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Date Submitted: 06/07/2016 10:37 PM
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Case study -1
On the liberalization of Indian economy, an established company had to decide about
entering into collaboration with a foreign company for new construction project.
On one side, thinking that there was no harm in approaching various foreign
companies for the purpose in any case, the management approached a number of
companies; and due to the reputation of the company, two of the most reputed
companies of Europe agreed to enter into collaboration with it.
With properly developed domestic consumers market, demand for housing growing
and eagerness of foreign companies for the entry in Indian market, there were no
bottlenecks from government side in obtaining license for collaboration. At present,
there is only one company in India manufacturing the same products.
The managing director was weighting the difficulties of legal complications, severity
of competition from local construction companies, royalty fees to be paid on one side,
and certain advantages of collaboration on the other, and was vacillating between the
two alternatives.
He would sometime say that we could implement the project with local talent without
any foreign help, and other times plead strongly for collaboration.
In this state of mind, he went abroad and had discussions with prospective
collaborators which were highly encouraging. But coming back somehow the idea of
collaboration was dropped.
Q.1) why did the Managing Director first think of collaboration
1. Profits
2. Prestige
Q. 2) why did the idea of foreign collaboration was dropped according to you.
Q. 3) To what extend does this represent an average Indian decision – making
situation at the policy level.
Case study-2:
Shashi and Rushi are working in the reputed...