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
Dear Readers,
Some minor additions have been made by the Editor :
So here is the text for ready reference without going to the link:
This refers to your news story titled “Wal-Mart, Bharti call off JV” (FE, October 10). The marriage, break-up and divorce story of Bharti and Walmart makes an excellent case study for discussions in retail management courses of business schools in India. Walmart said it plans to continue to grow its “business while working with the government and interested stakeholders to create conditions that enable foreign direct investment in multi-brand retail.” Its Asia president and CEO Scott Price said, “Given the circumstances, our decision to operate independently will be beneficial to both parties.” Here it must be noted that franchises and joint ventures often fail after their initial honeymoon period, due to various reasons. Several books and extensive articles have been written on this particular issue. There is a popular term called “the seven year itch”, which suggests that happiness in a relationship declines after around seven years of relationship. In the instant case, the itch seems to have started in six years (the joint venture came into effect in 2007 and has ended in 2013). Let’s hope other companies, MNCs and JV partners will learn some useful lessons from this venture that began with a lot of fanfare but sadly ended in a fiasco.
DEAR READERS,
MY COMMENTS LIVE ON FINANCIAL EXPRESS WEBSITE ….
LINK:
http://www.financialexpress.com/news/walmart-bharti-call-off-jv/1180525/0
PLZ GO TO THE BOTTOM OF THE PAGE BELOW THE ARTICLE TO SEE MY COMMENTS.
J S BROCA
NEW DELHI
15TH OCT 2013
Dear Readers,
Here is the link to my comments in BUSINESS STANDARD.Go to the end of the article on the website
and see my comments:
http://www.business-standard.com/article/companies/bharti-and-walmart-call-off-their-retail-jv-113100901018_1.html
J S BROCA
16TH OCT 2013
Dear Readers
My letter has been published in today’s (22nd October 2013) FINANCIAL EXPRESS.
To read my views/comments, go to the following link:
http://www.financialexpress.com/news/letters-to-the-editor-the-sevenyear-itch/1185430
J S Broca
New Delhi
22.10.2013
Dear Readers,
Some minor additions have been made by the Editor :
So here is the text for ready reference without going to the link:
This refers to your news story titled “Wal-Mart, Bharti call off JV” (FE, October 10). The marriage, break-up and divorce story of Bharti and Walmart makes an excellent case study for discussions in retail management courses of business schools in India. Walmart said it plans to continue to grow its “business while working with the government and interested stakeholders to create conditions that enable foreign direct investment in multi-brand retail.” Its Asia president and CEO Scott Price said, “Given the circumstances, our decision to operate independently will be beneficial to both parties.” Here it must be noted that franchises and joint ventures often fail after their initial honeymoon period, due to various reasons. Several books and extensive articles have been written on this particular issue. There is a popular term called “the seven year itch”, which suggests that happiness in a relationship declines after around seven years of relationship. In the instant case, the itch seems to have started in six years (the joint venture came into effect in 2007 and has ended in 2013). Let’s hope other companies, MNCs and JV partners will learn some useful lessons from this venture that began with a lot of fanfare but sadly ended in a fiasco.
JS Broca
New Delhi
24th Oct 2013