AEREN FOUNDATIONS Maharashtra Govt. Reg. No.

: F-11724


SUBJECT: PRINCIPLE & PRACTICE OF MANAGEMENT
Marks: 80
CASE STUDY : 1
Intrnat!"na# Cas : Carr$"%r & '(!)( 'a* t" G"+
a!-Mart"s #$ggest g!o#a! %o&'et$tor $s the #$g Fre(%h reta$!er )arreto*r+ a ,$r& that has h-'er&ar.ets+ #$g
stores o,,er$(g a var$et- o, goo/s. It has &a/e !arge $(vest&e(ts aro*(/ the g!o#e $( 0at$( A&er$%a a(/ )h$(a.
1*t (ot a!! $s 2e!! as %o&'et$tors ta.$(g &ar.et share $ts ho&e &ar.et+ ,or $(sta(%e. There has #ee( eve(
s'e%*!at$o( o, a ta.eover #- a!-Mart or Tes%o+ a( E(g!$sh %ha$(. Mr. 1ar(ar/ has #ee( o*ste/ a,ter hea/$(g
the %o&'a(- ,or 12 -ears3 he 2as re'!a%e/ #- 4ose 0*$s D*ra(t 2ho $s o, Ger&a(-S'a($sh /es%e(t. A!tho*gh
the g!o#a! e5'a(s$o( $s %$te/ #- so&e as s*%%ess+ $t &a- #e eve( a #$g &$sta.e. It 2$th/re2 ,ro& 4a'a( a(/
so!/ 26 h-'er&ar.ets $( Me5$%o. )arre,o*r a!so ha/ 'ro#!e&s %o&'et$(g 2$th Tes%o $( S!ova.$a a(/ the
)7e%h Re'*#!$%. I( Ger&a(-+ the %o&'a(- ,a%e/ to*gh %o&'et$t$o( ,ro& A!/$ a(/ 0$/!e+ t2o s*%%ess,*!
/$s%o*(ters. O( the other ha(/+ $t #o*ght stores $( 8o!a(/+ Ita!-+ T*r.e-+ a(/ o'e(e/ (e2 stores $( )h$(a+
So*th 9orea+ a(/ )o!*&#$a. )arre,o*r has #e%o&e &ore %are,*! $( se!e%t$(g &ar.ets. 1*t. the %o&'a(- $s
eager to e(ter the I(/$a( &ar.et+ #*t ,o*(/ o*t $( !ate 2::; that a!-Mart 2$!! /o so as 2e!!.
I( Fra(%e+ 2here )arre,o*r $s 2e!! esta#!$she/+ the %o&'a(- &a/e the #$g &$sta.e $( $ts 'r$%$(g 'o!$%-. It
'ro#a#!- starte/ 2$th the 1666 &erger 2$th 8ro&o/es+ the Fre(%h /$s%o*(t %ha$(. )arre,o*r %o(,*se/ the
Fre(%h %!$e(te!e #- !os$(g $ts !o2-%ost $&age3 2hether the $&age %a( #e %ha(ge/ re&a$(s to #e see(. Mr.
D*ra(t+ the (e2 )EO s$(%e 2::<+ e&#ar.e/ o( the (e2 strateg- #- o,,er$(g 1< 'er%e(t (e2 'ro/*%ts $( $ts
h-'er&ar.ets a(/ 1: 'er%e(t $( $ts s*'er&ar.ets. Moreover+ he 2a(ts to e&'!o- &ore sta,,+ e5te(/ the
o'erat$(g ho*rs $( %erta$( h-'er&ar.ets+ %*tt$(g 'r$%es+ tr-$(g s&a!! stores+ a(/ '*sh$(g /o2( /e%$s$o(
&a.$(g. Mr. D*ra(t a$&s to sta- o(!- $( %o*(tr$es 2here )arre,o*r $s a&o(g the to' reta$!ers.
=*est$o(s:
1. >o2 sho*!/ Mr. D*ra(t assess the o''ort*($t$es $( var$o*s %o*(tr$es aro*(/ the 2or!/?
2. Sho*!/ )arre,o*r a/o't a!-Mart"s strateg- o, @!o2 'r$%es ever-/a-@? hat 2o*!/ #e the a/va(tage or
/$sa/va(tage o, s*%h a strateg-?
