mini-cAse on tiger BrAnDs LimiteD

IS TIGER BRANDS STRATEGICALLY READY TO COMPETE AND COOPERATE?

Headquartered in Bryanston, South Africa, Tiger Brands Limited has been one of the
largest manufacturers and marketers of food, home and personal care brands, and
baby products in Southern Africa for several decades. Founded in 1921, the
consumer goods company has used expansion, acquisitions, and joint ventures to
achieve a distribution network that now spans across more than 22 African
countries. Apart from its operations in South Africa, Tiger Brands also has interests
in international food businesses in Chile, Zimbabwe, Nigeria, Kenya, and Cameroon.
For the period October 2014 to March 2015, Tiger Brands reported a 9 percent
increase in operating profit from domestic businesses; the total group turnover
increased by 7 percent to 15.9 billion South African Rand, while operating profit
before the IFRS 2 charges declined by 3 percent to 1.7 billion South African Rand. In
2010, the Competition Commission found Tiger Brands, and its competitors Pioneer
Foods and Premier Foods, guilty of anti-competitive behavior and conspiring to
increase the price of bread. However, Pioneer settled on a penalty of nearly 1 billion
South African Rand and Premier was granted immunity for co-operating with the
commission, while Tiger Brands, despite co-operating had to pay a fine of nearly 90
million South African Rand. Tiger Brands statements of vision and mission, posted
on their corporate website, include its aim to be the worlds most admired brand for
consumer packaged-goods in emerging markets. Tiger Brands is also working
towards being a high performing, fastmoving company that operates across the
globe in several emerging territories.
Questions 1. How well does Tiger Brands vision and mission statements help
narrow down feasible alternative strategies available for the firm?
2. Does Tiger Brand pursue a cost leadership, differentiation, or focus strategy?
Evaluate its strategic approach in comparison to its competitors.
 HOW WOULD A BCG FOR HYUNDAI LOOK LIKE?
Hyundai Motor Company is a large multinational automotive manufacturer
based in Seoul, South Korea, that also owns a 32.8 percent of Kia Motors. Currently
the fourth largest vehicle manufacturer in the world, Hyundai operates the worlds
largest integrated automobile manufacturing facility in Ulsan, South Korea. With
around 75,000 employees globally, Hyundai sells automobiles across 193 countries
with the help of around 6,000 dealerships and showrooms. In August 2015, the five
largest auto brands in China are Volkswagen, General Motors, Nissan Motor,
Hyundai Motor, and Toyota Motor. Among these five companies, only Toyota is on
track to meet its full-year 2015 target, while Hyundai is performing the worst.
Specifically, in the first-half of 2015, Toyotas China sales rose 10 percent, on track
to meet their 20 percent full-years growth target. In contrast, Hyundais China sales
fell 8 percent although the company has a 3 percent full-year growth target.
Hyundai recently posted its lowest monthly China sales figure in four years, selling
54,160 cars in July, 2015, down 32 percent from a year ago. Hyundai Motor stock
price dropped 4.1 percent in Seoul in one day due to weak China data and strong
Korean won. Currency movements of the won versus the Japanese yen and the
Chinese yuan heavily impact automobile sales.
Questions 1. On a BCG Matrix for Hyundai, what would be the RMSP value for
companys operations in South Korea?
2. On a BCG Matrix for Hyundai, what would be an appropriate IGR value for
the companys operations in China?
3. HYMTF stock sold for $39 on 21 August, 2015. If the stock price rises 39
percent as expected, what would the price become?