ATTEND ANY FOUR CASE STUDIES. ALL CASES CARRIES EQUAL MARKS
CASE 01: STARBUCKS ----- GOING GLOBAL FAST
The Starbucks coffee shop on Sixth Avenue and Pine Street in downtown Seattle sits serene and orderly, as unremarkable as any other in the chain bought 15 years ago by entrepreneur Howard Schultz. A little less than three years ago, however, the quiet storefront made front pages around the world. During the World Trade Organization talks in November, 1999, protesters flooded Seattle’s streets, and among their targets was Starbucks, a symbol, to them, of free-market capitalism run amok, another multinational out to blanket the earth. Amid the crowds of protesters ad riot police were black-masked anarchists who trashed the store, leaving its windows smashed and its tasteful green-and-white décor smelling of .................
Mr.Schultz says Japan is ripe for development, including further store openings. “The wind is at our back here,” Mr. Schultz says.
QUESTIONS:
1. Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets.
2. What are the major sources of risk facing the company and discuss potential solutions.
3. Critique Starbucks’ over all corporate strategy.
4. How might Starbucks improve profitability in Japan? Visit www.starbucks.com for more information.
CASE 02: WHEN INTERNATIONAL BUYERS AND SELLERS DISAGREE
No matter what line of business you’re in, you can’t escape sex. That may have been one conclusion drawn by an American exporter of meat products after a dispute with a German customer over a shipment of pork livers. Here’s how the disagreement came about.
The American exporter was contracted to ship “30,000lbs, of freshly frozen U.S. pork levers, customary merchantable quality, and first rate brands.” The shipment had been prepared to meet the exacting standards of the American market, so the exporter expected the transaction to be completed without any problem. But when the livers arrived in Germany, the purchaser raised an objection: “We ordered pork livers of customary merchantable quality—what you sent us consisted of 40 per cent sow livers.”
“Who cares about the sex of the pig the liver came from?” the exporter asked.
“We do,” the German replied. “Here in Germany we don’t pass off spongy sow livers as the firmer livers of male pigs. ................
It looked as if the buyer and seller could never agree on eating habits.
QUESTIONS
1. In this dispute which country’s law would apply, that of the United States or of Germany?
2. If the case were tried in U.S. courts, who do you think would win? In German courts? Why?
3. Draw up a brief agreement that would have eliminated the following problems before they could occur.
a. Whose law applies
b. Whether the case should be tried in U.S. or German courts
c. The difference in opinion as to “customary merchantable quality”
4. Discuss how SRC may be at work in this case
CASE 03: SALES NEGOTIATIONS ABROAD FOR MRI SYSTEMS
International sales of General Medical’s magnetic Resonance Imaging (MRI) systems have really off in recent months. Your representatives are about to conclude important sales contracts with customers inboth Tokyo and Rio de Janeiro. Both sets of negotiations require your participation, particularly as final details are worked out. The bids you approved for both customers are identical (see tables). Indeed, both customers had contacted you originally at a medical equipment trade show in Las Vegas, and you had all talked business together over drinks at the conference hotel. You expect your two new customers will be talking together again over the Internet about your products and prices as they had in Las Vegas. The Japanese orders are potentially larger because the doctor you met works in a hospital that has nine other units in the Tokyo / Yokohama area. The Brazilian doctor represents a very large hospital in Rio, which may require more than one unit. Your travel arrangements are now being made. Your local representatives will fill you in on the details. Best of luck!
TABLE 1: Price Quotation
--------------------------------------------------------------------------------------------------------------------------
Deep Vision 2000 MRI (basic Unit) Product options $ 1,200,000
• 2D and 3D time-of-flight (TOF)
Angiography for capturing fast flow 150,000
• Flow analysis for quantification of
Cardiovascular studies 70,000
• X2001 software package 20,000
Service contract (2 years normal maintenance, parts,
and labour) 60,000
-----------------------------------------------------------------------------------------------------------------------------
Total Price $ 1,500,00
_____________________________________________________________________________
TABLE 2
Standard Terms and Conditions
Delivery 6 months
Penalty for late delivery $ 10,000 / month
Cancellation charges $ 10% of Contract price
Warranty (for defective machinery) Parts, one year
Terms of payment C O D
CASE- 04: AVON PRODUCTS IN INDIA
“We Want to be affordable to all consumers across various price points.”
HarmeetS.Pental, Managing Director, Avon Beauty Products India Ltd.
Avon entered India in 1996. The company took two years to test-market their products. After that the product portfolio was made as per Indian consumer’s product and price preferences. The first portfolio of products was for high end customers.
Avon’s multi-level business strategy was not successful in India. In 1998, they dropped the multi-level system and adopted the single-level direct sales structure. ...............
