Tata Group to Acquire 100% Stake in Air India
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Work Culture of Microsoft
Microsoft - Work Culture
Microsoft is an American multinational company headquartered in Redmond, Washington. It was founded by Bill Gates and Paul Allen on April 4, 1975. The company aims at producing computer softwares and other related products that help people and organisations to achieve more.
Microsoft has over 166000 employees. They are all highly satisfied and motivated employees because the work culture of Microsoft is very different from other companies. The company is adopting a growth mindset in its work culture and focuses greatly on innovation and development. The company has earned numerous awards for its culture. In 2021, Microsoft was awarded the Best Places to Work in Seattle, Best Global Culture, and Best Company Outlook.
Some specialities of Microsoft's excellent work culture are as follows :
Growth mindset
Microsoft greatly focuses on the growth and development of employees as individuals, since their development directly influences the company's growth. Microsoft's work culture ensures the company's objectives are aligned with the employees' goals and they both develop together. The company's employees are prompted to do things that make them happy and relaxed. It may be completely unrelated to their job at Microsoft. Therefore, the employees work with a healthy and energetic mind.
Empathy
The company gives importance to empathy because it believes that "the source of innovation is empathy". The company's culture is influenced by the concept that empathy can create an innovative mind.
Collaboration
The company arranges programs and meetings to promote team bonding and to improve team spirit. The company encourages people to work together as a team. Microsoft strongly agrees with the concept " Big dreams only come true through collective efforts.
Diversity and inclusion
The company pays no attention to gender, country or skin colour. Microsoft only focuses on the employees' ability to deliver high quality services.
Customer oriented
The Microsoft company maintains a feedback system that allows customers to narrate their experience using the company's products and services. This way, customers get to be a part of the Microsoft team.
These are the main specialities of Microsoft's work culture. By embracing teamwork and providing employees the respect they deserve , Microsoft became one of the best companies with a great work culture.
NETFLIX’S MARKETING STRATEGY
With the global epidemic, home entertainment is particularly important. Netflix has grown substantially since the 2020 epidemic, adding 16 million subscribers. The development of original content attracts new subscribers through innovation.
INTRODUCTION :-
The closure of cinemas and numerous entertainment facilities during the pandemic shutdown made streaming services popular. Netflix is an American video subscription on-demand streaming platform. The main feature of Netflix is that it allows users to watch content over the internet whenever and wherever they want, which allows them to watch videos without restrictions. Netflix was the preferred streaming platform for US households during the pandemic. Netflix’s success is linked to the innovation of its business model, which was originally a traditional DVD rental sales model and then shifted to a streaming service. Netflix established a profitable model regarding paid subscriptions and in 2007 Netflix delivered one billion DVDs on the digital network and after starting video on demand, Netflix completely changed its business model. This was an important turning point in Netflix’s history. Netflix’s promotional strategy is up to date, making extensive use of social media, posting extensive promotional messages, gaining a waiting audience prior to airing and building an interactive relationship with viewers. In an era of globalisation of streaming, Netflix’s global development is limited by the cultural, historical, political and social conditions of different countries, which sometimes results in Netflix’s content not being accepted, such as the monitoring of content in the Chinese market. There are also some issues with maintaining subscriptions, relying on revenue from subscriptions and the high cost of producing original work. Netflix is the global leader in the streaming industry and has had an influence on not only the streaming industry as an industry leader but even the creation of future movies,TV series and short videos.
ISSUES :-
In terms of distribution, Netflix has a staggering number of productions such as films, TV series, specials or miniseries, and documentaries. Netflix has already distributed 100 seasons of TV series in local languages in 17 countries around the world and also plans to expand its investment in original productions in local languages. Netflix’s international expansion has been congratulated by audiovisual professionals from different countries who believe that Netflix can make good productions widely around the world and expose viewers to a wider range of productions.
CONCLUSION :-
Netflix has become a leading player in the streaming industry. It's growth strategy is worth exploring, starting with the conversion of it's business model from DVD rental to a paid subscription streaming service, using it's large database of users to reference its recommendation algorithms, consolidate users and improve the user experience.
Thank you,
Deeya Snehal
THREADS APP
Threads is a social media platform that quickly gained popularity.
This is a new app built by Instagram team Meta,for sharing text updates and join public conversation.
This app allows uses to post text images videos and Gifs.Text besed social media platform deeply interlinked with IG.
In this blog i presenting that how the popular apps rating become low, ( reasons behind it's low usage ).
The fact that your friends and followers on Instagram can easily follow you over at threat is the primarily reason behind Threads success.
Just few hours after it was launched the App got over 30 million sign up which is mindblowing.
It also offers a solution to users who are not happy with twitter. Though mother app Meta says Threads will remain add free now, with hundred million highly active users onboard, Threads could be a goldmine for advertisers.
The following are the reasons behind its low popularity
Can't delete account data without deleting Instagram account : you can delete individual posters and even deactivate your Threads account entirely, there is no way to delete threads account without also deleting Instagram account.
