GENERAL MANAGEMENT_pdf

You might also like

Download as pdf or txt
Download as pdf or txt
You are on page 1of 21

GENERAL MANAGEMENT

Internship Experience
Name Company Student Prep Int exp. Feedback
Prakrut TAS Reading in detail about Air India Cargo Division Great experience,
Chauhan company, if its dream (B2B) hospitability, place to
(9/9/8) company know everything Analyses international work
routes of Air India, routes
with greatest potential
Gap of 2 Interview exp.:-
years Online application form Customer experience and
Online gamified assessment expectation service
Chairman GDs
Final round – PI – CV Find out KPIs which can
heavy substitute customer
experience survey
Sai Bhargav Capgemini Cases are similar to Capgemini Induction
(9/9/8) Gen Mang. consulting
Regular Conclub sessions Cookie project

National Winner of their CTI office -> hard core


Case competition (PPI) tech part of consulting
Worked in blockchains,
GD round (2 cases) and all new tech that
1st Round – Digital Capgemini was doing
transformation/
sustainability cases On a project offering a
German client CBDC
2nd Round -> Asking infrastructure
question for cases
Tanisha Axis bank for GenMan, I worked a lot was assigned 2 projects.
Pandey on my HR answers One was competitor
B. Com, "the interview lasted for benchmarking and the
Fresher about 25-30 minutes. second was an ongoing
It revolved around my project which was the
profile- in depth questions board’s initiative.
about my profile"
Krshitij Axis Bank- Interview process: single Internship exp: induction great WLB, hybrid model
Fresher ALP- CV based interview (know (2days), merger sector,
(8/8/6) GenMan every word on ur CV, every Bank merger happened
line- speak 15 min), just before SIP,
behavioural questions of subsequent
100-200words communications
Vaibhav Zomato Preparation: Consulting Did 3 projects for Chill company to work.
Sahai Casebooks and Product Hyperpure (fully owned Not very high work
(9/9/9) cases, Assignment of subsidiary of Zomato) pressure(only in
societies 1) Improving the Hyperpure) but expects
9 months forecasting accuracy of you to work fast atleast 2
workex as Interview Experience - 2 daily sales. Based on ML projects. People are
Business rounds of Interview and Heuristic Maths. highly qualified and
Analyst Round 1 - Solved a case of 2) Analysis of SOP of supporting. Overall great
increasing the revenue and a customer delight working experience with
product case on solving process(Customer Care) amazing learning curve.
conflict of demand of 2 3) Launching a flash sales
units and supply of 1 unit marketing campaign
Round 2 - HR + Technical
of Improvements in apps.
How to improve restaurant
transparency of Restaurant's
feedback leading to how to
enhance the rating system of
Zomato app
Shreyansh TAS Prioritised tasks related to Tata Consumer Products Career growth prospect is
Dubey his SIG's (Genman, nice, and the work culture
(9/8/9) Marketing, Prodman), read 1. Develop a hyper local is good. However it's a
previous interviews and strategy model for TATA little slow paced,
other materials for help, Tea Premium Pack's depending on the
gave 50-60 mock launch in Chattisgarh individual.
interviews. 2. Assess feasibility in
launching TCPL in
1. HR questionnaire Bangladesh
2. Gamified assessment 3. Strategise for market
3. Chairman GD (Tips: be activation in Dhaka
authentic, maintain a good
body language)
4. Interview (timed,
discussion usually around
45 mins to 1 hour, on CV
and the result of
previous rounds)
BUSINESS MODEL, SWOT AND PORTER’S 5 FORCES
1)TATA Group

BUSINESS MODEL/ VALUE CHAIN

The Tata Group was founded by Jamsetji Tata in 1868, and it has since grown into one of India’s largest and
most respected conglomerates. With over 150 years of experience and a presence in various industries, including
automotive, IT services, consumer goods, steel, and energy.

Customer Segments
Tata Group serves a wide range of customer segments, given its diverse portfolio of companies and industries.
Some prominent segments include:
• Individual consumers: Tata caters to individual consumers through its automotive (Tata Motors),
consumer goods (Tata Consumer Products), and retail (Trent Ltd) businesses.
• Businesses and organizations: Tata’s IT services (Tata Consultancy Services), steel (Tata Steel), and
power (Tata Power) divisions serve various businesses and organizations across different sectors.
• Governments: Tata Group companies also work with governments and public sector organizations,
particularly in the areas of infrastructure, power, and defense.
Value Proposition
The Tata Group’s value proposition is built on several pillars:
• Quality and innovation: Tata is known for delivering high-quality products and services across its
various businesses, driven by a focus on innovation and technology. For example, Tata Motors has introduced
innovative vehicles like the Tata Nano, the world’s most affordable car, and the Tata Nexon, a highly-rated
electric vehicle.
• Brand reputation and trust: Over the years, Tata has earned a strong reputation for integrity, ethical
business practices, and corporate social responsibility. This has instilled trust among customers and stakeholders
alike.
• Diversification and synergy: Tata’s diverse business portfolio allows it to leverage synergies across
various industries, providing a competitive advantage. For instance, the Tata Group’s presence in the automotive
and steel sectors enables it to optimize resources and share expertise in manufacturing and technology.
• Social impact: The Tata Group has a long-standing commitment to community development and
environmental sustainability, which adds to its appeal as a responsible corporate citizen.

Channels
Tata uses a variety of channels to reach its customers, depending on the nature of the business and the target
market. These channels include:
• Direct sales: Many Tata Group companies, such as Tata Motors and Tata Steel, engage in direct sales
through dedicated sales teams and business-to-business (B2B) relationships.
• Retail outlets: Tata operates numerous retail outlets across its various businesses, including Westside
and Star Bazaar in the retail sector, and Tata Motors’ dealerships for automotive sales.
• Online and digital channels: Tata Group companies also leverage online platforms and digital
channels to reach customers. For example, Tata Consultancy Services (TCS) utilizes its digital presence to
engage clients, while Tata Cliq, the group’s e-commerce platform, serves online shoppers.
• Partnerships and collaborations: Tata frequently collaborates with other companies and
organizations to expand its reach, such as its partnership with Starbucks to operate Starbucks stores in India.

