Maruti Suzuki India Limited is a country’s largest four-wheeler automobile manufacturer, brought in an automobile revolution in India. It is basically a joint venture between Indian Government and Suzuki Japan which Govt. of India sold to Indian Financial Institutions in Mid 2007.
The company annually is selling 722,144 cars annually in domestic market. It has 55% Passenger Car Market Share compared to 54.6% last year (2007-08). Exports are also increased by 87.25% (10,546) compared to 5,632 cars last year.
CURRENT POSITION
Sales up despite recession
The company has reported 33.36% growth in sales despite the recession. The Economic Times (India) commented,”Smooth ride for Maruti Suzuki in these hard times”. The key behind the growth according to Jagdish Khattar, former MD, Maruti says,” For years it has developed business models in line with existing issues with a long term view.”
Threat from new players is increasing
As world become smaller, more and more companies try to be global, same with Indian market. Almost all the well known cars manufacturers are present and still many more are planning to enter in the market. As a result of this Threat from new players is increasing.
Rivalry within industry is high
The company is focused on small family car segment. In the industry there is tough competition is going on in this segment.
Market strength of supplier is low
The company orders automotive components from a large number of suppliers compared to the other companies which rationalize their vendor base to achieve components constantly.
Raw material prices is increasing
As current global economic climate, raw material prices are continuously increasing. As a result of that company have to increase its product’s prices.
CHANGES TOOK PLACE IN FIVE YEARS
- 3G – Give Get Growth is their slogan as it completed 25 years.
- Maruti has launched 8 new cars as well as launched updated version of 3 present cars.
- All new cars come with latest technology engine which is fuel- efficient and lower on CO2 emissions.
- Servicing on every corner, covers 1200 towns across the country which is unique facility from Maruti.
- For its Indian operations, the company invested INR 90,000 Millions.
- It has also made huge investment in the plant situated at Manesar.
- It is running 69 Driving Schools domestically which contains theory, simulator and on road training, helps Indian drivers learn drive better and safer way.
- It also launched Omni and WagonR with LPG Gas.
- All new cars have iCAT – security against car theft system.
- It builds trust among its customers through products and service standards.
- Maruti Suzuki re-entered European market with a global car (Suzuki A-Star) that is fuel-efficient and lower on CO2 emissions.
- It is launched “Maruti True Value” – Selling used cars with the trust certifications from Maruti which also includes warranty period of 1 year from company.
- It launched “Maruti Autocard” – A reward program for customers. Customers get points on Service, Spares which leads them to assured gift at certain fixed points which encourages customers to buy genuine spares and servicing at Maruti Authorized Dealers.
- It organizes free check up camps after every 2-3 months.
- It is performing social responsibilities like welfare camps, Education to underprivileged, greening of supply chain, reducing water wastage.
- It is practicing 3R – Reduce, Reuse and Recycle for Greener Earth.
OUTCOME OF THE CHANGES
With the changes which took place in span of last five years helps company serving better to customers. It also helps to maintain its trust among customers and with latest launch company targets country’s youth which is a win-win long term strategy of the company.
Subject: Investigation on changes & outcome of the changes
NATURE OF THE ORGANISATION
HCL – Hindustan Computers Limited is a leading global Technology and IT company. The span of services is wide i.e. BPO Services, IT Hardware, Infrastructure Services, Application Services, Distribution of Telecom and Technology. It provides services with its two subsidiaries companies: HCL Technologies and HCL Infosystems.
HCL Technologies is focused on IT and BPO services globally; on the other hand HCL Infosystems deals with Office Automation Products, System Integration, IT and Communication services in domestic (Indian)market.
45,000 employees across the globe working for HCL in 17 countries including 360 service centers in India.
CURRENT POSITION
- HCL currently holding 13.7 % market share in desktop PCs
- As per last year Dec ’09 report company has earned INR 3054.3 crores (USD 648 million)
- The company launch ‘HCL ME Net book 06′ which is 10.1” 3G capable and with this HCL aims to get more market share in laptop PCs.
CHANGES TOOK PLACE IN LAST FIVE YEARS
- “Employees First, Customers Second” – This ‘World’s most modern management’ as per Fortune Magazine practiced in HCL.
