Monday, April 1, 2019
History And Future Of Mahindra And Mahindra Limited Business Essay
biography And Future Of Mahindra And Mahindra express condescension EssayMahindra and Mahindra limited is a tell of the huge Mahindra group. Mahindra is a telephoner, which has started before independence under K.C Mahindra and J.C Mahindra along with Malik Gulam Mohammed. In 1945 the beau monde was called as Mahindra and Mohammed later afterwards independence Malik Gulam Mohammed left the elite group and he became the finance minister for Pakistan. After his exit the comp both changed its depict into Mahindra and Mahindra (MM).In 1947, the company started its line of merchandise from assembling jeeps and slowly moved on to making utility vehicles and agricultural tractors. With in no quantify MM as emerged as unrivaled(a) of the leading brands in India. Today MM is a diversified group employing much that 65,000 race meet inly. MM has positive presence in sectors corresponding automobile, equipment for farms, financial services, automobile components, after- merchan dise, IT and infrastructure.MM is one of the Indias most respected and reputed blood line groups. Reputation Institute declared MM as one of the most reputed companies in the solid ground. MM is in a a worry flair whole one of the ten Indian companies to get featured in the prestigious Forbes magazine.Over the past few decades the company has grown in the foreign automotive segment.MM has a strong presence in some(prenominal) countries crossways the world including Italy, Spain, Turkey, Australia, South Africa, Brazil, Chile and South Asia.Few of the mall values of the MM are Good Corporate Citizenship, Professionalism, Customer First, smell Focus and Dignity Of The Individual.We dont strike a group-wide mission statement. Our Core spirit is what makes all of us want to get up and come to spend a penny in the morning Anand G. Mahindra.The core purpose of MMIndians are abet to none in the world. The Founders of our nation and of our Company passionately believed this . We will seek them right by believing in ourselves and by making Mahindra Mahindra Limited known worldwide for the quality of its products and services.Milestones achieved MM1945 2nd October 1945 Mahindra and Mohammed established.1949 Jeep conference started.1956 Company shares were listed on Bombay Stock Exchange (BSE).1969 MM started their venture into the world market by exporting utility vehicles and spare disassembles.1975 MM demonstrable diesel engine for over coming the fuel crisis.1983 MM became the market leader in the Indian tractor market.1986 established Tech Mahindra.1994 Implemented BPR programs.2000 MM adopted a new logo.2002 Launched SUV Scorpio.2004 Launched Mahindra World tractor in International Market.2009 MM launched Xylo.2010 MM acquired Ssangyong and a major share in electric elevator car company Reva.Few factors that affect the stock purlieus areSocial factors all business organisation operates within the norms of the society and exists primarily to satisfy its need. Hence, a business organisation has an most-worthful position in genial system. The hearty factors sour the constitution and strategy of business the organisation strives to satisfy the needs and wants of the society.There are many social factors that affect the policy and strategy of corporate management. Culture, value, tastes and preferences, social integration and disintegration, and so on must be a part of e real business organisation.As observed by Keith Davis and Robert Blomstrom, business is a social institution performing a social mission and having a broad influence on the way people live and work together.Many companies that are hugely successful turn over a potbelly to the society.At MM corporate social province is taken genuinely seriously in 2009 MMs employees contributed 49,280 man-hours towards social programs. Mahindra and Mahindra contribute 1% of its profit after tax (PAT) for intermiting the society e rattling year. MM c onsidered education and training as powerful tools to address majority of Indian social challenges. Corporate Social Responsibility has evermore been an integral part of the vision of the Mahindra Group and the corner stone of our core value of uncorrupted corporate citizenship Keshub Mahindra.In a way by helping the society, MM is enjoying the fruits of it, after all business is only a part of the society. I think because of MMs strong CSR activities it is wining the hearts of the people and not allowing any non regimeal organization to point fingers.Ecological FactorsProtection of the environment and preservation of ecological dimension is the business of every business organisation.Ecology deals with the study of the environment, biotic factors, abiotic factors, and their interactions with one an other. A change in any biotic or a biotic factor causes ecological imbalance. Industrial activities, automobiles, emission of fumes or smoke and effluents, and so on, result in envi ronmental degradation. MM is committed to the preservation of ecological balance. MM has turned 400 acres of dim land in to a park MM had planted across 7000 trees near its factories to counterfeit the pollution.Environment is the key factor that no company tries to neglect. MM takes up lot of activities to help the environment. Its a fact that buildings ravage 40 percent of the worlds brawniness feteing this in mind MM started retrofitting their towers for Energy efficiency. The result was that they started consuming 10 percent less energy when compared with their previous consumptions. The retrofitting has affected an average savings of 36,185 kWh / month, the equivalent CO2 save is 29.3 tonnes / month.As carbon-di-oxide is one of those gases that contribute to planetary warming MM inflexible to reduce the consumption of paper. Now MM uses different software to keep the use of paper as low as possible. MM took up an activity of refurbishing of water reservoir, which is now helping 4000 dwellers.Economic FactorsEconomic factors, such(prenominal) as per capita income, national income, resource mobilisation, infrastructure development, cap formation, employment generation, and so on, influence the business environment. The economic performance of a company withal determines its business environment. The economic factors helped MM to some extent to become successful, like getting cheap beat backers and so on but MM had really worked very hard to over come the other things like formation of capital in not so strong economy, dealing with infrastructure problems etc.Government PoliciesThe government policies provide the basic environment for business. Industrial and licensing policies, swop policies, labour policies, export-import policies, foreign exchange policies, taxation policies etc pave the way for business environment.In brief the policies that were changed and their effect on MM. In between the breaker point of 1947 to 1979 the government inte rvention was too much and indirectly the government was play the major sureness. As MM was not a huge company at that time the government protected it. The policies gave an encouragement to the industry that in turn means encouragement to the company. The one disadvantage MM