A. >o2 %o*!/ )arre,o*r /$,,ere(t$ate $tse!, ,ro& a!-Mart?
4. I/e(t$,- %*!t*res $( se!e%te/ %o*(tr$es that (ee/ to #e %o(s$/ere/ $( or/er to #e s*%%ess,*!?
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
Introduction of the Case:
Abstract:
Carrefour was the second largest retailer of consumer goods and groceries worldwide,
after Wal-mart. The company pioneered the concept of hypermarket in their home
country, France, as early as 196!s."owe#er, towards late 199!s$ Carrefour saw a
decline in their French hypermarkets owing to certain unfa#ora%le go#ernment
regulations and competition from hard discount stores. Carrefour introduced a series
of strategic initiati#es in an e&ort to re#amp the ailing French hypermarkets. 's a
result, French hypermarkets started showing signs of reco#ery towards late (). The
case discusses a%out the emergence and growth of hard discount stores in France.
This case also pro#ides scope for discussion of decline of Carrefour!s French
hypermarkets and its re#amp strategies.
Pedagogical Objectives:
The state of "ard discount stores in France
*mpact of go#ernment regulations on French retail industry
+rowth of Carrefour!s hypermarkets in France
,e#amp strategies of Carrefour hypermarkets in France.
1. How should Mr. Durant assess the oortunities in various countries around
the world!
-r. .urant, the new C/0 since (1, em%arked on the new strategy %y o&ering 11
percent new products in its hypermarkets and 1 percent in its supermarkets. -oreo#er,
he wants to employ more sta&, e2tend the operating hours in certain hypermarkets,
cutting prices, trying small stores, and pushing down decision making. -r. .urant aims
to stay only in countries where Carrefour is among the top retailers.
". #hould Carrefour adot $al%Mart&s strateg' of (low rices ever'da'(! $hat
would be the advantage or disadvantage of such a strateg'!
3es Certainly they ha#e to adopt the strategy of low pricing e#ery day, *n France, where
Carrefour is well esta%lished, the company made the %ig mistake in its pricing policy. *t
pro%a%ly started with the 1999 merger with 4romodes, the French discount chain.
Carrefour confused the French clientele %y losing its low-cost image.
The new strategy which they want to implement discounts and cutting prices ,trying
small stores certainly will help Carrefour to keep their competition in all o#er the world.
). How could Carrefour di*erentiate itself fro+ $al%Mart!
Wal--art is more than 5ust the world6s largest retailer. *t is an economic force, a cultural
phenomenon and a lightning rod for contro#ersy. *t all started with a simple philosophy
from founder 7am Walton8 0&er shoppers lower prices than they get anywhere else.
That %asic strategy has shaped Wal--art6s culture and dri#en the company6s growth.
9ow that Wal--art is so huge, it has unprecedented power to shape la%or markets
glo%ally and change the way entire industries operate. *n this article, you will learn the
key reasons that Wal--art has %een a%le to
keep its prices low -- cutting-edge technology, a frugal corporate culture and a push to
make suppliers sell merchandise at cheaper and cheaper prices. We6ll also take a look at
the scope of Wal--art6s impact on the economy and the contro#ersies surrounding Wal-
-art, as well as the future of the company.
With 1( million loyalty card-holders in France, %ut also :.1 million in 7pain, for e2ample,
Carrefour group
stores ha#e an e2cellent %ase from which to forge closer relationships with customers.
's a multi-format
retailer, Carrefour can o&er solutions addressing a wide #ariety of shopping ha%its. *n
(9, the Carrefour group is enhancing its knowledge of customers, with the aim of
ser#ing them %etter and impro#ing its %rand image. *n stores, the Carrefour %rand will
%e con#eyed in a way that is closer to the customer and more emotionally in#ol#ing. ;y
%eing more competiti#e, the %rand will again %ecome a tool for winning customers,
enhancing customer loyalty and distinguishing Carrefour from the pack. *n towns and
#illages, as con#ergence accelerates, the Carrefour %rand will pro#ide its %est stores to
more customers. *n this way, Carrefour will make customers want to come, and keep
coming, to its stores, regardless of the format or product o&ering. ;y focusing on
retailing, Carrefour will %ecome customers6 preferred retailer.
,. Identif' cultures in selected countries that need to be considered in order
to be successful!
Carrefour operates in (9 countries around the world. World population is rising,
geographic distri%ution of populations is shifting, world population isaging rapidly,
ethnic mi2es in de#eloped countries are changing rapidly, anda#erage household
incomes are increasing.
The demographic environment presents both opportunities and threats
for Carrefour. Increases in population size and household incomes help toexpand the
market in which Carrefour operates. However, changes in the geographic distribution of
populations, due to technological advances incommunications, may cause diculties
for Carrefour in determining pro!table locations for new storefront
#OCIO%C-./-0A.
