Mahindra and Mahindra Report-2021
Mahindra and Mahindra Report-2021
Mahindra and Mahindra Report-2021
Batch
2018-2021
Guided by:-
DEBASIS MOHANTY (Asst. Professor-S.C.M.R)
S.C.M.R)
March 2021
Submitted to:
SCHOOL OF COMMERCE MANAGEMENT & RESEARCH
ITM UNIVERSITY, RAIPUR (CHHATTISGARH) INDIA
Declaration by the Candidate
Date:
Certificate By The Examiner
Introduction
History
Awards
ii. 3 C’s
iii. Environmental
Scanning
vi. Annexures
INTRODUCTION
Mahindra & Mahindra
Mahindra & Mahindra Limited is an Indian multinational automotive manufacturing corporation
Maharashtra India. It was established in 1945 as Muhammad &
headquartered in Mumbai, Maharashtra,
Mahindra and later renamed as Mahindra and Mahindra. It is one of the largest vehicle
manufacturers by production in India and the largest manufacturer of tractors in the world.[3] It is a
part of the Mahindra Group,, an Indian conglomerate.. It was ranked 17th on a list of top companies in
India by Fortune India 500 in 2018.[4] Its major competitors in the Indian market include Maruti
Suzuki and Tata Motors.
Type Public
ISIN INE101A01026
Industry Automotive
Founders J. C. Mahindra
K. C. Mahindra
M. G. Muhammad
Products Automobiles
Commercial vehicles
Motorcycles
Subsidiaries Pininfarina
Mahindra 2 Wheelers
Ssangyong Motors (74.65%)
BSA Company
GenZe
Mahindra Electric
Peugeot Motocycles
Ford India Private Limited (51%)
Website auto.mahindra.com
Mahindra & Mahindra Ltd {M&m} {M&m} is an Indian based company. The company operates in 9
segments automotive segment compromises of sales of automobiles, spare parts and related
services, farm equipment segment comprises of sales of tractors, spare parts and related
services, information technology [IT] services comprises of services rendered for it and telecom,
financial services comprise of services relating to financing, leasing and hire purchase of
automobiles and tractors, steel trading and processing comprises of trading and processing
processi of
steel, infrastructure comprise of operating of commercial complexes, project management and
developmeny, hospitality segment comprises of sale of timeshare, systech segment comprises
of automotive components and other related products and services, and a its others segmrnt
comprise of logistics, after market, two wheelers and investment.
Mahindra & Mahindra Ltd was incorporated on October 2, 1945 with the name Mahindra &
Mohammed Ltd. The company was renamed as Mahindra & Mahindra Ltd in the year 1948. The
steel trading business was commenced in association with suppliers in UK. In the year 1950,
the company commenced the first business with Mitsubishi corporation and 5000 tons of wagon
building plates from yawata iron & steel were supplied.
In the year 1953 otis elevator company was established. A joint venture was made with rubbery
owen & company limited, UK and established a company under the name of Mahindra owen.
In the year 1965, the company entered into light cpommercial vehicles segment. They
established Vickers sperry of india Ltd, a joint ven ture with sperry rand corporation, USA. In the
year 1969, the company entered the world market with export of utilitu vehicles and spare parts.
In the year 1977, international tractor company of india merged with the company and became
its tractor division. In the year 1982, Mahindra brand of tractors were launched and also became
the market leader in the Indian tractor market. In the year 1991, the company introduced
commander range of vehicles in the market. Also, they established Mahindra financial services
Ltd as a wholesale fund provider.
In the year 1995, Mahindra holding & finance limited became a subsid\iary of the company to
carry out business as an investment company. The company made a technical collaboration
with Mitsubishi\ samcor to manufacture the mistsubishi L300. In the year 1996, Mahindra ford
india limited was established ,a joint venture with ford motor company, usa , to manufacture
passenget cars.
In the year 2000. The company set up their first satellite tractor plant at rudrapur. They launched
a new age tractor,Mahindra arjun 605 DI in the market. Also, they launched bolero GLX in
response to the needs of urban consumers.
In the year 2002, the company launched scorpio, a new generation, world class sports utility
vehicle. In the the year 2003, they launched invader, a sporty open top vehicle and maxx pik up.
IN the year 2004. The company launched bolero and scorpio in latin American, middle east and
south African markets.
In the year 2005, the company acquired 51 stake in SAR transmission private limited, a
company engaged in manufacture of gears and transmission shafts.
In the year 2006, the company acquired the stokes group of uk, the largest automotive forgings
company in the uk. They launched the scorpio V series.
In the year 2008, the company introduced fuelsmart system in bolero and scorpio suvs they
entered into jv with tmi pacific in autralia.
History of Mahindra
“Mahindra & Mahindra History
Today, our operations span 18 key industries that form the foundation of every modern
economy:aerospace, aftermarket, agribusiness, automotive, components, construction
equipment, consulting services, defense, energy, farm equipment, finance and insurance,
industrial equipment, information technology, leisure and hospitality, logistics, real estate, retail,
and two wheelers.
