This case highlights Whirlpool’s problems in China during the 1990s and contrasts competitive advantage between global firms and local competition in the appliance industry. The case briefly discusses what went wrong in China for Whirlpool like not managing distribution channels, bribery problems, wrong product decisions, not understanding local competition and so on.

Case Contents

1. Introduction – Whirlpool’s entry into China
2. What went wrong in China?
3. Working with local partners and system hassles
4. Bribery Scandal
5. Numerous small local firms that dominated the market
6. Competing with Chinese Appliance Makers
7. Underestimating Local Competition
8. Not managing the distribution channels efficiently
9. Wrong product decisions – Not keeping local needs in mind
10. Foreign Managers not understanding Chinese management culture
11. Market Saturation
12. Distribution System and labor hassles
13. Whirlpool in Asia
14. Whirlpool – Quick Facts
15. Bibliography
16. Exhibit 1 – Whirlpool’s joint ventures with local companies in China in 1995
17. Exhibit 2 – Whirlpool’s leadership position in various regions in 1999
18. Exhibit 3 – Whirlpool – Globalization – Entry into Foreign Markets
19. Exhibit 4- Competitive Advantages of Global firms in the appliance industry
20. Exhibit 5- Whirlpool and GE between 1995 and 1997

Sample Case Page

1. Introduction – Whirlpool’s entry into China

“We entered China pretty early compared to most companies. It was pretty much an unknown.”
- Michael Todman, president of Whirlpool International in 2007

Since 1988, Whirlpool has followed an aggressive globalization strategy under the leadership of former CEO, David Whitman. China had been one of its main entry targets and also fit into its global strategy of becoming the market leader in Asia. Whirlpool formed several joint ventures in China and India in the mid-1990s signaling a big push into the Asian market. However, in 1996, revenues from Asian operations were far from being profitable and accounted for only 6 percent of the total revenues of $8.5 billion. The company made losses to the tune of $70 million in Asia alone that year. Between 1994 and 1997, it invested over $300 million in four JVs in China. Two joint ventures in China were unsuccessful and loss-making. A year later, in 1997, with tough competition in China’s market and continued losses, Whirlpool decided to pull out of two joint ventures in China as part of a global restructuring exercise. (See Exhibit 5- Whirlpool and GE between 1995 and 1997 on page 8 ) Whirlpool’s efforts in the world’s most-populous country were not fruitful. Whirlpool’s then CEO David Whitman remarked, “We are taking steps to align the organization with the marketplace realities of our industry.”

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This case study analyzes the global mindset at Ford Motor Company, a leading multinational manufacturer of cars and trucks. The case also discusses a number of potential risks and challenges that Ford faces or may face in future and how it is responding to it. Ford’s global strategic management and strategies like ONE Ford, Aligned Business Framework (ABF), and matched-pairs are also briefly discussed.

Table of Contents

• Introduction – Ford’s Global Mindset
• Ford – Quick Facts
• Risk Factors in the Automobile Industry
• Financial Crisis and recession
• Oil Crisis, Changing consumer habits and Environment standards
• Investing in R&D and New Technology
• Assessing Risks in a global environment
• Early Years – From a market-seeking to a resource-seeking strategy
• Expanding capacity in markets where it is lagging behind
• Using new technology
• Local Sourcing
• Other Risk factors
• ONE Ford Strategy
• “Matched-pairs” system
• Aligned Business Framework
• Ford’s Global Manufacturing Strategy
• Standardization and Sharing Best Practices
• Ford’s Global product strategy
• Bibliography
• Exhibit 1 – Ford’s five key priorities in operating as a globally integrated team
• Exhibit 2 – Ford’s Facilities around the World
• Exhibit 3 – Ford’s Business Segments based upon its organizational structure
• Exhibit 4 – Industry sales volume – 2005 to 2009
• Exhibit 5 – Factors affecting Ford’s profitability
• Exhibit 6 – ONE Ford plan that Ford Motor Company is using to transform its business
• Exhibit 7 – Key elements of Ford’s Aligned Business Framework (ABF) agreements
• Exhibit 8- Main elements of Ford’s Flexible Manufacturing Strategy

1. Introduction
2. Manufacturing – The first Dell ‘Made in India’ desktop
3. Dell’s Market Share in India
4. The Indian consumer and Local competition in India
5. DELL – Key Facts about the company
6. Dell – Company Overview
7. Dell – Business Segment Information
8. Dell Products and Services
9. Dell’s new retail strategy and Direct-only model
10. Dell’s New Marketing Strategy in India
11. Dell’s New Advertising Campaign for SMBs
12. Testimonial Advertising instead of Transactional
13. Dell’s CSR, Green Initiatives in India
14. Questions for discussion
15. Bibliography

Sample Page

“India is a great place to be in. It is growing faster than China for us.”
“We’re in 180 countries and I don’t track all of them because that can make you a bit dizzy. But I do follow our top 10 markets. India is in the top 10. In fact, it’s the fastest growing market of our top 10, ahead of everybody, including China. There are plenty of opportunities in India and we couldn’t be more excited.”
-Michael Dell in 2010

‘‘We’re very strong in the large enterprise segment, but over the next three years, we’ll also focus on consumers and small and medium (Indian PC market growing faster than China: Michael Dell news, 2010) businesses. That’s where we see a big part of the next billion dollars in India coming from.”
- Sameer Garde, India country manager in 2010

Introduction

Dell’s presence in India is no surprise. India is one of the most important emerging markets in the world. For years, selling PCs in Asia largely meant China . However, PC makers have recognized the importance of the giant Indian market , its booming economy and annual growth at more than 9%.

Dell started in India about seven or eight years back by opening a customer contact center at Bangalore in 2001. In 2003, the second contact center opened at Hyderabad. The company operates its services from four centers based at Bangalore, Hyderabad, Chandigarh and Gurgaon. Dell started in Bangalore providing customer support to English speaking countries and later also began providing technical support, procurement of financial back office and Knowledge process outsourcing. After the U.S., Dell India is the second biggest center with 23,000 employees. The strategic importance of India to Dell is evident from the fact that India was one among three locations (the other two being US and UK) where Dell’s Latitude E series and Precision notebooks were launched. In India, Dell already has a 23,000-strong workforce in about 10 years of operations and business from India is closing in on the $1 billion mark. Dell has nearly 13 per cent share of the Indian market.

Case Updates/Snippets

• Dell’s channel strategy is to make technology more available to small and medium businesses (SMBs). Dell’s channel partners contribute 22% to its total revenue globally. Out of 10 million SMB customers across the globe, Dell caters to 12,000 SMB customers in India. As per estimates, SMB market in India has over 7 to 13 million customers. Among the BRIC countries and U.S., India is ranked second for the number of SMBs.
• Stiff competion between Dell and HP in the Indian PC market: According to IDC, since 2005, HP has held the number one position in the Indian PC market every quarter (for the past six years). However, in the second quarter (April-June, 2010), Dell replaced HP for the first time with a 15.2 percent share. HP followed at 14.3 percent and Acer at 11.5 percent, though HP still led in the desktop segment. Dell was helped by strong marketing and its channel partners base while HP was disrupted by its move from a national distribution model to a network of regional distributors.
• PC Market in India:In 2009, 75 lakh PCs were sold. In 2010, the expected PC sales are 90 lakh. For the first six months ended June 2010, sales totaled about 45 lakh. [Note: 10 lakh=1 million, PCs include desktops and notebooks.]

1. Introduction
2. A Direct Approach
3. Dell’s Leadership Style
4. No excuses – quick and effective decisions
5. First step in a marathon – No victory laps
6. Watch each dime and turn it into at least a quarter
7. Every product should be profitable from Day One
8. Direct To Customer Service
9. Two-in-a-box Management
10. DELL Company Overview and Time-line
11. Dell Products and Services
12. DELL – Key Facts about the company
13. Michael Dell – Personal Profile and Achievements
14. Michael Dell – Entrepreneurship Skills – Early Years
15. Quotes by Michael Dell
16. Questions for discussion
17. Bibliography
18. Exhibit 1 – Managing the Dell Way
19. Exhibit 2 – Five key strategies in Dell’s Direct Model
20. Exhibit 3 – Dell Inc. – Historical Income Statement
21. Exhibit 4 – Dell Inc. – Historical Stock Chart

Sample Page

“There are a lot of things that go into creating success. I don’t like to do just the things I like to do. I like to do things that cause the company to succeed. I don’t spend a lot of time doing my favorite activities.”

“What matters is our future plan of action. We are systematically moving to increase efficiencies, improve execution and transform the company.“-Michael Dell, CEO Dell Inc.

Introduction

DELL Inc., based in Round Rock, Texas, was a company remarkable at balancing growth and profitability since its inception. DELL’s direct-sales business model had worked incredibly well over the years. However, towards the end of the decade (2000-10), the company’s struggles over pricing and profitability contrasted with market leaders, Hewlett-Packard (HP) and Acer . In recent years, DELL’s PC-sales growth lagged behind those of its competitors. DELL’s rivals were able to better take advantage of demand from consumers. DELL was struggling with dismal earnings and a fast eroding market share.

In 2007, Michael Dell (Dell) returned to revive the company he had started in his college dormitory. Majority of the analysts praised the idea of Dell’s return as CEO without a clue about what it is that he would actually do to turnaround the company. In the past, DELL Inc. was recognized as one of the best-managed companies in technology and under Dell’s leadership had transformed itself from a no-name PC player into a powerhouse brand. Michael Dell’s value to the company can be gauged from the fact that, in 2008, the company spent $1,164,625 on personal and residential security.

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1. Introduction – Restructuring at Lenovo
2. The Indian Challenge
3. Rationalizing Operations in India
4. About Lenovo – Background note, Business and Strategic Facts
5. Lenovo – Top Leadership Team, Key people
6. Lenovo: Quick Facts
7. Reorganization Strategy and the Boxer analogy
8. Lenovo’s Indian focus
9. Lenovo’s ‘half moon’ strategy for its emerging markets business
10. Lenovo’s three core competitive strengths
11. A unique dual business model
12. Lean cost structure
13. History of innovation
14. Marketing Strategy
15. Global Marketing Hub – India-based multicultural marketing communications team
16. Product positioning – Leveraging icons in the Indian Market
17. Five-Year Financial Summary
18. Bibliography
19. Figure 1 – Lenovo – Sales Analysis by Geography
20. Table 1 – India Client PC Market: Vendor Rankings and Market Shares
21. Table 2 – India Client PC Market – 4Q 2007, 4Q 2008
22. Exhibit 1 – Market share in the overall PC market
23. Exhibit 2 – Celebrity Endorsement by PC Brands in India
24. Exhibit 3 – Lenovo’s corporate values

Sample Page

“We have restructured our global business and have divided markets into the emerging and developed market categories. Our thrust remains on the emerging market because of the tremendous potential, and we will bring in the best practices from China to these markets. India remains on the top of the pack in our emerging markets business.”- Amar Babu, Lenovo India MD.

“It’s possible to double our share in Indian market in 3-4 years.” – Yang Yuanqing, CEO, Lenovo in July 2009.

“The company’s (Lenovo’s) market share has been on the decline in India for over a year. In the quarter ended Dec. 31, it ranked fifth behind Hewlett-Packard, Dell, Acer, and a local vendor HCL Infosystems.”- Diptarup Chakraborti, principal research analyst at Gartner.

