Examine the localization strategies of BAT in South Korea.
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International Business
Case Studies
CASE STUDY (20 Marks)
Mode of settlement of
disputes/differences arising out of national or international contracts are
settled through Arbitration. However, when a dispute/difference arises, both
the purchaser and the supplier shall first try to resolve the same amicably by
mutual consultation. If the parties fail to resolve the dispute by such mutual
consultation within twenty one days, then, depending on the position of the
case, either the purchaser or the supplier shall give notice to the other party
of its intention to go for arbitration as per the contract. When the contract
is with domestic supplier, the applicable arbitration procedure will be as per
Indian Arbitration and Conciliation Act, 1996. When the contract is with
foreign supplier, the supplier has the option to choose either Indian
Arbitration and Conciliation Act, 1996 or Arbitration in accordance with the
provision of UNCITRAL (United Nations Commission on International Trade Law)
Arbitration Rule. UNICITRAL was, established on17 Dec; 1966, by the United
nations General Assembly. The purpose of UNICITRAL is to provide uniform
guidelines for trade between the nations. Since international trade `laws are
complex, UNICITRAL formulates training programs in various nations on
interpretation and implementation of various trade laws. The venue of
arbitration shall generally be the place from where the contract has been
issued except when foreign supplier opts for Arbitration, in accordance with
the provision of UNCITRAL, Arbitration Rules, the venue can be a neutral
country.
Answer
the following question.
Q1.
Give your views on the role of UNICITRAL towards the development of
international trade..
Q2.
Why should the venue of arbitration be the place from where the contract has
been issued, in case of domestic suppliers?
CASE STUDY (20 Marks)
The case discusses UK based tobacco
company British American Tobacco (BAT) business strategies in South Korea. One
of the largest tobacco companies in the world, BAT operated in more than 180 countries.
South Korea was a tough market and several
multinational companies, which had
found success in many countries across the world, were unsuccessful when it
came to South Korea. In such a scenario, BAT not only managed to enter the
highly monopolized tobacco market in Korea, but also carved a niche for itself
and became the second largest player within few years. BAT entry into the
market coincided with the macroeconomic changes and liberalization in the
country. By taking advantage of these changes, BAT was able to establish itself
firmly in the market. By gaining thorough understanding of the market, BAT
introduced several new products with low tar content for the Korean consumers.
However, by early 2007, with changing attitudes towards smoking and increasing
prices of tobacco, industry experts felt that BAT could be in for some tough
times ahead.
Answer
the following question.
Q1.
Analyze the entry and expansion strategies of BAT in South Korea.
Q2.
Examine the localization strategies of BAT in South Korea.
Q3.
Examine the challenges faced by BAT in South Korea.
CASE STUDY (20 Marks)
In 1982, seven people in Chicago died
after taking Tylenol due to an unknown suspect lacing the capsules with cyanide
after the products reached the shelves. In the immediate aftermath, Tylenol's
commanding 37% market share dropped to just 7% nationwide, despite the problem
being contained to the Chicago area. Tylenol was not responsible for the
tampering of the product, but to maintain the product's reputation, Johnson
& Johnson pulled all of the Tylenol from the shelves, absorbing a loss of
more than $100 million dollars. Tylenol was successfully reintroduced with
tamper resistant packaging, discounts, and sales presentations to the medical
community. The brand survived due to swift action and effective public
relations from Johnson & Johnson.
Answer
the following question.
Q1.
Why the market share of Tylenols dropped despite no fault of their own?
Q2.
Comment on the corrective actions taken by Johnson & Johnson.
CASE STUDY (20 Marks)
Tesco's move into Korea offers a
classic case study of building market share internationally. The company made
some smart moves in their Korean expansion, most notably partnering with
Samsung, the leading Korean conglomerate, and embracing the Korean way of life
by operating stores as local businesses and community centers. Tesco also made
a smart move by employing nearly 100%Koreans on staff, with only 4 British
employees out of 23,000. Reports indicate that Tesco's intelligent strategy has
won over
shoppers in Seoul, with 25% of Koreans
signed up for loyalty cards and sales in the billions, finding success in
"cracking the Asian tiger," where competitors such as Carrefour and
WalMart have failed.
Answer
the following question.
Q1.
What strategy was adopted by Tesco’s in building market share internationally?
Q2.
What may be reasons of WalMart failure in Korea?
Assignment Solutions, Case study Answer sheets
Project Report and Thesis contact
ARAVIND – 09901366442 – 09902787224
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