Strategic Audit On Maruti Suzuki Ltd By Kanishq Baweja
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Contents Executive Executive Summary................................ Summary................................................... ....................................... ........................................ ............................. ......... 3 Introduction.............. Introduction.................................. ........................................ ....................................... .......................................................... ....................................... 4 Key success actors............................................. actors................................................................. .............................................. ................................... ......... ! Externa" Ana"ysis........................ Ana"ysis........................................... ....................................... ........................................ ................................. ..................... ........ # $ES%EL Ana"ysis........................... Ana"ysis............................................... ....................................... ................................... .............................. .................... ...... # S&O% Ana"ysis.......................... Ana"ysis.............................................. ....................................... .................................... ................................ ...................... ....... ' $orter(s $orter(s ! )orce )orce Ana"ysis.......................................... Ana"ysis................................................................................ ............................................... ......... * Industry "ie +yc"e................................. +yc"e..................................................... ........................................ ........................................ ........................... ....... , +om-etitor Ana"ysis................................... Ana"ysis....................................................... ................................................ ....................................... ........... 1 Interna" Ana"ysis......................... Ana"ysis............................................. ....................................... ....................................... ................................ ................... ....... 1/ 0esource 0esource ased 2ie.......................... 2ie.............................................. ....................................................... .............................................. ........... 1/ 2a"ue +ain............................... +ain.................................................. ....................................... ............................................ ..................................... ............. 13 $rimary activities at Maruti Suzuki..................................... Suzuki..................................................................... ................................ 13 Secondary activities at Maruti Suzuki................................................................1, +5 matrix................................. matrix..................................................... ........................................ ....................................................... ................................... /4 +onc"usion6.................... +onc"usion6........................................ ........................................ ........................................ ................................................... ............................... /! i7"iogra-y................... i7"iogra-y....................................... ....................................... ....................................... .................................. ............................ ................. ... /#
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EXECUTIVE SUMMARY Maruti Suzuki is a car manufacturing company in India and internationally. Maruti Suzuki is the joint venture between Maruti Udyog and Suzuki which is a Japanese automobile manufacturing company. In this report we studied and analysis the internal and eternal environment. !e have studied S!"# $ #"!S analysis of Maruti Suzuki. #here is some critical success factor which is important for every company. Maruti Suzuki also has some critical success full factor which makes company success full we have studied all these critical success factors. In this report we have studied %ompany &'S#() analysis* market analysis* &orter five forces* and industry analysis. Market share and profit is very important for every company in market analysis we have analysis the market share with the competitors. (ccording to the competitive matri Maruti Suzuki having the more market share and profit in the market in compression of competitors. !e have studied and analysis in +%, matri where this company come and which product come there are four step -uestion marks* Star. %ash %ow* og. Maruti Suzuki have different product in different step in the +%, matri. So we can say that Maruti Suzuki is good company and growing fast. Maruti Suzuki is getting maimum profit and market share in the economy.
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INTRODUCTION Maruti Suzuki India limited is a secondary company of Japanese automobile and motorcycle manufacturer Suzuki. #he company manufactures complete range of cars and bikes like in starting Maruti offers Maruti /00* (lto* 1itz* (2Star* swift* !agon21* 'stillo and Sports Utility vehicle ,rand 3itara etc. Maruti Udyog )imited %ompany establish in 45/4. #he head6uarters of Maruti Udyog )imited is in 7ew elhi in India. Shinzo 7akanishi is the Managing irector and %'" of Maruti Udyog )imited. It was the first company to sell millions cars and mass production in India. Vision & Core Va!es"#
8#he leader in the India (utomobile Industry* %reating %ustomer elight and shareholder9s !ealth* a &ride of India:.
%reativity and Innovation ,ood 7etworking and partnership "penness $ learning ;ast* ;leible $ ;irst Mover
Mission"#
8#o provide maimum value for money to their customers through continuous improvement of products and services:.
