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Deepak Nitrite Case

Deepak Nitrite has grown impressively through diversification and internationalization strategies like acquisitions and restructuring. According to managing director Deepak Mehta, the company's growth resulted from deep thinking, strategy, and planning. Environmental scanning allowed the company to foresee threats from trade policy changes, enabling it to implement strategies to turn threats into opportunities.

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nayan ahirrao
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1K views

Deepak Nitrite Case

Deepak Nitrite has grown impressively through diversification and internationalization strategies like acquisitions and restructuring. According to managing director Deepak Mehta, the company's growth resulted from deep thinking, strategy, and planning. Environmental scanning allowed the company to foresee threats from trade policy changes, enabling it to implement strategies to turn threats into opportunities.

Uploaded by

nayan ahirrao
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Case Summary:

Chimanlal K Mehta, an entrepreneur who saw an opportunity in India's drive toward self-sufficiency
and import substitution and relied on his trading and manufacturing experience, ventured into the
chemicals industry in 1970.

Deepak Nitrite has grown impressively through the prudent application of integration-related
diversification and internationalisation strategies through acquisition and restructuring.

According to managing director Deepak Mehta, the company's growth was the result of a process of
deep thinking, strategy, and planning. Environmental scanning resulted in foreseeing the threats
posed by a dismantled duty regime, so this company set about implementing strategies to turn these
threats into opportunities.

1. In the context of the Deepak Nitrite case, explain the concept of strategy implementation in an
organization.

Ans:

The strategic approach was to capitalise on the company's strengths in niche segments of the
chemicals market. Leverage strong R&D and a strong lab to bring the strength up to global levels
and work towards a leadership position.

Three implementation themes of strategy:

1) Activating strategy:

Deepak Nitrite must deal with a slew of government agencies in order to put procedures in place.

Raising finance, for example, has resulted in a referral to SEBI. The export and import regulatory
authorities are constantly contacted.

ii) Managing strategy:

The company has generated resources by raising funds in the capital markets on the strength of its
good reputation, obtaining internal accruals loans from commercial banks and financial institutions,
and selling factory land in Pune.

iii) Achieving effectiveness:

Deepak nitrite's success can be attributed to its focused strategy and implementation capabilities. It
has worked on a number of R&D projects over the years to hone its skills in transferring products
from the lab to production and then to the market.

2. Picking up data from the case, demonstrate how strategy formulation and strategy
implementation are independent?

Ans:

It is true that strategy formulation and strategy implementation are separate processes.
If we talk about the case strategy formulation, that company's capital will rise. The company will
raise capital through the capital market. This example demonstrates how strategy formulation is
dependent on implementation.

If a company wants to be effective, it must develop strategies. However, simply developing


strategies will not result in effectiveness. Following the implementation of these strategies,
effectiveness will be realised.

Strategy implementation will be hampered if gaps in strategy formulation exist.

3. Point out instances from the case which illustrates the role of regulatory mechanisms in
procedural implementation of Deepak Nitrite could you add more elements that you think
would be relevant to the company?

Ans:

In this case, it is demonstrated that the role of effective implementation is evident in Deepak
Nitrite's approach, as explicitly stated in its annual report, which states that winning strategies
involve setting goals and implementing them through concerned action while mobilising the
necessary resources.

The regulatory mechanisms for trade, commerce, and industry in India encompass a broad legal
framework that includes the Indian constitution, the directives principles, central laws, state laws,
general laws, sector specific laws, general laws, sector, and the rules and procedures prescribed by
the implementing authorities at various levels of government.

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