Corporate structure;Social branding; International cosmeticindustry; Franchising; Acquisition;Environment and human rights cause.

Dabur – The Balsara AcquisitionIn January 2005, Dabur has announced itsdecision to acquire an Indian FMCG –Balsara India, a loss-making company.Dabur believes that Balsara’s product basketfits well with Dabur’s own portfolio.Balsara’s HR division possesses skills thatcomplement Dabur’s own team. TheBalsara brands – which have beenstagnating since the late 1990s arerejuvenated by Dabur. Dabur has overhaulsit operations and purchasing strategyoperations. Contrary to expectations,Dabur is successful in turning Balsara aroundin eight months.


• The case discusses Dabur’s productportfolio, Balsara’s product portfolio andtheir respective strengths andweaknesses. The case traces thesuccessful merger of the two companiesand discusses how Dabur handles thevarious marketing and HR challenges thatcome its way

• It discusses how Dabur has financed theacquisition

• The case also discusses Dabur’s strategyto rejuvenate the stagnant Balsara brand.

Industry FMCGReference No. MAA0077PYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Acquisition; Marketing; Turn-around;FMCG.

AOL: The Prize in the Battle ofPortals

In October 2005, the battle of the portalsis heating up with three internet companies– Google, Microsoft and Yahoo! (Yahoo)trying to strike some sort of a deal withAmerica Online (AOL) – the fourth playerto become the primary gateway to theinternet. The struggle will decide whichcompany is the world’s leading internetportal – the site that most internet usersrely on for everything, from searching theweb to sending e-mails and catching up onthe news. The case outlines how the deal isimportant to all the players, and what is atstake for them. AOL decides to enter intoa deal with Google. The case also discussesthe ramifications of the actual deal, thegains for both the parties, and how could ithave been better for both of them.


• The case outlines why the deal isimportant to all the players, and what isat stake for them

• AOL decides to enter into a deal withGoogle

• The case also discusses the ramificationsof the actual deal, the gains for both theparties, and the means to increase themutual benefits

• The case also discusses the businesses ofthe three players, their areas of interestand their growth prospects.

Industry Internet CompaniesReference No. MAA0076PYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

AOL; Yahoo; Google; Comcast; Microsoft;MSN; acquisition; deal; primary gatewayto internet; internet advertising; portal;web traffic.

eBay: Bidding Big on Start-upSkype

San Jose, California based ‘eBay Inc.’ wasthe world’s most popular online auctionwebsite with over 150 million usersworldwide in 2005. Over the years, eBayhad built its massive global presencethrough acquisitions of regional auctionsites, payment facilitators and sites thatprovided auxiliary services to its mainbusiness like classifieds and personals. Butin September 2005, eBay shockedinvestors and analysts alike with its $2.6billion take-over of Luxembourg based‘Skype Technologies’, an Internettelephony (VoIP) provider. AlthoughSkype was the most popular VoIP providerdue to its free and high quality service,many felt that the acquisition’s success wasdoubtful since the business models of botheBay and Skype were unrelated. Concernswere also raised about the different sphereof operations and the successful integrationof the two. Despite such concerns, eBayand Skype were determined to establishtheir synergies and prove that they hadthe potential to be an excellent team.

This case delves into the business modelsof both the companies, brings out theirinherent differences and sheds light on thepurported synergies of the deal. It alsoendeavors to compare the acquisition ofSkype with eBay’s other acquisitions andraises the debate on the future of the deal.


• To discuss why eBay acquires companiesoutside its core business domain

• How to create synergies throughacquisition

• The future of e-commerce.

Industry Internet AuctionsReference No. MAA0075BYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

eBay; Skype; Skypein; SkypeOut; eBay-Skype Acquisition; Meg Whitman; NiklasZennstorm; Janus Friis; PierreOmidyar.

Oracle PeopleSoft SagaOracle’s acquisition of PeopleSoft inDecember was culmination of a 18 monthsaga that started in June 2003. To many,





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Oracle’s bid was seen as its response to thePeopleSoft – JD Edwards’s merger that putPeopleSoft above Oracle as a number twoplayer in the market behind SAP. Oraclehad to overcome a number of hurdles in itspath. Not many seemed convinces aboutthe rationale behind the merger and feltthat it may not be workable. Speculationsabound on how the acquisition would takeshape and the resulting impact on thesoftware industry.


• Oracle’s strategy of acquisitions withparticular reference to PeopleSoft

• Mergers and acquisition in the softwareindustry

• The impact of the acquisition on Oracleand PeopleSoft

• The future of products developed byPeopleSoft and JD Edwards

• Oracles’ future strategies.

Industry SoftwareReference No. MAA0074BYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Oracle PeopleSoft; Business strategy;Software Industry; Mergers andAcquisitions; Product Strategy; SwitchingCosts; HR Issues in Mergers andAcquisitions; Enterprise ApplicationSoftware; Oracle vs SAP; Regulatory issuesin mergers and acquisitions; JD Edwards;Larry Ellison; Organisational culture;Software upgrades.

Cemex, Mexico—Revolutionizing Low-cost

HousingCemex was one of the leading cementcompanies of the world. During early1990’s, it experienced problems in its homecountry, Mexico . To revive its sales inMexico, Cemex ventured into low-costhousing by launching an innovative savingsand credit scheme, ‘Patrimonio Hoy’.Patrimonio Hoy provided the poor peoplecement, raw materials and a host of alliedservices so as to enable them build theirown homes. It was a huge success in Mexicoand Cemex planned to extend the schemeto other developing countries.

This case explores the concept ofPatrimonio Hoy and provides scope fordiscussing the innovative marketingprogramme of Cemex. It also providesscope for the discussion of low- cost housingin Cemex.


• To discuss the objectives of NAFTA andsimilar Free Trade Agreements

• How Cemex forward integrated andprovided end to end building solutions

• How a company can benefit the societyand at the same time make profit.

Industry CementReference No. MAA0073BYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Cemex; Patrimonio Hoy; Low-costhousing; Housing in Mexico; Construction;Acquisition; Construmex; Dolex; Socios;Cement; Services; Distribution network;Mexico; Tanda system; Mexican economiccrisis.

Franchising at Hilton HotelsCorporation

Hilton Hotels Corporation (HHC) was intoownership, management and development,and franchising of hotels, resorts andtimeshare properties. As of 2003, HHCconsisted of 2,173 properties, totaling over348,000 rooms. Of these, HHC owned aninterest in and operated 122 hotels, leasedseven hotels, managed 206 hotels ownedby others and franchised 1,808 hotels.Besides this, HHC also managed orfranchised 30 timeshare properties. Thiscase talks about the business of HHC andits franchising mode. It also discusses indetail the principles of franchising laid downby HHC and the step-by-step process ofthe franchising development.


• Pros and cons of the business model ofthe Hilton Hotel Corporation

• Could the franchise developmentprocess be simplified?

• Fairness of the Hilton’s principles offranchising

• Does the support programme of Hiltonadd value to its system and attract newowners? Can any other programmes beinitiated?

Industry HotelReference No. MAA0072BYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Hotels & Resorts; Hospitality Industry;Luxury Hotels; Hotel Management; HiltonHOnors-the guest loyalty programme; OneServices – CRM; Franchised hotels;

Managed/leased hotels; Franchise Fee;Cross-selling Business Model HiltonReservation Franchise developmentprocess; UFOC. Worldwide; Principles offranchising; Franchise developmentWorldwide; Principles of franchising;Franchise development.

General Motors & Fiat –Destination Splits Ville?

The latter half of the 1990s saw the shareof companies like US based ‘GeneralMotors Corp’ (GM) and Italian automanufacturer ‘Fiat’ (Fiat), eroding in theEuropean markets. While GM recordedlosses of $403 million, Fiat saw theirmarket share decline from 42.65% (in1997) to 35.4% in 2000. Concerned aboutdeclining sales and eroding bottom lines,Fiat and GM entered into an agreement inearly 2000, under which GM acquired a20% stake in Fiat and Fiat purchased 6%of GM’s stock. But the rapid decline inFiat’s sales and market share continuedinto the 2000s thereby resulting in hugelosses. To control this decline, Fiat wentin for a recapitalisation drive and sold offits more profitable businesses.


• To discuss the merging of Fiat and GM

• To discuss the possible synergy thatwould arise from the deal

• What GM and Fiat should do to stop thesales decline.

Industry Automobile ManufacturingReference No. MAA0071BYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

General Motors; Fiat Auto SpA; PutOption; GM-Fiat alliance; Fiatrestructuring; Gianni Agnelli; Opel; Fiat-GM Powert rain BV GM-Fiat WorldwidePurchasing BV; European Car Market;Automobiles; Alfa Romeo; Saab; Lanica;Fiat Group.

L&T: Attempts on Public-PrivatePartnership

In September 2004, the engineering andconstruction giant L&T, had sent aproposal to the Joint Secretary, Shippingfor a joint venture (JV) with the lossmaking HSL. Under the proposed scheme,L&T wanted to form a 60:40 JV as anassociate company of HSL with majoritystake held with L&T. It envisaged a strongcollaboration between the engineering anddesign expertise of L&T and the domainexpertise of HSL would herald a new area

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of growth. L&T wanted HSL to transferassets (minus liabilities) as a portion ofequity. The company proposed to infusefunds and utilisation of HSL assets via theJV to bring about a turnaround of the lossmaking Public Sector Undertaking. L&Twanted the Government to remain theowner of HSL.

The Joint Secretary, Shipping sent awelcome response and the preliminaryapproval to initiate talks between L&Tand HSL. Accordingly, the Joint Secretaryasked L&T to broadly elucidate theproposed shape of the JV and communicatethe same to the CMD, HSL. In early 2005,L&T’s top management presented the JVplan to the Joint Secretary, Shipping,Ministry of Finance and Planningcommission. In this meeting a decision wastaken to evaluate HSL’s worth. Thevaluation was conducted in March-April2005. After that the picture became vague.The pace of the process slowed down andthat left Mr. Naik confused. Though 15months had elapsed after the process wasinitiated, he was hopeful that the venturewould materialise in the days to come. Hethought that L&T could move ahead withthe public-private partnership (PPP)model, the concept of co-investment wouldbe a feasible alternative to disinvestmentof public sector undertakings in India.

Analysts and industry observers debated onwhether L&T’s attempt of PPP was a rightmove or not. What did L&T envision toachieve through the deal? Where could ittake L&T, if the PPP deal was successful?Was PPP trustworthy, when it came toprojects related to defense?


• To understand how Joint venture can beinstrumental in the turnaround of a publicsector

• To discuss the problems faced in private-public partnership.

Industry Heavy IndustriesReference No. MAA0070BYear of Pub. 2005Teaching Note AvailableStruc.Assig. Not Available

keywords

Public Private Partnership(PPP); L&T;Joint Venture (JV); Hindustan ShipyardLimited (HSL); Mazagon Docks (MDL);Hindustan Aeronautics Limited (HAL);Public Sector Undertaking (PSU).

Lucent Technologies-AlcatelMerger: The Potential Synergies

On April 2nd 2006, Alcatel, the Frenchtelecom equipment major and LucentTechnologies from the US announced amega merger worth $13.4 billion. The

merger would form the biggest telecomequipment company in the world surpassingthe market leader, Cisco, and offer acomplete portfolio in the telecomequipment industry, from equipments toservice solutions for the networks.However, analysts are skeptical about thesynergistic benefits due to concerns aboutcultural integration and product overlaps.


