Preview

How Does Hadll Have A Successful Acquisition Of Sylvania

Good Essays
Open Document
Open Document
868 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
How Does Hadll Have A Successful Acquisition Of Sylvania
Evaluation of how the problem/situation in the case ties in with the material discussed in the course:
Havell needs a global presence to gain a cost advantage and build its brand premium to compete with large competitors. Sylvania’s products were priced 15% lower than their rivals Philips, Osram, and GE. Sylvania’s brand, which makes high-end products, was diluted because of this. If Havell has a successful acquisition of Sylvania, then they can raise the price of Sylvania’s products to compete with their competitors. This will establish a brand premium.(Rothaermel, F, 2017).
If they can find a way to produce goods at a lower cost by utilization of resources in a more efficient manner than their competitors, they will have a cost leadership.
…show more content…
(Gilson, S. n.d). Understanding that traditional company conduct can be difficult to change. Every culture and country has their own traditions, standards of conduct and behaviors that are involved in the workplace.(Sharma, P. G. 2013, October 26). If Havells is to have a successful acquisition of Sylvania, not only do they need to understand the culture already established at Sylvania but if they are to manufacture products in China they also need to understand their working customs and environment and workplace laws. (Sharma, P. G. 2013, October 26). Beyond understanding the new culture there may be layoffs in the restructuring process. This can be done effectively by having a plan, deciding how many employees should be laid off, which employees to layoff and in what sectors that will lead to better productivity. Keeping key players and a set timetable for the layoffs is important for a good outcome.(Peavler, R. 2018, January 03).. It must also keep good relationships with the remaining employees.(Peavler, R. (2018, January 03). In the case of Havells’ acquisition of Sylvania, a gradual approach to downsizing and restructuring seems best as it is a large …show more content…
(Wilkinson, J. (2013, July 24).This may affect Havells/Sylvania if they decide to manufacture in China. China is a low-cost producer of products, but also with low cost there could be low quality. This is not what Havells’ or Sylvania’s strategy is, and they may have to have stricter oversight of these manufacturing plants.(Peavler, R. 2018, January 03). Substitutes may not necessarily be unavailable but are limited in quality, price, and performance. Having quality products at a competitive price is a competitive advantage here.(Rothaermel, F,

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Rize Documentary

    • 528 Words
    • 3 Pages

    • Cost leadership is an organization’s ability to achieve lower costs relative to competitors through productivity and efficiency improvements, elimination of waste and tight cost control.…

    • 528 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    * to differentiate the business’s products from its competitors rather than using a cost leadership strategy.…

    • 3959 Words
    • 16 Pages
    Good Essays
  • Good Essays

    Gulf Coast Motor

    • 2311 Words
    • 10 Pages

    Read and understand the case. Show your Analysis and Reasoning and make it clear you understand the material. Be sure to use the concepts of the course to show your reasoning. Summarize the situation. Dedicate at least one heading to each following outline topic:…

    • 2311 Words
    • 10 Pages
    Good Essays
  • Satisfactory Essays

    Blue

    • 343 Words
    • 2 Pages

    19. The text discusses three approaches to combining overall cost leadership and differentiation competitive advantages.…

    • 343 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Assessment: Using the theories discussed in class, present your assessment of the situation, including the client/ client system’s view of the situation, client/client system’s…

    • 279 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    minimum, enabling us to compete on the basis of price. Our Cost Leader orientation will allow us gain a…

    • 2012 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Digby Annual Report

    • 1396 Words
    • 6 Pages

    1. Cost leadership: By bringing labor and raw material costs down years ahead of the competition, our company has able to enjoy the prevailing market price and generating excess profits.…

    • 1396 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    meli

    • 760 Words
    • 4 Pages

    This is a close case assignment The marking and overall assessment will be based on how…

    • 760 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    In your groups you should try working through this case study to help develop your abilities to apply some of the decision approaches and techniques covered in the first five weeks of the module. The case study should be treated as a formative exercise; the topics covered will be assessed as part of the in-class multiple choice test that will be held in Week 12, details of which are available elsewhere on Blackboard. You will each be permitted to bring a copy of the two parts of the case study (including any annotations or notes you have made) with you to the in-class test, but nothing else.…

    • 1764 Words
    • 8 Pages
    Powerful Essays
  • Best Essays

    When companies are acquired or merged, people almost immediately start to focus on the differences in the companies. They also begin to pay attention to who are the winners and who are the losers. It is typical in an acquisition for the acquiring company to see itself as the winner, and the acquired company as the loser. The controlling company wants to impose changes and view those in the acquired company as highly resistant to change. It is clear that most mergers and acquisitions are primarily based on strategic, financial, or other objectives. However, ignoring a potential mismatch of people and cultures can lead to strategic and financial failure. In most mergers, serious consideration should be given to cultural and leadership style differences.…

    • 3233 Words
    • 13 Pages
    Best Essays
  • Satisfactory Essays

    People’s Home Gadgets

    • 362 Words
    • 2 Pages

    They have strategic performance drivers based on low costs-high quality policies. It indicates a core concept of competition. In other words, it is called Cost leadership strategy. By lowering costs, they are able to get a high market positions more that other competitive. To maintain that position they always consider in respect of cost benefits.…

    • 362 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Havells Case

    • 307 Words
    • 2 Pages

    The acquisition deal of Sylvania was expected to cost more than $200 million, which is a huge amount for Havells. Also there is uncertainty about the returns from the…

    • 307 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    1. Havells’ proposed acquisition of Sylvania Limited Inc. (SLI) makes sense from a strategic point of view. Macroeconomic conditions and an increasing threat of competition give merit as to why this proposed acquisition makes strategic sense. The electrical and lighting industry is poised for a major growth spurt (page 3), and this could pan out to be a lucrative time for companies such as Havells to begin investing in both these segments. Havells has become a dominant player in the switchgear market (page 4), and it has smaller positions in the cable and wire (C&W) and electrical consumer durables (ECD) industries, both of which faced stiff competition. Even though, Havells has a good footing in their Indian domestic market, competition is now increasing due to globalization and governmental policy changes. The liberalization policy of the Indian government has brought new international entrants into the Indian market increasing domestic competition.…

    • 1775 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    • New CEO’s plan to bring in new people (Cecil, Pat) will make long term employees feel threatened and insecure.…

    • 373 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    in cost leadership, a firm must not only be a low cost producer in the industry, but must be able…

    • 787 Words
    • 4 Pages
    Good Essays