Customer Relationships
Tata Group fosters strong customer relationships through various means, including:
• Personal assistance: Tata provides personal assistance and support to its customers across different
businesses, with dedicated customer service teams and after-sales support.
• Loyalty programs: Tata has introduced several loyalty programs to reward and retain customers, such
as the Tata Inner Circle program, which offers benefits and discounts for shopping at Tata-owned retail outlets.
• Community engagement: Tata is committed to engaging with its customers and stakeholders through
various community initiatives, events, and corporate social responsibility programs.

Revenue Streams
Tata Group’s revenue streams are diverse, given its presence in multiple industries. Some key revenue streams
include:
• Product sales: Tata generates revenue from the sale of products across its automotive, consumer goods,
and retail businesses.
• Service fees: TCS, the group’s IT services arm, earns revenue through service fees from clients in
industries such as banking, telecommunications, and manufacturing.
• Licensing and royalties: Tata earns revenue from licensing and royalties, particularly in its technology
and innovation-focused businesses.
• Partnerships and collaborations: Joint ventures, partnerships, and collaborations with other companies
also contribute to Tata’s revenue streams.

Key Resources
Tata Group’s key resources include:
• Physical assets: Tata’s extensive physical assets, such as manufacturing plants, retail outlets, and office
spaces, are crucial for its operations.
• Human capital: Tata’s skilled workforce, including engineers, researchers, and management
professionals, is central to its success.
• Intellectual property: Tata’s strong intellectual property portfolio, including patents, trademarks, and
copyrights, helps protect and leverage its innovations.
• Brand value: Tata’s strong brand reputation and trust among customers and stakeholders are invaluable
resources that have taken decades to build.

Key Activities
Tata Group’s key activities can be broadly categorized into:
• Operations and manufacturing: Tata’s manufacturing capabilities, particularly in the automotive and
steel sectors, are critical to its success.
• Research and development (R&D): Tata invests heavily in R&D to drive innovation and maintain a
competitive edge in various industries. For instance, TCS has Innovation Labs, which focus on emerging
technologies and their applications in different sectors.
• Marketing and sales: Tata’s marketing and sales efforts are essential for promoting its products and
services and generating revenue across its businesses.
• Supply chain and logistics management: Tata Group relies on efficient supply chain and logistics
management to optimize its operations, reduce costs, and ensure timely delivery of products and services.
• Corporate social responsibility (CSR) and sustainability initiatives: Tata’s commitment to CSR and
sustainability is a crucial aspect of its overall business strategy, with a focus on community development,
education, healthcare, and environmental conservation.

Key Partnerships
Tata Group has forged various strategic partnerships and collaborations to enhance its capabilities and market
reach. Some notable examples include:
• Starbucks: Tata Global Beverages and Starbucks have a joint venture, Tata Starbucks Ltd, to operate
Starbucks stores in India, using locally sourced coffee beans and leveraging Tata’s retail expertise.
• AirAsia: Tata entered the aviation industry by partnering with Malaysia’s AirAsia Group to form
AirAsia India, a low-cost airline operating in the Indian market.
• Jaguar Land Rover: In 2008, Tata Motors acquired the iconic British luxury automotive brands Jaguar
and Land Rover, which has since been transformed into a profitable and innovative business unit.
Cost Structure
Tata Group’s cost structure varies across its diverse businesses, with some key cost drivers including:
• Raw materials and manufacturing: The cost of raw materials, such as steel and aluminum, and
manufacturing operations are significant cost drivers for Tata’s automotive and steel businesses.
• Employee salaries and benefits: With a large workforce, employee salaries and benefits constitute a
considerable portion of Tata’s expenses.
• Research and development: Tata’s investment in R&D contributes to its cost structure, particularly in
technology-intensive businesses like TCS and Tata Motors.
• Marketing and advertising: Tata incurs marketing and advertising expenses to promote its products and
services across various channels.
• Logistics and supply chain: Tata’s logistics and supply chain costs are critical components of its cost
structure, particularly in its manufacturing and retail businesses.
The Tata Group’s success can be attributed to a versatile and robust business model that has evolved over the
years. By using Alexander Osterwalder’s Business Model Canvas, we can better understand how Tata has
effectively balanced its diverse business portfolio, leveraged synergies, and maintained a strong focus on
innovation, quality, and customer satisfaction.

Tata Group operates in more than 100 countries and across six continents, with a mission ‘To improve the
quality of life of the communities. There are 29 public registered companies. Tata Group has its headquarters
named Bombay House in Mumbai, India.

SWOT ANALYSIS

1. Strengths of Tata

● Sublime Performance in New Markets- Tata has constructed an ability to go to new business sectors
and make them. The augmentation has helped the relationship by building new revenue sources and
growing the monetary cycle peril in the business areas it works.
● Strong Distribution Network- Over the years Tata has built a reliable distribution network that can
reach the majority of its potential market.
● Strong Dealer Community- It has assembled a culture among wholesalers and sellers where the
vendors advance the organization’s items as well as put resources into preparing the outreach group to
reveal to the client how he/she can discrete the most extreme advantages out of the items.
● Reliable Suppliers- It has a solid base of dependable providers of unrefined substance in this way
empowering the organization to conquer any inventory network bottlenecks.
● Strong Brand Portfolio- Over the years Tata has invested in building a strong brand portfolio. The
SWOT analysis of Tata simply underlines this reality. This brand portfolio can be amazingly valuable
assuming the association needs to venture into new item classifications.

