S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

1 www.ibscdc.org Business Divisions; Hanjin Group; declined by 5% from that of 2004. This Airfreight; Air Cargo; Corporate case looks into the difficulties that AOL Restructuring; Fatal Accidents - Safety faced due to its primarily subscription- Korean Air: Chairman/CEO Constraints; OECD; SkyTeam Alliance; based revenue model, and the reasons for Family-owned Business Conglomerates; this shift in strategy. Yang-Ho Cho’s Radical Cargo Shipping Transformation Pedagogical Objectives A series of fatal accidents, coupled with • To discuss the subscription based business operational inefficiencies snowballed Dell Back to the Future? model of AOL Korean Air into troubled times. Then, at the beginning of the 21st century, its CEO/ On January 31st 2007, Dell announced the • The reasons behind declining revenues ransformation ransformation ransformation ransformation ransformation Chairman, Yang-Ho Cho undertook various resignation of Kevin Rollins (Rollins) as transformation initiatives - for instance, the CEO, and founder Michael Dell • Whether free services model can help improving service quality and safety (Michael) took over as the next CEO. the company revive? Since mid-2005, Dell had problems with standards, technology integration, Industry Entertainment customer service, quality and the upgrading pilot training, better business Reference No. COT0008K effectiveness of its direct sales model. focus; putting in place a professional Year of Pub. 2006 Lately, Hewlett Packard, a competitor to management team, improving corporate Teaching Note Not Available Dell, has gained on Dell and occupied the image through sponsorship marketing, etc. Struc.Assig. Not Available No.1 spot as a PC vendor. During Rollins' Corporate T Corporate T

Corporate T He gave a new corporate direction in the Corporate T Corporate T form of '10,10,10' goal. However, Korean tenure Dell also faced investigations of the Keywords Air is held up by a slew of challenges. Among SEC for accounts irregularities. Michael America On-line (AOL); Corporate which are inefficiencies of - Chaebol system faced an uphill task to take the company Transformation Case Study; On-line of management, possible clash of its cargo to the No. 1 position, where it was when advertising; Subscription; Internet service business with its own shipping company, he had left. Analysts felt that it would not provider (ISP); Broadband; Dial-up; Media limited focus on the domestic market and be easy for Michael to comeback, although growing competition from LCCs. How they felt that he would be the only person would Korean Air manage growth as a who could revive Dell. family-owned conglomerate? The case The Downfall of Polaroid: offers enriching scope for analysing a Pedagogical Objectives Corporate Lessons(Part B) family business’s turnaround strategies, with • The kind of leadership traits essential all the legacy costs involved. In October 2001, Polaroid Corporation, to become successful in the competitive the pioneer of instant photography filed IT industry for federal bankruptcy protection under Pedagogical Objectives Chapter 11 bankruptcy protection. Though • How Michael Dell's strategies enabled it was a global brand name in 2007, the • To discuss the (operational) dynamics the company to become the top PC corporate entity of this pioneer got lost in of Korean Chaebols - their influence/ vendor effects on the country’s industrial sector the way. and the economy as a whole • The difference between the strategies Founded in 1937 by Edwin Land, Polaroid of Michael Dell and Kevin Rollins and entered the imaging industry in 1948 with • To analyse how family-owned businesses to understand the importance of advent of first ever instant camera. manage the transition phase - from a succession planning supplier-driven economy to a demand- Polaroid soon developed a cult status for driven economy • Whether Michael Dell will be able to instant cameras. But soon its golden years revive Dell with his new plans. got over. In late 1980s, the digital • To identify all the possible reasons for technology revolutionized the picture Korean Air’s turbulent times and Industry Personal Computers taking industry. Polaroid under the assessing whether they are controllable Reference No. COT0009B influence of its immensely valued core or not Year of Pub. 2007 business of instant photography could not Teaching Note Available anticipate magnitude of challenges from • To critically evaluate Korean Air’s Struc.Assig. Available transformation efforts - in terms of Digital evolution and it also entered in the growth, productivity and cost cuts, Keywords game late. The company not only failed especially the efficacy of '10,10,10' goal to position itself in digital imaging but also Michael Dell; Kevin Rollins; Dell in a family-run business lost its drive for instant photography. Corporation; Direct Sales Model; PC • To identify various challenges to Korean Market; AMD processor; Corporate In spite of being a research-and- Air in sustaining growth and finding ways Transformation Case Study; Intel development-driven company, Polaroid to overcome them. processor; HP; Dell 2.0; Acer; Dell Connect; could not save its technology driven core Entrepreneur; Supply Chain; Laptop business of instant cameras. In October Industry Aviation 2001, the corporation after bankruptcy Reference No. COT0010 sold most of the business (including the Year of Pub. 2007 “Polaroid” name itself and non-bankrupt Teaching Note Available AOL: The Shift Towards Free foreign subsidiaries) to One Equity Partners Struc.Assig. Available Services (OEP), a partner of Bank One Corporation. Although OEP Imaging Keywords In a conference call held in August, 2006, Corporation changed its name to Polaroid America Online (AOL) announced that it Holding Company (PHC), the original Chaebols System; Civil Aviation; South would make most of its premium services Polaroid Corporation changed its name to Korea; '10,10,10' Goal; Growth, available free of cost. The company had Primary PDC Inc. In April 2005, Petters Productivity and Cost Cuts; Corporate lost 2.8 million subscribers in US in 2005, Group Worldwide (PGW) announced its Transformation Case Study; Cross- while its revenue in the same year had shareholdings; Clash of Interests in acquisition of PHC for US$426 million. 2 www.ibscdc.org

The case details the evolution and growth foreign subsidiaries) to One Equity Partners • To understand the competitors

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S of Polaroid as a corporation and a brand. (OEP), a partner of Bank One marketing strategies II – Y G E T A R T S It ends on a debate over a question of Corporation. Although OEP Imaging Polaroid's success as a brand vs its failure Corporation changed its name to Polaroid • To analyse HP’s marketing campaign in as a corporate entity. Holding Company (PHC), the original comparison to its competitors Polaroid Corporation changed its name to • To analyse HP’s focus on Integrated Pedagogical Objectives Primary PDC Inc. In April 2005, Petters Marketing. Group Worldwide (PGW) announced its • To understand the importance of acquisition of PHC for US$426 million. Industry Personal Computers peripheral vision Reference No. COT0005K The case details the evolution and growth Year of Pub. 2006 • The importance of innovation in a of Polaroid as a corporation and a brand. Teaching Note Not Available dynamic industry like imaging It ends on a debate over a question of Struc.Assig. Not Available • To discuss why Polaroid a globally Polaroid's success as a brand vs its failure successful brand failed as a corporate as a corporate entity. Keywords entity. Pedagogical Objectives HP; PC; Dell; IBM; Canon. Industry Photographical & Digital Equipments • To understand the importance of Reference No. COT0007A peripheral vision ABB India: Gaining Power Year of Pub. 2007 Teaching Note Not Available • The importance of innovation in a The top line of ABB India, a 52% subsidiary Struc.Assig. Not Available dynamic industry like imaging of ABB Global, Switzerland, was Rs. 8068 million in the year 2000. However, it was Keywords • To discuss why Polaroid a globally successful brand failed as a corporate struggling to grow both in terms of revenues Polaroid; Corporate Transformation Case entity. and profits, and at the same time its parent Study; Instant Photography; Edwin Herbert was in trouble with constant restructuring. Land; Innovation; Core Business; Business Industry Photography ABB India at that time was required to Strategy; Patents; Product Development; Reference No. COT0006A contribute more to the groups bottom-line Product Positioning; Technological Year of Pub. 2007 and hence in September 2001, Jurgen Change; Change Management; Teaching Note Available Dormann, CEO, ABB Global brought back Organisational Inertia; 'Chapter 11' Struc.Assig. Not Available Ravi Uppal from Volvo India to become Bankruptcy; Takeover and Acquisitions; the country head for ABB India. This case Leadership Styles; Financial Restructuring; Keywords details the leadership style of Ravi Uppal Digital Imaging and Competition; Kodak and the restructuring initiatives he started Polaroid; Instant Photography; Edwin at the company. This case takes an inside Herbert Land; Innovation; Core Business; look at ABB’s unprecedented Business Strategy; Patents; Product transformation under Ravi Uppal. ABB The Downfall of Polaroid: Development; Product Positioning; India was focusing on extensive use of Corporate Lessons(Part A) Technological Change; Change channel partners, is there any other way it Management; Organisational Inertia; can plan market penetration. Industrial IT In October 2001, Polaroid Corporation, 'Chapter 11' Bankruptcy; Corporate the pioneer of instant photography filed initiatives and investment into R&D will Transformation Case Study; Takeover and help ABB India in the long run. for federal bankruptcy protection under Acquisitions; Leadership Styles; Financial Chapter 11 bankruptcy protection. Though Restructuring; Digital Imaging and it was a global brand name in 2007, the Competition; Kodak Pedagogical Objectives corporate entity of this pioneer got lost in • To discuss the main reasons that led to the way. improved performance at ABB India. Founded in 1937 by Edwin Land, Polaroid HP: Reinventing Itself Was it – Change of Leadership, Market entered the imaging industry in 1948 with forces, Restructuring, or Government advent of first ever instant camera. In 2006, HP planned a million dollar global reforms Polaroid soon developed a cult status for marketing campaign. Through this • To discuss the organisation culture at instant cameras. But soon its golden years campaign the company wanted to send a ABB India got over. In late 1980s, the digital message to its consumers that they were technology revolutionized the picture also one of the prime sellers of personal • To discuss whether the shift from taking industry. Polaroid under the computers and not only high quality projects to standardised products and influence of its immensely valued core printers. HP's goal was to make the personal services needed. business of instant photography could not computer a more powerful personal tool anticipate magnitude of challenges from for the customers. This included ads on the Industry Power Energy Digital evolution and it also entered in the internet, TV, print and billboard. The Reference No. COT0004B game late. The company not only failed company felt that this campaign would Year of Pub. 2004 to position itself in digital imaging but also increase momentum of its PC sales. The Teaching Note Not Available lost its drive for instant photography. case gives an insight into HP’s history from Struc.Assign. Not Available its inception with the challenges it faced Keywords In spite of being a research-and- from its competitors. The case also focused development-driven company, Polaroid on HP's integrated marketing. leadership; Change Management; could not save its technology driven core Organisational Culture; Restructuring; business of instant cameras. In October Pedagogical Objectives Reorganisation; Power technology; 2001, the corporation after bankruptcy Automation Technology Engineering sold most of the business (including the • To understand the challenges faced by Industry; R&D; Exports; Channel “Polaroid” name itself and non-bankrupt HP Partners; Cost Cutting, Human Resource 3 www.ibscdc.org Management; Organisation Structure; Indian Banking Industry and 1949; Scheduled and Non-scheduled Banks; Transformation. Bank of Baroda: The Need for Public Sector Banks and Private Sector Organisational Transformation Banks; Rangarajan Committee; Narasimham Committee; Impact of Zee Telefilms: A Transition Founded in 1908 by Maharaja Sayajirao Nationalisation of Banks in India; Gaikwad III, Bank of Baroda has grown over Liberalisation of Indian Banking Industry; Television as a mode of communication the years to become one of the leading Priority Sector Lending; CRR, SLR and was introduced in the Indian market way players in the Indian banking industry today. CAR; Need for Rebranding; Non back in 1959 on an experimental basis. Nationalised in 1969 by the Government Performing Assets (NPAs); State Bank of Doordarshan, a government-owned of India, the Bank continued its social India (SBI) and ICICI Bank; Consolidation channel was formed in 1976 and monopoly banking initiative by establishing rural in the Indian Banking Industry. ransformation ransformation ransformation ransformation ransformation rights were granted over terrestrial branches. With its constant profit and broadcasting. In 1991, with the dividend payout record, the Bank privatisation of the broadcasting rights, the maintained its key position among the Public De Beers’ Corporate Sector Banks (PSBs). However, the Indian Cable and Satellite industry saw the Transformation: The Competitive entry of many players. One such player economic liberalisation begun in 1991- was Zee Telefilms Limited which started 1992, permitted foreign and private players Pressures its operation in 1992. The channel to start their operations in the country, and The De Beers group, which maintained a enjoyed the privilege of being the first these, with their cost-efficient technologies monopoly on the global diamond trade private player to go on air. The channel and value-added services backed by th Corporate T Corporate T

Corporate T since the early 20 century, had to change Corporate T Corporate T faced competition from other channels aggressive marketing, offered a stiff its business model by the turn of the 21st such as Sony Entertainment, Star network, competition to PSBs by luring away century. It adopted the ‘Supplier of Choice’ etc who were also building on their customers from PSBs. As a result, along with program as a response to several allegations strengths. In 2003, Zee reached around 32 other PSBs’, Bank of Baroda’s market share of unethical business practices, the issue of million homes in India and around 225 started declining giving a rude jolt to the conflict diamonds in Africa and the antitrust million people worldwide. This case Bank’s management which felt forced to suits filed against it in the US and the UK. discusses on the transition which took take steps to contain the slide-down. And De Beers consciously transformed itself place in the company in the wake of the thus started the re-branding initiative in mid- from being a controller to stimulator of declining market share and to counter the 2005 – a major initiative in the history of global diamond business. However, it faces competitors programming strategies. PSBs in the Indian banking industry. stiff competition from a number of Further, the case discusses about Subash competitors, prominent among them being Chandra, chairman of Zee Telefilms and Pedagogical Objectives Lev Leviev, who pioneered the concept of his intentions to make the channel as a vertical integration in the diamond trade • To understand the Indian financial family run business. and has robbed De Beers of many lucrative system and the evolution of the Indian deals. banking industry Pedagogical Objectives • To analyse the competitive scenario • The state of the Indian cable and Pedagogical Objectives prevailing in the Indian banking industry satellite industry and the changing before and after the liberalisation • To understand how the global diamond preferences of the customers industry used to run through a cartel in • To understand the various reform th • The strategy of Zee to increase its TRP most part of the 20 century initiatives taken by the Indian ratings in the wake of the competitors government in a bid to revitalise the • To describe the competitive landscape programming schedule banking industry and its effects of the global diamond industry in the st • The product extending activity of 21 century • To make out or oppose the case of channel in order to lure the customers consolidation in the Indian banking • To analyse the business transformation • The challenges that the channel would industry at De Beers and its impact on the face with the increase in the number of company and the global diamond trade • To understand the growth strategies players entering the cable and satellite as a whole. adopted by Bank of Baroda with the industry. changing competitive dynamics of the Industry Diamond & Other Precious Industry Cable and Satellite Indian banking industry Stone Mining Reference No. COT0003B Reference No. COT0001 • To discuss the need for an organisational Year of Pub. 2004 Year of Pub. 2006 transformation for a public sector bank Teaching Note Not Available Teaching Note Not Available like Bank of Baroda despite its good Struc.Assign. Not Available Struc.Assign. Not Available financial performance and market Keywords standing. Keywords Indian Cable and Satellite Industry; Industry Banking Horizontal vs vertical monopoly; Single Doordarshan; Zee Telefilms; Star TV; Sony Reference No. COT0002 channel marketing; Central selling TV; Subash Chandra; TRP Ratings; TAM Year of Pub. 2006 organisation; The diamond cartel; Buyer & INTAM Star TV; Sony TV; Subash Teaching Note Available of last resort; ‘A Diamond is Forever’; De Chandra; TRP Ratings; TAM & INTAM Struc.Assign. Available Beers and Alrosa; Lev Leviev; Synthetic Operator; Essel World; News Corporation; diamonds; US antitrust; Supplier of choice; Transition. Keywords The ‘Forevermark’; Conflict diamonds; Making money the De Beers way. Indian Financial System; Reserve Bank of India Act, 1934; Banking Regulation Act,

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right from its inception. It has presence in involved in diverting the focus from the

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S many parts of the world and its apparels core parent brand. II – Y G E T A R T S and accessories were much sought after by Nokia Diversifying into Services: the global customers. At a point of time, Pedagogical Objectives when the competition in fashion industry Rediscovering its Business was limited, UCB was the manifestation of • To discuss strategies adopted by Portfolio not only Italian fashion houses but the Starbucks to replicate its coffee success In 2007, Nokia, the world's largest mobile entire Europe’s. However, with many • To analyse the risks involved in diverting phone manufacturer held 36% of the global players entering the arena and competition the focus from the core parent brand. market share. Driven by trends of intensifying, the family-owned UCB was technology convergence and rapid growth losing steam. The company which was Industry Music Industry across market for internet services, Nokia ranked within the top 200 family-owned Reference No. DIS0024B decided to re-define its business portfolio business in the world was struggling. Its Year of Pub. 2007 to create a new business group around attempts to diversify its brand were not Teaching Note Available Internet services and software. While this paying off. The revenues started to Struc.Assig. Available plummet and the family-owned company transformation helped Nokia in exploring Keywords new growth avenues in the global mobile decided to open its share to outsiders. The telecommunication market, analysts company also started diversifying into Coffee; Diversificatio; core brand; remained skeptical regarding the success unrelated sunrise ventures like McDonalds; Apple; Digital piracy; Growth of Nokia’s transformation from a infrastructure and aviation. Whether this Strategy; Brand Equity; Diversification manufacturer of wireless hardware into a attempt to revive the family’s fortune would Strategies Case Study; Sczultz; Hear Music; provider of Internet services. Further the pay-off, is yet to be seen. XM Satellite Radio; Paul McCartney; fact that such a move would make Nokia Unification of two Brand confront big players like Google and Yahoo Pedagogical Objectives in the internet industry posed serious • Trends in the European fashion industry concerns. Whether Nokia would succeed Philips: Divesting the Semi- in transforming its business portfolio • UCB's growth in its apparel business conductor Business without loosing its focus on its core mobile phone business was yet to be seen. • Need for diversification In order to reduce the volatility associated • Analysing UCB's diversification with the cyclical business-pattern of the Pedagogical Objectives strategies semiconductor industry, Royal Philips Electronics N.V. (Philips) decided to divest • To understand the concept of • Can UCB sustain a diversified profile? its semiconductor unit and focus more on 'technological convergence' in the the emerging profitable businesses of the mobile communication industry Industry Apparel Industry Reference No. DIS0025 health-care segment. Philips also decided • To analyse the evolution of Nokia's Year of Pub. 2008 to drop the word 'electronics' from its business portfolio Teaching Note Available company name to emphasise the change. Struc.Assig. Available • To understand the competitive dynamics The case discusses the corporate of global mobile communications Keywords repositioning of Philips from an industry electronics-goods manufacturer to a UCB; United Colors of Benetton; healthcare and wellness driven company. • To analyse the shifts in Nokia's growth Acquisition; Diversification Strategies Case strategy and its implications. Study; Family Business; Benetton group; Pedagogical Objectives Fashion Apparel; European Fashion house; Industry Wireless Telecommunication Luciano; Perfumes; Mergers; Unrelated • To discuss about Philips semiconductor Equipments Diversification business Reference No. DIS0026A Year of Pub. 2008 • To understand the global healthcare Teaching Note Available industry Struc.Assig. Available Starbucks Diversion from Coffee: • To debate on Philips decision to divest Will it Work? Keywords the semiconductor business In 1999, Starbucks’, the most famous Nokia; Mobile Telecommunication • To argue on Philips repositioning specialty coffee shop chain in the world, Market; Diversification Strategies Case strategy. acquired Hear Music to push itself Study; Mobile Handset Industry; Industry aggressively in the music retail market and Industry Semiconductors Convergence; Technology Convergence; achieved immense success. It became a Reference No. DIS0023K Business Portfolio; Diversification; Core recognised music retail outlet due to the Year of Pub. 2007 Competencies; Change Management; success of albums by Ray Charles, Bob Dylan Teaching Note Not Available Organic Growth; Inorganic Growth; and others that had been sold in its stores. Struc.Assig. Not Available Internet Services; Growth Strategy; Motorola; Samsung Meanwhile, Starbucks coffee chain posed Keywords a threat with the increased competition in coffee business. The company decided to Philips; Semiconductor; Divestment; Sense expand into diverse business by leveraging and Simplicity; Health care and lifestyle; UCB: Expanding through Diversification Strategies Case Study; Unrelated Diversification on its parent coffee brand. Analysts had a skeptical view that it may be risky for Gerard Kleisterlee; Volatility; Ageing population; Care cycle; Telemonitoring; United Colors of Benetton (UCB), the Starbucks to be shifting its focus away from Ambient experience solution; Rural-urban reputed international fashion house from its coffee brand. It discusses strategies migration; Interbrand; Consumer wellness Italy, is losing its shine. UCB, founded in adopted by Starbucks to replicate its coffee the year 1965, has had a bullish trajectory success. This case highlighted the risks 5 www.ibscdc.org NYTimes: Diversifying Online Pedagogical Objectives Page Rank Technology; Google Search; Revenue Partnerships; Advertising Revenue Model; • To understand the diversification Competition In its effort to diversify the revenue source strategies followed by Amul of the company and neutralise the effect • To understand the efforts of other milk of rising newsprint costs, New York Times societies to emulate Amul. Company (NYTimes) acquired Baseline LG Chem: The Changing Studio Systems (Baseline), a leading online Industry Dairy Products Strategies of the Chemical database and research firm for the film and Reference No. DIS0021 Company television industries. The acquisition was Year of Pub. 2007 Inspite of profits of $883 million from also aimed to enhance the content offerings Teaching Note Not Available the petrochemical business in 2004, LG of NYTimes and continue the rich legacy Struc.Assig. Not Available Chem, the largest chemical company in of bringing the latest in the news across Keywords South Korea, was apprehensive about the diverse sectors. future profitability of the unit, and decided Amul; Diversification strategy; Branding; The case, while providing an overview of to increase its focus on the digital GCMMF; Milk; Co-operative society; the two companies, discusses the strategic manufacturing unit to generate more Yogurts; Ice-creams; Chocolates/ shift of the traditional print media to the revenues for the company. LG Chem Confectionery; Diversification Strategies online media. planned to increase the revenues of the Case Study; Pizza; Baby foods; Curd; Dairy digital division from $1.2 billion in 2004 whiteners; Condensed milk; Cheese; Diversification Strategies Diversification Strategies Diversification Strategies Diversification Strategies Diversification Strategies Pedagogical Objectives to $4.9 billion in 2008, and expected the Retailing and milk additives division to account for 35% of the total • To analyse the rationale of a merger revenues in 2008, up from 15% in early between a media company and an online 2005. research firm Google's Diversification – Is it the The case highlights the paradigmatic shift • To discuss the possible synergies out of Right Move? in the business strategy of LG Chem in its the merger Google, the largest and fastest search effort to become a leading IT component provider in the world. • To understand the shift of print media engine in the world, had grown to online media exponentially and was the market leader in the search engine business. It had become Pedagogical Objective • To debate whether the deal would be the first company ever to have a 25% share • To understand the dynamics of ‘vertical mutually beneficial for both the parties. in all US online ad spending. One of its integration’ major growth routes was through Industry Newspaper Publishing acquisitions. Google had acquired 26 Reference No. DIS0022K • To understand the business companies from 2001 till 2006, most of Year of Pub. 2007 transformation of LG Chem from the which were small startups with innovative Teaching Note Not Available petrochemical business to electronic products or technologies. Although most Struc.Assig. Not Available goods manufacturing of these businesses were not in line with its Keywords core area of search, Google had successfully • To discuss the viability of LG Chem’s integrated its acquisitions. This also resulted business model and its sustainability in New York Times Company (NYTimes); in Google entering new and unrelated areas. the long-run Baseline Studio Systems; Database and Analysts were skeptical about Google's research firm; Diversification of revenue; • To understand strategic concentration move and cautioned against diversifying and divestment of resources to maximise On-line media; Entertainment industry; into newer domains. Advertising revenue; Janet L Robinson; revenue. Digital space; Hollywood Media The case tracks the various diversifications Industry Chemical and Petrochemical Corporation; Diversification Strategies and partnerships of Google and highlights Manufacturing Case Study; Subscription; Newsprint costs how these have helped Google grow. The Reference No. DIS0019K case facilitates discussion on whether Year of Pub. 2006 Google was making the right move by Teaching Note Not Available Amul: Diversifying for Growth moving away from its search business and Struc.Assign. Not Available entering new areas. Amul is India’s largest co-operative society Keywords with revenues of US $672 million for 2004- Pedagogical Objectives LG Chem; LG Group; Petro Chemical 05. Amul is also India’s largest food • To discuss the Search Engine business Industry; Digital Equipment; Chip products organisation and the market manufacturing. leader in whole milk, condensed milk, milk • Growth by Acquisition powder, butter, cheese, ice cream, dairy whitener and sweets. The case study ‘Amul- • Sustaining the Market Leadership Diversifying for growth’, looks at how the Position. Microsoft: Software to Media co-operative integrated approach adopted Industry Internet Technology Microsoft, the global leader in software, by Amul has been successfully used to Reference No. DIS0020C services and solutions was under threat from dominate the dairy products market and Year of Pub. 2007 the web based organisations. Though how it is utilising its strong brand name to Teaching Note Available Microsoft was an increasingly profitable diversify into non-dairy products, Struc.Assig. Not Available organisation but this internet based processed foods and other products. The companies increased their customer base case study also gives a brief note on the Keywords through advertisement services. So evolution of Amul, the market scenario of Microsoft planned to become more web milk and major milk societies/firms in India. Google; Diversification; Acquisition; Internet Search Diversification Strategies based and remake the company by going Case Study; Engine; AdWords; AdSense; online. The case gives an insight into 6 www.ibscdc.org

Microsoft’s history from its inception with Edition; Gateway shield; Ultra portable the slack period following the 9/11 attacks

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S the challenges it faced from the online notebook; Advanced logic research; and subsequent slump in the travel sector, II – Y G E T A R T S organisations and also from the open Beyond the box strategy. the company realised that it was not source software companies. Moreover it immune to such turbulence. Lonely Planet deals with the initiatives taken by the decided to strengthen its focus on non- software genius Ray Ozzie who was hired Campbell Soup Company in travel content through its business solutions by Microsoft to make the major makeover. division. The company had the advantage 2006 to draw content from its expertise as a Pedagogical Objectives The case study narrates the efforts of the travel publisher. It helped Lonely Planet Campbell Soup Company in the US to to deliver customised solutions to various • To understand the software industry transform its business in 2006. The companies such as Sony, Nokia, Virgin • To understand the internet based Campbell Soup Company in the US, after Atlantic and many others. But the point companies several years of decline witnessed growth of debate is whether Lonely Planet was in one of its major product lines, condensed right in moving in this direction. Has the • To analyse the difference between open soups, in 2005. It was believed that this company lost focus? Or, as always, is this source and proprietary software significant growth was the result of the Lonely Planet’s unusual way of strengthening its brand? • To discuss the competitive dynamics of company’s relentless efforts since 2002. web based companies Campbell took several measures such as strengthening the soup market in the US, Pedagogical Objective • To discuss how Microsoft planned to shift introducing new and easy packaging for its • To understand how Lonely Planet from its core business to increase its entire soup line, focusing on advertising revenues. and promotions and also enhancing the witnessed growth. merchandise display at the retail stores. Industry Publishing/Travel Industry Software Having achieved success with these Reference No. DIS0015B Reference No. DIS0018K measures in 2006, the company initiated Year of Pub. 2006 Year of Pub. 2006 to transform major product lines across Teaching Note Available Teaching Note Not Available the world. Struc.Assign. Not Available Struc.Assign. Not Available Keywords Keywords Pedagogical Objective Microsoft, Google; Software; Advertising. • To highlight the efforts of Campbell Lonely Planet; Travel; Guidebook; Soup Company to transform its business. Business; solutions; budget; Tony Wheeler; Shoestring; Hippe Trail; Sony; Six Degrees; Industry Consumer packaged goods LP; Nokia; Independent Traveler; Thorn Gateway Computers Managing Reference No. DIS0016B Tree; Virgin; Atlantic. the Transaction Year of Pub. 2006 Teaching Note Not Available Gateway is the third largest computer Struc.Assign. Not Available technology company in the US. It GHCL: Global Aspirations pioneered the ‘built to order’ production Keywords GHCL, a Sanjay Dalmia group company system and direct sales model to sell was India’s third largest soda ash computers at low costs. However, since Campbell; Campbell’s soup; CPG industry; manufacturer and also had its presence late 2000, Gateway suffered losses and lost condensed soup; transformation; V8 home textiles product and Information its place in the Fortune 500 listing. This chunky soup; Godiva; disinvestment; Technology Enabled Services (ITES) case study discusses the causes resulting in diversification; restructuring; pepperidge sector. With the abolition of quota regime the decline of Gateway Computers and the farm; trading up; new markets; pack design. in textile industry, GHCL decided to strategies it has adopted to make a strengthen its position further in the home comeback. textiles industry. In December 2005, it Lonely Planet – On the Road Less acquired Dan River, the third-largest home Pedagogical Objectives Traveled textiles player in the US for $93 million. • To discuss the dynamics of the US This case study is about Lonely Planet, GHCL with the help of its low-cost consumer electronics industry considered to be the world’s most successful manufacturing facility in India planned to independent travel information company. leverage the strong distribution channel of • To discuss the factors leading to the The case, though narrative, makes a subtle Dan River which spread across China, decline of Gateway computers reference to the issue. Pakistan. • To discuss Gateway computers strategies Since publishing its first travel guide in Moreover, GHCL was confident in to make a comeback. 1973, Lonely Planet has grown to become emerging as a global player in home textiles industry with the future acquisitions planned Industry Information Technologies the largest independent travel-guidebook in England, German, France and Italy. The Reference No. DIS0017P publisher in the world with over 600 titles. analysts were sceptical about the global Year of Pub. 2006 The company has a reputation for aspirations of GHCL as it possessed a low Teaching Note Not Available providing comprehensive and up-to-the- presence in textile sector. The case Struc.Assign. Not Available second travel information. The company is at the forefront of print and electronic discusses GHCL’s global foray into home Keywords publishing of travel content. textiles industry and the challenges ahead of it. Gateway Computers, Brand integration; Over the years, the company has broadened Direct sales model; Built to order its market not only by covering places that Pedagogical Objectives production system; Gateway country were less traveled but, by also publishing stores; Circuit ity; Best Buy; eMachines; titles for different kinds of readers. Though • To discuss the market entry strategies Office depot; Comp USA; Platinum the company managed to survive through • To analyse the diversification strategy 7 www.ibscdc.org • To discuss the prospects of inorganic The Virgin Group in 2005 account of the challenges faced by ITC in diversification strategy its core business of cigarettes and its In 2005, the Virgin Group operated over diversification into non-tobacco business • To analyse the prospects of acquisition 200 disparate businesses and the brand is also traced. The case presents an and its chances of success. virgin was one of the most known brands overview of the Indian tobacco industry, in the world. Its founder Sir Richard Industry Textiles and Soda Ash various players in the industry and the Branson, a brand by himself was famous in Reference No. DIS0014A challenges confronting them. The case media and business circles for his Year of Pub. 2006 study provides a useful setting for teaching entrepreneurship, leadership style and Teaching Note Not Available diversification strategy of conglomerates publicity stunts. The group started by mail Struc.Assign. Not Available being employed by a large firm (ITC) in a order records business, gradually diversified fast developing economy (India). The Keywords into disparate businesses like music, focus of the case study is on the challenge retailing, airlines, beverages etc. Virgin GHCL; Sanjay Dalmia; Dalmia Group; Dan of transformation of ITC from a companies were renowned for its concentric firm (tobacco and cigarette River; Home Textiles; Soda Ash; Market innovative service standards, employee and share; Market potential; Market major) to a highly diversified corporate customer-centric approach. Branson’s enterprise. Diversification; Acquisition; Restructuring; personal management style encouraged Quota regime; Global player; Roseby; S C risk-taking, delegation and participation. Pedagogical Objectives Bega Upsom. His disrespect for hierarchy led to a cordial and fun work environment. • To identify the motivations for ITC to Diversification Strategies Diversification Strategies Diversification Strategies Diversification Strategies Diversification Strategies diversify Hallmark Card Inc. in 2006 The case describes the origin, growth and evolution of the Virgin Group and the • To analyse the mode of diversification Hallmark Inc. founded by J C Hall gradually indispensable part played by its leader employed by ITC to increase its grew to become the market leader (with throughout. The guiding principles of the shareholders value and discuss its market share of 50%) in social expression Virgin Group and its insistence on appropriateness innovative services for the customers and industry. Hallmark attained the leadership • To debate on the challenges that ITC welfare of the employees on a continuous in greeting card segment with a requisite would face in the new businesses that it basis has been highlighted. While the group knowledge base of employee and has diversified into: To chart the future has been successful in majority of its undertaking constant changes in brand of ITC. management, distribution facilities, product ventures, it also faced failures in quite a differentiations and technological up- few. The case in the end raises the question Industry Tobacco gradations. In the mean time, Hallmark that whether the unrelated diversification Reference No. DIS0011 ventured into entertainment business and of the Virgin Group has led to the dilution Year of Pub. 2006 started an entertainment channel, which of the virgin brand. Teaching Note Not Available also gained significant success. But due to Struc.Assign. Not Available the lack of appropriate back-up of full Pedagogical Objectives Keywords fledged media partner, Hallmark felt it was difficult to manage its financial position • To analyse the diversification strategies ITC (Indian Tobacco Company); Global and decided to exit from the entertainment and innovations undertaken by the tobacco companies; Cigarette companies business. In 2006, Hallmark decided to Virgin Group in India; Tobacco companies in South-East launch lifestyle magazines targeting the • To discuss the personal management Asia; Anti-tobacco regulations in India; women segment. style of Sir Richard Branson BAT (British American Tobacco); Diversification strategies; Shareholder The case discusses how Hallmark, at regular • To debate whether extensive unrelated value; Indian tobacco industry; Indian fast intervals of time pursued unrelated diversification by a company could lead moving consumer goods (FMCG) sector; diversification. At the end it attempts to to dilution of its brand. Indian hospitality industry; Indian ready- initiate the debate that whether Hallmark to-eat market; Indian confectionery would be successful in the magazine business. Industry Music, Retailing, Airlines, market; Indian branded atta market; Indian Beverages, etc. apparel industry. Pedagogical Objectives Reference No. DIS0012A Year of Pub. 2006 • To study the various diversification Teaching Note Not Available strategies undertaken by Hallmark Struc.Assign. Not Available Merck KGaA’s ‘Focused Diversification Strategy’: The • To discuss the entry strategies for Keywords Hallmark Prospects and Perils Richard Branson; Virgin; branding; • To analyse the prospects of Hallmark leadership; entrepreneurship; innovation; Traditionally, the global pharmaceutical in the magazine business. Virgin Atlantic; management style; industry has leveraged on its blockbuster franchising; work environment; model to become one of the most Industry Social Expression Industry diversification; brand stretching; brand profitable industries in the world. However, Reference No. DIS0013A dilution; publicity; marketing; space since the 1990s, the industry has been Year of Pub. 2006 tourism; focus; brand image; brand witnessing a rapid growth in the generic Teaching Note Not Available personality. drug business worldwide and to add to its Struc.Assign. Not Available woes even with increasing investments in R&D, drug innovations have declined. It is Keywords opined that the industry is heading towards Hallmark; Greeting cards; social expression ITC: Adding Shareholder Value a consolidation and this prompted Merck industry; lifestyle magazines; Hallmark through Diversifications KGaA, a German pharmaceutical group, entertainment channel; diversification; to bid for another German company, The case “ITC: Adding Shareholder Value brand management; market leader. Schering AG. However, Schering refused the through Diversifications” offers a detailed 8 www.ibscdc.org

bid on the grounds that Merck had Industry Tobacco Products paper forced the company to diversify into

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S underestimated its value. Reference No. DIS0009 various businesses. Over the years Kores II – Y G E T A R T S Year of Pub. 2005 diversified its operations to include Pedagogical Objectives Teaching Note Not Available businesses like: (1) computer systems; (2) Struc.Assign. Not Available business machines; (3) auto component • To understand the reasons and foundry; (4) labeling systems; (5) art consequences of the changing business Keywords materials; and (6) writing instruments. model of the global pharmaceutical ITC Ltd (ITC); Tobacco products industry; Kores was confident that its diversification industry Market leader and market share; Fast strategy would be beneficial to the company • To discuss the probable synergies that moving consumer goods (FMCG); in the future. However, analysts were of Merck might accrue by acquiring Diversification strategy; Segmentation the opinion that Kores would face tough Schering. strategy; Customisation of products; Brand competition in the businesses it has image enhancement; Hospitality industry; diversified into. Industry Pharmaceuticals Manufacturers Product mix and positioning of products; Reference No. DIS0010 ITC’s e-Choupal initiative; Branded foods Pedagogical Objectives Year of Pub. 2006 and apparel; Supply chain management; Teaching Note Not Available Vertical integration; Information • To provide an insight into the evolution Struc.Assign. Not Available technology and ITC Infotech. of Kores and the diversification strategy adopted by the company Keywords • To discuss whether the diversification Blockbuster model of global pharmaceutical Novo Nordisk: The Danish strategy based on leveraging Kores’ brand industry; Growth of generic drugs; name would be a successful one. Consolidation in the global pharmaceutical Pharmaceutical Company’s industry; Decline in drug innovations; Diversification Strategies Industry Scientific & Technical Instruments Increasing costs of drug innovations; Novo Nordisk from Denmark is the world’s Reference No. DIS0007 Traditional drug manufacturers going leading insulin maker with a global market Year of Pub. 2005 generic; Constraints of new drug research; share of 50%. Along with diabetes care it Teaching Note Not Available Patent expires of blockbuster drugs; Rise also operates in biopharmaceutical Struc.Assign. Not Available of generic drug manufacturers. segments like haemostasis management and growth hormone therapy. However, Keywords with increasing competition from Eli Lilly, ITC: The Indian Tobacco Major’s Pfizer and Sanofi-Aventis in its core Kores India Ltd; Diversification strategy; business of anti-diabetes drugs, Novo Core competency; Product line extension; Diversification Strategies for Product portfolio management; Brand Market Leadership Nordisk has diversified into other areas like oncology and analgesics. leverage; Office equipment suppliers; ITC has transformed itself from a leading Convergence of distribution channel; Banking and office automation industry; cigarette manufacturer to an umbrella Pedagogical Objectives group that offers a diversified product mix Information technology (IT) peripherals to enhance its brand image and reduce • To highlight the diversification sector. dependency on tobacco related products. strategies of Novo Nordisk It has forayed into the hospitality service • To discuss Novo Nordisk’s ability to industry and has become a major player in successfully enter new therapeutic areas, Yamaha Motor Corporation’s the hotels segment. Its position in the where it lacks core competency. Diversification Strategies FMCG (fast moving consumer goods) business is also on a growth curve; Industry Pharmaceutical Manufacturers From the 1960s, Yamaha Motor especially its confectionery and biscuits Reference No. DIS0008 Corporation started diversifying into other which are slated to achieve the top ranks Year of Pub. 2005 businesses to reduce the company’s among its peers. It has made heavy Teaching Note Not Available dependence on its motorcycle business. The investments to strengthen its IT Struc.Assign. Not Available company’s management was confident that (information technology) segment and to the diversification strategies being followed compete with the big players like Infosys Keywords would be beneficial to the company in the and Wipro. Although the ITC group is Competition in global anti-diabetic market; long run. Several analysts were also of the marketing its image as an ideal corporate Eli Lilly; Pfizer; GlaxoSmithKline; opinion that the company was correct in citizen and a company that takes its social Research and development expenditure by diversifying into other businesses. But responsibility seriously, it still earns 80% pharmaceutical companies; Sanofi- others were sceptical about Yamaha’s of revenues from selling cigarettes and Aventis; Haemostasis management; diversification strategies and opined that other tobacco related products. Growth hormone therapy; Anti-diabetes the company should have stuck to its core care; Biopharmaceuticals; Non-steroidal business of manufacturing motorcycles. Pedagogical Objectives anti-inflammatory drugs; Diversification of global pharmaceutical companies. Pedagogical Objectives • To highlight ITC’s need to diversify its portfolio of product mix • To understand the evolution of Yamaha over the years and analyse the rationale • To highlight the strategies adopted by Kores: Reinventing itself through behind the company’s diversification ITC to maintain its position as one of Diversification into businesses other than motorcycles India’s leading companies As the market leader in the Indian carbon • To discuss whether Yamaha was right in • To discuss the future possibilities of paper market, Kores India Ltd. had donned diversifying into other businesses. strategic planning by ITC. the image of ‘the carbon paper company’. Industry Automobile and Transport However, decline in the demand for carbon Reference No. DIS0006 9 www.ibscdc.org Year of Pub. 2005 giants like Wal-Mart. The company Lagardere: Unrelated Teaching Note Not Available witnessed a 45% increase in its sales and a Diversification to Related Struc.Assign. Not Available fourfold increase in its net profits between Diversification 1996 and 2004. By 2004, with net revenue Keywords of $29 billion, PepsiCo was the world’s There have been many instances in history Yamaha Motor Corporation; third largest food and beverage company. when an industry or a particular company Diversification strategies; Asian financial experienced a 10x change. Lagardere, a crisis; Motorcycle industry; Outboard Pedagogical Objectives French media and technology company industry; Automobile engines; Power under the leadership of Arnaud Lagardere products; Aeronautical operations; • To highlight the PepsiCo’s witnessed a similar shift in strategy; from Intelligent machinery technology; diversification strategies unrelated diversification to related Biotechnology; Semi-conductor cycle. • To discuss the challenges faced by diversification, as opposed to the PepsiCo’s in diversifying its portfolio. traditional practices.

Industry Carbonated Beverages Pedagogical Objectives Young An Hat Co: The World’s Reference No. DIS0004 Largest Hat Maker’s Growth Year of Pub. 2005 • To discuss the diversification strategy Strategies Teaching Note Not Available adopted by the Lagardere group Struc.Assign. Not Available South Korea based Young An Hat Co (Young • To discuss the shift in focus of the Diversification Strategies Diversification Strategies Diversification Strategies Diversification Strategies Diversification Strategies An) is the world’s largest hat maker owning Keywords company’s traditional business practices. 40% of the global headwear market. Over the decades, it has diversified into other Global carbonated beverages industry; Industry Media and Entertainment businesses like hotels, a supermarket chain, PepsiCo’s diversification in food business; Reference No. DIS0002 farm equipment, forklift and bus- Coca-Cola; Global obesity concerns; Year of Pub. 2004 manufacturing businesses. Though its PepsiCo’s competitive advantage; Pepsi Teaching Note Not Available unrelated diversified businesses witnessed challenge; Frito Lay; Largest food brands Struc.Assign. Not Available growth, analysts are sceptical about the in the US; New products to be launched by Keywords company’s future growth. PepsiCo; PepsiCo’s products and brands. Lagardere Group; Lagardere SCA; Pedagogical Objectives Competitive growth strategy; European Saint Gobain’s Diversification Competition Commission; Arnaud • To understand the growth strategies of Strategies Lagardere; Jean-Luc Lagardere; Matra; Young An over the decades Formula 1; Restructuring strategy; Grolier; Saint Gobain, the largest glassmaker in • To discuss the viability of unrelated Editis; Accenture; Mergers and acquisitions; France, had been growing through diversification of Young An, and its European Aeronautic Defence and Space divestment of its traditional businesses and future. Company (EADS); Diversification; Societe diversification into new businesses like Industrielle de Mecanique at Carrossereie Industry Headwear and Accessories high-tech ceramics and catalysts. By 2004, Automobile; Hachette Distribution Reference No. DIS0005 under the chairmanship of Jean-Louis Services; Publishing; Hachette Livre; Media Year of Pub. 2005 Beffa, Saint Gobain acquired 900 and entertainment industry. Teaching Note Not Available companies and tripled its sales. With Struc.Assign. Not Available operations in 46 countries and a workforce of 182,000 employees, Saint Gobain has Keywords become a market leader in insulation, Dell’s Diversification Strategies Young An Hat Company; Global headwear reinforcement, major industrial ceramics Dell set itself an ambitious financial target market; Diversification and growth and abrasives. of achieving $60 billion in revenues by strategies; Largest hat maker business 2006. With the growth rate for its core model; Restructuring plan and breakeven; Pedagogical Objectives PC business slowing down, the company Turnaround specialist entrepreneur; began to branch into segments like • To discuss the emergence of Saint Gobain Unrelated diversification; Bus and heavy handhelds and printers. But when the as market leader vehicle manufacturing; Material handling company entered the consumer electronics equipment; Daewoo loss making bus unit; • To discuss the diversification strategies market with offerings like flat panel TVs, Clark Material Handling Company; Baik of Saint Gobain. MP3 players etc., questions were raised Sung Hak; Internal competition bidding; about the applicability of its Direct Model Hyundai Heavy Industries; South Korea Industry Glass and Clay Product to its new businesses. Korean war. Manufacturing Reference No. DIS0003 Pedagogical Objectives Year of Pub. 2005 Teaching Note Not Available • To discuss how Dell was able to dominate PepsiCo’s Diversifications: The Struc.Assign. Not Available the PC market by leveraging on its Payoffs Direct Model Keywords Since the mid 1960s, PepsiCo, the world’s • To discuss the company’s diversification Saint Gobain; Diversification; Growth number two soft drink maker, had gradually into other businesses like handhelds, strategy; Mergers and acquisitions; transformed itself from a carbonated soft printers and consumer electronics, and Corporate restructuring; Jean-Louis Beffa; drink maker to a diversified food and drink the challenges it is facing. maker. PepsiCo’s diversified portfolio, Glass industry; Building materials and while helping it to tide over a slowdown in distribution; Industrial manufacturing; Industry Computer Hardware the global beverage industry in the late Expansion; Consolidation; Certain Teed Reference No. DIS0001 1990s, also provided it with an unparalleled Corporation; Dahl International. Year of Pub. 2003 bargaining power to deal with supermarket 10 www.ibscdc.org

