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Management

Welcome to the Case Folio


September '09
Regular Features
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Articles

Coca-Cola, PepsiCo and the Indian Soft Drink Beverage Market

Reliance ADAG Forays into Online Retail Business

Pixar University: A Distinctive Aspect of Pixar's Organizational Culture and Innovation

Oracle's Acquisition of Sun Microsystems

-- Harish A and Vivek Gupta

The case discusses the acquisition of Sun Microsystems (Sun) by Oracle Corporation (Oracle). It examines the growth strategies of Sun and Oracle over the years, their product lines and their major competitors. The case then highlights the problems faced by Sun post the dotcom crash and examines its inability to monetize its products. The case also describes the negotiations between IBM and Sun for merging Sun with IBM. It analyzes the possible synergies between Sun and Oracle post-merger and the challenges that Oracle may face after the acquisition.

Hershey: Going through a Sweet Recession

-- V Namratha Prasad and S S George

The case describes the efforts undertaken by The Hershey Company (Hershey) to grow its business. It begins with a brief history of the over 100-year old company and then discusses the various reasons for the company's flat sales starting from the early 2000s. Later, the case talks about the business strategy adopted by the company in 2004-05 to boost sales, which involved the introduction of new products and entry into new market segments. It then describes the restructuring initiatives undertaken by the company in 2007 in order to streamline production, and how these efforts failed to improve its financial situation. The case ends with a discussion on Hershey's new marketing strategy, developed and adopted after extensive consumer research in 2008, which finally managed to give a fillip to sales.

Domino's Master Franchise Model

-- Indu P and Vivek Gupta

The case discusses the master franchise model of the US-based Domino's Pizza Inc. (Domino's). Domino's, which was started in the 1960s, expanded in international markets mainly through its master franchise model. Under this model, the franchisees were provided with exclusive rights to operate stores, or to sub-franchise them in a particular area. Domino's recruited franchisees with business experience and knowledge of local markets as master franchisees, and was able to mitigate the risks associated with entering and operating in international markets. Under master franchising, in markets where there was high potential for development, Domino's transferred market exclusivity to an individual/company, which had a significant presence and knowledge about the local markets. These individuals/companies, in turn, invested in establishing the master franchise, whose responsibilities included building stores, sub-franchising, operating distribution system, etc. The case discusses in detail the store operations of Domino's and the benefits of its master franchise system.

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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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