2. Weaknesses of Tata

● Organization Structure- The organizational structure is only viable with the current plan of action
accordingly restricting development in contiguous item fragments.
● Demand Forecasting- Feeble product demand forecasting leads to a higher rate of missed
opportunities compared to its competitors. One reason why the day’s stock is highly contrasted with its
rivals is that Tata isn’t generally excellent at request anticipation and this winds up keeping higher
inventory both in-house and in the channel.
● Financial Planning- It is not done properly and efficiently. The current asset ratio and liquid asset
ratios propose that the organization can utilize the money more efficiently than what it is doing as of
now.

3. Opportunities of Tata

● Further Development – The market development will lead to dilution of competitors’


advantages and enable Tata to increase its competitiveness compared to the other
competitors.
● Expansion – Economic uptick and expansion in client spending, following quite a while of the
downturn and slow development rate in the business, is a chance for Tata to catch new clients and
increment its market share.
● Transportation Cost – Diminishing the expense of transportation as a result of lower delivery costs
can likewise cut down the expense of Tata’s items along these lines giving a chance to the organization
– either to support its productivity or give the advantages to the clients to acquire a portion of the
overall industry.

4. Threats of Tata
● Upgradation Of Competitors- New upcoming technologies developed by their competitor or market
disruptor could be a serious threat to the different industries in the medium to long term future.
● Expanding Patterns toward noninterference in the American economy can prompt comparable
responses from different state-run administrations consequently contrarily affecting global deals.
● Off-Season- The demand for highly profitable products is seasonal in nature and any unlikely event
during the peak season may impact the profitability of the company in the short to medium term.
● Political Environment- As The Organization is working in various nations it is presented to money
changes particularly given the unstable political environment in various business sectors across the
world.
● Extraordinary Rivalry- Stable productivity has expanded the number of players in the business in the
course of the most recent two years which has come down on benefit as well as on overall sales.

PORTER’S 5 FORCES

1. Degree of Rivalry: High


Since Tata is a conglomerate, the number of strong competitors who can limit the firm’s growth is
really high with no definite market leader in some industries and clear market leader in some other
industries. TSC, Tata’s tech consulting which accounts for 61% of Tata Group’s market capitalization
in 2015 is in a very fast growing industry with an increasing number of players. Some of the tough
competitors of TSC are Accenture, IBM, or Infosys.
2. Threat of new entrants: Low
The threat of new entrants is high because most of Tata’s sectors require substantial capital and
resource investment and building a distribution network is not easy for new players. New entrants will
also have to fulfill strict and time consuming policies issued by the Indian government or by foreign
countries’ governments. Adding to that, since the company invests a lot in R&D, Tata has the ability to
invest in R&D to get valuable consumer data and make new products to set differentiation basis for
new entrants.
3. Bargaining power of buyers: High
Since Tata is a conglomerate, buyers are more concentrated than sellers, so bargaining power of buyers
is high. Another point is that there are many more concentrated sellers in the market and this is also a
factor that makes the bargaining power of buyers high for Tata.

4. Threat of Substitutes: Medium


Any big and more focused player can develop better products with cheaper prices and push Tata’s
product out of the market, especially abroad if consumers prefer national products rather foreign
products like Tata’s. Tata’s reputation also has been affected largely when some Nano cars were on
fire. This could create room for competitors with similar products to win over consumer’s trust.
5. Bargaining power of supplier: Low Tata has a big supplier network from all over the world. Along
with its strong business and big network, Tata could attract the best suppliers with the cheapest price
and highest quality from anywhere in the world. So switching costs for a better supplier could be
considered as low. The company is also able to find alternative ways of producing products if the
supplier’s cost is too high.

2)MAHINDRA Group

BUSINESS MODEL/ VALUE CHAIN

The Mahindra Group is a large and diverse multinational conglomerate based in India, involved in various
sectors such as automotive, aerospace, agribusiness, construction, defense, energy, finance, hospitality, IT, real
estate, retail, and more.
1. Inbound Logistics:
• Sourcing raw materials and components for manufacturing.
• Establishing strong relationships with suppliers to ensure quality and timely delivery.
• Managing inventory and warehouse operations efficiently.
2. Operations:
• Manufacturing and assembling products such as automobiles, tractors, and other machinery.
• Implementing lean manufacturing practices to reduce waste and improve efficiency.
• Utilizing advanced technology and automation to enhance production capabilities.
3. Outbound Logistics:
• Distributing finished products through a robust network of dealers and distributors.
• Ensuring timely delivery to customers through efficient logistics and supply chain management.
• Managing transportation and warehousing to optimize costs and improve service levels.
4. Marketing and Sales:
• Conducting market research to understand customer needs and preferences.
• Developing strong branding and marketing strategies to promote products and services.
• Utilizing digital marketing, advertising, and promotional activities to reach target audiences.
5. Service:
• Providing after-sales support and services, including maintenance, repairs, and customer care.
• Ensuring customer satisfaction through responsive service and support channels.
• Offering warranties, service packages, and other value-added services to enhance the customer
experience.
6. Technology Development:
• Investing in research and development to innovate and improve products and services.
• Collaborating with technology partners and institutions to stay ahead in the market.
• Implementing new technologies in manufacturing, product development, and service delivery.
7. Procurement:
• Sourcing high-quality materials and components at competitive prices.
• Building strong relationships with suppliers to ensure a reliable supply chain.
• Negotiating contracts and agreements to secure favorable terms and conditions.
8. Human Resource Management:
• Recruiting and retaining skilled and talented employees.
• Providing training and development programs to enhance employee skills and knowledge.
• Fostering a positive organizational culture and work environment to motivate employees.
9. Firm Infrastructure:
• Establishing a strong organizational structure and governance framework.
• Implementing effective financial management and control systems.
• Ensuring compliance with legal and regulatory requirements.
The Mahindra Group's value chain focuses on leveraging its diverse capabilities and resources to create value
for customers, stakeholders, and society. By continuously improving its processes and investing in innovation,
the group aims to maintain its competitive advantage and drive sustainable growth.

