CAPSTONE

PROJECT

A research paper submitted in

fulfillment of the requirements for
Capstone Project

MBA GLOBAL

SANJIT KUMAR SAHOO

UM14376

EXECUTIVE SUMMARY
This report aims to look at the learnings obtained while studying at three partner
Universities and encapsulate strategic learnings through cross cultural business
environment based on the current policies and procedures in three different
continents.
After the investigation from European Business Context, Sweden and the
Netherlands surfaced as the most optimal countries to pursue. With proactive
policies toward elderly care, their governing bodies have fostered spirited
innovation with incentives stimulating trailblazing flagship programs and
technological advancement. A profound competitive analysis of the EU indicated
there is a strong interest in developing the sector based on these existing projects
in the field. Conversely, as these are merely pilot projects, each in an infantile
stage, iLead can still capitalize on the benefits inherent in a budding market.
Aluminum, one of the most widely used metals, has seen dramatic changes in the
industry in terms of market share, geographic and product demand and pricing.
With a growth rate of 6% year over year, aluminum has outpaced all other metals in
terms of growth. Overall the emerging BRIC economies consume over half of the
worldwide aluminum supply with China being the major consumer at 40%. The
major use in developing markets is for construction, as aluminum is priced lower
than other metals. In addition to being the biggest global consumer, China is also
the largest producer of aluminum at 49.5%. The worldwide market consists of six
major players and has seen the emergence of non-fully integrated companies
focusing on one value adding stage of the supply chain. Aluminum is traded on the
commodities market and as such pricing is determined not only by supply and
demand but also by financial trends, such as investor stockpiling and fluctuations in
oil prices.
When evaluating the market landscape for Seifas, a new potential entrant in the
global medical device marketplace, we first analyzed numerous international
segments of interest. We conducted robust macro environmental and situational
analyses, exploring population demographics, social factors, technological acumen
and current national political state. This comprehensive initial appraisal served as a
benchmarking and assessment tool from which we could develop an entry strategy
for two markets. Our findings revealed a large population of diabetic consumers in
the US, and sizable subset of intravenous drug users in the Baltics, catalyzed
greatest growth and opportunity for Seifas.
As needle retractability and
disposability are the cornerstone features of the Seifas product, the public health
issues in these markets served as an open invitation for market entry.

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Table of Contents
EXECUTIVE SUMMARY................................................................................................. 1
1. INDIAN PERSPECTIVE OF DOING BUSINESSS FROM THE BHUBANESHWAR
MASTER PROJECT........................................................................................................ 3
2. EUROPEAN PERSPECTIVE OF DOING BUSINESSS FROM THE ANTWERP MASTER
PROJECT..................................................................................................................... 5
3. AMERICAN PERSPECTIVE OF DOING BUSINESSS FROM THE NEW YORK MASTER
PROJECT..................................................................................................................... 6
4. INTEGRATION OF INDO-EUROPE-US BUSINESS PERSPECTIVES AND LEARNINGS
DERIVED..................................................................................................................... 7
5. OUTCOMES FROM THE THREE MASTER PROJECT AND HOW IT HELPED BUILD
LEARNING................................................................................................................... 7
6. SWOT ANALYSIS FROM THE STUDENT EXPERIENCE OF THE THREE MASTER
PROJECTS.................................................................................................................... 9
7.

RECOMMENDATIONS FOR FUTURE MASTER PROJECT FROM LEARNINGS GAINED

10

8.

CONCLUSION...................................................................................................... 10

9.

