Sei sulla pagina 1di 12
A research paper submitted in fulfillment of the requirements for Capstone Project CAPSTONE PROJECT MBA
A research paper submitted in
fulfillment of the requirements for
Capstone Project
CAPSTONE
PROJECT
MBA GLOBAL
SANJIT KUMAR SAHOO
UM14376

EXECUTIVE SUMMARY

This report aims to look at the learnings obtained while studying at three partner Universities and encapsulate strategic learnings through cross cultural business environment based on the current policies and procedures in three different continents.

After the investigation from European Business Context, Sweden and the Netherlands surfaced as the most optimal countries to pursue. With proactive policies toward elderly care, their governing bodies have fostered spirited innovation with incentives stimulating trailblazing flagship programs and technological advancement. A profound competitive analysis of the EU indicated there is a strong interest in developing the sector based on these existing projects in the field. Conversely, as these are merely pilot projects, each in an infantile stage, iLead can still capitalize on the benefits inherent in a budding market.

Aluminum, one of the most widely used metals, has seen dramatic changes in the industry in terms of market share, geographic and product demand and pricing. With a growth rate of 6% year over year, aluminum has outpaced all other metals in terms of growth. Overall the emerging BRIC economies consume over half of the worldwide aluminum supply with China being the major consumer at 40%. The major use in developing markets is for construction, as aluminum is priced lower than other metals. In addition to being the biggest global consumer, China is also the largest producer of aluminum at 49.5%. The worldwide market consists of six major players and has seen the emergence of non-fully integrated companies focusing on one value adding stage of the supply chain. Aluminum is traded on the commodities market and as such pricing is determined not only by supply and demand but also by financial trends, such as investor stockpiling and fluctuations in oil prices.

When evaluating the market landscape for Seifas, a new potential entrant in the global medical device marketplace, we first analyzed numerous international segments of interest. We conducted robust macro environmental and situational analyses, exploring population demographics, social factors, technological acumen and current national political state. This comprehensive initial appraisal served as a benchmarking and assessment tool from which we could develop an entry strategy for two markets. Our findings revealed a large population of diabetic consumers in the US, and sizable subset of intravenous drug users in the Baltics, catalyzed greatest growth and opportunity for Seifas. As needle retractability and disposability are the cornerstone features of the Seifas product, the public health issues in these markets served as an open invitation for market entry.

Table of Contents

EXECUTIVE SUMMARY

0

1. INDIAN PERSPECTIVE OF DOING BUSINESSS FROM THE BHUBANESHWAR MASTER PROJECT

3

2. EUROPEAN PERSPECTIVE OF DOING BUSINESSS FROM THE ANTWERP MASTER PROJECT

5

3. AMERICAN PERSPECTIVE OF DOING BUSINESSS FROM THE NEW YORK MASTER PROJECT

6

4. INTEGRATION OF INDO-EUROPE-US BUSINESS PERSPECTIVES AND LEARNINGS DERIVED

7

5. OUTCOMES FROM THE THREE MASTER PROJECT AND HOW IT HELPED BUILD LEARNING

7

6. SWOT ANALYSIS FROM THE STUDENT EXPERIENCE OF THE THREE MASTER PROJECTS

9

7. RECOMMENDATIONS FOR FUTURE MASTER PROJECT FROM LEARNINGS GAINED

10

8. CONCLUSION

10

9. BIBLIOGRAPHY

10

1. INDIAN PERSPECTIVE OF DOING BUSINESSS FROM THE BHUBANESHWAR MASTER PROJECT

The landscape of the Indian business has been changing with demand and consumption more heavily occupied by developing countries such as China and India. NALCO is in a position to benefit from the current trends in the aluminum industry but the constraints mentioned, such as pricing strategy, under-utilized capacity, and lack of critical resources, such as power, has stalled their potential. New capital is necessary to facilitate projects to spur the growth and ensure a stable future. Through new governmental policies, such as disinvestment, FDI policies, and other Make in India incentives, the growth factors indicate that India is ripe for foreign investment. One way to obtain foreign investment are Public Private Partnerships, which offer a means of investment that benefits both involved parties, and can target certain projects, such as increases power capacity and diversifying products lines to include finished projects as mentioned above. These added activities can increase the capacity and output of NALCO, thus ensuring a sustainable, competitive future in the growing economy of India.

