CASE STUDY

CASE STUDY ON
AUTOMOBILE COMPANY

(ASHOK LEYLAND)

GROUP MEMBERS;

Pema Tobgay (108202) - Leader

Shedarth Pradhan(108318)

Sonam Dorji (108633)

Sonam Peldon (107258)

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Abstract
Pema Tobgay (108202)

“Improving daily work is even more important than doing daily work” (Gene Kim) with this
Ashok Leyland and Tata Motors were two dominant companies in the Indian goods and
passenger carrier market. However, during the year 2000 when global players (MAN, AMW,
Volvo, Benz, Mazda, and many more) registered their presence through a joint venture, their
presence has affected the sales performance of Ashok Leyland, leading to rising issues like loss
of good employees, loss of sales figures, technological and innovation competition, etc. Thus,
considering the situation company appointed a new CEO Mr. X to handle the situation.

As a CEO he took the responsibility of analyzing the problem and launched a three-tiered
examination to address the difficulties and came up with solutions at all three levels i.e.
employee, group, and organization. Since then with the company being led by himself company
was again on track to compete efficiently with new global players and regained its status as the
top 2 company in India.

The goal of this study is to see challenges and opportunities hidden in those for the company.
Based on the case of an automobile company, three level of influence is used for the analysis
and we have provided some recommendation to overcome those issues.

Challenges and Opportunities

Shedarth Pradhan(108318)

The company is monopolistic and is run by two persons. The Ashok Leyland Company started
to fall down every ¼ as most of the specialized employees try to leave the company and try to
join the global company.

So there are some challenges faced by the company like as follows:

1) Loss of employees: because employees feel that the company has no room for growth
and they were dealing with a hostile or discriminating work environment.
2) Loss of scales figures: Sales performance is affected by a variety of aspects in the firm,
including marketing strategy, the product or service itself, management, customer
service, and the market. For instance, Ashok Leyland’s total commercial vehicle sales
fell 2% to 10,480 units in 2021 November from 10,656 units sold in 2020 November.
The medium and heavy commercial vehicles fell 10% and light commercial vehicles
declined 12% to 4,872 units in November 2021 and November 2020. Additionally, poor
working circumstances are one of the most crucial, yet often underestimated issues.
Employees must be pleased and comfortable in their work environments; otherwise,
productivity suffers, affecting your sales success.

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3) Innovative marketing practices: as the Bharat Benz, Ashok Leyland has also started
looking at niche segments in the trucking, with the feature of higher safety and greater
technology vehicles also gone up. However, because Ashok Leyland cannot price it
higher than its primary competitor Tata motor, it seeks to increase revenue by
undertaking most Tata vehicle models by large margins.

Opportunities hidden are:

1. Consumer segmentation: They must first establish consumer segments that share
common traits in order to comprehend your demand. Age, gender, place of residence,
educational level, occupation, and level of income are examples of "hard" variables,
while lifestyle, attitude, values, and purchase impulses are examples of "soft" variables.

2. Foreign market analysis: Exploring other countries may bring extra prospects when a
company operates in a mature or saturated market. For a variety of causes, including
differences in economic growth and local customs, markets in various nations grow at
different rates.

3. Direct competitions analysis: It is critical to examine supply in addition to demand and

purchasing scenarios. When evaluating prospects, it's critical to understand the existing
companies in the market where you're competing or planning to compete.

Critical analysis of identified issues in context to three levels of influence

Sonam Peldon (107258)

1. Individuals (Micro-Level)
At the individual level, it includes each individual person within an organization. Each person
behaves differently, which has an impact on group dynamics and the organization as a whole.
For example, when the Ashok Leyland Company was on its knees, it began to face the problem
of good employees leaving to join big corporations. This demonstrates the employees' attitude
and concern for the organization. They only want to work for the firm when things are going
well and leave when things aren't going well. Individual employee conduct like this will have a
negative impact on the organization's efficiency, productivity, innovation, and performance. On
the other hand, while it may be impractical for an organization to pursue each individual in order
to understand their behavior, it is the obligation of the company to understand workers' abilities
and learning, as well as their Values, Attitudes, and Job Satisfaction.

