Professional Documents
Culture Documents
India: Mini Project Report Subject: Strategic Management Submitted by Muhammed Shefeeque P Register Number (1635f0078)
India: Mini Project Report Subject: Strategic Management Submitted by Muhammed Shefeeque P Register Number (1635f0078)
Submitted by
MUHAMMED SHEFEEQUE P
Register Number (1635f0078)
OF BHARATHIYAR UNIVERSITY
DEPARTMENT OF MBA
Havell’s India Limited was established in 1958 and is a part of the QRG group, a leading
solution provider in the power distribution-equipment industry in India. The company is one of
the foremost manufacturers and suppliers of low-voltage electrical equipment in the country.
The Havells group originated as a small trading business in Central Delhi’s Bhagirath Place,
which is a wholesale market for electrical goods. It was promoted by Mr. Qimat Rai Gupta and
Mr. Surjit Kumar Gupta, who commenced their trading operations in the year 1958.
A former teacher in Punjab, the entrepreneur Qimat Rai Gupta bought the Havells brand from
one Haveli Ram Gandhi, thereby moving up from trader to manufacturer. The Company was
incorporated as Havells India Private Limited on 8th August, 1983 under the Companies Act,
1956 and subsequently the name was changed to Havells India Limited vide certificate dated
31st March, 1992.
This company manufactures electrical and power distribution equipments ranging from building
circuit protection, Industrial & Domestic switchgear, cables & wires, energy meters, fans, CFL
lamps, luminaries for domestic, commercial & Industrial application and modular switches.
VISION
To be a globally recognized corporation that provides best electrical & lighting solutions,
Delivered by best-in-class people
.
MISSION
To achieve our vision through fairness, business ethics, global reach, technological
Expertise, building long term relationships with all our associates, customers, partners,
and employees.
VALUES
Customer Delight:
Leadership by example:
A commitment to set standards in our business and transactions based on mutual trust.
Pursuit of Excellence:
Fans
Ceiling Fans
Table Fans
Wall Mounting Fans
Pedestal Fans
Air Circulator Fans
Ventilating Fans
Industrial Circuit Protection
Air Circuit Breaker
MCCB
Panel Board System
Changeover Switch
By-Pass Changeover Switch
Automatic Transfer Switch
Switch Disconnector
Load Changeover Switch
Control Gear
Switch Disconnector Fuse
Fuse Switch and Switch Fuse
Chamber System
Fuse Holder
Nylon Fuse Base
Fuse Link and Fuse Base
Lighting
LED Lighting
Consumer Lighting
COmmercial Lighting
Down Lighter
Landscape-Bunker Lighting
Industrial Lighting
Area Lighting
Road Lighting
Speciality lamps
Accessories
Aura Lighting
Modular Plate Switches
Havells Modular Switches
Crabtree Modular Switches
Motors
Foot Mounting Flange Motor
Flange Motor
Foot Cum Flange
Inverter Duty Motors with Forced Cooling
Crane Duty Motors
Brake Motors
CFL
Retrofit
Non Retrofit
Higher Range
Liliput
FPL
Cables and Wires
Power Cables - Aluminium
Control Cables - Copper
Copper Flexible Cables
Integrated service: AIL have the ability to provide customers with an integrated range of
casting, machining and sub-assembly capabilities. The company makes a number of
casting modules for engines and transmission components, which are typically
complementary to each other. Moving down the value chain into casting has enabled the
company to increase the product range, provide a budled service to its customers and
control more effectively raw material prices, process and wastages.
UNDEFLOOR BOX
CASA
The phrase mergers and acquisitions (abbreviated M&A) refers to the aspect of corporate
strategy, corporate finance and management dealing with the buying, selling and combining of
different companies that can aid, finance, or help a growing company in a given industry grow
rapidly without having to create another business entity.