SWOT ANALYSIS

1. Strengths

● Market leader in multiple automotive segments: Mahindra & Mahindra has leading market
share in a tractor as well as in the utility vehicles segment. Also, the company has strong
market share in the commercial vehicle as well as passenger vehicle segment. Strong market
share provides a competitive advantage to the company and allows the company to focus on
innovation.

● Strong Research & Development (R&D): M&M has a highly focused R&D department
constantly focusing on developing new products and technologies. M&M majorly focuses on
Value addition and Value engineering (VAVE) approach, designing modularity, use of
alternate materials etc.

● Excellent products according to Indian road conditions: Mahindra & Mahindra’s SUVs
are suited perfectly to Indian road conditions especially, the Mahindra Scorpio which has been
an outstanding performer for many years.

● Low after sale cost: M&M has a competitive advantage on after sale cost since it is lower
than the industry average and also has high availability of spare parts to different parts of the
country.

2. Weaknesses

● Geographic dependence: M&M is dependent for the majority of its revenue (over 60%) from
India, which would affect its business in case of any economic slowdown or high inflation.
● Overdependence on the Automotive industry: M&M’s major part of revenues come from
its automotive business which makes it vulnerable to any breakthrough in the industry or
slowdown in the market.
● Product Recalls affect brand image: M&M has had to recall many of its products in the
recent past. For instance, In February 2015, M&M recalled XUV500 manufactured before
July 2014. Such incidents affect the brand image of the company and consequently affect
sales.

3. Opportunities

● Growth in Indian automotive industry: The Indian automotive industry is growing year on
year with over 12% growth from the previous 3 years. The industry is expected to grow at a
CAGR of 13% in the next 4 years. This growth can be beneficial for M&M.
● Increasing Demand for Hybrid Electric Vehicles: There is an increasing demand for
Hybrid Electric Vehicles (HEVs) around the world. The demand for HEVs is expected to
grow at a CAGR of 19% in the next 3 years. M&M has a strong portfolio of HCVs and is set
to be benefited by the growing demand.
● Emerging nations: M&M should look forward to tapping the emerging nations around the
world which have high potential. M&M should build over its global footprint to tap the
emerging markets.

4. Threats

● Competition in the automotive industry: M&M faces intense competition from various
automotive companies such as Tata Motors, Ford, Volvo and General Motors etc. This can
affect M&M’s market share and put pressure to constantly innovate on M&M.

● Competition in other businesses puts pressure on M&M: Mahindra group faces strong
competition in other businesses as well. For example, its IT business faces competition from
IT giants such as Infosys. This reduces market share and increases competitive pressure.

● Stringent Regulations: M&M is subject to strict regulations by the government and


environmental agencies in terms of emission levels, noise levels etc. Such regulations keep
changing and thus increase compliance costs for the companies.

Source-https://www.marketing91.com/swot-analysis-mahindra-mahindra/

PORTER’S 5 FORCES

1. Degree of Rivalry
There are extreme competitors in the market of food and beverages. Innovation At Mahindra And
Mahindra A is among the top businesses in this competitive industry with a number of strong rivals.
This rivalry is not simply restricted to the cost of the item however likewise for quality, innovation and
variation.
2. Threat of new entrants
There is low risk of new entrants to Innovation At Mahindra And Mahindra A as it has a rather large
network of circulation worldwide controlling with a well-reputed image.
3. Bargaining power of buyers
There is high bargaining power of the buyers due to terrific competitors. Switching cost is rather low
for the consumers as numerous companies sell a variety of similar products. This seems to be a terrific
threat for any company.
4. Threat of Substitutes
There has actually been a great risk of substitutes as there are substitutes of some of Nestlé's items such
as boiled water and pasteurized milk. There has actually also been a claim that a few of its products are
not safe to utilize leading to the reduced sale.
5. Bargaining power of supplier
In the food and drink industry, Innovation At Mahindra And Mahindra A owes the biggest share of the
market requiring a greater number of supply chains. This causes it to be an idyllic buyer for the
providers. Any of the suppliers has never ever revealed any complaints about price and the bargaining
power is also low.
3)RELIANCE

BUSINESS MODEL/ VALUE CHAIN

The primary value chain activities of Reliance Industries are directly involved in producing and selling the
product to targeted customers. Analysis of primary value chain activities can improve the performance of
Reliance Industries as explained below.

1. Inbound Logistics
It is important to develop strong relationships with suppliers as their support is necessary to receive, store and
distribute the product. Without analysing the in-bound logistics, Reliance Industries can face various challenges
in product development phases. Analysis of in-bound logistics requires a company to focus on every aspect of
transformation from raw material to finished product. Some examples of inbound logistics are retrieving raw
material, storing the inputs and internally distributing the raw material and components to start production.

2. Operations
The importance of analysing operational activities raises when raw material arrives, and Reliance Industries is
ready to process the raw material into the end product and launch it in the market. Some examples of operational
activities are machining, packing, assembling and testing. Equipment repair and maintenance also falls into this
category.
It includes both- manufacturing and service operations. Analysis of operational activities is important for
improving productivity, maximising the efficiency and ensuring the competitive success of Reliance Industries.
The increased productivity can help Reliance Industries to achieve consistent economic growth, increase
profitability and set a powerful basis for competitive advantage.

3. Outbound Logistics
Outbound logistics include the activities that deliver the product to the customer by passing through different
intermediaries. Some outbound logistics activities are material handling, warehousing, scheduling, order
processing, transporting and delivering to the destination. Reliance Industries can analyse and optimise the
outbound logistics to explore competitive advantage sources and achieve its business growth objectives.
Because, when outbound activities are timely managed with optimal costs and product delivery processes put a
minimum negative effect on the quality, it maximises the customer satisfaction and increases growth
opportunities for the firm. Reliance Industries should pay specific importance to its outbound value chain
activities when its offered products are perishable and require quick delivery to the end customer.