Teaching Note Not Available Industry Entertainment Keywords

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S Struc.Assign. Not Available Reference No. GGL0001 II – Y G E T A R T S Food Chains; McDonald's; Pizza Hut; Year of Pub. 2009 Keywords Teaching Note Available Subway; KFC; Business Model; Culture; Struc.Assig. Available Liberalisation; Supply Chain; Growth Dell Inc.; Direct Model; Diversification; Strategies Case Studies; Marketing; Handhelds; Printers; Consumer electronics; Keywords Distribution; Franchisee; Market Entry Consumer electronics products; Dell in Strategies handhelds market; Dell in printers market; Bollywood, Hollywood, Synergies, Value Dell in consumer electronics market; Dell’s Chain of film industry, Studio-driven, new consumer electronics products in US; Financing, Strategic Inflection Point, Star- Competition in consumer electronics driven, Collaboration IBM's 'On-Demand' Strategy : market; Dell and Hewlett-Packard; Dell The Strategic Rationale and Sony; Dell and Apple. IBM is the world’s largest provider of information technology and consulting services. The company combined, operates both business and IT services, which The Global and Local Strategies comprises of the following three categories of the International Food Chains – business value, infrastructure value and component value. Since 1992, IBM had Hollywood in Bombay – in India Bollywood in Beverly Hills: Indian struggled through some difficult years as it With the rising disposable income, living had failed to sustain the pace of innovation Film Industry's New Global Value in personal computers. By 1993, IBM was Chain standards and western influence, more and more Indian consumers are shifting towards on the verge of bankruptcy due to huge This case study's primary objective is to lifestyle products and one among them is debt burden. The appointment of Louis enable a discussion on pros and cons of the 'fast food restaurants'. Growing at a rate of Gerstner in the same year saw IBM's alliances between Hollywood and 25%–30%, the INR 11 billion Indian turnaround into one of the leading 'IT- Bollywood and provides insights about the organised food and retail sector attracted services' provider in the world – second possible synergies between the two. various global food chains. Besides, only to Microsoft. It emerged with a liberalisation made their entry more renewed focus on customer value. After Amidst stagnation in movie business in attractive and easier. As a result, many Louis Gerstner's handing over of the mature markets, Hollywood sets an eye on major food chains like McDonald's, Pizza mantle to Samuel J. Palmisano the emerging markets. Seeking ample Hut, Subway and KFC forayed into the (Palmisano) in 2002, IBM continued to opportunities to grow, it forayed into India country through franchisee route. successfully serve from its service by aligning with Indian production houses However, their global business model faced platform. For the same, in 2007, IBM such as UTV Motion Pictures and Yash a major challenge as the country implemented it's 'On-Demand Strategy' Raj Films by means of 'Co-production'. But traditionally has had a rich and diverse fast successfully and used it as a strategic the differences in operating modes of both food culture as well as eating habits. This rationale in their business services and IT Hollywood and Bollywood, besides forced them to adapt to the local industries. Palmisano's new business agenda understanding the likes and dislikes of the environment and tailor their menu for IBM was shifting to the service audience, posed challenges for Hollywood. offerings to make a mark in the industry, platform and a strategic alignment of its Challenging the convention, the movie dominated by local food chains specialising products and services. Analysts inquire if Slumdog Millionaire set an example of the in Indian snacks. However, it remains to he would steer IBM's succeess amidst tough fusion of Western and Eastern ways of see whether these global food giants will be competition. movie making, winning accolades across able to make a mark in the country. the globe. The emerging synergies between Pedagogical Objectives the two premier film industries of the world Pedagogical Objectives however would be successful only if they • To study the growth strategies of a adapt to the overall culture of the two • To discuss and analyse the Indian fast technology firm distinct industries. food retailing industry • To understand the applications of On- With the two very different business and • To understand the business model of Demand strategy in the IT business operating models, yet, the question remains global food chains – McDonald's, Pizza • To discuss Louis Gerstner's turnaround – can both of them leverage on one Hut, Subway and KFC initiatives for IBM another's strengths? • To discuss and contrast the strategies • To evaluate whether IBM's strategic shift used by these food chains globally and in Pedagogical Objectives from software to service platform would India help retain IBM's leadership amidst • To study the strategic inflection points • To understand the need to adapt to the competition from Microsoft, Hewlett- of Indian film industry and examine its local business environment to succeed Packard, Dell and other IT-related transformation in a culturally sensitive country like India companies • To examine the operating and business • To debate on the success of these global • To evaluate if Palmisano's strategies of model of Indian film industry and retailers in India. combining both product and services analyse the feasibility of replicating would increase the customer potential some of the key strengths when it goes Industry Fast Food Retailing in the long run. global Reference No. GRS0274 Year of Pub. 2008 Industry IT Industry • To examine reasons why Hollywood Teaching Note Available Reference No. GRS0273C finds this industry lucrative Struc.Assig. Available Year of Pub. 2008 • To examine the synergies for both the Teaching Note Available Indian and foreign players in this industry. Struc.Assig. Available 11 www.ibscdc.org Keywords as it is operating on loss since the last few • To evaluate changing consumer tastes years. But on the other hand, analysts were and preferences and its effects on the Boston Beer Company; Sam Adams; C Jim skeptical about it and felt strange about alcohol beverage industry. Koch; Craft beer; Craft beer segment in the move on Lufthansa's part. But few of the US; Imported beer; Beers in the US; them opined that Lufthansa might be Industry Alcoholic Beverage Industry Repositioning; Growth Strategies Case thinking about the future growth keeping Reference No. GRS0270A Study; Light beer; Strong beer; Promotion in view the 'Open Skies' Agreement that Year of Pub. 2008 strategies; Advertisements; Competitors; would be enacted from 30th March 2008. Teaching Note Available Heineken; Corona Struc.Assig. Available Pedagogical Objectives Keywords Rediff, Indian Communication • The US Airline Industry, its dynamics, Growth Strategy; European alcohol Giant’s Strategies : Beat Rivals at operations, regulations and the beverage industry; Vodka; Vodka in France; competition in the industry Entry level strategies; Changing Consumer Home? taste and preferences; Binge Drinker; Growth Strategies Growth Strategies Growth Strategies Growth Strategies Growth Strategies • Lufthansa's expansion strategy in the Internet is a powerful democratising force; Premium spirits; At-home beer US Airline Industry offering great economic, political and social consumption; Russian Standard Original; participation to communities and helping • Analyse whether the purchase of stake Scotch whisky market; Russian Standard developing nations meet pressing needs. from JetBlue will help in Lufthansa's in France; Growth Strategies Case Study; India is also in a phase of internet growth in the US. Obesity concerns; Changing lifestyles; At- revolution. Rediff, the first independent home beer consumption Indian portal not only provided a platform Industry Airline Industry for Indians worldwide to connect with one Reference No. GRS0271B another online but also provided weekly Year of Pub. 2008 Teaching Note Available Kingfisher Airlines International newspapers like India Abroad for the Indian Route Expansion Plans : Will it American community. In 2000-2001, Struc.Assig. Available Succeed? when most of the dotcoms were going bust, Keywords Rediff continued to click. However, since With its takeover of Air Deccan, Kingfisher 2006, Rediff was losing its share to Lufthansa; JetBlue; Growth Strategies Case has pre-planned its strategy for overseas competitors' www.yahoo.co.in (Yahoo) Study; US Airline Industry; Open Skies; operations, anticipating Deccan's eligibility and www.google.co.in (Google) in terms of Regulations; Deregulation; Expansion; to fly on international routes by August usage preference and top of the mind recall. Stake; J F K International Airport; Low 2008. But as per Indian government In order to maintain a leadership position Fares; Low-cost carrier; Tie-up; European regulations for international operations, in its home market, Rediff decided to invest airlines; Global aviation; Alliance it would need to increase its ownership heavily in product innovation. stake to 51% from the current 46% to qualify to fly on overseas routes, or it should Pedagogical Objectives Russian Standard's Global sport Deccan's colours to its tail. For its Growth Strategies overseas operation, Kingfisher planned to • To analyse the growth strategy of the adopt a game-changing model, offering Indian Dotcom Industry Russian Standard, a manufacturer of Vodka nonstop flights on long-haul route, first • To analyse Rediff's strategy to beat its founded in 1992, enjoyed leadership among Indian overseas flights. Kingfisher rivals position in the Russian Vodka market with planned to position itself as a first class 60% market share. It was ranked '4th fastest (one first class seat equals between eight • Analysing the sustainability of Rediff's growing premium spirits brand globally' in and ten economy seats) and business class competitive advantages and product 2006 by 'Impact' magazine. Russian (one business class seat equals between six innovation strategies. Standard Vodka was exported to more than and eight economy seats) airline in 50 countries across Europe, Asia, North Industry Communication outbound category. It also planned to and South America. In Europe, changing revolutionise international air travel by Reference No. GRS0272B consumer tastes and preferences offered Year of Pub. 2008 extending some of the services offered to tremendous opportunities to Russian Teaching Note Available first class and business class in outbound Standard. As part of its growth strategy, it Struc.Assig. Available category to economy class passengers with decided to enter France's emerging Vodka all new aircraft. Initially, Kingfisher Keywords market where young drinkers were turning intended to target the key US-India route, to Vodka. Apart from France, it also which is already occupied by other Rediff.com; Yahoo; Google; IndiaTimes; planned to enter various European markets international rivals like Air India, Delta Indian portal; Microsoft; Rediffusion- where Vodka consumption was rising. But, Air Lines, and Continental Airlines. Dentsu Young and Rubicam; Sify.com; established industry players like LVMH, Analysts pointed out that, Kingfisher's Indian Digital Media; Growth Strategies Pernod Ricard, and Diageo provided stiff plans might be right for overseas operations Case Study; Emails and Messaging; Product competition to Russian Standard in its but were skeptical in the wake of its Innovation; iShare; YouTube; Dotcoms objective to become the leading Vodka domestic losses. Whether, Kingfisher player in France. would be able to succeed in the highly competitive international airline market Lufthansa Spreading its Wings in Pedagogical Objectives needs to be seen. the US through JetBlue • To understand dynamics of the European Pedagogical Objectives On 13th December 2007, Lufthansa alcohol beverage industry announced its purchase of 19% stake worth • To understand the competition and • To understand the growth strategies $300 million in JetBlue Airways Corp. a consolidation in Indian aviation industry opted by Russian Standard in France's low-cost carrier. The deal, without doubt, Vodka market is a boost to JetBlue's financial condition • Analyse the dynamic business expansion strategy of Kingfisher Airlines 12 www.ibscdc.org

• To understand the positioning strategy Keywords Fortis Healthcare Limited :

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S of Kingfisher Airlines on international Corporate Hospital’s Growth route – the business model Britannia; Indian Biscuit Industry; Organic Growth; Inorganic Growth; Brand Strategies in India • Analyse the competition on Repositioning; ITC; Parle; Product Since its establishment in 2005, Fortis international air travel route. Positioning; Product Portfolio; Growth Healthcare Limited (FHL), a New Delhi- Srategy; Product Portfolio Management; based corporate hospital, gained Industry Aviation Sector Product Innovation; Growth Strategies Reference No. GRS0269A remarkable brand reputation in a short span Case Study; Market Segmentation; Brand of time. It operated through multi-specialty Year of Pub. 2008 Extension; Competitive Advantage Teaching Note Available hospitals, providing healthcare in key Struc.Assig. Available specialty areas like cardiac care, renal care, neuro-sciences, orthopedics, etc. Besides, Keywords Growth Strategies for Emerging it operated a boutique style hospital, Fortis Indian Aviation Market; Passenger Traffic Markets : Nokia in India La Femme - focusing exclusively on Growth; International Route; Government women’s health and maternity care. To In 2006, Nokia, the world’s largest producer Regulations; Business Model; Positioning; provide quality service, FHL differentiated of mobile phones, was the market leader Full Cost Carriers; Low Costs Carriers; itself with its contemporaries in India by in India with 78.8% of the market share. Growth Strategies Case Study; Overseas adopting unique hospital design, services, Since its entry into Indian mobile market Operations; Competition; Kingfisher and programmes that comply with in 1995, it focused on manufacturing of Airlines; Simplifly Deccan; Foreign Airlines international standards. The demographic mobile handsets based on GSM technology. In India; Long Haul Non-Stop Flights shift and higher longevity of Indian Nokia built a strong brand image with population offered tremendous focused marketing and distribution opportunities to many private corporate network. It started focusing on the low- hospitals. To tap such lucrative Growth Strategies of Britannia : cost mobile phone segment for rural opportunities, FHL followed hub-and- India's Emerging Food markets in India, but, faced stiff spoke model. To counter competition, Conglomerate competition from Sony Ericsson, Samsung, FHL, going a step further, started acquiring and Motorola who also started offering other hospitals. Also, it planned to In 2007, Britannia, one of the India's low-cost handsets. Nokia’s under developed integrate backward and set up medical and largest biscuit brands held a market share infrastructural facilities and low coverage nursing college in addition to research labs. of 38% in terms of value. Indian biscuit were the biggest challenges for it to reach The case discusses whether FHL would be industry, the third largest producer of the rural customers. The case facilitates a able to achieve leadership position in a biscuits in the world was highly under- discussion on whether Nokia will be able to highly fragmented Indian healthcare sector penetrated. This presented numerous improve its performance and sustain its by means of inorganic growth. growth opportunities to new as well as leadership position in India existing players. Apart from the presence Pedagogical Objectives of big players like ITC Foods and Parle, Pedagogical Objectives the local manufacturers of biscuits and • To assess the opportunities and other Indian snacks had been raising • To understand marketing strategies in challenges in the burgeoning Indian concerns for Britannia. Besides mass markets healthcare sector competition, Britannia faced critical • To understand the demand dynamics of challenges due to declining margins in the • To evaluate the feasibility of the growth the rural mobile handset market in India biscuit industry due to the increasing costs strategies of FHL of raw materials. Its profit had been on a • To analyse growth strategies of Nokia • To examine the sustenance of private decline since 2005. Though Britannia had in the wake of increasing competition corporate hospitals in India in the midst forayed into dairy and bakery products, from other global players of competition. 90% of its revenues still came from its core business in biscuits category which was • To analyse the strategic challenges faced Industry Health Care largely driven by product innovation. The by Nokia in marketing in the rural mobile Reference No. GRS0266A case, highlighting the Britannia's growth handset market in India. Year of Pub. 2008 Teaching Note Available strategies, provides scope to analyse Industry Mobile Phone Struc.Assig. Available opportunities and challenges for Britannia Reference No. GRS0267A in the Indian biscuit industry. Year of Pub. 2008 Keywords Teaching Note Available Pedagogical Objectives Struc.Assig. Available Indian Healthcare Sector; Private Corporate Hospitals in India; Inorganic • Product portfolio management, brand Keywords Growth Strategy; Hub-and-Spoke Business extension and market segmentation of Model; Fortis Healthcare Limited; Lifestyle Britannia Nokia; Mobile Handset Market; GSM Technology; CDMA Technology; GPRS; Diseases; Mergers and Acquisitions; Multi- • Analysing product innovation strategies Communication Strategy; Motorola; specialty Hospitals; Fortis La Femme; of Britannia as its competitive advantage Samsung; LG; Growth Strategies Case Study; Growth Strategies Case Study; Ranbaxy Sony Ericsson; Nokia Siemens Village Limited; Escorts Heart Institute and • Organic and inorganic growth strategies Connection; Product Innovation; Research Centre Limited (EHIRCL); of Britannia to face the challenges in Marketing Strategy; Competitors American Institute of Architects (AIA); the Indian biscuit industry. Greenfield Investment; Indo-Italian Chambers of Commerce and Industry Industry Ready to eat Industry (IICCI); Institute of Enhanced Leadership Reference No. GRS0268A Development Year of Pub. 2008 Teaching Note Available Struc.Assig. Available 13 www.ibscdc.org Bionade Soda (B): The Organic began wondering if it was time for • To discuss the challenges faced by players Growth Conundrum Zuckerberg to sell. Facebook needs to decide in participating across segments in such whether it should collaborate with markets. Bionade Soda - a highly innovative organic Microsoft or Google and build up; stay drink in Germany - was refused by independent and eventually go for an IPO; Industry Home Appliances Industry distributors to stock, as it was an unknown or sell itself off like MySpace and YouTube. Reference No. GRS0263A product. Fortunately, the product caught Year of Pub. 2007 Teaching Note Available attention of some media and advertising Pedagogical Objectives professionals, who frequented a small bar Struc.Assig. Available in Munich, Germany, where the bar-owner • To reason Microsoft and Google’s Keywords - fascinated by the product - added the drink continued interest in the start-up to his menu. With the help of low-budget Home Appliances Industry; Polarisation; • To analyse Facebook’s dilemma as it sees marketing techniques and below-the-line Commoditisation; Globalisation; Business itself grow. promotions Bionade Soda made a place for Model; Corporate Restructuring; Growth Strategies Case Study; Branding Strategy;

Growth Strategies Growth Strategies itself in the market. Having faced tough Growth Strategies Growth Strategies Growth Strategies Industry Social Networking times in the initial years, the sales of Reference No. GRS0264 Double Branding; Product Development; Bionade Soda skyrocketed by 2007 and Year of Pub. 2007 Market Segmentation; Value Proposition; within a short span of time, its owners Teaching Note Available Brand Positioning; White Goods; Business turned into millionaires. Following the Struc.Assig. Available Strategy incredible success in the German market, the makers of Bionade Soda aspired for Keywords international expansion. The case study Social Networking; Online Advertising; Wal-Mart’s Growth Conundrum : highlights how a new product offering Mergers and Acquisitions; Mark Should its Business Model be developed by small business can be Zuckerberg; Business and Revenue Model; Changed? marketed successfully with low-budget Google; Yahoo! and Microsoft; Parakey; marketing techniques. It also provides a Friendster; Managing Networked Wal-Mart Stores, Inc., the retailing giant scope to discuss the challenges for a small Businesses; Growth Strategies Case Study; is the largest corporation in the world. Wal- family firm while expanding into Dilemmas for a Start-up; Collaboration vs Mart had pursued a strategy of “Everyday international markets. Staying Independent; Merits and Demerits low prices” which had been Wal-Mart’s of Going Public primary growth driver since its inception Pedagogical Objectives in 1962. With several players successfully selling on the ‘low price’ plank, Wal-Mart • To understand use of low-budget can no longer claim it as its USP. Wal- marketing techniques to market new- Electrolux’s Growth Dilemma : Mart has been witnessing a slow down in product offering Middle Market Strategy? its growth rates since the mid 1990s. In • To understand the concepts of viral In 2006, Electrolux, a Swedish global leader 2006, Wal-Mart recorded its first quarterly marketing and below-the-line in home appliances and appliances for profit decline in 10 years. Is Wal-Mart’s promotions professional use, sold more than 40 million business model running out of steam? Will products to customers in 150 countries. Wal-Mart be able to resurrect its • To analyse the international expansion The company has key brands like AEG- productivity and profits, and unearth its plans of a small family firm. Electrolux, Zanussi, Eureka and Frigidaire next growth pool? Industry Bottled and Canned Soft Drink which cater to various consumer segments Industry of the market. Electrolux had a major Pedagogical Objectives Reference No. GRS0265A presence in the middle market. However • To analyse factors responsible for Wal- Year of Pub. 2008 due to the rapid polarisation of the home Mart’s success Teaching Note Available appliance market, middle market began Struc.Assig. Available disappearing. Globalisation which led to the • To identify the reasons for Wal-Mart’s entry of low-cost players radically changed decreasing growth Keywords the market dynamics at the low-end of the • To evaluate the possible solutions to Wal- Bionade Soda; BIONADE International home appliance market. Also, the demand Mart’s growth conundrum. GmbH; Germany; Non-alcoholic beverage; at high-end of the market rapidly grew in Health drinks; Organic drinks; Family- the wake of major shifts in consumer Industry Retail owned Company; New product offering; lifestyles. As a result Electrolux was forced Reference No. GRS0262P Innovation; Low-cost marketing to re-define its business model under which Year of Pub. 2007 techniques; Growth Strategies Case Study; it focussed on both the value end and the Teaching Note Available Viral marketing; Below-the-line premium end of the market. However in Struc.Assig. Available promotions; Word-of-mouth; doing so, it was to face strategic challenges. International expansion How well Electrolux can identify and Keywords deliver distinctive value to both the ends Retail, Wal-Mart, Every Day Low Prices, of the market was yet to be seen. Business model, retail formats, growth Facebook (B) : The Start-up’s crisis, Target Corp, Growth Strategies Case Pedagogical Objectives Strategic Dilemmas Study, reputation crisis • To understand the concept of Case (B) dwells on Facebook’s dilemmas as ‘polarisation’ in an industry it keeps growing. Its grand social success Citigroup’s Expansion Strategies may woo some big company to acquire it. • To identify the competitive dynamics Yahoo!, Viacom, Microsoft and Google of the industries that are getting polarised in Russia wanted to invest in it. However, with • To analyse the shifts in growth strategies Citigroup had been operating in Russia since Facebook turning down Yahoo! and of players in polarised markets 1993 and primarily catered for the Viacom’s offers, some industry experts country’s industry giants, subsidiaries of 14 www.ibscdc.org

major multinational corporations, leading since 1857, to provide a wide range of or compete with TAM; or should TAM

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S banks and fast-growing domestic financial products and services to the adjust or retaliate against Gol's moves? II – Y G E T A R T S companies. In 2002, Citigroup’s Russian customers. BBVA adopted high growth and subsidiary forayed into the retail banking low risk acquisition strategy for the Pedagogical Objectives arena in Russia in its bid to tap the ever- international expansion. On February 16th increasing Russian retail market and since 2007, BBVA announced to acquire 100% • To analyse the cost structures of both then developed themselves at a fast pace Compass Bancshares Inc. (Compass) for LCCs and traditional network carriers due to overwhelming customer demand for $9.6 billion for further expansion in US, (full service carriers) the bank’s products and services. Russia especially in the 'Sunbelt' area. The product- • To study the service value chain of was one of the promising markets and the driven US banking industry remained airline operations biggest growth area in Eastern Europe. In fragmented and provided further scope for anticipation of enhancing their businesses consolidation. Spanish banks entered US • To find ways to cut costs and attain across Europe, it was obvious that because the US banks failed to acknowledge operational efficiencies Raiffeisen would aim to strengthen its and trust the growing ethnic immigrant • To discuss the competitive strategies in foothold in Russia. In a bid to retain its population in the US. BBVA planned to dominance in the consumer, corporate and target the Hispanic market, where a consolidated market environment – wealth management sectors; the global bank Hispanics, the largest minority group were competitor analysis had established around 40 branches in Russia geographically dispersed and had potential • To critically evaluate Gol's plan to at the end of 2006 with 190 new branches - three times more 'unbanked' than the acquire Varig. scheduled to be opened in 2007. Analysts average US adult. were also surprised at the Citigroup’s Industry Civil Aviation strategy of not adopting the path of Pedagogical Objectives Reference No. GRS0259 inorganic route of expansion in Russia to Year of Pub. 2007 grab a major piece of the country’s banking • To understand merger and acquisition as Teaching Note Available market. Critics opined that the rising an expansion strategy Struc.Assig. Available branch expansion strategy in Russia instead • To analyse the structure, trends and Keywords of inorganic growth might not turn out to segmentation of the US banking industry be a fruitful business proposition for the Low-cost Carriers (LCCs); Varig; TAM; US bank in the long run. • To discuss the factors that define the Traditional Network Carriers; Global Civil attractiveness of foreign banks towards Aviation; Growth Strategies Case Study; Pedagogical Objectives the US Hispanic market Deregulation; Hub-and-spoke model; Code- sharing agreements; Service value chain of • To understand the growth strategies of • To analyse the growth strategy of BBVA airline operations; Load factor and capacity Citigroup • To discuss the impact of BBVA's utilization; No-frills service; Cost Structure • To analyse the benefits and drawbacks acquisition of Compass Bancshares Inc. Analysis; Productivity and Profitability of of expansion strategies associated with on the US banking industry. airlines; Competitor Analysis; banking companies Consolidation in aviation industry; Industry Banking Cooperation vs Competition • To study the impact of Citigroup on the Reference No. GRS0260A Russian banking sector Year of Pub. 2007 Teaching Note Available • To understand the trends and Struc.Assig. Available Cosmetics Industry (B) : L’Oreal’s developments in the Russian banking Globalisation Strategies sector Keywords With their home markets getting saturated, • Tounderstand the pros and cons of the Banking Industry in US; Banco Bilbao cosmetic companies are skidding into Russian banking sector reforms. Vizcaya Argentaria; Spanish Banks; Growth emerging markets for growth. L’Oreal is Strategies Case Study; Foreign Banks; no different and its globalisation strategy Industry Banking Hispanic Market; Fragmented market; amply proves this. A huge – yet diverse – Reference No. GRS0261K Acquisition; Compass Bancshares Inc; customer base and its spending power drew Year of Pub. 2007 Ethnic Immigrant Population; Financial it to these markets. But cultural complexity Teaching Note Available Institutions; Consolidation; BBVA and indifference to premium products is Struc.Assig. Available deterring them nonetheless. Keywords Gol, Brazil's Low-cost Airline : Pedagogical Objectives Citigroup; Russia; CAGR (combined annual growth rate); Strategy; Assets; Credit; Popularising Air Transport • To discuss the opportunities and Deposits; Growth Strategies Case Study; Brazil's low-cost airline, Gol broke news in challenges emerging markets offer to CEE (Central and Eastern Europe); 2007 because of its brazen move the cosmetic players Corporate; ROE (return on equity); CAR previous year. It was ambitious to acquire (capital adequacy ratio); CBR (Central • To discuss L’Oreal’s globalisation the country's decrepit flag carrier, Varig. strategies. Bank of Russia); Domestic; Retail; Global Thereby, trying to out-compete its rivals like TAM. Obviously, they have opposing Industry Cosmetics business models: Gol is a low-cost carrier, Reference No. GRS0258 Banco Bilbao Vizcaya whereas Varig is a full-service carrier. Year of Pub. 2007 Argentaria's Growth Plans Students will be gripped to debate whether Teaching Note Available Gol can really take off? Studying the cost Struc.Assig. Available Banco Bilbao Vizcaya Argentaria (BBVA), structures and service value chain of the Spain's second largest bank was formed carriers forms the basis for such analysis. Keywords through a merger of Banco Bilbao Vizcaya Spotlight is also on the consolidation in Globalisation Strategies; Strategies for and Argentaria in 1999 with it's long history Brazilian aviation – should Gol cooperate Saturated Market; Strategies for Emerging 15 www.ibscdc.org Market; Opportunities in Emerging five year strategy to enhance shareholders Samsung : Betting on High-end Markets; Manufacturing Strategy vs value called the 'Managing for value' Mobile Phones Import Strategies; Customisation vs strategy. After successfully implementing Standardisation; Growth Strategies Case this strategy, it introduced the 'Managing In 2005, Samsung Electronics, the third Study; Market Leader’s Strategies; Market for Growth' strategy in 2003, a strategic largest mobile phone manufacturer in the Followers Strategies; L’oreal’s Brand plan to become the world's leading financial world, reported operating profits worth Architecture; Product Portfolio Analysis; services company. The case discusses the KRW2.48 trillion compared to KRW3.09 Distribution Strategies; Country of Origin initiatives taken by HSBC to enhance its trillion in 2004. Analysts stated that 2004 as Branding Strategy; Premium Image as a brand value and its global presence. The was a better year for the company and it Barrier to Globalisation case also analyses HSBC's acquisition was poised to become the second largest strategy. mobile phone manufacturer behind Nokia. However, in the wake of Samsung's Pedagogical Objectives performance in 2005 and the first quarter Cosmetics Industry (A): New of 2006, analysts predicted that the Growth Avenues, New Markets, • The case evaluates the growth strategies

Growth Strategies Growth Strategies company was far from the second slot. Growth Strategies Growth Strategies Growth Strategies New Challenges and Old adopted by HSBC to enhance its brand They blamed the problem on Samsung's Solutions? value and its attempts to present itself strategy of focusing on high-end phones as a global company rather than booming low-end products. The global cosmetics industry is booming, Though the company was confident that • It discusses the advantages and but the share of developed markets - the its strategy would pay-off in the long term, disadvantage of organic and inorganic largest contributor to the total cosmetic analysts were skeptical about it. global sales - is decreasing. US, the world's growth. largest cosmetics market, is no different The case deals with Samsung's strategy of Industry Banking Industry to this situation. Though the growth rate focusing on next generation, feature- Reference No. GRS0256P improved in 2006, there is not much packed phones. It also discusses the recent Year of Pub. 2007 market potential. Major players are turning trends in the global mobile handset industry. Teaching Note Available away from sluggish US domestic markets Struc.Assig. Available and counting on developing markets of Pedagogical Objectives Asia, Eastern Europe and Latin America. Keywords However, it is not a cakewalk for these • To get an overview of Samsung's mobile players. Premium players have an even Merger; Acquisition; Brand Builiding; phone business terrible time in a country like China, where Growth Strategy; Banking Sector; Growth Strategies Case Study; Developing • To understand the trends in global mobile low-priced goods are preferred. For mass phone industry players, the future seems promising in these Countries emerging markets; while in developed • To evaluate Samsung's strategy of markets, those with niche products can focusing on high-end, next generation taste success. General Motors in India phones The case analysed how General Motors • To argue whether Samsung would benefit Pedagogical Objectives entered India through a particular segment from its strategy once next generation • To discuss the similarities, dissimilarities and created a complete product portfolio, mobile services take off. and challenges of the developed and in order to cater to all the segments in the Industry Wireless Telephone Handsets developing cosmetic markets industry. It expanded its product line over Reference No. GRS0254K the years and had created a premium brand Year of Pub. 2006 • To discuss the challenges developing for itself. In the year 2005, it entered the markets pose to the players. Teaching Note Not Available small car segment by introducing 'Spark'. Struc.Assig. Not Available Industry Cosmetics By the end of 2012, General Motors Reference No. GRS0257 planned to capture a 10% market share. Keywords Year of Pub. 2007 Samsung Electronics; Nokia; Motorola; Teaching Note Available Pedagogical Objectives Mobile phone; Code division multiple Struc.Assig. Available • To understand the Indian automotive access (CDMA); Global system for mobile Keywords industry communications (GSM); Sony-Ericsson; Siemens; Growth Strategies Case Study; Trends in the Global Cosmetics Industry; • To discuss the profile of General Motors Camera phone; 3G (third-generation cell- Critical Success Factorsin Cosmetics in India phone technology); Global mobile Industry; Growth Strategies Case Study; • To analyse General Motors strategic communication industry; High-end Basis for industry Segmentation; 5 Force initiatives. phones; Smartphone; RAZR; Average Analysis; Ram Charan Matrix; Growth selling price of handsets Strategies; Opportunities in Emerging Industry Auto Manufacturing Markets; Distribution and Retailing Reference No. GRS0255K Strategies; Ansoff Matrix Year of Pub. 2006 Jollibee Foods : Going Global Teaching Note Not Available Struc.Assig. Not Available Founded in 1975, Jollibee Foods Corporation quickly became the biggest HSBC's Growth Strategy Keywords restaurant chain in the Philippines. It HSBC Holdings, one of the largest banking General Motors; Automotive sector; started offering American-style fast food and financial services organizations, has Maruti Udyog Ltd; Suzuki; Daewoo; Growth items that were prepared according to the decided to launch concrete strategies to Strategies Case Study; Chevrolet; Saturn; Philippine taste. The consumers liked it attain market leadership in the financial Opel; Umbrella brand; Multi-utility vehicle; very much and soon Jollibee became a world. A growth oriented company since Premium segment car; Mid size segment; house-hold name in the country. Its local its inception, in 1998 HSBC launched a Sports Utility Vehicle roots were so strong that even McDonald's, 16 www.ibscdc.org

the global fast food giant, faced a tough films that conformed to international medium-priced appliances was diminishing.

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S competition when it entered the Philippine standards in terms of content, presentation, Foreign players, who had entered the US II – Y G E T A R T S market in 1981. By mid 1980s, Jollibee duration, etc. In this scenario, analysts market, intensified the competition established itself as the market leader in its wondered whether or not Indian further. Maytag, like other companies, domestic market and decided to expand moviemakers would change their style to increased its operational efficiencies, overseas. Starting from neighboring be accepted globally. thereby tried to reduce costs and increasing countries, it later entered the US and China competitiveness. In response to the too. However, it could not replicate its The case deals with the evolution of challenging market conditions, Maytag success in the foreign markets. Bollywood-style movies and their growing made several acquisitions by taking the Subsequently, it decided to focus its popularity in the overseas markets. It also advantage of its cash rich condition. international expansion on the US, China discusses how they are performing in the Through these acquisitions, the company and India. non-traditional markets and raises a debate diversified into other product segments, on whether the Indian producers would apart from laundry and kitchen appliances The case begins with a short history of the change their style of moviemaking. where it had core competence. It also company and then discusses how it expanded its geographic reach to newer established itself in its home country. The Pedagogical Objectives markets worldwide. Though Maytag next section gives an overview of the changed its traditional high-quality, high- Philippine fast food market. The • To discuss the evolution of Bollywood into the world's largest film industry priced positioning, it failed to maintain its subsequent sections highlight Jollibee's profitability. During 2001–2004, the acquisitions and off-shore expansion. The • To assess how more and more Bollywood company's revenue was almost stable, but case also attempts to present the problems movies are gaining acceptance in foreign return on sales declined. In 2004, the faced by the company in its overseas markets company even recorded a net loss. expansion, and its future plans. • To understand how Indian producers & The case deals with the growth trap in Pedagogical Objectives directors went ahead and entered non- which Maytag fell. It discusses the traditional markets too company's success phase, when it had • To understand the strategies adopted by turned out to be the most profitable • To understand the changes required in Jollibee to strengthen its presence in its company in the industry, catering only to home country Bollywood movies in order to customize the niche upscale market segment with them for local audiences • To get an idea of the fast-food market high-quality, premium-priced laundry and of the Philippines • To discuss whether Bollywood movie kitchen appliances. The case has also directors would change their style of covered the detailed inorganic growth • To discuss how Jollibee successfully film-making in order to gain strategy that the company followed. expanded into the neighboring countries international acceptance. Finally, the case offers a scope for discussion about the consequences of such • To discuss why Jollibee failed in Industry Entertainment strategy. Indonesia, Saudi Arabia, China, Kuwait Reference No. GRS0252K etc Year of Pub. 2006 Pedagogical Objectives • To analyse how Jollibee plans to Teaching Note Not Available strengthen its overseas presence. Struc.Assig. Not Available • To understand the market dynamics of Home appliance industry in US Keywords Industry Fast Food • To analyse Maytag's STP strategy Reference No. GRS0253K Bollywood; Indian film industry; Indian Year of Pub. 2006 entertainment industry; Hollywood; Hindi • To understand the concept of growth Teaching Note Not Available movies; Crossover movies; Oscar; BAFTA trap in the context of Maytag. Struc.Assig. Not Available (British Academy of Film and Television Industry Home Appliances Keywords Arts); Monsoon Wedding; Lagaan; Growth Strategies Case Study; Devdas; Bend it like Reference No. GRS0251K Jollibee; Philippine fast food industry; Beckham; Kabhi Khushi Kabhie Gham Year of Pub. 2006 Yumburger; Greenwich; Growth Strategies (K3G); Song-and-dance sequence; Cannes Teaching Note Not Available Case Study; Delifrance; Chowking; Red film festival Struc.Assig. Not Available Ribbon; Yonghe King; Chun Sui Tang Tea Keywords House Maytag Corporation; Growth Strategies The Growth Trap : A Case of Case Study; Major home appliances; Maytag Corporation Laundry appliances; Operational Brand 'Bollywood': Going Global Maytag Corporation (Maytag) was one of efficiency; Growth through acquisition; By mid-2000s, Bollywood movies (the the most profitable companies in home Premium brands; Brand positioning; High Hindi language movies produced in India) appliance industry. During 1983–1987, the quality, high priced positioning; Full-line were going global. These movies were company's revenue and net profit, grew at appliance manufacturer; Growth trap; attracting larger audiences in the overseas more than 5% and 9% annually, Hoover; Amana appliances markets than ever. They were gaining respectively. Traditionally, the company's popularity not only in traditional markets product line was restricted to washers, such as the UK and the US but also in dryers and dishwashers. It had always LCD Flat Panel TV – Sony's countries like Germany, Israel, France, targeted the niche market with premium- Growth Strategy Japan, etc. With time, more and more priced products and not the price-conscious Bollywood movies were released overseas market segments. During 1980s, the Sony Corporation (Sony), a leading and enjoyed by a larger audience. With a premium-quality niche for laundry and Japanese consumer electronics company rapidly growing overseas market, foreign kitchen appliances started eroding as the enjoyed undisputed leadership in the TV distributors demanded extensive changes consumers became aware that the quality market with its CRT TVs. During early in the style of movie-making. They wanted difference between high-priced and 1980s, the company's leadership position 17 www.ibscdc.org was first challenged by the changing By the end of 2004, the CEO of Shanda, for railways, earth moving equipments, preferences of the customers, who were Mr. Chen Tianqiao, intended to expand it hydrocarbons, sugar, steel, coal, ship looking for flat and large screen TVs. CRT as a global entertainment company and building, oil and gas, refinery and general technology had a drawback that it could not restrict it to online gaming only. engineering equipments. Globally, BFL was not be used for making large screen TV. However, Shanda was facing increasing known for its operational excellence, Sony continued with its CRT TV to cater competition from rivals like The Online technical supremacy and cutting edge the changing customers' needs just by and Kingsoft Co. Besides, the company know-how. The cutting edge technology increasing the screen size. As a result the was adversely affected by technical and manufacturing excellence helped the company witnessed declining market share problems such as hacking of its servers company to become the preferred supplier which affected its financial performance. through cheat programs and legal problems of global automotive companies. It had an The major initiatives to revive its TV related to copyrights. This case deals with enviable buyers list from global automotive business were taken by Sony when Howard the competitive landscape of Chinese companies, like General Motor, Stringer (Stringer) became the CEO of the online game industry, the strategies adopted DaimlerChrysler, Volvo, Mitsubishi company in June 2005. by Shanda to become a market leader, Corporation, Toyota Motor Corporation Growth Strategies Growth Strategies Growth Strategies Growth Strategies Growth Strategies challenges it might face to retain its and Hyundai Motors. It also had tie-ups, The Case discusses the initiatives of Howard leadership position and strategies adopted joint venture and technology sharing with Stringer to revive the fortune of Sony while by Shanda to meet the challenges of the leading auto component manufacturers and analyzing its ability to sustain the success competitive market. original equipment manufacturers like in the long run. Meritor, Carpenter Technology Pedagogical Objectives Corporation, Rockwell International and Pedagogical Objectives Delphi Corporation. As a part of the • To discuss the online gaming industry in growth strategy, the company opted for • To discuss about the flat panel TV China industry both green-field expansion and brown-field • To understand the strategic initiatives expansion. BFL made a few significant • To understand the challenges faced by taken by Shanda Interactive acquisitions globally to mark its presence. Sony's flat TV Among the list of the acquisitions, Carl • To discuss the challenges faced by the Dan Peddinghaus, CDP Aluminiumtechnik • To discuss the strategic initiatives taken company and Imatra Kilsta AB were the most by Sony significant ones. • To argue about its growth strategies. • To debate on Sony's success in the long This case study discusses in detail about run. Industry Entertainment the expansion strategy of Bharat Forge Reference No. GRS0249K Industry Consumer Electronics Limited; how the company became the Year of Pub. 2006 Reference No. GRS0250K global leader in auto forging industry, Teaching Note Not Available Year of Pub. 2006 management philosophy of the company, Struc.Assig. Not Available Teaching Note Not Available expansion strategy adopted by the Struc.Assig. Not Available Keywords company to become the global leader, business model of the company and Keywords Shanda Interactive; On-line game; Internet glimpses of the domestic and global auto infrastructure; Interactive game; Internet component industry. This case further Sony; LCD (liquid crystal display) TV; CRT service provider; Role-playing game; Game (cathode ray tube); Growth; Sharp; WEGA offers a scope for discussion about the software; Virtual community; Business trends and strategy of the industry, strategy (industry’s first flat screen CRT TV); model; Research and development; Growth Samsung; Growth Strategies Case Study; adopted by the company to become the Strategies Case Study; Short messaging market leader and how it leveraged its Howard Stringer; Consumer electronics; service; Market capitalisation; Literature Road to recovery; Diversification; New advantages to mitigate the pitfalls and portal; On-line entertainment market; limitations of the strategy. initiatives; Non-core business; Product mix; Beta testing Branding Pedagogical Objectives

Bharat Forge : Catalyst in Global • To discuss how Bharat Forge established Shanda Interactive : The Chinese itself as the second largest global forging Auto Forging Industry Online Games' Growth Strategy company India-based Bharat Forge Limited (BFL) • To understand the global structure of the Shanda Interactive Entertainment Limited was globally the second largest auto forging (Shanda) was one of the fastest growing auto component industry with the company after ThyssenKrupp of Germany. emergence of Tiers in the value chain Chinese online gaming companies. The BFL was the flagship company of Pune- online games industry had come of age in based Kalyani Group with interests in steel, • To discuss how BFL started as a small China by 2004, with a market size of steel-based products, forgings and supplier of mechanical equipments in US$297.9 million and Shanda controlled automotive components. The company 1961, transformed itself into the second 35% market share. Mushrooming of online made a humble beginning in 1961 with a largest global forging company in just gaming companies led to stiff small plant in Pune. Over the years, the four decades competition, with each company vying company became the second largest auto with each other to capture the market. forging company, globally the second • To assess how the company planned to Shanda's "The Legend of Mir II" was one largest engine component manufacturer. change its business model by foraying of the "Massively Multiplayer Online It owned the largest single-location forging into non-auto component sector as it Role-Playing Games (MMORPG)" in plant in Asia and globally the largest plant had been highly depended on the China. In order to expand the size of the for manufacturing axles. Along with automotive sector. company and to enrich technological manufacturing forging items and Industry Auto Component infrastructure as well as the online game components for automobiles and contents, Shanda undertook a lot of Reference No. GRS0248K commercial vehicles, the company was also Year of Pub. 2006 mergers and acquisitions since its inception. a global leader in producing components 18 www.ibscdc.org

Teaching Note Not Available emerge as the casino capital of the world. 25 years, it had yet to prove itself on the

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S Struc.Assig. Not Available Gambling has been legal in Macau for over global scale. Tata Steel had an objective to II – Y G E T A R T S 150 years, and the place has for long been increase its production capacity to more Keywords known as a tourist center associated with than 30 MT and become a global company Bharat Forge Limited (BFL); Original casinos. However, for about 40 years (from by 2015. Starting its journey on the global equipment manufacturer (OEM); Auto 1961 to 2001), the casino business was the growth path, Tata Steel made two major forging; Auto component; Tier 1 supplier; monopoly of one local company - acquisitions namely, Singapore based ACMA (Automotive Components Sociedade de Turismo e Diversoes de Macau NatSteel in 2004 and Thailand based Manufacturers Association); Delphi (STDM), managed by Stanley Ho. A Millennium Steel in 2005. In October Corporation; Crankshafts; Single die quantum leap in the casino business was 2006, Tata Steel made a bid to acquire the forgings; Dana Kirkstall; CDP triggered by the local government's world’s 9th largest steel company, UK- Peddinghaus; DaimlerChrysler; Growth decision in 2001 to open out the gambling based Corus Group. If approved by Corus Strategies Case Study; General Motors; industry to foreign companies. The shareholders, the deal would create the Mitsubishi Corporation; Greenfield objective was to attract more tourists and world’s fifth-largest steel firm and the expansion visitors to Macau, in turn increasing tourism largest Indian takeover of a foreign revenues. Two major Las Vegas companies, company. Besides, Tata Steel had plans of Las Vegas Sands Corporation and Wynn capacity expansion in various countries Resorts Ltd. took their chances and risked through various projects. However, the deal L’Oreal’s Growth Strategy : The entry into Macau. In 2004, Sheldon to acquire Corus was not finalised yet, as it Body Shop Acquisition Adelson's Las Vegas Sands, the world's took a new turn when Brazil’s CSN The United Kingdom-based The Body Shop largest gaming company, was the first to (Companhia Siderugica Nacional) International (Body Shop) was a retailer step into Macau. Adelson was known to be approached Corus’ board with a higher offer of natural-based cosmetics. L’Oreal, a a visionary, who had successfully promoted than Tata Steel. Critics of Tata Group’s leading brand in the global market, was a Las Vegas, a casino gambling haven, as a globalisation spree argued that the group French company dealing with cosmetics business convention center as well. had intended to overpay for overseas and beauty products. This case deals with Adelson's entry into Macau was followed acquisitions. Moreover, Ratan Tata, who the proposed acquisition of Body Shop by by others, and at least a dozen new casinos had been leading Tata Steel for more than L’Oreal. It provides brief overview about of sizeable magnitude have opened shop 12 years, would retire in 2007 at the age of the two companies and highlights L’Oreal’s or are under development. Though skeptics 70. The case highlights the globalisation growth through acquisitions. It then feel otherwise, casino gaming revenue has aspirations of Tata Steel and the challenges discusses in details, the company's recent been growing at a galloping pace, and Macau ahead. It traces the journey of Tata Steel proposed acquisition. The case also deals is soon expected to overtake Las Vegas as from domestic company to global entity. with the expected synergies and possible the casino capital of the world. The case presents a dilemma, would Tata challenges that will result from the Steel be able to realise its ambitions of acquisition. Pedagogical Objectives putting its brand name on the world map in the volatile steel industry? How • To understand the gambling industry in successful would its expansion strategies Pedagogical Objectives general and casino business in Macau be? • To understand the global cosmetics • To analyse the competition and industry innovation in gambling industry in Pedagogical Objectives • To discuss the core competence of Macau and how Macau is emerging as • To understand growth strategies of Tata L’Oreal and Body Shop the World's Casino Capital Steel • To analyse the probable synergies of the • To assess the impact of gambling • To discuss whether Tata Steel would acquisition. industry on tourism. succeed in its expansion strategies. Industry Gambling/Casino Industry Personal Care Products Industry Steel Reference No. GRS0246B Reference No. GRS0247K Reference No. GRS0245A Year of Pub. 2006 Year of Pub. 2006 Year of Pub. 2006 Teaching Note Not Available Teaching Note Not Available Teaching Note Available Struc.Assig. Not Available Struc.Assig. Not Available Struc.Assig. Available Keywords Keywords Keywords L’Oreal acquisition of Body Shop; Merger China; Macau; Gambling; Casino; Las Tata Steel; Tata Group (TATA); Expansion synergies; Cosmetics; Beauty products; Vegas; Sheldon Adelson; Convention Strategies; Globalisation; Mergers and Inorganic growth strategy; Ethical business Center; Tourist Center; Business Strategy; Acquisitions (M&A); Steel Industry; practices; Animal testing; Brand image; Global Expansion; Growth Strategies Case Consolidation; Growth Strategies Case Natural-based cosmetics; Anita Roddick; Study; Tourism Plan; Luxury Hotel/Resort; Study; Challenges for Globalisation; Lindsay Owen-Jones; Dermatology; Stanley Ho; Wynn Resorts; Government Strategies for Globalisation; Domestic Growth Strategies Case Study; Personal care Policy Market; Corus Group; CSN; NatSteel; products Millennium Steel; Ratan Tata; Leadership

Will the Expansion Strategies of Macau : Emerging as the World's Tata Steel Pay-off? Toyota : Looking for growth in Casino Capital – The Adelson Tata Steel had been a flagship company of China Effect Indian conglomerate Tata Group. By 2006, Toyota, the World's No. 2 automobile Tata Steel was the world’s 55th largest steel Once considered as Hong Kong's poor manufacturer was a late entrant into company with production capacity of 9 cousin, Macau (a former Portuguese Chinese automobile market. In 2005, million tonnes (MT). Though it had been territory, now part of China) is soon set to Toyota's market share in China was just exporting to various countries for the past 19 www.ibscdc.org 3.5% compared to 13% in US and 40% in Starwood entered China in 1985 and by it was vulnerable to the economic changes Japan. Toyota took unconventional route 2006 it operated 26 hotels under 5 affecting the demand of luxury goods like in the Chinese market whereby the auto renowned brands and had emerged as the the 1997, Asian crisis and 2001, attack of parts supplier of the Toyota group entered leading international luxury hotel chain in twin tower in the US, which was a major in China before production of finished cars China. It had ambitious plans to further market for LVMH. initiated. Toyota launched its world famous boost its presence. Other international Camry Sedan in China with a mission to hotel chains were also looking at China in The nature of business in which LVMH achieve 10% market share in the Chinese a big way, leading to a clutter of world operated demanded high level of creativity automobile industry. famous hotel brands. The cut-throat and innovation at a faster pace. LVMH competition especially among the luxury managed its various brands in close The case deals with the different joint hotel operators was expected to intensify, association with its designers. With venture partnerships of Toyota which driving the unprofitable ones out of competitors like Gucci, Richemont, with focused on product localisation approach. business. In such a situation, it remained a financial muscle and battalion of talented The case discusses the upcoming challenge for Starwood to continue to designers, LVMH had to be audacious and Government policy regarding expeditious in its endeavors to retain its Growth Strategies Growth Strategies Growth Strategies Growth Strategies Growth Strategies enjoy its dominance. implementation of European emission luxury leadership. standards, the competition scenario and product recall problems. Would Toyota be Pedagogical Objectives The case covers the global luxury goods industry, the competitive landscape for able to surpass its rivals by acquiring bigger • To discuss the economic growth and share of the Chinese automobile market? LVMH, the establishment and growth of growth of tourism industry in China and LVMH empire and its business groups. The its spill-over effect on the hotel industry case analyzes the business model followed Pedagogical Objectives • To discuss the entry and growth strategies by LVMH and its core competency of • Analyse the Chinese Automobile of Starwood in China building Star Brands. The strategies Industry and its importance for the followed by LVMH for growth is discussed foreign Automobile manufacturer • To analyse the challenges ahead for including the issues of Talent management, Starwood in China and chart out developing and achieving skill set for • Toyota's expansion strategies strategies to overcome them. designers and counterfeiting. • Toyota's Strategies to tap Chinese Industry Hospitality automobile market. Reference No. GRS0243A Pedagogical Objectives Year of Pub. 2006 Industry Automobile Industry • To understand the dynamics of the global Teaching Note Not Available Reference No. GRS0244A luxury goods industry Struc.Assig. Not Available Year of Pub. 2006 • To understand the core competencies Teaching Note Not Available Keywords of LVMH in creating 'Star Brands' Struc.Assig. Not Available Starwood; luxury hotels; resorts; Westin; • To discuss the growth and competitive Keywords Sheraton; St. Regis; The Luxury collection; strategies of the industry leader, LVMH Growth Strategies Case Study; Le Meridien; Toyota; Global automobile industry; China Four Points by Sheraton; W aLoft; • To discuss future challenges and strategies automobile industry; Camry Sedan; Organic ELEMENT; China; Beijing; Olympic for the global luxury good giant. growth; entry level strategies; Joint Games; Asia; InterContinental; Hilton; ventures; Growth Strategies Case Study; Hyatt; competition; growth strategies; Industry Luxury Goods Industry Original equipment manufacturer; Kiichiro brand positioning; brand strategy Reference No. GRS0242A Toyoda; International business expansion; Year of Pub. 2006 European emission standards; FAW; BAIC; Teaching Note Not Available SAIC; Chinese government policy; Struc.Assig. Not Available Competition scenario; Product recall LVMH in 2006 : Managing Fashionable Growth Keywords LVMH (Louis Vuitton Moët Hennessy); LVMH - Moët Hennessy - Louis Vuitton Richemont; Guccio Gucci; Pinault- Starwood Hotels & Resorts in S.A. (LVMH), the world's leading luxury Printemps-Redoute (PPR); Growth China - Strategies for Growth goods conglomerate, was the parent to Strategies Case Study; Fashion accessories; around 50 prestigious brands with Luxury goods in Asia; Luxury goods in Starwood Hotels & Resorts Worldwide, Inc. international retail network of more than Europe; Cosmetics; jewellery; Product line based in New York, was one of the leading 1,700 stores. LVMH posted a profit of extension; Positioning; Multi branding hotel and leisure companies in the world ¤1668 million with revenues of ¤13,910 strategy; Growth strategy; Innovation; with about 850 properties in over 95 million in 2005. Led by a dynamic leader Branding strategy; Business models; countries and 145,000 employees in 2006. Bernard Arnault, LVMH developed Entering international markets; Star brand; Starwood owned, managed and franchised competency in building not just Consumer goods; France; Strategy hotels and resorts under 8 internationally recognizable brands but "Star Brands". implementation; Managing the global renowned brands namely Westin, Sheraton, LVMH's philosophy of extraordinary conglomerate; Decentralized organisation; St. Regis, The Luxury Collection, Le quality and staying at top position in any Mergers and acquisitions; Synergy; organic Meridien, Four Points by Sheraton, W and area it chose to operate earned it the title growth; competition; Brand Portfolio aLoft. of the leader of the luxury goods industry. management; Leadership; Creativity After North America and Europe, Asia The clientele to which LVMH catered to emerged as the most dynamic region were very elite and rich, who could afford fuelling growth in hotel industry. In Asia, to buy the highly priced LVMH products. Lukoil : Russia’s Largest Oil China was considered the hottest With increasing incomes, the number of Company’s Global Strategies destination due to its booming economy, people falling in the category of elite emergence as one of the leading tourism increased rapidly, expanding the market LUKOIL, one of the worlds' leading destination and the upcoming Olympic for LVMH. Being a luxury goods company Games to be held in Beijing in 2007. vertically integrated Russian oil and gas 20 www.ibscdc.org

company with the business of exploration, second largest with 63,028 route Industry Railways