1. Introduction – Restructuring at Lenovo

In January 2006, Lenovo the world’s fourth-largest PC maker restructured its global operations from four regions (Americas, Europe, Asia-Pacific and China) to five . India was a major part of Lenovo’s strategy and it was listed as a separate region to be managed. India had just 7.5 million PCs compared with China’s 40 million. This presented a huge opportunity for Lenovo and it wanted to double its market share in three to four years. The company was expected to find natural success in India as the Indian market was similar in nature to the Chinese market. In China, Lenovo had built a reputation as market leader. Lenovo’s market share in China was over 30% in the Chinese domestic market. According to data compiled by Bloomberg, China accounted for 48% of the company’s revenue for the first half of 2009. However in India, Lenovo was lagging behind competitors like Dell, HP (Hewlett-Packard) and local brands like HCL (Hindustan Computers Limited). Lenovo had a 7.3 per cent share in the Indian PC market.

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Case Contents

1. Introduction
2. Background Note
3. Rewards and recognition programs – Motivating Employees
4. FedEx “purple promise,” – a simple corporate philosophy – people, service, profit
5. Promotion from Within – Employee engagement
6. ‘Purple Pipeline’
7. Excel program for FedEx officers
8. Survey, Feedback, Action
9. Survey – Annual associate survey every spring
10. Feedback – Feedback to joint employee-management discussion
11. Action – Future work unit and manager activities
12. The FedEx “purple” pipeline – Leadership Development Program
13. Components of the "Purple Pipeline" program – Strengths assessment, Coaching, Job rotation and Capstone Exercise
14. Additional Reading and References
15. Exhibit 1 – FedEx – Now and Then
16. Exhibit 2 – List of Innovative HR Practices and Programmes launched by FedEx since its early years
17. Exhibit 3 – Elements of FedEx’s HR Programmes
18. Exhibit 4 – Five Attributes of the FedEx Brand
19. Exhibit 5 – FedEx reputation as being one of the Best Places to Work around the World
20. Exhibit 6 – Four Basic Employee Requirements at FedEx
21. Exhibit 7 – The FedEx Definition of Management
22. Exhibit 8 – Guaranteed Fair Treatment Procedure
23. Exhibit 9 – A sample leadership evaluation question
24. Exhibit 10 – FedEx Leadership Traits
25. Exhibit 11 – FedEx’s Secrets of Success
26. Exhibit 12 – FedEx’s Management by PSP Objectives program
27. Exhibit 13 – People-Service-Profit (PSP)
28. Figure 1 – FedEx BravoZulu
29. Figure 2 – SFA – Survey Feedback Action
30. Figure 3 – FedEx’s simple HR friendly philosophy “P–S–P” – People, Service and Profit

Sample Page/Content

"Federal Express, from its inception, has put its people first both because it is right to do so and because it is good for business as well."- Frederick W Smith Founder, Chairman & CEO, FedEx Corporation

“At FedEx, our people are our greatest asset. We truly believe that. Our founder and CEO rooted the company in this philosophy and we continue to stand by it… HR today has the capabilities to be that strategic partner to business whether it’s in recruiting, talent development, performance management, employee relations or compensation, all of those functional areas have the opportunity to really help the business achieve strategic objectives” – Judith Edge, Corporate VP of Human Resources of FedEx

1. Introduction
In 2008, when FORTUNE magazine and the Great Places to Work Institute released the 100 “Best Companies to Work For” list, FedEx (NYSE: FDX), a leading global logistics solutions provider, was one among them. It was the largest employer in the 2008 list and the only shipping company included. The Memphis, Tennessee-based company ranked 97th overall and had now figured in this list in 10 of the past 11 years. In 2005, the package-delivery company was named to the “Best Companies to Work For” Hall of Fame.

FedEx like its main rival United Parcel Service (UPS) is considered a bellwether of U.S. economic health…

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Case Updates/Snippets

Federal Express: The word ‘Federal’ in the company’s original name came from founder Fred Smith’s proposal to carry checks of the Federal Reserve overnight to approximately 36 locations. ‘Express’ indicated speed in doing so.

FedEx began operations in the year 1973 and became not only the first company to deliver overnight packages but also went on to become the first company to grow to a billion dollars in 10 years of its existence.

Contents

1. Introduction – Wal-Mart’s first store in India
2. Joint venture with Bharti Enterprises
3. About Wal-Mart
4. Wal-Mart – Background Note
5. Wal-Mart – Timeline
6. Wal-Mart – Quick Facts
7. The world’s largest retailer isn’t new to India
8. India’s first special skills training centre
9. Exhibit – Wal-Mart’s business model in India
10. Mera Kirana programme
11. Exhibit – Foreign hypermarket chains in India
12. Wal-Mart Internationally
13. Exhibit – Wal-Mart and Expansion into International Markets
14. Wal-Mart’s imperfect success record in a foreign country
15. Cost-Leadership Strategy- Wal-Mart’s core philosophy – EDLP (every day low prices)
16. Will Wal-Mart succeed in expanding outside the U.S.?
17. Best Practices and lessons from the International Markets
18. Wal-Mart India – Plans and Challenges
19. Wal-Mart’s Strategy and Supply Chain tuning for India
20. Physical and Regulatory Challenges
21. The Indian Consumer
22. Bringing private label suppliers to India
23. Will the kirana store go out of business?
24. Advantages of a small Indian shopkeeper – The Kirana store
25. Exhibit: Wal-Mart – Store Formats
26. Exhibit: Wal-Mart – International operating formats
27. Questions for Discussion

Sample Page/Content

"India is a price sensitive market and therefore we will be devising our strategy for her very carefully…Retailing is like a game of three dimensional chess where we operate as a local, regional and global player, so depending on the needs of the market we shall change our format and adapt." – John B Menzer, President and CEO, Wal-Mart International.

"India is not a homogeneous market, so ours is not a cookie-cutter approach from the U.S. …Wal-Mart is in no hurry to unfurl the Wal-Mart flag nationally. The easiest thing is to roll out stores, but the most difficult is to sustain and feed them." -Raj Jain, President of Wal-Mart India in May 2009.

"Wal-Mart operates with multiple private brands around the world. In each market that we operate, we look to be local. We treat each market as unique and India, in this respect, is no different." -Arti Singh, vice-president of Corporate Affairs at Bharti Wal-Mart.

1. Introduction – Wal-Mart’s first store in India

In December 2006, Wal-Mart Inc. believed that by the year 2015, 35% of India’s retail sales could be from chain stores . This was a radical increase from the prevailing 2%. In May 2009, Wal-Mart was ready to open its first store in India. The reason for Wal-Mart’s entry in India was clear – The Indian middle class . The world’s biggest retailer had been silently working on its strategy for India for around two years. Mom-and-pop stores and traditional distribution networks dominated the $375 billion Indian retail market. Wal-Mart’s first outlet was set to launch in the city of Amritsar, Punjab in North India. The first store air-conditioned and built over 50,000 sq. ft. was on the outskirts of the city, Amritsar. The store employed 200 locals and was likely create 500 indirect jobs. In the first few weeks itself, the company had managed to sign on close to 35,000 members. However, the debut outlet was not to carry the familiar Wal-Mart brand. Did this mean Indian consumers could not benefit from Wal-Mart’s everyday low prices?

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Case Updates/Snippets

• 50:50 joint venture: In India, Wal-Mart has a 50:50 joint venture with Bharti Enterprises in the wholesale cash-and-carry segment.
• Direct Farm Program: Multinational retail giant, Wal-Mart’s Direct Farm Program in India is a partnership with 110 small and marginal farmers near Ludhiana in Punjab where it encourages cultivation of safe, high-quality, seasonal vegetables. Farmers are advised at every stage of cultivation by field agronomists. Farmers learn about nursery management, transplanting, nutrient management, as well as harvest and post-harvest practices.
• Wal-Mart India in 2010: In 2010, Bharti-Wal-Mart plans to launch seven Best Price Modern Wholesale Cash-And-Carry stores across India. These stores will be 100,000 sq ft in size and each store will involve an investment of $6-7 million.
• Sourcing from India: Wal-Mart has a large sourcing business in India. The retail major sources goods worth $125 million a year from Punjab. In 2010, Wal-Mart is planning to increase sourcing from India to strengthen its global business.
• Preference for Kirana/local retailers: According to a survey by ASSOCHAM in early 2010 in which it interviewed 5000 shoppers in various cities in India, kirana stores (mom and pop stores) and local retailers were the preferred destination for shoppers as compared to shopping malls. The survey found that goods were less expensive (as much as 25%) in local kirana stores as compared to big shopping malls. Smaller stores also offered more variety and affordable options with sustainable quality at a negotiable price (reduced margins).
• Training centers: Inheriting a model from its U.S. parent, Bharti-WalMart (Best Price Modern Wholesale) intends to set up its own training centers to train less-privileged youth to work in retail stores.
• FDI in retail in India: In India, the Government presently does not allow foreign investment in multi-brand retail. It allows 51% FDI in single-brand retail and 100% in wholesale venture. In 2007, Walmart Stores and Bharti Enterprises entered into a joint venture and began cash & carry stores under the brand Best Price Modern Wholesale.

This case study highlights the merger between German sportswear-maker Adidas and Reebok to take on market leader Nike in 2005. Will Adidas’ $3.7 billion takeover of Reebok in 2005 be successful or is it hampering the German sportswear-maker’s performance?

Table of Contents

1. Introduction

Taking on Nike – market leader in the U.S.
Regulatory Issues – EU clears the Adidas-Reebok merger
Adidas plus Reebok is equal to better competition with giant Nike
Post-Merger and Integration Issues
Adidas-Salomon Group five-point strategy in 2005

2. Exhibit I: Adidas major locations in 2005



3. Adidas-Reebok combo synergy – Did the merger make sense?

Affordable shoes
Growing the Adidas brand
Cost Efficiencies
Cutting-edge technologies, innovative products and celebrity brand ambassadors
New business opportunities
A more geographically balanced sales mix


4. M&As in the sporting goods industry during the late 1990s and the early 2000s
5. Adidas Reebok Merger Fact sheet
6. Exhibit II: The Reebok acquisition according to Herbert Hainer, Chairman and CEO of adidas-Salomon AG
7. Industry Analysis – Athletic apparel and footwear industry, Sporting Goods in the U.S
8. Competitive Landscape in 2005/6 – Sporting Goods Industry
9. Is the merger successful?

Strong competition from Nike
Adidas – Fourth Quarter 2007 performance
Adidas vs. Reebok unit performance in 2007


10. Reebok History – Timeline
11. Adidas History – Timeline
12. Financial Analysis – Nike, Reebok, and Adidas in 2004
13. Exhibit III: Market Analysis – Nike, Reebok, and Adidas in 2004
14. Exhibit IV: Adidas-Salomon – Five year financial summary
15. Adidas-Salomon – Financial Data – 2004, 2005
16. Adidas Group – Financial Data – 2007, 2006
17. Reebok – Financial Data

Case Study Keywords: Adidas, Reebok, Nike, Mergers and Acquisitions, M&A, Sporting goods, Athletic Apparel, shoes, corporate takeover

Case Questions for Discussion

The focus of this case study is the entry strategy of UK’s successful fast-fashion retailer Topshop in the U.S. This case briefly discusses Topshop’s business strategy, its early years and its success in UK fashion market. Can Topshop replicate its success in the U.S. market?