- Smart Service Desk
- i4excel – is an employee’s appraisal portal which transparently shares ratings and reviewer views with the employees.
- Directions – annual company-wide event which allows employees to contribute their ideas in strategic discussions with Board of Directors.
- U&I – it is two way conversation mechanism between CEO and the employees.
- EFC (Employee First Councils) – it is works on common interest of goals for employees which is also includes Women First Council, focus on development and security at work for women.
- F.U.N.D.O.O.F.R.I.D.A.Y – means fun @ work
- HCL is using number of innovative methods of training and development within the company.
OUTCOME OF THE CHANGES
- HCL’s shrinkage rate has dropped rapidly continually for nine constant years.
- Employee’s productivity rate and revenue has also had an increase in the nine years.
- Through Employee enterprising, in which HCL effortful attempt to human resources, leadership and excellence in their organization, to attract workforce that are distinctly different including all of their commitment in providing excellent quality service.
NATURE OF THE ORGANISATION
Nirma is a market leader in detergent market. It is one of the world’s biggest brand in it is segment. An INR 170 Million detergents, soaps and personal care products brand. It is a customer focused company. The secret behind the success is the company adopted a different path and identified market where others saw none. It expanded its market where others failed. It achieved penetration where others felt consumer mindset could not be changed.
CURRENT POSITION
Nirma has been successful in keeping its prices at such affordable levels primarily due to their strategy of backward integration projects.
It has a 350 strong sales force, a distributor strength of 400 and a retail reach of over 1 million outlets. It has successfully established lowest cost and speed distribution channel.
With this wider reach distribution chain, it’s products available from the smallest rural village to the largest metro.
CHANGES TOOK PLACE IN LAST FIVE YEARS
- Nirma has been successful in keeping its prices at such affordable levels primarily due to their strategy of backward integration projects.
- It has launched number of successful products in Nirma Beauty Soap, Nirma Extra Strong Washing Powder, Nirma Rose, Super Nirma Detergent Cake, Nirma Popular Detergent Powder & cake, Nirma ‘shudh’ (pure) iodized salt and Nirma clean dish wash bar.
- The recent advertisement that has been aired on television has been devised keeping in mind the psyche and choice of the middle class housewives.
- Nirma University is established in Ahmedabad, Gujarat, India to provide quality education with different institutes like Institute of Technology, Institute of Management, Institute of Diploma Studies, Institute of Pharmacy, Institute of Science and Institute of Law. All institutes on one campus.
OUTCOME OF THE CHANGES
- Value for money concept
- Washing habits changed
- Wide spread conversion from oil soap and soda ash to detergent powder
- Single product brand spread over multiple corporate entities
TASK 2
INTRODUCTION
Author has identified 2 bureaucratic organizations which is large and well established. Author has chosen ONGC (India) LTD. and State Bank of India. Author is going to evaluate these 2 organization’s strength & weaknesses focusing on efficiency, impact of bureaucratic organization on their environment and how these organizations react to change.
OBJECTIVES
- Evaluate organization’s strength and weaknesses focusing on efficiency;
- Impact of bureaucratic organization on their environment;
- How these organization react to change.
CORPORATE BACKGROUND
ONGC (Oil and Natural Gas Corporation) Limited is recognized as Asia’s finest Oil & Gas company. Today, it ranks as 1st in terms of profits that means the corporation is making highest profit in India, as per the Platts Energy Business Technology (EBT) Survey recently.
In financial year 2008-09, company’s net profit is INR 161,263 million in spite of unstable oil markets and crude prices. It has 0.0003:1 debt-equity ratio which is practically zero debt. Its net worth is INR 781,000 million.
STRENGTH & WEAKNESSES
STRENGTH
- ONGC is market leader with more than 80% market share in oil & gas industry;
- It has very efficient and professional management team;
- As being an international company it has sufficient resources and capital to invest
WEAKNESS
- In order to find oil, company has invested huge capital, high technology and risk is also high as every campaign is not successful, company successfully finds oil only at some places.
EFFICIENCY
- Applying the above mention strength and weakness on Efficiency and analyze how the above factors affecting company’s efficiency.
- As a result of high investment on technology company found oil and gas in Farsi Offshore Block in Iran.
