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15 – 4 PM (Thursday) Balance two groups, (Groups 8 and 9) will complete their previous workload assignment as per my e-mail dated 12.10.2010, i.e. Group-8: Relevance of Structure : ITC Case study. (Which form have they taken? Why? Give your logic) Group-9 Relevance of Structure : A.D.S.case. (Same as above: What will you recommend? Why?)
Later, Section-B’s workload is as per my e-mail dated 13/11/2010 Group-1: Concentration Strategy and Crafting Strategy Use relevant models - Define - Apply to given cases/caselet Group-2 Integration: Use relevant models - Define - Apply Group-3 Diversification Igor Ansoff / any other model - Define - Apply Group-4 Expansion Strategy (Cooperation – Internalisation – Digitalisation) Use relevant models - Define - Apply
Group-5 Cooperation: Joint Ventures: Entry Strategy Use relevant models - Define - Apply Group-6 Licensing, Franchising, Joint Ventures Use relevant models - Define - Apply Group-7 Strategic Alliance, Mergers and Acquisitions/Entry Strategy Use relevant models - Define - Apply Group-8 Restructuring/Re-Engineering/Exit Use relevant models - Define - Apply Group-9 Leveraged buy-outs / Divestment/Closure or Insolvency/Sell-out Use relevant models - Define - Apply [Can use slides 4A, 4B or 4C or all]
Term-V: Course: Business Policy and Strategic Management Section-A 2/12/2010: 1.15 PM – 4 PM Two groups (Groups 1 and 2) are already over as on 16.11.2010 Balance seven groups’ workload are as follows: Group-3 Diversification Igor Ansoff / any other model - Define - Apply Group-4 Expansion Strategy (Cooperation – Internalisation – Digitalisation) Use relevant models - Define - Apply Group-5 Cooperation: Joint Ventures: Entry Strategy Use relevant models - Define - Apply Group-6 Licensing, Franchising, Joint Ventures Use relevant models - Define - Apply Group-7 Strategic Alliance, Mergers and Acquisitions/Entry Strategy Use relevant models - Define - Apply Group-8 Restructuring/Re-Engineering/Exit Use relevant models - Define - Apply
Group-9 Leveraged buy-outs / Divestment/Closure or Insolvency/Sell-out Use relevant models - Define - Apply [You may use case or slide 4A, 4B or 4C]
40 crore plus project. which have been presented in this case. (NCCL). the Management Consultants (M/s. Several competitors existed – all over India – but not for IRC. It had three operating plants in the State of West Bengal. finance and cable etc) operated all over India with an impressive business turnover exceeding Rs 600 crores per year (Period: 2000-2003). Present organizational (Division-level) structure is presented in Table-1. who are interested in the field of integrated business development for sophisticated industrial products and services. An integrated plan for Business Policy. Nicco Cable Corporation Ltd. will realise the critical need for internal “Smooth coordination” (Process). this unique case study demonstrates: Over a three year long period (2000-2003). Profitability. This case will deal only with the Cable Division (CD). which is needed to ensure professional and commercial-level business launching – especially for an unknown product concept. qualitative marketing research. this case has demonstrated the critical need for a techno-commercial feasibility study. was quite low. integrated business development has been presented for a Rs. Relevance of quite a few well-known management concepts and theories have been highlighted in this case study. However. which were pre-selected by the client’s management. project assignments have been suggested for readers. to the extent possible. At the end of the case study. are hypothetical in nature. CG) were given the part responsibility of initiating first-level business negotiations with the concerned managements of interested prospective business organisations. however. Background A large cable manufacturing company in the Private Sector (With Head Office at Kolkata and three separate factories in different districts of West Bengal). whose divisional annual turnover was nearly Rs 280 crores. All data. . Also. This firm is a very well known organisation in the cable industry and it operates on an all India basis. future potential of IRC for few specific end-usage applications Finally. Strategic Management and functional plan for - - - What was missing? implementation.Scenario Building Case-1 INTEGRATED CASE STUDY ON NCCL: CRITICALITY OF LINKAGE: BUSINESS POLITY – STRATEGIC MANAGEMENTFUNCTIONAL LEVEL IMPLEMENTATION PREFACE: This case study has been designed based on this author’s personal three year long involvement as a part time management consultant to M/s. in the third phase. telecom. Purpose was to quantify. which alone could have pinpointed the financial viability of this capital-intensive new project concept Another marketing research had been attempted with a few prospective business organisations. which involved local manufacturing and marketing of a unique type of Electron Beam Irradiated Cable (EB-IRC) Starting with a conceptual. all students and practitioners. with several other divisions (Projects. yet.
: Cable division Reported to Deputy Managing Director SB (’66 batch Mechanical Engineer) Director Sumit Basu (’70 batch Chemical Engineer) President Staff level AB(Middle aged Electrical Engineer) *1 General manager. Purpose is to highlight the process of integrated business development – for any new project on IRC (Customised special cables). Consultants. IRC: Irradiated Cable All data presented in this case are completely hypothetical.D. [Also. HRD etc. highlight: What all were missing conceptually.) Sandip (Asst. business development) Other functional personnel (Two important officials) Dr P (Sr GM. Production located at Shyam-nagar plant) Dr K Sr VP (R&D) ↓ Based at Kolkata office Other common departments (Finance. at the Top Management level].: An Electrical Engineer with 10 years of relevant experience in a competitive firm) A personal secretary *1 Key: Note: Coordinated with external agencies like Core Group (CG). Personnel. .Table 1: Divisional structure in 2000 A.
simultaneous with this externally organised market survey. generated on the basis of an exploratory research. No clear cut plans existed. Another competitor was contemplating entry. there was a full fledged marketing unit. which was conceptualised in 1999-2000. where a Senior Vice President. which was computed to be Rs 40 crores for this highly sophisticated (first time in India) cable. Based on these rather sketchy data (First level subjective opinions). 2002. look into : Concentric diversification Or even non concentric diversification (Like ITC’s :-Edible Oil and other projects) Hotel project Edible oils Financial services etc.Besides. defence authorities and other large. Marketing headed the all India team. however. tradition and lot of bureaucracy still existed in this firm – especially while evaluating totally new project concepts like the one on Irradiated Cable (IRC). Jamshedpur. The Managing Director was a highly respected Management luminary. Management Consultants. although their Chairman was reported to be a very well connected person and quite enlightened. Around first quarter of 2002. for their standard cable division. after production had started for this project. Marketing and a retired Consultant on “Publicity and Promotion”. Very strangely. Indian Railways alone were on the verge of awarding a contract worth nearly Rs 25 million ! Similar large value orders were expected from other large Public Sector Undertakings and private organizations.) [Please see Annexure 1 : Igor Ansoff’s Product market mix]. all based at their own Kolkata based head office building. M/s CG. besides a General Manager. IRC project: NCCL worked on an investment base. as well as from very large “Harness manufacturers”. Few relevant and indicative technical aspects have been enclosed in Annexure 3. All in all. on following broad issues: Electron beam Irradiated Cross Linked Cable project: . prospective end user firms like TISCO. as on May. Few notable findings have been presented in Annexure 2. client’s Management had started separate dialogues with railways. In addition. as how to organise and who will look after new business development via :New product development New market development Ensure : Capacity optimisation Human resource optimisation If called for. as follows: Initial data base (Only in these two end usage sectors) which have to be : Reliable Valid Consistent Substantial. firm’s Management had internally organised a detailed techno commercial feasibility study. which technically was superior to chemically cross linked additive (CV method). were given the preliminary task of organising an exploratory market evaluation in two probable end usage areas of White Goods and Automobile sectors to generate sufficient data for decision making.
