Proceedings of Case Study Synopses (DBA Case Study Symposium-2017)
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Item Developing a Market Leader Brand in Cable Market of Sri Lanka.(Proceedings of Case Study Synopses ,DBA Case Study Symposium-2017, University of Kelaniya, Sri Lanka., 2017) Munasinghe, M.A.L.A.Main competitor acquired by the market leader brand and acquired Company developed better than the acquiring company in cable market Sri Lanka. Both companies catered to the same market segments adopting different marketing strategies whilst People development and motivation delivered exceptionally well results for the acquired company. Presently both brands are house hold brands in the minds of consumers and are delivering customer expectations. Further Electrical consultants, Electrical engineers and Electricians are equally recommending both brands for their customers and institutions. In 1999, ACL Cables was the market leader in the Cable industry in Sri Lanka and the main competitor was Kelani Cables. Both companies were public quoted companies and they supplied 70% of cable requirements in the country. When going through the total share capital of Kelani Cables, 67% of shares were owned by pacific Dunlop Cable Group (PDGC) of companies in Australia,08% shares were owned by DFCC Bank and 25% of shares have been traded among the share Holders in Sri Lanka. Pacific Dunlop Cable Group decided to discontinue the operation in Sri Lanka and based on the agreement between DFCC and PDGC, 67% shares were acquired by DFCC Bank which was owned by PDGC. The share capital of DFCC bank went up to 75%. DFCC Bank wanted to sell out total shares and they got two offers, one from ACL cables and another offer from Hatton national Bank jointly with the management of Kelani Cables. After evaluating all the avenues and considering the future of Kelani Cables, finally DFCC decided to sell the total shares to ACL cables. With this decision, the market leader acquired its main competitor in the cable industry in Sri Lanka. DFCC Bank may have considered the future of Kelani Cables as they had 300 workers and the strength of the acquiring company before they took the decision. When acquiring Kelani Cables, turnover ratio was ACL: Kelani, 79%:21% after seventeen years of acquisition the turnover ratio became ACL: Kelani, 50%:50%.It is an important point to learn how the acquired company reached this level and what strategies and new methods were adopted by Kelani Cables to come to this junction. Chairman Mr Upali Madanayake, Deputy Chairman Mr Suren Madanayake and board of Directors gave a high degree of autonomy to run Kelani Cables independently to get the maximum benefit to the group. This was considered as the most important strategic decision taken at the initial stage for visualizing the future of both companies. Today two strong brands are competing with each other for individual market shares and finally benefitting the group. The other important area was to keep strategic interdependence at a low level and they wanted to operate Kelani Cables independently. Both companies operated based on their own strategies. Mr Suren was well aware of cultural incompatibilities of both companies and he wanted to grow both companies their own way by adopting modern technology. Preservation approach was continued from acquisition to date as Kelani cables operated with a high degree of autonomy and independence. ACL Cables and Kelani Cables had same product portfolio and they catered to the same market segments. Most important and difficult part was to manage two organizations without having conflicts with each other. Mr Suren always set guide lines for both marketing operations and everything did with the intention of growing both the companies. From 1999 to 2003 Mr Suren managed the company as Managing director of Kelani cables and with his busy schedule he couldn’t spend much time and finally Chairman, Mr Suren and board of directors decided to appoint Mr Hemantha Perera as the Managing Director (MD) of Kelani Cables. He managed the company from 2003 to 2010 and during the period many initiatives were taken place for the growth potential of the organization. This was a leadership turnaround of the company. First thing he did was, brought the vision of the organization as “Market Leader in the Cable Industry” and subsequently changed the logo with strategic meaning and with blue and green colors. Even today this is depicted as one of the best logos in Sri Lanka. MD realized that with the union he cannot bring the company to the next level and step by step discontinued the union with so much of difficulties. Parallel a joint consultative committee (JCC) was formed and all workers problems were handled through JCC by giving immediate solutions for their day today problems .Un unionized environment immensely contributed to implement new systems and new things. New HR system introduced to the organization and new employee evaluation system introduced to measure annual performances beneficial way to the workers and to the company. Non-performers were weed out and right people placed to the right positions. Finally performance based increments were implemented at all levels of the organization. Discipline environment created everywhere in the organization, stern disciplinary actions were taken against the people who deviated from set rules. At the same time a considerable amount of money was spent for training and development of people and all company promotions were given based on the performances. This is the set of human resource turnaround took place in Kelani Cables in uplifting its corporate journey. Brand differentiation strategy was started and Kelani brand was differentiated as the safest brand in the category and effective marketing campaigns carried out in his period. The positioning of Kelani brand continue to be associated with safety at all times. Kelani brand visibility has been increased dramatically in the market and this has no doubt helped to increase consumer and dealer loyalty. New product development mechanism was brought to the system and many new products developed and marketed successfully. Service levels improved dramatically and continuous customer feed backs monitored to ensure Kelani service levels. A technical services department was created and free technical services made available for local and international customers on cable selection. Meanwhile, company identified that electrician plays a major role in influencing on cable brand selection and an electricians club was started with the objective of building up relationship between company and the Electricians .Presently more than 7000 electricians are benefited in various ways. In 2007 a “Kelani Saviya” CSR project was started with the assistance of the University of Peradeniya and 50 Electricians are accommodated annually by the University for a one year Program. This program continued for 10 years and extended for another five years by Present Director/CEO and the same program has been started at the University of Jaffna naming “Kelani Shakthi” by his direction. This is one of the remarkable initiatives took place for branding perspective. In 2010, Mr Mahinda Saranapala was appointed as chief executive officer (CEO) of Kelani Cables and he maintained the same growth momentum with the team .He contributed a lot for implementing and maintaining 5S concept in the organization. He came with an engineering background and contributed a lot to development of the operation area. Many productivity improvements were done in many areas in the organization. He maintained the same discipline level what Mr Hemantha Perera initiated and practiced. Presently he serves in the capacity of Director/CEO of Kelani Cables. In brief, those initiatives strengthened the value chain of the company to deliver premium brand value proposition via differentiation. Likewise, the event of ACL acquires Kelani Cables was not just a matter of acquisition but left a proven corporate lesson. Conclusively, this is one of the greatest success acquisitions in Sri Lanka. It is important for management students to learn how competitive advantage is created as a group to develop successful growth strategies through acquisitions. Out of different types of integrations, this can be treated as an example for “preservation approach” where high degree of autonomy and low level of interdependence. The overall content of its case story provides insights to navigate in finding answers on how transformational leadership practiced in an organization and how people motivation delivered exceptionally well results whilst it invites leaners to explore how acquired company grown better than the acquiring company during the last 17 year period.Item Evolvement of a Strategic Journey: A journey of a poultry company toward a vision of a food conglomerate.(Proceedings of Case Study Synopses ,DBA Case Study Symposium-2017, University of Kelaniya, Sri Lanka., 2017) Rifkhan, A.H.R.M.A’saffa Food SAOG’s journey gives a simple answer to never ending chicken or egg dilemma while requires a detailed explanation to answer its transformation from a poultry company to a vision of a food conglomerate. If anyone is reading the latest news or the recent annual report of A’saffa Foods S.A.O.G(“A’saffa”, “the company”), a company quoted in Muscat Securities Market (MSM)in Oman may have difficulties in believing that the same company was struggling just before a decade to manage its poultry only business in the name of A’saffa poultry Farms S.A.O.G. Conversely, for a company analyst or a researcher who followed each foot step of the company for last ten years, listing A’saffa foods S.A.O.G as one of the fastest growing companies of Omanin the United Securities Survey 2015 by Oman Economic Review (OER)1 and considering as a business that is agile, have an ability to think and respond to setbacks swiftly, generate consistent returns to its shareholders and post good results consistently may not be that surprising. A’saffa’s this transformation can be termed as one of the fastest journey from poultry to food conglomerate using its own resources and capabilities. The reality of this journey of the company might appear as fiction. However, as we know sometimes truth is stranger than the fiction. Firms journeys towards growth come via many approaches such as using internal resources, acquiring competitors, integrating backward and forward or by using combination of one or more of these methods. However, in general the fastest method for a growth of a company is being always portrayed as via acquisition