BRCM COLLEGE OF BUSINESS ADMINISTRATION, Surat

T.Y.BBA (Finance) Sem. 6 (2011-2012) ELEMENTS OF STRATEGIC MANAGEMENT Term Assignment

Name:
Kinkhabwala Jinal Patel Roshni Patoliya Pooja

Roll No.:
29 53 59

Topic: Submitted To:

Analysis of Strategic Intents of Reliance communication Mr. Manoj Joshi

Submitted On: 30th January 2012 Signature:

HISTORY

Looking back, looking forward

Reliance Group, an offshoot of the Group founded by Shri Dhirubhai H Ambani (19322002), ranks among Indias top three private sector business houses in terms of net worth. The group has business interests that range from telecommunications (Reliance Communications Limited) to financial services (Reliance Capital Ltd) and the generation and distribution of power (Reliance Infrastructure Limited). Reliance Groups flagship company, Reliance Communications, is India's largest private sector information and communications company, with over 150 million subscribers. It has established a pan-India, high-capacity, integrated (wireless and wireline), convergent (voice, data and video) digital network, to offer services spanning the entire infocomm value chain. Other major group companies Reliance Capital and Reliance Infrastructure are widely acknowledged as the market leaders in their respective areas of operation. Few men in history have made as dramatic a contribution to their countrys economic fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left behind a legacy that is more enduring and timeless.

As with all great pioneers, there is more than one unique way of describing the true genius of Dhirubhai: the corporate visionary, the unmatched strategist, the proud patriot, the leader of men, the architect of Indias capital markets, the champion of shareholder interest. But the role Dhirubhai cherished most was perhaps that of Indias greatest wealth creator. In one lifetime, he built, starting from the proverbial scratch, Indias largest private sector enterprise. When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he converted this fledgling enterprise into a Rs 60,000 crore colossusan achievement which earned Reliance a place on the global Fortune 500 list, the first ever Indian private company to do so. Dhirubhai is widely regarded as the father of Indias capital markets. In 1977, when Reliance Textile Industries Limited first went public, the Indian stock market was a place patronised by a small club of elite investors which dabbled in a handful of stocks. Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to participate in the unfolding Reliance story and put their hard-earned money in the Reliance Textile IPO, promising them, in exchange for their trust, substantial return on their investments. It was to be the start of one of great stories of mutual respect and reciprocal gain in the Indian markets. Under Dhirubhais extraordinary vision and leadership, Reliance scripted one of the greatest growth stories in corporate history anywhere in the world, and went on to become Indias largest private sector enterprise. Through out this amazing journey, Dhirubhai always kept the interests of the ordinary shareholder uppermost in mind, in the process making millionaires out of many of the initial investors in the Reliance stock, and creating one of the worlds largest shareholder families.

CODE OF CONDUCT

Reliance Group continually reviews corporate governance best practices to ensure that they reflect global developments. It takes feedback into account, in its periodic reviews of the guidelines to ensure their continuing relevance, effectiveness and responsiveness to the needs of local and international investors and other stakeholders. Our code of conduct and business policies encompass the following areas: Values and commitments Code of ethics Business policies Ethics management Prevention of sexual harassment Policy on insider trading

CORPORATE GOVERNANCE
Organisations, like individuals, depend for their survival, sustenance and growth on the support and goodwill of the communities of which they are an integral part, and must pay back this generosity in every way they can... This ethical standpoint, derived from the vision of our founder, lies at the heart of the CSR philosophy of the Reliance Group. While we strongly believe that our primary obligation or duty as corporate entities is to our shareholders we are just as mindful of the fact that this imperative does not exist in isolation; it is part of a much larger compact which we have with our entire body of stakeholders: From employees, customers and vendors to business partners, eco-system, local communities, and society at large. We evaluate and assess each critical business decision or choice from the point of view of diverse stakeholder interest, driven by the need to minimise risk and to pro-actively address long-term social, economic and environmental costs and concerns. For us, being socially responsible is not an occasional act of charity or that one-time token financial contribution to the local school, hospital or environmental NGO. It is an ongoing year-round commitment, which is integrated into the very core of our business objectives and strategy.