O$je%i'e & (oas"#
,ood %ustomers relations &rovide ,ood 6uality product and services +ecome a global leader in automobile
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KEY SUCCESS )ACTORS a< #echnology2 1esearch $ eveloping* Innovating* (pplying new features and Japanese • collaboration. Internationally well known for small cars. • Introducing of world class best -uality cars • b< Manufacturing2 Manufacture 'cellence have around four bases there are i %ost=2 %ost manager is controls the cost of product ii -uality=2&roduction of cars with good -uality* without any complaints. ifferent models are designing for Indian market. • %ost leadership in the market due to efficient value cha in and • manufacturing plants. c< istributions2 %ompany9s vast dealership network. • ;rom outlets increased to >00 car sales. • )argest organized pre2owned car sales network in India. • d< Marketing2 'ntry level with Maruti /00* (lto to stylish hatchback (2Star etc. • (dvertisement is totally to the need of Indian culture. • e< Skills and %apability Service network had many outlets including dealer workshop as well as Maruti authorized service stations covering 4??0 cities. Co*+eii'e A,'ana-es"#
( ealer network across the country = ealership can do service customer. • @00 sales outlets that covers A4?cities. • + #rue value operations= %ustomer can resale their car to company like echange with getting new Maruti • car. % &resence across segments= ifferent manufacturing models a presence across various segments.
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EXTERNA. ANA.YSIS
PESTEL Analysis • •
• • •
• •
• • •
• •
/oii%a )a%or" ,overnment concessions ,overnment regulation and support E%ono*i% )a%or" Suzuki holding @B.?C Maruti made I&" 7ew player entry So%ia 0a%or" >./ Million population annual income is greater than 4? )akh life style differences in urban India Te%hnoo-i%a 0a%or" #echnological transfer evelopment of new models change in environmental .e-a )a%or" 1$ (ctivity 1elatively high import duties En'iron*ena Anaysis" Indian automotive regulations are closely aligned to world standards on emission • •
$ safety. &roimity to major eport markets
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SWOT Analysis "pportunities= istribution network is well established Indian markets are well analyzed and understood %apability to devise products with differentiating features +rand image is well established #hey have eperience and are updated with the technology #hreats= Second hand cars are the competition #hreats from %hinese car production units Stiff competition from local and other country players #here is a rise in the customers9 epectations 1aw material rising cost
Strength=
Improved purchasing capacity of Indian Middle class category ,overnment ta benefits #here is low labor cost Monetary assistance is provided by the government #here is a huge potential market
!eakness= )ow eperience with foreign market &oor infrastructure %omparatively new to diesel car making unit Investments are low in the research and development )ow in production
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Porter’s 5 Force Analysis
#hreat of new 'ntrants= Unfavorable
#he bargaining power of buyersDcustomers= Unfavorable
#he threat of substitute products= Unfavorable #he bargaining power suppliers have= ;avorable
#he rivalry among competitors= Unfavorable
Cor+orae (o'ernan%e"
It has good corporate governance. #hey worked towards develop the trust with shareholders* suppliers* customers* employees based on the integrity* principles of good corporate governance* transparency* fairness* disclosure* (ccountability and commitment to values. %S1= It is serves corporate social responsibility* • •
1oad safety 3ocational training
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Industry life Cycle In the Industry life cycle Maruti Suzuki stands at the ,rowth stage.
Maruti
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Competitor Analysis )eader of Indian (utomobile Market shares are followings (< Maruti Udyog )imited EA@C< +< #ata Motors E??C< %< Fyundai Motors E4@C< < Mahindra $ Mahindra E40C< '< #oyota E40C< ;< "thers E/C<
Indian Automobile ar!et S"are#$% Maruti 9dyog %A%A Moters :yundai Ma4indra ; Ma4indra %oyota *8 1.8 3!8 1.8 Ot4ers
1!8 //8
Ne Saes & /ro0i"#
&et Sales 's millions 3#1=/*/
4= /*,=!*!
