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Case: J. K. Paper Ltd.
Group Members Amrita Acharya Shristi Shakya Sushan Joshi 3/1/2012
. Explain with reasoning the corporate strategy the Company had adopted for its survival.K. b. cutting costs and paying attention to employee productivity. Also. the company focused majorly on the areas like: Managing working capital flows. Where did the recession hit J. he marketed packaging boards there. K. products. Paper Ltd. The major corporate strategy that the company adopted for its survival was the stability strategy by continuing its operation of the Company’s two plants at Gujarat and Orissa at 100% capacity. Managing Director of the company planned to reach out to newer customers by widening Company’s distribution network. In order to match its sales with production. c. instead of buying pulp which lasted about 2-3 months. the Company decided to continue its operation of two plants i. Since the meltdown had minimal effect in the rural areas. Drastic fall in the share prices Financial crisis Its customers were focusing on correcting their inventory positions so they were not buying materials to keep production lines and marketing activities rolling. What functional strategies were undertaken by the Company to overcome its crisis? There are various functional strategies undertaken by the company to overcome its crisis which are explained as follows: Production Strategies: Mr.? The Global Economic recession of 2008 hit the J. Gujarat and Orissa at 100% capacity. Also. Singhania took some very bold decision at the time of crisis which helped the company reap profit even at such situations. K.a. it bought enough pulp to last for about 9 months which eventually resulted in huge saving for the company. Singhania. majorly in the following areas: The contradiction in demand due to the general trend of hiked prices had affected the sale J. Mr.e. Ltd. Pare Ltd. Instead of shutting down the company’s plant and cutting on its production.
Financial Strategy: The Company intensified its efforts to recover its debits from its clients which resulted in the fast recovery of crores of rupees. New employees were recruited in the company only when they were critically important. Besides these. the organizational structure of the company was re-evaluated and reviewed. the company asked the inefficient employees to leave their job. Singhania did not take any increments that year. It also cut its prices by 2-3 percent. Explain whether or not Mr. Singhania provided strategic leadership to the company? We believe that. the increment for employees for 2008-2009 was very low. Human Resource Management Strategy: In order to improve productivity and reduce its wag bill. . Also disputed debts were settled expeditiously in order to raise more cash which brought in a good amount of cash to the company. the company also took decision which led to cost reduction as it reduced its workforce and bulk purchase of pulp reduce the costs that would else be incurred if invested periodically. Review of the Organizational Structure: For the successful implementation of the company’s strategies to ride out the slow down. Singhania marketed the packaging boards to these rural areas where the meltdown had minimal effect. We think that Strategic leaders have 3 key responsibilities that are essential in creating a leadership team that is prepared to manage the complexity and change inherent in today's business environment. d.Marketing Strategy: The Company planned to reach out to the new customers in the rural areas in order to match sales with the production. Also. Even Mr. State the basic responsibilities of a strategic leader in a business house. This eventually led to improving the efficiency of the company. Mr. the requirements of leadership are very straightforward.
1. These goals can be achieved through communication to and involving all levels of the organization.According to us the three basic responsibilities of strategic leader are as follows: 1. Deployment Leaders deploy the appropriate resources at the time and place where they can have the most impact. The leadership team aligns the entire organization so that all the organization's energy and action are focused on achieving several core goals. judgment and initiative. Alignment The alignment process builds commitment to the vision and the strategic plan. Take Responsibility for Vision. dreams. Create a Culture of Empowerment 3. and specific enough so that individuals can define the scope of their own work in the fulfillment of the vision. It provides the foundation that makes it possible to empower individuals to act with independence. The leadership team makes the strategic decisions: Which markets? Which products? Which initiatives? . Alignment and Deployment Vision Setting the vision may be the single most important responsibility of leaders. Build Commitment. and desires of a knowledge-based work force. Alignment and Deployment 2. It enables strategic leaders to set the principals that provide the direction and broad boundaries for the enterprise. Take Responsibility for Vision. Vision must be broad and specific – broad enough to capture the hopes.