Our federated structure enables each business to chart its own future and simultaneously
leverage synergies across the entire Group’s competencies. In this way, the diversity of our
expertise allows us to bring our customers the best in many fields.”
Mahindra & Mahindra was founded as a steel trading company on 2 October 1945
in Ludhiana as Mahindra & Muhammed by brothers Harikrishnan and Jayakrishnan and Jagdish
Chandra Mahindra along with Malik Ghulam Muhammad.[6] Anand Mahindra, the present
Chairman of Mahindra Group, is the grandson of Jagdish Chandra Mahindra. After India
gained independence and Pakistan was formed, Muhammad emigrated to Pakistan.
Muhammad acquired Pakistani citizenship and settled in Lahore, and in 1948 became
Pakistan's first finance minister.
Mahindra & Mahindra Ltd. manufactures different range of automotive vehicles, agricultural
tractors, implements and industrial engines. It is the flagship company of the Mahindra group,
operating in the global tractor industry and the Indian utility vehicles market. Through its
subsidiaries, the company operates in industries such as aerospace, aftermarket, agribusiness,
automotive, components, construction equipment, consulting services, defense, energy, farm
equipment, finance and insurance, industrial equipment, information technology, leisure and
hospitality, logistics, real estate, retail, and two wheelers. The company’s portfolio comprises of
a wide spectrum of vehicles from two wheelers to heavy trucks, SUVs to school buses. Its
services include maintenance and repairs, customization, providing spares, and manufacturing
and engineering. The company specializes in consulting on automotive style, engineering,
computer-aided engineering, and project management. It also offers concept definition for two
wheelers, passenger vehicles, and light and heavy trucks. The company manufactures a wide
range of light commercial vehicles and heavyheavy commercial vehicles that are rugged, reliable,
environmentally friendly and fuel-efficient.
fuel efficient. Through a joint venture with Navistar Inc, it produces
diesel engines for medium and heavy commercial vehicles in India. The company operates
through two segments:: Business and Secondary. The Business segment consists of following
segments. The Automotive Segment comprises of sales of automobiles, spare parts and related
services. The Farm Equipment Segment comprises of sales of tractors, spare parts and related
services.
rvices. The IT Services comprises of services rendered for IT and Telecom. The Financial
Services comprise of services relating to financing, leasing and hire purchase of automobiles
and tractors. The Steel Trading and Processing comprises of trading and processing
p of steel.
The Infrastructure comprise of operating of commercial complexes, project management and
development. The Hospitality comprises of sale of Vacation ownership. The Systech comprises
of automotive components and other related products and services. The Others comprise of
Logistics, After-market,
market, Two wheelers, Investments etc. The Secondary Segment consist of two
segments: Domestic and Overseas. The Domestic segment includes sales to customers located
in India and service income accrued in India. The Overseas segment includes sales and
services rendered to customers located outside India. The company was founded by Jagdish
Chandra Mahindra and Kailash Chandra Mahindra on October 2, 1945 and is headquartered in
Mumbai, India.“
Chronology
In 1948, the company changed its name to Mahindra & Mahindra.[7] They eventually saw a
business opportunity in expanding into manufacturing and selling larger MUVs and started
assembling under licence of the Willys Jeep in India. Soon, M&M was established as the Jeep
commenced manufacturing light commercial vehicles (LCVs) and
manufacturer in India, later comme
agricultural tractors.
Mahindra & Mahindra was incorporated as Muhammad & Mahindra in 1945 by the brothers J.
C. Mahindra and K. C. Mahindra, and Malik Ghulam Muhammad in Ludhiana, Punjab to trade
steel. Following the Partition of India in 1947, Malik Ghulam Muhammad left the company and
emigrated to Pakistan where he became the first finance minister of the new state (and later the
third Governor General in 1951). In 1948, K. C. Mahindra changed the company's name to
Mahindra & Mahindra.
Building on their expertise in the steel industry, the Mahindra brothers began trading steel with
UK suppliers. They also won a contract to manufacture Willys Jeeps in India and began
producing them in 1947. By 1956, the company was listed on the Bombay Stock Exchange, and
by 1969 the company had entered the world market as an exporter of utility vehicles and spare
parts.[5] Like many Indian companies, Mahindra responded to the restrictions of the Licence Raj
by expanding into other industries. Mahindra & Mahindra created a tractor division in 1982 and
a tech division (now Tech Mahindra) in 1986. It has continued to diversify its operations ever
since through both joint ventures and greenfield investments.[6]
By 1994, the Group had become so diverse that it undertook a fundamental reorganization,
dividing into six Strategic Business Units: Automotive; Farm Equipment; Infrastructure; Trade
and Financial Services; Information Technology; and Automotive Components (known internally
as Systech).[7] The new Managing Director, Anand Mahindra, followed this reorganization with
a new logo in 2000 and the successful launch of the Mahindra Scorpio (a wholly indigenously
designed vehicle) in 2002. Together with an overhaul in production and manufacturing methods,
these changes helped make the company more competitive,[8] and since then the Group's
reputation and revenues have risen noticeably. Currently, Mahindra & Mahindra is one of the 20
largest companies in India[9] In 2009, Forbes ranked Mahindra among the top 200 most
reputable companies in the world.[10]
In January 2011, the Mahindra Group launched a new corporate brand, Mahindra Rise, to unify
Mahindra's image across industries and geographies.[11] The brand positions Mahindra
products and services as aspirational, supporting customers' ambitions to 'Rise.'
