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1 Company Overview (Mahindra Tafe escorts

)
1.1 Company background
Mahindra and Mahindra Limited was incorporated on October 2, 1945 as a private limited company under the Indian
Companies Act of 1913 by two brothers, Mr. J.C. Mahindra and Mr. K.C. Mahindra. It was converted into a public limited
company on June 15, 1955. Mahindra & Mahindra Ltd, one of the largest private sector companies in India, is
the flagship company of the Mahindra Group. The company commenced operations in 1945 to manufacture General
Purpose Utility Vehicles and later on entered into manufacturing of Tractors and Light Commercial Vehicles (LCVs). Over
the years, the company has expanded its operations from automobiles and tractors to steel, trading and manufacturing
of Ash Handling Plants & Traveling Water Screens. The company is focused to become a world giant in the tractor
business. It has already made its presence felt in countries in Europe, Latin America, Africa and United States of
America.
Mahindra Tractors, the farm equipment division of Mahindra & Mahindra, builds and sources tractors that are sold
worldwide across six continents. In 2010, Mahindra became the number one selling tractor in the world. Mahindra has a
huge consumer base in India, China and America and a growing base in Australia. The company builds more tractors
in India than any other manufacturer, and has the capacity to build 150,000 tractors a year. In 1963, M&M formed a joint
venture with International Harvester to manufacture tractors carrying the Mahindra nameplate for the Indian market.
Armed with engineering, tooling and manufacturing know-how gained from this relationship, M&M developed its first
tractor, the B-275. Mahindra Tractors with sales of nearly 85,000 units annually is one of the largest tractor companies in
the world, and is number one in sales in India - the largest tractor market in the world. To expand into the growing
tractor market in China, Mahindra acquired majority stake in Jiangling. To raise awareness about Mahindra in the US,
Mahindra USA announced its new sponsorship in the NASCAR Nationwide Series with R3 Motorsports, which is
participating with a #23 Mahindra Tractors Chevrolet. The car will be driven by Robert Richardson, Jr. Mahindra USA, Inc.
announced a 17-race primary and 18-race associate sponsorship for the 2009 NASCAR Nationwide Series. With this
sponsorship, Mahindra was the first Indian company to sponsor a car in NASCAR. In 2008, Mahindra was a sponsor of the
McDonald Motorsports team which ran the #81 car in the NASCAR Nationwide Series
As the market leader in India for the past 30 years, FES has helped bring Farm Tech Prosperity to the Indian farmer with
technologically superior affordable solutions. Mahindra has achieved the distinction of being the largest tractor company
in the world with tractor sales in more than 40 countries across six continents with more than 1000 dealers world-wide.

In its quality journey, FES has won the Deming Application Prize in 2003 for Brand Mahindra and in 2012 for Brand
Swaraj. FES is the second company in India to win the Japan Quality Medal in 2007, followed by the TPM Excellence
Award in 2011 and TPM Consistency Award in 2013.
In 2007, Farm Equipment Sector, Mahindra & Mahindra Ltd. took over Punjab Tractor Ltd. and added Swaraj to its brand
stable. FES has 8 state-of-the-art tractor manufacturing plants in India located in Zaheerabad, Mumbai, Nagpur,
Rudrapur, Jaipur, Rajkot and Mohali (Swaraj- 2 plants).
FES offers services beyond tractors such as agri-mechanization solutions under Mahindra AppliTrac, Seeds, Crop care
solutions and market linkages to high value markets through Mahindra Subhlabh and energy solutions through Mahindra
Powerol.

1.2 Timeline with key milestones and their strategic impact

Mahindra Launches the Arjun Novo
2014
Arjun Novo is in line with Mahindra's vision of becoming the pioneer in providing
technology-driven farming solutions to farmers across the country. With new
benchmarks in technology, comfort and ergonomics, new Arjun Novo is all set to
change farming practices and improve efficiency and quality of output, leading to Farm tech prosperity

Mahindra rolls out the 2 millionth tractors 2013 Zaheerabad Plant inaugurated 2013 (Cater to the southern Indian market with ease) Swaraj Receives the TPM award and Farm Division Plants receive the TPM consistency award 2013 .

Launched Mahindra AppliTrac .Farm Mechanization Business 2010 .Mahindra Swaraj receives the coveted Deming prize medal 2012 (Increased the brand reputation and assurance on quality) FES receives the TPM Award 2012 India’s first 15 HP Tractor .Yuvraj 215 launched.

