STRATEGIC MANAGEMENT- II

Mahindra

Submitted to:
PROF. SAIKAT BANERJEE
Submitted by Group no.- 1
NAME ENROLLMENT ID
Saurav Satapathy 21A1HP607
Shrey Gangwar 21A3HP602
Shaily Aggarwal 21A1HP016
Shivam Agrawal 21A1HP118
Sriniketh Murali
Yammanuru 21A1HP090
Setu Chawla 21A1HP055
 MAHINDRA

ABOUT THE COMPANY

Mahindra & Mahindra Limited (M&M) is an Indian multinational automotive manufacturing corporation
headquartered in Mumbai. It was established in 1945 as Mahindra & Muhammad and later renamed as
Mahindra & Mahindra. Part of the Mahindra Group, M&M is one of the largest vehicle manufacturers by
production in India.

Hierarchical Organizational Structure

A direct chain of command running from the top of the organization to the bottom is present in a hierarchical
organizational structure. All critical decisions are made by senior management, which is subsequently
communicated to lower levels of management. If a person at the bottom of the organizational pyramid needs to
make a decision, they must first convey their request up the chain of command for permission before receiving
a response with their choice. When a few products are sold in large quantities, a hierarchical structure works
effectively so that strict control over the design, quality, production, and distribution of goods can be
maintained.

Advantages of the Hierarchical Structure

Control Orientation
The hierarchical structure works well when there are only a few essential products being offered or when a
specific marketing message needs to be communicated.
Clear reporting
It is simple to ascertain who has the authority to make a choice because power is so centrally located.
Clearly defined path for career advancement
The several chains of command are easier for employees to identify in a company with a hierarchical structure.
This enables it to understand how they can progress over time inside the organization.
The likelihood of landing one of these advanced roles is higher for those with more experience. Employees may
find the prospect of promotion intriguing, which will probably result in increased morale, better performance,
and ultimately higher production for the business.
Specialization
Employees are more likely to hold specialized positions that give them the opportunity to become in-depth
experts. This implies that a business can have several centers where best practices are applied, provided their
expertise is leveraged properly.
Disadvantages of the Hierarchical Structure
Implementing a hierarchical structure has many advantages, but there might also be disadvantages to this
organizational strategy. The following are drawbacks of a hierarchical structure:
Slow decision-making and action
Increased bureaucracy may hinder innovation or significant improvements.
Communication problems
Employees who are divided into many divisions and levels may not communicate well. This is due to the fact
that they will need to communicate with many more supervisors than just one executive.
Low level of participation
May give lower-level workers the impression that they have less ownership and are unable to voice their ideas
for the business.

MAHINDRA ORGANISATION STRUCTURE:

The organization's function-oriented structure has been replaced with the process and team-oriented strategic
business units because of developments in technology and time. The assembly line system that had been in place
was transformed into a continuous manufacturing system, which was unique to the Indian vehicle industry. It was
carried out to boost the system's effectiveness. At Mahindra, they value respect for one another and strive to break
beyond conventional wisdom as a team.
Mahindra & Mahindra has a hierarchical organizational structure, with managers and directors in charge of
businesses all around the world. The development of mergers with rival businesses is one change required for
expansion. The organizational chart for several departments, from the president to the general manager, is shown
below-
Following the GM, the size of the team varies depending on the nature of the work and the volume of parts
that the various commodities handle. Following the GM, a typical structure is as follows:

