Case Summary:
Hindustan Lever Limited, India’s leading and fast moving consumer goods (FMCG) and services Company, had enjoyed a competitive advantage as a lone provider of personal hygiene care products until the development of India’s economy. However, with the entry of multinational FMCG companies HLL started experiencing stagnant growth and lower profit margin, and was under pressure of rising its incomes and revenues. At this point HLL’s new ventures division identified the untapped and unexplored rural India (where two-thirds of the population lived), as a key source of growth and expansion for the future. To continue on its competitive edge, HLL designed an innovative approach to penetrate these rural markets, with a project called
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Shakti scheme has an advantage of being a more personalized service than a retail store, as HLL can reach its final consumer directly through these mediums rather than depending on a third source. HLL can start giving more preference to these entrepreneurs by providing more discounts, creating a mutual network - where they can share experiences, success stories and motivate each other etc. This will in turn increase the number of entrepreneurs and make them more powerful against the direct sales channel. By doing so HLL can also save on the time spent by RSPs to reach and coach an individual entrepreneur and these RSPs can now explore the untapped rural districts to bring in more entrepreneurs.
• Exploit iShakti and Shakti Vani: HLL can continue on its competitive edge by triggering the social development of rural India. iShakti and Shakti Vani can offer access to information and social communication which would be major tools to increase health and hygiene awareness in rural India. In turn such awareness would improve HLL sales in long term.
Course of
2. By performing some research over the internet, I found out some figures that could justify the attractive of the Indian market. For instance, globally more than one billion people lack access to safe drinking water and approximately 2.4 Billion people
As the financial consultants of Catawba Industrial Company our aim is to determine the best course of action to pursue with respect to the introduction of the new proposed light weight compressor. This course of action must remain within the production capacity restrictions the company faces.
Firstly, specific identification method is a method of recording inventory costs for small number of expensive identifiable or easily distinguished items like cars or automobiles, furniture, handcraft, fine watches, and jewelry. Using this method, you can calculate the cost of goods sold and cost of ending inventory at the end of the accounting period. What to do first is to do a physical count of the remaining specific identifiable items which can easily be separated. Then the cost of each remaining item is tracked (that is unit cost) and multiplied by the number of it available in the inventory. The same is done for the other items and then the total cost of the items is calculated. This will give the cost of the ending or remaining inventory. The cost of goods sold is calculated by subtracting ending inventory from purchases.
7. What lessons can each company draw from its Indian experience as it contemplates entry
Opportunities identified by economic (e.g. low penetration electronic products) and sociological factors (e.g. more nuclear families) lead to likelihood of increased demands for Haier's products. The threat highlighted by the political factor (unavailability of suitable road infrastructure to rural India) is challenging to counter involving government bodies and of high-cost. It is not clear from the case study why the Indian government is delaying infrastructure projects although the economic and sociological factors indicate growth (e.g. 8.3% growth in GDP, more nuclear families, rising disposable income) generating more revenues.
Credit Accumulation & Transfer Scheme (CATS) – Undergraduate – Degree in Business & Management Studies
A study by Assocham in 2011 estimated the rural consumer durables market to grow at 40% in 2012 as a result of higher disposable income among rural consumers. The size of the home appliance market in India is pegged at `30,000 crore, with air-conditioners, refrigerators and washing machines as the largest categories, though household peneration levels are in low single-digits.
Tata Steel acquired Corus Group in April 2007 for £6.2bn. Tata Steel is India’s largest private sector steel company with 2005/06 revenues of US$5.0 billion and crude steel production of 5.3 million tons across India and South-East Asia. Corus Group is Europe's second largest steel producer with annual revenues of over £9.2 billion and a crude steel production of 18.2 million tons in 2005. This is an interesting acquisition as the acquired company was almost four times the size of the acquirer in terms of revenue. The combined entity became the fifth largest steel company in the world. The acquisition allowed Tata Steel entry into the European market. This deal follows the merger of Arcelor-Mittal forming world’s largest steel company. It is the biggest deal ever from an emerging market. The deal is a powerful combination of low cost upstream production in India with the high end downstream processing facilities of Corus. The deal occurred through 9 rounds of competitive bidding between Tata Steel and
Abstract- Tata Group, was founded by Jamsetji Tata in 1868 this group is India’s most respected institutions today. Tata Sons Limited holds major share of Tata Group which is a conglomerate. In this study we will look into how Tata Consultancy Service Ltd which is one of its conglomerate has risen to be one of the best in India.
The Reguero-Almandeel-Purohit Company uses a business organization known as a corporation. The term means that an enterprise gives restricted risk to the investors. As from its definition, none of the shareholders in the organization is committed to the obligations of the company; banks can look just to the partnership's available assets as payment (Zhang et al., 2006). The enterprise records its particular expense form and pays taxes on its wages. If it happens that the organization conveys some of its profit to be dividends, then it will not deduct the profit in tax computation, yet the shareholder-beneficiaries must pay charges on those profits despite the fact that the company has paid assessments on its income.
clients who may not be slanted to hold up in light of the fact that different makers are prepared to address there issues.
My business is called, ‘BRG staircase company LTD’ Our products are bespoke staircases that are modern and spectacularly different compared to our competitors, and then we recommend joiners to fit the staircases into your home, our wooden staircases are manufactured to your specific requirements, complying with the current building regulations. We are committed as a business to work with you on your projects and to assist you with advice on design and materials to help you create the look you are after. The type of manufacturing that we strive in is quickly disappearing but we feel that we can compete against the bigger companies. We offer our customers a superior hand-crafted bespoke product that can be manufactured to your specific requirements. This high standard of craftsmanship, service and materials, without compromise offers a truly bespoke and unique piece of joinery that has customers returning time and time again. Cost is always a factor and we believe customers are looking for great value for money, a quality product with a level of service that they can rely on. We strive to be very competitive and provide advice and alternatives to produce a product that looks spectacular and works within your budget requirements. We offer bespoke staircases in a range of materials, including Redwoods, Southern Yellow Pine, Hemlock, Oak, Ash, Walnut and ,and more. All materials used are quality graded from traceable sustainable sources.
Tata Motors Limited, a subsidiary of the Tata Group, is one the largest automobile players in India. In 2008, the market saw the reveal of the Tata Nano, which was introduced as India’s first low-priced People’s Car. The retail price was set at $2,500, catering to the mainly the low-income segment of the market. (Profile, 2013).
Bharat Petroleum Corporation Ltd. is an Indian state-controlled oil and gas company headquartered in Mumbai, Maharashtra. Bharat Petroleum offers a full range of Automotive Engine Oils, Gear Oils, Transmission oils, Specialty Oils and Greases. BPCL has a gamut of products under the category of lubricants targeted towards the different set of customers based upon their usage
The analysis concluded that outlying India offers enormous opportunities which businesses can tap with regards to growth and progress. However, companies experience many challenges inside tackling the outlying markets. 833 million people have a home in India when compared with 377 million inside urban India therefore vast untapped opportunities can be purchased in rural India, but marketer struggle to tap these opportunities due to lack of infrastructure facilities. Literacy rate is lacking in rural area so people can't identify brand difference. However, now the literacy rate is also increasing in rural India. Variety of middle and greater income household inside rural India is anticipated to grow from 80 million to 111 thousand. There is swift development in infrastructure these opportunities attract companies to rural market. Using some technologies development in distribution as well as marketing of goods in rural Indian, companies in outlying market can earn more profits, marketplace share, etc. The Rural market is often a greater future prospect for your marketers and there are various opportunities available for him or her in rural