3= /= 14!=,//
1'*=#3
>et Sa"es
/3=!*3
1=
/#<' /'<* /*<, /,<1 /1<11
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Pro(t 's illions 3= /!= /= 1!= 1= !=
/4=,'# 1!=#/ 1'=3*
//=**# $ro?t 0s Mi""ions
1/=1*'
/#<' /'<* /*<, /,<1 /1<11
(ccording to the bar chart Maruti Suzuki has the highest net sales in the year ?040244 the data shows it has earned 1s A>4*?/? Million and total profit in the year of ?040244 is ??*//> Million so companies is growing fast and getting highest profit. So!r%e" # http=DDwww.marutisuzuki.comDcompany2at2a2glance.asp
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INTERNA. ANA.YSIS
'esource )ased *ie+ %ore competence= 2 • •
!ide range of models. 7ational presence
%ore values= 2 • • • • •
%ostumer obsession ;ast* ;leible Innovation and %reativity 7etworking and &artnership "penness $ learning
1esource= 2 ( #angible= 1aw materials. • ifferent model cars are producing for that model has different cost. • +ig Infrastructure +uildings • ,ood ;inancial 1esource because of 7o.4 selling car company in India • ,ood $ high Machineries to produce the car with limited time • + Intangible= Services. • 'perienced 'mploys. • ,ood skilled good skilled employs. • % "rganizational iesel 'ngines Sourced from fiat • &etrol engines from Suzuki • Fuge +rand '6uity • Major sub brands like Swift* (lto* zire etc. •
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*alue C"ain
Primary acti,ities at aruti Su-u!i I12In$o!n, .o-isi%s
Inbound )ogistics i.e. the receiving and warehousing of raw materials* and their distribution to manufacturing. Maruti Suzuki9s inputs primarily comprise raw materials and purchased components. 1aw material includes rubber* glass* steel* plastic* aluminum. #yre* windshields* and airbags are eample of parts or components. #he company has implemented tier2ization of suppliers and 3!s in Ti*e supply logistics. Uniq!e )ea!res"
In order to improve 6uality and generate economies of scale* MU) has reduced the number of vendors of components in India from AG0 as of March A4* ?000 to about 400 13
as in ?00@. +y lowering the time and cost involved in dealing with more vendors* they have increased their supply chain efficiencies In case of repair and replacements* costs of defective components supplied are borne by the vendor. Information systems 2 3endors are linked through the Internet2based information network* which maintains online information regarding order status and deliver y instructions. #hese have helped in reducing both inventory levels and lead times re6uired for the supply of various components.
#he %ompany worked hard along with its vendors on cost reduction initiatives. #he key initiative was a raw material yield improvement program with a micro focus on each component on the lines of Suzuki philosophy. %alled 8"ne %omponent "ne ,ram:* this program calls for weight reduction of one gram for every component. !ith this micro focus* the raw material yield improvement savings increased by a factor of three in ?005 as compared to ?00/. #he material cost to net sales reduced from 50C in ?000204 to G5C in ?00/205* partly due to eternal factors but largely due to cost reduction efforts.
#he company has instituted sustainable practices in its relationship with vendors like communicating realistic volumes to avoid ecess capacities and inventories and making 6uick payments to facilitate healthy cash flows and financial discipline.
#o reduce supply bottle necks* transport related uncertainties* high in2transit inventories Erelated to long distance transport< and ultimately its total inventory levels* Maruti2Suzuki creates incentives for far away suppliers to move near its plant. #hese incentives comprise= setting up a supplier park with ecellent on2site infrastructureH offering subsidized* well located and industrially developed landH sales ta concessionsH and reliable power supply generated by Maruti2Suzuki itself.
"ver G>C of the company9s ?B> suppliers are located within 400 kilometers of radius. #his has facilitated cost reduction in supply chain.
