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IB Answers case study

IB Answers case study

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Published by Sameem Aman
sameem aman
sameem aman

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Categories:Types, Business/Law
Published by: Sameem Aman on Feb 11, 2012
Copyright:Attribution Non-commercial


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(a) What was the critical catalyst that led Kodak to start taking the Japanese marketseriously?Kodak: The Changing StrategiesBy 2000, Kodak, the company thatpioneered the imaging industry byinventing easy-to-use cameras andphotographic film, was in deep crisis. Withthe advent of digital cameras in the mid1990s, Kodak found its sales declining asconsumers preferred the new cameras,which did not use films. The growingpopularity of digital cameras led to a slumpin film sales, which was a major revenuegenerator for Kodak. Additionally, the newtechnology attracted a lot of competitionfrom traditional as well as new players. Inorder to maintain its lead in the industry,Kodak decided to adopt the new technologyand reinvent itself from a camera and filmmanufacturer to a digital imaging company. The case discusses the evolution of thedigital camera market and the shrinkingfilm business. It also highlights the strategies
adopted by Kodak to embrace the newtechnology to sustain its leadershipposition.(b) From the evidence given in the case do you think Kodak’s charges of unfairtrading practices against Fuji are valid? Support your answer.
n December 5, 1997 the US lost its first major trade dispute in the newly formedWorld Trade Organization(WTO). The high-profile case pitted photographic paper and film giants
against one another along with their respectivegovernments, the US and Japan. Kodak claimed that Japan's photographic market &distribution structure, "deny[ed] [Kodak] fair and equitable marketopportunities."
Essentially, Kodak was arguing that it could not penetrate theJapanese market beyond a certain level due to structural restraints, governmentintervention, and back-room policies that favored Fuji.
On the other hand, Fuji & theJapanese government contended that Kodak's poor showing in Japan was due todeficient marketing, management, and investment in the Japanese market. Fuji and theJapanese government refused to enter into negotiations with Kodak because they perceived Kodak's allegations as groundless.This refusal to even discuss Kodak's complaint prompted a May 1995 Kodak filingwith the US Trade Representative's office under Section 301, which allows the US touse unilateral action against unfair trading practices. This was viewed to be Kodak's best chance to pry open the Japanese market. To Kodak's jeopardy, the case wasturned over to the WTO's Dispute Settlement Body in June of 1996. On December 5,1997 the WTO ruled against Kodak and the US saying it had found no evidence that,"Japan rigged its domestic markets to favor Fuji Photo Film Co. over Kodak."
1 Which company is truly Multinational ? Why?
A Truly Multinational Company
The Axel Johnson Institute, the predecessor to Nordic Water, was founded as early as in the beginning of thesixties in Nynäshamn. It was an exceptional institute, as it was privately owned. From the beginning the businessconcept was clean water. Here they should develop, design, manufacture and deliver machines and equipment for water and wastewater treatment.
 It appears to have been an excellent business idea. At the Institute they were innovative and soon they obtained patents for a number of products which were exported under the name of Axel Johnson Engineering with greatsuccess. The business was doing well and soon we became leaders on the international market. A position whichwe have managed to keep over the years.The company has developed and changed in many ways but it has always adhered to the original business idea.Today our name is Nordic Water and our head-office is in Göteborg. Besides we have offices and servicedivisions in Nynäshamn, Mariestad, Klippan and Hanhals. Our main market is outside Scandinavia. So far wehave offices in Norway, Germany, The Netherlands, Spain and China.We may not be the biggest but we are world leaders when it comes to water purification.
From the standpoint of the multinational marketer, the differences between nations overseas are great. In the past, these differences generally led a U.S. company to view its strategy in each country strictly as a local problem. However, in recent years the situation has been changing, and the experiences of a growing number of multinational companies suggest that there are real potential gains to consider in standardizing various elements of the marketing programs used in different areas. These gains range from substantial cost savings and more consistent dealings with customers to better planning, control,and exploitation of ideas with universal appeal.
One of the most widely discussed developments of the past decade has been the emergenceof
companies as important competitors in an ever-growing number of industries. As thetrade barriers in Western Europe and elsewhere have diminished, more and more companies have foundattractive opportunities for expansion in countries other than their traditional home markets. For some ofthese companies, operations abroad have become so extensive and so complex as to require significantchanges in organization and operating methods. The problems confronting management in a trulymultinational company are clearly different in degree, if not in kind, from those of traditional firms.
At a time when most CEOs would be drawing their retirement plans, Sundram Fasteners’ (SFL) CMD SureshKrishna, 67, is busy plotting the company’s growth strategy. Over the next five years, his target is to take SFLand its associate companies’ turnover from Rs 800 crore this fiscal to Rs 2,000 crore.Naturally when I met him, my question was: Forty four years of hard work at SFL, what keeps you going? Hisreply was: Set a target, achieve it and keep raising the bar to prevent complacency from setting in.A look back at the history of SFL reveals how Mr Krishna not only set bigger and bigger targets but moreimportantly, looked at the big picture to transform SFL into where it is today. Production facilities in three

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VK Ltd a multi-product Company, furnishes you the following data relating to the year 2000. First Half of the year Second Half of the year Sales Rs. 45,000 Rs. 50,000 Total Cost Rs. 40,000 Rs. 43,000 Assuming that there is no change in prices and variable costs and that the fixed expenses are incurred equally in the two half years periods calculate for the year 2000. 1. The Profit Volum

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