set about was due to licensing competition was curbed. In between finish 1980 to 1990 the policies were a geek liberal and government less involved in companies activities. In this time frame competition slowly picked up which helped MM to be more efficient and efficient.After 1991 government never played a direct consumption but played an indirect role. Due to liberalization MM started raising its standards and started simulating demand. Only after 1991 MM started exporting a lot and investing in RD a lot.The above snap shot shows how important are policies for a business. The success tool for MM was having the flexible temperament, which allowed it to take advantage of the policies.Cultural FactorsThe cultural factors of a business environment should similarly be taken into consideration while scanning the environment and during the policy formation. Policymakers in a global business cannot disregard cultural variables like social and religious practices, education, knowledge, rural community norms and beliefs. A company like MM, which has its growth in a globally oriented way, takes these cultural factors very seriously one example is that MM supplies customised jeeps to Australia, which suits their local style or culture.Geographical factorsIn a global business environment, geographical locations, seasonal worker variations, climatic find outs etc. considerably affect the tastes and preferences of customers, and also prospects and the labour force. The grand of development in various geographical locations considerably influences the policies of the government regarding industrial locations.Some times this helped MM because, if the government wants to develop some exceptio nal region it gives a lot of subsidies for the companies that are interested in put up their plant in that region.Legal FactorsLaw in India regulates every aspect of business. Hence, the legal government plays a very vital role in the business. The legal factors in India (pre liberalisation) that effected MM are like heavy protection from government by using the freedoms, huge delete duties, discrimination done by the government on the basis of price, very high import duties and liberal policies for the foreign players. During this period MM was not so successful in expanding but after liberalisation MM grew at a huge rate.The legal factors post liberalisation period that helped MM grow are like the complete removal of the license raj system, excise duties were continuously restructured, reducing the duties on import and allowing fdi.Labour factorsAlthough labour with in the organisation constitute its internal environment, general labour policies and mood may form a part of th e external environment.MM always strictly followed Labour laws in compensating their employees and other things that fall under that law. atomic number 53 incident were MM dint handled its employees very well was in 1994 when company went for Business Process Reengineering (BPR) their was huge opposition from the labour unions then the company after few months managed the situation and till date the company enjoyed the support of its employees. one of the core principles of MM states that their employees are considered as a very valuable resource.Technological FactorsTechnology is considered to be one of the most important factors of any business environment. That is why the Government has always stressed about modern technology and technology transfer in most of its policies. Foreign investing up to 100 percent is allowed in industries with sophisticated technology. MM has always laid emphasis on RD and always tried to make technologically sound products. The recent acquisition of Ssangyong motors by MM was mainly for the technology, this shows the companies pursual for technology. MM recently acquired the electric car company Reva that shows their prediction for the future day and they what to be ready by not considering technology as a barrier to their success.Competitive Market ConditionCompetitive market narrow is an important environmental factor, especially in a global business environment. In a socialist economic environment, a centralised authority -the government controls the market whereas the combative forces determine the market in a fully capitalist economy. India, which has accepted the middle path, had been fostering both the conditions. As a result of liberalisation, some characteristics integrating the Indian economy with the global economy has emerged. As a result, a competitive market condition has emerged in India, creating a competitive business environment. A situation of thoroughgoing(a) competition is seen in automobiles, fmc g etc.This is often taken as an opportunity by MM to grow and to show its capability in the market. Creating competitive market is the responsibility of every player in the market. MM keeps its responsibility by having competition in terms of both price and non-price with its other counter parts. In a way MM is helping itself and also the economy.A competitive business environment is an essential characteristic of globalisation. The nature of competition varies in different economic systems. In the context of widespread globalisation process, tremendous changes are taking place in the business environment of economic systems. MM concern for the international business environment is understandable in relation to the globalisation of business.ConclusionsAll the above factors have affected MM in positive and negative way. But by studying these very closely has helped MM to take or to develop broad strategies and very long term policies for itself, by having clear apprehensiveness of the different environment factors MM was able to analyse its competitors strategies and, thereby, formulate effective counter strategies.Knowledge about the environment helped MM to be high-voltage in its approach, which means that MM had very flexible structure for their strategies or policies that helped them to be dynamic in nature. Being a company that has expand overseas needs to understand the above factors to have a visibility over the changing socio-economic factors at the national and international level for its stability.The executives of MM were able to adjust to the prevailing conditions and, thus, influence the environment in coif to make it congenial for business.The environmental factor plays a major role for MM to expand overseas.In the post liberalisation period government reducing the import duties helped the company to improve its infrastructure and technologies. With the allowance of fdi in to the country MM started expanding and in a way made it a conglomerat e.The structure of the industry, which includes the company and the competitors in addition to the potential entrants, suppliers, buyers, and so on determines the level of competition. Hence, the environment is influenced by all of them in some manner or the other. The business policy of every player has, therefore, to take awareness of the treats posed by every other player including the entrants. Thus, subject to the influence of a number of factors, the business environment provides opportunities and threats, while its internal environment provides its strengths and weaknesses.