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M&M is a subsidiary of the Mahindra group which is a multinational Indian auto manufacturing company based in Mumbai was founded by K.C and J.C Mahindra along with M.G Mohammed in 1945 as Mahindra & Mohammed. Due to the independence ownership was shifted and was named Mahindra and Mahindra in 1948. They started as a steel trading company. With the growing demand for utility vehicles they expanded to manufacturing vehicles and later in to different segments of auto manufacturing into different industries like hospitality, IT, finance etc. The company has been the leader in both this segments have huge market share. They have expanded globally with assembly units and manufacturing and exports number of products and services. They have had partnerships, acquisitions and joint. The company achieved many awards and milestones.
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Key Success Factors:Have achieved a brand name and market leader position so able to manage low cost and have been No1 with high market share and global presence Resource analysisTangible resources: 1. Physical:
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High inventory capacity Own Infrastructure Company, IT Company and Financial service company. High quality equipments for production Own OEMs
3. Technological: State-of-the art and technologically advanced equipments. Emphasizes on finding alternate fuel technology
6. Fuel:
4. Production: Use methodologies like TQM,QC story and QC tools, Six Sigma, DOE and TPM Process control in production
5. Raw materials: Manufactured by the M&M subsidiary Steel is the parent manufacturing company of this organization
Set up web site to provide latest information Indias 1st tractor with turbo technology Developed own engine oil jointly with Servo
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3. Human: Attracts pool of talent from rich background and senior managers from diverse companies. Proper succession and career planning.
4. Brand Name/Goodwill:
Market Leader High quality standard Meeting customer needs (mahindra and mahindra ltd, 2011)
Capabilities: Tangible resources and intangible resources have helped be the leader and have a competitive advantage. Core Competences:
Competitive Advantage:Due to widespread network, own financing arm, brand name, high resale value, pricing. (Porter, march-april;1979) Resource Analysis PROFIT Analysis Physical resources- Used to accomplish their goals. Reputation- Among top 3 tractor selling companies in the world. Organizational- Highest rating in Total Quality Management. Financial- Growing at steadily pace and have a well managed assets and liabilities Intellectual Property- Employees are efficient and competent. Technological- Innovative products in product line. MoneyControl.com. (2012, january 6) VRHN Analysis:
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The corporate Portfolio:BCG Matrix (Appendix 1) M&M tractors would fall under the cash cow quadrant since they have high market share but the market growth is declining therefore its a cash cow. (Jr, 2008)
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Multifactor Matrix (Appendix 12) M&M tractors a high on business strength but on the industry attractiveness it is in the medium since the industry is losing due to decreasing market growth. (Mahindra Tractors is one of Indias most innovative cos, 2011) Arthur D Littles SBU System (Appendix 13) Since the company has been in the industry for a number of years but still it has been able to generate sustainable revenue to the organization therefore its in the maturity stage while it the market leader and has a large market share in the tractor industry it is having a strong competitive position therefore it lies in the Strong and maturity matrix. Corporate Strategy:Market Development: Acquired Chinese tractor company Jiangling in pursue of entering new international market. Diversified: Vertically 1) Backward by establishing component companies 2) Forward by setting up finance arm. Horizontally they diversified in the agricultural business (Jones, 2004) Value Net Model:M&M is the champion because it has a well integrated supply chain and majority of its raw material is from its component division and they have a high power over its suppliers therefore
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Bibliography
Jr, J. A. (2008). Stratergic Management Formulation, Implementation & Control. New Delhi: Tata McGraw-Hill Publishing Company Limited. Scholes, G. J. (2006). Exploring Corporate Strategy. New Delhi: Dorling Kindersley (India) Pvt Ltd. (2011). Retrieved from mahindra and mahindra ltd: http://www.mahindra.com/ Mahindra & mahindra Ltd. (2011). Retrieved from Mahindra Rise: http://www.mahindra.com/ Porter, M. E. (march-april;1979). how competitive forces shape strategy. In competitive strategy:technique for analysing industries and competitors (pp. 86-93). Harvard Business Review.
MoneyControl.com. (2012, january 6). Retrieved from M&M sees only 10% growth in the tractor industry in FY13: HYPERLINK "http://www.moneycontrol.com/news/business/mm-sees-only10-growththe-tractor-industryfy13_646120.html" MoneyControl.com. (2009, April 12). Retrieved from M&M tractor sales grows to 29%: http://www.moneycontrol.com/news/business/mm-tractor-market-share-grows-to-29_209740.html
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Singh, D. P. (3 october 2006). Tractor Industry in India. Raipur: Disha Institute of Management and Technology (DIMAT). oswal, M. (2011, july 26). Mahindra & Mahindra. Retrieved from http.//www.businessstandard.com/content/research_pdf/mm_270711_04.pdf Romer, P. (1989). industry analysis: the fundamentals. Increasing Returns and Long-run Growth , 897908. MoneyControl.com. (2012, january 6). Retrieved from M&M sees only 10% growth in the tractor industry in FY13: http://www.moneycontrol.com/news/business/mm-sees-only-10-growththetractor-industryfy13_646120.html MoneyControl.com. (2009, April 12). Retrieved from M&M tractor sales grows to 29%: http://www.moneycontrol.com/news/business/mm-tractor-market-share-grows-to-29_209740.html
Menon, J. (2011). Indian automotive aftermarket witness humungous growth. The Automotive Horizon , 13. Jones, C. W. (2004). Stratergic Management An integrated Approch. New Delhi: Biztantra. Mahindra Tractors is one of Indias most innovative cos. (2011, Aug 11). Retrieved from Moneycontrol.com: http://www.mahindratractorworld.com/pdf/mahindra_innovative.pdf Oswal, M. (2011, july 26). Model refreshes, new segments drive growth, market share. Retrieved from Mahindra & Mahindra: http://www.businessstandard.com/content/research_pdf/mm_270711_04.pdf Mahindra Rise . (2011). Retrieved from Mahindra & Mahindra Ltd: http://www.mahindra.com/What-We-Do/Farm-Equipment/Companies/Mahindra-andMahindra-Farm-Equipment-Division Quantitative Strategic Planning Matrix (QSPM). (2012). Retrieved from Maxi pedia: http://www.maxi-pedia.com/quantitative+strategic+planning+matrix+QPSM Weihrich, H. (n.d.). The TOWS Matrix --- A Tool for Situational Analysis. Retrieved from Long Range Planning Heinz Weihrich: http://www.usfca.edu/fac_staff/weihrichh/docs/tows.pdf Management Strategy Page 10
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