One can only work if you have and Instagram account : Which means you cannot access it independently
Must be an Instagram user : that was the waste aspect of this app right from the beginning.
Nothing new nothing different from Twitter : some users saying that Twitter is much better than this and stay in Twitter, and it is a copy of Twitter.
There are no DMs and hashtags :One-on-one, private messaging is a hallmark of nearly every other major social media network, including Twitter and Meta's own Instagram and Facebook. In this app no DMs and hashtags
They collects more personal information than Twitter.
By Aswathy KB
Tesla Motors
Elon Musk's remarkable achievements have served as a wellspring of inspiration for countless entrepreneurs and business leaders. His journey to success is marked by a series of formidable challenges, yet Musk consistently navigated these obstacles, leading to triumphant outcomes that aligned with his visionary goals for the companies he founded.
He stands as a prominent entrepreneur ,gaining recognition for his contributions in co-founding enterprises such as SpaceX, Tesla, Neuralink, and The Boring Company. His impact has been transformative, sparking revolutionary shifts in the electric car sector, space exploration, and various other domains of technological progress.
Tesla's EV Strategy & Challenges
The part of Tesla’s mission is “to accelerate the advent of sustainable transport.” To that end, Tesla sells powertrain systems and components to other auto manufacturers. In April 2015, it introduced a line of home batteries, called the Powerwall, that serve as energy storage systems in homes or businesses. They are meant to connect with a solar energy system and can be used as backup power when power is interrupted or peak demand is high. Tesla also sells solar panels and full solar roofing, which is a roof made up of solar panels that still looks like a roof. • Tesla has created its own network of “supercharger stations” where drivers can charge their Tesla vehicles in about 30 minutes for free. The purpose, of course, is to speed up the rate of adoption of electric cars by making it cheaper and easier to keep them running. In 2012, Tesla began building a network of 480-volt fast-charging Supercharger stations. As of November 2020, Tesla operates over 20,000 Superchargers in over 2,100 stations worldwide. The Supercharger is a proprietary direct current (DC) technology that provides up to 250 kilowatts (kW) of power. All Tesla cars except the first generation Roadster come standard with hardware to charge at Superchargers. The navigation software in Tesla cars can recommend the fastest route for long-distance travel, incorporating charging stops. • Tesla generally allows its competitors to license its technology, stating that it wants to help its competitors accelerate the world’s use of sustainable energy. Licensing agreements include provisions whereby the recipient agrees not to file patent suits against Tesla, or to copy its designs directly. Tesla retains control of its other intellectual property, such as trademarks and trade secrets to prevent direct copying of its technology. • Tesla’s nonconventional supply chain management strategy to cut operation costs and successfully deliver a reliable and affordable product rests on a short term goal of product acceptance and a long term strategy for growth and profitability. In 2006, Musk asserted that “The strategy of Tesla is to enter at the high end of the market, where customers are prepared to pay a premium, and then drive down market as fast as possible to higher unit volume and lower prices with each successive model”. • In June 2021, became the first electric car to sell 1 million units globally. Tesla’s global sales were 936,222 cars in 2021, an 87% increase over the previous year, and cumulative sales totaled 2.3 million cars at the end of 2021. In October 2021, Tesla’s market capitalization reached $1 trillion, the sixth company to do so in U.S. history. • Tesla did not invent the electric car or even the luxury electric car. But Tesla did invent a successful business model for bringing compelling electric cars to the market. Part of the strategy was building a network of charging stations to solve one of the greatest obstacles facing the adoption of electric vehicles: refueling on long trips. Tesla’s unique business model, which includes keeping control over sales and service, is one reason its stock has soared since its initial public offering. • Amidst what appears to be an ongoing stalemate between Tesla and India, reports have recently emerged suggesting that the country is willing to consider the EV maker’s request for import tax cuts. That is, at least, if Tesla would be open to purchasing $500 million worth of domestic auto components from India.Despite the challenges that Tesla has faced so far in its attempt to enter India, the EV maker has made some considerable progress over the past year. Over 2021, the company received homologation certificates for seven of its car models, and Supercharger stalls have also been shipped to the country.
A CASE STUDY ON McDonald's CORPORATION
THE WORLD'S LEADING FAST FOOD CHAIN
McDonald's Corporation is an American fast-food organization established in 1940 as a cafe by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a burger stand and later transformed the organization into an establishment; the Golden Arches logo being presented in 1953 at an area in Phoenix, Arizona.
Ray Kroc, a businessperson, joined the organization as an established operator in 1955 and continued to buy the chain from the McDonald's siblings. McDonald's had its base camp in Oak Brook, Illinois, and moved its worldwide base camp to Chicago in mid-2018.
