copyofterm paper on strategic management of maruti suzuki.doc

8/17/2019 CopyofTerm Paper on Strategic Management of MARUTI SUZUKI.doc

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Term Paper on Strategic Management of

MARUTI SUZUKI

Submitted by Assignment point

www.assignmentpoint.com


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INTRODUCTION

1981- MARUTI UDYOG LTD was incorporated on under te

INDIAN COM!ANI"# ACT$ 19%&'

198(- License and )oint *enture a+ree,ent si+ned etween Maruti



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(1(- Maruti "rti+a$ seen seater M!* R@ desi+ned and dee6oped in India$ wi66 co,pete

wit To.ota Innoa$ Maindra E.6o$ and Tata #u,o Grande' In ear6. (1($ #u0ui "rti+a wi66 e

eported 7irst to Indonesia in Co,p6ete6. noc Down car'

(1>- Maruti EA A6pa wi66 e 6aunced

COMPANY PROFILE

Maruti Ud.o+ Ltd' 2MUL3 is te 7irst auto,oi6e co,pan. in te wor6d to e onored wit an

I#O 9( certi7icate' Te co,pan. as a =oint enture wit #u0ui Motor Corporation o7

)apan' It is said tat te co,pan. taes on6. 1> ours to ,ae a car' 5ew o7 te popu6ar ,ode6s

o7 MUL are A6to$ Ba6eno$ #wi7t$ Fa+on-R and en'

Maruti Ud.o+ Li,ited 2MUL3$ esta6ised in 1981$ ad a pri,e o=ectie to ,eet te

+rowin+ de,and o7 a persona6 ,ode o7 transport$ wic is caused due to 6ac o7 e77icient pu6ic

transport s.ste,' Te incorporation o7 te co,pan. was trou+ an Act o7 !ar6ia,ent'

#u0ui Motor Co,pan. o7 )apan was cosen 7ro, seen oter prospectie partners

wor6dwide' #u0ui was due not on6. to its undisputed 6eadersip in s,a66 cars ut a6so to

co,,it,ents to actie6. rin+ to MUL conte,porar. tecno6o+. and )apanese ,ana+e,ent

practices 2tat ad catapu6ted )apan oer U#A to te status o7 te top auto ,anu7acturin+ countr.

in te wor6d3' at Maruti Ud.o+ Ltd'

A 6icense and a )oint *enture a+ree,ent were si+ned etween Goern,ent o7 India and

#u0ui Motor Co,pan. 2now #u0ui Motor Corporation o7 )apan3 in Oct 198('

Te o=ecties o7 MUL$ ten are as cited e6ow

● Moderni0ation o7 te Indian Auto,oi6e Industr.'● !roduction o7 7ue6-e77icient eic6es to consere scarce resources'

● !roduction o7 6ar+e nu,er o7 ,otor eic6es wic was necessar. 7or econo,ic+rowt'

In (1$ MUL eca,e one o7 te 7irst auto,oi6e co,panies$ +6oa66.$ to e onoured

wit an I#O 9( certi7icate' Te productionH R/D is spread across (94 acres wit @ 7u66.-

inte+rated production 7aci6ities' Te MUL p6ant as a6read. ro66ed out >'@ ,i66ion eic6es' Te

7act sa.s tat$ on an aera+e two eic6es ro66 out o7 te 7actor. in eer. sin+6e ,inute' Te


http://does/http://innova/http://innova/http://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Indonesiahttp://does/http://www.surfindia.com/automobile/suzuki-motor-corporation.htmlhttp://www.surfindia.com/automobile/maruti-udyog-ltd.htmlhttp://www.surfindia.com/automobile/suzuki-motor-corporation.htmlhttp://does/http://innova/http://en.wikipedia.org/wiki/Indonesiahttp://does/http://www.surfindia.com/automobile/suzuki-motor-corporation.htmlhttp://www.surfindia.com/automobile/maruti-udyog-ltd.htmlhttp://www.surfindia.com/automobile/suzuki-motor-corporation.html


