Bajaj auto Essay

The project report entitled â€Å"Strategic Management Cycle of Baja] Auto Ltd † . has been submitted to Gujarat Technological University, Ahmedabad in partial tultlllment tor the award of degree of Master of Business Administration. I the undersigned hereby eclare that this report has been completed by me under the guidance of Prof. Jignasha mam† (Faculty Member, Shayona Institute of Business Management, Ahmedabad) The report is entirely the result of my own efforts and has not been submitted either in part or whole to any other institute or university for any degree. Date: Place: Ahmedabad PREFACE As it is always said that if you give some-one theory knowledge it will make person understandwell. But if you give some-one theory as well as practical knowledge then it will help the person to understand and remember that always. In the same way to get practical knowledge,the report which we prepare not only make us understand the various functions but also gives us different vision regarding them and along with it gives us experience of practical assignment and manager’s work. By preparing report on Analytical Study on Strategic Management Cycle of Baja] Auto Ltd. we have tried to develop skill to understand well and also how to implement theoretical knowledge work. For this we are thankful to Gujarat Technological University for including such a project as practical studies in the syllabus of M. B. A. Acknowledgement The succession completion of this report would not have been possible without co- operation and support of our professor , friends and our institute. We forward gratitude to respected director of our institute. We are heartily thankful to the management for providing us the opportunity to make a study to practical in their organization. We express our sincere thanks to the company who have given us all the information on-line. We are also thankful our professor out with whose help, this becomes possible and who provided full guidance, co-operation and valuable suggestion bout company report. We are also thankful to our college friends and all those who have helped us directly or indirectly in the preparation of this report. Executive Summary In our project we nave conducted a research on now baJaJ auto ltd works By using stretegic management ; their different moves.. Hence on the basis of the Information we have found out our finding and have done an in-depth analysis on Strategic Management Cycle of Baja] Auto Ltd.. It is followed by recommendations and conclusion. TABLE OF CONTENTS 1 . Objective of SM 2. Introduction of ABC Co. 3. History of ABC co. . Strategic Thinking i. Vision i’. Mission iii. Corporate Purpose ‘v. Values: (Standard of Conduct, Law, Employees, Consumers, Shareholders, Business Partners, Community Involvement, Public Activities, the environment, innovation, competition, business integrity etc. ) 5. Strategic Planning i. Strategy adopted by ABC Co. i’. Action plan by ABC Co. iii . Responsibilities of ABC Co. – CSR (Internal as well as External) iv . Michael Porters 5 Forces analysis v. McKinseys7S Model VI. SWOT Analysts of ABC co. PEST Analysts ViiiBCG MATRIX 6. Analysis of Strategies of ABC Co 7. Strategic Implementation i. Resource Allocation 7. Strategic Evaluation i . Balance Scorecar 1. OBJECTIVE OF SM . Statements of vision tend to be quite broad and can be described as a goal that represents an inspiring, overarching, and emotionally driven destination. Mission statements, on the other hand, tend to be more specific and address questions concerning the organization’s reason for being and the basis of its intended competitive advantage in the marketplace. Strategic objectives are used to operationalize the mission statement. That is, they help to provide guidance on how he organization can fulfill or move toward the â€Å"high goals† in the goal hierarchy-the mission and vision. As a result, they tend to be more specific and cover a more well- defined time frame. Setting objectives demands a yardstick to measure the fulfillment of the objectives. If an objective lacks specificity or measurability, it is not very useful, simply because there is no way of determining whether it is helping the organization to move toward the organization’s mission and vision. 