Two Traditional Rivals

Vinay Sehgal Dharmesh Marwah

Business Environment

PESTLE ANALYSIS
Political
Liasioning SEZ -Tax Benefits FDI policy Disinvestment Policy

Economical
Social
Technological
Legal

Environmental Issue NGO- Swadesi

Acquisition of PSUs would reduced the capital cost in putting new manufacturing plant

Seal of SGI by FDA

PUBLIC SECTOR UNIT (PSU)

O Strategies for further expansion of business houses,

acquiring the PSU becomes a critical tool. O The respective organizations are ready to take any risk for this PSU. O Benefits: by reducing the prices they are trying to increase their margins.

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PREPARING STRATEGIES FOR PSU

O Marwah & Sehgal employees started their research in

understanding the pros and the cons, of the PSU. O If u have been a CEO of an FMCG co then what strategies would you make to bid for the same PSU??? O Each Company to make their position strong in the race for bidding, they started tying up with each other for the bids.

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Internal Factors
O Staff Attitudes

O Available Skills
O Assets

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ETHICS
O 3 questions would give you an answer.
1. 2.

Is your decision legal? Is your decision balanced between what's right and what isn't? How do you personally feel about it?

3.

ETHICS Contd
O Corporate strategies some times even include un

ethical plans for successful strategy implementation.

O In the movie Corporate:

O Nishi bribes Shell,secretary of Parvez (CEO of Marwa group) O Gets confidential data about Marwas strategies. O Steals data from Parvezs laptop about their confidential plans of

launching a Mint Based Soft drink.

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O FDA gives a notice of contaminated production to Sehgal groups new

cold drink Just Chill which has traces of Pesticides. O ....\Desktop\rohit\rohit20.wmv

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Politics plays its role again

O Marwas approaches State Finance minister Gulabrao to seek support for his Corporate Rivalry with Sehgal

O O
O

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ACQUISITION
O A corporate action in which a company buys most, if

not all, of the target company's ownership stakes in order to assume control of the target firm. Acquisitions are often made as part of a company's growth strategy whereby it is more beneficial to take over an existing firm's operations and niche compared to expanding on its own. Acquisitions are often paid in cash, the acquiring company's stock or a combination of both. O Types: O Friendly O Hostilie

BEFORE HOSTILE AQUSITION

FRISCON INDIA
FRISCON INTERNATIONAL 6%

SGI 44%

RUIA 8%

OTHERS

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AFTER HOSTILE AQUSITION

FRISCON INDIA

FRISCON INTERNATIONAL 6%

SGI 44%

MARWA GROUP 21.5%

OTHERS

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