3.3 And 3.4 Case Studies

Question 1

fratelli wines joint venture

Answer 1

• collaboration was birthed by secci brothers from italy
• joined with mohite-patil brothers from india wines
• Italian wines using indian grapes

Question 2

ikea opening in hyderabad india case study

Answer 2

• Indian culture not used to build-it-yourself flat packs → employ cheap labour
• Ikea adapt product by supplying extra service that connects customers with builders/carpenters
• Cheaper as labour is low cost due to low wages in a low income country
• Problems: tools available in a country with lower average incomes? More expertise skills?
• Keep product the same and provide an additional service
• Ikea do do this sometimes in the UK eg for kitchens and bathrooms
• This is because labour has a higher cost due to higher wages (high income country)
• Less expensive to build it yourself
• Branding, store layout and products are similar
• Low prices to bring traction and customers → otherwise lose profit, price sensitive
• Low disposable income and haggling cultures
• Small profit margins, so sell more, sell price elastic products

Question 3

ansoff matrix with ikea

Answer 3

• MARKET PENETRATION: Additional store in Swedish town
• MARKET DEVELOPMENT: New store in Egypt
• PRODUCT DEVELOPMENT: selling carpets in Sweden
• DIVERSIFICATION: selling chicken meatballs, selling pho in Vietnam

Question 4

comparison of norways and royal dutch shell GDP

Answer 4

• Norway = 369,000 billion dollars
• RDS = 458,000 billion dollars

Question 5

Japanese car manufacturers in the UK

Answer 5

• Japan (Nissan) NE england: skilled labour left over from deindustralisation
• can also get access to the EU due to manufacturing within the trading bloc (UK lost this competitive advantage)

Question 6

BP and deepwater horizon

Answer 6

• 2010
• oil rig in gulf of mexico exploded –> largest oil spill in history of marine oil drilling operations
• 4 million barrells
• affected domestic livelihoods etc fishing, tourism
• US 20$ million compensation for those affected by spill
• BP value 54% loss in 2010
• had to pay criminal and civil court ordered penalties of more than $20.8 billion

Question 7

union carbide and India

Answer 7

-27 tonnes of MIC gas spread through sleeping city
- 150,000 people still suffer disorders caused by the accident
- union C only said 3,800 people died despite reports that 8,000 died in first week alone
- paid $470 million in 1989 as compensation
- reluctant to have responsibility and ceo was not prosecuted

Question 8

ben and jerry’s vs unilever

Answer 8

• Living income accelerator: paired with fairtrade –> provides living income for farmers
• pre tax profits to charity and packaging is environmentally friendly
• taken over by unilever in 2000 but clash –> wants independent board to take progressive stances on social issues
• ingredients are fair trade sourced from south america

Question 9

green and blacks

Answer 9

• fair trade chocolate firm
• 22.4 million in sales
• transparent supply chain and increased community support compared to Cadburys
• however cadburys has sales of 6.7£ billion

Question 10

nike in east/ SE asian manufacturing

Answer 10

• vietnam, china, indonesia
• 1990 child labour scandal
• 1996 human rights watch report
• 2001 cambodian factory strikes
• 2006 labour violations in vietnam