...Boston Scientific and Medtronic in medical devices Media companies (e.g. Time Warner, Disney, Vivendi) and their diversification strategies Amazon’s tablet business Shangri-La Hotels: strategy for regional growth Cemex: strategy for globalization P&G and Unilever in China (or India) Walls icecream’s (owned by Unilever) growth in Asia Nestle’s growth in emerging markets Globalization strategy of Whirlpool Whirlpool and GE’s strategies in appliances in Asia Walmart’s globalization; experiences in Latin America, Asia, Europe Carrefour: successes and failures in globalization Mittal’s growth in steel industry; industry consolidation AES growing in electricity generation industry; globalization; industry restructuring Consolidation in the electric utility industry in the US Consolidation in the aluminum industry Consolidation in the automotive industry: Fiat+Chrysler, Daimler + Chrysler, Renault + Nissan Alliances in the international airline industry New airlines in Europe, such as Ryanair, Easy Jet, Go, Virgin Express Lenovo (China) in PC and Internet Haier (China) in appliances Ebay’s acquisition of Skype Chipotle’s growth: past, present and future Disney’s acquisition of Lucasfilm Inditex and fast fashion industry Paypal and mobile payment industry Schneider Electric’s acquisition of Invensys Online instant video industry Growth and decline of Blackberry Globalization of McDonald’s Intel and vertical integration Microsoft’s acquisition of Nokia Uniqlo ...
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...Question 1: What is the nature of Whirlpool’s domestic and international business environments? What type of risk does the firm face? Domestic market * Maturity of the US market in the 90s accompanied stiff competition, more demanding buyers which resulted in low profit margin and the need for management to consider internationalising. International market * Fall of trade barriers, customer affluence grew and capitalism flourished. * Management was quick to understand that a more global approach would encourage economies of scale in the firm’s manufacturing and assembly operations. * The firm sought cost reduction mechanisms in R&D, manufacturing, and services by locating plants in lower-cost locations like China, Mexico and Poland. * Global expansion strategy (Acquisition) – Acquired the appliance market of Phillips in Europe, 65% of Italian cooling compressor manufacturer (Aspera), purchased Poland’s second appliance maker, and formed a joint venture to produce air conditioners in China etc. * The firm launched a differentiation campaign to distinguish itself from the ‘Sea of White’ appliances and the ‘White goods business’ perception that the industry witnessed. * A knowledge management intranet site and a DIY course in innovation yielded high potential, innovative ideas from the global workforce. * Local preferences – cross-regional teams collaborate to adapt innovations to local demands. * As a result, since 2003, revenue quadrupled...
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...www.quickprinter.be 2.90 EUR International Business: Cases Case 1: Whirlpool Whirlpool’s Dramatic Turnaround through Internationalization Whirlpool exemplifies how internationalization can rejuvenate declining sales and optimize cost structures. Background Headquartered in Benton Harbor, Michigan, Whirlpool Corporation makes washers, dryers, refrigerators, dishwashers, freezers, and microwave ovens in 13 countries and sells them in 170 others, under brands names such as Whirlpool, Maytag, Magic Chef, Jenn Air, Amana, KitchenAid, Kenmore, Brastemp, and Bauknecht. In 2006, Whirlpool acquired competitor Maytag (horizontal integration) and its brands (Amana, Jenn Air, Magic Chef, and Maytag). Whirlpool generated over $19 billion in 2006 annual sales: 60 percent from North America, 25 percent from Europe, 15 percent from Latin America, and 2 percent from Asia. Operate with 60 manufacturing and technology centers worldwide and 80,000 employees. International Expansion Domestically: (1) The U.S. appliance market matured in the 1990s, and Whirlpool faced low profit margins, intense competition, and more demanding buyers, pressuring management to consider international markets. Internationally: (1) Trade barriers fell, consumer affluence grew, and capitalism flourished. (2) A “global” approach would yield economies of scale in manufacturing, assembly, appliance technology and distribution. (3) Whirlpool sought cost reductions in R&D, manufacturing, and services by locating plants...
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...Note: Attempt all the Question, All the questions carry equal marks, CASE 1 The Santek Images Business Unit Consolidated Products is a $21 billion company headquartered in Atlanta, Georgia. The company’s five business units, which offer a wide array of products and services, are the result of an aggressive strategy of mergers and acquisitions starting in the late 1980s. The corporate staff is surprisingly small, comprised of general management, legal staff, and human resources. Part of the reason for this small staff is due to the eclectic array of businesses housed within one corporate entity. A Business Week editor recently commented that “Consolidated Products could easily be broken up into five separate companies, since at one time it was five separate companies.” The editor also said that if the company “ever learned how to leverage its size in the marketplace, Consolidated Products could be a Wall Street powerhouse!” While Consolidated Products is a global corporation with facilities around the world, it operates each business unit as a highly independent and decentralized company. The corporate culture is best described as entrepreneurial, with each business unit being headed by an executive vice president who has complete profit and loss accountability. One of the business units, Santek Images, is the focus of this case. Santek Images Santek Images produces instant film and the imaging products that use that film for...
