Reference no: EM131271366 , Length:
CASE STUDY:
ACC - A pioneer in the Indian cement industry
Associated Cement Companies Ltd. (ACC) came into existence in 1936, after the merger of 10 companies belonging to four important business groups: Tatas, Khataus, Killick Nixon, and F E Dinshaw. The Tata group was associated with ACC since its inception. It sold 14.45% of its share to Gujrat Ambuja cements Ltd between 1999 and 2000. After this strategic alliance, Gujrat Ambuja Cements Ltd became the largest single stakeholder in ACC. In 2005, ACC entered into a strategic relationship with the Holcim group of Switzerland, a world leader in cement as well as a large supplier of concrete, aggregates, and certain construction related services. These global strategic alliances have strengthened the company.
ACC is India's foremost manufacturer of cement and concrete. The company has a wide range of operations with 14 modern cement factories, more than 30 ready mix concrete plants, 20 sales offices, and seven zonal offices. ACC's research and development facility has a unique track record of innovative research, product development, and specialized consultancy services. ACC's brand name is synonymous with cement and it enjoys a high level of equity in the Indian market.
The Impact of Cartelization
Cartelization is one of the major problems in the cement industry. Cartelization takes place when dominant players of the industry join together to control prices and limit competition. In the Indian market, manufacturers have been known to enter into agreements to artificially limit the supply of cement so that the price remains high. When markets are not sufficiently regulated, large companies may be tempted to collude instead of competing with each other. For example, in May 2006, the competition Council of Romania imposed a combined fine of 27 million Euros on France's Lafarge, Switzerland's Holcim, and Germany's Carpatcement for being involved in the cement cartel in the Romanian market. These three companies share 98% of Romanian cement capacity. The government shouls appropriate actions to check acts of cartelization.
Escalating input and fuel costs have forced manufacturers to tap new sources of supply and increase the quest for alternative fuels and raw materials. The cement industry is faced with the challenge of optimizing the utilization of scare basic raw materials and fossil fuels while simultaneously protecting the environment and maintaining emission levels within acceptable limits. It is vital for the cement industry to achieve high levels of energy utilization efficiencies and to sustain them continuously. Table below exhibits sales turnover and advertisement expenses of ACC from 1995 to 2007.
|
Year
|
Sales
(in million rupees)
|
Advertisement
(in million rupees)
|
|
1995
|
20,427
|
58
|
|
1996
|
23,294
|
72
|
|
1997
|
24,510
|
122
|
|
1998
|
23,731
|
61
|
|
1999
|
25,858
|
144
|
|
2000
|
26,792
|
132
|
|
2001
|
29,361
|
172
|
|
2002
|
32,260
|
184
|
|
2003
|
33,718
|
259
|
|
2004
|
39,003
|
334
|
|
2005
|
45,498
|
321
|
|
2006
|
37,235
|
336
|
|
2007
|
64,680
|
442
|
Develop an appropriate regression model to predict sales from advertisement.
Calculate the coefficient of correlation and state its interpretation.
Predict the sales when advertisement is Rs. 500 million.
|
The insight aspect of the idic model includes
: The “insight” aspect of the IDIC model includes: The customer-centric company would gather customer information by:
|
|
Discuss the key media characteristics for sort of context
: There are a number of practical issues when considering how to put a crisis management campaign into practice. Discuss these in relation to the context.
|
|
Identify the points p q and r on your diagram
: Draw the zero-sequence network for the one-line diagram shown in Figure P12.10. Neglect transmission-line reactances, but show transformer leakage reactances and generator sequence impedances. Identify the points P, Q, and R on your diagram.
|
|
Comment on idea of scenario planning and crisis avoidance
: Comment on the idea of scenario planning and crisis avoidance as an investment not a cost in relation to brand maintenance.
|
|
Develop an appropriate regression model
: Develop an appropriate regression model to predict sales from advertisement - Calculate the coefficient of correlation and state its interpretation and Predict the sales when advertisement is Rs. 500 million.
|
|
Some potential ways the organizational cultures interact
: Based on their home country, how might the organizational cultures of the four companies mentioned be distinct from one another, and in what ways could they be the same? If the first two companies and the last two companies want to form joint venture..
|
|
What is your plan as a future educator to foster
: What is your plan as a future educator to foster and develop these relationships? How can you shine the light of Christ (regardless of school setting) to those you interact with on a daily basis?
|
|
Write a cover letter to the job you are applying
: Write a 1-Page max Cover Letter to the job you are applying to. This is one of the most important aspects of an application, because it gives the company reasoning to why you are applying to the job and why you think you are fit for this position;..
|
|
Domestic and international markets
: How does international trade affect the prices in the domestic market and decisions related to firms to compete in both domestic and international markets? Do you oppose trade restrictions? Who have been the winners and losers as a result of the N..
|