Anand Mahindra Entrepreneurship and Innovation

1.0 Introduction:
In 1981, he was joined the Mahindra and Mahindra Ugine steel organization as a
finance manager. In 1989, he was climbed high his carrier as a Deputy Managing
Director and President. At the stage, a company looked to start new business areas of
hospitality and real estate development. He gave more effort, after that he was placed a
Deputy managing director of Mahindra and Mahindra in 1991. In 1997, he was
appointed as a managing director and vice chairman in 2003. He was rooted as a copromoter of Kotak Mahindra finance limited. It was optimized into a bank in 2003, after
that his position was reached into leading private sector banks (Mahindra, 2012) Anand
Mahindra is an active participant in co-curricular activities. He used to play tennis, and
now has taken up sailing. He is considered to be one of the most reputed Indian
industrial houses with market leadership in many businesses vertical including utility
vehicles like tractors, after market, finance, holidays and IT. Mahindra and Mahindra has
grown into one of the nations leading companies, employing more than 117000 people
around the world under his leadership. He frequently shares his business ideas and
views, through writing in some of Indias leading business and magazines. He gave
USD 10 to Harvards humanities center, in the name of his mother. This is amongst the
largest gifts received by the university, so far (Nai, 2012, september 19)

1.1 Main objective of the theory:

To analyze the extent of Corporate Social Responsibility practices of Mahindra &
Mahindra organizations. The study outcomes learn about innovation and understand the
leadership role in competitive marketing field.

2.0 Literature Review:

Global Influencer:
Anand Mahindra is a CEO of Mahindra and Mahindra group, workers 19000 peoples
and has a overall earnings of cross 19 billion US dollar (15 billion Euros). He was first
worked in the Mahindra Ugine Steel. Recently, Mahindra has forged a partnership with

the cole Centrale de Paris to train engineers in France and in India. France has a huge
potential, even though I know that today, saying it is surprising the French people.
(MEC, October 10th 2014).
A regular at the World Economic Forums annual meetings, Anand was the WEF cochair in 2009. Here presents Indian industry at several global meets, including the
APECCEO Summit in 2009.
Anand was included in Fortune Magazines list of The Worlds 50 Greatest Leaders in
2014. Fortune magazine also named him as one of the top 25 most powerful business
people in Asia for the year 2011

Beyond business:
An and is also a Life Trustee on the Board of Naandi Foundation, a leader in providing
meals to 1.3 million children daily and academic support in over 1800 government
schools. Naandi also brings the best of agriculture and natural resource management to
the largest number of small and marginal farmers across the country.
Anand believes that a study of liberal arts is essential in shaping leaders of the future.
He has given one of the largest personal donations overseas by an Indianan
endowment of $10 million to the Harvard Humanities Center, which is now the Mahindra
Humanities Center.
Anand also serves as a member of the International Advisory Council of Singapores
Economic Development Board, which is the lead government agency for planning and
executing strategies to enhance its position as a global business centre.

Industry Participant:
Anand Mahindra is the co-founder of the Harvard Business school association of India,
an association dedicated to the promotion of promotional management in India.
He was a co-promoter of Kotak Mahindra Finance, which in 2003 was converted into a
bank. Kotak Mahindra is one of the fore most private sector banks today.

A leading industry figure, he has served as President of the Confederation of Indian

Industry in 2003-04 and has also been President of the Automotive Research
Association of India (ARAI). He serve dont he Boards of the National Stock Exchange
of India and the National Council of Applied Economic Research, and as a member of
the Council of Scientific & Industrial Research.

Contribution to Thought Leadership:

Anand frequently shares his views and ideas on the Indian economy and business
through his writings in some of Indias leading business magazines.
He is one business man to have grasped the power of social media and has seta trend
on how it can be used for business, brand building and consumer interaction. He is on
Twitter and has over two million followers.
He was ranked third in the inaugural World of CEOs.com 2013 ranking of the Top 30
CEO son Social Media.