McDonald's is worth $185+ Billion today. It is the world's biggest eatery network by revenue. It was last registered to be serving 69+ million customers each day in more than 120 countries across over 39,000 outlets
Although McDonald's is best known for its burgers, cheeseburgers, and french fries, its menu also includes chicken items, breakfast things, sodas, milkshakes, wraps, and sweets. In light of changing buyer tastes and a negative backfire on account of the wretchedness of its food, the organization has added mixed greens, fish, smoothies, and natural products to its offerings.
HISTORY
The siblings presented the "Speedee Service System" in 1948 by extending the standards of cutting-edge drive-thru eatery that their antecedent White Castle had tried over two decades earlier. McDonald's emerged with a delivery model where it made its food on a supply belt and delivered it within 2 minutes.It looked like a fantastic and impossible eatery that had only burgers, fries, and shakes on the menu
• No plates or waiters to serve the customers
However, when Ray Kroc came, he was astonished by the never-ending waiting lines that were there waiting for their orders from McDonald's.
Seeing the huge demand for McDonald's burgers, fries, and shakes, Kroc sensed a huge opportunity. He soon pushed the founders of the store to embrace a franchise model. The McDonald's brothers who owned the business, were living a comfortable life then, getting rich by the day, and buying Cadillacs as they filled their pockets. They didn't have vision nor they were eager to expand. However, Ray convinced them and rushed to work, as soon as he did that.
With the development of McDonald's into numerous universal markets, the organization has turned into an image of globalization and the American lifestyle. Its unmistakable quality has additionally made it a regular point of open discussions about heftiness, corporate morals, and shopper obligation.
McDonald's-LOGO
The first mascot of McDonald's was a cooking cap over a burger who was alluded to as "Speedee". In 1962, the Golden Arches supplanted Speedee as the all-inclusive mascot. The image of jokester Ronald McDonald was presented in 1965. Ronald McDonald showed up to promote amongst children.
On May 4, 1961, McDonald's initially petitioned for a U.S. trademark on the name "McDonald's" with the portrayal "Drive-In Restaurant Services". By September 13, McDonald's, under the direction of Ray Kroc, petitioned for a trademark on another logo—a covering, twofold curved "M" image.
Before the twofold curves, McDonald's used a solitary curve for the design of its structures. Even though the "Brilliant Arches" logo showed up in different structures, the present form was not utilized until November 18, 1968, when the organization was given a U.S. trademark.
BUSINESS MODEL AND MARKETING STRATEGIES
The business and revenue model of McDonald's includes almost 37000 outlets which spread to more than 120 nations. Today, McDonald's is the biggest eatery network on the planet in terms of income.
Initially launched as a Drive-In Hamburger Bar, the idea was advanced in 1940 by The McDonald Brothers, Richard James (Dick), and Maurice James (Mac) McDonald. It was after the presentation of the Speedee Service System with shakes, fries, and burgers costing as low as 15 pennies that the McDonald Brothers started the establishment of McDonald's Hamburgers.
TARGET & MISSION
McDonald's endeavours hard to be its clients' "most loved spot and approach to eating". McDonald's plan of action is fixated on the ground-breaking strategy "Plan To Win", which is placed into requests around the world.
With the mission of "Quality, Service, Cleanliness, and Value", McDonald's has clung to each of these characteristics. Client experience is improved by the selection of five fundamentals: people, products, place, price, and promotion. McDonald's plans to give high-review nourishment, at effectively reasonable costs to individuals over the globe. The deals at McDonald's are furrowed through an efficient deals channel which guarantees remarkable consumer loyalty on all occasions.
SIGNIFICANT GROWTH STRATEGY
McDonald's has clutched a promising development technique to serve customers and spread its wings. The presentation of the "Speed Growth Plan" in March 2017 enhanced the development of the business.
McDonald's development system depends on retaining, regaining, and converting. McDonald's strives to hold on to its old clients, recapture the lost trust, and convert easygoing clients into ordinary ones.
What's more, it has additionally embraced three quickening agents: digital, food delivery, and experience of things to control its monstrous development. It keeps on reshaping cooperation with clients and raising the level of consumer loyalty and experience through innovation and human endeavours.McDonald's can appropriately be named as one of the best organizations to be involved in the worldwide system. The worldwide broadening of the McDonald's is regularly alluded to as "McDonaldization." Its accomplishment in more than 120 nations can be credited to its hierarchical structure.
The hierarchical structure of McDonald's mulls over expanding localization, and in this way, the entire plan of action of McDonald's is normally redone thinking about the mass intrigue in different nations.
McDonald's FUTURE
The reported objective is to source all visitor bundling from inexhaustible, reused, or ensured sources, reuse visitor bundling in 100% of eateries, and overcome framework challenges by 2025.
McDonald's turned into the principal eatery organization on the planet to set an endorsed Science-Based Target to lessen ozone-depleting substance emanations. It also joined the "We Are Still In Leader's Circle", driving activity to relieve environmental change.
