Its a detailed group presentation on Zwick Electrical: Developing A Global Logistics Strategy at IMT Nagpur for the course Supply Chain Management. This is our group take on it. If you Have a different opinion please let us know.

1. Zwick Electrical:
Developing A Global Logistics Strategy
Presented by:
Nitin Kumar Shukla 2013180
Prakhar Swami 2013204
Rajat Garg 2013226
Rohit Jain 2013242
Sidhartha Dipankar 2013281
Umang Warudkar 2013309
Erika Elisabeth 2013344
Presented to:
Prof. Arijit Mitra

2. Zwick Electrical: The journey so far……
1952 year
ZEI began operations produced
electric motors and parts
1968 year
Purchased ELTP and retained
distribution center and
engineering department
1984 year
New plant and distribution
center in Greenville
1952 1960 1968 1970 1984 1990
1960 year
ZEI added production facilities
in Cincinnati, Ohio, and
Louisville, Kentucky.
1970 year
Cincinnati and Chattanooga
plants were expanded
1990 year
Renovate Shreveport and
close Cleveland, Louisville

3. Problems
Overseas Venture Management
Go Global
Yes
 How?
 How much?
No
 Alternatives

4. Q1. At what stage of global operations are ZEI, ABB and
Siemens?
ABB
Level: Internal operation
Merger of Asea AB and BBC Brown Boveri
4 Business Segment in 3 region
Subdivided into BAs
Abacus(ABB’s MIS)
3 managerial level
BA manager
Country manager
Company manager

5. Siemens
Level: Denationalised
Presence in Europe, America, Asia
Corporate structure is divided into 3 primary divisions
Groups
Regional units
Corporate division and centralised services

6. Zwick
Level: Arm’s length
5 production plant
2 distribution center
OVM acts as a representative for ZEI in Europe.

7. Q2. Beyond a simple sales perspective, why might ZEI want to
consider greater international activity?
Risk
“Do not put all your eggs in one
basket”
Brand recognition Cross-pollination
Global + Local
Risk
Prestige CP

8. Q3. From a ZEI perspective, what advantage and disadvantage
do ABB and Siemens offer?
 Long term survival
 Advanced R&D
 Use of well developed
marketing and distribution
 Autonomy
 Downsizing
 Employer employee loyalty
+
+
-
+
+
-

9. Q4. Alliances with ABB and Siemens are only one alternative
contained in the consultants’ report. What may be the other
alternatives?
Establish Alliances with Firms other than ABB or Siemens
Make Acquisition of its own . It might help achieve these primary objectives
 Maintenance of zwick’s Market Access in regional Trading Blocks
 Increased international sales as a percentage of total sales.
 Complementary products from overseas suppliers
 Look to new products and emerging markets
Address the changing economic-political environment in north America (NAFTA)

10. Q5. What course of action do you think ZEI should pursue?
Why?
1) Increase The Product Line
a) They can come in agreement with overseas suppliers for complimentary Products.
b) Invest in R&D of complimentary and current products by benchmark Practices
2) Choose an alternate option for OVM
-Look for more efficient and profitable distributor across various markets.
3) Can go in merger with ABB
4) Look for growth potential markets in which govt. regulations are
friendly.

11. Why ABB?

12. Why ABB?
 More Focused in Power Sectors
 1300 Subsidiaries and 5000+ Profit Centers
 Highly Integrated Information System.
 Worldwide Presence-Europe,Asia America,Australia, Newzealand
 Has its own Financial services
 Good Distribution Network
 Many Subsidiaries engaged in R&D

13. Why Not Siemens?
Not Much Focused in Power Sector.
Denationalized Operation
75 percent presence in Europe only

14. Our take on the case
• Go with option no.2 and try to make use of option 1 as a backup plan.
ABB