Teething Troubles at Pioneer Electronics Ltd.*

            


Details


Case Code : CLBS039
Publication date : 2004
Subject : Business Strategy
Industry : White Goods
Length : 03 Pages
Price : Rs. 50

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Key words:

Consumer electronics, initial capital investment, fund lock, economies of scale, supplier relationship, diversification


* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 


Abstract:
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The caselet looks into the changes carried out by Mallesh Sen Gupta (Mallesh), a second generation entrepreneur, at Pioneer Electronics Ltd. The organization founded by his father was undergoing a period of trouble and Mallesh brought in some new thinking to the organization. As part of a restructuring exercise, Mallesh conceptualizes backward and forward integration, alliances, cost-cutting exercises, after sales service etc.

Issues:

  The changes that happen in the management style and governance when a second generation entrepreneur takes control from a first generation entrepreneur.
  Role played by alliances in the supply chain of the company.
  Effectiveness of organizational changes.

Introduction

By 2003, with revenues of around Rs. 160 crores, Pioneer Electronics Ltd. had established itself as a leading local manufacturer of consumer electronics and electrical goods in India.


The company used to supply certain parts of TV, refrigerator and air-conditioners to various players in the industry apart from selling finished products directly in the market....

Questions for Discussion:

1. Mallesh Sen Gupta has given lot of importance to procurement division, control systems and organizational structure and further spent huge amount on training sales force. Identify the above activities in the context of value chain and how these activities help Pioneer Electronics Ltd. deliver value to the customers?

2. Pioneer Electronics Ltd. entered into tie-ups with different companies with regard to supply of product designs. What are the advantages for Pioneer Electronics Ltd. in having long-term agreement with different companies with regard to supply of product designs? Explain in detail.