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) SWOT Analysis of Patanjali Ayurveda Ltd

Patanjali Ayurveda is the brainchild of Baba Ramdev who is a renowned practitioner of Yoga
and the science of Ayurveda in India.
The company manufactures its products using the principles of Ayurveda with herbs,
minerals and natural products as its main raw materials. The main intention of the Patanjali
Ayurveda’s inception was establishing the science of Ayurveda in synergy with the latest
technology and ancient Vedic wisdom.
The company has diversified into having a wide range of products within the foods and
beverages, personal care products, cleaning agents, and ayurvedic medicines.
Some of the most popular products of the company include Patanjali Dant Kanti, Kesh Kanti
and Patanjali dairy products such as ghee, cow’s milk and curd. Patanjali also has a wide
range of natural health supplements like of tulsi, ashwagandha, giloyi, neem and also
started an entire range of healthy superfoods like wheat-based noodles, biscuits,
vermicelli as well.

Strengths.
1. Association with Baba Ramdev
Baba Ramdev is the brainchild behind the company and also serves as the brand
ambassador and spokesperson for the company. Baba Ramdev has a cult following in India
due to his status as a yoga guru and an expert of Ayurveda.
Baba Ramdev has millions of followers in India who also form a large customer base for the
products of Patanjali Ayurveda Limited.

2. Strong Sense of Patriotism


Patanjali has linked itself strongly with Prime Minister Narendra Modi’s “Made in India”
campaign.
Patanjali’s positioning within the minds of consumers is of a natural Indian brand and
projects a sense of patriotism in its advertising and marketing campaigns. This has helped
script Patanjali’s growth story and enable the brand to become a household name.
3. Ayurveda and Herbal Brand
Nowadays there is a rise in demand for organic and herbal products among consumers. This
is due to the side-effects of chemicals and other compounds in products.
Ayurvedic treatments, products and medicines are known to have no side-effects. All raw
materials used by Patanjali’s products are herbal and does not contain any chemicals or
preservatives.

4. Penetration Pricing
The products of Patanjali are generally priced about 20-30 per cent lower than other
competitive brands in the market. Other popular brands are unable to compete with
Patanjali by prices, and this has made Patanjali popular among the lower income and
middle-class income groups in India.

5. Keeping up with the latest trends


Patanjali has entirely adopted to modern technology. Patanjali has its own e-commerce
platform and also sells its products through online platforms such as Amazon, Big Basket
and other major retail platforms. It also has the latest manufacturing and sourcing techniques
to manufacture its products and procure its raw materials.

Weaknesses.

1. Over dependence on Baba Ramdev


The Patanjali brand is strongly synonymous with Baba Ramdev, and Patanjali’s growth story
has been linked to the popularity of Baba Ramdev. Baba Ramdev has political affiliations,
and any act of a political vendetta against Baba Ramdev by any government agency can
directly impact the Patanjali brand.

2. Low Number of Manufacturing Plants


Patanjali has a limited number of manufacturing units in Haridwar and Nepal. The brand is
growing at an exponential rate, and the company needs to expand its manufacturing
capabilities by investing in new manufacturing units to meet its growing demand.
3. Low Distributor Margins
Patanjali operates on low profit margins, and as a result of this are unable to offer their
distributors with attractive margins. Due to this, many distributors prefer selling and
distributing the products of Patanjali’s competitors who offer them better margins.

Opportunities.

1. Growth in Demand for Organic Products


The growth of consumer demand for organic products is increasing due to the increasing
awareness of organic and natural products. Patanjali’s positioning as manufacturing of
natural products has attributed to the growth and success of Patanjali Ayurveda Limited.
The potential of increased future demand for organic and natural products can benefit the
company.

2. Expansion into the rural market


The Indian rural market is largely undeserved due to the low spending capabilities of the
low-income population of these regions. However, Patanjali’s product’s pricing being 20-
30% cheaper than other popular brands. The penetrative pricing policy of Patanjali
combined with Baba Ramdev’s popularity in the rural regions of India can help acceptance
of Patanjali’s products in rural India.

3. Global Expansion
The demand for herbal, organic and natural products is also increasing in other parts of the
world, including the developed western countries. Patanjali’s positioning as a natural and
ayurvedic company can help. This offers Patanjali an opportunity to expand into
international markets and grow its brand.

4. Diversification
Patanjali can diversify into other natural and organic products such as Khadi, clothing and
apparel, natural cosmetics and other natural and organic products. This will also the
company to use its existing distribution channels and strategic partnerships to distribute its
new products.

Threats.

1. Competitive Environment of the Indian Market


India has some major players in the FMCG sector which include HUL, Marico, Parle Agro,
ITC, Nestle, P&G, Britannia Industries Limited and many more. Due to this, Patanjali
Ayurveda Limited operates in a highly competitive market space.

2. Impact of a possible poor reap


Patanjali used natural herbs and agricultural products to manufacture its products. Though
Indian has a largely agriculture-based economy, most agriculture is still dependent on
rainfall to water their crops due to lack of irrigation. One year of poor monsoon can lead to
bad agricultural output, as a result of this negatively impacting the supply of raw material
for the company.