At such a difficult situation he was able to provide directions to his company. He was able to come up with Strategic Formulations and Strategic implementation processes which were very much essential at such time when organization was undergoing such crisis. permanent and momentum building. Commitment is built through communication and participation. Mr. and when they have the authority and the resources they need to do so. People begin to feel empowered only when they are clear about their responsibilities. After an economic meltdown the J. when they are held accountable for fulfilling these responsibilities. commitment serves to: Enlarge vision and understanding Clarify purpose in activities Bring behavior into line with values. It is not simply about the formal hierarchy.K Paper Ltd was in the midst of Economic crisis. People had clear objectives . Then they understand that they can. influence the way the organization conducts business. Yes definitely. 3. Develop Commitment Strategic Leaders engage employees and help them develop a personal commitment to the organization's common vision and goals. the opening up the power reserves and asking everyone to take what they need to get the job done. When built through involvement. Singhania was able to provide strategic leadership to the company. in fact. 2. Create a Culture of Empowerment Empowerment in today's business environment means the ability to influence others and the way business is conducted. goals and strategies Bring about changes that are self-generating. At the center of successful change are the sharing of power. authority or control. Empowerment is about transmitting power to the proper owners.Then they allocate resources and empower those employees closest to the marketplace to implement the strategy and meet customer needs.
willing and able to take on the vast and varied challenges that organization faced at that time. Paper Ltd. is that one should be calm and composed in difficult times.K. He also created an environment that attracted.K. panicking and being terrorized. developed and retained the best and brightest. he instead expanded the capacity with certain objectives. the company could identify the focus areas to solve the problem by focusing on managing working capital flows. Singhania’s leadership ability that held the people together at such time of crisis and come up with existing problems as well as solution to those problems. one should first be calm and then think about how they can overcome the existing problem or solve them. giving the organization additional boost. Even though the company is facing difficult situations. Due to this brainstorming session. to ride out the economic meltdown? The lessons learnt from J. These sessions helped to analyze the problems and its possible lists of solutions.K. the M. Thus to face the difficult time.D. He was successful in building an organization that was ready. a person can see the existing opportunities or solution to their threats or problems. cutting costs and paying attention to employee productivity. e. Papers.of what they were doing and what were their objectives. In case of J.managers would have done. Seek advice from others: Another lesson learnt is to seek advice from others to identify the causes of the problem and ways to solve them. Paper Ltd. What lessons are learnt from the experience of J. Paper Ltd. Mr. Only by being calm. has held many brainstorming sessions. It was because of Mr.K. Singhania. and not having self control will not solve the existing problem. which most of the top. improve productivity and efficiency of the organization. are as follows: Be calm: One of the important lessons learnt from J. Instead of closing down the factory. As a result he was able to make fast recovery of crores of rupees. .
Leaders should be a role model: Mr. In such a case it becomes easy for other employees to accept their no-increment situation. one should be able to dwell into the micro level. and then identifying the new markets to match the sales with production. Singhania was able to establish himself as a role model for other employees as during the economic meltdown to recover by reducing costs. the same can be transferred to other employees as they will seek the behavior of the leader. Thus if the leader can become a role model for the employees then they will be influenced in a positive way. If the leaders themselves are very much concerned about the company and its survival and well being. and also seeking debt recovery from the clients rather than seeking loan from banks. identifying the root cause and targeting the solution to solve or improve that root problem. Take brave decisions: An important lesson learnt from the MD. Singhania is that one should be brave enough to take decisions that might be opposed but is significantly good for the company to ride itself out of the economic meltdown. Go to micro level: While analyzing a problem and identifying its possible solution. The brave decisions taken by the MD are continuing operation at two plants Gujarat and Orissa at 100% capacity when the sales was low. Mr. also cutting costs by 2-3% while the company was still not in a better position by reducing its wage bill by relieving the inappropriate employees and not providing increments. . This is also an important lesson learnt. If we can identify the root cause and take action against it then the problem can be solve easily. he did not took any increments from the company.
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