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S production and marketing of oil, gas and kilometers, 108,706 track kilometers and Reference No. GRS0240A II – Y G E T A R T S petroleum products, was the second largest busiest rail networks in the world. IR was Year of Pub. 2006 privatised oil and Gas Company after the world’s largest commercial utility Teaching Note Not Available Exxon Mobil with 20.3 bboe (billion barrel employer, with more than 1.6 million Struc.Assig. Not Available of oil equivalent) proved hydrocarbon employees. reserve which accounted for 1.3% of world Keywords A legacy from the British rule, IR had been oil reserves, 0.4% of world gas reserves Indian Railways (IR); East India Railway and 18% of Russian crude oil production. a socio-economic entity, striving to achieve its justifiable economic existence. Committee; Operations of IR; Social LUKOIL was founded by Vagit Alkeperov, With the liberalization of Indian economy responsibility versus profitability; who had strong political support from since 1991, the policies of the railways Bureaucracy; Operational inflexibility; Russian Government. With an enormous became obsolete. To become economically Railway board; Subsidized fares; Growth retail presence in the US and huge refining viable in the competitive era, IR faced Strategies Case Study; Social obligation capacity, oil and gas reserves out side of hurdles like duality of objectives, hazards cost; Commercialisation of Indian Russia, it aimed to transform itself over of safety considering its organisational size Railways; IR (Indian Railways); Views on the next decade into one of the world’s and the emergence of competition from privatization of Indian Railways; Railway largest fully integrated energy company. other means of transport like airlines, finances; Partition of India; Pension The company planned to double its output particularly low cost airlines. liability of Indian Railways; Railway zones of oil and gas together with substantial revenue growth in order to become next In 2001, IR was written off as the oil superpower in the world. burgeoning responsibility for the Global Wine and Spirits Giant government. Experts opined that by The case mentions the competitive obliging to political and social agendas, IR Pernod Ricard’s Growth strategies adopted by the company in order failed to utilize its capacity and achieve its Strategies to secure its leadership position. The case profit goals. Amidst criticism, IR stabilized France-based Pernod Ricard S.A. though highlights important strategies of LUKOIL its financial situation in 2002-03. was a major player in alcoholic beverages starting from privatization to its In 2004, Lalu Prasad Yadav (Lalu), a but lagged behind the market leader Diageo geographical expansion and its growth in the wines and spirit market. Following strategy of acquisition of various famous political leader, was given charge of Ministry of Railways, one of the most the acquisition of Seagram in 2001 and companies not only in the Russia but in Allied Domecq in 2005, Pernod Ricard the periphery of Russia. sought after portfolios in the government owned utilities of India. He proved to be a grew from a local company to an dark horse, as under his leadership, IR international company. The stagnant Pedagogical Objectives adapted and implemented cost effective domestic market and growing international demand, forced Pernod Ricard to make it • To understand Russia's oil and gas strategies to raise the revenues. For the big in wines and spirit market. industry first time the passenger fares and freight rates were not hiked to increase revenues After the successful acquisition of Allied • To understand Lukoil's growth strategy but the, per train load was increased by 4- Domecq, Pernod Ricard aimed to become as a market leader of Russian oil and gas 5 tonnes on selected tracks to yield higher No. 1 player. Besides expanding into the industry revenue. Such measures combined with a growing markets like UK and US with its • To analyse the effect of political factor "value for customer" philosophy and Premiumisation strategy, the company also on private companies of Russia considerations of IR as an economic aimed to explore the emerging markets of enterprise, were elementary in bringing Asia with its decentralized approach. • To understand the benefits of about Indian Railways' turnaround. The Despite a promising outlook, in terms of geographical expansion on the growth Railway Budget 2006-07 had great plans sales and market share, a shadow loomed of Lukoil for expansion and growth for railways and over Pernod’s future, with the retirement a landmark Dedicated Freight Corridors. • To understand Vertical integration in oil of Chairman Patrick Ricard in 2007 and gas industry. But the critical question was with the without an obvious family successor had change in political scenario or with the put the company in a dilemma. Industry Oil & Gas end of tenure of the incumbent The case traces the journey of Pernod Reference No. GRS0241A government, would IR still be able to sustain Year of Pub. 2007 Ricard and highlights the organic and its unprecedented performance in the inorganic growth strategies of the Teaching Note Not Available future? Struc.Assig. Not Available company. The case explores the various strategies the group had adopted for its Keywords Pedagogical Objectives growth with its opportunities and challenges in store for the company. With LUKOIL Oil; Gas; Privatisation; Growth • To understand the dynamics of rail all its efforts for expansion, would Pernod Strategies Case Study; Expansion strategies; transport industry in India and the Ricard be able to realise its dream to be No. transformation strategies; Exploration; monopoly of Indian Railways Production; Gas Strategy; Marketing; 1 before Patrick Ricard retired in 2007? Market Leader • To analyse the conflicting goals of Indian Railways as a public utility organization Pedagogical Objectives vs a self run profitable organisation • To analyse the market entry and market Indian Railways : The Juggernaut • To scrutinize the leadership roles played penetration strategies in emerging Turns Around by various politicians and its impact on markets the growth and development of Indian Indian Railways (IR), a state-owned railway Railways • To understand the competitive strategies company, had a near monopoly in the and strategic shift of Pernod Ricard country’s rail transport. It was also the • To debate on the future strategies of Indian Railways • To study market leader and challenger strategies. 21 www.ibscdc.org Industry Alcoholic Beverage Industry Diversified Conglomerate Keywords Reference No. GRS0239A Reference No. GRS0238A Accor hotels; hospitality and travel; growth Year of Pub. 2006 Year of Pub. 2006 Teaching Note Available Teaching Note Available strategy; multi-segment strategy; re- Struc.Assig. Available Struc.Assig. Available branding; repositioning; Growth Strategies Case Study; changing customer needs; Keywords Keywords Ansoff product - market expansion grid; merger & acquisitions; strategic alliances; Pernod Ricard; Business Strategy; Strategic Tata Group (TATA); Globalisation; product development; market Management; Mergers and Acquisitions; Diversification; Conglomerate; Mergers development; market penetration; asset Organic Growth; Inorganic Growth; Market and Acquisitions (M&A); Inorganic and management strategy; positioning Entry Strategies; Market Development Organic Growth Strategies; Expansion Strategies; Competitive Strategies; Growth Strategies; Strategies for Globalisation; Strategies Case Study; Globalisation; Market Challenges for Globalisation; Domestic Expansion Strategies; Horizontal Market; Tata Steel; Growth Strategies Case eBay in China – A Difficult Bid Growth Strategies Growth Strategies Growth Strategies Growth Strategies Growth Strategies Integration; Alcoholic Beverages; Wine Study; Tata Tea; Tetley; Tata Motors; By 2007, eBay Inc., a leading online and Spirits; Champagne; Sparkling Wine; Indian Hotels (Taj Hotels and Resorts); service provider offered online goods and Allied Domecq; Seagram; Second largest CSN; Corus Group; Ratan Tata; Leadership services, payments services and wine and spirits company; Diageo; communication offerings to a diverse Decentralisation; Premiumisation; cross community of individuals and businesses. functional structure French Hotel Group Accor’s Growth Strategies eBay was present in more than 18 countries. It entered in one of the most Global Aspirations of TATA This case presents an overview of the Accor challenging and fast growing market of Hotel Group, a French multinational, China in 2002. Though the market offered Mumbai based Tata Group (TATA) one of having presence in more than 100 huge potential for growth, eBay the oldest and largest Indian conglomerate countries with 4,094 hotels (480,036 encountered many hurdles. eBay was the started its journey in 1868, as a private rooms) involved in two core activities: pioneer in the online auction business in trading firm. Consequently, TATA became Hotels and services. It is case is hotels only. China through its acquisition of Eachnet a diversified conglomerate operating in 7 Accor Hotels, evolved from single hotel which controlled 80% market in China for business sectors with 96 operating chain - Novotel, adopted many growth C2C transactions. Though eBay had companies, traditionally led by Tata Family strategies to achieve its vision to become captured the online auction market in the members. Though very successful in India market leader in economy and midscale U.S., it made the mistake of using its TATA did not have any global footprints segment and major player in upscale American model in Asian countries. until 21st century. Chairman Ratan Tata segment. Since its inception, Accor In 2003, the popular Chinese B2B Web steered the group on to the global route. initialized many moves like M&As for portal Alibaba.com started Taobao.com, a TATA particularly began to implement its growth and faster entry, joint venture, consumer auction site and became eBay’s globalization plans in 2000 with the multibrand strategy - segment centric biggest rival. eBay lost vital market share acquisition of UK based Tetley tea. The branding, rebranding, identify new to Taobao. In 2006, eBay accounted for group followed this move with other big innovative concepts in products, product only 29% as compared to Taobao's 67% in overseas acquisitions and investments like modifications, line extension, the Chinese online auction market. In Korean Daewoo Commercial Vehicles, diversification, targeting new segments like 2006, eBay decided to change their Thailand based Millennium Steel, US based emerging countries (geographical approach in China closing their foremost 8' O'Clock Coffee and hotel Ritz-Cartlon. segmentation) etc. In November, 2006 it proposed to acquire website in China and partnering with a local UK based Steel maker Corus Group with This case can be used to address two issues. associate, Tom Online Inc., a popular bid amount of $8.1 billion. First, what is the core strategy among all Internet portal and wireless operator based strategies adopted by Accor? The second in Beijing. eBay formed a minority stake However, the deal to acquire Corus was concerns how well this strategy fits into joint venture with TOM Online. not over, as CSN, a Brazilian Steel the Ansoff's product - market expansion The case discusses the challenges eBay Company proposed a counter bid to acquire grid, which includes market penetration, faced in China for its growth. the same. Besides, the group also faced market development, product critisims of overpaying for the acquisitions development and diversification. and held an image of un-multinational in Pedagogical Objectives the domestic market. Pedagogical Objectives • To understand the competitive e- commerce industry in China The case talks about the globalizing • To analyse its segmentation strategy, aspirations of TATA, the challenges ahead Multi-brand strategy and Re-branding • To discuss the entry and growth strategies in the path and the leadership issue, strategy of eBay in China following Chairman Ratan Tata's intention to retire in 2007. The case also traces the • To understand Asset Management • To argue when the first mover might journey of TATA from domestic company Strategy have disadvantages to would be global entity. • To understand the growth and global • To discuss the future strategies of eBay expansion of Accor Hotel Group in China. Pedagogical Objectives • To understand Ansoff's product - market Industry e-commerce • To understand the strategy of expansion grid. Reference No. GRS0236A globalisation Year of Pub. 2007 Industry Hospitality Industry Teaching Note Available • To understand mergers and acquisitions Reference No. GRS0237A Struc.Assig. Not Available as an expansion strategy. Year of Pub. 2006 Teaching Note Available Struc.Assig. Not Available 22 www.ibscdc.org

Keywords Industry Dairy and Food Products Industry Social Networking Sites

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S Reference No. GRS0235A Reference No. GRS0234A II – Y G E T A R T S Offshore outsourcing; Service operations; Year of Pub. 2007 Year of Pub. 2006 Managing risk and fraud; Service Teaching Note Available Teaching Note Available performance improvement, eBay; China; Struc.Assig. Not Available Struc.Assig. Not Available Taobao; e-Commerce; Growth Strategies Case Study; On-line auction; Alibaba.com; Keywords Keywords Yahoo!; Competition; Revenue model; On- line payments; Emerging markets; Danone Group; Dannon Inc.; Probiotic Cyworld; SK Communications; Social Marketing strategy; Competitive foods; Activia; functional foods; Growth networking site; Global expansion strategy; strategies; Asian markets; Chinese Internet Strategies Case Study; US yogurt market; Demographic of US Social Networking market cultural shift; American food culture; Market; MySpace; Market-entry shifting food habits; acculturation; product strategies; Culture-oriented market roll-out; launching strategies; changing penetration; Localisation as global customer needs expansion tool; Privacy policies of social Danone's Probiotic Yogurt networking sites; Business model; Growth Activia : Latching on to the Strategies Case Study; Monetizing of social Health Bandwagon Cyworld, South Korea’s Social networking sites; Consumer behaviour; South Korean Market Leader; Major French food giant, Danone Group, is a world Networking Site’s Global players in US Social Networking Sites (SNS) leader in bottled water by volume and fresh Expansion Strategies industry dairy products and second in biscuits and cereals, with presence in over six Cyworld, a South Korean social networking continents. Group's sales growth increased site started its operation in 1999, since its 8.1% from euro 13,024 million in 2005 to inception it captured 40 per cent of the Castrol India Limited in 2006 euro 14,073 million of which Europe South Korean market. It started wooing the tech-savvy youth in United States in Castrol India Limited (Castrol), subsidiary contributed 60.98% in 2006. Danone of UK based British Petroleum group (BP) decided to roll-out its tried-and-tested 2006. In South Korea, a world leader in broadband usage rate 96% of people in the was one of the active players in the retail product named "Activia"-yogurt with an automotive lubricant market in India in active probiotic culture in US in 2006. 20 - 29 age groups were Cyworld members and in China, the site recorded nearly 3.5 2005. It had capacity to produce 300 Americans ate less yogurt compared to million registered members since its launch million tonnes per annum of lubricant. Europeans and preferred fruits and in June 2005. From a minor oil company with market vegetables and relied mainly on the tablets, share of 6% in 1991, Castrol grew to piles syrups etc. Dannon Inc. (US subsidiary In 2005, Cyworld built its global strategy become second largest lubricant company of Danone group) faced a great challenge to deploy the Cyworld brand regionally and with market share of 22% in Indian as Americans' food habits resulted into a accordingly launched its services, first in lubricants market in 2005. Castrol was also cultural battle and minimal awareness about China and then, Japan and Taiwan. After a market leader in the retail automotive probiotics. Dannon invested heavily to announcing its US expansion plans in lubricants segment. In BP's worldwide create awareness and generate positive October 2005, Cyworld officially launched operations, Castrol in India was second in response to such cultural foods, educate its US version in August 2006. terms of volume of lubricants sold after US, and third in terms of profit next to US them about health benefits offered by Analysts were skeptical about the success and Germany. Activia. They initialized many of Cyworld in the US, especially with promotional activities like direct mailing, MySpace, a US based social networking site In 2005, Castrol initiated a new advertising on TV, radio, sponsored survey, controlling the market. MySpace communication and re-launch exercise, internet marketing, free samples, etc. It dominated the US social networking scene laying emphasis on the liquid engineering had also faced difficulties in designing the with about 123 million users and reinvented concept, and technology upgradation. The packaging and making the advertisement an internet culture since its inception in company repositioned products on value in line with the FDA (Food and Drug July, 2003. But as Cyworld was backed by proposition, filled up gaps in the product Administration) and FTC (Federal Trade the deep pockets of South Korea's SK range and emphasized on customer benefits Commission) guidelines. Telecom Co., it could carve out a lucrative in each and every application. Castrol also The case also discusses American food spot in American market also. introduced computerized vehicle service centers and entered into strategic marketing culture, their foods, shifting of eating habits The case describes Cyworld's growth and tie-ups with original equipment and impact of FDA and FTC guidelines. expansion strategy, particularly in the US. manufacturers (OEMs). Castrol had served But analysts were debating whether the It ends with a debate whether Cyworld can over 30 million customers and expected tried-and-tested product rollouts really make a dent in MySpace dominated US to add another 50 million customers in work, all times? Would it be possible for social networking market. Danone to cultivate success based on 2006. Would Castrol be able to sustain its probiotics targeting niche market? marketing advantage with repositioning in Pedagogical Objectives Indian lubricant market? Pedagogical Objectives • To understand dynamics of the social networking business Pedagogical Objectives • To discuss American food culture, shifting of eating habits and impact of FDA and • To understand the global expansion • To understand the Indian Lubricant FTC guidelines strategy of social networking site market • To discuss the challenges faced by • To study the growth strategies of • To analyse the marketing strategies of Danone in America Cyworld in US market Castrol in India • To discuss whether Danone continue to • To understand the competitive scenario • To discuss the importance of brand win the hearts of consumers through in social networking industry. repositioning as a marketing strategy. their troubled stomachs in future?

23 www.ibscdc.org Industry Lubricant Keywords • Various growth strategies of GE. Reference No. GRS0233A Al-Jazeera Arabic; Al-Jazeera English; Industry Diversified Conglomerate Year of Pub. 2006 Industry Teaching Note Not Available International; Controversies; launch; Reference No. GRS0231C Struc.Assig. Not Available challenges; company image; new markets; Qatari Emir; Arab new network; Growth Year of Pub. 2007 Keywords Strategies Case Study; Strategy Teaching Note Available management; Entry strategies; Business Struc.Assig. Not Available Castrol India Limited; India; petroleum; management; Opposition from US; Osama lubricant; market leader; retail automotive bin Laden; US government; British Keywords lubricants segment; Growth Strategies Case government; Afghanistan; Israel; media GE; GE Aircraft engines; GE-CFM; Snecma Study; British Petroleum; liquid network; entry barriers; differentiation; engineering; re-positioning; value Motoeours; Rolls Royce and Pratt and BBC; CNN; Western media companies; 9/ Whitney; GE Aircraft Engines Turbines; proposition; marketing tie-ups; product 11 attack; 11 September attack range; value proposition GEnx Engines; Growth Strategies Case Study; GE Health care; GE Ecomagination; Growth Strategies Growth Strategies Growth Strategies Growth Strategies Growth Strategies GE Academy; GE Advanced Materials; GE Manufacturing : Forging Growth as a process-Jeffrey Immelt; GE Al Jazeera English : Will it make Ahead in Asia's Globalising Plastics; GE Insurance; Swiss Re-Insurance its mark? Markets Doha, Qatar based, Arabic television General Electric (GE) is a 125 year old network Al-Jazeera launched an English- Apple's Future – Expansion into multi-business company and a global player language news and current affairs television Different Product Lines in plastics, insurance, finance, healthcare, channel, Al-Jazeera English (AJE) on 15th infrastructure and heavy engineering. It has November 2006. Al-Jazeera had Arabic Founded on April 1, 1976 by Steve Jobs, been making significant progress in all its news and current affairs television channel Steve Wozniak and Ronald Wayne, Apple divisions. However, its financial of the same name and several other Inc. is an American consumer electronics performance declined in the plastics and specialty television channels. The Arabic corporation, one of the most renowned insurance business. The insurance business news channel Al-Jazeera (Al-Jazeera companies in the world for computer has been making losses for the past five Arabic) was known for its up-front style, technology. It is headquartered at years. The performance of GE plastics was frank journalism and its readiness to discuss Cupertino, California. Apple develops, sells fluctuating since 2003 and there was a taboo issues. Thereby Al-Jazeera Arabic and supports a series of personal computers, decline in the year 2006. It was then decided entered into several controversies and was portable media players, computer software to sell the insurance division to Swiss- a thorn for several governments from and hardware accessories. The company's Reinsurance and also sell the plastics Washington to Riyadh. Al-Jazeera English best-known products include the division. The company underwent a radical was broadcasted from studios in Doha, Macintosh/Mac line of personal computers, change when Jack Welch became the CEO Kuala Lumpur, London and Washington the Mac OS X, and the iPod line of portable in the year 1981. His launch of the six DC, in addition to 20 other countries. music players. It also sells audio books, sigma growth initiative proved to be iPod games, music, music videos, TV shows AJE was a hope for giving the Arabs a global successful. The shifting of the GE's focus and movies on its online iTunes Store, and voice as it was the first English Channel from service to manufacturing started then. announced a smartphone, the iPhone, and operating from the Middle East. But, some Jack Welch's successor Jeffrey R. Immelt the Apple TV in January 2007. Its questioned in the Middle East whether the introduced a process to generate consistent worldwide annual sales in the fiscal year new channel would be as blunt as its Arabic organic growth called "Growth as a 2006 (ending September 30, 2006) was channel. Above all with the negative press Process". By 2006, it was reported that US$19.3 billion. Apple pioneered a gained by its Arabic channel would it be GE was concentrating mainly on its revolution in the industry and established able to pose a challenge to its western infrastructure business. GE has become itself as market leader. With a strong brand competitors and gain acceptance in western firmly established as a world leader in the image, it has cultivated an exceptionally countries? aircraft engine manufacture with higher loyal customer base. It has taken care to level of sales and operating profits than its differentiate itself from its competitors The case discusses about the various issues competitors. through its aesthetic design and innovative and challenges faced by Al-Jazeera in its features, for its products. new venture AJE. GE is targeting the Asian and South East Asian Markets as it finds a lot of scope for The following case illustrates the products Pedagogical Objectives growth there. It has been predicted that of Apple Inc. since its inception and its 60% of its growth over the next decade entry into consumer electronics with new • To understand the controversy of Al- would be from these developing markets. products. The future of Apple looks to Jazeera Arabic channel It finds a bright future in these markets change completely along with its name and which will help it keep pace with • To study the importance of brand image also the new ventures it has entered into. globalisation. and its expansion in channels industry Pedagogical Objectives • To understand the challenges faced by Pedagogical Objectives Al-Jazeera in the US • Product expansion and development • GE's Business Divisions • To understand the competitive scenario • Growth strategies of an established and its impact. • GE's changing priorities in globalising player into new markets • Various growth strategies of GE. • GE's dismal performance in the plastics • Future strategies for success for a and insurance divisions computer maker Industry Media (News) Reference No. GRS0232A • The trends in Asian markets and GE's • Challenges and Competition faced by Year of Pub. 2007 reasoning in venturing into these Apple in its new ventures. Teaching Note Not Available markets Struc.Assig. Not Available 24 www.ibscdc.org

Industry Computer Industry Pedagogical Objectives Pedagogical Objectives

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S Reference No. GRS0230C II – Y G E T A R T S • To give a detail about the European • To discuss the reasons behind the Year of Pub. 2007 Teaching Note Available automobile industry, trends and patterns meteoric rise of Sun Struc.Assig. Not Available • To understand the segmentation- • To discuss as to how the company failed Keywords targeting and positioning strategy in to perform amidst rising competition automobile industry and threats particularly from Microsoft. Apple Inc.; iPhone; iPod; Steve Jobs; Steve Wozniak; Macintosh/Mac; Apple TV; • To understand the different segment in Industry Servers and Mainframes Consumer Electronics; iTunes; Product automobile industry Reference No. GRS0228K Year of Pub. 2006 line; Growth Strategies Case Study; New • To understand the marketing strategy Teaching Note Not Available Product Development; Apple's Future adopted by automobile company to Struc.Assign. Not Available launch a new model Keywords • To understand the innovative Mercedes: In Search of Growth promotional strategies to make a brand Sun Microsystems; Operating system; In 2005, according to the survey conducted successful one UNIX; Hewlett-Packard; Microsoft; Dell; by Interbrand and J P Morgan Chase, IBM; Dotcom; Server; Solaris; Hardware; • To understand the key success factors Intel; Linux. 'Mercedes', the brand synonymous with that make a particular auto brand a quality in the global automobile industry, success story. slipped to the 11th position from its previous year's ranking at the 10th place. Industry Auto Manufacturing KFC in Asia In the same year, Daimler Chrysler, owner Reference No. GRS0229K of the Mercedes brand, planned to withdraw Year of Pub. 2005 In 1986, PepsiCo acquired Kentucky Fried 1.5 million vehicles from the US and Teaching Note Not Available Chicken (KFC) and it started operating European markets due to quality problems. Struc.Assig. Not Available under PepsiCo’s global restaurant company, Along with problems in quality, the Yum! Brands Inc, from 2002. KFC was a Keywords company also experienced a sluggish huge success in the US with its special growth rate in its premium segment, where Chryslers corporation; Five pointed star offering of ‘fried chicken’. Due to the it was facing severe competition from design; Growth Strategies Case Study; staggering growth of the US fast food Japanese auto makers, like Toyota, Nissan, Daimler-Benz AG; Daimer-Benz's industry, the company decided to go global. Honda and Mitsubishi. The company competitors; Daimler-Chrysler; VSP of the KFC’s first entry in the Asian market was launched Mercedes A class (popularly brand; Crisis in the European market; New in Japan in 1970. Initially the company known as the Baby Benz), which was an marketing initiatives of Mercedes; The faced some impediments, but eventually, instant hit in the European market. dilemma it turned out to be a profitable unit. By the Analysts predicted that this was the main end of 2004, KFC had opened 1159 outlets reason behind Mercedes' slip in brand rating in Japan. Its second foray in the Asian as Mercedes lost its exclusivity. The main market was in Malaysia in the year 1973. Sun Microsystems: A Case of dilemma therefore, was the tradeoff It was the first fast food multinational chain between product volume and exclusivity Missed Opportunities to enter into the Malaysian market. Being the first mover in Malaysia, KFC went on of the brand. Daimler Chrysler also wanted Sun Microsystems started its operations in to become the market leader. It entered to consolidate its presence in the emerging 1982, with an office in Santa Clara, US. China in 1987 and became an instant hit. Asian markets. Therefore, the popular Sun’s biggest break came in 1995, with the By the end of 2004, KFC had 1243 outlets Mercedes A class was unveiled in China and development of Java, a universal software in China alone. KFC ventured into India in Malaysia as well. The company further program that enabled its developers to write 1995 and started facing problems. Since introduced several innovative marketing a program in one language that could be then, it could not expand as much in India strategies, customer relationship run on any platform. The company netted as it had in other Asian countries. The case management practices and promotional huge profits during the dot com boom of analyses the various strategies applied by methods to enhance the visibility and late nineties when its expensive but high KFC in the three countries where it tasted presence of its premium 'Mercedes' brand performing servers (working on Solaris success. The case also analyses the reasons in the Asian countries, particularly in operating system and powered by SPARC behind KFC’s limited growth in India. China, South-East Asian countries and chips) were in great demand. However after India. A group of analysts also opined that its meteoric rise, Sun started losing out on the company's plans to consolidate its its business towards the end of the dotcom Pedagogical Objectives presence in the Asian market might not era in 2000-2001. During that period a succeed as envisaged. Though Asia was the • To understand the fast food market of number of dotcom and telecom companies Asia most lucrative market for Daimler went bankrupt; thus bringing in recession Chrysler, the premium segment was very in the world economy. As the demand for • To analyse KFC’s growth strategies in limited and the compact car segment high end products fell, Sun’s competitors various Asian countries already had a huge number of automobile started manufacturing and marketing • To discuss why KFC succeeded in some brands. The entry of premium players servers powered by low-cost Intel chips Asian countries while it failed in some (Rolls Royce, GM and BMW) in the niche and nearly free Linux operating system. other category would make the niche segment Sun however failed to read customer’s mind overcrowded and fiercely competitive. and continued pushing its high end products, • To debate about KFC’s future in Asia. Industry experts were skecptical whether although much cheaper versions introduced 'Mercedes' could maintain its exclusivity by the competitors were then already Industry Fast food & quick service as well as its growth in terms of production available in the market. This lead to a sharp resturants volume fall in profit & market share of the Reference No. GRS0227K company. Year of Pub. 2006

25 www.ibscdc.org Teaching Note Not Available became one of the largest cruise lines in • To analyse the restructuring strategies Struc.Assign. Not Available the world. In order to extend its services of Kraft Foods to North America, the world’s largest cruise Keywords market, it acquired the Norwegian Cruise • To understand the importance of being in touch with customers KFC; Fast food industry; McDonald’s; Line (NCL) in 2000. Though after the Pizzahut; Growth. takeover Star Cruises was able to increase • To understand the significance of its revenues, its profits started to slide successful new product launches. resulting in a cumulative loss of US$193.5 million between 2000 and 2004. However, Industry Food and Beverage Toyota: Aiming for Larger the company management was convinced Reference No. GRS0224K Presence in Europe that the investment in NCL would pay off Year of Pub. 2006 in the long run and had ambitious future Teaching Note Not Available In the early 2000s, Toyota, the second- Struc.Assign. Not Available largest automobile manufacturer in the world plans. after GM, was planning to expand its small Keywords Growth Strategies Growth Strategies Growth Strategies Growth Strategies Growth Strategies car range in Europe. Despite its long presence Pedagogical Objectives Power brand; Growth strategy; Kraft in the continent the company could not gain • To discuss the growth strategies of Star Foods; Retail Brand. a significant share of the European auto Cruises market. The company realised that it was due to growing consumer preference for • To analyse how Star Cruises grew to smaller and cleaner cars. Another major become the third largest cruise line the Kodak: The Changing Strategies factor, according to the company, was that world the styles and looks of the Asian car models By 2000, Kodak, the company that • To develop an understanding of the Asia- did not appeal to the European customers. pioneered the imaging industry by Pacific as well as global cruise industry In order to gain a larger share of the market, inventing easy-to-use cameras and photographic film, was in deep crisis. With Toyota localised it European operations by • To understand the role of Star Cruises in the advent of digital cameras in the mid setting up manufacturing facilities, engine shaping the Asia-Pacific cruise industry. plant, design studio etc. within the continent. 1990s, Kodak found its sales declining as It also launched several small car models to Industry Travel Agencies & Services consumers preferred the new cameras, attract the Europeans. Reference No. GRS0225K which did not use films. The growing Year of Pub. 2006 popularity of digital cameras led to a slump The case discusses in brief Toyota’s history Teaching Note Not Available in film sales, which was a major revenue and its European operations along with the Struc.Assign. Not Available generator for Kodak. Additionally, the new automobile market of Europe. The case technology attracted a lot of competition also highlights how the company is trying Keywords from traditional as well as new players. In to streamline its European business. Finally, Retail; Super Market; Wal-Mart; Tesco; order to maintain its lead in the industry, it raises a question regarding Toyota’s Carrefour; Chinese Retail Market. Kodak decided to adopt the new technology ability to boost its market share in Europe. and reinvent itself from a camera and film manufacturer to a digital imaging company. Pedagogical Objectives The case discusses the evolution of the Kraft Foods: Restructuring for digital camera market and the shrinking • To discuss Toyota’s strategies to increase Growth film business. It also highlights the strategies its market share in Europe adopted by Kodak to embrace the new In January 2006, Kraft Foods Inc., the technology to sustain its leadership • To develop an understanding of the world’s largest branded food and beverage position. automobile market of Europe company, announced a major restructuring plan as a cost-cutting measure. Starting from • To analyse how Toyota sensed customer Pedagogical Objectives demands and localised its design, the early 2000s, the company’s profit production and marketing margins shrank due to escalating costs and • To discuss the evolution of Kodak from consumer focus on low calorie foods. In a film company to a provider of digital • To understand the importance of new order to deal with the situation, Kraft imaging systems product launch. launched a restructuring plan in 2004. While the first plan was underway, the company • To understand the gradual decline of Industry Auto Manufacturing announced another round of restructuring Kodak’s film business Reference No. GRS0226K in 2006 and proposed to close several plants • To understand the evolution of digital Year of Pub. 2006 and cut jobs. It also planned to reorganise technology Teaching Note Not Available its product portfolio. This led the analysts Struc.Assign. Not Available to wonder whether the company’s • To assess the turnaround of Kodak by Keywords restructuring plans would pay off or the new product development company needed to introduce new products. Toyota; Small car; European car market; The case starts with a brief history of Kraft • To debate whether Kodak would succeed Compact car; GM; Ford; hyundai. Foods and moves on to the problems faced in regaining its status. by the company. It then discusses both the Industry Photographical & Optical restructuring plans of the company. The Equipments Star Cruises: The Growth concluding section poses a question about Reference No. GRS0223K Strategies how successful these plans would be in Year of Pub. 2006 steering the company to healthy profits. Teaching Note Not Available The Genting Group of Malaysia, which was Struc.Assign. Not Available engaged in hotels and resorts business, Pedagogical Objectives incorporated Star Cruises in 1993. Star Keywords Cruises operated cruises primarily in the • To know the problems faced by Kraft Kodak; Fuji; Digital Camera; Disposable Asia-Pacific region. By the year 1999, it Foods, the second-largest food company in the world camera; Canon; Nikon; Sony. 26 www.ibscdc.org

Vodafone – Rethinking Global • To discuss how short-term promotional Deutsche Bank: Aiming Greater

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S Strategy activities could be used in long-term brand Heights building initiatives Vodafone Group Plc. (Vodafone), the In 2005, Deutsche Bank, the second-largest leading mobile telecommunications • To discuss the US retailing industry and investment bank in the world by revenue, company, followed a twin strategy of global the seasonality associated with it registered net revenues of •25 billion and expansion and offering mobile-only • To understand the competitive forces was able to reach its set target of pre-tax service, to achieve huge economies of scale. in the US departmental stores industry return on average active equity of 25%. However, its strategy failed in two of its Based on the continuous restructuring and important markets – the US and Japan, • To understand the US shopping trends cost-cutting initiatives of its CEO, Josef where it had to adopt the local technology in the festive season and the consumer Ackermann, Deutsche Bank was able to bring to suit the market demands. Vodafone was psychographics associated with it. itself back to profitability. In 2006, it was left isolated when almost all the telecom ranked No.38 in the BusinessWeek’s Industry Retail Department Stores operators offered a combined package of rankings for Europe’s top performing Reference No. GRS0221K fixed & mobile telephony, broadband and companies against a ranking of 126 in 2005. Year of Pub. 2006 television services. Teaching Note Not Available The case focuses on the various The case, while highlighting Vodafone’s Struc.Assign. Not Available restructuring initiatives of its CEO and its global strategies, discusses their pitfalls and consequences on the business model and Keywords questions their viability in the long run. profitability. Saks Fifth Avenue; Promotion; holiday Pedagogical objectives Strategy. Pedagogical Objectives • To critically analyse Vodafone’s • To discuss the restructuring initiatives globalisation strategy vis-à-vis undertaken by Deutsche Bank to restore localisation strategy Nokia: Surging Ahead in China its profitability • To discuss the potential loopholes in By 2005, Nokia Corporation (Nokia) was • To understand the changing landscape ‘bigger is better’ strategy and the the leading mobile phone manufacturer in of the European banking industry after drawbacks of economies of scale China with 31% market share. China was the introduction of Euro anticipated to emerge as the single largest • To discuss the viability of Vodafone’s market for the company, with an estimated • To understand the optimum mix of ‘mobile-only’ strategy, when majority mobile subscriber base of 630 million by business portfolio of the other operators were focusing on 2010. In its efforts to surge ahead of its bundled offering • To discuss the business model of competitors, Nokia offered inexpensive Deutsche Bank and its sustainability in • To understand the changing dynamics phones for the mass markets without the long-run. of the mobile market and the technology compromising on the quality. It also associated with it. restructured its sales force and reorganised Industry Banking its distribution channels to reach the low- Reference No. GRS0219K Industry Wireless network operators end customers in the rural markets. Year of Pub. 2006 Reference No. GRS0222K Teaching Note Not Available Year of Pub. 2006 The case, while providing an overview of Struc.Assign. Not Available Teaching Note Not Available the mobile industry in China, discusses the Keywords Struc.Assign. Not Available strategic moves of Nokia to emerge as the undisputed leader in the country. Keywords Deutsche bank; invest banking; Personal asset and wealth management. Vodafone; CDMA; GSM; 3G. Pedagogical Objectives • To understand the localisation strategy as applied by Nokia in China Carrefour in 2004: Managing US Retailing: Saks Fifth Avenue’s • To discuss the initiatives taken by Nokia Globalization Holiday Strategy to tap the low-end market segment and In fiscal 2004, Carrefour, the largest retailer In December 2004, the total sales of Saks exploit the huge growth potential in in Europe and second-largest in the world, Inc., a departmental store, increased by China registered a 14.9% decrease in the net profit. 7.1% compared to the previous year. The • To understand the mobile phone industry Carrefour began to under-perform in some company attributed this seasonal surge, to in China of the foreign markets and the company’s its promotional campaign, particularly the CEO, José Luis Duran, decided to withdraw Holiday Snowflake Spectacle programme • To discuss the viability and the potential from these markets and concentrate only introduced in the flagship store of Saks risks involved in the introduction of on those, where it was among the top three. Fifth Avenue. The campaign also aimed to mobile phones for the masses and the build the brand image of Saks. consequent brand dilution. The case, while highlighting on the challenges faced by Carrefour in various The case, along with highlighting the Industry Wireless telephone handsets foreign markets, also focuses on the holiday strategy of Saks Fifth Avenue, also Reference No. GRS0220K initiatives taken by the company to restore gives an overview of the competitive Year of Pub. 2006 profitability and global competitive landscape of the US retailing industry. Teaching Note Not Available position. Struc.Assign. Not Available Pedagogical Objectives Keywords Pedagogical Objectives • To discuss the promotional activities of Nokia; China; Multimedia; Motorola; • To understand strategic concentration Saks Fifth Avenue to maximise seasonal Samsung; Mobile services. and divestment of resources to maximise revenue revenue 27 www.ibscdc.org • To understand the French retail industry Carrefour China: A Success Story • To discuss the competitive scenario therein. • To discuss the initiatives taken by in Retailing Carrefour to reorganise its business Carrefour, the world’s second-largest Industry Memory Chips and Module portfolio and restore profitability retailer, entered the Chinese retail market Reference No. GRS0215K Year of Pub. 2006 • To understand the localisation strategy in 1995. With less than five retail stores Teaching Note Not Available as applied by Carrefour. in 1995, by 2006, the company had expanded its operations to 73 Struc.Assig. Not Available Industry Grocery, Retail hypermarkets across 29 cities, along with Keywords Reference No. GRS0218K its Champion supermarkets and Dia Year of Pub. 2006 convenience stores. In fact, in the same Sandisk; Toshiba; samsung; Flash Memory; Teaching Note Not Available year, it was the largest foreign retailer of SD and Multimedia cards. Struc.Assign. Not Available China. The case discusses how the company acclimatised itself to the Chinese Keywords

Growth Strategies Growth Strategies customers’ tastes and preferences. It Growth Strategies Growth Strategies Growth Strategies Palm’s Growth Strategies Carrefour; Globalisation; Hyper-market; analyses the company’s innovative and Super-market; Discount store. flexible business strategies of localisation Palm Inc was the world’s largest supplier of management and low-price and high- of personal digital assistants (PDA’s). The quality of its goods. In addition, the case company was troubled by the declining provides a brief description of the emerging annual shipments of its products, which Adidas: Cashing In on World Cup and lucrative retail market of China. many analysts felt were primarily due to Football their slow technological obsolescence and The adidas Group (adidas), the second- Pedagogical Objectives increasing popularity of converged mobile largest sports goods manufacturer devices. The case provides the reader a • To discuss the growing retail market of worldwide behind Nike, was the official broad overview of the company, the China sponsor of the FIFA World Cup ’06, the existing market scenario, Palm’s growth greatest football tournament across the • To discuss Carrefour’s entry strategies strategies and the future outlook of its world. With the World Cup’s global TV in China business. and web audience exceeding that of the Olympics or any other sporting event, • To discuss the company’s innovative and Pedagogical Objective adidas aimed to capitalise on the four- flexible business strategies of localisation • To discuss the existing market scenario yearly sporting extravaganza and expected of management and low-price and high- handhelds and smart phones, Palm's to achieve record sales in the football quality of its goods, with respect to its growth strategies and the future outlook category. adidas expected to generate •1 Chinese rivals. of its business. billion in revenues from football in 2006 Industry Retail itself and aimed to benefit from the Reference No. GRS0216K Industry Personal Computers extensive visibility of the brand through Year of Pub. 2006 Reference No. GRS0214K World Cup-specific product offerings. Teaching Note Not Available Year of Pub. 2006 Teaching Note Not Available The case, while providing a broad overview Struc.Assig. Not Available Struc.Assig. Not Available of the company, discusses the promotional Keywords strategies of adidas and its competitor Nike Keywords for the 2006 FIFA World Cup. Retail; Super Market; Wal-Mart; Tesco; Carrefour; Chinese Retail Market. Palm; PDA; Smartphone; Handheld; Microsoft. Pedagogical Objectives • To understand the dynamics of sports Sandisk: Growth Opportunities in and sporting lifestyle market Emerging Markets Imation: A Leading Name in • To understand how promotional Data Storage activities and advertising campaigns are Sandisk Corporation was a leading supplier Imation was a leading developer of used in brand-building measures of adidas of flash memory cards. However, the company was troubled by the cyclical removable data storage products. The • To understand the viral marketing nature of its flash business. With rising demand for data storage was increasing strategy as applied by Nike competition, the flash memory market rapidly due to increasing availability of was witnessing an increasing degree of high-speed computers, proliferation of the • To critically analyse the pros and cons commoditisation. In the emerging business Internet and declining storage costs. The of Above the line (ATL) and Below the scenario, Sandisk found new opportunities case intends to provide the reader a broad line (BTL) communication strategy for growth in the MP3 player and cellular overview of the company, the market • To understand how event sponsorship is phone markets. This case provides the scenario in the removable data storage being used to reach to the mass market. reader with a holistic understanding of the business, and the various strategies that the flash memory business, the prominent company followed to increase its market Industry Footwear players therein, Sandisk’ s business profile share. Reference No. GRS0217K and its growth strategies. Year of Pub. 2006 Pedagogical Objectives Teaching Note Not Available Pedagogical Objectives Struc.Assign. Not Available • To discuss the market scenario in the • To discuss the global flash memory removable data storage business Keywords business • To discuss the various strategies that the Adidas; World Cup Football; Nike; Reebok; • To discuss Sandisk’s profile as the number company followed to increase its market Promotion Management; Celebrity two player and its future growth share. endorsement. strategies 28 www.ibscdc.org

Industry Data Storgae Devices Natsteel: The Growth Catalyst in Teaching Note Not Available

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S Reference No. GRS0213K Asian Steel Industry Struc.Assig. Not Available Year of Pub. 2006 Keywords Teaching Note Not Available This case analyses the globalisation Struc.Assig. Not Available strategy of TATA Steel, the flagship of NatSteel; tata Steel; Tata Group; Primary INR 480 billion TATA Group and the steel making; secondary steel making. Keywords second largest steelmaker of India. TATA Imation; Storage; CD; DVD. Steel, with an annual capacity of 4.3 mtpa, was ranked 56th by World Steel Institute. The company had a plan to increase its Checkmate Mittal Steel: What production capacity to 15 mtpa, thereby Went Wrong (Part – B) Unocal Acquisition: Chevron’s becoming one of the top 10 steel th Growth Strategy On 26 January 2006, Laxmi Niwas Mittal, companies of the world. To fulfill its the chairman and CEO of Mittal Steel, On 4th April 2005, David O’ Reilly, the mission, the company chose to increase globally the largest steel maker made a bid CEO of Chevron Corporation announced the capacity of its existing facilities, set for Arcelor SA, globally the second largest that Chevron, the second largest petroleum up greenfield projects and acquired new steel maker. Mittal’s bid for the European company of the US (after Exxon Mobil) companies. Due to the emergence of South- crown jewel made entire Europe frenzy. had acquired Unocal, the ninth largest oil East Asian countries as the major steel Spain, France, Luxembourg and Belgium and gas company of US, for US$17 billion. consumers, it acquired Nat Steel to have government strongly opposed the deal. This acquisition was considered as one of an access to these markets. TATA Steel Arcelor choose to merge with Severstal, the most politicised corporate takeover had plans to manufacture primary steel at the largest steel maker of Russia. The case because both the US government and its plants in Jamshedpur and Orissa, (slated discusses what went wrong with Mittal steel, Chinese government were involved in the to start production from 2006), places how Severstal plan to leverage the merger deal. After this acquisition, Chevron having large deposits of iron ore. This with Arcelor and the strategic rationale became the fourth-largest oil and gas would help the company in transporting behind it. company globally and projected a growth the semi-finished products to the Asian of 5% during the period 2005-2009. markets and also producing and selling the Pedagogical Objectives However, both, the investors and industry finished goods. Apart from traditional steel analysts were sceptical about this • To discuss the bidding process involved manufacturing, the company also forayed projection as Chevron had a history of in an acquisition into value added steel products (automobile promising more than it could deliver. What steel and ferro chrome) to strengthen its • To discuss the trends, patterns of global are the problems that Chevron might face steel industry and consolidation as a in leveraging itself after the acquisition and presence in the global market and became a global company from a local one. The major strategy in fragmented steel how it planned to overcome these industry globally challenges. case study offers scope for discussing the trends and present strategies in the global • To discuss acquisition process of Arcelor, Pedagogical Objectives steel industry and how TATA Steel planned the largest steel company of Europe and to grow according to the recent trends. second-largest globally by Mittal Steel, • To discuss the trends and patterns of potential synergies and problems global oil and gas industry Pedagogical Objectives associated with the acquisition • To discuss the key success factors in the • To discuss the trends, patterns of global • To discuss how acquisition as a growth acquisition process for oil and gas steel industry and consolidation as a strategy help companies to consolidate industry major strategy in fragmented steel in fragmented steel industry industry globally • To discuss the value chain of oil and gas • To discuss the key factors which make industry • To discuss acquisition process of NatSteel an acquisition a successful one by Tata Steel, potential synergies and • To discuss the ‘upstream activities’ and • To discuss in details about the problems problems associated with the acquisition. ‘downstream activities’ in oil and gas of acquisition and how the maximum industry • To discuss how acquisition as a growth leverage can be gained strategy help companies to consolidate • To discuss the problems associated with • To discuss the bidding process and in fragmented steel industry any acquisition process and how the thereafter funding of an acquisition companies plan to mitigate those • To discuss the key factors which make • To discuss the concept of ‘white knight’, problems an acquisition a successful one ‘black knight’ and ‘poison pill’. • To discuss the bidding process in the oil • To discuss in detail about the problems Industry Steel and gas industry. of acquisition and how the maximum Reference No. GRS0210K leverage can be gained Industry Steel Year of Pub. 2006 Reference No. GRS0212K • To discuss, the bidding process and Teaching Note Not Available Year of Pub. 2006 funding of an acquisition Struc.Assig. Not Available Teaching Note Not Available Struc.Assig. Not Available • To discuss the value chain of the steel Keywords industry and primary steel making Mittal Steel; Arcelor; Consolidation; Keywords process and secondary steel making Nippon Steel; Severstal. UNOCAL; Chevron; growth strategy; process. global petrochemical industry; upstream Industry Steel operation; downstream operation. Reference No. GRS0211K Year of Pub. 2006

29 www.ibscdc.org Arcelor Mittal Group: Mittal's Year of Pub. 2006 Efficiency – GLOBE; Consumer Trends Master Stroke (Part – C) Teaching Note Not Available and Preferences; Decentralisation; New Struc.Assig. Not Available Product Development; Innovation; On January 26th 2006, Laxmi Niwas Mittal Segmentation; Targeting; Marketing (popularly known as LNM), chairman and Keywords CEO of Mittal Steel, the world’s largest Mittal Steel; Arcelor; Consolidation; steel company, made a bid for Arcelor SA, Nippon Steel; Severstal. (the world's second-largest steel company). Forever 21’s Acquisition of In the era, when consolidations and Gadzooks: Will it be an Engine acquisitions were common practices in the for Growth? industry, Mittal Steel’s new move was Nestlé's 'Nutritious' Growth : Peter Forever 21 Inc., is a US-based retail chain expected to help it in consolidating its Brabeck's Organisational that specialised in women’s apparel and presence more aggressively. The proposed Strategies accessories. In 2004, the company bought acquisition price of US$23 billion (bn), was At a time when the overall food market is Gadzooks, also a retail chain, despite its

Growth Strategies Growth Strategies the biggest in the global steel industry. The Growth Strategies Growth Strategies Growth Strategies bankruptcy status. The case provides a proposal was, however, strongly opposed growing sluggishly at 1.55 a year, Peter background note on the retail chains and by Arcelor’s management and the entire Brabeck, the CEO of the world's largest Forever’s strategy to leverage on Europe was divided on the issue. Since food-maker, Nestlé, had different plans. He Gadzooks’ brand despite analysts’ doubt Mittal Steel produced cologne, Arcelor, was too bold to see his company's growth over its future. being the producer of perfumes only, shoot up by 5%–6%, and that too excluding claimed that the merger between the two acquisitions. In a market scenario, where The case offers scope for discussion on companies was not possible. Even the the demand in the food industry was shifting brand positioning, strategies for retailing French government and Luxembourg from convenience food to nutritious food, and issues involved in takeovers. government strongly opposed Mittal Nestlé decided to focus on becoming a 'nutrition, health and wellness' company. Steel’s move. The concept of corporate Pedagogical Objectives xenophobia followed the move. While Nestlé made nutrition into a full-fledged LNM defended the move from the point business division, on par with other food • To make students understand the retail of view of the benefit of the global steel and beverage divisions. This case highlights markets industry and identified in it the geographic, how Nestlé nourished its corporate culture • The importance of brand positioning commercial, manufacturing and towards innovation through R&D in health and the choice of distribution channels operational synergies, Arcelor denied it. and nutrition, and developed strategic tools to reach a wider segment The French and Luxembourg governments, for consumer information and education, moreover, accused LNM for poor and marketing strategies. Acquiring the • Takeover and Acquisition strategies. management style and were afraid that the weight management company, Jenny Craig, acquisition would result in job loss. The was aimed at reinforcing Nestlé in the Industry Retail case study offers a scope for discussing the nutrition segment. However, Nestlé faced Reference No. GRS0207C rationale of the acquisition in the recent intense competition not only from other Year of Pub. 2006 global trends, the value chain of the industry manufacturers such as Unilever, Kraft, Pepsi Teaching Note Not Available and how Mittal Steel plans to leverage it. and Danone, but also from the growing Struc.Assign. Not Available popularity of private label brands of retailers The case study also allows the discussion Keywords of how Mittal Steel can leverage the like Wal-Mart, Carrefour and Tesco. acquisition by strengthening its position Forever 21; Gadzooks; Chang; Meyer; across the globe. Pedagogical Objectives Love 21; Wet Seal; Glendale Galleria; Accessories. • To analyse the emerging trends, and Pedagogical Objectives identify the critical success factors and • To discuss the trends, patterns of global key growth areas in the food industry Apple’s iPod in 2005 – Coping steel industry and consolidation as a • To highlight the growth strategies with new challenges? major strategy in fragmented steel implemented by Peter Brabeck to industry globally transform Nestlé into a 'nutrition, Apple’s iPod with its compact design and • To discuss acquisition process of Arcelor, health and wellness' company higher storage capacity had captured the market for portable music players in a short the largest steel company of Europe and • To examine the challenges to Nestlé's second largest globally by Mittal Steel, span of time. Despite competition from success in the nutrition segment due to several players, iPod remained the market potential synergies and problems competition from other manufacturers associated with the acquisition leader. In 2005, Apple replaced its hugely and retailers. popular iPod mini with nano that was more • To discuss how acquisition as a growth Industry Food and Beverage compact. iPod, despite its popularity, also strategy help companies to consolidate Reference No. GRS0208 suffered setbacks such as lost patent battles in fragmented steel industry Year of Pub. 2006 and lawsuits pertaining to the product’s battery life and display screen. The case • To discuss the key factors which make Teaching Note Available details iPod’s advantages, its competitors an acquisition a successful one Struc.Assig. Available and the hurdles it faced. • To discuss in details about the problems Keywords of acquisition and how the maximum Growth Strategy; Food and Beverage Pedagogical Objectives leverage can be gained Industry; Health and Nutrition; New • To discuss the portable music player • To discuss the bidding process and funding Growth Initiatives; Kraft; Growth market of an acquisition. Strategies Case Study; Danone; PepsiCo; Wal-Mart; Carrefour; Tesco; Customer- • To discuss Apple’s iPod competitive Industry Steel Centric Innovation; Inorganic Growth; challenges and its hurdles. Reference No. GRS0209K Private Label Brands; Operational 30 www.ibscdc.org