Mergers and acquisitions are the third, and most widely used, vehicle that companies can use to
enter new industries or countries. How to implement structure, control systems, and culture to
manage a new acquisition is important because many acquisitions are unsuccessful. And one of
the main reasons acquisitions perform poorly is that many companies do not anticipate the
difficulties associated with merging or integrating new companies into their existing operations.
CRABTREE
• 1996 Joint Venture with Crabtree Modular Plate Switches, Duke Arnics, DZG Germany.
• LEARNING FROM MISTAKES: Lost bid for Electrium to Siemens by 8 million pounds.
Learned how to mobilize funding and to deal with complex issues of merger and acquisitions.
Capital finances
Uttaranchal
• Can keep existing manufacturing facilities in Europe, but will create additional capacities in
low cost India
• Havells can use Sylvania multi brand strategy for different markets
"Sylvania's acquisition is a first step towards attaining leading position in the global lighting
industry with a strong presence in the developed markets of Europe and high growth Latin
American markets. This acquisition will provide us a platform with strong brands and established
distribution channels on which Havells can build on. Further, the management team responsible
for SLI Sylvania's turnaround will continue to remain with the business and grow the combined
organization"
"The management team is extremely excited about the Transaction and believes that SLI
Sylvania is well-poised to effectively exploit the opportunities ahead with significant synergies
to be realized by the combined organization”.
The value chain, also known as value chain analysis, is a concept from business management
that was first described and popularized by Michael Porter in his 1985 best-seller, Competitive
Advantage: Creating and Sustaining Superior Performance.
A value chain is a chain of activities for a firm operating in a specific industry. The business unit
is the appropriate level for construction a value chain, not the divisional level or corporate level.
Products pass through all activities of the chain in order and at each activity the product gains
some value.
The chain of activities gives the products more added value than the sum of added values of all
activities. It is important not to mix the concept of the value chain with the costs occurring
throughout the activities. A diamond cutter can be used as an example of the difference. The
cutting activity may have a low cost, but the activity adds much of the value to the end product,
since a rough diamond is significantly less valuable than a cut diamond. Typically, the described
value chain and the documentation of processes, assessment and auditing of adherence to the
process routines are at the core of the quality certification of the business, e.g. ISO 9001.
The value chain categorizes the generic value-adding activities of an organization. The "primary
activities" include: inbound logistics, operations (production), outbound logistics, marketing and
sales (demand), and services (maintenance). The "support activities" include: administrative
infrastructure management, human resource management, technology (R&D), and procurement.
The costs and value drivers are identified for each value activity. The value chain framework
quickly made its way to the forefront of management thought as a powerful analysis tool for
strategic planning. The simpler concept of value streams, a cross-functional process which was
developed over the next decade, had some success in the early 1990s.
• Production
• Distribution
• Customer Service
Value chain analysis
The Value Chain
All of the functions of the company –such as production, marketing, R&D, service, information
systems, material management, and human resources-have a role in lowering the cost structure
and increasing the perceived value of the products through differentiation. The term VALUE
CHAIN refers to the idea that a company is a chain of activities for transforming inputs into
outputs that customers value. The process of transformation is composed of a number of primary
activities and support activities that add value to the product.
Primary Activities
Significant brand emphasis to create a strong differentiator with FMCG like packaging,
promotions and advertisements.
Consumer pull evenly matched with a well entrenched distribution network
High RoCE and RoE creating shareholder value.
Large opportunities for quality, branded and well distributed product companies like
Havell’s.
SWOT Analysis:
SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business venture. It involves
specifying the objective of the business venture or project and identifying the internal and
external factors that are favorable and unfavorable to achieving that objective.
A SWOT analysis must first start with defining a desired end state or objective. A SWOT
analysis may be incorporated into the strategic planning model. Strategic Planning, including
SWOT and SCAN analysis, has been the subject of much research.
• Strengths: attributes of the person or company that are helpful to achieving the objective.
• Weaknesses: attributes of the person or company that are harmful to achieving the
objective.