4. Marketing and Sales


At this stage, Reliance Industries will highlight the benefits and differentiation points of offered products to
persuade the customers that its offering is better than competitors. Only producing a high quality product at
affordable costs and distinctive features cannot create value until Reliance Industries invests on the marketing
and sales activities. The sales agents and marketers play an important role here.
Some examples of Reliance Industries's marketing and sales activities are- sales force, advertising, promotional
activities, pricing, channel selection, quoting and building relations with channel members. The company can
use the marketing funnel approach to structure its marketing and sales activities. The marketing strategies can
either be push or pull in nature, depending on the Reliance Industries’s business objectives, brand image,
competitive dynamics and current standing in the market.
Effective and wisely integrated marketing activities can develop the brand equity of Reliance Industries and help
it stand out from the competition. However, Reliance Industries must avoid making false commitments about
product features that cannot be fulfilled by the production department. It indicates the need to ensure
coordination between different value chain activities.

5. Services
The pre-sale and post-sale services offered by the Reliance Industries will play an important role in developing
customer loyalty. The modern customers consider post-sale services as important as marketing and promotional
activities. The power of negative e-WOM due to poor support service cannot be undermined in the current
technologically advanced era. The company must analyse its support activities to avoid damaging brand
reputation, and instead use it as a tool to spread positive word of mouth due to quick, timely and efficient
support services.

6. Firm infrastructure
The firm infrastructure denotes a range of activities, such as- quality management, legal matters handling,
accounting, financing, planning and strategic management. Effective infrastructure management can allow
Reliance Industries to optimise the value of the whole value chain. Reliance Industries can control the
infrastructure activities (or commonly called overhead costs) to strengthen the competitive positioning in the
market.

7. Human resource management


Reliance Industries can analyse human resource management by evaluating different HR aspects, including-
recruiting, selecting, training, rewarding, performance management and other personnel management activities.
The effective HR management can allow Reliance Industries to reduce competitive pressure based on
motivation, commitment and skills of its workforce. The company can also achieve its cost minimisation
objectives by analysing hiring and training costs with their relative return. The heavy dependence of Reliance
Industries on employees' talent will increase the importance of this value chain support activity.

8. Technology development
In a modern, technological advanced era, almost all value chain activities depend on technological support. The
technological integration in production, distribution, marketing and human resource activities requires Reliance
Industries to realise the importance of technology development. It can be divided into product and process
technological development activities. Some examples are- automation software, technology-supported customer
service, product design research and data analytics. The research and development department of Reliance
Industries is classified in this category.

9. Procurement
The procurement in value chain denotes the processes involved in purchasing the inputs that may range from
equipment, machinery, raw material, supplies, raw material and other items necessary for producing the finished
product. Due to its linkage with multiple value chain activities, Reliance Industries should carefully consider its
procurement activities to optimise the inbound, operational and outbound value chain

SWOT ANALYSIS

Strengths

● Versatile portfolio
Reliance Industries has diversified its business portfolio through petrochemicals telecommunications
retail refining oil and gas. Such versatility aids in risk mitigation connected with changes in any
specific sector offering better support to economic downtime.
● Technical Upgradation
The company is highly focused on implementing the latest technology across its businesses. Let us take
the example of Reliance Jio, which has transformed the Indian telecom industry with its economical 4G
services as well as digital solutions. It has completely evolved the way Indian citizens use data and
communication.
● Competitive Market Position
Reliance has a considerable amount of market share in different sectors, especially in petrochemicals
and refining. It makes RIL a strong company on both global and domestic standards. RIL is the leading
oil refinery company in India with a huge capacity of over 1.2 million barrels each day.
● Robust Financial Status
Reliance maintains a very strong financial health that can be easily captured by its consistent revenue
growth and hefty profit margins. As per the recent financial report the company revenue has exceeded
$80 billion with a net profit of over $10 billion.

Weaknesses

● Excessive dependency on petrochemicals


Reliance Industries hugely depends on its refining and petrochemical businesses which gives it a
significant amount of revenue. However, fluctuations in crude oil prices and the rising demand for
petrochemical products may directly affect the financial performance of the company. This scenario
can also expose the company to volatility in the commodity market.

● Regulatory and Compliance Issues


RIL is a giant organization operating across various sectors. It is subject to different compliance at
regulatory risks associated with it. These risks include fluctuations in environmental regulations,
government policies, taxation, etc. that can adversely affect the profitability and operations of the
company.

● Geopolitical Risks
Reliance company has a global footprint which makes it vulnerable to geopolitical risks including
regulatory changes, trade stress, and some geopolitical clashes. Any disturbance in oil changes or a
supply in trade policies can highly impact the petrochemical operations and refining operations of the
company.

● Debt Pressure
However, the company has a very strong financial position in the market and it has incurred huge depth
to finance its upcoming projects. It includes the establishment of Jio’s network infrastructure
development. These high debt levels can increase the vulnerability to economic downtime or
fluctuations in interest rates. It will lead to reduced agility for future investments.

Opportunities

● Entry into Renewable Energy


Since the company is constantly focusing on sustainability as well as renewable energy sources
Reliance has got an opportunity to again diversify its energy portfolio with the expansion into
renewable energy. Investing in renewable energy like solar wind or hydrogen energy can align with
global system ability goals while also offering a new way to revenue stream. It will also help reduce the
carbon footprint to a greater level.

● International Expansion
The company can discover different opportunities for global-level expansion especially in those
markets having great demand for petrochemicals, digital services, and energy. Insightful partnerships
outside India can help diversify its portfolio as well as revenue sources leading to minimize
dependency on the local market.

● Fortifying Synergies
Reliance industries can improve their vertical integration by empowering synergies between various
businesses. If the company integrated its digital platform and retail platforms with its petrochemical
operations then it can create meaningful services and can also increase customer engagement
throughout its ecosystem.

● Digital Evolution
With the help of the latest technology through Jio, Reliance can further make huge transformations in
the digital landscape. Expanding its digital services like digital payments, IoT solutions, e-commerce,
etc. can open up new revenue platforms that can furthermore strengthen the company’s position in the
rapidly changing digital landscape.