BUSINESS

India s leading integrated telecom company Reliance Communications is the flagship company of the Reliance Group. Listed on the National Stock Exchange and the Bombay Stock Exchange, it is Indias leading integrated telecommunication company with over 150 million customers. Our business encompasses a complete range of telecom services covering mobile and fixed line telephony. It includes broadband, national and international long distance services and data services along with an exhaustive range of value-added services and applications. Our constant endeavour is to provide an enhanced customer experience and achieve customer satisfaction by upscaling the productivity of the enterprises and individuals we serve. Reliance Mobile (formerly Reliance India Mobile), launched on 28 December 2002, coinciding with the joyous occasion of the late Dhirubhai Ambanis 70th birthday, was among the initial initiatives of Reliance Communications. It marked the auspicious beginning of Dhirubhais dream of ushering in a digital revolution in India. Today, we can proudly claim that we were instrumental in harnessing the true power of information and communication, by bestowing it in the hands of the common man at affordable rates. We endeavour to further extend our efforts beyond the traditional value chain by developing and deploying complete telecom solutions for the entire spectrum of society.

Wireless Reliance Mobile

With over 150 million subscribers across India, Reliance Mobile is Indias largest mobile service brand. Reliance Mobile services now cover over 24,000 towns, 6 lakh villages, and still counting. We have achieved many milestones in this short journey. In 2003, AC Nielsen voted Reliance Mobile (formerly Reliance India Mobile) as Indias Most Trusted Telecom Brand. In July 2003, it created a world record by adding one million subscribers in a matter of just 10 days through its Monsoon Hungama offer.

What sets Reliance Mobile apart is the fact that nearly 90 per cent of our handsets are data-enabled, and can access hundreds of Java applications on Reliance Mobile World. Reliance Mobile has ushered in a mobile revolution by offering advanced multimedia handsets to the common man at very affordable rates. This innovative low pricing has increased the number of mobile phone users and its result is clearly reflected in the meteoric rise in Indias tele-density over the past four years. Our pan-India wireless network runs on CDMA2000 1x technology, which has superior voice and data capabilities compared to other cellular mobile technologies. CDMA2000 1x is more costeffective as it utilises the scarce radio spectrum more efficiently than other technologies do. Enhanced voice clarity, superior data speed of up to 144 kbps and seamless migration to newer generations of mobile technologies are some of its key differentiators.

R World
The R World suite of Reliance Mobile is a unique Java-based application. Its uniqueness lies in the fact that it enables complex Internet application to be introduced in mobile phones effectively and quickly. R World receives over 1.5 billion page views per month from Reliance Mobile users. R World offers a wide array of applications that include hourly news updates, high quality headline video clips, downloadable multi-lingual ring tones, seasonal updates including festival specials, city and TV specials, exam results, astrology, mobile banking, bill payment.

With over 150 data applications offering varied services - unique to any wireless service in India - R World is truly a treasure house of knowledge, information, entertainment and commerce.

OBJECTIVES
A dream come true
The late Dhirubhai Ambani dreamt of a digital India an India where the common man would have access to affordable means of information and communication. Dhirubhai, who single-handedly built Indias largest private sector company virtually from scratch, had stated as early as 1999: Make the tools of information and communication available to people at an affordable cost. They will overcome the handicaps of illiteracy and lack of mobility. It was with this belief in mind that Reliance Communications (formerly Reliance Infocomm) started laying 60,000 route kilometres of a pan-India fibre optic backbone. This backbone was commissioned on 28 December 2002, the auspicious occasion of Dhirubhais 70th birthday, though sadly after his unexpected demise on 6 July 2002. Reliance Communications has a reliable, high-capacity, integrated (both wireless and wireline) and convergent (voice, data and video) digital network. It is capable of delivering a range of services spanning the entire infocomm (information and communication) value chain, including infrastructure and services for enterprises as well as individuals, applications, and consulting. Today, Reliance Communications is revolutionising the way India communicates and networks, truly bringing about a new way of life.

Think big. Think different. Think ahead.

