Sara Lee, which wants to focus on its core food and coffee operations, is in the process of selling off all other businesses.
Questions for discussion Question 1: Due to the cost plus agreement, Godrej had little incentive to cut costs. This expertise was useful in a country like Indiawhere beef tallow could not be used and soap manufacturers had to depend on vegetable oil such as palm oil and rice bran oil.
The inability of the partners in bridging the gap should be taken into consideration Conclusion: The production cost of Godrej increased this is one of the reason that tend the companies to end up the venture.
For about a year, it looked as though things were going fine.
Excess manufacturing capacity due to manufacturing contracting. A senior Godrej executive, H. Resolve all the differences right at the start.
These include the shaving products of Gillette. Godrej gave the following explanations for the breakup of the joint venture. A Mahendran, the managing director of the two main consumer companies in the Godrej fold, said negotiations had not been concluded.
Joint venturing Joining with foreign companies to produce or market products or services.
Following Why did Richard not able to jell with local conditions? Related Theory Entry Modes: Godrej, on the other hand, was struggling with unutilised capacity. The Godrej Group will continue to distribute the brand in the country till Septemberby which time the transfer is expected to be completed.
A report in a leading Indian magazine  aptly summed up the situation: In short, it looked as though the joint venture had created a win-win situation, with tremendous learning opportunities, for both partners.
Not only that, his meetings would be continuously interrupted by phone calls and unannounced visitors as well as by clerks bringing in stacks of letters and documents to be signed.
Richard found these government meetings frustrating. Gains of Godrej Freedom to focus on core competence Ability to keep financial commitments low Allocation of resources to value added activities. It would enable both the companies to pursue the business opportunities thrown open by liberalization.
Problems faced by Godrej was enormous: Adi Godrej remarked : It is not known to have initiated any move to buy out the marketing rights for Brylcreem in India from Godrej. Lack in the penetration of growing rural market. Exporting Entering a foreign market by selling goods produced in the home country.
Gains of Godrej Access to managerial competence Advanced manufacturing technology Exposure to competitive practices Question 2: Informed sources felt that Godrej was charging Rs 10, more per tonne than the accepted processing costs. Conclusion Strategic alliances have the potential to yield tremendous benefits for the partners involved.
The sales tonnage created a serious problem to Godrej. Godrej also had expertise in vegetable oil technology for making soaps.
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Verified Listings Real Photos Price Details & much more. InP&G USA enters into a Joint Venture With Godrej Soaps in India & was named Procter & Gamble Godrej(PGG) to leverage Godrej’s scale & distribution in the Soaps category in India, however the JV for strategic business reason was dissolved in The P&G-Godrej Alliance Presentation by Team 11 Summary of the case: Summary of the case Procter&Gamble, the $34 billion multinational entered into the Indian market with Ariel Brand through the alliance with Godrej.
Make stock comparison and analysis on P&G Hygiene ( | PGHH~EQ) with GODREJ INDUSTRIES ( | GODREJIND~EQ) online at Equitymaster. The soap brands of Godrej which had been licensed to P&G would revert to Godrej soaps. P&G would retain the detergent and scourer brands it had brought from Godrej.
Godrej gave the following explanations for the breakup of the joint venture. Vikhroli paying guest room in 2,3 bhk flat near The Trees Godrej one Piraojshanagar|Vikhroli pg room east,west. Sharing & independent pg room near Godrej one,Godrej origins The Trees Vikhroli furnished paying guest rooms in 2,3 bedroom apartment on lbs road near Godrej & boyce manufacturing company Furnished rooms for working executives in Vikhroli near Godrej Cap Gemini Accenture WNS TCS /5().Download