Strategic Management

Case study on

WIPRO

Submitted to:

Submitted by:

Prof. Shaveta Sharma Kukreja

Anshita Sharma (18/09) Meenakshi Tiwari (126/09) Parul Bhargava (38/09) Himanshu Jain (148/09)

in the consumer segment. lighting. WCP faced fierce competition from unorganized players as well as government policy were stringent which provided 9% advantage to a new entrant in a 4% margin business. Wipro Infotech . Wipro Corporation for the purposes of management control. each with its own separate µequity¶. Western India Vegetable Products Limited. Wipro Fluid Power In 1994. toiletries and leather products for the export market. Status of Wipro SBU s in 1994 Wipro Consumer Products WCP was for long. Premji transformed the Rs. diagnostic systems and leather exports. to stay competitive needed to support each of its businesses with significant financial and managerial investments against competitors with the world¶s best technologies and brands as well. Azim H. medical systems. despite increased competition. toilet soaps. were the market leaders in the institutional segment. Wipro . which served the needs of commercial users like biscuit manufacturers and bakeries. computer hardware and software. toilet soaps.1967. fatty acids and glycerine. the company was a market leader in hydraulic cylinders and its customers included all major earth-moving and construction equipment manufacturers in India. the largest µcompany¶ in Wipro Corporation¶s portfolio. It manufactured and marketed the traditional vanaspati products. Wipro In 1994: Product Portfolio in 1994 comprised of vanaspati. WFP was being positioned to act as one of the spearheads of Wipro¶s plans to become a global operation. toiletries. hydraulic cylinders. WCP tapped the existing gap in the market and launched Santoor and Shikakai soaps with sharp focus on distinct niches and the absence of competiton from the toilet majors in these niches. financial services. was split into eight separate µmini companies¶. and its flagship brand´Sunflower´ had recorded gains in market share. The company¶s ³Camel´ and ³Black Bird´ brands. 70 mn cooking and baking fats company in to diversified combination of a number of very different businesses in 1994.

Its product offerings included PC¶s. it restructured its organization. This time it focused on providing on-site professional services³body shopping´ to overseas clients. superminis. But in 1990. site planning. Wipro Systems was aiming to be one of the top three software operations in India by the year 2000. The company aimed at becoming an important regional sourcing centre for GE so that there are greater chances of becoming a global sourcing centre. GE struck a deal with Wipro because it was a trusted name and was culturally compatible but not because of its manufacturing or service capability. it changed its focus. Turnover increased by over Rs. Wipro Infotech (WIL) was the second largest information technology company in India.Wipro Systems entry into this market had a substantial impact on its performance. and finance and human resources departments. distribution channels. In 1994 Wipro GE became second largest player in the medical systems market in India with a turnover of Rs 600 mn. minis. its cumulative profit performance was positive. In 1994. marketing support. laser and dot matrix printers and software products and services addressed to specific customer needs.In 1994. faced conflicts arising out of multiple alliances and interests. ultrasound systems and image intensifiers for X ray systems. Wipro entered this market in 1988. And for the first time since its operations began. Wipro Systems commenced operations in the early 1980¶s to tap the growing demand for software. having achieved a growth of over 70 percent in its revenues. on-line transaction. In response. each with its own marketing and sales staff. Wipro Biomed . mini super computers. It carved itself into nine business divisions. WIL. 80 mn in 1991-92 and profits nearly doubled. applications training and the luminary program. it identified medical electronics as an area to diversify into because of its high margin potential. Wipro Systems Wipro Systems was one of the star performers in the Wipro Corporation¶s portfolio. Its success can be attributed to the fact that WGE provides total solution which includes project feasibility analysis. At that time GE was looking for a tieup to shore up its presence in India. engineering workstations. Each division was set up around its distinct product lines. Wipro GE It marketed imaging systems and manufactured CT scanners. processing mainframes.

1992-93: launch of lighting products in the southern and western markets of India . Wipro Biomed made a foray into manufacturing. The top management was meeting the same customer in the research institutes in the universities and R and D establishments of pharma companies with their Beckman products so they wanted to leverage this. It did not operate in consumer finance segment. Wipro Financial Services WFS Extented medium to long term finances to companies for the purchase of capital equipment. 1994: WFS was recorded as the best corporation in the Wipro Corporation¶s portfolio. The expertise and knowledge of these areas were leveraged. 1994: targeted the hospital segment. tied up with PPG Hellige. Strategy: Do no aim to be everything to everyone. They provided prompt customer service to demand a premium 1992: Wipro entered financial services due to the impetus provided by the reforms in the financial sector. It extended its Beckman collaboration into a manufacturing one and set up a plant to manufacture diagnostic reagent kits with knowhow from an American company. WFS hiked its investments in WFS equity after its initial success.1998: formed. It generated revenues totaling Rs 461 mn and a post tax profit of Rs 362 mn. Use the expertise to tailor products and services to meet individual needs of the customers. Mid range companies were targeted who do not have a smooth access to the banking system All the employees were µgeneralized specialists¶. They leveraged the corporate reputation for quality and service as WIT was selling computers to these hospitals and they had a strong presence there. to market and service bio research and diagnostic systems from Beckman Instruments. USA¶ 1992-93 the company aimed at becoming a µsingle comprehensive source¶ for bio research and diagnostic instruments. Wipro Lighting Wipro entered this business as the competition was weak and it offered good margins. Securing additional credit lines from banks and financial institutions was not very difficult for Wipro due to its corporate image. Strategy: To use the retail channel through Wipro consumer products and the competence in dealer management. They were trained to do all the tasks.

