1. L'Oreal's Evolution into a Global Cosmetic Brand
Abstract:
The case discusses in detail the brand management strategies of the global cosmetics industry leader, L'Orèal, over the years. L'Orèal's brand portfolio included brands from different cultural backgrounds like Europe, America and Asia. The case explores L'Orèal's expansion of its business through the acquisition, makeover and worldwide marketing of relatively unknown brands from different countries. In addition, the case takes a look at the way in which the company consciously worked towards straddling all the segments of the cosmetics business and building successful brands in each of these segments.
Issues:
» The brand management strategies of a large cosmetics company with a global presence and a large portfolio of brands.
Questions for Discussion:
1. Critically comment on L'Oréal's global brand management strategies. Do you think L'Oréal's strategies were primarily responsible for its impressive financial performance? What other factors helped the company remain profitable since over two decades?
2. With specific reference to Maybelline, critically comment on Jones' strategy of acquiring relatively unknown brands of different cultural origins, giving them a makeover and marketing them globally. What are the merits and demerits of acquiring an existing brand vis-à-vis creating a new brand?
3. L'Oréal maintained a large portfolio of brands and was present in all the four segments of the cosmetics market. What positioning strategy did the company follow to ensure that the image of its brands did not overlap? How and why did L'Oréal encourage competition among its brands in a particular segment and at the same time prevent the brands from cannibalizing each other?
Key words: Brand management strategies, global cosmetics, L'Orèal, portfolio, cultural backgrounds, Europe, America, Asia, acquisition, makeover, worldwide marketing, straddling, all, segments, cosmetics business, building successful brands, segments
2. The Marketing of All Out Mosquito Repellant
Abstract:
The case, ‘The All Out Story ‘examines the success of the All Out mosquito repellant from Karamchand Appliances Pvt. Ltd. (KAPL). KAPL was responsible for introducing ‘vaporizers ‘in the Indian mosquito repellant market. The case examines the marketing strategy that helped the company to become a leader in the segment, even while competing against financially stronger players.
Issues:
» Understand the changing dynamics of the Indian petroleum industry after the deregulation process that began in the early 1990s
Questions for Discussion:
1. Analyze the reasons behind the success of All Out, commenting separately on the attention paid by KAPL to each element of the marketing mix. Why do you think players like GSLL were not being able to compete with All Out?
2. In the light of intensifying competition and the allegations of 'toxic hazards' in the mosquito repellant industry, do you think All Out would be able to maintain its success in the future? What steps can the company take to ensure that its market share does not suffer? Give reasons to support your answer?
Key words: The All Out Story, All Out, mosquito repellant, Karamchand Appliances Pvt. Ltd, KAPL, vaporizers, Indian mosquito repellant, market, marketing strategy, leader, segment, competing, stronger, players
3. The Success of Barbie
Abstract:
The case examines the evolution of the Barbie doll over the years from its launch in 1959. It explores the product development strategies adopted by Mattel for Barbie and the reasons for the success of Barbie. The case also explores changes in Barbie's image along with the changes in American society. The criticism leveled against Barbie by feminists has also been described. The case also examines the challenges that Barbie could face in the future with the launch of Disney Princess.
Issues:
» Gain insights into the challenges faced by traditional playthings, such as dolls, in the Internet age.
Questions for Discussion:
1. Analysts observed that Barbie, the icon of American culture, reflected changes in American society. Analyze the changes in Barbie's image over the years.
2. Analysts attributed Barbie's success to the Mattel's innovative product development. They pointed out that Mattel's product development reflected changing cultural patterns in American society. Analyze the role played by product development in Barbie's success.
3. According to analysts technological innovations and the availability of various other forms of entertainment were turning young girls away from traditional playthings such as dolls. In this scenario, discuss the future of Barbie. Do you think Barbie will be able to retain its dominance? Justify your answer.