Shree ShiddhiVinayak (which produces talcs), Assam Cosmetics (which makes cold cream and body lotions), and Colortek (manufacturer of cold cream, sunscreens, body lotions), among some others.
CASE-05: RELIANCE ENTERTAINMENT LEARNS LANGUAGE OF THE YOUTH
The web seems to have caught the fancy of executives at Reliance Entertainment. The company first ventured into the digital space by launching gaming portal Zapak.com. The launch was accompanied by a large-scale, multi-media campaign, with a few of its ads even running into controversy (e.g. Postmen, anyone?).
Post-Zapak, Reliance Entertainment has unleashed a second horse onto the racing track: Bigadda. Com, a social net working site aimed at the young, urban populace (15-5 year olds).
According to Rajesh Sawhney, president, Reliance Entertainment, the rational behind Bigaddais simple: India is a young market with more than 54 per cent of its population below the age of 25. Further, broadband penetration is set to increase over the next five years, leading to a consequential rise in online ad spends; currently online advertising .................
such as multiplexes, colleges, schools and malls, apart from on-ground and other BTL activities in these areas.
“We’re hoping intense word-of-mouth will drive Bigadda.com,” concludes Sawhney.
CASE 06: DISNEY’S HONG KONG HEADACHE *
“The launch of its new theme park got off to a rocky start, but Disney’s still got an appetite for the China market.” – Michel Schuman Hong Kong, may 15th, 2008.
The slogan of Disneyland is “The Happiest Place on Earth”, but the experience of Mr LianNing, an engineer who brought his family to Disney;s new theme park In Hong Kong from the southern Chinese city of Guangzhou was far from sastisfactory. He said that he came with an fairly—tale experience but here the park was not big and Disneyland was not ...............
1. Disney to reach its target of 5.6 million customers started aggressive promotion campaign like offering free tickets for 50,000 Hong Kong taxi drivers {and} share it with their passengers.
Indeed, Disney continues to bet that its long-rang investment plans in China will pay off, regardless of the recent headaches in Hong Kong. The firm is still in talks with Chinese officials about opening a mainland theme park, possible in Shanghai, says Rasulo. “Have we made some mistakes?” he asks,” Absolutely. We are in a brand- new market/ We have to keep listening and keep listening and keep learning.” Resorting Tinkerbell’s health only requires a round of applause, but Hong Kong Disneyland will need a bit more work.
QUESTIONS
1. Why did Disney invest in Hong Kong?
2. In your viewpoint what cultural inputs did Disney forget to take into consideration while deciding on the marketing strategies?
3. Prepare a strategic road map for Disney in Hong Kong.
CASE 07: INDIA AN EMERGING ECONOMY (MANUFACTURING CASE)
Manufacturing: The India Value Proposition:
India’s GDP of USD 691 bn makes it the 10th largest economy in the world and 4th largest in terms of purchasing power parity. It has become one of the fastest growing economics in
the world---growing at over 8% p.a. for the manufacturing contributes to
79% of FDI investment
27% of India GDP
53% of Indian exports
*India is the world’s second largest small car market.
*One of only three countries that makes its own super Computers.
*World’s largest producer of milk, tea and pulses and the
World’s largest livestock population.
Exhibit 1
(1) .................Government of India offers a five year tax holiday for
(a) Power projects
(b) Firms engaged in exports
(c) New Industries in notified states
(d) Units in Electronic hardware, software parks
(e) EOU’s and Free Trade Zones
(2) Tax Deductions of 100% on export profits
(3) Deduction of 30% on net income for 10 years for new industries
(4) Deduction in respect of certain inter-corporate dividends
CASE 08: A CASE OF SUNDARAM FASTENERS
Products and Services of Business
“The acquisition of a manufacturing facility in the UK has been a part of SLF’sstrategy to become a global player. The acquisition has given us access to new technology. weare confident that this will become a win-win situation by providing parts from India to the UK company of lower prices, and therefore rendering the UK company more competitive and at the same time providing tremendousopportunity for the Indian plants of SFL to absorb technology and grow”.
............Future Plans
New investments and diversifying product range of CPFL has planned by the company. The Further, SFL has planned to use the distribution network of its UK subsidiary to market products that are manufactured in India.
SFL is looking forward to commence operations in other countries . The UK subsidiary wil act as a centre to access other countries in Europe by giving the knowledge and launching pad for understanding the dynamic European market and will act as a division with the latesttechnology and skilled labour
CASE 09: Case of water purifiers to consumer satisfying products
“In urban India, Hindustan Lever Network (HLN) is our direct selling initiative selling a special range of products. It already reaches 1,400 towns with over 3 lakh consultants. Besides reach, HLN enables dire3cdt interaction with consumers and customises solutions for them to give them a complete brand experience.”