approximate yearly gross margin needed to be Rs 8. Above were used to prepare the foundation for considering the market potential based new project evaluation versus costs involved for machinery importation. Dr Shyam.280 crores (= Rs 18 crores × 0.46). commissioning and start up in one of their plants in West Bengal. Costs versus benefits to actual users. based on :Segmentation Targetting Positioning (The STP concept) ii) Approx 46 percent (Average) was the planned gross margin (Revenue – direct variable costs). all headed by firm’s Managing Director Dr AS. At this theoretical rate. a highly renowned Management expert with specialisation in Financial Management aspects. available substitutes. It meant a major effort in new business development on a regular basis to : Convert large prospects to customers [This will need a total organisational effort] Select those end usage areas. had started in the fourth quarter of 2001 AD) is achieved. thought that several other financial parameters. where IRC will make an impact. 3. should also have been considered :Return On Investment (ROI) Internal Rate of Return (IRR) Discounted Cash Flow (DCF) Cash Flow Statement etc. installation. specific enquiries have to be generated. This will be a strategic decision. The latter two phases had been internally worked out by firm’s other divisional counterparts. Financial viability study was also organised internally by the cable division. Comparative report on EB versus Chemical cross linked products for customers EB cross linking properties (All features built in one). Also. like the following. Technical particulars of cables for working voltage upto and including 4 KV range (Temperature range : 40 degree centigrade to 120 degree centigrade) Electron beam Irradiation Cross Linked Cables versus usual CV method. this brand new project will be financially viable only if following are organised :i) At least Rs 18 crores yearly turnover (Production. In other words. at least five years will be the needed as pay back period to recover the capital employed. Reportedly. Partner of M/s CG. under Dr Panda. as compared to existing. who need to be fully convinced about IRC’s special features.1. leading marketing research firm in Kolkata. depending on : End usage applications and degree of needed technological component versus those provided by presently available substitutes. which obviously will vary. erection. 4. 2. .
need to be focussed. Needs & wants to be satisfied SWOT exercise(Internal) Using the concept of Business Policy and Strategic Management. from which target segments. this internal exercise has also to qualify as well as quantify the present needs and future requirements. At a later stage. necessary Positioning exercise can be designed and implemented. this internal brainstorming session MUST assess clearly: Who are the Stakeholders? What are their expectations at the international level (Corporate). through collaborative efforts. within and outside India (Concept: PESTLE). to use a new product. [Study enclosed annexure-4: Integration – Business Policy – Strategy – Structure]. Shyam functioning as a neutral Facilitator. even after research studies”!! At the functional level: . over a period of time. He suggested that. as a follow up measure. Dr Shyam repeatedly informed the concerned TOP Management personnel of M/s.. many new product concepts failed commercially*2 For this. after completing the above mentioned exercise at the Top Management level. which may even involve Expansion Strategy at the global level. an internal SWOT analysis should be organized to clearly highlight the following conceptual aspects. as also the concerned DMU’s (Decision Making Unit members) willing acceptance. ie. alongwith presently available competitive substitutes. potential. if relevant. using specialized Marketing Research technique. Then only. national (Business level) and. local as well as with international buyers-users. The prospective buyers and users can be both within and outside India. if any should be identified. if any. their “Needs and Wants” should be explored in-depth. which has to consider both relevant environmental factors. relevant potential is always an important factor. Dr Shyam realised that for any highly capital intensive project. which is critical for any Top Management to clearly highlight both policy guidelines and strategic route(s) to be chosen. NCCL that the following managerial steps should be taken with Dr. both within and outside India. as well as presently available Core Competency (Strengths and weaknesses). finally. using cost-benefit analytical technique (CBA). preferably with concerned Board of Directors and top level functionaries.However. [Concept: ST-P]. This study will help in clearly identifying relevant segments. Dr Shyam also was well informed that even with often hastily drawn up market studies. This needs to be explored in-depth. knowledge of market’s demand. a market study in North America came out with a research finding: “58% of new commercial (Product) launches failed. of the ultimate buyers and users of this type of new Irradiated cable. etc. (Please see Annexure II). at the departmental/functional level? At the national level. Strategic Management decisions should be taken. At the Top Management level. Then. if necessary. To start with. *2: In 1958. [Define: Expansion Strategy]. which was all along imported as on 2000 AD by a few large firms like :BPL Appliances Electronic Research Ltd. To sum up: SWOT is an internal exercise.
under instructions from the client firm’s General Manager. Simultaneously. as well as accountable. needed service level inputs.“Marketing and any business operation is all about :Identifying a customer Maintaining a customer”---.. should be to quantify. to reach the common set of Goals and specific Objectives arrived at before the very expensive new project launch. starting with the global level. finally. in a typical interaction. . Linkage has then to be established at the: National level (India) And then to departmental level (Cable division). national (Here India) and. Purpose is to find out from the prospective buyers-users. latter being not too popular in many large and medium sized firms. have to be assessed by the specialized research team. Business Development. a conceptual exercise alone was carried out (As in this case) by M/s CG. In other words. step wise market assessment has been conceptually suggested to minimise failure probability. possible buyer segment wise – once again within and outside India. Dr Shyam’s mild corrective reminder to the President of a large company about Dr Peter Drucker’s oft related statement (Please see below) did not go too well.First level qualitative conceptual market study (Often without samples) needs to be organized to have a first-hand “Feel” of the new product and its possible old and/or new buyers-users. which sets a set of common Goals (Business Policy level framework) to be achieved amongst corporate (Global). after satisfactory sampling exercise. hunch and sixth sense !! How then should one go about ? It is well appreciated that marketing researches do cost considerable time. within and outside India. systematic marketing researches were not organized and often these are substituted by “Know all Managers’ gut feeling”. their acceptability from the technical and commercial points of views. needs to be thought through first. What was actually done as per advice of NCCL’s Top Management? Like in any Engineering or even Medical assignments. Unfortunately. Basic overriding concept: Formulation and implementation of ‘Super Ordinate Goal” concept. whose Senior Managers “Intuitively” knew anything worth knowing about market and its needs – a real “Id-centric” attitude. All the internal “Players” will be held responsible. Business strategy formulation (Leading onto marketing strategy) Corporate level business plan. The next step of operation. inter-link with the cable department (Shyamnager Factory) in West Bengal. since the President verbalised about the same marketing definition from another Marketing Professor. money and often outsiders’ involvement and expertise. to the extent possible. as in numerous Indian new product/concept launch cases. who happened to be Dr Drucker’s student! --. to ensure customer satisfaction. the present and/or future requirements of IRC. as a part of the second level of sampling exercise. This should be followed by development of new prototype. For example.