- As a part of future improvement in efficiency particularly for the in house efficiency, the company has invested sum of INR 10 billion in hardware and software which is investment for technology.
IMPACT OF BUREAUCRATIC ORGANIZATION
- As ONGC is a bureaucratic organization, like other organizations, seem to suffer the same suffocating and immobilizing symptoms which is well recognized as “bureaucracy”.
- In India, as government has stake in the company, the company has backed by government policies in order to explore and produce oil and gas.
HOW THEY REACT TO CHANGE
- First the company has faced technological revolution for which company invested in training and development of the employees and also invested in hardware and software to apply latest tools and techniques for the benefit of the company.
- As world became more aware of climate change, ONGC have to apply Carbon Management in order minimize carbon footprint. The company is registered with International Organizations and aiming for ISO14064 certification which is zero or neutral carbon by Dec 2011.
- For sustainable reporting the company has undertaken triple Bottom-Line reporting.
BACKGROUND
State Bank of India (SBI) found in Calcutta on 2nd June 1806 as Bank of Calcutta. All India Rural Credit Survey Committee had proposed for state-associate banks, in response the act was passed in the Parliament of India in May 1955 and State Bank of India established.
At present SBI has 10,000 branches across the country and 57 zonal offices located at the major cities in India. The bank has more than 20,000 ATMs, from a small village to metro city, easy access to cash for its customers in the country.
SBI has eight subsidiaries banks which provide services in different parts of the country offered by SBI.
EFFICIENCY, TRUST & RELIABILITY
The quality of the SBI is described by these words. SBI is known for efficient customer services and commitment to excellence. Over 80% of the top corporate companies are its clients, with this it became India’s largest bank.
SBI has more opportunity in terms of providing personal banking services, 41% people in India don’t have bank account.
To serve 600,000+ villages is challenge and SBI through its wide network of branches it caters the banking needs of an individual farmer efficiently.
IMPACT OF BUREAUCRATIC ORGANIZATION
SBI has 20,000 ATMs and it considered as world’s largest bank owned network.
SBI has its own employee’s union and for employees’ issues and other issues which occur time by time, employee’s union meet to the board of the director and if required they also call for strike.
Being a bureaucratic organization spreading awareness is a responsibility, Social upliftment plan like NREGA, SSP shall fund for support.
HOW THEY REACT TO CHANGE
Many globalize banks enter in the market and market become more competitive but the trust which SBI build in the past 200 years, no other bank can build that trust in the customer’s mind.
With more competitors, it has to improve its customer service and technology. For this bank installed cutting edge technology and introduced facilities like internet banking and core banking through which banking can be possible at anywhere anytime.
TASK 3
INTRODUCTION
In this Task 3, Author chooses 1 company from Task 1 which is Maruti Suzuki India LTD. and 1 company from Task 2 which is Oil and Natural Gas Corporation (ONGC) Limited. Carry out comparison between these two organizations in terms of organizational development and present my discussion in slides.
OBJECTIVES
- Carry out detail comparison between two chosen organizations.
- Investigate the forms of development in these organizations.
- Present the discussion in slides.
FORDISM
Fordism is practiced after Henry Ford. It is practiced in modern management. It is mainly connected with production/manufacture work where process, stage by stage is done.
Mainly neo-Marxist theorists used Fordism to analyze industrial and social order of mass production, full employment and many other points which characterized after Second World War.
Looking at the Fordism concept above, Author is now going to compare Maruti Suzuki India LTD and ONGC (Oil and Natural Gas Corporation) LTD.
RIVALRY WITHIN INDUSTRY
Maruti Suzuki is mainly focused on small cars manufacturing and in this segment there is tough competition going on in Indian Automobile Industry.
On the other hand, talking about ONGC particularly in India, backed up by government polices and small competitors like Reliance Refineries Pvt. Ltd. are exist in the industry and their production and size of the operations is on small basis compared with ONGC. So the competition is almost neutral.
THREAT FROM NEW PLAYERS
In small cars manufacturing industry many global companies like Renault, Nissan, Honda, Hyundai and domestic companies like Tata and Mahindra also manufacturing or planning to manufacture small cars. In this scenario Maruti Suzuki have threat from new players.
As ONGC have special government policies, there are some restrictions by the government for new companies, so the threat from new players is not there.
