‘Arrow and the apparel industry: Solved Case Study Arrow and the apparel industry Q1. Why did Arvind Mills choose globalization as the major route to achieve growth when the domestic market was huge? Ans. : The reasons of choosing global market by Arvind Mills are: 1.
Market seeking motives, such as exclusiveness of product and service with high productivity, stringent in-line quality control and an encouraging manufacturing atmosphere. 2.
Economic motives, such as profit making by implementing cutting edge technologies to achieve economies of scale and spreading R;D costs. etc. 3. Strategic motives, such as buying-up of sick units, departing worldwide and gaining German and US brand names. Q2. How does lifting of ‘Country-wise quota regime’ help Arvind Mills? Ans. : The lifting of ‘Country-wise quota regime’ surged a demand for high quality garments from India; while Arvind brands crossed over Rs. 60 crore in the year 2002 and planned to setup two more high tech export-oriented factories in India.
And now, Arvind has the largest network of 64 outlets with 30 retail chains and 200 multi-brand outlets all over India. The current turnover of Arvind Brand is about Rs. 85 crore, which aimed to reach Rs. 100 crore with 1200-3000 outlets across 480-800 towns. Q3. What lessons can other Indian businesses learn from the experience of Arvind Mills? Ans. : Arvind Mills is one of the trademarks of Indian market, which executed diverse patterns of business. Arvind brand extended the international brands in small towns of India.
Of course, many other business brands in India now follows Arvind brand. The other Indian businesses should learn a lot from Arvind Mills: international outset of market; Multi-regional integration approach; union and attainment, strategic alliances, international delegates, global network formation; changes in internal organization, etc. INTERNATIONAL BUSINESS Case 1:-BPO – BANE OR BOON? Which of the theories of international trade can help Indian services providersgain competitive edge over their competitors?
The theory of free markets can help indian services providers gain competitive edgeover their compititors because India has got an edge over other countries at this pointof time but other nations may try to make their products look cheaper bymanipulating their currencies or by imposing restrictions on imported serviceespecially from india We need to do something like this – do something better than your competitors (either make a better product, market it better, service it better, price it cheaper, whatever). Pick up some Indian services providers.
With the help of Michael Porter’sdiamond, analyze their strengths and weaknesses as active players in BPO. WNS, which was established in 1996 and transformed from a captive provider to athird-party provider in 2002, announced in December 2004 a new organizationalstructure focused on its vertical business units. The change to the vertical focus wasmade to sharpen the company’s domain expertise; develop new services andtechnologies; create superior career paths for talented managers; continue toemphasize entrepreneurship and empowerment, and win and retain business bydelivering exceptional value to its clients.
The company’s business units are organized into the following vertical sectors: travelservices; insurance services; financial services; enterprise services (including financialand accounting services, human resource accounting and health care processing),and knowledge services (including primary and secondary research, and analytics). Each unit is managed by a chief executive officer and has its own operating and salesteams, and draws upon support and “enabling” services across the company. “We have seen numerous tangible benefits to our decision in 2004 to more sharply focus our vertical structure,” stated Neeraj Bhargava, Group CEO. Specifically, wehave strengthened our leadership role in the BPO industry; continued to distinguishWNS from our competitors through our differentiated strategy; maintained our recordof creating value for our key constituencies, especially customers and employees, and broadened our global perspective, thus enhancing our ability to help companies meettheir business challenges. “These developments reflect positively both on the soundness of our decision, as wellas the breadth and depth of WNS’ management team, which is uniquely qualified tolead this company. “Mr. Bhargava added hat WNS’ travel unit continues to be the offshore industry leaderin this segment with a dominant market share, but that “WNS’ formalization of ourvertical structure clearly allowed us to devote additional resources to our non-traveloperations – especially financial services, which include mortgage and insurance. As aresult, we have strengthened our expertise and operations in each of our offerings, aswell as across the company as a whole. ” Compare this case with the case given at the beginning of this chapter. Whatsimilarities and dissimilarities do you notice?
Your analysis should be based onthe theories explained. Evalueserve: Based in Gurgaon, it has 650 people engaged in market research andbusiness intelligence. Nearly 45% of the company’s revenues come from math relatedprojects. Evalueserve has a research firm called Global Sourcing Now, whichspecialises in high-quality research reports. WNS: A Mumbai-based BPO, WNS has just started its KPO division for market researchwith 300 people. It operates in the knowledge services business segment and offershigh-end services such as market, investment and business research.