• To understand the new trends in theglobal telecom industry after thetelecom bubble burst in 2000

• To analyse the factors that promptedthe merger, the potential synergies andpitfalls the merger might witness

• To discuss the effect of this mega mergeron the global telecom industry and thepossible consolidations that it mighttrigger among telecom equipmentmanufacturers and service providers.

Industry Wireline TelecommunicationsEquipment

Reference No. MAA0069Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Cisco; Telecom bubble; Telecom industry;ZTE; Huwaei; Patricia Russo; SergeTchuruk; Failed merger; Merger of equals;Bell Labs; IPTV; CDMA; DSL; Opticalfiber; Consolidation.

Boston Scientifics’ Guidantacquisition

Boston Scientific, with a marketcapitalisation of about $20 billion, was thelargest life science company inMassachusetts (ranked by marketcapitalisation). After the merger withGuidant, it could be the largest publiccompany in the state by marketcapitalisation. Boston Scientific expectedthe deal would boost its growth and profitin coming years. Since June 2005, Guidanthad recalled or issued safety advisories forabout 88,000 defibrillators and more than200,000 pacemakers. The company facedregulatory investigations as well as multiplelawsuits from the recalls. In December2005, Guidant received a warning letterfrom the FDA about quality control at itsplants, this meant the company could notintroduce any new products until regulatorsare satisfied and issued at the plants hadbeen addressed.

Like Guidant, Boston Scientific was alsounder a warning that restricted it fromintroducing products until the problemswere fixed. Guidant owed Johnson &Johnson $705 million for breaking its prioragreement, which Boston Scientific was

supposed to reimburse. Guidant needed toget the investigations and lawsuits behindit and rebuild its image. Boston Scientificneeded to fix the problems of Guidant alongwith its own problems. Had BostonScientific, lost by winning the deal?


• To discuss the suitability of the merger

• To highlight the issues and challengesfaced by each of the two mergedcompanies

• To discuss the synergies created by theacquisition.

Industry Medical Equipment IndustryReference No. MAA0068AYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Boston Scientific; Guidant Corp.; Johnson& Johnson; Medical equipment industry;Medical Device Maker; Acquisition;Strategy; Implantable CardioverterDefibrillators (ICDs); Cardiac RhythmManagement (CRM); Pacemakers; Stents;Product recall.

Oracle’s acquisition of SiebelIn 2005, Oracle Corporation (Oracle), theworld’s largest enterprise softwarecompany, with offices in more than 145countries, employed over 50,000 people.In fiscal 2005, its revenues wereUS$11,799 million. Siebel Systems Inc.(Siebel), marketed CRM applicationstailored for various industries. In early2001, Siebel faced a financial crisis as manyof its customers switched to companieswhich offered an integrated suite insteadof specialised applications at a lesser cost.In September 2005, Oracle decided toacquire Siebel for US$5.8 billion. Theacquisition completed in early 2006, added4,000 customers, 3.4 million CRM usersand front end enterprise applications intoits portfolio.

Oracle competed with SAP AG for thenumber one player in the global enterprisesoftware business. However, Oracle facedcompetition from niche players likeSalesforce.com and RightNowTechnologies which provided businesssoftware services to its customers at lowerprices. The case study highlights theacquisition of Siebel, synergies attained andimpact of the acquisition on the globalsoftware market.


• To discuss the pros and cons of Oracle’sSiebel Acquisition

• To understand the IT industry structure




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• To debate on the synergies and liabilitiescreated by the acquisition.

Industry Global Software ServiceIndustry

Reference No. MAA0067AYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Global Business applications Industry;Oracle growth; Siebel acquisition; Oracle’sCompetitive advantage; Acquisitionsynergies; Oracle’s competitors; Customerrelationship management; Oracle’s e-Business suite; Software market; Projectfusion; Software services industry.

Mega Mergers in US TelecommIndustry

Until 1984, AT&T enjoyed a governmentregulated monopoly in the UStelecommunication industry. In 1984,AT&T was divested into Baby Bells andthe industry was opened for private playerparticipation. By 1996, both the local andlong distance industry was deregulated forthe players. However, in 2005 two mergerswere approved by Federal CommunicationsCommission (FCC). SBC merged with itsparent company AT&T for $16 billion andVerizon merged with MCI for $8.5 billion.

This case discusses how the merged entitieswith the help of their synergies wouldcontrol the industry. It also discusses aboutproposed effects of mergers on price,quality and technological upgradation ofservices. The case ends with a questionwhether the merged entities would servethe customers as before.


• To discuss the effect of mergers andacquisitions

• To analyse the effect of merger onvarious factors such as price, quality andfuture technological upgradations ofservices

• To understand the synergies created bymergers and acquisitions.

Industry TelecommunicationReference No. MAA0066AYear of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Mega mergers; US telecommunicationindustry; AT&T; SBC; Verizon; MCI;Government regulated monopoly; AcTel;FCC; Local calls; Toll calls; LATAs; Cellularand wireless services; Long distancemarkets; Internet services; Baby Bells;Edward Whitacre; Ivan Seidenberg; US

Justice Department; Consolidation;Mergers and acquisitions; Market growth;Globalisation; Duopoly; Price inflation;Competitive advantage; Market share.

Viacom: Is Divorce Better ThanMarriage?

This case traces the origin, developmentand growth of Viacom from a subsidiarycompany to becoming the world’s thirdlargest media conglomerate. The mainfocus of the case is its merger with its parentcompany CBS in 2000 and then thedecision made in 2005 to split Viacom backinto two companies; Viacom and CBS. Thecase describes the industry situation in 2000and 2005, and the rationale which led tothe decisions. The operating businesssegments of Viacom before the split andthe businesses Viacom and CBS wouldoperate after the split have been explainedin detail.

The case describes the media landscape andthe trend of consolidation and mergers in1990s that led to the formation of hugemedia conglomerates operating in allpossible media and entertainmentproperties. With the passage of time,achieving synergies between such large andsometimes disparate assets becamequestionable, leading to the conglomeratespruning their businesses by focusing on thecore businesses and spinning off the noncore ones. This case on Viacom is a classicexample of the same phenomenon. Thesuccession planning undertaken by theViacom’s CEO, Sumner Redstone, and theopportunities and challenges in front ofthe newly appointed CEOs of the twocompanies Viacom and CBS and theirvision in taking their respective companiesforward has been described.


• To discuss and debate on the decision tosplit a media conglomerate into twoseparate companies

• To identify the challenges andopportunities lying ahead for theseparate entities

• To analyse the mergers and acquisitionsstrategy adopted by mediaconglomerates.

Industry MediaReference No. MAA0065AYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Viacom; CBS; Media conglomerate;Merger; Split; Acquisition; Advertising;Programming; Broadcasting; Syndication;Network; Cable television; Radio; Outdoor

advertising; Television; Studio;Consolidation; Horizontal integration;Vertical integration; Economies of scope;Economies of scale; Cross promotion;Strategy; Regulation; Succession planning;Competition; Synergies

FedEx: The acquisition of Kinko’sFedEx incorporated operations in early1970s. During this period the US packagedelivery business was dominated by two bigorganisations, the United States PostalService (USPS) and United Parcel Services(UPS). USPS had postal monopoly and nostrong incentive to provide good services.FedEx saw the gap provided throughnegligence of service providence to highend postal delivery market. It exploitedthe situation and organised to deliverpackages overnight using its own aircrafts.As a strategic move to build on the strengthof its now famous express delivery serviceand create more diversified companythrough various different acquisitions ofrelated businesses, it acquired the retailfocused Kinko’s. FedEx Kinko’s, thecombined entity made sense from acompetitive landscape. In 2005, thecompany generated $2.07 billion inrevenues, four times higher on y-o-y basis.


• To discuss the importance of peripheralvision

• To discuss the synergy created by thevertical integration

• To derive a cost benefit analysis of theacquisition of Kinko’s

• To illustrate the growth strategiesadopted to become Industry leader froma follower.

Industry Express Delivery Industry,Stationery and PrintingIndustry

Reference No. MAA0064AYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Business Strategy; Mergers and Acquisitions;Strategic Management; Core Competence;Synergy through Acquisition; Peripheralvision.

Mittal Steel-Building the SteelGiant

In the era of concentration of power infew hands, consolidation in old industrieshas gained momentum. The case study isabout building a global empire through thestrategy of turning around sick units.

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Lakshmi Niwas Mittal (LNM) with hisvision of consolidation of steel industrybanked on geographical reach and productline expansion for success in the 21stcentury. It also highlights the corecompetence of identifying the right plantsfor acquisition and investing the rightamount of money and people in it andturning them into profitable ventures.

LNM went into vertical integration to havecost advantage. The case discusses LNM’smajor acquisitions which were consideredthe riskiest rust buckets by the industryexperts, one of them being in Kazakhstan,which is located 400 Kilometers away fromnow steel hungry China. With the creationof world’s largest steel company, MittalSteel, only 23% of the global production isdominated by handful of steelmakers,providing scope for more acquisitions andconsolidation to follow.


• To understand the core competency ofLaxmi Mittal in acquiring and turningaround the sick steel units

• To analyze the string of acquisitionsundertaken by LNM and the vision toconsolidate the steel industry

• To debate whether this strategy ofacquisitions have been a successfulstrategy for Mittal Steel.

Industry Steel IndustryReference No. MAA0063AYear of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Business Strategy; Mergers and Acquisitions;Strategic Management; Consolidation;Core Competence.

Vodafone’s Global Strategy:Paying Price for ‘Going for

Growth at any Price’?Vodafone became one of the largesttelecommunications operators in theindustry by adopting its global strategy.Under the global strategy the companyrelentlessly acquired stakes in businessesspanning across 27 countries. The strategybore fruit during the telecom boom in thelate 1990s, which witnessed increasedconsolidation across the world. But theacquisitions made later were questioned asthe already acquired stakes across the worldproved difficult to manage. Although thenew CEO, Arun Sarin, made acquisitions inemerging markets to offset marketsaturation in existing markets, a write-offof £28 billion of its overseas assets inFebruary 2006 raised questions regardingthe global strategy of the company. The

company was expected to makeacquisitions diligently to avoid such write-offs in future and also focus on ways tocounter the effects of emergingtechnologies on the revenues of thecompany.


• To discuss the impact of changingtelecommunications landscape ontelecom operators

• To discuss the strategy adopted byVodafone to remain competitive in thetelecom industry

• To discuss the effects of those strategieson the revenues of the company

• To discuss the reasons behind thealteration of the company’s strategy toremain a formidable player in thetelecom industry.

Industry TelecommunicationsReference No. MAA0062Year of Pub. 2006Teaching Note AvailableStruc.Assig. Available

keywords

Vodafone; Global strategy; ChristopherGent; Arun Sarin; ‘Bigger is Better’ strategy;‘Mobile-only’ strategy; 3G technology;Asset write-offs; Verizon; Softbank; OneVodafone; Mannesmann.

The Battle for Westinghouse –Toshiba Wins: The Strategic Fit

Increasing fuel prices led many countries(like China and US) to look for otheralternatives like nuclear power. Tocapitalise on the increasing demand fornuclear power, Toshiba decided to bid forWestinghouse, one of the leaders in nucleartechnology in the world, when it was putup for sale. In February 2006, Toshibaacquired Westinghouse outbidding othercompanies like GE and Mitsubishi. Toshibaanticipates that the acquisition would helpit to win contracts in China, one of thefastest growing markets for nuclear power,and would also help the company tobecome the global leader in the nuclearpower business.