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#u0ui Motor Corporation$ te parent co,pan.$ is a +6oa6 6eader in ,ini and co,pact

cars 7or tree decades' #u0ui;s tecnica6 superiorit. 6ies in its ai6it. to pac power and

per7or,ance into a co,pact$ 6i+twei+t en+ine tat is c6ean and 7ue6 e77icient'

Maruti is c6ear6. an e,p6o.er o7 coice 7or auto,otie en+ineers and .oun+ ,ana+ers

7ro, across te countr.' Near6. 4%$ peop6e are e,p6o.ed direct6. . Maruti and its partners'

Te co,pan. ouces 7or custo,er satis7action' 5or its sincere e77orts it as een rated

2. custo,ers37irst in custo,er satis7action a,on+ a66 car ,aers in India 7or nine .ears in a row

in annua6 sure. . ) D !ower Asia !aci7ic'

Maruti #u0ui was orn as a +oern,ent co,pan.$ wit #u0ui as a ,inor partner to

,ae a peop6eKs car 7or ,idd6e c6ass India' Oer te .ears$ te product ran+e as widened$

ownersip as can+ed ands and te custo,er as eo6ed' Fat re,ains uncan+ed$ ten andnow$ is Maruti;s ,ission to ,otorise India'

Modu6e ( #trate+. 5or,u6ation

Vision: *isions o7 an. co,pan. are tose a6ues on wic co,pan. wors' As te MUL isstarted . Goern,enta6 initiaties it tends to e ,ore consu,er oriented and ence cost

e77ectie$ ut on te oter and #u0ui;s participation ensures not on6. need o7 te pro7it$ ut o7 te need o7 ,ai,u, pro7it' Te on6. wa. 7or tis Nora;s di6e,,a o7 se6ectin+ principa6s 7or co,pan.;s worin+ ision $was to ,ai,i0e pro7it and reducin+ cost . ,ai,i0in+ output and

sa6es' :ence MUL dec6ared its *ision as-

Te Leader in te Indian Auto,oi6e Industr.$ Creatin+ Custo,er De6i+t1 and #areo6derKsFea6t( eentua66. eco,e a pride o7 India



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Custo,er De6i+t1 is ,ain+ sure tat per7or,ance$ a7ter sa6es serice and custo,er support are

est and e.ond epectation' #areo6der;s wea6t( is te pri,e concern 7or runnin+ usiness

s,oot6.'MUL nows tis and understands custo,er is in+$

Mission:

Mission is te state,ent o7 an or+ani0ation;s purpose$ wat it want to acco,p6is in te 6ar+er eniron,ent and its +oa6s wic are speci7ic$ rea6istic and ,otiatin+' Missions are descried

oer isions and isions de,and certain o=ecties' Te ,ain o=ectiesHMissions o7 MUL are

- Moderni0ation o7 te Indian Auto,oi6e Industr.'

- Dee6opin+ cars 7aster and se66in+ te, 7or 6ess'

- !roduction o7 7ue6-e77icient eic6es to consere scarce resources'

-!roduction o7 6ar+e nu,er o7 ,otor eic6es wic was necessar. 7or econo,ic +rowt'

-Maret !enetration$ Maret Dee6op,ent #i,i6ar6. !roduct Dee6op,ent and Diersi7ication'

- !artner re6ationsip ,ana+e,ent$ *a6ue cain$ *a6ue de6ier. networ'

AUTOMOBILE INDUSTRY IN INDIA:

• 11 million !"i#l!s$%!ar

• 1&' million( !)*ort

• T+o +"!!l!rs ,-'./

• Pass!n0!r Cars( 1.

• Comm!r#ial !"i#l!s ,2./

• US 34' 5illion

#FOT ANALY#I#

#tren+ts

➢ #tron+ Networ

➢ !resence➢ Brand I,a+e

➢ now6ed+e o7 te ,aret➢ #tron+ !artnersip

Feaness

➢ R!lati!l% n!+ in t"! 6i!s!l #ar s!0m!nt

➢ Ima0! stu#7 on small #ars

➢ 8!a% im*ort tari99s on im*ort!6 mo6!ls



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➢ Goern,ent ureaucrats ae ,ade MUL unaccusto,ed to internationa6

standards or een co,petitors

Opportunities

➢:i+ end car se+,ent

➢ Oerseas ,aret➢ I,proe and6in+

➢ Add etra 7eatures to s,a66 se+,ent cars➢ Attractin+ .out

➢ "port s,a66 cars

Treats

➢ lo5al *la%!rs

➢ ;or7!r


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● T"r!at 9rom t"! n!+ *la%!rs: In#r!asin0

• Most o7 te ,a=or +6oa6 p6a.ers are present in te Indian ,aret 7ew ,ore are

epected to enter'

• 5inancia6 stren+t assu,es i,portance as i+ are re


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● Mar7!t str!n0t" o9 su**li!rs: Lo+

• A 6ar+e nu,er o7 auto,otie co,ponents supp6iers

• Auto,otie p6a.ers are rationa6i0in+ teir endor ase to aciee consistenc. in


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Tecno6o+ica6 eniron,ent

● Laun#"!6 CN 7it 9or Alto? its "i0"!st s!llin0 small #ar&

● T"! #om*an% as a *roa#ti! mo! is all s!t to ma7! its !ntir! 9l!!t o9 #ars

a6"!r! to !n6 o9 li9! !"i#l!s< ,ELV/&

● T"! #om*an% is inol!6 +it" t"! 6!!lo*m!nt o9 small an6 9u!l(!99i#i!nt #ar

!n0in!s&

● In 9utur!? t"! #om*an% "as "i0" *lans to in#r!as! t"! !n0in! 6!!lo*m!nt

+or7 in In6ia alon0 +it" ot"!r RD o*!rations

● T"! #om*an% us!s n!)t 0!n!ration B s!ri!s En0in! in its n!+ 8at#"5a#7

#ar A(star&

●

T"! #om*an% a66!6 Virtual D!si0n R!i!+ to its RD a#tiit% to !na5l!irtual ali6ation to r!6u#! #%#l! tim! an6 6!!lo*m!nt #ost&

● In t"! 9i!l6 o9 alt!rnat! 9u!l t!#"nolo0%? t"! #om*an% 6!!lo*!6

LP$CN$8YBRID s%st!m 9or MPI !n0in!&

"co6o+ica6 eniron,ent

Pra#ti#in0 4 R

● 4R( r!6u#!? r!us!? an6 r!#%#l!&

● Continuous *ro#!ss o9 *romotin0 1@@. r!#%#la5l! an6 r!usa5l! #ar *arts&

● Tar0!ts r!6u#in0 9r!s" +at!r #onsum*tion an6 im*l!m!nt rain +at!r

"ar!stin0&

● P"%si#al in9ra stru#tur! su#" as roa6s an6 5ri60!s a99!#t t"! us! o9

automo5il!s& I9 t"!r! is 0oo6 aaila5ilit% o9 roa6s or t"! roa6s ar! smoot" ;it" t"!

6!!lo*m!nt or !olution o9 alt!rnat! 9u!ls? "%5ri6 #ars "a! ma6! !ntr% into t"!

mar7!t&

Le+a6 eniron,ent

● Follo+s "i0"!st stan6ar6s o9 Cor*orat! o!rnan#!

● Custom!r #an #onta#t t"! S!#r!tarial L!0al D!*artm!nt 9or an%

u!stions$#lari9i#ations&

● L!0al #om*lian#! r!*ortin0



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T"! 5oar6 *!rio6i#all% r!i!+s r!*orts o9 #om*lian#! +it" all la+s a**li#a5l! to

t"! Com*an%? as +!ll as st!*s ta7!n 5% t"! Com*an% to r!#ti9% instan#!s o9

non(#om*lian#!s&

● T"! Com*an% "as 6!!lo*!6 #om*r!"!nsi! l!0al #om*lian#! s#"!6ulin0 an6

mana0!m!nt so9t+ar! 5% +"i#" s*!#i9i# #om*lian#! tas7s ar! assi0n!6 to !a#"in6ii6ual& T"! so9t+ar! !na5l!s in *lannin0 an6 monitorin0 all #om*lian#!

a#tiiti!s a#ross t"! Com*an%&

Latest !6an

5ourt asse,6. p6ant wi66 e sca6ed up to produce @$$ cars a .ear . (('!R"#"NT

#U!"R#TAR #u0ui Cero sport a #u0ui &&cc en+ine - as a+ainst NanoKs &(@cc - and wear

a ta+ o7 around Rs 1'% 6a on road' And second car is IA#:I wic is 14cc wit 18 6a'



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Modu6e % #trate+. and Co,petitie Adanta+e

Car Mode6s

Maruti 82198>3

O,ni

G.ps.



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Goint !ntur! r!lat!6 issu!s

Re6ationsip etween te Goern,ent o7 India$ under te United 5ront 2India3 coa6ition

and #u0ui Motor Corporation oer te =oint enture was a point o7 eated deate in te Indian

,edia ti66 #u0ui Motor Corporation +ained te contro66in+ stae' Tis i+6. pro7ita6e =ointenture tat ad a near ,onopo6istic trade in te Indian auto,oi6e ,aret and te nature o7 te

partnersip ui6t up ti66 ten was te under6.in+ reason 7or ,ost issues' Te success o7 te =oint

enture 6ed #u0ui to increase its e? in 1984$ and 7urter to %? in 199('In 198( ot te enture partners ad entered into an a+ree,ent to no,inate teir candidate 7or

te post o7 Mana+in+ Director and eer. Mana+in+ Director wi66 ae a tenure o7 7ie .ears

R'C' Bar+aa was te initia6 ,ana+in+ director o7 te co,pan. since te inception o7 te =oint

enture' Ti66 toda. e is re+arded as instru,enta6 7or te success o7 Maruti #u0ui' )oinin+ in198( e e6d seera6 e. positions in te co,pan. e7ore eadin+ te co,pan. as Mana+in+

Director' Current6. e is on te Board o7 Directors' A7ter co,p6etin+ is 7ie .ear tenure$ Mr'

Bar+aa 6ater assu,ed te o77ice o7 !art-Ti,e Cair,an' Te Goern,ent no,inated Mr'#'#'L'N' Basarudu as te Mana+in+ Director on (4 Au+ust 1994' Mr' Basarudu ad =oined

Maruti #u0ui in 198@ a7ter spendin+ (1 .ears in te !u6ic sector undertain+ Barat :ea.

"6ectrica6s Li,ited as Genera6 Mana+er' In 1984 e was pro,oted as Cie7 Genera6 Mana+er' In

1988 e was na,ed Director$ !roductions and !ro=ects' Te net .ear 219893 e was na,edDirector o7 Materia6s and in 199@ e eca,e )oint Mana+in+ Director'

#u0ui Motor Corporation didnKt attend te Annua6 Genera6 Meetin+ o7 te Board wit te

reason o7 it ein+ ca66ed on a sort notice' Later #u0ui Motor Corporation went on record to

state tat Basarudu was inco,petent and wanted so,eone e6se' :oweer$ te Ministr. o7 Industries$ Goern,ent o7 India re7uted te car+es' Media stated 7ro, te Maruti #u0ui

sources tat Basarudu was interested to indi+enise ,ost o7 co,ponents 7or te ,ode6s

inc6udin+ +ear oes especia66. 7or Maruti 8' #u0ui a6so 7e6t tat Basarudu was a pro. 7or te Goern,ent and wou6d not 6et it increase its stae in te enture' I7 Maruti #u0ui wou6d

ae een a6e to indi+enise +ear oes ten Maruti #u0ui wou6d ae een a6e to

,anu7acture a66 te ,ode6s witout te tecnica6 assistance 7ro, #u0ui' Ti66 toda. te issue o7 6oca6i0ation o7 +ear oes is i+6i+ted in te press'


http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Suzukihttp://venture/http://venture/http://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Markethttp://corporation/http://en.wikipedia.org/wiki/Governmenthttp://en.wikipedia.org/wiki/Governmenthttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Suzukihttp://venture/http://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Markethttp://corporation/http://en.wikipedia.org/wiki/Government


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Te re6ations strained wen #u0ui Motor Corporation ,oed to De6i :i+ Court to rin+ a

sta. order a+ainst BasaruduKs appoint,ent' Te issue was reso6ed in an out-o7-court

sett6e,ent and ot te parties a+reed tat R # # L N Basarudu wou6d sere up to @1Dece,er 1999$ and 7ro, 1 )anuar. ($ )a+dis attar $ "ecutie Director o7 Maruti Ud.o+

Li,ited wou6d assu,e car+es as te Mana+in+ Director'1>J Man. po6iticians stated in

par6ia,ent tat te #u0ui Motor Corporation is unwi66in+ to 6oca6i0e ,anu7acturin+ and reducei,ports' As o7 (11 Gear oes are sti66 i,ported 7ro, )apan and are asse,6ed at te Gur+aon

7aci6it.'

In6ustrial r!lations

5or ,ost o7 its istor.$ Maruti Ud.o+ Li,ited ad re6atie6. 7ew pro6e,s wit its 6aour 7orce'

Its e,pasis o7 a )apanese wor cu6ture and te ,odern ,anu7acturin+ process$ 7irst instituted in

)apan in te 194s$ was accepted . te wor7orce o7 te co,pan. witout an. di77icu6t.' Butwit te can+e in ,ana+e,ent in 1994$ wen it eca,e predo,inant6. +oern,ent contro66ed

7or a wi6e$ and te con76ict etween te United 5ront Goern,ent and #u0ui ,a. ae een

te cause o7 unrest a,on+ e,p6o.ees' A ,a=or row roe out in #epte,er ( wene,p6o.ees o7 Maruti Ud.o+ Ltd 2MUL3 went on an inde7inite strie$ de,andin+ a,on+ oter

tin+s$ reision o7 te incentie sce,e o77ered and i,p6e,entation o7 a pension sce,e'

",p6o.ees struc wor 7or si ours in Octoer ($ ired oer te suspension o7 nine

e,p6o.ees$ +oin+ on a si-our too6s-down strie at its Gur+aon p6ant$ de,andin+ reision o7 teincentie-6ined pa. and treatened to 7ast to deat i7 te suspended e,p6o.ees were not

reinstated' Aout tis ti,e$ te NDA +oern,ent$ 7o66owin+ a disinest,ents po6ic.$ proposed to

se66 part o7 its stae in Maruti #u0ui in a pu6ic o77erin+' Te #ta77 union opposed tis se66-o77 p6an on te +rounds tat te co,pan. wi66 6ose a ,a=or usiness adanta+e o7 ein+ susidised

. te Goern,ent'

Te stando77 wit te ,ana+e,ent continued to Dece,er wit a proposa6 . te ,ana+e,entto end te two-,ont 6on+ a+itation re=ected wit a de,and 7or reinstate,ent o7 9( dis,issedworers$ wit 7our MUL e,p6o.ees +oin+ on a 7ast-unto-deat' In Dece,er te co,pan.Ks

sareo6ders ,et in New De6i in an AGM tat 6asted @ ,inutes' At te sa,e ti,e around 1%

p6ant worers 7ro, te MULKs Gur+aon 7aci6it. were a+itatin+ outside te co,pan.Ks corporate

o77ice de,andin+ co,,ence,ent o7 production 6ined incenties$ a etter pension sce,e andoter ene7its' Te ,ana+e,ent as re7used to pass on te ene7its citin+ increased co,petition

and 6ower ,ar+ins'