In April 2012, the Mahindra Group showed interest in purchasing the bankrupt automobile
company Saab, and placed several bids for Saab, though was outbid by Saab's new owner
National Electric Vehicle Sweden.[12]
Awards
2020
fDi Free Zones Of The Year 2020 – ‘Global Free Zones of the Year’ – conferred on
Mahindra World City, Chennai (‘Sustainability’ and ‘Thought Leadership’) and Mahindra
World City, Jaipur (‘Incentives’)
“8th Exceed OHS Award 2020″ – ‘GOLD AWARD’ under ‘OHS Category’ in Real Estate
& Construction Sector – Sustainable Development Foundation” (A unit of Ek Kaam Desh
Ke Naam) – Mahindra World City, Jaipur
‘One of India’s Top Builders’ at the Construction World Architect & Builders Awards 2020
– Mahindra Lifespace Developers Ltd.
Yuva Unstoppable Gratitude Award 2020 – Yuvaunstoppable – Mahindra Lifespace
Developers Ltd.
Corporate Governance and Sustainability Vision Award 2020; 2 categories ‘Sustainable
Performance and Corporate Social Responsibility’ – Indian Chamber of Commerce –
Mahindra Lifespace Developers Ltd.
Green Excellence Awards 2020 – ‘Green Construction Company’ category – iDAC Expo
– Mahindra Lifespace Developers Ltd.
1st in the housing category in the Swatch Bharat drive – Pimpri Chinchwad Municipal
Corporation – Mahindra Lifespace Developers Ltd. – Antheia
2019
Best CSR Impact – UBS Forums – Mahindr World City, Jaipur
SustainAward 2019 category – “Indian large companies” – Indo-German Chamber of
Commerce – Mahindra World City, Chennai
Gold, Best Sustainable Green Initiative (for #IAmGreenArmy) – Asian Customer
Engagement Forum & Awards – MLDL
fDi Global Free Zones of the Year 2019 – bespoke award in Sustainability – fDi –
Mahindra World City, Jaipur
fDi Global Free Zones of the Year 2019 – bespoke award in deployment of technology –
fDi – Mahindra World City, Chennai
2018
ACEF’s Best Social Media Campaign of the Year – ‘#18Daychallenge’ – Mahindra
Lifespace Developers Ltd.
Lighthouse Insights’ Best Social Media Campaign of the Year – ‘#BuildingTogether’ –
Mahindra Lifespace Developers Ltd.
Lighthouse Insights’ Best Twitter Case Study – ‘#18Daychallenge’ – Mahindra Lifespace
Developers Ltd.
Working Mother and Avtar – One of the Top 100 Best Companies for Women in India –
Mahindra Lifespace Developers Ltd.
Construction World Architect & Builder Awards 2018: One of India’s Top Builders in
2018 – Mahindra Lifespace Developers Ltd.
CNBC-AWAAZ Real Estate Awards 2017-18: Best Residential Project under Affordable
Segment – Bloomdale by Mahindra Lifespaces.- Eminente Phase 1 – Bloomdale by
Mahindra Lifespaces
CNBC-AWAAZ Real Estate Awards 2017-18: Best Residential Project under Ultra
Luxury Segment – L’Artista by Mahindra Lifespaces.
5th NDTV Property Awards: Low Cost Housing Apartment Project of the Year – Nova, in
Mahindra World City, Chennai.
10th CIDC Vishwakarma Awards: Green Performance Award and the Achievement
Award for Construction Health, Safety & Environment (3rd prize for Best project in
Safety). – Happinest, Boisar.
10th CIDC Vishwakarma Awards: Achievement Award for Construction Health, Safety &
Environment (2nd prize for Best project in Safety). – Vivante, by Mahindra Lifespaces.
Digital Marketing Effectiveness (Gold) – Asian Customer Engagement Forumv – Social
media campaign #18Daychallenge – Mahindra Lifespace Developers Ltd.
Best use of medium length video (Silver) – Lighthouse Insights – Social media campaign
#BuildingTogether – Mahindra Lifespace Developers Ltd.
