Question 1: Critically analyze the growth strategy adopted by the Aditya Birla Group. What are your views on the business portfolio adopted by the group? (7 marks) Aditya Birla Group is one of the first multinational corporations in India. Its headquarter is located in Mumbai with many others operations in different parts of the world such as in Asia (Thailand, Singapore, Myanmar, Laos, Indonesia, Philippines, China…), Europe (UK, Germany, Hungary, Italy, France, Luxembourg, Switzerland…), America (US, Brazil…). Throughout their growing, Aditya Birla have become well known in many sectors that they get involved in not only in India but also around the world. Back to the earlier day of the corporation, when it first founded, the group has focused on critical sector such as textiles and fibre, aluminum… and become one of the largest participant in those areas. Later on, in the 1960s, the company had expanded their business into cement and chemicals. Also, they expanded their business across the border of India into many other countries. This “revolution” has brought the name of the group into the international business map and become bigger than ever (Aditya Birla Group 2007). Today, ABG is a corporation with the consolidate revenue of 30bil with the affiliates in 45 countries and 60% of their revenue come from internationally and become one of the largest private company in the world (Aditya Birla Nuvo Limited, 2011). To gain such an outstanding achievement both domestically and internationally, the Aditya Birla Group has adopted two strategies: to diversify their business’s portfolio into a range of sector and to diversify them internationally. Firstly, to reach the first goal, they stepped in many areas such as viscose sta... ... middle of paper ... ...es for more than 40 millions people in the poorest areas in India. They reflect the company’s value and raise the voice of the company in India. Bibliography: Adytia Birla Group India (2007), viewed 26/1/2012, Adytia Birla Nuvo Limited (2011), The chairman’s letter to shareholders, viewed 26/1/2012, < http://www.adityabirlanuvo.com/investors/downloads/Nuvo_Annual_Report_2010-11.pdf > Durke Asset Management SA (nd), The benefit of diversification, Management Mandate Philosophy, viewed 24/1/2012, < http://www.dukre.com/media/en/E5A1BF79-2F6A-4377-8566-316F1634D738/Benefits%20of%20diversification.pdf > http://www.slideshare.net/priyadarshini.7/case-study-on-aditya-birla-group http://www.adityabirla.com/media/press_reports/we_dont_think_success_failure.html
You have asked me to analyze your plans for future growth and recommend the best form of business organization to accommodate that growth. I have also taken into consideration you’re your two main concerns of increased liability and ability to add investment in capital assets.
And finally LVMH diversification strategy (Bernard Arnault) is making acquisitions outside the company’s sector. In sector where they don’t have the “know-how” and don’t match the company Image. The current CEO (Arnault Bernard) is also the major shareholder which makes him easier to make decisions on new acquisitions
In case of new age Indian businesses this is even more true. Businesses are now fixated on being the next Unicorn, a mythical animal, whose name is also given to companies who are valued at a billion dollars before going public. Unicorns or not, their ambition now presumably is to attract the nth round of funding and access the seemingly endless yet slowly drying supply of dollars to survive in the present with a wishful thinking to dominate the future. The Unicorn here lives the narrative of ‘go big or go home’. And in most cases it represents the glorified ambitions of one-upmanship, market domination being the trophy investment.
Local giants do have a strong framework in institutional characteristics, companies like Haier & Kingfisher have political capital, which leads to protecting the local firm against the international MNC’s. Competing in emerging markets for MNC’s is difficult due to the unstable political scenario which ...
Over the last 30 years the world has seen drastic changes in the Chinese way of making business. Nowadays, China has opened its businesses to the rest of the world, especially America and Europe (Teagarden & Cai, 2009). As a result, their economy has increased and the evolution of the companies have changed to be from closed doors to be international and multinational (Teagarden & Cai, 2009). This essay will analyze, first of all, how some Chinese companies have had success abroad, looking at the strategy that they applied to expand and to improve their products. Furthermore, this essay will show examples of successful Chinese firms, such as Lenovo and TCL Group, and how they achieve it.
But divesture of three out of four divisions leads to a very small portfolio which leads to chances of high risks as well. The process of restructuring and forming a better portfolio would provide the firm with a lot many opportunities including exploring newer and more compatible product lines and segments, thus increasing its opportunities to earn better revenues with efficient management.
So, for the future, she must implement his strategies to continue and improve his efficacy and efficiency. To propose achievable strategies, we will use Ansoff matrix. This tool allows to classify and explain the different growth strategies for a company. Ansoff 's Matrix is also known as the market options matrix (Lynch, 2009, p.313) and is designed to identify “the product and market options available to the organization, including the possibility of withdrawal and movement into unrelated markets”. It is represented diagrammatically as follows.
[6] Kripalani, Majeet & Egnardio, Pete. The Rise Of India. Business Week Online. December 8, 2003. http://www.businessweek.com/magazine/content/03_49/b3861001_mz001.htm
Introduction India is the world’s second most populated country with over 1.2 billion people. Since its independence from British rule in 1947, the country has been more or less a stable democracy. Until 1991, Indian governments imposed economic austerity and its markets were comparatively closed to the world. Economic reforms in 1991 brought about a change which made India an attractive and huge market for multinational corporations from all over the world (Joshi 8). Retail industry within a globalized world is one of the most thriving and profitable sectors.
Diversification is where a company grows into new business areas either similar to existing business or different from existing business allowing a firm to create value by creatively using excess resources. Seprod operates in a number of different and distinctive product markets and several businesses using corporate-level strategy. Seprod operates in the fats and oil business, milk and juice and the sugar industry
Most companies have their portfolio of businesses scattered through all four quadrants of the matrix. The success is to achieve balance. The goal of the company must be to maintain position in the cows , but also to remember not to reinvest in them too much. The cash generated by the cash cows should be used as a first priority to maintain or consolidate position in those stars which are not self sustaining.
As a massive provider of consumer goods in India, Hindustan Lever Limited (HLL), is attempting to penetrate the rural markets where there is a massive opportunity for growth. HLL’s current operating sectors are becoming increasingly competitive and crowded. Their best opportunities now lie in developing new markets and rising to the top of that market. They are attempting to do this with a program for developing entrepreneurs, named Shaktis. Met with initial success the program now needs to grow without increasing costs.
India is a nation that is on the move towards becoming one of the leaders in the global economy. While the country still has a long way to go, it is making significant strides towards competition with nations such as the United States and England. Indian leaders have been moving towards "a five-point agenda that includes improving the investment climate; developing a comprehensive WTO strategy; reforming agriculture, food processing, and small-scale industry; eliminating red tape; and instituting better corporate governance" (Cateora & Graham p. 56, 2007). These steps are geared to begin India's transformation from a third world nation into a global economic leader. The current marketing environment in India is in transition, with both similarities and differences in comparison to the marketing environment in the US.
Grant, R. M. (2014). Contemporary Strategy Analysis, text and cases edition. In R. M. Grant, Contemporary Strategy Analysis, 8th edition (pp. 4-30). Chennai:
The company experienced an immense development over the last year which is due to great sales and ...