Tutorial 8 – Chapter 7
Tutorial activity 1:
Ongoing Semester Case Study – Businessville Hotel.
Beijing Businessville Hotel is proving to be extremely successful. It has just been announced that a major world trade expo is to be held in Ho Chi Minh City. Around the World Hotels is interested in providing accommodation for some of the expected thousands of delegates. However, there is no time to build a new hotel. Around the World are considering approaching an existing hotel group to form an alliance.
• What issues need to be considered when establishing an alliance in this case?
Choosing the right form of governance.
The benefits of cooperation versus the ...view middle of the document...
Tutorial activity 2: International Joint Venture [IJV]
Research one successful IJV and one unsuccessful IJV. Explain the reasons why the first one succeeded and the second one failed. Be prepared to discuss your research in class.
Tutorial activity 3:
Facilitation Case Study.
Consider the case study ‘Aditya Birla Group: Global Vision – Indian Values’ on page 266-267 of your textbook and prepare discussion points for the three questions at the end.
1. Critically analyze the growth strategy adopted by the Aditya Birla group. what are your views on the business portfolio adopted by the group?
The ABG group is made up of companies in different industries: Aluminum, Copper, Fertilizers, Textiles and Cement, Insulators, Viscose Filament Yarn, Carbon black, Insurance, Telecommunications, and BPO (Business Process Outsourcing).
The Group’s strategy toward the business portfolio was to exit from those areas of business where they had a minor presence or where losses were being incurred and to consol idate and build upon operations where competencies and business strengths existed.
The Group sold its Garsim textiles division, and divested itself of its stake in Mangalore Refinery and Petrochemicals.
The group has grown by acquiring companies like Novelis (US-based aluminum producer), Minacs Worldwide (Candian based BPO company); entering into a joint venture with NGK Corporation of Japan for its insulators division; acquiring a majority stake in Indal (Aluminium).
The strategic alliance with NGK provided ABG access to the latest in product and manufacturing technology for the insulators division and also opened up the path to global markets.
There are many good reasons for growing a business through an acquisition or merger. These include:
• Obtaining quality staff or additional skills, knowledge of your industry or sector and other business intelligence.
• Accessing funds or...