In these case studies, the answers of the cases are derived out. These slides will enable you to get full understanding of the marketing and trading Concept.
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2. Founded by Tomas Bata in 1894 , Czechoslovakia
5000 international retail locations
Business in more than 70 countries
Services over one million customers per day
BATA, LTD
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3. Decentralized operation
Multidomestic company
labor-intensive operations
Buys raw materials locally
BATA,LTD
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4. Nazi invasion in Czechoslovakia
Operations were taken over by communists
Tom Bata Sr emigrated to Canada
WORLD WAR II
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5. Uganda
Nationalized by Milton Obote
Denationalized by Idi Amin
Renationalized by Amin
Denationalized by Amin
Bata worked as if nothing had ever happened
FOREIGN POLITICAL SYSTEMS
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6. Chile
Criticized for maintaining relations with totalitarian regimes
Company claimed that it has been working for over 40 years
FOREIGN POLITICAL SYSTEMS
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7. South Africa
Highest GDP in Africa
Low labor costs, high mineral wealth
Situation deteriorated in 1980s
Segregations between black and white
Bata left South Africa in 1986
Terms: name, BATA banned in SA
FOREIGN POLITICAL SYSTEMS
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8. Advantages for BATA
Home country, large facilities, established company
Disadvantages for BATA
No free trade
Compliance with economic policies
RE-ENTRY CZECHOSLOVAKIA
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9. Advantages for Czech Republic
Local resources would be explored and utilized
Increase in revenues of raw material producers
Disadvantages for Czech Republic
Compensation to be paid back to BATA
Handover the management to BATA
RE-ENTRY IN CZECHOSLOVAKIA
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11. Founded by Caleb Bradham in 1893
Made roads to 151 countries
Held about 30% of US market
Acquired KFC I 1986
Early entry in Myanmar and Vietnam
PEPSICO IN INDIA
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12. Limca, Cola, Orange drinks
Lemon drinks were popular in Metro
Coca Cola left India in 1977
Parle Exports became dominant (Thumps up)
THE INDIAN SCENARIO
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13. International trade constituted 6% of GDP
Import/export tariffs, quantitative restrictions
Upper limit equity participation
Restrictions on technology transfer
Export obligations
FDI REGULATIONS
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14. 1977- opportunity after Coca Cola departed
1985- Proposal with R.P Goenka (rejected)
1985- proposal with TATA and Punjab Agro Industries
$15M investment
Agro research center
Potato/grain based processing unit
Fruit/veg processing unit
PEPSICO’S ENTRY IN INDIA
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15. 1985- PROPOSAL
Location- Punjab
50,000 Jobs
Technology for better utilization of fruits
Prevention of wastage (about 30%)
PepsiCo’s venture approved
Coca Cola tried to re-enter
PEPSICO’S ENTRY IN INDIA
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16. 1989- Coke’s application rejected
GOVERNMENT DEMANDS
Reduce equity holding (40%)
Divulge its formula
Use dual trademark
Coca Cola didn’t agree
COKE’S RE-ENTRY IN INDIA
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