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Decision-making seems simple, but, in reality, it is not an easy task to decide the cause for its profound result or consequence, leading to inevitable failures. Therefore, a leader must recognize whether there is something incorrect so as to avoid bad results. A good leader is a person who carefully reviews and analyzes aspects of a problem, knows the strengths and weaknesses of his organization and evaluates what the advantages or risks are. It cannot be denied that the appropriate options will reap many benefits to the business. For such important things, this paper will discuss the dilemma of Viettire, a tire distributor company in Vietnam. Accordingly, its CEO was worried about what strategic option he should adopt to approach the Myanmar market while ensuring a strategic fit to its company’s resources and capabilities and also to the overall market demands of the tire industry environment in both countries. However, with different ideas, the expansion strategies in this new market become controversial. The General Director and Founder of Viettire were wondering how Viettire could expand its existing business into Myanmar. To expand the company to new emerging market in Myanmar, Hoang Nguyen – CEO of Viettire – had conducted a strategic analysis of external environment factors to define the opportunities and threats when doing business in Myanmar by using Porter’s five forces model, S.W.O.T and competitive advantages analysis. The results indicated that Myanmar’s business environment is highly risky for foreign investors because of uncertain political, economic, social reforms in the process. Among three options, namely, exporting, licensing and wholly owned, however, Option 2 is illustrated as the best strategy for its dilemma.

Postgraduate/Graduate Business level.

As for a market mechanism, what produces, how and for whom, is not the business’s demand but the consumer’s demand. The business sells only what the market needs, not what it has. In the period of increasingly competitive conditions, stabilizing and expanding markets are a prerequisite for survival. If stability is seen as a “defensive” way, expansion is a “defensive attack” like trying to hold on the “pie” that the market gives to itself. This strategic action is to strengthen regular, close relationships with existing customers and establish new customers. As a result, the potential market is transformed into a target market. Hence, decision-making of which market, which method is the issue that a leader has to think the choice to avoid risks. Mr Hung, Viettire’s co-owner, suggests that Myanmar should be taken into account as a company’s new entry, thus exploring this potential market to increase the company’s growth and profitability. In the progress, Viettire’s marketing team had been doing a thorough tire market investigation in Myanmar. It was concluded that this emerging country, especially Yangon City, was the most suitable for those who were willing to embark on an overseas investment expansion. They believe this was a good opportunity to gain market share compared with other entrants and competitive rivals; if Viettire hesitated to invest, others definitely had jumped in with a first-mover advantage. However, the CEO, Mr Hoang, was worried about what strategic option he should adopt to approach this new market while ensuring a strategic fit to its company’s resources and capabilities and also to the overall market demands of the tire industry environment in both countries.

Understand the basic decisions that firms contemplating foreign expansion must make: which markets to enter, when to enter those markets and at what scale. Recognize the current strategic decisions an organization is facing: positioning, portfolio and market expansion approach. Learn how to develop an effective strategic plan. Be familiar with different strategies for competing globally and their pros and cons. Evaluate various strategic options and decisions in accordance with a company’s resources and capabilities.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 11: Strategy.

Mahindra Trucks and Buses forayed into India's commercial vehicles sector in 2005. However, they had to battle numerous supply chain challenges associated with introducing a new product (a new truck brand) in the market and to gain a noticeable foothold in the market. In this case, we attempt to align customer brand stickiness with the supply chain expectations from a new product. In particular, we deliberate how the needs of all actors in the supply chain must be met and their interactions must be accounted in developing a robust supply chain. Finally, a supply chain is successful when demand can be matched with supply and the customer's service level can be achieved.

Inventory management plays a critical role in managing business profitability. Through this case, the participants will understand the role of managing inventory for timely workshop operations. Further, too much inventory can erode business margins and occupy storage space. This case also highlights the selection of an appropriate inventory review policy for managing the spare parts inventory.

Mahindra Trucks and Bus Division (MTBD) of Mahindra & Mahindra is at an interesting stage of its evolution. Having gone through a bad patch with a product that was not quite up to the mark, it appears to have got the product right by early 2018 and truck sales had been going up in the country for the previous four years. While Mahindra & Mahindra as a company is a large firm with revenues of more than USD 15 billion, MTBD itself is a small player (INR 2400 crore, USD 350 million) within the firm and in an Indian truck industry that is dominated by goliaths, Tata Motors and Ashok Leyland that between them had more than 81% market share and a customer mindset that was loath to leave the comfort of a known brand. The case provides data on product specifications, prices, marketing communication, channels, positioning, the context and competition. The intention is to use the case to go through the steps involved in evaluating and developing and creating a marketing plan for MTBD to increase its market share from the 4% in 2018 to an intended 8% in 2022.

The case study analyses competition in the automobile industry in Zimbabwe, a developing economy. From that perspective, it discusses Puzey and Payne’s business operations; a company with a long-standing history in the country’s automobile industry. Since its establishment during the Colonial era, the company endured a prolonged period of rapid car and spare parts sales decline in 2012. Following a management buyout deal in 2013, the decline in sales proved to be its real dilemma and it required strategic decisions to diffuse the impact of the “grey markets”. Government policies added to the company’s problems.

The case study follows a qualitative research approach. Information about Puzey and Payne’s business operations was gathered from archived materials, through qualitative conversations as well as company artefacts. Published materials in newspapers and magazines were used to provide background information.

The case study is appropriate for both undergraduate and postgraduate students studying International Business Management.

This case was developed solely for the purpose of classroom discussion. Some details of the case, including names of the companies, have been disguised. This case is not intended to serve as endorsements, sources of academic or business data, or illustrations of effective or ineffective management of the personnel or company.