Best Twitter Case Study – Lighthouse Insights – Social media campaign
#18Daychallenge – Mahindra Lifespace Developers Ltd.
Mahindra Lifespace Developers Limited ranked among the ‘Top 100 Best Companies for
Women in India’ – Working Mother and Avtar – Best Companies for Women in India –
Mahindra Lifespace Developers Ltd.
2017
NDTV Awards: Best affordable housing project in India – Happinest Avadi
Achievement Award for Best Construction Projects – 9th CIDC Vishwakarma Awards
2017 – Construction Industry Development Council -Vishwakarma Awards – Aura’ by
Mahindra Lifespaces
CSR Excellence Award – under ‘Life on Land’ category – Department of Industries &
CSR, Government of Rajasthan – Mahindra World City Jaipur
Best Low-cost Housing Apartment project of the year – NDTV Property Awards –
Happinest, Avadi
Achievement award for Construction Health, Safety & Environment (First prize) – 9th
CIDC Vishwakarma Awards – Windchimes, by Mahindra Lifespaces
Achievement award for Construction Health, Safety & Environment (Second prize) – 9th
CIDC Vishwakarma Awards – Luminare, by Mahindra Lifespaces
Achievement award for Construction Health, Safety & Environment (Third prize) – 9th
CIDC Vishwakarma Awardsv – Antheia, by Mahindra Lifespaces
Best PPP model – 5th Businessworld Smart Cities Conclave & Awards 2017 – Mahindra
World City
Best environment-friendly project – Golden Globe Tigers Awards 2017 – Mahindra World
City, Chennai
CSR Excellence Award – Dept. of Industries & CSR, Govt. of Rajasthan in the category
‘Life On Land’ – Mahindra World City, Jaipur
Bureaucracy Today CSR Excellence Award 2017 in Waste Management – Bureaucracy
Today – Mahindra World City, Chennai
International School Award 2017-2020 – British Council – Mahindra World School
Golden Peacock Environment Management Award (GPEMA) 2017 – Mahindra
Lifespaces was the only real estate company to be presented the GPEMA this year. –
Golden Peacock Awards – Mahindra Lifespace Developers Ltd.
2016
‘Achievement Award for Construction Health, Safety & Environment’ for Luminare
8th CIDC (Construction Industry Development Council) Vishwakarma Awards 2016
Iris Court received the award for the ‘Best Residential Project in Chennai City under
Affordable Segment’
10th CNBC – AWAAZ Real Estate Awards 2015 -16 – Iris Court, MWC Chennai
Mahindra World City, Chennai was declared winner in the category of ‘Best Township
(more than 200 acres)’
NDTV Property Awards 2015 – Mahindra World City, Chennai
Achievement Award for Construction Health, Safety & Environment – Construction
Industry Development Council (CIDC) 8th Vishwakarma Awards – Antheia
Best Mid-Range apartment project – Silicon India Pune Real Estate Awards – Antheia
Channel NewsAsia Sustainability Ranking – The Channel NewsAsia Sustainability
Ranking is a joint initiative between Sustainalytics, an independent ESG and corporate
governance research, ratings and analysis firm; Channel NewsAsia, a prominent Asian
TV news channel; and CSR Asia, a leading provider of advisory, research and training
services on sustainable business practices in Asia. – Mahindra Lifespaces
GRESB report 2016 – In 2016, Mahindra Lifespaces was also ranked 2nd in Asia, in the
‘Diversified’/’Listed’ category of real estate companies, in the Global Real Estate
Sustainability Benchmarking (GRESB) report. – GRESB is a Netherlands
headquartered, industry-driven organisation committed to assessing the sustainability
performance of real estate portfolios around the globe. Nearly 1,100 companies and
funds have been assessed globally by GRESB. – Mahindra Lifespaces
Porter Prize For Excellence In Governance. – India’s National Competitiveness Forum
(NCF) 2016 – Mahindra Lifespaces
“GLOBAL HUMAN SETTLEMENTS MODEL OF RESIDENTIAL AREA” award – United
Nations Conference on Housing and Sustainable Urban Development (Quito, Ecuador) –
Splendour’ by Mahindra Lifepaces
One of one of India’s top ten builders – 2016 – 11th Construction World Architect &
Builder Awards 2016 – Mahindra Lifespaces
2015
Mint Strategy Award for Construction, Real Estate and Steel – The Mint-Institute for
Competitiveness Strategy awards – Mahindra Lifespaces
ET Best Realty Brands 2015 – Times Group – Mahindra Lifespaces
‘Sreshtha Suraksha Puraskar’ for ‘Best Safety Practices in the Construction Industries
Group’
National Safety Council, Maharashtra Chapter & Directorate Industrial Safety and
Health, Govt of Maharashtra
The Mint Institute for Competitiveness Strategy Awards in India honoured Mahindra
Lifespaces for its differentiated focus on sustainable development and exemplary quality
standards, while creating community spaces.