BIBLIOGRAPHY.................................................................................................... 10

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1. INDIAN PERSPECTIVE OF DOING BUSINESSS FROM

THE BHUBANESHWAR MASTER PROJECT
The landscape of the Indian business has been changing with demand and consumption more
heavily occupied by developing countries such as China and India. NALCO is in a position to
benefit from the current trends in the aluminum industry but the constraints mentioned, such as
pricing strategy, under-utilized capacity, and lack of critical resources, such as power, has stalled
their potential. New capital is necessary to facilitate projects to spur the growth and ensure a
stable future. Through new governmental policies, such as disinvestment, FDI policies, and other
Make in India incentives, the growth factors indicate that India is ripe for foreign investment.
One way to obtain foreign investment are Public Private Partnerships, which offer a means of
investment that benefits both involved parties, and can target certain projects, such as increases
power capacity and diversifying products lines to include finished projects as mentioned above.
These added activities can increase the capacity and output of NALCO, thus ensuring a
sustainable, competitive future in the growing economy of India.
Revenue from operations was lower compared to previous year primarily on account of a
strategic decision to limit metal production by using electricity generated through linkage coal
only, as use of high priced imported coal will not be cost effective at the current level of LME.
NALCO still could achieve a higher profit due to certain management interventions like
complete stoppage of power purchase from the Grid, improved efficiency in consumption of fuel
oil, reduced use of imported coal, reduction in metal production etc. and higher volume of
alumina production and sale.
If a government owned company like NALCO wants to attract the private sector, more
specifically foreign investors, it needs to recognize the challenges and drawbacks related to the
development of a PPP.
Complexity and Higher Transaction cost
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PPPs have complex structures and complexity within organizations usually means higher costs
(PPIAF, 2009). The number of players that is normally involved in the implementation of a PPP
is an indicative of the complexity and required level of analysis in order to organize and manage
the various factors of a PPP (PPIAF, 2009).
Long-term commitment
PPPs require a long-term commitment between the public sector and private organization. For a
public authorized company, like NALCO, this long-term commitment can present challenges and
constraints that need to be taken into account carefully before commencement (PPIAF, 2009).
Few of these specific constrains are listed below.
Flexibility
A PPP contract is recognized as an incomplete contract, which means that the contract cannot
guarantee partnership for all unforeseen circumstances in the future. The more complex and
longer the contract is, the more it is impossible for the public authority to not deal with
unforeseen circumstances.
Planning Constraints
PPPs require a stable, long-term planning horizon. If the public authority company cannot
clearly specify its future commitment and its flexibility towards the changing technology and
environment, it might not be suitable for a public private partnership.
Culture gap
There exists a culture gap between the private and public sector, which might result in loss of
trust in each other when working together in a PPPs (PPIAF, 2009). The motive of the private
party to take part in a PPP is primarily profit making and to build up their reputation. However
the public sectors motive is mostly social attractiveness (PPIAF, 2009).
Establishment for PPP Policy Framework
Implementation of a PPP requires the prior establishment of a PPP Policy Framework. Several
structural measures will need to establish an enabling environment, which may attract interest
from the private sector for the provision and funding for the PPP. The public commitment will
need to cover the costs of the initiation process to implement this partnership.
Dominance of foreign players in PPP market
PPPs are generally led by experienced international players with the required expertise and
financial stability to assume the financing and risk of the PPP investment. This is even more the
case in developing countries like India. The predominant role of large foreign contractors may
both have political implications and may directly affect the local contracting industry by
restricting the implication of domestic players.
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 Private profit at the publics expense

There is an often-heard criticism that says that PPPs give private sector investors the opportunity
to make profits by providing services which could have been provided by the public sector more
cost-effectively. It may be reinforced in the event of government subsidies and the notion that
taxpayers money is being used to directly fund the profit margins of private investors.
It will be crucial for both parties to set up a trusting relationship between the public and private
parties of the partnership to enhance a sustainable commitment towards each other and increase
efficiency in the collaboration between the two.

2. EUROPEAN PERSPECTIVE OF DOING BUSINESSS

FROM THE ANTWERP MASTER PROJECT
The product, the VanHove+, that will be sold offers an integrated solution for homecare services
that will enhance the quality of life of the elderly and keep them at home as long as possible. The
product offered is a combination of a household robot and a Smart House. The robot helps older
people in their daily lives. The robot has both artificial emotional and intellectual knowledge.
Through an integrated camera and LCD-screen, the patient can have video calls with relatives or
their doctor. The former will help older persons to keep them out of isolation while the latter will
facilitate medical interaction to keep doctors in touch with their patients.
When considering this exciting new venture, rife with innovation and potential for growth, we
have left no stone unturned, examining all considerations that can promote or inhibit your
achievement in the field. These finding indicate:

Demographic changes reflecting a rapidly aging elderly population with a growing desire
for independence
Existence of suppliers to show the market size and competition
Current and projected shortages in labour supply inherent in a shrinking nursing sector
Existence of governmental policies stimulating innovation
Changing country cultures and increased proclivity towards acceptance of robots

After this investigation, Sweden and the Netherlands surfaced as the most optimal countries to
pursue. With proactive policies toward elderly care, their governing bodies have fostered spirited
innovation with incentives stimulating trailblazing flagship programs and technological
advancement. A profound competitive analysis of the EU indicated there is a strong interest in
developing the sector based on these existing projects in the field. Conversely, as these are
merely pilot projects, each in an infantile stage, iLead can still capitalize on the benefits inherent
in a budding market.
Finally, after providing an illustrative picture of the market and items for consideration, we feel
confident when recommending entry strategies for the short and long term that include:

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Maintaining a home base for production in the United States, while exporting product and
training employees in the Netherlands and Sweden
Setting up partnerships with local municipalities or real estate companies
Targeting customers in accordance with local laws.

In doing so, iLead will be in a position to benefit from EU initiatives and foster real growth
within the field. We truly believe in the value of this product, and thank you for the opportunity
to be involved in its success.
When launching the product, iLead should take the legislation of the EU, Sweden and the
Netherlands into consideration. To protect their product, they should apply for a patent at the
WIPO. Their brand name and the physical aspects of the product should be protected as well.
To successfully enter the market, iLead should take advantage of the initiatives taken by the EU
to improve the quality of live for older persons. To minimize the risks, iLead should keep the
manufacturing in the USA and export it to the Netherlands, where the logistic centre and the HQ
for the EU will be set up. In Gothenburg, a smaller office will be set up in order to make sure to
offer qualitative services to the customer. In the long run, iLead could consider to move a part of
the production to lower wages countries in the EU and to open offices on strategic places, such
as the social park in Bilboa.
Due to the early implementation stage of our product, development costs and the costs for the
technology are high which leads to a higher selling price. Therefore it is necessary for iLead to
lower the price in order to make it attractive for potential customers to buy it. iLead should lobby
with the different governments and persuade them to subsidize the product it is selling. When
lobbying towards the Swedish and Dutch government to get a refund for its product, they should
emphasize on the increasing need for homecare services and the labour shortages.

3. AMERICAN PERSPECTIVE OF DOING BUSINESSS FROM

THE NEW YORK MASTER PROJECT
When evaluating the market landscape for Seifas, a new potential entrant in the global medical
device marketplace, we first analyzed numerous international segments of interest. We conducted
robust macro environmental and situational analyses, exploring population demographics, social
factors, technological acumen and current national political state. This comprehensive initial
appraisal served as a benchmarking and assessment tool from which we could develop an entry
strategy for two markets. Our findings revealed a large population of diabetic consumers in the
US, and sizable subset of intravenous drug users in the Baltics, catalyzed greatest growth and
opportunity for Seifas. As needle retractability and disposability are the cornerstone features of
the Seifas product, the public health issues in these markets served as an open invitation for
market entry.
From this survey, we felt confident we had fundamental insights into the respective markets and
conducted competitor analyses within the sphere. Standing on a strong foundation of
understanding, we set marketing objectives, identified target markets, found appropriate
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positioning and developed a comprehensive marketing mix for Seifas in both the United States
and in the Baltics. Two-fold, we divided our marketing objectives into financial and nonfinancial segments. Looking for commercial gain, we set our goal for the US at a 2% market
share in the first three years and a growth of at least 5% per year after that. In the Baltics, we
went for a more aggressive strategy, planning to secure 10% of the market three years after
launch, followed by an above-average growth rate of 4.3% (based on current BMI Research,
2014). In order to do achieve our goals, we plan to align with major GPOs in the US, and local
and federal governments in the Baltics.

