The case illustrates the situation encountered where Starter Motor and Generator, Division of the Bosch Limited as a consequence of the global restructuring of the Bosch Group in 2007 in India. The SMG department had not earned gains for 22 years since its inception, but was adapted as part of Bosch Limited's India operations as the other departments cross-subsidized the department.
Subsequent to the restructuring, the division was taken as a part of global merchandise division which had no incentives to tolerate the continuance of a loss-making division. The local management was made to make operational and tactical changes to make the department viable to prevent the cruel choice of closing down the business' operations. The case then targets the strategic decision related to selection of a fresh business model which had consequences for the organizational structure that was embraced, and describes the operational changes that were implemented to improve profitability
PUBLICATION DATE: September 01, 2014 PRODUCT #: IMB471-HCB-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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