Case Study on "Management Principles Mittal"

Quoted Instructions for "Management Principles Mittal" Assignment:

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PS. Hello Josh, i have two orders and base on the same topic. I would need two different paper of writing style as me and my friend needs different writing style.

Subject: Management Principals

Words: 1200

Reference system: APA

Read the following case:

India: A hot bed of competition for mobile phones

Fortune Magazine*****s Asian Businessman of the year (2007) was Sunil Mittal who has achieved a 20 per cent market share in the booming mobile phone market in India. His company, Bharti Tele-ventures, has outgrown traditional large Indian firms Tata and Reliance. The growth in the mobile phone market is little short of incredible in India. Mittal had to hire some 20000 people to serve over 30 million customers with mobile phone services and is reporting some $4 billion in revenue which is eightfold growth in just four years. Profit earnings of $1 billion are extraordinary in this industry because of the investment required and indeed this is accomplished when major rivals are all making losses. Bharti*****s shares have risen 500 per cent in four years and Mittal is one of india*****s richest men.

The most important strategy for Mittal in achieving such growth and doing so at a profit was not to try and do it all himself. Learning from what happened in China, Mittal realised that many well-established foreign companies were very keen to get a foothold in the potentially huge and rapidly growing markets in India. Mittal took good business advantage of that. He did deals with Ericsson of Sweden, Siemens of Germany, IBM of USA and Nokia of Finland which brought him excellent quality of technology and service standards and also brought strong leadership and management systems. By bringing in technology and service standards and having a solid and reliable backing to his business, Mittal was able to focus on marketing and sale growth rather than being preoccupied with service and technology and product challenges which would be very substantial in an independent start-up. He clearly started with some of the world*****s best technology and infrastructure providers. Mittal has gone against conventional wisdom in making these strategic partnerships central element of his business strategy. Mittal has used his business knowledge to expand from mobile phones into other industries. He is using his brand and reputation to do similarly in these industries as he did in telecommunications. He has launched a joint venture with France*****s AXA to sell life insurance in India and an independent business venture is moving fresh fruit and vegetables from India to European supermarkets. A recent announcement to team up with America*****s Wal-Mart and drive forward in retailing. Mittal takes great advantage of these mature companies systems in each of his business ventures. Such joint ventures provide an excellent match of Mittal*****s reputation and marketing knowledge in the local Indian market and the back office excellence of Wal-Mart. This is not really different from AXA*****s back office management of insurance and Nokia*****s, Siemens*****, IBM*****s and Ericsson*****s expertise in mobile phones. Mittal has shown great shrewdness and business acumen in trying up these global giants and leveraging their knowledge in the fast growing market of India.

Sunil Mittal*****s Bharti competes fiercely with Vodafone and at the same time shares the 70000 telecom tower network that they had separately established but now collaborate on with something approaching 60 million customers. These two companies have been competing fiercely for the customers***** attention and business. While possibilities of a full merger appeal to some shareholders but not to others, billions of dollars are at stake. Interestingly mobile phones are rapidly becoming much more than just a medium fro communication using voice and SMS messaging. Email and internet access and even increasingly widespread consumer advertising is occurring in the world*****s mobile phone markets. A new trend in the USA and Europe and coming to virtually every mobile phone market is the possibility of customising mobile phone advertisements such as those by Coca-Cola, Canon, BMW, Pepsi and Nike, knowing their individual demographic properties. Mobile telephony is likely to get a reasonable slice of the $800 billion advertising expenditure on a global basis. Mittal has built a formidable empire in one of the world*****s hot growth markets with the aim of growing as these technology trends overlap.

Source:

Samson, D. & Daft, R. L. (2009). Management (3rd Asia Pacific ed.). South Melbourne, Vic: Cengage Learning Australia, pp. 14-15.

Answer the following questions:

Q.1. What skills (technical, human and conceptual) did Mittal predominantly use to start and operate the businesses?

Q.2. What are the challenges Mittal may face from his foreign partners?

Q.3. What strategies should Mittal take to overcome such challenges?