Table of Contents

1. Introduction – British retail chain Topshop’s U.S. debut
2. The Topshop Brand – a destination for pioneering British fashion
3. Background Note – Topshop in its early years
4. Topshop – History/Timeline/Important Events
5. Topshop’s entry and strategy in the US
6. Competition – Where will Topshop fit in the US retail scene?
7. Exhibit I: Typical Business Strategy of Fast-Fashion retailers
8. Topshop – Awards and Reputation
9. Exhibit II: Foreign Retailers in the United States
10. Exhibit III: Future expansion plans of foreign retailers in the U.S.
11. Exhibit IV: Services offered by Topshop
12. Exhibit V: Topshop Collections
13. Exhibit VI: Facts about the Arcadia Group
14. Exhibit VII: Fashion Brands under the Arcadia Group
15. Questions for discussion

Case Study Keywords: Fashion Retailing, Sir Philip Green, Topshop, Topman, Arcadia Group, Retailing in US, Fast-Fashion Market, entry strategy, international expansion

Case Questions for Discussion

1. Analyze Topshop’s entry strategy in the United States. Do you think it is the right move?
2. Compare and contrast your experience from your visit to a fast-fashion chain and other retail chains. What can Topshop do to add more value to its customers?

Case Snippets/Updates

• Topshop is present in around 30 countries. The Arcadia Group owned by billionaire Philip Green owns Topshop, Topman and Miss Selfridge brands. Arcadia also owns the Dorothy Perkins, Wallis, Evans, Outfit and Burton chains. By 2009, the Arcadia Group had 3,115 owned and franchised outlets in 34 countries.
• In 2006, Sir Philip Green, owner of Arcadia Group was knighted by Queen Elizabeth II. In 2002, he bought Arcadia for 850 million pounds. He and his family own about 90 percent of Arcadia. In 2001, he bought department store British Home Stores (BHS) and is known for successful turnarounds in the retail industry.
• In 2009 (12 months to August 29, 2009), Arcadia posted a 13% rise in pre-tax profits to £213.6 million. The growth marks a turnaround in performance after profits declined in the previous two years by 5% and 1.6% respectively.

This case study discusses how McDonald’s India managed to buck the trend in a struggling economy, its early years and business strategy to get more out of its stores in India. The case also briefly discusses how McDonald’s adapted to local culture in India, its localization and entry strategy, its strong supply chain and pricing strategy.

Table of Contents

1. Introduction
2. McDonald’s entry into India
3. Exhibit I: McDonald’s – Country – Entry Year
4. The Indian Market – Top 10 per cent of the busiest markets globally
5. Localization Strategy
6. McDonald’s JV in India
7. Initial Challenges – ‘Culturally Sensitive’ Food



8. Understanding Indian Customs and Culture
9. An Indianized Menu, Re-engineered operations and no beef burger
10. Competition – Major Competitors in India and Globally
11. McDonald’s – Quick Facts
12. Time line of McDonald’s in India
13. Pricing Strategy – The Rs-20 trap and ‘Purchasing Power Pricing’
14. Kiosks at store entrances for customers in a hurry
15. Home Delivery – McDonald’s Delivery Service or McDelivery



16. Out-of-home Breakfast – International McDonald’s format with local taste
17. McDonald’s Supply Chain Management (SCM)
18. Unique cold chain
19. Cutting costs
20. Exhibit II: McDonald’s Suppliers in India
21. Exhibit III: The Menu at McDonald’s India
22. Exhibit IV: McDonald’s – Early History and Growth
23. Exhibit V: Principles to McDonald’s business success
24. Questions for Discussion

Case Study Keywords: Fast-food Retailing, McDonald’s India, Joint venture, Amit Jatia, Vikram Bakshi, localization strategy, pricing strategy, McIndia, quick service restaurants, cultural adaptation, local culture, supply chain management, SCM, McDelivery, unique cold chain

Case Questions for Discussion

1. McDonalds has become the poster brand for recession-resilient business. What is McDonald’s doing right in India? What elements of its business strategy are working for it and how does it manage to get more out of its stores?
2. Does local adaptation contribute to business growth in a country? Explain McDonald’s efforts to adapt to the local culture in India. What challenges did McDonald’s face in India?
3. Have you ever visited a McDonald’s store? Compare and contrast your experience with another quick-service restaurant or fast-food joint you visited earlier. How can McDonald’s improve? Should it alter its strategy?

Case Updates/Snippets

• World’s leading food service retailer – McDonald’s has more than 32,000 restaurants serving over 50 million customers each day in more than 119 countries.
• McDonald’s competitors in India – McDonald’s competes with fast food chains like Pizza Hut, Domino’s Pizza, Papa John’s, Nirula’s and KFC in India.
• McDonald’s Supply Chain – McDonald’s has a dedicated supply chain in India and sources 99% of its products from within the country. The company has strong backward integration right up to the farm level.
• Quick service restaurants in India – By October 2009, McDonald’s India had more than 170 quick service restaurants in India. Domino’s Pizza, which began operations in India in January 1996, has over 275 stores across 55 cities in the country. KFC has 46 restaurants across 11 cities in India. (KFC is one of the 5 brands owned by Yum!. KFC is a $12 billion global brand and a leading quick-service restaurant (QSR) in many countries.) Nirula’s, one of India’s oldest food chains (completed 75 years in service in March 2009), has a network of around 62 outlets in five states across Northern India. Nirula’s, established in 1934 has interests in hotels, restaurants, ice cream parlours, pastry shops and food processing plants. Nirula’s was the first to introduce burgers in India.
• Food Industry in India – In India, food industry and particularly informal eating out market is very small. In India, over quarter of a million customers visit McDonald’s family restaurants every day. The Indian fast food market is valued at $1-billion (Rs 4,547 crore) aprrox.
• MFY (Made for You) food preparation platform – MFY is a unique concept (cooking method) where the food is prepared as the customer places its order. All new upcoming McDonald’s restaurants are based on MFY. This cooking method has helped McDonald’s further strengthen its food safety, hygiene and quality standards. McDonald’s has around 10 MFY restaurants in its portfolio.
• How McDonald’s manages to keep its prices down? – Fast-food chains face a tough time balancing between margin pressures and hiking prices which can hurt volumes. Consequently, the chains have to increase rates or rework their strategies. Affordability has been the cornerstone of McDonald’s global strategy. Some of its measures to achieve this include – Bulk buying, long-term vendor contracts, and manufacturing efficiencies.
• McDelivery Online – In India, McDonald’s first launched home delivery of meals in Mumbai in 2004. McDonald’s now has plans to launch web-based delivery service in India (across 75 McDelivery cities) in 2010, a pilot for which has already been tested by it in Hyderabad. The company hopes to add 5 per cent to sales via Web delivery. McDonald’s web-based delivery model will be based on serving the customer quickly wherein the drive time does not exceed seven minutes because its food has to be eaten within ten minutes of preparation. The footfalls in India are amongst the highest in the world, but the average bill is amongst the lowest. At present (March 2010), Domino’s Pizza (operated by Bhartia Group-promoted Jubilant Foodworks under a master franchise agreement) has a 65% market share in the home delivery segment.
• Most Preferred Multi Brand Fast Food outlets: In 2009, McDonald’s India won the CNBC Awaaz Consumer Awards for the third time in the category of the Most Preferred Multi Brand Fast Food outlets.
• McDonald’s India in 2010 – In 2010, McDonald’s India plans to open 40 more outlets. The company has also earmarked a budget of Rs 50-60 crore to market its new products and initiatives for consumers. Its new marketing campaign is titled – ‘Har Chotti Khushi Ka Celebration’ – in other words ‘celebrate little joys of life’ where it positions McDonald’s as a venue for enriching life of consumers. In South India, McDonald’s has 29 outlets and plans to add 10 more by end of 2010.
• Taco Bell in India – In March 2010, Taco Bell, the Mexican specialty chain owned by US-based fast food brands operator Yum! Restaurants launched its first outlet in Bangalore, India. The company which also operates brands like Pizza Hut and KFC plans for contract farming to open up to 100 outlets by 2015 and also expand into Tier-II and -III Indian cities eventually.
• Local Vegetarian Menu: In India, McDonald’s does not offer pork or beef-based products. It’s menu is more than 50 per cent vegetarian. The fast food retail chain has separate production lines and processes for its vegetarian and non-vegetarian offerings.
• High Real-Estate costs in India: In many countries, in a Quick Service Restaurant (QSR) a customer comes in, buys and then leaves. This is known as a revolving door concept. But an Indian customer believes in a dine-in culture. This adds to the real estate costs which goes as high as 20-25 per cent as compared to 10-15 per cent globally.
• The most important meal for QSRs- Morning Meals (Breakfast):According to market research company, the NPD Group, breakfast accounted for nearly 60 per cent of the restaurant industry’s traffic growth over the past five years in the U.S. Quick service restaurants sold 80 per cent of the over 12 billion morning meals served at US restaurants for the year ending in March 2010.
• OOH Branding: According to Rameet Arora, senior director – marketing, McDonald’s India (West and South), McDonald’s India may be the largest out-of-home branding (OOH) in the country. McDonald’s India has restarted OOH (out-of-home branding) after a 7 to 8 year break to reach to their target group.

The focus of this case study are the innovative strategies adopted by leading Indian organized book retailing chain – Crossword Bookstores Limited. This case discusses the constant innovations brought about by the bookstore and how it has brought international standards of book retailing to Indian customers.

Table of Contents

1. Introduction
2. About the Company
3. Background Note – A dream of an India-based world-class bookstore
4. Exhibit I – Most Frequently Visited Book and Music Stores in India
5. Exhibit II: Achievements and recognitions for Crossword
6. Crossword – Quick Facts
7. Crossword – Market Positioning



8. Exhibit IV – SWOT Analysis of the Indian Book Market
9. Exhibit V – Book retailing scenario in India
10. The ‘print then distribute’ model
11. Driving factors for Market growth in India
12. Typical Characteristics of the Indian book market in the 80s
13. Exhibit VI: Journey of Organized Retail in India
14. Exhibit VII: Population Growth rate and ROI on Retail real estate in India
15. Exhibit VIII: Typical Bookstore classification in India
16. Innovations at Crossword
17. What has shifted shoppers’ loyalties to the up market bookstore?
18. Crossword – Breaking the rules – Much more than a bookstore
19. The inaccessible ‘U’ shaped first store
20. Exhibit IX: Simple innovations at Crossword Stores
21. Keeping the customers in mind – Understanding buying readers’ psyche
22. Improving window displays
23. A welcoming café
24. Reading tables and chairs
25. Helping booklovers – ‘Books once sold WILL be taken back’
26. Crossword Children’s Hour – Book Reading and story-telling sessions
27. Unique Product Mix
28. Increasing margins with non-book business category and own private label business
29. Innovative marketing strategies for book retailing in India
30. The Crossword Book Award
31. Exhibit X- Crossword Book Award winners
32. Shop-in-shop model
33. Investment in an ERP
34. Design Innovation – High-and low-impulse sections, Adjacencies
35. Crossword – Store Formats
36. Competitor Oxford’s – Store Formats
37. Exhibit XI: Retailing formats available in India
38. Summary of Financial Performance of Crossword Bookstores (2007-08)
39. Competitor Analysis – – Crossword vs. Oxford Bookstore
40. Crossword – Store Locations in India
41. List of major book retailing chains in India
42. Exhibit XII: Book Exports to India from the UK and the USA, 2000–2006
43. Exhibit XIII: India – Lifestyle, Demographic and economic indicators
44. Exhibit XIV: India’s income classes (1994-2006)
45. Exhibit XV: Organized Retail Penetration in India across categories
46. Popular Book and Author choices in India
47. Crossword – Best of 2008 list
48. Overview of the U.S. Bookstore industry
49. Questions for Discussion

Case Study Keywords: Organized Book Retailing, Crossword, Shopper’s Stop, Landmark, Oxford bookstores, book retailing in India, leading bookstore, retail formats, R Sriram

Case Questions for Discussion

1. “You can’t take books as any other commodity. If every store has the same kind of books, what’s the fun? In this business you have to know how to select books and build customer relationship.” – How did Crossword change the book retailing scene in India? Analyze the growth of Crossword as a world-class book retailer.
2. Compare and contrast your experience from your visit to a local bookstore to the innovative services being offered by Crossword at its stores. What can Crossword do different to add more value to its customers?