Revenue from operations was lower compared to previous year primarily on account of a strategic decision to limit metal production by using electricity generated through linkage coal only, as use of high priced imported coal will not be cost effective at the current level of LME. NALCO still could achieve a higher profit due to certain management interventions like complete stoppage of power purchase from the Grid, improved efficiency in consumption of fuel oil, reduced use of imported coal, reduction in metal production etc. and higher volume of alumina production and sale.

If a government owned company like NALCO wants to attract the private sector, more specifically foreign investors, it needs to recognize the challenges and drawbacks related to the development of a PPP.

Complexity and Higher Transaction cost

PPPs have complex structures and complexity within organizations usually means higher costs (PPIAF, 2009). The number of players that is normally involved in the implementation of a PPP is an indicative of the complexity and required level of analysis in order to organize and manage the various factors of a PPP (PPIAF, 2009).

Long-term commitment

PPPs require a long-term commitment between the public sector and private organization. For a public authorized company, like NALCO, this long-term commitment can present challenges and

constraints that need to be taken into account carefully before commencement (PPIAF, 2009). Few of these specific constrains are listed below.

Flexibility

A PPP contract is recognized as an “incomplete contract”, which means that the contract cannot

guarantee partnership for all unforeseen circumstances in the future. The more complex and longer

the contract is, the more it is impossible for the public authority to not deal with unforeseen circumstances.

Planning Constraints

PPPs require a stable, long-term planning horizon. If the public authority company cannot clearly specify its future commitment and its flexibility towards the changing technology and environment, it might not be suitable for a public private partnership.

Culture gap

There exists a culture gap between the private and public sector, which might result in loss of trust

in each other when working together in a PPP’s (PPIAF, 2009). The motive of the private party to

take part in a PPP is primarily profit making and to build up their reputation. However the public sector’s motive is mostly social attractiveness (PPIAF, 2009).

Establishment for PPP Policy Framework

Implementation of a PPP requires the prior establishment of a PPP Policy Framework. Several structural measures will need to establish an enabling environment, which may attract interest from the private sector for the provision and funding for the PPP. The public commitment will need to cover the costs of the initiation process to implement this partnership.

Dominance of foreign players in PPP market

PPP’s are generally led by experienced international players with the required expertise and financial stability to assume the financing and risk of the PPP investment. This is even more the case in developing countries like India. The predominant role of large foreign contractors may both have political implications and may directly affect the local contracting industry by restricting the implication of domestic players.

Private profit at the public’s expense

There is an often-heard criticism that says that PPPs give private sector investors the opportunity to make profits by providing services which could have been provided by the public sector more cost-effectively. It may be reinforced in the event of government subsidies and the notion that taxpayer’s money is being used to directly fund the profit margins of private investors.

It will be crucial for both parties to set up a trusting relationship between the public and private parties of the partnership to enhance a sustainable commitment towards each other and increase efficiency in the collaboration between the two.

2. EUROPEAN PERSPECTIVE OF DOING BUSINESSS FROM THE ANTWERP MASTER PROJECT

The product, the VanHove+, that will be sold offers an integrated solution for homecare services that will enhance the quality of life of the elderly and keep them at home as long as possible. The product offered is a combination of a household robot and a Smart House. The robot helps older people in their daily lives. The robot has both artificial emotional and intellectual knowledge. Through an integrated camera and LCD-screen, the patient can have video calls with relatives or their doctor. The former will help older persons to keep them out of isolation while the latter will facilitate medical interaction to keep doctors in touch with their patients.

When considering this exciting new venture, rife with innovation and potential for growth, we have left no stone unturned, examining all considerations that can promote or inhibit your achievement in the field. These finding indicate:

Demographic changes reflecting a rapidly aging elderly population with a growing desire for independence

Existence of suppliers to show the market size and competition

Current and projected shortages in labour supply inherent in a shrinking nursing sector

Existence of governmental policies stimulating innovation

Changing country cultures and increased proclivity towards acceptance of robots

After this investigation, Sweden and the Netherlands surfaced as the most optimal countries to pursue. With proactive policies toward elderly care, their governing bodies have fostered spirited innovation with incentives stimulating trailblazing flagship programs and technological advancement. A profound competitive analysis of the EU indicated there is a strong interest in developing the sector based on these existing projects in the field. Conversely, as these are merely pilot projects, each in an infantile stage, iLead can still capitalize on the benefits inherent in a budding market.

