business policy - case study assignment_abhishek_shashikant_gaurav_shivani

8/3/2019 Business Policy - Case Study Assignment_Abhishek_Shashikant_Gaurav_Shivani

1/13

Winning in the Green Frenzy:

1. Can sustainability or green issues be used as

a source of a competitive advantage for

organizations? Explain with examples the

advantages and disadvantages of trying to

follow the green strategy in the Indian Market.

Ans. Sustainability has become a key business issue for

consumer product companies. They recognize that in

order to remain competitive they must shift to meet the

changing demands of consumers and of theenvironment. To do this, businesses are taking a critical

look at their supply chains and determining how they can

produce better products that have a reduced impact on

the environment and can still deliver on their brand

promise. Some of the ways this is being done include

responsible raw material sourcing, more efficient

manufacturing processes and reduced, reusable or

recyclable packaging materials to cut waste to landfills.

Companies are also beginning to highlight such

innovations on their product packaging to promote their

commitment to environmental stewardship and gain

loyalty from like-minded consumers. These are some of

the examples of innovative green products in US,

If someone needs a light bulb, they can consider theMarathon brand from Philips. A compact fluorescentlight bulb that comes with a $15 price tag but would

1 | P a g e


2/13

save them approximately $26 over its lifetime whilesparing them the hassle of changing bubs, especiallyappreciated in hard to reach places.

If someone wants cleaner clothes, they can try some of

the front-loading washers that are now on the marketthese days thanks to Department of Energy regulationsrequiring higher levels of energy and water efficiency.Chances are the one they buy will not only have thesame capacity as their top loader, it leaves theirclothes clean and bright; and since it wont agitate thewash load, without the prospect of a shortened life,too.

If someone drives fewer than 7500 miles per year, theycan look forward to saving thousands of dollarsannually by joining one of the 25 car sharing servicesthat have sprung up around the U.S.A time-sharingconcept for cars imported from the Netherlands, suchservices lets them borrow any type of vehicle to suitthe particular need of your driving occasion a van for

moving, a sporty small car for running errands aroundtown. This concept innovation represents only one ofthe possible new business models that green-inspiredinnovation can bring.

In India, around 25% of the consumers prefer

environmental-friendly products, and around 28% may

be considered healthy conscious. Therefore, greenmarketers have diverse and fairly sizeable segments to

cater to. The Surf Excel detergent which saves water

(advertised with the message"do bucket paani roz

bachana") and the energy-saving LG consumers durables

2 | P a g e


3/13

are examples of green marketing. We also have green

buildings which are efficient in their use of energy, water

and construction materials, and which reduce the impact

on human health and the environment through better

design, construction, operation, maintenance and wastedisposal. In India, the green building movement,

spearheaded by the Confederation of Indian industry (CII)

- Godrej Green business Center, has gained tremendous

impetus over the last few years. From 20,000 sq ft in

2003, India's green building footprint is now over 25

million sq ft.But the major disadvantage of this is changing the habit

of the consumers because these products are generally

thought of as costly which results in going in for the

conventional products. Many organizations want to turn

green, as an increasing number of consumers' want to

associate themselves with environmental-friendlyproducts. Alongside, one also witnesses confusion among

the consumers regarding the products. In particular, one

often finds distrust regarding the credibility of green

products. Therefore, to ensure consumer confidence,

marketers of green products need to be much more

transparent, and refrain from breaching any law or

standards relating to products or business practices.

3 | P a g e


4/13

2. Using the matrix given in the case, illustrate

2 examples of organizations in each quadrant.

Ans.

Quadrant Define: Wipro's Green Machines (In India Only): Wipro

Infotech was India's first company to launchenvironment friendly computer peripherals. For theIndian market, Wipro has launched a new range ofdesktops and laptops called Wipro Greenware. Theseproducts are RoHS (Restriction of Hazardous

Substances) compliant thus reducing e-waste in theenvironment.