McDonald's USA completed five years as the sole worldwide cafΓ© organization to serve MSC-ensured fish in each U.S. area. It united with Closed Loop Partners to build up a worldwide recyclable and additionally compostable cup arrangement through the NextGen Cup Challenge and Consortium. Official pioneers called for atmosphere activity and offered arrangements at the primary Global Climate Action Summit (GCAS).
McDonald's co-facilitated the "Way to Greenbuild" occasion with Illinois Green Alliance at its new worldwide home office. The structure, a collaboration among Sterling Bay, McDonald's, and Gensler Chicago, got USGBC LEED Platinum accreditation.
CONCLUSION
McDonald's is establishing the tone for other inexpensive food organizations to pursue. Given the present want by numerous buyers to spend cash on organizations that are doing great on the planet, where McDonald's leads, others will pursue.
Article by,
Deeya Snehal
A Study On Tata Group of Companies
Introduction
Tata group is an Indian multinational conglomerate founded by Sir Jamsetji Tata in 1868. It is headquartered in Mumbai and it is India's largest conglomerate with products and services in over 150 countries. This case study deals with the challenges, opportunities and threats that the Tata group is currently facing and the business strategies that have made the Tata group so successful.
Strengths
The major strengths of Tata group are as follows:
1.Brand Reputation
The first key strength of Tata group is the brand itself. This brand is well known. No matter what product we want to buy, the Tata group is there. Tata has products right from the salt which is called Tata Namak to Tata Jaguar which is purchased by an extremely rich class of people. Tata has served everyone.
2. Massive trust
The company has taken more than 150 years to build this much trust in the customers. When we compare them with other business giants, Tatas are seen in a completely different light and if they enter into a new domain the customers will support them because Tata has built massive trust among the customers.
3. Legacy in Indian Market
Tata has created a legacy which reformed the Indian economy. They have done a massive amount of work for the transformation of our nation and have expanded across different industries.
Challenges
The Tata group is facing 3 major challenges. They are as follows:
1. Intense competition
Tata group is facing intense competition from huge market players like Mahindra and Mahindra, Aditya Birla group and Adani group. In the automobile sector they are facing competition from Maruti Suzuki, in the telecommunication service sector they are facing competition from Jio, Bharti Airtel,and Vodafone. Accenture and IBM are their competitors in the IT sector . In the power sector Adani power and Reliance power are their strong competitors. So the Tata group is facing tough competition from the market.
2. Slow growth rate
Tata companies are more industry oriented and infrastructure heavy business. So their growth rate is comparatively slow because of the complexity.
3. High Debt
Majority of Tata group companies have High debts. Companies like Tata motors, Tata chemicals and Tata steel are facing high debt challenges.
Business Strategies
For overcoming these challenges the Tata group is employing 3 step strategies.
Simplifying product lines:
Simplifying product lines has been one of the key goals as stated by the chairman of Tata group. It is the process of reducing the cost and risk by effective product offering.
Forward looking approach:
This strategy includes considering the future developments when making plans especially when using modern methods and techniques.
Creating an Ecosystem:
The group is creating an industry wide ecosystem that connects markets, industries and businesses across the globe, creating new patterns of consumption and new ways of learning.
Conclusion
According to their latest performance, Tata Group is going to outperform all other groups in the coming years.The 150 year old company that has built so much trust in our nation is definitely going to lead from the front.
- ANJU PAULSON
A CASE STUDY ON COCA-COLA COMPANY
The Coca -Cola company, American corporation founded in 1892, is one of the world's famous and largest brands in beverage industry ,which is a global symbol of American tastes. The founder of the company - John Pemberton. With more than 2800 products, available in more than 200 countries, Coca- Cola is the largest beverage manufacturer and distributor in the world and one of the largest corporations in the united states. Headquarters of the company are in Atlanta, Georgia. The world is changing all around Coca- Cola. The companies mission is to refresh the world and make a difference. And their vision is to craft the brands and choice of drinks that people love, it creates a long-term destination for business and their competitive brands like Pepsi, Red bull, Nescafe. There has been a great competition between refreshment drinks in Indian market.
Culture plays an important role in customer behavior, Coca-Cola is mainly associated to the issues related to the brand, reputation and CSR. India is a country where people are keeping towards the culture. Having respect and understanding of another culture and as well as ability to set one's own cultural values. Perhaps the biggest problem faced by multinational organizations is learning how best to market products and treat customers in emerging global markets. It is important to keep good relationship with the government. Ethical issues like water resource exploitation are believed to be hyped by the media and not the general public. The center for science and environment (CSE) , an activist group of engineers, scientists, journalists in India, for unsafe products said to contain pesticide residues found were known to cause diseases such as cancer, birth defects, and severe disruption of the immune system and other health conditions. Because of this CSE and NGO's on Coca- Cola, the brand faced many challenges. Firstly they were the most valuable brand and now their primary problem was trying to rebuilding their image to the public and regaining Indian customers trust. These allegations are not only threatening to Coca- Cola customers, but to the company's reputation as well.