‘Best Developer Residential Project’ for Splendour
ACETECH Alpha Awards ceremony – Splendour
BEST ESG (Environmental, Social and Governance) Disclosure in ‘Small Cap Category’
Investor Relations Society Awards 2015
Premium Apartment Project of the Year – West
NDTV Property Awards 2014
‘Mahindra Lifespaces’ Nagpur project ‘Bloomdale’ was awarded the ‘Construction
Industry Development Council Vishwakarma Award, 2015′ for Construction Health,
Safety and Environment
Mahindra Lifespaces was declared ‘Regional Sector Leader in Asia’ for real estate
sustainability best practices and initiatives.
Mahindra World City, Jaipur received C40 Climate Positive Development Stage 2
Certification
Mahindra Lifespaces was ranked 5th in the Real Estate category in India, in the ‘Great
Place To Work’ Survey 2014
‘Shreshtha Suraksha Puraskar’ (2nd prize) for ‘Best Safety Practices in the Construction
Industries Group’ – National Safety Council, Maharashtra Chapter & Directorate
Industrial Safety and Health, Govt of Maharashtra – Mahindra Lifespaces
BEST ESG (Environmental, Social and Governance) Disclosure in Small Cap Category
– Investor Relations Society Awards – Mahindra Lifespaces
Construction Industry Development Council Vishwakarma Award – Construction Health,
Safety and Environment – Bloomdale
3 C’s
1.THE CUSTOMER
Clients are the basis of any business strategy according to Kenichi Ohmae. Without a doubt, it
should be the main objective of a company to represent the interests of its customers. It is
important to be genuinely interested in the needs and wants, demands, buying motives and
values of the customer. If a company can interest the customer, it can interest its investors. The
customer-based strategies are:
The differentiation is done in terms of the different ways that various customers use a product.
Customer thinking is not one of the prime functions for consideration. For example, coffee. Some
people drink it for waking up or staying alert, while others view it as a way to socialize (coffee
breaks).
Mahindra and mahindra is a very famous car company whose goals were to be in the top most
position in matter of cars and also invent cars with latest technologies.There objective was to
keep the prices of the car reasonable so that people can easily afford to buy the cars they invent
and also their cars vary in different ranges.
This segmentation normally emerges from a trade-off study of marketing costs versus market
coverage. There appears always to be a point of diminishing returns in the cost versus coverage
relationship. The corporation’s task is to optimize its range of market coverage, geographically
and/ or channel wise.
1.direct consumer- direct consumer are those who buy, use and gives feedback about products
of mahindra. In some models direct customers experience is outstanding like- bolero, big bolero
pickup ( commercial), scorpio, XUV 500, XUV 300(India's first five star rating
SUV),THAR.Some of the flagship products of this company is Yuvo and sarpanch tractor.
2. corporate customer- these types of customer buy vehicles in huge for their large scale of
business and people transportation. Corporate customers review also very good for this
company because they getting all the services ( passenger vehicles, Farm products, Agriculture
products, commercial vehicles, truck and buses) ,in one roof.
3. customer- government- Indian government including state government also a big customer of
Mahindra group for its products and giving best reviews for its products and recommends for
awards of products and services too.
In fierce competition, competitors are likely to be dissecting the market in similar ways. Over an
extended period of time, the effectiveness of a given initial strategic segmentation will tend to
decline. In such situations it is useful to pick a small group of customers and reexamine what it
is that they are really looking for.A market segment change occurs where the market forces are
altering the distribution of the user-mix over time by influencing demography, distribution
channels, customer size, etc. This kind of change means that the allocation of corporate
resources must be shifted and/ or the absolute level of resources committed in the business must
be changed
(DISTRIBUTION CHANNEL)
Mahindra Scorpio
Mahindra Scorpio Getaway
Mahindra Bolero
Mahindra Pick-up
Mahindra Quanto
Mahindra XUV 5oo
Mahindra Xylo
Mahindra Thar
Mahindra e2o
Mahindra- Renault Verito
Place - Mahindra owns many assembly plants and manufacturing plants. Its assembly plants
are located in China, India, Brazil and United Kingdom. It has a global presence and its products
are sent to countries like Italy, China, South Africa, USA and UK. It has proved its capabilities by
sending strong messages. To test the markets of China it sent tractors to one single province
and managed to sell them at 20% higher price than its local rival because of its shrewd business
sense and the superior quality of the products. In India, its plants are located in Bangalore,
Chakan and Nasik in Maharashtra, Haridwar in Uttarakhand.
Price - The pricing policy of Mahindra and Mahindra is dependent upon various factors that
determine the sales price of the vehicles. The costs incurred at every stage includes
manufacturing to assembling the parts and making them a whole product and the costs to reach
the product to the consumer.The company has infiltrated in every corner of the country with
products that are reasonably priced and show quality.