Going Green (Tata's new mantra):The ideal global benchmark though is 1.5. Tata Motorsis setting up an eco-friendly showroom using naturalbuilding material for its flooring and energy efficientlights. Tata Motors said the project is at a preliminary

stage. The Indian Hotels Company, which runs the Tajchain, is in the process of creating eco rooms which willhave energy efficient mini bars, organic bed linen andnapkins made from recycled paper. But there won't beany carpets since chemicals are used to clean those.And when it comes to illumination, the rooms will haveCFLs or LEDs. About 5% of the total rooms at a Tajhotel would sport a chic eco-room design.One of the most interesting innovations has come inthe form of a biogas-based power plant at Taj GreenCove in Kovalam, which uses the waste generated atthe hotel to meet its cooking requirements. Anothereco friendly consumer product that is in the works is

4 | P a g e


5/13

Indica EV, an electric car that will run on polymerlithium ion batteries. Tata Motors plans to introducethe Indica EV in select European markets this year.

Quadrant Co-Opt: Tata Metaliks Limited (TML):Every day is Environment Day at TML, one of the topgreen firms in India. A practical example that madeeveryone sit up and take notice is the companyspolicy to discourage working on Saturdays at thecorporate office. Lights are also switched off during theday with the entire office depending on sunlight.

Tamil Nadu Newsprint and Papers Limited(TNPL):The initiatives undertaken by this top green firm inIndia includes two Clean Development Mechanismprojects and a wind farm project that helped generate2,30,323 Carbon Emission Reductions earning Rs.17.40 Crore.

Quadrant Adopt: IndusInd Bank:

Green banking has been catching up as among the topIndian greeninitiatives ever since IndusInd opened thecountrys first solar-powered ATM and pioneered aneco-savvy change in the Indian banking sector. The

bank is planning for more such initiatives in addressingthe challenges of climate change. ITC Limited:

ITC strengthened their commitment to greentechnologies by introducing ozone-treated elementa

5 | P a g e


6/13

chlorine free bleaching technology for the first time inIndia. The result is an entire new range of top greenproducts and solutions, the environmentally friendlymulti-purpose paper that is less polluting than its

traditional counterpart.

Quadrant Break Away: Oil and Natural Gas Company (ONGC):

Indias largest oil producer, ONGC, is all set to lead thelist of top 10 green Indian companies with energy-efficient, green crematoriums that will soon replace thetraditional wooden pyre across the country. ONGCs

Mokshada Green Cremation initiative will save 60 to70% of wood and a fourth of the burning time percremation.

IDEA Cellular:One of the best Indian companies, IDEA, paints Indiagreen with its national Use Mobile, Save Papercampaign. The company had organized Green Pledge

campaigns at Indian cities where thousands cameforward and pledged to save paper and trees. IDEA hasalso set up bus shelters with potted plants and tendrilclimbers to convey the green message.

The Global Pharmaceutical Industry:

6 | P a g e


7/13

1. Identify the main environmental factors

currently affecting the pharmaceutical industry.

What are the likely implications of the changing

business environment on pharmaceutical firms?

Ans.There is evidence of transference of marketing across

countries. Marketing health products directly to consumers

includes leveraging established distribution channels as

well as creating new ones through the Internet. There is

evidence of cost advantages and economies of scale. The

recent trend of mergers exploited potential cost

advantages to be found in R&D facilities serving globaoperations. This reflects the fact that R&D capabilities have

been and will continue to be critical in determining the

structure of the industry. Cost savings were also realized in

head office and local company infrastructures.

There is evidence of interdependence encouraging the

globalization of competitors. For instance, big

pharmaceuticals are investors in the biggest biotechnology

companies. Firms also make their marketing skills and

capacity available to smaller players including those from

abroad (particularly to enter the US and Japanese

markets). Another example involves firms specializing in

offering multi-country clinical trials.

At the same time, there are factors reducing possibilities

for convergence. For instance, political, economic and legal

considerations prevent globalization extending to al

7 | P a g e


8/13


9/13

question of what is the optimal size for a pharmaceutical

company, particularly in marketing and research terms.