Case Snippets/Updates:

• Crossword Bookstores Ltd. is a wholly owned subsidiary Company of Shopper’s Stop Ltd – India’s leading department store chain. Crossword has 55 stores across 11 cities in India.
• In 2006, Businessworld rated Crossword as the 6th Most Respected Retailer in the country
• In Dec 2009, Crossword launched its 55^th store in India. The store, launched in Hyderabad was the 5^th one in the city by the leading lifestyle bookstore chain.
• According to Assocham, an industry chamber, organized retail in India accounts for $9.23 billion (around Rs 42,000 crore). This is around 5% of the overall retail market. This figure will reach $13 billion (approx. Rs 60,375 crore) by 2010.
• Organized book retail in India: Organized retail has only a 7% share in the approximately Rs 3,000 crore Indian book retail industry. According to Technopak, the contribution of book retail is only about 1% to the overall retail industry and is expected to grow by approximately 15% yearly.

The focus of this case study is the supply chain of fast-fashion giant, H&M. H&M – the world’s third-largest retailer by sales – has grown into a profitable force in the global apparel market by offering clothing that is seen as both fashionable and reasonably priced. This case discusses the supply chain management practices of H&M and how it responds quickly to changing fashion trends by renewing its lines. H&M’s logistics, inventory management process, design collaborations, sales channels, online branding and best price strategy are briefly covered.

Table of Contents

1. Introduction – Fast Fashion and Supply Chain Management
2. Background Note
3. H&M Quick Facts
4. Elements of H&M’s Innovative Supply Chain
5. Double Supply Chain



6. H&M’s Three Sales Channels
7. Logistics
8. Efficient Central Distribution Center
9. H&M’s Best Price Strategy
10. H&M’s rapid reaction supply chain – Flexible Purchasing and the ICT platform
11. Branding online and the Virtual retail experience
12. Design Collaborations
13. ‘The shock of the new’ every day – Building a continuous consumer supply chain
14. Exhibit I: H&M’s Growth (1974 – 2007)
15. Exhibit II: H&M’s Global Expansion
16. H&M Timeline
17. H&M’s Financial Performance Summary (Revenue and Net Income)
18. Exhibit VI: Comparison with major global specialty clothing retailers
19. H&M: Sales Graph by country, 2007
20. H&M: Store Locations, 2007
21. H&M: Sales by Country, 2007
22. Questions for Discussion

Case Study Keywords: Hennes and Mauritz, H&M, Supply Chain Management, SCM, Erling Persson, rapid-reaction, Madonna and Kylie Minogue, Rei Kawakubo, founder of the Comme des Garcons fashion chain, Zara, Gap, Apparel Retailing Case Study, Logistics and Distribution, IT enabled supply chain, supply chain integration, information sharing, inventory management, fast fashion, continuous consumer supply chain, best price strategy, major global specialty clothing retailers, Design Collaborations, sales channels

Case Questions for Discussion

1. In the past, apparel pipelines in the fashion industry have infamously been long, complex and inflexible. How did H&M improve its buying cycle and responsiveness of its supply chain?
2. “In modern retailing it is the supply chains that compete rather than companies.” Support this statement using examples from H&M’s supply chain and business model.
3. Which of the following do you think is the driver of fast fashion that has a distinct impact on the supply chain – the Manufacturer, the Retailer or Consumer Demand?

Case Updates/Snippets

• Reduced time to market – Photos of fashion shows are available online immediately after a show. This has enabled fast-fashion retailers like Topshop and H&M to cut the time span between catwalk and store. Designs of luxury brands can be interpreted to the general public quicker than before. Earlier, it took months for retailers to interpret designs by luxury labels for the general public. Many designers feel that this has led to shoppers desiring for frequent refreshing of stock.

1. Introduction
2. Background Note
3. Exhibit I: H&M’s Growth (1974 – 2007)
4. Exhibit II: H&M’s International Expansion
5. H&M’s Supply Chain
6. Exhibit III: H&M’s Best Price Strategy
7. H&M’s Financial Performance Summary (Revenue and Net Income)
8. Exhibit IV: H&M’s Three Sales Channels – Stores, Internet and Catalogues
9. Exhibit V: Table showing some major retailers with # of stores in Japan
10. Exhibit VI: Comparison with major global specialty clothing retailers
11. H&M Quick Facts – Brief Company profile – Revenues, Industry, Employees, Operations, Total Stores, Sales Channels, Major Competitors, Major Brands/Labels, Business/Growth Strategy, Key Executives
12. H&M’s Entry Strategy into Japan
13. Hurdles when entering the Japanese market
14. Channel Issues – Will H&M’s strategy to go alone work in Japan?
15. Product Quality Issues — Will H&M’s fast fashion work in Japan?
16. Design Collaboration, Designer Brands
17. Understanding the Japanese consumer – group oriented culture, the price factor and the Japanese H&M fan club
18. In conclusion
19. Additional Reading and References

1. Introduction

"It has been H&M’s dream to open in Japan. I am very proud to say that we now have our very first store in Tokyo. Japan is a very strategic and exciting market with great fashion awareness. We hope that we can offer our Tokyo customers added value through fashion and quality at the best price. We’re not in a hurry in Japan but we see huge potential if we succeed. We’ll go step by step."
-Rolf Eriksen, CEO of Hennes and Mauritz at the ceremony to open the Japan flagship store.

"Our business concept is really what attracts the H&M customer: Fashion and quality at the best price. Because we do carry all these different lines in our stores, we allow our customer to address [his or her] personality, and that’s really important."
- Karen Belva, public relations manager and spokesperson of H&M in 2002.

"With H&M’s opening, everybody – the Gap and Zara – will have come to Japan"-
Tadashi Yanai, Chief Executive, Fast Retailing, referring to Inditex’s Zara apparel chain.

In April 2007, Stockholm-based Swedish fashion giant Hennes & Mauritz (H&M) opened its first flagship store in China. About a year later (in September 2008), this strategic move was followed by another first H&M outlet in Tokyo, Japan, the world’s second-largest economy. The H&M store – a four-storey shop was strategically located just a few buildings down from competitors Zara and Gap Inc stores. The new store with a floor space of more than 1,000 square meters was first in a series of stores that H&M planned to open in Japan. The world’s No. 3 clothing retailer had aggressive plans to open stores in Japan, as well as sites in regional shopping centers.

With the European markets saturating, H&M was pursuing a rapid international expansion strategy. But the timing of H&M’s entry strategy into Japan, especially when the economy was struggling with recession and customers were tightening their purse strings was open to discussion. Besides, Japan was regarded as one of the world’s most competitive fashion markets. Market reports also suggested a declining market for clothing and footwear. Some observers called it the toughest trading conditions in decades. However, H&M was confident of differentiating itself and competing with expensive brands like Christian Dior, Giorgio Armani and Chanel, as well as the more reasonably priced Gap and Japan’s hugely popular Uniqlo chain.

Background Note

H&M was founded in 1947 by Erling Persson, a salesman from Västerås – a small town in Sweden. He began his career working for his father delivering cheese to restaurants in Stockholm on a bicycle. He was attracted by the concept of clothes stores selling stylish garments at low prices when he once visited the U.S. He was amazed at the success of retailers like Macy’s in New York. He opened a similar store in Västerås selling clothes for women. He named the store ‘Hennes’ which stood for ‘hers’ in Swedish…

…Today, H&M is the world’s third-largest retailer by sales with around 1,600 stores in 32 countries with 68,000 employees. In the past two decades, H&M grew at an average rate of 20% annually. It managed to grow quickly into the world’s third largest clothing retailer by offering clothing that is seen as both fashionable and reasonably priced. It made its mark on the apparel industry, mixing the latest trends with fashion classics. H&M is popularly known as the king of “fast fashion” and the purveyor of quick-to-market trendy clothing. H&M’s business model is based on "Fashion and quality at the best price."

Will H&M be successful in Japan?

"I believe that the interest in a new change would be big in Japan. It’s one of the biggest countries we have entered. If we succeeded as we have done in all the other countries,[Japan] could be a huge market for H&M."- CEO, H&M

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Related Case Studies

• H&M’s Low-cost, High-fashion Supply Chain

Case Keywords: Hennes & Mauritz, H&M, Entry Strategy, Japan, Expansion into global markets, International Business, Competitive Strategies, local culture, Japanese apparel market, Fast Fashion, Best Price Strategy, H&M’s Three Sales Channels, Channel Issues, Product Quality Issues, Design Collaboration, Designer Brands, Japanese H&M fan club, Erling Persson, Zara, Uniqlo, Fast Retailing, Supply Chain

Case Updates/Snippets

• H&M in Asia- H&M has over 1,800 shops in more than 30 countries. H&M’s principal markets are in Germany, the United Kingdom and Sweden. In Asia (2009 figures), H&M has four stores in Japan, 15 stores in China and 6 stores in Hong Kong. It plans to set up its first store in Korea, sees potential in Taiwan and wants to up its store count in China by 30% in 2009. H&M’s top management considers Asia to be the newest and biggest market for H&M in future.
• H&M’s business model and focus on low-cost, fast-moving fashions, and geographic spread helped it to weather the economic downturn better than its competitors. During 2009, the Swedish fashion retailer H&M was the top-ranked global fashion retailer.
• In fiscal year 2009, H&M added a total of 250 new stores, 25 more than originally planned.

1. Introduction
2. Wal-Mart – Company Background
3. Sam Walton and Wal-Mart’s culture
4. Exhibit: Unique values that support Wal-Mart’s three basic beliefs
5. The 10-Foot Rule – Wal-Mart’s secret to customer service
6. The Sundown Rule
7. Open-Door Policy
8. Servant Leadership
9. Rank-and-file profit sharing
10. Grass Roots Process – Associate Opinion Survey
11. The Wal-Mart Cheer
12. Wal-Mart’s efforts to make the company an even better place to work



13. Employee Development programs
14. Combining Technology and empowerment
15. Awards and Recognitions received by Wal-Mart
16. Wal-Mart – Timeline
17. Wal-Mart – Quick Facts
18. Wal-Mart – Various Store Formats
19. Wal-Mart – International operating formats
20. Sam Walton’s ten rules for building a business

Introduction

"Wal-Mart continues to execute well and deliver solid results in a challenging economic environment"- A Goldman Sachs analyst

"What makes ordinary people do extraordinary things?" Sam Walton once asked. "Aren’t we a group of ordinary folks? We really are. And I think we, together as a team, have done extraordinary things. We’ve all grown, we’ve all accomplished much more than any of us ever thought that we could."- Sam Walton, founder of Wal-Mart

"We are a people association supported by one million associates. Much of what we do centers around individual stores. We’re in a labor-intensive customer service business. Associates can’t treat customers as number one if they are not treated that way." – Susan Oliver, Wal-Mart’s SVP of human resources in 2005

In August 2008, Wal-Mart Stores announced that its profit rose 17 percent in the second quarter and that it is raising its full-year forecast. In a challenging economy, the world’s largest retailer benefited from low prices and its moves to cut costs. Wal-Mart’s President and Chief Executive Lee Scott said that, "While inflation and higher fuel costs are pressuring suppliers, retailers and customers worldwide, we’re confident that Wal-Mart is well positioned for this economy.” Chief Financial Officer Tom Schoewe attributed the better second-quarter profits to tighter inventory controls, which led to fewer markdowns on merchandise. One of Wal-Mart’s goals – which it successfully met – was keeping inventory growth at half the rate of its sales growth which it successfully met. In contrast, sales at department stores and specialty retailers were lagging behind.