4. INTEGRATION OF INDO-EUROPE-US BUSINESS

PERSPECTIVES AND LEARNINGS DERIVED
As the specific target markets and positioning in the US were based on heavy concentrations of
diabetic patients and disproportionate drug use, Florida and Texas surfaced as states rife with
opportunity, meeting both criterion. A mid-priced product, ideal for hospitals, pharmacies, health
organizations and individuals, we positioned our product accordingly. In the Baltic regions, we
would base our operations out of Estonia, sell at a low market price for insulin users, vaccination
camps, hospitals, pharmacies and health organizations. Seifas patented, single dose syringe
mechanism will help combat the spread of menacing diseases of TB, diabetes and AIDS without
impacting caregiver budget. We would primarily sell through bundled packages and B2B
advertising in the medical sector, the implementation details of which are further elaborated
below.
The foreign investors will have a cutting edge advantage by entering into PPP under the FDI
policies:

Ensure open market access and fair competition for the Global players.
Protect the public interest and maximize the value added to citizens in terms of
infrastructure development.
Define the optimal level of grant financing both to realize a viable and sustainable project
but also to avoid any opportunity for windfall profits (or losses) from grants.

Assess the most effective type of PPP for a given project with the appropriate parameters:
balanced distribution of risks, appropriate duration, and clarity of responsibilities within the
various regulatory environments.
iLead should enter the EU market by launching its product (the VanHove+) in Sweden and the
Netherland first. A country comparative study has shown that these two countries had the best
characteristics for new products in the homecare sector for older persons. A competitive analysis
of the market has shown that no other competitors exists in the EU, but strong positive signals
have been given through several pilot projects focusing on robotics in the homecare sector for
older persons.

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5. OUTCOMES FROM THE THREE MASTER PROJECT AND

HOW IT HELPED BUILD LEARNING
A country comparative study has shown that Sweden and Netherland had the best characteristics
for new products in the homecare sector for older persons. A competitive analysis of the market
has shown that no other competitors exists in the EU, but strong positive signals have been given
through several pilot projects focusing on robotics in the homecare sector for older persons.
When launching the product, one should take the legislation of the EU, Sweden and the
Netherlands into consideration. To protect their product, they should apply for a patent at the
WIPO. Their brand name and the physical aspects of the product should be protected as well.
To successfully enter the market, one should take advantage of the initiatives taken by the EU to
improve the quality of live for older persons. To minimize the risks, one should keep the
manufacturing in the USA and export it to the Netherlands, where the logistic centre and the HQ
for the EU will be set up.
Concerning position within the market, we aim to distinguish our product such that our
customers will be able to understand and see clear and distinct differentiation vis-vis our peers.
We aim to focus on five key attributes including added value, cost, service, distribution and
packaging for creating a unique image for our product. Also, we have designed the positioning
keeping mind the Wallet Allocation Rule (W.A.R) i.e. in modern times, how customers spend is
not related to the brand but relative to other brands. We have derived our positioning statement
by understanding a series of market facts wherein we:
Defined the market in which the product will compete.

Identified the attributes that define the product space.

Determined the product's share of mind to find the main objective of

advertising and promotion.

Determined the product's current location in the product space

New capital is necessary to facilitate projects to spur the growth and ensure a stable future in the
Indian Business. Through new governmental policies, such as disinvestment, FDI policies, and
other Make in India incentives, the growth factors indicate that India is ripe for foreign
investment. One way to obtain foreign investment are Public Private Partnerships, which offer a
means of investment that benefits both involved parties, and can target certain projects, such as
increases power capacity and diversifying products lines to include finished projects as
mentioned above.

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6. SWOT ANALYSIS FROM THE STUDENT EXPERIENCE OF

THE THREE MASTER PROJECTS
Weaknesses
Homecare market is dominated by
few players mainly housing providers
and healthcare businesses.
Low investment for developing
innovative product market
demand isnt meet

Diverse market with many providers

providing niche products
Willingness of adults to work beyond
retirement age keen to pay for
services (e.g. robotics)

ANTWERP
MASTER
PROJECT

Strengths

Threats

Increase in population of people

aged +65
Only 20% of the homecare market is
in hands of the private
Low availability of home care
providers

Fear of lower pensions ability to buy

robotics decreases
Strong public policy to encourage nonresidential care and independent living
didnt show off

Opportunities

Weaknesses
Foreign Players entering into Aluminium
sector
High Technological Improvements
required for developing innovative product

Strengths
Huge Market Size and fast developing
economy
Cheap Labour Force
Regulatory Framework and Investment
Protection