Wipro BPO – In 2002, Wipro took a quantum jump in the BPO services by acquiring thethen Spectramind. Wipro Limited (Wipro) is engaged in the areas of information technology (IT), services,IT products and consumer care and lighting products. The Company is organized infour segments: IT services, IT products, consumer care and lighting, and others. During the fiscal year ended March 31, 2009 (fiscal 2009), 94% of Wipro’s operatingincome was generated from its IT Services. In Fiscal 2009, IT products represented3% of its operating income, and consumer care and lighting, and others represented3% of operating income.
The Company’s IT services segment provides a range of ITand IT-enabled services. In January 2009, Wipro Technologies acquired Citi Technology Services Ltd. (India), the India-based captive provider of technologyinfrastructure services (TIS), application development and maintenance services forcards, capital markets and corporate banking. Similarities: 1. Require knowledge transfer of the organization’s business processes2. Involve migration of jobs (along with some people too) to another country3. Necessitated by business compulsions such as cost reduction or shortage of resources4.
Technology intensive exercise/process needing a ‘global delivery model’5. Requires structured migration process to minimize the probability of failure6. ITO and BPO Partners are both affected severely by attrition in the workforceDifferences:1. Skills required in the people are different – IT requires strong technology focuswhile BPO requires strong process understanding focus2. Replacement of resources (on account of attrition) is easier and cheaper in BPOsthan ITOs3. ITO staffing strategy is to hire “trained people” whereas BPO staffing strategy aimsto “hire the crowd and train them”4.
ITO results in loss of jobs to “knowledge workers” – but they don’t care since theycan get plenty of jobs elsewhere; BPO results in loss of jobs to lower skilled “processworkers” – often they do not have anywhere else to go ITO – Information Technology OutsourcingBPO – Business Process Outsourcing These are two heads, ITO is bent towards technology i. e. software outsourcing,whereas BPO is inclined towards process outsourcing. When we say process that could be functional (admin, HR, accounts) shared by all theindustries or technical depending upon each industry and skills required.
Moreover, the KPO>RPO>MPO>PPO>EPO and all the newbies are parcel of nicheindustries vis-a-vis skills required. Case 2 PERU What are some current issues facing Peru? What is the climate for doing businessin Peru today? During the 1970s, the Peruvian government nationalized a number of industries andfactories and began running them for the profit of the state in most cases, these state– run ventures became disasters. Peruvian government are facing problem with lack of advance and latest equipmentfor both locating as well as catching and then loading and unloading the fish.
Peruvian government might step in during the next couple of years and again takeover the business. If this were to happen, it might take an additional decade for theloan to be repaid. If the government were to allow the fleet owner to operate thefleet the way he has over the last decade, the fleet the way he has over the lastdecade, the loan could be repaid within seven years. Peru is located on the west coast of South America What type of political risks does this fishing company need to evaluate? Identifyand describe them. Political Risk can be divided into several types of threats. Interference with operations • Confiscation (they take a piece of equipment) • Expropriation (they take the whole company) • Nationalization (they take all the companies in a business sector) • Economic instability, which effects production • Currency Repatriation, not being able to get your money out • Currency Inconvertibility, not being able to exchange your money for another currency of international value (yen, dollars, pounds) • Contract Repudiation Persistent and deliberate refusal … to honor obligations as set forth in a Contract… What types of integrative and protective and defensive techniques can the bankuse? Some prevention techniques apply to individual banks, independently of the rest of the economy. * A bank can take deposits from depositors who do not observe commoninformation that might spark a run. For example, in the days before depositinsurance, it made sense for a bank to have a large lobby and fast service, to preventa line of depositors from extending out into the street, causing passers-by to inferthat a bank run is occurring. * Banks can encourage customers to make term deposits that cannot be withdrawnon demand.