1.9ew markets had seen dramatic changes in consumer %uying ha%its,coupled with
high growth in per capita "#$,
(.su%ur%ani<ation, greater participation of women in the la%or force, and a large
increase in theownership of cars and refrigerators.
=.The continued growth of su%ur%an communities a%road is another ma5or sociocultural
trend.
).'sian customers still tended to shop daily at wet markets or >mom ? pop@stores.
1.-oreo#er, impulse %uying was on the rise and replacing necessity purchasing.
6.7hopping as a form of leisure was an increasing phenomenon.
CO1C.-#IO1
Carrefour has positioned itself as an international leader in the retail industry.Their
strategies ha#e pro#en successful for a num%er of reasons. First, they ha#e %eena%le to
successfully transfer competencies to associates and managers across the glo%e.'lso,
they ha#e %een a%le to adapt to local cultures and consumer tastes as
necessary. *nsome cases, they ha#e e#en managed to change consumer tastes
and %uying ha%its. Theyha#e succeeded in entering new markets aggressi#ely and
gaining a large share of eachmarket. Carrefour has e#en %een a%le to restructure when
legalities made it necessary.The Auestion remains, then, what should Carrefour do in the
future. Carrefour should remain in the retail industry. *t should continue those practices
that ha#e pro#ensuccessful and proBta%le in the past. 'lso, Carrefour should continue to
le#erage itsknowledge of international markets to continue its rapid e2pansion across
the glo%e. Carrefour should, howe#er, %e wary of threats to its operations, and remain
#igilant * e2ploring new ways to impro#e its products and ser#ices. Carrefour has come
this far %ased on its a%ility to pioneer new retail concepts and should remem%er that
this pioneering spirit is what will carry it into the future.
CASE STUDY : ,
Intrnat!"na# Cas : Rn-!nr!n- t( B%s!nss Pr")ss at Pr")tr & Ga./#
8ro%ter B Ga&#!e C8BGD+ a &*!t$(at$o(a! %or'orat$o( .(o2( ,or 'ro/*%ts s*%h as /$a'ers+ sha&'oo+ soa'+ a(/
tooth'aste+ 2as %o&&$tte/ to $&'rov$(g va!*e to the %*sto&er. Its 'ro/*%ts 2ere so!/ thro*gh var$o*s
%ha((e!s+ s*%h as gro%er- reta$!ers+ 2ho!esa!ers+ &ass &er%ha(/$sers+ a(/ %!*# stores. The ,!o2 o, goo/s $( the
reta$! gro%er- %ha((e! 2as ,ro& the ,a%tor-"s 2areho*se to the /$str$#*tors" 2areho*ses #e,ore go$(g to the
gro%er- stores 2here %*sto&ers se!e%te/ the &er%ha(/$se ,ro& the she!ves.
The impro#ement-dri#en company was not satisBed with its performance and
de#eloped a #ariety of programs to impro#e its ser#ice and the eCciency of its
operation. 0ne such program was electronic data interchange, which pro#ided daily
information from the retail stores to 4?+. The installation of the system resulted in
%etter ser#ice, reduced in#entory le#els, and la%or-cost sa#ings. 'nother approach, the
continuous replenishment program, pro#ided additional %eneBts for 4?+ as well as for
its retailer customers. /#entually, the entire ordering system was redesigned, with the
result of dramatic performance impro#ements. The reengineering e&orts also reAuired
restructuring of the organi<ation. 4?+ had %een known for its %rand management for
more than 1 years. ;ut in the late 19Ds and early 199s, the %rand management
approach pioneered %y the company in the 19=s reAuired rethinking and restructuring.
*n a dri#e to impro#e eCciency and coordination, se#eral %rands were com%ined with
authority and responsi%ility gi#en to category managers. 7uch a manager would
determine o#erall pricing and product policies. -oreo#er, the category managers had
the authority to withdraw weak %rands, thus a#oiding conEict %etween similar %rands.
They were also held responsi%le for the proBt of the product category they were
managing. The switch to category management reAuired not only new skills %ut also a
new attitude.
=*est$o(s:
1D The ree(g$(eer$(g e,,orts o, 8BG ,o%*se/ o( the #*s$(ess 'ro%ess s-ste&. Do -o* th$(. other 'ro%esses+
s*%h as the h*&a( s-ste&+ or other &a(ager$a! 'o!$%$es (ee/ to #e %o(s$/ere/ $( a 'ro%ess re/es$g(?
