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Tuesday, February 16, 2010

Corporate Espionage by Corporate Conspirators


It’s about a country where there were only few automotive companies. Most of these companies had started with technical collaborations with more known and more technically advanced companies of the developed nations. At the conclusion of the period of technical collaborations, these companies had already indigenized the manufacture of those products and had in a way become autonomous.

Since only few companies were in the fray, there was almost no competition among them. It was a seller’s market in monopolistic business conditions. Each had gained a comfortable share of business and each company seemed complacent with its lot.

Among these automobile companies, companies ‘A’ and ‘B’ were manufacturing couple of variants of commercial vehicles (trucks). Whatever they produced was immediately grabbed by the ever so hungry customers and the products were sold at an illegal premium price. Companies ‘A’ and ‘B’ and their top bosses were earning unimaginably large sums of money practically without any need to really manage anything. All of them were enjoying a deep slumber and getting rich while dreaming.

And their deep sleep was shattered by announcement of entry of a new player (the new player was in some other business and was pretty successful at that). The new player, the company ‘C’ had entered into collaboration with one world class company ‘D’ whose commercial vehicles were a rage and could be seen on the roads of most of the countries all over the globe.

The top executives of ‘A’ and ‘B’ had reasons to worry since in whichever nation company ‘D’ set up its manufacturing plants on their own or in joint venture or technical collaboration with any local company, its products had literally killed the other existing products and their producers had to close down their shops. With that kind of reputation of the commercial vehicles designed and developed by company ‘D’, it was reasonable to feel worried.

In the mean time company ‘C’ was recruiting engineers and managers at various levels from other automotive companies of the country, mainly from companies ‘A’ and ‘B’. The construction of new manufacturing plant of company ‘C’ was already in progress and the machines and assembly line were being installed with the help of their collaborator i.e. company ‘D’.

Company ‘C’ commissioned a highly sophisticated security system managed by the country’s top notch security agency. It was necessary for them to do so since the products they were going to manufacture were very different and superior from the existing commercial vehicles being sold by companies ‘A’ and ‘B’. Also, the production processes were unique. Company ‘C’ could not afford their strategic advantage of their differentiating products and processes to be easily passed on to its competitors on the platter. They could not allow a stranger to walk into their factory premises and pick up this intelligence and knowledge. They were 100% on the guard.

Under guidance of its collaborator ‘D’, company ‘C’ had just launched the first pilot production of their uniquely superior commercial vehicles.

While these important project activities were under way in company ‘C’, a secret telephonic conversation took place in one of the offices of the factory. It was the cabin of the senior service engineer. At the other end of the telephone line was the vice president (R&D) of company ‘B’. He was instructing the senior service engineer of company ‘C’ in a hush hush tone, “You are taking too much time in sending the information on the hydraulic system and the engine- you are damn slow. We just cannot afford these delays. We were one up on company ‘A’ till date on understanding the configuration of your trucks but this morning I got a call from our senior designer posted in the R&D department of company ‘A’ that they (i.e. company ‘A’) have already received some very important information about the strategic systems of your truck that you have not been able to send me till date.”

The senior service engineer looked around to see if there wasn’t anyone in his vicinity and continued, “Sir, that’s impossible. The security here is so tight that no bird can fly into the premises, forget about any human being. And I have surveyed each and every person in the employment of our company here (meaning company ‘C’) and I can say with 100% guarantee that no agent of company ‘A’ is active inside our premises here. Company ‘A’ just cannot get any information from here.”

Then, vice president (R&D) of company ‘B’ who was on the other end of the telephone line lost his patience and scolded him, “You are a fool. Don’t underestimate company ‘A’ in these matters. No less than their deputy managing director had already entered your premises yesterday and he was there the whole day studying you commercial vehicle which was lying in the knocked down condition. He went from shop to shop and visited your assembly line and various stores. The huge damage is already done. They know more than us about your vehicle and processes. My boss here is highly critical of our inefficiencies in this matter. Tighten up your belt and send the information in the fastest possible ways. We are paying you the enormous salary and perquisites- what for?”

The senior service engineer enquired hurriedly, “How could the deputy managing director of company ‘A’ enter our factory premises here?”

Vice president (R&D) of company ‘B’ replied, “He came in the disguise of a truck driver. He drove the truck inside your premises after the detailed security checks at the factory gate. He was driving the truck that brought the imported components of your products in semi knocked down conditions. The truck belongs to a truck operator who is providing the logistics to company ‘A’ for past more than 22 years. The truck operator is loyal to company ‘A’ and now also started doing business with company ‘C’ under a different identity of his firm run by his younger brother.”

The conversation ended. No one else in company ‘C’ was aware of this conversation.

Related Books

1. "Sensitive Stories of Corporate World" (available from Amazon, get it online as a paperback or an eBook)

Read many more management anecdotes/management case studies in the eminent author Shyam Bhatawdekar's best selling book "Sensitive Stories of Corporate World" available online from Amazon as an eBook as well as a printed book.

2. "Sensitive Stories of Corporate World (Volume 2)" (available from Amazon, get it online as a paperback or an eBook)
Read many more management anecdotes/management case studies in the eminent author Shyam Bhatawdekar's best selling book "Sensitive Stories of Corporate World (Volume 2)" available online from Amazon as an eBook as well as a printed book.
Other Related Reading
For everything you wanted to know on building leadership and management, refer Shyam Bhatawdekar’s website: http://shyam.bhatawdekar.com/
Also, refer our High Quality Management Encyclopedia at: http://management-universe.blogspot.com/
For “out of box thinking” articles by Shyam Bhatawdekar, refer: (Out of Box Ideas) http://wow-idea.blogspot.com/
Read other blogs of Shyam Bhatawdekar at: (Home Page for Writings of Shyam Bhatawdekar) http://writings-of-shyam.blogspot.com

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