2. Groups (Meso-Level)
At the group level, it covers any groups inside an organization. To illustrate, Ashok Leyland
Company struggled with a lack of creative marketing tactics. This demonstrates that staff
contact is poor and that there is a lack of cooperation and coordination. This resulted in an

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inability to generate creative thoughts. According to research, collaborative problem solving

produces better results. When people have the support of a team behind them, they are more
inclined to take calculated risks that lead to creativity. So, it is the obligation of the
organization's management to investigate how the group members communicate with one
another? How do they function? The foundation of group behavior, power and politics, and
conflict and negotiation in an organization should therefore be framed properly.

3. Organizations (Macro-Level)
At the organizational level, it encompasses the organization as a whole. Individual and group
behavior is influenced by the organization, and the organization is influenced by individual and
group behavior. Similarly, as more companies entered the market, Ashok Leyland experienced
technical competition, new marketing strategies, and a reduction in sales performance. This
problem has impacted not just the corporation, but also the individual and group levels.
Individual employees must now modify their perspectives and attitudes in order to compete in
the global economy. Furthermore, group leaders must be more professional in group-related
tasks in order to develop a good team. For that reason, it is the job of managers to develop
adequate work design, rules and practices, and organizational structure.

Recommendation
Sonam Dorji (108633)

If I was in place of Mr. X the recommendation, I would give for the organization during such
crises is as follows:

Recommendation 1.

Looking in this case the issue is that when the global companies entered the market these two
companies could not compete with those experienced companies. Therefore, my
recommendation is to improve the quality and productivity of the product. If the product is
improved then the company can compete with the products of those global companies. The
extent to which consumers or users think the product or service meets their demands and
expectations is referred to as quality. The key dimensions of improving quality are as follows:

1. Performances: primary rating characteristics of a product.

2. Features: secondary characteristics like added features.
3. Conformance: the degree to which a product’s design or operational characteristics
follow pre-established standards, as measured by specifications or industry standards.
4. Durability: measuring the product’s life having both economic and technical
dimensions.
5. Services: helping the customers and ease of repair.
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Recommendation 2.

The second problem was that the good employees in Ashok Leyland and Tata Motors were
leaving the company and joining the global big companies. So, my recommendation would be to
make the good employees stay by following the examples below:

1. Responsibility: To demonstrate your faith in your employees, assign them tasks that will
allow them to flourish. Encourage them to broaden their horizons by acquiring new
skills. Make certain that there are several opportunities for further education.
2. Respect: At work, employees want to be appreciated and respected. As the saying goes,
people will forget what you said, but they will never forget how you made them feel.
3. Revenue sharing: Make a percentage of your employees' salary reliant on the
performance of the firm. This will align their interests with the firm's growth and profit
objectives, giving an internal drive for employees to remain with the company as it
grows. By making the fixed cost of payroll inherently more variable under changing
business conditions, you may make your organization strong and nimble while treating
your people extremely well.
4. Reward: In addition to monetary compensation, your employee incentives should cover
their emotional needs. Recognition in public, corporate and department parties, service
efforts, lunches with the CEO, branded clothing, handwritten notes, and other activities
may all contribute to the firm's good culture and serve as morale boosters.

Conclusion
Sonam Peldon (107258)
To conclude, Mr. X's approach to assessing Ashok Leyland's problem by commencing a three-
tier examination of organizational behavior was a smart one since the study of organizational
behavior gives information on how individuals act and perform at work. It aids in the
development of an understanding of the aspects that can motivate individuals, increase their
performance, and assist businesses in creating a strong and trustworthy relationship with their
employees. Furthermore, when Mr. X conducted his study at all three levels, he was able to
comprehend individual behavior such as learning, perception, belief, and attitude. Group
dynamics, performance, leadership, and power and politics management were all known at the
group level, and the link between the organization and its environment was understood at the
organizational level. As a result, he was able to provide solutions at each level, making the
process of solving the problem easier, and the firm was able to go back on track.

THANK YOU

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