Finally, after providing an illustrative picture of the market and items for consideration, we feel confident when recommending entry strategies for the short and long term that include:

Maintaining a home base for production in the United States, while exporting product and training employees in the Netherlands and Sweden

Setting up partnerships with local municipalities or real estate companies

Targeting customers in accordance with local laws.

In doing so, iLead will be in a position to benefit from EU initiatives and foster real growth within the field. We truly believe in the value of this product, and thank you for the opportunity to be involved in its success.

5 | P a g e

When launching the product, iLead should take the legislation of the EU, Sweden and the Netherlands into consideration. To protect their product, they should apply for a patent at the WIPO. Their brand name and the physical aspects of the product should be protected as well.

To successfully enter the market, iLead should take advantage of the initiatives taken by the EU to improve the quality of live for older persons. To minimize the risks, iLead should keep the manufacturing in the USA and export it to the Netherlands, where the logistic centre and the HQ for the EU will be set up. In Gothenburg, a smaller office will be set up in order to make sure to offer qualitative services to the customer. In the long run, iLead could consider to move a part of the production to lower wages countries in the EU and to open offices on strategic places, such as the social park in Bilboa.

Due to the early implementation stage of our product, development costs and the costs for the technology are high which leads to a higher selling price. Therefore it is necessary for iLead to lower the price in order to make it attractive for potential customers to buy it. iLead should lobby with the different governments and persuade them to subsidize the product it is selling. When lobbying towards the Swedish and Dutch government to get a refund for its product, they should emphasize on the increasing need for homecare services and the labour shortages.

3. AMERICAN PERSPECTIVE OF DOING BUSINESSS FROM THE NEW YORK MASTER PROJECT

When evaluating the market landscape for Seifas, a new potential entrant in the global medical device marketplace, we first analyzed numerous international segments of interest. We conducted robust macro environmental and situational analyses, exploring population demographics, social factors, technological acumen and current national political state. This comprehensive initial appraisal served as a benchmarking and assessment tool from which we could develop an entry strategy for two markets. Our findings revealed a large population of diabetic consumers in the US, and sizable subset of intravenous drug users in the Baltics, catalyzed greatest growth and opportunity for Seifas. As needle retractability and disposability are the cornerstone features of the Seifas product, the public health issues in these markets served as an open invitation for market entry.

From this survey, we felt confident we had fundamental insights into the respective markets and conducted competitor analyses within the sphere. Standing on a strong foundation of understanding, we set marketing objectives, identified target markets, found appropriate positioning and developed a comprehensive marketing mix for Seifas in both the United States and in the Baltics. Two-fold, we divided our marketing objectives into financial and non-financial segments. Looking for commercial gain, we set our goal for the US at a 2% market share in the first three years and a growth of at least 5% per year after that. In the Baltics, we went for a more aggressive strategy, planning to secure 10% of the market three years after launch, followed by an above-average growth rate of 4.3% (based on current BMI Research, 2014). In order to do achieve our goals, we plan to align with major GPO’s in the US, and local and federal governments in the Baltics.

4.

INTEGRATION OF INDO-EUROPE-US BUSINESS PERSPECTIVES AND LEARNINGS DERIVED

As the specific target markets and positioning in the US were based on heavy concentrations of diabetic patients and disproportionate drug use, Florida and Texas surfaced as states rife with opportunity, meeting both criterion. A mid-priced product, ideal for hospitals, pharmacies, health organizations and individuals, we positioned our product accordingly. In the Baltic regions, we would base our operations out of Estonia, sell at a low market price for insulin users, vaccination camps, hospitals, pharmacies and health organizations. Seifas’ patented, single dose syringe mechanism will help combat the spread of menacing diseases of TB, diabetes and AIDS without impacting caregiver budget. We would primarily sell through bundled packages and B2B advertising in the medical sector, the implementation details of which are further elaborated below.