Threats

● Competition
Severe competition in almost all business segments shows a considerable threat to Reliance Industries.
Global players in telecom retail petrochemicals refining sectors can spoil RIL’s market share as well as
can pressure its financial margins.

● Cyber security issues


Reliance Industries is leading the digital space with its Reliance Jio platform as well as other digital
companies. This makes it quite vulnerable to cyber security threats like hacking, data breaches,
malware attacks, etc. Cyber security breaches can distract its operations and can also damage the
company’s reputation while erasing customer trust at once.

● Volatile Global Market


Reliance company’s businesses are very much susceptible to fluctuations in international commodity
prices, geopolitical tensions, and currency exchange rates. Moreover, factors like Geopolitical clashes
and economic downtime can disturb supply chains. It can hugely affect the demand for Reliance
products and can take down its financial performance.

● Emerging Technologies
There have been rapid advancements and technology as well as innovation which causes a potential
threat to conventional business models. Hence, Reliance Industries should continuously invest in
advanced research and development to stay ahead of the competitive market and also to offer better
products as per the changing consumer behavior.

PORTER’S 5 FORCES
1. Rivalry from Competitive products:
Rivalry from competitors is said to be high when there are not just a few establishments that sell a
product or service at the same price which you have been offering. Reliance retail has been coping with
Competitive Rivalry really well. Recently it has acquired many such businesses such as Fynd, Future
group, etc.
2. Fear of fresh entrants to the market:
Reliance Retail is able to withstand the threat of new entrants by making themselves unique among all
other retail companies by providing a very good customer support and high quality products and a
variety of products. The price of all retail products is kept reasonably nominal with various discount
offers from time to time, which is not possible for any new entrants. Reliance is already an established
brand which acts as a barrier for new entrants into the market.

3. Buyers and their power to bargain:


In the case of Reliance retail, this is minimal. The reason being the low price, good quality and, of
course, customer loyalty. Over time the company’s popularity increases with the increase in the
number of customers. This is so true with Reliance retail.
4. Fear of like/substitute Products:
There has been a great deal of threat from substitute products for Reliance Industries. Especially from
the products that are manufactured in China, the Philippines and Thailand. This has been happening for
quite some time now and has posed a great threat to all companies and industries. But Reliance retail
has been able to cope up with the threat of substitutes in a unique way by offering quality products
unlike the ones that are manufactured in other countries and also by pricing them aptly and giving to
the customers.

5. Suppliers and their power to bargain:


Reliance has a very good potential supplier base for each of the products that they sell and also have
their own brand of products, which makes it beneficial in terms of uniqueness of products and also
helps in keeping other suppliers under control so that they don’t increase the prices and terms and
conditions.

4)ADITYA BIRLA GROUP

BUSINESS MODEL/ VALUE CHAIN

Aditya Birla Group is a large multinational conglomerate with interests in sectors such as metals, cement,
textiles, carbon black, telecommunication, financial services, and retail. Here’s an overview of the value chain
for Aditya Birla Group:

1. Inbound Logistics:
• Procuring raw materials like bauxite, coal, limestone, cotton, and chemicals for their various businesses
such as aluminum, cement, and textiles.
• Building and maintaining strong relationships with suppliers to ensure the quality and timely delivery
of raw materials.
• Efficient logistics for transporting raw materials to manufacturing plants, including extensive storage
facilities.

2. Operations:
• Efficient manufacturing processes for producing aluminum, cement, textiles, carbon black, and other
products using advanced technology and automation.
• Implementing stringent quality control measures to ensure the highest standards of product quality.
• Continuous improvement initiatives to optimize manufacturing processes and increase efficiency.

3. Outbound Logistics:
• Robust distribution networks to deliver finished products to customers, including wholesalers, retailers,
and direct consumers.
• Strategic warehousing facilities to store finished products and ensure timely delivery to customers.
• Efficient transportation management to optimize delivery routes and reduce costs.

4. Marketing and Sales:


• Strong branding strategies to promote various products and services across different sectors.
• Leveraging customer insights and feedback to enhance customer satisfaction and loyalty.
• Comprehensive marketing campaigns to promote products through various channels, including digital
and traditional media.

5. Service:
• Providing robust after-sales support and services, particularly in sectors like financial services and
retail.
• Establishing customer care centers to handle queries, complaints, and service requests.
• Offering additional services such as warranties, maintenance packages, and financial advisory services
to enhance customer experience.

6. Technology Development:
• Significant investment in R&D to drive innovation and develop new products and processes.
• Collaborating with technology partners and research institutions to stay at the forefront of industry
advancements.
• Implementing digital technologies to enhance operational efficiency and customer engagement.

7. Procurement:
• Strategic procurement of raw materials, components, and services to ensure cost-efficiency and quality.
• Working closely with suppliers to improve supply chain efficiency and drive innovation.
• Effective contract management to secure favorable terms and ensure compliance.

8. Human Resource Management:


• Attracting and retaining skilled talent across various sectors.
• Offering continuous training and development programs to enhance employee skills and competencies.
• Creating a positive work environment and fostering a strong organizational culture to motivate
employees.

9. Firm Infrastructure:
• Strong corporate governance framework to ensure ethical business practices and regulatory
compliance.
• Effective financial management to support business growth and profitability.
• Robust IT infrastructure to support business operations and digital initiatives.
The Aditya Birla Group's value chain focuses on leveraging its integrated operations, strong supply chain,
technological innovation, and customer-centric approach to create value across its diverse business segments.
This enables the group to maintain its competitive edge and drive sustainable growth.

