(1) Global Product Strategy
“The benefits of global products can be achieved by standardizing the core product or large parts of it, while customizing peripheral or other parts of the product.” E.g., most of Sony’s consumer electronic products are primarily standardized except those parts that depend on national electrical standards. Honda has gone to a system of limited, standardized platforms for its production activities worldwide. Accordingly, some have described global product strategy as a process of “standardizing wherever you can and customizing where you must.”
(i) What are the factors that are driving more and more firms to pursue a global product policy? Please briefly describe these. Which of these factors (two or three) do you feel are most important in terms of their potential to drive a firm, of your choosing, in the industry that interests you most (e.g., automobiles, banking, aviation) to offer increasingly “global” products? Why? Please elaborate your answer.
(ii) In developing global products, what strategy(s) should the firm follow, for maximal effectiveness? Please elaborate.
(iii) It is a mistake to assume that global product strategy simply implies offering the same product, using the same marketing and other approaches, worldwide. Based on your understanding of chapter 4, please describe the circumstances under which it is appropriate (or even necessary) to customize products to buyer needs abroad.
(2) Leadership Challenge
Globalization is transforming the world’s economies into a single borderless frontier. Global strategy takes advantage of this transformation via a world-scale integrated, coordinated approach in which the whole world is seen as the firm’s marketplace. Please make ample use of examples to illustrate the points you wish to make.
1. In your own words, describe this transformation both qualitatively and quantitatively. What is the significance of this transformation for US businesses as well as for the organization for which you work?
2. In your own words, define a global mindset. Why, in your opinion, is a global mindset necessary for US managers? What are the most important characteristics of a global mindset and how do they contribute to an organization’s success both inside and outside of the US?
3. What are the principal leadership challenges in developing and implementing a global mindset? Please analyze this question from strategic, tactical and operational perspectives and consider perspectives drawn from theory as well as your own personal experience. Please discuss the particular challenges faced by your organization.
This undertaking goes for understanding the general Chocolate Industry in India, the item arrangement of various players in the market, different components influencing the development and accomplishment of chocolate industry in India, the difficulties and openings which the market offers and the changing patterns in the Indian Chocolate Industry. The venture additionally covers a concise investigation of Cadbury's India with reference to above focuses. An Overview of Chocolate Industry in India The chocolate business in India the way things are today is overwhelmed by two organizations, both multinationals. The market pioneer is Cadbury with a lion's offer of 70 percent. The organization's brands (Five Star, Gems, Eclairs, Perk, Dairy Milk) are pioneers their sections. Till the mid 90s, Cadbury had a piece of the pie of more than 80 percent, however its gathering was ruined when Nestle showed up on the scene. The last has presented its global brands in the nation (Kit Kat, Lions), and now charges around 15 percent piece of the pie. The Gujarat Co-agent Milk Marketing Federation (GCMMF) and Central Arecanut and Cocoa Manufactures and Processors Co-agent (CAMPCO) are alternate organizations working in this portion. Rivalry in the fragment will get quicker as abroad chocolate goliaths Hershey's and Mars combine to get something to eat of the Indian chocolate pie. Per Capita Chocolate Consumption (in lb) of initial 15 nations of the world Rank Countries Per Capita Consumption (in lb) Switzerland 22.36 Austria 20.13 Ireland 19.47 Germany 18.04 Norway 17.93 Denmark 17.66 Joined Kingdom 17.49 Belgium 13.16 Australia 12.99 Sweden 12.90 Joined States 11.64 France 11.38 Netherlands 10.56 Finland 10.45 Italy 6.13 INDIA, stands no place even close to these nations when looked at as far as Per Capita Chocolate Consumption. The Indian chocolate industry is to a great degree divided with a scope of items taking into account an assortment of buyers. We have the bars/sections, jams, candies, toffees and sugar confections. Given India's mammoth populace, it comes as an unexpected that for every capita chocolate utilization in the nation is horridly low - a minor 20 gms for every Indian. Contrast this with more than 7 kgs in most created countries. Be that as it may, Indians gulped 22,000 tons of chocolate a year ago and utilization is developing at 10-12 percent every year. The market size of chocolates was evaluated to be around 16,000 tons, esteemed around Rs. 4.16 billion of every 1998. Volume development which was more than 20% dad in the 3 years going before 1998, backed off from that point. Both chocolate and sugar candy stores have appallingly low infiltration levels, indeed, even lower than rolls, which reach 56 for every penny of the families. Market development in the chocolate fragment has drifted between 10 to 20%. Over the most recent five years, the classification has developed by 14-15% on a normal and will anticipate that it will keep developing at a comparable rate in the following five years. The market directly has near 60mn purchasers and they are chiefly situated in the urban regions. Development will chiefly get through an expansion in entrance as pay levels make strides. Nonetheless, the greater part of this utilization is in the urban communities, and country India is about 'without chocolate'. In any case, the truth of the matter is that seventy five percent of Indians live in Rural Areas. "Normal mid year temperatures reach 43 degrees Celsius in India. Chocolate dissolves at body temperature of 36 degrees." Per capita utilization of chocolates in India is minute at 20gms in India when contrasted with around 5-8 kgs and 8-10 kgs individually in most European nations. ... Mindfulness about chocolates is high in urban zones at more than 95%. ... Development of other way of life nourishments, for example, malted drinks and drain sustenance have really declined by 3.7 