assignment of organisation effectiveness and change

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ASSIGNMENT ORGANISATION EFFECTIVENESS AND CHANGE TOPIC-MARUTI SUZUKI (GROUP EFFECTIVENESS) SUBMITTED TO –Dr. AJAI PRAKASH SIR SUBMITTED BY –SHIVLI CHHABRA

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Page 1: Assignment of Organisation Effectiveness and Change

ASSIGNMENTORGANISATION EFFECTIVENESS AND

CHANGETOPIC-MARUTI SUZUKI

(GROUP EFFECTIVENESS)SUBMITTED TO –Dr. AJAI PRAKASH SIR

SUBMITTED BY –SHIVLI CHHABRA

Page 2: Assignment of Organisation Effectiveness and Change

ABOUT THE COMPANY Maruti Suzuki India Ltd.(maruti

suzuki),commonly referred as Maruti and formerly Maruti Udyog Ltd.

It is the subsidiary of Japanese automobile and motorcycle manufacturer Suzuki.

Maruti Suzuki manufactures and sells wide range of from entry level to hatchback.

The company’s headquartered is at Nelson Mandala road ,New Delhi

Page 3: Assignment of Organisation Effectiveness and Change

HISTORY Maruti Udyog Ltd was established in

February ,1981. Actual production commenced only in 1983. Orginally ,74%of the company was owned by

indian government ,and 26% by Suzuki of Japan.

Maruti history begins in 1970. In June 1971 ,a company called Maruti Limited

was incorporated under the company act. Maruti Udyog limited was incorporated in the

same year.

Page 4: Assignment of Organisation Effectiveness and Change

SUZUKI ENTERS In 1982, a license and a joint venture agreement

is signed between Maruti Udyog Ltd. And Suzuki of Japan.

At first Maruti Suzuki is mainly an importer of cars.

In 1986,the original maruti 800 is replaced by an all new model of the 796cc hatchback Suzuki Alto /Fronte.

Maruti products has been exported to neighbouring countries already.

By 1988,the capacity of Gurgeon plant is increased to 100,000 units per annum

Page 5: Assignment of Organisation Effectiveness and Change

JOINT VENTURE RELATED ISSUES Relationship between govt of India , under the United Front

(India) coalition and Suzuki Motor Corporation over a joint venture was a point of heated debate in the Indian media until Suzuki Motor Corporation gained the controlled stake.

The success of the joint venture led Suzuki to increase its equity from 26% to 40% in 1970, & further to 50% in 1992.

In 1987 ,both the partners had entered into agreement for managing director nomination.

Suzuki did not attend the meeting and felt that Bhaskarudu(managing director) was a proxy for the govt and would not let it to increase its stake in the venture.

If Maruti Suzuki would not have been able to indenise gear boxes then maruti suzuki would have been able to manufacture all items without technical assistance from suzuki.

Page 6: Assignment of Organisation Effectiveness and Change

MAJOR ISSUES Co-branding was a major issue. Maruti Suzuki owned its own brand ‘Maruti’ . All the models that used SMC’s technology and

design was co-branded with the Maruti Suzuki brand. The transfer authorities were asserting that the

‘Suzuki’ brand is likely to be weaker brand in India. Co-branding with Maruti allows Suzuki to gain market

recognition . They hold that this process of piggybacking of Maruti

trademark by the Suzuki trademark has resulted in impairment of Maruti brand value in a big way

Page 7: Assignment of Organisation Effectiveness and Change

MARUTI SUZUKI’Skey success factors

Technology related: R&D facilities and Japanese collaboration. Suzuki internationally known for small cars. Launch of world class quality cars like A-STAR and SPLASH. Manufacturing related : designing cars best suited for Indian market. cost leadership in the market. Distribution related: dealers suppliers and other business partners . local community and society . environment and regulatory authorities.

Page 8: Assignment of Organisation Effectiveness and Change

ORGANISATIONAL CHANGE

RS Kalsi has been appointed as head of domestic marketing and sales ,Maruti Suzuki.

He led to company’s forey into bouyuet of business including maruti finance and maruti true value.

With this organisational changes Maruti Suzuki will continue to strengthen its relationship with customers and partners.