Generic #trate+ies

● O!rall #ost l!a6!rs"i*

• Low-cost-position re6atie to a 7ir,;s

peers

• Mana+e re6ationsips trou+out te

entire a6ue cain


http://khattar/http://khattar/http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-13http://khattar/http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-13


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• Di99!r!ntiation

• Create products andHor serices tat

are uni


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T"! Mar7!tin0 Mi)

1&Pro6u#t

&Pri#!

4&Pla#!

>&Promotion



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Tere .ou ae it$ te > ,aretin+ pKs

#o now 6ets +et a it ,ore ep6anation o7 te > ,aretin+ pKs -

1& Pro6u#t - Te product aspects o7 ,aretin+ dea6 wit te speci7ications o7 te actua6 +oodsor serices$ p6us ow it re6ates to te end users needs and wants' Te ran+e o7 a product nor,a66.inc6udes supportin+ e6e,ents suc as warranties$ +uarantees$ and support'

Te ter, product re7ers to tan+i6e$ p.sica6 products as we66 as serices' :ere are so,e

ea,p6es o7 te product decisions to e ,ade

➢ Brand Na,e

➢ 5unctiona6it.➢ #t.6in+

➢ Pua6it.➢ #a7et.

➢ !aca+in+➢ Repairs and #upport



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➢ Farrant.➢ Accessories and serices➢ Mode6s and si0es

& Pri#! -Tis re7ers to te process o7 settin+ a price 7or a product$ to+eter wit discounts' Te price need not e ,onetar. it can p6ain6. e wat is ecan+ed 7or te product or serices$ e'+'

ti,e$ ener+.$ or attention' Metods o7 settin+ prices opti,a66. are in te do,ain o7 pricin+ art'

#o,e ea,p6e o7 pricin+ decisions to e ,ade inc6ude

➢ !ricin+ strate+. 2si,$ penetration$ etc'3➢ #u++ested retai6 price

➢ *o6u,e discounts and wo6esa6e pricin+➢ Cas and ear6. pa.,ent discounts➢ #easona6 pricin+➢

Bund6in+➢ !rice 76eii6it.➢ !rice discri,ination➢ A66owances and dea6s➢ Discount structure

➢ Distriution and retai6er ,ar-ups

4& Pla#! - 2or distriution 3 re7ers to ow te product +ets to te u.er 7or instance$ point-o7-sa6e assi+n,ent or retai6in+' Tis tird ! as 7urter,ore at ti,es een ca66ed !6ace$ re7errin+ to

te canne6 . wic a product or serice is so6d 2e'+' on6ine s' retai63$ wic +eo+rapic re+ionor industr.$ to wic diision 2.oun+ adu6ts$ 7a,i6ies$ usiness citi0ens3$ etc' a6so re7errin+ toow te surroundin+s in wic te product is so6d in can in76uence sa6es'

➢ Distriution canne6s

➢ Maret coera+e 2inc6usie$ se6ectie$ or ec6usie distriution3➢ #peci7ic canne6 ,e,ers

➢ Inentor. ,ana+e,ent➢ Fareousin+

➢ Distriution centers➢ Order processin+➢

Transportation➢ Reerse 6o+istics➢ Out6et 6ocation➢ #a6es territories

>& Promotion - Tis inc6udes adertisin+$ sa6es pro,otion$ inc6udin+ pro,otiona6 education$



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pu6icit.$ and indiidua6 se66in+' Brandin+ re7ers to te assorted strate+ies o7 pro,otin+ te

product$ rand$ or co,pan.'

