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SIBM – SEMESTER II – Strategic Management – Feb.2022_

Groupwise Presentation in Class – by Groups 6 to 10 in Each Batch
Prof Dr Krishna Kumar V Rao
Case Study_ AutoSmart Pvt Ltd
AutoSmart Pvt Ltd was established in 2005 in Bangalore for manufacturing automobile parts with an
investment of Rupees 8 crores by Siddharth. Since beginning he is operating as its Managing
Director. Siddharth dis his automobile engineering from DMIT Madras. Also, he has rich experience
of working abroad and in Hindustan Motors Ltd as well as Ashok Leyland in India. He is always
dynamic and ready to take risk. He always emphasizes on maintaining high quality standards.
In the beginning, the products were supplied to automobile service centres all across the country.
The market was small and the company didn’t make much profits. Later they signed an agreement
with Maruti Udyog Ltd to manufacture and supply specific components for their entry level cars.
Using this experience, the company entered into agreements with other foreign automobile
companies entering India.
The company has been able to manage an average growth rate of over 20% during the five-year
period 2011 to 2016. Its turnover exceeded Rs. 800 crores. The overall market had been witnessing
a high growth rate. Siddharth granted some autonomy and discretion to the deserving senior
managers of the company. In 2017, in an internal meeting, Siddharth felt that the company can
grow still faster if it enters other markets outside India. Various options were analysed and efforts
were made to discuss and negotiate with major manufacturers of the world. After getting some
favourable response from two manufacturers in Europe and UK, he decided to open an office in
London. He closely monitored regularly the working of this office and its operations. However,
decisions having strategic implications were taken by himself. He also frequently visited London
Office and some major trade partners to have first-hand information about its working.
However, as the company is growing it is becoming increasing difficult for him to manage directly
this office and its operation. At the same time, he also wants to expand further. He called for a
meeting with head of various departments. In the meeting few alternatives were considered, like (A)
Continue to manufacture products in Indian factories and export them to various other countries. (B)
Initiate own new manufacturing activities in one or two locations in Eastern and Western Europe
and (C) Takeover some existing medium size manufacturers of the products in Northern India, to
expand manufacturing as the Indian market also has been promising for good growth

Questions to be Answered: Questions 1 & 2 carry 4 Marks each; Questions 3 & 4 carry 6
Marks each) (Total Marks 20)
A.1.Is the decision to enter international market, correct? Yes or No – Give your reasons, in about 8
sentences
A.2. What are the distinctive competencies of the Company and its Top Management?
A.3. What Business Level Strategy Mr. Siddharth has been following so far and What strategy
should he adopt in a high growth market?
A.4.Examine the pros and cons of each of the 3 Options A, B, C and explain which option is best
suited with reasons clearly brought out