korea. with clients. towards proof when customised and and that too telecommunicati compared to other economic offerings with smaller on and Media in verticals. may be launching new price points to reach out to the large masses It can move to Selectively Try and focus on relatedHealthcare is sustenace in west looking at diversification somewhat recession and north zones by acquisitions. and Wipro and south and east has assets needed to players would India and try and zones should be target other help as Wipro establish a bigger tackled by building emerging healthcare practice. . have more brand awareness countries like so focussing on Wipro control and say.1993-94: WL achieved a turnover of Rs 220 mn. china and Biomed would help. WL confronted strong competition in the market place due to the government reforms which attracted a lot of competition. It however failed to generate profits. ISSUES AND SOLUTIONS: Should all businesses be sustained? Looking at the financials and share wipro holds they should try and revive businesses like leather. and relationship brazil. and toiletries.

Working on their personnel from four sides. Technology transformation. Corporate division relationship(holding or integrated) Integrated approach be it in terms of client sharing between SBUs or resource mobilisation would turn out to be more beneficial instead of fighting for contracts among each other.Business skill transformation. business vision. Technology transformation. Culture transformation. A guided coalition of leadership to support the business change imperatives. .. Design action plans to develop or onboard requisite skills for the organization's future state needs.Roles and responsibilities of teams?(HR Perpective) Basic goals and Conduct a culture should flow workforce from management assessment to with autonomy and define the responsibility complimentary flowing through the resources that organisation to facilitate bring it into realization of the implementation.

china and korea locations. businesses. RECOMMENDATIONS: STRATEGIES THAT CAN BE FOLLOWED: . Sustaining flexibility in inter business operations should be limited because the increased span of coverage and market control would require some discipline in place. introduction of updates about Wipro to gain first mover defined targets to measure helping them in advantage in value performance. quick feedback In station Quality to improve defectresolutions upstream. reducing handoffs. on Have a channel which Adaptation will be regulations imposed by works as an Eye of an needed to focus on regulators and rating employee for emerging markets like agencies in the new offshore complete information brazil. focusing on new clients and new geographies would help. focus on new adaptation to new service offerings. events and changes.Flexibility to be sustained or not?? Flexibility in terms of innovation FORUM setup and teams rotation. Adaptation required or not?? Clarity and formalisation. Working on a three way disciplined approach involvingPull Deliver customer value earlier Flow Wait states reductions.

Organic Growth Game changing initiatives Growth engines to focus upon Strategic acquisitions Leadership in India Growth Engine #1:.Organic Growth .

Focusing more on High Growth Business identify. sort accounts on basis of outsourcing experience and competitive landscape. portfolio. Growth Engine#2:. invest-in and accelerate all high growth areas of business. identify strategic accounts lower account mortality and achieve better utilisation of available resources through better choice of accounts. more focus on new geographies and vericals serious focus on this issue needs t0 be addressed appointing special work team for each geographic. ensuring that high growth areas get more time and investment. tools and applications .Leadership in India Enterprise Strategy Penetrate key accounts through all service lines SMB strategy Indirect Sales Marketing Lead with solution templates Thought leadership Stratgiec Alliances Relationship programs Alliance with best in class companies in tech.Increase Penetration globally by ensuring proper resource alignment going beyond conventional budgets.

supported by pre sales excellence Dedicated client engagement managers for high potential accounts and delivery excellence Growth Engine #3. focused Large Deal teams within service lines. Quality Consulting. innovative pricing models. consultative selling.They can have dominance through utilization of three business models combined together as mentioned below: 360º service portfolio Position as both an integrated provider of solutions and offering a range of options Leverage distinctive service lines like BPO. Separate team and leadership for the same. TIS.Game Changing Initiatives Focus on large Deals Invest in stronger. . Testing etc Cross sell and up sell different service lines Domain Competency Leverage business knowledge to suggest innovative solutions Engagement model Focused approach with select target accounts supported by pre sales excellence Understand business and proactively suggest solutions Business Analysts in each account to analyze pain areas and propose solutions Experienced service providers. Strenghten Alliance Initiative This team will:Work with dedicated and leveraged headcount Focus on strategic alliances that span Verticals work to create differentiated value proposition with the partner. create and review joint pipelines withh each partner.

Strategic Acquistions M&A based on Strategic Plan Strategic planning exercise to align organic and inorganic targets at the Sub-Vertical. service lines and Geo levels Create leveraged organisation in each Business Unit and service line to support increased M&A acivity. Finance.Growth Engine #4:. Create a full time position of Integration Officer for each transaction. Stregth comptence for successful M&A integration Create a team from functionssuch as HR. Assimilate local Talent from acquired entity ENABLERS Building Right Capabilty and leadership Performance Management Innovation Consulting Brand . Legal and ISwho can be a part of the acquired company.

Enhance Internal planning and Analysis Scale up internal systems to enable multi dimensional reporting.Performance Management Variable Compensation Scheme refine drivers of variable pay programs evaluate and design program that reward growth instead of merely Plan achievement.Revisit cost/activity drivers systems to measure game changing initiatives. Improve cost productivity. .Enabler #1:.Building Right Capability and Leadership Enabler #2.

Enabler#4:.Innovation Intellectual Property creation Incremental Innovation model Enhance Customer Value amd build a strong Innovation Brand for Wipro.Enabler #3.Consulting .

Brand All this would lead and bring transformation in following dimensions: .Enabler#5:.

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