Supermarket Cyber Storm: Where adMart Went Wrong

Susan H. C. Tai

The launch of adMart, which sold and delivered discounted groceries, home appliances and office supplies through the Internet, fax and phone-in orders with free delivery service, provoked a wave of price-cutting by rival supermarket chains in June 1999.  It forces Park'N Shop and Wellcome, the duopoly in the Hong Kong grocery market, to improve their services by providing free delivery services and expand their on-line business.  However, the price war - although beneficial to consumers - proved to be a costly exercise for retailers.  This case focused on the impact on the grocery industry caused by adMart and how the present duopoly can bar the entry of new players.  The causes of adMart's failure and Hong Kong's consumer attitudes toward grocery shopping on the Internet are also addressed.

Outsourcing at Fatima Memorial Hospital

Zafar Iqbal Qureshi

Fatima Memorial Hospital is the first charitable Trust Hospital in Pakistan, and its sponsoring body is Ferozesons trust.  In order to continue to provide services to the needy, the Trust needed to continuously improve its financial resources.  When Dr. Qureshi took over the charge of the Hospital as its ACEC, he was asked to streamline the management systems to build a lean organization.  He decided to outsource the janitorial services as a pilot project to achieve a number of objectives.  If the janitorial services experiment proved successful, then the project would extend to laundry work as well.  After the janitorial services were outsourced, concerns regarding cleanliness of the Hospital were brought up by patients and the management.  They felt that the quality of service being provided by the contractor was not up to desired quality standards.  In view of this, ACEC had two concerns: not to de-motivate the contractor, and not to compromise on the quality of service being provided by the contractor .

North Electricity Board: A Case of Restructuring in the Indian Power Industry

Anjula Gurtoo

The State Government of one of the largest states of India restructured its financially unviable electric utility - North Electricity Board (NEB) - into three independent corporations and announced its plans for subsequent privatization of NEB.  The State Government argued for initiation of restructuring and privatization as a move to attract capital investments for meeting the growing demand and make the entire operations financially viable. An 11-day strike by the employees, which occurred as a response to the initiation of this radical organizational change, was the largest ever in the last 25 years of Indian labor history.  The employees united under one umbrella employees association and negotiated with the government.  Despite nation-wide support for the employees and the wholehearted unification of the employees, the strike ended with the acceptance of trifurcation by their union leaders.  The dynamics involved in the process of restructuring and the employees' strike highlight the political and economic motivations of the various stakeholders in this organizational change process.  In view of this, the issue facing the organization, post-strike, is how to get out of this current unpleasant situation and move forward.

Cycle and Carriage vs Parallel Importers of Mercedes Benz Cars

Lee Khai Sheang and Lim Gaik Eng

Cycle and Carriage (C&C) was a leading distributor of motor vehicles in Singapore.  So successful had its efforts been in developing the market for its flagship brand of Mercedes Benz cars that parallel importers entered the market to compete for a slice of the pie.  C&C had tried to counter the parallel importers through various means such as negative advertising, withdrawal of warranty services and discrimination against Mercedes that were not purchased from the company in the provision of maintenance services, but all to no avail.  To worsen matters, DaimlerChrysler withdrew the exclusive distributorship status of C&C with effect from 1 January 2001, leaving the company with a distribution right that is restricted to retailing only.

New Holland Tractors (India)

Devashis Rath

With the opening up of the Indian economy many multinational companies are making a foray into Indian markets.  Diverse strategies are being adopted to compete and establish themselves among Indian consumers.  Once such multinational who has entered India is CNH, the world's largest agricultural equipment manufacturer.  The fully owned subsidiary, New Holland Tractors (India) Pvt. Ltd,. NHI in short, has targeted the vast Indian tractor market.  This case is about how NHI has experimented with the concept of a team and process based organization in India.  The case details the processes involved in setting up a team and process based organizational design as well as the current challenges.

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