#he JI# system has evolved over the last ?@ years in the company from monthly scheduling to daily scheduling of parts order and finally in ?00A the release of schedules on hourly systems* a practice that aids in maintaining less than two hours inventory of components within the company.
Maruti2Suzuki gets involved in establishing suppliers* supplier J3s with local suppliers and asks Japanese suppliers to do the same. ;or instance* Maruti Suzuki formed a joint venture with ;utaba Industrial %o.* )td. E;utaba< for manufacture of 'haust Systems %omponents E'S%s<. ;utaba is the largest manufacturer of 'S%s in Japan and has operations in many countries. #his joint venture will ensure supply of high 6uality 'S%s to the %ompany at lower cost.
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II12 O+eraions
#ransform inputs into final product form through machining* packaging* assembly* e6uipment maintenance* testing* printing and facility operations. &roduction process at Maruti Suzuki=
Maruti Suzuki9s manufacturing facility consists of fully integrated plants with fleible assembly lines located at ,urgaon. #he scale and compleity of the %ompanys manufacturing operations have now moved to a different league. #he %ompany reached a capacity of one million cars annual production in ?00/ and was also able to operate at this average rate in the month of March* ?005.
Maruti Suzuki has implemented &roduction Management System* which is a strategy to achieve Manufacturing 'cellence evolved through participative approach. &MS is
( system which is people driven and ensures involvement of all levels E Managers* 'ecutives* Supervisors <
( system which ensures ownership
( system which brings in standardization of systems $ processes
( system which ensures Sustainability
Maruti &roduction System or M&S draws learnings from its parent company Suzuki Motor %orporations concepts on lean manufacturing under Suzuki &roduction System i.e. S&S. Setting trends in new products and achieving customer delight starts with Manufacturing 'cellence and Marutis manufacturing ecellence hinges around four important pillars2%ost* -uality* Safety and &roductivity.
Cos 'very employee working on the line is %ost Sensitive and functions in capacity of a %ost Manager. Fe is a key contributor in suggesting how to keep costs of production under control.
Maruti Suzuki initiated a program called 8%hallenge @0=A0: whereby cost was reduced by A0C and productivity was improved by almost @0C during the A years ending March ?00>.
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4!aiy ( product of poor 6uality re6uires repeated inspections* entails wastage in terms of repairs and replacements. Ko it right first timeK* is the principle followed to avoid wastage.
iii12 O!$o!n, .o-isi%s
(re the activities re6uired to get the finished product to the customer* including collecting* storing* physically distributing* material handling* delivery vehicle operation* order processing and scheduling. #he %ompany has jointly developed with the Indian 1ailways* special (uto !agons* to support a high capacity* high speed and safe car transportation system. #o support its eport shipments* the %ompany commissioned a dedicated 1oll2on 1oll2off car terminal at Mundra sea port in partnership with M&S'L) EMundra &ort and Special 'conomic Lone )imited<. +uilt with an initial investment of 1s 4 billion* of which the %ompanys share is B0C* the mega car terminal houses a state2of2the2art !ashing and !aing Inspection center* a car stockyard and a parking area. i'12 Mar5ein- an, Saes
&rovide means by which buyers can purchase the product and inducing them to do so* such as advertising* promotion* sales force* 6uoting* channel selection* channel relations* and pricing. Maruti9s marketing objective is to continually offer the customer new products and services that= 4 1educe the customer9s cost of ownership of our carsH and ? (nticipate and address the customer9s needs and preferences in all aspects and stages of car ownership EM(1U#I SULUI refers to this as the 8A>0 degree customer eperience:
Maruti Suzuki has been aggressively cutting prices of its models. #he rationale behind the
price cuts is the focus on offering new upgraded vehicles at a low price. Maruti Suzuki offers a two2year warranty on all the vehicles at the time of sale. #he
dealers are re6uired to address any claim made by a customer* in accordance with practices and procedures prescribed by M(1U#I SULUI* under the provisions of the warranty in force at that time. M(1U#I SULUI also offers an etended paid2warranty program marketed under the brand* 8;orever Nours: for the third and fourth year after purchase. #he etended 1#
warranty program is intended to maintain the dealer9s contact with the customer and increase the revenue generated from sale of spares* accessories and automobile2related services. (n effort is made during the period of the etended warranty to encourage the customer to echange his eisting. 8Maruti car for a new Maruti car or upgrade to a new Maruti car:.