energy. as follows :Pre specified “Goals & objectives” have been clearly defined and accepted in principle by concerned departmental heads. This needs a fully thought out organisational structure to ensure the concept’s acceptance. say from a scattered White Goods sector market. (Refer: Alex Osborn. In addition. prior to ensuring its professional success. Product Life Cycle (PLC) concept must be clearly understood (Please study Annexure-4. which is usually so uncommon. which signifies total firm level involvement. cost considerations or both. subjectively assess probable competitive reactions. hardly appreciated by many Managements and often mis-interpreted. The old structure* may not be sufficient. successful commercial launch of IRC] How to reach objectives in India? [After all planning had been completed] Rs 18 crores sales revenue needs to be generated every year with average 46 percent gross margin. say from : Corporate planning (International and local) R&D Local + Materials Management Departmental Production Finance & Accounts Marketing / After Sales Service etc. patience and perseverance. 1958) can be used to arrive at a common work agenda. It must be clearly understood that any new project/concept will :Need time. [Organisation Structure: Study project assignments]. after problems have been identified and formulated [In this case. Total team effort needed (Synergy and concerted efforts): Customer orientation is a two letter word.[1955 statement of Dr Peter Drucker] Id and ego often played “Hell with logic and common sense”. before going in for any new project’s total financial evaluation. out of which 15 units had already been interviewed in the exploratory market survey (Please see Annexure 5 for list of initial prospective names). After all. It is understanding and then logically implementing the “Super ordinate goal” concept. It is not marketing. The “Gap” between possible market demand from above and firm’s expectations (Objectives) will be the basis for developmental business strategy.1). Even “Brain storming sessions”. The Central Coordinator will have to sit with the Corporate Planner and Marketing to work out how much of yearly business can be generated from : Existing end usages / customers New prospects Also. a simple thought process hardly realised by many experienced professionals – either due to ignorance. This will need an in depth descriptive marketing research by which aspects like the following have to be quantified :Plan for local business development . types of marketing personality needed for existing product lines and new concepts (Being tested) may be quite different. which is a functional job. since other existing product lines too needed to be looked after. 42 names had been identified as a preliminary take off point.
For White Goods : (Specific Information Bits : SIBs) : To generate data on: 1. Usually. services. internal Coordinator has to work very closely with external buyers users (To be) and simultaneously coordinate internally with concerned departmental officers (R & D. conferences etc. In the process. 3. in consultation with his team members. whose wide-spread probable usage will be highly dependent on: (i) Table-2(Enclosed): It demonstrates. Most importantly. as also clearly defined job descriptions – right from top Management. It is very easily said then done – since a lot of “Id related” human factors are likely to surface !! Man Management is essential. needs to be assessed first with presently used cables. who too have to be involved. on eight separate criteria: - What is actually being achieved in 2002? What may be possible during 2002-2007 ? (Prognosis) Objectives of the firm. Which firms will need how much of IRC and when ? Why will IRC be needed? What specifications – for what end usage(s) ? 2. From whom and how much per year are they buying now ? Imported sources Local substitutes. at acceptable financial terms. Materials Management and the like). Production. 4. major emphasis is on “Today” and existing customers and presently available products. if any. For example. assessment of existing “Level of dissatisfaction”. much lesser resource allocation is invested on developmental projects like IRC. Usually. how to generate new business and from which end usages firms ? Acceptable trial samples have to be developed in time. the Coordinator can also work out. 5. Prices and financial terms Place : How IRC is supplied and via whom ? Promotion : Basis for awareness creation via : Advertising and publicity Sales promotion via : Trials and demonstrations Sampling Knowledge upgradation via seminars. . Personal selling and interactions.
8Y1 Gap 3. Proffit before tax (PBT) Rs.2 Y1 0.2 MS1 0.5 EM1 Rs. Employee morale (Qualitative) EM1 1. Corporate goodwill (Qualitative) 1 CG1 1.X1 Actually possible (2002-2007) [Prognosis] 1.5 M 0. Table 2 Corporate objectives * a five year perspective Sr Nos Corporate health “Indicators” Say in 2002 (Present status) Rs.5x1) 2. Market share (%) MS1 1.1.30 Gap 4. Sales value .20 CG1 Gap 6.3 CG1 0. Growth rate (%) Y1 1.(ii) The Strategic Route(s) will be for filling up the “Gaps” between what is possible (Prognosis) and what are the firm’s expectations (Objectives)? This can be a combination of: - Maintenance Management And - Developmental Management for IRC.5x1 Gap (0.5 Gap Qualitative aspects 5. M Rs.5 MS1 2 Y1 Expectations (2002-2007) 2x1 1.2 M M 1.1 CG1 1.2 EM1 1.
A regular cycle Prognosis Objectives Strategy formulation Tactical aspects Follow up.5 I 0. and his senior bosses.7 I * Michigan survey Research Centre (1967) functioned as Management Consultants for 6 months General Electric. feedback and replan Interestingly. it should be clear to any reader that : The process should be :Diagnosis Analysis and where a firm “Stands” at a point of time vis a vis competition in India and abroad. Actually possible status. prior to fresh “Relearning” and further reinforcement – especially. given same/similar environmental & internal indicators. From the above. Add Customer satisfaction index (CSI) Part quantification 0.5 CS I 0.3 EM1 Gap 7. it does not need a genius to understand few basic home truths like the following :An alternative : [Strategy→ Structure→ Implementation] .0. USA. several of the already mentioned Management concepts are known to many Executives like Mr AB of M/s NCCL. These were the output on the first 7 Indicators. Where the firm “Wants to go” ? Why? How to bridge the “Gaps” (Please study Table 2) Decision on which “Action plan” to follow ? Cost benefit analysis is the basis. in reality. considerable “Delearning” needs to be organised. who may want to be marketing oriented – but.4 CS I 0.10 CS I : Gap with 0. Image (Qualitative) o. for down to earth implementation.10I Gap 8. Though not too much of resource is allocated to assess to what extent actual efforts are really producing results.6 I 0.6 CS I 0.
Bangalore The above figure was an educated “Guesstimate”. may be a potential segment to the tune of Rs 5 crores business per year from large prospective firms like :Godrej. For this firm. A major observation of their General Manager. ideally. which were usually risky propositions and may not even take off!! Mr AB had requested from M/s CG a “Proposal” as how they may like to handle. Electronic Research Ltd. Development is always time consuming and usually very frustrating. The $ 64 questions were : Phase one : Descriptive study is a must to estimate market (Present) demand and future potential – firmwise – since “All eggs in few baskets” may be a myopic approach of any management. natural human tendency is to go in for the “Path of least resistance” and concentrate on existing product market mix.1. full business development during :Short term (6 months – one year) Medium term (One year – two year) . although orders were trickling in from few. of Mr AB. BPL Sanyo & Appliances Ltd. on a five year contractual basis. How can a suitable marketing organization (Structure) be designed and implemented ? Obvious best bet will be via their own set up. as also to the division’s several seniors. 2002. should not allocate time and energy for new prospects / concepts like IRC because the personality type(s) needs to be different. *: [A basic question for Readers: Why “Sunk” the entire capital before detailed feasibility study (Project Report) had been completed. at least initially. starting with market exploration in India and abroad?] The 2002 May fiasco [What actually happened?] The market development plans were not in consonance with actual order status! As mentioned earlier in this case. However. very selective sources. Business Development to Dr Shyam of CG was :“We know from your preliminary market survey that White Goods sector. Bangalore Indian Fine Blank. besides Rs 25 M probable business from the Indian Railways. literally weekly contact. considerable “Gap” existed between business objective and actuals – as on May. where its Management has already “Sunk”* Rs 40 crores. leading onto survival and then growth. - Phase two : Existing organisational structure was far too occupied with existing market products/services and usual nonchalance to totally new projects. One team has to concentrate on today’s market products (Cell 1 of Igor Ansoff : Annexure 1) so as to ensure total customer satisfaction (Via Maintenance Marketing) : Build on strength principle. 2. Hence. Vikhroli. Business Development of this firm was in regular. This may be considerably modified. which is a fragmented market. Same team. few other new business prospects were being explored with :Defence authorities (Indian Navy) Few large “Harness manufacturers” like a well known Delhi based party with whom the full time General Manager. Goa. its commercial success is of critical importance – both to the senior management level of M/s NCCL.
