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MARRIAGE AND DIVORCE

MARRIAGE AND DIVORCE

TODAYS HEADLINE… RETAIL MIS-MANAGEMENT….
I recall that when I had just retired in May 2009,in one of my first assignments in a college,I had taught RETAIL MANAGEMENT to PGDBM Students.
I remember having discussed the then famous example of BHARTI-WALMART Tie-up (JV / Franchise) in my class.
Alas today’s newspapers are full of break-up of this venture.
Here is one such comment of mine written to a financial daily……
MARRIAGE AND DIVORCE
Dear Sir,
This refers to your lead news item titled: ” Walmart and Bharti call off their retail JV” (BS 10th Oct 2013).
The marriage, break-up and divorce story of Bharti nd Walmart makes an excellent case study for discussions in Retail Management courses of B Schools.
Franchises and Joint Ventures often fail soon after their initial honeymoon period, due to various reasons. Several books and lengthy articles have been written on this issue.
There is a popular term called “the seven year itch” in psychology that suggests that happiness in a relationship declines after around year seven of a marriage. In the instance case the itch seems to have started in six years. The JV came into effect in 2007 and has ended in 2013.
Lets hope other companies, MNCs and JV partners will learn some useful lessons from this venture which began with a lot of fanfare but sadly ended in a fiasco.
J S BROCA, NEW DELHI