Mahindra-Mahindra.pdf - S w MAHINDRA MAHINDRA IN SOUTH...

This preview shows page 1 - 2 out of 17 pages.

S w 9B11M106 MAHINDRA & MAHINDRA IN SOUTH AFRICA R Chandrasekhar wrote this case under the supervision of Professor Jean-Louis Schaan solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail [email protected] Copyright © 2011, Richard Ivey School of Business Foundation Version: 2012-03-15 In May 2011, Pravin Shah, chief executive, International Operations (Automotive and Farm Equipment Sectors) at Mahindra & Mahindra Ltd. (M&M), a leading multinational automotive manufacturer headquartered in Mumbai, India, was weighing his options on the company’s growth strategy in the South African market. Shah’s dilemma was four-fold. Since 2005, Mahindra & Mahindra South Africa (Proprietary) Ltd. (M&M (SA)), the company’s fully owned subsidiary based in Pretoria, South Africa, had grown the market by importing completely built units (CBUs) from its Indian operations. Shah needed to decide whether M&M (SA) should move to the next logical step of an agreement with a local vendor to use the latter’s surplus facility for contract assembly of M&M vehicles. Or, M&M (SA) could skip that step altogether and invest in its own manufacturing facility. Alternatively, Shah could wait and watch until the subsidiary logged a critical mass of vehicle sales volumes that would be sustainable in the long term. The fourth option would be to grow the current business model of importing CBUs from India by using South Africa as the hub from which to sell them to other countries in the African continent and, thereby, expand the export market. Said Shah: Each option involves tradeoffs. They have to be evaluated in light of M&M (SA)’s long- term view of the South African automotive market, which, in some ways, is unlike other international markets where we are present. South Africa is clearly a growth market. It is also competitive and fragmented. The basic question is: what is the fit that we want in it? There are issues about how we can build on the competencies we have developed during the last six years and the skills we need to develop, going forward, locally. The larger consideration for whatever call we take in South Africa is the globalization strategy of M&M, which defines the boundary.
Image of page 1

Subscribe to view the full document.

Image of page 2
  • Fall '17
  • M&M

{[ snackBarMessage ]}

Get FREE access by uploading your study materials

Upload your study materials now and get free access to over 25 million documents.

Upload now for FREE access Or pay now for instant access
Christopher Reinemann
"Before using Course Hero my grade was at 78%. By the end of the semester my grade was at 90%. I could not have done it without all the class material I found."
— Christopher R., University of Rhode Island '15, Course Hero Intern

Ask a question for free

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern