"Mahindra & Mahindra Ltd. (M&M) is a production leader in the utility vehicles (UVs) section in the Indian automotive industry. Since the year 2004, M&M has been exporting UVs to South Africa, the only nation in the African continent with a critical middle class population. M&M has set up a fully owned subsidiary in South Africa, where it's additionally established servicing network parts infrastructure and a dealer and spare.
Mahindra & Mahindra in South Africa Case Solution
This subsidiary experienced the growth tide in the South African automotive industry up to 2007, then fell into a three-year depression, mostly as a result of a recession in the world automotive industry. Now on the verge of sector renewal in 2011, the subsidiary company has to plan its next steps in South Africa, where most global automotive companies have established either manufacturing or trading outposts in response to South Africa's long-term possibility as well as the business-friendly policies of its own government. The case is placed as of May 2011, when M&M's subsidiary must select from among four options. M&M can continue with its prevailing business model of importing fully built units (CBUs) from its Indian operations to meet local demand while using South Africa as a re-export hub to target the burgeoning markets in sub-Saharan Africa. It may also opt to collaborate with a local vendor to assemble vehicles locally from completely knocked down (CKD) parts imported from India.
Lastly, M&M can choose to wait and watch until it notices definitive signs of revival in demand, which would make it more certain of its steps. The case offers the opportunity for students to analyze each choice and make a determination on M&M's way forward in South Africa."
PUBLICATION DATE: November 30, 2011 PRODUCT #: W11547-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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