Identification of SWOTs is essential because subsequent steps in the process of planning for
achievement of the selected objective may be derived from the SWOTs.
First, the decision makers have to determine whether the objective is attainable, given the
SWOTs. If the objective is NOT attainable a different objective must be selected and the process
repeated.
The SWOT analysis is often used in academia to highlight and identify strengths, weaknesses,
opportunities and threats [citation needed]. It is particularly helpful in identifying areas for
development [citation needed].
SWOT analysis may limit the strategies considered in the evaluation. J. Scott Armstrong notes
that "people who use SWOT might conclude that they have done an adequate job of planning and
ignore such sensible things as defining the firm's objectives or calculating ROI for alternate
strategies." Findings from Menon et al. (1999) and Hill and Westbrook (1997) have shown that
SWOT may harm performance. As an alternative to SWOT, Armstrong describes a 5-step
approach alternative that leads to better corporate performance.
These criticisms are addressed to an old version of SWOT analysis that precedes the SWOT
analysis described above under the heading "Strategic and Creative Use of SWOT Analysis."
This old version did not require that SWOTs be derived from an agreed upon objective.
Examples of SWOT analyses that do not state an objective are provided below under "Human
Resources" and "Marketing."
• External factors – The opportunities and threats presented by the external environment to
the organization. - Use a PEST or PESTLE analysis to help identify factors
The internal factors may be viewed as strengths or weaknesses depending upon their impact on
the organization's objectives. What may represent strengths with respect to one objective may be
weaknesses for another objective.
The factors may include all of the 4P's; as well as personnel, finance, manufacturing capabilities,
and so on. The external factors may include macroeconomic matters, technological change,
legislation, and socio-cultural changes, as well as changes in the marketplace or competitive
position. The results are often presented in the form of a matrix.
SWOT analysis is just one method of categorization and has its own weaknesses. For example, it
may tend to persuade companies to compile lists rather than think about what is actually
important in achieving objectives. It also presents the resulting lists uncritically and without clear
prioritization so that, for example, weak opportunities may appear to balance strong threats.
It is prudent not to eliminate too quickly any candidate SWOT entry. The importance of
individual SWOTs will be revealed by the value of the strategies it generates. A SWOT item that
produces valuable strategies is important. A SWOT item that generates no strategies is not
important.
The SWOT-landscape systematically deploys the relationships between overall objective and
underlying SWOT-factors and provides an interactive, query-able 3D landscape.
Changes in relative performance are continually identified. Projects (or other units of
measurements) that could be potential risk or opportunity objects are highlighted.
SWOT-landscape also indicates which underlying strength/weakness factors that have had or
likely will have highest influence in the context of value in use (for ex. capital value
fluctuations).
Corporate planning
As part of the development of strategies and plans to enable the organization to achieve its
objectives, then that organization will use a systematic/rigorous process known as corporate
planning. SWOT alongside PEST/PESTLE can be used as a basis for the analysis of business
and environmental factors.
• Environmental scanning
o Internal appraisals of the organization's SWOT, this needs to include an assessment of the
present situation as well as a portfolio of products/services and an analysis of the product/service
life cycle
• Analysis of existing strategies, this should determine relevance from the results of an
internal/external appraisal. This may include gap analysis which will look at environmental
factors
• Strategic Issues defined – key factors in the development of a corporate plan which needs
to be addressed by the organization
• Develop new/revised strategies – revised analysis of strategic issues may mean the
objectives need to change
• Monitoring results – mapping against plans, taking corrective action which may mean
amending objectives/strategies.
Marketing:
In many competitor analyses, marketers build detailed profiles of each competitor in the market,
focusing especially on their relative competitive strengths and weaknesses using SWOT analysis.
Marketing managers will examine each competitor's cost structure, sources of profits, resources
and competencies, competitive positioning and product differentiation, degree of vertical
integration, historical responses to industry developments, and other factors.
