INTERNATIONAL BUSINESS

CASE STUDY PRESENTATION BY SAKSHI LALWANI

KOMAL THADAVISHAL WAVALPRATIK SAVALA

RITESH TRIPATHISAGAR SRIVASTAVA

P&G P&G established in India in 1964. Headquarter is in cincannati , USA Founder was James Gamble & William Proder Listed in BSE & NSE

GODREJ In 1918 - Godrej Soaps Limited incorporated Headquarter is in Mumbai Founded by Ardeshir Godrej and Pirojsha Godrej in 1897 Sectors- Real estate, consumer products, industrial engineering, appliances, furniture,

security and agricultural products

JV BETWEEN GODREJ & P&G Announced- 1992 Strategic Alliance Marketing joint venture – PGG P&G paid -50 crore . Capacity utilization -80,000 tpa. Existing contract

P&G- Fast alliance with godrej less HUL. P&G-gained access . Godrej –vegetable oil . P&G - technology . PGG starts operations .

BREAK UP OF THE JV Decision making Multitasking &Single focus Target mismatch High cost

Sudden Capacity reduction Value issues Mismatch of thoughts Poor understanding

LEARNINGS

Market behavior Brand building Faster decision making Business expansion Values

CURRENT SCEANRIO OF JV IN INDIA

More JV ‘s Government policy Make in India Jv’s have lead to growth

Alliances in airlines

What is alliances in airlines ? eg STAR Alliance, One world ,Sky team.

TYPES OF ALLIANCE

1.Equity Alliances Co-operative contracts are supplemented by equity investments

Ex: Etihad Airways & India’s Jet Airways

2. Non Equity AlliancesCo-operation managed directly through contracts, without cross-equity holdings

3.Joint Venturescooperating firms form an independent firm in which they invest.

Ex: Lufthansa-Air China JV since 1989

IMPORTANT REASONS TO FORM ALLIANCES

Seamless service networks Compete against rivals To achieve risk reduction Cost reduction Service quality improvement Marketing advantages

PORTER’S 5 FORCE ANALYSIS

ADVANTAGES OF ALLIANCES

THE EFFECTS OF ALLIANCES :  Economies of scale Globalization Network integration Access to technology Resource sharing Reducing competition

ADVANTAGES FROM CUSTOMER VIEW POINT

Greater network access Seamless Travel Transferable priority status Extended lounge access Enhanced frequent-flier program (FFP) benefit Wider range of schedules

DISADVANTAGE OF ALLIANCES Complex organizational architecture Cultural distances Decision-making deadlocks Clashing interests Membership fees Customer exploitation

CURRENT SCENARIO Star Alliance One world Sky Team

Member Airlines: 28 15 20

Number of aircraft : 4657 3300 4400

Number of airports: 1330 1,010 1052

Daily departures: 18,500 14,296 15,700

Sales Revenue (in USD billion)

$179.05 $143.041 $159.41s

Number of employees: 432603 389,788 459,781

Destination countries 193 155 177