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011

Project (Course-specific)

Total Weighted
Date Time: Mark:
30

Student’s Name

Student’s ID

Course Name/ Code International Business Management /BUS 417

Instructor Dr. Anis Bachta

Semester Spring 2021

CLOs as per the

Syllabus All

For details of marking scheme, refer to Rubrics # ACA/F11.04

Note: This Project accounts for 30% of the Student Final Grade.

You must respect the working guidelines given below and the submission date.
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Project (Course-specific)

Working Guidelines for Project

A. Project Structure:

It is recommended that your project report have the following structure in the
order provided here.

1. Title page

The students’ details should be filled in the cover letter provided.

2. References

You are responsible for appropriately citing material and methods that you use.
Give references for the data collected from a text book, a magazine or a website
identifying its sources while using the appropriate form. In the references section,
references should be in a numbered list, ordered alphabetically by the last name
of the first author.

• Writing Style: Times New Roman, 12

• The students are required to submit a soft copy of their report
and addition to an oral presentation.
Report body and Conclusion instructions:
• Number of Words: 1500 (+/- 10%)
• Figures and Pictures are Allowed (Not included in the words count)

B. Project Submission:

Project submission date is 18-5- 2021.

Students are required to submit the report soft copy in Moodle System before
18-5-2021

CASE 1 (15 marks)

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Project (Course-specific)

Mahindra & Mahindra

Mahindra & Mahindra (M & M) is a major player in the tractor and certain segments of the
automobile market in India. After an impressive growth for a few years, the tractor market in
India has been stagnating during 1998-1999 to 2000-2001. M & M has been selling its tractors
and utility vehicles in foreign markets including USA. Some of the components for its products
have been sourced from abroad. M & M has a 100 per cent subsidiary in USA, Mahindra USA,
with a strong network of 100 dealers. Mahindra has a five per cent market share in the US
market in the 20-30 horse power (HP) range. As a part of the strategy aimed at building a global
supply chain, Mahindra USA has signed a memorandum of understanding (MoU) with the
Korean tractor major Tong Yang, a part of the $ 2 billion Tong Yang Moolsam group, according
to which Mahindra will source high horsepower (mostly 25-40 hp range) and sell them around
the world under the M & M brand name. To start with, the premium range of tractors will be sold
in the US. M & M’s current tractor range is more utility-oriented and lacks the aesthetic appeal
that Tong Yang’s tractors have, a must for a strong presence in the US market.

Questions:

1) What are the advantages and disadvantages of global sourcing? (5 marks)

2) How will the foreign market expansion help M & M? (5 marks)

3) How does the strategic alliance with Tong Yang benefit M & M? (5 marks)

CASE 2
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Project (Course-specific)

Benetton in the fast lane (15 marks)

Famous for its shocking advertisements Benetton started in 1955 as a small business. Lucianno
Benetton and his family started by selling colored sweaters door to door in Treviso, Italy. Over
time a regional network of family, friends and agents set up a closely monitored set of distinctive
retail outlets. Over a 15-year period Benetton built up 300 affiliated but independently owned
outlets in Italy and a factory with new methods to dye and condition wool. Benetton was not
directly involved in the retail outlets, who received high quality products at low costs.

Part of the manufacturing savings are realized by outsourcing to neighboring subcontractors.

Today Benetton has kept this loose network of independent production subcontractors and
distribution agents but has now built up to a global network of over 7,000 retail stores. Of these,
Benetton owns only about 50 flagship stores, and the great majority are operated by independent
entrepreneurs. Over 80 per cent of production still takes place in Italy and the company is still 72
per cent owned by the Benetton family.

Benetton is one of those successful global companies that was partly successful because its
production and design concept was built on a strong home base. It then expanded the marketing
end of its business through closely monitored (but not owned) independent stores. These were
able to use the Benetton brand name and distinctive colors and were supported by clever
international advertising.

Benetton does not advertise its clothes directly. Rather its advertisements are for a “lifestyle”.
The “United Colors of Benetton” ads are designed for a homogeneous global consumer
interested in fast cars and a fast lifestyle. Benetton goes in for cutting-edge advertising that grabs
public attention. This creates an image of new-age awareness, as Benetton advertising has
featured Formula I cars, AIDS, high art, and “attitude”.

How well this plays out globally is uncertain. For example, in 1988 Benetton had 700 retail
stores in the US but by 1995 it only had 150. Is this because Benetton has too European an image
to succeed in middle America? How can an Italian family firm understand the American

lifestyle from its European bases?

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Project (Course-specific)

Questions:

1) Is Benetton a multinational enterprise? (5 marks)

2) What are the country-specific factors that have helped Benetton be a success? (5 marks)

3) What are Benetton’s firm-specific advantages? (5 marks)

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Project (Course-specific)

Answers