The company has launched various initiative to improve customer service .

Maruti has increased its operational effeciency by increasing productivity,cutting costs and launching new products.

By its quality initiative maruti has reduced its defects per vehicle significantly.

Page 9: Assignment of Organisation Effectiveness and Change

Contd.-Maruti Suzuki’s breathtaking strategies

After their fall in market share due to increasing competition & its failure to met it.

Company adopted ‘cost reduction strategies’. This would save foreign currency and also stabilize prices

that fluctuates with exchange rates. Maruti planned to reduce cost , increased

productivity ,quality and upgrade its technology. Joint venture initiative taken by maruti and its team of

supplies had generated over 29% cost reduction over 3 years for maruti.

With the program of organisational redesign ,rationalization of cost and enhanced productivity,Maruti bounced back to competition with 50.8% market share and 40% rise in profits for the FY02-03.

Page 10: Assignment of Organisation Effectiveness and Change

Contd. It has ventured into maruti finance ,maruti insurance

and true value . This helps them in making customer experience

hassle free and helps building customer satisfaction. MARUTI FINANCE- Maruti has tied up with 8 finance

companies , it has entered into this & created revenue stream for maruti.

MARUTI INSURANCE- Maruti has tied up with National Insurance Company , Bajaj Alliance etc.

TRUE VALUE-It is a initiative to capture used car market , MUL’S entry into this helped them to retain customers.

Page 11: Assignment of Organisation Effectiveness and Change

DISINVESTMENT & IPO In 2002, Suzuki motor corporation(SMC)

took over management contol over MUL from the govt for a consideration of 1000 crore.

Suzuki’s control meant maruti did not have to mind the whims and fancies of ministers and bureaucrates.

Suzuki also built 2- wheeler facility in India for manufacturing motorcycle and scooters through a joint venture.

Page 12: Assignment of Organisation Effectiveness and Change

GROUP EFFECTIVENESS Maruti Suzuki collaboration led to huge industrial

development in India. Maruti Suzuki combines the superior technology of

Japan and sheer engineering design brilliance of India.

Their collaboration enables them to achieve no 1 , by making higher sales and offering customer care products.

Maruti Suzuki is reducing the weight of car which enables the company to achieve the economies of scale.

Maruti Suzuki stands for value as it stands for performance.

Page 13: Assignment of Organisation Effectiveness and Change

Contd. Maruti Suzuki is expanding its product

basket by offering value(swift,sx4) at different income level.

Maruti Suzuki India, is working on customers specific marketing strategy to increase its sales among the first time buyers.

The company have maximum 47% market share among first time buyers.

Page 14: Assignment of Organisation Effectiveness and Change
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SCOPE OF FUTURE GROWTH OF MARUTI SUZUKI

The company’s network of sales and services outlets continues to be its strength.

Manesar plant reopens under full security of employees.

MSIL to track its new alto launch which is priced about 2 lakhs ,Suzuki making MSIL a small car manufacturer hub, volume growth of 10.8% for FY2012.

Net sale grew by 27.3% to 10,788 cr in 1sr quarter FY13, EPS estimates to be INR 66.87% and ROE of 12.1% for FY13.

Coming up with new plant and skill development center in Gujarat and R&D center in Haryana.

Share in diesel vehicle is 38% during first quarter FY13.

Page 17: Assignment of Organisation Effectiveness and Change

CONCLUSION Maruti Suzuki has proven that it is always ahead

of its competitors because of continous innovation and technological upgradation .The company has set a benchmark of excellance because of its research and development activities.Considering growing pollution ,the company introduced advanced K series engines in its vehicles which resulted in reduction of CO,THC and Nox emissions by almost 50%.As economic performance is concerned ,Maruti Suzuki ‘s last few year statistics of domestic sales ,exports,narrates that still Maruti Suzuki is the leader of automobile industry.

Page 18: Assignment of Organisation Effectiveness and Change

REFERENCES www.jbm-group.com www.marutisuzuki.com www.slideshare.net/indra.Kamble/term-pa

per-on-marutisuzuki economicstimes.indiatimes.com en.wikipedia.org/wiki/maruti-suzuki

Page 19: Assignment of Organisation Effectiveness and Change