Yogesh Ganjir 1221142 MBA -IJK

Class Learning

Problem Identification Primary problem: 1. Lack of coordination/ strategic focus in global market after coming to European market. Secondary Problem: 1. Profitability is going down. Generation of alternative 1. Suggestions: Short Term: 1. Acquiring smaller players, this will help in reducing cost of investments and also the local small players are very familiar with the market. 2. Outsourcing the process and product to reduce the operation cost and financial stability. 3. The company can actually use the mix of standard and customized product i.e. 80% standard products and 20% customized product. Long Term: 1. Instead of running after all countries select the countries which have close culture with the company. Learning: 1. Lack of strategic clarity can lead to lose focus on global market. 2. When we enter to any new market start with couple of countries, stabilize their and then expand. 3. Too much of customization can lead to increase in cost of production. 4. Reckless acquisition can lead to waste of investment and financial stability of company. 5. 80% of acquisition doesnt result in positive mean because of working cultural difference and difference in human resources.

6. By running away from problem nothing is going to solve, so it is still worthwhile to face the challenges. 7. Just because you are big company it doesnt mean that you can enter any new market without doing a proper research and should not underestimate any small players. 8. B2B market is much tougher than B2C. 9. 90% of the international businesses are B2B in terms of consumer durables.\ 10. Under the cost pressure it is advisable to outsource the process and product to lower the cost of production. 11. A mix of standard production and customized production is a good strategy to increase the profit margin.