Product details

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Abstract

The case is about a hard-core engineering company Thomrich Private Limited, that entered into the tractor segment in 1992 when another company KCP had already established its reputation as a sole reliable brand. Unaffected by the competition, they started their own brand of tractors and soon after 3 years they started manufacturing cultivators. With liberalisation and globalisation, Thomrich did not remain untouched by the surmounting pressures of multinational corporations venturing into the Indian market. The rumours of Elegators, the world''s number 1 tractor manufacturer foraying into Indian market gave them sleepless nights. Being proactive, the company decided to enter into a collaborative venture with Wooge of France, the world''s number 2 tractor manufacturer. The company had well-defined human resources (HR) policies, within which all the HR processes were taken care of. Since 2002, the unit had seen 12 percent of executive turnover, which before was just 3 percent. Top management were confident of the high degree of employee loyalty and believed that employees were emotionally attached to the unit. At this juncture, they fell trapped in the volatile situation where multinational corporations were offering lucrative packages and challenging assignments to the executives. Thomrich-Wooge Private Limited could not afford such lucrative packages as it had to succumb to market conditions, which were already tight with too many competitors, prices slashing down, customers becoming demanding and choosy, and making inputs scarce for the unit.
Location:
Industry:
Size:
Large
Other setting(s):
2003

About

Abstract

The case is about a hard-core engineering company Thomrich Private Limited, that entered into the tractor segment in 1992 when another company KCP had already established its reputation as a sole reliable brand. Unaffected by the competition, they started their own brand of tractors and soon after 3 years they started manufacturing cultivators. With liberalisation and globalisation, Thomrich did not remain untouched by the surmounting pressures of multinational corporations venturing into the Indian market. The rumours of Elegators, the world''s number 1 tractor manufacturer foraying into Indian market gave them sleepless nights. Being proactive, the company decided to enter into a collaborative venture with Wooge of France, the world''s number 2 tractor manufacturer. The company had well-defined human resources (HR) policies, within which all the HR processes were taken care of. Since 2002, the unit had seen 12 percent of executive turnover, which before was just 3 percent. Top management were confident of the high degree of employee loyalty and believed that employees were emotionally attached to the unit. At this juncture, they fell trapped in the volatile situation where multinational corporations were offering lucrative packages and challenging assignments to the executives. Thomrich-Wooge Private Limited could not afford such lucrative packages as it had to succumb to market conditions, which were already tight with too many competitors, prices slashing down, customers becoming demanding and choosy, and making inputs scarce for the unit.

Settings

Location:
Industry:
Size:
Large
Other setting(s):
2003

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