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Strategy.

MBA level. The case can be used primarily for the following courses: strategic management, competitive strategy. It can also be used for courses on: international business, international business environment, business marketing.

Intense competition and a turbulent economic environment posed problems for Infosys, a leading information technology (IT) company in India. Infosys lost market share and its second position in the IT industry to Cognizant. An adverse economic environment affected its clients' IT spending and introduced severe price-based competition in the market. Infosys' business model operated on charging price premium from clients, and the company never compromised on its margins. The company was forced to revaluate, as outsourcing, the main revenue earner for Infosys was experiencing commoditization, and other players were willing to compromise on margins. The Indian IT industry had moved up the value chain and competitors were offering consulting services, where there was huge scope for differentiation. Infosys did not have the requisite resources to compete in this domain. Decline in share prices, negative investor sentiments, downward revision of revenue guidance targets, loss of large clients, higher attrition rates, and visa problems in the US market (Infosys earned more than 60 percent revenues from this market) added worries for the company. In response to these challenges, Infosys initiated Strategy 3.0, wherein the company planned to move up the value chain and offer consulting services and other high-end solutions to clients. This was a shift from its predominantly outsourcing-based revenue model. The company acquired Lodestone to hasten implementation of Strategy 3.0. Initial analysis, however, suggested that Infosys was merely aping Cognizant's well-established strategy. Infosys also needed to tackle perceptual issues regarding its competencies.

The instructor can use this case to facilitate the understanding of: the impact of an intensely competitive environment on a company's strategy, how changes in the competitive landscape and business environment can erode sources of competitive advantage for an incumbent, the impact of a client's business environment on the vendor's business, the concept of value chain and analyze how companies in an industry move up in the value chain, the concept of business model, and how environmental changes can impact a hitherto robust business model of a company, evolution of business model over a period of time with changes in the business environment, the internal conflict between ideals and values versus revenues and market share for a company, key resources and capabilities that shape the differential advantage for an IT company, designing and implementing strategic solutions, the evolution of the Indian IT industry.

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The purpose of this paper is to review the reasons for the increased pace of restructuring of Indian industry in response to increasing market efficiencies and declining transactions costs in India.

This paper uses theory of transactions cost economics as the theoretical framework for analyzing the changing structure of Indian industry.

As in many developing countries, the Indian business environment has reflected high‐transactions costs so that Indian companies found it more efficient to diversify and internalize many unrelated activities. Consequently, most large Indian businesses have traditionally been widely diversified with vertically integrated group structures. As economic deregulation and adoption of internet technology reinforce each other, Indian transactions costs are declining and vertical integrated and diversified group structure is likely to become inefficient and a disadvantage.

Declining transactions costs will continue to force significant and sudden restructuring and specialization among the large and major Indian conglomerates with rising volumes of mergers and acquisitions activity in India. This will require managers with new skill sets that include strategic analysis and undertaking successful corporate re‐structuring.

The paper presents an assessment of the impact on Indian business of new technologies and economic deregulation in India.

The purpose of this paper is to investigate the nature of the organizational environments of Indian business organizations and to identify the adaptive response mechanisms that organizations use to cope with their environments. This paper also examines in detail the causal texture of the organizational environments and attempts to build a conceptual model mapping adaptive responses of organizations to different types of organizational environments.

A constructivist stance was adopted in this exploratory study to capture the perceptions of the organizational leaders through the multiple case study design to capture the features of the organizational environments and their causal texture. The multiple case study design used an embedded mixed-methods approach to collect data. Within-case analysis and cross-case analysis were conducted to draw out prominent themes across cases ordered for particular organizational environment types. The study was conducted by following construct validity, internal reliability and external validity guidelines.

The study highlights and describes in detail the characteristics of the different organizational environment types in India. It is revealed that a majority of Indian organizations exist in turbulent environments. There are differences in the adaptive response mechanisms of organizations in the environment types studied. The study specially focuses on the strategies adopted by Indian organizations to adapt to turbulent environments.