and the slowest is through using internal resources.Nevertheless, A’saffa’s transformation debunk this notion. The company’s journey toward growth started with an organic approach to overcome its initial struggle that threatened the company’s survival by revamping its internal resources. Subsequently, building on its own competences and expertise in poultry farm and production management system and swiftly moving towards very closely related further processed food and food production areasset an excellent example how a firm can grow to a conglomerate purely building on its own resources. The company possessed key ingredient of physical as well as human resources to support this organic growth. The physical resource was primarily its huge farm area with plenty of space for expansion and the human resource of the company included all the employees in general. However, the key resource was its senior management lead by the CEO and CFO whom under the guidance and support from the board members able to manage the ongoing changes in the company effectively and make the right decisions at the right place and time to keep the company growing. A’saffa journey started when it was setup as the largest integrated poultry farm in Oman in the year 2001.Yet, when the operations were started in the year 2004 the journey did not look that pleasant, within just couple of years the company lost two third of (66%)2its shareholder’s wealth putting a great pressure on company’s performance and cash flows. Due to this initial struggle, the company had to first concentrate on revamping the business by introducing measures such as strict cost control, better resource optimization and optimal cash flow management. As soon as these measures indicated to give the desired results, company started focusing on improving its business via introducing new products and enhancing the productions by expanding the facilities. In the meantime, company also concentrated on the export market and started growing its presence in the gulf region. As the company kept on progressing using its own resources and capabilities the board of directors set a new vision for the company to become a conglomerate. Subsequently, to accommodate the journey toward a conglomerate, name of the company was changed from A’saffa Poultry to A’saffa food S.A.O.G and launched two new brands in the name of Khayrat and Taybat introducing new products and expanding the current products range. Moreover, the company moved backward and forward in its value chain to control most of its value chain, firstly by establishing further processed food plant and a logistic company, then leading the breeder farm joint project with other partners to ensure not to rely on outside supplies for the ‘hatching eggs’, main input of poultry business. During this journey from the inception till date the company had to make several crucial timely decisions. The initial decision to optimize the cost of the company by making necessary layoffs in the middle management and taking the risk to go for a direct sourcing of raw materials in bulk was the first turning point of the company towards its successful journey. Then the board’s direction to move towards a food conglomerate to grow the company in line with the newly set Oman government’s strategies resulted in company’s second phase of growth and paved way for the authorities to consider A’saffa as a key strategic partner. In addition, the company’s courage to go for a further processed food plant building on the experiences it has gained so far on the chicken production plant and placing trust on its resources was an important step in the road towards company’s appetite to obtain more control over its business and take more responsibility. Finally, accepting to lead country’s food sustainability and security program was so important to the relationship with the government and to demonstrate a direct role in country’s economy. As this project is focused on the Gulf Corporation Council (GCC)3 it will also assist the company in spreading its wings to the GCC’s food sector. Throughout the journey A’saffa has set many examples. Firstly, ithas shown the importance of internal capabilities for a company in every stage of a company’s growth including struggles and proven that a firm can build on its own resources to grow and become a conglomerate. Secondly, it has indicated that in the beginning stage of the company its always better to be lean with few decision makers doing most of the work and when company is in a struggling stage indicating early warning signs, the board of directors has a fiduciary duty to act swiftly to identify the key issues and address them head-on without much delay and damage to the shareholder’s wealth. Thirdly, it had shown that for a company to grow and become a leader in a market it has to assert some of the key control and management measures such as cost control, financial control with optimal cash flow management and managing the human resources. Finally, in order for a company to become successful in its business it has to keep on moving forward without getting stuck to the comfort zones taking calculated risks to grow in many angle such as launching new products, taking control of its business by moving backward and forward in its value chain while keeping a close eye on its internal and external environment and adjust the business to the changed environment. Moreover, it has signified that for conducting and growing business it is important to build relationship with key stakeholders such as the local authorities and government.Item Succeeding on the pillars of failure – Successful repositioning of two and three-wheeler automotive appearance (convenience range) category by Trade Mines.(Proceedings of Case Study Synopses ,DBA Case Study Symposium-2017, University of Kelaniya, Sri Lanka., 2017) Srirajakulendra, A.P.I.Trade Mines (pvt) Limited, acts as the sole agent for the import, distribution, promotions and sales of Waxpol automotive & industrial Lubricants, polishes and waxes in Sri Lanka. Incorporated in 2010, TM’s initial monthly sale was less than LKR one million a month, with a mere distribution network covering 68 sales outlets in metropolitan of Colombo. Waxpol is one of India’s regionally known niche players in the state of east & west Bengal, but has considerable presence in around 18 states including Delhi & Tamil Nadu. Waxpol has six product lines which include automotive and industrial lubricants, hydraulic fluids, grease, coolants, Automotive appearance and hardware & household. The entity was established in 1946 as a manufacturer of automotive polishes but have expanded their portfolio throughout the years. Members of leading car forums in India, regard Waxpol paste wax and polishes as the choice of hard core car detailers who prefer a reasonably priced product as against the pricier high quality imports.Waxpol is also known in India as a supplier of cheap synthetic lubricants for two and three wheelers, where the product is sourced from China but is badged in India. From 2011 to 2015 the total population of two & wheelers have had an exponential growth as per department of Motor Traffic Sri Lanka which hit almost 15% markin Sri Lanka in turn creating a boost in the demand for lubricants being used for two wheelers and three wheelers. As per the local regulator, there are 13 licensed lubricant importers to Sri Lanka (importing almost 15,900 Kilo Litres of lubricants in 2015 as per the Public Utilities Commission), where the highest volume and market leadership is being held by Chevron Lubricants (close to 26,000 Kilo Litres of lubricants) popularly known as Caltex. For some two and all three wheelers, the prices of oil become a key element especially if they are two stroke engines, as for each refuelling 2T oil should be used as an additive. Predominantly, for three wheelers this will be loose oil supplied by Lanka lubricants (owned by CEYPETCO), Lanka IOC or LAUGFS, but unbranded. Few years ago, Caltex tried to brand this market with Revtex range but it was not well picked up by the market. In 2011 TM decides to enter this market via importing and supplying Waxpol synthetic engine oils for two wheelers and three wheelers. The primary decision behind this was to make use of a market space which was uncontested by any of the existing players with synthetic products. The product supplied by Waxpol was 10-15% increased than the conventional oil, but due to the synthetic oil having a dedicated pack, branding, technical specifications and being a product of India itself where over 90% of the two & three-wheeler engines are originated from the product started taking off in the shelves.From 2011, TM’s most successful range under the Waxpol umbrella was, the synthetic oil range for two and three wheelers. From a mere monthly turnover of LKR 200K a month within two years the revenues shot up to over LKR 10Mn a month. The sales teams predominantly focussed at the low-end service stations for two wheelers & three wheelers, by specifying that this is a synthetic oil but only a fraction of difference of the price. Even the colour of the oil was red in line with some of the high-quality performance oils, which further increased the acceptability of the oil and from at a fraction of price premium a branded seal packed product was made available to the two & three wheelers.Although it was a popular perception that two and three-wheeler owners are not very much concerned about the quality of the oil, the recent fragmentation of the market & the ATL advertising effort being put up by some of the new players in the industry, the interest for a proper branded lubricant was evident. Especially after the contamination issue of 90 octane petrol in 2011, many trishaw and two-wheeler owners became much cautious about the fuels and lubricants they use. The fact of being able to get a sealed pack, branded and above all it being a synthetic Waxpol two and three-wheeler oils gained immense popularity among the target users. The association of lubricant importers has been continuously pressurizing the government and their regulator the public utilities commission to regulate the non-conventional lubricant market as well. The collective argued on the fact that there should be control & regulation over the quality of the synthetic lubricants which are being used in the market. However, the small-time importers counter argued the fact mentioning that it was a more by the big players to further consolidate the synthetic oil market to further increase their profits. The petroleum minister Hon Chandima Weerakkody