Homework answers / question archive / PARC was set up in 1970 as the research arm of Xerox Corp, to invent the technology of the future

PARC was set up in 1970 as the research arm of Xerox Corp, to invent the technology of the future

Business

Share With

---

PARC was set up in 1970 as the research arm of Xerox Corp, to invent the technology of the future. In a little over 30 years since it was set up, till it was incorporated as a Xerox subsidiary in 2002, PARC invented a number of products which revolutionized the computer industry. The prototype of the modern PC, local area networks, Graphical user interface, commercial application of the mouse, page description languages, laser printers, etc, all took birth at PARC. However, despite its scientific excellence, Xerox failed to capitalize on the commercial potential of most of these innovations. Analysts have said that this could have been because of the casual and flexible culture that prevailed at PARC.

This flexibility allowed people to pursue projects of their interest with no concern for commercial value. Another important reason could have been the distance of PARC from the corporate headquarters, cut off from the competition of the corporate world. It was also suggested that there was a basic mismatch between the objectives and working methods of PARC scientists and the people at the corporate office. In the early 21st century PARC was spun-off as an independent subsidiary of Xerox. Xerox had also set up some subsidiaries to help commercialize the inventions that came out of PARC.

Issues:

» To understand the conflicting structure and culture issues involved in managing innovation successfully - promoting creative thinking to develop innovative ideas and products, and ensuring the discipline to commercialize these ideas and products successfully

 

» To study the ways in which an organization may break away from its past of lost opportunities and restructure itself to meet the needs of the future

 

Q.2).The case examines the evolution of Hong Kong based Li & Fung Limited from a traditional trading company into a global consumer goods export trading giant and a manager of customers' supply chains. It discusses in detail the company's efforts to constantly evolve its business model in response to the changes in the external environment and the customer needs and preferences. The case examines Li & Fung's major strategies viz. positioning itself as supply chain manager, integration of operational strategy with its organizational strategies, customer-centric organizational structure, technology and Internet initiatives, and globalization efforts, which contributed to the company's emergence as one of the world's leading consumer goods trading companies.

Finally, the case explores the challenges facing Li & Fung in 2004 and discusses its future prospects in the light of these challenges. The key focus of the case is on enabling the students to gain a comprehensive understanding of globalization - rationale, levels of globalization, managing global operations, globalization strategies and challenges.

Issues:

» Understand how a regional trading company used its core advantage (its vast sourcing knowledge and network) to become a global value chain manager, providing global economies of scale and scope to its customersStudy the importance of efficient value chain management for a global company

 » Critically analyze the strategies adopted by Niall SK Booker to make HSBC India an aggressive, performance-oriented organization

 » Examine the role of IT and the Internet as major drivers of globalization

» Study the importance of acquisitions and alliances in a company's globalization strategies

» Understand how innovation, differentiation and customization can be used as strategic and competitive advantages by a company, to maintain its leadership in the domestic market, and emerge as a global player

 » Appreciate how visionary leadership and management capability can work as a core advantage for a company to attain success in global markets

 » Study the changes taking place in the retailing and trading industry with respect to customer requirements and examine the need for a customer-centric business model for an export trading company

 » Gain insights into the dynamics of Hong Kong's export trade industry

 Q.3).The case explains the entry of Kodak into China and its growth strategies. Kodak established its representative office in China in 1927. Till the late 1990s, Kodak products were imported into China through Hong Kong. As imports were costlier, Kodak wanted to start its manufacturing operations in China. In 1998, with the support of the Chinese government, Kodak acquired three domestic companies. This helped it strengthen its position in the Chinese market. To consolidate further, Kodak acquired a 20 percent stake in Lucky Films, a domestic company. The case also explains the competition between Kodak and Fuji in the Chinese market. The marketing initiatives taken up by both companies are explained. The case ends with the future outlook of Kodak in China.

Issues:

» Understand approach taken by multinationals to tap new markets

 » Understand the various issues involved in the setting up of a new company in an international market

 » Understand how the political environment in the host country affects the operations of an MNC

 » Understand the strategies adopted by an MNC to expand its operations

 » Understand the complexity of a growing market like China

 » Understand the growth of a US imaging major in China

 » Understand the contribution made by an MNC to the host country's economic development

 

Q.4).The Benetton family had its humble beginnings in a small town selling handmade sweaters. The handmade sweaters business gradually became a highly successful international clothing business. After achieving such success, in the late 1980s the family began diversifying into various other businesses. The family had set up Edizione Holding, a holding company, which held their clothing business run by the Benetton Group and all the other businesses they acquired. The case examines each of these diversifications and how they have fared. It looks into the issues each of these companies have faced and how they have dealt with them. Particularly, the case examines the problems Edizione holding faced with the Competition Authority, on diversifying into the motorway catering business and highway operation and management businesses.

Issues:

» Understand how a successful company can manage diversifications unrelated to its core business

 » Understand the risks of a perceived synergy between the core business and unrelated diversification failing to materialize

 » Understand the issues a company faces when two of the businesses it has diversified into are dependent industries

 Q.5).The case discusses in detail the various drivers that led to the merger of British Steel and Hoogovens to form a new company, Corus. It provides relevant information about the European steel industry in general and the UK steel industry in particular during the period, both before and after the merger. Corus was an attempt to revive the ailing British Steel which had incurred a net loss of £81 million in the year ended 31 March 1999. Analysts pointed out that the high valuation of the British pound and stagnation in demand for steel was gradually undermining the competitiveness of British Steel in the European market. The larger merged company was expected to meet the challenges of the increasing bargaining power of customers and the downward movement of steel prices.

The Dutch partner Hoogovens sought to gain critical mass in the global metals market through synergies with its UK partner. But Corus failed to live upto market expectations. Just three years after the merger, in 2003, Corus's stock market valuation had dropped to $230 million from $6 billion in 1999. Various reasons were identified for the failure, chief among them being the cultural mismatch between the merged entities and the lack of HR involvement when integrating the two entities. Large scale labour unrest due to the downsizing and rationalization of various operations seriously impacted the normal functioning of the new organization.

Issues:

» Understand and appreciate the various drivers that affect the global steel industry

 » Evaluate the market and economic implication of mergers and identify the synergies that can be attained

Understand issues involved in cross border mergers: rationalization of the workforce and operations, restructuring the organization structure and integration of the cultural differences between the merged entities

 » Discuss in detail the parameters that led to the merger of British Steel and Hoogovens and the scope and potential of the new entity

 » Trace the reasons behind the failure of Corus to meet management and market expectations

 » Appreciate the role of coordination in cross-cultural mergers and discuss how unstructured HR activities could jeopardize other operations

 Q.6).Coca-cola has a presence in over 200 countries worldwide and is acknowledged as the most recognized brand in the world. This case explains Coca Cola's entry and growth strategies in China and the reasons for its success in this market. The case discusses its strategy for re-entry into the Chinese market and its long-term localization strategy.

 The case also looks at how Coke cooperated with the Chinese government in order to soften the impact of the restrictive policies regarding Foreign Direct Investment in China, and how it designed its marketing and promotion strategies to suit the Chinese market?

Issues:

» Understand the re-entry strategy of a multinational beverage company

 » Understand how a multinational company can work with the government in a situation where policies are restrictive of FDI

 » Understand the long-term localization strategy of a multinational company

 » Understand how a multinational company adapts its distribution, marketing and promotion to the new market that it enters.