What is the key to such good results? Wal-Mart overhauled its strategy. Instead of announcing any price increases to cope with the tough economy, the company slashed its expansion plans. It refocused on lower prices, improved the mix of merchandise offered, cleaned up its stores and provided friendlier and faster customer service. But there is more to Wal-Mart’s success over the years than just tighter inventory controls and lower prices.

Wal-Mart is truly a great company. A strong organizational culture is the foundation for making a good company a great one. The secret to Wal-Mart’s success has long been attributed to its strong culture. Analysts like Jim Collins believe that Wal-Mart had the kind of ‘cult-like’ culture that is shared by all great companies. Wal-Mart employees are referred to as ‘Walmartians’ which is a sign of a unique culture shared by them. This culture is responsible for a company of this magnitude to be able to sustain its entrepreneurial spirit decade after decade.

Since its early days, Wal-Mart achieved remarkable growth rates and was the first trillion dollar company in the world. In 1999, Wal-Mart became the largest private employer in the US with 1,140,000 Associates. But with amazing success also came criticism. Wal-Mart was sued many times and even held the record for being sued the maximum at one time. Its practices and culture were held responsible for killing small local retailers. It was also criticized for gender-based discrimination, its overtime policies and using sweatshop products.
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1. Introduction – eBay CEO Meg Whitman plans to retire
2. Meg Whitman – Early years and Career Growth
3. Meg Whitman and Leading eBay
4. Hiring the right people
5. Quickly understanding the new business model
6. Leading eBay’s IPO – a hands-on approach
7. Changing eBay’s policy
8. Building one of the most powerful e-commerce systems in the world
9. Focus on Metrics
10. Customer Focus – ‘Voice of the Customer’ program
11. Strategic Decision Making
12. Exhibit I: eBay stock performance graph
13. Exhibit II – Quick Facts/Key Information on eBay
14. Exhibit III – Awards Received By Whitman
15. Exhibit IV – Major Awards Received By eBay

Case Study Abstract

Introduction – eBay CEO Meg Whitman plans to retire

“In the beginning, I was certainly not an entrepreneur who came up with the idea, but I think I was fairly entrepreneurial in trying to figure out how to bring that idea to life and build a backbone for the company that could take it to the next level.“
- Whitman commenting on her journey from a novice to a leader in the dotcom world.

At the beginning of the year 2008, Margaret Whitman (Whitman), the chief executive (CEO) of eBay, announced plans to retire so as to breathe fresh life into the company and also provide a much needed radical reinvention of eBay. By March 2008, Ms. Whitman, 51, had served in the position for 10 years. Whitman joined eBay as chief executive in 1998. She was popularly known as Meg Whitman and ‘darling of the Internet’. In 2007, she accepted the Lifetime Achievement Award for the community of buyers and sellers that make up eBay. Whitman ranked 22nd on Forbes.com’s list of the world’s most powerful women. In October 2002, Fortune Magazine ranked Whitman, as the world’s third most powerful women in business, after Carly Fiorina and Oprah Winfrey.

However, some analysts called Whitman old-fashioned, a low-key manager and a ‘slow-footed CEO’ because even during the dotcom boom, she avoided risk and focused on financial fundamentals. Some felt that she did not possess the ‘star quality’ of Carly Fiorina, CEO of Hewlett-Packard, or the electric energy and charisma of Jeff Bezos, the founder of Amazon.com. But the performance of eBay silenced her critics. When many dotcom businesses crashed in the late 1990s and early 2000s, Whitman steered eBay towards success. EBay was the only Internet Company that had registered continuous growth and profits since its inception in 1995. Under her leadership, eBay’s revenues and profits had doubled every year. With her strong belief in eBay’s business model and its customers, revenues increased from $4 million to $1 billion by late 2002. She truly succeeded where many had failed.

Meg Whitman – Early years and Career Growth

Margaret C. Whitman, the youngest child of a Wall Street executive and popularly known as Meg Whitman was born in August 1956. She grew up in Long Island, New York. She was smart, studious and academically oriented since childhood. She graduated in Economics from Princeton University. Her penchant for business was evident when she had The Wall Street Journal delivered to her dormitory at Princeton University – unusual during the disco era of the 1970s. The business inclination took her to Harvard University, where she received her Masters in Business Administration.

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Case Study Keywords: eBay, Meg Whitman, Leadership case study, Internet auction market, darling of the Internet, powerful women in business, entrepreneurship, eBay’s business model, Pierre Omidyar, eBay’s IPO and policy decisions, metrics and measuring performance, Customer Focus – ‘Voice of the Customer’ program, ‘Buy It Now’ feature, iBazar, PowerSeller program, regional auctions, eBay Motors

1. Introduction
2. CCD – an established brand image in India
3. CCD’s wide network – the anytime, anywhere cafe
4. Exhibit 1: Total number of stores/cafes of Café Coffee Day and its competitors
5. 1996 – 2008, CCD’s first store launch to building a strong competitive advantage
6. Innovative formats to woo new customers
7. Reinforcing brand image with the cluster approach strategy
8. Company-owned stores instead of franchises to not dilute brand value
9. Lower pricing and ‘no-segmentation’ approach
10. From a largely south Indian retail chain to a national brand
11. Co-branding
12. Reinvigorating the brand and taking it to the next level
13. Projecting a feeling of togetherness
14. Silent brew masters – special employee program
15. Background Note (History of Cafe Coffee Day)
16. Café Coffee Day – Quick Facts
17. Exhibit 2: Various store/café formats of Café Coffee Day
18. Exhibit 3: Different divisions of Café Coffee Day
19. Exhibit 4: Brand Logo of CCD and its significance
20. Exhibit 5: Sample Consumer profile by Age group at Café Coffee Day

Case Study Abstract

This case study covers the following issues:

• Examine and analyze Cafe Coffee Day’s brand strategy in India, its success and future challenges

Introduction

“CCD today has become the largest youth aggregator, and from a marketing stand point, the success has come by focusing on the 3As: Accessibility, Affordability and Acceptability.”- Bidisha Nagaraj, the Marketing president of Cafe Coffee Day

“Although demographically, a typical consumer would be male or female between 15-29 years of age, belonging to middle or upper middle class, we call our consumers young or young at heart. We are about juke boxes, good and affordable coffee and food. The brand fit is with youth or the young at heart. So we often look out for brands that are aspirational in nature.” – Sudipta Sen Gupta, Marketing head, Café Coffee Day.

CCD – an established brand image in India

Cafe Coffee Day (CCD) has an established brand image in India and ranks No 2 in the Brand Equity’s Most Trusted Brands 2008 survey – in the food services category. Rival Barista is at No 5. CCD has been able to make a connection with the Indian consumers, predominantly among the youth. CCD is the market leader in India and was awarded the ‘Exclusive Brand Retailer of the Year’ by ICICI Bank in its Retail Excellence Awards 2005 for the organized retail sector.

CCD’s wide network – the anytime, anywhere cafe

CCD has been able to make its brand presence felt through the sheer number of stores. CCD has 620 cafes at present and it has ambitious plans to launch more than 900 cafes by the end of the current financial year. This means launching one store every other day which is not surprising from a company which launched a cafe (in 2005) in Vienna, the coffee capital of the world. CCD also has three cafes in Vienna, and two in Karachi, Pakistan. Lagging behind CCD in the Indian market, Barista has about 200 cafés, Java Green (around 75 cafés) and Mocha (around 25 cafés). The Indian organized sector has potential for around 5,000 cafés but fewer than 1,000 cafés exist currently.

Exhibit 1: Total number of stores/cafes of Café Coffee Day and its competitors

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Case Study Keywords: Cafe Coffee Day, CCD, Amalgamated Bean Coffee Trading Company Ltd., ABCTCL, V G Siddhartha, Café Beat, Brand Equity’s Most Trusted Brands 2008 survey, Bidisha Nagaraj – Marketing president, brand image, brand management, Exclusive Brand Retailer of the Year, Barista, Java Green, Mocha, company owned stores, national brand, south Indian retail chain, Chikmagalur, Co-branding, international brand consultant Landor, Silent brew masters – special employee program, a feeling of togetherness, Coffee Day Exports, Coffee Day Xpress, Coffee Day Take Away (coffee vending machines), Coffee Day Fresh ‘n Ground (ground coffee retail outlets), Coffee Day FMCG (packaged filter coffee powder)

Case Updates/Snippets

• CCD’s vision: To be the only office for dialogue over a cup of coffee
• CCD’s Expansion Strategy: Cafe Coffee Day has around 821 outlets in 115 cities in India. CCD plans to take the total number of cafes to 1,000 by March 2010 and double it to 2,000 by 2014. In October 2009, CCD announced that it will increase its international presence from the current six outlets in Vienna and Pakistan to a total of 50 stores across Europe and Middle East in two years time.
• International coffee chains in India – Recent entrants in the Indian market include Gloria Jeans, Coffee Bean & Tea Leaf and Illy Café.
• Operating Formats – Café Coffee Day operates in both regular (Coffee Day Square) and premium formats (Lounge).
• Highway Cafes: In 2004, CCD began cafes on highways. By 2009, the total number of Café Coffee Day highway cafes rose to 30 owing to the overwhelming response it received from travellers.
• CCD’s new brand identity: In October 2009, CCD unveiled a new brand logo, a Dialogue Box, to weave the concept of ‘Power of Dialogue’. In accordance with this new brand identity, CCD planned to give all its existing outlets a new look by the end of 2009. Cafés would be redesigned to suit different environments such as book, music garden and cyber cafes suitable for corporate offices, university campus or neighborhood. The change plan included new smart menu, furniture design, among others.
• Coffee consumption in India is growing at 6% per annum compared to the global 2% plus.
• Milk production in India – India is the largest producer and consumer of milk in the world with 98% of milk being produced in rural India.
• Coffee production in India – India ranks sixth as a producer of coffee in the world accounting for 4.5% of the global coffee production. India has about 170,000 coffee farms cultivating around 900,000 acres of coffee trees.
• CCD’s International Expansion Strategy – In June, 2010 Cafe Coffee Day chain acquired Emporio for Rs 15 crore. Emporio is a Czech Republic-based café chain present at 11 locations. CCD plans to co-brand the chain as Café Coffee Day Emporio and later transition it to Café Coffee Day. CCD is also present in Vienna. The company wants to expand in the East European region, West Asia and the Asia-Pacific region.
• Cafe Market in India – According to Technopak Advisors, the café market in India is estimated at $150 million (Rs 678 crore) and growing at 40 per cent over the last five years.

1. Introduction
2. eBay – Company Background
3. Pierre Omidyar – The founder of eBay
4. Early Days – From AuctionWeb to eBay
5. Meg Whitman and the growth of eBay
6. eBay – Quick Facts
7. eBay’s International Expansion
8. Exhibit I – eBay’s Net Revenue by Territory
9. eBay and its entry in Japan
10. Exhibit II – Yahoo Japan and eBay comparative data (in 2001)
11. Why eBay failed in Japan?
12. Stiff competition from Yahoo Japan
13. Not adapting to local culture and practices
14. No first-mover advantage
15. Low-key Marketing and Advertising
16. The return of eBay to Japan
17. Questions for Discussion
18. Exhibit III: Selected Financial Data for five years
19. Exhibit IV: eBay stock performance graph

Case Abstract

Issues/Information Covered

• eBay’s entry strategy in Japan
• eBay company background
• Why eBay failed in Japan?