The entry of biotechnology companies and the trend to

contract out clinical research suggests that some research-

based companies are focusing on global sales and

marketing competences and using their global presence

and marketing skill to attract products from biotechnology

or University research sectors.

For the generic manufacturer size has become critica

because during the late 1990s there was a collapse ofgenerics prices in the US, resulting in a shake-out to

identify cost leadership. Manufacturers of generics thus

faced a classic stalemate type environment where

economies of scale prove decisive.

Outsourcing of manufacturing together with the

contracting of R&D to biotech and licensing agreementsresulted in most major companies developing competences

in alliance management.

A key feature of branded over-the-counter (OTC) drugs has

been the development of direct-to-consumer marketing

capabilities.

2. What are the key growth drivers of the

pharma industry in India? What would your

9 | P a g e


10/13

recommendations be for the Indian Pharma

Players?

Ans. Asia-Pacific region is emerging as the fastest growing

pharmaceutical market in recent years.

Indian Pharma business is emerging as a global

powerhouse with rich pipeline of various products, is

becoming 3rd Pharma super power in the international

level, despite the current economic slowdown

pharmaceutical R&D is increasing mode in India.

The Indian pharmaceutical companies export theiproducts (Drug intermediates, APIs, Finished Dosage

Formulations, Bio Pharmaceuticals) to more than 200

countries around the world (including highly regulated

markets of USA, West Europe, Japan and Australia). 40% of

the worlds bulk drug requirement is met by India. As

multiple global segments are available for Indian Pharmacompanies: Such as Pharma manufacturing, drug

discovery, research, clinical outsourcing, marketing, and

etc

Growth Drivers

Increasing drug R&D costs in compared to India

Enhanced healthcare investments in developingcountries

Healthcare reimbursement issues in the U.S. andEurope

10 | P a g e


11/13

Scientific breakthroughs in genomics and proteomics

Increasing cost and commercialization pressures inother nations

WTO patented for cements, and several other industry

dynamics

With the increased presence of multinational companies,

the Indian pharmaceutical sector is flourishing with

multiple opportunities, even the Indian companies are

revamping their R&D facilities to comply with World Trade

Organizations Trade Related Aspects of Intellectual

Property Rights (WTO-TRIPS) agreement and recognized

product patents with the amendment of the Indian Patent

Act in January 2005.

India is also set to become global hub for clinical trials

sector. Today India is the most favored destination, fast

becoming a signification hub for conducting global clinical

trials, contract research, and bio-technology. In terms of

cost efficiency India is better, as the cost of conducting a

trial here is lower by 50-60% than in the United States or

the European Union.

India is currently accredited as the global pharmacy of the

developing world and has attained cost-competitive

manufacturing capabilities to provide quality medicines at

lower costs, in the last few years Indian pharmaceutical

industry has shown tremendous growth in terms of

11 | P a g e


12/13

infrastructure development, technology base creation, and

production of a wide range of therapeutic products.

Recommendations:

The industry has thrived so far on reverse engineeringskills exploiting the lack of process patent in the country.

This has resulted in the Indian pharmaceutical players

offering their products at some of the lowest prices in the

world. The quality of the products is reflected in the fact

that India has the highest number of manufacturing plants

approved by US FDA, which is next only to that in the US.Multinational companies have traditionally dominated the

industry, which is another trend seeing a reversal.

Currently, it is the Indian companies which are dominating

the marketplace with the local players dominating a

number of key therapeutic segments. The market is also

very fragmented with about 30,000 entities and the

organized sector consisting of about 300 entities.

Consolidation is increasing in the industry with many local

players building a global outlook and also growing

inorganically through mergers and acquisitions. So, they

should venture developing blockbuster drugs which would

allow them to enter the global market and also the

government should give emphasis and provide funds forsuch developments.

By: Abhishek Mishra

12 | P a g e


13/13

Shashikant JajalShivani KavadiyaGaurav Gupta

13 | P a g e

business policy - case study assignment_abhishek_shashikant_gaurav_shivani

Documents