4. strategic mgt- examples

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MAHINDRA

Operations span 18 key industries that form thefoundation of every modern economy:

aerospace,aftermarket, agribusiness, automotive,components, construction equipment, consultingservices, defense, energy, farm

equipment, finance and insurance, industrialequipment, information technology, leisure andhospitality, logistics, real estate, retail, and twowheelers.



Aftermarket: Mahindra First Choice Wheels pre-

owned car dealerships

Mahindra Branded Pesticides (MBP),

Mahindra shubhlabh services for seed

distribution

Mahindra castings and forgings for components



A joint venture between the Maini Group of

Bangalore and AEV LLC of USA.



Larsen and Toubro

Larsen & Toubro Limited (L&T) is a technology,

engineering, construction and manufacturing

company in India's private sector.

Independent Companies’ ICs’.

Hydrocarbon, Heavy Engineering, L&T

Construction, Power, Electrical& Automation, Machinery & Industrial Products,

Information Technology, Financial

Services, Shipbuilding, Railway Projects



Aditya Birla group

Companies under AB Group

Grasim

Hindalco

Ultratech cement

Joint ventures:

Birla Sun Life Insurance company which is a JVof SunLife Financial Inc (Canada)

Birla Sun Life Asset which is a JV of Sun Life

Financial Inc (Canada)



Aditya Birla Grasun Chemicals (Fang-cheng-

gang) Limited , a JV with Fan-cheng-gang

Grasun Company Limited, Guangxi Province(China)

The Aditya Birla Science and Technology

Company (ABSTC) is the corporate research

and development centre for the Aditya Birla

Group



Brands

Louis Philippe, Peter England, Allen Solly, Van

Heusen, Birla Carbon, Birla Shaktiman Urea, ,

Aditya Birla Insulators, Linen Club, Pyroguard,Ray One, Idea, Planet Fashion, Grasim,

Graviera,



HINDUSTAN UNILEVER LIMITED

In 1931, Unilever set up its first Indiansubsidiary, Hindustan Vanaspati

Manufacturing Company, followed byLever Brothers India Limited (1933) andUnited Traders Limited (1935). Thesethree companies merged to form HUL inNovember 1956;



Lifebuoy in 1895 and other famousbrands like Pears, Lux and Vim. Vanaspatiwas launched in 1918 and the famousDalda brand came to the market in 1937.

Household brands such as Lux, Lifebuoy, SurfExcel, Rin, Wheel, Fair & Lovely, Pond’s,

Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk,

Pepsodent, Closeup, Axe, Brooke Bond, Bru,

Knorr, Kissan, Kwality Wall’s and Pureit



Pepsi Lipton' Alliance To Offer Ready-To-Drink Tea-Based Beverages In India -2004

Hindustan Unilever

New HLL-Pepsi arrangement combines Lipton

brand equities with Pepsi bottling, sales anddistribution strengths;

Builds upon successful hot beverages andInternational JV



In January 2000, in a historic step, the

government decided to award 74 per cent equity

in Modern Foods to HUL, thereby beginning thedivestment of government equity in public sector

undertakings (PSU) to private sector partners.

HUL's entry into Bread is a strategic extensionof the company's wheat business. In 2002, HUL

acquired the government's remaining stake in

Modern Foods.



Cultural issues

Waving is a serious insult in Greece andNigeria

Making a good-bye wave in Europe canmean NO, but in Peru it is COME HERE

Breakfast meetings are considered

uncivilized in most foreign countries Direct eye contact is impolite in Japan

Crossing of legs is RUDE in Arab andAsian countries



Snapping of fingers is VULGAR in Franceand Belgium

Folding of arms across your chest is a signof annoyance in Finland, but is a sign ofutmost respect in India

In China, leave some food in the plate toshow that your host so generous that youcouldn’t finish

Eating with left hand is bad in Malaysia



US business people have the lowestforeign language proficiency of any major

trading nation.

US business schools do not emphasize

foreign languages and studentstraditionally avoid them



Global strategy

A global industry can be defined as:

An industry in which firms must compete

in all world markets of that product inorder to survive

An industry in which a firm’s competitive

advantage depends on economies of scaleand economies of scope gained acrossmarkets

Global markets are international markets

where products are largely standardized.



Michael Porter argued that industries areeither multi-domestic or global.

Global industries: competition is global.The same firms compete with each othereverywhere.

Multi-domestic industries: firms

compete in each national marketindependently of other national markets.



Global strategy

Companies (such as Sony and Panasonic)pursue a global strategy which involves:

Competing everywhere Appreciating that success demands a

presence in almost every part of the world

in order to compete effectively Making the product the same for each

market Centralised control

Taking advantage of customer needs and

wants across international borders



Locating their value adding activitieswhere they can achieve the greatest

competitive advantage Integrating and co-ordinating activities

across borders

A global strategy is effective whendifferences between countries are smalland competition is global.



It has advantages in terms of

Economies of scale

Lower costsCo-ordination of activitiesFaster product development



Multi domestic strategy

A multi-domestic strategy involves

products tailored to individual countriesInnovation comes from local R&D

There is decentralization of decisionmaking with in the organization



One result of decentralization is localsourcing

Responding to local needs is desirable butthere are disadvantages: for example high

costs due to tailored products andduplication across countries

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