2. INTRODUCTION OF BAJAJ GROUP : The Baja] Group is amongst the top 10 business houses in India. I s tootprint stretches over a wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance. The group’s flagship company, Baja] Auto, is ranked as the world’s fourth largest two- and three- wheeler manufacturer and the Baja] brand is well-known across several countries in Latin America, Africa, Middle East, South and South East Asia. Founded in 1926, at the height of India’s movement for independence from the British, the group has an illustrious history. The integrity, dedication, resourcefulness nd determination to succeed which are characteristic of the group today, are often traced back to its birth during those days of relentless devotion to a common cause. Jamnalal Baja], founder of the group, was a close confidant and disciple of Mahatma Gandhi. In fact, GandhiJi had adopted him as his son. This close relationship and his deep involvement in the independence movement did not leave Jamnalal Baja] with much time to spend on his newly launched business venture. His son, Kamalnayan Baja], then 27, took over the reigns of business in 1942. He too was close to Gandhi]’ nd it was only after Independence in 1947, that he was able to give his full attention to the business. Kamalnayan Baja] not only consolidated the group, but also diversified into various manufacturing activities. The present Chairman of the group, Rahul Baja], took charge of the business in 1965. Under his leadership, the turnover of the Baja] Auto the flagship company has gone up from INR. 72 million to INR. 120 billion, its product portfolio has expanded and the brand has found a global market. He is one of India’s most distinguished business leaders and internationally espected for his business acumen and entrepreneurial spirit. 3. HlSTORY OF BAJAJ AUTO LTD Baja] Auto is a $2. 3 billion company founded in 1926. It is fourth largest two- and three-wheeler manufacturer. Baja] Auto has three plants in all, two at WaluJ and Chakan in Maharashtra and one plant at Pant Nagar in Uttaranchal. The company is into manutacturing ot motorcycles, scooters and three-wheelers. In India, Baja] Auto has a distribution network of 485 dealers and over 1,600 authorised services centres. It has 171 exclusive dealers for the three-wheeler segment . lt has total 3750 rural outlets in rural areas. The company has opened 11 retail stores for bikes across the country, exclusive for high-end and performance bikes. It has opened these stores under the name in cities like Pune, Nashik, Ahmedabad, Chennai, Hyderabad, Kolkata, Navi Mumbai, Chandigarh, New Delhi, Faridabad and Mangalore. The Baja] brand is well-known across several countries in Latin America, Africa, Middle East, South and South East Asia. It has a distribution network in 50 countries with a dominant presence in Sri Lanka, Colombia, Bangladesh, Mexico, Central America, Peru and Egypt. It has technical tie up with Kawasaki Heavvy Industries of Japan to manufacture latest models in the two-wheeler space. Baja] Auto has launched brands like Boxer, Caliber, Wind125, Pulsar and many more. It has also launched India’s first real cruiser bike, Kawasaki Baja] Eliminator. Baja] Auto’s has in all three plants, two at WaluJ and Chakan in Maharashtra and one plant at Pant Nagar in Uttranchal, western India. WaluJ – Baja] range of motorcycles and three-wheelers Chakan – Baja] range of motorcycles Pant Nagar – Baja] range of motorcycles Achievement 1945- On November 29 Baja] Auto came into existence as BachraJ Trading Corporation Private Limited. 1948- The company commenced sales in India by importing two- and three-wheelers. 1959- Baja] Auto obtained the licence from the Government of India to manufacture two- and three-wheelers. 1960- The company became a public limited company and conducted Bhoomi PooJan of the Akurdi Plant. 1970- Baja] Auto rolled out its 100,000th vehicle. 971- The company introduced its three-wheeler goods carrier. 1972- The company introduced Baja] Chetak. 1975- Baja] Auto ; Maharashtra Scooters entered into a Joint venture. 1976- The company introduced Baja] Super. 977- Baja] Auto introduced rear engine autorickshaw and achieved production and sales of 100,000 vehicles in a single financial year. 1981- Baja] Auto launched Baja] M-50. 1984- On January 19, the foundation stone laid for the new plant at WaluJ, Aurangabad. 1985- On November 5, the WaluJ plant inaugurated by the erstwhile President of India, Giant Zail Singh. The company commenced production at WaluJ, Aurangabad in a record time of 16 months. 1986- The Baja] M-80 and the Kawasaki Baja] KBIOO motorcycles were introduced. The company produced and sold 500,000 vehicles in a single financial year. 990- The Baja] Sunny was introduced. 