Strategic Leadership ± Brijmohan Lal Munjal

Past President of Confederation of Indian Industry (CII). ‡ Started his business career making bicycle parts. Today his $2 billion (sales) Hero Group is world's biggest bicycle and Motor cycle producer. Society of Indian Automobile Manufacturers (SIAM) and was a Member of the Board of the Country's Central Bank (Reserve Bank of India). Munjal was conferred the Padma Bhushan Award by the Union Government.Profile : ‡ Founder Director and Chairman of the Company and the $3. ‡ In recognition of his contribution to industry. Mr.2 billion Hero Group. .

‡ Talking of their strategy in maintaining this position Munjal says that product innovation. and aftersale service coupled with excellent customer relationship management are some of the initiatives have helped them retain their World No 1 position for the over five years. new product development. distribution. .

‡ Established dealerships all over the country ‡ Three manufacturing facilities based at Dharuhera. and the local manufacturing ability.About Hero Motocorp ‡ Started in 1984 as a joint venture between Hero Cycles of India and Honda of Japan ‡ Honda brought in the technological know-how and Hero the India presence. ‡ Large sales and service network with over 3. .000 dealerships and service points across India. These plants together are capable of churning out 3 million bikes per year. Gurgaon in Haryana and at Haridwar in Uttarakhand.

Suppliers ‡ It is reported Hero Honda has five joint ventures or associate companies. ‡ ‡ ‡ ‡ ‡ Munjal Showa AG Industries Sunbeam Auto Rockman Industries Satyam Auto Components ‡ That supply a majority of its components. .

to produce the product and service that meet quality. shut it . systems and human resources.Strategies in three phases : ‡ Phase I (1984-1994) ‡ Competitiveness ± Operational Core competency ‡ Marketing ± With slogan ³Fill it. performance and price aspirations of their customers. Forget it´ ‡ Close integration with suppliers ‡ Focusing on Distribution and After Sales Network ‡ Aim was to create synergy between technologies. .

‡ Focused on market consolidation across country with punch line ³Desh ki Dhadkan´ . updated contract with Honda for another 10 Years ‡ Planned more R&D support from Honda ‡ Splendor launched in 1994 for office going middleclass.Phase II ‡ In 1992.

Phase III (1999-2011) ‡ Strategic shift from earlier operational core competency to another added marketing competency ‡ Much more competitive ± Honda.Bajaj.TV Shows etc.Yamaha as competitors.TVS.) ‡ R & D expenditure increased . ‡ Product Diversification ± Launched 5-7 new bikes every year ‡ Differentiation ± Launched girl¶s scooter µPleasure¶ ‡ Aggressive marketing ± Focused on marketing in addition to core competency (Like sponsoring Cricket Series.

the Board of Directors of the Hero Honda Group has decided to terminate the joint venture between Hero Group of India and Honda of Japan in a phased manner. . ‡ There were differences over a variety of issues. ranging from Honda's reluctance to fully and freely share technology with Hero (despite a 10-year technology tie-up that expires in 2014) as well as Hero¶s uneasiness over high royalty payouts to the Japanese company.Termination of Honda joint venture ‡ In December 2010. ‡ Under the joint venture Hero Group could not export to international markets (except Sri Lanka) and the termination would mean that Hero Group can now export.

So there are concerns that the Hero Group might not be able to sustain the performance of the Joint Venture alone. . the Hero Group relied on their Japanese partner Honda for the technology in their bikes.‡ Since the beginning.

Thank You .

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