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Change management in Godrej

Presented By: Ashwin Sheka Everil Fernandes

CHANGE

MANAGEMENT

CHANGE MANAGEMENT

THE GODREJ GROUP
Godrej group is one of the largest company based in India Godrej was est in 1897 by Ardeshir Godrej Godrej is one of India·s most rusted brand and it touches the life's of millions on Indians The Godrej Group is one of the oldest and most diversified firms in India. From a lock making company in 1897 to a present day conglomerate The liberalization of 91 and the ensuing challenges from the MNCs provided yet another stimulus for change The two major companies of Godrej group ² Godrej & Boyce and Godrej Industries Limited While, Godrej & Boyce continues to focus on consumer, industrial and office equipment products, Godrej Industries Limited is more dynamic and focuses on range of sectors including FMCG, retailing, food, IT, real estate, etc.

Companies in the Group

Godrej & Boyce- locks to aerospace, furniture to construction, Godrej Industries- edible oils, vanaspati and bakery fats Godrej Properties- Real estate development companies Godrej Consumer Products- FMCG Godrej Household Products- Good Knight, HIT, Jet, Ambipur, Brylcreem Godrej Hershey(USA)- Food and Beverages segment. Godrej Agrovet- animal feed, oil, palm plantations, agro chemicals and poultry. Others: Godrej InfoTech, Godrej Efacec Automation & Robotics. Geometri, International Operations

NEED FOR CHANGE Indian economy opened to global competition Godrej group was in a Quandary No exposure to competition or new technology Entered into two alliances-P&G & GE Entire distribution of Godrej transferred to P&G 1995-Break-up of the joint venture between Godrej & P&G Post breakup Godrej devoid of distribution system Rebuilding exercise 1995-TQM Switch from a family-run business to a professionally managed company Changed the earlier model of management hierarchy Adopted a participative management model, team spirit, employee improvement programmes.

Change of Logo

Brand Identity
CITRUS GREEN CARE FOR THE ENVIRONMENT SKY BLUE IMAGINATION AND AMBITION AS HIGH AS THE SHY RUBY RED EXTREME PASSION

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Structural change
The main problem faced by the group in 1991 was that it was getting too bureaucratic with slow pace, getting bogged down in routine matters, too many slow-moving products and a reluctance to do away with old practices. Godrej went all out into incorporating corporate governance in all its subsidiaries and group companies (both listed and unlisted). Each group company had a CEO or a President (not necessarily from the family). Full freedom was given to these leaders to devise strategy for the companies and lead Godrej in the liberalized and open economy. This change led to the concept of Divisionalisation with each division as a profit centre, decentralization of decision-making and empowerment of managers at the grassroots level, and Quality the watchword

Product changes
In the washing machines segment Godrej is catering to all pockets as they manufacture semi- automatic and fully automatic Refrigerator market- 100% CFC free refrigerators, coming up with the Godrej Pentacool with five sides cooling in and Penta-fresh Technology .The latest series Eon that has been recently launched has a got a large number of new and innovative features In Microwaves, Godrej uses the latest technology, Microsteam, which helps in keeping all the nutrients of the food intact. Godrej soaps: Evita is first launched in 1990·s and later relaunched as age control soap.

Segment changes Godrej interio has started designs for young and fun loving customers. They were concentrating on slightly aged people till date but now they were into new designs

Technology changes
Refrigerator technologies: Silver shower technology, Anti- B technology, SIF technology, ZOP technology Air conditioners technologies: Gold fin technology, Blue fin technology Packaging change: packaging soap is changed for Cinthol soap Logo change: It changed its logo in 2008

Awarded ¶The Best Employer 200708· by global human resources management and outsourcing company, Hewitt Associates. Following EVA implementation, operating performance has improved significantly All the businesses improved their performance