Overview B. Ramalinga Raju (Raju) and his brother-in-law established Satyam Computer Services Limited (Satyam) in 1987. The company initially started with 20 employees and grew to become the fourth largest software exporter in India. It was listed on the New York Stock Exchange in 2001 with revenues exceeding US $1 billion. During the 1990s, the company saw considerable growth for itself and the formation of new subsidiaries including Satyam Infoway, the first Indian internet company listed on NASDAQ. The company continued to grow in the early 2000’s through mergers and acquisitions moreover; its portfolio of clients grew and included companies like Microsoft, Emirates, TRW, i2 Technologies and Ford. Satyam had established it’s self as a global IT company. By 2008, Satyam’s revenues were more than US $2 billion. It received the “Golden Peacock Award” for excellence in corporate governance from the World Council for Corporate Governance. Its outside auditing firm was PricewaterhouseCoopers (PWC) and Merrill Lynch was its deal advisor. Its board of directors was made up of executive and non-executives of the company. All of the company’s quarterly and annual filings appeared to comply with Indian and American regulatory agencies and stock exchanges. However, Raju had artificially inflated these financial statements. In 1988, Raju and his family founded a group of companies called Maytas. The Maytas group included Maytas Properties and Maytas Infrastructure Limited. Raju’s two sons headed the Maytas group. Raju used his political connections to assist Maytas Infrastructure Limited in acquiring government contracts for irrigation, power and transportation. Furthermore, he purchased land through Maytas Properties using f... ... middle of paper ... ...usiness-news-stock-market-and-financial-advice>. "Business vs. Ethics: The India Tradeoff?" 2012. Knowledge@Wharton. Ed. The Wharton School. University of Pennsylvania. Web. 1 April 2014. . Kanodia, Shahana Basu. "'Jugaad' culture's hollow innards." 3 March 2013. IndiaToday. Web. 1 April 2014. "Principles of Corporate Governance." 2012. The Harvard School of Law Forum. Ed. Noam Noked. Web. 2 April 2014. . PTI. "Tata group India's most valuable brand; Apple on top globally: Global study." 14 Feb 2014. The Times of India. Web. 1 April 2014. .
The company began in 1987 as a private limited company, then converting to a publicly traded company in 1992. Throughout the next several years, Satyam began expanding to other countries though joint ventures, partnerships, and greenfield investments (Gaur & Kohli, pg 1)
Ferrell, O.C. "Business Ethics." Ethical Decision Making and Cases. Michele Rhoades, Joanne Dauksewicz. Mason: South-Western Cengage Learning, 2011. Print.
The market for IT industry was huge and expanding at a fast pace. However the market leaders were Accenture and IBM which had a negligent market share and rest was captured by small enterprises. Indian companies also ventured in the industry and due to their competition, IT multinational giants had to increase their base in India. Due to high opportunities, attrition rate was also high in this industry. As a result Indian companies like Wipro, Infosys increased their base level salaries. During this phase, Indian economy was transforming towards an era of information and knowledge. This can be seen from the fact that contribution of services towards the economy’s GDP was higher than 18% in 2001 as against in 1980. No other industry had done better standing against global competition. The annual exports had always been over 50% over a decade. U.S.A. share represents highest with 61% and about a third of Fortune 500 companies outsource their software work to India. To foster development, Indian government has taken a number of steps like liberalization of policies and providing necessary capital and infrastructure to foster growth. Thus Indian environment has been conducive for growth. (Ref: Indian Embassy.org) Competitor analysis- The market for IT industry was fairly competitive with IBM and Accenture as global leaders and rest of the market was pretty diffused. IBM and Accenture had strong brand and a global presence with a large customer base. They also offered panoply of services viz. technology implementation, business consulting, offshore services, customer relationship management etc. Both offered breadth and depth of services. IT market in India offered technical and business consulting with Tata Consultancy Services which was the market leader in IT exports and Wipro Technologies and Infosys being other major market players. TCS offered consultancy services, IT services, asset based solution etc. Wipro was third largest IT provider with service offerings in IT consulting, software solutions, BPO etc. Both had a strong global presence. Intensity of Rivalry: Rivalry amongst competitors was pretty intense as can be seen the Indian competition caused IBM to increase their presence in India. However leaders like IBM and Accenture had a wide range of service offerings so competition was only amongst few sectors. Rivalry was to hire the top talent as human capital is the most important thing in the IT sector. This is the reason that attrition rate lead to a rise in pay packages.
Bibliography: Turnbull, S. (1997). Corporate governance: its scope, concerns and theories. Corporate Governance: An International Review, 5 (4), pp. 180--205.
