The LML-Piaggio Break-Up|Business Strategy|Case Study|Case Studies

The LML-Piaggio Break-Up

            
 
Case Studies in Business, Management Cases | Case Study

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTR006
Case Length : 7 Pages
Period : 1998-1999
Organization : LML, Piaggio
Pub Date : 2002
Teaching Note : Available
Countries : India
Industry : Automobile & Automotive

To download The LML-Piaggio Break-Up case study (Case Code: BSTR006) click on the button below, and select the case from the list of available cases:

Business Ethics Case Studies | Case Study in Management, Operations, Strategies, Business Ethics, Case Studies

Price:

For delivery in electronic format: Rs. 200;
For delivery through courier (within India): Rs. 200 + Shipping & Handling Charges extra

Business Strategy Case Studies
Business Strategy Short Case Studies
View Detailed Pricing Info
How To Order This Case
Business Case Studies
Area Specific Case Studies
Industry Wise Case Studies
Company Wise Case Studies

Custom Search



Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



Chat with us

Strategic Management Formulation, Implementation, & Control, 12e

Please leave your feedback

Leave Your Feedback

ICMR India ICMR India ICMR India ICMR India RSS Feed

<< Previous

EXCERPTS Contd...

The Breakup

Analysts felt that Singhania's initial move of filing a petition for buying Piaggio's stake in LML was a bolt from the blue.

The company had gained market share and its profits were also improving steadily. Also, in 1997, two months before the death of Giovanni, the partners had announced their decision to enter the motorcycle segment. Moreover, the fact that LML's stylish scooters were more stylish when compared to Bajaj's stodgy models, was attributed to LML's partnership with Piaggio. Above all, as Piaggio was also LML's technology partner, the fight could put on hold Singhania's plans of launching the Gilera range of motorcycles through LML. However, Singhania felt that Piaggio's contribution had become insignificant. He said, "Piaggio has become redundant to the joint venture...

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

The Settlement

On November 15, 1999, LML and the Piaggio group resolved their long-pending disputes and differences in an out-of-court settlement agreement.

As per the agreement, LML had to purchase the entire 23.6% stake in the company at the rate of Rs.14.06 per share. Some of the other terms of the agreement are shown in the box.

The JVA of LML with Piaggio will be terminated. The exclusivity rights of LML will also terminate.

LML shall retain non-exclusive rights to use all Piaggio technology received for all vehicles other than Piaggio motorcycle.

Piaggio would become free to set up any business in India, including competing business except manufacture of motorized two-wheelers powered with lateral engine till December 31, 2007...

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies


Custom Search





Economics for Managers Textbook
Textbooks Collection

Economics for Managers Workbook
ICMR books Collection

Case Studies in Business Strategy Volume VI

Case Studies in Business Strategy
e-Book on Business Strategy

Case Study Volumes Collection

 

Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Workbooks, Case Study Volumes.