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Hozford Inc.: Challenges of Setting Up a Research & Development Facility in India

CASELET, STRATEGIC MANAGEMENT
ET Cases, 5 Pages

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Hozford Inc.: Challenges of Setting Up a Research & Development Facility in India

 

Sipping coffee on a cold evening at his guesthouse in Kulu, Dr. Arnab Banerjee (Dr. Arnab) was seriously reflecting on his new job as R&D Director that he had recently accepted. He had won this job against stiff competition from within and outside the organization. Feeling satisfied at his achievement he slowly began to mentally plan for the days ahead. Dr. Arnab was pondering over the recently acquired huge assignment from the multi-billion dollar giant Hozford Inc. (Hozford) He was also thinking of the ramifications of the organizations move to invest billions of dollars in the setting-up of a R&D facility in India. He was aware that India was on the road to becoming a major superpower. Hence, state-of-the-art technology had to be accorded due priority. Technological leadership necessitated foresights on technological developments. Accordingly, the thrust on technological forecasting was likely to grow dramatically. Technological forecasting would be better facilitated through a strong drive towards greater networking between academia, research organizations and industry.....................

Teaching Note Preview

Hozford Inc.: Challenges of Setting Up a Research & Development Facility in India

 

Synopsis

Hozford Inc. is a large multinational corporation headquartered in Montreal, Canada that manufactures agricultural and construction machinery. It was considering opening a huge R&D facility in India. The management of Hozford recognized the need and identified the potential of such a facility in India. However, is the move the right step at this point of time? This caselet illustrates challenges of making R&D work in India. It demands inspired leadership, quick execution, motivated teams and the thoughtful attention to expectations of senior management. The caselet can be used to demonstrate the challenges that multinationals face while planning a research unit in India. The caselet will enable discussant to explore alternatives around business model innovation and bring about pros and cons of each  alternative.

Expected Learning Outcomes

  • • Come out with a long term R&D plan linked to Corporate Strategy
  • • Develop a simplified unifying corporate technology platform
  • • Building a highly functional, performance oriented R&D facility for the organization

 

Case Positioning and Setting

This caselet can be used in MBA or other graduate level programs in Strategic Management course.

Assignment Questions

  • I. Will the investment in R&D facility in India payoff and give the expected results or this will be a sunk cost never to be recovered?
  • II. Should Hozford Inc., wait and observe and consider the situation of the market to take a decision to put up a full-fledged R&D?
  • III. .........

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Abstract

Hozford Inc., is a large multinational corporation headquartered in Montreal, Canada that manufactures agricultural and construction machinery. It is considering opening a huge R&D facility in India. The management of Hozford is considering opening a huge R&D facility in India and identify the potential of such a facility in India. However, is the move the right one at this point of time? Most companies burn billions of dollars on technology innovation and R&D without getting the best returns from this  investment. It is important for Hozford to establish clear relation between corporate strategy and company’s R&D spending. It wants to use analytics to make smart  decisions at all levels of the company, encourage innovation and build newer competencies. India is seen as a destination, which can take the company to new heights in their R&D endeavours and drive technology and innovation. This caselet illustrates challenges of making R&D work in India. It demands inspired leadership, quick execution, motivated teams and the thoughtful attention to expectations of senior management.



Pedagogical Objectives
The caselet is structured to achieve following learning/teaching objectives:

  • To come out with a long term R&D plan linked to Corporate Strategy
  • To develop a simplified unifying corporate technology platform
  • Building a highly functional, performance oriented R&D facility for the organization

Case Positioning and Setting
This caselet can be used in MBA or other graduate level programs in Strategic Management course.



This Case Pack Includes:
- Abstract
- Caselet
- Teaching Note (**ONLY for Academicians)
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