• To discuss the reasons behindWestinghouse’s failure in the nuclearbusiness before its acquisition by BNFL

• To analyse and understand the synergiesfor Toshiba out of this acquisition

• To debate on the critical success factorsin this industry.

Industry Nuclear PowerReference No. MAA0061

Year of Pub. 2006Teaching Note AvailableStruc.Assig. Not Available

keywords

Toshiba; Westinghouse; Nuclear power;Acquisition; British Nuclear Fuels Ltd;Hurdles; Synergies; Atsutoshi Nishida;General Electric Corporation; Strategic fit.

Mittal Steel’s Bid for Arcelor:Coming together of Equals or

Making of an Unequal?Mittal Steel became the world’s largestmanufacturer of steel with operations inNorth America, Africa, Central and EastEurope, by buying a network of loss-makingstate-owned steel mills in formercommunist countries includingKazakhstan, Romania and Ukraine andturning them around. In January 2006,Mittal Steel made •18.6 billion ($22billion) hostile takeover bid for Arcelor,the No. 2 steel producer in the world, withan aim to create a steel giant with a capacityof 115 million tonnes, larger than the nextthree largest steel makers – JFE Holdings,Nippon Steel and Posco’s capacity puttogether. The deal was rejected outright bythe Arcelor Board and there were mixedreactions from the industry andgovernments of various countries as wellregarding the takeover bid.


• To chart the making of Mittal Steel,highlighting its course of action tobecome the biggest steel producer in theworld

• To discuss the reasons and rationalebehind Mittal’s bid for Arcelor

• To discuss whether the merger of thetwo companies, would bring an end tothe deep cyclical peaks and troughs insteel supply and prices

• To discuss the role and influence ofvarious governments in this deal.

Industry SteelReference No. MAA0060Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Lakshmi Mittal; Mergers and acquisitions;Hostile takeover; Consolidation; Steelindustry; Economies of scale; Mergersynergies; Thwart acquisition bid; Culturaldifferences in merger; Politicalintervention in business; Consolidation ofindustry and its effect on prices.




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ConocoPhillips’ Acquisition ofBurlington Resources: The

Strategic FitIn late 2005, ConocoPhillips (the numberthree integrated US oil company) hasacquired Burlington Resources (one of theprominent independent oil companies ofthe US) for $35.6 billion. This is one ofthe major deals in the wave ofconsolidation that is sweeping the US oilindustry since the 1970s. Analystsrationalise that as finding new sources andsetting up facilities have become expensive,acquiring assets would save capitalinvestment for major companies. Thecurrent consolidation is nothing new forthe US oil industry which has witnessedbenefits of consolidation during John D.Rockefeller’s time. While executives ofConocoPhillips say that acquisition wouldhelp them in saving operational costs,experts opine that the deal is overpriced.


• To discuss the acquisition made byConocoPhilips as to whether it is overpriced and to discuss whether theacquisition would reap the benefits ofconsolidation.

Industry Oil and Gas Exploration &Production


keywords

Oil companies in the US; Consolidation inthe US oil industry; The history of the USoil industry; Standard oil; Expansionstrategy of ConocoPhillips; Global oilprices; Investments in Russian oil industry;Mega-mergers in the US oil industry;Economies of scale in the oil industry.

MetLife’s Acquisition ofCitigroup’s Insurance Arm,

Travelers Inc.: The SynergiesCitigroup is the world’s most profitablefinancial services organisation. During the1990s, to become a financial ‘supermarket’that offered all financial services under oneumbrella, Citigroup diversified intoinsurance, mortgage and investment bankingbusinesses. However, the company wasunable to reap the estimated synergies fromthis kind of business model. In 2005,Citigroup announced the sale of its insurancebusiness, Travelers Inc., to MetLife, theUS’ largest life insurer.


• To highlight the potential synergies thatMetLife stands to gain from theacquisition

• To discuss the challenges facing thesuccessful integration of Travelers withMetLife.

Industry Life InsuranceReference No. MAA0058Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Citigroup; MetLife; Acquisition synergies;Life and health insurance; Financialsupermarket; Citicorp; Glass-Steagall Act;Gramm-Leach-Bliley Act; RobertBenmosche; Distribution network; Jointventure; Smith Barney; Primerica;Strategic fit; Cross selling; Consumerbanking investment; Travelers group.

Sony-BMG Joint Venture: Lessonsfrom a Dis-jointed Venture

Sony and BMG Music Entertainment, thesecond-largest music record company inthe world, was formed as a 50:50 jointventure between Sony Music andBertelsmann Music Group in August 2004,with both the companies having equalrepresentation in its board. Soon, thecompany’s sales declined and MichaelSmellie, Sony and BMG’s chief operatingofficer from Bertelsmann, tendered hisresignation. Following this, theBertelsmann group opposed the renewalof contract for Andrew Lack, who was fromSony and was the CEO of the joint venture,on the grounds that he was responsible forthe lackluster performance of thecompany.


• To discuss the ongoing consolidation inthe global music industry

• To discuss the reasons that led to theSony-BMG joint venture

• To discuss the opposition of theBertelsmann group to the renewal of thecontract for Andrew Lack to remain CEOof the joint venture.

Industry Musical EntertainmentReference No. MAA0057Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Sony BMG; Sony Music; BertelsmannMusic Group; Global music industry; On-line music piracy; Internet and file swappingtechnology; Joint venture; Synergies of amerger; Pay for play scandal; AndrewLack; Restructuring strategies; Executivetension; Personality clashes; Sony-BMGlabels; Costs cutting strategies.

Alliances in Automobile Industry:From Fiat-GM to Fiat-Ford

Technological advances and processimprovements in the automobile industryhave made a few company leaders andlaggards and left many clueless.Competitive pressures pushed theautomobile companies into the triplethreat of cost pressures, cutthroat pricingand overcapacity. In order to counter suchpressures, consolidation was the need ofthe hour in the industry. Consolidationtook different forms namely, mergers andacquisitions, joint ventures and strategicalliances. Strategic alliances, which offerall the advantages of mergers andacquisitions at a lower capital and resourcecommitment, appeared a better alternativeto bolster their positions. Amidst thesecircumstances, Fiat entered into an alliancewith General Motors in 2000 and comeFebruary 2005, rather surprisingly, GeneralMotors withdrew by paying $1.99 billion.Eight months later Fiat aligned with Ford.


• To discuss whether consolidation (inwhatever form) is warranted in theautomobile industry and to discuss howthe strategic alliances make good such arequirement

• To discuss whether Fiat’s swingingfortunes can be bettered by switchingpartners.

Industry AutomobilesReference No. MAA0056Year of Pub. 2006Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Fiat; Ford; Automobiles; Strategic alliances;Alliances in automobiles; Fiat-Fordalliance; Fiat-GM alliance; Synergies fromalliances; Advantages over mergers andacquisitions.

US Airways and America WestMerger: The Corporate Culture

IntegrationIn September 2005, US Airways andAmerica West, the seventh and the eighth-largest airlines in the US, merged to createthe sixth-largest airline in the country. Themerger was expected to help US Airwaysto emerge successfully from bankruptcyprotection and help America West toexpand its operations. However, there wereseveral issues concerning the success of themerger. The principal among them was theintegration of the vastly differentcorporate cultures of the two airlines.

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• To provide an insight into the mergerbetween US Airways and America Westand the steps being undertaken by thecompanies to make the merger a success,especially regarding integration of theirvastly different corporate cultures.

Industry AirlinesReference No. MAA0055Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

US Airways; America West; Corporateculture integration; Merger; Low-costairline; US airline industry; Customerservice; Employee relations; Seniorityintegration process; Financial viability;Chapter 11 bankruptcy.

eBay’s Takeover of Skype: TheStrategic Fit

Niklas Zennstrom and Janus Friis emergedfrom obscurity and became Internet legendsafter creating KaZaA, an illegal on-linefile-sharing programme. After sellingKaZaA, Zennstrom and Friis, embarked ontheir next project, an Internet telephonyprogramme called Skype. Unlike KaZaA,Skype was legal, but as KaZaA had rattledthe music industry, Skype’s revolutionarybusiness model was expected to threatenthe traditional models of the giant telecomcompanies. Internet heavyweights,Microsoft, Yahoo! and Google, were saidto be negotiating with Zennstrom and Friisto acquire Skype. On September 12th 2005,eBay acquired Skype for $2.6 billion.


• To highlight the evolution of Skype andits acquisition by eBay

• To discuss the potential synergies thateBay might gain from the acquisitionand the problems it might encounter inthe course of a successful integrationwith Skype.

Industry Internet AuctionsReference No. MAA0054Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Niklas Zennstrom; Janus Friis; KaZaA;Skype; Low-cost business model; eBay;PayPal wallet; Strategic fit; Competitiveadvantage; Competition; Synergies;Copyrights; Lead generation; Word-of-mouth marketing; On-line file sharing.

Gazprom’s Takeover of Sibneft:From a Local Monopoly to aGlobal Energy Company?

In September 2005, the Russian state-owned natural gas behemoth, Gazprom,acquired Sibneft for $13.1 billion fromRoman Abramovich, its biggeststakeholder. The acquisition is regarded asa strategic move by Gazprom to become aglobal energy company with interests inoil, oil processing and petrochemistry.However, scepticism prevails on thepotential benefits to be accrued throughthe renationalisation of Sibneft, as thesekinds of initiatives, after the collapse ofthe USSR, have traditionally led tooperational inefficiency and decreasedproductivity.


• To highlight the rationale behind theacquisition

• To discuss the potential challenges thatGazprom might have to overcome tobecome a global energy company.

Industry Oil and Gas Exploration andProduction


keywords

Gazprom; Sibneft; Hostile takeovers;Global oil industry; Natural gas production;Global energy companies;Renationalisation in Russia; Yukos; Lukoil;BP (British Petroleum); Globalisationstrategy.

DaimlerChrysler’s NewChallenge: Saving the Merger

DaimlerChrysler came into existence in1998 through the merger of Daimler-Benzof Germany and Chrysler Corporation ofthe US, and was plagued with problemsfrom its inception. In addition to decliningprofitability in the Chrysler division, theMercedes brand got hit by quality problems.Additionally, its small car unit ‘Smart’ andits luxury car division, ‘Maybach’, bothfailed to take off. It is reported that JurgenE Schrempp, the chief executive officerof DaimlerChrysler, who had been heldresponsible for the problems, would bestepping down on January 1st 2006 andwould be succeeded by Dieter Zetsche.


• To highlight the problems faced byDaimlerChrysler after the merger

• To discuss whether Zetsche would besuccessful in turning the company aroundand saving the merger.

Industry AutomobileReference No. MAA0052Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

DaimlerChrysler; Merger; Globalautomaker; Boom-and-bust cycles;Restructuring plan; European small carsegment; Ultra luxury car segment;Mitsubishi Motors; Jurgen E. Schrempp;Dieter Zetsche.

UniCredit’s Takeover of HVBGroup, Europe’s Biggest Cross-

Border Takeover: The SynergiesItaly’s largest bank, UniCredito ItalianoSpA, popularly known as UniCredit,announced the takeover of HVB(Bayerische Hypo-und Vereinsbank AG),the second biggest bank in Germany, inJune 2005. The takeover is valued at •15.4billion (approximately US$18.7 billion),making it the largest cross-border bank dealin European banking industry. The mergedentity will be the fourth largest bank in theEuropean Union and eighth largest in theEuropean continent. With this takeover,UniCredit aims to expand its operations incentral and eastern Europe, while HVBGroup is looking at ways to regain profitsand consolidate its business operations inGermany and in other parts of Europe.However, many experts and bankingindustry analysts are sceptical about thesurvival of this takeover as consolidationsand cross-border deals in the bankingindustry in Europe were unsuccessful. Addedto this, HVB Group has accumulated lossesworth •1,992 million as of March 1st 2004,leaving UniCredit with the challenge toturnaround HVB Group.