in a statement to the Daily Mirror,mentioned that the appeal from the collective of lubricant importers has been considered by him, and he will call for regulation of all conventional and synthetic oil importers. In view of the statement of the Hon minister, Trade Mines made a policy decision to appeal for an import license to the Department of Import Control under a copy to The Public utilities commission. A considerable time was involved in the decision-making process and subsequently after a period of over three months, the government responded that a license cannot be granted to Trade Mines for the import of synthetic oils. It is believed that the government has taken a policy decision to limit the number of licenses being issued to lubricant importers to further regulate and consolidate the market. With the government decision in play the BoD immediately decided to curb all imports of synthetic lubricant and greases from Waxpol. By the time the decision was made, Waxpol lubricants were contributing to almost 70% of the total turnover figure. The entity was relying heavily on the lubricant part of Waxpol, that it had lost interest on the primary set of products which were meant for automobile appearance enhancement. At the board meeting, immediately after the decision to withdraw the synthetic oil was taken in to consideration two key elements were being discussed by the Board. A) To have a bridging plan to recover the lost revenue due to the discontinued sale of synthetic oils in the portfolio and B)To consider the portfolio of product mix being mismatched between Sri Lanka and India. After the BCG portfolio analysis, the management wanted to critically relook at the relative product positioning in the market in retrospect to the brand repositioning principles by Martin Lindstrom. However, the product being badged under the convenience range actually in Sri Lanka started to repel the consumers as they were unaware of Waxpol’ s proficiency in the hardcore wax and polish market. The full campaign which took flight under the slogan of “Painters trust Waxpol convenience” kind of backfired where the local consumers did not trust the convenience range to provide performance up to the hardcore level. Waxpol was continuously trying to pitch the product to professional auto painters and detailers pressing them to use the product, but the concept of “convenience” was driving this category away. The casual user did not want to risk using the product as it was positioned as a professional detailer’s material. They did not prefer to use a professional use product and then risk any unanticipated damages to their paintwork, and even the channel was not encouraging casual users to try it. The primary damage was done at the activation point itself. The management immediately noted that there has been a fatal flaw in the original positioning of the product category at the inception. Due to the confusion caused at the activation point the product was not taking off from the shelves. The positioning was decided to be immediately changed to the quadrant where appearance conscious clients who were beginners / casual users of the product. The tagline for AA convenience was changed from “painters trust Waxpol convenience” to “Waxpol- professional level detailing in minutes”. As accordingly the Waxpol convenience range was introduced to the modern trade channel and the advertising material was changed to reflect vehicle owners using the product in contrast to previous representations with professional painter characters. To better support the everyday user, the packs were equipped with a hand sprayer and the bottle shape was aligned to ensure it could fit in the door pockets of an average car, with a free distributed polishing mitt. The pack sizes were made smaller from the traditional 01 litre packs to 100ml & 250 ml packs, and the package branding and graphics were upgraded to suit the casual consumer. The trade channels were modified with new activations done at automotive consumable sales outlets, professional service stations, modern trade outlets, vehicle agent sales outlets and pop ups stores activated during exhibitions. Special interest was focused on increasing the online sales where proposals were made to Wow.lk, Mydeal.lk and Retailgenius.lk to promote the product online with a dedicated delivery service. By early 2016, AA convenience range obtained traction in the local market. More and more casual users were looking at purchasing Waxpol and the trade volumes have been showing a mom growth of around 2%. The smaller pack sizes jump started an entirely new SKU which occasionally had stock out situations due to the high demand. By end of 2016, the convenience category was performing a highly satisfactory level, recording a turnover representation of almost 35% out of the total category mix, signing one of the most successful repositioning conducted for the entire Waxpol range.Item Game of changing perception: Providing unmet need of “Casual sufferer”(Proceedings of Case Study Synopses ,DBA Case Study Symposium-2017, University of Kelaniya, Sri Lanka., 2017) Punchibandara, M.M.T.So many brands and companies are constantly reinvigorating their businesses and positioning them for growth. There is a constant need to innovate, reinvigorate, update, recalibrate, or just simply fend off the competition in an effort to better explain "why buy me." To move forward, companies and brands need to first take a look at their current brand positioning. But for a moment, even a brief moment, it would make sense to go back to the brand drawing board to answer the question, just what is brand positioning anyway? Brand positioning creates a specific place in the market for your brand and product offerings. It reaches a certain type of consumer or customer and delivers benefits that meet the needs of several key target groups and users. The actual approach of a company or brand's positioning in the marketplace depends on how it communicates the benefits and product attributes to consumers and users. As a result, the brand positioning of a company and/or product seeks to further distance itself from competitors based on a host of items, but most notably five key issues: Price, Quality, Product Attributes, Distribution, and Usage Occasions. As companies and brands today look at brand repositioning, they first have to ask what the reasons for repositioning the brand are. They can include declining sales, loss of consumer/user base, stagnant product benefits, or the competition, including issues such as increased technology and new features. Abbott Laboratories S.C started business in Sri Lanka by the year of 2007. Though products were available in the country for more than three decades, but this was the first time Abbott global decided to operate as an affiliate in Sri Lanka. With a span of 29 products and 24 field staff Abbott was moving positively in the pharmaceutical market especially in the Gastro Intestinal (GI) segment. 2010 was a milestone year for Abbott Sri Lanka, Abbott global acquired Solvay pharmaceuticals, the Netherland pharmaceuticals company which added another 12 products to the basket which giving further strength to the established GI franchise to become stronger.Since three decades of presence in the market throughout various channels, Abbott was able to establish market equity with products like DIGENE, CREMAFFIN, BRUFEN, etc. Digene, the biggest brand to the business (33% contribution) was declining from 2011onwards. Abbot took many initiatives with more emphasis on the ethical side but not able to gain strong hold in the antacid and anti- flatulence (Acid and Acidity problems) market. “Doctors Choice” the campaign laid to acquire the doctors and patient’s preference but entire 2012 product was not moved a single digit of market share instead of lost 2%. There was an impact of price increase which took place in 2010 which lead the brand to be “off the shelf” of many stocking doctors where Digene was generating good revenues from this category. There were some sales promotion activities conducted at both retailers and stocking doctors, was unable to capture the lost share from them. “Doctors choice” campaign was able to make some noise towards the doctor chambers but at the consumer front, it was not as expected. 2013 Q1 brand team decided to expand the positioning to larger target market while changing the positioning statement. The new positioning statement was “Doctors choice for Acidity and acidity related problems”. The positioning was expanding the large target market by reaching the ultimate desire of patients. This attempt was to tap the lifestyle issue of consumers who associate with acidity or other discomforts. The campaign was still focused on the therapeutic segment where materials and inputs were based on the “Doctors choice”. On one hand, this campaign gave some important communications to stake holders about the areas which was not discussed earlier by Digene and it made some space to expand his/her therapeutic diagnosis to a different level. After extensive efforts on the new positioning, still the result was the same, unable to attend the expected out come after investing 12,000$ on all the campaigns and it brought the company to re-think it’s approaches towards customers and consumers.Home remedies are the first line use for medications for GI related issues and it represent the large market which is even unknown till today. In the positioning quadrant it represents “Casual but effective, Good for me” with “Conservative/ Mature”. Largely this category is dominated by Ayurvedicproducts largely no brand name. Kalla, Guli, Churrna, more dominant formats in this category and mostly prepared as household level. Some local Ayurvediccompanies have operating this segments in very low profile manner but there were no proper data been published on reputed source to quantify the size of the market. Glaxo Smithkline Healthcare Limited (GSK)identified this market as a lucrative business and penetrate with more “contemporary and vibrant” way while creating new market segment. ENO the revolutionary brand which changed the market dynamics of Antacid category while investing a large amount of money. “Professional and Scientific/Conservative and Mature segment represents 90% allopathic Antacid market where market is driven by majorly on prescription. Certain amount of OTC (over the counter) sales are happening but largely doctors recommendations are dominating this category. Gaviscon, the market leader in this segment continues to focus on doctors’ level and heavy promotions in