➢ !ro,otiona6 strate+. 2pus$ pu66$ etc3➢ Adertisin+

➢

!ersona6 se66in+ / sa6es 7orce➢ #a6es pro,otions

➢ !u6ic re6ations / pu6icit.➢ Maretin+ co,,unications ud+et

A66 te > ,aretin+ pKs are a6so nown as te ,aretin+ ,i 7urter,ore are 7re


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Curr!nt an6 Futur! Mar7!t Strat!0i!s



27/31

● Desi+n s,a66 cars suita6e 7or te Indian conditions as a strate+. to eat te sti77

co,petition wit te entr. o7 +6oa6 auto ,aers'

● Co,pan. wou6d capita6ise on #u0ui;s researc and dee6op,ent capai6ities and

interna6 resources to 7inance its epansion$ tere. cusionin+ itse67 7ro, te i+er interest rates and orrowin+ costs and eco,e cost co,petitie'

● Co,pan.;s p6an to sta. awa. 7ro, te u6tra 6ow-cost se+,ent'

● Maruti #u0ui is 6ooin+ to ,ae India an ec6usie ase to ,anu7acture s,a66

cars 7or "urope'

Com*!titi! A6anta0! o9 MUL

➢ Dea6er networ across te countr. wide dea6ersip networ a66ows te co,pan.

to serice custo,ers oer a wider +eo+rapica6 area tan co,petitors' Current6.$ MUL

as % sa6es out6ets tat coer @1( cities$ as co,pared to 1&( out6ets o7 :.undai Motors

and 1> out6ets o7 Tata Motors'

➢ True *a6ue Operations MUL proidin+ its custo,ers an opportunit. to resa6e teir

car to MUL or ecan+e wit a new Maruti car under its True *a6ue networ as

proen rea66. ene7icia6' In 5Y4 True *a6ue networ touced 1 units a ,ont and

,ore tan 9? o7 tat resu6ted in te ecan+e o7 a new car'

➢ !resence across se+,ents In a car ,anu7acturin+ p6ant$ te press sop$ paint sop$

en+ine and trans,ission asse,6.$ and ,acine sop are used 7or ,anu7acturin+

di77erent ,ode6s'

➢ Co,,ona6it. o7 p6at7or,s-Co,,ona6it. etween te p6at7or,s o7 arious

,ode6s 6ead to 6ower product dee6op,ent e77orts and i+er ene7its o7 econo,ies o7

sca6e$ uses on6. two p6at7or,s' #tron+ support in R / D and !roduct 7ro, parent -MUL;s

stren+t 6ies in te stron+ parenta+e o7 #MC$ )apan'

Maruti SuHu7i


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o (' #u0ui internationa66. nown 7or #,a66 cars'

o @' Launc o7 For6d c6ass


29/31

Mo6ul! -: Strat!0% Im*l!m!ntation

Co,petitie #trate+ies o7 a ,aret 6eaderIn an e77ort to counter co,petition 7ro, 6oca6 and 7orei+n p6a.ers$ Maruti started restructurin+ its

operations' Te continuous dec6ine in ,aret sare and sa6es 7orced te co,pan. to retin itsstrate+. and 7or,u6ate a new co,petitie strate+.' Maruti up+raded its ,anu7acturin+ 7aci6itiesto ,eet te 7orei+n ca66en+e wit its c6ai,s o7 i+-end tecno6o+.' It roadened its product

port7o6io and epanded its sa6es and serice networ to reac a66 oer India' Fitin a .ear o7 its