2. 7. 8. (Structuring) . 3. 6.Phase three: Long term (Beyond two years) Dr Shyam designed and submitted a comprehensive business development proposal for the consideration of firm’s Top Management (Please see Annexure-6). Constraints : In firm Feasible alternative(s) identification Cost benefit approach (CBA) Decision Plan for implementation : How to go about ? Organisation for implementation. quantifiable and achievable targets. Problem identification and formulation (Via identified symptoms) Objectives : Short term. CG’s suggested plan of action PROBLEM SOLVING APPROACH: Stages 1. 4. 5.
as gross margin in the first year. . descriptive research all over India to start with in the White Goods sector for which about 42 prospective firms have already been identified. Reportedly. during and after sales Strict adherence to needed delivery schedule. CG will have to enter into a long term business contract (At least for 5 years). Stage 2 : Based on the above inputs. at present rate ofgross contribution.CG: Well-known Research Organisation. quantitative. planned follow up for business generation. have to coordinate intimately as a team by which prospective parties can be converted to customers. which also have to be clearly pinpointed. by which they will be held responsible for generating. This may increase progressively if the market needs so in future. to start with. which need to be specifically identified. which may number between 10-15* organisations. the average gross margin (Revenue minus direct variable costs) ranges between 40-46 percent ie approximately Rs 2 crores will be expected per year from this sector alone. During the process of this market research. the following aspects of After Sales Service (ASS) have to be scrupulously and jointly organised to ensure long term business continuity : Acceptable response rate : Before. Focus: Targetted prospects have to be converted to long term customers – at least most of the parties from the original list of prospects. which may not be interested at all in any type of Irradiated Cable due to reasons. Mid term (1-2 years) : Few more organisations Long term (Above 2 years) :For a few more organisations. an yearly business of Rs 5 crores. Also. during this 5 year long contractual period with the Management of M/s NCCL. both legally and functionally. From this study. it is expected that future relevant market potential for IRC will be available as follows : Short term (6 months – one year) : few firms. as follows : Stage 1 : A detailed. CG expects to eliminate those organisations. Present focus : M/s CG have suggested to the management of M/s NCCL a three-pronged business development approach. Stage 3 : Actual implementation – (As per plan) and continuous. The proposed arrangement : M/s CG & NCCL.
In short. One Coordinator. Objectives were: To appraise all concerned personnel of client regarding the relevant market findings. . preferably on a full time basis. should be made available from NCCL’s Management. start up Organise required frequency of visits by sales & service engineers Help in development of quality relationship between vendor’s representatives and concerned Decision Making Unit members (DMUs) of each and every customer/prospect. CG’s marketing professionals should be allowed to interact directly with all concerned technical and professional personnel of M/s NCCL specially during the stages of : Product development Trial launch Product modifications. To suggest a Plan Of Action. Optimal “Marketing orientation” of the vendor’s management for all needed problem solving. over a period of time by organising needed : Marketing strategy. based on market feed back provided by CG. To clearly work out. For commercial consideration. as well as managerial activities have to be worked out officially between these two organisations so that following are organized: * Exact number of serious. short term oriented prospects will be known after the detailed marketing research is completed. clear demarcation of functional. activity wise. Objective is to develop and ensure “Customer Relationship Management” (CRM). installation. OTHER RELEVANT ISSUES: Over lapping of responsibilities is strictly avoided (Between CG and NCCL) Problem solving approach must be the only approach to ensure within organisational integration ie for internal conflict resolution CG’s all concerned marketing personnel have to be trained fully in all needed technical aspects of this product line. CG’s management also proposed a 2-day long Workshop after the marketing research findings have been made available to NCCL’s Management. Marketing organisation specially for after sales service by NCCL’s technical wing. Marketing mix parameters. Ideally. which can be modified based on suggestions by NCCL’s concerned personnel. Timely availability of spare parts Ensure training of operators as a part of the total system Help in erection. to ensure first level orders and then regular continuity. regular “Client level servicing” has to be organised over a period of time. To organise the above. commissioning. it is suggested that the method of “Relative Contribution Approach” (RCA) * is adopted to determine tailor made pricing and financial transaction mode (Customer specific). only if market potential exists. as and when called for (For modified rebuy) Commercial launch Ensure regular supplies. Full “Product knowledge” is very necessary.
how. who will be expected to market their products to customers and prospects in White Goods sector.2) III Need for integration between the principal company and CG.2 II Yearly targets for sales value and volume and expected yearly gross margin over a 5 year period in pre defined end usage industries (Example : White Goods sector) CG’s expectations on a yearly basis (Spread over 5 years : 1/8/2002 – 31/7/2007) CG’s proposed organisational structure for this project. This RCA can also be discussed in detail during the proposed two day long Workshop. “What the market can bear” approach should be adhered to. through whom and at what cost ?” (Plan of action ie. after the quantitative market research is fully completed.1 Detailed work plan : 2. along with financial implications. internal coordination may become a major stumbling block for any business development. Without completely clear and well defined functional flow.1).1 Clear demarcation of : Organisational allocation of authority and responsibilities Detailed contractual agreement between CG and NCCL for at least 5 year period specifying : 1. * For any new product development and initial trial launch. . rather than the usually applicable full costing base. How CG functioned ?[Iinteractive action plan for new business development] The suggested steps are as follows : I Back up structuring : 1. (Please see enclosed annexure 7. Proposed functional activities : 2. specially during the introductory phase (Refer Product Life Cycle concept).“Who will do what. to start with. Customer specific pricing mechanism has to be organised. when. implementation). This is a must.2 Short term (6 months – 1 year) Mid term (1-2 years) Long term (Above 2 years) A proposed activity flow and sequence for business development (Please see annexure 7.
All the above 17 projects were involved with : “How to measure. Marketing Services. on behalf of our several all India level clients.SUMMARY “Strengths” of CG M/s CG. a separate division had been launched to identify. . 17 Workshops had been organised. quantify and then organise customer satisfaction?” Several techno commercial feasibility studies have also been designed and organised – out of which 2 large projects were funded by World Bank. CG have developed their expertise as top grade specialists in the field of Management Consultancy (Generic) and specifically. select and recruit. During this period. they have designed and organised : More than one hundred. a partnership firm and now under the effective leadership of Dr Shyam. in the field of Industrial Buyer Behaviour. both managerial. as well as supervisory level personnel. as for this project. In short. short duration in house Management level re orientation training programmes had been designed and conducted for 40 different large and medium organisations. Nearly one hundred. started their operations from Kolkata city in 1982. out of which more than 70% were concerned with industrial products and services. New Delhi Nalco Chemicals : (1997-1998). : (2 Projects) Exide Industries Ltd (3 projects) IBP Co Ltd Marubeni Corporation. Director. all India level marketing research assignments and a large number of regional projects. : (9 projects : 1993-1996) ITC Ltd. In addition. 17 all India level projects had been designed and organised from 1992 onwards for 6 large organisations like : BOC (I) Ltd. From July 1996 onwards.