2D hat /o -o* th$(. 2as the rea%t$o( o, the #ra(/ &a(agers+ 2ho &a- have 2or.e/ *(/er the o!/ s-ste& ,or
&a(- -ears+ 2he( the %ategor- &a(age&e(t str*%t*re 2as $(sta!!e/?
AD As a %o(s*!ta(t+ 2o*!/ -o* have re%o&&e(/e/ a to'-/o2( or a #otto&-*' a''roa%h+ or #oth+ to 'ro%ess
re/es$g( a(/ orga($7at$o(a! %ha(ge?
4D hat are the a/va(tages a(/ /$sa/va(tages o, ea%h a''roa%h.
Introduction of the Case:
Abstract:
;usiness process re-engineering F;4,G %egan as a pri#ate sector techniAue to
help organi<ations fundamentally rethink how they do their work in order to
dramatically impro#e customer ser#ice, cut operational, and %ecome world-
class competitors. ' key stimulus for re-engineering has %een the continuing
de#elopment and deployment of sophisticated information systems and networks.
Heading organi<ations are %ecoming %older in using this technology to support
inno#ati#e %usiness processes, rather than reBning current ways of doing work.
Business Process Re-engineering (BPR) is basically the fundamental re-thinking and radical re-design, made
to an organization's existing resources. t is more than !ust business im"ro#ising.
4rocter ? +am%le F4?+G, a multinational corporation known for products such as
diapers, shampoo, soap, and toothpaste, was committed to impro#ing #alue to the
customer. *ts products were sold through #arious channels, such as grocery retailers,
wholesalers, mass merchandisers, and clu% stores. The Eow of goods in the retail
grocery channel was from the factory6s warehouse to the distri%utors6 warehouses
%efore going to the grocery stores where customers selected the merchandise from the
shel#es.
1D The ree(g$(eer$(g e,,orts o, 8BG ,o%*se/ o( the #*s$(ess 'ro%ess s-ste&. Do -o* th$(. other 'ro%esses+
s*%h as the h*&a( s-ste&+ or other &a(ager$a! 'o!$%$es (ee/ to #e %o(s$/ere/ $( a 'ro%ess re/es$g(?
The reengineering e&orts also reAuired restructuring of the organi<ation. 4?+ had %een
known for its %rand management for more than 1 years. ;ut in the late 19Ds and
early 199s, the %rand management approach pioneered %y the company in the 19=s
reAuired rethinking and restructuring. *n a dri#e to impro#e eCciency and coordination,
se#eral %rands were com%ined with authority and responsi%ility gi#en to category
managers. 7uch a manager would determine o#erall pricing and product policies.
-oreo#er, the category managers had the authority to withdraw weak %rands, thus
a#oiding conEict %etween similar %rands. They were also held responsi%le for the proBt
of the product category they were managing. The switch to category management
reAuired not only new skills %ut also a new attitude.
2D hat /o -o* th$(. 2as the rea%t$o( o, the #ra(/ &a(agers+ 2ho &a- have 2or.e/ *(/er the o!/ s-ste& ,or
&a(- -ears+ 2he( the %ategor- &a(age&e(t str*%t*re 2as $(sta!!e/?
the category managers had the authority to withdraw weak %rands, thus a#oiding
conEict %etween similar %rands. They were also held responsi%le for the proBt of the
product category they were managing. The switch to category management reAuired
not only new skills %ut also a new attitude.
AD As a %o(s*!ta(t+ 2o*!/ -o* have re%o&&e(/e/ a to'-/o2( or a #otto&-*' a''roa%h+ or #oth+ to 'ro%ess
re/es$g( a(/ orga($7at$o(a! %ha(ge?
' to%down approach Falso known as stepwise designG is essentially the %reaking down
of a system to gain insight into its compositional su%-systems. *n a top-down approach
an o#er#iew of the system is formulated, specifying %ut not detailing any Brst-le#el
su%systems. /ach su%system is then reBned in yet greater detail, sometimes in many
additional su%system le#els, until the entire speciBcation is reduced to %ase elements. '
top-down model is often speciBed with the assistance of I%lack %o2esI, these make it
easier to manipulate. "owe#er, %lack %o2es may fail to elucidate elementary
mechanisms or %e detailed enough to realistically #alidate the model.
' botto+%u approach is the piecing together of systems to gi#e rise to grander
systems, thus making the original systems su%-systems of the emergent system.
;ottom-up processing is a type of information processing %ased on incoming data from
the en#ironment to form a perception. *nformation enters the eyes in one direction
FinputG, and is then turned into an image %y the %rain that can %e interpreted and
recogni<ed as a perception FoutputG. *n a %ottom-up approach the indi#idual %ase
elements of the system are Brst speciBed in great detail. These elements are then
linked together to form larger su%systems, which then in turn are linked, sometimes in
many le#els, until a complete top-le#el system is formed. This strategy often resem%les
a IseedI model, where%y the %eginnings are small %ut e#entually grow in comple2ity
and completeness. "owe#er, Iorganic strategiesI may result in a tangle of elements
and su%systems, de#eloped in isolation and su%5ect to local optimi<ation as opposed to
meeting a glo%al purpose.
$s a %onsultant recommended a to"-do&n a""roach.
4D hat are the a/va(tages a(/ /$sa/va(tages o, ea%h a''roa%h?
Bottom-up approach Top-down approach
'ummary
(igh de"loyment co#erage in early "hases
)arlier return on in#estment
(igh #isibility of organizational changes
(igher im"act to organization
*actical, limited co#erage
+elayed return on in#estment
,o&er im"act to o#erall organization
(igher de"loyment costs
$d#antages
-ser and business a&areness of the "roduct.
Benefits are realized in the early "hases.
.ou can re"lace many manual "rocesses &ith
early automation.
.ou can im"lement "ass&ord management for
a large number of users.
.ou do not ha#e to de#elo" custom ada"ters
in the early "hases.
.our organization broadens identity
management skills and understanding during
the first "hase.
*i#oli dentity /anager is introduced to your
business &ith less intrusion to your o"erations.
.our organization realizes a focused use of
resources from the indi#idual managed
a""lication.
*he first im"lementation becomes a sho&case
for the identity management solution.
0hen the "hases are com"leted for the
managed a""lication, you ha#e im"lemented a
dee"er, more mature im"lementation of the
identity management solution.
1"eration and maintenance resources are not
initially im"acted as se#erely as &ith the
bottom-u" a""roach.
+isad#antages
*he organizational structure you establish
might ha#e to be changed in a later roll-out
"hase.
Because of the immediate changes to
re"ository o&ners and the user "o"ulation, the
roll-out &ill ha#e a higher im"act earlier and
re2uire greater coo"eration.
*his strategy is dri#en by the existing
infrastructure instead of the business
"rocesses.
*he solution "ro#ides limited co#erage in the
first "hases.
$ minimal "ercentage of user accounts are
managed in the first "hases.
.ou might ha#e to de#elo" custom ada"ters at
an early stage.
*he su""ort and o#erall business &ill not realize
the benefit of the solution as ra"idly.
*he im"lementation cost is likely to be higher.
CO1C.-#IO1
' multi-%illion dollar corporation like 4rocter and +am%le Corporation, which carries =
%rands and growing really has a strong grasp in re-engineering. 4rocter and +am%le
Corporation6s chief technology oCcer, +. +il Cloyd, e2plains how a company which
carries multiple %rands has to contend with the Iclassic inno#ator6s dilemma in most
inno#ations fail, %ut companies that don6t inno#ate die. "is solution, inno#ating
inno#ation...I FTeresko, ()G. Cloyd has helped a company like 4rocter and +am%le
grow to J1.1 %illion %y the Bscal year of (). 'ccording to Cloyd6s scorecard, he was
a%le to raise the #olume %y 1:K, the organic #olume %y 1K, sales are at J11.) %illion
up %y 19K, with organic sales up DK, earnings are at J6.1 %illion up (1K and share
earnings up (1K. 4rocter and +am%le also has a free cash Eow of J:.= %illion or 11=K
of earnings, di#idends up 1=K annually with a total shareholder return of ()K. Cloyd
states8 IThe challenge we face is the competiti#e need for a #ery rapid pace of
inno#ation. *n the consumer products world, we estimate that the reAuired pace of
inno#ation has dou%le in the last three years. .igital technology is #ery important in
helping us to learn faster.I FTeresko, ()G +. +il Cloyd also predicts, in the near future,
Ias much as 9K of 4?+6s ,?. will %e done in a #irtual world with the remainder %eing
physical #alidation of results and options.I
CASE STUDY : 3
Intrnat!"na# Cas : T( Rstr%)t%r!n- "$ Da!.#r0Bn1
I( a 166; a//ress to sto%.ho!/ers a(/ ,r$e(/s o, Da$&!er-1e(7+ )EO 4*rge( S%hre&'' rev$e2e/ the 'os$t$o(
o, the /$vers$,$e/ %o&'a(-. >e starte/ #- sa-$(g @166< 2as a /ra&at$% -ear $( the h$stor- o, Da$&!er-1e(7.@ It
2as a!so a -ear that the #oar/ o, &a(age&e(t &a/e a &aEor #rea. 2$th the 'ast.