• To discuss whether the takeover willsurvive in the light of variousunsuccessful consolidations and cross–border deals in the European bankingindustry.



keywords

UniCredit Group; HVB Group; Takeover;acquisition; Synergies; Competition;German banking industry; Italian bankingindustry; Consolidation.





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Oracle’s Takeover of Siebel:Reshaping the CRM Software

Market?Since the 1990s, Oracle Corporation hasbeen expanding its application softwarebusiness through acquisitions. With theacquisition of Siebel Systems, the leadingCRM (Customer RelationshipManagement) software provider, inSeptember 2005, Oracle replaced SAP AGas the number one player in the globalenterprise software business. However,Oracle has to compete with niche playerslike Salesforce.com and Netsuite, whichprovide on-line, subscription-based businesssoftware services to its customers at lowerprices.


• To highlight the acquisition of Siebel asa part of Oracle’s business consolidationstrategy

• To discuss the impact of Oracle’sacquisition on the commoditised globalsoftware market.

Industry Information TechnologyReference No. MAA0050Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Global software industry; Global enterprisesoftware industry; US enterprise softwareindustry; Growth of Oracle throughacquisitions; Competitive advantage ofOracle; Competitors of Oracle; Enterpriseresource planning; Customer relationshipmanagement; Supply chain management;e-Business suite of Oracle;Commoditisation of the software market;Project fusion; Software services industry;Web enabled services; Salesforce.com.

Chevron’s Acquisition of Unocal:A Hard Won Battle and the

Business ProspectsThe takeover battle between Chevron andChina National Offshore Oil Corporation(CNOOC) for Unocal, the seventh largestindependent oil company in the US, was ahighly politicised event in US corporatehistory. With CNOOC backing out of thedeal due to political pressures, Chevronacquired Unocal, thus becoming the fourthbiggest oil company in the world.Chevron’s management was confident thatthe acquisition was a perfect fit for thecompany. Several industry experts alsoacknowledged the synergies between thetwo companies. However, some were ofthe opinion that the acquisition would failto deliver for Chevron. The case studyoffers an insight into the takeover battlefor Unocal between Chevron and CNOOC

and the expected synergies from Chevron'sacquisition of Unocal.


• To discuss whether the acquisition wouldbe beneficial to Chevron in the long runand how this acquisition might changethe competitive dynamics of theindustry.

Industry EnergyReference No. MAA0049Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Chevron; Unocal; China National OffshoreOil Corporation (CNOOC); Mergers andacquisitions; Inorganic growth; Takeoverbattles; Merger synergies; David J. O’Reilly;Political environment; Political risks;Legal and regulatory environment; Oilproduction and exploration; Corporategovernance; Peak oil theory.

HVB’s Merger with UniCredito:The Strategic Fit

UniCredito Italiano was formed in 1998through the merger of seven local bankswhen the Italian banking sector wasstruggling to cut costs throughconsolidations. Having decided to expandinto the Central and Eastern Europeanmarkets, in June 2005, UniCredito acquireda German bank, HVB, marking the largestcross-border deal in European banking.After the acquisition, UniCredito’soperations spanned across Europe with amarket capitalisation of $51 billion.However, analysts opine that as BayerischeHypo- und Vereinsbank AG (HVB) has atrack record of bad debts and corporateloans, the future of the merged bank isunpredictable.


• To discuss the outcome of the merger ofthe two banking behemoths in Europe.



keywords

Consolidation of the European banking;Italian banking sector; German bankingsector; Cross-border mergers; Amato law;Anti-usury law; Banking law; AlessandroProfumo; Central and Eastern Europeanbanking; S3 Project of UniCredito; Baddebts of Bayerische Hypo- und Vereinsbank(HVB); Expansion through acquisitions;Bank Austria; Bank Pekao.

Foster’s Takeover of Southcorp:Strategic Fit or an Overpaid

Deal?In January 2005, Foster ’s, a leadingAustralian beer company, announced thetakeover bid of Southcorp, Australia’slargest wine manufacturer, to enhance itsfoothold in the global wine industry, whichis going through a phase of consolidation.In order to lure Southcorp shareholders toaccept the offer, Foster’s had to revise itsinitial bid of $4.17 to $4.26 per share.The deal, which some analysts felt wasoverpaid, was completed in late May 2005.The analysts argued that the price paid forthe takeover overshadowed the benefitsof the merger. However, Trevor O’Hoy,president and chief executive officer ofFoster’s, maintained that he has notoverpaid for the deal and apart from thesynergy benefits of the merged entity, theywould be able to deliver a superior customerservice and a better portfolio to thecustomers.


• To highlight why Foster’s thought itwould be lucrative to invest heavily intothe wine segment

• To discuss the company’s strategies tobecome the world’s largest wine makerin 2005.

Industry BrewersReference No. MAA0047Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Consolidation of global wine industry;Global beer market; Australian wineindustry; World’s largest wine maker;Reduction in profit margins of Foster’s;Foster’s growth through acquisitions;Cannibalisation of wine brands; Costsavings through synergies; Mildara Blass;Penfolds; Rosemount; Foster’s lager.

Apple and Intel’s Alliance: FromCompetition to Cooperation

During the 1970s, the computer industryhad a large number of start-upmanufacturers offering various computerparts that could be assembled to constructcomputer kits. Due to the advancement intechnology in different components ofcomputers, at regular intervals, onemanufacturer concentrating on all thecomponents has become impossibility.This forced different players, with expertisein their respective arenas to come togetherthrough alliances to offer better productsto the customers. One such example is thealliance between IBM and Apple, whereIBM supplied microprocessors to the

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products of Apple. As of 2005, IBM hasalmost 1% of its revenue flow from Apple.In the same year Apple has replaced IBMwith Intel.


• To discuss how far this move of Appleand Intel would help them in addingvalue to the existing technology andprovide better services to the customersin the era of commoditisation ofcomputer hardware

• To discuss the effects thereof on theindustry that has entered into a posttechnology period of applications andservice.

Industry Information TechnologyReference No. MAA0046Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Global information technology industry;Commodotisation of computer hardware;Digital networking; Computer kits; Singlechip microprocessors; Thirdpartydevelopers; Multitasking; PowerMacintosh computers; Cloning strategy;Post-technology period for computers;Hardware and software platforms;Converging technologies; Intel Inside;Virtualisation technology; Longhorn.

Symantec’s Takeover ofVERITAS: A Strategic Success?

On December 16th 2004, leading securitysoftware maker Symantec Corporationannounced the takeover of data storagesolutions company VERITAS Corporation.Both the companies were confident aboutthe success of the deal and expected it to bemutually beneficial. However, competitorsand software industry analysts were scepticalregarding the success of the deal.


• To highlight the reasons behind thetakeover

• To provide insights into the possibleadvantages and challenges for thecombined entity

• To discuss whether the takeover wouldbe a strategic success.



keywords

Symantec Corporation; VERITASSoftware Corporation; Information

technology services; Software servicesindustry; Merger of equals and industryconsolidation; John W. Thomson and GaryL. Bloom; Takeover cost synergies andstrategic fit; Microsoft Corporation;Security and data storage software; Networkmanagement products; EMC; CA; HP;IBM; Sun; McAfee; Cisco; Risk ofexecution failure; Cross-culturalcompetence; Common managementinterface; Norton and VERITAS brands.

Sony’s Failed Synergies: BadStrategy or Bad Management?

When Masaru Ibuka and Akio Moritaestablished the Sony Corporation, theirdream was to create a world-class companycapable of spawning the ‘World’s First’,the ‘World’s Smallest’, the ‘World’sBiggest’, or the ‘World’s Best’ consumerelectronic products. During the second halfof the twentieth century, Sony introducedthe world to revolutionary technology inthe form of the Walkman (personalstereo), Trinitron TV (high resolutioncolour television), and the PlayStation(video game console), thereby settingglobal industry standards. However,although Sony was the first company tointroduce a videocassette recorder(Betamax), it was the rival VHS technologythat prevailed in the market after the majorvideotape format war of the 1980s. Sony’sconclusion that ownership of contentwould enhance its ability to set industrystandards led to the company’sdiversification into the fields of music,motion pictures, and financial services.


• To highlight the growth of Sony from asmall, unknown Japanese company toone of the world’s best-knowncompanies

• To provide an insight into Sony’sstrategy of foraying into businessesunrelated to its core electronics business,and the apparent failure in successfullymerging the company’s diverseoperations and extracting operationalsynergies

• To discuss whether bad strategy or badmanagement was the reason for Sony’sfailed synergies.

Industry Electronics and EntertainmentReference No. MAA0044Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Sony Corporation (Sony); Masaru Ibukaand Akio Morita; Tokyo Tsushin KogyoTotsuko; Global consumer electronicsindustry; Audio and video electronicdevices; Sony Computer Entertainment

Inc.; Business model legacy innovation;Failed synergies of content and devices;Video tape format war Betamax vs VHS;Sony Ericsson; Aiwa; MGM; Cineplex; CBS;Innovative alternative technologicalthreat; Walkman; Trinitron TV;Cybershot; Playstation; World’s smallest,largest, first, best; Sony Pictures, MusicTelevision; Restructuring and turnaroundstrategies.

NYSE’s Planned Merger withArchipelago Holdings: The

SynergiesBreaking the age-old tradition of operatingonly through the floor-based tradingsystem, New York Stock Exchange(NYSE), in April 2005, announced itsmerger with Archipelago Holdings, anelectronic trading company, to competewith other electronic exchanges of theworld. While NYSE aims to increase itsmarket share by tapping new businessopportunities in the options andderivatives market, Archipelago plans tocapitalise on the brand recognition ofNYSE to increase its market presence.


• To provide an overview of the stockexchanges in the US

• To discuss the synergies of the mergerand the probable payoffs.

Industry Stock ExchangesReference No. MAA0043Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

NYSE (New York Stock Exchange);Archipelago Holdings; Potential synergies;Nasdaq; US stock exchanges; ElectronicCommunication Network (ECN); Securitiesand exchange commission of US; Instinet;Consolidation in Europe stock markets;London stock exchange; ArcaEdge;Regulation National Market System; JohnThain; Jerry Putnam.

Japan’s Livedoor Co. Ltd.:Growing through Unrelated

AcquisitionsLivedoor Co. Ltd., the third largestInternet solutions provider in Japan, hadstarted as a website designing and consultingfirm in Tokyo in 1996. By 2004, thecompany had a profit of $54 million andit acquired 20 companies ranging from anaccounting software firm, an on-line travelagency to a Chinese Internet portal. As of2005, the company has 31 subsidiaries witha market capitalisation of ¥200 billion andintends to buy a horse track after an





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unsuccessful attempt to acquire a baseballteam.


• To highlight the rapid growth ofLivodoor Co. Ltd.

• To discuss its philosophy of growingthrough unrelated acquisitions.

Industry Internet and On-line ServicesProvider


keywords

Livedoor Co. Ltd.; Takafumi Horie;Internet solutions provider; Unrelatedacquisitions; Eudora; Web communities;Digital subscriber line; Managementservices provider; Rakuten; Softbank;Nippon Broadcasting Systems Inc.

