4. Strategic Mgt- Examples
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Transcript of 4. Strategic Mgt- Examples
8/12/2019 4. Strategic Mgt- Examples
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MAHINDRA
Operations span 18 key industries that form thefoundation of every modern economy:
aerospace,aftermarket, agribusiness, automotive,components, construction equipment, consultingservices, defense, energy, farm
equipment, finance and insurance, industrialequipment, information technology, leisure andhospitality, logistics, real estate, retail, and twowheelers.
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Aftermarket: Mahindra First Choice Wheels pre-
owned car dealerships
Mahindra Branded Pesticides (MBP),
Mahindra shubhlabh services for seed
distribution
Mahindra castings and forgings for components
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A joint venture between the Maini Group of
Bangalore and AEV LLC of USA.
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Larsen and Toubro
Larsen & Toubro Limited (L&T) is a technology,
engineering, construction and manufacturing
company in India's private sector.
Independent Companies’ ICs’.
Hydrocarbon, Heavy Engineering, L&T
Construction, Power, Electrical& Automation, Machinery & Industrial Products,
Information Technology, Financial
Services, Shipbuilding, Railway Projects
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Aditya Birla group
Companies under AB Group
Grasim
Hindalco
Ultratech cement
Joint ventures:
Birla Sun Life Insurance company which is a JVof SunLife Financial Inc (Canada)
Birla Sun Life Asset which is a JV of Sun Life
Financial Inc (Canada)
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Aditya Birla Grasun Chemicals (Fang-cheng-
gang) Limited , a JV with Fan-cheng-gang
Grasun Company Limited, Guangxi Province(China)
The Aditya Birla Science and Technology
Company (ABSTC) is the corporate research
and development centre for the Aditya Birla
Group
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Brands
Louis Philippe, Peter England, Allen Solly, Van
Heusen, Birla Carbon, Birla Shaktiman Urea, ,
Aditya Birla Insulators, Linen Club, Pyroguard,Ray One, Idea, Planet Fashion, Grasim,
Graviera,
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HINDUSTAN UNILEVER LIMITED
In 1931, Unilever set up its first Indiansubsidiary, Hindustan Vanaspati
Manufacturing Company, followed byLever Brothers India Limited (1933) andUnited Traders Limited (1935). Thesethree companies merged to form HUL inNovember 1956;
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Lifebuoy in 1895 and other famousbrands like Pears, Lux and Vim. Vanaspatiwas launched in 1918 and the famousDalda brand came to the market in 1937.
Household brands such as Lux, Lifebuoy, SurfExcel, Rin, Wheel, Fair & Lovely, Pond’s,
Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk,
Pepsodent, Closeup, Axe, Brooke Bond, Bru,
Knorr, Kissan, Kwality Wall’s and Pureit
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Pepsi Lipton' Alliance To Offer Ready-To-Drink Tea-Based Beverages In India -2004
Hindustan Unilever
New HLL-Pepsi arrangement combines Lipton
brand equities with Pepsi bottling, sales anddistribution strengths;
Builds upon successful hot beverages andInternational JV
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In January 2000, in a historic step, the
government decided to award 74 per cent equity
in Modern Foods to HUL, thereby beginning thedivestment of government equity in public sector
undertakings (PSU) to private sector partners.
HUL's entry into Bread is a strategic extensionof the company's wheat business. In 2002, HUL
acquired the government's remaining stake in
Modern Foods.
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Cultural issues
Waving is a serious insult in Greece andNigeria
Making a good-bye wave in Europe canmean NO, but in Peru it is COME HERE
Breakfast meetings are considered
uncivilized in most foreign countries Direct eye contact is impolite in Japan
Crossing of legs is RUDE in Arab andAsian countries
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Snapping of fingers is VULGAR in Franceand Belgium
Folding of arms across your chest is a signof annoyance in Finland, but is a sign ofutmost respect in India
In China, leave some food in the plate toshow that your host so generous that youcouldn’t finish
Eating with left hand is bad in Malaysia
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US business people have the lowestforeign language proficiency of any major
trading nation.
US business schools do not emphasize
foreign languages and studentstraditionally avoid them
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Global strategy
A global industry can be defined as:
An industry in which firms must compete
in all world markets of that product inorder to survive
An industry in which a firm’s competitive
advantage depends on economies of scaleand economies of scope gained acrossmarkets
Global markets are international markets
where products are largely standardized.
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Michael Porter argued that industries areeither multi-domestic or global.
Global industries: competition is global.The same firms compete with each othereverywhere.
Multi-domestic industries: firms
compete in each national marketindependently of other national markets.
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Global strategy
Companies (such as Sony and Panasonic)pursue a global strategy which involves:
Competing everywhere Appreciating that success demands a
presence in almost every part of the world
in order to compete effectively Making the product the same for each
market Centralised control
Taking advantage of customer needs and
wants across international borders
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Locating their value adding activitieswhere they can achieve the greatest
competitive advantage Integrating and co-ordinating activities
across borders
A global strategy is effective whendifferences between countries are smalland competition is global.
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It has advantages in terms of
Economies of scale
Lower costsCo-ordination of activitiesFaster product development
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Multi domestic strategy
A multi-domestic strategy involves
products tailored to individual countriesInnovation comes from local R&D
There is decentralization of decisionmaking with in the organization
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One result of decentralization is localsourcing
Responding to local needs is desirable butthere are disadvantages: for example high
costs due to tailored products andduplication across countries