Arrow and the apparel industry
Q1. Why did Arvind Mills choose globalization as the major route to achieve growth when the domestic market was huge? Ans.: The reasons of choosing global market by Arvind Mills are: 1. Market seeking motives, such as exclusiveness of product and service with high productivity, stringent in-line quality control and an encouraging manufacturing atmosphere. 2. Economic motives, such as profit making by implementing cutting edge technologies to achieve economies of scale and spreading R&D costs. etc. 3. Strategic motives, such as buying-up of sick units, departing worldwide and gaining German and US brand names.
Q2. How does lifting of ‘Country-wise quota regime’ help Arvind Mills? Ans.: The lifting of ‘Country-wise quota regime’ surged a demand for high quality garments from India; while Arvind brands crossed over Rs. 60 crore in the year 2002 and planned to setup two more high tech export-oriented factories in India. And now, Arvind has the largest network of 64 outlets with 30 retail chains and 200 multi-brand outlets all over India. The current turnover of Arvind Brand is about Rs. 85 crore, which aimed to reach Rs. 100 crore with 1200-3000 outlets across 480-800 towns.
Q3. What lessons can other Indian businesses learn from the experience of Arvind Mills? Ans.: Arvind Mills is one of the trademarks of Indian market, which executed diverse patterns of business. Arvind brand extended the international brands in small towns of India. Of course, many other business brands in India now follows Arvind brand. The other Indian businesses should learn a lot from Arvind Mills: international outset of market; Multi-regional integration approach; union and attainment, strategic alliances, international delegates, global network formation; changes in internal organization, etc.
Case 1:-BPO – BANE OR BOON?
Which of the theories of international trade can help Indian services providersgain competitive edge over their competitors? The theory of free markets can help indian services providers gain competitive edgeover their compititors because India has got an edge over other countries at this pointof time but other nations may try to make their products look cheaper bymanipulating their currencies or by imposing restrictions on imported serviceespecially from india We need to do something like this - do something better than your competitors (either make a better product, market it better, service it better, price it cheaper, whatever). Pick up some Indian services providers. With the help of Michael Porter’sdiamond, analyze their strengths and weaknesses as active players in BPO. WNS, which was established in 1996 and transformed from a captive provider to athird-party provider in 2002, announced in December 2004 a new organizationalstructure focused on its vertical business units. The change to the vertical focus wasmade to sharpen the company's domain expertise; develop new services andtechnologies; create superior career paths for talented managers; continue toemphasize entrepreneurship and empowerment, and win and retain business bydelivering exceptional value to its clients. The company's business units are organized into the following vertical sectors: travelservices; insurance services; financial services; enterprise services (including financialand accounting services, human resource accounting and health care processing),and knowledge services (including primary and secondary research, and analytics).Each unit is managed by a chief executive officer and has its own operating and salesteams, and draws upon support and "enabling" services across the company.
"We have seen numerous tangible benefits to our decision in 2004 to more sharply focus our vertical structure," stated Neeraj Bhargava, Group CEO. "Specifically, wehave strengthened our leadership role in the BPO industry; continued to...