1. Using appropriate concepts and theories from Block 2, Session 2, identify and discuss three main threats and three main opportunities that should be considered by Apollo in expanding its global reach within southeast Asia and Eastern Europe. (25 marks) Corporate watch: Apollo Tyres accelerates global roll-out Financial Times. Avantika Chaos. December 5, 2012 It's not only the biggest companies in China, India Brazil and other emerging me that are suming themselves into multinational- operators. With annual revenues of around 525 Apollo Tyres is only the world's sehargest tyremaker by sales, but still going global. The group is currently investing $1bn on worldwide expansion over the next five years, aiming to be one of the world's top ten tyre companies by 2017. Since was established in 1972. Apollo has grown to supply 118 countries with manufacturing facilities in India. Sou Africa and the Netherlands producing a total 1505 tonnes of tyres per day. Indianow.corbules only 67 per cent of revenues with Europe putting in 23 percent and South Africa 10 percent. This global expansion has been boosted by acquisition in 2006. The company bought Dunlop Tyres in South Africa, giving Apollo production facilities in the country and nights to make the Dunlop brand across 32 Aerican nations. In 2009 the company spent $300m on Dutch Vredes Banden BV, which has a work across Earope. This International growth will continue with the latest son investment programme Apollodies rumours that is looking to buy US-based Cooper Tre the world ninth-biggest tyreme by The current focus is on east Asia. Neeraj Kanwar, the company's vice chairman and managing director es beyondrics "Our first priority is southeast Asia where we see a market. We have spotted some greenfield opportunities to create brand new actories in Indonesia Thailand." The first phase of the strategy which will be completed in three years, involves a $300m plant with capacity to produce 16,000 passenger cardiores and 1.500 truck and bus phase involves a $200m plant which will take the production capacity to 24.000 passenger cards and 3.000 truck and bus radials per day. Eastern Europe is the other target. Kanwar eine We had looked Europe a year ago. Poland or Hungary in particular, but put that on the backburner given the economic crisis in the eurozone. So in two or three years we now where Europe is going and we will open new greenfield Apollo aims to spend $350m ona plant producing munits every year. But until returns 50m will be spent on ending the existing facility in the Netherlands to produce 75mtres per year, up from Gm. This international expansion antan automatic way of boosting prof. Apolo's South African business made a netloss of R584m (10.8m) in 2011-2012 on sales of Rson, and the company considers instability and currency effects in South Africa a major risk. Kanwar Sou Are hasn't been syarat to do in November Morgan indded Apollo in the trend for Indian camers making foreign Apollo's sometom 0.6 in the 2008 fiscal year to 1 in 2012. In the 2015 12 year Apollo recorded consolidated proof Rs4 ton on Rs 121 Son of reven.com with profits of previous year. Margins were squeezed by a 32 percent rise in raw material (rubber) prices against a backdrop of waning global demand and a sharp weakening of auto sales growth in India. Michael Foundoukidis, an automotive sector equity analyst at Natixis told beyondbrics "Given Apollo's positioning, which isn't premium, they suffer more from raw material volatility Rubber prices in particular have gone up significantly since 2007 but raw materials have become cheaper again this year so Apollo's financials may improve with that." Globalisation takes time. Despite the international expansion, India is likely to remain the mainstay of Apollo's business for a few years yet. The shares this year have moved broadly in line with the Indian market - Apollo Tyres have gained 30 per cent in the year to Rs84.60, compared to a 28 per cent gain in the Nifty Fifty index. But if foreign revenues, and, especially profits, grow as planned investors may begin to see Apollo as less Indian and more international Chilkotl, A. (2012) Corporate watchApollo Tyres accelerates global roll-out, Financial Times, 5 December. [Online]. Available at https://www.ft.com/content/Bac1d714-8d30-3257-856 085514e6. (Accessed 25 October, 2019) Apollo launched Apollo Truck Tyre Zone - is first tyre service centre in Malaysia in 2019. This centre is equipped with modem automotive technologies such as a computerised truck tyre alignment machine, automatic tyre changer and nitrogen inflator in order to reduce customers maintenance cost and fuel consumption and provide customers with convenient access to its extensive services It also has a training centre to assist customers in their purchase decision process. This centre is managed by Sin Chu Hin one of the top tyre specialists in the southern region of Malaysia, with 80-year long local experience for a range of services and solutions for fleet customers in Malaysia. This partnership shows Apollo's commitment to deliver quality products and services to the Malaysian market. In the meantime, Apollo Tyres has appointed Benoit Rivallant as president of its European operations with more than 30 years of rich experience in Europe, Asia and Oceania in the Tyre Industry, Rivalant has been the driver of Apollo Tyres's successful introduction of commercial vehicle tyres in Europe. With this appointment, he will further lead Apollo's growth strategy in Europe