Case Studies
Case Studies
Case Studies
Tangy spices Ltd, the countries’ biggest spices marketer has decided to launch a
hostile bid for Italy’s major spice marketer Chilliano. This is a rare case of an
Indian company making an unsolicited hostile bid for a foreign company. The
Tangy Spices Ltd. has competencies in Indian spices. The major destination
markets for the Tangy spices Ltd. exports have been the Europe and America. The
competencies of Chilliano lie in Italian herbs and spices. The Indian company with
the takeover wishes to synergies its operations in the world market. It also wants to
take advantage of the reach enjoyed by the Italian company in several countries
where its products are not beng sold presently. The move of hostile takeover
follows Chilliano’s rejection to an agreement entered a year back. At that time
Chilliano was suffering losses and it offered majority shares at a price of € 2.25. A
total of 20% shares were transferred at that time. In one year Chilliano was able to
turnaround its operations and the company made handsome profits in the last
quarter. The promoters who have residual holding of 35% in the company are
reluctant to transfer the shares now. They have rejected the agreement with a plea
that the earlier offer price was not sufficient. Tangy spices Ltd has revised its offer
to € 2.95. By this lucrative offer some of the large shareholders of Chilliano reveal
their interest for selling their stakes. On the other hand, promoters maintained their
position on this matter. Through the process of buying of shares in the market the
Tangy spices Ltd. gradually consolidated its holding in Chilliano to 45%. Being a
major shareholder they were ready for a takeover. At the same time, Tangy spices
Ltd. was trying hard to improve their position so that they do not leave any space
for Chilliano’s promoters in future.
Read the above case and answer the following questions:
Q.(1) What is divestment strategy? Do you see it being practised in the given case?
Explain.
Q(2) What is expansion strategy? What are the implications for Meters Limited in
case it is adopted?
CASE STUDY -3
Q.(1) Identify and discuss the major issues raised in the case.
Q.(2) Would you justify Mr. Vikas's argumentative tendency with the Chief
Personnel Managers ? Give reasons for your answer.
Case study 4
The JAW Bottling company has recently introduced a new beer to the market
called HEAVY. It is extra high in calories. It has been developed
specifically for those people that enjoy feeling full after only one beer.
The materials handling supervisors at JAW Bottling have been receiving
complaints from lift truck drivers that cases of the new HEAVY beer are
slipping off pallets during intra-plant movement and truck deliveries.
Thus far the JAW engineering department has tried to eliminate or reduce
case slippage through the use of the following methods:
1. Top case clamp on the fork truck.
2. Strapping cases to pallet.
3. Plastic wrapper around cases.
4. The use of a large size pallet with a retainer strip nailed along
the edges.
Question: Using a method other than those described above, can the case
slippage problem be solved?