UNDERSTANDING STRATEGIC MANAGEMENT
This report aims to analyze the strategic management of Asian Paints which is the third largest paint company in India. Since its foundation in 1942, the company has come a long way and today it operates in 17 countries and has 25 paint manufacturing facilities in the world. The company has attained success in the Indian market due to introduction of innovative concepts like Color Worlds, Home Solutions, Color Next and Kid’s world ahead of its competitors. Paint segment is divided into two sectors which include architectural and industrial. The report starts with analysis of profile of Asian Paints along with analysis of its mission and vision in Indian market. The later part of the report deals with external environment analysis through the use of PEST framework and Porter’s five forces analysis. Then the internal environment of company has been discussed by using SWOT framework. As financial resources bear considerable importance for the company, an analysis of financial resources of the company has been carried out using tool of ratio analysis. The evaluation of strategies has been done through the use of Ansoff matrix and Generic Strategies analysis. At the end, recommendations have been made to initiate increase in revenue and profitability of the company.
Company Introduction and Mission and Vision – Asian Paints
Asian Paints was founded in 1942 and today due to offer of innovative products; it has become the third largets paint company in Asia (Asian Paints 2013a). The company has a turnover of Rs. 109.70 billion. The company operates in 17 countries and has 25 paint manufacturing facilities in th...
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...s to the consumers which will motivate them to purchase products from the company
Asian Paints (2013a), Company information, available at http://en.wikipedia.org/wiki/Asian_Paints, retrieved on November 26, 2013.
Asian Paints (2013b), Company profile, available at http://www.asianpaints.com/corporate_information/company.aspx, retrieved on November 28, 2013.
Asian Paints (2013c), Company Annual Report 2012-13, available at http://www.asianpaints.com/pdfs/company-info/investors/financial_results/AR12-13.pdf, retrieved on November 28, 2013.
Collis D.J. and Montgomery C.A. (2004), Corporate Strategy: A resource-based approach, 2nd edition, McGraw-Hill
Lynch R. (2009), Strategic Management, 5th Edition, FT Prentice Hall
Porter, M.E. (1990), The Competitive Advantage of Nations, The Free Press, NY.
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