Академический Документы
Профессиональный Документы
Культура Документы
Case Analysis:
Havells india
Submitted by:
PGP/14/260 NITESH KUMAR GUPTA PGP/14/290 RAHUL MITTAL PGP/14/280 MAHTAAB KAJLA PGP/14/313 VINNY ARYA
Group V
PGP/14/287 PRACHI CHAWLA PGP/14/315 VISHAD DUBEY
Industry defined
Strategic Management
Group V
Challenges
Financing is difficult considering the size of SLI Small size of senior management group Not formal M & A personnel Integrating the SLI managers with Indian team
Strategic Management
Group V
Strategic Management
Group V
Strategic Management
Group V
Strategic Management
Group V
Strategic Management
Group V
Strategic Management
Group V
Resources Human Resources Intangibles - Retaining intellectual capital of Sylvania and Havells - Worlds third largest company in lighting industry next to GE and Phillips - Brand visibility in more than 30 countries -11 manufacturing plants in 5 countries, 22 sales & distribution facilities in Europe, South America & middle east - Had hard(plant & equipment) resources and employees(8400) constitutes soft resources
Synergies
Reciprocal synergies Modular synergies - Sharing of distribution and marketing network - Havells & SLI will manage most of their resources independently and pool only results
Strategic Management Group V
Market Factors Market Uncertainty - Low Havells keeps pace with technology to produce quality products. Its are certified &abide all safety standards. Hence customers will continue to buy their products. -Competition was intense from large and established players Players CG, bajaj electricals ECDs (very high) L&T, simmens Industrial switchgear Legrand, indoaisan domestic switch gear Cable and wire polycab, finolex, cci, universal cables (very high)
Forces of Competition
Collaboration Capabilities Collaboration Capabilities - Past experience to acquire Electrium was in vain due to its inexperience in M&A field - But they have now learned how to negotiate international deals and build relationship with bankers
Strategic Management
Group V
Analysis of Factors
Factor
Types of Synergies Nature of Resources Extent of Redundant Resources Degree of Market Uncertainty Level of Competition
Degree
Reciprocal-Modular Low/Medium low Low/Medium High
Strategy
Acquisition-Non Equity alliance Acquisition Non Equity alliances Acquisition Acquisition
Recommendation: the synergy generating resources are hard mostly, combining the resources would definitely be a plus, the degree of market uncertainty is low-Medium because of wide dimensions of market, and the level of competition both in domestic as well as international market is high; so its a good idea to go for acquisition than alliance.
Strategic Management
Group V
Increased market power Overcoming entry barriers Increased diversification Reshaping the firms competitive scope Lower risk as compared to developing new products Learning and developing new capabilities
Strategic Management
Group V