This study maps the causal texture of organizational environments in India and maps the organizational adaptive responses to the environment for greater effectiveness. This study offers various strategies to cope with turbulent organizational environments and adds to the research focus on causal texture and adaptive capacities of organizations across different types of environments.

This study contributes to an ignored subject area of organizational environments. Managing organizations in uncertain and turbulent environments is complex, and this study provides an understanding about the various types of adaptive mechanism that are used to cope with environmental turbulence. This study also attempts to answer several questions that previous research works have raised about strategies that organizations use when they fail to cope with environmental turbulence.

This paper aims to focus on how home-grown Indian companies explored the potential of Indian middle class and realized an opportunity to seize the market gap not catered by MNCs in India. Across three distinct business contexts, the authors describe the companies’ procedures of developing segment-specific offerings. Doing so, the authors outline novel strategies implemented by these companies to cater to specific needs of the segments.

Seizing Bandura’s (1986) framework that stresses on the role of cognitive, vicarious, self-reflective and self-regulatory processes, the authors develop a four-layered model of the Indian middle class consumers. Building upon this model, they took multiple case (three caselets) approach for illustrating the strategies of home-grown companies. The authors identify their potential to explore the unknown terrains of various market segments and rework with unique local solutions.

The study highlights the power of home-grown companies over MNCs in terms of better market understanding and realistic offerings best suited to their needs. Across the divergent business contexts the companies’ strategies have four features in common: customer targeting and developing; localization of business models, particularly services; relating the products to the Indian society; and ethnocentrism and pride.

This study gives priority to a “thick” description of the proceedings without claiming causality. The authors limit this qualitative investigation to pinpointing congruence and contradictions to previous established results.

A key implication of this paper is the relevance of linking firm’s strategy to social-psychological development of customers in emerging economies component. This study provides critical insights for both managers and policymakers on the economic and social upswing as socially responsible and ethical practices are likely to gain public awareness.

The study’s originality springs from understanding the domestic company’s strategies when facing the pressure of (mainly Western) MNCs entering the emerging economies markets. While the latter takes advantage of economies of scale, country of origin effects and the powerful brands, the home-grown businesses are forced to develop divergent advantages and capabilities. Notably, earlier literature focused on changed demand pattern brought by MNCs in emerging economies and not on later part whereby, home-grown companies carve a space for themselves with specially designed improved products and innovative strategies.

This study aims to demonstrate the importance of organizational networks in organizational performance is relatively rich; less understood are processes in organizational networking that entrepreneurs and organizations use in making sense of rapidly changing contexts for organizational performance.

This study conducts an exploratory organizational-level narrative analysis into firms’ experiences in two major emerging markets (EMs), namely, Russia and India – to identify organizational networking processes in the midst of institutional upheavals. The study is based on in-depth case studies of firms in EMs sourced from interview data from senior management and consolidated with secondary data.

The authors find that initially firms rely on informal networks (including blat/svyazi and jaan-pehchaan/jan-pehchan) and later formal (in the form of bureaucratic followed by proprietary) networks to make sense of the changes and uncertainties in turbulent environments. The authors also demonstrate the cyclical nature of strategic sensemaking in the process of developing organizational networks for performance.

The study has a number of theoretical and practical contributions. First, it extends the well-established business networking construct to a more inclusive organizational networking construct. Second, it demonstrates that sensemaking is dependent on interorganizational networking from the outset and throughout the growth of an organization in turbulent markets – from informal to formal bureaucratic and proprietary networks. Finally, this study is unique in documenting the entire process of sensemaking from scanning to performance as well as successfully demonstrating the cyclical nature of sensemaking.