Mahindra Launches Samriddhi by Mahindra to Deliver Farm Tech Prosperity 2009 M&M No. by volume 2009 (established as global leader) JV with Yancheng Tractor Company – China 2008 (entry into Chinese market) .1 Tractor company in the world.

Won the Japan Quality Medal 2007 Acquired leading Indian tractor company – Punjab Tractors 2007 Subsidiary company Mahindra Australia formed 2005 .

One millionth tractor produced Entry in China – JV established (MCTCL) 2004 Won the Deming Application Prize 2003 .

Mission.Autonomous sector of M&M . and Strategic Themes . Goals.3 Vision.Farm Division (FES) Subsidiary company Mahindra USA (MUSA) formed 1994 Achieved leadership position in Indian tractor market 1983 Formation of International Tractor Company of India Ltd 1963 1.

Keeping good relationship with customers by providing better quality service and providing latest information To be the market leader in all power segments of tractors. DOE ( Design of Experiments) and TPM ( Total Productive Maintenance) To usher prosperity. Six Sigma. for its customers. service stations etc. By developing good citizenship behavior. Goals and Objectives To provide highly innovative product technological Strategy followed E-business Initiatives and by out sourcing of technology By 2015 it wants to enter almost all continents of world Products that redefined the market Joint ventures. 1. dealers. Strong market base in the urban. sales offices. proactively following world-class methodologies like QC story and QC tools. society and all other stakeholders. known worldwide for the quality of its product and services.Mission/Vision Vision: Indians are second to none in the world. semi-urban and rural areas.4 Key Product and Service Portfolio PRODUCTS . We will prove them right by believing in ourselves and by making M&M Ltd. employees. acquisition and merger with different players in other countries Foreign competition. USP – ruggedness and performance. Plan to open 30 outlet pan in India by next 4 year Mission: We don’t have a group-wide mission statement. Network of dealers. The founders of our nation and of our company passionately believed this. Our core purpose is what makes all of us want to get up and come to work in the morning” to make the production system even more efficient Restructuring of the company.

5 Core Competencies of the firm 1.6 Business Model of the organization Key Partners    Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Motivations for partnerships  Optimization and economy  Reduction of risk and uncertainty  Acquisition of particular resources and activities .Upto 20 HP 21 to 30 HP YUVRAJ 215 NXT MAHINDRA 255 DI MAHINDRA 265 DI 31 to 40 HP MAHINDRA 265 DI POWER PLUS MAHINDRA 275 ECO MAHINDRA 275 DI TU MAHINDRA 295 DI MAHINDRA 395 DI MAHINDRA 405 DI 41 to 50 HP MAHINDRA 475 DI MAHINDRA 575 DI MAHINDRA 595 DI ARJUN 555 DI 50 HP plus ARJUN NOVO 605 DI-I ARJUN NOVO 605 DI-PS ARJUN INTERNATIONAL SERVICES SAMRIDDHI 1.

 Key Activities Value Propositions         Customer Relationship s     Customer Segments   Which Key Activities do partners perform? What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams? What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? How costly are they? For whom are we creating value? Categories  Production  Problem Solving  Platform/Network Characteristics  Newness  Performance  Customization  “Getting the Job Done”  Design  Brand/Status  Price  Cost Reduction  Risk Reduction  Accessibility  Convenience/Usability   Mass Market Niche Market .

After sales How do we provide post-purchase customer support Is your business more Cost Driven (leanest cost structure. premium value proposition) Sample characteristics Fixed Costs (salaries. rents. extensive outsourcing) Value Driven (focused on value creation. maximum automation. Evaluation How do we help customers evaluate our organization’s Value Proposition? 3. utilities) Variable costs Economies of scale Economies of scope Types  Asset sale . copyrights. low price value proposition. Awareness How do we raise awareness about our company’s products and services? 2. Delivery How do we deliver a Value Proposition to customers? 5. data)  Human  Financial Channel phases 1.Key Resources  Who are our most important customers?  What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? Through which Channels do our Customer Segments want to be reached? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most costefficient? How are we integrating them with customer routines?  Channels        Cost Structure    Revenue Streams  What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? For what value are our customers really willing to pay?  Segmented  Diversified  Multi-sided Platform Types of resources  Physical  Intellectual (brand patents. Purchase How do we allow customers to purchase specific products and services? 4.