Introduction

“We were late to the market and entered when Yahoo!/Softbank had gained a lot of momentum through its Internet portal. eBay is committed to the Asian market and may return to the Japanese market when economic conditions are better and when they have a strategy that addresses the issues they currently face in Japan.”
– an eBay spokesperson in 2002.

Ever since its entry in Japan in 2000, eBay, the US online auctioneer was struggling. By the end of 2001, many analysts felt that eBay Japan should admit defeat and sell a majority stake in the venture to a bigger local player. But even then, eBay would face an uphill struggle. In February 2002, eBay, announced its decision to exit from the Japanese market after it failed to gain a foothold in Japan lagging behind market leader, Yahoo Japan. The company also announced that its Japanese language site would be closed and 17 jobs would be cut. All its Japanese customers would be directed to its US based auction operations/site. At the time, eBay was the number one auction site in all of the other 18 countries in which it operated and one of the few successful internet companies, having seen its profits soar even amid the dot-com implosion. eBay’s strategy in Japan had failed. Japan was a rare failure for the company.

Japan was critical to eBay’s success because it was the world’s second-largest Internet market. The gap had to be closed soon otherwise Yahoo Inc. could easily beat it in the rest of Asia. Yahoo Japan was the No. 1 or No. 2 portal everywhere except China. In December 2007, Yahoo Japan and eBay made a deal to link their auction sites and make it easier for their respective users to bid on and buy goods available on each other’s sites. A new website by name “Sekaimon” (‘gateway to the world’ or ‘global shopping’ in Japanese) – www.sekaimon.com – was launched in December. The site allowed Yahoo Japan users to bid on items listed on eBay’s US site using their Yahoo Japan ID. The deal made cross-border bidding easier and gave eBay another chance to woo Japanese consumers…

Keywords: eBay, Japan, International Expansion Strategy, Entry Strategy, local culture and practices, Yahoo Japan, Pierre Omidyar, Meg Whitman, first-mover advantage, AuctionWeb, Sekaimon, Internet Auction, Online selling and bidding, Online Marketplaces, PayPal, Skype, Half.com, Rent.com, Shopping.com, StubHub, Alando AG, iBazar S.A., NeoCom Technology Co Ltd., EBay’s international operations, online shopping business, Sanook, TOM Online

This leadership case study on Warren Buffett, Chairman of the Berkshire Hathaway, outlines the leadership (entrepreneurial) skills of the world’s most successful investor. The case covers Buffett’s childhood years, the initial years of his career and how he went on to become one of the richest men in the world with his investing skills. His role in building Berkshire Hathaway and his investing style (understand the investment tenets followed by Buffett) is also briefly covered.

Case Study Contents

1. Introduction
2. Warren Buffett – Early Days
3. Buffett’s tenets of buying a business or stock
4. Buffett’s Investing Strategies
5. Buffett’s Management Style and Criticism
6. Questions for Discussion
7. Exhibit 1: Berkshire Hathaway – Operating companies – Insurance and non-insurance businesses
8. Exhibit 2: Selected Financial Data for the Past Five Years
9. Exhibit 3: Subsidiaries of Berkshire Hathaway
10. Exhibit 4: Common Stock Investments by Berkshire Hathaway (12/31/2007)
11. Exhibit 5: Berkshire’s Corporate Performance vs. the S&P 500

Introduction

Warren Edward Buffett (Buffett) is the 77-year-old CEO of Berkshire Hathaway Inc. and regarded by many as the world’s greatest investor. He is among the richest persons in the world and his estimated net worth is about $62 billion. He is known for his investing style “value investing” and is the most famous disciple of value investing’s inventor Benjamin Graham .

A simple, honest man with grandfatherly looks, Buffett is considered an intellectual genius who makes rapid decisions and decides on a major purchase with just a few days of research. He has figured consistently among the top five in the Forbes magazine’s list of the 400 richest Americans (the elite Forbes 400). In the early 90s he was number one and was the only person in the top five ……

Case Updates/Snippets

• Buffett’s Biggest Acquisition – In November 2009, Buffett acquired US railroad company Burlington Northern Santa Fe Corp (BNSF) in a USD 26 billion takeover. BNSF is one of the biggest US transporter of products such as corn and coal. Buffet’s company Berkshire had already owned 23% of the nation’s second-largest railroad operator. This acquisition was the biggest Buffett had made in his career of 44 years running Berkshire. Buffet believed that the acquisition was a good asset for Berkshire to own over the next century as it was a business that was going to be around for 100 or 200 years.
• In the 1960s, Warren Buffett bought Berkshire Hathaway, a working textile mill in New England. Later, he shut down production realizing that it could never be a profitable business. However, he retained its name for his holding company. Berkshire has major investments in companies (and household names) such as beverage giant Coca-Cola (1988), US bank Goldman Sachs (2008), the world’s largest retailer Wal-Mart, Nestle and oil giant Exxon Mobil..

Keywords: Warren Buffett, Leadership, Investment leader

1. Introduction
2. Exhibit I: Stock performance graph of Starbucks for past five years
3. The Starbucks Story
4. Starbucks – Early Days and Background Note
5. Building of the Starbucks Brand
6. Entry into International Markets
7. Starbucks – Quick facts
8. Starbucks – Timeline
9. The Restructuring Moves
10. Reorganization
11. No warm breakfast sandwiches but new beverages
12. Transforming the in-store experience
13. Renewed customer rewards program and a social network, my starbucksidea.com
14. Retraining Employees – The Baristas
15. Slowing down expansion in the U.S.
16. Job Cuts
17. Reorganizing the Entertainment Unit
18. Questions for discussion
19. Exhibit II: Selected Financial Data

Introduction

“Fiscal 2008 is a transitional year for Starbucks and, while our financial results are clearly being impacted by reduced frequency to our U.S. stores, we believe that as we continue to execute on the initiatives generated by our transformation agenda, we will reinvigorate the Starbucks Experience for our customers.”

- Howard Schultz, Chairman, President and Chief Executive, Starbucks.

Starbucks, the leading retailer, roaster and brand of specialty coffee in the world, has been struggling amidst a faltering economy, its own rapid growth (international expansion and growing presence in 44 countries) and increased competition from cheaper rivals. In the first three months of 2008 its net income fell to $108.7m (£54.7m) down 28% from the same period of 2007. Starbucks wants to turnaround its business by providing customers with the distinctive ‘Starbucks Experience’ and building on Starbucks legacy of innovation. As Starbucks shares have tumbled over the last year, (see exhibit I) a very important question is: Is Starbucks still the romantic coffee shop it used to be?

Starbucks has struggled to maintain its differentiation in the face of growing competition. The company had 125 stores when it went public in 1992, now has over 15,000 stores in 44 countries. Customers are simply not visiting Starbucks stores at the rate they once did. In recent times, Starbuck’s has suffered the effects of the crisis in the housing market, which has put a pinch on sales. Starbucks has also suffered from rising costs of storefront space and wholesale prices for coffee and dairy products. In the second half of last year, Starbucks’s same-store sales — a significant number watched by Wall Street — declined for the first time.

Howard Schultz (Schultz) returned in early January as Chairman and Chief Executive and announced a series of changes as part of Starbucks's Turnaround plan. …. This management case study highlights Starbucks strategy to turnaround its business by providing customers with the distinctive ‘Starbucks Experience’ and building on the Starbucks legacy of innovation

Keywords: Starbucks, Turnaround Strategies, Corporate Restructuring, Coffee Retailing, Specialty Eateries, Howard Schultz, Baristas, retraining employees, mystarbucksidea.com, customer rewards program

Case Updates/Snippets

• Starbucks “Via” the instant coffee market – In September 2009, Starbucks unveiled a brand of instant coffee called “Via” across all U.S. locations made with 100% natural roasted arabica coffee. The company believes the “ready brew” coffee will change the way people drink coffee. The global instant coffeee business is valued at $21 billion and instant coffee constitutes 40% of overall global coffee sales.
• Starbucks CSR – Starbucks buys 40% of its coffee beans through fair trade. As its commitment to Corporate Social Responsibility, the company pays a price well above the market rate to poor and small growers.
• Coffee Drinking Trends – The National Coffee Association’s 2009 study of drinking trends revealed that a majority, more than 80% of coffee drinkers get their coffee at home and only 18% drink at work. Just 5% of respondents drink their coffee at restaurants and 10% take a cup with them during their commute.
• Great business turnarounds – In the final three months of 2009, Starbucks posted a 4% growth in total sales and a 200% rise in profits, to $353m. In what is being seen as the one of the great turnarounds of the decade, earnings of Starbucks have jumped to 241.5 million US dollars (£149 million) in the quarter – more than three times the 64.3 million dollars (£39.7 million) seen a year earlier. In 2008, Schultz’s decision to resume the roles of CEO and President, has certainly helped the turnaround. Schultz had relinqu­ished the position in 2005.

Related Articles:

• Starbucks – Storm in an instant coffee cup
• Too many Starbucks stores for U.S. coffee Drinkers?
• Starbucks for a dollar, Storm in a coffee cup?

1. Introduction to Unilever's Restructuring Initiatives
2. History of Unilever
3. The 1880s – Lever & Co and Sunlight Soap – A revolutionary product
4. Lever Brothers – Growth with acquisitions and new product introductions
5. 1930 – Unilever is born
6. Unilever – Rapid Growth with diversification
7. Unilever N.V. and Unilever PLC
8. Unilever's Path to Growth Strategy
9. Key focus areas of the Path to Growth Strategy
10. Organizational Restructuring
11. Foods and Home and Personal Care as two separate Global Units
12. Unilever's Brand Restructuring
13. Brand focus strategy ‘nourishing the core’
14. Major components of Brand Strategy under PGS
15. Brand Acquisitions and Consolidation Strategy
16. Brand Disposal Strategy at Unilever
17. Marketing and Distribution
18. Advertising
19. Simplifying Business Processes
20. Supply Chain Restructuring
21. Questions For Discussion
22. Exhibit 1: Unilever – Turnover and profit for the last 12 years
23. Exhibit 2: Sales Growth of Unilever
24. Exhibit 3: Comparative Data on Unilever’s close competitors
25. Exhibit 4: List of Unilever’s Major Brands

Case Study Abstract

The case study highlights Unilever’s business strategy focusing mainly on its restructuring initiatives. The case analyzes in detail the key elements of Unilever’s restructuring plan ‘Path to Growth Strategy’ initiated in early 2000.

Case Study Keywords: Unilever, organizational restructuring, FMCG, fast moving consumer goods, Path to Growth Strategy, organizational structure, branding strategies, supply chain management, corporate restructuring, brand portfolio management, Lever Brothers, Foods and Home and Personal Care categories, Patrick Cescau, Anglo-Dutch consumer product company, Dove soap, Lipton tea and Ben & Jerry’s ice cream, William Hesketh Lever, Sunlight soap, Margarine Unie, P&G, Tide, Brooke Bond and Faberge/Elizabeth Arden, Simplifying business processes, Keki Dadiseth, Snuggle, Vaseline, Close-up, Ponds, Dove, Persil, Bird’s Eye, Knorr, Sunsilk, Calvin Klein, Lipton, Magnum and Omo, Brand focus strategy nourishing the core, • Expanding brands into new markets, Brand Acquisitions and Consolidation Strategy, Slim-Fast Foods Co, Bestfoods acquisition, Brand Disposal Strategy, Supply Chain Restructuring, Management Case Study

1. Introduction
2. CSR Approach and Initiatives
3. Tesco’s ‘Computers for Schools’ initiative
4. CSR KPIs with Tesco’s Steering Wheel framework
5. ‘Every Little Helps’ Approach and CSR Recognitions
6. Tesco and the Environment
7. Carbon calorie counter and carbon footprint labeling measure
8. Reducing carbon emissions from transporting goods
9. Exhibit: List of CSR Initiatives by Tesco
10. Regeneration partnerships
11. Benefits of regeneration partnership



12. Tesco’s Ethical trading policy
13. Tesco – Company Background
14. Tesco – History
15. Tesco – Company Timeline
16. Store Formats
17. Tesco: Quick Facts
18. Financial Highlights – Five Year Summary
19. Exhibit: Tesco Corporate Responsibility Review 2007 – Corporate Responsibility Key Performance Indicators (KPIs)
20. Related Reading
21. Questions for Discussion

Case Study Abstract

The focus of this case study is the Corporate Social Repsonsibility (CSR) initiatives of Tesco, UK’s biggest retailer.