Key words: Evolution, Barbie doll, years, 1959, product development, Mattel, Barbie, Barbie, image, American society, feminists, Disney Princess
4. OTIS INDIA
The elevator market in India is around Rs. 450 cores. Otis India has a market share of around 70%, Bharat Bijile, ECE, Mitsubishi, Hyundai are competitive brands Otis has a network, of about, 70 centres. The company launched a chip driven elevator model Otis – 300`F priced between Rs.18 lakh and 28 lakhs. Hotels form an important segment in this category as lifts are important to consumers. The microprocessor model takes an optimal combination of destinations ensuring a quick landing at respective destination (specific floor). The product is also likely to save energy costs significantly. Otis 300 F has to target new buildings as old buildings will not have the infrastructure to take on the new model. Otis has also models for a huge replacement market which may be integrated in new lifts. It may be noted that grill type of lifts have been banned and this market may be integrated in a ‘no- grill’ lift at the lower end of the product line.
(a) What are the segments that you identify for Otis 300F art of the technology lifts?
(b) What should be your target marketing strategies in the above identified segments?
(c) What would be your marketing strategies for further models in the replacement markets?
(d) What channels, would you prefer for Otis 300F and replacement market?
5. ZERISE DOCUMENTATION
Vinod Rao, a sales executive of Zerise Documentation Ltd., encounters the Head, Department of management studies of the University, to sell a photocopying machine. “We already have a photocopying machine. I am sorry Mr. Rao, we do not need any more machine”, Says the Head “But that machine you have now is kept in the library and I understand that it is fully employed. You have a very large quantity of course materials to produce. I feel you need some more couplers, suggested Rao. “Look Mr. Rao, we have six typists, and the supervisor to produce course materials, we also have a duplicating machine and operator. This arrangement takes care of all our requirements. Though additional facilities are welcome, we can not afford the luxury of additional photocopier
“But … sir” pleaded Rao, when Head started moving towards registrar’s office. “Please give an appointment for a later date” requested Rao, “If you are very particular about meeting me, you may do so in next week. But I have already told that we do not need photocopiers now” said the Head.
Analyze the above case and answer the following questions.
1) Should Rao treat it as a closed chapter or should he meet the head again?
2) Assume that Rao intends to visit the head again. Draw up a strategy which would enable him to make the head favorably disposed.
3) If you were to be the sales manager of Mr. Vinod Rao , what suggestions you would have given to Mr. Rao?
6. Main Frame computer Inc
In 2003 it became clear to Mr. Jack Bloom, chairman, Main Frame Inc (MCI), that MCI would have to change from selling technology boxes to any one who was interested to a more market oriented strategy based on selling integrated computing systems designed around specific customer needs (total systems solutions), into vertical markets (e.g., banking, retailing government agencies), The principal restraint in doing so was perceived to be MCIs two field sales forces.
The major account sales force (MASF) was organized nationally to deal with key accounts on a personalized client basis in long- standing relationships where MCI had developed an intimate understanding of the client’s business operations and needs.
However, the General sales force (GSF) activity was characterized by quick- sales of relatively cheap systems to smaller account and with low levels of after sales – support. Though very good at its job, GSF was Product oriented and had no real interest in total solutions or in exploring customers underlying problems. GSF was paid largely on commission and aimed to make as many sales as possible on an opportunity basis and regardless of the market or niche in which the customer operated.
The problem for MCI was how to move to a vertical market orientation without i) alienating the GSF ii) expensive and lengthy retraining iii) avoidable disruption to turnover.
Questions:
i) Write a brief presentation of the case.
ii) What are the various options available for MCI?
iii) If you are in the place of Mr. Jack Bloom, how would you solve this problem?
7. RIXON COMPANY
Rixon company deals with industrial products which are supplied to public and private hospitals and health care centres.
The industrial marketing CEO, Mr. Ganesh of Lumax consistently used to cut the advertising budgets.