Industry Electronics alliance with UPS and USPS; Google Talk; markets in the least developed regions

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S Reference No. GRS0206C small and enterprise level business; Google of China so as to become a national brand II – Y G E T A R T S Year of Pub. 2005 Checkout; Google Talk. • The threat from competitors, both local Teaching Note Not Available business houses and foreign retail groups Struc.Assign. Not Available Keywords Growth Strategies of WuMart: The • Mergers and Acquisitions by WuMart, Wal-Mart of China especially in 2006, to consolidate its top Apple; iPod; Nano; Creative; Nomad; 10 ranking video; patent. WuMart was founded by Stanford graduate • The use of SAP and other software by Dr. Zhang Wenzhong in 1994, when it WuMart to enhance its position in the established its first supermarket. Within Chinese retail business. Evolution of eBay: Meg 10 years, the company had become one of the top ten leading retail chains in China, Whitman’s Success Strategies Industry Retail with rapid expansion in scale and steady Reference No. GRS0204C In online auctions, eBay was the most growth in both revenue and profits. It was Year of Pub. 2006S popular and widely used site. It began as a successfully listed on the Hong Kong Stock Teaching Note Available conventional online site for auctions and Exchange in November 2003 and its stock Struc.Assign. Not Available developed into a multibillion business price value had crossed HK$25 by mid Keywords model under the leadership of Meg 2006. By 2006, WuMart had become Whitman. When she joined in 1998, eBay Beijing’s biggest retailer with over a dozen Wumart; China; Wal-Mart; Retail trade; was a US$5.7 million business. It had sales hypermarkets, nearly 50 supermarkets, Convenience Stores; Supermarket; Middle of 5.58 billion in 2006. eBay acquired a 444 convenience stores, and 8 chain drug Class; WTO; strategy ; acquisitions; payment platform called PayPal in 2002 stores. Additionally, it had over 500 stores takeover; Zang Wengzhong; Supply Chain; and a communication platform called in Beijing and other surrounding areas which Market Share; Consolidation and Growth. Skype in 2005. The idea which Meg Zhang planned to double by the end of the Whitman had in her mind was that eBay decade. Major retail chains had only 0.5% users would use Skype for communication of retail sales in the Chinese market while and in turn use PayPal to pay for calls and WuMart’s market share in the greater Whole Foods Market: The Future auction payments. Beijing area, including Beijing city, was just of Organics over 5%. A big part of eBay’s advertising was done In 2005, the Austin, Texas based Whole by Google. These advertisements increased The case traces the history of the retail Foods Market (WFM) was the world’s customer responses and recalled many trade in China and the developments over leading retailer of natural and organic foods. customers to use eBay. eBay also promoted the last decade. It talks about the increasing WFM had grown from a single shop in 1980 small businesses and entrepreneurs to carry buying power of the emerging and to 180 stores with a sales turnover of $4.7 out their activities through eBay. Taking expanding Chinese middle-class in both the billion in 2005. WFM’s success and growth lead from the growing business of eBay, urban and rural sectors. The case analyses of natural products attracted competition. Google launched new services as a part of WuMart’s strategies and discusses the three A host of natural food chains had entered its diversification strategy. Google talk major acquisitions made by the company the market. Even regular grocers began to which allowed free communication in text in 2006. It also talks about WuMart’s offer natural products and increased their format became a threat for Skype and attempt to evolve as a national brand in share of organic sales. Analysts felt that the Google Checkout which was a payment China by trying to penetrate into the company was at the crossroads of growth method using credit cards was a direct unrepresented Western and North Eastern and development and wondered if WFM competition to PayPal. There were many regions. Promotional campaigns by the could nurture and expand its niche market competitors in the Asian region like company as also technical up-gradation in the face of growing competition. using SAP are also discussed. Competition Taobao of alibaba.com. The case discusses The case discusses the issues facing WFM Meg Whitman’s strategies to revive eBay. from local business houses and foreign retail groups is also analysed. and the organic industry, the different players in the market, positioning of the Pedagogical Objectives The case further looks at the challenges brand, and the challenges ahead. • To discuss about Online Auction Industry ahead for WuMart. Some of the factors to be considered are: the importance of local Pedagogical Objectives • To convey the dominant role of eBay preferences based on cultural differences, in online auction industry the growing appetite for brands among • The case discusses Whole Food Markets Chinese consumers, the need for more in USA and organic industry • To highlight threat of substitute services Hypermarket stores, expansion linked to to eBay • The case highlights the competition economies of scale, M&As of local and from regular grocers selling natural • To discuss eBay’s Model of e-commerce. medium sized retail companies, and products. consolidation together with market Industry Online Auction Industry leadership. Industry Consumer foods Reference No. GRS0205C Reference No. GRS0203C Year of Pub. 2006 Pedagogical Objectives Year of Pub. 2006 Teaching Note Available Teaching Note Not Available Struc.Assign. Not Available The case is expected to help students Struc.Assign. Not Available understand and analyse the following points Keywords Keywords • The development of the retail trade in eBay; Meg Whitman; eBay- Skype_PayPal China and the rise of local business Whole Foods Market ; Organics; Consumer model; online auction industry; seller-bidder houses like WuMart needs; Retail; Market leader; John Mackey; network; half.com; Shopping.com; whole Kids; NOP; QAI; Retail Stores; strategic alliance with Yahoo; credit card • The leading presence of WuMart in the Brand; LOHAS; Health Food; Trader Joe’s; payments; video conferencing; strategic Beijing area and the need to expand Green Mission. 31 www.ibscdc.org Cisco’s Chambers – The Route from 2000 to 2005 and lists the growth Pedagogical Objectives Ahead plans and strategies adopted. The performance of GM during the period and • To discuss the reasons for Jet Blue’s Cisco, the market leader in Switches and its turnaround plan for 2006 onwards are success when airline industry was facing Router market had lofty ambitions and lso discussed. slump wanted to become the first company to be The case gives ample scope to students for • To discuss challenges faced by low-cost worth a trillion dollars. Company sources airlines had revealed unofficially that the internal discussion on whether, given the growth target Cisco had set was an performance and challenges faced by both Industry Airlines ambitious 20% a year. Analysts remained Toyota and GM, it is possible for Toyota Reference No. GRS0200C skeptical and believed that it was hard to to become the world’s largest automobile Year of Pub. 2006 grow that quickly for a company as big as maker replacing GM. Teaching Note Not Available Cisco. What was more, the industry experts Struc.Assign. Not Available felt that the growth target presumed that Pedagogical Objectives Keywords

Growth Strategies Growth Strategies the firm would dominate the growth Growth Strategies Growth Strategies Growth Strategies • To discuss how Toyota became world’s markets, and that its core business would largest automobile maker replacing GM JetBlue Airways; US Airline Industry; Low continue to expand rapidly, neither of Cost carriers; Start Up success; Operational which could be taken for granted. Industry • To discuss about Toyota’s growth plans strategies; word of mouth advertising; experts speculated that Cisco’s revenues and strategies. Technological upgradation; Human in the long run were likely to be “either Resource Strategies; Financial strategies; flat or down”. Experts predicted that Cisco Industry Automobiles expansion strategies; principles of might lose its footing as it fought for the Reference No. GRS0201C leadership; quality customer service; David new middle ground of combined data, voice Year of Pub. 2006 Neelman; United Airways Ted; Delta and video services. Teaching Note Not Available Airlines’ Song. Struc.Assign. Not Available And there were dangers that the company might become a victim of its own success Keywords – as Microsoft and Intel had done – by Toyota; General Motors; Automobile Zara, the Spanish Fashion Chain’s attracting the unwelcome attention of industry; world’s largest automobile maker; Global Expansion: Is It Moving America’s antitrust enforcers. As Cisco technological upgradation; operational too Fast? gradually moved away from its core strategies; strategic management; GM’s The dynamics of the fashion industry internet routing business of selling switches Turn around plans; Toyota’s global vision require the players to adopt a particular and routers and steadily got to new areas. 2010; GM’s financial troubles; Model business philosophy. More or less all the Investors viewed with scepticism, its ability Recalls; Quality Control; Successful big and sizeable players have adopted the to find new businesses that could sustain its performance. cushy profits. similar business principles; be it supply chain management, designing or retailing. Pedagogical Objectives Zara, the fastest growing fashion retail JetBlue Airways: Can Success chain in the world, has rapidly grown over • To discuss about Cisco’s new business and Continue with Growth? the years by adopting unique competitive their future strategies to emerge as a successful player JetBlue Airways, the low-cost airline based in the fashion industry. With the objective • To analyse Cisco’s growth targets. at New York, was a hugely successful of globally and rapidly expanding its stores’ startup story in the history of the US airline Industry IT, Internet, Networking network, Zara chalked out a plan in 2005. industry. From a net loss of US$21.3 Reference No. GRS0202C According to the plan, the company million in 2000, JetBlue earned net profit Year of Pub. 2006 intends to establish an outlet every day of US$47.5 million in 2004. The Airline Teaching Note Not Available anywhere in the world. However, Zara’s won the Best Low-Cost Carrier, Best Struc.Assign. Not Available rapid expansion plan is being questioned Customer Service and Best Domestic for several reasons. Keywords Airline awards from various Business Travel magazines surveys since 2002. Cisco; Chambers; Switches; Routers; Pedagogical Objectives Internet; networking Peripherals; Real JetBlue’s success had been achieved during • To understand the dynamics of the global Time Enterprise; IOS (Internet Operating a major slump in the US airline industry. fashion retailing industry System); Data Communications. Although JetBlue’s first five years had been highly successful, analysts wondered if the • To discuss the evolution of Zara into same momentum could be maintained when the fastest growing fashion retail chain Toyota’s Bid to Replace GM: the size of the airline increased. There were in the world concerns about whether the on-time Issues and Challenges flights, in-flight facilities and customer • To understand the unique competitive strategies adopted by Zara In December 2005, Toyota, Japan’s largest service could continue to attract customers automobile maker announced that it would when the number of routes and fleet size • To analyse and discuss the global increase its global production by 10%, to increased. It also remained to be seen if expansion plan of the fashion retailer 9.06 million units in 2006. This made the low fare could be maintained amidst industry analysts take note of the fact that high fuel and employee costs. • To debate whether Zara’s rapid global Toyota’s estimates exceeded General expansion will have a negative impact The case allows for discussion on challenges on its performance in future. Motors’ (GM) estimated production of 9 faced by low-cost airlines and what future million units. Therefore, experts began to strategies the airlines should adopt to face Industry Fashion Retail analyse if Toyota, already the second largest competition. Reference No. GRS0199 automobile maker in 2005, would replace Year of Pub. 2006 GM to obtain the top slot. The case Teaching Note Available discusses in detail Toyota’s performance Struc.Assign. Available 32 www.ibscdc.org

Keywords Intuit’s Growth Strategies Pedagogical Objectives

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S Inditex Group; Fastest Growing Fashion In fiscal 2004, Intuit’s revenue growth has • The case discusses Infosys’ earlier Retailer; Short Lead Time Strategy; fallen from 26% in 2003 to 13% in 2004. business model – the global delivery Strategy of Limited Styles; Strategy of Intuit’s revenue is expected to grow by just model, its growth strategy and its efforts Infrequent Shortages; Producing More 6% to 9% in fiscal 2005. In the eyes of to become a globally competitive Style Quantities; Vertical Integration Wall Street, the premier high-growth company Business Concept; Distinctive Operational company has become a value stock. Intuit’s • It discusses the growth of offshore Structure; Strategy of Zero Advertising; core brands – Quicken for personal finance, software development, the challenges Pricing Strategy; Gap Inc.; Hennes & QuickBooks for small-business finances, faced by such developers and their future Mauritz AB; Global Expansion Strategies; and TurboTax for income-tax filing are Location Identification Strategy; Zara market leaders in their respective segments. • The case also discusses Infosys’ Home. However, wth slowing growth rates, Intuit ‘scalability model’. is facing the possibility of its first-ever year of single-digit revenue growth. CEO Industry IT (Information Technology) Stephen Bennett is launching several Reference No. GRS0196P Nordstrom: The Fourth Year of Pub. 2006 Generation Expansion Strategies initiatives to make Intuit once again a ‘safe and hot’ company with annual growth rates Teaching Note Not Available Nordstrom, one of the largest specialty of 15% to 20%. Struc.Assign. Not Available retailers in the US, was started as a shoe Keywords store in 1901 by John Nordstrom and his Pedagogical Objectives friend Carl Wallin in Seattle. When its shoe Infosys; Growth; Global Delivery Model; business started to decline, the second • The case discusses Intuit’s growth Competitive. generation Nordstroms diversified into strategy. The effective manner in which apparels. Under the third generation it has retained market leadership and tackled competition despite having Nordstroms, the company went public. Yum! Brand’s Key Growth competitors ten times its size The third generation of Nordstroms Strategies handed over the reins of the company to • The case can be used to highlight how a John Whitacre under whose leadership, the small company with little resources can KFC, Pizza Hut and Taco Bell are the company witnessed a decline in profitability take on big players by being in tune with world-wide leaders in Chicken, Pizza and due to its decentralised buying structure and its buyers and their requirements. Mexican food restaurants respectively. All overall customer dissatisfaction. The these are sister brands and belong to Yum! fourth generation Nordstroms took over Industry IT (Information Technology) Brands Inc. Yum is one of the world’s largest the company after Whitacre’s resignation. Reference No. GRS0197P quick service restaurant companies and They restructured the company, brought Year of Pub. 2005 owns two more brands: A&W Restaurants in new technologies, expanded into new Teaching Note Not Available Inc. and Long John Silver’s. The restaurant markets and transformed the company Struc.Assign. Not Available company faces competition from brands into one of the largest family-run businesses like McDonald’s and Subway. To combat Keywords in the world. competition the company implemented Bennett; Strategy; Quickbooks; Software; certain strategies. The case discusses these Pedagogical Objectives Marketing. innovative strategies and their success. Yum’s strategies have helped the company • To understand the traditional business in improving its brands and have placed model of Nordstrom through three them among the top brands in the food Infosys’ Growth Strategies generations industry globally. • To analyse the reasons behind the Infosys Technologies (Infosys), one of the financial downturn of Nordstrom under fastest growing companies in India is Pedagogical Objectives John Whitacre growing at an annual rate of over 40%. Infosys believes it has a strong and resilient • To discuss the growth strategies adopted • To discuss the expansion strategies business model, which has been successfully by Yum! Brands globally adopted by the fourth generation adapted to the changing market • To discuss the concept of multibranding Nordstroms requirements over the years. Infosys has innovated and employed by the • To discuss the dynamics of a typical added services like independent software restaurant group and its advantages family-run business. testing and enterprise applications to its offerings. It has also re-organised itself • To discuss the strategies behind the Industry Apparel and Accessories retail along verticals or industries compared to success of all the brands in the group. Reference No. GRS0198 the geography-specific orientation it had Industry Food Industry Year of Pub. 2006 conformed to earlier. Reference No. GRS0195P Teaching Note Available To maintain its scorching pace of growth Year of Pub. 2005 Struc.Assign. Available Infosys has devised a new business model. Teaching Note Not Available Keywords It intends to build a super-efficient platform Struc.Assign. Not Available that could offer the entire range of software Keywords Apparel Retailer; John Nordstrom; Return services, from consulting to business Policy; Commission selling; Faconnable; process outsourcing, and layer it over with Yum; KFC; Pizza Hut; Fast Food/Food Inverted pyramid structure; Customer new initiatives, such as the emphasis on Industry; Taco Bell; China; Tricon; service; Decentralised purchasing process; business solutions, to ensure that the PepsiCo; Long John Silver’s; A &W Merchandise mix; Perpetual inventory; company does not fall into a commodity Restaurants; Multibranding strategy; Dual Multi-channel integration; Fashion trap. “Scalability is the name of the game,” brands. industry. points out N.R. Narayana Murthy, chairman and chief mentor. 33 www.ibscdc.org TCS in 2006: India’s First IT Rotarians in 32,000 Rotary clubs spread Ikea in 2005: Evolution of Global Services Multinational across 170 countries. Since 1994-1995, the Marketing Strategy total number of members in all the clubs Tata Consultancy Services (TCS) was the put together has remained stagnant at 1.2 The case discusses the evolution of Ikea’s largest Indian software company to offer million. The case discusses the various global marketing strategy under various P’s the entire value chain of Information reasons for membership stagnation and of marketing. Ikea, the largest and the most Technology (IT) services that included measures adopted in the past to increase famous furniture retailer in the world, has consulting, Business Process Outsourcing the membership. It also discusses the a reputation for low prices and fresh, (BPO) and engineering services. TCS was various options that Rotary can explore innovative design. Its products epitomise credited for bringing the software industry to increase its membership in the future. strong design, logistical efficiency, and to India. TCS had also expanded its constant cost-cutting. It does not bring a operations outside India and had become Pedagogical Objectives new design to market unless it is affordable. an Indian IT multinational. In 2000, TCS To cut transportation costs, Ikea knocks outlined its ambition to become one of the • The case discusses the various reasons down furniture into disassembled parts, for membership stagnation

Growth Strategies Growth Strategies top 10 global IT companies with revenues which can be packed and shipped in flat Growth Strategies Growth Strategies Growth Strategies worth $10 billion by 2010. cardboard. Ikea practices a form of “gentle • It outlines the measures adopted in the coercion” to keep customers as long as past to increase the membership The case discusses the five-bubble growth possible in its stores. Apart from its cheap strategy employed by TCS to achieve its • It also discusses the various options that but stylish inventory, Ikea stores’ reverse aim and change brought about by the Rotary can explore to increase its positioning strategy, satisfied customers company in its business model. membership in the future. and referrals are the key to its success. Ikea has a quirky, irreverent approach to Pedagogical Objectives Industry NGO marketing with strong emphasis on using Reference No. GRS0193P non traditional media for promotions. To • To discuss the growth of TCS as an Indian Year of Pub. 2005 software company domestically maintain the buzz Ikea creates legendry Teaching Note Not Available stories. Analysts wonder if Ikea can • To discuss the Global Delivery Model Struc.Assign. Not Available maintain its cult following as direct links (GDM) adopted by TCS to become a Keywords to Ingvar Kamprad, its founder disappears? multinational IT company Service Clubs; Lions; Jaycees; Kiwanis; Pedagogical Objective • To discuss the five-bubble growth Turnover; Mision of Rotary; Avenues of strategy employed by TCS to become Service; Object of Rotary; Four Way Test. • The case discusses the evolution of one of the Top 10 global IT companies Ikea’s global marketing strategy under • To discuss the Network Delivery Model various P’s of marketing. (NDM) adopted by TCS for executing Reliance Infocomm’s Teething Industry Furnishing its growth strategy. Troubles-B Reference No. GRS0191P Year of Pub. 2006 Industry Information Technologies This is the second of a two-case series. Teaching Note Not Available Reference No. GRS0194P Reliance Infocomm (Infocomm) was Struc.Assign. Not Available Year of Pub. 2006 launched in December 2002, by Reliance Teaching Note Not Available Industries, India’s largest private business Keywords Struc.Assign. Not Available house. Infocomm was launched nation-wide Ikea; Marketing Strategy; Reverse with a huge fanfare. Though most people Keywords positioning; non-traditional media; had expected it to be a major success Kamprad; Sweden; Dahlvig; Cost TCS; a Tata group; software (IT) industry; Infocomm did not turn out to be so. leadership; Innovative packaging; Unusual initially catering to Tata group companies; Infocomm had not achieved its targets and promotions. extending IT offerings to other Indian there was a lot of concern amongst its Companies; expanding to serve US; customers. This case discusses Infocomm’s European markets; ODCs (offshore strategies and its turn around. delivery centers); TCS’ GDM (Global eBay – Future Perfect? Delivery Model); GDM of TCS’ Indian Pedagogical Objective competitors; goal of becoming 1st Indian In 2006, eBay, the world’s largest online $10 billion IT MNC; five bubble growth • To discuss the strategies adopted by auction business, is one of the fastest strategy; five strategic growth areas; Reliance Infocomm to overcome the growing companies in the world. The case engineering; infrastructure services; troubles that it faced at its launch. discusses eBay’s unique business model, its consulting; BPO & IT products; domestic CEO Meg Whitman’s initiatives, its work Industry Telecom & foreign acquisitions by TCS; TCS’ NDM. environment and its global expansion Reference No. GRS0192P strategy. eBay’s management has Year of Pub. 2006 responded quickly and well to new Teaching Note Not Available challenges and crisis situations. It has Rotary International: A Global Struc.Assign. Not Available expanded without jeopardising its core NGO Facing stagnation business. It’s a business model has scaled Keywords extremely well. Off late however eBay’s Rotary International, described as a ‘Global Reliance Infocomm; Telecom sector; revenue growth has been slowing, Network of Community Volunteers’ is one Infocomm Rollout; Teething Troubles; especially in the United States, it’s most of the largest voluntary organisations in Dhirubhai Ambani Entrepreneurs; CDMA; mature market. Experts point that eBay the world. Members of Rotary Cellular Telephony; Monsoon Hungama; may not have the pricing power it has International, known as Rotarians, are RIM. enjoyed earlier. eBay’s business is very involved in various humanitarian and customer driven and it may become community service projects worldwide. In difficult to predict what would attract or 2005, there are around 1.2 million drive away customers in droves. The 34 www.ibscdc.org

ultimate question is how can eBay fend off • What steps should STAR India take to Airlines; Jet Airways; LCC Business Model;

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S encroachment from rivals, maintain its retain its leadership position? Aviation Infrastructure; GoAir; IndiGO. II – Y G E T A R T S focus and build the infrastructure and management team to continue to evolve. • Can STAR India replicate the success of its flagship channel, STAR Plus? Four Seasons Hotels and Resorts Pedagogical Objectives Industry Satellite Television Reference No. GRS0189B Four Seasons Hotels and Resorts, the • The case discusses eBay’s unique business Year of Pub. 2005 world’s leading operator of luxury hotels model, its CEO Meg Whitman’s Teaching Note Not Available with a history spanning four decades and a initiatives, its work environment and its Struc.Assign. Not Available portfolio that extended worldwide, was global expansion strategy. EBay’s managing 63 properties in 29 countries by management has well-responded quickly Keywords 2004. In addition, 21 properties, to be to new challenges and crisis. It has operated under the Four Seasons brand expanded without jeopardising its core STAR TV; Satellite television industry; Cable operators; TV industry; Cable name were under development in another business. Its a business model scaled seven countries around the world. The extremely well operators; Programming; Content development; Revenue sources; company owed its success to its business • The case discusses eBay’s growth Advertising revenue; Subscription revenue; strategy based on four decisions, i.e. to focus strategy and the challenges that lie Soaps; Movies; Carton Channels; on small to medium sized luxury hotels, ahead. Marketing television channels Zee TV; concentrate on managing rather than Sony TV. owning the hotels, and most notably the Industry Online auction business company built on customer service coupled satellite Television with employee satisfaction. This case Reference No. GRS0190P narrates in detail the growth of Four Year of Pub. 2006 Low-Cost Carriers in India: A Seasons over the decades on the four pillar Teaching Note Not Available Smooth Ride? business strategy it adopted. It also Struc.Assign. Not Available emphasises on the company’s future plans The aviation sector in India is booming for growth and expansion and highlights Keywords with a growth of 24% in 2004-2005. Much the probable challenges it might have to of this growth is attributed to the Open face. eBay;online auction; e-marketplace; Sky policy of the Government and the business model; Meg Whitman; global advent of Low Cost Carriers (LCCs) which trading platform; product life cycle; skype; led to a drastic drop in air fares. Air Deccan Pedagogical Objectives Networking; Eachnet site; China; unique was the first LCC in the country followed selling proposition; pay-per-call • Four Seasons’ expansion strategy in the by Kingfisher Airlines and Spicejet. This advertising; Taobao. changing geopolitical environment spurt in growth of LCCs is affecting the market shares of the mainstream carriers • Future of Four Seasons if Isadore Sharp, such as Jet Airways, Sahara Airlines and founder, chairman and CEO quit the STAR India: Time for Indian. These airlines too have entered the company. fight by introducing discounted fares and Consolidation? • “Customer Satisfaction is achieved customer loyalty programs to retain their through employee satisfaction” was the The case is set in 2004 and talks about customers. STAR India, a constituent unit of STAR motto of Four Seasons; could its success Group. STAR Group is a Hong Kong based Given the vast population of the country, be related to this factor alone there is great potential for the LCCs and satellite television unit of Rupert • Four Seasons was concentrating on small- the market is yet to see a number of new Murdoch’s News Corp. Started in 1991, to-mid-sized hotels only; should it entrants. High fuel costs, lack of adequate STAR India became a leading television change its focus towards more of large- infrastructure and trained personnel have network in the country. It brought in many sized convention hotels new and innovative programming and been the challenges faced by the LCCs. marketing concepts in the newly Experts opine that conditions in the India • Managing hotels was reaping high profits deregulated Indian television market. The are not favourable to the growth of the over owning hotels, but could this impact business unit has been so successful that LCCs and hence could be a major hindrance Four Seasons’ brand and quality STAR Group’s primary focus for growth to their success. • Expanding to more diverse locations within Asia was shifted from China to India. across countries threaten its integrity. The case talks about the cable and satellite Pedagogical Objectives television industry in India, and the key Industry Upscale and Luxury Hotels • To discuss the effect of LCC on airlines success factors for success in the industry. Reference No. GRS0187B industry The case maps in detail how STAR went Year of Pub. 2004 on to create and implement its successful • To understand the benefits and Teaching Note Not Available operations in India. The case also talks limitations of LCC in India. Struc.Assign. Not Available about the steps being taken by STAR to increase its revenues and consolidate its Industry Airlines Keywords Reference No. GRS0188B leadership position in India. Hotels and Motels; Human Resource Year of Pub. 2006 Management; Customer Service; Service Teaching Note Available Pedagogical Objectives Management; Business Model; Isadore Struc.Assign. Not Available Sharp; Long lasting CEO; Growth Strategy; • Structure and economics of satellite Hotel Management; Luxury Hotels; television industry in developing nations Keywords Organisation structure; Business Strategy; • Designing and programming issues of Business Model; Low-Cost Business Model; Revenue Per Available Room (Rev PAR); television content Budget Carriers; Domestic Aviation Occupancy rate; AAA Five Diamond Industry; Indian Airlines; Air India; Air Awards. • Marketing television content Deccan; Air Sahara; Spicejet; Kingfisher 35 www.ibscdc.org Macau: The Next Las Vegas? Pedagogical Objectives Retail Operations; Growth Strategy; Expansion Strategy; Product Design and Macau (Macao) in China, which legalised • To understand about the online banking variety; Unique Shopping Experience; gambling way back in 1847, generated scenario in the US Low-price strategy; Target Marketing; around $6 billion gambling revenue in 2005 • To understand how ING was operating Ingvar Kamprad; Flat-pack furniture; which was in par with the revenues of Las in the US. Swedish company; Kitchen utensils. Vegas. Las Vegas which operated with around 44 casinos witnessed stiff Industry Online Banking competition and maturation of the casinos Reference No. GRS0185B and the guests. So, the major casino Year of Pub. 2005 Hard Rock Café On Sale: Rank operators wanted to replicate their success Teaching Note Not Available To Gamble With Its Future? in the Far East especially China, Singapore Struc.Assign. Not Available In 2006, The Rank Group Plc (Rank) was and other Asian countries. However, an international gaming and leisure Chinese, the hardcore gamblers, considered Keywords company, consisting of two major gambling as a battle with destiny unlike Growth Strategies Growth Strategies Growth Strategies Growth Strategies Growth Strategies ING Direct in the US; Success Story of divisions, namely ‘Gaming’ and ‘Hard Americans who felt that gambling was ING Direct in the US; ING Direct; ING Rock’. Rank had one of the UK’s leading mainly entertainment and calculating Group; Online Banking in the US; Pros gaming businesses, and one of the most probabilities. Analysts were sceptical and and Cons of Online banking; Success and globally recognised music, entertainment doubted whether the Las Vegas style of failures of Online banks in the US; Effect and dining brands, Hard Rock. casinos would be accepted in Macau since of US Fed Rates on online banks;Arkadi the market was focused only on pure Kuhlmann; Brand building of ING Direct Hard Rock Café (HRC) was a chain of casual gambling rather than entertainment. in the US; ING Direct Market Entry dining restaurants. It embodied the spirit Strategy; Innovative promotional of rock music through its signature cafes, Pedagogical Objectives Strategies of ING direct in the US;ING hotels and casinos; collectible and fashion Direct Café; Orange Saving Account; Web merchandise; live concerts and • The state of the casino industry in Las marketing of ING Direct in the US. performance venues; and the Hard Rock Vegas and China Records music label. In 2005, Hard Rock • The strategies adopted by the Macau and generated the strongest performance when Las Vegas gamblers operating profit increased by 24.7%. In IKEA – Invincible Key to Excel in contrast, though the company’s Gaming • To analyse the move made by the Las America (USA) division represented over 50% of the Vegas operators. IKEA was a multinational home furnishings Group’s operating profit, the division’s operating profit decreased significantly due Industry Gambling company with more than 226 stores in 33 to various reasons in that year. Despite Reference No. GRS0186B countries in 2005. The company designed this, on July 4th 2006, Rank announced Year of Pub. 2006 and sold a wide range of furniture products that it would sell its iconic Hard Rock Café Teaching Note Not Available including beds, bookcases, chairs, lamps, chain to concentrate on the gaming Struc.Assign. Not Available rugs, desks, sofas and tables as well as various accessories for bathrooms, business as the British government was Keywords kitchens and offices. This case study expected to relax the strict gambling laws. But analysts felt that the company was US Gambling; Macau; Gaming; Casino; Las discusses in detail the expansion of IKEA into the US and the initial hitches. The gambling with its own future by selling out Vegas; Gambling; Card Games; Roulette; Hard Rock. Baccaret; Poker;Table Games; MGM; case further discusses the unique strategies China; Wynn; Tourism. IKEA adopted to succeed in the US market. Pedagogical Objective Pedagogical Objectives • To understand the different gaming ING Direct in the US • Compare and contrast IKEA from other divisions of Rank and strategies adopted traditional furniture stores by the company. Established in 2000 in the US, ING Direct used its time-tested business model and • How strong is IKEA in the competitive Industry Gaming & leisure succeeded in capturing a large share of the world? Reference No. GRS0183B US market. ING offered higher interest Year of Pub. 2006 rates on its savings products and promoted • Pros and cons of the IKEAs unique Teaching Note Not Available itself through a slew of extremely shopping experience Struc.Assign. Not Available innovative campaigns. Looking at the • How best is the pricing strategy of Keywords growing popularity of online banking, new IKEA? players began to enter the market in 2004- Rank Group PLC., Gaming and leisure; 2005. With the US government fixing a • After a prolonged expansion in US, IKEA company; Mecca bingo; Hard Rock Café; federal interest rate structure common to was planning for a jump start, how UK Gaming industry; Music Memorabilia; savings accounts for all banks, the position favourable was this expansion strategy. Grosvnor; casinos; Blue Square; Rank of ING Direct was being challenged. organisation; Joseph Arthur Rank; Bingo Industry Home Furnishing and club; casino; relaxation of Gaming laws; This case highlights the growth of ING Housewares Retail Hard Rock merchandise; Jimmy Hendrick’s Direct in the US and sheds light on the Reference No. GRS0184B flying V guitar. innovative marketing techniques utilised Year of Pub. 2005 by the company. It can be used to discuss Teaching Note Not Available the growth and the business model of online Struc.Assign. Not Available BOSE: The Sound of Success banks, with special focus on ING Direct. Keywords Bose Corporation (BOSE) was the story US Home Furnishing and Housewares Retail of how a young MIT grad, Amar Bose’s Industry; Consumer Marketing; Furniture; quest for the perfect stereo system led to 36 www.ibscdc.org

the creation of unparalleled Bose the next several decades, it seemed that at • To discuss whether it is beneficial for

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S Corporation in 1964. The privately-held least two Asian “emerging-market” other countries to invest in BRIC. II – Y G E T A R T S company went on to become a sound countries, China and India, would move transnational, with an annual sales turnover into the front rank of the world’s Industry Not Applicable in excess of $1.7 billion in 2005-2006 economies and would increasingly exercise Reference No. GRS0181B (5.9% revenue growth over last F.Y.) and a influence as global powers. Analysts Year of Pub. 2006 reputation of building the world’s best audio thought that a change of such magnitude Teaching Note Not Available systems and a paragon so difficult to in the global power balance was likely to Struc.Assign. Not Available emulate by others. According to industry challenge the positions of even the most Keywords experts, it was this zeal, passion and powerful Western countries or at least, the innovation that had made Bose existing G-7 countries would have to adjust BRIC; Brazil; Russia; India; China; Corporation a highly valued company with their policies to accommodate the interests Goldman; Sachs; economic size; economic deep roots in principles, philosophy, quality of these rising powers. growth; international trade; global demand; and R&D, resulting in Bose being featured currency; sustainability; growth; dollar; on the 2006 Forbes Billionaires list with The rapid expansion of the BRIC international relations. $1.2 billion. The company anticipated economies was creating a powerful paradox continued growth for the foreseeable future in which both opportunities and threats and 100% of profits were reinvested in the are emerging. Paramount to the success of CEOs worldwide was their ability to make Gazprom: The Leading Energy company’s growth and development. Bose Giant Going Global loudspeakers were the best selling in the this clash of interests work to their United States and throughout the world. advantage. Gazprom was the largest Russian company The closely held company recently Were Asia-Pacific CEOs willing to conduct and biggest natural gas extractor with reached another milestone. Bose was and build their businesses in these market capitalisation of US$300 billion. ranked in 2006 as the most trusted economies, despite the growing threat of The company restructured its business consumer brand by far among 22 well- competition? And if so, which country’s processes to implement vertical known tech companies, ahead of market opportunities did they perceive as integration. Gazprom, headquartered at heavyweights like Apple, Microsoft, Dell, having the most potential, as well as the Moscow, employed 396,571 people and Intel, and Sony, according to a survey of most likely competitive threat? was the world’s largest gas company with a 4,732 US households by Forrester Despite the cautious language of the GS 25% of the global gas reserves. In May, Research. The company gained nine points report, its authors were reasonably 2006, Gazprom had market capitalisation of market share, to a total of more than confident that their long-term economic of US$300 billion and earned revenues of 20%, and is now second in market share in projections are sound. Although US$50,824.4 million in 2005. Gazprom’s home audio to heavyweight Sony in US conservative growth rates were used, GS assets included gas reserves, world’s longest market. projections did rely on stable growth and pipeline network with 150,000 km, banking, insurance, media, construction But Bose was not without its criticism. development. GS agreed that disruptions in growth would alter the projections and agriculture. The core activities of the Critics said that the company’s products company were gas exploration, were overpriced and gimmicky – and that significantly, but noted that the projections were nonetheless useful in imagining the production, transportation, processing and Bose overspent on marketing to the marketing. It supplied gas to every region detriment of sound quality. Bose economic potential that the BRIC economies possess. Discussion amongst of Russia and exported to more than 25 Corporation said the criticism was European countries. The company relied unfounded. The company had consistently analysts and economists largely centered around the plausibility of the projections heavily on Western exports and claimed ‘Better Sound Through Research’. partnerships. So was its reputation more than quality given the difficulty in imagining stable, that had given Bose consistent success? consistent growth in the BRIC economies. In 2005, Gazprom restructured its gas They wondered whether sufficient business to increase profitability, efficiency attention had been paid to the political Pedagogical Objective and scalability of operations. In 2005- factors and substantially large population 2006, Gazprom was looking forward for • To understand about the growth of Bose under poverty that could affect the futures the Central and Eastern European Corporation. of these four large nations. For many countries along with the Asia and America people it seemed that the time was not Industry Audio-system for the gas markets. The company planned right to invest funds in the BRIC, but GS’s for global expansion to become the world’s Reference No. GRS0182B report did clearly suggest that shifting a Year of Pub. 2006 biggest gas producer. It focused on the global share of investment portfolio to the four market especially the European, Asian and Teaching Note Not Available coming giants might not be a bad idea. Struc.Assign. Not Available American markets. New approaches were Although the title of the report had words devised for the expansion. Gazprom faced Keywords “dreaming with BRICs”, the dream could challenges of investments and risks with turn into reality and in consequence the its expansion plans. Would Gazprom be Bose, Amar Bose; direct/reflecting radical changes the future could unfold. able to succeed with its global plans? speakers; sound; Acoustimes; leadership; More important still, it suggested that entreperenuership; MIT; research; western politicians who thought that the marketing; approach; ethics. current world order would last through this Pedagogical Objective century needed to do some serious • To understand Gazprom’s strategy to rethinking. Was it too early to start achieve excellence in its business. rethinking? BRIC: Building Blocks of the New Industry Oil and Gas World? Pedagogical Objectives Reference No. GRS0180B Goldman Sachs’ (GS) forecasts of global Year of Pub. 2006 power shifts and long-term economic • To understand about the BRIC Teaching Note Not Available projections were treated with caution, economies Struc.Assign. Not Available given the number of variables in action. In 37 www.ibscdc.org Keywords market need. And to compete and retain McDonald’s Instigating Price War its position in this changing market, in in the US: Winning strategy? Oil; Gas; Gazprom; Russia; Globalization; 2005, with a new CEO, Matthew E. Rubel, European Market; American gas market; Payless took up several new strategies. The US fast food industry was dominated Asian gas market; Restructuring; Business by McDonalds followed by Burger King and Strategy; Energy market. Pedagogical Objectives Wendy’s in the 1990s. In 2002, McDonalds and Burger King were involved in a price • To emphasise the importance of war and this price war had an adverse affect Ocean Spray in 2006: Will it innovation in retailing stores on the entire US fast food chain. All the players in the fast food industry experienced succeed? • To discuss how design in products serve decline in their sales. McDonald’s was to achieve success in the retail market. Ocean Spray was a leading producer of facing more problems due to the price war cranberry and related products in the Industry Footwear and started working on its turnaround plan. Massachusetts cranberry market. In 2006, Reference No. GRS0178B In 2006, Wendy’s had plans to enter the its market share declined to 60%, from

Growth Strategies Growth Strategies breakfast business which was dominated by Growth Strategies Growth Strategies Growth Strategies Year of Pub. 2005 70%. To regain its market share, it Teaching Note Not Available McDonald’s since 1973. McDonald’s introduced new products to woo the dieters. Struc.Assign. Not Available sensed this as a threat to its business and so With the fall in the cranberry prices and prepared for a price war against Wendy’s. stiff competition analysts were sceptical Keywords Analysts felt that another price war by about it regaining its market share through Payless; Footwear Company; Kansas; McDonald,s would only ruin its image its products. Mathew E. Rubel; Western Hemisphere; further and were skeptical about its success Makeover strategy; Bargain Shopper; in the longer run. Pedagogical Objectives Bubble-lettered logo; Self-selection format Athletic shoes; Style in Shoe; Parade Stores; Pedagogical Objectives • To understand about the US cranberry Bundles/Tootsies; Dyelights; Payless Kids. industry • To discuss how price war can affect the entire fast food industry • To discuss about the performance of Ocean Spray in the cranberry market. Home Depot’s Entry into China – • To understand how McDonald’s was affected by price war. Industry Canberry Now or Never Reference No. GRS0179B Industry Fast Food In 2006, attracted by the large and growing Year of Pub. 2006 Reference No. GRS0176B Chinese market, Home Depot, the world’s Teaching Note Not Available Year of Pub. 2006 largest home improvement retailer wants Struc.Assign. Not Available Teaching Note Not Available to make its mark there. However, it had Struc.Assign. Not Available Keywords missed the opportunity in 2003, when the Chinese retail market had been at its peak. Keywords Canberry Industry, Ocean Spray; Other retailers like B&Q, Orient Home challenges; strategy; future-plan. and IKEA have established themselves McDonald’s; price war; fast food industry; well, having entered China from 1998 Wendys; Burger King; Market leadership; onwards. quality; eroding image; standardisation Payless Worn Down at the Heel: turnaround; competition. Would Home Depot be able to successfully Makeover Strategies in 2005 tackle the challenges arising out of its Payless ShoeSource, Inc. (Payless) delayed entry? VF Corp.: The World’s Largest celebrated its golden anniversary in 2006. Apparel Maker’s Retail Started in 1956 with a single store in Pedagogical Objectives Expansion Strategies Topeka, Kansas, the company grew over • To discuss about the home improvement the period into a substantial footwear market in China Founded as the Reading Glove and Mitten retailer. In 2005, with more than 4,600 Manufacturing Company in 1899, VF stores, Payless ShoeSource was the largest • To discuss about the need for timely Corporation manufactures different specialty family footwear retailer in the decision while entering a new market. apparels, namely, jeanswear, imagewear, entire Western Hemisphere. outdoorwear, innerwear, sportswear and Industry Home Improvement Industry Payless ShoeSource was founded by two footwear. The stagnation in the US apparel Reference No. GRS0177B market in the early 21st century brothers with a strategy of selling low-cost, Year of Pub. 2006 high-quality family footwear. More than necessitated VF Corp’s venture into the Teaching Note Not Available retail market and as of 2006, 13% of its four decades later, the concept continued. Struc.Assign. Not Available However, it was felt by the customers that revenue comes from retailing. The the company did not showcase its new Keywords company plans to increase its revenues from retail to 20% by 2009 and has products in its stores, and the stores were Home Depot; Home Improvement found very pale and shabby. Payless also announced that it would be opening 400 market; China; Entry Strategy; new retail stores across the globe. continued to use a ‘1980s-era bubble- international; expansion; international lettered logo’ even in the 21st century. But, business; retail strategy; big box retailing; Pedagogical Objectives since the late 1990s, the shoppers were one stop shop; first mover advantage; becoming more judicious in their apparel challenges in China; well entrenched • To understand new trends in the US purchases, buying several pairs of shoes to competition; localised strategy; Orient apparel market freshen up their wardrobes rather than Home takeover; GRDI labour index. replacing it. The big shoe chains such as • To analyse the reasons that encouraged Famous Footwear and Shoe Carnival were a traditional apparel manufacturer like also changing themselves according to the VF Corp. to foray into retailing

38 www.ibscdc.org

• To discuss the retail expansion strategies Deutsche Bank – Managing Keywords

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S of VF Corp. II – Y G E T A R T S Growth Growth Strategy; Labour market; Industry Apparel In 2005, Deutsche Bank AG (Deutsche), Germany; Social responsibility; Reference No. GRS0175 one of the leading financial services Globalisation; Restructuring organisations. Year of Pub. 2006 providers in the world with •840 billion in Teaching Note Not Available assets; employed more than 65,400 Struc.Assign. Not Available people, with operations spread over in 74 Wikipedia: Will Pernod Ricard Keywords countries. The group reported net profits Say Cheers With Champagne? of •2.5 billion ($3.2billion; £1.7billion) in Retailing; Expansion strategies; Lee; 2004, 87% higher on y-o-y basis. The highly fragmented alcoholic beverage Wrangler; Stagnation in US apparel industry comprised mainly of three market; US retail market; Retail In spite of the huge profits, Deutsche’s segments: Beer, Spirits and Wine. Amongst acquisitions; Changes in customer management team had triggered off a the grand array of wines, ‘Champagne’, preferences; Changes in the US retail controversy by announcing job cuts at a the most famous sparkling wine was market; Speciality stores; Restructuring; time when Germany’s unemployment rate supported by strong international demand Mackey McDonald. was at its highest since the 1930s. The and registered a growth rate of 2%-3% per bank’s management had been accused of year. wrong doing in the Vodafone takeover bid by paying high bonuses. The restructuring The France-based Pernod Ricard S.A. was Kikkoman, The World’s Leading drive undertaken by the bank involving the second-largest player in the overall Soy Sauce Maker: Globalisation employee lay-offs was also highly wine & spirits segment. Though it was a and Localisation Strategies controversial. With Deutsche planning to major player in other segments of alcoholic cut a total of 6,400 jobs from its domestic beverages, the company lagged far behind Kikkoman, the world’s largest soy sauce and global workforce, German politicians the market leader LVMH in the champagne manufacturer was started in Japan as a accused the company of lacking social market. It ranked No.4 in the global th cottage industry in the 17 century. Forced responsibility. champagne market. Following the stagnant by a decline in the Japanese consumption domestic market and growing international of soy sauce, the company expanded into The job cuts were aimed at bringing demand, Pernod Ricard had huge ambitions other countries, developing new markets Deutsche’s cost base in-line with its to make it big in worldwide champagne and coming out with new products by international competitors. The current market. Besides expanding into the growing employing new technologies. By the late weakness in the German economy and high markets like UK and US, the company th 20 century, Kikkoman had its operations labour costs could have a negative impact aimed to explore the emerging markets across Europe, Asia and in the US. The on Deutsche’s profitability. With the like Russia and China. But analysts predicted guiding principle behind Kikkoman’s global banking industry consolidating globally, that Pernod Ricard would have to strive growth has been its ability to cater to would Deutsche be able to sustain its growth? hard to meet its global ambitions in consumer tastes in each market it entered The case describes the growth strategies champagne business as the brand portfolio and educating them about the versatility followed by Deutsche. It highlights the of the company still lacked major of its products. dilemma faced by the bank to operate champagne brands. Moreover, Pernod efficiently in the competitive global Ricard missed an opportunity of acquiring Pedagogical Objectives banking and financial services industry a big champagne house “Taittinger”. • To highlight the strategies that enabled while balancing the labour cost in a highly The case traces the journey of Pernod Kikkoman to grow from a cottage protected German economy. Ricard and highlights the organic and industry to a global enterprise inorganic growth strategies of the Pedagogical Objectives company. The case explores the • To analyse the localisation strategies of opportunities and challenges in store for Kikkoman for its global products • To understand the German economical the company and aims at ensuing a debate environment in which Deutsche bank that whether Pernod Ricard will emerge as • To understand the importance of operated innovative marketing ideas, innovative the prominent player in the global products and menu proposals according • To discuss the growth strategies followed champagne market. to local tastes, for a global food retailer. by the Deutsche bank Pedagogical Objectives Industry Sauces and Condiments • To analyse the dilemma faced by Reference No. GRS0174 Deutsche to operate efficiently in a • To highlight the entry strategies for new Year of Pub. 2006 competitive environment markets and market regaining strategies Teaching Note Not Available in highly fragmented markets • To understand the structure of banking Struc.Assign. Not Available and financial services industry (globally), • To discuss the competitive strategies of Keywords the consolidation wave and its impact Pernod Ricard on Deutsche bank Customer Insights; Shoyu; Value added • To exemplify the inorganic growth products; Production plants; • To debate the goal duality of social strategy in business development Diversification; Product innovations; responsibility vs profitability. Brand awarness; Promotional strategy; Industry Alcohol Beverage Industry Industry Banking and Financial Globalisation; Localisation; Expansion Reference No. GRS0172A Services strategies of a global food retailer. Year of Pub. 2006 Reference No. GRS0173A Teaching Note Not Available Year of Pub. 2006 Struc.Assign. Not Available Teaching Note Not Available Struc.Assign. Not Available Keywords Pernod Ricard; Business Strategy; Strategic Management; Mergers and Acquisitions; 39 www.ibscdc.org Organic Growth; Inorganic Growth; Market Samsonite In 2006 • To discuss the growth strategies followed Entry Strategies; Market Development by the market leader Samsonite Strategies; Competitive Strategies; Samsonite Corporation (Samsonite), one Globalisation; Market Expansion of the world’s largest and most recognised • To discuss how Samsonite has been Strategies; Horizontal Integration; designers, manufacturers and distributors established as a global brand of travel goods, posted net sales of $966.9 Alcoholic Beverages; Wine and Spirits; • To analyse the diversification strategy million in 2006. Champagne; Sparkling Wine; Allied followed by Samsonite Domecq; Seagram; Second-largest wine and Samsonite depended heavily on luggage • To discuss the market positioning, spirits company. sales and the luggage sales depended on the product and brand management by growth of travel industry. The impact of Samsonite the dot.com burst in 2000-01, SARS in The Future of MySpace 2002-03 and 9/11 (terrorist attack on Twin • To discuss the image makeover of Towers in the US) had hit the travel Samsonite from a luggage manufacturer The development of technology and industry and in turn the luggage sales. In to a ‘Travel Solutions Provider’ Growth Strategies Growth Strategies Growth Strategies Growth Strategies Growth Strategies increased usage of internet gave the 2001-2002, the global travel turnover had traditional social networking concept a new dropped by 4%-5%. Realising the need for • To debate whether Samsonite’s strategies dimension. MySpace.com (MySpace), a diversification and to minimise its will keep it at the top of the industry. social networking website launched in 2004, dependence on the luggage segment Industry Luggage Industry became successful within a short period of Samsonite began to emphasise on other Reference No. GRS0170A time. MySpace offered services such as products like apparels, eyewear and Year of Pub. 2006 blogs, messaging, member searching, music footwear. Teaching Note Not Available and events. By 2006, MySpace with a Struc.Assign. Not Available market share of 75.56% became the leader In 2004, Marcello Bottoli (Bottoli), a among the social networking websites and former president and Chief Executive Keywords in March 2006, it was ranked as 2nd most Officer (CEO) of Moet Hennessy Louis viewed website (by page views) in the US. Vuitton (LVMH) joined as the CEO of Global luggage industry; US luggage industry; Samsonite. He wanted to revamp the Soft side and hard side luggage; Product The popularity of networking websites had company as he believed that the strain of categories of Samsonite; Product line drawn many popular sites to launch their multiple changes in ownership, ever since extension; Growth through diversification; own social network sites. The competition Shwayder family sold Samsonite in 1973, Positioning of Samsonite products; had become intense. Further, the US had begun to take its toll. Bottoli’s plans Promotion through advertisement; One Federal Communications Commission included foraying into the “affordable stop shop for luggage; Multi branding introduced legal amendments to control luxury” category, adding markets, strategy; Life is a Journey; Samsonite the activities of social networking websites diversifying the Samsonite product spinners; American Tourister; Samsonite and their misuse. In the cluttered maze of portfolio as well as targeting more sales in Silhouette; Samsonite Black Label. networking sites how would MySpace global markets for the company’s value maintain its leadership needs to be seen? label, American Tuorister. Aspiration of Starbucks in China: Pedagogical Objectives Though Samsonite was a well-known global brand, it made losses for almost 4 years Popularizing coffee among tea • To study the concept of social since 2000-2001, turned profitable in drinkers networking websites and its benefits to 2003-2004 and again posted a loss in the consumers and marketers 2004-2005. By 2006, it was positioning In 2006, the specialty coffee retailing itself as the “travel solutions company”, company, Starbucks had over 11,000 stores • To study the efforts of MySpace in but it still posted a loss of US$1.5 million in 36 countries of the world, employed attaining leadership position within a in 2005-2006. Although the strategic over 10,000 people and every week over short period of its inception initiatives to turn the brand over and 40 million customers visited Starbucks coffeehouses. After phenomenal success in • To discuss the growth strategies followed extend the portfolio had paid off in terms the US, its home country, and by MySpace of revamping Samsonite’s image, experts were still skeptical of Bottoli’s initiatives revolutionising specialty coffee culture, • To discuss the challenges of legal to keep the company profitable. Starbucks undertook international amendments laid by the US on the social expansion and popularised its specialty networking companies The case describes the growth and coffee worldwide. The initial pages of the development of Samsonite as a global brand case delineate the origin and growth of • To analyse the leadership prospects of and organisation. The competitive Starbucks as a company and a brand and MySpace in future. advantage for Samsonite was innovation the paramount contribution of Howard Industry Social networking website and it had tried to capture various ranges Schultz and other key leaders. of the market by servicing through all Reference No. GRS0171A In 1999, Starbucks entered China, the Year of Pub. 2006 segment brands. Its manufacturing and out- sourcing strategy has also been a key world’s most populous country and an Teaching Note Not Available emerging superpower, through selective Struc.Assign. Not Available manifestation of its corporate strategy. The case details the image makeover joint ventures. It opened retail outlets at Keywords strategy of Samsonite and ends with the high visibility locations. It did not market discussion whether this will provide or advertise its stores and relied mainly on MySpace; social networking website; News Samsonite the success it aims at. word-of-mouth promotion. Instant coffee Corporation; Rupert Murdoch; product was popular in China, but specialty coffee differentiation; market leader; acquisition; was introduced and popularised among the revenue model; consumer behavior; social Pedagogical Objectives Chinese by Starbucks and became the image; diversification; Friendster.com; • To understand the nature and structure market leader in specialty coffee in China. Classmates.com; Cingular Wireless; Helio of global luggage industry Witnessing its success, many competitors Inc. followed suit. Starbucks entered one region after another and within a few years of 40 www.ibscdc.org

operation and initial success in China, competition. They competed for the same • To discuss the growth strategies followed