RESOURCES
Maruti Suzuki has many suppliers for various parts of the car and the company is assembling it in their manufacturing plant. The resources is required for manufacturing car is capital investment in R&D, manufacturing plant equipped with cutting edge technology, human resources like engineers and technicians and most important time, manufacture cars in decided pre set timings in order to deliver it on time.
ONGC is relay on natural resources as it drills wells and take out oil and gas. These resources are limited as we all know that one day these very popular means of energy ends and we have to find another energy source like solar energy, but at present what ever resources we have, using it efficiently and cutting cost in finding right place to find it is very essential. The company invested huge capital in finding oil and gas at various places and for drilling it company is using latest cutting edge technology in order to utilize the found resources at best possible way.
DEMAND AND SUPPLY
Maruti Suzuki is currently holding 55% of the Indian Automobile Market share. Other players are good enough that meets demand and supply of the Indian consumers.
As per US Energy Information Administration, India currently importing 68% of oil from other countries which means demand is there but the supply/production of oil is not as much to meet the demand. As per the same information resource’s calculation by 2025, India will become fourth largest importer of oil and US, China and Japan will be top importer of oil.
EXPANSION
For the expansion of Manesar plant which is currently produces one lakh car per annum, company is making an investment plan of INR 9000 crore to produce 1.7 lakh units per annum by end of 2010.
Russia recently (12th March 2010) invited ONGC to expand their plant in their country which proves a big hit in share prices, rose 0.20% to INR 1086.51.
PUBLIC WELFARE POLICY
Maruti Suzuki runs Maruti Driving School in order to educate young drivers about correct driving style and road safety. From last year the company hikes social scheme spending over 5% as per an internal report.
ONGC runs ONGC public school in Utter Pradesh (India) to educate children from surrounding rural villages.
GREEN EARTH
Maruti Suzuki is practicing 3R- Reduce, Reuse and Recycle for Greener Earth.
ONGC is reducing its carbon footprint and aiming for ISO14064 certification which is zero or neutral carbon by Dec 2011.
DIVERSIFICATION
Maruti Suzuki start selling pre owned cars with name “Maruti True Value Cars”. In India, it is the first company who start selling pre owned cars.
ONGC diversify with refining and retailing of its products like petroleum, liquefied petroleum gas (LPG) and kerosene.
TASK 4
INTRODUCTION
In this Task 4, Author is hired by one of the companies which are in above tasks. Author chooses Hindustan Computer Limited (HCL) and has hired the Author for designing models available for the organizations to change it from “shop” environment to “internet sales”.
OBJECTIVE
- Look into the available models for change
- Investigate available models and describe various models
- Present available models to the management in slides
TASK 5
INTRODUCTION
This task is linked with task 4. In this task Author is going to ensure that the systems developed by myself in previous task are efficient or not. To understand systems Author is going to take out research into all five organizations from previous tasks and comment about is it efficient or not.
OBJECTIVE
- Undertake research into all five organizations from previous tasks
- Evaluate that the systems in the organizations are efficient or not
- Based on the research, recommend systems for hired company (HCL)
- Develop plan to adopt ‘change management’ for hired organization
Author is hired by Hindustan Computers Limited (HCL), in previous task and the implication is continue in this task.
Author is now undertake research into all five organizations from previous tasks and list out their systems and comment about weather it is efficient or not.
MARUTI SUZUKI INDIA LIMITED
Maruti Suzuki has production management system (PMS) is a strategy to achieve manufacturing excellence evolved through participate approach. This system ensures involvement of people at all levels i.e. Managers, Executives and Supervisors. This concept will focus on error free communication and efficient production and after sales services.
As a part of improvement in overall processes & systems in production through pervasive involvement, PMS was launched in Maruti Suzuki. 3G – Give Get Growth is their slogan as they completed 25 years.
All new cars come with latest technology engine which is more fuel – efficient and lower on CO2 emissions. It is launched “Maruti True Value” – A second hand car sales services with trust certifications from Maruti.
The company is performing social responsibilities like welfare camps, Education to underprivileged, greening of supply chain, reducing water wastage. It is practicing 3R – Reduce, Reuse and Recycle for Greener Earth.
EFFICIENT
After looking into company’s systems, Author has come to conclusion that company’s system is efficient.