The Plachimada struggle was launched by the Anti Coca- Cola peoples struggle committee on April 2002 with a blockade by over 1300 people, mostly Adivasis, demanding that the coke plant be shut down as it was devastating their source of survival. The company raised political, environmental, ethical, cultural issues in India. The company need to concentrate in many aspects so that they can grab more market share and earn respect from the community members. Company has to adopt alternate branding and promotion strategies to develop it's fan base in India. It is necessary to the company should have a correct view about the management style of particular country. It is not easy for a company to run business smoothly without considering the issues, especially if the company is of foreign origin. The main drawback which is the company is using fresh water in such a large quantity where there is a crisis for fresh drinking water; due to it's waste discharge they have been spoiling the water and soil. Farmers are facing numerous problems with their crops. These problems are indirectly affecting the life of the people staying nearby to the manufacturing plant. The cultural and economic conditions in India is stable and favorable for the company, but the environmental problems are making issues among the public and government. Therefore as suggested, the company should employ an efficient corporate social responsibility team to monitor their operations in the Indian sub- continent and make policies to overcome any such instances and then coca- cola can make a brilliant come back to the market.
AISWARYA K
A CASE STUDY ON FEW INSTANCES OF WORMS IN CADBURY DAIRY MILK
CADBURY is a well known famous brand founded by JOHN CADBURY in 1824.Even after completion of more than 100 years,the brand is into hearts of many people.
The 3 key points to be noted regarding CADBURY includes,
●CADBURY is the topmost among FMCG brands in India.
●It is the world's leader in chocolates.
●It stands tall in food sector.
CADBURY decided to enter Indian markets in 1948 and they started its operation by importing.Now,they are having 5 manufacturing units all over India.
But suddenly in 2003,just a month before DIWALI few instances of worms were reported in its Dairy milk bars in MAHARASHTRA.
Maharashtra Food and Drugs responded to this case and they also seized the stocks of chocolates in their pune plant.Cadbury issued a statement where it mentioned that,problem of worms arose due to poor storage facility by the wholesalers and retailers.FDA denied the statement by saying that,packaging was improper.
Sales went down by 30% and their advertisements went off air. Also there was a lot of negative publicity.
As a part of recovery strategy CADBURY adopted 'PROJECT VISHWAS' which was a public relations campaign and an education initiative program covering 1,90,000 retailers from key states.It includes measures for trade,media and for employees.They educated retailers about having proper storage facilities and also distributed posters and leaflets on the issue to retailers.Also answered any questions asked by the media confidently.They also updated employees regarding decisions taken by them in meeting with seniors.
In January 2003,company launched a new double packaging that was able to wrap even the smallest 13gm chocolate in an aluminum foil,heat sealed for complete protection from all sides.A video with packaging and factory shots for television coverage was also launched.
Then,CADBURY came up with strong ad campaign with AMITABH BACHAN as the brand ambassador.It helped them to back the consumer satisfaction.The expenses went up by 15%.
After that incident CADBURY takes a great care of all their products they have. Their market share is around 35% in India now.It is leading in chocolates sector.
MALAVIKA VJ
Fading Wings: PAN AM's Quiet Descent
Imagine being the founding member of the International Air Transport Association (IATA), enjoying a near monopoly on international routes, the unofficial national carrier of the United States; that was Pan Am. Pan American World Airways founded in 1927 by two U.S Army Majors was the most famous principal and largest international air carrier. They were the unofficial overseas flag carrier of the United States for the most part of the 20th century. Once their slogan was "Live today, Tomorrow will cost more!". They were at the top of their field as the sky is not their limit. But now a few people know the name Pan Am. Now it's just one of the defunct companies that are being diminished from the minds of the public. Only bits and pieces of this "Conglomerate" exists today. The descent is due to a lot of internal and external factors, the Industry.
1. Financial Troubles
All companies experience tightness in their financials. But in this case, they expanded their fleet at a rate no one would imagine. And that made their pockets a little slim. The problem was time they expanded. Many other airlines came in for their own pound of customers and they were ready to sacrifice a little bit of profit for gaining (in this scenario stealing from Pan Am)customers. The expansion of fleets and routes set back a fortune and that put them in a tight spot making them not able to reduce the price. That only strained their financial resources.
2. Rising Debt
They did accomplish a great expansion in fleet and route, but the question is at what cost? They alone couldn't handle such a large change. So they took some financial help from the available sources. Actually can't blame them, if the other emerging airlines haven't been so generous Pan Am could pull through out of that debt. This large debt took their ability to be financially stable like before.
3. Oil Price Shocks
The infamous Oil Crisis in 1970 was a significant turning point in global energy dynamics, influencing policies, economies, and geopolitics for years to come. This shook Pan Am badly because their planes were craving the costly jet fuel. Blaming OAPEC (Organization of Arab Petroleum Exporting Countries) and their response to the political development in the Middle East was making no good. The overly-priced jet fuel made their financials thinner.