Only when the custodial staff showed up at his office door did Vinod Mehra realize that it was already 3 am. Vinod is the VP of Supply Chain for Dockomo Heavy Machinery Equipment Limited. He had spent the entire night analyzing the data from the spare parts division in Pune, India. It was April 15 and he had just two weeks to go before the annual review of the company.

The spare parts division's growth at Dockomo has slowed down to about 10 percent annually when compared to the growth rate of 20 percent an nually over the previous years. Their cancelled orders stood at a staggering 8 percent due to parts unavailability, but at the same time the inventory in the system was $6 million higher than the previous year. Vinod was unsure of the response he would receive from the board of directors, since the inventory level increased along with the number of cancelled orders.

At the meeting, the board was considerate, but Vinod was asked to conduct an analysis of the shortcomings and prepare a report on the leading causes for the unavailability of parts to the customers. He was also asked to prepare a report on the approach to be followed to fix these problems by the next quarterly meeting. Vinod was already aware of many issues which existed in the supply chain, but he had to go through a complete analysis to gain a clearer understanding of the shortcomings in their distribution processes.

Learning outcomes are eliminating usual options for a turnaround, understanding how organizations can respond to adverse industry /market changes through cost and productivity management, managing strategic cost control turnaround deployed across a company, turning a huge threat into an opportunity and the role of leadership in driving strategic cost management and importance of internal communication and buy-in for a successful implementation.

Ashok Leyland Ltd. is the 2nd largest manufacturer of commercial vehicles in India, the 4th largest manufacturer of buses in the world and the 12th largest manufacturer of trucks globally. Vinod Dasari joined this company in 2005, and since 2011, he has been the MD and CEO of the company. This case is about restaging of this company that commenced in the year 2013 when the company was heading toward a loss for the very first time in its 65 plus years of history. Ashok Leyland was heaving under its own weight, saddled with overheads, grappling with intense competition from old and new players and struggling to become agile and meet the new challenges in the market. A potential loss of up to Rs 750 crores (US$123m) looked inevitable. The challenges were that major structural changes were required and the company needed not only a transformational change but also a surgery. The company had to come up with savings of Rs 750 crores (US$123m) annually to avoid making losses. The projection of 54,000 unit sales volumes be achieved. Internal communication and buying in by all employees. This case outlines the path chosen by Dasari to restage, turn around, overcome the challenges and deal with employee resistance.

This study is applicable for MBA programs in business strategy, strategic marketing, international marketing and BBA programs in business strategy, strategic marketing and international marketing.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 11: Strategy.

The purpose of this study is to discuss the complexities and challenges involved in retailing luxury motorcycle brands in India.

This study has been developed by carrying out in-depth interviews of company officials of Triumph Motorcycles. The researchers also reached out to various distributors of luxury motorcycles in Tiers I and II cities, and through the interview process, tried to understand the problems/issues faced while selling luxury motorcycles.

There has been a marked increase in the branding and marketing of luxury products in the recent years. Although the two wheelers account for 80 per cent of the domestic demand, the luxury motorbike market in India is still in its introductory stages. This study discusses the challenges faced at Triumph Motorcycles and raises questions on what should be done to increase the market share of Triumph Motorcycles in India. Readers would get insights into the activities carried out to build customer connect and would be able to suggest marketing strategies and customer relationship programmes for luxury motorcycle brands.

This study can be used for the core course on marketing management or for elective courses on customer relationship management, brand management or consumer behaviour course in MBA programme.

International business

Undergraduate/graduate/executive education.

China has become the world's largest producer of automobiles, surpassing the USA and Japan. The Chinese auto industry differs quite significantly from those countries though. While the industry exhibits a substantial degree of concentration in the USA and Japan in early 2011, it remained highly fragmented in China. The Chinese Central Government had announced a desire for consolidation, yet it remained unclear whether a significant shakeout would occur in the near term.

Like many Chinese automakers, Chang'an partnered with well-known global auto makers to develop, produce, and distribute its products. In the coming years, Chang'an hoped to develop more independence from its foreign partners, including the production and distribution of self-branded cars. However, the company grappled with how it could strive for independence while managing its existing joint ventures. Executives worried too about how to compete with foreign automakers who had achieved global economies of scale.

The case provides a rich description of the evolution of the Chinese auto industry, and it documents how the Chinese industry differs from other global markets. Readers can analyze the extent to which they believe scale economies provide foreign firms an advantage over smaller Chinese rivals, and they can evaluate the conventional wisdom regarding the industry's minimum efficient scale. The case also provides a detailed account of Chang'an's rise to prominence. The case concludes by offering an in-depth description of the firm's key rivals, and it presents the key questions being considered by Chang'an executives in 2011.

Enables students to examine how and why an industry's structure can differ substantially across geographic markets.

Enables students to examine whether the need to achieve economies of scale may cause substantial consolidation in the Chinese auto industry.

Provides an opportunity to evaluate the pros and cons of the joint venture strategies employed in China.

Provides an opportunity to examine how a relatively small firm can position itself against large multinationals in a high-growth emerging market.

Teaching notes.

Students identify promotion, price, place, segment, targeting, and positioning for marketing “the world’s cheapest car.” This case is effective for MBA, undergraduate, and executive learners studying market segmentation, pricing, cannibalization risk, pricing, and break-even sales in the face of different price and cost scenarios. Has Tata chosen the right marketing strategy? Does the Nano represent an evolution or a revolution in automobile marketing?