Marketing management often finds it necessary to invest in research to collect the data required
to perform accurate marketing analysis. Accordingly, management often conducts market
research (alternately marketing research) to obtain this information. Marketers employ a variety
of techniques to conduct market research, but some of the more common include:
• Marketing managers may also design and oversee various environmental scanning and
competitive intelligence processes to help identify trends and inform the company's marketing
analysis.
SWOT Analysis
A scan of the internal and external environment is an important part of the strategic planning
process. Environmental factors internal to the firm usually can be classified as strengths (S) or
weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats
(T). Such an analysis of the strategic environment is referred to as a SWOT analysis.
The SWOT analysis provides information that is helpful in matching the firm's resources and
capabilities to the competitive environment in which it operates. As such, it is instrumental in
strategy formulation and selection. The following diagram shows how a SWOT analysis fits into
an environmental scan:
Environmental Scan
/\
/\ /\
SWOT Matrix
Strengths
A firm's strengths are its resources and capabilities that can be used as a basis for developing a
competitive advantage. Examples of such strengths include:
• Patents
Weaknesses
The absence of certain strengths may be viewed as a weakness. For example, each of the
following may be considered weaknesses:
In some cases, a weakness may be the flip side of strength. Take the case in which a firm has a
large amount of manufacturing capacity. While this capacity may be considered a strength that
competitors do not share, it also may be a considered a weakness if the large investment in
manufacturing capacity prevents the firm from reacting quickly to changes in the strategic
environment.
Opportunities
The external environmental analysis may reveal certain new opportunities for profit and growth.
Some examples of such opportunities include:
• loosening of regulations
Threats
Changes in the external environmental also may present threats to the firm. Some examples of
such threats include:
• New regulations
To develop strategies that take into account the SWOT profile, a matrix of these factors can be
constructed. The SWOT matrix (also known as a TOWS Matrix) is shown below:
Strengths Weaknesses
• S-O strategies pursue opportunities that are a good fit to the company's strengths.
• S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability
to external threats.
• W-T strategies establish a defensive plan to prevent the firm's weaknesses from making it
highly susceptible to external threats.
SWOT Analysis
SWOT Analysis is a powerful technique for understanding your Strengths and Weaknesses, and
for looking at the Opportunities and Threats you face.
Used in a business context, it helps you carve a sustainable niche in your market. Used in a
personal context, it helps you develop your career in a way that takes best advantage of your
talents, abilities and opportunities. Click here for Business SWOT Analysis, and here for
Personal SWOT Analysis.
Business SWOT Analysis
What makes SWOT particularly powerful is that, with a little thought, it can help you uncover
opportunities that you are well placed to exploit. And by understanding the weaknesses of your
business, you can manage and eliminate threats that would otherwise catch you unawares.
More than this, by looking at yourself and your competitors using the SWOT framework, you
can start to craft a strategy that helps you distinguish yourself from your competitors, so that you
can compete successfully in your market.
To carry out a SWOT Analysis, start by downloading our free template. Then answer the
following questions:
Strengths:
Consider this from an internal perspective, and from the point of view of your customers and
people in your market. Be realistic: It's far too easy to fall prey to "not invented here syndrome".
(If you are having any difficulty with this, try writing down a list of your characteristics. Some of
these will hopefully be strengths!)
In looking at your strengths, think about them in relation to your competitors - for example, if all
your competitors provide high quality products, then a high quality production process is not
sstrength in the market, it is a necessity.
Tip:
For help finding your company's Unique Selling Proposition (USP) or crafting your competitive
edge, read our USP Analysis article.
Weaknesses:
Again, consider this from an internal and external basis: Do other people seem to perceive
weaknesses that you do not see? Are your competitors doing any better than you? It is best to be
realistic now, and face any unpleasant truths as soon as possible.
Opportunities:
• Local events.
A useful approach for looking at opportunities is to look at your strengths and ask yourself
whether these open up any opportunities.