scientific manner and thus being able to create the “Original” perception towards the brand. “Gaviscon Dual Action” created a great hype among the medical fraternity in the market which discuss about the functional value of the product to the doctors. There are some brands which operates in the lower section of the same quadrant serving more towards the price as a key driving factor. The market here is a very price sensitive and where great volumes are available. Especially stocking doctor segment where they dispense product which available in their clinic or dispensary. Brands like Belcid, Antiget, Maxajet etc., operates heavily in the segment which continuous fights for sales is observed. Digene as a brand which is stuck in the middle of both Gaviscon and low priced brands. Brand needs to find clear destination how it moves in future. Michel Porter in his book called “Competitive Advantage: Creating and sustaining superior performance” mentioned that trying to "hedge your bets" by following more than one strategy. One of the most important reasons why this is wise advice is that the things you need to do to make each type of strategy work appeal to different types of people. “By strengthening the scientific image and in-clinic relevance of DIGENE Gel, while initiating consumer centric initiatives in Tablets and Newer formats, DIGENE will retain its equity while revitalizing the image with contemporary audience and scale up to lead the antacid category”. Anurag concluded the meeting while endorsing that Digene would be reinforced to a new category of a target market to meet the unmet need of “the casual sufferer”. He also made clear instructions to support the entire value chain of Abbott to succeed the repositioning strategy (Minutes of the meeting- Abbott archives 2013) Also visit insight of case study following revealed inputs could be concluded. Based on the theoretical aspect, Martin Lindstrom author of “Brand revitalization principles 2014” book revealed that four types of repositioning could take place based on the “Market “and “Product. At this scenario it is revealed that the product being kept unchanged and market changed (casual sufferer) where the product was not positioned earlier. Based on that, this case study revealed “market repositioning” principle where product was kept unchanged while taking the product to a novel market. Case study also provides an example of evidence based on decision making, where decisions are being based on the real time data by both market and product level. Since it was found that brand becomes obsolete and no relevance to ethical level backed by continuous loss of market shareand therapy shift to newer formats leading the thinking process of repositioning the brand. It also considers the high brand equity in Digene and using the same existing quadrant of the positioning to leverage it towards the scientific approach. It is also reveals that company mitigated the risk by keeping one format in the ethical wing (Digene Gel) and transformed Digene tablets to fully consumerization where in case the failure company still has option of returning to ethical wing where product equity has been preserved. This revealed that “Strategic risk diversification” is an important criterion during the repositioning process. Looking at the point of growth perspective of this brand, needs the clear understanding that how company project next 5 years’ lifespan of Digene. Moving one quadrant to another and doing revitalization have certain limitations as well. It’s a kind of a dilemma that company will face soon that the product with high brand equity and obsolete perception playing in different market will sustain in long run? As the perception towards Digene is simple and common among the consumers where one point even in the current positioning also will make the issues and brand needs to find other available revenue generating options to move forward. Managing life of the product in both physically and emotionally import to drag the lifespan. Though the differentiation makes on the product but it has limitation which unexpectedly downturn the business. Too much concentration on the brands, make short term changes to the brand, new market penetration need to be manage while sensing the anticipate consequences in future. “Obsolete you brand at right time”, great marketing Guru Theodore Levitt mentioned in his Marketing Myopia paper published in Harvard Business Review (1960). The Myopic cultures, Levitt postulated, would pave the way for a business to fail, due to the short-sighted mindset and illusion that a firm is in a so-called 'growth industry'. This belief leads to complacency and a loss of sight of what customers want. To continue growing, companies must ascertain and act on their customers’ needs and desires, not bank on the presumptive longevity of their products. In every case the reason growth is threatened, slowed or stopped is not because the market is saturated. It is because there has been a failure of management and practices. Future of Digene may not be the Digene. Too old, less manage the life cycle, decline perception on both stakeholders (doctors & consumers) and playing in low growth segment need to be considered by the management of Abbott. Still Abbott myopicon the brand name which may lead to greater consequences in coming years.Item Leaning through Macro Environmental Perspectives: case Issues of SAITM.(Proceedings of Case Study Synopses ,DBA Case Study Symposium-2017, University of Kelaniya, Sri Lanka., 2017) Pushpakumara, B.M.A.Sri Lanka’s tertiary-level student population is quite mobile – in part because higher education in Sri Lanka has insufficient capacity to address student demand. This can be identified as problem. As solution, Sri Lanka’s government promotes this interest in study abroad and especially government support for an increase in the number of private higher education providers in the country may alleviate capacity issues and impede that growth at least somewhat. SAITM has been established as a private campus in Sri Lanka to teach Medicine, Engineering, ICT and Media and Business Management. Also, this is the first time that the private sector has been able to enter the field of higher education in Medicine in Sri Lanka. However its final analysis may be that it is an essential feature of democracy. But it is necessary to re analyze and revisit the particular issue, subject to such discussion in the country, to ascertain whether it is the ‘Real’ problem, which should be focused on. I hope to discuss this ‘Real Problem’ through the issue at hand, namely, the Private Medical College problem, or the SAITM issue. The SAITM issue has come to the forefront in the media, just as much as the Ragama Medical College issue which came under discussion a decades ago. One group expresses its view in its favor, while the other group speaks against it. It is unfortunate that these speakers focus on the symptoms of the ailment without making an effort to find out the cause. SAITM of the intention is to produce educated young men and women with good motives by the name of SAITM. They aim to provide affordable higher education opportunities to many prospective students. One of the greatest challenges that a business faces is to figure out how to balance burgeoning human activity with the processes and resources of the natural world in a way that will sustain the health and well being of our planet in the longer term. With surging populations and rapid economic development across the globe, we are beginning to see limits on the ability of the earth to handle the demands we place upon it. There is no point in allowing the SAITM issue to continue for so long without a solution. The government or the country should be able to resolve such problems within a reasonable time. In the meanwhile, the government has come up with varies Point Proposal to the situation. From the look of them, they fall far short of the ‘demands,’ the other expert proposals or the key issues of the controversy. As reported in The Island lead article (“SAITM Crisis Takes New Turn,” 4 May), they are as follows. Frankly speaking, the first and the key proposal of “Listing of SAITM in the Colombo Stock Exchange” is like ‘Koheda Yanne, Malle Pol’ (Where are you going? Coconuts are in the basket!). This is not to say that resolving such a problem is easy. But most difficulties are related to the present; the confrontation seems to be mainly the government, or certain sections of the government, and the GMOA (General Medical Officers Association), although there are several other stake holders. SAITM seems to have taken a back seat, tactfully or not, and their medical students have become the main victims of the situation. Learned people and others from different walks of life express their views based on the way such topics are highlighted in the Media. It is just because the SLMC decreed that the clinical training provided by PMC is not sufficient to be qualified for SLMC recognition. This is where the problem is and now we can get to the crux of the issue. People start talking about the quality when they seek medical care and that is the basic need of patients and consumer behavior. This is main social and cultural issues for SAITM. It is a vast field that has even created tens of thousands of job opportunities around the globe. Not to boast about Medicine but it is a well-known science in the world that has it’s own largest discipline for its educationists. If we explore Sri Lanka’s culture through the lens of the 6-D Model, we can get a good overview of the deep drivers of the culture of Sri Lanka relative to other cultures of the world. Power Distance deals with the fact that all individuals in societies are not equal. It expresses the attitude of the culture towards these inequalities amongst us. In Individualist societies people are supposed to look after themselves and their direct family only. In Collectivist society’s people belong to ‘in groups’ that take care of them in exchange for loyalty. The next determinant is income inequity which is an ever growing issue since 1948. People increasingly tend to think that bridging this gap isn’t a tough task as far as they have a cling to a corrupt politician.Power Distance dimension deals with the fact that all individuals in societies are not equal. It expresses the attitude of the culture towards these inequalities amongst us. Power Distance is defined as the extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally. With a slightly high score of 80%, Sri Lanka is a relatively hierarchical society. This means