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India Yamaha Motor Pvt. Ltd.

Submitted by:
PGP/14/260 NITESH KUMAR GUPTA PGP/14/290 RAHUL MITTAL PGP/14/280 MAHTAAB KAJLA PGP/14/274 HEERAL BHATIA PGP/14/315 VISHAD DUBEY

Group IV
PGP/14/287 PRACHI CHAWLA PGP/14/313 VINNY ARYA

AGENDA

Strategy

Technology

Structural Elements

Indian Institute of Management, Kozhikode

Strategy STRATEGY
It is defined as the determination of the basic long term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals

Corporate level strategy

Business level strategy

Globally diversified business lines Yamaha Motors, Music, Marine etc.

India primary business units Yamaha Motors and Yamaha India

Indian Institute of Management, Kozhikode

Strategic Dimensions of Yamaha

INNOVATION STRATEGY
Focused on customer service - YTA active in 22 nations which educates dealers to provide best customer service Performance excellence- RD 350 , Yamahas greatest offering to countrys performance enthusiasts Proactive design and Innovative technology - Improvement in fuel efficiency by developing FI technologies

Indian Institute of Management, Kozhikode

Strategic Dimensions of Yamaha

MARKETING DIFFERENTIATION STRATEGY


Exclusive and trusted brand renowned for marketing and manufacturing of products Experience in the Market - Yamaha made its initial foray into India in 1985. Effective Advertising Capability Celebrities endorsing yamaha products Good reputation among customers

Indian Institute of Management, Kozhikode

Strategic Dimensions of Yamaha

BREADTH STRATEGY
Operations across the world Extensive range of products like motorcycles, scooters, electrically power assisted bicycles, boats, sail boats, personal watercrafts, pools, utility boats, fishing boats, outboard motors, diesel engines, 4-wheel ATVs, side-by-side vehicles, racing karts, golf cars etc.

Indian Institute of Management, Kozhikode

Strategic Dimensions of Yamaha

COST CONTROL STRATEGY


Focused on decreasing expenses Targeting a reduction of more than 10% of total expenses Urgent cost reduction Project to cut manufacturing costs Integrating design, manufacturing and procurement functions

Indian Institute of Management, Kozhikode

Yamaha as Prospectors
Exploit new markets and market opportunities- entering into racing segment Innovative technology High-quality and high-performance- Fazer series FZ-16 ,FZ-S Light weight and compactness New technologies Small engine technology and FRP processing technology Continuously innovating business processes for creating value and knowledge across customers

Indian Institute of Management, Kozhikode

Porters Competitive Strategy

Differentiation Strategy
Gearless scooter segment Environment friendly engines

Cost leadership Strategy


Series of affordably priced models

Focus strategy

Venturing into rural market Racing segment

Improvement in fuel efficiency

Increase the ratio of unit sales of affordably priced modals to total annual motorcycles sales

Indian Institute of Management, Kozhikode

AGENDA

Strategy

Technology

Structural Elements

Indian Institute of Management, Kozhikode

Technology
Information, Equipment, Techniques and Processes required to transform inputs to outputs Industry & Size of Company impacts the choice of technology Technology has a bearing on: Complexity Formalization Centralization Technology Structure Paradigms Perrows Paradigm Woodwards Research Thompsons Contribution :

Indian Institute of Management, Kozhikode

Technology

PERROWS CLASSIFICATION
Low Task Variability: High Division of Labor, High Differentiation, Highly Repetitive duties High Problem Analyzability: More Unskilled Workers, SOPs in place Routine Technology: Assembly Line Yamaha Well Structured organization - Rigidity High formalization Standardized coordination and control Centralized decision making Wide span of control :

Indian Institute of Management, Kozhikode

Technology

WOODWARDS FRAMEWORK
Established a link between technology, structure and effectiveness Mass Production: used for large batches of bikes Moderate/High Differentiation due to technical complexity High Division of labor Cost optimization Large Proportion of Unskilled Workers Repetitive job High Formalization Standard procedures to react to any situation in the assembly line Centralized decision making Moderate with some authority delegated to supervisors :

Indian Institute of Management, Kozhikode

Technology

WOODWARDS RESEARCH
No of vertical levels=5 Span of Control =28 to 30 workers High level of planning High Complexity

Indian Institute of Management, Kozhikode

Technology

THOMPSONS CLASSIFICATION
Long linked Technology Sequentially interdependent tasks Repetitive steps High Coordination required Backward and forward integration

Indian Institute of Management, Kozhikode

Technology

YAMAHAS ASSEMBLY LINE


Semi-automatic assembly line 1200 bikes produced daily On an average, 4 types of bikes produced Finished raw materials procured Consists of 16-17 stages Sales Purchase Storage Assembly Line Organized into 4 teams a. 1st team works on conveyor line b. 2nd , 3rd and 4th team carry raw materials from storage department :

Indian Institute of Management, Kozhikode

AGENDA

Strategy

Technology

Structural Elements

Indian Institute of Management, Kozhikode

Structural Elements

Plants in India.

Plants: Surajpur (Noida), Faridabad

Total No. Of Employees : 3000 approx

Indian Institute of Management, Kozhikode

Divisions and departments

ACCOUNTS

Corporate Finance, Time Shop, Public Dealings, Employee Compensation

SERVICES

Sales and Marketing, Warranty, Health and Insurance

R&D

Indian Institute of Management, Kozhikode

Divisions and departments

Recruitment, Training, Grievance Redressal, Appraisal etc

HR

Stores, Purchases, Production (Engines and Small Parts), Assembly Line, Quality Check

PRODUCT PLANNING MATERIAL CONTROL

MANUFACTURING ENGINEERING

Indian Institute of Management, Kozhikode

Hierarchy

MANAGING DIRECTOR GROUP HEAD DIVISION HEAD DEPARTMENT HEAD

SENIOR MANAGER

MANAGER

ASSISTANT MANAGER

SUPERVISOR

Indian Institute of Management, Kozhikode

Hierarchy

Span of Control- Varies as per

department

Undefined Job Description at higher levels

Clear Rule Book to be abided by all employees

Indian Institute of Management, Kozhikode

Centralisation

Complexity

Formalisation

Indian Institute of Management, Kozhikode

Complexity

Vertical Differentiation

Moderate Lower interaction levels across hierarchies High Differentiation at same levels across departments

Horizontal Differentiation

Spatial Differentiation

Very High Accounted to varying educational levels and compensations


Indian Institute of Management, Kozhikode

FORMALISATION
Managerial Level- Low degree of formalisation Operational Level- High level of formalisation on the assembly line

CENTRALISATION
Highly decentralised.

Indian Institute of Management, Kozhikode

Indian Institute of Management, Kozhikode

Q&A

Indian Institute of Management, Kozhikode

THANK YOU

Indian Institute of Management, Kozhikode