BUSINESS UPDATES
The Marks & Spencer -
Reliance Retail Joint Venture
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HCL's Acquisition of Axon
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a retrieval system, used in a spreadsheet, or transmitted in any form or by any meanselectronic or mechanical without
permission. To order copies, call +91-40-2343-0462/63 or write to the ICMR,
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From Frivolous to Frugal : Recessionary Trend Forcing Changes
in Consumer Behavior?
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a retrieval system, used in a spreadsheet, or transmitted in any form or by any meanselectronic or mechanical without
permission. To order copies, call +91-40-2343-0462/63 or write to the ICMR,
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Blendtec's "Will It Blend?" : A Viral Marketing Campaign
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a retrieval system, used in a spreadsheet, or transmitted in any form or by any meanselectronic or mechanical without
permission. To order copies, call +91-40-2343-0462/63 or write to the ICMR,
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CASE
IN FOCUS
Starbucks : Back to Basics?
-- Sachin Govind and S S George
Starbucks is a major specialty coffee retailer, with a presence in over 40 countries around the world.
The financial crisis in the United States and the consequent global economic problems, together with
rapid expansion in the number of its outlets created serious problems for the giant coffee retailer. With
the economy showing signs of a recession, more and more customers started to cut down on consumption
of expensive coffee. In addition, the rapid growth in the 2000s had diluted the `Starbucks Experience'
and the company's customers were complaining of falling service quality levels. Moreover, cannibalization
of sales as new stores were opened too close to existing outlets also became a serious issue for the
company. The case discusses the possible reasons for the significant drop in traffic and profits at Starbucks in
2008 and the transformational initiatives that Howard Schultz, the founder CEO of the company,
implemented to revive the Starbucks brand and bring back customers to its stores.
© 2009 ICMR. All Rights Reserved. For accessing and procuring the case study, log on
to www.ecch.com or www.icmrindia.org. This case study won the first prize in the John Molson Case Writing Competition 2008,
organized by the John Molson School of Business, Concordia University, Montreal, Canada.
INFORMATION TECHNOLOGY
Maturing Business
Intelligence Provision at Volvo IT
-- Stijn Viaene
Volvo IT established a team in 2001 to consolidate Business Intelligence (BI) efforts across the Volvo
Group. By 2005, despite some established success, the BI team was in a difficult position. The team had put in
place an enterprise-class technological capability and structured approach to BI solution provision. However,
it had trouble keeping some of its most important customers happy as they were asking for more
flexible solutions, shorter lead times and lower costs.
© 2008 by Vlerick Leuven Gent Management School, Belgium. Not to be used or reproduced without written permission
directly from Vlerick Leuven Gent Management School. This case was prepared as a basis for class discussion rather than to
illustrate either effective or ineffective handling of a business situation.
OPERATIONS
Nokia's Chinese Operations
-- Indu P and Debapratim Purkayastha
The case discusses the operations of Finland-based telecom major, Nokia, in China. Nokia entered China
in the 1990s and initially supplied network equipment to Chinese manufacturers. Nokia entered into
joint ventures with local companies, which helped it understand the local market better. By the end of
the 1990s, China emerged as Nokia's second largest market after the USA, but Motorola continued to be
the market leader in China. By the early 2000s, the Chinese companies were making inroads into the
market and Nokia's sales dropped drastically. The main reasons for the reduction in sales were the limited
range of handsets and absence of clamshell models from Nokia, and limited distribution facilities, due to
which the phones did not reach the rural areas where the demand was growing.
© 2009 ICMR. All Rights Reserved. For accessing and procuring the case study, log on
to www.ecch.com or www.icmrindia.org
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