that people accept a hierarchical order in which everybody has a place and which needs no further justification. Hierarchy in an organization is seen as reflecting inherent inequalities, centralization is popular, subordinates expect to be told what to do and the ideal boss is a benevolent autocrat. The shift of the focus of education has changed in terms of the structural adjustments in policies of the IMF, and the World Bank, and other international lending organizations for underdeveloped and low-income countries. These organizations push their hidden agenda, such as cuts in government expenditures, market liberalization, currency devaluations, reductions of government subsidies, price controls, and most importantly the privatization of public services such as health and education. This level can be identified as opportunities for SAITM. SAITM has more external threats for their business so they should develop an appropriate business model to face this critical issue. Now, they face high risk, sometimes they can earn high return in future according to high return high risk theory. It has been impossible to find a possible solution as the key question can be identified – ‘Can the Medical Education be provided by the Private Sector? It has not yet been understood. Hence it is too vital to understand the key issues and search for a possible solution immediately. We should dedicate to find the answer even though it is not visible. The efforts by SAITM may be considered admirable. But the efforts have failed. Singapore, the epitome of Asian capitalism doesn’t have a Private Medical College (Duke-National University of Singapore is a semi government graduate medical school largely funded by the government and attached to NUS). Therefore, the suggestion here to solve this issue is to join with the government and do the business as semi government business, medical faculty strongly control by the government.Item Strategic Alliances for Success: Story of IFS Japan.(Proceedings of Case Study Synopses ,DBA Case Study Symposium-2017, University of Kelaniya, Sri Lanka., 2017) Somathilake, C.D.Seventeen years after the dawn of new millennium, IFS and NEC celebrated 19th Anniversary of their very successful journey. IFS was an ERP company founded in Linkoping, Sweden in 1983.IFS Applications was single, integrated ERP suite developed by IFS that enabled global and demanding business to successfully handle four core process, namely service and assets management, manufacturing, projects and supply chain management. As of 2015 Gartner recognized IFS Applications as a leader in the Gartner Magic Quadrant for Single-Instance ERP for Product Centric Midmarket Companies. By year 2016, IFS’s revenue had reached 3.6 Billion SEK. IFS business model was to conduct the product development at R&D centres in Sweden and Sri Lanka and to develop global and local cooperation with partners to enable continued development of the company’s competence and market presence with lower risk and capital requirements. IFS’s partnership strategy was dating back to its roots even though it was found to be very challenging to be implemented. As of June 2017, some of IFS regional offices totally relied on direct sales and some employed mixed mode. The strategy of IFS Japan was to totally rely on the partners by becoming a “Partner Enabler” and “the communication link between partners and IFS global organization, in particular R&D”. IFS Japan was a very compact organization with a flat structure, open door management and with many other distinct characteristics and was very different to the other regional organizations in APAC region. With the acquisition of Avalon in 1996, a US based ERP vendor which had presence in Japan, IFS started its operations in Japan by formation of IFS Japan in January 1997. The partnership Avalon and NEC had before Avalon’s bankruptcy, paved the way to IFS Japan to approach NEC. With successful negotiations backed by deep insights, IFS and NEC became partners in May 1998.NEC was a huge well reputed Japanese multinational company with wide spread global presence, providing information system services and products. NEC was a very experienced player in system integration and was a resourceful company. Even though formation of strategic alliances were believed to be the divine formula to be successful in ERP industry in terms of implementation and selling and also the prime drive from the IFS Global from its inception, IFS as a company was far behind the competition, as the formation and continuation of successful alliances were quite challenging and difficult to execute. Whilst NEC and IFS Japan Partnership was believed to be the most successful channel partnership in IFS Global, many partnerships IFS formed, even within the APAC region had not delivered the intended results. This had been the case for partnerships, even with NEC, outside Japan. The first section of this full paper describes the background of IFS and its initial sales and partnership strategies. Then the ERP industry growth, IFS Focus Industries and IFS Architecture in Late 1990swould be discussed briefly. The next section would be focused on IFS entry to Asia Pacific Region,Japan Economy, Japanese Manufacturing Industry and IFS entry to Japan. This will shed light on to understand why Japan was an attractive market to IFS in the light of its strengths in manufacturing functionality. Final part of the paper would be focused on analysis of strategic alliance formation, structural preferences and alliance performance, in the light of the resource based theory for strategic alliances developed by T.K.Das and Bing Sheng Teng in year 2000 and also based on transaction cost economics. The resource based theory for strategic alliances propose and discuss four essential components of strategic alliances: rationale, formation, structural preferences, and performance. The resource based rationale highlight the value maximization of firms trough combination and utilization of valuable resources. The overall rationale for entering into a strategic alliance is to aggregate, share, or exchange valuable resources with other firms when these resources cannot be efficiently obtained through market exchanges or mergers/ acquisitions. The resource-based logic suggests that the competitive advantage of alliances is based on the effectiveintegration of the partner firms’ valuable resources. According to this theory, the performance of alliance can be measured by its endurance, profitability and objective attainment and the performance is a function of resource alignment. The resource alignment is referred to the pattern whereby resources of partner firms are matched and integrated in alliance. The strategic alliance arrangements must be mutually beneficial to all the parties in the alliance to make sure the sustainability of it. The performance of alliances are greatly dependant on the type and the value of the resources contributed by each partner and on the accuracy of resource alignment. As per the transaction cost economics firms ownership decision is based on minimizing the sum of transaction and production cost rather than maximizing the firm value. As of June 2017, IFS Japan had the highest EBIT percentage (Earnings before Interest and Tax over revenue) in Asia Pacific Region (APAC) and all the other IFS regional companies were far behind it. And also IFS Japan had been able to maintain this record in APAC region for many years while maintaining highest absolute EBIT. In addition to that, IFS Japan was one of the most compact regional organizations in IFS Global who had been able to maintain such a fascinating record throughout. The partnership between NEC and IFS was flourishing and relationship between them was being strengthen day after day even though they have had disagreements over priorities and resource allocations time to time in their journey. As of June 2017 IFS had about 100 customers in Japan and NEC was using IFS Applications companywide as their manufacturing ERP. Additionally, NEC was a shareholder of IFS parent company (5%) from 2004 to 2016. Even though strategic alliance between NEC and IFS Japan was proven to be very successful, it is quite risky for IFS Japan to restrict their partnership to NEC, as bad patches in NEC could directly affect IFS in a big way. Therefore IFS should be looking to form good strategic alliances with other companies in NEC nature. And also they need to reconsider the adequacy of staff if they decide to form strategic alliances with other organizations and also they may need to do slight adjustments to existing model based on the demand of new partners when dealing with them. All the modifications to existing model must be done without affecting the relationship with NEC. The prime purpose of this case study is to demonstrate the performance of successful alliances in comparison to the direct selling strategies and employing mix modes in ERP industry and to guide, on how to make decisions at the formation, deciding on a partnership mode, alignment of resource and execution of strategies to yield greater performances. And also this case study will discuss IFS Japan’s strategy, management style, shared values, systems, organizational structure, staff and their skills behind this successful relationship. The intended learning of this case study could also be relevant for other industries.Item REDEFINING THE BOUNDRIES OF SUCCESS, A CASE STUDY ON MAS HOLDINGS, SRILANKA.