2.1 The DNA of the entrepreneur model:

Tenacity and persistence:

Instead of being disheartened by this experience. Anand realized that the company
would have to develop products to hold its own in a competitive market. He decided to
make a major bet and committed significant and committed significant financial
resources develop a new small SUV, specially designed for the Indian market. The
experience of running a manufacturing unit that produced components for the
automobile industry, among others, made Anand better equipped to tackle the
challenges that lay in his carrier

Passionate and focused:

A strong believer in the power of liberal arts to shape the leaders of the future. Leaders
need to encourage a culture of risk taking and innovation, which involves knowing how
to manage the fear of failurethe enemy of innovation. Failure must not be penalised,
but instead be used as a learning tool and leveraged to create success. People who do
this are good with people, but can also handle numbers. They can think creatively and
analytically; they have strong intellectual and emotional quotients. In essence, they use
their whole brain.
Build an ecosystem:

People who have worked with Mr. Anand Mahindra credit him with repairing technical
glitches at automobile service industry, disarming and recreational technologies
technologists suspicious of the company and fostering collaboration in a turf-conscious
workplace. One of the key initiatives that the Group undertook in 2009 was
implementing a massive change management programme, Mahindra Rise, which
became the foundation of its talent and leadership ecosystem. Rise seeks to create
sustained business outperformance and competitive advantage through a cultural
transformation that rests on three attitudes.
Seek out niches and market gaps:

Rural market is emerging market, so Automobile companies are focusing upon this
potential market. 84% purchaser of Mahindra vehicles are between 20-40 years of age
group. Around 50% purchaser of Mahindra vehicles belongs to income group less than
Rs. 10 lakhs per annum. This also signifies that rural market despite less income than
urban part can be major market for automobile companies like Mahindra & Mahindra.
Factor analysis of surveyed respondents reveals that for rural people most important
factor while purchasing vehicle is Utility of the vehicle. Wilcoxon signed rank test
performed on the surveyed respondents establishes that sale and promotion activities
carried out by Mahindra automobiles has significant impact on purchasing behavior of
the respondents.

Success and culture value:

The fifth leadership quality, and the most important, is creating a culture of trust, where
by people trust the leader and the leader, in turns, trust his people. Most important is
authenticity and creditability, to walk the talk, so to speak. If leaders are truthful
people, there is no second guessing their meanings. This includes work design,
organizational

structure,

the

recruitment

and

induction

process,

performance

management system, communication strategies and the talent management system.

These values must then become synonymous with the corporate culture and identity,
which ultimately affect the everyday behavior of employees. It is not enough to focus on
just one or two parts of the firms functions. What is desired is a holistic approach that
maximizes the chances of creating the intention, attitude and resultant behavior among
employees.
Non-conformist:

Mahindras non conformist ideas took him to the US for higher studies when most of his
peers were eyeing oxford or Cambridge. The Wharton education seems to have shaped
his world view. In the mould of large American corporations, he too delegated
responsibilities to his managers. To me, the value system Inculcated in the group and
his professionalism are his greatest legacies remembers Nanda , a longtime confidante
and colleagues, Anand Mahindra was empowering professionals when family
businesses were run solely on the promoters discretion.

2.2 Review of the Entrepreneurs actual entrepreneurship:

The fact that the Mahindra Group consists of a myriad of companies seems to question
the entire concept of focus. However, Anand believes that he already chopped the
deadwood in 1994 (exiting businesses like nuclear engineering, oil drilling, etc) and
set six areas as key focus businesses for the group. Each of these groups has to meet
the bluechip criteria, which means the business must: (a) be a leader in its industry;
(b) have innovation as a key model; (c) have global potential; and (d) deliver on
demanding financial goals.
With Anand removing himself from active management (kicking myself upstairs), all
the businesses were given dedicated presidents to provide managerial focus. He
believes giving managerial and financial independence to these businesses is what sets

them apart from the conventional conglomerate structure that tends to focus on topmanagement control. Anand is now moving forward to list each of these businesses,
which are as diverse as Mahindra-British Telecom (IT), Club Mahindra (time-share
holidays) and M&M Financial Services. All of these will be IPOed and will therefore
become independent.

Targets for each business:

Anand has clear targets for each of M&M.s three cylinders. UVs- To be a globally
recognized brand, tractors . to be a dominant player, and auto components. To be the
largest automotive component conglomerate in India (.Wed like to be a Dana, Spicer or
a Lear..). Similarly, for the group Anand doesnt believe in one single goal. He chooses,
instead to focus on leadership, innovation, a global presence and delivering on the
financials. Everything else, including size, which he believes doesnt matter, will then
follow.

3. Analysis and Discussion:

3.1 Related and critically discusses his entrepreneur role:
Changing the culture of complacency:

There are no silver bullets. When I started in 1991, there was an air of complacency and
efficiency was low. I had to make the message clear that there were no free lunches
and took a tough stance of not increasing bonuses that year. I faced huge resistance
and was even surrounded by workers at the Kandivali factory. But eventually we worked
out a way.
We faced a strike at our Igatpuri factory. Even there, we demanded a 100% increase in
productivity and got 120%. Changing the culture of complacency and signalling that
there were no free lunches, were the key turning points. I would say that the Bluechip
Conference in 2002 was really a turning point. We got the top 250 managers in a group
and set out a roadmap and a set of strategies. When the managers went out, they got a
whole lot of people aligned to a roadmap. That really was the key. Having done that, we
achieved
motivation and results through financial incentives and intellectual alignment.