Hindustan Computers Limited (HCL)
“Employees First, Customers Second” – This ‘World’s most modern management’ as per Fortune Magazine practiced in HCL. HCL is using number of innovative methods of training and development within the company.
Directions – annual company-wide event which allows employees to contribute their ideas in strategic discussions with Board of Directors. U&I – it is two way conversation mechanism between CEO and the employees.
EFC (Employee First Councils) – it is works on common interest of goals for employees which is also includes Women First Council, focus on development and security at work for women.
Through Employee enterprising, in which HCL effortful attempt to human resources, leadership and excellence in their organization, to attract workforce that are distinctly different including all of their commitment in providing excellent quality service.
The company is selling made in India laptops which reflects company’s culture.
EFFICIENT
The company is practicing “Employees First, Customers Second”, is a big success for the company and still company is improving employees welfare so it is clearly visible that system in HCL is efficient.
NIRMA INDIA LIMITED
Nirma’s targeted customers are common – middle class people. The company is always keeping its prices at affordable levels primarily due to their strategy of backward integration projects.
It is established low cost distribution network which helps company to minimize distribution cost and this way company is successful in keeping prices affordable.
With this wider reach distribution chain, it’s products available from the smallest rural village to the largest metro.
With aim of providing quality education, Nirma University is established in Ahmedabad, Gujarat, India. It is diversification for the company from manufacturing soap to salt and now providing education.
EFFICIENT
As company is providing value for money and single product brand spread over multiple corporate entities, the system which is practiced by Nirma India Limited is efficient.
ONGC (Oil and Natural Gas Corporation) Limited
ONGC has support from government policies and through which it earns high profit as there is practically no competition in domestic market. The company is efficient in terms of managing human resource – training and developing.
As it is international company, it has sufficient resources and capital which company is using for development of the company like installing cutting edge technology for modernize its in-house operations.
It is investing huge capital for finding oil different places which is high risk as oil can be found only at few places. As capital and technology is not utilized fully the resources are not using efficiently.
NOT EFFICIENT
As capital and technology are not utilized properly, the system at ONGC is not efficient.
STATE BANK OF INDIA (SBI)
SBI is India’s largest bank and has world’s largest bank owned ATM network. As it has 10,000 branched which is spread from small village to metro city makes the bank easy to access for its customers.
To serve 600,000+ villages is challenge and SBI through its wide network of branches it caters the banking needs of an individual farmer to large companies efficiently.
Being a bureaucratic organization, spreading awareness is a responsibility, Social upliftment plan like NREGA, SSP shall fund for support.
Time to time, changes in customer service and technology changes is well adapted by the bank. It has introduced cutting edge technology and using private leased line network in order to build secured network access in all branches. Trough better customer service and help of the latest technology, it became the most popular bank in India.
Many global competitors like HSBC, Barclays and many other international competitors like ICICI, Citi Bank are present in the market but SBI with its 200 years trust, has 80% of the corporate and 70% of individual market share.
EFFICIENT
SBI is winning Indian customers trust and using its resources efficiently. With the discussion I can clearly identifies that SBI has very efficient system.
Based on the above five companies, my recommendation for HCL (hired company) is as under:
- HCL is already practicing “Employee First, Customers Second”, which proves to be a big hit as employees are very happy with the welfare and other training and development provided by the company.
- As employees are happy, they serve customers better way which ultimately leads to customer satisfaction.
- As HCL’s domestic market is limited, to expand market, company should adopt system from Maruti & SBI, opening more branches and get easy access for repairs. The company shall use Internet and traditional both types to reach more customers.
- To get more customers in international market, company should adopt expansion and diversification system of Nirma and ONGC.
- The company should adopt mixture of all the above listed systems to have positive change in the company.
PLAN TO ADOPT CHANGE
- Setup Internet sales environment as per mentioned in previous task.
- Open more branched across the world in order to establish wide network and easy access for customers as well as easy repair services.
- As employees are satisfied and working on better customer satisfaction, still further improvement leads to customer to customer word of mouth which will help increase in sales.
- For developing in international market, company should expand their operations overseas.