3. Possibility of a Price War


A price war might benefit the consumers, but often can be harmful to domestic businesses.
Multinational FMCG companies with deep pockets can create a price war to drive out
competition by selling their products below cost, which is unsustainable for domestic
players such as Patanjali.

The SWOT analysis of Patanjali shows that the company is well on its way to greater
success. The company simply has to manage its communications and abstain from anything
that directly impacts Baba Ramdev. It needs to place more confidence in itself to pursue the
markets worldwide and connect with more consumers that would be interested in its brand
and offerings.
2.) Concepts of Just In Time and Lean Production.

Development, a very simple but never-ending word. Development is something that must
be organized from start to finish. It changes over time with trends. It is very important for
the organization to keep abreast of the latest trends in its business environment, so that it
can compete with its competitors.
MG Motors is facing the worst moment since its launch in India. And they believe there is a
lot of looting and waste in their production. Also, the time taken to make one unit of their
car is very high compared to international standards. And as a designated consultant, I can
take the help of JIT and Lean production ideas to help them get out of this. Let's see what
these are.

Just In Time (JIT) is one of those management philosophies that talks about sustainable
development, in which unused and wasted resources are identified and eliminated. In this
sense managers get the goods from the supplier as and if they are only needed, they also,
help to increase efficiency and reduce losses. As the procurement and production of units
depends on the need and demand of the customer comes with many benefits and value, as
it helps to reduce the waste of goods, reduces the cost of warehouse, helps managers to
invest less. pricing and also gives the manufacturer full control over the production process
based on demand-pull. JIT also helps to establish resources from local suppliers, as that can
reduce travel costs and provide goods much earlier than others. A good example of this
would be Toyota, as Toyota buys equipment only after receiving the order, this prevents the
company from saving on construction materials and reducing their costs, this idea also helps
in providing customized necessities as items arrive. personally in that particular order and
begin to reduce waste.

Although Lean production is very customer-focused as it is one of those management


philosophies that talks about eliminating all functions that do not increase the value of the
final product, and no efficiency can be achieved. Its goal is to increase its productivity and
customer satisfaction and reduce waste. Lean production is an idea in itself, it can be used
to create JIT production. Its main purpose is to eliminate problems. There are a few Lean
production features such as JIT. It helps to eliminate waste, as waste alone is a bad word, it
does not benefit the product in any way, it improves the quality of the final product as it
allows the company to be competitive and meet the needs and demands of customers. It
also helps to reduce costs and time.
Now as we saw the production of JIT and Lean it would be a better idea to solve our
problem of eliminating waste and reducing production time. Before we talk about how we
can use them, let's start by exploring,

● First and foremost I as a counselor have been trying to clarify problems and break them
down into sections so that they can be solved better.
● Then I set a goal to solve the problem or to get rid of it.
● Properly research and evaluate and evaluate any possible source of information
● After the analysis, I would take some steps to resolve it and check it all out.
● Lastly, I would measure all the results and processes, I would do a thorough monitoring of
the set settings.
● Then compare the full and final processes.

Now let’s talk about using JIT and Lean production at MG Motors, as all the problems seem
to be solved by this concept. Their problem was to reduce and eliminate pollution and
reduce production time.

● As we focus more on eliminating or reducing waste we should build a better supply chain.
We have to talk to our suppliers and maintain good relationships with them so they can
deliver us goods on time and they can work for us less, this is how a good company should
work. We should always talk to more than 2-3 local suppliers so that we do not deal with
any Adhoc this will help us also reduce our shipping costs.
● That is not a waste disposal, we should identify jobs that lead to more waste in our area.
We are united and need to find jobs that can help us become more successful and add value
to the company.
● Next we must avoid overcrowding, as this leads to wasting time. And not just wasting time
but also wasting costs, as keeping these inventories in excess, and reducing the level
provided.
● Continuing the use of technology should increase, the whole production process that took
weeks and months now can be shortened or improved the system accordingly.
● Once the procedures are set up try to continue the systematic approach, and collecting
feedback from the customer and the system should help in a way that will benefit us for the
rest of our lives, as this will help us achieve the highest value value creation. our end users.
In summary we can say the best way to get a company on the road, during its worst days
related to production and disposal would be JIT and Lean production. It is just a measure of
where you have to carefully manage your assets and assets. This may seem like a big deal,
but in the end, let's look at the long-term consequences, which will make us realize that this
step is completely beneficial. Also, do not forget to discuss this internally or with your
business advisors, as you will find out more about it

