When one company takes over another and
clearly established itself as the new owner, the
purchase is called an acquisition.
Gain market share.
Economics of scale.
Enter new market.
Utilization of surplus funds.
• Location: Dearborn, Michigan
• Founded: 1903 by Henry Ford
• Competitors: General Motors, Toyota
• Brand names:
Lincoln, Mercury, Volvo, Mazda, Jaguar and
• CEO: Alan Mulally.
TATA GROUP – 150 YEAR OLD
Previously Tata Engineering and Locomotive
Tata Motors’s break-even point for capacity
utilization is one of the best in the industry
listed on the New York Stock Exchange in 2004
July 2007- Announcement from Ford that it plans to sell
Land Rover and Jaguar.
August 2- India’s Tata Motors and M&M arrive as top
bidders ($ 2.05b & $ 1.9b)
Jan 2008 – Ford announces Tata as the preferred bidders
March 2008 - Ford agreed to sell their Jaguar Land Rover
operations to Tata Motors.
June 2008 – The acquisition is complete.
Long term strategic commitment to automotive sector.
Opportunity to participate in two fast growing auto segments.
Increased business diversity across markets and product.
Jaguar offers a range of “performance/luxury” vehicles to
broaden the brand portfolio.
Group : Vodafone P/C
HEADQUATERS: Berkshire, UK
Industry : mobile telecommunication
Presence : equity involvement in 25 countries
and network partner in 42 countries
Strength : 2,30,000 employee
Revenue : 35478 million pounds (14.1%
Net income : 10047 million pounds (10.1%
Background : Hutchisson Essar ltd.
Founded in 1992
Circle :16+ license for 6 circles
Revenue : US $1282 million
EBITDA :US $415 million
Operating profit : US $315 million
Telecom business in Japan and Belgium were
not performing up to the world market.
Market including the US market were maturing
and were not growing in a big way.
Stiff competition among almost all major player
in industry, global telecom giants like BT, O2 of
UK version from US, maxis telecommunication
As a example:- reliance and bharti airtel from
Vodafone became no.1 for tele communication
in india (source: business standard, edition 16th
India is the world’s 2nd most populated
country, with over 1.1 billion people.
India benefits from strong economic
fundamentals with exceeded real GDP growth in
high single digits.
IncreasesVodafone presence in higher growth
1. Founder- J.N.Tata
2. 102 yrs. In Steel Market
3. World’s 56th largest
4. Capacity of 30 million
5. Presence in 26 nations
1. World’s 6th largest
2. 2nd in Europe & 1st in U.K.
3. 3…1st rank in fortune list
4. Presence in 50 nations
5. 40000 people worldwide
Augmented its crude steel capacity to 27
million tonnes per annum
The combined entity forms the 6th largest
Capacity to produce 56 million tonnes per
annum by 2015.
A joint venture is an entity formed between
two organizations to undertake economic
activities together. Both of them contribute
equity and then they agree to share the
revenues, expenses and control of the newly
Both partners should appreciate the need for
the joint venture.
The partners should clearly agree on the way
the joint venture will be managed.
It is important that both partners work
towards a system based on trust and
Need to have a clear long term goal and set
the terms and conditions of the venture.
In 2003, Hyundai has an investment of $250
million in China in conjunction with Beijing
Automotive to produce 100,000 units per year
Hyundai projects and plans production to be
200,000 units per year by 2005.
Established in 1967, Hyundai is presently
South Korea’s #1 carmaker, manufacturing
dozens of models of cars, vans, and minivans.
Throughout the past two decades, Hyundai
introduced various models:
Pony, Excel, Sonata, andAccent.
In 1990, Hyundai introduced its own engine
design, the Alpha. Two years later, it
introduced its second-generation engine, the
Beijing Automotive Group (officially Beijing
Automotive Industry Ltd.) is a holding
company of several Chinese automobile and
machine manufacturers such as Beijing
AutomobileWorks Co Ltd. etc. It is commonly
known as Beiqi.