Promotions - Mahindra and Mahindra have taken various steps in order to promote their
vehicles throughout the world. It has decided to use the visual media and the print media fully so
that the people become aware of its potential and products. Advertisements featuring attractive
models with its products have been handled gracefully so that Mahindra and Mahindra becomes
a household name. In 2011, Mahindra launched Kareena kapoor Khan, the famous actor, as
its brand ambassador for Mahindra two wheeler’s advertisements where she asks the
consumers to buy a two-wheeler as INR 1500 of petrol was being supplied free with it. This
highly entertaining and engaging campaign shows a peppy and charming Kareena enjoying her
ride. Advertisements have been placed in newspapers and various magazines as well as
television and internet.
2.THE COMPETITORS
the competitive strategies can be constructed by looking at the potential differentiation
opportunities in components such as purchasing, design, engineering, sales and service. The
competitor-based strategies are:
The power of an image. Both Sony and Honda sell more for example, because they invest
more in public relations and advertising than their competitors.
Capitalizing on profit and cost structure effectiveness. Differences in ratio and source of
profit might be exploited strategically. A company with lower fixed cost can lower prices in a
fixed market.
Tactics for flyweights. Small businesses should calculate its incentives based on a
gradual percentage basis, rather than absolute volume. By making incentives variable, the
dealer receives a larger percentage of each extra unit sold. The big three market players
would erode their profit by copying this strategy because of the franchise structure.
Hito-Kane-Mono. This Japanese phrase refers to people, money en things. When these
these three critical resources are in balance, there is no waste. Therefor the corporate
management is effectively streamlined. The corporation should first allocate the
management talent (hito) based on the available resources (mono) like machinery, know-
how and functionality. Once the people have developed ideas, the money (kane) should be
allocated to specific areas and programs.
Automotive- For mahindra automotive business company have big competition with
Indian origin Tata motors (PCBU), Ashok Leyland, Maruti Suzuki India limited, Toyota,
Ford India limited, Kia motors limited, Morris Garage (MG) etc.
Farm equipment sector ( FES)- In mahindra FES business ,the major companies are
competing to Mahindra are - Sonalika, Messi Ferguson, John Deere's, etc.
3.THE CORPORATION (THE INDUSTRY)
The aim here is to maximise the corporation’s strengths relative to the competitors in functional
areas. The corporate-based strategies are:
-Selectivity and sequencing. In order to win, a decisive edge in one key function can lead to a
significant advantage. By pulling ahead of the competition, other functions than the key function
may now become better than mediocre.
- Make or buy In case of rapidly rising wage costs, it becomes a critical decision for a company
to subcontract a major share of its assembly operations. If its competitors are unable to shift
production so rapidly to subcontractors and vendors, the resulting difference in cost structure
and/ or in the company's ability to cope with demand fluctuations may have significant strategic
implications.
In essence, the company should seek to stay ahead of competition by either outsourcing some
of its activities that are quite costly but do not have direct value addition or it should apply
backward integration techniques for its core business areas.
Environmental Scanning
SWOT ANALYSIS:
SWOT (Strengths, Weakness, Opportunities, Threats) of Mahindra & Mahindra group
Mahindra & Mahindra launches new products with great technology it is use full for farmers
Mahindra gears is leading manufacturer of quality gears in 1987 it produce 150,000 quality
assure gears every month
Focus on research and development: M&M maintain relationship with R&D with leading
technology for next generation solutions to developed applications focused on ip
services
Weakness of Mahindra & Mahindra
The company is highly dependent on rural sectors,rural sector is highly dependent on
mansoon,it got impact on sales.
Manufacturing company not attracting the best management talent Aggressive distribution and
selling culture absent.
in India 10 tractors per 1000 hectares which is much below worlds average is 19 tractors for
same there is scope to demand increase.
Scorpio lacks the brand image possessed by pajero, prado ,etc they could launch stripped-down
versions to tap the lower sports utility vehicle.
Entry of foreign players in the tractors segment could pose a threat to the company,foreign
players are technically more competitive than Mahindra & Mahindra.
1. Competitive Rivalry
Here you need to learn the numbers and strength of the company’s competitors.For example-
How many direct/indirect competitors the company has? How strong are the competitors? What
is the size of the competitors? How are their product or services compared to that company? A
high competitive rivalry is never good for a company.
For example, Tata Motors was a market leader in the commercial vehicle segment (Trucks &
buses) for a very long time. However, with the new entry and intense rivalry from Ashok
Leyland, Mahindra & Mahindra, Eicher Motors etc the market segment of Tata’s has declined a
lot. Further, the decline in the market segment also resulted in a decline in sales and profit.
In case of high rivalry, the competitors can cut the prices or start a strong marketing campaign
to attract the customer.
2. Supplier’s Power
A strong supplier can negotiate the prices of the supplies which may increase the price of the
company’s product/services or decrease the company’s profitability. Here, the supplier is in a
higher position.