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...Case Analysis On Haier – Management Control on a Tactical Level INTRODUCTION * Haier Group is China's largest white goods manufacturer and one of the world's fastest growing white goods companies. * The company started out as a nearly bankrupt refrigerator plant in Qingdao, China, equipped with a group of low skilled and undisciplined workers, low productivity, inferior product quality and a loss making business. * Its current CEO, Zhang Ruimin, first took over the company in 1984 and established corporate rules and culture, revamped business strategy and set up an incentive-based management control system. All of these transformed Haier into a global player in less than 2 decades. * This case study examines the establishment of Haier's management control system and how it was adapted into the company's internationalization strategies, how it motivated employees to reach high performance goals and how it structured the business units to obtain optimal operational efficiency. SWOT ANALYSIS Strengths * Haier enjoy a well-known brand name and high reputation for reliable quality and first-rate customer service. * Its strength also lies in its innovation in both production and management practice. * Haier was ranked fourth among the global white goods manufacturers in 2004. * The Group successfully carried out product diversification to expand its brand beyond refrigerators, adding washing machines, air conditioners, and other items to...
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...LOVELY PROFESSIONAL UNIVERSITY INSTRUCTION PLAN (for Lectures) Term: 3rd Course No. COM604 Course Title: STRATEGIC MANAGEMENT L: 4 T: 1 P: 0 Textbook: 1. Hunger J. D. and Wheelen T. L. , Strategic Management & Business Policy, Pearson Education, New Delhi, 8th Ed., 2006 Other Specific Books: 2. Kazmi, A. Business Policy and Strategic Management, Tata McGraw Hill, New Delhi, 2nd Ed. 2007 3. Jauch, R. Lawrence, R. Gupta and W.F.Glueck, Business Policy and Strategic Management, Frank Bros.&Co., 7th Ed.,2007 Other readings: |S. No |Journal articles as compulsory reading | |. |Camillus, J. C. Strategy as a wicked problem, Harvard Business Review, May 2008 | | |Hirotaka, The contradictions that Drive Toyota’s success, Harvard Business Review, June, 2008 | | |C.K. Prahalad’s Plan: India @75, Business Today, August 24, 2008 | | |McAfee, A. and Brynjolfsson, E., Investing in IT that makes a competitive Difference, Harvard Business Review, July-August, 2008, PP.98-107 | | |Collis, D.J. and Montgomery, C.A., Competing on Resource, Harvard Business Review, July-August, 1995 ...
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...Dow Chemical’s Acquisition of Rohm & Haas (2008-2009) MGT 4066 Professor Jayaraman December 7, 2010 Joseph Dennis Kunal Parbadia Robert Pirkle Will Weston Yash Ghogre Overview In mid 2008, Dow Chemical found itself in an industry that had recently been experiencing some consolidation. As one of the giants in the chemical material industry, it needed to maintain its position as an industry leader or else it would probably lose its foothold near the top. Then there is the target, Rohm & Haas, a smaller chemical materials firm, yet still considered a rival of Dow Chemical. Both companies had been in operation for a combined 200 years and have been creating innovative materials that each and every one of us see or use in our everyday lives without even noticing. On July 10, 2008, Dow Chemical announced the acquisition of Rohm & Haas, which had been approved by the Rohm & Haas Board of Directors. This deal occurred during one of the toughest economic times in recent history, which eventually had a profound effect on not only the financial structuring, but also the final execution of the deal, as you will see in the pages to come. About Dow Chemical The Dow Chemical Company was founded on May 18th, 1897 when Herbert H. Dow established a plan to both manufacture and market bleach and potassium bromide on a factory scale level. In the early years of the company’s existence there was a series of pricing wars between both British and German manufacturers of bleach...
