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  • Sell Out To The Multinational Companies

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    Sampada ghodki
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    The document discusses the pros and cons of Arun Ice Cream selling their company to a multinational corporation (MNC) in the late 1990s. The pros included that it would have been profitable as expenses exceeded profits, the founder could start a new business, and the MNC could expand the successful brand. However, the cons were that customer loyalty may decrease, employees could be negatively impacted, and coordination between suppliers and franchisees could be affected.

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    The document discusses the pros and cons of Arun Ice Cream selling their company to a multinational corporation (MNC) in the late 1990s. The pros included that it would have been profitable as expenses exceeded profits, the founder could start a new business, and the MNC could expand the successful brand. However, the cons were that customer loyalty may decrease, employees could be negatively impacted, and coordination between suppliers and franchisees could be affected.

    Copyright:

    © All Rights Reserved
    Flag for inappropriate content
    17 views1 page

    Sell Out To The Multinational Companies

    Uploaded by

    Sampada ghodki
    The document discusses the pros and cons of Arun Ice Cream selling their company to a multinational corporation (MNC) in the late 1990s. The pros included that it would have been profitable as expenses exceeded profits, the founder could start a new business, and the MNC could expand the successful brand. However, the cons were that customer loyalty may decrease, employees could be negatively impacted, and coordination between suppliers and franchisees could be affected.

    Copyright:

    © All Rights Reserved
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    SELL OUT TO THE MULTINATIONAL COMPANIES

    PROs:

     In 1996-1997 the advertising and promotional expenses were still more than profit before tax
    even after good positioning of Arun ice cream in the market. So it would have been
    profitable business deal to sell company to the MNC.
     If Mr. Chandramogan had sold Arun ice cream to any MNC company then he can start new
    business as he was a good strategist, the way he expand the Arun brand in the same way he
    was able to expand new business and can get succeed in that also.
     If any MNC would have takeover the company then the MNC profits would also have risen
    because of the good quality products and well known brand image of Arun ice cream in
    South India. The brand image of MNC would also get raised.
     The expansion of Arun ice cream would become easy in other parts of India because of the
    brand image of MNC. Arun ice cream would not stay restricted to only south region but also
    gets recognized by the customers of other regions of India.

    CONs:

     The brand loyalty of customers would have been affected when MNC do takeover.
     The employees working in the company will also get affected; their faith and trust in the
    company will get decreased. If employees don’t get adjusted with new management then
    there can be huge loss to MNC as well as employees.
     The coordination between suppliers and company, franchisees and company, logistics team
    would also get affected.
     The shareholders’ fund was invested in company with large amount. When takeover will
    happen then new management decisions may differ from old management so clash of ideas
    can occur and shareholders’ may get decrease.

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