1. Introduction

“Corporate Social Responsibility makes sound business sense. The key to our approach is our integrated business system, where environmental and social performance is managed alongside financial performance. This means we have a year-on-year program of focused action to drive improvement.” – Terry Leahy, Group Chief Executive, Tesco in “Tesco CSR Review,” 2001-02

Corporate Social Responsibility (CSR) at Tesco (UK’s largest retailer and one of the top supermarket operators in the world) is an important part of its corporate structure. Tesco’s CSR initiatives across several internal and external activities include local regeneration projects, being environmentally conscious, and community issues. A special focus is given to recycling, use of organics, use of energy and water, as well as its charity and community initiatives. These efforts reflect in its day to day activities.

Every year Tesco publishes its ‘Corporate Social Responsibility Review’ outlining its approach, implementation and policies in the coming year and the accomplishments in the past year. (Refer Tesco Corporate Responsibility Review 2007 – CSR KPIs on page 12) Tesco’s CSR strategy is basically “to earn the trust of our customers by acting responsibly in the communities where we operate, by maximizing the benefits we bring and working to minimize any negative impacts.” Tesco’s board members discuss the CSR strategy with performance reviews every quarter. The board and the executives receive quarterly updates on CSR performance, using which future risks and opportunities are evaluated…

2. CSR Approach and Initiatives

Tesco can influence society at large owing to its size and scale of operations and it does so by encouraging its employees and customers to become more socially responsible. Tesco is of the view that it has a major role to play in promoting health food among its customers and strives to make health food available at affordable prices. The company has adopted several initiatives over the years to fulfill its responsibility to society. These include charity, fund raising for a cause and promoting education. These efforts are not limited to the UK but extend to other countries in which Tesco operates…

Case Study Keywords: Tesco, Retailing, CSR, Corporate Social Responsibility, corporate responsibility index, FTSE4 Good Index, Sport for Schools and Clubs Tesco, Carbon calorie counter and carbon footprint labeling measure, Kids Carbon Calculator, Regeneration Partnerships, Ethical Trading Policy, Steering Wheel Framework, Terry Leahy, Computers for schools, Environment, Every Little Helps approach, Business Ethics Case Study, Management Case Studies

Related Case Studies on TESCO

• Tesco takes on US Wal-Mart

Case Study Snippets/Updates

• Tesco, Europe’s biggest retailer is nicknamed the Big Brother of the shopping world.

Ryanair was the first budget airline in Europe, modelled after the successful U.S. low cost carrier, Southwest Airlines. Ryanair is one of the oldest and most successful low-cost airlines of Europe. This case study on Ryanair highlights its low fares business model, its business strategies and operations. The case further incorporates the history and business description of Ryanair, its’ operations and challenges as a budget airline. Features and benefits of the low cost business model are also discussed.

Table of Contents

Introduction

• RyanAir: The ‘Southwest’ of European Airlines in 2007
• A year earlier…Ryanair, hedged fuel and a performance to envy
• Exhibit 1: Summary Table of Results and Key Statistics
• Exhibit 2: Ryanair Passenger Growth in Millions


History of Ryanair


• Ryanair’s initial efforts as a low-cost carrier
• 1990 – Restructuring at Ryanair
• The growth of Ryanair


Analyzing the Low-cost Business Model


• Ryanair Low Fares Strategy and Standardized Operational Model
• Advantages of using secondary or airports located outside city
• Lower Wage bills
• Ryanair.com and Online booking of tickets
• Paid-for extras – Sources of additional revenue
• The easyJet challenge
• Ryanair – Failed merger bid and other Controversies
• Ryanair / Aer Lingus merger failure
• Ryanair and EU
• Some low-fare carriers around the World
• Exhibit 3: List of Approved and prohibited mergers by the EU in the airline industry
• Exhibit 4: Features and Benefits of the Low Fares business model
• Exhibit 5: Comparative performance data of some major European LFA
• Exhibit 6: Oil Prices Comparison, 1994 – 2007
• Exhibit 7: Map of the European Union




• Questions for discussion

Introduction – RyanAir: The ‘Southwest’ of European Airlines in 2007

Ryanair, Europe’s biggest low-fares airline (LFA ) reported its third quarter results for 2007 with net profits dropping 27 percent compared to a net profit of 48 million a year earlier. Ryanair cited poor market conditions, fuel costs (oil prices at $90 a barrel) and concerns on recession in the UK and many other European economies for its current performance and not so strong future profit expectations. With average winter fares dropping almost 5 percent its’ underlying net profit in the three months to end December fell to 35 million euros ($52 million). Other factors that contributed included doubling of airport charges combined with reduction of winter capacity at Stansted , significant cost increases at Dublin Airport combined with longer sector lengths and staff costs which increased by 18 pct to 67 million euros. Ryanair’s net profit figure excluded a one-off gain of 12.1 million euros ($17.99 million) arising from the disposal of 5 Boeing 737-800 aircraft…

History of Ryanair

Ryanair was set up in 1985 and is one of the oldest and most successful low-cost airlines of Europe. In fact, Ryanair was one of the first independent airlines in Ireland. In 2001, many believed that Ryanair was like the Wal-Mart and Southwest Airlines of Europe. Ryanair transformed the Irish air services market where other airlines like Avair failed to compete with the more powerful national carrier Aer Lingus.

Ryanair’s initial efforts as a low-cost carrier

Ryanair began by offering low-cost no-frills services between Ireland and London. Ryan brothers – Catlan, Declan and Shane Ryan were the founding shareholders of Ryanair. Ryanair was set up with a share capital of just £1, and a staff of 25. Tony Ryan, their father and the chairman of Guinness Peat Aviation (GPA), an aircraft leasing company lent Ryanair its first airplane, a fifteen-seater turbo prop commuter plane. Ryanair’s first cabin crew recruits had to be less than 5ft. 2ins. tall so as to be able to operate in the tiny cabin of the aircraft. …Download full-text of this case study to read more.

Case Updates/Snippets

• Ryanair operates on more than 1,000 routes across Europe. Ryanair was founded in 1985 offering small flights from Ireland to England.
• Low-cost model in US – Ryanair’s entry in the US market – In 2008, Ryanair announced plans to operate in the United States. The plan includes forming a sister company that would begin servicing within three years. However, the start date has been delayed. Low-cost airline model attempts in the U.S. include Skybus in 2007 (which shut down within 10 months of operation) and Spirit Airlines (which shifted to the low-cost model in 2007).
• In recent years, fares have declined in the U.S. with budget carriers like Southwest Airlines and JetBlue Airways operating. However, the US airline industry has been struggling to match Europe where the cost of flying is very less.

The focus of this case study is the supply chain of the world’s largest retailer, Wal-Mart. Wal-Mart in recent years has struggled with its supply chain. The big question is: Will Wal-Mart be able to revive the competitive advantage it had in the past with its efficient supply chain? This case discusses the supply chain management practices of Wal-Mart over the years. A brief of Wal-Mart’s past distribution, logistics and inventory management processes is covered. The use of innovative Information Technology (IT) practices to enable the supply chain is discussed and highlighted. The benefits or competitive advantage Wal-Mart derived over the years from its supply chain management practices is also covered.

Table of Contents

1. Introduction – Can Wal-Mart sustain its Supply Chain Advantage?
2. Wal-Mart in US Retail Market
3. Wal-Mart – Company Background
4. Wal-Mart – Timeline



5. Wal-Mart: Quick Facts (Revenues, Total Employees and Stores, Competitors, Major Brands/Labels, Business/Growth Strategy)
6. MANAGING THE SUPPLY CHAIN – THE WAL-MART WAY
7. Pricing and Procurement Strategy
8. Supply Chain Integration through Product/Process Knowledge Sharing
9. Supply Chain Partnerships
10. Distribution Strategy
11. Logistics Management
12. Cross Docking
13. Inventory Management
14. Store Formats
15. Wal-Mart – International operating formats
16. Related Reading
17. Questions for discussion
18. View sample pages of this case study

Case Study Keywords: Wal-Mart, Supply Chain Management, Retailing Strategy Case Study, Logistics and Distribution, IT enabled supply chain, Information Technology, Supply Chain Partnerships, supply chain integration, information sharing, inventory management, retail store formats, cross docking, pricing and procurement, Sam Walton, discount stores, walmart.com.

Case Questions for Discussion

1. Wal-Mart’s focus on supply chain management is responsible for its leadership in the retail industry. Discuss the distribution and logistics practices adopted by Wal-Mart. How far has Wal-Mart’s supply chain contributed to its competitive advantage? Explain.
2. Companies that have significant buyer power and are very focused on exerting price pressure on their suppliers rather than seeking increased profitability through business process innovations. Support this statement with examples/best practices from your own field.
3. Wal-Mart has always used innovative information technology tools to supplement its supply chain. In a few words, explain how use of IT tools/enabled processes have benefited Wal-Mart. How has IT impacted you/your department?
4. What steps can Wal-Mart take in order to revive/sustain its supply chain advantage?
5. Wal-Mart invited its major suppliers to develop profitable supply chain partnerships. Discuss how good/bad is sharing knowledge/critical information with vendors/suppliers or even customers?
6. “It’s not a sale; it’s a great price you can count on every day to make your dollar go further at Wal-Mart.”, as quoted in the article, “Pricing Philosophy,” posted on www.walmart.com. Comment.

Other Case Studies on Wal-Mart

• Organization Culture at Wal-Mart
• Wal-Mart in Japan
• Tesco takes on US Wal-Mart

Case Updates/Snippets

• Wal-Mart’s new slogan – In September 2007, Wal-mart changed its slogan to “Save Money. Live Better.” Wal-Mart's earlier slogan for 19 years was “Always Low Prices.”
• Benefits of shopping at Wal-Mart – According to a study by research firm Global Insight, Wal-Mart saves American families $2,500 each year. This figure rose from $2,329 in 2004 by 7.3 percent.

This case study focuses on Tesco’s expansion plan and its entry strategy in the U.S. which places it directly against competitor and retail giant Wal-Mart.

Tesco in US Retail Market

UK’s largest retailer Tesco and one of the top supermarket operators in the world, plans to open a thousand-strong chain of discount stores in the US. Tesco plans to invest more than $250m (£120m) [$2.5 billion over the next five years] in its US business launch. This expansion plan and entry strategy places it directly against competitor retail giant Wal-Mart. Many UK retailers have found it difficult to survive or compete in the US retail market. The US retail market is most competitive in the world, a fact well-known to British retailers Sainsbury’s and Marks & Spencer which failed to attract US customers.