4. Terrorist Attacks
There was a terrorist bombing of Pan Am Flight 103 when it was over Lockerbie, Scotland in 1988. Already their financials were a mess and their goodwill was getting out of hand. And now this, being able to be like old times was just a normal daydream. For Pan Am the old saying is true; "When it Rains, it Pours". They wanted to fly but they were in deep water.
5. Deregulation of the Airline Industry
The policy of reduced cost and increased competition was due to the deregulation of the airline industry in the United States in the late 1970s and early 1980s. They were forced to jump from the frying pan into the fire. Crumbling down made them fight back, but they were of no use. While other airlines exploited the freedom, Pan Am was trying to hold what was left of their loyalty.
6. Failure to Adapt
Innovative competitors were taking their chance to adapt and be creative when Pan Am was just in denial. They struggled to adapt to changing market dynamics and customer preferences. They were pretty slow on that matter. Updating their services, implementing new technologies, and fleet modernization were not included in their agenda. It was kind of a loophole to overtake the near monopoly of Pan Am.
7. Sale of Assets
The airline was having a tough time and they couldn't handle the financial pressure and business stress. So they started to sell their valuable assets including their prized routes and the iconic Pan Am building in NewYork city. This desperate act made their value go downhill and revenue-generating capabilities to ashes. Delta Airlines saw the opportunity and acquired all the Pan Am's proud routes and shuttle service in a blink of an eye. They were not realizing they were digging their own graves. MetLife was more than happy in acquiring 'The Pan Am Tower' situated in New York. It kind of steals the public's attention because of its unique layout and center position. Johnson Control bid the most for the PAWS(Pan Am World Services).
8. Bankruptcy and Liquidations
After all this Pan Am doesn't had a snowball's chance in hell to be productive. They tried their best to secure their investments and restructure their operations, but they had to file for bankruptcy in 1991. Gradually their assets were seized and auctioned. Guilford Transportation Industries bought the company's name and imagery in 199. They changed the name to 'Pan Am Systems ' and adopted the globular logo.
All the above reasons such as financial challenges, external shocks, and other deregulation issues gradually made the deathbed of Pan American World Airways, putting an end to the era of the promising and prominent airline.
By
Rolwin Biju C
FALL OF GENERAL MOTORS IN INDIA
GM was founded on September 16,1908. They have outlets in world. After GM came to Indian market and suddenly quit from india due to low innovative technology and sales, poor business plan. GM's Chevrolet entered into India middle class sector easily they couldn't make much customer base, later their new models brands failed to strength in indian market.Innovation is a key factor for a company to complete in a challenging business world. The main reason for company fail in india is because of low innovative plans. The company don't give much importance to customers buying perspective mind. The fail to satisfy the needs of customers with the products they generated. The GM face heavy business challenging of other Company and competite against them without innovative technology. The company in inda don't gave much importance to the risk associated with ideas of other organization business strategy. They fail to apdate in india market. It affect the GM financially very well. They decided to exit from indian market, many employees lost their jobs and sold their plant to others organizations too. The best product sold through best strategy network.Because of all these reasons GM quit from india by the end of 2017. Companies need to understand the requirements of Indian customers and be a good decision makers.
Sreelakshmi R Menon
CafΓ© Coffee Day: Corporate Failure
CAFΓ COFFEE DAY: CORPORATE FAILURE
Cafe coffee Day was a very debt centric company and it started with a depth of 1.5 crore to start its first outlet. It was a very depth oriented form and as of 2019 it had debt of 6547 cross and 1150 crore initial public offer. This firm did bring a very good amount of revenue ,that is rupees 4262 cross revenue as on March 2019 but even with all the revenue ,they only earned the profit of 143 cross and that was not sufficient to fill out the depth that they have taken for operating their business. It was a difficult road,but it when even down hill when the income tax raid happened and it was revealed that around 650 crores of accountant money . It led to the sea siezure of the shares of Cafe Coffee Day. To get over the issue of unmet debts,they also had other another subsidiary company Mindtree,which they try to sell but that idea was blocked by the Icome Tax department as they had not repaid the amount of tax. They even try to sell shares to Larsen and Toubro to fill out there 3200 crore debt but that idea also then go much forward. They also tried selling the other subsidiary that they are that is Tanglin Developments that were involved in selling tech parks , IT parks etc but that too failed .They even reached out to popular brand like coca cola for the sale of the shares but that also didn't work out.
Also to add to the pressure, the CCD auditors said that they had not auditted 40 of the subsidies of CCD. The news spread to the Board of Directors and also the lenders. The lenders now refused to lend money to CCD. The shareholders insisted that the company buyback their shares and give them them amount that the shares were to pay. CCD face a lot of issues to fund for their activities as well as even to liquididate,as liquidation doesn't happen overnight and they were in need for a lot of money. This eventually lead to the suicide of their founder V G Sidhartha. And there after the prices of the shares of CCD when down drastically by 66.5%.