Innovation is the key driver:

If I were to put all my bets on one thing, then it would be about being innovative. What
we have set are very clear targets for innovation for all the companies. For example, for
the product companies, there are very specific targets on the percentage of revenue,
which will come from products that didn.t exist four years back. There is a matrix of
innovations. In a way, I can look back with satisfaction and say that I have made
innovation a key driver of business for the entire group and not just for M&M as
represented by the Scorpio. Today I think the biggest achievement is that people
recognize that M&M is the biggest player in the industry and ask keenly, what is it doing
next?

Building pride in the workplace:

In fact, I think it works better when the things are bad. I worry when the times are good.
Even when our share price fell to a low of Rs67, we knew that what we were doing was
fine, and we knew that we were building businesses that would have value. But the
market wasnt recognizing that. We realized that it was because we werent putting
financial performance at the centre stage. That is when I used self-motivation and peer
pressure. I even showed the employees a clip of, Chariots of Fire, and told them that if
you have pride in what you do, you have to pick yourself up and run to the finish line. So
I set out targets of ROCE and free-cash flow because thats what the market will
respect. We articulated an aspiration to double our stock price within three years and
did it in a year. It changed the complexion of the company. It is about pride. Its not
about getting ROCE, that is a subset.

Pace of innovation is a constant race:

If anything keeps me awake, it is the pace of innovation. Its always a constant race.
Innovation may not be a new product it may be a new cost angle, a new service. I
constantly ask myself .Why cant we be the pioneers in the new process or the new
product?. The challenge to me is to make the customer say, .I have to have that
product.. And its all about innovation. When you get that, magical things happen
because thats when the products and services start flying off the shelves When you
have that virtue the cash expands and your efficiency goes up. To me the beginning of

the whole magic is that the customer, at the end of the day, is banging at the door
saying, .give me that.

3.2 Comparison with other entrepreneurs in the group:

Why Anand Mahindra group:
Leadership shortlisted by the group:

Anand Mahindra, Subrata roy, Narayana Murthy

Motivation for studying Anand Mahindra:
Recent extensive media coverage due to Satyam Take over
Transformation in Mahindra group
No negative publicity
Consistent successful gambles
Economic times Business leader of the year award-2009

4. Conclusion and Recommendations:

He is playing a more vital role in entrepreneur as per a leadership position. Few gave
him much of a chance of success when Mahindra and Mahindra appointed Anand
Mahindra as his successor. In his effort to enable M&M to function as a group despite
governments unwillingness to allow it, M&M had installed very able mangers to head
each of the major companies in the group. In order to demonstrate that he did not
control them, they more or less independently ran their companies. The Boards were
weak and some of these Heads over the years became personally identified almost as
owners of the companies. Mangers and staff were exclusive to each company, not to
the Group. Finances were also exclusive to each company. As satraps they became
accustomed to act independently. They were all much older than Anand Mahindra . He
had worked in different situations.

4.1 Summery of key findings:

Creativity and Innovation

 Experimental, Risk-taking
Courage of take up challenges
Decision to diversify- ability to deal with slow down

4.2 What did I learn?

Most ventures begin as one persons idea, grow to attract a small group of young
people who shape the idea and form the basis of the organization, and then expand to a
large group of young people once the venture is launched.

4.3 What others can learn from this person?

Yes. People do very clear analysis. Employee forecast the situation. How the market will
be, the demand, the area, the surplus, bottlenecks etc. Entrepreneurship does the
analysis annually on my own as well as takes external advice. In 2008 if I foresee
something, I will go for it. Fortunately my gut feeling has not gone wrong. Personal
experience and feeling also helps.

4.4 What is the future outlook of his entrepreneurship?

Invest Rs 100 crore in the IT sector in Punjab

Focus on the agri business in Pun jab under the Mahindra Shubh Labh project
On the way to finalizing a joint venture with Renault
Bidding for Human Resource management for railways
Entering the motorcycle segment
Going to start a car services business

4.5 What do you suggest people to develop entrepreneurship?

Technology plays a crucial role in the future of entrepreneurship. Entrepreneurs have
the chance to do both strategic planning and administrative work for their business.
They can get involved in all sides of their business because the internet makes it
possible to do so.
The internet and especially social media tools make it possible to turning passion into a
thriving business and anyone can create a personal brand and leverage it would wide
through technology.