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...Analysis of Household appliances Industry 1 • Color Television : CTVS Ø Recent Performance Ø Industry Structure Ø Industry Trends •Refrigerators Ø Recent Performance Ø Industry Structure Ø Industry Trends •Washing Machines Ø Recent Performance Ø Industry Structure Ø Industry Trends •RACs Recent Performance Industry Structure 2 Industry Trends :3 : 12 : 17 : 41 : 48 : 53 : 68 : 75 : 79 : 91 : 98 : 101 • Demand Review and Growth Projections Ø CTVs Ø Refrigerators Ø Washing Machines Ø RACs • Costs and Profitability Analysis • Critical Success Factors • Impact Analysis • Player Profiles 3 : 117 : 127 : 140 : 151 : 164 : 186 : 196 : 203 Color Televisions: Recent Performance 4 Overview •Rising disposable incomes, growing aspirations of consumers, declining prices, shrinking replacement cycle for colour televisions (CTVs) helped the industry increase at a 5 per cent CAGR during 2006-07 to 2011-12. •However, in 2011-12, colour television sales (volume terms) declined by 1.3 per cent y-o-y to 12.8 million units. •This was mainly due to decline in sales of conventional colour TVs (CCTV) and flat colour TVs (FCTVs) by 28 per cent and 8 per cent, respectively and also due to slower growth in LCD segment. •Also high inflation and rising interest rates combined with weak consumer sentiment put pressure on the demand during 2011-12. LCD,LED segment record strong growth •The CCTV segment has been steadily losing ground in the past few years mainly due to the narrowing...
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...INTRODUCTION At the height of Henry Ford’s empire, he owned every aspect of the supply chain, from the steel mills, the rubber plantation and the factory. But with diversification of markets and increasing globalisation, companies do not have this luxury. Supply chains have grown longer and require more time and money to delivr, companies need to focus on core competencies while still maintain a control over the supply chain. The polarisation of the global market is important too and is currently characterized by expanding product variety, short life-cycle, shifting customer demand and continuous advancement in technology. HISTORY AND PRESENT Twenty years ago, experts were predicting the death of companies that did not relocate to countries with smaller overheads and costs. The fanatical levels of competition between companies reduced the prospect of success or failure to one absolute: cost. This led to an exodus of companies travelling to production facilities on the other side of the globe. Thus supply chains became long and unwieldy, reducing the amount of control and oversight over it. The influx of wealth in the LEDCs allowed the governments to improve standards , according to the International Labour Organisation, wages in Asia between 2000 and 2008 rose by 7.1-7.8%/ year; this reduced the cost advantage that brought the companies flocking to their doors. Oil and energy prices and consequently transportation costs have sky rocketed, which reduces the cost advantage...
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...( Ryka, INC.: Lightweight Athletic Shoes for Women Business and Industry Analysis) Ryka is doing business of athletic shoes for women, which are made on the shape of a woman’s foot, and are designed and developed considering women’s unique fit needs. It is the only athletic footwear company, which is exclusively for women, by women, and now supporting women. Because a woman’s needs in a comfortable, attractive, high performance athletic shoes that are attractive, comfortable, and well suited for exercise and physical fitness programs are different from a man’s. Therefore, it places Ryka shoes among the highest rated in the industry. The athletic footwear industry was divided into various submarkets by end-use specialization. Ryka competed in only three segments: aerobic, walking, and cross-training shoes. Ryka had focused on performance rather than fashion because Poe believed that fashion-athletic footwear was susceptible to faddish trends and to ups and downs in the economy, whereas the demand for performance shoes was based on the ongoing need of women to protect their physical well-being. Ryka cut back on its product line and began to focus primarily on aerobic shoes and secondarily on walking shoes. Poe did not believe that Ryka had to become an industry giant to succeed. SWOT Analysis Strength: Poe’s image and profile were the most critical components in Ryka’s marketing strategy. Poe had successfully worked the female angle: she appealed to contemporary working women...
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...ResearchersWorld -Journal of Arts, Science & Commerce ■ E-ISSN 2229-4686 ■ ISSN 2231-4172 SIGNIFICANCE OF HUMAN RESOURCE MANAGEMENT IN ORGANIZATIONS: LINKING GLOBAL PRACTICES WITH LOCAL PERSPECTIVE Akbar Ali, Faculty of Management Information System National University of Sciences & Technology, Pakistan ABSTRACT Present study aims to link the global HRM in local context. HRM deals with the responsibilities, functions, behaviors and importance of employee. Hence the significance of HRM in organization is marvel. Previously not much attention had been given to manage employee in an organized manner, but with the passage of time need were felt to shift to formalization. The level of HRM practices do not show the formalized structure, therefore it is found mandatory to focus our country so that a step towards the identification and filling of gaps is initiated. HRM role is supposed to be very inclined towards humanitarian factors. In Pakistan the issue of traditional management is required to be addressed to transform it to HRM conceptualization in true letter and spirit. In Pakistan context this article is being written with the confidence that it will help managers to link the global HRM practices in local context in their organizations. Keywords: HRM, Organisation Pakistan. International Refereed Research Journal ■ www.researchersworld.com ■ Vol.–IV, Issue–1, January 2013 [78] ResearchersWorld INTRODUCTION: -Journal of Arts, Science & Commerce ■ E-ISSN...