to start with during 2002-2003 itself. had been an effective management strategy in many parts of the developed world. especially for identification. the Management of M/s NCCL had decided and then implemented a project for Irradiated Cables (IRC) at a total investment of Rs 40 crores. dealers etc. a few more organisations needed to be identified for additional business development so as to widen the customer base and increase the sales revenue as well as the profitability. Purpose of this detailed proposal was to convey to the management of M/s NCCL an overall modus operandi to: Identify new business prospects. production had already started and business had been obtained from the Indian Railways. via maintenance marketing should be the prime focus during this period. - - - . Discussions were already on with other end-usage industries like automobiles for new business development. Based on the findings from the first level exploratory market survey organised by M/s CG in 1999-2000. the much needed “Super ordinate goal concept” needed to be professionally and effectively implemented to ensure that this high capital intensive project. which was already implemented.For the project with NCCL : Contractual arrangement. dealers etc to start with in the White Goods sector in India. Long term (Beyond 2 years) : The same above mentioned principle needed to be implemented. an yearly business of Rs 5 crores (With average 40 percent gross margin) is generated by M/s CG via needed techno commercial consultation with concerned personnel of M/s NCCL Mid term (1-2 years) : Stabilisation of business with already established customers. development and then maintenance of new prospects. In addition. As on April 2002. If called for. so that. starts producing specific results in terms of “Effective 8 Managerial Indicators” (Please refer to the observations by Michigan Survey Research Centre). and as per advice of the management of M/s NCCL ie in direct consultation with each other. joint decisions needed to be taken for systematic and scientific business development as follows : Short term (6 months – one year) : 10-15 relevant parties. dealers. After a proposed detailed descriptive research had been organised with 40-42 organisations only in this segment.
In conclusion. this proposed contractual arrangement. Decision from the Management of M/s NCCL was awaited. LIST OF ANNEXURES 1: 2: - Igor Ansoff’s Product Market mix Few notable findings from CG’s Exploratory Marketing Research (1999-2000 May) in : Automobile Sector And White Goods sector Few relevant and indicative technical aspects on EB Irradiated Cross Linked Cable 3: . therefore. needed to take off from August 2002 onwards AFTER a scientifically designed descriptive research had been satisfactorily concluded during MayJuly 2002. at least for 5 years.
7.4. List of 42 prospective firms in White Goods sector (Relevant Universe) Outsourcing CG’s total business development proposal for IRC project.Long term Market development (primarily available internal human resource optimisation) IV - Very long term Diversification Concentric SWOT analysis. Non concentric . consistency) Medium term II . 7.1 : 4. Product Life Cycle concept Integration concept: Business Policy → Strategy→ Structure. New outlets/usage.1 7.New product development Emphasis on existing (Technical) Capacities and strengths (Capacity optimisation) III . depth.2 CG’s proposed organisational structure Proposed activity flow and sequence for business development ANNEXURE-I PRODUCT MARKET GROWTH MATRIX / BUSINESS DEVELOPMENT MODEL [ADAPTED FROM IGOR ANSOFF] Short term I .Sales optimization Increased sales.2 5: 6. Rate of usage. Elimination of non profitable product lines. Relevant product lines (Width.
Philip s. Virgo Nagar Post. New markets – present products. Idea Generation Technique IRC project Sr. designations of respondents ANNEXURE 2 WHITE GOODS SECTOR:A probable application area in India. . Price Suppl ying to Video con. Bandap ur Village Old Madras Road. Or A combination of the above.Four sub segments :I II III IV : : : : Present markets – present products.. New markets – new products. Onida & others . Ltd.5% Provide samples to Mr Preman 1. Bangal ore-49. Tel. BPL.Prices -sent) level (Where available) Major criteria for purchase Other aspect s (If any) 1. (Delhi) Satis-fied Import Tarrif 3. Quality 2.* Level of Present Present level of If IRC is How IRC awarene requirement satisfaction with imported. 847227 5/304/3 10/632 Mobile : P I Thomas Dy General Manager (Manufacture) - 40 KV 20 KV 75 KM/month Electro Conso rtium Pvt. No s. can be ss about s – m/km present suppliers available introduce IRC per year & relevant d in this [Qualitat . address es and Tel Nos Names. Names.. Electro nic Resear ch Ltd. (Harne ss Manufa cturer) 35-36. Present markets – new products.Typewise SuppSatisdetails company? ive] (Specificati -liers -facons) (Pre-tion .
5meters / year (Harness) Refrigerato r 8000 PCS/annum Washing Machine 10000 PCS/Annu m (Name not disclo-sed) Flat Cables Supplier Tarapur Cables (Mum-bai) NA Sent details about price. Tel.. Plant03. Rohit S Bhatia Sr Manager (Purchase) Ext. 9845030948 Fax: 91080 847224 4 BPL Sanyo Utilitie s& Applia nces Ltd. Name s of Harne ss manuf . Verna. Goa403722 Tel.: 91834783303 /04/07 Fax : 91834783306 Godrej GE Applia nces Ltd. Sadara mangal a Industri al Area.1. Tel. quality and sent samples 1) Nearby Located 2) Quality 3) Price Woul d like to consid er locall y manuf acture d IR Cable s. R&D - 22 AWG Blue – 20000 metres/year Brown – 20000 metres/year 18 AWG White – 20000 metres/year Black – 20000 metres/year Not dis-closed Satis-fied Import tariff 35% Directly importing from SMO Corporati on Ltd..Satis-ers -fac(Pre-tion -sent) level N.2. Salcete r. White field. 6405 Mr. PMQ) Ext. 1B.Rajeev C Joshi (Dy General Manager.803. Verna Electro nic Society . L-1. Vikhrol i(W) Mumba i-79. (Manager.: 845257 0/2186 IFB Industri es Ltd.A. 3.00/metre depending upon cross sections Suppli. 6761 No awarene ss 2. Vendor Development) They are aware about IRC 4150 km/annum Rs. Pirojsh anagar. Mr V S Kamath. Provide samples & quotation to BPL 1) Price 2) Quality Cable Harne ss for Micro wave Oven (Cord s and Audio spare) Other cables used – Roun d Cable. 517313 1/41 K Parameswaran Assistant General Manager. Bangal ore-66. 4. Send details about product alongwith quotation and samples 1) Price 2) Quality Will consid er after seeing /testin g quotat ion and sampl es.
A. Sampl e 1) Dump point in Noida 2) Quality 3) Price Major criteria for purchase Othe rs aspe cts (If any) 1. Send 1) Company details 2) Turnover 3) Factory 4) Wire House 5) Sample. On Noida Dadri Road. Maintenance) A. 456825 1-55 Ext. After comp aring C. . Dewoo Motors India Ltd. Key: % Percentage IRC project AUTOMOTIVE & HARNESS SECTOR: ANOTHER PROBABLE APPLICATION AREA IN INDIA* Sr. Materials Aware Mains Cord with connector 1. Dist. acture rs not disclo sed. 24 strand . Names. designations of respondents Level of awaren ess about IRC [Qualit ative] Aware Present requirements – m/km per year .Nos. available & relevant details How IRC can be introd uced in this comp any? Send 1.Service s) Arun K.Kaul.25 lacs. Sector81. 6) Rate.) Tel..5. addresse s and Tel. 2302. Fax: 91-22517223 4 Samsu ng India Electro nics Ltd. Comp any detail s 2. Plant data 3.: 91569265 Fax: 91 011 569234/ 202 L K Pandey (Executive Materials) 91456 9239)D) Sudesh Khokar (Asst. B-1. Sr.Typewise (Specification s) . PhaseII.Manager . Surajpur -203207. Gautam Budh Nagar (U. No s Names.Goyel General Manager (Power Plant) 91-569263 (D) Harness: SatisDelphi -fied Other Vendors: Not dis-closed Mainly CCI NA Will buy from CD if price is same s what they are givin g now.Manager (Engg. 1) Quality 2) Price 3) Timely delivery. Produ ction 4.Prices (Where available) PVC 500 metres/year 5-10 lakhs pcs/year (Harness) Present level of satisfaction with present suppliers Supp-liers (Pre-sent) Satis-fac-tion level If IRC is imported.D’s price with their presen t purch asing price will they think about purch ase./year. Fax: 456825 0-57 Kamal Bhargava Dy General Manager. 15 dia metre 3000-4000 metres/year 2-3 vendors (Would not dis-close names) Satis-fied N. Noida201305 Tel.P.