SWOT ANALYSIS

Strengths
● Strong Brand Awareness and Reputation: ABCAL, operated by Aditya Birla Group, enjoys high
brand trust and loyalty in India.
● Diversified Portfolio: ABCAL offers a wide range of financial services under one roof, including
wealth management, life insurance, wealth management and private equity. This diversification
reduces risks and offers growth opportunities.
● Strong Distribution Network: ABCAL is supported by Aditya Birla Group’s extensive network of
over 100,000 channels across India, serving diverse customer segments.
● Technology-led approach: ABCAL invests heavily in technology, providing seamless digital platforms
and leveraging automation to improve efficiency and customer experience.
● Talents: Thanks to its brand image and strong growth prospects, ABCAL attracts and retains qualified
professionals.
Weaknesses
● Heavy reliance on traditional distribution channels: ABCAL’s heavy reliance on physical branches
could limit its reach in high-tech segments and rural areas. Limited market share in some segments:
Despite strong growth, ABCAL faces competition from established providers in some segments such
as life insurance and asset management.
● Operational Complexity: Managing a diversified portfolio can lead to operational inefficiencies and
higher costs.
● Vulnerability to Regulatory Changes: The financial services industry is subject to frequent
regulatory changes that could impact ABCAL’s operations and profitability.
● Limited International Presence: Compared to some competitors, ABCAL’s international presence is
relatively weak, limiting its growth opportunities.

Opportunities of Aditya Birla Capital


● Indian Financial Market Growth: The Indian financial services market is expected to witness
significant growth in the coming years, providing ample opportunities for expansion.
● Untapped potential of rural and semi-urban markets: Increasing financial literacy and disposable
income in rural and semi-urban areas provide significant growth potential for ABCAL.
● Digitalization and new technologies: The use of digital platforms, financial technologies and artificial
intelligence can further improve customer service, operational efficiency and reach.
● Acquisitions and Partnerships: Strategic acquisitions and partnerships can help ABCAL gain market
share, diversify its offerings and enter new segments.
● Expanding international presence: Exploring new markets abroad can increase long-term growth and
reduce dependence on the Indian market.

Threats of Aditya Birla Capital


● Heavy reliance on traditional distribution channels: ABCAL’s heavy reliance on physical branches
could limit its reach in high-tech segments and rural areas.
● Limited market share in some segments: Despite strong growth, ABCAL faces competition from
established providers in some segments such as life insurance and asset management.
● Operational Complexity: Managing a diversified portfolio can lead to operational inefficiencies and
higher costs.
● Vulnerability to Regulatory Changes: The financial services industry is subject to frequent
regulatory changes that could impact ABCAL’s operations and profitability.
● Limited International Presence: Compared to some competitors, ABCAL’s international presence is
relatively weak, limiting its growth opportunities.

PORTER’S 5 FORCES
1. Rivalry from Competitive products:
Intense competition characterizes many of the industries in which the Aditya Birla Group operates.
This is particularly evident in sectors such as telecom, financial services, and cement, where numerous
global and domestic players vie for market share. The group navigates this competitive landscape
through strategic alliances, product diversification, and operational efficiencies derived from its
extensive scale.
2. Fear of fresh entrants to the market:
In industries such as metals, cement, and chemicals, substantial capital investment is required to
establish operations and achieve economies of scale. This acts as a significant barrier to entry.
Additionally, the group benefits from established brand equity and strong distribution networks across
its diversified portfolio. However, in sectors like retail and financial services, where barriers may be
relatively lower, new entrants could pose a more immediate threat.

3. Buyers and their power to bargain:


In consumer-facing sectors like textiles and retail, buyers have relatively higher power due to the
abundance of alternatives and low switching costs. Conversely, in B2B sectors such as metals and
cement, where customers are often large corporations and infrastructure projects, the group's
established reputation for quality and reliability mitigates buyer power to some extent.

4. Fear of like/substitute Products:


The threat of substitutes exists across nearly all sectors within the Aditya Birla Group's portfolio. For
instance, in commodities like cement and textiles, numerous alternatives are available to consumers
and businesses alike. The group counters this threat through continuous innovation, brand
differentiation, and investment in technologies that enhance product quality and sustainability.

5. Suppliers and their power to bargain:


In industries such as metals and chemicals, where raw materials are critical inputs, suppliers may have
substantial leverage, particularly if they dominate the market or supply rare commodities. However, the
group's large scale and diversified operations enable it to negotiate favorable terms and, in some cases,
vertically integrate to mitigate supplier power. Overall, while significant in certain segments, supplier
bargaining power is generally manageable due to the group's strategic sourcing capabilities.

5)ADANI GROUP

BUSINESS MODEL/ VALUE CHAIN

Adani Group, one of India’s largest multinational conglomerates, has been making headlines for its rapid growth
and expansion in diverse sectors such as resources, logistics, energy, and agriculture.

1. Customer Segments:
• Government and public sector entities: Adani Group works with government organizations,
municipalities, and public sector enterprises for infrastructure development projects, port management, and
energy generation.
• Industrial and commercial customers: The group supplies coal, electricity, and gas to various industrial
and commercial clients, including manufacturing units, retail chains, and commercial establishments.
• Agricultural producers and traders: Adani’s agribusiness division caters to farmers and agricultural
traders, providing them with procurement, storage, and logistics services.
• Individual consumers: Adani Group’s retail and real estate ventures cater to individual customers,
offering residential properties and daily-use products through its supermarket chain.

2. Value Proposition:
• End-to-end solutions: Adani Group offers comprehensive solutions in various sectors, covering the
entire supply chain from procurement to delivery.
• Vertical integration: The group’s vertical integration allows it to control multiple aspects of its
operations, ensuring better quality control, efficiency, and cost management.
• Focus on sustainability: Adani Group is committed to sustainable development and has invested in
renewable energy sources like solar and wind power to reduce its carbon footprint.
• Scalability and flexibility: The conglomerate’s diverse portfolio allows it to scale operations and adapt
to changing market conditions swiftly.
• Strong government relationships: Adani Group’s long-standing collaboration with the government and
public sector enterprises has enabled it to secure large infrastructure projects and expand its footprint.