(Proceedings of Case Study Synopses ,DBA Case Study Symposium-2017, University of Kelaniya, Sri Lanka., 2017) Disabandara, D.R.A success Story “Redefining the boundaries of Success” on MAS Holdings, Sri Lanka, is to identify insights of the apparel industry in Sri Lanka, and to emphasize the Key factors which have contributed MAS Holdings to become one of the country’s highest foreign-exchange earners for several decades, Although a plethora of local companies were involved in the manufacture of apparel for global brands, few companies have been able to sustain the momentum, and have created opportunities to build an enduring organization. As the global apparel manufacturing market became more sophisticated, there was a shakedown, not least in Sri Lanka, where only the preferred manufacturing partners for large global brands survived the challenging market forces. MAS is one such success story. As South Asia’s largest intimate apparel manufacturer, It’s extremely important to assess how MAS has achieved set goals to become the region’s fastest-growing supplier of sportswear and how company manages the entire value chain, from product design, development, manufacturing and raw-material supply whilst commanding the latest technology and knowhow. In addition this study drills down to find out how Innovation the second nature to MAS has helped MAS to become the lead strategic partner for Victoria’s Secret (VS), servicing numerous global brands including Marks & Spencer (M&S), Triumph International, DIM Branded Apparel, Nike, Speedo, ADIDAS, Reebok, GAP and Banana Republic. This paper will also justify the success story and emphasize on lessons learnt as to how entrepreneurial minds brought life and change which revolutionized the apparel industry of Sri Lanka. What started as a humble manufacturing process has developed in to a US$ 1.6 Billion revenue generator and a significant contributor for the growth of country’s socio economic factors by improving wealth, providing employment, enhancing life styles by demarcating country’s name in the global arena.Major theories found in this case story can be highlighted as related and unrelated diversification, differentiation, leadership style driven by philosophy of customer-centric innovations. Company has the habit of practicing value chain analysis keeping quality as the value proposition. Following can be identified as key learning points of the case study. The company manages the entire value chain, from product design, development, manufacturing and raw material supply whilst commanding the latest technology and knowhow. With in-house research, design, development and product engineering capabilities, providing sophisticated concept to deliver solutions to its customers has helped MAS become successful. Product Innovation is second nature to MAS. From working with Victoria’s Secret on fast replenishment models to lean manufacturing with rapid product changeovers, the company’s fully integrated model allows it to innovate across the value chain. Creating Strategic partnerships on a regular basis is a key, in the international market to survive as MAS is the lead strategic partner for Victoria’s Secret (VS), servicing numerous global brands including Marks & Spencer (M&S), Triumph International, DIM Branded Apparel, Nike, Speedo, ADIDAS, Reebok, GAP and Banana Republic. Opening up overseas ventures with vertical integration has helped MAS to position Sri Lanka and the region as a center of excellence for intimate apparel and sportswear. The visionary leadership went beyond financial performance and has created opportunity to become world class. Driven by a philosophy of sustainability, the company represents the balance it strives for in social and environmental spheres alongside its operational excellence in all vendor interactions. The group reflects a passionate and competitive spirit balanced by unmatched commitment towards employee wellbeing. MAS differentiate itself through its best practices to position Sri Lanka as the preferred destination for ethical apparel solutions. MAS has a part of its corporate DNA. By correctly anticipating which way the market was moving, and by adjusting its approach accordingly has been able to position themselves to enjoy a first mover advantage when customers came looking for more than price and quality. Customized product designing is a salient feature of MAS Holdings thus working towards the deadlines placed by customers is decisive factor to maintain the long term partnering with their customer network. Buyers are more conscious about the quality that company maintains throughout the production process.The MAS philosophy of customer-centric innovations and flexibility has served well in acquiring and sustaining a prestigious portfolio of customers. MAS Holdings implements a web based ERP system that offers all customers the visibility to check the progress of orders placed from anywhere in the world. The system is updated by the factory at the end of each manufacturing process, enabling the customer to keep close tabs on the order placed.The intellectual capital becomes a common problem for whole apparel industry, the working culture of MAS Holdings apparently is different. The employee empowerment is highlighting feature in its working culture, as a result of that the company enjoys a negligible rate of employee turnover. MAS Holdings (Pvt) Ltd used diversification strategies also to their long term plans to achieve the vision and the mission of the company. Diversification can be applied in as related to the industry or else as unrelated to the industry where the company currently focusing on. They started BNK trading company to control the procurement process in the MAS Holdings. Here BNK supplies stationery to MAS Holdings as they could make a drastic reduction in their expenses. South Asia apparel conglomerate, MAS holdings took a significant step recently, as it sealed its commitment to become the first Sri Lankan company to commence manufacturing in the United States. MAS will achieve this through the acquisition of the Business operations of Acme McCrary Corporation, which is established in North Carolina. The company has been reinvesting their profits in new technology and expansion programs. That is one major reason for their growth in a comparatively short period. They regularly look at cost cutting solutions; when the costs go up owing to recession or slowing down of export markets, they introduce cost reduction methods. IT is widely used and the employees ‘dealings with IT is given the latest equipment to work with. Most areas of the production line are semi-automated. The company has also taken measures to minimize the use of power by introducing green energy solutions such as skylights and solar power systems for manufacturing plants and the water is recycled and used for gardening and toilets in an effort to conserve water. The impressive building structure and the offices with a blend of natural and power generated lights are testimony to this. The company plan to go for total green concepts sooner. MAS Holdings becomes the latest apparel and textile manufacturer to become a value chain affiliate of the Zero Discharge of Hazardous Chemicals (ZDHC) group, as it works to move the industry towards a goal of zero discharge of harmful chemicals to the environment by 2020.Mr. Mahesh Amelean is a frequent traveler. He and his team are regular visitors to international apparel fairs and conventions. During these visits they learn about new technologies and trends and pick what is necessary to improve their business back at home. The MAS journey is far from over. Content of this case story could assist as a managerial literature for practitioners and a learning platform for students in combining theoretical aspects with emerging workplace realities. Students can learn ways in which companies are managed, handling different types of managerial challenges and opportunities intelligently, as it gives wide range of business management applications, specially focusing on Entrepreneurship Development and Strategic Management.Item OCEAN TO PLATE; NAVIGATING THROUGH THE TURBULENT ENVIRONMENT.(Proceedings of Case Study Synopses ,DBA Case Study Symposium-2017, University of Kelaniya, Sri Lanka., 2017) Miranda, N.K.Ceylon Fisheries Corporation (CFC) is a statutory government organization which is fully owned by the state & has its unitary status as the apex body of the fisheries industry under the purview of the Ministry of Fisheries & Aquatic Resources Development (MFARD). CFC was established on 1st of October in 1964 in order to supply quality fish at affordable prices to consumers while securing the producer. CFC is rested with the responsibility of purchase and sale of fish, provision of cold room facilities, production and sale of ice and sale of fishery products. CFC operates a network of Regions, Provisional Offices, Purchasing Centers, Sales Outlets, Fillet Factory & Circuit Bungalows. Initially the responsibilities of CFC were vested for boats construction, providing fishing gears for such boats, fishing at sea (deep and also shallow waters) by using such boats, managing harbors for those boats coming from harvesting, repairing, replenishment and maintenance of such boats at harbors, supplying the fish catch to the market place, maintaining the market price by providing quality fish at reasonable price, catering the protein requirement of the citizen of Sri Lanka Being a government owned organization there is an immense potential for making profit and functioning as an apex body of the Fisheries Industry. However, CFC has been evolved as a lost making organization and failed to achieve its goals and objectives. Highly politicalized environment has created ruthlessness organizational culture inside the CFC. Poor management practices, lack of supervision, untidy appearance, absence of proper systems and unprofessional work force have negatively affected for CFC progress. Efficiency, effectiveness and productivity of CFC was lacked and driven towards the financial lost due to aforesaid factors. The politically appointed management was bias with the ruling party Trade Unions. The union multiplicity is high but the union intensity is low resulting 07 number of unions and the membership is at the marginal level in more unions. The conflict among the Trade Unions are observed and badly affected for the smooth functioning of CFC. Moreover, highly unionized en environment disturbing the management and reduced the organizational instrumentality. The unionization of employees was associated with poor financial performances and negative effect on the profit. The Top Managements appointed by the line ministers in time to time, had failed to manage the corporation with the dedicated manner. Malpractices, corruptions, mismanagement, misbehavior and poor leadership qualities were the salient features for the negative impact of CFC. The organization culture has been tarnished by the political leadership. Main departments such as Marketing, Operations, Finance and Human Resources Management were not functioning with the best practices in accordance with the common goal of CFC. The government of Sri Lanka granted immensely for the operation of CFC, but resulted the bad repercussions. The main reason for such lost was the poor management in highly politicized atmosphere. Therefore, the policy decision was taken to manage CFC as a Public Private Partnership business entity which was approved by the Cabinet of Ministers in early 2016, as the last option. However the arrival of the new management in the last quarter of 2016, implemented the better courses of action for CFC operation. In this case story the author has discussed the major issues