TASK 6
INTRODUCTION
This task refers to the previous task. In this task I am going to investigate about involvement of stakeholders and develop system to involve appropriate stakeholders in the introduction of change. I am going to include examples of Maruti Suzuki India Limited and Nirma India Limited which have undergone change and have involved stakeholders.
OBJECTIVE
- Refer to Task 5 and show the change management which is practiced in Hindustan Computers Limited (HCL)
- Investigate into key role of stakeholders in change management
- Give example of organization which has recently undergone change and role of their stakeholders
Carry out detail analysis and evaluation for HCL and conclude my task
CHANGE MANAGEMENT
For successful change, John P Kotter gives eight steps:
- Increase urgency: Make objectives real, relevant and inspire people to move.
- Building guiding team: create a team of people with right mix of skills and levels.
- Get the vision right: Establish a simple vision and strategy
- Communicate for buy-in: Communicate essential, simple and respond to people’s needs.
- Empower action: Enable constructive feedback and get support from seniors.
- Create short-term wins: Set aims that are easy to achieve in bite size chunks.
- Don’t let up: encourage ongoing progress reporting
- Make change stick: Weave change into culture.
As per above eight steps, I list out change management practiced in HCL:
For change management, HCL is practicing PLAN, LEAD, SUSTAIN.
- Plan understands the organizations – Company identifies and analyzes stakeholders
- Lead – Leadership Buy-in, Communication, Competency Building
- Sustain – Sustenance
Below is a chart of change management plan, developed by HCL Enterprise Transformation Team. HCL is currently practicing the below mentioned change management.
STAKEHOLDERS
Employees
Government
Investors – banks, shareholders
Customers – existing customers, potential customers
EMPLOYEES
Employees of the company are main stakeholders as they want to know that the change will positive for them or negative. When change is apply in the company they want to know that their jobs are in danger or with training they continue their job.
GOVERNMENT
Government is stakeholder as company is paying tax to the government so government is also stakeholder in the company.
INVESTORS
Investors are the persons who invest their money in the company for the proposed change. Investors can be banks which give loan to the company and shareholders are investing their money into the company so they have interest on the company operations and for major change, company have to get approval of shareholders.
CUSTOMERS
As customers are the persons who buys company’s finished goods and services, they are interested in company’s quality of the products and after sales services provided by the company. Potential customers also have stake in the company as they want to purchase a product and after looking into market they choose one company’s product as they find it good.
EXAMPLES
Maruti Suzuki India Limited and Nirma India Limited are the companies which have recently gone under change and I am going to investigate how stakeholders involved in the change.
MARUTI SUZUKI INDIA LIMITED
Over 25 years, Maruti has come across to many changes. Stakeholders involved in the changes took over past years.
As per above graph, key stakeholders of Maruti Suzuki India Limited are as under:
EMPLOYEES
Employees and their families are the key stakeholders in the company as any change in the company directly or indirectly affecting to their jobs.
Maruti has introduced many changes and through training and development Program Company has trained their employees with latest technology and further changes in the procedures in the company.
Company has wide network servicing which covers 1200 towns across the country which are operated by the dealers and the dealer are trained by the training and development team of the company.
CUSTOMERS
As Maruti holds 55% of the market share, it is undoubtedly customers’ trustworthy company for small cars.
Company launched LPG cars which is more eco friendly and also launched latest technology engine which is fuel- efficient and lower on CO2 emissions. Customers are highly interested in this type of cars launched by the company as they are potential buyer or existing customers and plan to buy new car appreciate company’s environment friendly efforts.
SHAREHOLDERS & INVESTORS
Shareholders are investing money and company is allotting shares to them. Shareholders have right to vote on Annual General Meeting (AGM) about the changes company wants to take in future.
Few years back, as part of social responsibility company wants to open driving school in major cities across the country and in AGM shareholders highly appreciated company’s social responsibility and as a result 69 driving schools are operated successfully.
Investors are banks or financial institution who provide loan for short term or long term projects. Mainly company wants money for extension in plant or new idea like “Maruti True Value” – dealing in used cars.
When company comes up with the idea of dealing in used cars with its trust name, investors are the first group approached by the company as Maruti is the first company who is going to come up with such new idea and for buying used cars from the market, company needs sum of large amount. Investors like the idea of selling used cars with the trust name of Maruti. They knew that this is the new type of market company wants to enter and which is launched under “Maruti True Value”. This concept is an operated successfully and many other companies like Hyundai follow the trend.