9 Competitor Analysis (identify competitors) Company M&M Escorts Market Cap (Rs.20 23.60 0.62 9.95 3.24 1.60 11.01 4.270.41 14.16 0.10 23.) P/E(TTM) (x) P/BV(TTM) (x) EV/EBIDTA (x) ROE (%) ROCE (%) D/E (x) 77.70 11 0.29 .701.8 SWOT Analysis 1.    For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?       Usage fee Subscription Fees Lending/Renting/Leasing Licensing Brokerage fees Advertising Fixed pricing  List Price  Product feature dependent  Customer segment  dependent  Volume dependent Dynamic pricing  Negotiation (bargaining)  Yield Management  Real-time-Market 1.7 3rd Generation Balanced Scorecard (Amalgamation of 1st Generation BSC and Activity System Map) 1.in Cr.90 22.

17 29.23 0 0.80 0.60 -9.16 VST Till.2 Based on Financial indicators .indiainfoline. 1.1 Based on Critical Success factors 1.84 4.60 74.59 18.623.3YlFUYMm.07 6.9.9.dpuf 1.78 16.67 0 0 0.Asian Tractors 2.90 41 0 HMT 3.23 -21. Tract.43 http://www.com/company/mahindra-mahindra-ltd/365#sthash.268.07 0 103.

2 years) Growth Areas High Level Tasks Potential Benefits to be achieved Rewards Risks Key Success Factors Mid Term (2-5 years) Long Term (5-10 years) .1 Based on BCG Matrix 2.1 Portfolio Analysis 2.2 Future Growth Strategy for the organization 2.2 Company’s Strategic Roadmap for future Near Term (<.1.

3 Product Market Investment Strategy Country of Investment Category of Investment Industry Reward to Risk Ratio (A) Country Reward to Risk Ratio (B) Risk Adjusted Rewards ( 0.2.65A + 0.35B) Product Market Investment Strategy Investment Rationale Which Industry? Strategic Alliance? High Profit? Potential Market ? Which Product/service? Mergers/acquisitions? FDI? Cost efficiencies? Ratio calculations based on reward and risk ratings from Business Monitor International Report – March 2014 2.4 Re-imagining the Organization with the transformed business model or Use-case based on SMAC and IOE       Reimagining Reimagining Reimagining Reimagining Reimagining Reimagining Business Models Business Processes Customer Segments Products & Services Workplaces Channels .

Goals.2 3.3 Company Overview 3.5 3.1 Company background 3.4 3.6 Timeline with key milestones and their strategic impact Vision. and Strategic Themes Key Product and Service Portfolio Core Competencies of the firm Business Model of the organization Key Partners     Key Activities Value Propositions        Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform? What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams? What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to Motivations for partnerships  Optimization and economy  Reduction of risk and uncertainty  Acquisition of particular resources and activities Categories  Production  Problem Solving  Platform/Network Characteristics  Newness  Performance  Customization  “Getting the Job Done”  Design . Mission.3 3.

data)  Human  Financial Channel phases 1. Customer Relationship s     Customer Segments    Key Resources   Channels    each Customer Segment? Which customer needs are we satisfying? What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? How costly are they? For whom are we creating value? Who are our most important customers? What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? Through which Channels do our Customer Segments want to be reached? How are we reaching them now?       Brand/Status Price Cost Reduction Risk Reduction Accessibility Convenience/Usability  Mass Market  Niche Market  Segmented  Diversified  Multi-sided Platform Types of resources  Physical  Intellectual (brand patents. copyrights. Evaluation . Awareness How do we raise awareness about our company’s products and services? 2.

Purchase How do we allow customers to purchase specific products and services? 4. extensive outsourcing) Value Driven (focused on value creation. low price value proposition. maximum automation. premium value proposition) Sample characteristics Fixed Costs (salaries. utilities) Variable costs Economies of scale Economies of scope Types  Asset sale  Usage fee  Subscription Fees  Lending/Renting/Leasing  Licensing  Brokerage fees  Advertising Fixed pricing  List Price  Product feature dependent  Customer segment  dependent  Volume dependent . rents. Delivery How do we deliver a Value Proposition to customers? 5.    Cost Structure    Revenue Streams      How are our Channels integrated? Which ones work best? Which ones are most costefficient? How are we integrating them with customer routines? What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues? How do we help customers evaluate our organization’s Value Proposition? 3. After sales How do we provide post-purchase customer support Is your business more Cost Driven (leanest cost structure.

Dynamic pricing  Negotiation (bargaining)  Yield Management  Real-time-Market 3.2 Based on Financial indicators .7 3rd Generation Balanced Scorecard (Amalgamation of 1st Generation BSC and Activity System Map) 3.1 Based on Critical Success factors 3.8 SWOT Analysis 3.9 Competitor Analysis (identify competitors) 3.9.9.