1991- The company introduced Kawasaki Baja] 4S Champion. 1994- It launched Baja] Classic. 1995- On November 29, Baja] Auto turned into a 50-year old company. It signed agreements with Kubota of Japan for the development of diesel engines for three- wheelers and with Tokyo R;D for ungeared scooter and moped development. The Baja] Super Excel is introduced while Baja] celebrated its ten millionth vehicle. The same year one million vehicles were produced and sold by company in that financial year. 1997- The Kawasaki Baja] Boxer and the RE diesel Autorickshaw are introduced. 998- The company commenced production at Chakan plant. It rolled out Kawasaki Baja] Caliber from its WaluJ plant. Baja] Auto launched Legend, India’s first four- stroke scooter from Akurdi plant. The same year Spirit was launched. 1999- Caliber motorcycle notched up 100,000 sales in record time of 12 months. 000- The company launched Baja] Safire. 2001- Baja] Auto launched its latest offering in the premium bike segment ‘Pulsar’. The same year Eliminator was launched. 2003- Baja] Pulsar DTS-i was launched. The company sold 107,115 motorcycles in a month. The company launched Baja] Wind 25, The World Bike in India. It launched its Caliber 115 ‘Hoodibabaa! ‘ in the executive motorcycle segment. 2004- B aja] Discover DTS-I, new Baja] Chetak 4-stroke with wonder gear and Baja] CT 100 were launched. Baja] unveiled new brand identity, new symbol, logo and brandline. 005- Baja] Discover, Baja] Avenger DTS-I and Baja] Wave DTS-I were introduced. 2006- Baja] Platina was launched. 2007- RE GDi autonckshaw, Bajaj XCD 125 DTS-Si, Bajaj pulsar 220 DTS-Fi, 200 cc Pulsar DTS-I and Baja] Kristal DTS-i were launched. The company also underwent through revamping of its organisational structure. 008- Baja] Platina 125 DTS-Si was launched. 2009- Bajaj pulsar 150 & 180 upgrade and Bajaj XCD 135 DTS-Si were launched 2011- April, Baja] Records its best year ever of 2010. HISTORY OF RAHUL BAJAJ Rahul Baja] Chairman, Baja] Auto Limited. Mr. Baja] (b. June 10, 38) is recognized as one of the most successful business leaders of India. He heads the Baja] Group of Companies which is a leader in a variety of manufactured products and financial services in India and abroad including motorized 2 and 3-wheelers, home appliances, electric lamps, wind energy, special lloy and stainless steel, cranes, forgings, infrastructure development, material handling equipment, travel, general and life insurance and investment, consumer finance & asset management. Mr. Baja] holds an Honours Degree in Economics from Delhi University, a degree in Law from Bombay University and an MBA from Harvard Business School. Mr. Baja] is the Chairman of the Board of many companies. He was elected to the Upper House of Parliament (RaJya Sabha 2006 – 2010). Mr. Baja] has received many prestigious awards and recognitions, notable being the award of ‘Padma Bhushan’ by he Government of India in 2001, Alumni Achievement Award by the Harvard Business School and Life Time Achievement Awards from Economic Times, Ernst & Young and CNBC TV18. Mr. Baja] was appointed Knight in the Order of the Legion of Honour by the President of the French Republic. Mr. Baja] has been conferred Honorary Doctorates by 7 Universities including IIT Roorkee. The Project Report On Strategic Leaders Page 4 Mr. Baja] was the President of Confederation of Indian Industry (Cll – 1979-80/1999-2000). He was President of Society of Indian Automobile Manufacturers SIAM) and Mahratta Chamber of Commerce, Industry And Agriculture (MCCIA) and Chairman of the Development Council for Automobiles and Allied Industries. Mr. Baja] was appointed by the Government of India the Chairman (1986- 89) of the Government owned domestic carrier, Indian Airlines. Mr. Baja] was nominated by the President of India the Chairman of the Board of Governors of the Indian Institute of Technology, Bombay during 2003-06. Mr. Baja] is a Member & former Chairman of the International Business Council of the World Economic Forum, Geneva and a Member of Harvard Business School’s Global Advisory Board. He is also a Member of the International Advisory Council of the Brookings Institution, Washington DC and a Member of the Executive Board of Indian School of Business. Mr. Baja] spear-heads the CSR initiatives of the Baja] Group which include Jamnalal Baja] Foundation and Shiksha Mandal and a number of social organizations including Bharatiya Yuva Shakti Trust and Ruby Hall Clinic, a large hospital in Pune as their Chairman.