To overcome this, his managers, on several occasions, had presented Mr. Ganesh evidence of a solid link among advertising, market awareness, preferences, share of market and profit. Each time this occurred, the CEO would maintain his skepticism.
Lately a manager brought to him the Momill study on advertising. It showed that, the average industrial firm can increase its market share by 30 percent when it backs up the sales force with advertising. Mr. Ganesh reflected on this against the range of his products / market situation and said “That’s only true sometimes” and leaned back.
Questions:
i) If you were the CEO, Mr. Ganesh, explain your position.
ii) Discuss the role of advertising in industrial marketing
iii) Can you come up with some arguments as a manager to change Mr. Ganesh’s mind.
iv) Which is more effective? Advertising or personal selling in industrial marketing.
8. Savi Jeans
Savi, the jean maker, was exposed heavily to the eastern part of India, with a clear focus on the Calcutta market from the year 1988-1995. The market for denim wears at that point of time was not high. Hence, the competition was also low. Savi took the advantage and became a dominant player in the east, especially in Calcutta. The target segment was middle class and the prices were all around RS. 350/-
After 1995, since Savi started concentrating more on export and neglected the home market, problems became more numerous like poor supply, bad quality, unacceptable fits etc., till the year 1997. These two years created a vacuum in the market and other brands took the advantage to put a tight grip on the market.
The craze for denim wear had increased manifold and the industry was growing at the rate of 25 percent annually. The basic rule of the game was to offer to the consumer good fitting jeans (tight or. loose) with better finish. Different colours were also introduced apart from conventional blues.
Mean while, after consolidating the export operation, Savi planned a come back move and in continuance of the same, they launched a basic five pocket jeans in fashion, in a series of colures priced at RS. 720/-. It was available in all good readymade apparels shops and exclusive denim outlets.
Savi, as a brand, had got a high recall but compared to that the product acceptance was low. This was primarily because of the price factor which was clashing with brand image and this segment was dominated mostly by imported brands like Wrangler, Pepe and highly perceived quality Indian brands like Bare, Killer, Trigger etc. Hence, anybody ready to spend RS.720/- felt like spending a little more and buying an imported brand, or highly perceived Indian brand. Also, Savi had just one good fit, which was tight fitting and in others, fits were not all that good. Other brands were offering the consumer multiple fits to choose from.
Answerthefollowing:
a. Identify the problem (s) in this case
b. Should Savi continue with the same market segment or idenfity a new segment? Explain your stand.
c. Elaborate upon the marketing mix Savi must design to position itself in the identified target market.
d. Draw a hypothetical perceptual map of branded jeans and indicate the position of Savi jeans based on the stand you have taken.
9. Bell Electronics
Bell Electronics Manufactured Power Generating Equipment And Sold Directly To Customers As Well As Through A Distribution Network. The Company Itself Was Only Five Years Old And Its Sales Force Was Recently Expanded To Cover Serval Regionals, National And International. The Marketing Manager Felt An Urgent Need To Institute A Sales Incentive Programme To Motivate Sales Managers And In Turn Increase Corporate Revenues. His Objective Was To Increase Revenues At Least 30% Over The Previous Year. He Devised A Simple System That Would Reward Sales Manager If He Exceeded His Goal, Which Would Be Set By Mutual Agreement Between Marketing Manager And Sales Managers. The Power Generating Equipment Business Was Extremely Competitive. Although, Bell Had An Approve Price List, Sales Managers Would Frequently Come To Their Supervisors To Allow Lower Pricing Than Approved Price List. The Marketing Manager Spent Considerable Amount Of Time Reviewing Pricing Exceptions. He Thought That In Long Run That Had To Stop. The Only Way To Discourage Sales Personnel From Seeking Exceptions Was To Give Them Price Flexibility – A Range Of Price Over Which They Could Quote Their Clients A Price That Would Win Business. But Then He Had To Devise A Disincentive Plan To Sales Personnel From Arbitrarily Dropping Prices To Generate Larger Revenues And Obtain Incentive Bonus. The Larger Revenues At Lower Prices Would Have Negative Impact On The Corporate Bottom Line.
