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Management

Case Folio


February' 07
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Articles
Microsoft's Prepaid Computing Initiative

-- Rajiv Fernando

The Issue of Drug Price Control
-- Debapratim Purkayastha, Rajiv Fernando

Lifebuoy's "Swasthya Chetna" Initiative
-- Debapratim Purkayastha, Rajiv Fernando

Best Practices at Infosys Technologies
-- Vivek Gupta, Indu P

Infosys Technologies, a leading software company based in India, was voted the best employer in the country in many HR surveys in the recent years. The company was well-known for its employee-friendly HR practices. Though Infosys grew to become a US$ 2 bn company by the year 2006, it still retained the culture of a small company. Infosys attracted the best talent from across the world, and recruited candidates by conducting one of the toughest selection process. Infosys was one of the first companies to offer ESOPs to its employees. The company followed variable compensation structure where the employees' compensation depended on the performance of individual, the team and the company. The case highlights many such best practices of Infosys in human resource management. It also discusses the challenges faced by the company to retain its talented workforce.

Red Bull's Innovative Marketing : Transforming a Humdrum Product into a Happening Brand
-- Shirisha Regani, S S George

The Red Bull energy drink was launched in Austria in 1987, by Dietrich Mateschitz. It was generally acknowledged that Red Bull's success was the product of the company's innovative marketing efforts. This case study discusses the marketing strategy adopted by Red Bull GmbH, including the company's effective employment of buzz marketing in new markets, and its sponsorship of sporting activities, especially extreme alternative sports, to enhance its image. The case also talks about Red Bull's target markets, and its pricing and differentiation strategies. It includes a section on the various controversies surrounding Red Bull, and the effects of these on its brand image. The competitive situation in the energy drinks market and Red Bull's position vis-à-vis competitors, is also discussed. The case concludes with a commentary on Red Bull's attempts at brand extension, and the company's future prospects in the light of its excessive dependence on a single product.

 

The Betapharm Acquisition : DRL's Inorganic Growth Strategy in Europe
-- Debapratim Purkayastha, Soorya Tejomoortula, and Rajiv Fernando

In February 2006, Dr. Reddy's Laboratories Limited (DRL), a leading Indian pharmaceutical company, acquired the fourth largest generic pharmaceutical company in Germany, betapharm Arzneimittel GmbH (betapharm) from the 3i Group PLC (3i) for US$570 mn (480 mn). The acquisition was the biggest overseas acquisition made by an Indian pharmaceutical company. The synergies from the acquisition were expected to benefit both DRL and betapharm. The acquisition gave DRL access to the German generic drugs market, the second-largest generic drugs market in the world, and would help DRL leverage the strong marketing and distribution channels of betapharm in Germany as well. betapharm was expected to benefit from the addition of more products to its portfolio and utilize DRL's low cost manufacturing and product development infrastructure in India. However, some analysts opined that DRL had paid too much for the acquisition of betapharm. The case study discusses various facets of the acquisition.

 

The Gujarat Cooperative Milk Marketing Federation : Milk Sourcing Initiatives
-- Linda D Thenayan and BV Kiran

The Gujarat Cooperative Milk Marketing Federation (GCMMF), located in Gujarat, India, collects and processes on an average about 5.9 million liters of milk per day from various dairies across the country. The caselet explains how GCMMF conducts this massive task effectively using the latest Information Technology tools. The various tools they use like the Automatic Milk Collection System Units (AMCUS), Amul ERP Online System, and Geographic Information System (GIS) are discussed in detail.

 

Winning: The Answers
--Authors: Jack Welch and Suzy Welch Reviewed by S S George

In Winning: The Answers, Jack and Suzy Welch give their answers to questions posed by the readers of their previous book, Winning. As in his previous books, Welch is direct and forthright in his opinions, which have the added credibility that comes from years of having practiced the gospel that he now preaches.

 
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Automated Teller Machines (ATMs): The Changing Face of Banking in India

Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario

If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.

Indian Scenario

The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.

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