Managerial Economics - Case Studies Essay

3470 Words Aug 9th, 2013 14 Pages
CASE – 1 Dabur India Limited: Growing Big and Global

Questions

1. What is the objective of Dabur? Is it profit maximisation or growth maximisation? Discuss.

Answer : The objective is to “significantly accelerate profitable growth by providing comfort to others”. It is growth maximization because for achieving this objective Dabur aims to: • Focus on growing core brands across categories, reaching out to new geographies, within and outside India, and improve operational efficiencies by leveraging technology. • Be the preferred company to meet the health and personal grooming needs of target consumers with safe, efficacious, natural solutions by synthesising deep knowledge of ayurveda and herbs with modern science. •
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India became the country of choice, pioneering the offshore delivery model, revolutionising |
|service delivery. The Y2K phenomenon further accelerated growth. This was the opportunistic growth phase topped by the Internet boom. Capital |
|poured into Silicon Valley and analysts predicted the start of a new era of point and click, predicting the death of the bricks and mortar |
|business model. The boom ended with the Nasdaq collapse in 2002 but by then Indian IT had grown in scale and sophistication with some great |
|companies. They were experts in delivering projects on time and within budget. The market grew rapidly and Indian IT grew much faster. |
|The second phase of growth started with focus on Main Street after the bust, tackling the challenges of technology complexity. Indian IT became |
|leaders in quality, dominating the application development and maintenance space (ADM). Starting as bottom feeders, tackling small projects in |
|the early 1990s, they now started handling projects in the million dollar range and reduced the complexity of software maintenance, which existed|
|across many generations of technology, from the mainframe to distributed computing , to the web. They added services like testing, infrastructure|
|management services, enterprise application etc to their services

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