After Many Discussions With Management, The Marketing Manager Instituted The Incentive Programme As Follows:
· Sales Personnel Began Accruing Incentives Once They Reach 80% Of Their Goals
· Sales Personnel Had Price Flexibility And Could Quote Lower Prices – If In Their Own Judgement, It Was The Only Way To Win The Business.
(i) Do You Feel This Incentive Programme Will Achieve The Desired Results By Marketing Manager?
(ii) Can You Suggest Alternative Sales Incentive Programme To Motivate Sales Force?
10. Service experience in Restaurant
Amol booked a table in a restaurant for 15 people at the beginning of Diwali to celebrate the festival season with his family and friends. He had been a regular visitor to Moti Restaurant and had developed loyalty for this place famous for South Indian food. Most of the friends were from the North who liked to eat South Indian food once in a while. Moti Restaurant served authentic South Indian fare. This was the reason Amol preferred to treat his family and friends at Moti. The patron of Moti Restaurant Mr. Rajkumar Pai was someone whom Amol knew well. Since Amol was a regular visitor to the restaurant, he was confident that the dinner party would be a great success.Four days prior to the scheduled get-together dinner Amol spoke to Rajkumar and asked him to increase the booking to 20. Amol told Rajkumar,“ Raj, I am meeting some of these friends after a long time. So, the party has to be really rocking. Are you sure you can accommodate 20 of us?” Rajkumar, though busy, informed Amol that there was nothing to worry and that all the arrangements would be in order. He also added that he looked forward to seeing Amol and his friends at the party.
On the scheduled day, Amol’s friends met at his residence at 7 pm on the appointed day and after having a cup of coffee left for Moti to be present at the restaurant at 8.30 pm sharp. They were relaxed and were cracking jokes and reached the restaurant at 8.20 pm. With some difficulty, they were able to park all their cars in the close vicinity. Though it took some time, Amol told them that these were minor glitches in comparison to the quality of food served by Moti.The guests arrived at the restaurant on time. Amol was taken aback to find that the table was booked only for 15 persons. Seeing them, Rajkumar came forward. Amol reminded Rajkumar that four days ago, he had informed him about the increase in the number of guests. He had called on Rajkumar’s mobile but as there was no response, he had asked him to be connected to Raj via the board. Amol told Raj, “ May be there has been an oversight. Can you reset the table for 20 persons please ?” The guests were waiting and Amol found it embarrassing. Amol was out of his wits when Rajkumar feigned ignorance about the whole telephonic conversation that they had. He argued with Amol that he had received no such phone call from Amol requesting for amendments in the booking. “ Mr. Amol, you must have been mistaken” , said Rajkumar.
A red-faced Amol tried to explain things to Rajkumar Pai but Pai was too stubborn and continued to insist that he had not received any such call and that the booking was for 15 people only. The restaurant was full and Amol asked Rajkumar to resolve the matter as his guests had been waiting for some time. Rajkumar pleaded helplessness and said that there was nothing that he could do at the moment. There was a lawn outside the restaurant (but within the restaurant campus) which was quite neat and well illuminated. It was getting late. Left with little choice, Amol & his family along with another couple opted to wait even as his friends protested. The 15 members of the group began having their lunch squirming at the thought of the hosts having to wait to join the group. At 9.30 pm, after some of the other guests in Moti Restaurant left, Amol & the other members could be accommodated with the group. All of them settled for the dinner but the focus of discussion remained the service at the hotel. After the dinner was over, Amol settled the bill but did not leave any tip for the waiters. Amol met Rajkumar Pai on his way out and explained to him that this was his last visit to the restaurant. Rajkumar admitted that he may have been hasty but felt Amol was being unreasonable as it was his busiest evening and that Amol should make allowances.