encounter by the corrective as well as the preventive actions implemented by the new management. The top management implemented appropriate action based on the current situation demand in different aspects. Human Resources Management Department, Finance Department, Operation Department and Marketing Department were integrated to common system. The ultimate object was to achieve the success in Fisheries business arena. The new management is able to manage the industrial relation climate understanding of behavioral and non-behavioral variables associated with unions and union employees. Strategized the Union Avoidance policy by building a positive work environment and able to reduce the power of existing unions at CFC. Courses of action executed by the new management, resulted that CFC is moving towards the positive direction. Supervision, guidance and monitoring are made available to drive CFC as a profit making organization after 57 years of history. Visionary leadership initiatives of the Top management was able to minimize the corruptions and to achieve the success. The business of CFC focuses through impressive Human Capital Management practices. The revenue has driven by the adaptation of a comprehensive Financial Management System. Being the major organ of the organization the Operational Department achieved the business excellence triggering through the comprehensive initiatives. Ground level marketing tactics were promulgated and activated in order to achieve the overall marketing strategy. Disciplinary admiration is devised to enhance the productivity by maintaining the trustworthiness and adopt the rules and regulations. Integrity and ethics are considered as the most significant factors in the field of business as well as at organizational culture. This case story is about how to manage all negative aspects of an organization towards the positive direction. The new management has immensely contributed their tireless extra energy for the success of the organization. CFC has been functioning as a profit making organization since December 2016 slowly but steadily. CFC achieved the highest net profit in July 2017 reaching the best milestone of the corporation. This case story proved that the closed supervision of the activities, leading through the grass root level, managing with the shared ideas of the members, minimizing the corruptions in multi directions of activities, working with the team spirit can change the entire organizational culture to improve the employee performance and organization productivity. The top management believes that the leadership should set example for followers, rather than insisting to perform. The Chairman’s experience in the field of highly unionized and various kind of work force, the Managing Directors intellectual knowledge in the subject of Finance and Accounts. The General Manager’s experiences in Sri Lanka Navy devised immensely to manage the organization especially during the critical situations aroused. The major concepts of the Principles of War equipped to apply as and when required in the field of Marketing Management and Human Resources Management. The top management is being working as a team having a common goal to achieve a competitive advantage. Today CFC is functioning without any financial grants from the government and running as a profit making corporation in Sri Lanka. Finally the Cabinet of Ministers commended the task accomplished by the Top management and advised to take measures for sustainable growth of CFC wishing a fair winds, calm weather and enough water underneath of “the CFC ship”. Bon Voyage.Item Review on Successful Entrepreneur: A Case Story on Green Marketing Application of DSI Samson International PLC.(Proceedings of Case Study Synopses ,DBA Case Study Symposium-2017, University of Kelaniya, Sri Lanka., 2017) Madhusanka, J.D.T.Recently, concerns have been expressed by manufacturers and customers about the environmental impact of products. Manufacturing organizations have directed their attention towards environmentally friendly products and aspects of green marketing. The Sri Lankan community also realizing the importance of the green marketing concept. Green marketing is the marketing of products that are presumed to be environmentally safe. Thus, green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising. This paper aims to study DSI Samson international PLC,which is being operated with the Sri Lankan identity by investigating Business trends, procedures, environmental issues and appropriate solutions. Always, rubber related products have been a direct linkage and an impact on the environment. The need of an environmental friendly production and marketing process was emerged more and more to those strategic business units and subsidiaries due to the potential effects which may occur on the environment. “Green Marketing" refers to holistic marketing concept wherein the production, marketing consumption and disposal of products and services happen in a manner that is less detrimental to the environment with growing awareness about the implications of global warming, non-biodegradable solid waste, harmful impact of pollutants etc., Both marketers and consumers are becoming increasingly sensitive to the need for switch into green products and services. While the shift to "green" may appear to be expensive in the short term, it will definitely prove to be indispensable and advantageous, cost-wise too, in the long run.Being a leading business corporation in the Sri Lankan market, the firms which are producing rubber and PVC related products and connected to DSI Company are now moving towards the profitability and success by using aspects of green marketing perspective. The company has established Sri Lankan Symbol in the mindset of foreign customers as well as Sri Lankan by entering the international market. This is a story of success which many lessons could be learnt. DSI Samson Group proudly stands tall today as the country’s premier business conglomerate and leading manufacturer of footwear and rubber related products in Sri Lanka. The company is driven by innovation, adaptation and a keen sense of responsibility, combined with customer service excellence, high business ethics and a committed workforce for over 52 years. Samson International Ltd is a sister company of the renowned DSI Samson Group. It is one of a major Rubber Products manufacturers and exporters in Sri Lanka, Samson International Ltd., strives to provide products of the highest quality. With almost 25 years’ experience in the manufacturing industry, which have established an experienced and remarkably efficient management team consisting of over 300 employees. There were so many obstacles at the start of this successful journey. In 1962 Mr. D.S. Rajapakshe– Founder, Chairman along with his children launched D. Samson & Sons business outlet in Fort (Colombo), to sell local and imported footwear started as a small outlet. In 1988.10.14 the Samson International LTD was started as a sub company of the DSI Corporation. The company faced a challenge to find the solutions which are concerned about the environment aligned with production and marketing processes, Because of the company engaging Rubber related products, which may have the considerable impact towards the environment. The success of any organization depends on consideration and the satisfaction of the customer community. So, Samson International Company, which is offering vast variety of product ranges to both international and local markets, has been studied on consumer perception and consumer behavior under the context of green marketing. The products those are manufactured through green technology and that caused no environmental hazards are called green products. Promotion of green technology and green products are necessary for conservation of natural resources and sustainable development. Research and development department and market research team investigated and studies about following theoretical aspects and models. They were realized the importance of the green marketing after having a thorough understanding about the different theories.Basically, the company has been moving to green designing concept. At the stage of conceptualization, company considered about sustainable material and environmental friendly production processes. Processes were planned with the consideration of waste recycling procedures. Next they are using “green positioning” to establish an attractive environment friendly brand image in the customer’s mind about the product which they are offering to the market. At the phase of “green logistics” the company concentrates another few critical factors. Value chain has been considered about the environment friendly packaging other than production and distribution process elements. When it comes to Green disposal phrase, company has been taken into consideration in various stages of product life cycle (from production to disposal), to dispose the wastage without any harm to the environment or human health. Now the organization is being implemented 3R method (Reduce – Reuse –Recycle) which is identified as a very practical and useful model Company adopt the 3R method of Reduce- Reuse- Recycle since 2005. This method covers in waste rubber and water management. Waste rubber is being recycled. Energy consumption has been minimized by eliminating energy waste, installing capacity banks, using transparent roof sheets and energy saving bulbs. Company monitor electricity consumption on a daily basis with sub-meters and energy audits are carried out from time to time. The Samson PLC has been adopted the environmentally friendly production method. The company uses electricity, paper and other power sources conserving approach and reinvest the saved resources for the benefit of the production value chain. One of the mainly concerned facts of the organization is the measuring of the timely impacts on the environment. Through these institutional protocols, inefficiencies are being corrected. To use this advantageous green marketing technique, The Samson International PLC uses the contribution of everybody in the group. The company often set up the “Green discussions” on the methods in production and marketing tactics with the employees and its main focus is based on the environment friendliness. Through this method the employees can suggest ideas to protect the environment. This boosts morale and generates goodwill as every person in DSI can contribute to the organizational environmental goals.Environmentally friendly measures are being taken in the supply chain of the factory as well. The purchasing orders are done to obtain raw materials in a well-planned manner. As a result the frequency of deliveries can be reduced also the packing materials supplied by the suppliers are re-used. Another important rule of green marketing is focusing on customer benefits. Always the company considering about the primary reason why do consumers buy certain products in the first place, and what are the reasons to motivate consumers to switch brands or even pay a premium for the greener alternative. It is not going to help if a product is developed which is absolutely green in various aspects but does not pass the customer satisfaction criteria. This will lead to green myopia. Also, if the green products are priced very high, then again it will lose its market acceptability. Samson international PLC has been provided careful attention regarding Green marketing myopia as well. In addition to the above information, Samson PLC has been following a unique green marketing and forest conservation approach. It is named as FSC approach. Under the FSC approach DSI group is following the below mentioned principles. 