GROUP- 7

MBIL: RELEVANCE TO
STRUCTURE
 What is Structure?

Formal and informal framework of policies and rules, within which an

organization arranges its lines of authority and communications, and allocates
 rights and duties. Organizational structure determines the manner and extent
to which roles, power, and responsibilities are delegated, controlled, and
coordinated, and how information flows between levels of management. This
structure depends entirely on the organization's objectives and the strategy
 chosen to achieve them
SWOT
STRENGTHS
 Monopolistic Market Situation
 Best R&D facility among
competitors
 Excellent quality standards
 Adequate Resources
 
Highly qualified Employees (IIT
Engineers and IIM MBAs)
 Technically qualified Managers
 Superb design and in house
printing facility
 Good reputation in market
WEAKNESS
 Improper utilization of resource
 No after sales service
 Lack of market knowledge (hard
sales/push sales)
 Engineers preferred than MBA’s
No proper goal or objectives defined
 Improper HR policy
 Resistance to change
 Not used to competition of any kind
 Total production oriented
OPPORTUNITIES THREATS
 No close substitutes  Increasing competition from smaller
firms (Zenith & Poysha)
 Best pool of Engineers & MBA’s
which could be utilized  Losing market hold & trust (quality
 Quality & Brand name of MBIL across 7 factories)
 Large market coverage
 Substituting the established product
 Required availability of machinery
with newer ones not an easy task
and manpower
 Market for pilfer proof tin container
 Rapid change in technology
 Market for Sterilized vacuum tin
container
 Government regulations
 OBJECTIVES

•Achieve target in stipulated time

•Ensure employee satisfaction & utilization of human expertise

•Ensure competitive n cooperative environment

•Maximize profitability, market share n company goodwill via

available n existing capacity base

•Exploring new markets & areas of doing business

PESTLE

 Political-(MRTP,FERA)Barrier to entry of
foreign firms
 Economic- Monopoly market, blue chip
company
Social-Culture of XYZ

 Production oriented
 Bureaucratic firm
 Lack of holistic view-focus on ‘Present’
 Resistant to change
 Focus on ‘Sophisticated’ background(IIT,IIM)
 Ambiguous roles and lack of training and
motivation
 Allocation of work missing
Technology
 Sophisticated R&D center at Alipore not utilized and almost non
functional
 Chief, Technical Expert- Dr S C post doctorate in Food
Technology, from USA with 20 years of experience was hardly
utilized
 Junior level science graduates used to solve technical problems
instead of technical personnel
Environment
“Golden handshake” to 2,000 workers, Rs 2 crores offered as
compensation !!
27 Senior Managers asked to quit
 FUNCTIONAL LEVEL: HR Function

Change Management – prone to long work life and ‘loyalty’

Role clarity

 Id ego superego-leading to team/individual clashes at intra and

inter-departmental levels
Top management commitment and support for motivation
of employees

Hygiene and Motivation factors

Resistance to change
What should have been done?

•Need for Job Description and Specification

•Job Enrichment and Enlargement
•Provide Motivation to the employees
•Fit the job according to the persons- ‘Are we hiring
overqualified people’?
•Knowledge sharing-Top management to grassroot levels
•HRP-Recruit right people at the right time for the right
position
•Provide On the job n Off the job training
•Employee engagement
• Cross Functional work teams
•Bottom down approach
“So was adequate internal level
organizational structuring thought
of in advance?”
Optimum Structure

Org Dece
anic ntral
Bureaucr
atic stru ized
ctur struc
e ture
Bureaucracy is characterized by
• highly routine operating tasks
achieved through specialization
• very formalized rules and
regulations
• tasks that are grouped into
functional departments
• centralized authority
• narrow spans of control and
• decision making follows chain of
command
Chandler’s Model

 Strategy Structure
 Strategy-Goal-(Where they are)
 Product development and diversification(Cell 3
& 4 of Igor Ansoff)
 Leaders in Packaging
(Where they should go)
 Leverage with Indian partners-to reduce impact
of FERA & MRTP
 Timeliness and Value Creation
Corporate Strategy & Igor
Ansoff
Sales Optimization New Product Development
Short- Medium-
Stability Retrenchment

Very Long-
Related
Market Development Diversification Diversification

Long-Mergers
& Outsourcing
Corporate Structure-Present

Vertical
Structure
Routine
Tasks

Rigid
Culture

Formal
System

Competitiv
e Strategy
 Corporate Structure-Required

Horizonta
Learning Organization
l/Flat
Empower
ed Roles

Adaptive
Culture

Shared
Information

Collaborati
ve Strategy
Force Field Analysis

For For
ces ces
for
New Technology Old Outdated technology
for D
A
C Sta E
Ch T S
U tus I
an
Proactive Organization
A
Resistance to Change
Qu R
L E
geTwo part pricing 100% pricing o D

Relationship Marketing, Production orientation,

Marketing concept Selling concept
FIRM-LEVEL STRATEGY

►Direct competition
►Strategic moves of direct competition
►Entrepreneurship: A firm-level strategy
Entrepreneurship: A firm-
level strategy
Entrepreneurship
 Process of entering new or established
markets with new goods or sources
Entrepreneurial orientation
 Set of process, practices and decision-making
activities that lead to new entry
 Characterized by autonomy, innovativeness,
risk-taking, proactiveness and competitive
aggressiveness.
 Acheieving a sustainable
competitive advantage.

Resources must be:

 Valuable  Rare

 Imperfectly  Non-substitutable
imitable
Diversification and risk

There is a U-shaped relationship between

diversification and risk:
 Single businesses with no diversification are
extremely risky
 Competing in variety of different businesses
can lower risk.
 Conglomerates composed of completely
unrelated businesses are riskier than
undiversified companies.
Porter’s five industry forces
Positioning strategies

Cost leadership
 Producing a quality product service at a price
lower than companies
Differentiation
 Accentuating difference between a product or
service and those of competitors
Focus
 Using cost leadership or differentiation for a
specific target market
THANK YOU…