for every penny and 11.7 for each penny, anyway the CHOCOLATES keep on growing at the rate of 12.6%. Low estimated unit packs, expanded appropriation reach and new item dispatches can be said to have fuelled this development. The dispatch of lower-estimated, littler bars of chocolate over the most recent two years and situating of chocolate as a substitute to conventional desserts amid celebrations, have supported utilization. This is additionally in light of the fact that chocolate, which was thought to be an elitist nourishment, has gotten the favor of purchasers searching for a way of life thing at moderate cost. Till as of late, chocolate utilization had been confined by low obtaining power in the market. Chocolates and other cocoa-construct nibble sustenances were viewed as nourishment appropriate just for the well-off. After monetary progression in 1991, noteworthy changes have happened in nourishment propensities, incompletely by virtue of ascend in total national output (GDP) development and higher acquiring power in the hands of the white collar class speaking to 33% of the aggregate populace. Accessibility of chocolate items has likewise detonated. An investigation had anticipated that offers of the Indian chocolate industry would ascend from $125/$130 million out of 1998 to $175/$180 million constantly 2000 and to $450 million continuously 2005 which ACTUALLY happened regardless of different negative components. Per capita chocolate utilization keeps on being low at around 200g for each individual, being essentially devoured in urban zones. In the center and higher wage gatherings, 70 for each penny of youngsters, 43 for every penny of youthful grown-ups and 16 for each penny of grown-ups devour chocolate. Air conditioning Nielsen ORG Marg report evaluates the Indian Chocolate Industry' worth at Rs 2,000-crore (Rs 20 billion) Sorts of Chocolates Contingent upon what is added to (or expelled from) the chocolate alcohol, diverse flavors and assortments of chocolate are created. Every ha an alternate synthetic compensate for any shortfall, are not exclusively in the taste. 1. Unsweetened or Baking chocolate is basically cooled, solidified chocolate alcohol. It is utilized fundamentally as a fixing in formulas, or as an embellishment. 2. Semi-sweet chocolate is additionally utilized essentially in formulas. It has additional cocoa spread and sugar included. Sweet cooking chocolate is fundamentally the same, with more sugar for taste. 3. Drain chocolate will be chocolate alcohol with additional cocoa spread, sugar, drain and vanilla included. This is the most prevalent frame for chocolate. It is essentially an eating chocolate. Cocoa is chocolate alcohol with a great part of the cocoa margarine evacuated, making a fine powder. It can get dampness and smells from different items, so you should keep cocoa in a cool, dry place, firmly secured. There are a few sorts of cocoa Low-fat cocoa has the most fat evacuated. It ordinarily has under 10% cocoa margarine remaining. Medium-fat cocoa has somewhere in the range of ten to twenty-two percent cocoa margarine in it. Drinking or Breakfast cocoa has more than twenty-two percent left in it. This is the cocoa utilized as a part of chocolate drain powders like Nestle's Quik. Dutch process cocoa will be cocoa which has been exceptionally prepared to kill the common acids in the chocolate. It is somewhat darker and has a very different taste than consistent cocoa. Decorator's chocolate or confectioner's chocolate isn't generally chocolate by any means, yet a kind of chocolate enhanced treat utilized for things, for example, covering strawberries. It was made to dissolve effortlessly and solidify rapidly, however it isn't chocolate. Classifications of Chocolates Business Chocolates are accessible in the accompanying structures: Bars or Molded Chocolates Tallies Panned Chocolates (Gems) Éclairs Grouped Chocolates Bars or shaped chocolates (like Dairy Milk, Truffle, Amul Milk Chocolate, Nestle Premium, and Nestle Milky Bar) include the biggest portion, representing 37% of the aggregate chocolate showcase in volume terms. ... Wafer chocolates, for example, Kit-Kat and Perk likewise have a place with this portion. Panned chocolates represents 10% of the aggregate chocolate showcase. ... Wafer chocolates, for example, Kit-Kat and Perk likewise have a place with this portion. .. Type of Consumption Unadulterated Chocolates Toffees Cakes and Pastries Malted Beverages Wafer Biscuits and Baked Biscuits Chocolate Desserts Chocolate Manufacturing Process Laborers cut the product of the cacao tree, or cases open and scoop out the beans. These beans are permitted to age and afterward dry. At that point they are cleaned, cooked and hulled. Once the shells have been expelled they are called nibs. Nibs are mixed much like espresso beans, to deliver diverse hues and flavors. At that point they are ground up and the cocoa spread is discharged. The warmth from the granulating procedure causes this blend of cocoa margarine and finely ground nibs to dissolve and frame a freeflowing substance known as chocolate alcohol. From that point, distinctive assortments of chocolate are delivered. What is conching? Crude natural chocolate is dirty, grainy and extremely not reasonable for eating. Swiss chocolate producer Rudolph Lindt found a procedure of rolling and manipulating chocolate that gives it the smoother and more extravagant quality that eating chocolate is known for now. The name 'conching' originates from the shell-like state of the rollers utilized. The more drawn out chocolate is conched, the more lavish it will feel on your tongue. Market Size (by esteem and by volume) The Indian chocolate showcase is esteemed at Rs. 650 crores (i.e. Rs. 6.50 billion) multi year. The Indian chocolate bazaar is evaluated to be in the locale of 22,000-24,000 tons for each annum, and is esteemed in abundance of US$ 80 million. Chocolate infiltration in the nation is a little more than 4 percent, with India's metros turned out to be the huge attract timing entrance abundance of 15 percent. Next, comes the moderately littler urban communities/towns where utilization slacks at around 8 percent. Chocolates are an extravagance in the rustic fragment, which clarifies the negligible 2 percent infiltration in towns. The market by and by has near 60mn shoppers and they are for the most part situated in the urban regions. Significant Players and their Market Share The significant players in the Indian Chocolate Industry are:>GET ANSWER