Da$&!er-1e(7+ 2$th &ore tha( A::+::: e&'!o-ees 2or!/2$/e+ %o(s$ste/ o, ,o*r &aEor gro*'s: The ,$rst+ #- ,ar
the #$ggest a(/ &ost s*%%ess,*! gro*'+ 2as Mer%e/es-1e(7 2$th a#o*t 2::+::: e&'!o-ees. It $s #est .(o2(
,or $ts 'asse(ger %ars a(/ %o&&er%$a! veh$%!es. The se%o(/ 2as the AEG Da$&!er-1e(7 $(/*str$es $( the
#*s$(ess o, ra$! s-ste&s+ &$%roe!e%tro($%s+ heav- /$ese! e(g$(es+ e(erg- s-ste&s te%h(o!og-+ a(/ a*to&at$o(.
The th$r/ 2as the Aeros'a%e Gro*' $( the #*s$(ess o, a$r%ra,t Cthe %o&'a(- has a &ore tha( o(e-th$r/ $(terest
$( the A$r#*s %o(sort$*&D+ s'a%e s-ste&s+ /e,e(se a(/ %$v$! s-ste&s+ a(/ 'ro'*!s$o( s-ste&s. F$(a!!-+ there
2as the I(ter Serv$%es Gro*' %o(s$st$(g o, s-ste&sha*s+ ,$(a(%$a! serv$%es+ $(s*ra(%e #ro.erage+ tra/$(g+
&ar.et$(g serv$%es+ &o#$!e %o&&*($%at$o(s serv$%es+ a(/ rea!
estate &a(age&e(t.
Da$&!er-1e(7 2e(t thro*gh var$o*s /eve!o'&e(t 'hases. Fro& 16F< to 166:+ $t /$vers$,$e/ $(to aeros'a%e a(/
e!e%tr$%a! e(g$(eer$(g. The a$& 2as to #e%o&e a( $(tegrate/ h$gh-te%h gro*'. Th$s /$vers$,$%at$o( 2as ,*rther
%o(so!$/ate/ $( the (e5t 'hase that e5te(/e/ ,ro& 166: to 166<. U(/er the !ea/ersh$' o, S%hre&''+ the %ore
#*s$(ess 2as re/e,$(e/ a(/ the strateg- re,o%*se/.
A 166<-6; 'ort,o!$o rev$e2 sho2e/ the (ee/ ,or re,o%*s$(g o( 2hat the %o&'a(- %o*!/ /o #est. To'
&a(age&e(t reeva!*ate/ $ts strateg$es a(/ $ts %ore #*s$(esses #ase/ o( e%o(o&$% %r$ter$a a(/ the strateg$% ,$t
o, the var$o*s a%t$v$t$es. It #e%a&e %!ear that the %o&'a(-"s stre(gths 2ere $( %ar &a(*,a%t*r$(g+ the tr*%.
#*s$(ess+ a(/ the ra$!roa/ se%tor. Mer%e/es 1e(7+ ,or e5a&'!e+ ha/ a stro(g %o&'et$t$ve 'os$t$o( 2$th $ts %ars
a(/ tr*%.s $( E*ro'e+ North A&er$%a+ a(/ 0at$( A&er$%a. Ga(s 2ere a!so re!at$ve!- stro(g $( E*ro'e+ a(/
#*ses ha/ a goo/ %o&'et$t$ve 'os$t$o( $( 0at$( A&er$%a. 1ase/ o( th$s a(a!-s$s+ the strateg$es ,or 'ote(t$a!
gro2th 2ere thro*gh g!o#a!$7at$o( a(/ the /eve!o'&e(t o, (e2 'ro/*%t seg&e(ts.
I( 166;+ to' &a(age&e(t reassesse/ the %o&'a(-"s 'os$t$o( a(/ $ts 166< *(sat$s,a%tor- res*!ts ,ro& $ts
o'erat$o(s. It 2as /$s%overe/ that the %o&'a(- 2as e5'ose/ to %*rre(%- ,!*%t*at$o(s that a,,e%te/ 'ro,$ta#$!$t-.