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S Starbucks had moved China up to the No. market. At the same time, they shared a by Yahoo in a competitive market II – Y G E T A R T S 1 priority and proclaimed it to be the second common goal of luring customers away largest future market after the US. from the burger joints. One analyst believed • To analyse the unique model of Yahoo Starbucks was all prepared, but according Quiznos offered a better product than and its pros and cons to industry analysts, the task of Subway but might have limited its growth • To debate on the success of such a model popularising coffee, primarily a western potential by positioning itself between fast for Yahoo and whether its a competitive concept, in a traditionally tea-drinking food and fast casual. Quiznos’ aggressive advantage for Yahoo. country, was gigantic and will not be easy. movements signaled intentions similar to How Starbucks continues to bolster its Subway’s early ambitions. Could Quiznos Industry Information Technology success and achieve its aspiration remains up root Subway from the number one Reference No. GRS0167A to be seen. The case is targeted at position in the sandwich franchise market? Year of Pub. 2006 management students and can be taken up Teaching Note Not Available in their Strategic and General Management Pedagogical Objectives Struc.Assign. Not Available curriculum. On the background of the Keywords information provided in the case, the • To discuss the growth and expansion students can discuss and chart out further strategies of Quiznos, a relatively small Innovation; Peripheral Vision; strategies of Starbucks in China and the company and how it posed threat to the Diversification in related Industries; roadmap of its success. market leader Challenging the Leader; Growth Strategies • To discuss various advertisement of an Innovator; Competitive Advantage; Pedagogical Objectives campaigns of Quiznos Search Engine Industry. • To trace the journey of Starbucks from • To analyse the unique business model of a modest start to its becoming the market Quiznos. leader; worldwide and in China Albertsons Incorporated’s Industry Fast Food Industry Dilemma • To analyse the Chinese beverage market Reference No. GRS0168A on the basis of Michael Porter’s five Year of Pub. 2006 Albertsons Incorporated, America’s second- force model Teaching Note Not Available largest supermarket chain with more than Struc.Assign. Not Available 2,500 stores and revenue of around $40 • To discuss the growth and competitive billion enjoyed a presence across 37 states strategies of Starbucks in China and Keywords of the US. It operated under various brand debate on its future potential keeping in names including Albertson’s, Acme Quiznos Subs; Subway; Fast Food view the increasingly fierce competition. Markets, Bristol Farms, Jewel, and Shaw’s. Restaurant; Fast Casual; Sandwich Chain; Industry Specialty retailing/Beverages Submarine Sandwich (Subs); Franchise; Albertsons faced competition from Kroger, Reference No. GRS0169A Marketing; Advertising; Promotion; Low Safeway and Wal-Mart. The supercentres Year of Pub. 2006 Carb sandwich; Business Model; industry of Wal-Mart, which offered products at Teaching Note Not Available leader; Product Differentiation. lower prices, affected the net income of Struc.Assign. Not Available Albertsons, which fell from US$865 million Keywords in 2003 to US$556 million in 2004. In Yahoo in 2006 spite of the revival efforts undertaken by Starbucks; Howard Schultz; Seattle; Japan; Albertsons, the net income further declined China; specialty coffee; instant coffee; Yahoo Inc. recorded revenues of $5.2 to US$474 million in 2005. CEO Larry coffee culture; third place concept; barista; billion in 2005. Started as a web directory Johnston eventually decided to sell the differentiation; market expansion; spoke in 1994, during the dotcom boom, Yahoo chain but faced dilemma whether to sell and hub strategy; word-of-mouth rapidly established itself as a leading web the whole or a part of it. promotions; market entry strategy; joint portal. But with the dotcom bust in 2000, The case traces the origin, growth and venture; competitive scenario; market Yahoo’s revenues saw a steep downturn. various acquisitions undertaken by structure; market development; Starbucks The company reported a loss of $9.2 Albertsons, the second largest supermarket experience; Frappuccino; lifestyle million in 2001. The leadership change in chain in US. The case focuses on the marketing; market leader strategies. 2001 was a rescue effort. Under Terry Semel, revival efforts carried out by Albertsons to Yahoo staged a comeback by undertaking sustain competition from Wal-Mart various strategic initiatives. By 2006, supercentres and ends with the dilemma Yahoo emerged as an integrated online Quiznos Sub in 2006 faced by Larry. media company. But some analysts opined Quiznos was a fast food sandwich chain that Yahoo’s diversification strategy made specialized in toasted submarine sandwiches it lose focus and rendered it without any Pedagogical Objectives in North America. Though still a fraction competitive advantage in any particular • To discuss growth and competitive of the size of Subway, it had over 4400 area. strategies in retail industry outlets in the US alone, over 300 in Canada, and 100 other outlets scattered in 13 other The case describes the growth strategies • To analyse the competitive scenario countries. The company was aggressive at followed by Yahoo. It highlights the created by the presence of new store expansion; it opened a new store every 16 competitive advantage Yahoo acquired in formats. hours. The Subway restaurant chain was various industries and the case ends with a Industry Retail chains the world’s largest submarine sandwich debate whether Yahoo’s jack of all trades Reference No. GRS0166A franchise chain and had held number one strategy make it master of none? Year of Pub. 2006 position since 2001. By February 2006, Teaching Note Not Available Subway had opened more than 25,000 Pedagogical Objectives Struc.Assign. Not Available restaurants in 83 countries. Subway and • To understand the structure of search Quiznos were locked in an unusual engine industry 41 www.ibscdc.org Keywords research-intensive healthcare groups and Subway had opened more than 25000 its core businesses were pharmaceuticals restaurants in 83 countries. Subway had Albertsons Inc.; Supermarket industry; Joe and diagnostics. Roche employed about franchises throughout the US and in several Albertson; Larry Johnston; Kroger; 65,000 people in 150 countries. Roche countries, in locations such as freestanding Safeway; Wal-Mart; Supercentres; Acme entered China in 1926 and had established buildings, airports, convenience stores and Markets; Bristol Farms; Jewel; Kohlberg its subsidiary in Shanghai. But for almost sports facilities. It employed about 150,000 Kravis Roberts & Co.; Consumer spending; six decades, it did not have significant people worldwide. Consumer purchase behaviour; automation; operations and presence and returned to distribution; customer relation; acquisition; the Chinese market in 1988. Roche had The fast food chain was criticized for its competitive strategy; price war; market largely made its presence felt in China franchising policies. It was claimed that share; buyout; bidders; management through joint ventures and it is only Subway was involved in many legal disputes dilemma recently that it has opened a research with franchisees, usually for its over centre in China. In 2004, Roche opened aggressive expansion (one Subway was very its new R&D center in Shanghai, China, close to other Subway, which ended in competing with each other) and high Growth Strategies Growth Strategies Growth Strategies Growth Strategies Growth Strategies The Chocolate Trail which was part of Roche’s global R&D operations and which worked in royalties. The DAs were blamed as it was Sweet snacks dominated the global snack collaboration with its other global centers. in their best interest to saturate markets market with sales exceeding US$112 billion This is indicative of the growing with Subway outlets in a region. Subway annually. Chocolate was the largest sector importance of China for Roche and the was sued by some of its franchise owners. in terms of value within the global snack pharmaceutical industry of the world. Subway included arbitration clause in its market. The industry was faced with a franchise agreements. As 2006 got under sluggish economy, market consolidation, The case traces the entry, re-entry, growth way, the Subway management wondered rising costs and intense competition. Even and ambitions of Roche in China. The case what direction the company should take. though the growth of global confectionery analyses the pharmaceutical industry in The case discusses the growth and was tortuous, but still there was an China and attempts at identifying the expansion of a restaurant chain which increasing demand for premium chocolates, potential and challenges the country became number one in the industry in a healthier confections, exotic flavours and presents for Roche. The long term aim of short span of time. The case also discusses colours. The developing markets had Roche in China is to discover and optimize different ad campaigns of the company to ample growth opportunities through new molecules which would address the gain consumer attention. The case effective market segmentation. unmet medical needs of China and the world. How Roche capitalised on the highlights unique business model adopted Like coffee, chocolate was going complex growing pharmaceutical industry of China by the company and its product and upscale. The latest rage for chocolate and realised its ambitions remained to be differentiation strategies. The industry in the US was to go to a ‘Chocolate Bar’ seen. leader is now criticised for its over instead of buying a ‘chocolate bar’. The aggressive expansion policies. history of chocolate houses was being Pedagogical Objectives repeated. Would the chocolate lounges be Pedagogical Objectives able to give a Starbucks-like experience • To analyse the pharmaceutical industry and increase the consumption of in China and its growing relevance in • To discuss the growth and expansion chocolates? the global pharmaceutical industry strategy of the market leader • To undertake the SWOT analysis of • To discuss the advertisement campaigns Pedagogical Objectives Roche with regard to its ambitions in of the company and its unique business model. • To analyse the global and US chocolate China industry • To discuss the growth strategies of Roche Industry Fast Food Industry Reference No. GRS0163A • To illustrate effect market segmentation in China. Year of Pub. 2006 • To understand growth strategies of Industry Pharmaceutical Industry Teaching Note Not Available Chocolate bars. Reference No. GRS0164A Struc.Assign. Not Available Year of Pub. 2006 Industry Sweet Snacks Teaching Note Not Available Keywords Reference No. GRS0165A Struc.Assign. Not Available Subway; Fast Food Restaurant; Fast Casual; Year of Pub. 2006 Sandwich Chain; Submarine Sandwich Teaching Note Not Available Keywords (Subs); Franchise; Marketing; Advertising; Struc.Assign. Not Available Roche; China; Pharmaceuticals; Promotion; Business Model; Industry Keywords Diagnostics; Research & Development Leader; Product Differentiation; Nutritious Centre; industry structure; patent laws; Food. History of Chocolates; trends in chocolate intellectual property; WTO; low-cost consumption; ethel’s chocolate lounges; manufacturing; traditional medicine; premium chocolates; Hershey; Mars; Lindt; market potential; GMP; demographics; Wikipedia: The ultimate Cadbury’s; Nestle; Candy; gourmet challenges; counterfeited drugs; Guanxi; chocolates; market leader; global sales; joint venture; Customer Relationship information destination! chocolate consumption; confectionery; Management. Wikipedia was a non-profit, multilingual, Sweet snacks; market segmentation; the open content online encyclopedia. Since US chocolate market. its inception Wikipedia grew consistently Subway in 2006 with enormous pace and as of February, 2006 had a collection of more than Arcleor: Roche in China in 2006 The Subway restaurant chain was the 3,380,000 articles written by about 43,000 world’s largest submarine sandwich authors, across the world in about 200 In 2006, F. Hoffmann-La Roche & Co. franchise chain and had held number one languages. (Roche) was one of the world’s leading position since 2001. By February 2006, 42 www.ibscdc.org

Jimmy Wales (founder of Wikipedia) along After taking over SIA in 1984 as CEO, were rising which hurt exports. An outdated

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S with his friend Larry Sanger initially started Cheong stretched the airline worldwide. family-controlled corporate structure was II – Y G E T A R T S Nupedia, an encyclopedia which was Cheong left in mid-2003 after running SIA also a concern for Samsung. Would Samsung reviewed by experts. Later on with the for 19 years. be able to sustain its growth when it was adoption of software Wiki, Nupedia lost facing competition from local as well as importance and Wikipedia prospered. In 2006, SIA faced new competition not global players? Though within a short period, Wikipedia only from low cost airlines, but also from gained enough prosperity it often faced players like Emirates Airlines which The case discusses how a market follower criticisms on the reliability of the data on operated out of a hub in Dubai. The carrier company restructured and turned itself into its website. and its base had modeled themselves on a leading global electronics manufacturer SIA and Singapore’s Changi Airport. in the span of 10 years. The case highlights The case discusses how both Jimmy Wales OneWorld, SkyTeam and Star Alliance how the investment in Research and and Larry Sanger started Nupedia, why they (SIA’s partner) were three predominant Development, even in times of financial shifted to Wikipedia and the loss of global alliances. The open-skies restraints crisis, helped the company achieve growth compatible corporate governance between forced SIA to join the Star Alliance. SIA and become market technology leader. The them, which forced Larry to leave had become the sixth-largest airline in the case details out Yun’s style of leadership Wikipedia and start his own encyclopedia, world in terms of international passenger- and the strategies he implemented to Digital Universe. kilometers. Meanwhile, SIA faced various transform the company. The company’s concerns. It was fraught with low yield emphasis on Research and Development, Pedagogical Objectives among all major international airlines due marketing, brand equity, human resource, its hub and spoke model. and inventory management helped • To study the concept of open source company to gain market share. As the software and its benefits Pedagogical Objectives company’s main source of income was • To discuss the success of Wikipedia through exports, managing the fluctuation • To illustrate brand management, in the Won-Dollar exchange rates also • To discuss the corporate governance and customer service management, growth became a matter of concern. ethical issues in the Wikipedia strategies • To discuss the growth strategies followed • To discuss the growth strategies of an Pedagogical Objectives by Wikipedia. airline • To discuss the growth strategies followed Industry Open content online • To illustrate the leadership qualities of a by Samsung encyclopedia CEO and crisis management. • To discuss the leadership at Samsung and Reference No. GRS0162A Industry Airline Industry its impact on the corporate strategy Year of Pub. 2006 Reference No. GRS0161A Teaching Note Not Available • To debate the sustenance of its growth Year of Pub. 2006 Struc.Assign. Not Available in future. Teaching Note Not Available Keywords Struc.Assign. Not Available Industry Consumer Electronics Industry Reference No. GRS0160A Wikipedia; Open content online Keywords Year of Pub. 2006 encyclopedia; Nupedia; Wiki; Product Singapore International Airlines; Teaching Note Not Available cannibalisation; Leadership issues; Ethics; Leadership; Strategy; Managing Global Struc.Assign. Not Available Corporate governance; Britannica; Airline; History of SIA; Quality Customer Keywords Reliability of information. Service; SARS; Fuel Prices; Cost; Innovation; youngest fleet; Chew Choong Samsung Electronics; Electronics Industry; Seng; Cheong Choong Kong; Star Alliance; Consumer Electronics; South Korea; Singapore International Airlines Hub and spoke model. Chaebol (Conglomerate); Dynamic in 2006 Random Access Memory(DRAM); Static Random Access Memory (SRAM); flash Singapore Airlines Limited (SIA), one of Samsung Electronics in 2005 memory chips; flat panel LCD displays; the most successful airlines in the world cell-phones; LCD monitors; NAND flash was a favourite among business travelers In 2004, Samsung Electronics (Samsung), memory; nano; Technology; Yun Jong on long flights. Chew Choong Seng, the the flagship company of Samsung Group, Yong (Yun); Organisation Restructuring; CEO, faced the challenge of ensuring that was the world’s largest memory chip maker Transformation; Leadership; Research and the travellers kept flying SIA even as and Asia’s biggest electronics manufacturer. Development; Product Innovation; competition intensified. While full-service Samsung’s revenues accounted for 6.6% of Inventory management; Core airlines were facing a global decline in 2003, Korea’s GDP. It had strategic alliances with Competence; Business Strategy; Human with the US and the European Air carriers various global companies such as Sony, IBM, Resource Management; Marketing; going bankrupt and slashing staff, flights Microsoft, Hewlett Packard and Dell. In Branding; Corporate Governance; Niche and passenger amenities, SIA was flying 1997, the company was facing problems market; Strategic Alliance; Globalisation. high. In 2004, SIA began its first ever non- due to Asian Financial Crisis, and at the stop air services between Singapore and same time, demand and prices of memory the United States. The major drivers of chips were falling. Yun, the CEO, took steps Westside in 2004 the SIA brand were innovation, genuine and transformed the image of the company quality and excellent customer service. SIA from manufacturer of me-too products to In 2004, the Indian retail market was at maintained the youngest fleet of aircraft stylish, premium, latest technology products INR 8,000 billion, with the organised and replaced older aircraft with newer and helped company to gain market share sector accounting for a measly 2%. The better models. in each product segments. In 2005, the case examines the foray of Tatas, one of Cheong Choong Kong had led SIA through management of the company was worried the largest business houses in India, into the Asian economic crisis in 1998, when as dollar was depreciating; growth of cell organised retailing with Westside – a chain most travelers and airlines were grounded. phone markets were shrinking and oil prices of department stores. 43 www.ibscdc.org The case highlights the key decision Pedagogical Objectives Keywords variables and the winning elements in Westside’s business model – from private • To discuss and bring out the importance The Otto Group; Multi-channel sales labeling strategy to its merchandise of peripheral vision and the “loss strategy; E-retailing; Catalogue retailing; management, to its customer centric leadership” concept Over-the-counter retailing; Michael Otto; approach. It also details out Westside’s Mail-order; Expansion strategy; • To discuss Porter’s five forces model of Competitive strategy; Business style of functioning in terms of operations, Industry structure analysis marketing, customer relationship environment; M-commerce and T- management, customer services and human • To analyse the growth strategies adopted commerce; Introscope solution; Microsoft resource management – the chain’s by the leader, challenger and the follower Windows XP Media Center Edition 2005; emphasis on pricing, merchandise mix, in the given industry. German consumer behaviour; Amazon and store interiors and training their eBay. Industry Personal Care employees. It reflects on how Westside Reference No. GRS0158A identified and implemented a retail model: Year of Pub. 2005 Growth Strategies Growth Strategies Growth Strategies Growth Strategies Growth Strategies the success that followed. Teaching Note Not Available Deutsche Bank: The Struc.Assign. Not Available Transformation from a Pedagogical Objectives Domestically-focused Retail Keywords • To discuss the growth strategies followed Bank into a Global Powerhouse Business Strategy; Loss Leadership; by Westside for its growth in Indian German financial giant, Deutsche Bank Strategic Management; Core Competence; retail market (DB) had been striving to move away from Product Placements; Product Innovation; its age-old precept of serving only the • To understand the Indian retail industry Peripheral vision. domestic market. The German financial • To discuss the retail model adopted by market is fragmented and it is a herculean Westside and its success in the task to manage a business due to provincial competitive environment. The Otto Group: Germany’s politics and huge losses in lending loans to its compatriot companies. To reduce its Industry Retailing Leading Private Retailer’s Multi- dependence on its domestic markets and Reference No. GRS0159A channel Sales Strategy leverage on the booming global financial Year of Pub. 2005 In 1949, Werner Otto founded Otto markets, DB was endeavouring to become Teaching Note Not Available Versand as a mail-order shoe company in a global financial powerhouse. With its Struc.Assign. Not Available Germany. Through alliances, joint ventures operations in 74 countries, DB has become Keywords and acquisitions, the company diversified one of the largest global banks and also into textile, furniture, logistics and hardware won “Bank of the year” award in 2003 and Retail strategy; Private Label strategy; sectors eventually. The Otto Group became for the second time in 2005. “Passion to Vendor management; Merchandise a mail-order behemoth in Germany, perform” tagline has spurred its 64,000 Management; Supply chain management; specialising in catalogue retailing. In 1981, staff worldwide to do better and achieve Store layout and interiors; Retail marketing Michael Otto, son of the founder, became 25% return on equity in 2005. mix – Positioning; Pricing; Branding; Visual the CEO of the Group. Michael Otto Merchandising; In-store sales promotion; strengthened the competitive position of Pedagogical Objectives Customer relationship management the Group by introducing a multi-channel sales strategy in the mid-1990s. The new • To discuss the need for DB to change its strategy included selling via three prime business focus from domestic retail Razors Duel: For Women’s Sake! routes: e-commerce, catalogue and over- banking to becoming a global financial the-counter. Under e-commerce, Otto also powerhouse In 2005, the razor war between Gillette provided t-commerce (through television) • To understand the strategies adopted by and Schick had intensified. Gillette, was and m-commerce (through mobile) the company towards achievement of the undisputed leader. Schick was the services. Under his leadership, Otto this objective challenger and BIC was the follower, in became the largest international mail-order the Personal Care and Hygiene Industry. and catalogue retail company and the • To evaluate the strategies adopted to go Gillette was the pioneer of the second largest online retailer after Amazon. global revolutionary disposable razor designed in • To discuss the challenges faced by DB in 1895 by King Camp Gillette. It went into Pedagogical Objectives the blade and razor business in 1901 and managing a global business with since then was a strong believer in constant • To discuss the growth of the Otto Group diversified product portfolio. product innovation. In 2000, Gillette over the years Industry Banking introduced Venus a razor for women which • To discuss the multi-channel sales strategy Reference No. GRS0156 soon became the No.1 women’s brand introduced by Michael Otto and identify Year of Pub. 2006 worldwide. Schick followed suit by the underlying reasons for its success Teaching Note Not Available introducing Intuition, Women’s razor Struc.Assign. Not Available which made some gains against Gillette. • To discuss the sustainability of the BIC also followed and served the Women’s advantage that the Otto Group has over Keywords segment. The three major razor makers its competitors in the light of growing Corporate and Investment Bank (CIB); had been jostling for shelf space for almost competition and a difficult business Private Clients and Asset Management three decades. In January 2005, Gillette environment. decided to merge with Procter & Gamble (PCAM); Corporate Investments (CI); Co. which gave it greater distribution in Industry Retailing Retail banking; Josef Ackermann; Anshu emerging international markets and a Reference No. GRS0157 Jain; Integration of global operations; competitive advantage over its rivals. Year of Pub. 2006 ‘Bank of the year’ award; Product Teaching Note Not Available innovation; Risk management. Struc.Assign. Not Available 44 www.ibscdc.org

AT&T and BellSouth Merger: Disney in the Digital Age: Dell in India: The Growth

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S Reshaping the US Telecom Profiting from New Media Strategies Industry? Platforms In 2001, Dell, the world’s largest PC This case captures the evolution of the US Disney-ABC, a part of the Media Networks manufacturer, set up its first fully-owned telecom industry and the competitive of Walt Disney Company had established subsidiary in India. In 2003, Dell India scenario of the industry after the itself well in the traditional broadcast TV. witnessed sharp decline in its business as it implementation of the But the broadcast media was going through had to encounter the anti-outsourcing Telecommunications Act of 1996. Besides, a frenetic phase with the emergence of backlash in the US. However, it bounced the rapid technological changes in new media platforms, such as Digital Video back within a short span of time and has telecommunications sector coupled with Recorders (DVRs or PVRs), Video On emerged as the biggest contributor to Dell’s digitisation and integration of Demand (VOD), and portable viewing strategic vision of global dominance in the telecommunication services with technologies like Video iPod, Mobile TVs PC market. By the end of 2005, Dell India computers have created intense pressure and the Internet. The potential of earning became Dell’s biggest base outside the US on traditional pricing structure, especially incremental revenues from subscriptions, and it is believed to play a stellar role to in voice telephony. This has led to a licence fee and advertising had attracted help Dell achieve its goal of becoming a consolidation in the US telecom industry, major media companies to adopt these $80 billion company by 2010. the biggest example being the proposed technologies. Disney-ABC, in October merger between AT&T and BellSouth. 2005 entered into an agreement with Apple Pedagogical Objectives However, analysts observe that the prime Computer to offer its content through challenge for the US telecom industry would Apple’s iTunes Music store. But it • To describe the growth strategies of Dell be the question of survival, as consumers encountered opposition from its affiliate India amidst challenges like anti- might be unwilling to pay a premium for stations who feared the threat of outsourcing backlash in the US and the innovative services which the telecom cannibalisation. Added to this, research unavailability of trained personnel to companies are introducing in rapid showed that customers preferred the perform complex functions succession. traditional broadcast model to video iPod. • To understand how Dell India Analysts say that the new media platforms transformed itself from an outsourcing Pedagogical Objectives are only additive to the traditional TV destination to one of the strategically viewing. It remains to be seen whether important operations for Dell • To understand the evolution of the US Disney-ABC would manage to add more telecom industry, the rise of AT&T as a viewers to its base with the use of the • To focus on how Dell is trying to gain monopoly and the effect of telecom emerging media platforms. prominence in the lucrative Indian PC deregulation on the industry market against challenges like the presence of a big unorganised sector, low • To discuss the concept of digital Pedagogical Objectives internet penetration and intense price convergence and how it is transforming • To understand the changed dynamics of competition from other major global the once segmented US telecom market the television and broadcasting industry vendors like Lenovo and HP. into a converged market and its resultant effect on the media Industry Personal Computers • To discuss the role of the Federal companies Reference No. GRS0153 Communications Commission in • To learn about new media platforms such Year of Pub. 2006 allowing small telecom companies in the as DVR, VOD, iPod, Mobile TVs and Teaching Note Not Available US to consolidate and form a few big the Internet, and their advantages and Struc.Assign. Not Available companies to offer similar products disadvantages through different media Keywords • To analyse whether Disney’s adoption • To analyse the financial viability of the of the new media technologies would be The global personal computer (PC) AT&T and BellSouth merger. profitable manufacturing industry; Global PC market; Dell India; Pertech Computers Limited; Industry Local Exchange Carriers • To understand the limits of competition Dell’s initial operational constraints in Reference No. GRS0155 and unearth various issues Disney-ABC India; Dell’s captive centres across the Year of Pub. 2006 has to resolve while adopting new media. globe; Dell’s Global Development Centres; Teaching Note Not Available Dell’s Direct Model for India; Growth of Struc.Assign. Not Available Industry Television and Broadcasting the Indian PC market; Dell’s competitors Reference No. GRS0154 in India. Keywords Year of Pub. 2006 US telecommunication industry; Teaching Note Available Consolidation in US telecom industry; Struc.Assign. Not Available EvrazHolding: Growth Strategies Digitisation in US telecom industry; Keywords RBOCs (Regional Bell Operating of the Largest Steel Manufacturer Company); BellSouth; MCI; Verizon; Disney-ABC; Traditional Broadcast of Russia Southwestern Bell Corporation; Mergers Television (TV); Video On Demand (VOD); and alliances in the US telecom industry; Video iPod; Internet and mobile TV; New EvrazHolding, one of the largest vertically Synergies in the US telecom industry; media platforms; New business venture; integrated steel manufacturing and mineral Bundling services; Telecommunication Act Business life cycle extension; Revenue ore-processing group in the world, has 1996. model; Business model; iTunes Music Store; grown over the years by mainly Video piracy; Cannibalisation. concentrating its operations in Russia and other countries of the erstwhile Soviet Union. The success of the group could be attributed to its competitive strengths like a dominant low-cost producer of steel products, a vertically integrated business,

45 www.ibscdc.org a dynamic and experienced management Industry Direct Broadcast Services world’s third-largest retailer, to expand into team, and an ever-growing mining business. Providers foreign markets for sustaining its future To continue its growth, the group was Reference No. GRS0151 growth in the global retail industry. The planning to establish its operations in other Year of Pub. 2006 company initiated its international European countries as well as in Asia Teaching Note Not Available expansion strategy by venturing into through acquisitions. Struc.Assign. Not Available Central Europe, Asia and the US. Despite having sufficient scope to expand globally, Keywords Pedagogical Objectives Tesco faced challenges like varied customer British Sky Broadcasting Group Plc.; High demands, different cultures and declining • To understand the evolution of the Density Television; Growth strategies of sales growth in different markets. domestic Russian steel industry BSkyB; Differentiating strategies of • To discuss the strategies adopted by BSkyB; Convergence in communications Pedagogical Objectives EvrazHolding to establish itself as the industry; UK television broadcasters; James Murdoch’s strategies; UK television • To understand both the organic as well dominant steel producer in Russia as the inorganic growth strategies of Growth Strategies Growth Strategies Growth Strategies Growth Strategies Growth Strategies broadcasters; Sky services; Easynet • To discuss the future growth strategies acquisition; Triple play service providers. Tesco as a part of its International of EvrazHolding to be a leading producer expansion strategy of steel globally by establishing itself in • To discuss the market entry strategies other European countries as well as in adopted by Tesco to enter the US retail Asia through acquisitions Starbucks in China: Expansion Strategies market· To address Tesco’s challenges • To debate whether EvrazHolding would in its international expansion. be successful in its future growth In the 1990s, Starbucks Corporation, the Industry Grocery Retail strategies in face of increasing world’s No.1 specialty coffee retailer from Reference No. GRS0149 competition. the US, started expanding into international markets. After its success in Year of Pub. 2006 Industry Steel Japan in the mid-1990s, it started focusing Teaching Note Available Reference No. GRS0152 on China in the late 1990s. In 2005, after Struc.Assign. Not Available Year of Pub. 2006 its initial expansion in the major cities of Keywords Teaching Note Not Available China, Starbucks embarked on an Struc.Assign. Not Available expansion spree into China’s second-tier Retailing industry in UK; Global top retailers; Retailing in Asia; Retailing Keywords markets. However, analysts opine that in this initiative, Starbucks might face scenario in Europe; Carrefour; China’s Russian steel industry; EvrazHolding; challenges like cultural differences, high retailing industry; Localisation strategies; Alexander Abramov; Evroazmetall; EAM real estate prices, unavailability of land and European retailers in the US; Expansion Group; Vertical integration; Inorganic suitable employees. in Asia; Market entry in the US retail growth strategy; Acquisitions and mergers; market; Wal-Mart; Metro. Economies of scale; Operational efficiency Pedagogical Objectives at EvrazHolding. • To understand the market entry strategies Hynix’s Cost Efficiencies: The of Starbucks in the Asian market and South Korean Chipmaker’s how it became successful in Japan BSkyB: James Murdoch’s Growth Strategies “Differentiating” Growth • To discuss how Starbucks rapidly Hynix Semiconductor Inc. was established Strategies expanded in the major cities of China and which factors might restrict its plans in 1983 as Hyundai Electronics Industries British Sky Broadcasting Group plc. to capture China’s second-tier markets. Co. Ltd. Between 1997 and 2001, Hynix (BSkyB), the largest Pay-TV service was on the brink of bankruptcy due to a provider in the UK, has been at the Industry Speciality eateries downturn in the global chip market that forefront of introducing new technologies Reference No. GRS0150 left a huge debt burden on the company. in UK’s Pay-TV market. It has eight Year of Pub. 2006 However, it managed to come out of the million subscribers and plans to introduce Teaching Note Not Available crisis and transformed itself as the world’s the High Density Television Service in Struc.Assign. Not Available second-largest and the most efficient manufacturer of memory chips in the 2006. In 2003, James Murdoch, the son of Keywords Rupert Murdoch of News Corp., was world. appointed as the CEO of BskyB. Despite Coffee retailing in the US; Coffee business criticisms against this appointment, the in Europe; Growth strategies of Starbucks; Pedagogical Objectives company has grown rapidly under his China’s coffee market; Joint ventures leadership and is expected to attain its goal among coffee retailers; Competitive • To understand the growth of Hynix from of having 10 million customers by 2010. strategies; McDonald’s; KFC; Brand the early 1980s and its decline in the building by coffee retailing chains; Shanghai late 1990s Pedagogical Objectives President Coffee Co.; Starbucks in Ireland; • To discuss the strategies adopted by Maxim’s caterers. Hynix to recover from the brink of • To describe the growth of BSkyB amidst bankruptcy and become the second- challenges posed by convergence of largest memory chip manufacturer in the technologies Tesco, UK’s Largest Supermarket world by efficiently managing its costs. • To discuss how BskyB is trying to Group: International Expansion Industry Memory Chips & Modules establish itself as the leader in the British Strategies Reference No. GRS0148 Broadcasting market by differentiating Year of Pub. 2006 itself through technological innovations In the mid-1990s, saturation in its domestic Teaching Note Available and value-added services to its customers. market forced Tesco, UK’s largest and Struc.Assign. Not Available 46 www.ibscdc.org

Keywords competition and its absence in the ‘wealthy’ Teaching Note Not Available

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S southeast England, the bank faced the Struc.Assign. Not Available II – Y G E T A R T S World’s top memory chipmakers; South problem of ‘too many branches, too few Korean chipmakers; Cost efficiency in chip customers’. It was forced to sell off its Keywords manufacturing; DRAM (Dynamic Random Irish banks and focus on its core UK Chinese telecom market; China telecom; Access Memory) chip manufacturers; business. To revamp its declining sales, the Hyundai Electronics Industries Co Ltd; Competition; China mobile; Expansion bank launched various cross-selling strategies; Localisation; Cisco; Motorola; Micron; Samsung; LG Semicon; Corporate initiatives, changed its work culture and restructuring in South Korea; Research and development innovation; redesigned its offices to offer its customers Acquisitions and partnerships; Alcatel; STMicroelectronics; NAND (Not And) a club-like ambience. flash chip manufacturer; ProMOS Market share; Wireless; Challenges for Technologies Inc; Deutsche Bank AG; ZTE. Ekahau RTLS System; Downturn in global Pedagogical Objectives chip market. • To discuss the various cross-selling strategies adopted by National Australia AIG in China: The Expansion Bank Strategies Kodak in Asia. • To discuss whether it can achieve its Although AIG’s Chinese connection could Eastman Kodak Company, established in targeted growth in the highly be traced back to the property/casualty 1881, is the world’s largest manufacturer competitive European banking industry. insurer American Asiatic Underwriters of photography and optical equipments (established at Shanghai in 1919), it was in Industry Banking and Financial 1992, that AIG officially entered China by apart from being the No.1 in photographic Services films. However, since the 1990s, the setting up a subsidiary there. Over the years, Reference No. GRS0146 AIG was able to establish itself as a leading company has been witnessing rapid Year of Pub. 2006 transition from film-based photography to insurance company in China. However, the Teaching Note Not Available company faced several challenges in the digital imaging. As Asia has traditionally Struc.Assign. Not Available been considered a big market for traditional future and critics were sceptical about the products like films and film cameras, Kodak Keywords company’s continued success in China. expected to continue its traditional business NAB (National Australia Bank); Cross profitably in this region. However, Kodak’s Pedagogical Objectives selling initiatives; Expansion through calculations went berserk when the Asian acquisitions; European banking industry; • To highlight the expansion strategies market embraced digital technology much Restructuring strategies; Organisation work being followed by AIG in China faster than its Western counterparts. culture; Streamlining of operations; Australian banking industry; Yorkshire and • To discuss whether the company would Pedagogical Objectives Clydesdale Bank; Autonomy and decision be able to achieve continued success in the Chinese market. • To discuss the reasons for Kodak’s making; Trading scandal in National misinterpretation of the Asian market Australia Bank (NAB); John Stewart; Industry Banking and Financial Customer relationship management; Services • To debate the appropriateness of the Integrated Financial Solutions Centre; Reference No. GRS0144 strategies adopted by Kodak to transform Customer satisfaction and retention Year of Pub. 2006 itself into a digital imaging company and Teaching Note Not Available tap the growing Asian markets. Struc.Assign. Not Available Industry Photographic & Optical ZTE Corporation: The Chinese Keywords Equipment/Supplies Telecom Equipment Maker’s Manufacturers Global Expansion Strategies American International Group (AIG); Reference No. GRS0147 Chinese insurance sector; State-owned Year of Pub. 2006 Shenzhen-based ZTE Corporation is one monopolies; American International Teaching Note Available of the largest telecommunications Assurance Co. Ltd.; Underwriting; World Struc.Assign. Not Available equipment manufacturers and local wireless Trade Organisation; Wholly-owned service providers in China. With increasing branches; Expansion strategies; Joint Keywords competition in the domestic market, ZTE ventures; Regulatory framework; Maurice Kodak’s film photography business; began to expand in the international Greenberg; Martin Sullivan. Emergence of digital imaging; Digital markets. The company is planning to have competitors of Kodak; Kodak’s Asian a strong presence in Asia, South America market; Kodak going digital; Digital and Africa. ZTE, which invests 10% of its Caterpillar Inc.: World’s Leading photography business in Asia; The new annual income in its research and development, is also planning to foray into Earthmoving Machinery logo of Kodak; Kodak’s region-wise sales Manufacturer’s Growth Strategies globally; Kodak’s digital cameras. North America and Europe. In 2005, Caterpillar set out its vision for Pedagogical Objectives 2010 – to become a $50 billion company. National Australia Bank in UK: • To understand the growth of ZTE in Deriving its business from industries that Cross-Selling Strategies China and analyse the competitive are cyclical in nature, Caterpillar adopted scenario in its domestic market a strategy to generate profits during times Since its entry into Europe in the late of economic downturn. The company 1980s, National Australia Bank has focused • To discuss its global expansion strategies. believes that the strength of its strategy on expansion through acquisitions and has lies in its remanufacturing division, which Industry Telecommunications been operating as a one-stop shop for all recycles old parts and engines and sells them Equipment the financial needs of its customers. to its clients at half the price of new ones. Reference No. GRS0145 However, in the UK, due to intense Year of Pub. 2006 47 www.ibscdc.org Pedagogical Objectives John Hood’s Plans to Reinvent the CEO of HP. Hurd took initiatives to cut down costs, lay off employees and went • To discuss the growth strategies of Oxford University: The Challenges for acquisitions to expand the company Caterpillar globally and improve its market share. • To discuss whether the company could For over nine centuries, the name Oxford Though his strategies started reaping depend upon remanufacturing for University has been synonymous with benefits, few analysts opined that it would realising its vision in the face of visible excellence in teaching and learning. But of be a challenging task ahead for Hurd to signs of slowing down of the global late, it has faced tough competition from bring back the company on the path of economic growth rate. cash-rich US universities like Yale, Harvard growth and regain its lead among the IT and Stanford, drawing the best of teaching companies. Industry Construction, Mining and talent and students. Oxford encountered a Other Heavy Equipment severe resource crunch, and its old Pedagogical Objectives Manufacturing infrastructure was in need of revamping. Reference No. GRS0143 In October 2004, Dr. John Hood, a New • To highlight Mark Hurd’s strategic Year of Pub. 2006 initiatives to regain its lost ground Growth Strategies Growth Strategies Growth Strategies Growth Strategies Growth Strategies Zealander, was appointed as the vice Teaching Note Not Available chancellor of the university. He planned • To discuss the several options available Struc.Assign. Not Available to reinvent the university to give it an to Mark Hurd to transform HP’s Keywords edge over others by focusing on three fortunes. things: (1) developing the academic Six-Sigma; Critical success factors; strategy; (2) reviewing matters of Industry Personal Computers Diversification; Product demand cycles; governance; and (3) upgrading the financial Reference No. GRS0140 Low-cost strategy; Vision; Global position of the university. Year of Pub. 2006 expansion strategies; Remanufacturing Teaching Note Not Available industry; Ford; Service marketing; Market Pedagogical Objectives Struc.Assign. Not Available stagnation. • To highlight the strategies adopted by Keywords Hood to help Oxford regain its old glory Hewlett-Packard; Mark Hurd; Growth Microsoft’s Net Strategy: The • To highlight the challenges faced by strategies; Acquisitions; PC (Personal Business Model Makeover Hood because of the opposition from Computer) industry; Compaq; Expansion; academicians to change age-old practices IBM; Competition; Dell; Cost cutting; Microsoft, the No.1 software company in Carly Fiorina. the world, started expanding into Internet- • To discuss whether Hood will be based services from the mid-nineties successful in his endeavour. onwards. The company launched a number Industry Education Telefonica, The Spanish of Internet-based services to take on its Reference No. GRS0141 Telecom Company: Inorganic competitors. However, increasing Year of Pub. 2006 Growth Strategies competition from Internet-based service Teaching Note Not Available providers like Google and Yahoo! forced Struc.Assign. Not Available Traditionally, Telefonica, a Spanish Microsoft to come out with a new strategy telecommunication company has had a for its Internet-based services as well as a Keywords monopoly in its domestic market. new business model. But the question Dr John Hood; Oxford University; Although, the deregulation of the Spanish remained whether Microsoft would be able Decision-making system; Congregation; telecommunications sector led to increased to dominate the Internet-based services as Private partnerships; Government grants; competition from cable television it has been doing in licensed software since companies and Internet telephony, its inception. Tutorial teaching; Financial crunch; Oxford University Press; Academic Telefonica still maintained its leading strategy; Performance evaluation; position. However, with the domestic Pedagogical Objectives Governance; Privatisation; Endowments; market maturing since the late 1990s, Telefonica has laid down plans to expand • To highlight Microsoft’s strategy Reforms. globally through acquisitions and alliances. regarding Internet-based services and its new business model Pedagogical Objectives • To discuss whether Microsoft would be HP: CEO, Mark Hurd’s Growth as successful in its Internet-based services Strategies • To understand the growth of Telefonica in Spain as it has been in its licensed software Hewlett-Packard, a global IT company, is business. into the manufacturing of wide range of • To discuss Telefonica’s strategies to Industry Development Tools, Operating products such as PCs, servers, storage become one of the leading operators Systems and Utility Software devices, printers, network equipment and globally, beyond the hispanic markets Reference No. GRS0142 a software portfolio, which includes in Europe and Latin America. operating systems, print management tools Year of Pub. 2006 Industry Wireless Network Operators and network infrastructure. Since 2000, the Teaching Note Not Available Reference No. GRS0139 company could not generate much revenue Struc.Assign. Not Available Year of Pub. 2006 and lost its market share to its competitors Teaching Note Not Available Keywords like Dell and IBM. In order to compete Struc.Assign. Not Available Microsoft; Internet-based services; Net against these companies, in 2002, HP strategy; Google; Yahoo!; Netscape acquired Compaq. But, the then CEO Carly Keywords Navigator; Obsolescence of technology; Fiorina during her reign from July 1999 to February 2005, failed to accelerate growth Growth strategies; Inorganic growth Business model makeover; Windows Live; strategies; Acquisition strategies; Advertising-driven revenues. of the company. In March 2005, Mark Hurd (former CEO of NCR) was appointed Diversification; Telecommunication industry; Joint ventures and strategic 48 www.ibscdc.org

alliances; Synergy; O2; Cesky Telecom; Keywords the margins from engine-sales. By 2005,

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S Telecom industry in Europe; Telefonica due to increased customer focus, servicing II – Y G E T A R T S Movilles. Baidu.com; Sohu.com; Growth strategies; revenues contributed 59% of the total sales Competition; Google; Chinese search of Rolls Royce. engine market; Yahoo!; Chinese Google; Robin Li; Alexa; Acquisitions and Mittal Steel in Asia: Growth partnerships; 3721; Market share; Pedagogical Objectives Strategies SINA.com; Challenges for Baidu. • To highlight the growth of Rolls Royce in the global civil aerospace business Mittal Steel, the world’s leading manufacturer of steel has operations in four • To discuss Rolls Royce’s customer-driven continents and 14 countries. To enhance Avid Technology Inc.: The US competitive strategies for its growth in its global presence and to tap the sudden Digital Tools Provider’s Growth the future. rise in global steel demand, Mittal Steel is Strategies planning to increase its production capacity Industry Aerospace and Defence Parts by foraying into developing and low cost In October 2005, Avid Technology Inc, Manufacturing markets of Asia. which was started in 1987 in Massachusetts Reference No. GRS0135 (US), unveiled the Unity ISIS server, which Year of Pub. 2006 can store and share thousands of hours of Pedagogical Objectives Teaching Note Not Available digital video. Within eight years of its Struc.Assign. Not Available • To highlight how Mittal Steel became inception, Avid Technology has become a Keywords the largest steel company in the world world leader in digital editing and professional audio systems with revenues Rolls Royce; Global aero engine market; • To discuss its expansion strategies in Asia. of $589.6 million. Civil aviation industry; Divestments; Industry Steel Customer-driven strategies; Competitive Reference No. GRS0138 Pedagogical Objectives strategies; Aircraft service and Year of Pub. 2005 maintenance; Battle of Britain; Trent • To highlight Avid’s core ability to Teaching Note Not Available engine; Mergers and acquisitions; John provide innovative technologies to the Struc.Assign. Available Rose; 1977 bankruptcy; Cost-cutting digital media industry strategies; Total care; GE (General Electric Keywords • To discuss Avid’s strategy of growing both Inc) and Pratt & Whitney. Growth strategies; Expansion strategies; through acquisitions and restructurings. Acquisition strategies; Steel industry in Industry Multimedia, Graphics and India; Steel industry in China; Lakshmi Publishing Software Geox: The Italian Shoemaker’s Niwas Mittal; Ispat International; Reference No. GRS0136 Expansion Strategies Turnaround strategy; Acquisition Year of Pub. 2006 integration process; Posco; Bao Steel; Tata Geox was started in 1995 by Mario Moretti Teaching Note Available Steel; Global steel consumption; Pricing Polegate to manufacture and market his Struc.Assign. Not Available trends in steel industry. invention, ‘the breathing shoe’. Geox Keywords distributes shoes and apparels through its 278 mono-brand stores, 9,000 multi-brand Top digital tools providers; Macintosh Baidu.com: China’s Google? stores and 10,000 retail distributors in 68 systems; Apple computer; Post production countries. The company, which earned Beijing-based Baidu.com Inc. is China’s editing system; Open Media Framework revenues of •340 million in 2004, plans leading Internet search engine company (OMF); Digidesign Inc; Digitally edited to foray into the US, the largest sports with a market share of 37%. It started its film; Softimage Inc; Digital film composer shoe market in the world. operations in 2000 and broke even within systems; Image manipulation software; Avid Broadcast Video Board (ABVB); Non- three years. As its website is similar in Pedagogical Objectives appearance to Google.com, it is often linear media composer systems; Interactive referred to as ‘China’s Google’. Some 3D software technology; Miramax’s • To highlight the growth of Geox in Italy project Greenlight; Pinnacle Systems Inc. experts feel that Baidu, the Chinese • To discuss the expansion strategies of language search engine, does a better job Geox in the competitive but fragmented than Google. However, the going seems to global footwear market. be getting tough with other domestic Rolls-Royce’s Civil Aerospace players intensifying their competitive Business: ‘Customer Driven’ Industry Footwear efforts. Growth Strategies Reference No. GRS0134 Year of Pub. 2005 Pedagogical Objectives Rolls Royce, the world’s No.2 commercial Teaching Note Not Available airline engine manufacturer, started as a Struc.Assign. Not Available • To highlight comparison between Baidu carmaker and then diversified into aero- Keywords and Google engines and power generation machinery • To discuss growth of Baidu in the highly businesses. With increasing demand for aero- Global footwear industry; Italian footwear competitive Chinese search engine engines, the company divested many of its industry; US footwear industry; US sports market. businesses to increasingly focus on aero- shoe market; Core competency of Geox; engine manufacturing. However, faced with Competitive advantage of Geox; Breathing Industry Internet Search and Navigation intense competition from companies like shoe technology of Geox; Product Services General Electric. and Pratt & Whitney, its diversification at Geox; Product Reference No. GRS0137 revenues started declining. This prompted differentiation at Geox; Growth through Year of Pub. 2006 the company to enter the growing market global expansion; Distribution network of Teaching Note Not Available of aircraft services and maintenance where Geox; Supply chain management at Geox; Struc.Assign. Available the margins were usually 30%, much above Nike; Timberland; Adidas-Reebok. 49 www.ibscdc.org Genpact, GE’s Outsourcing Arm: to the increasing costs of compliance AstraZeneca’s Growth Strategies with regulations after the introduction Global Expansion Strategies th of the Sarbanes-Oxley Act in 2002. Formed on April 6 1999 through the General Electric Capital International merger of Zeneca Group Plc. from the UK, Services (GECIS), started as the Business Industry Oil and Gas Refining, and Astra AB from Sweden, AstraZeneca is Process Outsourcing (BPO) arm of General Marketing and Distribution engaged in research, development, Electric (GE) in India in 1997 and was Reference No. GRS0132 manufacturing and marketing of renamed as Genpact in late 2005, a year Year of Pub. 2006 prescription pharmaceuticals and health after GE sold its 60% stake in the company. Teaching Note Not Available care services. By 2005, it was among the Genpact, which has offices in Mexico, Struc.Assign. Not Available top five pharmaceutical companies in the world with a turnover of US$21.4 billion. Hungary, China and Romania in addition Keywords to India, introduced its own logo to create an independent global brand identity. To Koch; Georgia-Pacific; US; Private sector; Pedagogical Objectives further expand its operations, it acquired Public sector; Acquisition; Sarbanes-Oxley Act; Rise of privately-held companies in • To highlight the rationale behind the