QS. 3) Quality. . Mig ht be CD’ s pros pecti ve clien t. not a crite ria for them .P. Mothers on Sumi Systems Ltd. Noida201301.2. 3) Price 4) Send sampl e To Singa pore (Test Lab) 1) Must be IS) 9000 and QS 9000 2) Gurgaon wire housing facility. Sector-I.:Ga utam Budh Nagar. 914551823 /1851/18 55 Fax: 9111914521966 S K Arora (Deputy Manager. Gurgaon -122001 Haryana. Kherki Daula.000 km/month Imported 200 km/month Buys From Japan Not disclo-sed Local supp-liers (2 vendors) Will not disclo-sed import process Satis-fied NA Send 1) Comp any detail s 2) Cost 3) Sampl e 1) Quality 2) Price 3) Prompt delivery They give oppo rtuni ty to new vend ors. C-14A & 14B. Materials) Aware as cross linked XLPE 10.: 91124 37104041 Fax: 91124 372356/ 196 Mr.Sandeep Singh Asst. ISO.Manager. Tel. Delphi Automot ive Systems 42nd Mile Stone. Not Disclo-sed Satis-fied Will not disclose 1/2 vendors Send 1) Comp any profil e 2) They will visit all comp any’s plant. 3. Dist. Tel. They have their own quali ty contr ol. Deci sion regar ding cabl e sour ce of supp ly take n by them . Purchase (Packard Electric Systems India) Aware Supplies to: General Motor : 100% Maruti: 45% Mahindra : 100% Hind Motors: 100% Dewoo : 100% Mercedez : 80% 15% local purchase 85% import. U.
4.000 metres/year = 30 kms/year Forma Electric (Che-nnai) Siemens Satis-fied NA Send 1. Quality 3.1 kv Re. Super ior than PVC 1.1 /met re. *: Question: How about outside India? . 20 kms/year (IRC) out of 120 kms/year (PVC + IR) Tarapur Cables (Mumbai) Satis-fied 120000 metres/ye ar (Imported ) Give detail s about 1) Infras tructu re 2) Quota tion 3) Sampl e 4) Relev ant docu ments regard ing produ ction of IR Cable s. Vikhroli (E) Mumbai -79.: 914114 54375 Extn. Pirojsha Nagar. V Sukumar Plant Engineer No Aware ness PVC : 1. Terms & condit ions 3. Tel.1 kv XLPE : 11 kv 2 metres/car (15000 units/year) = 30.. Price 2. S P Koil Post Chengal pattu603204 Tamil Nadu. Price It’s Harn ess man ufact urer is Vist eon (Che nnai) Willi ng to pay same price as PVC price .: 91225181971 -74 Mobile: 98210 25446 Fax: 9122 5175037 Ford India Ltd. 1) Quality 2) Price 3) Timely delivery Wou ld like to cons ider local ly man ufact ure IR Cabl esPr esent ly usin g Rou nd Cabl es 5. Tel. Just in time delivery 2. Price of PVC 1.: 3379 Fax: 411453855 Poolo Ravicino Head Commercial (Fiat Group) Aware about Irradiat ed Cables. (Harness Manufac turer) Godrej Soaps Adminis trative Building . Sylea Automot ive India Ltd.
0 120.5 6.795 0.30 1.8 +_ 0.5 9.41 348 x 0.132 Current Rating (at 40 degree Centigrade Ambient) (amp) 96 133 174 348 423 570 570 Note : Rope stranded conductor construction shall be adopted from cable sizes 10 sq mm and above.40 1.05 1.30 1. 2.95 0.0 150.50 1.3 Minimum Wall Thickness Insulation mm 0.80 Cable Dia (D) mm 7.1 +_ 0.4 +_ 0.8 6.70 0.mm 10.5 21.0 70. x Single wire dia (max.50 2.5 12.9 +_ 0.20 1. D>10mm = 4 x D Sl.51 589 x 0.210 0. 5.41 126 x 0.0 25. 4.35 Sheath mm 0.30 1.0 16.9 14.20 2.95 1.) (mm dia) 80 x 0. 7.85 1.51 Conductor dia mm 1.85 0. 4.8 +_ 0.0 +_ 0.45 Total mm 1.51 741 x 0. .3 +_ 0. 6.24 0.2 5.ANNEXURE 3 3.0 Wire No. 3.5 17. No.5 DC Resistance at 20 degree Centigrade ohm/km 1.95 1.41 196 x 0.80 0.1 Technical Particulars of Cables for Working Voltage upto & including 4 KV range Temperature Range : 40 degree Centigrade to 120 degree Centigrade Minimum Bending Radius: D<10mm = 3 x D. Nominal Cross Section Sq.5 11.277 0.162 0.15 1.5 23.0 95.8 11.70 2.51 468 x 0.5 18.80 2.
2 COMPARISON OF CROSS LINKING BETWEEN IRRADIATION AND CHEMICAL METHOD Description Method Irradiation EB Method High Energy Accelerator or Radio Isotope Application LDPE FRLDPE(Horizontal) FRLDPE HDPE FRHDPE(Horizontal) Rubber PVC Fluoro-Polymer X X X X X Chemical Cross-link Additive CV Method Heat Source (Steam.3. Nitrogen or Infrared) Extrusion Shelf life of Compound Easy Excellent Difficult Good .
9 >35 125 579 Passed 169 3061 11850 62 15 <50 31 >200 1365 Two Layers Chemically Cross-linked 29.3 Comparative Report on EB versus Chemical Cross linked Elastomers Tests Reduce size (OD) (1x150 sq.3 15-18 90 378 Failed 64 1482 620 80 20 1000 26 100 1970 .) (Arrhenious Plot) Continuous Operating Temperature (Degree Centigrade) Current Rating (max) (Amp) Cold Bend at 65 Degree Centigrade Ruggedness Dynamic Cut Through (Kg) Crush Resistance (Kg) (Kg to cause failure) Scrape Abrasion (nos.Performance High Frequency Deformation Appearance Excellent Excellent Excellent Sophisticated & Relatively Expensive Not Suitable Excellent Not so good Rather simple & moderate cost Equipment needed for cross linking process 3. of scrapes to failure) Minimum Bending Radii (mm) (flexibility) Oil Resistance (60 Degree Centigrade Diesel Oil ) (% swell) Acid Gas Generation (ppm) (ppm in one mg of compound burnt) Limiting Oxygen Index Nuclear Radiation Resistance (Mrad) Weight of Cable kg/km EB: CV: Electron Beam Chemical cross-linked Elastomers Two Layers EB Cross linked 21.) (No.mm) Life of Cable (Yrs.