If term deposits form a high enough percentage of a bank’s liabilities itsvulnerability to bank runs will be reduced considerably. The drawback is that bankshave to pay a higher interest rate on term deposits. * A bank can temporarily suspend withdrawals to stop a run; this is calledsuspension of convertibility. In many cases the threat of suspension prevents the run,which means the threat need not be carried out. * Bank regulation or other constraints can impose a reserve ratio requirement,which limits the proportion of deposits which a bank can lend ut, making it less likelyfor a bank run to start, as more reserves will be available to satisfy the demands of depositors.  This practice sets a limit on the fraction in fractional-reserve banking. * Full-reserve banking is the hypothetical case where the reserve ratio is set to100%. Under this approach, the risk of bank runs would be eliminated, and bankswould match maturities of deposits and loans to avoid vulnerability to runs. Would the bank be better off negotiating the loan in New York or in Lima? Why?
We can think like that New York Bank is in better position to do negotiation with Limain their own terms and condition. The biggest problem is that the ships are getting oldand they needs an influx of capital of make repairs and add new technology. As theyexplained it to the new York banker. “Fishing is no longer just an art. There is a greatdeal of technology involved. And to keep costs low and be competitive on the worldmarket, you have to have the latest equipment for both locating as well as catchingand then loading and unloading the fish ”
Case 3:RED BECOMING THICKERWhy that Coke is has not been able to make profit in its Indian operations? Coca-Cola’s operations in India have come under intense scrutiny as manycommunities are experiencing severe water shortages as well as contaminatedgroundwater and soil that some assert  are a result of Coca-Cola’s bottlingoperations. A massive movement has emerged across India to hold the Coca-ColaCompany accountable for its actions. The state of Kerala imposed a ban of colas fromthe state only to be quashed by Coca Cola; the matter is pending in the supremecourt. citation needed] The Plachimada plant in Kerala state, one of Coca-Cola’slargest bottling facilities in India, has remained shut for 17 months now because thevillage council has refused to renew its license, blaming the company for causingwater shortages and pollution. In the initial period of setting the business in India, the COKE was not able tomake profit fromthe Indian operation. This is due to a number of factors. • The local population is not accustomed to drinking cola drinks. • The market needs to be developed. • The initial bottleneck was the lack of adequate network of distributors. • Product distribution was weak. The poor distribution created negative impaction the market growth. • Volume was low. • Overheads were growing. • The operation profit was negligible. Do you think that Coke should continue to stay in India? If yes, why? I would like to mention some points if in order Coke wants to continue its operation inIndia. The allegations in other ways helped Coca-Cola Company, India to show theircorporate social responsibility and to maintain good product quality standards. Theinitiatives all over India helped them reach villages for a good cause and alsoindirectly marketed their products with establishing a trust among the public.
After allthese allegations, the CSE is still not convinced of the quality of the product. Therefore, Coca-Cola must prove that they have upgraded their lab with sophisticatedinstrument which is capable of measuring pesticide residue in soft drinks. As per therecent reports by CSE, they claim that the pesticide residue has gone up 27 timeshigher than expected level by the Bureau of Indian Standards (BIS)Coke is facing different type of problem in which some are mention below Critical Issues/Problems:
Solid waste and water issue: The communities near the bottling plant in Indiacomplained about the passage of sludge as fertilizer, causing health andenvironmental damage. The most important issue concerning these communities isthe depletion of water levels caused by the Coca-Cola bottling operations which havedrastically reduced availability of water for irrigation purposes. Pesticides in soft drinks: The other issue concerning human health caused by Coca-Cola is that their bottled water and soft drinks contain pesticides which were testedby the reputed NGO, CSE.
Dual product standards: Coca-Cola is accused of having dual standards in terms of their products and safety measures concerning human health with respect to USA,Europe and India. Community issue: These allegations affected Coca-Cola largely with its sales and alsocaused the closure of one of their bottling plants in Kerala, India. Additionally, Coca-Cola’s products are banned in the state of Kerala, India. What cultural adaptations would you suggest to the US expatriate managersregarding their management style?
A key reason for the return of expatriates before the official end of their foreignassignment is the uncertainty and frustration resulting from poor cross-culturaladaptation. The literature provides this general, normative view without much to sayabout the interpersonal conflict expatriates experience in the workplace abroadcaused by cultural differences. Our exploratory study finds that conflicts with co-workers in host countries occur frequently causing high stress and discomfort, andprovides three specific sources of conflict as recounted by sample managers.