Niranjan
THE FAILURE OF KINGFISHER AIRLINES
Disclaimer: this blog was written for educational purpose, the resource of the data in this blog was online journals.
Kingfisher Airlines was India's one of the most highly profiled Airlines which was owned by biggest liquor tycoon of India. It was established in the year 2003; which is based in Bangalore. The parent company of kingfisher airlines was united breweries group. the air line started its commercial operations in 2005. the owner of kingfisher airlines (KFA) was Vijay Mallya and Sanjay Aggrawall was the CEO.
It was the first Indian airline to have (IFE) Inflight entertainment system on every seat even on domestic flights. The kingfisher airlines have a 360 degree promotion strategies in place. they reach out to its customers through all media of communication such as T.V, radio, newspaper, magazines etc...
kingfisher airlines achieved success by gaining customer satisfaction through offering grate, luxurious, and comfortable flying experience. according to the data shown in Wikipedia kingfisher airlines have a revenue of 25,982.78 crore in 2012 and a net income of 8,765.9 crore in 2012. until December 2011, KFA was holding 2nd largest share in India's domestic air travel market. after this time period it started to face extremal financial crisis. according to the annual report of KFA 2011-12 ; it shows reasonable doubts over the companies existence. it shows a loss around 690 crore were accumulated by the company. in order to keep the loss making business functioning, Vijay Mallya resorted to continuously borrowing money from banks. by 2012 KFA was declared as a NPA by SBI. At this point it even had failed to pay its employees which led to its pilots leaving it for better opportunities.
one of the important cause of the failure was the improper management; including poor financial planning, lack of focus on core operations. Vijay Mallya focused on luxuriousness rather than economic class. at that time KFA merged with air decan and started Kingfisher red. it was a business strategic plan but it caused confusion in customers mind and it degraded the brand status and company lost it premium value. another scandal on the company kingfisher airlines was it held the service tax of passengers, PF, income tax of employees, but did not submitted to the PF or IT authorities.
after happening of all this events the company was bankrupted and (DGCA) Directorate General of Civil Aviation suspended the flying license of kingfisher airlines and ceased its operations on 20 th October 2012.
Despite the failure of king fisher of KFA , mallya remained as wealthy man. in 2016 a consortium of Indian banks declared mallya as a willful defaulter, alleging that he had diverted funds from kingfisher airlines to other companies in the UK.
The failure of Tata Docomo
Why did TATA Docomo fail?
Tata Docomo was a joint venture between Tata teleservices and a Japanese telecom company called NTT Docomo. Tata Docomo came into existence in 2008 and it has 2G and 3G services in India. The company provided several services for its customers and has received many business awards for its telecom services. But some serious factors affected its performance and led to the failure of Tata Docomo. In this study, the various reasons for the failure of the company are discussed.
Reasons for the failure of Tata Docomo
1.Competition from other telecom market players
Tata Docomo faced intense competition from other telecom providers like Vodafone and Airtel, who had better infrastructure and more attractive services. It was difficult for the company to retain its customers and it failed to attract new customers.
2.Poor financial performance
The company failed to meet its standards and incurred huge losses. The competitors' low price offerings also reduced the margins for Tata Docomo.
3.Issues with partnership
Because of the low market share and revenue, NTT decided to exit from the venture and it significantly affected the business.
4.Lack of technological innovations
The company failed to upgrade itself from 3G to 4G and it also failed to upgrade its network coverage. So the customers switched to other service providers who provided more attractive offers and network coverage. So, the inability to adapt itself to the changing technologies caused customer dissatisfaction.
5.Cancellation of license
Three licenses of Tata teleservices were canceled by the supreme court and the court fined Tata teleservices for benefiting from the 2G telecom spectrum scam.
These are the main reasons for the failure of Tata Docomo.
Now all the Tata Docomo customers are merged with Airtel network, and the company has been taken over by Bharti Airtel.
- ANJU PAULSON
Cracking the Case: The Shocking Failures That Led to Yahoo's Ultimate Demise
"Faliure is only the end if you decide to stop"
Jerry Yang and David Filo Established " Yahoo " in January 1994. As most of you are aware, Yahoo was once a powerful online Titan. How such a large internet company struggled to stay up with rivals in the technological sector and suffered a sharp downturn in the early 2000s is still a mystery. Below are a few crucial elements that contibuted to Yahoo experiencing a corporate failure.
1. The corporation was dealing with a number of internal problems and a frequently shifting top management . which opened the door for lack of concentration and inferior tatics.
2. Yahoo failed to develop and iprove their services since their technologies were outdated and inefficient.
3. Yahoo was unable to recognize global trends like Social networking an other mobile technology.
4. Due to frequent data breaches, customers began to lose faith in Yahoo.
5. When Google an Miscrosoft entered the market, there was intense competition for Yahoo, which forced it to compete for customers and advertisers.
