Business Studies, asked by prytiprajapati, 6 months ago

production very cheap and ready for exports in Europe and USA
the latest technology and sophisticated computer hardware with cheap Indian labour would make the
Thus, Gulf was a unanimous choice as it was closer home making controlling operations easier.
In view of the above, the company set up an Import House in partnership with a Saudi based
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This move was also accepted because this would give the company the MNC status. Earning foreign
exchange through this plant would also benefit the country.
import house, the idea was to import peripherals from the overseas markets and using cheap Indian
labour to assemble the computers and export them
to the lucrative European and American markets.
A.
Diversification into unrelated areas: "Especially in the growing computer and peripheral
market abroad. This helped spread risk on account of business fluctuations and take advantage
of the growth in the industry in which CWBM dealt
B.
Takeovers/Mergers: The company pursued an ambitious plan of takeover and merger by
taking over certain sick or potentially sick units and turning them around and merging with
good performers. This increased and expanded the sales of the company with bare minimum
investment.
C.
Growth in areas of core strength: Using the existing and expanding distribution network
established to market wrist watches, pocket and desk calculators etc. company could use
the same to sell its telecom computer related products in the future. Further importing peripherals
from abroad and assembling in India to export abroad increased the business of the company
manifold.
Beside the above, the CWBM drastically cut down its stocks and kept the bare minimum, thus
releasing the precious money and used it for working capital. This made the company enjoy liquidity
status and meet up all its recurring expenses.
All the above measures helped the company cope with and compete successfully with the giant
merchandisers or discounters. By the end of 1995, the company was an entity to reckon with in the
wrist watch, calculators, telecom and computer products segment.
The MHA Failure Story
MHA did not bother much with entry of big merchandisers. The management of MHA did not
perceive any threat from merchandisers even when profits were falling, anticipating the trend to
reverse. The management was very upbeat about the reputation they enjoyed in the North Indian
market and hoped to maintain their growth rate without even considering the changes that were
marking the business environment.
The emphasis of the MHA was on procuring more and more appliances in different varieties and
increasing quantities. This added up the cost of maintaining such huge inventory and the overheads.
Besides, the MHA management did not pursue any major overhaul to cut down on rising costs, but
rather recruited a giant sales force of one hundred people to take care of selling the rising inventory
levels. The conservative management retained the old employees who had even crossed the retirement
age and their sons and daughters were given employment in the company.
Throughout the 80s, the management continued with its traditional management and service
policies. While most household appliance, companies had begun to examine their merchandise
assortment to help in controlling inventory, MHA continued to offer some 75 different appliance to its
retailers-double that of its competitors. please resfer my next question..​

Answers

Answered by shobhabidlan01
1

Answer:

An often remarked upon feature of India’s growth is the premature diversification of aggregate production in favour of services at a relatively low level of per capita income. But the fact that services account for more than half of the country’s GDP and around 60 per cent of the increment in GDP is not seen as a cause for concern. Rather, the still small share of manufacturing and large share of services, is often presented as evidence of India’s pursuit of an alternative development strategy attuned to contemporary times where services dominate the economy.

One reason for this complacence is India’s indisputable success as a software services exporter. But what is missed in this assessment is that despite the objective of becoming self-reliant in small and micro-computers set by the Homi Bhabha Committee in 1963, India’s performance as a hardware producer has been dismal. The result has been lopsided growth in software accompanied by stagnation in hardware.

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