Alternatively, look at your weaknesses and ask yourself whether you could create opportunities
by eliminating them.
Threats:
Carrying out this analysis will often be illuminating – both in terms of pointing out what needs to
be done, and in putting problems into perspective.
Strengths and weaknesses are often internal to your organization. Opportunities and threats often
relate to external factors. For this reason the SWOT Analysis is sometimes called Internal-
External Analysis and the SWOT Matrix is sometimes called an IE Matrix Analysis Tool.
You can also apply SWOT Analysis to your competitors. As you do this, you'll start to see how
and where you should compete against them.
Tip 1:
Make sure you visit our next article 'PEST Analysis' - this tool is useful for understanding the
'big picture' of the environment you are operating in and will help you identify the opportunities
and threats within it.
Tip 2:
SWOT can be used in two ways – as a simple icebreaker helping people get together and "kick
off" strategy formulation, or in a more sophisticated way as a serious strategy tool. If you're
using it as a serious tool, make sure you're rigorous in the way you apply it:
• Only accept precise, verifiable statements ("Cost advantage of US$10/ton in sourcing raw
material x", rather than "Good value for money").
• Ruthlessly prune long lists of factors, and prioritize factors so that you spend your time
thinking about the most significant factors.
• Make sure that options generated are carried through to later stages in the strategy
formation process.
• Apply it at the right level – for example, at product or product line level, rather than at the
much vaguer whole company level.
Example
A start-up small consultancy business might draw up the following SWOT matrix:
Strengths:
• We can respond very quickly as we have no red tape, no need for higher management
approval.
• We can give really good customer care, as the current small amount of work means we
have plenty of time to devote to customers.
Weaknesses:
Opportunities:
• Our business sector is expanding, with many future opportunities for success.
• Our local council wants to encourage local businesses with work where possible.
Threats:
• Will developments in technology change this market beyond our ability to adapt?
• A small change in focus of a large competitor might wipe out any market position we
achieve.
The consultancy may therefore decide to specialize in rapid response, good value services to
local businesses. Marketing would be in selected local publications, to get the greatest possible
market presence for a set advertising budget. The consultancy should keep up-to-date with
changes in technology where possible.
Key Points
SWOT Analysis is a simple but powerful framework for analyzing your company's Strengths and
Weaknesses, and the Opportunities and Threats you face. This helps you to focus on your
strengths, minimize threats, and take the greatest possible advantage of opportunities available to
you.
Competitive Advantage
A company has a competitive advantage over its rivals when its profitability is greater than the
average profitability for all companies in its industry.
The goal of much of business strategy is to achieve a sustainable competitive advantage.It has a
sustained competitive advantage when it is able to maintain above average profitability over a
number of years.
Competitive advantage can come in one or combination of the following factors: Price, service,
quality, location, or imbedded customer base. The better your business performs against one of
these factors, the more likely you are to succeed.
• Cost advantage
• Differentiation advantage
A competitive advantage exists when the firm is able to deliver the same benefits as competitors
but at a lower cost (cost advantage), or deliver benefits that exceed those of competing products
(differentiation advantage). Thus, a competitive advantage enables the firm to create superior
value for its customers and superior profits for itself.
Cost and differentiation advantages are known as positional advantages since they describe the
firm's position in the industry as a leader in either cost or differentiation.
A resource-based view emphasizes that a firm utilizes its resources and capabilities to create a
competitive advantage that ultimately results in superior value creation. The following diagram
combines the resource-based and positioning views to illustrate the concept of competitive
advantage:
A Model Of Competitive Advantage:
Resources
Cost Advantage
Distinctive Value
Or
Competencies Creation
Differentiation
Advantage
Capabilities
Quality is important in almost every industry. People do not like to pay good money for
work/product that has to soon be redone or have to purchase a new unit that fails prematurely.
By that I mean faster than expected. Over the long term producing higher quality is almost
always less expensive as you don’t have to deal with as many returns, or as much scrap, or
rework.