Verizon Communications purchased Yahoo's primary internet divison in 2016 for a very small fraction of what it was actually worth. this signaled yahoo's collapse and exposed it as a corporate failure.
Thankyou
- Ujwal Unnikrishnan
PLIGHT OF E PHARMACIES IN INDIA
E Pharmacy sector have proliferated steadily in last few years, attracting significant attention and investments. During the pandemic period, E Pharmacies pegged at around $ 2.7 billion in 2021. The outbreak of Covid-19 elevated the performance of online pharmacy websites. The Indian online pharmacy sector was projected to grow at 63 percent annually from 2020 to 2025. Private equity and venture capitalists had invested more than $ 2.5 billion in online pharmacies.
But contrary to the expectations, the consolidated losses of E pharmacies grew further and further. PharmEasy, the leader in this sector faced a loss of 4043.1 crores in FY22. It also withdrew its initial public offer draft papers in August 2022 almost an year after filing it.
REASONS FOR POOR PERFORMANCE OF E PHARMACIES
1)REGULATORY CHALLENGES:-
Most of the E Pharmacies in India were operating without licenses. They engaged in immeasurable unethical practices like selling medicines without doctor's prescription and selling of fake medicines. The drug abuse cases also shoot up during the span of last 5 years. Upon this allegations, Government of India strengthened the surveillance on online pharmacies.
> E Pharmacies are required compulsorily to take license to operate from Central Drugs Standard Control Organisation. (CDSCO)
>Online Pharmacies have to maintain detailed records of all transactions associated with purchase and sale of medicines.
>In september 2018, Delhi high court banned the sale of medicines via online. But later, this ban was revoked in December that year.
>In December 2019, Madras high court also imposed an interim ban upon online Pharmacies.
>In February this year, Drugs Controller General of India issued show cause notice to 20 E Pharmacy platforms for alleged contravention of laws.
2)INCREASED COMPETITION :-
As the sector was enjoying huge amount of profits along with a mountain of predicted profit, corporate giants like Reliance group and Tata group smelled the growth opportunity and entered into competition. While Reliance acquired major stakes in Netmeds, Tata invested their capital in 1mg. E commerce giants like Amazon and flipkart have their own pharmacy sections.
Howe'er, these arrivals had a negative impact on the profits of E pharmacy leaders during the period.
3)Retail Rivalry :-
The All India organisation of chemists and Druggists purported that E Pharmacies were burning capital to kill competition. As the margin given to offline stores by the National Pharmaceutical Authority is 10% for wholesalers and 20% to relailers, they are unable to compete with 25 % to 40% discounts offered by E Pharmacies. Because of this, there are huge amount of rivalry among the traditional traders of medicines all over the country. This is having a negative influence upon E Pharmacy sector.
CONCLUSION
Corporate governance is the system of rules, practices and processes by which a company is directed and controlled. Accountability, transparency, fairness and responsibility are the four pillars of corporate social responsibility. By abiding corporate governance norms and conditions, E pharmacy sector in India can grow bigger and stronger in the future.
According to Vijay Chawla- CEO of KPMG,
"The industry is growing nicely and eventually it will become profitable. E Pharmacies in India will see a Compounded growth of 20-30% over the next several years "
Let's hope for a highly profitable and socially responsible E pharmacies in India.
Article by
Stalwin Joju
FAILURE OF NOKIA
Nokia was the world's largest vendor of mobile phones from 1998 to 2012.Nokia Corporation was established in 1865 with its headquarters in Espoo and Finland.It was one of the most dominant mobile phones in the world.The company launched first internet-enabled phone in 1998.
But,Nokia failed due to some of their poor decisions.There are internal and external factors that resulted in the failure of the company.The company struggled to cope up with the innovation,and this resulted in decline of its market share.
Poor marketing strategies was one of the reasons that led to their failure.Nokia decide to launch new products with different brand names that confused their customers.Nokia didn't adopt umbrella branding,which was adopted by Apple and Samsung.
Another reason was the deal with Microsoft.Microsoft acquired Nokia,the biggest blunder that wasn't fruitful.This partnership made Nokia dependent on Microsoft.
Lack of innovation in products significantly contributed to the brand failure.While brands like Apple and Samsung came up with advanced phones,Nokia launches phones with basic features.These dull features didn't help.Nokia didn't adopt the latest technologies.
There was a change in top management.In 2006, Jorma Ollila was replaced by Olli-Pekka Kallasvuo as CEO.The new management focused more on traditional phones rather than coping up with latest changes in technology.
The company also overestimated its brand value.They believed that people will purchase Nokia manufactured phones,if they used just better software.This was a wrong belief.
Nokia was a most recognized brand till 2007.But the things began to change with the entry of Apple and Google in 2007.Nokia's failure is the best example that tells us, even the most recognized brand may fail when they don't cope up with changing environment and watch their competitors.
Malavika VJ
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