2011 production of 1,526,300 whole vehicles
made Beiqi the fifth largest, in terms of units
manufactured, vehicle-maker in China that
Hyundai agreed to pay $250 million in a joint
venture with BeijingAutomotive.
Starting at 1,00,000 units in 2003, plans to expand
to 200,000 units by 2005.
If the production is a success, Hyundai will invest
$1.1 billion to increase productivity to 5,00,000 by
Starting at 1,00,000 units, production increased by
50,000 till 2005, ultimately producing 2,00,000
From 2005 to 2011, production increased 60,000
units per year.
In order to be successful :
Must form synergies on all levels with China and
Hyundai must use their experience in investing in 4
other plants in China.
Take advantage of the first mover opportunity in
China’s de-regulated auto market.
Great opportunity for Hyundai’s business
Tremendous global growth potential.
Bottom line : There is lots of money to be
discovered and made in the emerging
markets of Korea and China !!!
Maruti Suzuki India Limited , commonly referred to as Maruti, is a subsidiary
company of Japanese automaker Suzuki Motor Corporation. It has a market share of
44.9% of the Indian passenger car market as of March 2011.
Maruti Suzuki offers a complete range of cars from entry level Maruti 800 and Alto, to
hatchback Ritz, A-Star, Swift, Wagon-R, Estillo and sedans DZire, SX4, in the 'C'
segment Maruti Eeco, multi purpose vehicle Ertiga and sports utility vehicle Grand
It is the market leader in India, and on 17 September 2007, Maruti Udyog Limited was
renamed as Maruti Suzuki India Limited. The company's headquarters are on Nelson
Mandella Rd, New Delhi.In February 2012, the company sold its 10th million vehicle in
Maruti Suzuki is India and Nepal's leading automobile manufacturer and the market
leader in the car segment, both in terms of volume of vehicles sold and revenue earned.
Until recently, 18.28% of the company was owned by the Indian government, and
54.2% by Suzuki of Japan.
Maruti Suzuki will be introducing new 800cc model by Diwali in 2012.The model is
supposed to be fuel efficient, hence more expensive.
For Maruti :-
Suzuki Motor Corporation,the parent company,is a global
leader in mini and compact cars for three decades.
Suzuki’s technical superiority.
Lightweight engine that is clean and fuel efficient.
Near 75000 people are employed directly by Maruti Suzuki
and its partners.
Large Indian market.
Monopolistic Trade in the Indian automobile
Availability of resources.
Type:- Public company
Headquarters:- Delhi, India
Services:- Electricity generation & distribution
of natural gas exploration.
Revenue:- Rs.620.53 billion (US$11.23 billion)
Net income:- Rs.92.23 billion (US$1.67 billion)
Employees:- 26,000 (2012)
Headquarters :- Kolkata, West Bengal, India
Product :- Coal, Bituminous
Revenue:- Rs.624.15 billion (US$11.3
Profit :- Rs.147.88 billion (US$2.68
Owner(s) :- Government of India
Employees:- 383,347 (April 2011)
Coal India feeds 82 out of 86 coal based thermal
power plants in India.
Joint venture has been signed between NTPC &
Coal India Ltd. For development of Brahmini &
Chichro coal mine with 50:50 equity
NTPC is ramping up its generation capacity & is
expected to increase its market share from
about 19% today to around 25% by 2017. During
11th plan your company has already
commissioned 3240 mega watt capacity.
INDEPENDENT ORGANIZATIONS HAVING
A CRITICAL BUSINESS DEAL.
SA is a kind of partnership between two
entities in which they take advantage of each
other’s core strengths like proprietary
capital, research, market
penetration, manufacturing and/or distribution
capabilities etc. They share their core strengths
with each other. They will have an open door
relationship with another entity and will
mostly retain control.
