In 1959, Unilever was one of the world's most internationally established companies, and its products had gained substantial market share in the consumer goods segment. Unilever was prepared to make a capital investment outside its home market of Europe, and considered entering one of two developing economies (disguised in these documents). The (A) case relates to the decision in 1959, whereas the (B) case revisits the same decision in 1969. Balonia and Banchuria were two of the world's poorest areas, and both had begun to emerge from their post-colonial ties to adopt policies and establish institutions in an effort to spur economic growth. Unilever's strategic planning group needed to weigh the data on these economies and make an entry recommendation as to which location provided the better investment environment.
The U.S. Federal Reserve System's decision to taper its quantitative easing program triggered large capital outflows from India, and the rupee depreciated by 13.7 per cent from June to August of 2013. Firms dependent on imports complained of rising costs, but exporters stood to benefit from the depreciation. On a macro level, economic growth dropped and inflation remained high, raising concerns that the much-touted “India growth story” was over. India's central bank, the Reserve Bank of India, faced the difficult task of fighting inflation and stopping the rupee's decline once the economic growth had slowed down. Expectations were high for an appropriate action from the bank, even as room for policy maneuverability appeared limited.
The U.S. Federal Reserve System's decision to taper its quantitative easing program triggered large capital outflows from India, and the rupee depreciated by 13.7 per cent from June to August of 2013. Firms dependent on imports complained of rising costs, but exporters stood to benefit from the depreciation. On a macro level, economic growth dropped and inflation remained high, raising concerns that the much-touted "India growth story" was over. India's central bank, the Reserve Bank of India, faced the difficult task of fighting inflation and stopping the rupee's decline once the economic growth had slowed down. Expectations were high for an appropriate action from the bank, even as room for policy maneuverability appeared limited.