Gillette’s Merger with P&G: TheStrategic Fit?

Procter & Gamble (P&G), the number oneUS consumer goods company, and Gillette,the world’s largest manufacturer of shavingproducts, announced the merger of theiroperations in January 2005. The $57billion merger was the ninth largest in theUS corporate history. Post-merger, the newcompany would dethrone Unilever as theworld’s largest producer of consumer goodsand is expected to have bargaining powerrivaling that of global retailers like Wal-Mart and Carrefour. The merger, scheduledto be completed in late 2005, is expectedto reap cost synergies of up to $22 billionfor the new company. But the problemsencountered by Daimler-Chrysler andHewlett Packard-Compaq’s mergers showedthat size could be a potential hindrance tothe success of a merger.


• To discuss the potential synergies thatP&G can gain from the merger

• To analyse the problems it is likely toface in the course of the merger’ssuccessful execution.

Industry Fast Moving Consumer Goodsand Consumer Products

Reference No. MAA0041Year of Pub. 2005Teaching Note AvailableStruc.Assig. Available

keywords

Procter & Gamble Company (P&G);Gillette Company (Gillette); Consumerproduct companies; Consumer goodsindustry; Merger of equals; World’s largest

FMCG (Fast Moving Consumer Goods)company; Cost synergies; Billion dollarbrands; Wal-Mart effect; Strategic fit;Industry consolidation; Risk of executionfailure; Cross-cultural competence; ColgatePalmolive; Unilever.

The Reverse Merger of SBC andAT&T: The Payoffs

Though American Telephone andTelegraph Company (AT&T) had strongproduct innovations in its early days,AT&T failed to adopt new technologiestowards the late 20th century. Due toincreased competition, it had lost itsmarket leadership and incurred losses.Despite two major restructurings, itcontinued to incur losses. In January 2005,SBC Communications Inc., one of the‘baby bells’ that was spun out from thecompany, acquired it in a reverse merge.


• To provide insights into the troublesfaced by AT&T over the decades and itsrestructuring activities to overcomethem

• To discuss the possible reasons for failureof AT&T’s restructurings, the payoffsof the reverse merger of SBC and AT&T,and the future of the US telecom industry.

Industry Telecommunication ServicesReference No. MAA0040Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

American Telephone and TelegraphCompany (AT&T); Restructuring;Diversification; Southwestern BellCommunications (SBC); Regional BellOperating Companies (RBOC); Globaltelecom industry; Nobel Prize; Bell Labs;Transistor; Telephone; Alexander GrahamBell; Reverse merger; Acquisition andmerger; Verizon and Sprint Nextel; Ma Belland Baby Bell.

Deutsche Borse’s Bid for LondonStock Exchange: What’s the

Strategic Fit?Deutsche Borse had made attempts to forman alliance with London Stock Exchange(LSE), the biggest stock exchange inEurope, since 1999. After a failed attemptof merger in 2000, Werner Seifert, theCEO (Chief Executive Officer) ofDeutsche Borse has been making attemptsagain since late 2004 to strike a deal withLSE to reap synergistic benefits that wereexpected to accrue from decreasedoperational costs and increased profits.

Although Deutsche Borse’s bid of 530p(pence) per share was rejected by LSE,Seifert came up with his next bid thatoffered a better deal to LSE.


• To highlight the challenges faced byDeutsche Borse in its attempt to strikea deal with LSE

• To discuss the strategic fit betweenDeutsche Borse and LSE and thesynergistic advantages that are expectedto accrue to the combined entity.

Industry Stock ExchangesReference No. MAA0039Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Deutsche Borse; London Stock Exchange(LSE); Consolidation in European stockexchange market; Merger of stockexchanges; Strategic alliance; Euronext;Strategic fit; Synergy; Deutsche Borse –LSE deal; Europe’s stock exchanges.

Breaking Alliance With Fiat: Gainfor GM?

In 2000, General Motors’ (GM) rival,DaimlerChrysler, was planning to takeoverFiat. To keep its rival at bay, GM enteredinto an alliance with Fiat. The agreementincluded a put option clause for Fiat thatcould force GM to buy out Fiat, irrespectiveof GM’s interests, any time between 2004and 2009. In January 2005, when Fiatwanted to exercise its put option, GMrefused to buy Fiat. Under suchcircumstances, the alliance was broken andGM had to pay Fiat $2 billion as an exitfee.


• To discuss the benefits that GM derivedout of the episode that cost the companya total of $4 billion – initial investmentplus the price to pull itself out of the putoption.

Industry AutomobilesReference No. MAA0038Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Fiat; General Motors (GM); Put option;GM in Europe; Ford Motor Company;DaimlerChrysler merger; Global alliances;Mergers and acquisitions; Synergies inalliances; Breaking-up of alliances; Globalautomotive industry.

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Sprint and Nextel Merger: TheStrategic Fit?

Sprint Corporation and NextelCommunication, the third largest and fifthlargest wireless operators respectively inthe US, announced the merger of theiroperations in December 2004. The mergerresults in the formation of a new companycalled Sprint Nextel thus creating the thirdlargest wireless operator in the US. The$36 billion merger to be finalised by mid-2005 is expected to provide synergies suchas an enhanced customer base of 35.4million, cost savings of $12 billion, andstronger market position. Post merger, thecompany would have a large spectrumholding to make a head start in the advanced4G technology area moving ahead of itscompetitors. Meanwhile, to make themerger a success the new company has todeal with challenges posed by incompatibletechnologies, cultural differences, andinitial high-integration costs.


• To discuss the potential synergies,opportunities and challenges arising outof the merger for the new combinedentity.

Industry Wireless Telecom ServicesReference No. MAA0037Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Sprint Corporation; NextelCommunications Inc.; US wireless telecomindustry; Largest wireless operator; Mergerof the equals; Average Revenue Per User(ARPU); Code Division Multiple Access(CDMA) technology; Integrated DigitalEnhanced Network (iDEN); Push-to-talktechnology; Third generation (3G)communications technology; Fourthgeneration (4G) communicationstechnology; Evolution-Data Only (EVDO)network; Customer loyalty; Competitivestrategies; Merger synergies and challenges.

Lenovo's Big Opportunity: IBM?In late 2004, Lenovo Group Limited(Lenovo), China’s leading PC (personalcomputer) maker, acquired the PersonalComputing Division of IBM. WhileLenovo views this acquisition as anopportunity to take on the global PCmarket, IBM hopes to enhance its footholdin China. However, before reaping thesynergistic benefits from the acquisition,Lenovo has to deal with competitors likeHewlett Packard and Dell and also deal withcorporate cultural differences and fear,uncertainty and doubt among its customers.


• To discuss whether the Lenovo – IBMdeal would be able to prove its strategicfit in the global PC industry.

Industry Personal ComputersReference No. MAA0036Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Lenovo Group Limited; China’s PC(personal computer) industry; Lenovo’scompetitors; Market share of PCcompanies in China; IBM’s PC division;Lenovo’s acquisition of IBM’s PC division;IBM’s transformation strategy; Customerservice from new Lenovo; Synergies fromIBM Lenovo deal; Mergers in technologyindustry; Corporate culture; Global PCmarket.

Hypobank and VereinsbankMerger: Troubles Outweigh the

SynergiesThe merger of Hypobank and Vereinsbankin 1998 created HypoVereinsbank (HVB),one of the largest private banks inGermany. When the two similar sized banksdecided to merge, it was considered as the‘merger of equals’ and the ‘merger of thebest’. It received the full support of theGerman government, which welcomed theprospect of having a local bank as adominant player. But soon after thecompletion of the much-hyped merger, thehidden motives of the two banks and thedeception of one of the banks wereexposed. The new bank incurred lossescontinuously as a result of the deceptioncoupled with a weak European economy.In spite of its efforts for revival, the bankhas only been partly successful ineliminating its troubles and has turned intoa potential takeover target.


• To discuss perceived synergies behind themerger, the financial impact of thedeception and the revival efforts of thebank

• To provide an insight into theconsequences of a hasty merger.



keywords

HypoVereinsbank (HVB) Group;Hypobank; Vereinsbank; Super regionalbank; Albrecht Schmidt and Eberhard

Martini; Turnaround and growth prospects;The bank in the heart of Europe;Investment and capital managementservices; Retail banking services; Tenthlargest private bank in the world; Mergersynergies; Bad loans scandal; Managementrestructuring; Focus on internationalbusiness and operations; Innovativeinvestment products.

Sony’s Film Studios’ Acquisitions:The Strategic Fit

Sony forayed into the entertainmentbusiness in the late 1980s by acquiring CBSrecords and Columbia Pictures. To furtherstrengthen its motion pictures business thatbecame profitable only after the mid-1990s, Sony went ahead to acquire a leadingfilm studio in the US – Metro-Goldwyn-Mayer. Investing $300 million in theacquisition, Sony planned to ensure thelong-term growth and profitability of itsmotion pictures business with the help ofMGM’s vast library of movies andtelevision episodes, besides creatingsynergies between its technology andentertainment businesses.


• To discuss Sony’s strategy to sustain thecompetitive edge in its entertainmentand consumer electronics businesses

• To discuss the integration issues entailedtherewith its acquisitions.

Industry Motion Picture Productionand Distribution


keywords

Sony; Sony pictures entertainment; Metro-Goldwyn-Mayer; Sony MGM; ColumbiaPictures; Tristar; Film studios in US;Strategic fit; Sony’s film studio acquisitions;Comcast; Peter Guber; Synergy; MichaelSchulhof.

Sears-Kmart Merger: ThePotential Synergies

Kmart demonstrated a remarkableemergence from bankruptcy when itannounced its acquisition of another bigUS retailer, Sears for $11 billion in 2004.The merger deal was structured by itschairman Edward Lampert, a 53%stakeholder in Kmart with 15% stake inSears. The merger was expected to makeSears Holdings the third largest retailcompany in the US – after Wal-Mart andHome Depot apart from synergisticbenefits worth $500 million in the form






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of cost savings and additional profits.However, analysts were skeptical about thepotential benefits from the merger as bothcompanies were struggling amidst fiercecompetition in the US retail industry, facedwith declining sales and profitability.


• To discuss the expected synergies andthe probable challenges to be faced bythe combined entity, Sears Holdings.

Industry RetailingReference No. MAA0033Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Sears; Kmart; Sears Holdings; Lampert;Cross selling of brands; US retail industry;Mergers in retail industry; Sears-Kmartmerger; Synergy; Strategic fit; Wal-Mart;Target; Competition in US retail industry;Kmart bankruptcy.

Fiat and GM: The TroubledAlliance

The auto division of the Italianconglomerate, Fiat has been incurring lossessince the mid-1990s. Fiat’s attempt to saveits ailing auto division resulted in a strategicalliance with General Motors Corp. (GM)in 2000 under which GM obtained 20%stake in Fiat Auto while Fiat obtained 5.1%in GM. Fiat also enjoyed a put option inwhich it had the right to sell the remainingstake to GM after four years. However, asFiat’s losses increased in 2003 and thecompany sought a recapitalisation, GM’sstake in Fiat was reduced to 10% as it refusedto be a part of the recapitalisation process.In 2004, with GM’s refusal to buy theremaining 90% stake in Fiat auto underFiat’s put option, the alliance turnedhostile.


• To discuss the reasons for the break-upof the Fiat – GM strategic alliance

• To discuss the future of strategic alliancesin the global automobile industry.

