Strategic Management

Larsen and Toubro

-Vivek Pandya
12131052

About
Larsen & Toubro Limited (L&T) is a technology, engineering, construction
and manufacturing company. It is one of the largest and most respected
companies in India's private sector
Seven decades of a strong, customer-focused approach and the continuous
quest for world-class quality have enabled it to attain and sustain leadership in
all its major lines of business
L&T has an international presence, with a global spread of offices. A thrust on
international business has seen overseas earnings grow significantly. It
continues to grow its overseas manufacturing footprint, with facilities in China
and the Gulf region

 The company's businesses are supported by a wide

marketing and distribution network, and have

established a reputation for strong customer support.
L&T believes that progress must be achieved in

harmony with the environment. A commitment to

community welfare and environmental protection are
an integral part of the corporate vision.

History
L&T was founded in Bombay (Mumbai) in 1938 by two Danish
engineers, Henning Holck-Larsen and Soren Kristian Toubro. Both
of them were strongly committed to developing India's engineering
capabilities to meet the demands of industry.
1938-1950: Started with trading &making dairy equipment, fabrication
services, war-time ship repair.
Entered construction business
Entered into switchgear business
1960-1980:Emerges as one of the largest & best erection construction

 Commenced Manufacturing earth-moving equipment.

Entered into the cement business in early 1980s
1990-2005:Technology majors for engineering in
power and hydrocarbon sectors
Mid 90s: Entered into IT & Financial Services
Emerges as Indias largest integrated E&C company.
2006-2009: JVs with MHI for super critical power
plant equipment.

Foray into Railways sector

Initiated capacity expansion

Expanded Developmental projects business.

Step towards power generation

Vision
Excellence and professionalism
Customer delight through service.
Entrepreneurial leadership and creation of an
organization that is on the path of continuously
learning by fostering teamwork, trust, and care.
Community service and environmental protection.

Core Competencies
Today the core competence of L&T lies in its
ability to synthesize, integrate and harmonize its
diverse world-class engineering, manufacturing,
procurement, construction and fabrication skills
around turnkey projects (in core economic
sectors) and people.

Business Leadership
L&T holds a leadership position in India in most of
the areas in which it operates. The first company
to introduce hydraulic excavators in the country,
it still maintains its leadership status.
It continues to be a leader in the manufacture of
Z-Line petrol pumps and its cement is considered
to be of high quality.
L&T has pioneered the manufacture and supply of
critical nuclear reactors and space vehicles
hardware in the country and so on.

Decision-making
Only through empowerment and
decentralized decision making can a highly
diversified company like L&T be managed.
Only in major decisions involving capacity
augmentation, business divestment,
diversification, and so on does the CEO
personally involve himself.

The Culture of TQM

Employees have realized that
everybody in every department is a
supplier to somebody in the
organization if not directly to an
outside customer.
Employees are being trained in multiskills, including quality transactions
and market engineering, besides
product engineering.

Human Resource
Management

Human Resource
Management
With people being regarded as the
'prime movers', a strong HRD culture
pervades the organizations
personnel policies, and HRD systems
are designed to sustain motivation,
encourage learning, and achieve
higher levels of quality and
productivity through job involvement.

Financial Audit

The financial results of L&T for the year 20012-13 are too
encouraging as far as profits are concerned. The company
has reported profits of Rs. 5,849 lakhs against the previous
years profit of Rs. 2530 lakhs thereby achieving a
marvelous growt
L&T presently has a shareholder base of nearly 1 million
and employee strength of over 24,000. As a company, this
multi-dimensional engineering giant is actually the nucleus
of a group of companies involved in building complexes,
worksites, offices, and service outlets at different locations
all over India and abroad. Over the years, L&T has acquired
a commendable reputation for capabilities for executing
engineering related projects.

BCG MATRIX

MAREKT GROWTH RATE

RELATIVE MARKET SHARE

HIGH

LOW

STARS

QUESTION MARKS

Switch gear motors

L&T Mutual fund

Power projects

BPO Entry

Electrical and electronic

products

Metro project

IT & Engineering services

CASH COWS

DOGS

Finance

Fertilizers

Aerospace

Cement

Shipbuilding

Insurance

TYPES OF STRATEGIES
INTEGRATION STRATEGIES:- Backward
integration
A company exhibitsbackward vertical
integrationwhen it controlssubsidiariesthat
produce some of the inputs used in the
production of its products. For example, an
automobile company may own atirecompany,
aglasscompany, and a metal company.
Control of these three subsidiaries is intended
to create a stable supply of inputs and ensure
a consistent quality in their final product.

INTENSIVE STRATEGIES:- Market

development
Introducingpresentproducts or
services intonewgeographicarea.
Their Expansion Strategy.

DIVERSIFICATION STRATEGIES:- Conglomerate

diversification.
Conglomeratediversification occurs when a company
stretches out its business into an area which is dissimilar to
itscore business. This often occurs due to a merger or buyout
of another company, or it can occur if the company simply
wants to develop different products that aren't related to the
ones they already produce. In most cases, companies can
benefit from conglomerate diversification because of
increased profit potential and expanded business reach. On
the other hand, a merged company can suffer if management
is not adept with the new products or if the new company
gets stretched too thin.
Example : L & T Solar

THANK YOU