DEALERS & OTHER BUSINESS PARTNERS
Dealers, Suppliers and other business partners are working with company on day to day basis and their payment cycle is also fixed as per their agreements.
Company launched LPG model and for that company have to appoint new suppliers which obliviously affected existing suppliers of parts as new LPG model is popular and selling more so the parts supplied by LPG model supplier is more than others.
When company plans to sell used cars they also have to convince dealers are they are the persons who represents company’s name in local market and providing after sales service. Negotiations and Agreements were being made at that time in order to sell used cars.
Other business partners like Suzuki International who sells cars internationally manufactured by Maruti Suzuki India Limited. Finished cars are shipped as per order to other international markets including Europe.
LOCAL COMMUNITY & SOCIETY
Company is manufacturing cars and it creates pollution which witnessed by local community & society. It is dangerous to health for society and this way local community & society is also having stake in the company.
With less CO2 emissions and LPG cars company is showing its duty as a citizen to keep environment clean and green. This is beneficial for health of local community and society.
ENVIRONMENT & REGULATORY AUTHORITIES
Each and Every new model has to pass safety checks by the Regulatory Authorities. They check the car’s safety and other functions against the standards set by the government regulatory authorities. When the new model of car passed all test then company can launch it in the market for sell.
Company is also practicing 3R- Reduce, Reuse and Recycle for greener earth, which is nothing but protecting environment by keep the waste level low, reuse things which are possible to reuse and recycle papers and cans for better and greener tomorrow.
NIRMA LIMITED
Nirma is successful because it is offering its products at affordable levels so that middle man can afford that. This is due to their strategy of backward integration projects. It has wide reach distribution which helps lowest cost and speed distribution and availability from the smallest rural village to the metro city.
As company has to stay in the competition, company has make changes in the products and also diversifies in order to be in the market. The company is mainly producing detergent washing power then company starts manufacturing bathing soap and dish wash bar, with time passes by company diversify in to selling iodized salt and recently company opened Nirma University in Ahmedabad, India.
Stakeholders in the company are:
Employees
Customers
Shareholders & Investors
Government
Local Society
EMPLOYEES
Employees’ in Nirma are the trained to adopt change and also they trained to operate new machineries which are installed by the company to maximize production. Company always wins trust of an employee while applying change. It also recruits new employees but its not affecting existing employees as they recruits new employees for expansion or for diversification or simply enhance office paper work.
CUSTOMERS
Most of the customers are common man and in India middle class is of highest population which is targeted customers by Nirma. As large number of population, volume of sales is high and company keep prices at such affordable level that the targeted customers can buy it and company makes profit from large volume sold.
For customers its value for money product which company is offering. Its advert target on middle class man and keeping in mind the targeted customers company always keep its products prices at affordable prices.
SHAREHOLDERS & INVESTORS
Company’s majority shareholders are located in Ahmedabad, India as company’s first production unit based in outskirts of Ahmedabad. Shareholders from the beginning have trust on owner Mr. Karshanbhai Patel’s visionary actions. Therefore, shareholders are without any doubt agree on change the company wants to adopt as shareholders know that it will proves beneficial for the company in the future.
To produce many products and getting enough capital for all operations is very challenging task but management designs flow of money such a nice way that company have to borrow only little amount from the market through financial institutions.
GOVERNMENT
As company is producing detergent and bathing soap, it has to follow government policies for wastage system. Company is using latest wastage system imported from Japan through which there is less risk to the environment as dangerous chemicals and gases are filtered from that machine and processed and then released in the air.
Company has to follow very strict government policies as company has high sensitive chemicals for production of detergent.
LOCAL SOCIETY
Local Society is also having stake in the company particularly on dispose of waste system. Their health are in direct danger, so they are concerned about company’s waste management policy and issues related to fire safety as company has high sensitive chemicals.
Any new change adopt by the company, has stake by the Local Society.
Looking into the above two companies who are recently under gone change and as per above mentioned discussion, how stake holders are involved in the change is clearly identified.
In HCL how change is going to affect on sales and what are the impacts of change, these are the main questions which can be answered through carrying out detail analysis and evaluation.