Growth Strategies Growth Strategies Creditek, a US based financial management Growth Strategies Growth Strategies Growth Strategies firm and signed a partnership with Liberata, US; Public vs private companies; Market formation of AstraZeneca a UK-based BPO provider, in 2005. based management; Compliance cost for • To discuss AstraZeneca’s growth strategy public companies; Paper industry. of focusing on the research and Pedagogical Objectives development of innovative drugs to fulfil global health care needs. • To highlight the entry and growth Heinz in Europe: The Growth strategies of GE’s BPO services in India Industry Pharmaceuticals Manufacturers Strategies Reference No. GRS0130 • To discuss the strategies adopted by Year of Pub. 2005 Genpact to expand in the international Since its inception in 1869, Heinz grew Teaching Note Available market. over the years from a horseradish and pickle seller to a food processing giant through Struc.Assign. Not Available Industry Business Process Outsourcing acquisitions and new set-ups across the Keywords Reference No. GRS0133 globe. By the mid 1990s, it had over 5,700 Year of Pub. 2005 products and presence in over 110 Biggest pharmaceutical companies; ICI; Teaching Note Not Available countries. Though the company was Global investments in pharmaceutical Struc.Assign. Not Available successful in the US, its European business research and development; Novartis; was struggling. With an increase in size, Clinical research; Restructuring at Keywords inefficiency also surfaced. The problem was AstraZeneca; Balanced Scorecard (BSC); Global outsourcing industry; Indian compounded by a fluctuation in the Over the counter drugs; Health care outsourcing industry; Expansion through exchange rate, rising energy costs and services; GlaxoSmithKline; Agrochemicals; acquisitions at Genpact; Diversification competition from discount retailers. To Speciality drugs; Prescription strategies of Genpact; Competitive stymie the erosion of profit margin, Heinz, pharmaceuticals; Oncology; Neuroscience. advantage of Genpact; Competitors of under Tony O’Reilly and then under Genpact; Product diversification at William Johnson, adopted various measures Genpact; Growth through global expansion; to restructure Heinz Europe into a leaner Sanofi-Aventis: Jean Francois Global branding at Genpact; Genpact’s profit-making organisation. Dehecq’s Growth Strategies centres of excellence. Pedagogical Objectives The hostile takeover of Aventis by Sanofi- Synthelabo in May 2004, resulted in the • To highlight growth strategies adopted formation of Sanofi-Aventis, the world’s Koch Industries Inc.’s Acquisition by Heinz in Europe of Georgia-Pacific Corp.: third-largest pharmaceutical company. Jean • To discuss the problems faced by the Francois Dehecq, former chairman of Formation of the Biggest US Sanofi-Synthelabo and the man behind the Private Company by Revenue company and the subsequent strategic initiatives taken by the company to acquisition has, since then, driven the After acquiring the public sector company make Heinz Europe profitable. growth of Sanofi-Aventis by focusing on a Georgia-Pacific in November 2005, Koch multicultural research model and working Industry Sauces and Condiments Industries Inc. became the largest privately in small groups rather than committees Reference No. GRS0131 held company in the US in terms of that he believes are often mired in Year of Pub. 2005 revenue, with combined revenues of $80 bureaucracy. Teaching Note Not Available billion. With an existing business portfolio, Struc.Assign. Not Available which ranges from trading commodities to Pedagogical Objectives oil refining, the acquisition of Georgia- Keywords • To highlight the factors leading to the Pacific is expected to strengthen Koch’s acquisition of Aventis presence in the consumer products sector HJ Heinz; European food industry; that has been dominated by large players Restructuring strategies; Market entry • To discuss the growth strategies adopted like Procter & Gamble. strategy; Mergers and acquisitions; Project by Dehecq for Sanofi-Aventis amidst Millennia; Operation Excel; Vendor numerous challenges being faced by the Improvement and Product Enhancement Pedagogical Objectives global pharmaceutical industry. and Research (VIPER); Expansion • To highlight the acquisition of Georgia- Strategy; Advertising strategies; Supply Industry Pharmaceuticals Manufacturers Pacific by Koch and analyse their chain management; Cryovac packing Reference No. GRS0129 strategic fit system; Product innovation; European Year of Pub. 2005 ketchup business; William Johnson. Teaching Note Not Available • To discuss the trend of public sector Struc.Assign. Not Available companies going private in the US owing

50 www.ibscdc.org

Keywords over 26 brands in various categories, its Keywords

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S products are sold in 130 markets worldwide. II – Y G E T A R T S Sanofi; Aventis; Global pharmaceutical QUALCOMM; Paul Jacobs; Growth industry; Growth strategy; Europe; strategies; Communication technology; Takeover; Acquisition; Jean Francois Pedagogical Objectives Telecom industry; Chipsets; Innovations; Dehecq; Decision making; Research and • To discuss the growth of the Estée Lauder Value addition; Acquisitions; International development; Synergy; Merger. empire under three generations of expansion; Brand awareness; Patent Lauders infringement. • To discuss and compare the marketing Femsa: The Mexican Beverage strategies adopted by the three Giant’s ‘Continental’ Growth generations Prudential Plc. in Asia: Growth Strategies Strategies • To discuss the growing challenges the By late 2005, Fomento Economico company is facing and the strategies Since its foray into Asia in 1994, Prudential Mexicano, SA de CV (FEMSA) was the being adopted by the third generation of plc. has forged several strategic largest beverage company of Latin America Lauders in their attempt to disprove the partnerships with leading regional players and second largest brewer in its home traditional wisdom that family-run in the financial services industry. These country Mexico, with a market share of businesses don’t pass three generations. partnerships and alliances have made 45%. Beer brewing and soft drinks bottling, Prudential the leading European life insurer its core businesses, are supported by its Industry Personal Care Products in Asia. With assets of £26 billion under its retailing, distribution and logistics Reference No. GRS0127 management as of June 30th 2005, the subsidiaries. With decreasing margins and Year of Pub. 2005 company plans to launch innovative increasing price fluctuations in the Teaching Note Not Available products in the growing Asian markets. consolidating global beer industry, FEMSA Struc.Assign. Not Available is focusing on the growing soft drink market Keywords Pedagogical Objectives of Latin America. Estee Lauder; Growth strategies; Cosmetic • To highlight the expansion strategies of Prudential Pedagogical Objectives and skin care industry; Family run businesses; Leonard and William Lauder; • To discuss the initiatives taken by • To highlight FEMSA’s growth over the Product distribution and marketing; US Prudential to become the largest insurer years economic growth of 1920s; Free sample in Asia. distribution; Departmental stores in US; • To discuss the strategies adopted by the Youth Dew; The Estee Lauder family; Industry Life Insurance company to become one of the largest Origins; Clinique; Product expansion; Reference No. GRS0125 beverage companies in the South Acquisitions and licensing agreements. Year of Pub. 2005 American continent. Teaching Note Not Available Industry Beverages Struc.Assign. Not Available Reference No. GRS0128 QualComm: The US Chipmaker’s Keywords Year of Pub. 2005 Growth Strategies Teaching Note Not Available Prudential; Expansion strategies; Growth Struc.Assign. Not Available QualComm, the US chipmaker, pioneered strategies; Life insurance; Financial the Code Division Multiple Access products; ICICI Prudential; CITIC Keywords (CDMA) technology for mobile phones. Prudential; Largest European insurer in Global beverage industry; Latin American Over the years the company had come out Asia; Mutual funds; Prudential’s business beverage industry; Mexican beverage with various innovative technologies, model in Asia; Acquisitions; Insurance industry; Growth of Fomento Economico which had made it the leading supplier of distribution channels; Product innovations; Mexicano; SA de CV (FEMSA) through mobile chipsets in the world. QualComm Fund operations; Challenges for Prudential acquisitions; Competitive advantage of was also in the process of expanding its in Asia. FEMSA; Competitors of FEMSA; Coca- operations to the Asian market and was Cola FEMSA; Price competition of confident that it would be able to maintain FEMSA; Brand image of FEMSA; Product its growth in the future by coming out with Starbucks in Japan: The Growth innovative technologies. However, experts diversification of FEMSA; Product Strategies differentiation of FEMSA; Growth through were of the opinion that the growth global expansion; Modelo; Supply chain strategies being adopted by the company Starbucks capitalised on the coffee demand management; OXXO convenience stores. would not work in the future. in the US and established itself as a quality coffee chain. It aimed to take culture and Pedagogical Objectives coffee to international locations and opened its first outlet outside the US in Estee Lauder: The Family-owned • To highlight evolution of QualComm Japan. The Japanese, known to adapt Cosmetic Manufacturer’s Growth over the years and the growth strategy themselves to the Western culture, being adopted by the company Strategies embraced the Starbucks concept and its Since its inception in the 1930s, Estée • To discuss whether the company would coffee, making Starbucks a success in Japan. Lauder grew from a cream maker to a be able to sustain its growth in the future. But the success did not last long and cosmetic giant in the US under the Starbucks incurred losses in Japan in 2003. Industry Communications Chips leadership of three generations of Lauders. But strict cost control measures and a Reference No. GRS0126 Despite the rising competition and its better food menu resulted in profits in Year of Pub. 2005 continued dependency on departmental 2004. The company then entered the Teaching Note Not Available stores for sales, the company clocked ready-to-drink coffee market and analysts Struc.Assign. Not Available revenues of $6.34 billion in 2005. With were sceptical about its success in an already saturated market. The changing

51 www.ibscdc.org preferences and tastes of the Japanese were Coca-Cola in China acquisitions allowed the drugstore chain to also a cause for concern for the company. improve its geographical reach and withstand The history of sugar in the Caribbean can competition from other retail giants. be traced back to the 17th century when Pedagogical Objectives However, while expanding inorganically, the Dutch introduced sugarcane to these CVS had to incur expenses to renew and • To highlight the growth strategy of islands in the 1640s. Since then, the sugar relocate some of the existing stores to Starbucks in Japan industry had been the backbone of the improve its sales figures. Caribbean economies. In 1965, the • To discuss whether Starbucks would be Caribbean region, with its ten sugar Pedagogical Objectives able to sustain its growth in the country. exporting countries, had a peak annual Industry Speciality Eateries sugar production of 1.4 million tons. • To discuss the two different growth Reference No. GRS0124 However, in just thirty years, by 1995, the strategies, organic and inorganic, being Year of Pub. 2005 Caribbean sugar production had dropped followed by Walgreen and CVS Teaching Note Not Available to 0.8 million tons per annum and the region was left with only six sugar exporting • To analyse which one of the two growth Growth Strategies Growth Strategies Growth Strategies Growth Strategies Growth Strategies Struc.Assign. Not Available countries. strategies is more appropriate. Keywords Industry Drug store Retail Starbucks Corporation; Growth strategies; Pedagogical Objectives Reference No. GRS0121 Year of Pub. 2005 Global expansion strategies; Japanese • To highlight the strategies adopted by Teaching Note Not Available coffee culture; Kissatens; Global brand; the company to become the leading soft Struc.Assign. Not Available First-mover advantage; Starbucks culture; drinks manufacturer in China Brand recognition; Local competition. Keywords • To discuss whether Coca-Cola would be successful in holding on to its leadership Walgreen; CVS (Customer Value Store); position in the Chinese soft drinks SNOCAP: Can Shawn Fanning’s Drug store chains; Competition; Growth industry. strategies; Market share; Pharmacy stores; New Venture Replicate Napster’s Acquisitions; Marketing. Success? Industry Beverages Reference No. GRS0122 In 1999, Napster, an illegal music file- Year of Pub. 2005 sharing service was created by Shawn Teaching Note Not Available Wachovia Corporation: The US Fanning, which went on to become a huge Struc.Assign. Not Available Bank’s Expansion Strategies success registering 26.4 million users onto its network by February 2001. But Keywords US-based Wachovia Corporation had expanded its operations through a number concurrently the success of Napster was Coca-Cola; Soft drinks industry in China; of mergers and acquisitions. Wachovia’s resulting in huge losses for the music Carbonated and non-carbonated drinks; management was confident that the industry and later led to lawsuits and ‘Open door’ policy; Technological expansion strategies would facilitate future Napster’s closure. Undeterred by the development; Bottling and distribution growth of the bank. Some analysts closure of Napster, Fanning founded activities; Joint ventures; Retail distribution however, were sceptical about the success SNOCAP, which acts as a clearinghouse network; Growth strategy; Marketing and of Wachovia’s expansion strategies. Others and an intermediary between the music promotion activities; Domestic speculated about merger of Wachovia with users, file-sharing networks, on-line music competition. retailers and the copyright owners. But to another bank, which would elevate its replicate the success of Napster, SNOCAP position to the second-largest bank in the has to overcome several challenges. United States. Walgreen vs CVS: Growth Pedagogical Objectives Strategies of the US’ Top Pedagogical Objectives Drugstore Chains • To highlight Napster’s success story and • To understand the formation of SNOCAP’s new business model The US drugstore retail market is highly Wachovia and the expansion strategies competitive, consisting of a number of big followed by the bank • To discuss the viability of SNOCAP’s chain stores like Walgreen, CVS (Customer • To discuss the rationale behind business model and the challenges that Value Store), Rite Aid, Wal-Mart, Target, Wachovia’s expansion strategies. lie ahead for the company. etc. Together, Walgreen and CVS occupy Industry Internet Music Distribution about one-fifth of the total US pharmacy Industry Banking and Financial and Downloads retail market. Ever since its inception in Services Reference No. GRS0123 1901, Walgreen had believed in growing Reference No. GRS0120 Year of Pub. 2005 organically and had opened more than 4,850 Year of Pub. 2005 Teaching Note Not Available stores in the US. While Walgreen was Teaching Note Not Available Struc.Assign. Not Available building its new stores, CVS was increasing Struc.Assign. Not Available its store count by acquiring existing retail Keywords chains in the country. After opening its first Keywords store in 1963, CVS acquired other SNOCAP; Shawn Fanning; Napster; Success Wachovia Corporation; Expansion pharmaceutical chains like Peoples Drug, story; P2P (Peer to Peer) network; strategies; Mergers and acquisitions; First Big B, Revco, Arbor Drugs and Eckerd stores Technology; Music file sharing; File Union Corporation; Credit quality problems; and by July 2005 it had grown to more than swapping service; Music industry; Quality. Merger integration process; Account access 5,400 stores. Walgreen’s organic strategy problems; Organic growth; Economic of growth helped the company to make conditions; Retail banking; Assets-per- planned investments in new locations and broker; Expansion plans; Merger of equals; save future expenditure on renovations. Cultural integration issues. Whereas CVS’ strategy of growth through 52 www.ibscdc.org

Indian Institutes of Management Industry Retail Brokerage label brands; Carbonated Soft Drinks

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S (IIMs): Going Global Reference No. GRS0118 (CSD); Mergers and acquisitions; Growth Year of Pub. 2005 strategy; Wal-Mart; Retail industry; Asda. In mid-2005, India’s premier management Teaching Note Not Available institutes, the Indian Institutes of Struc.Assign. Not Available Management (IIMs), based at six cities across India initiated their global expansion Keywords AXA in Asia: The Growth Strategies plans. The global initiatives involved Indian capital market; Indian retail setting up campuses abroad, designing brokerage firms; Regulatory reforms in France-based AXA is the second-largest courses for imparting global management Indian capital market; Initial Public insurance company in the world with a education, international student exchange Offerings (IPOs); Venture capital; history that dates back almost 200 years. programmes and offering other Diversification strategies of Indiabulls; The company, after establishing its postgraduate programmes to foreign Retail finance and asset management; presence in Europe, ventured into North corporations like the post graduate Foreign Institutional Investors (FIIs); America, South America, Australia and New programme for executives. However, IIMs Indiabulls’ direct and indirect channels of Zealand. It entered Asia (Hong Kong) in are expected to face stiff competition from business; Financial product distribution; 1986 and gradually expanded its operations premier B-Schools like INSEAD and Indiabulls’ centralised back office into different Asian countries like Japan, Chicago School of Business that have operations; Mechanisation of operations Singapore, China, Thailand and Indonesia dominated management education in Asia. at Indiabulls; On-line share trading at through a series of mergers and Indiabulls; Risk management system; Stock acquisitions. In the late 1990s, as the Pedagogical Objectives market scams in India. economy and demand for insurance boomed across the region following the • To highlight the contribution of the Southeast Asian crisis, AXA aimed to IIMs to management education in India Cott Corporation, World’s Biggest consolidate its position in the Asian market. • To discuss the strategic initiatives of the But, with an under developed insurance Maker of Retailer-brand IIMs to become a global brand. market, regulatory constraints and intense Carbonated Soft Drinks: The competition, AXA faces major challenges Industry Management Education Growth Strategies for its future growth. Reference No. GRS0119 Year of Pub. 2005 Canada-based Cott Corporation was Pedagogical Objectives Teaching Note Not Available founded by Harry Pencer, as an importer Struc.Assign. Not Available of bottled soft drinks in 1955. The • To highlight the growth strategies company grew under the leadership of his adopted by AXA to expand and Keywords son, Gerry Pencer, to become the largest strengthen its operations in Asia Indian Institute of Management (IIM); supplier of private label Carbonated Soft • To discuss various opportunities and India; Education sector; Globalisation; Drinks (CSD) in the world. Cott established challenges that AXA might face in the Strategy; Indian Institute of Management; itself in Canada and gradually expanded its future. Ahmedabad (IIMA); Management operations into the US and the UK through a series of mergers and acquisitions. Its rapid education; INSEAD; Harvard Business Industry Banking and Financial growth made it a top competitor of soft School; International expansion; Services drinks giants, Coca-Cola and Pepsi. With Singapore; Dubai; MBA; B-schools. Reference No. GRS0116 Wal-Mart as its top customer, it obtained Year of Pub. 2005 a ready market for its products. The Teaching Note Not Available consolidation of the retail industry, and Struc.Assign. Not Available Indiabulls: The Indian Retail increasing acceptance of private label Brokerage Firm’s Growth brands by customers presented Keywords Strategies opportunities to Cott for further growth. However, recession in the CSD market and AXA; AXA Asia Pacific; Insurance; Growth Since its inception in 2000, despite rising the prevalent perception that private labels strategies; Mergers and acquisitions; competition and the ongoing consolidation are inferior to branded products posed Regulatory environment; Bancassurance; in the Indian brokerage industry, Indiabulls major challenges to Cott’s future growth. Smart Lady; Privatisation; Liberalisation; has recorded a year-on-year growth of Deregulation; Tariffs; Asian financial crisis. 100%. By 2005, Indiabulls had 135 offices Pedagogical Objectives in 95 cities in India offering diversified financial services, ranging from stocks to • To highlight the growth strategies PCCW: Hong Kong’s Integrated real estates. Indiabulls is one of the largest adopted by Cott to expand and Communication Company’s brokerage firms in India with a market strengthen its operations in Canada, the capitalisation of INR 2,000 crore as of US and the UK Growth Strategies mid-2005. The company aims to achieve • To discuss the various opportunities and Since its inception in 2000, Hong Kong- a market capitalisation of INR 22,000 based Pacific Century CyberWorks Limited crore by 2010. challenges that Cott might face in the future. (PCCW) has grown to be one of Asia’s leading integrated information technology Pedagogical Objectives Industry Beverages and communications companies through Reference No. GRS0117 different strategic acquisitions and • To highlight growing importance of Year of Pub. 2005 alliances. In June 2005, PCCW re-entered online share trading in India Teaching Note Not Available the mobile telephony market by acquiring • To discuss the strategy adopted by Struc.Assign. Not Available the Hong Kong-based Sunday Indiabulls to become one of the Communications Ltd. Keywords prominent players in the Indian brokerage industry within a short span Cott Corporation; Gerry Pencer; Pepsi; of five years. Coca-Cola; Cadbury Schweppes; Private 53 www.ibscdc.org Pedagogical Objectives Teaching Note Not Available Industry Internet Auctions Struc.Assign. Not Available Reference No. GRS0112 • To analyse the reasons behind the Year of Pub. 2005 Keywords various strategic alliances of PCCW Teaching Note Not Available • To discuss new opportunities and Japan; Japan Tobacco; Philip Morris Inc.; Struc.Assign. Not Available challenges facing PCCW in the event of Marlboro; Growth strategy; Framework Keywords its re-entry into the mobile telecom Convention on Tobacco Control (FCTC); market. Smoking population; Health concerns; Internet auctions market; Chinese business Tobacco market; Cigarette maker; environment; China’s e-readiness; Business Industry Fixed-line Voice Services International expansion; Global brands. to consumer market; Escrow payment Providers system; EachNet; China’s e-commerce Reference No. GRS0115 market; Settlement risk in on-line auctions; Year of Pub. 2005 Growth of Wikipedia: The Free Marketing strategies of eBay; On-line Teaching Note Not Available trading services of eBay; Alibaba; PayPal; Struc.Assign. Not Available Online Encyclopaedia Growth Strategies Growth Strategies Growth Strategies Growth Strategies Growth Strategies Global Sources Direct; Competitive Keywords Launched on January 10th 2001, as an open strategies of eBay. content, free, on-line encyclopaedia, Pacific Century CyberWorks (PCCW); Wikipedia has grown into a leading website Richard Li Tzar Kai; PCCW’s expansion in terms of information and popularity. CNOOC: Growth Strategies of the in China; PCCW Cable and Wireless HKT By mid-2005, Wikipedia had one million merger; Hong Kong’s telecom market; Chinese Oil Giant articles and 16,000 volunteers to contribute PCCW’s mobile telephony market in Hong articles to its website. Although Wikipedia In early 2005, CNOOC (Chinese National Kong; PCCW’s broadband services; ensures that articles submitted on its website Offshore Oil Corporation) had turned the PCCW’s Sunday communications are free from bias, the reliability of the heads of the global oil league by bidding for synergies; PCCW’s competitors; PCCW’s information is still being challenged. Unocal, the seventh-largest US oil and gas strategic alliances; Mobile operators in exploration company. CNOOC was Hong Kong; 3G mobile phone service. Pedagogical Objectives incorporated in 1982 with 50 billion Renminbi to take up offshore explorations • To highlight growth strategies of both independently and in collaboration Japan Tobacco: Growth Wikipedia with foreign companies. CNOOC later Strategies • To discuss the opportunities in challenges diversified into natural gas explorations, facing an open content encyclopaedia. technical services, chemical and fertiliser The competition from foreign players like production, power generation and financial Philip Morris Inc. (PMI) and British Industry Internet Content Providers services. In the process, CNOOC has American Tobacco (BAT), the declining Reference No. GRS0113 attained market capitalisation of more than population of smokers due to rising health Year of Pub. 2005 US$17 billion, with proven oil reserves of concerns, and Japan’s signing of the World Teaching Note Not Available two trillion barrels of oil equivalent across Health Organisation Framework Struc.Assign. Not Available the globe, which will ensure a production Convention on Tobacco Control (FCTC) of 250 million barrels of oil equivalent till on March 9th 2004 had decreased the Keywords 2010. domestic sales of Japan Tobacco (JT) in Free on-line encyclopaedia; Internet Japan. Adding to the company’s woes was content providers; Jimmy Wales; Internet Pedagogical Objectives the expiry of contract with PMI to entrepreneur; Wikimedia foundation; manufacture and sell PMI’s cigarette brand, Nupedia; 7-step review process of Nupedia; • To highlight the strategies adopted by Marlboro in Japan resulting in a decreased Encarta; Britannica; Neutral point of view CNOOC, to become one of the major domestic market share from 72.7% to policy; GNU free documentation licence; players in the Chinese oil industry 63.2%. To regain its market leadership, Wiki technology; Multilingual • To discuss the strategies that the JT unveiled its plan to launch 13 tobacco encyclopaedia; Vandalism in wikipedia. brands in the domestic market in July 2005, company must adopt to cement its place which is still believed to be a lucrative in the global oil league. market and receptive to new products. Industry Oil, Gas and Energy However, it was also opined that JT lacked eBay in China Reference No. GRS0111 a balanced approach towards international After eBay entered China in 2002, it had Year of Pub. 2005 expansion as its global tobacco sales still to customise its operations and services to Teaching Note Not Available constituted only 21.3% of its total sales, suit the Chinese market conditions. It Struc.Assign. Not Available with 59.9% of JT’s tobacco sales value invested heavily in advertising, brand coming from Japan in 2005. Keywords building and expanding the on-line auction market. Despite such initiatives, eBay is Global oil and gas exploration industry; Pedagogical Objectives facing tough competition from a Chinese Chinese oil industry; Oil companies in • To highlight the challenges faced by JT local e-commerce site, taobao.com, which China; Growth of oil consumption in started its operations in 2003, and within China; Oilfields in China; Chinese National • To discuss the growth strategies adopted a span of two years has overtaken eBay in Offshore Oil Corporation’s (CNOOC) bid by JT in order to remain competitive in terms of transaction volume. for Unocal; Acquisitions of CNOOC; the challenging tobacco market of Largest oil consuming countries in the Japan. Pedagogical Objectives world; National champions in China; Sinopec; Petrochina. Industry Cigarettes, Cigars and • To highlight the on-line auction market Smokeless Tobacco Products in China Reference No. GRS0114 Year of Pub. 2005 • To discuss the growth strategies and competitive scenario of eBay in China. 54 www.ibscdc.org

ASDA: Betting on Low Prices? Industry Banking and Financial competitive bidding; Pernod-Allied merger;

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S Services Challenges and opportunities. II – Y G E T A R T S ASDA, since its takeover by Wal-Mart in Reference No. GRS0109 1999, has been implementing several Year of Pub. 2005 successful strategies, including the ‘price Teaching Note Not Available GE in India: The Growth rollback’ and ‘Every Day Low Prices’ to Struc.Assign. Not Available attract customers. It has been, for eight Strategies successive years, ranked as the ‘cheapest Keywords In November 2004, General Electric Co. supermarket’ by the Grocer, an independent Standard Chartered (StanChart); Inorganic (GE) sold 60% of its stake in its Business magazine in the UK. However, continuous growth strategies; Korean First Bank; Process Outsourcing division in India, lowering of prices has reduced the profit Global corporate strategy; Asian financial GECIS (General Electric Capital margins of ASDA and led to a severe price crisis; Mervyn Davies; South Korean International Services), in order to focus war in the UK retail industry. ASDA has financial services industry; International on its core business operations that included announced plans to diversify into non-food expansion strategies; KorAm Bank; healthcare, transportation equipment, stores and financial services to improve Citigroup HSBC; Acquisitions and mergers; financial services and infrastructure. This profitability. Business strategy corporate strategy; marked the third phase of investment by Funding strategy; Private banking; GE. According to Jeffery Immelt, chief Pedagogical Objectives Consumer banking. executive officer, the growing business • To highlight competitive landscape of opportunities in India would allow GE to the British retail industry leverage on the advantages of the Indian Pernod Ricard: The French market, such as strong consumer and • To discuss the competitive strategies commercial finance sectors, which would adopted by ASDA and the challenges Beverage (Wine & Spirits) enable GE to realise revenues worth $5 faced by it in the retail sector. Company’s Growth Strategies billion by 2010.

Industry Grocery Retail Pernod Ricard is the world’s third-largest Reference No. GRS0110 spirits and wine company behind Diageo Pedagogical Objectives and Allied Domecq. Its founder chairman Year of Pub. 2005 • To highlight the growth strategies Ricard has transformed the French pastis Teaching Note Not Available followed by GE to capitalise on the business into a multinational wine and spirit Struc.Assign. Not Available growing opportunities in the Indian maker by diversifying into other businesses market Keywords like fruit juice manufacturing through a ASDA; Wal-Mart; Retailing; ‘Every Day series of acquisitions. However, due to the • To discuss the investment opportunities Low Prices’; Price war; Supermarkets; declining profits and increasing debts, the for GE in India. Tesco; ‘Price rollback’; UK; Consolidation company decided to focus on its core business, and began to divest its non- Industry Not Applicable in UK retail sector; Acquisitions; Grocery Reference No. GRS0107 retail; Strategy; Discount retail chain. alcoholic operations since 2001. In 2004, Pernod Ricard was named the ‘Best Year of Pub. 2005 Company in Europe’ by Global Finance Teaching Note Not Available magazine. In April 2005, the company Struc.Assign. Not Available StanChart in South Korea: announced a deal to buy Allied Domecq, Keywords Expanding through Inorganic which would transform Pernod Ricard into Growth Strategies the second largest player in the industry. General Electric (GE); India; Business process outsourcing (BPO); General As part of its global corporate strategy, Pedagogical Objectives Electric Capital International Services UK-based banking group Standard (GECIS); Healthcare; Financial services; Chartered (StanChart), decided to • To highlight the growth strategies of US; Strategy; Economy; China; concentrate on Asia for its future growth. Pernod Ricard over the decades Information Technology Enabled Services Within Asia, the bank was concentrating (ITES); Knowledge capital; Offshoring; • To discuss the success of Pernod Ricard’s on India, China and South Korea. For its Service sector; Foreign direct investment. expansion in South Korea, Asia’s third acquisition of Allied Domecq and the largest economy, the bank was following prospects and challenges for the an inorganic growth strategy. Many company. analysts were confident that this strategy Caremark Rx Inc.: Growth Industry Alcoholic Beverages through Pharmacy Benefit would enable the bank to get a strong Reference No. GRS0108 Managers foothold in the South Korean market and Year of Pub. 2005 enable it to fulfill its global strategy Teaching Note Not Available Caremark is the second-largest pharmacy objective of acquiring leadership position Struc.Assign. Not Available benefit management company in the US in the continent. But some others were health care industry. The company was skeptical about the strategy. Keywords originally established to provide home Pernod Ricard; Paul Ricard; Patrick Ricard; treatment to seriously ill patients, but Pedagogical Objectives Growth strategies and diversification; eventually, it expanded into the • To highlight StanChart’s global Acquisition and merger; core business; prescription drug management, Physician corporate strategy, its growth strategies Third largest wine and spirits company; Practice Management (PPM) and mail in South Korea and the bank’s business Restructuring plan and divesting; Diageo order pharmacy businesses. Although strategy for the South Korean market and Allied Domecq fortune brands; Chivas initially, Caremark’s PPM business Regal whisky; Wine and spirit industry; achieved a high growth rate, the company • To discuss whether StanChart’s growth Loss-making businesses; Wine and spirits was unable to consolidate its success. A strategy in South Korea would enable it distribution; Ready to drink market; pastis turnaround specialist, Edwin Crawford, was to achieve its global strategy objective. maker; Constellation brands; Seagrams appointed to bring the company back to

55 www.ibscdc.org profitability. Crawford divested the PPM mobile phones; Macromedia; Flash Lite increased its activities in Iceland and was business and concentrated on developing technology; Enterprise software market; granted the licence for investment banking Caremark’s prescription drug management Web application development powerhouse; in 1997 and commercial banking in 2002. business. Microsoft; Macromedia; Integrated Since 2002, Kaupthing started expanding desktop publishing suite. its reach to other Nordic countries. In Pedagogical Objectives 2005, it expanded its presence in the UK market, by acquiring Singer & Friedlander • To highlight the growth of Caremark Metro AG: The German Retailer’s Group plc., an independent merchant bank from near bankruptcy to one of the US’ in London. leading Pharmacy Benefit Managers Internationalisation Strategies through ‘Cash & Carry’ Model • To discuss the future of the company in Pedagogical Objective Started as a wholesale store in 1964, the light of a tighter regulatory • To highlight growth strategies of Dusseldorf (Germany)-based Metro AG environment and growing competitive Kaupthing Bank and understand how transformed itself into the largest retailer challenges. Kaupthing achieved its aim of becoming Growth Strategies Growth Strategies Growth Strategies Growth Strategies Growth Strategies in Germany and the third-largest in the a leading Nordic investment bank. Industry Health Care world. Though the company generated the Reference No. GRS0106 majority of its sales from its home market, Industry Banking and Financial Year of Pub. 2005 retail sales in Germany began to show a Services Teaching Note Not Available decline during the early 21st century due to Reference No. GRS0103 Struc.Assign. Not Available a high unemployment rate, the country’s Year of Pub. 2005 Keywords faltering economy, a rise in inflation and Teaching Note Not Available an increase in taxes. As a result, Metro Struc.Assign. Not Available Caremark; Pharmacy Benefit Manager ended up operating in a high-cost structure (PBM); Physician Practice Management environment and living with low profit Keywords (PPM); Growth strategy; Turnaround; margin, which in turn had an adverse effect Iceland’s largest bank; International MedPartners; Edwin Crawford; Larry on the company’s profits in Germany. To expansion; Expansion into Nordic regions; House; Medco; Express scripts; Advance offset the declining sales in its domestic Presence in the UK; Acquisition strategy; PCS; Pharmaceutical Care Management market, Metro pursued a strategy of Investment banking. Association (PCMA); Customer loyalty; expansion and internationalisation Transparency regulations; Unfair through its ‘Cash & Carry’ business model, Prescription Drug Practices Act. and started focusing on emerging markets in Asia and Eastern Europe. Analysts Bank of America’s Acquisition of opined that Metro’s focus on international MBNA: Growth Challenges in Adobe Systems: Bruce Chizen’s markets had been instrumental in driving American Credit Card Market Growth Strategies its growth in the light of the slowed growth in its home country. Bank of America announced its decision to acquire MBNA, the largest credit card Adobe Systems Incorporated (Adobe), a issuer in the world, in June 2005. This pioneer in the field of desktop publishing, Pedagogical Objectives marked the re-entry of Bank of America faced declining sales by mid-1998. Bruce into the credit card business, which had Chizen (Chizen), its new Chief Executive • To highlight the international expansion taken a back seat after the bank spun off Officer (CEO) implemented several growth strategies adopted by Metro through its its BankAmericard operations in 1968. strategies that are considered to be ‘Cash & Carry’ business model to offset With the acquisition, Bank of America is instrumental in making Adobe a major the declining sales in its domestic market expected to become the number one player player in the document sharing and • To highlight the initiatives taken by the in the US credit card market with a 20.2% publishing business. However, some experts company to strengthen its position in share. Nevertheless, analysts expressed expressed doubts whether Chizen could run the emerging markets of Asia and concerns on the deal opining that it would the company successfully in the long run. Eastern Europe. be difficult for Bank of America to make a mark in the already saturated business. Industry Retail Pedagogical Objectives Giant companies such as American Reference No. GRS0104 Express, Citicorp and Capital One are • To highlight Adobe’s historical Year of Pub. 2005 background and the growth strategies Teaching Note Not Available expected to give Bank of America tough competition. adopted by Chizen Struc.Assign. Not Available

• To discuss whether Chizen’s strategies Keywords Pedagogical Objectives would enable Adobe to continue its robust performance in the future. Metro’s globalisation strategy; Declining • To highlight the dynamics of credit card sales in Germany; Expansion in Europe industry in the US Industry Information Technology and Asia; Localised offerings; Expansion Global through ‘Cash & Carry’ model. • To discuss the pros and cons of the Bank Reference No. GRS0105 of America/MBNA deal. Year of Pub. 2005 Industry Banking and Financial Teaching Note Not Available Services Struc.Assign. Not Available Kaupthing: The Icelandic Bank’s Inorganic Growth Strategies Reference No. GRS0102 Keywords Year of Pub. 2005 Kaupthing Bank, the largest bank of Teaching Note Not Available Adobe Systems Incorporated; Bruce Iceland, is also one of the leading Struc.Assign. Not Available Chizen; Growth strategies; Desktop investment banks in the Nordic region. publishing; Adobe Acrobat; Portable Initially when Kaupthing was started in Keywords Document Format (PDF); Multi-purpose 1982, it was engaged in providing advisory Bank of America; MBNA; Second largest content environment; Digital contents for services and trading securities. Gradually it financial firm worldwide; America’s credit 56 www.ibscdc.org

card industry; Mastercard and Visa; Pedagogical Objectives Teaching Note Not Available

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S Consolidation in the banking industry; Struc.Assign. Not Available II – Y G E T A R T S Bank of America’s acquisition strategy; • To highlight Breweries industry in the American Express; Competing in the Philippines Keywords saturated market; Shift towards consumer • To discuss the inorganic growth strategies Axel Springer; Market leadership in lending. of San Miguel in its domestic as well as Germany; Related diversification; Joint the Asian market. ventures; Customised content; Targeted acquisitions; Umbrella branding; Industry Brewers Tesco: The British Supermarket International growth strategies; Strong Reference No. GRS0100 product-focus; Trend driven perspective. Chain’s Global Expansion Year of Pub. 2005 Strategies and Challenges Teaching Note Not Available Struc.Assign. Not Available Tesco Plc. is the UK’s largest and the world’s Orascom: The Egyptian third-largest retail supermarket chain. Keywords Conglomerate’s Expansion Established in 1929 by Jack Cohen, Tesco steadily increased its presence in the UK Beverages and food products market; Strategies Product diversification; Expansion into by concentrating on customer needs and The Orascom Group is Egypt’s largest and South East Asian Market; Joint venture their convenience. By the mid-1990s, most diversified conglomerate. Founded by with Coca-Cola; Joint venture with Nestlé; saturation of the UK market led Tesco to Onsi Sawiris in 1950, it is now managed by Acquisition of domestic companies; expand its activities to other countries. It his three sons Naguib, Samih and Nassef, Outsourcing of non-core activities; initiated expansion plans in the developing each handling a different business. Acquisition of global manufacturing plants; markets of the Central European and Asian Traditionally Orascom had been known for Emerging markets of Asia; Consumption countries, which provided scope for growth its construction projects such as water trends in Asia. of retail business. In 2005, Tesco planned treatment plants, railways, hotels and to continue its international expansion skyscrapers. Later it diversified into activity by opening a number of different businesses like, production of hypermarkets in Hungary, Poland, Czech Axel Springer Group: The building materials, telecommunications and Republic, China, Thailand and South German Publishing Firm’s tourism development. These businesses Korea. ‘Targeted’ Growth Strategies went on to form Orascom Construction Industries, Orascom Telecom Holdings and Pedagogical Objectives Axel Springer Verlag, the German Orascom Hotels Holdings. publishing house is the owner of Germany’s • To understand and discuss the market most widely read daily, Bild. Since its Pedagogical Objectives entry strategies of Tesco establishment in 1946, the company had • To analyse the challenges it faced in focused on its core business of publishing • To highlight the successful catering to the varied needs of the newspapers and magazines in its home diversification strategies implemented customers in markets across countries country. It gave importance to building by Orascom strong brands and launched its new and the competitive strategies adopted • To discuss Orascom’s growth in Egypt by it in those countries. publications under existing successful brands. To establish itself as an international and its entry and growth in other countries with economic indicators Industry Retail media company, Springer started similar to its home market. Reference No. GRS0101 expanding to Central and Eastern European Year of Pub. 2005 countries in the late 1980s. By Industry Not Applicable Teaching Note Available implementing a targeted growth approach, Reference No. GRS0098 Struc.Assign. Available it entered the European countries, either Year of Pub. 2005 through a joint venture with a local Keywords Teaching Note Not Available publisher, or through the introduction of Struc.Assign. Not Available Tesco; Competition among British local editions of some existing top brand supermarkets; Gap; International publications. In 2004, it entered the Keywords expansion strategies; Expansion into German electronic media market through Orascom Group; Onsi Sawiris; Central Europe and Asia; Hypermarkets; agreements with Internet companies. While Diversification; Conglomerate; Middle Growth challenges; Varied customer needs; digitising helped Springer to make its East; Egypt; Orascom Telecom; Orascom Localisation strategies. presence known worldwide, the company Constructions; Orascom Technologies; planned to expand its printing activity to Investments in Iraq. other countries. San Miguel: The Philippines Pedagogical Objectives Brewery Giant’s Growth Mobile Telephony in Africa: Strategies • To highlight the growth plans of Axel Celtel International’s Growth Springer By 2005, San Miguel Corporation, a Strategies Philippines-based beverages and food • To discuss challenges faced by company By the end of the fiscal year 2004, Celtel products manufacturer, is one of the top to expand its operations in Europe International BV, one of the largest mobile 20 brewers in the world. It has its operations • To analyse the company’s acquisition operators in Africa, reported a profit of in 40 countries with manufacturing and localisation strategies in realising its US$147 million against US$74 million in facilities across Asia. By leveraging its expansion plans. the previous year. In early 2005, Celtel strong domestic market presence, the became a subsidiary of Mobile company plans to be among the top 10 Industry Publishing Telecommunications Company (MTC), a beverage and food products companies in Reference No. GRS0099 Kuwait-based communications company Asia. Year of Pub. 2005 with operations in 18 countries. Celtel, with its operations in 13 countries in Central 57 www.ibscdc.org and West Africa, intends to expand its McLennan; Securities and Exchange Pedagogical Objectives operations across the continent by Commission (SEC) investigations leveraging on its brand image. • To highlight the evolution of ChevronTexaco into one of the world’s leading energy companies Pedagogical Objective European Apparel Chains in the US: Growing Fast and Profitable • To highlight the troubles as well as the • To highlight the strategies adopted by growth plans of the company Celtel International to transform itself The US apparel industry had witnessed a into a leading telecommunications • To discuss the future of the company sea of change following the entry of provider in Africa. European apparel retailers. European based on its successful acquisition of apparel chains like Hennes & Mauritz Unocal and realisation of all its growth Industry Wireless Communication targets. Services (H&M) and Inditex, were eroding the Reference No. GRS0097 profits of the US counterparts such as Gap Industry Oil, Gas and Energy Year of Pub. 2005 and Abercrombie & Fitch (A&F), by eating Reference No. GRS0094 Growth Strategies Growth Strategies Growth Strategies Growth Strategies Growth Strategies Teaching Note Not Available into their market share through their Year of Pub. 2005 Struc.Assign. Not Available efficient business models, innovative and Teaching Note Not Available fast-changing product offers and lower Struc.Assign. Not Available Keywords costs. With a better fashion focus, Keywords Celtel International BV; African mobile European retailers were changing the communications market; Mobile definition of fashion in the US. Instead of ChevronTexaco ExxonMobil Unocal BP; Telecommunications Company; 3G creating a certain lifestyle image, they Largest integrated energy company; technology; LinkAfrica; Mobile telephone emphasised a strong product focus, a trend Standard Oil Company of California; market penetration; Making life better; driven perspective, but at a lower price. Restructuring and reorganisation plan; Average revenue per user; Vodacom; Mobile International oil exploration and telephone network. Pedagogical Objectives discovery; Oil industry consolidation; Chevron Texaco Caltex Shell Total Fina; • To highlight the comparative study on Acquisition and merger divestment sell-off; the business models of the US and Kroll Inc.: From Private Eye to European apparel retailers Proven oil and gas reserves; Warri Crisis Niger Delta; Focus on core operations; Risk Management Specialist • To discuss the viability and profitability Dismal financial performance; Oil and gas Kroll Inc. is an investigative firm founded of these models in the long run. exploration rights; The Transformation in 1972 by Jules B. Kroll. The firm started Plan; Top 10 in Fortune 500 list. Industry Apparel Retail as a provider of investigative services and Reference No. GRS0095 gradually diversified into risk consulting Year of Pub. 2005 practices. With strategic acquisitions, Teaching Note Not Available Capital One: The American focused customer relationships and a Struc.Assign. Not Available Credit Card Company’s Growth corpus of highly skilled professionals, Kroll Strategies Inc. gained clients and financial stability. Keywords In the year 1999, Marsh and McLennan Capital One has been making several Hennes & Mauritz (H&M); Inditex and Companies (MMC), the world’s largest acquisitions in 2004 and 2005 to Zara; Gap; Abercrombie & Fitch (A&F); insurance brokerage firm, acquired the strengthen its position in motor-vehicle European apparel retailers; US apparel company. MMC was a troubled company financing, mortgage and home equity loan retailers; Efficient business models; Strong facing investigations by the Securities and services. Its latest acquisition of Hibernia product-focus; Trend driven perspective; Exchange Commission (SEC). In 2004, National Bank in early March 2005 has Consumer and buyer behaviour; Global Simon V. Freakley who became the Chief provided it with an opportunity to expand supply chain; Efficient inventory Executive Officer of Kroll Inc. faced into the developing markets of Texas and management; Fast food of fashion; Faster challenges on many fronts, one of them Louisiana (US) apart from enabling it to turnaround of designs; Competitive pricing. being differentiating Kroll Inc and MMC’s access a cheaper source of funding for its businesses. flagship business of selling credit cards.

