Professional Documents
Culture Documents
Final SM - V2
Final SM - V2
Final SM - V2
Submitted to:
Dr. Naman Sharma
Submitted by:
Group J
Section B
Disha Garg (68)
Hemant Jadhav (72)
Vaibhav Bajpai (106)
A. Mission
Be responsive to customer needs, delivering optimal solutions and value-added services
Ensure sustainable growth and professional excellence using state-of-the-art technology,
process-driven approaches, eco-friendly solutions and IT enabled tools
Foster a culture of mutual trust, respect, teamwork, continuous learning, innovation, challenge
and employee empowerment to provide a growth-oriented workplace
Adhere to fair, transparent and ethical practices in interaction with all stakeholders, in keeping
the tenets of good corporate citizenship
Remain flexible and agile, continually adapting to the changing business environment
B. Vision
L&T shall be a professionally-managed Indian multinational, committed to total customer
satisfaction and enhancing shareholder value
L&T-ites shall be innovative, entrepreneurial and empowered team constantly creating value
and attaining global benchmarks
L&T shall foster a culture of caring, trust and continuous learning while meeting expectations
of employees, stakeholders and society
C. Values
Every aspect of L&T's businesses is characterised by professionalism and high standards of
corporate governance. Sustainability is embedded into our long-term strategy for growth.
L&T is committed to fulfilling its economic, environmental and social responsibilities while
conducting business efficiently. It conserves natural resources and enhances social equity for
sustainable growth, and fosters a culture of trust, caring and continuous learning while
meeting the expectations of all stakeholders.
L&T believes in inclusive growth by empowering communities & accelerating development.
L&T leverages its inherent strength and capabilities to implement sustainable CSR programs
towards ‘Building India’s Social Infrastructure’.
L&T follows a Green Portfolio as:
(2) Porter’s Five Forces
Threat of New Entrants (+)
Firms producing large capacities have a cost advantage because economies of scale are
difficult to achieve in engineering industry. Production is costlier for new entrants
Firms in the industry sell differentiated products. There is a strong emphasis on advertising
and customer service. Thus, it is difficult for new firms to enter
There are high capital requirements in the industry. Capital expenditure is also high
The government policies within the industry require strict licensing and legal requirements.
This makes it difficult for new entrants to join the industry
The number of suppliers in the industry in which Larsen Toubro operates is a lot compared
to the buyers. This means that the suppliers have less control over prices
The product that these suppliers provide are fairly standardised, less differentiated and have
low switching costs. This makes it easier for Larsen Toubro to switch suppliers which
makes the bargaining power of suppliers weaker
This industry’s profits are closely tied to that of the suppliers. These suppliers, therefore,
have to provide reasonable pricing. This makes the bargaining power of suppliers a weaker
force within the industry
The number of suppliers in this industry is a lot more than the number of firms producing
the products. Thus, the buyers have a few firms to choose from, and therefore, do not have
much control over prices
The product differentiation within the industry is high, thus the buyers are not able to find
alternative firms producing a particular product thus weakening their power
The income of the buyers within the industry is low. This means that there is pressure to
purchase at low prices, making the buyers more price sensitive and making their bargaining
power weak
There are very few substitutes available for the products that are produced in the industry.
There is no ceiling on maximum profit that firms can earn in the industry
The very few substitutes available are of high quality and expensive, thus, come with a high
switching cost. Threat of substitutes is thus weak
There are few competitors which engage in competitive actions to gain position and become
market leaders. This makes the rivalry among existing firms high
The fixed costs are high. Thus, companies push to their full capacity. Companies reduce
their prices when demand slackens. Thus, high rivalry exists
The industry is prone to disruptions in the supply-demand balance, often leading to
overproduction i.e. cutting down prices to ensure sales. Thus, high rivalry exists
The strategies of the firms within the industry are diverse that results in them running head-
on into each other regarding strategy
(3) TOWS
(4) BMC
The Business Model Canvas (BMC) is a strategic management tool to quickly and easily define and
communicate a business idea or concept.
1. Key partners: List of external companies/suppliers/parties a company needs to achieve its key
activities and deliver value to the customer
2. Key activities: Actions that business undertakes to achieve the value proposition for its customers
3. Key resources: Resources needed practically to undertake the action/activities of business
4. Value proposition: Fundamental concept of the exchange of value between business & clients
5. Customer relationships: It is how a business interacts with its customers
6. Channels: The avenues through which one’s customer comes into contact with its business and
becomes part of its sales cycle
7. Customer relationships: It is how a business interacts with its customers
L&Tcan
L&T canfocus
focusononinnovation
innovationtoto It can have multiple suppliers within its
differentiate its products andspend
differentiate its products and spendon on supply chain. For example, it can have
marketingtotobuild
marketing buildstrong
strongbrand
brand different suppliers for its different
identification. This will help it retainits
identification. This will help it retain its geographic locations. This way it can
customers
customers ensure efficiency within its supply chain
It can focus on providing greater quality L&T needs to build a large customer
in its products. Buyers would choose its base, as the bargaining power of buyers
products at a lower price as compared to is weak. It can do this through marketing
substitute products that provide greater efforts aimed at building brand loyalty
quality but at a higher price
L&T can purchase raw materials from its It should use the already started foreign
suppliers at a low cost. If the costs or operations to tap on the opportunities
products are not suitable, it can then present in the outside market. It should
switch its suppliers because switching get more contracts and projects in the
costs are low outside markets
L&T when follows the industry L&T should use its reputation and core
standards can always prevent wastage of competencies to win and complete more
money and resources. This can help fight and more projects abroad and thus
with the rising cost of construction gaining the revenues maximized in those
materials geographies also
It should go for more joint ventures The group’s organization structure has to
when required to increase the asset base be overhauled so as to increase the
and get more and more projects and coordination among the so many
contracts to increase the revenues subsidiaries and s of the company
Rising cost of working capital is beyond The govt spending more and more on
the company’s control as it cannot infrastructure and smart cities. It is the
control the interest rates but it can golden time for the L&T to raise capital
always go for cost optimization to reduce for winning more and more contracts and
costs of operations using its core competency to earn more
projects and earn revenues.