Dhirubhai preached and personally practised one mantra throughout his life: Dream with conviction. He built the Reliance empire from scratch and, in a short span of 25 years, it catapulted to become one of the top Fortune 500 corporations of the world an achievement unparalleled in history. He was deeply rooted in traditional Indian values, and at the same time, Dhirubhai possessed a very modern outlook - truly that of a 21st century person. His corporate philosophy was short, simple and incredibly effective: Think big. Think different. Think fast. Think ahead. Aim for the best. This was clearly reflected in his passion for mega-sized projects, as well as his fascination for cutting-edge technology and desire to always achieve the highest possible

productivity. At Reliance, Dhirubhai was a pillar of inspiration for one and all. By practicing what he preached, he inspired and encouraged everyone to surpass the best in the world

Dhirubhai fully realised that true empowerment of the people is possible only through education. Being an effective communicator, he continued to inspire, guide, educate and motivate everyone through his communications. He was a firm believer in the power of information and communication, and how it can be utilised and turned to the advantage of one and all, by making time and distance irrelevant. He would always say that if a telephone call could be made cheaper than a postcard, it would transform every home, empower every Indian, remove every obstacle to opportunity and growth, and tear apart every barrier that divides Indian society. He was convinced that infocom could energise enterprises, drive governance, and render learning an interesting experience, apart from making life exciting. Keeping his conviction as our credo, Reliance Communications is committed to transform Dhirubhais dream into a reality.

Vision & Mission

y Defination of Vision:
An aspirational description of what an organization would like to achieve or accomplish in the mid-term or long-term future. It is intended to serves as a clear guide for choosing current and future courses of action. See also mission statement. The end result of what you want to have done. Its a future oriented, detailed description of outcomes you want to accomplish. Ideally what you want to exist, or have happen as a result of your efforts. When working on a vision, be as specific as possible what does it look like, feel like? Whos involved, how what are they getting from and giving to the organization/experience?

VISION
y y By 2015, be amongst the top 3 most valued Indian companies, providing Information, Communication & Entertainment services, and being the industry benchmark in Customer Experience, Employee Centricity and Innovation.  The vision of a company provides managers with unity of direction that transcends a well-conceived vision of an organization comprises two main components. The first component is Core Ideology and second is Envisioned Future. Core Ideology defines what an organization stands for, and why they exist that never changes and sets forth envisioned future that defines what an organization aspires to become to achieve to create that demands significant change and progress.

y Defination of mission:
A written declaration of an organization's core purpose and focus that normally remains unchanged over time. Properly crafted mission statements serve as filters to separate what is important from what is not, clearly state which markets will be served and how, and communicate a sense of intended direction to the entire organization. A mission is different from a vision in that the former is the cause and the latter is the effect; a mission is something to be accomplished whereas a vision is something to be pursued for that accomplishment. Also called company mission, corporate mission, or corporate purpose

MISSION
We will create world-class benchmarks by:
y y y y y

Meeting and exceeding Customer expectations with a segmented approach Establishing, re-engineering and automating Processes to make them customer centric, efficient and effective Incessant offering of Products and Services that are value for money and excite customers Providing a Network experience that is best in the industry Building Reliance into an iconic Brand which is benchmarked by others and leads industry in Intention to Purchase and Loyalty Developing a professional Leadership team that inspires, nurtures talent and propagates RCOM Values by personal example  A vision becomes tangible when it is expressed in the form of a mission statement. Such a statement verbalizes the beliefs of the managers and the directions in which the manager seeks to lead the organization. Mission is defined as a fundamental and enduring purpose of an organization that sets it apart from the organization in the similar business.

For the mission:

The mission should include points which elaborate upon the self-concept and nature of business of the company. For example: The company wants to earn customers confidence and trust. This is their perception about the organizational image and the same has been elaborated upon in the mission statements. The organizational philosophy has been amply elaborated upon in the mission being a responsible corporate citizen, nurturing growth potential of youth, etc.

BIBLIOGRAPHY
y y Elements of Strategic Management L M Prasad Sultan Chand & Bros. 2007 http://www.rcom.co.in