Bringing FMCG Back to Growth Mr. M>S>Banga, 2005. In
CASE 01: STARBUCKS ----- GOING GLOBAL FAST
The Starbucks coffee shop on Sixth Avenue and Pine Street in downtown Seattle sits serene and orderly, as unremarkable as any other in the chain bought 15 years ago by entrepreneur Howard Schultz. A little less than three years ago, however, the quiet storefront made front pages around the world. During the World Trade Organization talks in November, 1999, protesters flooded Seattle’s streets, and among their targets was Starbucks, a symbol, to them, of free-market capitalism run amok, another multinational out to blanket the earth. Amid the crowds of protesters ad riot police were black-masked anarchists who trashed the store, leaving its windows smashed and its tasteful green-and-white décor smelling of .................
Mr.Schultz says Japan is ripe for development, including further store openings. “The wind is at our back here,” Mr. Schultz says.
QUESTIONS:
1. Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets.
2. What are the major sources of risk facing the company and discuss potential solutions.
3. Critique Starbucks’ over all corporate strategy.
4. How might Starbucks improve profitability in Japan? Visit www.starbucks.com for more information.
CASE 02: WHEN INTERNATIONAL BUYERS AND SELLERS DISAGREE
No matter what line of business you’re in, you can’t escape sex. That may have been one conclusion drawn by an American exporter of meat products after a dispute with a German customer over a shipment of pork livers. Here’s how the disagreement came about.
The American exporter was contracted to ship “30,000lbs, of freshly frozen U.S. pork levers, customary merchantable quality, and first rate brands.” The shipment had been prepared to meet the exacting standards of the American market, so the exporter expected the transaction to be completed without any problem. But when the livers arrived in Germany, the purchaser raised an objection: “We ordered pork livers of customary merchantable quality—what you sent us consisted of 40 per cent sow livers.”
“Who cares about the sex of the pig the liver came from?” the exporter asked.
“We do,” the German replied. “Here in Germany we don’t pass off spongy sow livers as the firmer livers of male pigs. ................
It looked as if the buyer and seller could never agree on eating habits.
QUESTIONS
1. In this dispute which country’s law would apply, that of the United States or of Germany?
2. If the case were tried in U.S. courts, who do you think would win? In German courts? Why?
3. Draw up a brief agreement that would have eliminated the following problems before they could occur.
a. Whose law applies
b. Whether the case should be tried in U.S. or German courts
c. The difference in opinion as to “customary merchantable quality”
4. Discuss how SRC may be at work in this case
CASE 03: SALES NEGOTIATIONS ABROAD FOR MRI SYSTEMS
International sales of General Medical’s magnetic Resonance Imaging (MRI) systems have really off in recent months. Your representatives are about to conclude important sales contracts with customers inboth Tokyo and Rio de Janeiro. Both sets of negotiations require your participation, particularly as final details are worked out. The bids you approved for both customers are identical (see tables). Indeed, both customers had contacted you originally at a medical equipment trade show in Las Vegas, and you had all talked business together over drinks at the conference hotel. You expect your two new customers will be talking together again over the Internet about your products and prices as they had in Las Vegas. The Japanese orders are potentially larger because the doctor you met works in a hospital that has nine other units in the Tokyo / Yokohama area. The Brazilian doctor represents a very large hospital in Rio, which may require more than one unit. Your travel arrangements are now being made. Your local representatives will fill you in on the details. Best of luck!
TABLE 1: Price Quotation
--------------------------------------------------------------------------------------------------------------------------
Deep Vision 2000 MRI (basic Unit) Product options $ 1,200,000
• 2D and 3D time-of-flight (TOF)
Angiography for capturing fast flow 150,000
• Flow analysis for quantification of
Cardiovascular studies 70,000
• X2001 software package 20,000
Service contract (2 years normal maintenance, parts,
and labour) 60,000
-----------------------------------------------------------------------------------------------------------------------------
Total Price $ 1,500,00
_____________________________________________________________________________
TABLE 2
Standard Terms and Conditions
Delivery 6 months
Penalty for late delivery $ 10,000 / month
Cancellation charges $ 10% of Contract price
Warranty (for defective machinery) Parts, one year
Terms of payment C O D
CASE- 04: AVON PRODUCTS IN INDIA
“We Want to be affordable to all consumers across various price points.”
HarmeetS.Pental, Managing Director, Avon Beauty Products India Ltd.
Avon entered India in 1996. The company took two years to test-market their products. After that the product portfolio was made as per Indian consumer’s product and price preferences. The first portfolio of products was for high end customers.
Avon’s multi-level business strategy was not successful in India. In 1998, they dropped the multi-level system and adopted the single-level direct sales structure. ...............
Shree ShiddhiVinayak (which produces talcs), Assam Cosmetics (which makes cold cream and body lotions), and Colortek (manufacturer of cold cream, sunscreens, body lotions), among some others.