#rue 3alue Solutions )imited E#3S)<* which was incorporated on January 4B* ?00? as a wholly owned subsidiary of Maruti* provides value2added services to owners and users of motor vehicles on matters relating to manpower services with regard to recruitment* training and development. #he company also intends to promote the business in the areas of pre2owned cars* lease and fleet management* finance and insurance.
Saes newor5 M(1U#I SULUI has the largest network of dealers amongst car manufacturers in
India. Sales network is linked with the M(1U#I SULUI through the secure etranet based information network. #he sales of spares* accessories and (utomobile related services such as insurance and
finance serve as additional sources of revenue for the dealers. #he availability of these related products and services at sales outlets also helps to attract
customers to the outlets and promotes sales of the cars. M(1U#I SULUI dealers provide services to customers such as pre delivery inspection
of vehicles* sales of cars* after sales service* supply of spare parts and other services that promote sales of cars within the territory for which they are appointed. #he performance of the dealers is followed and improvements are suggested fre6uently. In order to assist the dealers in enhancing their performance and capabilities* M(1U#I SULUI has introduced a concept of 8+alanced Scorecard:. Using this tool* the performance of a dealership in several areas of operations* including sales* service* spares and accessories* financial management and management systems is measured. ealers who perform well on the 8+alanced Scorecard: are reward with a cash payment at the end of the fiscal year. #he 8+alanced Scorecard: serves as an effective incentive for dealers to enhance their performance.
Disri$!ion newor5" Maruti Suzuki is one of the companies in India which has a huge distribution network. #oday it has /0? dealerships across @@@ towns and cities in India. #o ensure proper after sales service Maruti Suzuki has ?*GB0 workshops Eincluding dealer workshops and Maruti (uthorized Service Stations< in 4*AA@ towns and cities. It has A0 'press Service Stations on A0 7ational Fighways across 4*A4B cities in India. '12 Ser'i%e
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(ims to enhance or maintain the value of the product* such as installation* repair* training* parts supply* and product adjustment
"ver the last few years* the company strengthened the eisting practices and eperimented with many new initiatives by way of kaizens Econtinuous improvements< to delight its customers. #hese initiatives ranged from product design and 6uality to network epansion* and included new service programs to meet unsaid needs of customers.
#here are more than B00 Maruti dealer workshops and more than 4*@00 Maruti
(uthorized Service Stations* covering more than 500 cities in India. In addition* ?B2hour mobile service is also offered under the brand 8Maruti "n road Service:. (s a benchmark for dealers with respect to service 6uality and infrastructure facilities* M(1U#I SULUI has launched service stations under the brand 8Maruti Service Masters or MSMs. M(1U#I SULUI also has service stations on highways in India under the brand
8'press Service Stations:. #o promote sales of spare parts and the availability of high 6uality* reliable spare parts for its products* spares are sold under the brand name 8Maruti ,enuine &arts:* or M,&. #hese are distributed through the dealer network and through the authorized sellers of the spare parts. Many of the Service Stations are at remote locations where M(1U#I SULUI does not
have dealers. Some of these Service Stations are integrated into the sales process in order to increase sales of the cars and related products and services such as spares and accessories* insurance and financing. In recent years* the %ompany has used I# to enhance interface with the customer. It has deployed a world class ealer Management Solution across its vast network of dealers throughout the country. #he solution has helped dealer managements to access a wide range of information about their operations* as also cu stomer satisfaction and feedback.