Low Toxic.4 Electron Beam (EB) Cross Linking : The cross linking of polymers with Electron Beam is an innovative process which improves the life of cable significantly compared to the conventional chemically cross linked cables. Properties – All features built in one : High Withstand Temperature (Better Temperature Properties) High Current Ratings – Operating Temperature upto 230 Degree Centigrade Special Polymers to cover Wide Temperature range from –65 Degree Centigrade to +230 Degree Centigrade No Risk of Deformation above Short Circuit Temperatures Excellent Electrical Arc Track Resistance Rugged Mechanical Properties – Superior Abrasion / Scrapes & Cut thru’ Resistance Outstanding Fluid Resistance – Resistant to variety of Reactive Chemicals.(V→ Vulcanisation for outside rubber jacket) 3. Low Smoke. Oils and Solvents Resistant to Ultra Violent (UV) Rays & Impermeable to Moisture High-tech Polymer – Fire Resistant. Zero Halogen Emission Compact Design Low Insulation / Sheath Wall Thickness Space Saving Lighter in Weight Flexible – Lower Bending Radii High Nuclear Radiation Resistant No Environmental Hazard .
Annexure-4.1 PRODUCT LIFE CYCLE (PLC) Sales curve Growth Introduction O Negative Maturity Decline O Profit curve Brief back-up: Note: Low business value/volume (Negative profitability) during stage of introduction .
depending on their relative “Degree of centralisation” (DOC) of the DMUs. Detailed explanation : Stage 1 : Introduction : When any new product or service is introduced in any market. that the profit curve is negative. Depending on the technical complexity and new technological status of Irradiated Cables. in this stage. which are currently available. customers. a lot of effort. marketing support are needed. prospective end buyers-users. further sub segmented as : . dealers. Since “Resistance to change” is high amongst many technical commercial personnel. Stage of maturity: Growth rate falls off Reasonably stable business value. acceptance period will vary from party to party. to convert the Decision Making Unit members (DMUs) of prospective firms through the stages of : Awareness Interest (Internal) Evaluation relevant Decision Adoption (Long term) Trial Usually. volume. Strong production and distribution are needed to “Make money in this phase”. Time for new product introduction. initial acceptance is usually very low – due to low level of awareness amongst targetted. time and energy has to be invested by the marketing organisation (In this case M/s CG). who are usually involved with standard substitutes. Stage of decline: Better competitive product or substitute availability.Strong R&D. it has been studied (Based on several past experiences). (Please see PLC curve). Stage of growth: Usually very sharp if product/service is acceptable to prospects. Strong marketing support is needed.
dealers Developmental Marketing to identify and convert new prospects and dealers. Decline : Due to changing needs of customers and prospects. need to be constantly pro active and aggressive so that barriers to competitive entry are always ensured. a maturity stage is reached during which the rate of growth may be low. Stage 3 : Maturity : After a considerable period of time. more acceptable substitutes may be available. rapid growth is possible. Stage 4 : To sum up : . which may take years if not decades. over a period of time other. but sales value and volume as well as profit before tax (PBT) have reached a certain plateau. at least few of them are converted to the status of customers. production and distribution should take precedence over all other in company functional activities. therefore. Add : (Note : * The above mentioned first seven Indicators were found out by Michigan Survey Research Centre in 1967 when they had undertaken a detailed Consultancy assignment for General Electric. During this phase. All vendors. Sales volume. Level of customer satisfaction. This is possible by adopting a mix of the following strategic approach: Maintenance Marketing with existing customers. Ahmedabad). Market share and penetration (%) Profit Before Tax (PBT) Corporate Image and Goodwill Employee morale and satisfaction Level of rapport with the concerned political powers. competitive onslaught. USA. Planned.- Highly Centralised (HC) Mixed Decentralised (MDC) Highly Decentralised (HDC) Hence. based on his Doctoral dissertation at IIM. Stage 2 : Growth : Once new prospects. (Dr PKG added the eighth dimension. changes in technical and technological complexity etc. systematic marketing is essential to ensure and implement Maintenance Marketing in so far as the following “Corporate health indicators” are concerned: Sales value. This is the time to make profits. vendor company’s Management needs to exercise patience and perseverance. keeping in constant view regular competitive inroads. in this stage.
which always considers the SWOT system ie : Strengths. systematic and scientific Marketing Management approach.2 Integration: Business Policy – Strategy – Structure POLICY Environmental Scanning (O. as well as weaknesses of the vendor organisation.T) Top Management Internal analysis Strengths & Weaknesses (S. Opportunities in terms of relevant market demand and potential Threats offered by direct. as well as indirect competitors – over a period of time. controlled. organised. To ensure the above.W) Political Economic Social Global Business Local business Functional (Departmen-tal) Local Mission Vision Focus: Goals Objectives Peter Drucker Global Local Global Global Local (Fit) Global Local Global Local Global Local Technology Environment Other “PESTLE” parameters . Annexure-4. regular. executed and implemented like any military level strategic approach. This requires a continuous. a highly proactive and effective marketing organisation needs to be developed so that market’s “Needs and wants” are identified and then translated in reality.A new product/service launch needs to be planned.
local .Buy-out/exit . 11.Alternatives [How to optimize?] . Kenwood Maharaja Kenstar Hitachi Global. 15. IFB Western Molex India Ltd.Mergers+ acquisitions . Names of the organisations BPL Salora International LG Sony Samsung Whirlpool Onida Videocon Godrej Appliances Ltd. Electronic Research Ltd. 5. 12.What business am I in? Overall Policy guidelines STRATEGY What business do I want to be in? Top/Middle Management Strategic options How (Routes) to reach Goals → Objectives? Few examples Scope Fit Stretch Concept . Blue Star Kalyani Sharp India Ltd. 6. 9. 4. 20. 3. 18.Leveraging . 10. 17. 8. 16.Crafting strategy Joint ventures or entry strategy STRUCTURE Middle/operational Management Structural aspects: →Functional optimisation ANNEXURE 5 LIST OF THE PROSPECTIVE PARTIES IN WHITE GOODS SECTOR (ALL INDIA) Sr Nos 1. Finolex Cables Ltd. 14. 2. 13. 7. 19.
30. 40. 31.21. 27. 32. 38. 39. 22. 36. 35. 37. Note: Oscar National Panasonic Sansui Thompson Akai Orpat Wipro Intel (Computer) Santosh Godrej Kelvinator Sansui WEBEL Nicco AIWA Sonodyne Philips Voltas Electrolux Greendig Usha Crompton Greaves Bajaj Above is a method of “Prospecting and Lead Generation”. to start with?) ANNEXURE 6 LONG TERM BUSINESS DEVELOPMENT PROJECT WITH M/S NCCL AN INTEGRATED PROPOSAL [PROJECT : IRRADIATED CABLES – WHITE GOODS SECTOR] . 34. 28. 26. (How to identify probable prospective buyers and users – in India. 33. 42. 29. 25. 41. 23. 24.
this product needs to be tailor made and customised. Hence. this is a fabricated industrial product. which needs to be tailor made for different end usages like : Indian railways Ships Indian fighter planes General Electrical Cables & Wires for factories/automobiles IRC for the White Goods sector etc. during and after : High (Specially at the stage of initiation) Frequency of purchase : Medium Consumption pattern = 1 Product life : Low (High product life) .Conceptual background :[Based on NCCL Management’s “Myopic” feedback]*2 A Rs 40 crores investment project has been “On” from end 2001 onwards for manufacturing various types of Irradiated Cables (IRC). End usagewise. whose overall “Product Characteristics”* will be as follows : Unit value : Medium to high Purchase significance to the buyers : Medium to high Effort in purchasing by buyers users : Medium to high Technical complexity : High Technological component : High Need for service before.