While studying the supplier’s power during Porter’s five forces analysis, you need to investigate
the total number of suppliers, how strong the suppliers are, the uniqueness of the
product/services provided by the suppliers, switching cost for the company in case they decided
to change the supplier etc.
3. Buyer’s Power
How many buyers does the company have? How easy it is for buyers to drive the prices down?
And how big are the orders?
Generally, a large number of buyers with low (or zero) negotiation power is best for a company.
However, if you have a small number of customers, they might be able to negotiate the price to
a lower level and influence company’s profitability. Further, a large number of buyers instead of
a single big buyer is also preferred. In short, the company’s power and profitability increase if
the company has a large number of customers with low negotiation power.
For example, washing powder. It’s really easy for a customer to substitute a washing powder
manufactured by some company with another one. On the other hand, the threat of substitution
for Android or iOS is difficult!!
A substitution which is easier or cheaper weakens the company’s position and threatens its
profitability.
For example, a few industries are hard to enter due to its initial set-up cost. For example- a
telecommunication industry. However, if a low amount of capital is required to enter the market,
then it might be a big disadvantage for the existing companies.
McKinsey 7‟s Framework
The strategic enablers are linked with the 7S framework of strategy implementation,
where schemes, structure and systems are considered the ‘hardware’ of success and
style, skills, staff and shared values make up the ‘software’.
Strategy: The networking model must define its strategy in terms of resource generation,
funding sources, designing an information service mix for target beneficiaries. The sustainability
issue is very important in such models, as to how revenues will be generated and how the ICT
model is to be linked with agricultural marketing institutions in order to facilitate agricultural
marketing. The product-service mix and communication strategy to farmers is also very
important for awareness about the information on marketing and commodity prices. Without a
well planned strategy, the business model will not be able to achieve its objective.
Structure: The information networking schemes involve many organisations. The AGMARKNET
scheme, for example, involves officials of Directorate of Marketing and Inspection, National
Informatics Centre, State Department of Agriculture officials, extension officials etc. The
structure of the consortium needs to be designed in such a way that it facilitates speedy
decision-making. A networked structure having minimum hierarchies and involving people from
all stakeholder organizations with clear cut roles is needed for implementation including those
under PPP (Public Private Participation). The more the layers, the less will be the benefits
delivered to beneficiaries.
Systems: They comprises of the procedures and policies of the organizations which define how
things should be done to achieve the objectives. The systems must allow flexibility in terms of
resources and approaches as different geographical areas may need different approaches. The
systems of collecting information and updating the same and methods of content delivery are to
be defined. The delivery of SMART (specific, measurable, accurate, relevant and timely)
information is possible only through SMART systems.
Style : Beliefs and actions of managers determine the outcome of implemented strategy. A
participative style of management suitable for the need of rural areas must be adopted. The
local communities such as farmers and intermediaries must be involved in the awareness
programmes and selection of kiosk operators. The success of these schemes depend upon how
the managers are able to work with such collaborative models.
Staff: This deals with people dimension of a relationship and managing the social structure of a
relationship cross-functionally. This is an important aspect of strategy implementation in this
area. People are involved at every step in such type of information system. The people involved
are data collectors, officials incharge of updating data, kiosk operators, who deliver the
information and the people who install and maintain the kiosks. Most of the models are making
use of the local entrepreneurs, who are selected among the local folk.
Skills: Enabling skills imply that the company ensures that employees know how to do their jobs
and stay abreast with innovation in tasks, technology and techniques. Skills imply distinctive
capabilities of people and organization which differentiate themselves from others.The skill sets
of the persons involved in collecting, updating and delivering information needs to be updated
from time to time. The staff must be fully equipped to deliver the services to farmers. Unless
fully trained, they will not be able to deliver the information.
Shared values: Shared values ensure that all concerned share the same guiding values. For
every ICT project, we must define the mission, vision, goals and objectives which will be shared
among the employees of partnering institutions. These values must pertain to economic, social
and national benefits.
BCG Matrix
The BCG matrix is a strategic management tool that was created by the Boston Consulting
Group, which helps in analysing the position of a strategic business unit and the potential it has
to offer. The matrix consists of 4 classifications that are based on two dimensions. Strategic
business units are placed in one of these 4 classifications.Strategic business units with high
market growth rate and high relative market share are called stars. Businesses should invest in
their stars and can implement vertical integration, market penetration, product development,
market development, and horizontal integration strategies. Strategic business units with high
market growth rate and low relative market share are called question marks. These strategic
business units require close considerations whether the business should continue with them or
divest. Strategic business units with low market growth rate but with high relative market share
are called cash cows. The business should invest in these to maintain their relative market
share. Lastly, the strategic business units with low market growth rate and low relative market
share are called dogs. The business should divest these strategic business units.