Crabtree focuses a lot on producing quality switches, which can be felt by usage of its switches.
Some of the key features that they offer in terms of quality are:
Crabtree offers a premium segment product, they are bought in the market because of the brand
equity they have created with their customer base.
Crabtree switches have a differentiation advantage. It has resources and capabilities which can be
ascertained on the basis of following:
• Proprietary know-how
• Brand equity
Even the advertisements of the company focus on their core competency that is producing
quality product and creating value.
Last but not the least, the company has created a value chain with the series of activities, which
has helped in creating value amongst the customer base.
Innovation is the hallmark of every vital development at havell’s Group. New ideas, inventions
deepen scientific knowledge and give its work force a new impetus towards technical progress.
Havell’s technological strengths and its endeavor towards continuous research & development
have allowed it to fulfill its responsibilities towards its customers. The responsibility of
providing its customers the best products and zero defect services to enable them to be
comfortable and secure in usage of electricity. Havells has recently invested 50 crores in the
havell’s Center for Research and Innovation, set-up at the company's Head Office premises in
Noida, U.P.
The objective of this centre is to provide the theoretical & experimental foundations for all
segments of electrical engineering. The centre closely cooperates with the various departments so
as to provide the best and the latest in terms of technology and design.
Quality Control
The essence of quality is closely wrapped in the way they think, plan and work. It finds its true
expression when they extend beyond themselves to exceed our customer’s expectations. To
deliver products those are safer, faster and simply better.
Each time, every time. Building customer confidence through teamwork is a top priority to
provide a wide variety of products and services.
Realising and respecting the basic needs of customers to feel more secure, they’ve committed
themselves to make their products better, safer and smarter than what he or she is looking for.
That's a passion that began 30 years ago and that's how it continues to be even today. customers
rely on havells and it is responsible to give them the very best. All their products are as per IEC
standards.
Havells has a simple rule on quality. If it doesn't exceed customer expectation, it's not quality
performance.
Havell's India operates in the business of switch gear, cable & wire and
etc.
Havells produces a complete range of low and high voltage PVC and
has a strong brand name in electrical consumer goods and a brand leader in
compact fluoresce
Resources and Capabilities
According to the resource-based view, in order to develop a competitive advantage the firm must
have resources and capabilities that are superior to those of its competitors. Without this
superiority, the competitors simply could replicate what the firm was doing and any advantage
quickly would disappear.
Resources are the firm-specific assets useful for creating a cost or differentiation advantage and
that few competitors can acquire easily. The following are some examples of such resources:
• Proprietary know-how
• Brand equity
Capabilities refer to the firm's ability to utilize its resources effectively. An example of a
capability is the ability to bring a product to market faster than competitors. Such capabilities are
embedded in the routines of the organization and are not easily documented as procedures and
thus are difficult for competitors to replicate.
The firm's resources and capabilities together form its distinctive competencies. These
competencies enable innovation, efficiency, quality, and customer responsiveness, all of which
can be leveraged to create a cost advantage or a differentiation dvantage.
Competitive advantage is created by using resources and capabilities to achieve either a lower
cost structure or a differentiated product. A firm positions itself in its industry through its choice
of low cost or differentiation. This decision is a central component of the firm's competitive
strategy.
Value Creation
The firm creates value by performing a series of activities that are identified as the value chain.
In addition to the firm's own value-creating activities, the firm operates in a value system of
vertical activities including those of upstream suppliers and downstream channel members.
To achieve a competitive advantage, the firm must perform one or more value creating activities
in a way that creates more overall value than do competitors. Superior value is created through
lower costs or superior benefits to the consumer (differentiation).
BOARD OF COMMITTEE
Havells India Limited is a Fast Moving Electrical Goods (FMEG) Company with an extremely strong
global presence, thanks to our philosophy of Make in India, extensive distribution network and world
class quality.