The %o&'a(-"s $&age 2as a!so #!*rre/ #e%a*se o, the ve(t*res $(to &a(- /$,,ere(t .$(/s o, $(/*str$es. The
&a(age&e(t #oar/ /e%$/e/ to %*t $ts !osses a(/ %hart a (e2 /$re%t$o( ,or the %o&'a(-+ 2$th greater e&'has$s
o( 'ro,$ta#$!$t-. The orga($7at$o( str*%t*re 2as t$ghte(e/ a(/ %erta$( #*s$(esses 2ere /$veste/. I( ,a%t+ 'o!$%-
/e%$s$o( ,ro& a( ear!$er 'er$o/ 2ere reverse/. The *('ro,$ta#!e AEG Gro*' a(/ the D*t%h a$r%ra,t
&a(*,a%t*rer Fo..er /$/ (ot re%e$ve ,$(a(%$a! s*''ort. S$(%e #oth the D*t%h gover(&e(t a(/ Da$&!er-1e(7
2$th/re2 s*''ort+ Fo..er ,$!e/ ,or #a(.r*'t%-. A!tho*gh these a(/ other /rast$% /e%$s$o(s he!'e/ re/*%e the
166< ,$(a(%$a! !osses+ the %o&'a(-"s goa! 2as (ot to e&'has$7e &a5$&$7$(g short-ter& 'ro,$ta#$!$t- #*t to
2or. to2ar/ &e/$*&- a(/ !o(g-ter& 'ro,$ta#$!$t-.
A (*&#er o, other &a(ager$a! /e%$s$o(s 2ere &a/e to a%h$eve the a&#$t$o*s goa!s o, re/*%$(g %osts a(/
$&'rov$(g 'ro,$ta#$!$t-. E&'!o-ees %!ose to the o'erat$o(s 2ere e&'o2ere/ to &a.e /e%$s$o(s (e%essar- to
%arr- o*t the$r tas.s. The orga($7at$o( str*%t*re 2as s$&'!$,$e/ a(/ /e%e(tra!$7e/ so that orga($7at$o(a! *($ts
%o*!/ res'o(/ ,aster to e(v$ro(&e(ta! %ha(ges. Moreover+ the (e2 orga($7at$o( str*%t*re 2as /es$g(e/ to
'ro&ote a( e(tre're(e*r$a! s'$r$t. )o(tro! 2as e5er%$se/ thro*gh a goa!-/r$ve(+ 'er,or&a(%e-#ase/ re2ar/
s-ste&. At the sa&e t$&e+ the (e2 str*%t*re 2as /es$g(e/ to 'ro&ote %oo'erat$o(. I( 1667+ the #oar/ o,
&a(age&e(t restr*%t*re/ a(/ $(tegrate/ the Mer%e/es-1e(7 Gro*' $(to Da$&!er-1e(7. )o(seH*e(t!-+
Mer%e/es-1e(7"s %h$e,+ >e!&*t er(er+ 2ho ha/ #ee( g$ve( %re/$t ,or a s*%%ess,*! &o/e! 'o!$%-+ res$g(e/
,ro& the %o&'a(-.
=*est$o(s:
1D hat $s -o*r assess&e(t o, Da$&!er-1e(7"s o'erat$o(s $( &a(- /$,,ere(t ,$e!/s?
2D Sho*!/ the var$o*s gro*'s o'erate a*to(o&o*s!-? hat .$(/s o, a%t$v$t$es sho*!/ #e %e(tra!$7e/?
AD Da$&!er-1e(7 $s #est .(o2( ,or $ts Mer%e/es-1e(7 %ars. h- /o -o* th$(. Da$&!er #o*ght AEG $( the ,$rst
'!a%e a(/ 2h- /$/ $t ve(t*re $(to the Aeros'a%e a(/ I(ter Serv$%es #*s$(esses?
4D G$ve( the a''are(t &$sta.es $( a%H*$r$(g (o(-a*to&ot$ve #*s$(esses+ 2hat sho*!/ 4*rge( S%hre&'' /o
(o2?
CASE STUDY : 2
Intrnat!"na# Cas : G#"/a# Car In3%str*
>o2 the 0e5*s as 1or(-a(/ )o(t$(*e/ Its S*%%ess $( the U($te/ States+ #*t 2$!! 0e5*s S*%%ee/ $( 4a'a(?
O(e o, the #est e5a&'!es o, g!o#a! %o&'et$t$o( $s $( the %ar $(/*str-. As the 4a'a(ese ga$(e/ &ar.et share $(
A&er$%a+ U.S. %ar &a.ers reH*$re/ the 4a'a(ese to se!,-$&'ose H*otas o( %ars e5'orte/ to the U($te/ States.