CHANGE IN STRATEGY

For the group, organizational restructuring posed the greatest challenge keeping in mind the changing dynamics
in the business especially the tractor and automotive division. In the last three years, the emphasis was
development of the long-term strategy and fixing clear business goals. To achieve these objectives the company
began a full reassessment of organization and management structure. The outcome was, clear roles and
responsibilities were identified, and the competency required for each role was mapped. The officers went
through individual assessments of competencies against the requirement of each role. External consultants as
well as internal assessors ran assessment centers, and everyone was then placed based on competency and role
fitment.
A complete technological and product roadmap for the next generation of electric vehicles, which the company
internally refers to as EV 2.0, has been released by Mahindra Electric, a manufacturer of electric vehicles (EV)
and a subsidiary of the Mahindra Group.
Electric mobility is about to enter the mainstream as worries about clean air, urban congestion, and rising fuel
import costs grow. Recognizing this, the Indian government is aggressively working to hasten the adoption of
electric vehicles for shared and private transportation.
The Mahindra Group company Mahindra Electric, which produces electric vehicles (EVs), has outlined a
growth strategy for its electric vehicle business.
Through its new Farming-as-a-Service (FaaS) business, Krish-e, Mahindra & Mahindra Limited (M&M) hopes
to advance farm mechanization in India as part of a plan to diversify its Farm Equipment Sector (FES) segment
beyond tractors.
More than 100 Krish-e centers have been created throughout 16 States since Krish-activities e's began in 2020.
These centers operate through Mahindra and Swaraj dealers and offer services throughout the crop cycle.
The Mahindra Group has resumed restructuring in order to divide into three parts its flagship vehicle industry,
which generates 55% of the group's income.
According to those familiar with the proposal, the exercise, which is still in its early stages, will involve
dividing the passenger vehicle (PV), tractor, and electric vehicle (EV) businesses into three independent entities
through a demerger procedure. These are currently classified as different divisions under Mahindra &
Mahindra.

BUSINESS STRATEGY OF MAHINDRA

Cost leadership

In cost leadership, Mahindra & Mahindra can set out to become the low cost producer in the Auto & Truck
Manufacturers industry. How it can become cost leader varies based on the Consumer Cyclical industry forces
and structure. In pursuing cost leadership strategy, Mahindra & Mahindra can assess – pursuit of economies of
scale, proprietary technology, supply chain management options, diversification of suppliers, preferential access
to raw materials and other factors.

Differentiation

Mahindra & Mahindra can also pursue differentiation strategy based on the Auto & Truck Manufacturers
industry forces. In a differentiation strategy Mahindra & Mahindra can seek to be unique in the Auto & Truck
Manufacturers industry by providing a value proposition that is cherished by customers. Mahindra & Mahindra
can select one or more attributes in terms of products and services that customers in the Auto & Truck
Manufacturers values most. The goal is to seek premium price because of differentiation and uniqueness of the
offerings. Industry analysis of Auto & Truck Manufacturers using Porter Five Forces can help Mahindra &
Mahindra to avoid spaces that are already over populated by the competitors.

Focus Strategy

The generic strategy of Focus rests on the choice of competitive scope within the Auto & Truck Manufacturers
industry. Mahindra & Mahindra can select a segment or group of segment and tailor its strategy to only serve it.
Most organization follows one variant of focus strategy in real world. In cost focus a Mahindra & Mahindra can
seek a cost advantage in its choses segment in Consumer Cyclical sector.
In Differentiation strategy Mahindra & Mahindra can differentiate itself in a target segment in the Consumer
Cyclical sector. Both variants of the focus strategy rest on differences between a Mahindra & Mahindra ’s target
segment and other segments in the Auto & Truck Manufacturers industry.

RECENT STRATEGY DECISION

The Volkswagen Group and Mahindra & Mahindra Ltd. (M&M) today announced they intend to expand their
cooperation. Both companies signed a Term Sheet on the supply of MEB electric components for Mahindra’s
new, purpose-built electric platform INGLO, deepening the Partnering Agreement from earlier this year.
The cooperation intends to have a volume of more than one million units over lifetime and includes the
equipment of five all-electric SUVs with MEB components.
In addition, the two companies will explore further opportunities for collaboration, opening the perspective
towards a broader strategic alliance to accelerate the electrification of the Indian automotive market.
The company also showcased five e-SUVs under these new brands: the XUV.e8, XUV.e9, BE.05, BE.07 and
BE.09. Mahindra also revealed the launch dates for its new e-SUVs and said the first to arrive would be the
XUV.e8 in December 2024, followed by the XUV.e9 in April 2025.
On the other hand, its BE branded vehicle BE.05 will debut in October 2025, while the BE.07 is slated for
October 2026