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Instructor spreadsheet for product 8B14N027.

Great Offshore Limited (GOL), a leading player in the Indian offshore oilfield services industry, was one of the largest customers of Bharati Shipyard Limited (BSL), the second-largest private-sector shipbuilding company in India. BSL had acquired an approximately 15 per cent stake in GOL (by invoking a share pledge) and made a public offer for a further 20 per cent stake in GOL. BSL’s rival — ABG Shipyard Limited (ABG) — announced a counter-offer. By early August 2009, both BSL and ABG had made further counter-offers and the latest offer price by ABG was 51 per cent higher than the first offer made by BSL. Both players had also invested substantially in building up their equity holdings in GOL. BSL had to decide on how far it should go to make the acquisition.

Great Offshore Limited (GOL), a leading player in the Indian offshore oilfield services industry, was one of the largest customers of Bharati Shipyard Limited (BSL), the second-largest private-sector shipbuilding company in India. BSL had acquired an approximately 15 per cent stake in GOL (by invoking a share pledge) and made a public offer for a further 20 per cent stake in GOL. BSL's rival - ABG Shipyard Limited (ABG) - announced a counter-offer. By early August 2009, both BSL and ABG had made further counter-offers and the latest offer price by ABG was 51 per cent higher than the first offer made by BSL. Both players had also invested substantially in building up their equity holdings in GOL. BSL had to decide on how far it should go to make the acquisition.

Bihar State Milk Cooperative Federation (COMPFED) had been marketing its milk and milk-related products under the Sudha brand name in the Bihar and Jharkhand regions of India for three decades. It operated through six unions and two dairies to process the milk collected from nearly 4,000 village-level cooperatives. COMPFED appeared to have a competitive advantage for its supply of milk, since it maintained the largest network for milk procurement, which spanned a large area and was unmatched by its competitors. However, due to various environmental forces, the ability to procure an adequate supply had declined in the last two years, which negatively affected the profitability of the organization.<br><br><br><br>The marketing manager of COMPFED had been facing difficulty in serving the growing demand and maintaining profitability. Since he operated in an industry with high fixed costs, the declining supply of milk procurement meant lower sales. As a result, there was no opportunity to significantly lower operating costs to match the limited supply.<br><br><br><br>The marketing manager thought of two reasons in the external environment that contributed to this situation. First, a series of floods had caused damage to grazing land and livestock operations. Additionally, private players were disrupting the supply chain by offering short-term higher payments to some suppliers/farmers. These players did not face the same regulatory and hygiene guidelines that COMPFED did. The marketing manager’s options included two very different alternatives: trying to work with these agents or securing a process to minimize or eradicate their activities.

Bihar State Milk Cooperative Federation (COMPFED) had been marketing its milk and milk related products under the brand name of Sudha in the Bihar and Jharkhand regions of India for three decades. They operated through six unions and two dairies to process the milk collected from nearly 4,000 village level cooperatives. On the surface, COMPFED appeared to have a competitive advantage for its supply of milk since it maintained the largest network for milk procurement, which spanned a wide geography over these two regions and was unmatched by its competitors. However, due to various environmental forces, the ability to procure an adequate supply had diminished in the last two years, which negatively affected the overall profitability of the organization.The marketing manager of COMPFED had been facing a difficult challenge in serving the growing demand and maintaining profitability. Since he operated in an industry with high fixed costs, the declining supply of milk procurement meant lower sales. As a result, there was no opportunity to significantly lower operating costs to match the limited supply.The marketing manager thought of two reasons present in the external environment that contributed to this situation. First, a series of incessant floods had caused damages to grazing land and livestock operations in many of the villages that were the source for milk. Additionally, private players were disrupting the supply chain by offering short term higher payments to some suppliers/farmers on a case by case basis. These players did not face the same regulatory and hygienic guidelines that COMPFED did and operated outside the normal infrastructure. His options included two very different alternatives; trying to work with these agents or securing a process to minimize or eradicate their activities.