Industry Automobile IndustryReference No. MAA0032Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Fiat Group; General Motors (GM); FiatAuto’s losses; Fiat’s restructuring plan;Fiat's strategic alliance with GM; Fiat’s putoption; GM’s Europe operations; GM’sstrategy for alliances; Powertrain;European car market.

KB Home: The Homebuilder’sGrowth Strategies

Started in the late 1950s, KB Home, thefifth largest homebuilder in the US hasgrown through acquisitions of largehomebuilders based in fast growing citiesin states like Florida, Arizona andCalifornia. Besides strategic acquisitions,KB Home grew by concentrating onbuilding high-quality customised homes.With 27,331 homes built in 2003, KBHome plans to further increase its marketshare by focusing on certificationprogrammes for improved quality homebuilding and efficient handling of customercomplaints through its ‘Say Yes’s initiative.


• To discuss KB Home’s plannedacquisitions and certificationprogrammes for its growth

• To discuss KB Home’s attempt tobecome one of the biggest homebuildersin the US.

Industry Residential ConstructionReference No. MAA0031Year of Pub. 2005Teaching Note Not AvailableStruc.Assig. Not Available

keywords

KB Home; KB Home’s diversified market;KB Home’s acquisitions; KB Home’sexpansion; KB Home’s business practices;KBnxt business model; KB Home studio;National Association of Home Builders(NAHB); KB Home’s quality assurancepractices; Homebuilders in the US.

Cendant: The US TravelConglomerate’s Growth

StrategiesCendant, the travel and real estateconglomerate in the US, marked anotherconsolidation in the travel industry byacquiring an Internet travel site, Orbitz inOctober 2004. Coupled with theacquisitions of other major travel-relatedcompanies like Galileo Inc., Cheap Ticketsand Lodging.com, the Orbitz deal isexpected to make Cendant the secondlargest online travel reservation companyin the world after Inter Active Corp. (IAC).


• To discuss the growth strategies adoptedby Cendant to become a leading verticallyintegrated player in the global travelindustry.

Industry TravelReference No. MAA0030Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Cendant; Orbitz; US travel and real-estateindustry; Travel companies in US; Sabreholdings; Expedia; Travelocity.com; InterActive Corp. (IAC); Cheap tickets; GalileoInc; Travel industry’s vertical integration;Consolidation in US travel industry;Cendant’s vertical growth strategy;Computerised travel reservation company;On-line travel industry.

Barclays Plc.: Growth StrategiesBarclays, the UK-based financial servicesgroup operates in more than 60 countriesemploying over 76,200 people. In termsof market capitalisation, Barclays Bank isone among the top ten in the world. Thecompany’s troubles began in 1997 due toits failed attempt in merging itself withanother bank, the loss in the Russian bondmarket and other business failures. Thecompany’s profits as well as market valuedropped, which was followed by the CEO'sresignation. There was no stable leadershipfor a period of one year. After MatthewBarrett took over as the CEO in 1999, thecompany entered into mergers,acquisitions and strategic alliances withseveral other banks and financialinstitutions like Legal and General, CharlesSchwab and Juniper Financials.


• To discuss the mergers and acquisitionspursued by Barclays’ since 1999.

• To discuss the growth strategies that thecompany undertook to regain its profits.

Industry Financial ServicesReference No. MAA0029Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Barclays Plc.; Matthew Barrett; Britishbank; Growth strategies; Financial services;Acquisitions; Strategic alliances; Woolwich;Total shareholder return; Barclaycard;Barclays private clients; Gerrardmanagement services.

Oracle’s Bid for PeopleSoft: TheStrategic Fit

Since mid-2003, Oracle Corporation hasbeen trying its best to acquire its rivalPeopleSoft Inc. Despite bidding for fourtimes, Oracle had remained unsuccessfuluntil mid-2004. Oracle received a majorboost in September 2004 when the USDistrict Court in San Francisco rejected apetition, which had been filed by the USDepartment of Justice in February 2004against Oracle’s acquisition efforts of

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PeopleSoft. The petition was filed on thegrounds that the acquisition would curbcompetition in the enterprise softwaesegment.


• To discuss the probable reasons behindOracle's acquisition bids for PeopleSoft

• To discuss as to whether Oracle isstrategically correct in its endeavoursto acquire PeopleSoft.

Industry Database and EnterpriseSoftware


keywords

Oracle Corporation; PeopleSoft Inc.; J.D.Edwards; Enterprise software providers;Takeover bid; Consolidation in softwareindustry; Lawrence J. Ellison; Softwaremarket; Craig Conway; Anti-takeoverdefence.

WPP Group Plc.: InorganicGrowth Strategies

Under the leadership of its CEO, Sir MartinP. Sorrell, the UK-based WPP Group Plc.has transformed itself from a small basketmanufacturing company to one of theleading advertising conglomerates in theworld. The growth has been mainly throughacquisitions. The acquisition of bigcompanies like J. Walter Thompson,Ogilvy and Mather and Young and Rubicamhas enabled WPP to win clients like Fordand IBM. For the year ending December31st 2003, WPP Group Plc., the world’ssecond largest marketing communicationsservices company, had revenues of £4,106million.


• To discuss the inorganic growth strategiesof WPP by ‘developing networks inimportant markets and sectors’.

Industry Advertising and MarketingReference No. MAA0027Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

WPP Group; Global marketingcommunication services companies; J.Walter Thompson; Martin P. Sorrell;Ogilvy and Rubicam; WPP inorganicgrowth strategy; WPP internationalexpansion; Tempus Group; Globaladvertising business; The acquisitions ofWPP Group; Core services of WPP Group;Top ten global advertisers.

News Corporation’s Acquisitionof DirecTV: A Strategic Fit

Rupert Murdoch’s News CorporationLimited acquired DirecTV, America’sleading satellite television provider inDecember 2003. DirecTV, launched inAmerica in 1994 as a provider of DirectBroadcast Service, became the world’slargest satellite television provider withprofits of $6.5 billion in 2003 and acustomer base of about 12.6 million in theUnited States.


• To discuss the reasons for NewsCorporation’s acquisition of DirecTVand the strategic fit for News Corp.

• To discuss the factors that led to thepopularity of DirecTV and how NewsCorp stands to benefit from theacquisition

• To discuss the benefits for DirecTVresulting from the acquisition and howthe acquisition is expected to bridge thegap in News Corp’s worldwide satellitedistribution system.

Industry MediaReference No. MAA0026Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

News Corporation; Rupert Murdoch;DirecTV; Cable networks; Satellitedistribution system; Vertical integration;National reach; Strategic fit.

Vodafone’s Inorganic GrowthStrategies: The Payoffs

After two multibillion acquisitions in thelate 1990s, one each in the US and Europe,Vodafone poised itself to become a majorwireless phone services provider in theworld. However, the company’s inabilityto integrate its acquisitions resulted in asaga of losses since 2000. In 2003, CEO(Chief Executive Officer) ChristopherGent, who led the company through theacquisitions and the losses alike, steppeddown and handed over the debt-riddencompany to Arun Sarin. Even the new CEOcontinued the acquisition spree, muchagainst the wishes of the disgruntledshareholders, and a $16 billion loss wasrecorded in 2003.


• To discuss Vodafone’s acquisitionstrategy in the volatile mobiletelecommunication industry and itspayoffs.

Industry Wireless Network OperatorsReference No. MAA0025Year of Pub. 2004Teaching Note AvailableStruc.Assig. Available

keywords

Vodafone; Airtouch; Mannesmann;Christopher Gent; Arun Sarin; Acquisitions;3G (third generation) technology; JapanTelecom; China Mobile; Vodafone Live!;Verizon Wireless; Dividends; Shareholders;Share buybacks; AT&T Wireless.

Merger of MTFG and UFJHoldings: The Potential SynergiesSince the mid-1990s, the Japanese bankingindustry has been mired in the problem ofhigh non-performing loans. In tune withthe consolidation process in the industrysince the late 1990s, Mitsubishi TokyoFinancial Group (MTFG) and UnitedFinancial of Japan (UFJ) have initiateddiscussions for their proposed merger thatis to be completed by September 2005.The merger is expected to create theworld’s biggest bank in terms of total assets.


• To discuss the potential synergies thatwill accrue to the combined entity thatcan probably help the entire Japanesebanking sector in its recovery process.



keywords

Japanese banks; Mitsubishi TokyoFinancial Group (MTFG); UFJ holdings(United Financial of Japan); Synergy;Merger; Jusen crisis; Daiwa Bank scandal;Japanese big bang; Financial ServicesAgency; Non-performing loans; Japanesemega-banks; Consolidation of Japanesebanks; Japan Premium; FinancialReconstruction Commission; FinancialSystem Reform Law.

Growth Strategies of TelefonicaTelefonica was the second largesttelecommunication company in Europeand the sixth largest in the world with 101.7million customers in 16 countries.Although Telefonica had been cautious inits investments of late, the company hasbeen on an investment spree to increaseits market coverage.






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• To discuss Telefonica’s strategies tobecome a global telecom leader throughgreater market penetration and customerfocus.

Industry Telecommunications ServicesReference No. MAA0023Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Telecommunication companies in Europe;Mobile operators; Telefonica in LatinAmerica; Telefonica mobiles; Unisource;British Telecom; MicrowaveCommunications Incorporated (MCI);Companhia Riograndense deTelecomunicacoes (CTR); Terra Lycos;Asymmetric digital subscriber lines(ADSL); Telefonica’s competitors.

EADS: The Evolution and Growthof the European AircraftManufacturing Alliance

The European Aeronautic Defence andSpace Company (EADS), the largest inEuropean aerospace and defence sector andthe second largest in the world, wasestablished in 2000. By 2004, thecompany rose from number 443 to number251 in the ‘Business Week Global 1000’rankings which can be attributed to thesuccess of its airbus division in the globalcommercial aircraft manufacturingbusiness. EADS expects to maintain itsleadership through its double-decker jumbojet A380, which is scheduled forcommercial launch in 2006.


• To discuss the rationale behind theformation of the EADS

• To discuss EADS’ strategies to transformitself into the largest commercialaircraft manufacturer in the world.

Industry Commercial AircraftManufacturing


keywords

Global aerospace and defence business;Airbus; Boeing; Lockheed Martin; Globalcommercial aircraft manufacturers; A380programme of airbus; Fly-by-wiretechnology; East Jet; Products from airbus;Shareholding structure of airbus;Competitors of airbus.

The Royal Bank of Scotland’sGrowth Strategies

In 2004, the Royal Bank of Scotland (RBS)was ranked as the second largest bank inthe UK and Europe, and the fifth largest inthe world. Among the leading financialservice providers in the world, RBSaggressively followed its expansion policyto diversify. It ventured into the US andHong Kong markets in the latter half ofthe 20th century.


• To discuss the realisation of ‘inorganicgrowth’ besides ‘organic growth’ by RBSto create a global presence

• To discuss the need to diversify andinnovate, and how acquisitions could beused to reap benefits

• To discuss the competitive pressures andstubborn cost structures, which couldheighten the incentives for, risk taking.



keywords

Royal Banks of Scotland’s growthstrategies; Inorganic and organic growth;Mergers and acquisitions; Citizens; CharterOne; Competitive strategy; Credit cardprovider; National Bank of Scotland;Investment and retail banking;Restructuring; Cost saving; Changemanagement; British banking industry;Merchant banking; NatWest Banktakeover; Interest rates; Bank of England;Alliances and joint ventures.