Boeing is the world’s leading aerospace company
and the largest manufacturer of commercial
jetliners and military. It was established by
William Boeing in 1916 in Seattle, Washington.
Its international headquarters now has been
located in Chicago, Illinois. The major products
are commercial airliners, military
aircrafts, munitions, space systems and computer
services. With respect to its commercial
airplanes, this company has launched into the
world market models like 737, 747, 767, 777, and
the latest one is 787 Dream-liner (Commercial
The European Aeronautic Defense and Space Company EADS
N.V. (EADS) is the largest European aerospace corporation
and was founded on July 10, 2000 from the merger among
Aerospatiale-Marta of France, Construcciones Aeronautic as
SA (CASA) of Spain and DaimlerChrysler Aerospace AG
(DASA) of Germany. This company mainly focuses on
developing and producing the civil and military
aircrafts, missiles, space rockets, satellites and related
systems. Airbus is one of its important divisions. This branch
has penetrated into the global market the five big aircraft
families including A320 family , A300/A310
family, A330/A340 family, A350 family and the newest one-
In order to take advantage of the other nations’
comparative advantages in technology and to
achieve the economies of scale and to reduce
excess capability, Airbus and Boeing apply the
“strategic alliance” including joint R&D efforts
and joint production of a particular component. It
means they did not produce all the components of
their planes. Instead, they share their jobs to their
partners or concentrate on the activities in low-
cost or high skills countries to increase their
productivity and reduce costs.
• Inadequate pre-planning for the strategic alliance.
• The desired technology never developed.
• Agreements could not be reached on alternative
approaches to solve the basic objectives of the
• People with expertise in one company refused to
share knowledge with their counter-parts in the
To develop communications and
infrastructure solutions that combine Cisco's
industry-leading network solutions and
products withWipro's infrastructure and
managed services expertise.
Premji, chairman, has
led WIPRO since
1966. Today it is a
US$5 billion revenue
IT, BPO and R&D
with a presence in
over 50 countries.
Leonard Bosak and
Sandy Lerner founded
CISCO in 1984. Today
it has a revenue of
US$ 46.06 billion on
To provide innovative solutions that deliver
business value to customers.
To create industry specific solutions for
sectors such as
banking, finance, retail, energy & utilities and
healthcare & life sciences.
To become the leading 360 degree strategic
To attain technological leadership.
To create differentiated joint offerings.
To adopt next generation engagement
which enable customer's business outcomes.
Developing an integrated value proposition.
Board level governance to ensure strategic
Market collaboration and GTM strategies.
Joint cloud strategy.
Scalable business architecture.
Type of site:- Social networking service.
Users:- 955 million(active June 2012)
Owner:- Facebook, Inc.
Created by:- Mark Zuckerberg
Launched:- February 4, 2004
Revenue :- $3.71 billion (2011)
Industry:- Computer software
Founded:- Albuquerque, New Mexico, United
States (April 4, 1975)
Founder(s):- Bill Gates, Paul Allen
Headquarters:- Microsoft Redmond
Campus, Redmond, Washington, U.S.
Area served:- Worldwide
Revenue:- US$ 73.72 billion (2012)
Employees:- 94,000 (2012)
Two companies expand advertising deal to cover
international markets, Microsoft to take equity
stake in Facebook. Microsoft took a US$ 240
million equity stake in Facebook. At the launch
of Facebook, it was not used worldwide but in
some places with the help of Microsoft he did
the advertisement & as a result his users
Facebook’s users increased from 50million to 750
July 2012, the countries with the most Facebook
United States with 155.6 million members
Brazil with 52.8 million members
India with 51.0 million members
Indonesia with 44.0 million members
Mexico with 36.2 million members
All of the above total 309 million members or
about 38.6 percent of Facebook's 900 million
Infinity Benchmark, 10th
Floor, Plot G1,
Block EP & GP,
Kolkata – 700091.
Goldline Business Centre
Next to Chincholi Fire
(West), Mumbai – 400 064.