Key Iniiai'es
%ar pickup $ delivery facility for women car owners Sein- !+ 6E7+ress Ser'i%e Bays6 & 68 # Te%hni%ian Bays6
(s the name suggests the company set out to delight its customers by offering them faster car service by introducing new concepts such as 'press Service +ays $ ?2 #echnicians +ays. #hese are done for customers who are hard pressed for time. Me-a Ca*+s
#he company aggressively conducts Mega %amps throughout the country round the year. (ctivities undertaken during a mega camp include complimentary car wash* (% $ &ollution checkup* oil and fuel top ups* wheel alignments etc. 1*
Ser'i%e a yo!r Door Se+ hro!-h Mar!i Mo$ie S!++or
(nother uni6ue initiative is the door step service facility through Maruti Mobile Support. Maruti Mobile Support is a first of its kind initiative and is epected not only to help the company reach out customers in metro cities but also as a mean to reach semi urban Drural areas where setting up of new workshop may not be viable. Car Sa0ey ,e'i%e" I**o$ii9er
#he company used technology to meet customer needs and even delight them. ;ollowing feedback that the companys cars were more prone to theft owing to their resale value* the company worked on an anti2theft immobilizer or KI2%atsHK system for all its new cars.
Co*+ee %ar nee,s
#he companys effort of providing all car2related needs 22 from learning to drive a car at Maruti riving Schools to car insurance* etended warranty and eventually echanging the eisting car for a new one 22 under one roof at dealerships also enhances customer satisfaction.
The .ow Cos Mainenan%e A,'ana-e
( car may be affordable to buy* it may not necessarily be affordable to maintain* as some of its regularly used spare parts may be priced 6uite steeply. 7ot so in the case of a Maruti Suzuki. It is in the economy segment that the affordability of spares is most competitive* and it is here where Maruti Suzuki shines.
Secondary acti,ities at aruti Su-u!i I12/ro%!re*en
#he function of purchasing raw materials and other inputs used in the firm9s value creating activities.
(bout three fourth of the car* by value* is outsourced. (ny improvement in the car in terms of technology and design* 6uality or cost has to essentially include the %ompanys vendors and their support. In the year ?00G20/* the %ompany signed two joint venture agreements with global component manufacturers for cost reduction through localization of components for Maruti Suzuki cars. #he %ompany is setting up a Suppliers &ark in Manesar* close to its car plant on an area of 4 00 acres for Just2In2#ime supplies.
In the early eighties* the %ompany made significant efforts in trying to develop a component industry from ground zero. "ver the net two decades* about 440 foreign technology collaborations were facilitated and Maruti Suzuki engineers worked closely 1,
with the vendors engineers to enable to deliver cars which are both high 6uality and cost competitive. 7ow* the relationship has matured and most direct vendors or #ier 4 vendors are competent enough to work on their improvement* but there is major scope for modernization of some sections of #ier ? vendors. #he %ompany has identified this as an opportunity for further 6uality* up gradation and cost reduction.
#he second focus area for component cost reduction is raw material yield improvement across all manufacturing processes* like sheet metal* castings* forgings and machining. 'very component is studied in detail and innovative ideas are tried* to reduce the input material weight for the same component output. #he total cost of raw material as a percentage of net sales ranges from 4@C to ?0C.
II12 Te%hnoo-y De'eo+*en
#echnology development includes research and development* process automation* and other technology development used to support the value chain. Resear%h & De'eo+*en :R&D2
uring ?00/* the %ompany took decisive steps towards building design and development capability* in2house. #he number of engineers in 1 $ went up from ?@/* at the start of the year* to A5/ engineers by the end of the year. In line with this* the number of engineers will be scaled up to 4000 by ?040. Specific areas in which 1$ has been carried out by the company= •
+uilding ;ull Mode %hange %apability 3ehicle esign and evelopment
Te%hnoo-y a$sor+ion; a,a+aion an, inno'aion •
)ocalization* development and testing of parts for eisting and new models.
