STRATEGY, VALUE CREATION AND MANAGEMENT

CASE: Indian Railways

Date of Submission: 10th July 2020

Under the Guidance

Of

Dr Srinivas Ainavolu

Submitted By: Group - 04

Name Roll No

Aparna Menon A036

Shalini Priya A045

Karishma Shrivastava C055

Jay Rana D045

Neha Taneja D055

Reems Kottackal J028

 SOURCES OF VALUE TO THE ORGANIZATION

● Determined Leadership: Sushil and Prasad - ready to work around IR despite several challenges
● Economic Conditions: Rapid growth and low inflation in India coupled with a boom of
commodities worldwide led to increase in demand for transportation
● Scale: Second largest railway network; Second largest nonmilitary employer in the world;
World’s largest public utility employer
● Risk Taking: Prasad lifted the ban on recruitment; tatkal quota for charging premium prices
● Investment: High speed locomotives; leveraged technology to improve customer experience,
ticket vending machines, computerized charting and railway enquiry
● Policy Reforms: Changing rules relating to demurrage, modifying maintenance practices to
reduce number of examinations helped, new pricing policy for freight etc were few of the many
reforms that helped bring radical changes to Indian railways
● Public - Private Partnerships in non-core areas like hospitality and catering to meet urgently
required capital investment needs

STAKEHOLDERS OF THE ORGANIZATION

The various stakeholders of the organization include:

● Ministry of Railways: Headed by the Railway minister and assisted by two ministers of state
for railways
● Government: Influenced several key decisions and availed an annual dividend from Indian
Railways
● Railway Board: Comprising of chairman, financial commissioner and six functional members
collectively had influence on future of Indian Railways
● Employees: It was the world’s largest public utility employer
● Customers: One of the cheapest modes of transportation for customers, easier and faster mode
for freight delivery
● Investors: As Indian Railways was financed through bonds.

FUNCTIONAL UNITS ACROSS THE VALUE CHAIN THAT CREATES VALUE

Other important units in the chain that create value are:

● Administration: Looked after by members of the railway board. They were in charge of strategic
and operational decisions
● Operations: The strategies made by the board and the Government are to be executed with the
help of operations in a smooth manner by availability of resources on time
● Engineering: The IR needs engineers of many departments for the smooth operations and better
understanding. Eg- Electrical, mechanical etc.
● Finance: Finance department is responsible for looking after the expenses, revenues, taxes etc.
and come up with better strategies to reduce costs