6aunc o7 its Ca66en+e % p6an$ MarutiKs restructurin+ e77orts started re76ectin+ in its 7inancia6 per7or,ance' In te 7inancia6 .ear (@->$ Maruti reported a (%'( percent increase in net sa6es

to Rs 9'81 i66ion as co,pared to Rs 4('%@ i66ion in te precedin+ 7isca6 .ear' Te net pro7it o7

te co,pan. 7or (@-> a6so increased 7ro, Rs 1'>& i66ion in 7isca6 ((-@ to Rs %'>( i66ionin 7isca6 (@->' Te co,pan. was a6e to increase its net pro7it ridin+ on te i+ sa6es +rowt

o7 A6to$ wic increased . oer 1@ per cent in 7isca6 (@-> as co,pared to 7isca6 ((-@'

Corporate GoernanceIn India$ KCorporate GoernanceK standards 7or 6isted co,panies are stipu6ated . #ecurities and

"can+e Board o7 India 2 #"BI3 trou+ a specia6 proision- C6ause >9 o7 te Listin+A+ree,ent 'As a conscious and i+i6ant or+ani0ation$ Maruti #u0ui ad initiated +ood

KCorporate GoernanceK practices een e7ore C6ause >9 eca,e app6ica6e and tese practices

7or, an inte+ra6 part o7 te co,pan.;s +oernance cu6ture' Te Co,pan. stries to 7oster acorporate cu6ture in wic i+ standards o7 etica6 eaior$ indiidua6 accountai6it. and

transparent disc6osure are in+rained in a66 its usiness dea6in+s and sared . its Board o7

Directors$ Mana+e,ent and ",p6o.ees'Te Co,pan. as esta6ised s.ste,s / procedures to ensure tat its Board o7 Directors is we66-

in7or,ed and we66-e


30/31

Te ro6e o7 te C#R depart,ent is to pro7essiona6i0e C#R actiities in Maruti #u0ui and

stren+ten te ,ecanis,s ino6in+ te actiities' #i+ni7icant e77orts ae een taen to

contriute to societ. at 6ar+e$ trou+ its corporate actiities$ especia66. in te areas o7 Road#a7et. and *ocationa6 Trainin+' Maruti #u0ui as set up dedicated tea,s wit re


31/31

i,proe,ent$ autenticit. o7 data and reportin+'

Co,pan. wi66 ,onitor te pro+ress on arious C#R pro+ra,s in a structured ,anne

te per7or,ance a+ainst te set

tar+ets and pu6is a report eer. .ear on its C#R per7or,ance and sare w

staeo6ders'

Modu6e 8 #trate+ic Reiew and Audit

#tae :o6ders

➢ ",p6o.ees and teir 7a,i6ies➢ Custo,ers and teir 7a,i6ies

➢ #areo6ders and inestors'➢ Dea6ers #upp6iers and oter Business partners'

➢ Loca6 co,,unit. and societ.➢ "niron,ent and re+u6ator. autorities

Operations ,ana+e,ent at ,aruti #u0ui

Maruti Ud.o+ Ltd 2Maruti3$ a =oint enture etween #u0ui Motors o7 )apan 2e6eent 6ar+est

eic6e ,anu7acturer in te wor6d and te 7ourt 6ar+est ,anu7acturer in )apan3 and te Indian+oern,ent$ is te 6eader in IndiaKs auto,oi6e ,aret' Maruti as te widest product ran+e

a,on+ Indian car ,anu7acturers$ wit ten asic ,ode6s and ,ore tan % ariants' In (@$

Maruti produced @%9$9& eic6es$ operatin+ at a capacit. uti6isation o7 1@?$ a+ainst teindustr. aera+e o7 %4'8?' "en tou+ Maruti is we66 aead o7 its oter ria6s$ its ,aret sare

as een dec6inin+' As co,petition intensi7ies$ Maruti as rea6ised te i,portance o7 +ettin+

c6oser to its custo,ers' Te co,pan. as 6aunced arious initiaties to i,proe custo,er serice' Maruti as i,proed its operationa6 e77icienc. . increasin+ productiit.$ cuttin+ costsand 6auncin+ new products' B. its

copyofterm paper on strategic management of maruti suzuki.doc

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