CASE-05: RELIANCE ENTERTAINMENT LEARNS LANGUAGE OF THE YOUTH
The web seems to have caught the fancy of executives at Reliance Entertainment. The company first ventured into the digital space by launching gaming portal Zapak.com. The launch was accompanied by a large-scale, multi-media campaign, with a few of its ads even running into controversy (e.g. Postmen, anyone?).
Post-Zapak, Reliance Entertainment has unleashed a second horse onto the racing track: Bigadda. Com, a social net working site aimed at the young, urban populace (15-5 year olds).
According to Rajesh Sawhney, president, Reliance Entertainment, the rational behind Bigaddais simple: India is a young market with more than 54 per cent of its population below the age of 25. Further, broadband penetration is set to increase over the next five years, leading to a consequential rise in online ad spends; currently online advertising .................
such as multiplexes, colleges, schools and malls, apart from on-ground and other BTL activities in these areas.
“We’re hoping intense word-of-mouth will drive Bigadda.com,” concludes Sawhney.
CASE 06: DISNEY’S HONG KONG HEADACHE *
“The launch of its new theme park got off to a rocky start, but Disney’s still got an appetite for the China market.” – Michel Schuman Hong Kong, may 15th, 2008.
The slogan of Disneyland is “The Happiest Place on Earth”, but the experience of Mr LianNing, an engineer who brought his family to Disney;s new theme park In Hong Kong from the southern Chinese city of Guangzhou was far from sastisfactory. He said that he came with an fairly—tale experience but here the park was not big and Disneyland was not ...............
1. Disney to reach its target of 5.6 million customers started aggressive promotion campaign like offering free tickets for 50,000 Hong Kong taxi drivers {and} share it with their passengers.
Indeed, Disney continues to bet that its long-rang investment plans in China will pay off, regardless of the recent headaches in Hong Kong. The firm is still in talks with Chinese officials about opening a mainland theme park, possible in Shanghai, says Rasulo. “Have we made some mistakes?” he asks,” Absolutely. We are in a brand- new market/ We have to keep listening and keep listening and keep learning.” Resorting Tinkerbell’s health only requires a round of applause, but Hong Kong Disneyland will need a bit more work.
QUESTIONS
1. Why did Disney invest in Hong Kong?
2. In your viewpoint what cultural inputs did Disney forget to take into consideration while deciding on the marketing strategies?
3. Prepare a strategic road map for Disney in Hong Kong.
CASE 07: INDIA AN EMERGING ECONOMY (MANUFACTURING CASE)
Manufacturing: The India Value Proposition:
India’s GDP of USD 691 bn makes it the 10th largest economy in the world and 4th largest in terms of purchasing power parity. It has become one of the fastest growing economics in
the world---growing at over 8% p.a. for the manufacturing contributes to
79% of FDI investment
27% of India GDP
53% of Indian exports
*India is the world’s second largest small car market.
*One of only three countries that makes its own super Computers.
*World’s largest producer of milk, tea and pulses and the
World’s largest livestock population.
Exhibit 1
(1) .................Government of India offers a five year tax holiday for
(a) Power projects
(b) Firms engaged in exports
(c) New Industries in notified states
(d) Units in Electronic hardware, software parks
(e) EOU’s and Free Trade Zones
(2) Tax Deductions of 100% on export profits
(3) Deduction of 30% on net income for 10 years for new industries
(4) Deduction in respect of certain inter-corporate dividends
CASE 08: A CASE OF SUNDARAM FASTENERS
Products and Services of Business
“The acquisition of a manufacturing facility in the UK has been a part of SLF’sstrategy to become a global player. The acquisition has given us access to new technology. weare confident that this will become a win-win situation by providing parts from India to the UK company of lower prices, and therefore rendering the UK company more competitive and at the same time providing tremendousopportunity for the Indian plants of SFL to absorb technology and grow”.
............Future Plans
New investments and diversifying product range of CPFL has planned by the company. The Further, SFL has planned to use the distribution network of its UK subsidiary to market products that are manufactured in India.
SFL is looking forward to commence operations in other countries . The UK subsidiary wil act as a centre to access other countries in Europe by giving the knowledge and launching pad for understanding the dynamic European market and will act as a division with the latesttechnology and skilled labour
CASE 09: Case of water purifiers to consumer satisfying products
“In urban India, Hindustan Lever Network (HLN) is our direct selling initiative selling a special range of products. It already reaches 1,400 towns with over 3 lakh consultants. Besides reach, HLN enables dire3cdt interaction with consumers and customises solutions for them to give them a complete brand experience.”
Bringing FMCG Back to Growth Mr. M>S>Banga, 2005. In
No comments:
Post a Comment