Since the onset of globalisation, many multinational corporations (MNCs) have been increasingly opening up subsidiaries in several host nations. While the entry of MNCs in some nations has been generally unproblematic, that has not been the case in every host nation. Fears of neocolonialism and postcolonial anxieties are very real phenomena in many parts of the world. When it comes to such resistant environments, MNCs need to be especially careful in how they conduct their public relations activities. This qualitative study of two MNC subsidiaries in India – Hindustan Lever Limited (of Unilever) and Maruti Udyog Limited (of Suzuki Motor Corporation) – explores, in context, the phenomenon of MNC public relations in this host nation that has a history of resistance to MNCs. The authors conclude that MNCs can be successful in potentially resistant host environments through culturally attuned involvement, intervention and respect for the local that is proven through socially responsible performance over time. This is an important message for MNCs starting up in new host environments. Descriptive details elucidate the specific public relations activities of the two MNCs in the Indian business and cultural environment. Overall, the findings have heuristic value for transnational public relations theory building since they suggest that an MNC’s organisational culture and approach to communication and relationship cultivation are important variables that shape how it practises public relations in host nations around the world.

Entrepreneurship; Business Strategy; Business Environment courses.

This case is appropriate for use in Masters in Business Administration (MBA) programs as well as advanced undergraduate courses. The case provides an apt simulation of the emerging Indian fast food companies in the competitive dynamics of Indian business environment.

Rakesh an MBA graduate from the University of Hartford, Connecticut, after four years of corporate experience, made a decision to start a business of his own. Thus, was born Infusions Foods Pvt Ltd (IFPL) an entrepreneurial venture of Rakesh Raghunathan. IFPL launched its fast food chain of grilled wraps under the brand name of PETAWRAP. The brand was positioned to target the recent consumer behavior shift of Indian consumers which was towards healthy, nutritious food combined with the concept of necessity-based eating out.IFPL had successfully opened six company owned outlets by March 2011. Their strategy for success was built on the age-old four-point formula of a good-quality product, at value for money prices, delivered efficiently to the customers. The absence of “a hygienic branded product” in this Indian fast food industry contributed to the initial success of their company. Rakesh believed that key to building the brand image depended on quality in terms of operations standardization and product quality.

The case is structured to achieve the following pedagogical objectives: To identify the forces on which of an entrepreneurial opportunity is dependent; To analyze the changes in competitive dynamics of Indian fast food industry and identify the factors that lead to the emergence and acceptance of PetaWrap; To understand the challenges of building a brand in low-cost business model and the economics of cost incurred; To evaluate the business strategy and the business model adopted by the company for expansion.

Teaching notes

Corporate social responsibility (CSR) is increasingly being adopted on a global scale. However, it is evident that the utilisation and implementation of CSR varies in differing contextual settings. The purpose of this chapter is to explore the concept of CSR in the Indian context.

The development of CSR in India is understood through an examination of historical and spiritual underpinnings. Literature pertinent to this is used to form a picture of contemporary practice. Interview data complements this understanding and enables the development of snapshots outlining how CSR has been used.

Our chapter indicates that though CSR is utilised in the Indian context and has been an important part of societal structure, the positive benefits that could be gained are still not recognised to their fullest. It is essential that the institutionalisation of CSR is supported by partnerships between government, business and non-governmental organisations.

This review aids our understanding of how CSR has evolved and been used in India. It highlights the complexity of CSR in differing contextual settings.

The chapter describes CSR in an underexplored research setting.

Religion and culture can influence ethical behavior in business. It is suggested that there has been and continues to be, a deep interrelationship between religion, business ethics, and economic activity in India. As India is becoming a major global economic business partner, understanding its unique ethical business infrastructure is gaining in importance. The purpose of this paper is to intend to further the understanding of Indian (“Vendantic”) business ethics, as opposed to Greco – Roman business ethics, as the foundation of business culture in India. This paper further elaborates on the evolution of business ethics and its implications on doing business in and with Indian companies.

The authors undertook a conceptual approach in order to understand the evolutionary process of Indian business ethics in a holistic view in order to understand better its workings and effect on business interaction.

The paper explains the constructs of business ethics in India and shows its evolution over time.

This original theoretical paper examines the evolution of Indian business ethics over time in line with environmental changes in the Indian business landscape.