3.a.) Can you explain Political, Economic and Social forces which have had an
impact on the business?
The motel chain, Lemon Tree, which provides many residential areas across the country, has
suffered significant losses as a result of the epidemic. Although the organization has
experienced a number of problems due to the closure, many companies have also faced
many challenges during this closure period. If you want to prevent big losses, you need to
shut down the chaos of a few organizations. You may be able to perform a complete
analysis of the effects of various substances as a representative of Lemon Tree Corporation.
Political impact:
In some cases, the response of local, provincial, and national governments to this epidemic
may affect who is politically involved, what kind of eligible voter options are available, and
what type of voting is appropriate. In emergencies, citizens want politicians to take firm
action, with a few completed within the private sphere. Similarly, during this epidemic, the
rules and regulations of the authorities changed many times. Later, it has a huge impact on
the business.
Economic impact:
Jobs have been losing momentum since the economic crisis. In addition, low-wage workers
are more likely to lose their jobs permanently or be known to be reinstated at a much lower
rate than people in various industries who earn much. The economic outcomes are
predicted to last well to the end, especially for those with reduced employment, just
entering the workforce, and people close to retirement. Similarly, during the epidemic,
motels were closed to maintain public broadcasting. It is important to note that work from a
home institution does not apply to this business. People cannot walk all over the epidemic;
employees are unable to come to supply themselves due to the closure of work. These are
the main goals of a big loss for the employer.
Social impact:
In the aftermath of this epidemic, the basic means of communication that have fueled the
social and economic ills of the past few decades have been shattered. Most people
experience interruptions in their normal daily activities because of a significant social
distance, which may be more disruptive to work, intelligence, community, or family
responsibilities. As a result, school resources, health, social care, religious and government
firms, corruption justice, and governance, as well as the many different industries that rely
on human cooperation, are forced to reorganize their practices immediately. , few go
online, some postpone or delay. A few are completely closed. Because of this social
distance, people are not moving enough. As a result, many hotel companies have suffered
huge losses as a result of the crash.

3.b.) Contingency approach of Modern approach in order to face the


pandemic effectively.

The contingency approach to management is based on the idea that there is no single best
way to manage. Contingency refers to the immediate contingent circumstances, in this case
the pandemic Covid 19 outbreak. Lemon Tree hotels must tailor their planning, organizing,
leading, and controlling to their particular circumstances in order to face this difficulty and
survive.
Following are some point that Lemon Tree Hotels can consider to ensure that their business
is fully prepared to face the pandemic based of the Contingency approach of Modern
Approach. The management of the hotel should develop a comprehensive strategy to adapt
to COVID-19 pandemic situation including the following aspects.

Stop-gap Plan: Lemon tree Hotel should use the opportunity to devise and implement a
“Stop Gap Plan” to ensure that when demand bounces back, the hotels are well prepared to
benefit from the upswing. Among essential items the Stop Gap Plan should include:

• Bare minimum operations sufficient enough for quick recommencement when the
opportunity arrives
• Implement a subtle digital and social media marketing strategy to retain mindshare
of customers
• Engage with suppliers / vendors to compute their capacity to re-engage with the
hotel on recommencement
• Develop and maintain communication lines with key customers and team members
• Continue to remain in discussion with relevant local government authorities
• Develop a Reopening Plan and Budget
• Utilize this period for implementing Ken-fix-it / upgradation, wherever possible.
Re-engagement and Support for Returning Team Members: They should provide adequate
support to the returning employees to restart their work life, including assistance on
matters such as housing etc. Roll out a training and re-engagement processes for their
specific duties and departments.

Sales and Marketing: Carrying forward from the ‘Stop Gap Plan’, aggressive efforts to re-
establish connections with all customer through all available channels should be
implemented.

• Effective digital and social media strategies must be rolled out as part of the
communication plan.
• Follow a mechanism whereby all the bookings that were previously cancelled or
deferred are honoured in good spirit
• Instead of ‘Go local’ go ‘Local’: demand from outstation travellers will be low in the
coming months, hence, it is time to focus and rely on local demand. Special
experiential packages and promotions targeted at ‘locals’ should be the driving
mantra.
• Promote packages for specific target groups such as ‘Staycations’

Maintain Pricing Charts:

• Hotels should think ‘long-term’ and promote value-added services and flexible
booking terms instead of reducing rates.
• Discounts can be creatively packaged, by bundling services into customized packages
& promotions, without adding substantially to the hotel’s cost while leveraging the
property’s exclusive characteristics to remain competitive.
• Offering a flexible cancellation and rebooking policy will reassure existing & potential
guests.

Initial Working Capital: A 90 to 180 days initial working capital credit line should be
established
Compliances: Ensure that the hotel is complaint with any revised government and brand
norms. Ensure the hotel continues to follow the health and cleanliness guidelines. Reassure
Guests and Employees by intensifying routine maintenance and increasing deep clean
measures.
Manage financial arrangements for all the necessary implementation of the above-
mentioned changes, welfare and security of the staff and any other foreseen expenses.
The Government has also announced its plans to set up a COVID-19 Taskforce to undertake
measures necessary to combat the economic effects of the pandemic on the country &
various sectors including hotels.
For Monetary Support , Stimulus package to stabilize and support the sector in the near
term, including a workforce support fund to ensure that there are no job losses.
They will also provide a moratorium of 6 – 12 months on all loans (principle & interest),
including working capital payments and overdrafts.

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