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...2/27/12 Generic Competitive Strategies - eNotes.com Generic Competitive Strategies Generic Competitive Strategies Three of the most widely read books on competitive analysis in the 1980s were Michael Porter's Competitive Strategy, Competitive Advantage, and Competitive Advantage of Nations. In his various books, Porter developed three generic strategies that, he argues, can be used singly or in combination to create a defendable position and to outperform competitors, whether they are within an industry or across nations. Porter states that the strategies are generic because they are applicable to a large variety of situations and contexts. The strategies are (1) overall cost leadership; (2) differentiation; and (3) focus on a particular market niche. The generic strategies provide direction for firms in designing incentive systems, control procedures, and organizational arrangements. Following is a description of this work. OVERALL COST LEADERSHIP STRATEGY Overall cost leadership requires firms to develop policies aimed at becoming and remaining the lowest-cost producer and/or distributor in the industry. Company strategies aimed at controlling costs include construction of efficient-scale facilities, tight control of costs and overhead, avoidance of marginal customer accounts, minimization of operating expenses, reduction of input costs, tight control of labor costs, and lower distribution costs. The low-cost leader gains competitive advantage by getting...
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...Managing the internationalization process Learning outcomes After reading this chapter, you should be able to: ➤ Understand the motives for internationalization. ➤ Apply the theories underpinning the internationalization process. ➤ Explain the Psychic Distance and Born Global concepts. 5 ➤ Advise a multinational firm on choosing an appropriate entry mode for internationalization. ➤ Advise a multinational firm on de-internationalization. 148 Global strategic development Opening case study Internationalization of a French retailer—Carrefour In 1960, Carrefour opened its first supermarket in France. In 1963, Carrefour invented a new store concept—the hypermarket. The hypermarket concept was novel, and revolutionized the way French people did their shopping. It moved daily shopping from small stores to enormous stores where customers find everything they want under one roof, in addition to selfservice, discount price, and free parking space. The first Carrefour hypermarket store was established at the intersection of five roads—hence the name, Carrefour, which means ‘crossroads’. Carrefour is the leading retailer in Europe and the second largest worldwide, with Exhibit A International development of Carrefour Year Country and mode of entry No. of stores (2009) 1969 1973 1975 1982 1989 1991 1993 1993 1994 1995 1996 1997 1997 1998 1998 2000 Belgium—Carrefour’s first hypermarket outside France Spain Brazil—Carrefour’s first hypermarket in the Americas Argentina Taiwan—Carrefour’s...
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...Hong, Kil Dong Applying for MBA Yale University 1.Please discuss the principle elements of your educational and work experience to date. Describe your specific career objectives as a professional manager(three to five pages, double-spaced) Since I had worked in the xxx product department of xxx, established by my deceased father, the yearly income was $xx million in 19xx and in the top 10 rank in Korea, my major problem was a lack of knowledge in Finance and Management. Upon graduation from undergraduate studies, I was employed in the Management Planning Team. Because I did not have the background in business administration from majoring in English Literature in undergraduate, I realized the difficulty in grasping the concept of general company matters, marketing analysis, and setting up the short and long-term marketing plan. When I participated in the future development of xxx and sales project for 10 months that began in February 19xx, I realized that I was incapable of successfully performing my duties as an Assistant Manager with 8 staff members for a project in which the company heavily depended upon. It was then that I had realized what special talent was needed to become a successful manager. For instance, while analyzing xxx, xxx’s technological advantage and marketing strategies, I realized the importance of learning Marketing Research and Strategy. I also realized the importance of Financial Management and Corporate Financial Policies when planning...
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...ECS8_C03.qxd 10/15/07 14:23 Page 93 The Strategic Position 3 Strategic Capability LEARNING OUTCOMES After reading this chapter you should be able to: ➔ Distinguish elements of strategic capability in organisations: resources, competences, core competences and dynamic capabilities. ➔ Recognise the role of continual improvement in cost efficiency as a strategic ➔ Analyse how strategic capabilities might provide sustainable competitive advantage on the basis of their value, rarity, inimitability and nonsubstitutability. ➔ Diagnose strategic capability by means of value chain analysis, activity mapping, benchmarking and SWOT analysis. ➔ Consider how managers can develop strategic capabilities of organisations. Photo: Glyn Kirk/Action Plus Sports Images capability. ECS8_C03.qxd 94 10/15/07 CHAPTER 3 3.1 14:23 Page 94 STRATEGIC CAPABILITY INTRODUCTION Chapter 2 outlined how the external environment of an organisation can create both strategic opportunities and threats. However, Tesco, Sainsbury’s and Asda all compete in the same environment, yet Tesco is a superior performer. It is not the environment that distinguishes between them but their internal strategic capabilities. The importance of strategic capability is the focus of this chapter. There are three key concepts that underpin the discussion. The first is that organisations are not identical, but have different capabilities; they are ‘heterogeneous’...
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