The foreign investors will have a cutting edge advantage by entering into PPP under the FDI policies:

Ensure open market access and fair competition for the Global players.

Protect the public interest and maximize the value added to citizens in terms of infrastructure development.

Define the optimal level of grant financing both to realize a viable and sustainable project but also to avoid any opportunity for windfall profits (or losses) from grants.

Assess the most effective type of PPP for a given project with the appropriate parameters: balanced distribution of risks, appropriate duration, and clarity of responsibilities within the various regulatory environments.

iLead should enter the EU market by launching its product (the VanHove+) in Sweden and the Netherland first. A country comparative study has shown that these two countries had the best characteristics for new products in the homecare sector for older persons. A competitive analysis of the market has shown that no other competitors exists in the EU, but strong positive signals have been given through several pilot projects focusing on robotics in the homecare sector for older persons.

5. OUTCOMES FROM THE THREE MASTER PROJECT AND HOW IT HELPED BUILD LEARNING

A country comparative study has shown that Sweden and Netherland had the best characteristics for new products in the homecare sector for older persons. A competitive analysis of the market has shown that no other competitors exists in the EU, but strong positive signals have been given through several pilot projects focusing on robotics in the homecare sector for older persons. When launching the product, one should take the legislation of the EU, Sweden and the Netherlands into

consideration. To protect their product, they should apply for a patent at the WIPO. Their brand name and the physical aspects of the product should be protected as well.

To successfully enter the market, one should take advantage of the initiatives taken by the EU to improve the quality of live for older persons. To minimize the risks, one should keep the manufacturing in the USA and export it to the Netherlands, where the logistic centre and the HQ for the EU will be set up.

Concerning position within the market, we aim to distinguish our product such that our customers will be able to understand and see clear and distinct differentiation visà-vis our peers. We aim to focus on five key attributes including added value, cost, service, distribution and packaging for creating a unique image for our product. Also, we have designed the positioning keeping mind the Wallet Allocation Rule (W.A.R) i.e. in modern times, how customers spend is not related to the brand but relative to other brands. We have derived our positioning statement by understanding a series of market facts wherein we:

Defined the market in which the product will compete.

Identified the attributes that define the product space.

Determined the product's share of mind to find the main objective of advertising and promotion.

Determined the product's current location in the product space

New capital is necessary to facilitate projects to spur the growth and ensure a stable future in the Indian Business. Through new governmental policies, such as disinvestment, FDI policies, and other Make in India incentives, the growth factors indicate that India is ripe for foreign investment. One way to obtain foreign investment are Public Private Partnerships, which offer a means of investment that benefits both involved parties, and can target certain projects, such as increases power capacity and diversifying products lines to include finished projects as mentioned above.

6. SWOT ANALYSIS FROM THE STUDENT EXPERIENCE OF THE THREE MASTER PROJECTS

Strengths Weaknesses •Diverse market with many providers providing niche products •Willingness of adults to work
Strengths
Weaknesses
•Diverse market with many providers providing
niche products
•Willingness of adults to work beyond retirement
age  keen to pay for services (e.g. robotics)
•Homecare market is dominated by few players
mainly housing providers and healthcare
businesses.
•Low investment for developing innovative
product  market demand isn’t meet
ANTWERP
MASTER
PROJECT
Opportunities
Threats
•Fear of lower pensions  ability to buy robotics
• Increase in population of people aged +65
•Only 20% of the homecare market is in hands of
the private
decreases
•Strong public policy to encourage non-residential
care and independent living didn’t show off
•Low availability of home care providers
Strengths •Huge Market Size and fast developing economy •Cheap Labour Force •Regulatory Framework and Investment
Strengths
•Huge Market Size and fast developing
economy
•Cheap Labour Force
•Regulatory Framework and Investment
Protection
Weaknesses
•Foreign Players entering into Aluminium
sector
•High Technological Improvements required
for developing innovative product
INDIAN
MASTER
PROJECT
Opportunities
Threats
• Increase in domestic consumption via Make
•Exhaust of natural resources and faster
in India Campaign
depletion
Strengths •Huge Market Size and fast developing economy •Regulatory Framework and Investment Protection for new
Strengths
•Huge Market Size and fast developing
economy
•Regulatory Framework and Investment
Protection for new medicinal products
Weaknesses
•High Technological Improvements required
for developing innovative product
•Long incubation period for developing
medical products
AMERICAN
MASTER
PROJECT
Opportunities
• Increase in demand for medicinal products
on account of living life style
Threats
•Chinese Players entering into medical sector
with reasonable price

