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The IUP Journal of Business Strategy

June '08
Focus

This issue includes topics ranging from supply chain relationship in automobile makers with complexity of conglomerates, usage of web-based strategic management software for teaching business students

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An Investigation of the Kaisha: A (Strategic) Study in Partner Management
International Business Strategy: An Innovative Teaching and Learning Approach
A Strategic Study on the Potential Entry of Cigarette Companies' into the Indian Bidi Industry
Organizational Learning: Crafting a Strategic Framework
Strategic Sourcing: Need for a Disciplined Approach
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An Investigation of the Kaisha: A (Strategic) Study in Partner Management

-- Carolan McLarney, Ed Chung and Sheila A Randolph

This paper examines the factors that may influence buyer-supplier relationships, particularly as they relate to the procurement operation of an American automotive subsidiary of a Japanese firm. The paper discusses how the Japanese parent company, which had a long history of keiretsu supplier relationships, translated them into American firm operations. The American automotive subsidiary is undergoing an organizational restructuring, which will have a future impact on supplier relationships. Several factors are proposed for future research, which include how the parent firm's keiretsu supplier relationships impact the American firm's supply base and how successful the firm will be in determining the particular aspects of different supplier relationship models that will benefit in establishing a supplier-partnering management program.

Article Price : Rs.50

International Business Strategy: An Innovative Teaching and Learning Approach

-- Basil Janavaras, Emanuel Gomes, Punyadip Cheema and Suresh George

This paper confirms that postgraduate students using consultancy software as learning tools enhanced their international business strategy research, decision-making abilities and skills of critical thinking skills. The authors discuss one of the most important challenges faced by international business faculties that is, how to bring the real world into the classroom or training environment. The software discussed in this paper aims to achieve this very important pedagogical objective by providing the platform needed to support students and business practitioners alike in their roles as managers and decision makers in a global setting. More specifically, the software enables the users to perform a situation analysis of a company, determine suitable markets for a company's products/services, perform detailed competitive analysis and market research to develop an online international business plan. The study shares teaching experiences based on the use of the system and provides feedback from student surveys. The findings indicate that the software enhanced the students' understanding of international business strategy and improved their team working, research and critical thinking skills.

Article Price : Rs.50

A Strategic Study on the Potential Entry of Cigarette Companies' into the Indian Bidi Industry

-- Mukesh Taneja and R Patnaik

Working in an environment which is full of changes always requires the management of the companies to foresee the future. Only those companies which can foresee the future are able to sustain and the others perish. Then there are few others who lobby for the government to create supportive environment. Counter-intuitive to competition, tobacco industry is an industry that has always been fighting with the government rather than among themselves. It is an industry where the political decisions impact tremendously the profitability and the day-to-day workings of the companies. The present situation shows that the bidi industry is way ahead of the cigarette industry and the trend doesn't seem to be changing in the coming future. The problem which is discussed in this paper is the potential entry of the cigarette companies into the bidi industry. Though no such attempts have been found in the present situation, this project involves considering the viability of such a move and its benefits and pitfalls. The research has been done using the Event Analysis Method. It involves the systematic identification of news reports on events that bear on the area of research. The research has been done using the secondary resources. However, to improve the quality of the report some data has been used from the primary resources. Based on this research, it is ascertained that there lies an opportunity for cigarette companies to explore a huge untapped market, though it involves some challenges outlined therein.

Article Price : Rs.50

Organizational Learning: Crafting a Strategic Framework

-- Feza Tabassum Azmi

In today's fast-paced markets, business organizations are required to constantly revitalize themselves for long-lasting success. This mandates building and nurturing a no-holds-barred learning orientation. Effective organizations are believed to be configurations of management practices that encourage learning which becomes the basis for competitive advantage. Creating a learning organization is imperative for facilitating the journey to long-lasting success. This paper focuses on organizational learning as an important strategic initiative. The paper bases itself on extensive literature reviews to identify dominant thoughts on organizational learning in different eras. The paper introduces the concept of `the learning iceberg' which identifies the steps to building a strategic learning framework. It also introduces the concept of the `people-strategy matrix' for putting in place a workable learning strategy. In the light of these concepts, the paper discusses the cultural prerequisites and strategic implications of organizational learning.

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Strategic Sourcing: Need for a Disciplined Approach

-- S N Mookherjee

Globalization, aided by rapid technological innovation, is changing the basis of competition in today's business scenario. Sourcing in the traditional meaning was limited to functional activity, but today it has acquired strategic implications. In order to make their value chains more elastic and organizations more flexible, successful companies are re-looking closely at their core capabilities and redefining how and where to source every single key activity in the value chain. Outsourcing has become strategic in the sense that core functions like design, manufacturing, HR, R&D, marketing, logistics are moved offshore so that companies achieve competitive edge in the market place. Strategic sourcing helps a business enterprise to achieve process improvements, faster-to-market, and create long-term value to its customers, thereby dramatically improving its competitive position in the market place.

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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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