Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Authors: Keith Perks (University of Brighton); Garry Smith (University of Brighton)
Published in: 1996

Abstract

The case study is primarily focused on the issues surrounding the negotiation, implementation and final cessation of the joint agreement between the Rover Group and the Indonesian Government to develop a national car. Within the case the two parties to the agreement are also involved in another programme to develop Land Rover Defender, which ends in the project being transferred to a joint venture with a private Indonesian company. The car programme is intended to be used as a base for students to get involved in a simulation of the implementational issues and difficulties associated with private-public joint ventures, such as cultural, political factors. The case also gives the students and the tutor an opportunity to explore the complexities of choices and trade-offs involved in deciding which mode of international market entry to use. In this case the Rover Group are constrained by the level of investment required, but is the joint venture the most appropriate? The case also allows participants to probe the issue of Indonesia as part of a regional strategy for ASEAN countries. Is Rover making a short term tactical, opportunistic or strategic decision in its agreement with the Indonesian government? The case also adds another dimension, in that students could probe the implications for the Indonesian project in the light of the BMW takeover of the Rover Group in 1994. Finally, given that the agreement is broken in October 1995 and a consortium of Australian automotive companies ''pick up'' the project, students also have an opportunity to discuss the options open, such as does Rover now search for a private partner or do they attempt to continue to be involved in the national car programme, in another role? The detailed history, evolution and development of the case and car programme is based on extensive interviews and collaboration with the Overseas Business Strategy Manager for Rover, who was heavily involved in the Indonesian project.
Location:
Industry:
Other setting(s):
1993-1995

About

Abstract

The case study is primarily focused on the issues surrounding the negotiation, implementation and final cessation of the joint agreement between the Rover Group and the Indonesian Government to develop a national car. Within the case the two parties to the agreement are also involved in another programme to develop Land Rover Defender, which ends in the project being transferred to a joint venture with a private Indonesian company. The car programme is intended to be used as a base for students to get involved in a simulation of the implementational issues and difficulties associated with private-public joint ventures, such as cultural, political factors. The case also gives the students and the tutor an opportunity to explore the complexities of choices and trade-offs involved in deciding which mode of international market entry to use. In this case the Rover Group are constrained by the level of investment required, but is the joint venture the most appropriate? The case also allows participants to probe the issue of Indonesia as part of a regional strategy for ASEAN countries. Is Rover making a short term tactical, opportunistic or strategic decision in its agreement with the Indonesian government? The case also adds another dimension, in that students could probe the implications for the Indonesian project in the light of the BMW takeover of the Rover Group in 1994. Finally, given that the agreement is broken in October 1995 and a consortium of Australian automotive companies ''pick up'' the project, students also have an opportunity to discuss the options open, such as does Rover now search for a private partner or do they attempt to continue to be involved in the national car programme, in another role? The detailed history, evolution and development of the case and car programme is based on extensive interviews and collaboration with the Overseas Business Strategy Manager for Rover, who was heavily involved in the Indonesian project.

Settings

Location:
Industry:
Other setting(s):
1993-1995

Related