7. RECOMMENDATIONS FOR FUTURE MASTER PROJECT FROM LEARNINGS GAINED

It was an overwhelming and enriching experience while understanding the policies and guidelines for various market entry strategies in three different continents. I would like to recommend that other partner universities should give some live projects as we did it in India. Moreover from the point of view of the processes and knowledge acquired over two years, I am really satisfied with the existing format of the Master Project.

8. CONCLUSION

Regular business events organized by the three partner universities provided us a platform for interacting with the international business community, industry associations or Indian and European authorities. The events created an opportunity to share experiences and learn from each other as well as establish new business contacts and realize new business opportunities. We got an opportunity to listen to guest speakers with business or industry background who delivered excellent speeches on current and relevant topics, be it the latest tax reform, financial investment, intercultural cooperation or typical obstacles of doing business in India etc.

9. BIBLIOGRAPHY

AAL JP. (2014). About/Objectives. Retrieved from Ambient Assisted Living Joint Programme:

http://www.aal-europe.eu/about/objectives/

ABI

Research.

(2014).

Consumer

and

Personel

Robotics.

Retrieved

from

ABI

research:

http://www.abiresearch.com/research/1003675-Personal+Robotics+2009

 

Accompany.

(2014).

About

Accompany

Project.

Retrieved

from

Accompany:

http://accompanyproject.eu/

ActiZ.

http://www.actiz.nl/kleurrijke-zorg/culturele-diversiteit-in-de-ouderenzorg

(2014).

Culturele

diversiteit

in

de

ouderenzorg.

Retrieved

from

ActiZ:

Acton, A. (2013). Issues in Healthcare Technology and Design: 2013 Edition. Atlanta: Scholarly

Editions.

from

http://books.google.be/books?id=NtRK5kN17DEC&pg=PA31&lpg=PA31&dq=german+health+care

+robotics&source=bl&ots=CG-

smR7cbm&sig=ZpR5lYbGot8kA7T9ihQQE3hUFlk&hl=en&sa=X&ei=K4dnVJSUKtjlarPbgYgK&ved=0

CDwQ6AEwAw#v=onepage&q=german%20health%20care%20robotics&f=false

Retrieved

Baker & McKenzie. (2014). Promoting Medical Devices Globally. Retrieved from Baker & McKenzie:

http://www.bakermckenzie.com/promotingmedicalproductsglobally/

Berger, O., & Ekberg, K. (2013). Filling the gap in long-term professional care through systematic migration policies. Germany.

Boer, F. (2014, June). De geschiedenis van de ouderenzorg in Nederland. Retrieved from IS Geschiedenis: http://www.isgeschiedenis.nl/nieuws/de-geschiedenis-van-de-ouderenzorg- nederland/

Boerma, W., Genet, N., Hutchinson, A., Kroneman, M., & Saltman, R. B. (2013). Home care across

Europe:

http://www.nivel.nl/sites/default/files/bestanden/Home-care-across-Europe-case-studies.pdf

Nivel:

Case

studies.

Retrieved

from

Bremner, B. (2011, March 3). Service Robots: Rise of the Machines (Again). Retrieved from BloomberBusinessweek:

http://www.businessweek.com/magazine/content/11_11/b4219032532458.htm

CIBG. (2014). Wat is het CIBG? Retrieved from CIBG: https://www.cibg.nl/

CompanionAble.

http://www.companionable.net/index.php?option=com_content&view=category&layout=blog&i

d=8&Itemid=2

(2014).

The

CompanionAble

Project.

Retrieved

from

CompanionAble:

Conway,

invest.com/industrial-innovation/nurse-assistant-robots

D.

(2014,

May

28).

Retrieved

from

ARK

Investment

Management:

http://ark-