* *2 These product characteristics are as per the qualitative module propagated by Dr Gordon E To readers: How will you/your group organize? Business Policy guidelines? ↓ Strategic Route(s) ↓ Plan for implementation (PFI) Miracle A total re-thinking (Scenario Building) is called for. AMICHE. Varieties and ways in which the product gives satisfaction : Major emphasis is on technical specifications (As also source of supply). ANNEXURE-7 CG’S PROPOSED ORGANISATIONAL STRUCTURE FOR THIS PROJECT STRUCTURE DR SHYAM. AHMEDABAD 1973-1977) CHIEF OF PROJECTS .FELLOW IN MANAGEMENT (IIM. B CH E.
2003 Cost centers Functional Two Engineers (Cum MBAs) II] Back up staff One Assistant One Accountant Two Peons One Receptionist cum Clerk One Driver Sub-total = III] IV] Stationery & Communication Furnished office space 0.40 lakhs 8.7.60 lakhs 0.Inflation & other costs.60 lakhs 0. I] 1./year Remarks .80 lakhs 0.8.2002 – 31.Yearly targets .00 lakhs 2.Nos. 5 lakhs [Salary + incentives) First year only Rs.60 lakhs 0.ONE ASSISTANT FUNCTIONAL (TWO PROFESSIONAL BUSINESS DEVELOPERS) ELECTRICAL/ELECTRONIC ENGINEERS CUM MBA(S) ONE ACCOUNTANT (TROUBLE SHOOTER) BACK UP STAFF TWO PEONS ONE RECEPTIONIST CUM CLERK TOTAL : 8 PERSONS AND 1 DRIVER YEARLY FINANCIAL IMPLICATONS(OF CG FROM NCCL’S MANAGEMENT) First year : Sr.50 lakhs Note This estimation will be governed in future by .
000/day/head) B/L Rs . marketing research is expected to be over and contractual agreement signed and CG’s engineers have been fully trained in IRC. Payment terms : (From NCCL to CG) By end of every month. (Rupees thirty seven lakhs only) * Two months brokerage. .00 lakhs Dr Shyam’s travels Rs 3.00 lakhs Sub-total = VI] VII] Entertainment expenses For Dr Shyam (Overall Coordinator) Total = VIII] Contingency expenses * (Ex: In city travels) Grand total = 3.ft.40 lakhs 23.(Rs 50/sq. for example.00 lakhs 8. proportionate monthly expenses have to be reimbursed.. in a sophisticated working environment. has to be given to find a suitable and relevant office space. say. Look after new prospects. “Some” advance (To be adjusted) will be needed initially.90 lakhs 2.4 lakhs travels Rs 2./month) V] All India train travels.00 lakhs To be accounted for yearly. 500 sq.2002. boarding & lodging (Rs 1.ft.10 lakhs 37. Note : By 15.00 lakhs Assumptions :At least 10-15 all India parties – to start with (12 visits/year/party) 120-180 visits per year for. where clients can be looked after on a regular basis.00 lakhs 184.108.40.206 lakhs 3. 10. 3 days each ie 360-540 mandays.
COST BENEFIT ANALYSIS [FROM NCCL’S MANAGEMENT VIEWPOINT] White Goods sector (To start with) Expected revenue (Rs /year) Expected gross margin (Av.50 .: 40%) Expected expenses [Rs /year] (Please see earlier) For CG (Business Development Agency) Ratio of gross margin to Business Development expenses (%) 0.37 crores 5 crores * 2 crores 18.
63 crores (81. As and when needed. R&D and Finance to discuss. PROPOSED ACTIVITY FLOW AND SEQUENCE FOR BUSINESS DEVELOPMENT SR.Handling of objections . CG With NCCL’s support iii) Actual market development and emphasis on Trial runs Try to be sole (Proprietary) supplier Organise regular. has been * This figure will be fully detailed (Quantified) ONLY AFTER the proposed descriptive research completed and the findings have been analysed. as a team CG CG & NCCL.PBT for NCCL (Rs /year : 2002-2003) 1. samples. Production. latter for all technical back up and support. literature etc.50%) Compare : With NCCL’s own set up. i) ii) CONCEPTUAL STEPS Clear target fixation : yearly plans Start party wise market development Plans All internal coordination MODUS OPERANDI CG & NCCL’s Management.NOS. NCCL’s technical and commercial staff have to be involved. systematic market feedback Coordinate to ensure :. expected : Market penetration Quality of integrated service Quality of customer satisfaction Achievement of pre decided targets for sales revenue & PBT (Profit Before Tax).
as needed].) Peter Drucker: The Practice of Management: 1955 * What business are we in at present? * What business should we be in? In line with the above. What should be the Business Policy guidelines of NCCL’s Top Management. according to Hambrick and Fredrickson.K. clearly defined Objectives should be formulated as Basic Policy guidelines. Vision).Close sales All regular follow up. Prof. Have these been considered at all? Be specific. where concepts propagated by international level scholars (Please see below) need to be considered? Prof. feedback and replanning [Monthly feedback] Coordinate for all needed ASS . Then only. A hint: Alongwith environmental scanning.partywise Optimum customer satisfaction (Long term Customer Relationship Management) 5 year period for business establishment. which should have been considered by NCCL’s Top Management? Please identify clearly the five elements that make up any strategy. (i) Arenas: Where will we be active? Identify. what should be the Strategic Route(s).(Dr. Using this case study as a background.iv) v) vi) .Prahlad’s concept of “Core Competency” also needs to be kept inmind. as also internal assessment (SWOT). the Goals of the organization as a whole (Mission. You are welcome to use any other relevant concepts like Figure-1 (Enclosed). Staff CG [Consult NCCL. . any Top Management should arrive at. CG to coordinate both with each client and internally with NCCL’s personnel. Third basic concept can be the role of: Business Scope – Business Fit – Business Stretch. (Group-2) 2. very clearly. CG with NCCL Note : Project assignments: (Group-1) 1. C.Sales presentations .
. through acquisitions.I. Suggest specific growth strategies.(s) will you recommend for? CG NCCL (IRC project) forms.F. based on available resources as well as limitations. Scenario Building: If you / your team had been given a totally free hand. alliances or internal development. communication.(ii) (iii) (iv) (v) Vehicles: How will we get their? For example. or any other Strategic Route? [CBA] Differentiators: Basic question: How will we win in the marker place? Please refer to Michael Porter’s 3 Competitive Strategies.8.S. if any? P. (Group-5) 5. how will you go about for this specific step by step? Start with concepts. alongwith logic. What O. Organisation Structure(s) [O.]. Will you like to go in for (If called for) Exit Strategies for say present (Highly competitive) cable industry set-up of M/s. Any re-thinking on? Models to be used: Which “Concepts” should be used? Why? How? Process of planning and execution (Plan for implementation) Be specific. Economic Logic: Basic question: How will we obtain our returns? Please determine a comprehensive strategic plan. project.9) Combined session 7.S. Staging: Basic question: What will be our speed and sequence of Moves? This denotes plan for implementation. models you will have to use and giving logic thereof. NCCL? Why? How? (Groups 7. need to be clearly highlighted) (Group-4) 4. (Group-6) 6. structural planning methods etc. How? Why? (Detailed structuring.: State clearly. authority-responsibility patterns. (Group-3) 3.
7) Sub-group one: Planners and later “Audit” Sub-group two: Deliverers Sub-group three: Plan for implementation (20 minutes each) . Structuring of this analysis (No. where groups 7.[Total (For point number-7) time for presentation: 60 minutes]. who will function (As usual) in groups.9 should combine their presentations. Specific. brevity and. (Except for assignment-7. to the point deliberations will be expected from all participants.8.
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