Case Study Collections for the month of August - 2012 Case Study 1 Let us examine the problem faced

by Mr. Nataraj, Regional Manager of Alpha Pvt. Ltd. Alpha makes and distributes products from more than 10 international pharmaceutical and health care companies. Mr. Nataraj is responsible for managing existing clients and also to get new clients. He manages a number of sales representatives. Important customers have a dedicated sales representatives, while other sales representatives try to get new clients. One day an important customer (Good Health Hospital) called Mr. Nataraj and complained that Mr. Bhavan (the sales representative) was ineffective and insisted he be removed, or else they would not give any business. Here are Mr. Nataraj's thoughts:

In an internal enquiry, Mr. Nataraj found that the real reason was personal differences between Mr. Bhavan and the hospital superintendent. The track record of Mr. Bhavan was good and he was liked within the company. Dismissing him or even transferring him to a new region will affect the morale of the work force.

Good Health Hospital is a major customer and gives good business. Loosing the hospital is not an option. Therefore the demands of the hospital have to be met.

What will be your decision if you are Mr.Natraj?

Case Study 2

This case is about the strategic alliance between Finnish mobile handset major Nokia Corporation and information technology behemoth Microsoft Corporation to compete in the hypercompetitive smart phone market. Nokia faced severe competition from companies like Apple, Inc. and Google, Inc. who entered the market for high-end smart phones after 2007. Analysts said Nokia's poor focus on software and the lack of the latest operating system on its smart phones were the main reasons for its declining market share. Nokia's board appointed a new CEO, Stephen Elop (Elop), who was a former executive at Microsoft, to bring more of a focus on software. Soon after taking over as CEO of Nokia, Elop sent out a memo to the employees emphasizing the need to bring about drastic changes at the company. In February 2011, Nokia announced the alliance with Microsoft in which Nokia would use Microsoft's mobile OS Windows Phone on its smart phones. As per the deal, Windows Phone would replace Symbian as the primary OS on Nokia's phones and Nokia would pay royalties to Microsoft for using its OS. Microsoft would in turn provide support to Nokia in selling its new Windows Phone powered smart phones. There were mixed reactions from analysts to the alliance between Nokia and Microsoft. The challenge before the senior management at Nokia and Microsoft was how to make the alliance work. Issues: Understand issues and challenges in strategic alliances. Understand the threats that established players in the market face from new entrants, new technology, etc. Analyze the strategies that market leaders should follow to counter competition from new entrants. Discuss and debate whether Nokia's alliance with Microsoft will enable it to recapture market share that it had lost. Analyze the new strategies planned and implemented by Stephen Elop in reviving the fortunes of Nokia. Discuss what Nokia and Microsoft should do to make the alliance a success. Case Study 3

General Motors Company's (GM) foray into China was a successful one. Of all the leading auto markets, China was the highest growth market for GM as could be seen from the fact that it sold 2.35 million vehicles in FY 2010, 29 percent more than in 2009. This was the first time in the 102-year-old history of GM where it had sold more cars and trucks in China than in the US. Going forward, GM China had set ambitious plans to garner a market share of 14 percent and produce 5 million units by 2015. Its decision to launch a new brand, the Baojun 630, in 2011 was viewed as an attempt by the company to target first time car buyers living in Tier II and Tier III markets in China and also to compete against domestic car manufacturers in China. Some experts opined that GM China's changing strategy was a bid to cope with the change in the industry structure in the rapidly growing Chinese auto market. According to a September 2010 draft plan by the Ministry of Information and Industry (MII) in China, foreign automakers in China were required to transfer their technology to their Chinese partner. The plan was in stark contrast to the partnership deals the foreign automakers had with their Chinese partners. The partners had a 50:50 stake in the JV where the foreign partner could keep its intellectual property and technology with it while the local partner would offer it market access. The proposed plan received mixed reactions with some foreign automakers feeling that the move was a "technology shakedown" as they were forced to share their technology with their domestic partners and eventually their rivals. Moreover, industry analysts felt that low-cost brands such as Baojun could become a threat to GM's existing brands. They were of the opinion that the move to go downmarket to target the middle-class segment could jeopardize the brand image of GM which enjoyed the reputation of launching quality brands in the Chinese automobile market. This case is meant for MBA/MS level students as part of their Strategic Management/ International Business Curriculum. Issues: Understand the reasons for GMs success in China, and the growing importance of the Chinese market for GMs overall strategy. Discuss and debate whether the Chinese automobile industry was witnessing structural changes and what GM could do about it. Understand the threats to GM Chinas long-term success and how it could overcome these threats while taking advantage of the opportunities provided by China. Case Study 4

This case discusses the reasons for the search engine giant Google Inc.'s acquisition of the mobile device manufacturer Motorola Mobility Holdings Inc. (MM), the value that MM brought to the table, and the downside that the acquisition presented to Google. In 2007, Google launched the smartphone operating system Android in collaboration with 33 telecom companies. Android was made available for free as Google's strategy was to reduce the cost of mobile web access, enabling more people to access Internet on mobile devices and induce them to use its search services which would bolster its advertising revenue. Android was widely adopted by device makers, and, by June 2011, it had cornered 43.4% of the worldwide smart phone operating software segment. However, Google and Android had a weak portfolio of wireless patents, a fact exploited by Google's competitors like Apple and Microsoft, which filed patent infringement cases against Android collaborators. Many of these cases were settled or were expected to be settled in favor of Google's rivals, resulting in Android device makers having to pay royalties to the patent holders. Mobile device makers were finding it increasingly more expensive to deploy Android. Analysts felt that Google had to buy patent suites to file counter suits against the Android detractors. Google adopted this path and on August 15, 2011, announced that it was acquiring MM, a company with a deep suite of patents. With this deal, Google was also expected to compete effectively with Apple by coming up with refined devices that perfectly synced with Android. However, many experts felt that Google had committed a phenomenal folly and wondered whether it would be able to derive the intended synergies from the deal - they pointed out to MM's precarious financials and a weak smartphone market presence, Google's questionable capabilities in running a brick-and-mortar business, its ability - or the lack of it - to assimilate MM's mammoth taskforce given the stark contrasts in organizational cultures, and the potential dismantling of the Android network due to conflict of interests. A vital question being asked was whether Google could simultaneously collaborate and compete with its alliance partners for Android. This case is meant for MBA students as a part of the Managing Networked Businesses/ Corporate Strategy/ Strategic Management curriculum. Issues: Understand various issues and challenges in managing networked businesses. Understand which is a superior strategy, organic growth (which usually entails longer gestation period) or inorganic growth.

 Discuss the issues that companies need to take care of while building market shares, more so in the technology segment, and the capabilities that they should nurture to sustain the market dominance. Understand if it is a sustainable strategy for a company to acquire another one operating in a segment alien to it just to acquire market share. Understand the disadvantages of the strategy to compete at the expense of an existing and thriving collaboration. Discuss the strategies that Google needs to adopt to keep the Android network intact.