Amol and his friends never visited Moti Restaurant ever again. They also posted their feedback on Face book and spread word about their experience to all their colleagues, friends and associates.
- What was the main reason for the service failure?
2.If you were Amol, how would you have reacted to Rajkumar’s behavior?
11. Indian Air Lines
Indian Airlines was established in 1953 as a public sector company and enjoyed monopoly in air transport in India until 1994. The competition from private Sector intensified after this sector was liberated. The growth in air passengers due to increased affluence after the implementation of the new economic policy encouraged the companies to enhance service package to customers and also to focus on service quality. Indian airlines faced some bitter experience in providing customer services as consumers started pointing out the differences comparing private company services or shifting loyalties to the competitors. Indian Airlines wanted to know the influencing factors for these kind of change in consumer behaviour.
a. Identify changing expectations of air passengers.
b. Find out the influencing factors for change in consumer behaviour.
12. Visual Merchandise in Organized Retailing
Retailers like businesses operating in any other commercial sector, are always seeking strategies and techniques to help them secure a competitive advantage in their market place. One currently hot practice is the concept of achieving more effective brand delivery through in store visual merchandising. When implemented with precision and consistency, this can improve consumers’ shopping experiences with the brand and, as happy consumers buy more, vastly improve retailers’ performance by increasing sales. Brand delivery is a well-understood practice which is all about ‘bringing a brand to life’ for consumers, in effect, transforming a conceptual idea into a tangible reality or ‘experience’. For retailers, successful brand delivery means creating a great shopping experience, through the retail environment, consumer service, store operations and retail marketing activities. Done well it will present a cohesive and fully integrated ‘retail reality’ that is representative of the brand values, and product proposition and targeted for the market positioning. As brands are conceptual by nature, the most successful companies invest significant amounts in) trying to develop to create a seamless and synergistic realization of these for consumers. This in turn can provide consumers with a unique and satisfying retail experience, which can encourage them to develop a relationship with the brand.The result enables retailers to secure sales opportunities, with the ultimate aim of developing long-term brand loyalty and revenue generation. For the companies that do achieve effective brand delivery, they can expect an increase in brand equity, with the potential to boost commercial performance and corporate brand value. The part of brand delivery that specifically involves store presentation, is known as Visual Merchandising or VM. This involves functions such as space management, presentation and display, promotional activity and seasonal events. Companies use VM to carefully manage ‘the look and feel’ of the brand in store and for presenting products in the most effective ways. It means investing in expertise and resources for the use of ‘best practice’ VM techniques to gain maximum control of the selling process. It is a complementary function to the buying strategy and when used together, can have dramatic effects on sales, profits and product performance. As a retail industry practice, VM has been recognized for almost 20 years, with the USA being the first country to pioneer and perfect its application.
a. What is the significance of Visual Merchandising in organized retailing?
b. b. How Visual merchandising has been a complementary function to increase sales?
13. Beauty care by Marico –Kaya skin clinics
Marico Industries, owner of popular brands like Parachute, Mediker and Saffola, has entered into the beauty care market through its chain of beauty salons called Kaya Skin Clinic (Kaya) with 8 centers spread across India and 2 centers in Dubai. Kaya means 'body' or 'appearance' in Sanskrit. Kaya points out that a clear and flawless skin is the most attractive aspect of an individual's appearance and its clinics promise to enhance natural skin to make it look healthier, fresher, and younger and more glowing...
Once an unorganized market mostly run by independent dermatologists and beauticians, Indian skincare treatment market is now attracting some of the leading personal care product manufacturers.
Questions:
1. Marico, a product manufacturer, has entered the services segment. What challenges will Marico face while marketing its services?
2. With independent dermatologists and small beauty salons chains dominating the beauty care industry, Kaya clinics will find it difficult to capture the customer mindset and market share. What tangible elements do Kaya clinics use to differentiate their services from the competition?