Theimplications of our findings include: selecting expatriate managers with highemotional intelligence, providing extensive pre-departure cultural training thatconsists not only of cultural facts but also interpersonal skills such as active listening,conflict management, and ethical reasoning, utilizing sensitivity training techniquesto better prepare managers for new situations, and sending the expatriate on one ortwo pre-sojourn visits to familiarize themselves with the host culture and workplacenorms even before the actual expatriate assignment begins.
An additional implicationis training the host-country workers, particularly those who will work most closely withthe expatriate manager, on home country cultural beliefs and workplace norms. Weaim to stimulate managerial thinking and further research on the workplace conflictsthat challenge expatriates managers. Using the Hofstede and the value orientations cultural models, how can youexplain some of the cultural differences noted in this case? When business consultants and professionals in the field of workplace learning and developmentdiscovered Hofstede’s dimensions, applications began to emerge in many areas.
The following aremerely a few examples of how the field has translated the abstract theory into a series of concreteapproaches. In expanding their market to the global level with clear and consistent global brand images acrossnations, marketers are ever confronting the issue of how to deal with different cultural values. Cultural value is identified as an influential factor on brand image and is widely accepted as one of the crucial concepts in understanding consumer consumption value, which determines choices of consuming everyday products and services.
Most firms endeavoring to establish and maintainconsistent global brand images, however, adopt a standardized brand image strategy that usuallydoes not consider individual target markets characteristics, including the concepts of cultural valueand consumption value. This study developed a conceptual framework which incorporated culturalvalue not only as a direct antecedent of brand image, but also as an indirect antecedent of brandimage through consumption value, and empirically tested it using the category of apparel.
Following this framework, this study hypothesized the differences in brand image, cultural value,and consumption value between the U. S. and South Korea. Data were gathered through surveying university students residing in the San Francisco and Seoul metropolitan areas using a conveniencesampling method. A total of 329 completed questionnaires were used in factor analysis,discriminant analysis, and structural equation modeling. The results provide insights intostandardized brand image strategies and suggest some implementable tools that might proveeffective in both countries.
Case 4THE ABB PBS JOINT VENTURE IN OPERATIONWhere does the joint venture meet the needs of both the partners? Where does itfall short? “One of the most common instances that encourage learning and sharing is culturaldifferences. In the case study involving the ABB PBS Joint Venture the two companiesfound it rather difficult to understand certain cultural differences. These differencesexisted because the managers and employees of the venture were from the post-communist country of the Czech Republic and were new to the structure of a freemarket economy.
The venture had a difficult time interacting and understanding theculture of the European nations that they were conducting business with. To facilitatelearning and knowledge the managers of the venture had to change the mentality of employees and develop ways to motivate them to reach the goals of the company. (“The ABB PBS Joint Venture in Operation”)” What lessons one can draw from this incident for better management of technology transfers? Technology transfer is the process of developing practical applications for scientificresearch.
It is a term used to describe a formal transfer of rights to use andcommercialize new discoveries and innovations resulting from scientific research toanother party. It is, regrettably, not uncommon to find big companies and major industrial concernsin the developed countries turning a blind eye to the ethical questions when it comesto technology transfer. The need to show profits, the desire to please shareholdersand the compulsion to transfer technology to the South, whatever the outcome, haveblurred the vision and concept of fight and wrong. Mahatma Gandhi said the solution in India is not mass production, but production bythe masses.
Mass production by organized industry has brought in sophisticatedtechnology and militant trade unions, and has been one of the major factors formigration from the rural to the urban areas. The establishment of small scaleindustries, and better facilities for the rural workers, will ease the tension in the citiesand reduce migratory pressures – but it will mean less profits. This ill-conceived approach has almost destroyed indigenous institutions. Thetechnology input from the developed countries should have strengthened,supplemented and supported the existing, proven structures instead of replacingthem.
It has increased dependency on the outside, for spare parts, for expertise and forconsultation, thus controlling and co-opting rather than decentralizing anddisseminating. People forget that what is best and most sophisticated could easily bea ball bearing on bullock cart wheels, or a simple set of hand tools for villageblacksmiths. ————————————————- Top of Form Search Bottom of Form Search History: Searching… Result 00 of 00 00 results for result for ? p.