Pedagogical Objectives Chevron Texaco’s Growth Pedagogical Objectives Strategies • To discuss the strategies adopted by Kroll • To highlight Capital One’s Inc. while diversifying itself from an ChevronTexaco is one of the world’s major diversification strategy and the reasons investigative business to a global energy companies and the second largest behind its various acquisitions provider of risk consulting services integrated oil company in the US. During 2001 and 2002, the company’s revenues • To discuss the challenges it faces in the • To highlight challenges facing the and income experienced severe decline. In second decade of its establishment company after take over by MMC. addition, the company’s production was • To discuss credit card industry in the US, Industry Surveillance, Investigation also declining year after year in spite of its which is going through a phase of and Security Consulting promises and efforts to increase it. In consolidation. Reference No. GRS0096 2003, chief executive officer David Year of Pub. 2005 O’Reilly implemented a growth plan under Industry Banking and Financial Teaching Note Not Available which the company began to focus on its Services Struc.Assign. Not Available core operations. But its net proven reserves Reference No. GRS0093 were declining. In April 2005, the company Year of Pub. 2005 Keywords announced the acquisition of another US Teaching Note Not Available Struc.Assign. Not Available Kroll Inc.; Jules B Kroll; Risk consulting; oil firm Unocal, but the deal ran into Acquisitions; Diversification; Marsh and trouble due to counter bids from other oil majors and pending regulatory approval. 58 www.ibscdc.org

Keywords strikes, consolidations, bankruptcies and overcome the image that its PC software

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S increasing pressure to cut costs. is ‘unreliable and error prone’. II – Y G E T A R T S Capital One Financial Corporation; Consumer lending services; Motor vehicle Industry Development Tools, Operating Pedagogical Objectives financing; Mortgage and home equity loans Systems and Utility Software European; Market leader and market • To discuss the initiatives taken by Reference No. GRS0090 share; Brand positioning; Credit card Wegmans to become one of the most Year of Pub. 2005 industry; Diversification strategy; Super- admired retailers in the food business in Teaching Note Not Available prime; prime and sub-prime customers; the US Struc.Assign. Not Available Information-based Strategy (IBS); Bad debt and charge-off; Financial portfolio and • To understand the unique business model Keywords sourcing of funds; Origination of loans; of the company that centred on worker Microsoft; PC (Personal Computer) Competitive advantage; Investment and customer relations. software; Monopoly; Media centre PC; banking and insurance. Industry Grocery Retail Digital vision; Consumer electronics; Entry Reference No. GRS0091 barriers; Diversification; PC-based home Year of Pub. 2005 entertainment; Convergence; Integrated Novartis’ Generic Drug Business: Teaching Note Not Available PC’s; New product development. The New Growth Driver Struc.Assign. Not Available Keywords In 2003, to lay more emphasis on its Kaplan Inc.: The Washington generics business, Novartis rebranded its Wegmans Food Markets; Robert B Post’s Education Division’s entire generics product lines under the Wegman; Daniel R Wegman; Rochester Growth Strategies Sandoz brand, the brand that had merged Fruit & Vegetable Company; Employment with Ciba-Geigy to form Novartis in 1996. policies; Health care benefits for Kaplan Inc., a subsidiary of Washington In February 2005, Novartis acquired employees; Employee scholarship Post Company has become a leading for- Germany-based generic drugs company, programme; Customer service; Supply profit higher education institution in the Hexal, and its affiliate, Eon Labs, for chain management; Continuous US. It has grown from a test preparation enhancing its capability to grab a 10% replenishment programme; Everyday low- company to a large and diverse educational market share in the US$100 billion global pricing programme; ‘Consistent low prices’ conglomerate under the leadership of generics market by 2010. strategy; Private label products; ‘Food you Jonathan Grayer who became the CEO feel good about’; Colleen Wegman. (Chief Executive Officer) of Kaplan in Pedagogical Objectives 1994. Grayer and his team faced many challenges to revive Kaplan. By combating • To highlight the growth strategies of competition, complying with stringent Novartis in the generics business Microsoft’s ‘Digital Vision’: federal guidelines, acquiring educational Looking Beyond PC? • To discuss the strategies adopted by companies and streamlining business Novartis to face the twin challenges of Microsoft, known for dominating the PC operations using the Web, Kaplan made a low prices and high competition in the (personal computer) software business with mark in the for-profit higher education global generic drug industry. its flagship brands Windows and Office, market. made a foray into the consumer electronics Industry Pharmaceuticals Manufacturers business with its new Media Centre PC. Pedagogical Objectives Reference No. GRS0092 The software giant invested nearly US$20 Year of Pub. 2005 • To discuss the strategies adopted by billion on digital entertainment business Teaching Note Not Available Kaplan while diversifying into various and was aiming for a chunk of the US$108 Struc.Assign. Not Available educational businesses billion consumer electronics market with Keywords its PC-based home entertainment concept. • To discuss Kaplan’s parent company’s Microsoft has been able to dominate the decision to invest in the education Novartis; Sandoz; Generics; Strategy; PC business making its software the ‘de business rather than expand its media Branded drugs; Patent; Generics market; facto’ standard for PCs and it seems to be holdings. Pharmaceutical industry; USA; Germany; trying to repeat the same through its Media Growth; Eon; Hexal; Sabex. Centre PC. Like its previous product Industry Education development efforts, its latest venture also Reference No. GRS0089 revolved around the PC and showcased it Year of Pub. 2005 Wegmans: The US Retailer’s as the hub of digital home entertainment. Teaching Note Not Available Success Formula However, the going might just be tough Struc.Assign. Not Available for Microsoft to break into the bastion of Keywords Started as the Rochester Fruit & Vegetable consumer electronic giants like Sony and Company in 1916 by two brothers, Walter Samsung. Microsoft has to deal with many SAT (Scholastic Aptitude Test); Test Wegman and John Wegman, Wegmans challenges to establish PCs as a hub of preparation; Brooklyn; Washington Post; Food Markets transformed itself into one digital entertainment. Donald Graham; Kaplan Higher Education; of the most admired in the US’ food Jonathan Grayer; Princeton Review; business. The family-owned high-end Pedagogical Objectives Acquisitions; On-line education; Federal grocery store chain with its unusual mantra financial aid. ‘employees first, customers second’, • To highlight the reasons for Microsoft’s topped Fortune magazine’s annual list of interest in the consumer electronics ‘100 Best Companies to Work For 2005’. market and its preparedness to deal with Inditex: The Spanish Retailer’s Many believed that, it was particularly the complexities of the market remarkable for Wegmans to remain Growth Strategies • To discuss the company’s efforts to competitive in the supermarket industry, establish PCs as a media hub and to Industria de Diseño Textil, SA (Inditex), which was going through crises like labour Spain’s largest listed retailer of textiles and 59 www.ibscdc.org footwear has chalked out a five-year plan • To discuss IBM’s Mach 1 Project. Industry Internet Content Providers for doubling its size by 2010. The success Reference No. GRS0085 Industry Computer Hardware of Inditex lies in its unique business model, Year of Pub. 2005 Reference No. GRS0087 which consists of a complete centralisation Teaching Note Not Available Year of Pub. 2005 and vertical integration of its Struc.Assign. Not Available manufacturing and distribution processes, Teaching Note Not Available coupled with state-of-the-art information Struc.Assign. Not Available Keywords technology. Keywords Craigslist; Nerd values; Community; Classifieds; Craig Newmark; Jim Pedagogical Objectives IBM (International Business Machines); Buckmaster; eBay. Mach 1; Hardware business; e-Server; • To highlight the contribution of the Server market; IBM server business; Dell; IIMs to management education in India Hewlett-Packard. Cisco’s Routing Problems: Fast • To highlight the merits of outsourcing Growth or High Margins? Growth Strategies Growth Strategies Growth Strategies Growth Strategies Growth Strategies of garment manufacturing vis-à-vis in- house manufacturing GlaxoSmithKline Plc.: Scouting In 2004, Cisco, the world leader in Internet for Growth Avenues networking technology, reported annual • To discuss the importance of in house revenue of $22 billion, a 17% rise over the manufacturing in the fashion industry In the year 2000, GlaxoWellcome plc. and previous year. The growth was considered SmithklineBeecham plc. merged to form • To highlight the risks for any retailer much less compared to its 80% growth in GlaxoSmithkline plc. (GSK). In recent while expanding into too many foreign the previous decade. Analysts believe that years, GSK has been facing challenges on markets. in a market crowded with specialists, Cisco many fronts: patent expiration, lack of would have to leverage on its brand and Industry Apparel and Accessories promising drugs and ongoing lawsuits. With acquisitions to maintain its leadership in Retail increasing pressure on the profit margins, the industry with a growth rate of 15% for Reference No. GRS0088 GSK is revamping its strategy to sustain its the next decade. Year of Pub. 2005 leadership in the global pharmaceutical industry. Teaching Note Not Available Pedagogical Objective Struc.Assign. Not Available Pedagogical Objectives • To analyse the competitive strategies Keywords implemented by Cisco to maintain its • To highlight growth strategies of GSK Apparel and accessories retail industry; leadership in the years to come. with respect to new drug development Growth and diversification strategies; Industry Routing and Switching Vertical integration; Just-in-time inventory • To discuss the strategies adopted by GSK Equipment control; Information technology; Zara as to deal with the competition it is facing Reference No. GRS0084 flagship store for the Inditex group; Supply from the generic drug makers. Year of Pub. 2005 chain management; Outsourcing of Teaching Note Not Available manufacturing to Asian countries; Concept Industry Pharmaceuticals Manufacturers Struc.Assign. Not Available of in-house manufacturing; Hennes & Reference No. GRS0086 Mauritz; Competition in the global retail Year of Pub. 2005 Keywords industry; Centralisation of Inditex’s Teaching Note Not Available business processes; ‘Fast fashions’ business Struc.Assign. Not Available Cisco Systems Inc.; Router technology; Diversification through acquisitions; model of Inditex; Distribution system and Keywords logistics of Inditex; Segmentation as a Nortel; Lucent Technologies; CDDI business strategy. Pharmaceutical industry; Centres of (Copper Distributed Data Interface) and Excellence for Drug Discovery; Patents; FDDI (Fibre Distributed Data Interface); Generics; Clinical trials; Paxil; Dr Jean Reliable distribution networks; Niche Pierre Garnier; New product pipeline; IBM’s ‘Mach 1’ Project: The New marketers; Network of networks; Advanced Patent expiry; Blockbuster drugs. technologies; e-Commerce. Growth Driver? Since the late 1990s, IBM (International Business Machines) has been losing market Craigslist.org’s Growth Strategies Apollo Group: The US Education share in its core hardware business with a Providers’ Growth Strategies major portion of its revenues coming from Craigslist.org founded in 1995 as a free software and services divisions. To improve on-line classifieds site serving the Bay Area Apollo Group (Apollo), a US-based for- its hardware business, a new project named has become a treasure trove of job postings, profit education company provided higher Mach 1 was implemented in 2000. The personal ads and other on-line information, education programmes tailor-made for project started yielding positive results attracting one billion page views per month. working adults. The group with its four from the last quarter of 2000, and for the The success of the site is largely subsidiaries successfully established itself as first three quarters of 2004 the revenues attributable to its chairman Craig a highly profitable post secondary from IBM’s hardware division has increased Newmark’s vision of the Internet and the education company. By focusing on the by 9.4% while that from its software has distinct brand identity he was able to create needs of working adult students, treating increased only by 2.8%. for the site. students as customers and meeting the changing market needs by providing online Pedagogical Objectives Pedagogical Objective courses, Apollo became the largest private university in the US. • To highlight the contribution of IBM’s • To discuss how a simple ordinary looking Mach 1 project in making the hardware website with its ease of use has disrupted business the new growth driver of IBM the traditional classified advertising industry.

60 www.ibscdc.org

Pedagogical Objective base of 10 million people. Having Sohu.com: The Growth Strategies

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S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S operations across 16 countries in Africa, II – Y G E T A R T S • To discuss how Apollo built a billion- Shoprite plans to further expand and Sohu.com is China’s leading web portal and dollar business by carving a niche for increase its share of non-South African directory. Through partnerships and itself in the ‘working adult students revenues from 10% to 50%. continuous innovation in services, Sohu education market’, which for long had turned into the premier destination for remained unattended by the traditional Chinese Internet users and advertisers. But Pedagogical Objective universities. the company incurred significant net losses • To highlight the strategies behind the since its inception. To move towards Industry Education rapid growth of Shoprite against the profitability it changed the business strategy Reference No. GRS0083 backdrop of trade restrictions, from on-line advertising to selling services Year of Pub. 2005 bureaucracy and inflation, that has been such as on-line games, dating services, Teaching Note Not Available the perennial hurdles for the company. e-marketing, e-subscriptions and Struc.Assign. Not Available e-commerce, targeting individual Keywords Industry Grocery Retail consumers and other value-added services. Reference No. GRS0081 For-profit education; Working adults; John Year of Pub. 2005 Pedagogical Objective G Sperling; Todd S Nelson; University of Teaching Note Not Available Phoenix; Institute for Professional Struc.Assign. Not Available • To highlight the evolution of Sohu, and Development; Western International the growth strategies it followed to Keywords University; UOP (University of Phoenix) address the challenges in the existing and on-line; Axia College. Shoprite Holdings Ltd; Shoprite’s emerging web services business. Geographical expansion; Horizontal integration; Supermarket industry in South Industry Internet Search and Navigation Africa; Shoprite’s retail formats; South Services The Body Shop: The Ethical Reference No. GRS0079 Beauty Retailer’s Growth Africa’s formal retail sector; South African Development Community; Retailing in Year of Pub. 2005 Strategies South Africa; Department of Trade and Teaching Note Not Available Struc.Assign. Not Available The Body Shop International, a UK-based Industry in South Africa; Flood inflation speciality beauty retailer, known for its in South Africa; Pick n Pay. Keywords environment-friendly product testing and socially conscious activism, offers 600 Sohu; Sina; Internet; China IT industry; products and 400 accessories across 50 Paid searches; Charles Zhang; Internet Reckitt Benckiser: Growing statistics; Growth strategy; On-line games; countries. The global retailer, with a 40% through Innovations increase in profits in 2004, intends to Internet advertising; e-Commerce; NetEase; Web portals; Yahoo; Google. expand into the lucrative Asian and African Since its inception in 1999, Reckitt markets through the concept of Direct Benckiser has constantly been improving Home Selling, which the company its core brands while coming out with new introduced in its home market in the 1980s. brands. The company has offset challenges Royal Caribbean Cruises Limited: of exchange rate fluctuations and hike in The Growth Strategies Pedagogical Objective the prices of its raw materials through constant product innovations and cost Despite unforeseen events like the • To discuss how the Body Shop is making optimisation techniques. It has constantly September 11 terrorist attack, SARS attempts to expand its business globally held the world’s No.1 position in household (Severe Acute Respiratory Syndrome) by leveraging on its image as an ethical cleaning items and has posted five straight outbreak and the Iraq war, the world’s beauty retailer. years of above industry average growth. second-largest cruise line, Royal Caribbean, recorded total revenues of $4.6 billion in Industry Cosmetics, Beauty and Perfume st Pedagogical Objective the year ended 31 December 2004. With Retailing a fleet of 29 ships, the company catered Reference No. GRS0082 • To discuss how constant product to 160 destinations across the world. The Year of Pub. 2005 innovations has enabled Reckitt increasing demand in the cruise industry Teaching Note Not Available Benckiser to transform itself into the forced Royal Caribbean to further expand Struc.Assign. Not Available world’s largest household cleaning its passenger capacity amidst the Keywords products manufacturer apart from challenges of rising oil prices and a debt becoming one of Britain’s most burden of $5.8 billion. The Body Shop International PLC; Ethical innovative companies. retailer; Niche marketing; Specialty Pedagogical Objective retailer; Anita Roddick; Community trade; Industry Cleaning Products Brand image; Body Shop at home; The Reference No. GRS0080 • To discuss the growth and expansion Body Shop tour; Humane cosmetics Year of Pub. 2005 strategies adopted by Royal Caribbean standard; Masstige price. Teaching Note Not Available against the backdrop of some major Struc.Assign. Not Available problems and challenges faced by the Keywords company. Shoprite: South African Retailer’s Reckitt Benckiser; Growth strategy; Industry Travel Agencies and Services Growth Strategies Innovations; Consumer products Reference No. GRS0078 Year of Pub. 2005 Started in the late 1970s with a chain of manufacturer; Household cleaning; Cost Teaching Note Not Available eight supermarkets in South Africa, optimisation techniques; Diversification; Struc.Assign. Not Available Shoprite Holdings Ltd. (Shoprite), by 2004, Expansion; Line extentions; Organic has become Africa’s largest food retailer growth; Innovative marketing; Exchange with more than 900 outlets and a customer rate fluctuations; Dettol; Lysol. 61 www.ibscdc.org Keywords company. Total tried to overcome its Foundation; News guerillas; Competitive problems through its negotiations with strategies; Readers’ Voice. Royal Caribbean Cruises Limited; Cruise other oil companies, an increase of industry; Royal Caribbean International; production due to major new discoveries, Celebrity cruise; Carnival; Royal Caribbean and by lowering its costs. fleet size; North American cruise market; SINA: The Yahoo of China? Travel industry; Royal Caribbean cruise SINA is a leading Internet portal for all fares; Passenger growth in cruise industry; Pedagogical Objectives Chinese-speaking communities around the Richard Fain; Growth strategy; Royal • To discuss the troubles faced by Total in world. With usage of the Internet booming, Caribbean expansion plans; Major cruise st the early 21 century China seems set to overtake the US as the lines. • To discuss the growth strategies and country with the largest on-line audience. challenges Total faces to beat its SINA’s aim is to capitalise on the competitors. opportunities presented by the Chinese Gambling Industry in USA: The Internet market and one day become the Growth Strategies Growth Strategies Growth Strategies Growth Strategies Growth Strategies Growth Strategies Industry Oil and Gas Yahoo of China. Reference No. GRS0076 After its new-found respectability and the Year of Pub. 2005 Pedagogical Objectives government’s interest in deregulating this Teaching Note Not Available tightly controlled business, gambling has Struc.Assign. Not Available • To discuss the growth strategies become one of the most flourishing industries employed by SINA to become a leading in the US. It grew from less than $40 billion Keywords Chinese Internet portal in 1993 to $73 billion in 2003, 32.4% of Total; TotalFina; TotalFinaElf; Growth • To highlight the combative strategies the total global gambling revenue for that strategy; Oil and gas industry; Hydrocarbon; year. By 2004, 46 states in the US had some employed by SINA against its Upstream; Downstream; Chemical competitors, Sohu and NetEase. form of legalised gambling and it is expected business; Exxon Mobil; OPEC that on-line gambling alone would generate (Organisation of Petroleum Exporting Industry Content Providers revenues of $7.6 billion by 2005. Countries); Petroleum products. Reference No. GRS0074 Year of Pub. 2005 Pedagogical Objectives Teaching Note Not Available Struc.Assign. Not Available • To highlight the evolution and growth The Growth Strategies of South of the gambling industry in the US Korean Real-Time News Site, Keywords • To discuss the challenges faced by it due OhmyNews: The Challenges SINA; Chinese Internet portal; Sohu.com; to market saturation and the US tax OhmyNews, a South Korean real-time news Wang Zhidong; NetEase; Growth strategy; structure. website, operates on the new concept of Stone Rich Sight Information Technology Company; China; Internet messaging Industry Gambling, Resorts and ‘citizen journalism’ (any ordinary citizen services; e-Commerce services; Casinos can contribute news). Since its inception Comprehensive portal; Joint ventures; On- Reference No. GRS0077 in February 2000, the number of ‘citizen line advertising; Competitive strategies; e- Year of Pub. 2005 reporters’ has grown from 700 to 36,000 mail services. Teaching Note Not Available and its readership has grown to more than Struc.Assign. Not Available one million a day. Through its innovative concept it has grown to become the eighth Keywords most influential media organisation in AMD’s Growth Strategies South Korea and has started making profits. Gambling industry; Growth strategies; As part of its growth plans, OhmyNews Since its inception, AMD (Advanced Micro Consolidation; MGM (Metro-Goldwyn- has ventured globally and decided to make Devices) always focused on producing low- Mayer) Mirage; Harrah’s Entertainment; its revolutionary concept successful around priced versions of Intel chips through Internet gambling; Lotteries; Pari-mutuel the world. reverse engineering. However by 2004, it wagering; Casinos; Mergers and completely changed its strategy and acquisitions; National Gambling Impact Pedagogical Objectives emerged as a major innovator of a 64-bit Study Commission (NGISC); Cashless slot processor, Opteron, which helped it to gain machines; Globalisation; American Gaming • To discuss the growth strategies followed a strong foothold in the processor market. Association; Entertainment industry. by OhmyNews In 2004 the company recorded revenues of $5 billion. • To discuss the challenges it faces in its attempt to grow as an influential medium Total: The French Oil Giant’s at the international level. Pedagogical Objectives Growth Strategies Industry Real time Internet News Portal • To highlight the growth achieved by Total is the third-largest oil company in Reference No. GRS0075 AMD through its ‘customer-centric th Europe and is ranked 25 in the FT Year of Pub. 2005 innovation’ philosophy (Financial Times) Global 500. The Teaching Note Not Available • To discuss the strategies adopted by AMD company has become the fourth-largest, Struc.Assign. Not Available to become an innovator from an publicly traded, oil and gas integrated imitator. company in the world. However, in 2002, Keywords the company’s former and existing OhmyNews; South Korea; Real time Industry Microprocessors, Micro executives were charged with a corruption Internet news portal; Citizen journalism; Controllers and Digital Signal scandal (alleged to have taken place in the Oh Yeon-Ho; Growth strategy; OhmyNews Processing 1990s). Meanwhile, the other problems for International; Conservative newspapers; Reference No. GRS0073 Total were reduced demand, a weaker US Citizen reporters; Two-way journalism; Year of Pub. 2005 dollar, and the falling output of the Comprehensive news portal; Korea Press Teaching Note Not Available Struc.Assign. Not Available 62 www.ibscdc.org

Keywords impact of 3G (third generation) services Industry Not Applicable

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S was unclear and (3) the Japanese handset Reference No. GRS0070 II – Y G E T A R T S Advanced Micro Devices (AMD); Growth market was nearing saturation. To offset Year of Pub. 2005 strategies; Chipmaker; Microprocessors; the declining sales, Japanese handset makers Teaching Note Not Available Flash memory devices; 64-bit processors; initiated steps to explore opportunities Struc.Assign. Not Available AMD Opteron; AMD Athlon; Customer- outside their domestic market. They felt centric innovation; Licensed second source that the advanced technologies of their Keywords manufacturer; Connected business model; handsets would help in attracting customers Growth of emerging economies; The BRIC Mergers and acquisitions; Intel; in foreign countries. By all accounts, Technological collaboration; Innovations. (Brazil, Russia, India and China) Japanese handset makers could capitalise economies; Brazil’s real plan; Brazil’s on their expertise in 3G technologies with inflation-targeting regime; Russia’s its advent in European countries and China. structural reforms; Economic reforms of NCsoft: The World’s Largest India; China’s economic development; Independent Online Game Pedagogical Objectives Growth imperatives for the BRIC Company’s Growth Strategy economies; Hindrances in growth of the • To analyse the factors that contributed BRIC economies; Transparency NCsoft, the world’s largest independent on- to the slowdown in the growth of the International; Human Development Index; line game company, was established in Japanese handset market G-6 nations (US, Japan, Germany, France, 1997. Under the leadership of CEO (Chief • To discuss the efforts initiated by the Italy and Britain). Executive Officer) and president, Tack Jin Japanese handset makers to make a Kim, NCsoft’s premier product ‘Lineage’ foray into the foreign markets became an instant hit among on-line gamers around the world. NCsoft continued • To discuss the challenges faced by Citibank in Asia to publish new games and modify old ones Japanese handset makers ahead in By 2004, Citibank was the leading financial to suit worldwide consumer tastes and emerging as strong contenders in the services provider and one of the top 10 preferences. It entered foreign markets global handset market. consumer brands in Asia. Since the late through acquisitions and partnerships with Industry Wireless Telephone Handsets 1990s, the consumer business of Citigroup, well-established domestic companies. But, the parent company of Citibank, recorded as NCsoft sought to continue its expansion Reference No. GRS0071 Year of Pub. 2005 a compound annual growth rate of 20% in spree around the world, a face-off with US Asia. A steady economic growth in Asia giant Microsoft and Japan’s Sony seemed Teaching Note Not Available Struc.Assign. Not Available coupled with the absence of a Pan-Asian likely. financial services group offered crucial Keywords opportunities to the financial mega-brand Pedagogical Objectives in this region. Japanese handset makers; 3G (third • To discuss the growth strategies adopted generation) technology; Saturation in by NCsoft to capitalise on the lucrative Japanese mobile phone market; Pedagogical Objective on-line games market Dominance of network operators in Japan; • To discuss the opportunities and Japan’s mobile phone market; Advanced • To highlight the various opportunities challenges faced by the global bank in features in Japanese handsets; Wideband and challenges that NCsoft might face the competitive Asian market. code division multiple access; Sony in the future. Ericsson; Roll out of 3G services in China. Industry Banking Industry Entertainment and Games Reference No. GRS0069 Software Year of Pub. 2005 Teaching Note Not Available Reference No. GRS0072 Growth Strategies of BRIC Struc.Assign. Not Available Year of Pub. 2005 Economies Teaching Note Not Available Keywords Struc.Assign. Not Available In 2004, countries in Latin America, Asia and Europe experienced their fastest GDP Citibank NA; Asian financial crises; Bank Keywords (Gross Domestic Product) growth rates consolidation in Asia; Household financial Japanese handset makers; 3G (third since the 1970s. Favourable external assets; Consumer banking; Household generation) technology; Saturation in factors such as reduced global interest rates, credit; On-line banking; Credit cards; Japanese mobile phone market; high demand from the US and the Citigold; Suvidha scheme; Travelers Group; Dominance of network operators in Japan; depreciation of the US dollar against the Competitors for Citibank in Asia; Japan’s mobile phone market; Advanced respective currencies facilitated this Segmentation of the Asian bank customers. features in Japanese handsets; Wideband growth. Brazil, Russia, India and China code division multiple access; Sony collectively called the BRIC economies, Ericsson; Roll out of 3G services in China. started featuring along with the G-6 nations PC Industry’s Next One Billion in terms of the purchasing power parity Customers: Exploring the Growth (PPP), due to their high GDP. It was also estimated that the BRIC’s would outpace Avenues Japanese Handset Makers: the G-6 nations by 2040 and emerge as the Exploring New Growth The global PC industry was looking for global economic powerhouses in the future. new avenues for growth as its traditional Opportunities markets matured. Penetration levels in the Since the beginning of the 21st century, the Pedagogical Objectives US PC market as well as other European nations were as high as 60%. The industry Japanese handset makers experienced a • To highlight the economic growth behemoths like Dell, Microsoft, IBM and slump in their sales in the domestic market. strategies of the BRIC countries The factors attributed to the fall were: (1) a Hewlett-Packard believed that developing fall in new subscriber growth (market • To discuss the growing importance of countries like Brazil, India, China and penetration was approaching 60%) (2) The BRIC countries in the global economy. Russia were the next ‘one billion market’. 63 www.ibscdc.org While the companies were tapping the un- Giorgio Armani’s Growth mines in Australia; Chinese appetite for met needs and were adapting themselves Strategies steel; Iron ore mines in Australia; Bauxite to the market requirements, several mines in Indonesia. challenges stood in their way to success. Since its inception in 1975, the Giorgio The poverty levels, the rigid laws and the Armani Group, the Italian fashion house, known for its ‘power suits’ in the 1980s language diversity were, among others, the Nokia in China: The Growth problems for these multinationals. and its clients in Hollywood, has been reporting continuous profit growth. By Strategies Pedagogical Objective 2003, the apparel and luxury goods Since 1985, Nokia had been fighting hard manufacturer and retailer had its presence to establish a strong presence in the Chinese • To highlight the PC industry’s growth in 34 countries across the globe with brands cellphone market that had grown strategies in the traditional markets and like Giorgio Armani, Armani collezioni, significantly during the 1990s. Despite its entry into emerging markets. Emporio Armani, Armani Jeans, Armani investing heavily in research and Exchange, Armani Junior and Armani Industry PC Software and Hardware development and manufacturing facilities,

Growth Strategies Growth Strategies Casa. Growth Strategies Growth Strategies Growth Strategies Reference No. GRS0068 Nokia had been facing tough competition Year of Pub. 2005 not only from foreign companies like Teaching Note Not Available Pedagogical Objective Motorola and Samsung but also from domestic players like TCL and Ningbo Struc.Assign. Not Available • To discuss the strategies adopted by the Bird. The market share of domestic players fashion house to expand and diversify Keywords had increased from a mere 5% in 2000 to in the global fashion industry. PC industry; Emerging markets; Dell in 56% in 2003. China; Hewlett-Packard in emerging Industry Apparels markets; PC in rural India; PC market in Reference No. GRS0066 Pedagogical Objective US; Hewlett-Packard in South Africa; BRIC Year of Pub. 2005 Teaching Note Not Available • To discuss the growth strategies being economies and PC industry; Market adopted by Nokia to gain a strong expansion; Growth strategies; South Korea Struc.Assign. Not Available foothold in the highly competitive yet broadband; On-line gaming in South Korea; Keywords growing cellphone market of China. Dell’s SmartPC; Software piracy in developing countries Giorgio Armani SpA; Giorgio Armani Industry Wireless Telephone Handsets Corporation; Emporio Armani; Power suit; Reference No. GRS0064 The most famous glamour house; American Year of Pub. 2004 Gigolo and Richard Gere; Strategic alliances; Hershey Foods Corporation: The Teaching Note Not Available Acquisitions; L’Oreal; Armani brands; Struc.Assign. Not Available North American Snack-Food Hollywood; Competitors for Giorgio Maker’s Growth Strategies Armani. Keywords Hershey Foods Corporation, the largest Nokia in China; Nokia (China) Investment North American snack food maker’s origin Co. Limited; Nokia entry strategy in dates back to the 19th century. Since then, BHP Billiton: The Australian China; China mobile phone market; China the company has concentrated on Mining Company’s Growth cellular market; Domestic and foreign producing a wide variety of chocolates to Strategies cellphone players in China; Xingwang suit the customers’ taste. Hershey’s strategy Industrial Park; Nokia cell phone models encompasses extension of its product line In 2001, BHP, an Australian ‘natural in China; Nokia investment in China; that provides the company a distinct resources company’ and Billiton, a British Nokia GSM (Global System for Mobile advantage over its competitors like Mars mining company, merged to form the Communications) phones in China and Nestle. In addition, Hershey’s focus world’s largest mining company – the BHP on acquisitions of well-known brands, Billiton Group. Since its formation, the discontinuing weak product lines, apart group has been focusing on global Hennes & Mauritz (H&M): The expansions, leveraging on BHP’s expertise from appropriate marketing of its products Growth Strategies enabled the company to achieve net sales in natural resources and Billiton’s vast of $4,172.551 million in 2003. experience in the mining industry. By June From a single store selling womenswear in 2004, the group had a market 1947 to over 900 stores in 2003, the Pedagogical Objective capitalisation of US$54 billion. Swedish fashion retailer H&M had come a long way. By then, the company with • To discuss the strategies adopted by Pedagogical Objectives operations in 20 countries and a turnover Hershey to grow in the competitive US of SKR57 billion had become the largest snack food industry. • To discuss the global growth strategies discount retailer in Europe, selling clothes of the BHP Billiton Group Industry Candy & Confections for women, men, teenagers, and children, Reference No. GRS0067 • To discuss the company’s plans for besides accessories for men and women, Year of Pub. 2005 sustaining its leadership in the worldwide and cosmetics. It also started concept stores Teaching Note Not Available mining industry. to serve its customer segments better. Struc.Assign. Not Available Industry Metals and Mining Pedagogical Objectives Keywords Reference No. GRS0065 Year of Pub. 2004 • To discuss the strategies adopted by Hershey Foods Corporation; Milton Teaching Note Not Available H&M to become Europe’s largest Hershey; Hershey’s brands; US snack food Struc.Assign. Not Available discount fashion retailer market; Hershey’s product lines; Hershey’s acquisitions; Hershey’s Kisses; Hershey’s Keywords • To discuss the market entry strategies sales growth; Hershey’s competitors. of the company for the US market. BHP Billiton; Global mining market; Aluminium refineries in South Africa; Coal 64 www.ibscdc.org

Industry Apparel and Accessories Pedagogical Objective focusing on managing business travel for

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S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S Retail corporate clients worldwide. Its II – Y G E T A R T S • To discuss the growth strategies of Pop Reference No. GRS0063 competency lies in the optimisation of Idol, which is leveraging on its Year of Pub. 2004 corporate travel budgets by designing and experience as a content provider to Teaching Note Not Available implementing customised travel international television media industry. Struc.Assign. Not Available management programmes. With annual sales of $11.5 billion in 2003, Carlson Keywords Industry Television Production and Distribution Wagonlit had become the second-largest New market entry strategy; Store location; Reference No. GRS0061 travel agency in the world after American Customer segmentation; Discount fashion Year of Pub. 2004 Express. retailer; US fashion retailing industry; Galne Teaching Note Not Available Gunnar stores; European fashion retailing Struc.Assign. Not Available Pedagogical Objective industry; Concept stores; Departmental stores; Store size. Keywords • To discuss Carlson Wagonlit’s aggressive global growth strategies based on Pop Idol; American Idol; acquisitions and joint ventures, which FreemantleMedia; RTL Group; Reality made it the second-largest travel agency STAR TV in India: The Growth shows on the television; Idol series; The in the world. Strategies format of idol series; Statistics of the idol series; Acquisitions of Pearson Television; Industry Travel agencies and Services From its nearly obscure status in India in The statistics of American Idol. Reference No. GRS0059 1991, STAR (Satellite Television Asia Year of Pub. 2004 Region) TV has reached a dominant Teaching Note Not Available position, reaching 90% of the 40 million Constellation Energy: The Growth Struc.Assign. Not Available Indian homes having cable and satellite connections by 2004. With a sizeable Strategies Keywords portfolio of news, entertainment and Constellation Energy Group Inc. is a Global travel agency business; Customised sports channels, both in English and Hindi, national supplier and service provider of travel management programmes; Accor it secured a 62% share in viewership and a electricity and natural gas in the US. It group; Japan Travel Bureau; Top ten travel 50% share of the total advertising ranks 203 amongst the Fortune 500 agencies in the world; Prominent customers revenues of the Indian television market. companies. By 2004, it had become the of Carlson Wagonlit Travel; Major biggest power trader in the US. acquisitions and Joint Ventures (JV) of Pedagogical Objective Carlson Wagonlit Travel; History of Pedagogical Objective Carlson Wagonlit Travel; Carlson Wagonlit • To discuss the growth strategies of STAR Travel’s growth in the Asia-Pacific; Maritz TV that has made it the leader in the • To discuss the growth strategies of Corporate Travel; Groupe Protravel. highly competitive television market in Constellation which is leveraging on its India. experience as a competitive energy marketer since its incorporation in Industry Entertainment 1999. British Telecom: Driving Growth Reference No. GRS0062 through Broadband Year of Pub. 2004 Industry Energy Trading and Marketing Teaching Note Available Reference No. GRS0060 Since 2001, British Telecom Plc. (BT), Struc.Assign. Available Year of Pub. 2004 the UK’s leading telecommunications carrier, has been struggling to reduce its Keywords Teaching Note Not Available Struc.Assign. Not Available high debt levels. Unlike its competitors, it News Corporation; Cable television has no presence in the mobile telephony business in India; STAR (Satellite Keywords market. CEO Ben Verwaayen discovered Television Asia Region) TVs advertising Utility companies in the US; Power trading that broadband internet services could be revenues in India; STAR TV’s viewership companies in the US; Constellation the company’s growth-driver. Apart from share in India; STAR TV’s initial years in Nuclear LLC; Business segments of moving towards 100% broadband coverage India; STAR channels in India; MTV (Music Constellation Energy Group; Expansion for every community in the UK by 2005, Television) India; Channel [V]; STAR’s strategies of Constellation Energy Group; BT is betting on three ambitious broadband growth plans in India; Media competition The Energy market in the US; Wisconsin initiatives to bring in greater revenues – st in India; Direct-to-home (DTH) satellite Energy Corporation; Constellation Group’s 21 Century Network, BT Communicator television distribution system; STAR TV’s strategic alliances; The generating facilities and Project Bluephone. market share in India. of Constellation Energy Group Inc.; Financials of Constellation Energy Group Pedagogical Objectives Inc; Business wise revenues of Constellation • To discuss BT’s turnaround between 2001 FreemantleMedia’s Pop Idol: Energy Group Inc.; The energy value chain and 2004 from a telecom service The Growth Strategies for Constellation Energy Group Inc.; provider to a dominant player in Companies of Constellation Enterprise; broadband Internet services The Idol series, the international format Future contracts of Constellation Energy of Pop Idol, a UK-based national talent Group Inc. • To discuss BT’s future plans to drive search for the best solo singer, is jointly broadband penetration and create handled by FreemantleMedia and 19 Group. products and services that would help The Idol series has got the maximum Carlson Wagonlit Travel: The enable its customers in utilising number of nominations amongst all reality broadband TV shows in the Emmy awards and has a Growth Strategies • To discuss the company’s shifting total audience of 110 million across the Started in 1994, Carlson Wagonlit Travel revenue model and the regulatory issues globe. specialises in travel management, primarily it currently faces. 65 www.ibscdc.org Industry Telecommunications make further investments in Russia by USA’s Banking Industry’s Growth Reference No. GRS0058 setting up a beer brewery in the Urals. Strategies: CitiGroup’s Year of Pub. 2004 Unconventional Wisdom Teaching Note Not Available Pedagogical Objectives Struc.Assign. Not Available CitiGroup pioneered big mergers and • To discuss the market entry strategies acquisitions in the US banking industry, and Keywords of Heineken in Russia led the first round of big consolidations British Telecom Plc. (BT); Ben Verwaayen; • To discuss the company’s plans to resulting in the formation of financial Broadband; Project bluephone; UKs establish itself as a leading player in the conglomerates. Transformational mergers broadband penetration; BT highly competitive beer market of occurred in the industry marking the Communicator; Vodafone; Ofcom; Oftel; Russia. beginning of an integrated approach for 21st Century Network; Sir Christopher market expansion. After a halt in the Bland; BT Wholesale; BT Retail. Industry Brewers mergers, the trend resurfaced with the big Reference No. GRS0056 merger of Bank of America and Fleet Growth Strategies Growth Strategies Growth Strategies Growth Strategies Growth Strategies Year of Pub. 2004 Boston. However, this time CitiGroup Teaching Note Not Available stayed away from big mergers. Charles Louis Vuitton: The Making of a Struc.Assign. Not Available Prince, who took over as the new CEO, Star Brand focused on growth strategy through Keywords Louis Vuitton (LV), the trendsetter in acquisitions of small regional banks. manufacturing high-quality expensive The global beer industry; The Russian beer leather accessories and cases, is the most industry; Ban on advertisements in Russia; Pedagogical Objectives Potential growth of the Russian beer profitable luxury brand in the world. After • To discuss the CitiGroup’s contrarian Marc Jacobs took over as the Creative industry; Heineken’s expansion strategies in Russia; Major players in the Russian beer approach, of pursuing slower growth Director of LV in 1997, its brand image through small- scale acquisitions underwent a complete transformation. By market; Bravo International Inc; 2004, LV was bringing in 60% of LVMH’s Heineken’s acquisitions in Russia. • To discuss the growth strategies of US US$2.47 billion operating profits and was banking firms and the possible threat to much ahead of its competitors like Gucci, CitiGroup’s position in the light of big Richmont and Prada. Whirlpool’s Global Expansion mergers in the country. Strategies Industry Banking and Financial Pedagogical Objective Whirlpool is the leading manufacturer of Services • To discuss the strategies that Louis major household appliances in the world. Reference No. GRS0054 Vuitton adopted to upscale its image and In the 1980s, the company, a market leader Year of Pub. 2004 metamorphise itself into a star brand. in the US expanded its presence to Europe, Teaching Note Not Available Asia and Latin America. The company has Struc.Assign. Not Available Industry Apparels relied on globally integrated activities, Reference No. GRS0057 Keywords customer focus and constant innovation Year of Pub. 2004 US retail banking industry; Merger and to aid growth. But the company’s Asian Teaching Note Not Available acquisitions; Financial conglomerates; operations faced numerous hurdles Struc.Assign. Not Available Financial supermarkets; Integrated selling; including a preference for local brands and Cross-selling; Transformational mergers; Keywords price competition. Glass Steagall Act; Sandy Weill; Gramm- Louis Vuitton (LV); LVMH (Moet Leach-Bliley; Conflict of interests; Hennessy-Louis Vuitton); Star brand; Pedagogical Objectives Economies of scale; Economies of scope; Branding strategy; Brand development; • To discuss Whirlpool’s global expansion Riegle-Neal Act; CitiGroup. Luxury brand; Marc Jacobs; Innovations strategies in the material used by Louis Vuitton; • To discuss the problems faced by the LVMH sales in 2003; LVMH sales by Samsung in India: The Growth company in Asia Business Group. Strategies • To discuss the opportunities and challenges that Whirlpool is likely to Samsung India Electronics Limited (SIEL) Heineken in Russia: The Growth face in the future. is a 100% subsidiary of Samsung Strategies Electronics Company Limited (SEC). Industry Consumer Durables and SIEL, a hi-tech manufacturer and marketer In the 1990s, the Netherlands-based beer Appliances of consumer electronics and home producer, Heineken was operating in 170 Reference No. GRS0055 appliances, entered the Indian market in countries across the globe. The rapid Year of Pub. 2004 1992. By 2004, SIEL was one of the leading growth of the Russian beer market since Teaching Note Not Available providers of consumer electronics and the mid-1990s prompted Heineken to Struc.Assign. Not Available aimed at becoming the leading player in the Indian home appliances and the establish its presence in Russia. In 2001, Keywords Russia became the fifth-largest beer market information technology market. in the world and in 2002, Heineken forayed Whirlpool’s global expansion strategies; into Russia by acquiring the fourth largest Home appliance industry; Innovation; Pedagogical Objective Russian beer company, Bravo Growth strategy; Price competition; International. Despite the ban on beer Mature market; Customer focus; Electrolux • To discuss the strategies adopted by the advertisements imposed by the Russian AB; Kenmore; David Whitwam; Jeff Korean electronics major for its entry government in 2004, Russia’s strong Fettig; Consumer durables; Branding and subsequent expansion in the growth potential encouraged Heineken to strategy. competitive Indian market.

66 www.ibscdc.org

Industry Consumer Electronics Canon: Fujio Mitarai’s “Excellent marketing in order to protect their

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S T R A T E G Y – II – Y G E T A R T S

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S Reference No. GRS0053 Global Corporation Plan” customer base. Year of Pub. 2004 Teaching Note Not Available The world’s leading maker of copiers and Pedagogical Objectives Struc.Assign. Not Available printers, Canon Inc., reinvented itself from an unwieldy conglomerate burdened with • To discuss the strengths of BPCL as an Keywords money-losing subsidiaries into a globally oil marketer over the years, and the st Samsung India Electronics Limited (SIEL); focused 21 century company. Fujio initiatives taken by the company in the Samsung Electronics Company Limited; Mitarai, who took over as the President in wake of changes in the business Samsung India Software Operations (SISO); 1995 when the company was faced with a environment difficult operating environment, was given Millennium digital campaign; Samsung • To discuss the challenges faced by BPCL Electronics India Information and the credit for bringing back the lost glory Telecommunications Company (SEIIT); of the company. His first initiative was to • To discuss BPCL’s foray into the Samsung’s timeline in India; Entry of promote the ‘excellent global corporation upstream sector of exploration and Samsung into India; Common business plan’. The plan was divided into two phases: production consequent to the strategies of Korean companies in India; Phase (I) (1996-2000) and Phase (II) deregulation, and the crude supply Samsung sponsoring Indian sports; A (2001-2005). Phase (I) of the business plan scenario emphasised on improving the company’s competitive landscape for Samsung in • To discuss the following points: (1) the India. financial situation by cutting costs, taking care of profitability of the entire Canon growth motives of companies in a Group, and creating more competitive regulated and a deregulated environment; products. Phase (II) of the ‘excellent global (2) oil industry economics and the pros Ranbaxy Laboratories: The corporation plan’ aimed at expanding the and cons of vertical integration in an Winning Chemistry company globally and shifting to overseas industry such as oil and gas; (3) analyse production. the changes in the oil industry structure In February 2004, Indian pharmaceutical due to deregulation and how it affects major Ranbaxy Laboratories had achieved new and established companies; (4) Pedagogical Objectives the unique distinction of crossing the SWOT (strengths, weaknesses, billion-dollar mark in annual sales. The • To discuss the initiatives taken up by opportunities and threats) analysis of company was now in the implementation Fujio Mitarai under the ‘excellent global BPCL; and (5) analyse the rationale phase of its ‘vision garuda’ that aimed to corporation plan’ to bring back the lost behind BPCL’s foray into the make the company achieve US$5 billion glory of Canon Inc. exploration and production sector. in annual sales by 2012. Ranbaxy’s strategy was to be prepared for the International • To discuss the future plans of Fujio Industry Oil, Gas and Energy Patent Law (IPL) regime to be Mitarai for the further growth of the Reference No. GRS0050 implemented from January 2005, by a company. Year of Pub. 2004 combination of increased spending in basic Teaching Note Not Available Industry Printing and Imaging research, generic drugs and global Struc.Assign. Not Available Equipment expansion. Reference No. GRS0051 Keywords Year of Pub. 2004 Bharat Petroleum; Oil industry in India; Pedagogical Objectives Teaching Note Not Available Upstream sector; Downstream sector; Struc.Assign. Not Available • To discuss the competitive scenario of Regulatory environment; Reorganisation; the Indian pharmaceutical industry Keywords Petroleum industry value chain; Energy sector; Competition. • To discuss how Ranbaxy is positioning Canon; Fujio Mitarai; Excellent global itself for the future. corporation plan; Canon under Fujio Mitarai; Consolidated accounting system; Industry Pharmaceuticals Manufacturers American Express: Charging into Reference No. GRS0052 Management reform committee; Profit- the Credit Card Industry Year of Pub. 2004 first policy; Cell production system; Just- in-time system; Xerox; Phase (I) excellent Teaching Note Not Available The 154-year-old American Express global corporation plan; Phase (II) Struc.Assign. Not Available Company (AmEx), is all poised to shake excellent global corporation plan; the US credit card market by taking on the Keywords Research and development; Kyosei; two card giants – Visa and MasterCard – Management strategy committee. Ranbaxy Laboratories Limited; Growth head-on. AmEx is planning to leverage on strategy; The Indian pharmaceutical the antitrust ruling against the two giants industry; International Patent Law; for barring other banks from issuing the General Agreement on Trade and Tariffs Bharat Petroleum: Way Forward credit cards of other companies. It hopes (GATT); Dr. Parvinder Singh; Trade related that the US apex court will uphold the ruling In 2004, Bharat Petroleum Corporation aspects of intellectual property rights and create competition for the first time Ltd. (BPCL), was one of the leading state- (TRIPS); Generic drugs; Product patents; in the US credit card market, which for a controlled oil retailing companies in India. process patents; Mergers and acquisitions; long time has been a duopoly. The case talks about the evolution of the Research and development; Blockbuster oil industry, its structure, its changing drugs; Reverse engineering; Global regulatory environment, the resulting Pedagogical Objective expansion strategy. competitive scenario and its implication • To discuss the strategies of AmEx to for BPCL. With the partial liberalisation launch its own credit card in direct of the industry and the entry of private competition with Visa and MasterCard players, state-owned downstream and the possible outcomes of this marketers were forced to focus on initiative.