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%apabilities strengthened in component and vehicle evaluation* benchmarking and design optimization.
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%apabilities being further strengthened in area of alternative fuels like iesel* %7, and )&,.
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3alue (nalysisD3alue 'ngineering E3( O3'< at the time of design and localization to maimize cost benefit.
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(c6uiring design and cost knowledge through teardown and benchmarking and using it in future designs and cost reduction.
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,lobal sourcing and advanced sourcing to get the advanced technologies into India at lower costs. E'fforts made towards technology absorption* adaptation and innovation by either local vendors or helping world2leading component suppliers to set up shop in India<.
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esign and development of electronic speedometers* keyless alarm controllers for enhancing comfort and convenience.
Bene0is ,eri'e, 0ro* a$o'e e00ors •
Indigenization of various vehicle aggregates at lower costs.
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Improvement and up2gradation of eisting models for improved comfort* style and better value for money.
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%ontinuous reduction in product cost through 3(23'.
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%ompliance to new regulations. 2 Significant cost reduction of new model parts compared to eisting models* ensuring that the new models are profitable from day one.
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Significant cost reduction obtained in eisting models.
III12
#he %ompanys key strength is its human capital. #he %ompany has* during ?00G20/* spent about 1s.40 crores on training of its employees. #he %ompany conducts programs such as K+ulandiK and K%hunautiK for the workmen and technicians to enhance pride in being an employee of the %ompany and also to create team synergy. (t the middle management level* the focus of the programs is to inculcate leadership 6ualities while at the irector level* one or more retreats take place so that the irectors can unwind and take a detached view of self2development and the organization.
#he %ompany goes further and trains its dealers and vendors workforce. A?00 programs have been conducted covering more than 4A000 dealers sales persons. #he %ompanys KMaruti %entre of 'cellenceK EM(%'< is a team dedicated to the development of vendors employees. In programs like K;amily %onnectK and K&arivar MilanK* family members of the employees are invited to interact with top management to get a feel of the workplace and environment. #he idea is to develop better understanding and increase the /1
support and co2operation for the employees from their families. #he outbound training programs E"+#< encourage learning while having fun. #he training encourages team work and teams come back fully motivated to face future challenges.
#he %ompany strengthened the concept of Stay Interviews Eas opposed to eit interviews
#he Suggestions Scheme* which is as old as the %ompany* continued to make a significant contribution to business performance. 'mployees implemented a record 40/*//@ suggestions during ?00G20/* as against /@*B?/ suggestions received previous year. #his has led to net savings of worth 1s. >>> million in ?00G20/ as against 1s. @05 million in ?00>20G.
Industrial 1elations were cordial throughout the year and no man days were lost on account of strikes or disruptions.
IV12 )ir* In0rasr!%!re
;irm infrastructure consists of general management* planning* finance* accounting* legal* government affairs and 6uality management
#he %ompany has again been awarded IS"= ?G004 %ertification by S#-% irectorate EStandardization* #esting $ -uality %ertificate<* Ministry of %ommunications and Information #echnology* ,overnment of India after re2assessment. #he %ompany is thus certified to meet international standards for maintaining information security.
Maruti Suzuki has two state2of2the2art manufacturing facilities in India. #he first facility is at ,urgaon spread over A00 acres and the other facility is at Manesar* spread over >00 acres in 7orth India. Maruti Suzukis facility in ,urgaon houses three fully integrated plants. #ogether the three plants have an installed capacity of around G00*000 units.