GlaxoSmithKline (GSK): PostMerger Growth Strategies

GlaxoSmithKline (GSK) is one of the largestpharmaceutical companies in the world. Itoperates in two segments – pharmaceuticalsand consumer healthcare. Since the mergerof Glaxo Wellcome and SmithKlineBeecham in 2000, the company has beenreporting increasing financial returns. Onone hand, the company is entering intocollaborations, agreements and partnerships,restructuring its R&D (research anddevelopment) and expanding its productportfolio. On the other hand the companyis facing stiff competition from its rivalsand generic firms.


• To discuss GlaxoSmithKline’s financialperformance post-merger and theperformance of its core products

• To discuss the initiatives taken forgrowth

• To discuss the future challenges andstrategies ahead.

Industry Pharmaceutical IndustryReference No. MAA0020Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

GlaxoSmithKline Incorporated; GlaxoWellcome and SmithKline Beecham;American pharmaceutical industry;Consumer healthcare; Jean-Pierre Garnier;Product pipeline; Nutritional healthcareproducts; Centres of Excellence for DrugDiscovery (CEDD); Therapeutic areas;Generic competition; Over the counterproducts; Wellbutrin; Growth strategy;Patented products; US Food and DrugAdministration.

Microsoft and Sun Microsystems:Sleeping with the Enemy?

Microsoft and Sun had an antagonisticrelationship for almost two decades. Butin a desperate attempt to leave pasthostilities behind and build new bridges offriendship, the two sides signed anagreement in early April 2004. As per thedeal, Microsoft agreed to pay Sun nearly$2 billion to settle Sun’s pending antitrustlawsuit against it, resolve patent issues andas advance payment towards certainlicensing royalties. However, while thesettlement had been inspired by severalcommon problems faced by the twocompanies and aimed at peace, somebelieved that the truce would be short lived.


• To discuss the issues that led to thecoming together of the two rivals andthe potential issues that might break thetruce.

Industry Computer SoftwareReference No. MAA0019Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Microsoft, Inc; Sun Microsystems; ScottMcNealy; Steven Ballmer; Java 2Enterprise Edition (J2EE); Applicationdevelopment environment; Open sourcerevolution; Sun’s Java virtual machine; C#,.net, visual C++; Web services developmentplatform; Department of Justice; Bundlingsoftware; Monopoly; Internet browser;Strategy.

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Novartis’ Acquisition of Aventis:The Potential Synergies

After Aventis rejected the hostile takeoverbid of Sanofi-Synthelabo on the groundsof financial inadequacy in January 2004, itapproached Novartis, the Swiss drugmanufacturer, to acquire it and save it fromthe potential acquisition. Although theNovartis-Aventis combination had thepotential to form the second largestpharmaceutical company in the world withcombined revenues of $47 billion, theFrench government was against thetakeover of Aventis by a foreign company.


• To discuss the probable synergies in caseAventis is acquired by Novartis.

Industry Pharmaceutical ManufacturersReference No. MAA0018Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Ciba-Geigy; Sandoz; Global pharmaceuticalcompanies; Mergers and acquisitions;Sanofi-Synthelabo; Aventis; Novartis AG;Hostile takeovers; Hoechst AG;Prescription drugs; Rhone-Poulenc SA;Pfizer; Merk & Company; Anti-diabeticdrugs; Anti-cancerous drugs.

Amgen’s Growth StrategiesAmgen, one of the world’s leadingbiotechnology companies, had sales of $8.4billion in 2003. Though the sales andprofits of the company were higher thanits competitors, it was lagging behind onthe innovation front. Over the years thecompany grew with several mergers andacquisitions. It expected to achieve aturnover of $10 billion in 2004 andpromised investors a 20% growth rate untill2005.


• To discuss Amgen’s growth strategies andthe way it intends to achieve itspromised growth.

Industry BiotechnologyReference No. MAA0017Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Amgen’s growth strategies; Biotechnologyindustry; Research and development;Genentech, Chiron Corporation, Biogen;Patent expiries; American pharmaceuticalindustry; Roger M Perlmutter; Kevin W.Sharer; United States Food and DrugAdministration; Generic competition;

Mergers and acquisitions; ImmunexCorporation; Joint ventures; Epogen,Enbrel, Aranesp, Erythropoietin, Johnsonand Johnson.

America Online – Time WarnerMerger: Why it Failed

America Online (AOL) and Time Warnerannounced their merger on January 10th

2000 to create the world's first fullyintegrated media and communicationscompany with a market capitalisation of$350 billion. While AOL would have accessto the high-speed broadband cable networkof Time Warner, Time Warner expecteditself to be catapulted into the ‘Internetbig league’ by virtue of the merger. Themerger faced stiff resistance, largely fromthe consumer groups and its competitors,who wanted the combined firm to open upits cable networks and allow rivalentertainment companies to stand on anequal footing. Even as the merger wasfinally allowed to proceed by the FederalTrade Commission on January 11th 2001,the market capitalisation was alreadysliding downwards with falling share pricesdue to investor confusion over the fate ofthe merger and the Internet bubble burstthat saw Internet stocks plummeting.


• To discuss the reasons and events thatled to the failure of the merger and thealternate strategies that could have beenadopted.

Industry Media and EntertainmentIndustry

Reference No. MAA0016Year of Pub. 2004Teaching Note AvailableStruc.Assig. Available

keywords

America Online (AOL); Time Warner;Mergers and acquisitions; Internet serviceprovider; Federal CommunicationCommission; Clicks and mortar company;Traditional media business; Softwareindustry; Federal Trade Commission;Proprietary networks; Common carriers;Integrated consumer space; Entertainmentindustry; Pathfinder network; e-commerce; Information technology.

InterActiveCorp: Growing StrongAfter resigning as Chairman and CEO ofFox Inc., Barry Diller started establishinghis own empire of interactive commercecompanies. Under the banner ofInterActiveCorp (IAC), Diller acquiredsome highly profitable on-line services likeExpedia.com, Ticketmaster.com andLendingtree.com, among others. In less

than a decade, Diller’s IAC transformeditself into one of the most prospectiveon-line companies in the world. With $3.3billion in cash and marketable securities bythe end of 2003, Diller had been lookingto extend IAC’s line-up of operatingbusinesses.


• To highlight IAC’s success story,detailing the merits of well-timedstrategic acquisitions in building asuccessful conglomerate.

Industry On-line Retailing and ServicesReference No. MAA0015Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

InterActiveCorp (IAC); Barry Diller; USAInteractive; Expedia; Hotels.com;Lendingtree.com; Home ShoppingNetwork (HSN); Ticketmaster.com;Match.com; Hotwire.com; On-line travelbooking; On-line local directory services;On-line personals; UDate.com.

Business Objects – CrystalDecisions: The Synergies

When Business Objects acquired California-based Crystal Decisions for $1.2 billion inDecember 2003, it was all set to becomethe leader in the global booming market ofdata analysis software or businessintelligence. Due to excellent synergies withthe products and services of CrystalDecisions, Business Objects was optimisticto reach the $1 billion mark by 2004.


• To understand the non-technicaloverview of the concept of businessintelligence

• To discuss the synergies between BusinessObjects and Crystal Decisions.

Industry Business Intelligence SoftwareReference No. MAA0014Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Business intelligence; Business Objects;Crystal Decisions; Query and reporting;On-line analytical processing (OLAP);Decision support systems; Enterprisereporting; Synergies; Cognos; HyperionSolutions Corp; BusinessObjects Enterprise6.1; MicroStrategy; SAP; PeopleSoft Inc;Oracle.






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Sanofi-Synthelabo’s GrowthStrategies

Most of the leading pharma companieswith declining research and developmentproductivity and patent expirations, chosethe path of mergers and acquisitions as agrowth strategy. These companies, underpressure to grow and maintain theircompetitive edges followed the paradigmset by Pfizer, which acquired Pharmacia in2002 to become the world’s leading pharmacompany. With most of their best sellingdrugs on the verge of patent expiry, Sanofi-Synthelabo’s (Sanofi) looked at mergingor acquiring companies to grow and sharethe risks associated with its future productchallenges. Such a deal was on the cardsbetween Aventis and Sanofi and the mergerwas expected to give birth to the world'ssecond largest drug company.


• To understand the growth strategies ofSanofi, which was set up with an objectiveof being a discovery-led globalpharmaceutical company.

Industry PharmaceuticalReference No. MAA0013Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Sanofi-Synthelabo’s (Sanofi) growthstrategies; Aventis Pharma; Research anddevelopment (R&D); Mergers andacquistions; French pharmaceutical industry;Bristol-Myers Squibb; Generics business;Patents expiry; United States Food and DrugAdministration; Plavix; Arixtra; Apotex;L'Oreal Group; Total Oil Company;Blockbuster drugs; Jean-Francois Dehecq;Alliances and joint ventures.

Pixar-Disney: Parting WaysIn 1991, Walt Disney Company (Disney)and Pixar Animation Studios (Pixar) joinedhands to produce three full-lengthanimated movies. Under the agreement,Disney had the control of marketing andlicensing of the movies, while Pixar was tobe paid a share of the profits towards thedevelopment costs. After four years, theyreleased their first movie, Toy Story, thatturned out to be a hit. After the success ofToy Story, Pixar re-negotiated the termsof the agreement in which it was agreedthat both the partners would share theprofits equally, after Disney was paid adistribution fee of 12%. In 1998, a yearafter the new deal was struck, A Bug’s Lifewas released that turned out to be a majorhit. In 2003, after the release of theirbiggest hit, Finding Nemo, Pixar wantedto further re-negotiate its terms withDisney under which it wanted to retain the

entire profit and pay Disney, only thedistribution fees. After several months ofnegotiations, Disney and Pixar decided tocancel their twelve-year partnership inJanuary 2004.


• This case study throws light on thereasons for the breakup of potentiallyprofitable partnerships in the filmmaking industry.

Industry MediaReference No. MAA0012Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Walt Disney Company; Pixar AnimationStudios; Steve Jobs; Michael Eisner; 3Danimation; Lucas films; Finding Nemo; StarWars; Toy Story; Buena Vista; DisneyWorld; Disney Land; Bob Iger; Cartoonnetwork; Mickey Mouse.

P&G’s Takeover of Wella: TheStumbling Blocks

When Procter and Gamble (P&G) acquiredWella, the German beauty products giant,the synergies painted a rosy picture. Butthe company is having its own share ofwoes with unrelenting minorityshareholders refusing to sell the preferenceshares, expressing their dissatisfaction overP&G’s offer. They demanded that thepreference shares should also receive thesame price as that of voting shares. Even ayear after the acquisition, the stalematecontinues.


• The case delves into the synergies thatP&G sought through Wella’s acquisition,and how the differential offer that thecompany made is stopping it from takingfull control of Wella

• The case offers scope to discuss thecross-border takeovers in the light ofcountry-specific regulations. The casein point being the German Takeover Act.

Industry Personal Care ProductsReference No. MAA0011Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Procter and Gamble (P&G); Wella; Germantakeover act; Preference shareholders;Voting shares; Two-tiered offer; ElliottAssociates; AG Lafley; Heiner Gurtler;BaFin; Domination agreement.

IBM’s Acquisition of PWCC: TheSynergies

IBM had forayed into the IT servicesbusiness with the formation of IBM GlobalServices in the early 1990s, under its formerChief Executive, Louis V. Gerstner Jr.Although the revenues of IBM GlobalServices rose consistently and it was anexpert technology solutions provider, itlacked the expertise to deal with real timebusiness operations and practical problemsfaced by its clients. In its quest for a partnerwith deep business expertise, IBM acquiredPWCC in mid-2002 for $3.5 million, tofurther strengthen its commitment to itsIT services business.