The Harvard Business School case study Silvio Napoli at Schindler India summarizes the various problems and issues facing Schindler India regarding its entrance into the new foreign market, India. Schindler Holdings Ltd. is a Swiss-based manufacturer of escalators and elevators which is looking for potentially entering into the Indian elevator market. Main executive committee members predicted that the Indian industry showed great promise in terms of future growth potential. The company’s objective was to manufacture standardized elevators at a cost lower than current customized elevator market. Silvio Napoli, who is vice president of Schindler in Asia, was chosen to lead the new entry into India. To successfully enter and penetrate the Indian market, Silvio and company needed to consider a variety of factors like but not limited to: mode of entry and type of strategy to implement, organizational structure, outsourcing and logistics approaches, marketing, and domestic and global hiring procedures.
Indian Government in order to save Satyam from the same fate as that of Enron and World Com appointed a new Board of Directors for the company whose main goal was to sell the company within 100 days. Finally on April 13, 2009 Tech Mahindra bought Satyam for $1.13 per
Bharti Airtel Limited Bharti, based in Delhi, India is a family owned telecommunication business, founded by Sunil Mittal in 1995. Mittal saw an opportunity for his business in the Indian telecom market, allowing companies to bid for a government license to operate the first private mobile telecom service in Delhi. Bharti won the bid and became the first private provider in Delhi. In 1998, they were the first to make a profit from their services in India. As Bharti continued to grow, they began gaining licenses for mobile telecom operations in 15 out of 23 geographical regions also called circles.
Small is not a word Dhirubhai Ambani knew. Born on December 28, 1932 Dhirubhai Ambani a man out of nowhere with just a few dreams in his head goes on to head the biggest company from India. Isn’t that wonderful? He built India's largest private sector company. Created an equity cult in the Indian capital market. Created “Reliance”, the first Indian company to feature in Forbes 500 list. He began his journey in extremely trying circumstances to blossom into one of the greatest success stories in the annals of Indian industry. Lets take a look at his journey that depict the life of Dhirubhai Ambani, beginning with his childhood in the village of Chorwad to his early youth in the 1950s as a migrant worker in Aden, then a British Colony, to his later years as one of India's great industrial visionaries
[6] Kripalani, Majeet & Egnardio, Pete. The Rise Of India. Business Week Online. December 8, 2003. http://www.businessweek.com/magazine/content/03_49/b3861001_mz001.htm
During the next several years, however, PCs Ltd. was hampered by a lack of money, people, and resources. Michael Dell sought to refine the company's business model, add needed production capacity, and build a bigger, deeper management staff and corporate infrastructure while at the same time keeping costs low. The company was renamed Dell Computer in 1987, and the first international offices were opened that same year. In 1988 Dell added a sales force to serve large customers, began selling to government agencies, and became a public company¡Xraising $34.2 million in its first offering of common stock. Sales to large customers quickly became the main part of Dell's business. By 1990 Dell Computer had sales of $388 million, a market share of 2-3 percent, and an R&D staff of over 150 people. Michael Dell's vision was for Dell Computer to become one of the top three PC companies.
Down to business approaches, such as being one of the first companies to make e-commerce and internet usage a centerpiece in their corporate strategy has also benefited the personal computer leader. Dell Case Analysis, 2004. The explosion of business over the internet has helped Dell tremendously. As they followed the vision of built-to-order personal computers and direct sales from the company's inception, the internet gave computer buyers a more convenient medium to purchase Dell computers. The quality control measures Dell undertakes also promote customer loyalty.
Background of the company TATA Motors, founded by India’s first licensed pilot J.R.D Tata (Encyclopaedia Britannica Inc 2014) has been seen to have revolutionized the face of India. With the history of India’s automotive industry in terms of production and growth seeming relatively bleak and slow, TATA Motors, formerly known as TELCO (TATA Engineering and Locomotive Company) and one of “the hundred operating companies” of the TATA Group has seemed to crack this shell since becoming established in 1945 resulting in becoming not only an emergence in India, but around the globe with its status being “listed in the New York Stock Exchange” as an international automobile company as of September 2004 (TATA Motors 2014). Tata Motors holds its main
The firm’s formation was strategic with Mr. Ravi Singhania approaching Ms. Manju Mohotra to form a partnership. This approach created diversity because each party had a different background and experience. Once the company had established roots in India, these partners made an effort to engage the company in international market opening up a branch in New York under the name Singhania & Company. This created a rich platform for the firm to acquire international experience that would be fundamental in enriching the company’s quest to provide legal advice to multinational corporations that were investing in India.
Securities Commision Malaysia. (2014). General Article: Corporate Governance. Retrieved March 26, 2014, from Securities Commision Malaysia: http://www.sc.com.my/corporate-governance/
The company did not show much success until its expansion in 2005. In 2005, Lenovo acquired IBM’s “ThinkPad” business (Martin, 2014). This acquisition was a major strategic move for the company as it allowed the company to gain access to the foreign markets and consumers. It also allowed the company to signficantly increase its product offering in terms of volume. By acquiring IBM’s personal computer business, the company became the third largest PC manufacturer in the world (Martin, 2014).