14. Mobile telephony
Mobile telephony industry grew enormously because the new users embraced mobile technology. The cost required for the new mobile phone was very high because service providers heavily subsidized handset and retailer costs to make it easier for new user to sign up for new service. As a result service providers face a pressing need to maximize their average return per user (ARPU) by retaining their best customer for as long as possible. This challenge is particularly acute in the face of showing growth due to market saturation and the impending expiration of many original customers’ service plans.
Answer the following:
a. State at least three goals that the company must adopt so that it keeps old customers and adds the new customers.
b. Give strategies to implement these goals.
15. Natural thrust
Balsara Hygiene products Ltd, which had some fairly successful household hygiene products introduced in 1978 toothpaste “promise”which clove oil (which has been traditionally in India as an effective deterrent to tooth decay and tooth ache) as a unique selling proposition. By 1986, Promise captured a market share of 16% and became the second largest selling toothpaste brand in India. Hindustan Lever’s Close-up gel appealed to the consumers, particularly to the teens and young, very well and toppled Promise from the second position.
Supported by EMF programme and development assistance, Balsara entered the Malaysian market with promise and another brand of toothpaste, Miswak. The emphasis on the clove oil ingredient of the promise evoked good response in Malaysia too. There was good response to Miswak also in Muslim dominated Malaysia. Quoting from Quran, it was pointed out that prophet Mohammed used “Miswak before sleeping at night and after awakening.” The religious appeal in the promotion was reinforced by the findings of scientists all over the world, including Arabic ones, of the antibacterial property of clove and its ability to prevent tooth decay and gums.
Market intelligence revealed that there was a growing preference in the advanced countries for nature base products. Balsara tied up with Auromere Imports Inc.(AAII), Los Angles. An agency established by American followers of Aurobindo, an Indian philosopher saint. Eight months of intensive R & D enabled Balsara to develop a tooth paste containing 24 herbal ingredients that would satisfy the required parameters. Auromere was voted as the No.1 toothpaste in north eastern USA in a Us Health magazine survey in 1991.
QUESTIONS:
1) a. Explain the environmental factors which Balsara used to its advantage.
2) b. What may be the strength of AAII in your view to market ayurvedic toothpaste in USA?
16. Attitudes influence the way we think
have been understood as learned predispositions that project a positive or negative behavior consistently toward various objects of the world. The tangible and intangible objects, toward which one can form an attitude, are called attitude objects. Attitudes influence the way we think and behave and are therefore important for the marketers who study them to understand how a consumer behaves. Attitudes have certain characteristics. They are formed as we grow up, based on the environment in which we grow up. Attitudes can be either of a high or low degree and the intensity depends on the strength of conviction with which the person believes in them. Attitudes serve various functions such as utilitarian function, value expressive function, Ego-defense function, and knowledge function.
Q. 1. How to develop a positive attitude in customer towards a specific product range?
Q.2. Do you agree with the statement that understanding the target customer needs is a prerequisite to launch a new product?
17. Tata Engineering and Locomotive co. Ltd (TELCO)
Telco opened bookings for different models of its proud small car “Indica” in late 1998. The customer response was overwhelming. Most of the bookings were for AC models ie. DLE( Economy) and DLX (Luxury). The DLE accounted for more than 70 % of its bookings. Telco has planned to commence delivery of the vehicles by early 1999, However delivery schedules for the AC models were upset because of some problems on roll out front. According to a report in “ The Economic times” dated 13 March 1999, Telco officials attributed the delay to non-availability of air conditioning kits.Subros Ltd., supplies AC kits for the DLE version an d Voltas is the supplier to DLX version. Incidentally, Subros is also the AC kits supplier to Maruthi Udyog Ltd.,Telco officials alleged that Subros was being pressured by the competitor to delay the supply of AC kits. “If this continues , we will be forced to ask Voltas to supply even for the DLE version too” a company official said.
a. Why did Telco land in the problem (in respect of AC kits)?
b. If allegation it right, discuss its implications on supplier.