4 Future Growth Strategy for the organization 4.2 years) Growth Areas High Level Tasks Potential Benefits to be achieved Rewards Risks Key Success Factors Mid Term (2-5 years) Long Term (5-10 years) .1 Based on BCG Matrix 4.2 Company’s Strategic Roadmap for future Near Term (<.1 Portfolio Analysis 4.1.

65A + 0.3 Product Market Investment Strategy Country of Investment Category of Investment Industry Reward to Risk Ratio (A) Country Reward to Risk Ratio (B) Risk Adjusted Rewards ( 0.35B) Product Market Investment Strategy Investment Rationale Which Industry? Strategic Alliance? High Profit? Potential Market ? Which Product/service? Mergers/acquisitions? FDI? Cost efficiencies? Ratio calculations based on reward and risk ratings from Business Monitor International Report – March 2014 4.4.4 Re-imagining the Organization with the transformed business model or Use-case based on SMAC and IOE       Reimagining Reimagining Reimagining Reimagining Reimagining Reimagining Business Models Business Processes Customer Segments Products & Services Workplaces Channels .

4 5.5 Company Overview 5.5 5.6 Timeline with key milestones and their strategic impact Vision. Mission. and Strategic Themes Key Product and Service Portfolio Core Competencies of the firm Business Model of the organization Key Partners     Key Activities Value Propositions        Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform? What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams? What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to Motivations for partnerships  Optimization and economy  Reduction of risk and uncertainty  Acquisition of particular resources and activities Categories  Production  Problem Solving  Platform/Network Characteristics  Newness  Performance  Customization  “Getting the Job Done”  Design .1 Company background 5.3 5. Goals.2 5.

data)  Human  Financial Channel phases 1. Awareness How do we raise awareness about our company’s products and services? 2. Customer Relationship s     Customer Segments    Key Resources   Channels    each Customer Segment? Which customer needs are we satisfying? What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? How costly are they? For whom are we creating value? Who are our most important customers? What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? Through which Channels do our Customer Segments want to be reached? How are we reaching them now?       Brand/Status Price Cost Reduction Risk Reduction Accessibility Convenience/Usability  Mass Market  Niche Market  Segmented  Diversified  Multi-sided Platform Types of resources  Physical  Intellectual (brand patents. copyrights. Evaluation .

maximum automation. Delivery How do we deliver a Value Proposition to customers? 5. premium value proposition) Sample characteristics Fixed Costs (salaries. Purchase How do we allow customers to purchase specific products and services? 4. extensive outsourcing) Value Driven (focused on value creation. rents.    Cost Structure    Revenue Streams      How are our Channels integrated? Which ones work best? Which ones are most costefficient? How are we integrating them with customer routines? What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues? How do we help customers evaluate our organization’s Value Proposition? 3. After sales How do we provide post-purchase customer support Is your business more Cost Driven (leanest cost structure. utilities) Variable costs Economies of scale Economies of scope Types  Asset sale  Usage fee  Subscription Fees  Lending/Renting/Leasing  Licensing  Brokerage fees  Advertising Fixed pricing  List Price  Product feature dependent  Customer segment  dependent  Volume dependent . low price value proposition.

7 3rd Generation Balanced Scorecard (Amalgamation of 1st Generation BSC and Activity System Map) 5.8 SWOT Analysis 5.2 Based on Financial indicators .1 Based on Critical Success factors 5.Dynamic pricing  Negotiation (bargaining)  Yield Management  Real-time-Market 5.9 Competitor Analysis (identify competitors) 5.9.9.

1 Based on BCG Matrix 6.1.6 Future Growth Strategy for the organization 6.2 Company’s Strategic Roadmap for future Near Term (<.2 years) Growth Areas High Level Tasks Potential Benefits to be achieved Rewards Risks Key Success Factors Mid Term (2-5 years) Long Term (5-10 years) .1 Portfolio Analysis 6.

3 Product Market Investment Strategy Country of Investment Category of Investment Industry Reward to Risk Ratio (A) Country Reward to Risk Ratio (B) Risk Adjusted Rewards ( 0.35B) Product Market Investment Strategy Investment Rationale Which Industry? Strategic Alliance? High Profit? Potential Market ? Which Product/service? Mergers/acquisitions? FDI? Cost efficiencies? Ratio calculations based on reward and risk ratings from Business Monitor International Report – March 2014 6.4 Re-imagining the Organization with the transformed business model or Use-case based on SMAC and IOE       Reimagining Reimagining Reimagining Reimagining Reimagining Reimagining Business Models Business Processes Customer Segments Products & Services Workplaces Channels .65A + 0.6.