Nilco Pvt. Limited — The Technology Selection Process (A)

By 2009, since the introduction of liberal economic policies by the government of India in 1991, many Indian companies manufacturing leather cloth were closing down due to cheap imports from China and Taiwan. There had been no new investment or expansion in this field at all. In such a business environment and against the advice of many trade analysts, the chief executive officer of Northern India Leather Cloth Manufacturing Company Pvt. Ltd., based in the industrial town of Faridabad, India, decides to beat the competition by investing in new technology. He undertakes a rigorous examination of the company’s strengths, weaknesses, opportunities and threats, as well as listing and prioritizing four associated factors — technological, business, cultural and social, and financial — to identify the potential advantages and challenges associated with new technology absorption. Should he invest or not invest in new technology, and, if so, which of three possible technologies should he choose?<br><br>There is a supplement to this case, <br>9B14M069.

The case is intended for postgraduate management students specializing in finance, strategy and technology management. Its objectives are:<br><br><ul><li>To introduce students to multi-criteria decision-making methodology for decision making when choices are conflicting in nature.</li><li>To help students understand the concept of core competency in organizations and the role of critical resources in achieving these competencies.</li><li>To help students understand the roles of manufacturing strategy, technology management and human resource development and their relationships in achieving the strategic objectives of organizations.</li><li>To introduce the core concept of technology acquisition and examine why firms seek new and emerging technologies.</li></ul>

• SWOT analysis
• acquisition of technology
• return on investment
• analytical hierarchy process
• India