INDIAN
MASTER
Opportunities
PROJECT
Increase in domestic consumption via
Make in India Campaign

Weaknesses
High Technological Improvements
required for developing innovative product
Long incubation period for developing
medical products

Threats
Exhaust of natural resources and faster
depletion

Strengths
Huge Market Size and fast developing
economy
Regulatory Framework and Investment
Protection for new medicinal products

AMERICAN
MASTER
Opportunities
PROJECT
Increase in demand for medicinal

products on account of living life style

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Threats
Chinese Players entering into medical sector
with reasonable price

7. RECOMMENDATIONS FOR FUTURE MASTER PROJECT

FROM LEARNINGS GAINED
It was an overwhelming and enriching experience while understanding the policies and
guidelines for various market entry strategies in three different continents. I would like to
recommend that other partner universities should give some live projects as we did it in India.
Moreover from the point of view of the processes and knowledge acquired over two years, I am
really satisfied with the existing format of the Master Project.

8. CONCLUSION
Regular business events organized by the three partner universities provided us a platform for
interacting with the international business community, industry associations or Indian and
European authorities. The events created an opportunity to share experiences and learn from each
other as well as establish new business contacts and realize new business opportunities. We got
an opportunity to listen to guest speakers with business or industry background who delivered
excellent speeches on current and relevant topics, be it the latest tax reform, financial investment,
intercultural cooperation or typical obstacles of doing business in India etc.

9. BIBLIOGRAPHY
AAL JP. (2014). About/Objectives. Retrieved from Ambient Assisted Living Joint
Programme: http://www.aal-europe.eu/about/objectives/
ABI Research. (2014). Consumer and Personel Robotics. Retrieved from ABI
research:
http://www.abiresearch.com/research/1003675Personal+Robotics+2009
Accompany. (2014). About Accompany Project. Retrieved from Accompany:
http://accompanyproject.eu/
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ActiZ. (2014). Culturele diversiteit in de ouderenzorg. Retrieved from ActiZ:

http://www.actiz.nl/kleurrijke-zorg/culturele-diversiteit-in-de-ouderenzorg
Acton, A. (2013). Issues in Healthcare Technology and Design: 2013 Edition.
Atlanta: Scholarly Editions. Retrieved from http://books.google.be/books?
id=NtRK5kN17DEC&pg=PA31&lpg=PA31&dq=german+health+care+robotics
&source=bl&ots=CGsmR7cbm&sig=ZpR5lYbGot8kA7T9ihQQE3hUFlk&hl=en&sa=X&ei=K4dnVJSU
KtjlarPbgYgK&ved=0CDwQ6AEwAw#v=onepage&q=german%20health
%20care%20robotics&f=false
Baker & McKenzie. (2014). Promoting Medical Devices Globally. Retrieved
from
Baker
&
McKenzie:
http://www.bakermckenzie.com/promotingmedicalproductsglobally/
Berger, O., & Ekberg, K. (2013). Filling the gap in long-term professional care
through systematic migration policies. Germany.
Boer, F. (2014, June). De geschiedenis van de ouderenzorg in Nederland.
Retrieved from IS Geschiedenis: http://www.isgeschiedenis.nl/nieuws/degeschiedenis-van-de-ouderenzorg-nederland/
Boerma, W., Genet, N., Hutchinson, A., Kroneman, M., & Saltman, R. B.
(2013). Home care across Europe: Case studies. Retrieved from Nivel:
http://www.nivel.nl/sites/default/files/bestanden/Home-care-across-Europecase-studies.pdf
Bremner, B. (2011, March 3). Service Robots: Rise of the Machines (Again).
Retrieved
from
BloomberBusinessweek:
http://www.businessweek.com/magazine/content/11_11/b4219032532458.ht
m
CIBG. (2014). Wat is het CIBG? Retrieved from CIBG: https://www.cibg.nl/
CompanionAble. (2014). The CompanionAble Project. Retrieved from
CompanionAble:
http://www.companionable.net/index.php?
option=com_content&view=category&layout=blog&id=8&Itemid=2
Conway, D. (2014, May 28). Retrieved from ARK Investment Management:
http://ark-invest.com/industrial-innovation/nurse-assistant-robots

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