67 www.ibscdc.org Industry Banking and Financial national telephony to corporate voice providers; Global hosted CRM applications Services services. By May 2004, SingTel, had a market; Business model of Salesforce; Marc Reference No. GRS0049 market capitalisation of $24 billion with Benioff; Application Service Provider Year of Pub. 2004 investments in over 20 countries. (ASP) model; Siebel; PeopleSoft; Sforce Teaching Note Not Available 2.0; CRM applications from Struc.Assign. Not Available Pedagogical Objective Salesforce.com; Prominent customers of Salesforce.com. Keywords • To discuss the growth and expansion Credit card business in the US; Visa strategies adopted by SingTel since its International; MasterCard Incorporated; inception while remaining focused on its domestic market. Emirates: The Ambitions and Diner’s Club; Charged cards’ Challenges BankAmericard; Antitrust lawsuit against Industry Telecommunication Services Visa and MasterCard; Kenneth I Chenault; Reference No. GRS0047 Emirates, established in 1985 in Dubai, is Major credit card companies in the US. Year of Pub. 2004 one of the fastest growing airlines in the Growth Strategies Growth Strategies Growth Strategies Growth Strategies Growth Strategies Teaching Note Not Available world. Despite terrorism in the Middle East Struc.Assign. Not Available countries, SARS (Severe Acute Respiratory Telecom Italia Mobile: Making Syndrome) and the Iraq war, Emirates has Keywords increased its passenger count and revenues Profits in a Mature Market SingTel Group; Temasek Holdings Ltd; significantly. As of 2004, it was the fifth- Telecom Italia Mobile (TIM) was the Liberalisation of Singapore highest profitable company in the world. largest mobile operator in Italy – a mature telecommunication industry; Cable & Apart from reinforcing Dubai’s position market with mobile phone penetration Wireless Optus; Telecommunication in as an international aviation hub, Emirates levels exceeding 90%. Despite intense South East Asia; SingTel’s growth strategies; is rapidly expanding in America and Europe competition, the company was one of the SingTel’s domestic market; Regional to overtake its competitors like Singapore most profitable mobile phone companies acquisitions of SingTel; Managed Hosting Airlines and Qatar Airways. in Europe. It sustained its revenue growth Services (MHS); SingTel’s global presence; in the saturated market through constant SingTel’s portfolio of services; Subsidiaries Pedagogical Objective innovation and aggressive marketing and affiliates of SingTel Group; SingTel’s strategies. • To discuss the growth plans of Emirates service network; SingTel’s group structure; to become one of the leading airlines in SingTel’s international network. the world and gain a sustainable Pedagogical Objectives competitive edge over its rivals. • To discuss the competitive scenario in Industry Airlines the telecom industry in Italy and TIM’s Growth Strategies of Reference No. GRS0045 Salesforce.com leadership role in introducing new and Year of Pub. 2004 innovative services to its customer Salesforce.com was founded in 1999 by the Teaching Note Available • To discuss TIM’s future growth former Oracle Vice President Marc. The Struc.Assign. Available opportunities and the challenges it faces company provides its Customer Keywords in Italy, brought about by the Relationship Management (CRM) service introduction of 3G (third generation) to businesses of all sizes and industries Airlines industry of the world; Emirates in services and the advent of a new player. globally, which is used for generating sales Dubai; ‘Open skies approach’ of Dubai; leads, maintaining customer information Dubai as an aviation hub; Qatar Airways; Industry Telecommunication Services and tracking customer interactions. With Locational disadvantages of Emirates; Reference No. GRS0048 its services, which can be accessed through Competition of Emirates; Growth Year of Pub. 2004 PCs, cellular phones and personal digital strategies of Emirates; Dubai International Teaching Note Not Available assistants, Salesforce.com aims to replace Airport; ‘Dubai Airport cares’; The fleet Struc.Assign. Not Available enterprise software packages with of Emirates; Routes of Emirates; Foray of Keywords outsourced services. The company, which Emirates in China. has emerged as a market leader in hosted Telecom Italia Mobile (TIM); Innovation CRM has seen its annual revenue increase as growth strategy; Competitive growth from $5.4 million in 2001 to $96 million Datang International Power strategy; Italian mobile market; Il in 2003. Telefonino; Global System for Mobile Generation: China’s Energy Giant’s Growth Strategies Communication (GSM); Vodafone Pedagogical Objective Omnitel; Wind Telecommunicazioni Spa; Datang International Power Generation 2G (second generation); 3G (third • To discuss the pioneering business model Company (Datang), formerly Beijing generation); Short Messaging Service and the aggressive growth strategies of Datang Power Generation Corporation, is (SMS); EDGE (enhanced data rates for Salesforce.com that enabled it to be a one of China’s independent power global evolution); Freemove alliance; company to reckon with. producers, which is involved in the Multimedia Messaging Service (MMS); construction of power plants, repairing Marco De Benedetti; Mature markets; Industry Customer Relationship power equipment and the sale of electricity. Customer Relationship Management Management (CRM), Marketing and Sales Software Between 1997 and 2003, it raised its Reference No. GRS0046 installation capacity from 3,150 Year of Pub. 2004 megawatts to 7,370 megawatts. Singtel’s Growth Strategies Teaching Note Not Available Struc.Assign. Not Available Incorporated in 1992, Singapore Pedagogical Objective Telecommunications Limited (SingTel) has Keywords • To discuss the growth strategies of become Asia’s largest multi-market mobile Datang amidst rising coal prices, operator providing services ranging from Customer Relationship Management (CRM); Global CRM solution service 68 www.ibscdc.org

uncertain tariff reforms and a burgeoning production. Since the early 1990s, the Toyota production system; Technological

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S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S power demand in China. company has witnessed a higher-than-the- innovations; Lean manufacturing; Cost II – Y G E T A R T S industry average growth rate. Alcoa has cutting strategies. Industry Independent Power also forayed into the Latin American and Production the African markets while downsizing its Reference No. GRS0044 operations in North America – its Costco Warehousing Year of Pub. 2004 traditional stronghold. Teaching Note Not Available Corporation: Strategies for Struc.Assign. Not Available Growth Pedagogical Objective Keywords In 2003, Costco was the largest wholesale • To discuss the global growth strategies club operator in the US, ahead of Sam’s Independent Power Producers (IPP) of of Alcoa through acquisitions and Club (Wal-Mart) and BJ’s. Costco had China; Power demand in China; Power effective cost management. earned a distinct identity for offering a generation in China; Chinese energy wide variety of products at deep discount companies; State Electricity Regulatory Industry Metals and Mining prices. The company was able to undercut Commission (SERC); Ownership structure Reference No. GRS0042 its competition in terms of price, by setting of Dangtang; Zhai Ruoyu; Business strategy Year of Pub. 2004 up warehouse style stores without any of Dangtang; Dantang’s expansion plan Teaching Note Not Available deluxe fixtures, sourcing products directly between 1996 and 2002; Expansion Struc.Assign. Not Available from the manufacturers, and selling in bulk. strategy of Dantang; Cost control strategy Keywords of Dangtang; Policies adopted by Chinese government to boost power supply and Alcoa; Aluminium production; Mining; Pedagogical Objectives Vertical integration; Alumina; Bauxite; Paul demand; Reforms in Chinese power industry • To discuss the growth of Costco, and O’Neil; Alain Belda; Alcoa business systems; how various strategies were employed Alcoa in China; Alcoa in Latin America; by the company to create a competitive Alcoa in Russia. AT&T: Gambling on its Growth advantage in the market Strategies • To discuss the nature of competition that In July 2004, American Telephone and Toyota’s Expansion Strategies in Costco faces and what innovative ideas Telegraph Company (AT&T) pulled out Europe it came up with to counter them from its traditional business of providing • To discuss the factors that needs to be Toyota Motor Corporation, the leading local and long distance communication to considered when expanding into Japanese auto manufacturer is expanding its consumers. It decided to shift its focus international markets. to corporate customers. The decision was its presence in the European market. It is one of the many steps taken by the increasing its production facilities in the Industry Warehouse Clubs and telecommunication giant to regain the continent and is manufacturing customised Superstores status of being the number one in the US models like Yaris and Avensis. With its much Reference No. GRS0040 communication industry. renowned manufacturing and management Year of Pub. 2004 processes, the company was able to Teaching Note Not Available Pedagogical Objectives strengthen its base in the European market. Struc.Assign. Not Available With a successful presence in Europe, • To discuss the various strategies adopted Toyota will be able to compensate for the Keywords by AT&T from 1984 to 2004 losses incurred in its domestic market and Wholesale club operation in the US; reduce its dependence on its US business. • To discuss AT&T’s future growth Supermarkets in the US; Discount stores challenges. in the US; Items sold in Costco; Warehouse Pedagogical Objectives club industry in the US; Ancillary industries Industry Telecommunications Services of warehouse clubs in the US; The growth • To discuss the growth strategies of Reference No. GRS0043 of Costco; Membership at Costco; Toyota in Europe in the wake of Year of Pub. 2004 Operating expenses at Costco; currency fluctuations and new market Teaching Note Not Available Merchandising strategy at Costco; Growth needs Struc.Assign. Not Available strategy of Costco; Competitors of Costco; Sam’s Clubs; Wal-Mart. Keywords • To discuss the history of the company in Europe American Telephone and Telegraph Company (AT&T); Regional bell operating • To discuss the localisation strategies of Toyota, and its manufacturing and PKN Orlen: Polish Energy Giant’s companies; Restructuring strategy; Growth Strategies National Cash Register Company; Mergers product innovations, which are in tune with the needs of the market. and acquisitions; Alliances and joint Poland’s largest oil refining and fuel ventures; Growth strategy; Cingular; Voice Industry Automobile retailing company, PKN (Polski Koncern over Internet protocol services; David V Reference No. GRS0041 Naftowy) ORLEN has grown rapidly since Dorman; Wi-fi technology; Year of Pub. 2004 its establishment in 1999. With the aim of Telecommunications industry; AT&T Teaching Note Not Available becoming a major oil company in Europe, DigitalOne; Lucent Technologies. Struc.Assign. Not Available the company has forayed into foreign markets through acquisitions of companies Keywords like Unipetrol and the retail business of Alcoa: The US Aluminum Giant’s Toyota’s European expansion; British Petroleum. Growth Strategies Customisation; Quality control; Localisation; Currency fluctuations; Pedagogical Objective Alcoa, the largest aluminium producer in European auto market; Selection of • To discuss the growth strategies of PKN the world, accounts for 70% of the US and manufacturing locations; Just-in-time; 17% of the world’s total primary aluminium ORLEN in Western and Central Europe’s 69 www.ibscdc.org energy markets through a ‘value based a leader in the global helicopter market. SABMiller’s Inorganic Growth management project’. Strategies Pedagogical Objective Industry Oil and Gas Refining and In the early 21st century, the beer industry Marketing • To discuss the strategies adopted by experienced aggressive consolidation due Reference No. GRS0039 Finmeccanica to become the world’s to a series of mergers and acquisitions Year of Pub. 2004 second-largest helicopter manufacturer between the big breweries. To strengthen Teaching Note Not Available within a short span of 10 years. its position in the fast consolidating Struc.Assign. Not Available industry, South African Breweries (SAB) Industry Aerospace and Defence acquired Miller brewing company, thereby Keywords Reference No. GRS0037 forming the world’s second largest beer Year of Pub. 2004 PKN (Polski Koncern Naftowy) ORLEN; company – SABMiller. Instead of Teaching Note Not Available Unipetrol; Petrochemia Plock SA; Centrala establishing its own brands, SAB had a Struc.Assign. Not Available Produktow Naftowych SA; Nafta Polska; history of acquiring companies and FLOTA Polska; VITAY loyalty card Growth Strategies Growth Strategies Growth Strategies Growth Strategies Growth Strategies Keywords transforming them according to its own scheme; Profit improvement programme; model. With the formation of SABMiller, Finmeccanica; AgustaWestland; Military Value based management; Basell Europe the competition in the US heated up aircraft manufacturers in Europe; Global Holdings BV; MOL; BP Plc. (British between itself and Anheuser-Busch, which helicopter manufacturers; Helicopter Petroleum); Energy companies in Europe; controlled more than half of the US beer markets in the world; Agusta’s centres of Acquisition of energy companies in market. The battle intensified when excellence; Helicopter brands; Europe; Petroleum retailing in Europe. Anheuser-Busch entered the Chinese AgustaWestlandBell; Strategic alliances of market, where SABMiller already had a Finmeccanica; Finmeccanica expanding its presence. market in the Far East; Products of PayPal’s Growth Strategies AgustaWestland; Customers of Pedagogical Objectives Started in 1999, PayPal Incorporated has AgustaWestland; Competitors of revolutionised financial services through Finmeccanica; Lockheed-Martin • To discuss the growth strategies of its on-line Person-to-Person (P2P) money SABMiller and how the company transfer service. By 2004, PayPal had consolidated the acquired companies to become the largest on-line P2P payment Asian Paints India Ltd.: The attain leadership position in most of the service provider with operations in 38 Global Strategies markets that it entered countries and an account holder base of 45 million. Asian Paints India Ltd. has been the • To discuss the entry of SABMiller into market leader in the Indian paint industry China, the second-biggest market after the US, and its competitive strategies Pedagogical Objective for over three decades. Since its establishment in 1942, the Indian paint vis-à-vis Anheuser-Busch. • To discuss the growth strategies of giant has been making considerable efforts Industry Brewers PayPal and its unique business model that towards becoming a global powerhouse. As Reference No. GRS0035 is based on the concept of ‘viral a result of a series of acquisitions beginning Year of Pub. 2004 marketing’. 2002, the company has made its way into Teaching Note Not Available the list of the world’s top ten decorative Industry Electronic Payment Systems Struc.Assign. Not Available paint companies. As of May 2004 the Reference No. GRS0038 company operates in five continents across Keywords Year of Pub. 2004 the world. Teaching Note Not Available SABMiller; South African Breweries; Struc.Assign. Not Available Anheuser-Busch; Interbrew; Harbin; Pedagogical Objectives Competition in China’s beer industry; Keywords • To discuss the factors that drove Asian Mergers and acquisitions; Heineken; Pilsner On-line money transfer; Person-to-Person Paints to target international markets Urquell; Consolidation in beer industry; (P2P) payment service provider; Viral Miller Lite; Budweiser. marketing; PayPal’s business model; • To discuss the strategies adopted by Asian Business models of on-line payment Paints India Ltd. to become a successful multinational companies; Palm Pilots; Types of accounts Growth Strategies of e.Biscom offered by PayPal; Frauds at PayPal; • To discuss how the company, through PayPal’s acquisition of eBay; PayPals its strong supply chain initiatives and With its vision to create a new generation money market account; Billpoint; Federal technology backup, has been able to of telecommunication networks that can Trade Commission. consolidate its international businesses. put anyone and everyone in high-quality interactive video contact with anyone else Industry Paint or with any content on-demand, the Italian Finmeccanica: The Italian Reference No. GRS0036 company today has become the world’s Year of Pub. 2004 most technologically advanced player in Helicopter Manufacturers’ Teaching Note Not Available telecommunications, Internet and on-line Growth Strategies Struc.Assign. Not Available media. However, the path towards this success has not always been smooth. Finmeccanica, the Italian integrated Keywords solutions provider to aerospace and defence sectors, has come a long way since Asian Paints; Acquisitions in emerging Pedagogical Objective the inception of its helicopter division in markets; Ashwin Dani; Colour World; Integration of acquired companies; Supply • To discuss the strategies adopted by 1994. Strategic collaborations, joint e.Biscom to become the second-largest ventures and acquisitions in Europe and chain management; Global expansions; Berger International. telecommunications provider in Italy North America, the biggest helicopter within a short span of five years. markets in the world, have made the group 70 www.ibscdc.org

Industry Fixed-line Voice Services companies. Subsequent to a merger with harbour; Privatisation; National Ports

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S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S Providers Norwest Corporation of Minnesota, Wells Authority; Portnet; Spoornet; Propnet; II – Y G E T A R T S Reference No. GRS0034 Fargo’s product portfolio was broadened Transtel; Transwerk; South African ports Year of Pub. 2004 offering a scope for cross selling. operations; Petronet; Metrorail; Teaching Note Not Available Freightdynamics; Business environment in Struc.Assign. Not Available Pedagogical Objectives South Africa. Keywords • To discuss the efficacy of Wells Fargo’s cross selling strategies e.Biscom SpA; FastWeb; Telecom Itailia; Essel Propack: From Indian to Telecom infrastructure in Italy; Video on- • To discuss the benefits and pitfalls of Transnational demand (video Internet); Asymmetric pursuing such a strategy. digital subscriber line technology; With a 30% share of the 12.8 billion units Broadband telecommunication; Subsidiaries Industry Banking and Financial global tubes market, India-based Essel of e.Biscom; Top telecom companies in Services Propack is the world’s largest laminated Italy; Group structure of e.Biscom; Reference No. GRS0032 tubes manufacturer. Its lamitubes are used FastWeb television service; e.Biscom Year of Pub. 2004 to package toothpastes, cosmetics and operations in Germany. Teaching Note Not Available pharmaceuticals made by FMCG (Fast Struc.Assign. Not Available Moving Consumer Goods) majors like P&G Keywords (Procter & Gamble) and Unilever. Essel’s MphasiS BFL: The Indian IT international expansion was given a thrust Wells Fargo’s cross selling strategies; by two factors – the handing over of the Services Company Growing Gramm-Leach-Bliley Act; Mergers and management in 1995 to a professional through BPO acquisitions; Norwest Corporation; Going management team led by Cyrus Bagwadia, Two negatives make a positive. This for gr-eight; Distribution channels; and its acquisition of Switzerland’s Propack indelible axiom in mathematics seems to Banking and financial services; Wholesale AG. hold good even for businesses. MphasiS BFL banking group; Investment banking; stands as a testimony to this fact. The Treasury management; Strategy; Pedagogical Objectives companies MphasiS and BFL Software Community banking; Home buyer’s • To discuss some of the critical factors Limited were facing troubled times with package; Wells Fargo packs; Business that contributed to Essel’s rapid growth the former lacking credentials as a reliable service packages. in the past and the company’s plans for software service provider and the latter, the future though with credentials, lacking the marketing muscle. The combined company Transnet: South Africa’s Transport • To discuss the challenges and problems launched itself on a differentiated service Monopoly faced by a small domestic player when it platform – integrated solutions – goes international combining its IT services and Business For a decade, South Africa’s Transnet Process Outsourcing (BPO) expertise. enjoyed absolute monopoly over the • To discuss the issues involved in making With its BPO wing, ‘MsourcE’ growing country’s transportation sector. international mergers work in the face strong, MphasiS’ initiative for an Complacency on the part of Transnet’s of cultural and technological differences. management led to an increase in integrated model seems to have reaped the Industry Packaging competition. Meanwhile, the company was full benefits of MsourcE’s operations. Reference No. GRS0030 heading towards a deep financial crisis. The Year of Pub. 2004 Pedagogical Objective new CEO, Maria Ramos, who strongly Teaching Note Not Available believed that one couldn’t have a better Struc.Assign. Not Available • To discuss the growth achieved by tomorrow if one was thinking about MphasiS BFL through an integrated yesterday all the time, considered various Keywords solutions approach which brought options to revive the company. together its IT and BPO expertise. Essel Propack; Subhash Chandra; Ashok Goel; Lamitubes; Overseas acquisitions; Industry Computer Software, Pedagogical Objectives Cyrus Bagwadia; Pechiney; Danville; P&G Consulting and IT Services • To discuss the problems faced by large (Procter & Gamble) packaging; Co- Reference No. GRS0033 monopolies like Transnet extruded tubes. Year of Pub. 2004 Teaching Note Not Available • To analyse the causes of the near Struc.Assign. Not Available financial crisis at Transnet and the probable revival measures. IBM’s Growth Strategies in India Keywords Industry Transport When the homegrown IT vendors were MphasiS BFL; Jaithirth (Jerry) Rao; Reference No. GRS0031 thinking global, IBM India chose to think National Association of Software and Year of Pub. 2004 local for its growth in the country. It Services Companies (NASSCOM); SEI Teaching Note Not Available offered its three successful business product CMM level 4; MsourcE; Integrated Struc.Assign. Not Available lines, ‘strategic outsourcing’, ‘linux’, and software solutions; Virtual tax room; Wipro ‘technology on-demand’ to the targeted Spectramind; Infosys Progeon; Indian IT Keywords customers, such as the state governments services companies. and the Small and Medium-sized Enterprises Transnet Limited; South African transport (SMEs). An outsourcing deal with Bharti monopoly; African National Congress; Televentures and acquisition of Daksh Business strategy; Parastatals; public eServices proved IBM India’s continued Wells Fargo’s Cross Selling corporations; Maria Ramos; Competition commitment towards the Indian market landscape of South Africa’s transport Strategies and its steady progress towards its targeted industry; Turnaround strategy; South $1 billion in revenue. Wells Fargo, established in 1852, is one of African railways; airways; road transport; the US’ largest financial services 71 www.ibscdc.org Pedagogical Objective the $1 billion mark in global sales – a target (SA Group); Civil Aviation Administration that it had set for itself in 1993. Ranbaxy of China (CAAC); China Southern Air • To discuss the focussed growth strategy is among the top ten generics companies Holding Company (CSAHC); Commercial of IBM in India through its e- in the world with a strong presence in bulk airlines in China; Restructuring of the governance and SME initiatives. drugs and branded formulations. Chinese airline industry; Subsidiaries of Industry Information Technology CSA; Civil Aviation in China; Global civil Services Pedagogical Objectives aviation industry; Air Transport world Reference No. GRS0029 magazine; Growth of the Chinese civil • To discuss the growth strategies of Year of Pub. 2004 aviation industry; China’s entry into the Ranbaxy that catapulted it to a Teaching Note Not Available World Trade Organisation (WTO); prominent position on the global Struc.Assign. Not Available Aerospace Industry Awards. pharmaceutical map Keywords • To discuss the company’s initiative to IBM; India; IBM India; IBM India research sustain its leadership in the light of the Esquel’s Vertical Integration Growth Strategies Growth Strategies Growth Strategies Growth Strategies Growth Strategies laboratory; Strategic outsourcing; Linux; product patents being recognised from Technology on-demand; Small and 2005 onwards according to the World The Esquel Group, based at Hong Kong, Medium-sized Enterprises (SMEs); IBM Trade Organisation regulations. has been a cotton textile and apparel Global Financing Division; e-governance; manufacturer since 1978. In an industry, ‘SAN made simple’; IBM express; India Industry Pharmaceuticals Manufacturers where its competitors increasingly rely on smart centre. Reference No. GRS0027 outsourcing and specialisation, the Year of Pub. 2004 company does everything in-house, like Teaching Note Not Available cotton farming, spinning, weaving, dyeing, Struc.Assign. Not Available knitting and distribution. Vertical Chinadotcom’s Growth integration of its activities provided Esquel Keywords Strategies with more control over the quality of its Ranbaxy Laboratories Limited; Global products, reduced lead times and enabled it Chinadotcom, which was started in the late generics market; Active pharmaceutical to attract high profile names in the fashion 1990s, had been the pioneer in China’s ingredients; Ranbaxy Nigeria Limited; and garment industry. Internet business. It was the first Chinese Abbreviated New Drug Application portal to be listed on Nasdaq. However, with (ANDA); Novel Drug Delivery System the global slowdown of the Internet industry Pedagogical Objectives (NDDS); New Drug Discovery Research in 2001, Chinadotcom’s revenues declined (NDDR); Controlled drug release • To discuss the possible merits and rapidly. This prompted the company to shift technology; Proprietary prescription demerits that could be derived from its focus from being an Internet portal to products; Product patents in India after vertical integration software development and outsourcing 2005; Indian Patents Act 1970; Branded businesses. In 2003, Chinadotcom clocked • To discuss the opportunities and generics market; National Institute of a profit of $16 million against a loss of $18 challenges that textile and clothing Pharmaceutical Education and Research million in the previous year. manufacturers in the developing (India); Once-a-day cirpofloxacin; General countries might face if textile quotas are Agreement on Tariffs and Trade (GATT) Pedagogical Objective eliminated. • To discuss how Chinadotcom successfully Industry Apparel Reference No. GRS0025 transformed itself from a web portal to Growth Strategies of China Year of Pub. 2004 an enterprise software provider and Southern Airlines mobile applications company. Teaching Note Not Available In 2001, China Southern Airlines (CSA) Struc.Assign. Not Available Industry Information Technology became the fifth-largest airline in Asia and Keywords Services twenty-first in the world. CSA, which was Reference No. GRS0028 started under the direct supervision of the Esquel’s vertical integration; Backward and Year of Pub. 2004 Civil Aviation Administration of China, forward integration; Low-cost advantage; Teaching Note Not Available along with its subsidiaries, became the Electronic data interchange; Long staple Struc.Assign. Not Available largest airline in China in 2003, carrying cotton; spinning mills; Supply chain Keywords 20 million passengers. management; China’s textile industry; Distribution and logistics; Multifibre Internet business in China; The dotcom Pedagogical Objective agreement; Merchandising; sweatshops; bubble burst; Enterprise software providers General Agreement on Tariffs and Trade in China; Mobile applications companies • To discuss how the corporate strategies (GATT); Istanbul declaration on in China; Enterprise Resources Planning of CSA helped it to conquer new heights elimination of quotas; Textile quotas; (ERP); Customer Relationship in the domestic and international Marjorie Yang; Nike; Tommy Hilfiger; Management (CRM); Supply Chain aviation business despite numerous Marks and Spencer; Hugo Boss. Management (SCM); Growth of Chinese challenges since the late 1990s. software companies; Hi-tech Industry Airlines manufacturing sector in China; Major Bose Corporation: Riding the portals in China before the dotcom burst; Reference No. GRS0026 Survival tactics of major Chinese portals Year of Pub. 2004 Sound Wave in late 1990s; Acquisitions of Chinadotcom. Teaching Note Not Available Struc.Assign. Not Available Founded in 1964 by Amar Gopal Bose, Bose Corporation was the market leader in high- Keywords end audio equipment. Focusing on innovation and excellence in quality, the Growth Strategies of Ranbaxy China southern Airlines group (CSA firm was able to come up with products Group); Baiyun International Airport; Pearl Ranbaxy Laboratories Limited, India’s that commanded a premium. For a long largest pharmaceutical company, reached River Delta region; Southern Airlines Group 72 www.ibscdc.org

time, Bose had enjoyed customer loyalty Keywords Pedagogical Objective

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S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S and trust in this niche segment in which II – Y G E T A R T S they operated. However, in recent years Haier; Total quality control; Merloni; • To discuss Bharat Forge’s operations and the company has been facing a number of Sanyo; SAMPO; Samsung; Mitsubishi; the strategies adopted by the company challenges to maintain its position in the Menghetti Spa; General Electric (GE); to emerge as a cost-effective, globally market. Whirlpool; Wal-Mart; Sears; Zhang competitive player with an established Ruimin; World Brand Laboratory; Haier quality process. Europe. Pedagogical Objectives Industry Automobile Reference No. GRS0021 • To discuss the company’s philosophy Year of Pub. 2004 of single-minded focus on research and La-Z-Boy: Changing Style Teaching Note Not Available better products Struc.Assign. Not Available Since 2003, La-Z-Boy, the American icon • To discuss how over the years, of comfort furniture, best known for its Keywords technological excellence and patents recliners, is witnessing a stagnant growth. obtained have been a driving force behind The growth of the upholstery segment has Indian automotive industry; Original Bose corporation’s success become stagnant and the casegoods equipment manufacturers; Cost competitive; Bharat Forge Limited; Auto • To discuss whether Bose can retain its segment is reporting declining sales. Besides the US recession, the company has been component industry; Debt restructuring position in the market by still focusing exercise; Mergers and acquisitions; on technology or does it have to change facing tough competition from its global competitors, and finding it difficult to keep Passenger car market; Steel forgings; its approach to focus more on marketing Business strategy; Diversification; Kalyani than research. up with the consumer preferences of its younger generation customers. To stay Utilities Private Limited; Crankshafts; Industry Audio Equipment tuned with the changing times, the Auto ancillaries; Outsourcing hub. Reference No. GRS0024 company decided to launch a new product Year of Pub. 2004 range with competitive pricing and designs. Teaching Note Not Available Irkut’s Expansion Strategy Struc.Assign. Not Available Pedagogical Objective With the collapse of the erstwhile Soviet Keywords • To discuss the product modernisation Union in 1991, IRKUT Corporation Amar Gopal Bose; High-end audio strategy adopted by La-Z-Boy to (IRKUT), which was established in the equipment; Premium prices; New enhance its growth and gain sustainable 1930s to manufacture military aircrafts in technologies through research; Bose vs competitive advantage over its Russia was witnessing formidable problems. Harman; Research focus; Marketing focus. competitors. IRKUT was privatised in 1992 and with the decline of defence expenditure of the Industry Home Furniture Russian government, the company decided Reference No. GRS0022 to focus on manufacturing commercial Haier: Developing a Global Year of Pub. 2004 aircrafts. To raise the necessary funds Brand Teaching Note Not Available required for its new venture, IRKUT Struc.Assign. Not Available decided to launch its Initial Public Offering Haier started its operations in China in (IPO) by the end of March 2004, the first 1984 as a refrigerator manufacturer and Keywords ever IPO in the defence industry of Russia. by 1991, it was a popular brand in China La-Z-Boy; Todd Oldham; Recliners; with various products in its kitty. It soon Casegoods; Upholstery segment; Floral City Pedagogical Objective forayed into the production of other Furniture; Edward M Knabush (Edward) and domestic appliances like microwave ovens, Edwin J Shoemaker; Kurt L Darrow; La-Z- • To discuss the expansion strategies washing machines and air conditioners. In Boy Furniture Galleries; La-Z-Boy adopted by IRKUT to transform itself the early 1990s, the company started Residential; Oasis; Cocooning chairs; Arc; from a state controlled military aircraft exporting its products to the American, Snap sofa; Hi-lo matic. manufacturer to a profitable commercial European and Japanese markets. To create producer. its own brand in the foreign markets, Haier established overseas manufacturing units Industry Aircraft Manufacturing and also started employing the local Bharat Forge: MNC in the Making Reference No. GRS0020 Year of Pub. 2004 people. By 2002, Haier had become the Bharat Forge is a leading Indian forgings Teaching Note Not Available fifth-largest manufacturer of consumer manufacturer that supplies axles, forgings, Struc.Assign. Not Available appliances in the world and the largest in and other auto components to global the global refrigerator business. original equipment manufacturers. It Keywords started in 1961 and became the second Pedagogical Objective largest forgings manufacturer in the world IRKUT Corporation; Irkutsk Aviation by 2003 with the acquisition of Carl Dan Plant; Alexey Fedorov; Su-30 and Su-27; • To discuss Haier’s efforts to build a global Peddinghaus, a German forging major. In Irkutsk Aviation Industrial Association; brand and dispel the myth that Chinese 2003, the company was chosen by Ford Kaskol Group; Multipurpose unmanned products are generally of low-quality and Motor Company and General Motors to aerial system; Multirole transport airplane; that Chinese companies earn market supply components for their ‘global BE-200; United Aircraft Manufacturing share only through cheap products. passenger car programme’. Having Holding; Yakovlev; Hawkins and Powers Industry Home Appliances undergone comprehensive financial Aviation; Yak-130; European Aeronautics Reference No. GRS0023 restructuring over a five-year period, Defence and Space Company; Rolls Royce. Year of Pub. 2004 between 1998 and 2002, the company has Teaching Note Not Available been steadily expanding its business Struc.Assign. Not Available interests in Europe, North America, and China. 73 www.ibscdc.org Huawei Technologies: Growth Mamonde; Laneige; Lope; SulWhaSoo; Industry Not Applicable Strategies Castelbajac; Fast and focus strategy; Kyung Reference No. GRS0016 Bae Seo; AmorePacific mega brands; Year of Pub. 2004 The height of a tree depends on the depth AmorePacific Cosmetics Shenyang Co. Teaching Note Not Available of the roots. Huawei Technologies, having Ltd.; Pacific Europe; Pacific Research and Struc.Assign. Not Available established itself on its home turf China, Development Centre decided to go global. Though competing Keywords on price helped Huawei in developing Tata Group; Tata Motors; Tisco; Tata countries, the game seemed different in AirAsia: Growth Strategies Consultancy Services (TCS); Tata tea; the developed countries. Tetley; Indian hotels; Ratan Tata; Even eagles need a push. Tony Fernandez Globalisation; MG Rover; Daewoo Pedagogical Objective breathed new life into the loss making Commercial Vehicle Company; Tata AirAsia converting it into a profitable low enterprise; Tata power; Tata chemicals; • To discuss Huawei’s strong hold on the cost carrier of Malaysia. Starting its Taj. Chinese market and its subsequent entry Growth Strategies Growth Strategies Growth Strategies Growth Strategies Growth Strategies operations as a no-frills airline in 2002, into the Asian, European, African and AirAsia took off to new heights, American markets. encompassing domestic and international Sun Pharmaceuticals in 2004 Industry Telecommunications routes. Equipment Indian pharmaceutical companies, with Reference No. GRS0019 Pedagogical Objective their generic drugs have proved their Year of Pub. 2004 capabilities in the world’s largest and most • To discuss the strategies followed by Teaching Note Not Available lucrative markets – the US and Europe. AirAsia to achieve an impressive growth Struc.Assign. Not Available These companies with their strong reverse within a short span of time. engineering skills have gained a foothold Keywords Industry Airlines in these key markets. Indian top-tier Huawei Technologies; China; Reference No. GRS0017 companies such as Dr. Reddy’s, Ranbaxy, Telecommunications equipment; Peoples Year of Pub. 2004 Cipla, Wockhardt and Sun Pharmaceutical Liberation Army; Huawei in Asia; Huawei Teaching Note Not Available Industries Ltd., (SPIL) were the leading in Africa; Berlikomm; Bashkir Electronic Struc.Assign. Not Available players in these markets. SPIL was one of Telephone Association (BETO); IBM; the leading companies in the Indian Going global; Code Division Multiple Keywords pharmaceutical industry. It was also the Access (CDMA); Cisco; 3G; TELLIN WIN AirAsia; Low cost carriers; No-frills airlines; first Indian pharmaceutical company to system; Global System for mobile Tony Fernandez; DRB-Hicom; TuneAir focus and sell drugs that treated life style communication (GSM). Sdn Bhd; Boeing 737-300; GE Engineering segments. It reached a leadership position Services; Singapore Airlines; Kuala Lumpur in each of the therapeutic areas it operated International Airport; SMS; Geneva in. The company had used both organic optimum airline performance software; and inorganic growth strategies to grow AmorePacific: Creating Global domestically and internationally. Brands Shin Corp; Sing Tel; Changi Airport. By 2003, due to the limited growth Pedagogical Objectives potential of its domestic market, The Tata Group: Going Global • To discuss the growth strategies that SPIL AmorePacific, the largest cosmetic adopted to become one of the leading manufacturer of South Korea, was banking Among the most respected Indian business pharmaceutical companies in India heavily on its expansion in the conglomerates, the Tata Group represents international markets. After establishing the pride and excellence of Indian industry. • To understand how SPIL wanted to itself in the huge Chinese market, the Established in 1868 as a textile mill, the reposition itself in the post 2005 product company planned to enter the highly Tata Group has the distinction of founding patent regime. competitive French market with its the first steel mill, first luxury hotel and Industry Pharmaceuticals Manufacturers perfume brand ‘Lolita Lempicka’. The the first airlines service in India. Ever since Reference No. GRS0015 success of Lolita Lempicka in France gave its founding, the group was successfully Year of Pub. 2004 the company enough impetus to enter into managed by the heirs of the Tata family. Teaching Note Not Available the lucrative markets of Europe and the However, in spite of the group’s 100-year Struc.Assign. Not Available US. history and a strong turnover of INR 52,000 crore in 2003, the group had a Keywords Pedagogical Objective limited global presence. Particularly, the present chairman, Ratan Tata’s dream of Sun Pharmaceuticals India Limited; Growth • To discuss the innovative strategy transforming the group into a global strategies; Dr Reddy’s Laboratories implemented by AmorePacific to powerhouse was seen by many as far- Limited; Ranbaxy Laboratories; Indian establish its brand in the global cosmetic fetched. pharmaceutical industry; Research and industry. development; Generics business; Sun Pharma Advanced Research Center; Pedagogical Objectives Industry Personal Care Products Mergers and acquisitions; Cipla Limited; Reference No. GRS0018 • To discuss the Tata Group’s efforts to United States Food and Drug Year of Pub. 2004 make its individual businesses globally Administration; United Kingdom Teaching Note Not Available competitive Medicines Control Agency; Australia Struc.Assign. Not Available Therapeutic Goods Administration; Caraco • To analyse the success of the Tata Keywords Pharmaceutical Laboratories Limited; New Group’s globalisation endeavours in the chemical entities. AmorePacific; Lolita Lempicka; Pacific light of competition from foreign Chemical Industries Corporation; AMORE; companies. 74 www.ibscdc.org

Shanghai Baosteel Group were in Hong Kong and the People’s Keywords

S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S

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S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S Corporation Republic of China (PRC) was its major customer. Despite hurdles like the Asian Chinadotcom; Restructuring strategy; Shanghai Baosteel Group Corporation or financial crisis in 1997, a ban by the Dotcom bust; Mergers and acquisitions; Baosteel was set up by the Chinese western countries on imports of food America On-line (AOL); Chinadotcom government near the Shanghai port in products of animal origin from China and Corporation; Xinhua News Agency; Asia 1978, when Deng Xiaoping initiated the global economic slowdown, Pacific Andes Internet industry; Internet service transformation of the Chinese economy surged forward successfully to end fiscal provider; Software development; Praxa from a rigid centrally planned economy to 2003 at HK$2,141 million with a net profit Limited; Three-dimensional business a market-oriented economy. Besides iron of HK$73.3 million. It also planned to model; Business outsoucing; e-business and steel, the group also forayed into trade, expand in other developing countries to strategies and solutions; Taiwan; China and finance, information, engineering increase its global market share and gain Hong Kong. technology, transport, chemicals, real sustainable competitive advantage through estate and services. Baosteel had 45 wholly synergy. owned subsidiaries with its markets spread Merck in 2003 over Brazil, France, Germany, Hong Kong, Pedagogical Objective Japan, Russia, Singapore, South Africa and In 1990s, Merck had a double-digit profit the US. By 1999, Baosteel had become • To discuss the growth strategies of growth rate. Since 2001 its growth fell to China’s largest steel manufacturer. With Pacific Andes despite several hurdles and single-digit as competitors merged and China’s accession to the World Trade its plans to increase its global market forged ahead. Analysts have predicted an Organisation (WTO) in 2001 and the share. earnings growth rate of just 2% for Merck subsequent opening up of the Chinese steel against 8% to 10% for the industry between Industry Frozen and Canned Food industry to foreign players, Baosteel had 2001 and 2006. In the face of a weak R&D Reference No. GRS0013 to face tough competition in the domestic pipeline and the loss of patent protection Year of Pub. 2004 as well as foreign markets. Despite of several key products, Merck’s pipeline Teaching Note Not Available competition, by 2003, Baosteel increased for new drugs is poor when compared with Struc.Assign. Not Available its production capacity to 20 million tons its other counterparts. In this scenario will with total employee strength of 100,000. Keywords the company consider merging with other However, Baosteel was soon witnessing companies to improve its R&D pipeline, several problems like increased shipping Pacific Andes International Holdings save costs and boost growth and thereby rates and rises in the price of iron ore in Limited; Growth strategies of Pacific win the trust of its investors? China, due to excess demand and growing Andes; National Fish and Seafood Inc.; domestic competition. Matlaw’s frozen seafood; Processed fish Pedagogical Objectives and vegetable products; Market analysis of Pacific Andes; Pelican food; Just in time; • To highlight Merck’s future R&D Pedagogical Objectives Alaskan Pollock; Central Science prospects Laboratory; Hazard Analysis and Critical • To analyse the challenges faced by a • To discuss the strategic options for the Control Point (HACCP); Logistics Hong typical government-owned organisation company to regain its lost momentum. like Baosteel, when a closed economy Kong initiative; Seafood in China; China like China is opened to foreign players International Fisheries Hong Kong Industry Pharmaceuticals Manufacturers Limited; X.400 mail system. Reference No. GRS0011 • To discuss the competitive strategies of Year of Pub. 2004 Baosteel in the light of changes in the Teaching Note Not Available business environment. Chinadotcom after the Dotcom Struc.Assign. Not Available Industry Steel Bust Keywords Reference No. GRS0014 Year of Pub. 2004 Chinadotcom is a Chinese/Pan Asian Merck & Co. Inc.; Research and Teaching Note Not Available Internet company. After the dotcom bust development; Blockbusters; United States Struc.Assign. Not Available in 2000, it made progress in its strategic pharmaceutical industry; GlaxoSmithKline re-positioning and continued to push its Novartis Pfizer Inc; Vioxx Cozaar Hyzaar; Keywords evolution towards a broader base of higher Big pharma companies; Mergers and Shanghai; Baosteel; Nippon; Arcelor; margin products and services. acquisitions; New molecular entities; United Global steel industry; China; Nucor; Chinadotcom viewed China as a promising States Food and Drug Administration; New Companhia Vale do Rio Doce (CVRD); Rio base for lower-cost development of drug application; Generic competition; Tinto; Posco; Shougang Group; Gerdau; software products for distribution, Schering-Plough; Zocor Zetia. Iron; Dofasco; Mitsui OSK Lines Ltd. implementation and integration by its own (MOL). operations across its markets internationally. Novartis: From Barriers to Blockbusters Pacific Andes International Pedagogical Objective The 1996 merger of Sandoz Ltd. and Ciba- (Holdings) Limited: Growth • To understand the survival strategy of Geigy Ltd. to form Novartis AG, kicked Chinadotcom during the dotcom crash Strategies off a new era in the history of the global and the repositioning strategies that the pharmaceutical industry. The merger made Pacific Andes International Holdings company adopted following the crash. Limited (Pacific Andes), which started in Novartis Europe’s largest and the world’s 1986 with an aim to become a fully Industry Computer Software second largest pharmaceutical company. integrated company in the global seafood Reference No. GRS0012 However, Novartis’ initial plans to focus and vegetable business, achieved Year of Pub. 2004 on genetic engineering and agribusiness considerable growth within a short span of Teaching Note Not Available backfired in 1998 owing to negative results its inception. The company’s headquarters Struc.Assign. Not Available from its R&D testing. As a result, the 75 www.ibscdc.org company then shifted its focus to health Keywords vitamins, in 1997. Although the company care – a more lucrative market. But Novartis achieved increased sales and profit, in 2002 could not gain a foothold in the US – the Johnson&Johnson; Johnson’s baby powder; it witnessed losses in its nutritional largest drug market – due to weak marketing Centocor; Monoclonal Anitbody supplements business. Jan Bennink, the new and sales force. After Daniel Vasella, CEO Technology (Mab); Cypher Sirolimus-eluting chief executive officer, has embarked upon of Novartis, revamped the company to give stents; Endgames curve; Natrecor; Stents; a massive restructuring plan to improve the it a new organisational structure and Procrit; Tylenol; McNeil Laboratories; Alza company’s performance. direction, the company came to be seen as Corporation; Scios Incorporated; Cordis Corporation; Pentrax. one among the big five pharmaceutical Pedagogical Objectives companies. • To discuss the reasons behind the losses Pedagogical Objectives Growth Strategies of Best Buy in the nutritional supplements business of Royal Numico • To understand Novartis’ growth strategies Best Buy was founded by Richard M. Schulze over the years and how the company as an audio retail store in 1966 and later on • To discuss Jan Bennink’s strategies to Growth Strategies Growth Strategies Growth Strategies Growth Strategies Growth Strategies overcame hurdles in its way moved into consumer electronics. Best Buy’s improve Royal Numico’s performance. vision was to ‘make life fun and easy’ for its Industry Canned and Frozen Foods • To understand the organisational changes customers by providing comprehensive that Daniel Vasella brought in to place Reference No. GRS0007 solutions to their entertainment and Year of Pub. 2004 the company in the pharmaceutical technology needs. In its 37-years of industry’s big league. Teaching Note Not Available existence, the company faced numerous Struc.Assign. Not Available Industry Pharmaceuticals Manufacturers challenges but managed to bounce back from Keywords Reference No. GRS0010 every difficult situation. Throughout, the corner stone of the company’s strategy had Year of Pub. 2004 Royal Numico; Jan Bennink; Nutricia NV; been its various ‘Concept Stores’, Teaching Note Not Available Hans van der Wielen; Baby food business of merchandising mix and technology Struc.Assign. Not Available Numico; Clinical nutrition of Numico; initiatives that improved the shopping Vitamins; General Nutrition Company Keywords experience for its customers and (GNC); Ephedra; Acquisitions of Numico; differentiated the company from its main Novartis; Daniel Vasella; Gleevec or Glivec; Divestment strategy of Numico; Vitamex; competitor, Circuit City. In 2003, Best Buy Sandoz; Ciba-Geigy; Genetic engineering; Rexall Sundown; Unicity; Enrich was the No.1 retailer of consumer Focus on health care; Reorganisation at International. electronics in the US and was ranked 91st on Novartis; Life sciences strategy; Direct to the Fortune 500 list with revenues of $20.9 customer marketing; US drug market; billion. Troubled agribusiness. AngloGold’s Growth Strategies Pedagogical Objectives AngloGold Limited (AngloGold), with its J&J: Growth Strategies in the 21st • To highlight the growth of Best Buy since headquarters at Johannesburg, South Africa, Century its inception in 1966 was formed in 1998 through the consolidation of the African gold mines of In the late 1990s, Johnson & Johnson (J&J), • To discuss how Best Buy had successfully Anglo American Plc. In 2000, AngloGold well-known mainly for its consumer products leveraged on its differentiating strategies forayed into marketing of its gold products like Johnson’s baby products, started to become the No.1 consumer electronics like jewellery, by starting its on-line portal, focusing more on its pharmaceutical and retailer in the US. GoldAvenue. Throughout its short history, AngloGold’s rapid growth has been medical devices segments. J&J grew rapidly Industry Consumer Electronics Retail characterised by mergers and acquisitions. in these two segments, enhancing its product Reference No. GRS0008 With its announcement to merge with the portfolio through mergers and acquisitions. Year of Pub. 2004 st Ghana-based Ashanti Goldfields Company By the turn of the 21 century, J&J had Teaching Note Not Available Ltd in 2003, AngloGold is poised to become over 200 operating subsidiaries spread over Struc.Assign. Not Available 54 countries. Though the sales figures for number one in the global gold mining 2003 looked impressive at $41,862 million, Keywords industry. investors sensed a tough future for the Best Buy; Electronics retailing in the US; company as the company did not have a Consumer electronics and appliances; Circuit Pedagogical Objective new product to offer till 2006. City; Sears; Digital electronics; Andersen • To discuss the growth strategies of Consulting; Entertainment software; Data AngloGold and how it plans to become Pedagogical Objectives mining; Data warehousing; Concept stores the largest gold mining company in the • To discuss J&J’s inorganic growth in the of Best Buy; Rhapsody; Brad Anderson; world. 21st century Richard Schulze; Superstores. Industry Metals and Mining • To analyse J&J’s initiatives to tide over Reference No. GRS0006 the impending difficulties and understand Year of Pub. 2004 Royal Numico and Jan Bennink how J&J geared up to streamline its drug Teaching Note Not Available development activities and generated By 2003, Royal Numico had its presence in Struc.Assign. Not Available funds through cost-cutting measures. more than 100 countries after successfully Keywords managing its baby food and clinical nutrition Industry Pharmaceuticals Manufacturers business for over a century. Throughout its AngloGold; Anglo American Corporation; Reference No. GRS0009 history, its strategy included acquisitions of Sir Ernest Oppenheimer; Minorco; Bobby Year of Pub. 2004 related companies to achieve a profitable Godsell; Mining value chain; GoldAvenue; Teaching Note Not Available international growth. To further leverage OroAfrica; Acacia Resources; Normandy; Struc.Assign. Not Available its nutritional supplements business, the Newmont; Ashanti goldfields; De Beers; company forayed into a new segment, Obuasi; Vaal Reefs. 76 www.ibscdc.org

Amazon.Com: From Books to Coles Myer; MetCash; Ezy banking; Project the three most promising insurance markets

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S T R A T E G Y – II – Y G E T A R T S S T R A T E G Y – II – Y G E T A R T S Outsourcing Services refresh; Electronic data interchange at in Asia-China, Japan and India. Woolworths; Woolworths’ supply chain From the era of the Internet boom, when it management; Homeshop.com; Greengrocer. Pedagogical Objective was hailed as the ambassador of the New com; Worldwide retail exchange; Roger Economy, to the final shakeout, Amazon Corbett; Aldi in Australia; Petrol retailing • To discuss the strategies adopted by AIG has come a long way. Many people had at Woolworths. to become a major player in the Asian predicted its collapse, but today, several big insurance industry. retailers are seeking its expertise in Industry Banking and Financial Services e-commerce. Growth Strategies of Banyan Tree Reference No. GRS0002 Year of Pub. 2004 Pedagogical Objectives As most of his family were running businesses Teaching Note Not Available that were getting hit by low cost competitors Struc.Assign. Not Available • To discuss the growth strategies of from other Asian countries, Ho Kwon Ping Amazon from the days of book retailing (Ho) decided to venture into tropical luxury Keywords to emerging as a service provider to resorts to create a brand for himself. He AIG; AIG in Asia; History of AIG; AIG’s retailers started Banyan Tree, with a solitary hotel links with Asia; Insurance market in China; resort in 1995 in Thailand. It was the first • To discuss whether Amazon should shed Insurance market in Japan; Insurance to introduce the concepts of pool villas and its core business of retailing and emerge market in India; Current regulations for tropical spas to the world. Banyan Tree as a pure service provider. insurance industry in China; Current soon expanded into a luxury-resort chain regulations for insurance industry in Japan; Industry On-line Retailing with its hotels, resorts, spas and retailing Major players in Indian insurance market; Reference No. GRS0005 galleries spread over Singapore, Bangkok, Financial statements of AIG; Insurance Year of Pub. 2004 Shanghai, Bangalore, Sydney and Seychelles. premium as percentage of GDP (Gross Teaching Note Available With its diversified operations, Banyan Tree Domestic Product) in China; Critical success Struc.Assign. Available became the only Asian company to feature factors for insurance in China; Critical in the book ‘Uncommon Practices’ Keywords success factors for insurance in Japan; published by ‘Financial Times Prentice Hall’ Critical success factors for insurance in India. On-line book retailing; Amazon.com; Jeff along with other world famous corporates Bezos; Amazon outsourcing services; like Virgin, Harley-Davidson, Manchester Diversification of Amazon; Amazon’s United and others. It was also named the associate programmes; Web services; Barnes ‘Best Asia-Pacific Resort Hotel’ for the Sam Adams’ Repositioning & Noble; Borders.com; ZShops; Amazon second time in the ‘Business Traveller Asia- Strategies distribution centres; Toys ‘R’ Us; Amazon’s Pacific Awards’. profits; One-click system. Sam Adams was the popular craft beer brewed by the Boston Beer Company. The Pedagogical Objectives company commanded leadership in the • To highlight the growth of Banyan Tree segment and was seen as the native drink by Woolworths’ Growth Strategies the beer-loving Americans. The success of • To discuss how Banyan Tree was able to Sam Adams not only changed the Woolworths supermarket, started in Sydney differentiate its hotels and resorts from in 1924, emerged as Australia’s number 1 perceptions of Americans, who considered its competitors by leveraging on its native craft-beer as unsophisticated, but also food retailer by early 1990s. The company theme of Asian resorts. survived a scare when its unprofitable posed a threat to reigning imported beers. ventures almost led to bankruptcy. Its Industry Hospitality However, after 1997 the brand could not innovative initiatives that emphasised better Reference No. GRS0003 consolidate its presence, as explained by its shopping experience and low prices helped Year of Pub. 2004 oscillating sales, which were hovering around the company to tide over the crisis and Teaching Note Available the $200 million mark. Analysts opined become a Fortune 500 company. Struc.Assign. Not Available that Sam Adams had failed in its appeal to the young Americans. Keywords Pedagogical Objectives Banyan Tree; Pool villas; Spas; Ho Kwon Pedagogical Objective • To understand Woolworths’ growth Ping; Uncommon practices; Wah Chang • To discuss the efforts of chairman C. Jim strategies that helped it to transform from Group; Conde Nast Traveller; Tropical being a ‘follower that was system driven Koch to reposition Sam Adams as a beer garden spas; Retailing galleries; Angsana; brand relevant to the newer generation. and not customer driven’ in the 1980s to Colours of Angsana; Tropical luxury resorts; a ‘company that others try to emulate’ Business Traveller Asia-Pacific Awards; Industry Brewers • To discuss Woolworths’ supply chain Asian hospitality industry; Eastern Reference No. GRS0001 initiatives and the novel services, which therapies. Year of Pub. 2003 reduced operating costs, and made Teaching Note Not Available shopping at Woolworths more Struc.Assign. Not Available convenient and exciting to its customers. AIG: Strengthening its Asian Links Keywords Industry Not Applicable AIG, the world’s leading insurance and Boston Beer Company; Sam Adams; C Jim Reference No. GRS0004 financial services group, has always been Koch; Craft beer; Craft beer segment in the Year of Pub. 2004 bullish about its Asian operations. Although US; Imported beer; Beers in the US; Teaching Note Not Available it entered from Asia in the late 1920s, Repositioning; Light beer; Strong beer; Struc.Assign. Not Available various adverse socio-political factors Promotion strategies; Advertisements; Keywords interrupted its Asian operations from time Competitors; Heineken; Corona. to time. Since the late 1960s, AIG, under its Woolworths’ cost control strategies; Big W Chairman Maurice R Greenberg, has been stores; ‘The fresh food people’ initiative; making efforts to become a major player in 77 www.ibscdc.org