Stars
The financial services strategic business unit is a star in the BCG matrix of Mahindra and
Mahindra Finance Services Limited Empowering Rural Customers in India. It operates in a
market that shows potential in the future. Mahindra and Mahindra Finance Services Limited
Empowering Rural Customers in India earns a significant amount of its income from this
SBU. Mahindra and Mahindra Finance Services Limited Empowering Rural Customers in
India should vertically integrate by acquiring other firms in the supply chain. This will help it in
earning more profits as this Strategic business unit has potential.
The Number 1 brand Strategic business unit is a star in the BCG matrix of Mahindra and
Mahindra Finance Services Limited Empowering Rural Customers in India, and this is also
the product that generates the greatest sales amongst its product portfolio. The potential
within this market is also high as consumers are demanding this and similar types of
products. Mahindra and Mahindra Finance Services Limited Empowering Rural Customers in
India should undergo a product development strategy for this SBU, where it develops
innovative features on this product through research and development. This will help
Mahindra and Mahindra Finance Services Limited Empowering Rural Customers in India by
attracting more customers and increases its sales.
Cash Cows
The supplier management service strategic business unit is a cash cow in the BCG matrix of
Mahindra and Mahindra Finance Services Limited Empowering Rural Customers in India.
This has been in operation for over decades and has earned Mahindra and Mahindra
Finance Services Limited Empowering Rural Customers in India a significant amount in
revenue. The market share for Mahindra and Mahindra Finance Services Limited
Empowering Rural Customers in India is high, but the overall market is declining as
companies manage their supplier themselves rather than outsourcing it.
The Number 3 brand strategic business unit is a cash cow in the BCG matrix of Mahindra
and Mahindra Finance Services Limited Empowering Rural Customers in India. This is an
innovative product that has a market share of 25% in its category. Mahindra and Mahindra
Finance Services Limited Empowering Rural Customers in India is also the market leader in
this category. The overall category has been declining slowly in the past few years. Mahindra
and Mahindra Finance Services Limited Empowering Rural Customers in India has the
power to influence the market as well in this category. It should, therefore, invest in research
and development so that the brand could be innovated.
Question Marks
The local foods strategic business unit is a question mark in the BCG matrix for Mahindra
and Mahindra Finance Services Limited Empowering Rural Customers in India. The recent
trends within the market show that consumers are focusing more towards local foods.
Therefore, this market is showing a high market growth rate. However, Mahindra and
Mahindra Finance Services Limited Empowering Rural Customers in India has a low market
share in this segment. The recommended strategy for Mahindra and Mahindra Finance
Services Limited Empowering Rural Customers in India is to invest in research and
development to come up with innovative features.
The Number 4 brand strategic business unit is a question mark in the BCG matrix for
Mahindra and Mahindra Finance Services Limited Empowering Rural Customers in India.
This strategic business unit is a part of a market that is rapidly growing. However, this
strategic business unit has been incurring losses in the past few years. It has also failed in
the attempts made at innovation by research and development teams. The recommended
strategy for Mahindra and Mahindra Finance Services Limited Empowering Rural Customers
in India is to divest and prevent any future losses from occurring.
Dogs
The plastic bags strategic business unit is a dog in the BCG matrix of Mahindra and
Mahindra Finance Services Limited Empowering Rural Customers in India. This strategic
business unit has been in the loss for the last 5 years. It also operates in a market that is
declining due to greater environmental concerns. The recommended strategy for Mahindra
and Mahindra Finance Services Limited Empowering Rural Customers in India is to divest
this strategic business unit and minimise its losses.
The Number 5 brand strategic business unit is a dog in the BCG matrix for Mahindra and
Mahindra Finance Services Limited Empowering Rural Customers in India. This is operating
in a market segment that is declining in the past 5 years. The company also has negative
profits for this strategic business unit. However, it is expected that the market will grow in the
future with environmental changes that are occurring.
CONCLUSION
Majority of the customer are satisfied with the design of the vehicle.
Though majority of the customer are satisfied that the maintenance cost of
Mahindra is less, around 20% are not satisfied which may be because of
comparison with the newly launched competing brands coming with even
lower maintenance cost.
As 80% of the respondents are happy with the space availability of the
Mahindra SUV, it can be stated that the company has undertaken proper
R&D in this aspect.
c) Age d) Income
(a) Yes
(b) No
(a) Feature
(c) Looks
(b) Satisfied
(c) Neutral
(d) Dissatisfied
(b) Satisfied
(d) Dissatisfied
5) Customer opinions towards Design?
(b) Satisfied
(c) Neutral
(d) Dissatisfied
(b) Satisfied
(d) Dissatisfied
(b) Satisfied
(C) Neutral
(d) Dissatisfied
(a) Yes
(b) No
(b) Good
(c) Average
(d) Bad
10) Do you want to give any suggestion about any change in the Mahindra and Mahindra
Motors?