Th$s e(%o*rage/ 4a'a(ese ,$r&s (ot o(!- to esta#!$sh the$r '!a(ts $( the U($te/ States #*t a!so to #*$!/ #$gger
a(/ &ore !*5*r$o*s %ars to %o&'ete aga$(st the h$gher-'r$%e/ U.S. %ars- a(/ the e5'e(s$ve E*ro'ea( %ars s*%h
as the Mer%e/es a(/ the 1M.
O(e s*%h 4a'a(ese %ar $s the 0e5*s+ #- To-ota. Th$s %ar $s a$&e/ at %*sto&ers 2ho 2o*!/ !$.e to #*- a
Mer%e/es or 1M #*t %a((ot a,,or/ e$ther. $th a st$%.er 'r$%e o, IA<+:::+ the 0e5*s $s s*#sta(t$a!!- !ess
e5'e(s$ve tha( %o&'ara#!e E*ro'ea( $&'orts. I( 16FA+ To-ota set o*t to /eve!o' the #est %ar $( the 2or!/-
&eas*re/ aga$(st the Mer%e/es a(/ the 1M. The a$& 2as to 'ro/*%e a H*$et+ %o&,orta#!e+ a(/ sa,e %ar that
%o*!/ trave! at 1<: &$!es 'er ho*r a(/ st$!! avo$/ the gas g*77!er ta5 $&'ose/ o( %ars gett$(g !ess tha( 22.<
&$!es 'er ga!!o(. Th$s see&e/ to #e a( $/ea o, %o(,!$%t$(g goa!s: %ars #e$(g ,ast see&e/ $rre%o(%$!a#!e 2$th %ars
#e$(g at the sa&e t$&e ,*e!-e,,$%$e(t. To &eet these %o(,!$%t$(g goa!s+ ea%h s*#s-ste& o, the %ar ha/ to #e
%are,*!!- s%r*t$($7e/+ $&'rove/ 2he(ever 'oss$#!e+ a(/ $(tegrate/ 2$th the tota! /es$g(. The ,$rst vers$o( o, the
A2-va!ve G-F e(g$(e /$/ (ot &eet the ,*e! e%o(o&- reH*$re&e(t. The e(g$(eers a''!$e/ a 'ro#!e&-so!v$(g
te%h($H*e %a!!e/ @thoro*ghgo$(g %o*(ter&eas*res at the so*r%e.@ Th$s &ea(s a( atte&'t to $&'rove ever-
%o&'o(e(t *(t$! the /es$g( o#Ee%t$ves are a%h$eve/. Not o(!- the e(g$(e #*t a!so the tra(s&$ss$o( a(/ other
'arts *(/er2e(t %!ose s%r*t$(- to &a.e the %ar &eet U.S. ,*e! reH*$re&e(ts.
To-ota"s a''roa%h to a%h$ev$(g H*a!$t- $s /$,,ere(t ,ro& that o, Ger&a( %ar &a(*,a%t*rers. The !atter *se
re!at$ve!- !a#or-$(te(s$ve 'ro/*%t$o( 'ro%esses. I( %o(trast+ To-ota"s a/va(%e/ &a(*,a%t*r$(g te%h(o!og- a$&s
at h$gh H*a!$t- thro*gh a*to&at$o( reH*$r$(g o(!- a ,ra%t$o( o, the 2or. ,or%e *se/ #- Ger&a( %ar &a.ers.
I(/ee/+ th$s strateg-+ $, s*%%ess,*!+ &a- #e the se%ret 2ea'o( to ga$( &ar.et share $( the !*5*r- %ar &ar.et.
=*est$o(s:
1D 8re'are a 'ro,$!e o, the 'ote(t$a! #*-er o, the 0e5*s.
2D hat sho*!/ Mer%e/es a(/ 1M /o to %o*(tera%t the 4a'a(ese threat $( the U($te/ States a(/ E*ro'e?
AD h- has the 0e5*s &o/e! #ee( ver- s*%%ess,*! $( the U.S. #*t has (ot #ee( &ar.ete/ $( 4a'a(?
CS*ggest$o(: Rev$e2 the ,reH*e(%- o, re'a$r re%or/s o, !*5*r- %ars. A!so ta!. to 0e5*s /ea!ers or 0e5*s
o2(ersD.
4D Do -o* th$(. 0e5*s 2$!! s*%%ee/ $( 4a'a(? h- or 2h- (ot?