1). Compliance with all applicable laws and international treaties, 2). Demonstrated and uncontested, clearly defined, long–term land tenure and use rights, 3). Recognition and respect of indigenous people’s rights, 4). Maintenance or enhancement of long-term social and economic well-being of forest workers and local communities and respect of worker’s rights in compliance with International Labor Organization (ILO) conventions, 5). Equitable use and sharing of benefits derived from the forest, 6). Reduction of environmental impact of logging activities and maintenance of the ecological functions and integrity of the forest, 7). Appropriate and continuously updated management plan, 8). Appropriate monitoring and assessment activities to assess the condition of the forest, management activities and their social and environmental impacts, 9). Maintenance of High Conservation Value Forests (HCVFs) defined as forests containing environmental and social values that are considered to be of outstanding significance or critical importance, 10). In addition to compliance with all of the above, plantations must contribute to reduce the pressures on and promote the restoration and conservation of natural forests.The performance in the rubber segment has been improving day by day. The Company will further extend the rubber-related product range with an environmentally friendly manufacturing and green marketing aspects. The biggest challenge to the Company is to turn around the PVC segment in the next few years seven though there was remarkable progress. There is a radical change in consumer preferences and lifestyles. There has been a change in consumer attitudes towards a green lifestyle. The company is actively trying to decrease the negative impact on the environment. Through their unique initiatives the Samson International PLC, which is a subsidiary of the DSI group have been resulted in a competitive advantage for the organization. However, Due to the shift from traditional marketing to green marketing, management and decision makers are facing many contemporary challenges and have to investigate new strategies on Green marketing approach.Item Shaking a cold market with a hot flavor–Clogard entering the toothpaste market in Sri Lanka with Clove Oil.(Proceedings of Case Study Synopses ,DBA Case Study Symposium-2017, University of Kelaniya, Sri Lanka., 2017) Wimalana, K.W.N.‘Sunlight’, ‘Signal’, ‘Sunsilk’, ‘Vim’, ‘Lifebuoy’ and ‘Lux’ brands marketed by Unilever dominated the Sri Lankan market during the decade of 1980’s in home care and personal care sectors along with ‘Astra’ margarine, ‘Lipton’s tea and ‘Knorr’ in the food category. These products were ‘must have’ for any FMCG dealer to run the business. They occupied the supreme leadership position in the Toothpaste market after successfully eradicating local players who directly competed with them. ‘Forhans’ and ‘Orafoam’ from Maharajas, ‘Superdent’ and ‘Prodent’ from D.A.Abeysinghe, ‘Protect’ from Swadeshiwere disappearing from the market by 1990’s while ‘Supirivicky’ from Siddhalepa and ‘Vendol’ from Godakanda were holding a small share under the herbal category. These companies did not have the same financial, technical, marketing and distribution power to challenge the supremacy of Unilever. Therefore the success of the game on challenging the giant totally depended on creativity. Sheik HasannallyEsufally founded Hemas Drugs limited in 1948 after leaving from his family business of E. G. Adamally& Company. By 1990, the company was managed by 4 of his grandchildren and they had commenced manufacturing of FMCG products and held another business arm in Travels. As a local upcoming star, Hemas Drugs Limited had embarked on their attack to the Baby Care market controlled by ‘Pears’ of Unilever with brand ‘Cheramy’.In 1992 Hemas launched ‘Clogard’ toothpaste with the ‘time tested goodness of clove oil and scientifically tested fluoride’ challenging the market dominated by Unilever with brand ‘Signal”. Successfully battling a court case filed against by Unilever and turning more than one problem into opportunities, Clogard captured 28% market share within 6 years and increased that up to 33% subsequently.Due to the excessive market dominance of Unilever in home care and personal care categories, they had the strength to operate with strict trading terms that were not solicited by the trade who had no option but to follow. This market sentiment was providing a hint to the Hemaswho had already made headway with their ‘Cheramy’ brand to consider toothpaste to be launched through their FMCG Category. There was a similar situation successfully captured by Balsara in India fighting against 4 multinational giants with their ‘Promise’ brand that was introduced with clove oil. After launching the product in 1978, within a very short period of 5 years, they became the 2nd biggest player below ‘Colgate’. Any successful new product development has to commence the journey with idea generation. In the Clogard story, it is a classic example of picking the idea from the market itself which is the most important place for a success or failure of a product. The opportunity had already been created due to the success of their ‘Cheramy’ that pitched against ‘Pears’ of Unilever. They were in the best position to leverage on the support from the trade to challenge the dominance of a giant who had the power to control the trading condition to their favor. In the stage of idea screening, the cost factor has to be evaluated. That is where the second hand machine that had been brought in but not used by ‘Lankem’ came to the radar screen of Hemas. Following all the steps up to commercialization successfully, Hemas demonstrated that a properly executed theory can bring the ultimate success. In the case story, the birth of the local giant Heamsis discussed along with significant milestones of their journey. A family business turning into a world class conglomerate cannot happen unless utmost professionalism is imbedded with the family members who are in the driving seats. That conversion does not happen overnight and it is a process that has to be managed carefully within a reasonable period of time. When Hemas became a reasonable challenger in the FMCG Market, they got into accelerate mode. Identifying the core competence was done by them successfully in the area of toothpaste since there were many failures experienced by some other local giants still operating in the market. Those companies were not failures looking at the businesses run by them but they all had failed in toothpaste business and that was a huge challenge taken by Hemas. While looking at the failures in the local market, there was one success story in the nearby India where a local company had successfully challenged the toothpaste market of India dominated by 4 multinationals. Balsara in India had become the 2nd biggest player with their ‘Promise’ brand within a very short period of time due to their insights on the Indian Consumer. They launched the first toothpaste in India with clove oil and managed to occupy the above position within 5 years.The case story discusses the pre and post launch of Clograd by Hemascombining ‘the time tested goodness of clove oil and scientifically tested fluoride’. The company had clearly understood the repercussions if they launched the product with only one of them. They had to fight against the biggest FMCG player in the market who had enormous power in financial abilities, distribution and over the retail trade. But Hemas was aware of the weaknesses of their opponent and knew how to target their campaigns to reach the consumer. When Unilever took them to the courts and stopped Clogard for a few weeks and it was taken as an opportunity by Hemas to get free publicity on their brand. Eventually when they won the case, the PR activities conducted by them brought very positive results winning public opinion in their favor. The orchestrated attack on Signal using all possible ATL and BTL activities covering all stake holders in the business including sales force, distributors, trade and consumers are discussed in this story. The key point in the case story is identifying the opportunity precisely correct, coming out with the most appropriate strategy and executing that against all expected and unexpected obstacles. It does not matter how many players have tried the same idea in the past and failed. Important point is to understand what you can learn from other’s mistakes as well as other’s successes. In this case, while Hemas found many failures in Sri Lanka they found one success in India from which they could learn an important lesson. Another learning point for the readers is to understand how Hemas turned all their problems into opportunities very creatively. The hot flavor that was not liked by kids against usual mint flavor was projected as the effectiveness of good germ killing toothpaste. Not having the technology to create 3 strips on the toothpaste was converted to be modern against old fashioned toothpastes with red strips. This case story can be considered as a classic success of a new product development. The reader will understand the significance of following a theory with utmost care to the details and how to maneuver at each point when faced with a problem. Some say that this is the David and Goliath case history that was the toast of marketing fraternity in Sri Lanka.
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