Case Study Contents

1. Introduction – Tesco in US Retail Market
2. Tesco – Company Background and Timeline
3. TESCO at a Glance
4. Localization Strategy – Tesco in South Korea
5. Tesco’s Business Strategy in the US – Healthy food, No waiting
6. Store Formats
7. Financial Highlights
8. Related Reading
9. View sample pages of this case study

This case study covers the following issues:

• Assess Tesco’s globalization strategies
• Examine and analyze the entry and expansion strategies of Tesco in US
• Study how Tesco localized its retail practices in US
• Understand Tesco’s efforts to integrate its global best practices with local strategies in US

Case Study Keywords: Tesco, Globalization Strategy, Localization Strategy, International Business, International Expansion and Entry Strategies, Retail Store Formats, supermarkets

Case Snippets/Updates:

• The world’s third-largest retailer: Tesco is the world’s third-biggest retailer by sales behind U.S. retail chain Wal-Mart Stores Inc. and French retail chain Carrefour SA.
• Tesco has 4,331 stores worldwide. In 14 countries, Tesco employs 470,000 people. (Jan 2010 figures)
• Top five supermarket groups in the U.K. – Tesco, Asda, Sainsbury, Morrisons and Co-op/Somerfield. These five groups have around 85% of grocery retail in the U.K. market.
• Tesco’s market share in U.K. – Tesco has approx 30% market share of British grocery retail
• By September 2009, Tesco had around 126 stores open in the U.S.
• Tesco’s U.S. operations (Fresh & Easy) reported a GBP85 million trading loss in the first half of the year (six months to August 31, 2009).
• A report on European Retail Forecast by RetailNet Group (RNG) indicates that, by 2014 the top 15 European retailers would capture 66% of retail sales growth (from 43% in 2009). The report covers more than 200 major retailers, 880 store banners (more than 2,12,000 stores) from more than 41 countries and includes major retailers Wal-Mart, Tesco, Aldi and Carrefour. These retailers account for over 47% of all retail sales across Europe.

Additional Reading: Related Cases on Tesco

• CSR initiatives at Tesco

The focus of this case study is the business strategy adopted by Nokia in the Indian Mobile devices market. This case study summarizes Nokia’s business strategies in India. Nokia has proven itself as one of the most recognized brands      Pic: A Nokia Dealer Store in India
in India in the past decade or so. This case also discusses in brief some of the marketing strategies of Nokia in India and examines how the Nokia brand has emerged.

This case study covers the following issues:

• Assess Nokia’s globalization strategies
• Examine and analyze the entry and expansion strategies of Nokia in India
• Analyze Nokia’s efforts to localize its practices in India market.

Nokia – Company Overview

Nokia Corporation (Nokia) is a global manufacturer of mobile devices headquartered in Espoo, Finland. Nokia operates through four business groups: Mobile Phones, Multimedia, Enterprise Solutions and Networks. In Q3 2007, Nokia sold over 111.7 million units worldwide, marking a 26 per cent, year-on-year growth. Nokia India had revenues of more than $3.5 billion in 2006…

Case Study Contents

1. Nokia – Company Overview
2. Company History
3. Nokia Timeline
4. Nokia in India
5. Locations and Subsidiaries
6. Mobile Devices Industry in India – Business Description
7. Restructuring
8. Distribution challenges – Getting to the Rural Market
9. Understanding the versatile Indian market
10. Nokia – Branding Strategy
11. SRK in Nokia ad campaign
12. Nokia India Recognitions and Awards
13. Related Reading
14. View sample pages of this case study

Case Study Keywords: Nokia in India, Mobile devices industry, Handsets, Cellular phones, Expansion and Entry Strategy, Business Strategy Case Study.

Additional Reading: Articles on Nokia

• Nokia to exit expensive Germany, move production to low cost countries
• Nokia’s Acquisition Strategy and Restructuring
• Nokia and its Growth Strategy in China
• Sony Ericsson Mobile Music Strategy not working
• Nokia India – Tapping the Rural Market
• Nokia’s Strategy in the Emerging Markets
• Nokia – A struggling market leader

Case Snippets/Updates:

Essence of Nokia India’s business strategy according to Nokia India’s Managing Director, Mr D Shivakumar (As quoted in “Nokia’s biz strategy to increase India market share” in 2009)

1. Do not underestimate competition
2. Do not rest on laurels
3. Be modest, flexible and open to change

5

Nokia and the Indian Market

• Nokia’s Entry in India: Nokia entered India in 1995.
• Third Largest Telecommunication Market: India ranks third globally after China and U.S. in terms of the largest telecommunication market.
• 500 million mobile subscribers in India: The Indian market is adding about 10 million users a month. Nokia sees the Indian market as a growth opportunity particularly in the country’s rural areas. Rural penetration in India is still very low at 13%. By 2010, Nokia estimates that there will be around 500 million mobile phone users in India as compared to 427 million. According to Standard Chartered Bank’s annual forecast, India will have signed up its 500 millionth mobile subscriber sometime in December 2009 or January 2010. So, it took India 12 years (from 1997 when the mobile revolution began) to grow from zero to 500 million subscribers. However, analysts estimate it will take only five years to add the next 500 million.
• Nokia’s market share in India: Nokia has more than half the share of India’s mobile handset market.
• Nokia’s manufacturing facilities in India: Nokia’s manufacturing facility in Chennai, Tamil Nadu (South India) exports half its production to more than 59 countries. Nokia has invested $250 million since its launch in 2006.
• Mobile Microfinance – In 2009, Nokia piloted a scheme in two Indian states where it sold handsets on a weekly installment of 100 rupees ($2) over 25 weeks. Nokia planned to rollout the microfinance offer in 12 Indian states.
• India not a low-end market segment – 81 percent of the India’s mobile users are in urban areas. Nokia anticipates such customers would drive demand for high-end phones.
• Increasing Competition from new mobile handset manufacturers’ entry into India: In one quarter of 2009 alone, twenty-seven new mobile handset manufacturers entered the Indian market to introduce entry-level models (and other models with features such as dual SIM cards and full QWERTY keyboard) for the price sensitive Indian consumer.
• Mobile handset sales in India: By year ended June 30, 2009, mobile handset sales in India was 100.9 million compared to 94.6 million, a year ago.
• Nokia’s strong distribution in India: In India, Nokia has 2 lakh retail outlets and 700 support centers across 400 cities and towns.
• Nokia’s competitors in India: Motorola, Sony Ericsson, Spice, MacroMaxx, Karbonn, Lava, Lemon, Oscar
• Nokia’s ‘Made for India’ phones: In 2000, Nokia introduced the Nokia 3210 with a Hindi menu. In 2003, Nokia launched the Nokia 1100, a first Made for India phone.
• India’s Most Trusted Brand: Nokia ranked as India’s topmost trusted brand in the The Economic Times-Brand Equity’s annual ‘Most Trusted Brands’ survey for 2010. In 2004, Nokia ranked 71 and moved to 44 in 2006 as India’s most trusted brand. In 2007, it ranked in the top ten at number 4. Nokia has since held the number one slot for three years consecutively.

The focus of this case study is the hurdles faced by retailing giant Wal-Mart in the Japanese market. WalMart’s best practices in retailing like Every Day Low Prices (EDLP) and Rollback to the Japanese market through its joint venture with Seiyu…In December 2005, Wal-Mart acquired a controlling 50.9 percent stake in Seiyu. However, Wal-Mart has since found it difficult to save the company even after investing more than one billion dollars. The company is revamping stores in hopes of drawing new customers. After exiting from Germany and South Korea last year (because it could not adapt to local tastes), Wal-Mart wants to maintain its presence in Japan. Success in Japan is important to Wal-Mart because a strong presence in the world’s No. 2 retail market is a key driver to future business growth.

Introduction – Wal-Mart in US Retail Market

Wal-Mart is the world’s largest retailer with $345 billion in sales for the fiscal year ending Jan. 31, 2007. Wal-Mart Stores, Inc. includes Wal-Mart Supercenters, discount stores, Neighborhood Markets and SAM’S Club warehouses. Wal-Mart employs 1.9 million associates worldwide ….

Case Study Contents

• Introduction – Wal-Mart in US Retail Market
• Wal-Mart – Company Background
• Wal-Mart – Timeline
• Wal-Mart: Quick Facts
• Wal-Mart's turnaround quest: Will Wal-Mart's mass-market formula work in Japan?
• Wal-Mart increases stake in Japan's Seiyu to 95%
• Localization Strategy – WalMart's failure in Germany and South Korea
• Cost-Leadership Strategy- WalMart's core philosophy – EDLP
• Cheap stuff at cheap prices – Japanese consumer mindset
• Is Wal-Mart the only one struggling in Japan?
• Will Seiyu get to U.S.-style EDLP in Japan?
• Store Formats
• Related Reading
• View sample pages of this case study

Case Study Keywords: Walmart, Wal-Mart Stores Inc., Japanese Retail Industry, Every Day Low Prices EDLP, Carrefour, Daeiei, Aeon Co., Sam’s Clubs, Consumer Behavior, Low cost strategies, Localization Strategies, Pricing Strategy, IT systems, Supply Chain and Logistics, supermarkets

1. Introduction
2. Dell – Company Overview
3. Dell Products and Services
4. Dell – Key Facts – Key Employees, Top Competitors, Revenues, Manufacturing Facilities
5. Dell Timeline
6. Dell – Business Segment Information
7. Dell’s Evolving Supply Chain Strategy
8. Typical Working of Dell’s Supply Chain
9. Five key strategies in Dell’s successful Direct Model
10. A supply chain with old technology is of little value
11. Restructuring at Dell
12. New Distribution Channels – Direct Model and Retail Strategy
13. Integrating the Supply Chain
14. Related Reading
15. View sample pages of this case study

Case Study Abstract

The focus of this case study is the supply chain management practices of Dell. Dell has been following its unique ‘direct build-to-order’ sales model for more than 20 years. Customers can plan their own configuration and place orders directly with the company via the phone or its Web site. Over the years, Dell’s supply chain efficiencies and direct sales gave it a competitive advantage.

Can Dell regain its market leader position from HP?

In 2006 however, Dell faced several problems. Many customers complained about long delays in supplies. Recall of Sony battery cells in its laptops brought undesirable media hype to the company. Increasing discontent of customers led to a slowdown in sales. Consequently, Dell lost its market leadership to Hewlett-Packard Co. (HP). Industry analysts felt that, with Dell’s competitors also improving their supply chains and matching Dell’s direct model, the company had been losing its competitive edge. Dell will have to bear additional costs with its foray into retail distribution thereby minimizing its cost advantage. Besides, profit margins of Dell will drop further since it will have to offer incentives to compete with HP in retail stores. Though Dell spruced up its product design and range but Apple is clearly far ahead of it. Many experts feel that such new initiatives will only distract Dell from its supply chain operations.

This case study covers the following issues:

• Examine and analyze Dell’s Direct model, its basic working, success and future challenges
• Typical Working of Dell’s Supply Chain and future supply chain challenges
• Highlights Dell’s evolving Supply Chain practices and strategy and steps being taken by it to recapture its lost market leader position

Case Study Keywords: Dell, Direct model, Supply Chain Management, Supply Chain Strategies, Build-to-order model, Inventory optimization, PC Manufacturing, Retail Distribution Channel, HP, Notebook computers, Desktop personal computers, Competitive Business Strategies, Sustaining competitive advantage, Michael Dell, Distribution Strategy, Supply Chain Case Study

Case Snippets/Update

Dell’s market share in U.S. and Worldwide (in Q1 2009) compared to other top PC makers

• In year 2010, PC sales are expected to rise 12.6 percent, according to research firm Gartner.