18. Case Study - Basmati Rice
Basmati is an aromatic rice grown in Northern India and Pakistan. In Sept 1997, Rice Tec , a small food technology company based in Texas, US was granted a patent by US patent office to call an aromatic rice variety developed in USA Basmati. India challenged this case , arguing that Basmati is a unique aromatic rice grown in Northern India and Rice Tec no way has the right to claim. In fact only inventions can be patented. Consequently, US patent office accepted India’s basic position and Rice Tec had to drop 15 of the 20 claims that it made. Of the remaining claims, Rice Tec managed to evolve three new varieties of rice for which it got a patent from US Patent Office, as India had not objected to these. Though the ruling has not handed over “Rice Tec” the Basmathi Brand , It provides it patent for superior three strains of basmati developed by cross breeding a Pakistani basmati with a semi-dwarf American variety.
According to the WTO agreement, geographical indications like Basmati can be legally protected and their misuse can be thus prevented. The unfortunate thing is that Government of India has not taken timely steps for protecting our geographical indications and bio-diversity. Although a Geographical indication of Goods bill was introduced in Indian Parliament in 1999 , even at the end of 2001 it had not become an Act.
a. Evaluate the role played by Indian Government to prevent the misuse of name “ Basmati”.
b. Can Basmati, Turmeric and Neem be patented. Substantiate your answer?
19. Indian Oil CorporationIndian Oil Corporation, The public sector Indian Oil Corporation (IOC), the major oil refining and marketing company which was also the canalizing agency for oil imports and the only Indian company in the Fortune 500, in terms of sales, planned to make a foray in to the foreign market by acquiring a substantial stake in the Balal Oil field in Iran of the premier Oil. The project was estimated to have recoverable oil reserves of about 11 million tones and IOC was supposed to get nearly four million tones. When IOC started talking to the Iranian company for the acquisition in October 1998, oil prices were at rock bottom ( $11 per barrel) and most refining companies were closing shop due to falling margins. Indeed, a number of good oil properties in the Middle East were up for sale. Using this opportunity, several developing countries “made a killingby acquiring oil equities abroad”.
IOC needed Governments permission to invest abroad. Application by Indian company for investing abroad is to be scrutinized by a special committee represented by the Reserve Bank of India and the Finance and commerce ministries. By the time the government gave the clearance for the acquisition in December 1999 (i.e. more than a year after the application was made) the prices had bounced back to $24 per barrel. And the Elf of France had virtually taken away the deal from under IOC’s nose by acquiring the premier oil. The RBI, which gave IOC the approval for $15 million investment, took more than a year for clearing the deal because the structure for such investments were not in place, it was reported.
QUESTIONS:
a. Discuss Internal, domestic and Global Environments of Business revealed by this case.
b. Discuss whether it is the domestic and Global Environments that hinders the Globalization of Indian Business.
20. Reebok
Reebok. The well known athletic multinational shoe gets its product contract manufactured by independent firms in the developing countries. The MNC which gives importance to low cost and high quality concerned with human right protection and requires its suppliers to follow the following standards:
Non-discrimination: Reebok seeks business partners that do not discriminate in employment practices on grounds of race, color, national origin, genderand religion.
Working hours / over time: Reebok seek business partners who do not require more than 60 hour work hours per employee on a regularly scheduled basis and appropriately compensated for over time in compliance with local laws.
Fair wages: Reebok seek business partners who can share their commitment to the betterment of wages of their workers.
Child labor: Reebok will not seek business partners who use child labor – generally refers to a person who is less than 14 years of age.
Safe and healthy work environment : Reebok seek business partners that strive to assure employees a safe and hygienic work place and do not expose workers to hazardous conditions.
a. Discuss endeavors of Reebok on Human rights protection.
In what way these standards of Reebok benefit the suppliers in developing countries?