3. Channels:
• Direct sales: The group sells its products and services directly to clients through its sales teams, online
platforms, and customer service centers.
• Partnerships and collaborations: Adani Group collaborates with various partners such as logistics
providers, technology companies, and government agencies to deliver its offerings.
• Retail outlets: Adani’s supermarket chain, Adani Supermarket, serves as a distribution channel for the
group’s consumer goods, reaching individual customers.

4. Customer Relationships:

• Dedicated account managers: The group assigns account managers to large clients to ensure a
personalized and seamless customer experience.
• Customer service centers: Adani Group operates customer service centers to address customer queries,
complaints, and service requests.
• Community engagement: The conglomerate actively engages with local communities, contributing to
their development through initiatives such as the Adani Foundation, which focuses on education, healthcare, and
rural development.

5. Revenue Streams:

• Service fees: The group charges fees for services such as port management, logistics, and infrastructure
development.
• Sales of goods: Adani Group earns revenue from the sale of commodities like coal, electricity, and
agricultural products.
• Real estate and retail sales: The group generates income from the sale of residential properties and
consumer goods through its retail outlets.
• Government contracts: Adani Group secures large infrastructure projects from government agencies,
contributing to its revenue.

6. Key Resources:

• Physical assets: The group’s extensive infrastructure, including ports, power plants, solar parks, and
real estate properties, forms the backbone of its operations.
• Human resources: Adani Group’s skilled workforce, including management, engineers, and
technicians, drives its growth and innovation.
• Intellectual property: The group’s proprietary technologies, patents, and licenses in various sectors
contribute to its competitive advantage.

7. Key Activities:

• Infrastructure development and management: The group undertakes large infrastructure projects, such
as ports, power plants, and solar parks, and manages their operations.
• Logistics and supply chain management: Adani Group provides end-to-end logistics and supply chain
solutions for its clients.
• Energy generation and distribution: The group is involved in the generation and distribution of
electricity and natural gas, with a focus on renewable energy sources.
• Agribusiness and retail: Adani Group procures, stores, and distributes agricultural commodities and
operates a chain of retail outlets.

8. Key Partnerships:

• Government agencies: The group collaborates with government agencies to secure infrastructure
projects and regulatory approvals.
• Technology partners: Adani Group partners with technology companies to develop and implement
innovative solutions across its operations.
• Logistics providers: The conglomerate works with logistics providers to ensure efficient transportation
and distribution of goods.
• Financial institutions: Adani Group partners with banks and financial institutions to secure funding for
its projects and operations.

9. Cost Structure:

• Capital expenditures: The group incurs significant capital expenditures for infrastructure development
and maintenance.
• Operational costs: Adani Group bears operational costs such as employee salaries, fuel expenses, and
maintenance of its facilities.
• Marketing and sales expenses: The group spends on marketing and sales efforts to promote its products
and services and attract customers.
• Research and development: Adani Group invests in research and development to drive innovation and
stay competitive in the market.
• Financing costs: The conglomerate incurs financing costs, such as interest payments on loans and debt.

SWOT ANALYSIS

Strengths

● Strong Vision: The company has been led by a strong vision which is tuned in towards progress and
forward-looking. The company envisages sustainable and inclusive progress and is focused towards
providing maximum benefits to all stakeholders.
● Core values: The business is deeply rooted in its value system which consists of commitment, trust,
and teamwork. The company has around 10,000 employees and they all work as one team in synergy
with the vision of the leader.
● Strong leadership: Gautam Adani, the one force behind the meteoric rise of the Adani Group has been
a powerful leader and entrepreneur. He was wise in making the right investments and moved ahead
without being daunted by failure. He is also quoted as a reference for the quote leading by example.
● Diversified investments: The Adani Group has a presence in diverse core industries such as coal,
power, steel, infrastructure, energy, logistics and real estate which covers almost all core sectors
making the conglomerate a very strong presence in most areas of industrial development.
● Strong financial records: The Adani Group has been steady in their financial records and has
registered an operating margin of 11 .2 % in the year 2017. The equity share capital and debts have
been reinvested into assets which have resulted in higher revenues. The ratio of the operating profit to
sales is also on an incline indicating that the operational efficiency is growing.

Weaknesses
● Ethical Issues: Though Adani has always been vocal about their commitment towards the society they
have been facing an allegation of illegal coal mining for which they are facing charges under the court
of law. They have also got into issues like illegal land encroachment in SEZ in Mundra.
● Unhappy shareholders: The Adani Group has not been able to create shareholder satisfaction and this
is evident by the fact that the group has lost 14 to 24 percent of their wealth and their debt has
increased to around Rs 70,000 crores.
● High-risk appetite: Probably inspired by the sudden growth spurt, the top brass of Adani Group made
some risky investments in mining in Australia which are not giving the promised returns. In addition to
this, some of their investments in infrastructure and real estate are also taking time to monetize.

Opportunities
● Diversification into renewable energy: There is a lot of impetus given by governments to sustainable
and renewable energy sources like wind. Adani Group already has a presence in power and thus they
may find it simpler to move to hydroelectric or wind power.
● Growth potential in power sector: Statistics from the government indicate that in accordance with the
12th Five-Year Plan, the power capacity will include an additional 88.5 GW from which, 72.3 GW will
be thermal power, 10.8GW hydropower & 5.3 GW nuclear power. This is a huge opportunity for Adani
Power.
● Opportunities in infrastructure: The Planning Commission of India has made proposals for
expansion in roads and highways, ports, civil aviation and airports, and power infrastructure segments.
All this can be the potential target for the Adani Group.

Threats
● Foreign investment: Foreign investment inspectors like energy and infrastructure have grown
profusely in the last decade. An estimated investment of around US$22 billion has been projected for
the next five years in infrastructure. There are also a lot of foreign infrastructure conglomerates moving
into India. This can be a potential threat to the company.
● Negative perceptions on the group: In comparison to other Indian conglomerates like the Tatas or the
Birlas the Adani Group has come into existence recently and thus do not have the trust or goodwill that
the others have. Adding to this are allegations of illegal encroachment and mining scandals.

PORTER’S 5 FORCES

You might also like