Maruti Suzuki was certified with IS"= 5004=?000 in ?004 and aim to achieve the #S2 4>5B5 certification. In addition* it had made the following improvements in terms of producing defect2free products=
P ;% "= Maruti Suzuki9s irect ;inal %heck "* or ;% " percentage* which signifies the percentage of vehicles that pass through the inspection stages as defect2free* improved from approimately GGC in March ?00? to approimately 50C in March?00B. P 1eduction in rejection= Maruti Suzuki9s in2process rejection cost per vehicle* computed as the ratio of E4< the cost of components rejected due to defects arising during our production process*
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to E?< the number of vehicles sold* declined by approimately >@C from fiscal ?00? to fiscal ?00B. P In house warranty= Maruti Suzuki9s in2house warranty costs per vehicle* computed as the ratio of E4< the aggregate cost of components incurred by us to service warranty claims arising from operational defects in our manufacturing lines* to E?< the numbers of vehicles sold in the fiscal year* declined by approimately /@C between fiscal ?00? and fiscal ?00B. Kai9en
Maruti had adopted the Japanese management concept of aizen* or continuous improvement. #he aizen activities had resulted in the improvement of the in2house capabilities. ;or eample* they had manufactured ?@ multi2ais robots and 4> multi2spot welders. ,roup discussions among employees in different departments are conducted on a monthly basis in order to discuss and resolve problems relating to their areas of operation* an activity referred as 6uality circle activity. +ased on the belief that individuals contribute to improvement in growth* there has been a suggestion scheme in which they promote participation of all employees at all levels. #he average number of suggestions made per employee has improved by approimately A@C in fiscal ?00B* when suggestion received were more than /0*000* as compared to fiscal ?00?. Some of the other improvements as a result of the aizen process have been increased automation through automated material transport system.
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)C. matri/ #his is +%, matri eplain about the %ompany products which place in the market according to this below diagram.
S#(1= Figh market growth $ market share* Maruti Suzuki have many products S!I;#* S!I;# 'SI1' this products are good in market and this products are growing fast . -US#I"7= Market growth is high and market share will be low * which products newly entered into the market those position will be -uestion mark like %elerio* S2cross* %iaz this products . ",= Market share $ market growth is low those products are 'eco* 'rtiga. %"!= Market share is high but the market growth is low and products are M(1U#I /00* ()#" (7 !(,7"1.
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CONC.USION" (fter observing all the different factors like S!"# analysis* #"!S analysis* &'S#') analysis and porters five force model* ';' Matri* +%, matri* I;' matri %omparative profile matri* and Market analysis we conclude Maruti Suzuki is performing well in all the factors like technology* cost and their market penetration to all kinds of customers. In this report we have analysis three companies Maruti Suzuki* #(#( and Fyundai. (ccording to competitive profile Matri Maruti Suzuki weighted score is more than others company. Maruti Suzuki has given more preference in market share and product 6uality. Maruti Suzuki is focusing to provide better service and innovative product for the customers. Maruti Suzuki is performing well in all the factors affecting the success.
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BIB.IO(RA/<. Strategy $ society= #he link between competitive advantage and corporate social responsibility. Farvard +usiness 1eview. ec ?00>. p G/ O 5?. @. #homson* (.(. $ Strickland* (.J. E?00G<. Strategic management – Concepts and cases. Mc,raw2Fill. >. %lass &resentation +y 7irmaalya + +iswas. "thers 1esources=2 4< http=DDwww.authorstream.comD&resentationDaS,uest/@4B42/4GB0?2mktg2str2of2maruti2 suzukiD. ?< http=DDwww.authorstream.comD&resentationDkamilshahQ45/>24B0@@@2passenger2car2 industyr2kamil2education2ppt2powerpointD. A< http=DDwww.scribd.comDdocD?0440?4@D'valuation2of2Strategies2;ollowed2by2Maruti2 Suzuki2India2)td. B< http=DDwww.slideshare.netDashishBB/@Dtata2moters2@/@400/. @< http=DDwww.moneycontrol.comDannual2reportDmarutisuzukiindiaDdirectors2reportDMS?B.
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