• To evaluate the potential benefits ofIBM after acquiring PWCC.



keywords

IBM Consultancy; IBM Global Services;IBM Business Consultancy Services;Consolidation in consultancy industry;PwCC; PricewaterhouseCoopersConsultancy; On-demand computing; ITservices; IT consultancy services; Businesstransformation; Outsourcing services; ITservices and business consultancy;Management consultancy services; SamPalmisano; Acquisition of PwCC by IBM.

Growth Strategies of Rexam Plc.Rexam was formed in 1995 when WVBowater and Sons, a London-basedconglomerate, incorporated in 1881,adopted a single brand to transform itselffrom a diversified business group to a leadingpackaging company in the world. Under itsCEO Rolf Borjesson, Rexam carried on itsacquisition programme in the mid and late1990s by acquiring several companies likePLM, American National Can Group Inc.and Latasa, all leading consumer-packagingcompanies in the world. By 2004, Rexamwas the fourth largest company in the globalconsumer packaging industry and also theworld's leading beverage can producer withannual sales of $5.6 billion.


• To understand how Rexam, by leveragingon its core business, consolidated itsgrowth and leadership position in theglobal consumer packaging industry.

Industry Packaging and ContainerManufacturing

Reference No. MAA0009

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keywords

Rexam Plc; Coca-Cola; Rexam BeveragePackaging; American National Can GroupIncorporated; Rolf Borjesson; RexamBeverage Can South America; Industrialpackaging; WV Bowater and Sons; PLM;Collins-Aikman; Amcor Flexibles; RexamBeauty and Closures; Bulk packaging;Gearing ratio; Stefan Angwald.

Bank One and JP MorganMerger: Building an Empire or

Adding Value?Deregulation of the banking industry inthe US brought in a wave of consolidations,creating some of the largest banks in theworld. On January 14th 2004, JP MorganChase announced its merger with BankOne, a deal, which was valued at $58 billion.The merger created the second largest bankin the US with assets worth $1.1 trillion.The combined company, JP Morgan Chaseand Co., had a balanced mix of consumerand wholesale business, synergies in retailbanking as well as investment banking,consistency in earnings and increasedcustomer base. The success of the mergerdepended on the ability of the companiesto blend their cultures, achieve cost cutsand attain growth in revenues.


• To understand the changing scenario inthe US banking industry due toconsolidation and to discuss the possibleoutcomes of the big mergers in the industry.

Industry Banking IndustryReference No. MAA0008Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Bank One and JP Morgan merger; Mergersand acquisitions; Growth strategies;American banking industry; Commercialand investment banking; William BHarrison; Private equity and banking; Glass-Steagall Act 1933; Gramm-Leach-Bliley(GLB) Act; Critical mass; Value creation;Credit card business; JP Morgan Chase andCo; Consolidation of technologyplatforms; Alliances and joint ventures.

Bank of America: FleetbostonMerger

When Bank of America bought FleetBostonin a $47 billion deal, in November 2003, itexpanded its presence to the markets innortheastern America where it had lacked

presence. Bank of America felt that thedeal provided it an opportunity to emergestronger. Analysts however, felt that thebenefits the bank would derive would notjustify the 42% premium Bank of Americapaid to FleetBoston shareholders.


• To discuss whether Bank of Americawould be able to realise the synergies ofthe merger

• To understand the growth strategies ofBank of America and FleetBoston

• To know how mergers and acquisitionsare changing the face of the US bankingindustry.

Industry BankingReference No. MAA0007Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Bank of America; FleetBoston; Merger;Synergies; Impact on industry; Geographicalreach; Consolidation.

Nicholas Piramal India Limited:Mergers and Acquisitions

As India moves towards 2005 productpatent regime, many Indian firms arescouting for buyouts and acquisitions ofthe US and European companies. WhileRanbaxy, Dr. Reddy’s, Wockhardt andothers are in the forefront for acquiringsuch companies, Nicholas Piramal IndiaLtd. (NPIL), is doing just the opposite.The company is acquiring more Indianthan western firms. In the Indian pharmaindustry, NPIL has made more acquisitionsthan any other firm. In 2003, NPIL rankedthird in the Indian pharmaceutical industrywith a market share of 4.4%, next only tomarket leader GlaxoSmithKline (5.7%)and Ranbaxy (4.7%). By adopting thestrategy of mergers and acquisitions(M&As), it intends to become the topplayer in the Indian pharma industry.


• To discuss NPIL’s business strategy ofacquiring firms and analyse whether thecompany’s M&A strategy would help itemerge as a leader in the Indianpharmaceutical industry.

Industry Pharmaceutical IndustryReference No. MAA0006Year of Pub. 2004Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Nicholas Piramal India Limited; AjayPiramal; Joint venture; Mergers and

acquisitions; Research and development;Growth strategy; Indian pharmaceuticalindustry; Blockbuster drugs;GlaxoSmithKline; Rhone Poulenc; Genericcompetition; Big pharma; Patents andpatented drugs; Food and DrugAdministration; 1970 Indian Patent Act.

Sony Ericsson’s Alliance: TheSynergies

Sony Ericsson Mobile Communications,AB was formed as a 50-50 joint venturebetween Japan’s Sony Corporation andSweden’s Ericsson in August 2001. Thecompany, with its headquarters in London,commenced its operations in October2001. With Sony’s experience in consumerelectronics and Ericsson’s expertise inmobile handset manufacturing, thecompany envisaged dominating the globalmobile handset market. However, since itsinception, Sony Ericsson had been makinglosses and could grab only a meagre 5.5%global market share by mid-2003. In thethird quarter of 2003, with the introductionof camera phones, Sony Ericsson clockedthe first ever profit in its history, of 62million euros. Still, Sony Ericsson wasranked 5th in the mobile market worldwide.By then, with the saturation of theEuropean and the American mobilemarkets, the focus of the global handsetmanufacturers had shifted to the emergingmarkets of Asia where the second handphone market had hit the market for newphones hard. Under such circumstances,Sony Ericsson reconsidered its initialstrategy of targeting the high-end, low-volume segment by announcing its forayinto the low-end, high-volume segment inthe fourth quarter of 2003.


• To discuss the expected synergies thatprompted Sony and Ericsson to strike a50-50 joint venture in 2001

• The reason behind the alliance’s troubledbeginning and how it bounced back toprofitability.

Industry Wireless Telephone HandsetsReference No. MAA0005Year of Pub. 2004Teaching Note AvailableStruc.Assig. Available

keywords

Sony; Ericsson; Sony Ericsson; History ofSony; History of Ericsson; Sony Ericssonjoint venture; Sony Ericsson’s losses; Globalmobile market; Sony Ericsson T68I; 3Gtechnology; Low priced handsets; SonyEricsson’s restructuring; Profits of SonyEricsson; Business performance of SonyEricsson; Global imaging phone market.





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Ahold Merger and AcquisitionStrategy: Cees Van Der Hoeven’s

ApproachAhold, the largest food retailer in theNetherlands, under Cees van der Hoeven(Hoeven) became the third largest foodretailer in the world through acquisitions.Initially, Hoeven was prudent in his strategyby adhering to Ahold’s six golden principleson acquisition. But as the company becamebigger he over-promised investors and inorder to deliver his promise, he overlookedthe company’s rules and implemented hisacquisition strategy too swiftly. Thisultimately led to many problems includingthat of integrating the various acquiredentities to function as one organisation.Finally he, along with some of his keyexecutives, were forced to resign when theproblems at Ahold went public.


• To discuss the perils that companiesmight come across in trying toimplement an acquisition strategy tooswiftly.

Industry Retail ServicesReference No. MAA0004Year of Pub. 2004Teaching Note AvailableStruc.Assig. Available

keywords

Ahold; Cees van der Hoeven; Mergers andacquisitions; Six golden rules of acquisitions;US Foodservice; Velox Retail Holdings;Disco Ahold International; Vendorallowances; Pierre Everaert; AndersMoberg; Giant food stores; Autonomousgrowth; US mass retailer of the year;Acquisition strategy; Albert Heijn.

Acquire and Ascend: Theebookers Way

ebookers.com is one of the earliestEuropean on-line travel agencies to havesuccessfully generated revenues on the web.In transforming itself from the traditionaloff-line business, the company weatheredseveral downturns. In spite of thewidespread doubts and anxiety thatprevailed among the investing community,the company raised funds from theAmerican and German stock markets.During the downturn, ebookers went onacquiring many on-line travel agentsacross Europe. Just when the company wasabout to break even, the September 11attacks shook the entire travel industry ofworld. Still, the company did not cease itsacquisition strategies.


• To discuss the strategies that underliesthe success of ebookers.com.

Industry Travel IndustryReference No. MAA0003Year of Pub. 2003Teaching Note Not AvailableStruc.Assig. Not Available

keywords

eBookers; Dinesh Dhamija; On-line travelagency; Acquisitions; Tecnovate;Flightbookers; Phocus-Wright; Merchantfares; Travel; Dabin Travel; Expedia;Lastminute.com; America OnLine; AOL;British Airways.

Pfizer: Mergers and AcquisitionsIn the 1990s, the global pharmaceuticalindustry saw a spurt of mergers andacquisitions. Companies across the worldwere merging to achieve critical mass andeconomies of scale in all departments butmore specifically in research anddevelopment. Pfizer, which had alwaysadopted a strategy of ‘organic’ growth,suddenly changed its policy and turnedtowards ‘inorganic’ growth. It acquiredWarner Lambert and Pharmacia to becomethe biggest pharmaceutical company in theworld. The major driver for theseacquisitions was the portfolio ofblockbuster drugs of the two acquiredcompanies.


• To discuss why Pfizer changed itstrajectory from organic to inorganicgrowth

• To discuss the key elements in Pfizer’sacquisition of the two companies.

Industry PharmaceuticalsReference No. MAA0002Year of Pub. 2003Teaching Note Not AvailableStruc.Assig. Not Available

keywords

Pfizer; Mergers and acquisitions; WarnerLambert; American pharmaceuticalindustry; Patented drugs; Lipitor;Pharmacia; Value chain; Celebrex;Research and development; Economies ofscale; Food and Drug Administration; Co-promotions; Generic compeition;Inorganic growth.

ICICI into Universal BankingThe banking sector deregulation that tookplace in India during the early 1990s poseda threat to the survival of Developmentfinancial institutions (DFIs). They werecut off from the concessional fundingextended by the government and wereexposed to intense competition from localand foreign banks. Over a period of time,Industrial Credit and Investment

Corporation of India Ltd. (ICICI), whichwas set up as a DFI in 1955, underwentsignificant changes to meet thesechallenges. To exploit the synergiesbrought by universal banking, it went infor mergers and acquisitions and finallyreverse merged with its subsidiary ICICIBank.


• To discuss how the banking sectorreforms affected the DevelopmentFinancial Institutions (DFIs) in India

• To discuss the benefits that a universalbank offers and the reasons behind themerger of ICICI with ICICI Bank.



keywords

Industrial Credit and InvestmentCorporation of India Ltd; ICICI Bank;Universal banking; Low cost deposits; Costof funds; Development financialinstitutions; Statutory liquid and cashreserve ratios; Reverse merger; Long termoperational fund; Deregulation of Indianbanking sector; Non-performing assets;Indian banking industry; Financial sectorreforms; Reserve Bank of India; Long-termfunding.

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Case studies in_strategy(catalogue_iii)

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