Maruti Udyog Research Articles

IPOs In Compulsory Demat Mode. How Fair For The Small Investors?

The SEBI ruling requiring issue houses to issue public offerings (IPO's, new issues, etc.) in compulsory demat mode has created an anomaly which keeps the small and long-term investor out of the game. The benefits that would have accrued to small investors are snatched away by the larger & powerful players. The IPOs of banks and companies like Maruti Udyog, NTPC and TV Today etc. had claimed to target the small investor, but the small investor had in fact been a mere conduit to channel the holdings to larger players. This defeated the objective of creating wide-spread public participation and holding in the disinvestment of profitable stocks. Based on actual market study and observations of the author, this case study raises vital and provocative policy issues such as: Who is the beneficiary of IPOs in compulsory dematerialised mode? It also highlights the failure of SEBI (the Securities Exchange Board of India), depositories and the major stock exchanges in addressing the cause of the small and marginal investors beyond lip-service and cosmetic efforts like framing rules for orderly 'development' and 'regulation' of the capital market. This study suggests some practical solutions to correct the anomaly.

Can Maruti Suzuki’s wagonr steer through the repositioning drive?

Case overview Maruti Suzuki India Limited (MSIL), a joint venture between Maruti Udyog Limited, India and Suzuki Motors, Japan, is considering repositioning its WagonR brand amidst issues of overall decline in sales in the automobile industry. With a market share of more than 53%, MSIL is the market leader in passenger vehicle segment in India, yet it is facing difficulties in driving up sales. The company’s portfolio comprises entry-hatch, mid-hatch, premium-hatch, sedan, SUV/MUV, crossover and van. The case dilemma involves the decision that MSIL’s management should take for the repositioning of WagonR, a compact hatchback, at a time when the automobile industry is showing no signs of recovery. Is it opportune to reposition WagonR, given the current situation of the passenger car market in India? If yes, what can MSIL learn from its past positioning efforts and how can it use insights about consumers’ current perceptions of WagonR’s brand image to arrive at a repositioning decision? Leaning objectives Using the case will help address the following objectives: to expose students to the challenges of repositioning an established brand; appreciate the need for and importance of repositioning established brands; evaluate existing positioning and market conditions for making a sound decision; and develop analytical skills that will prepare them to make decisions in real business scenarios. Complexity academic level The study is suitable for Masters level students in courses on Marketing Management, but it can also work well in elective courses such as brand management. Supplementary materials Teaching notes are available for educators only. Subject code CSS 8: Marketing.

A study on evaluation of financial performance of Maruti Udyog Ltd

A study on evaluation of financial performance of Maruti Udyog Ltd

Financial competitiveness of firms: A study of the Indian Automobile Industry

Competitiveness is the ability of firms, to perform better than rivals, where performance is dependent on both financial and non-financial conditions of the firm. This study empirically examined the financial competitiveness of Indian automobile companies, for the period from 2001–02 to 2015–16. Out of 42 variables, 13 factors were extracted and these thirteen factors, put together, explaind 76.122 per cent of the total variance. Factor analysis was applied, to identify the factors that significantly contributed to the financial competitiveness. The result indicated that among the three sectors, passenger cars and multiutility vehicles sector were most dominating, followed by two and three wheelers sector and commercial vehicles sector. The commercial vehicles sector was obviously ruled by Eicher Motors Ltd whereas passenger cars and multi-utility vehicles sector was dominated by Honda Siel Cars India Limited and Maruti Udyog Limited. The result of this study would help consumers, to judge the competitive performance of these firms, from the product quality and investment point of view.

The Tata Nano: The People's Car (Abridged)

This case is an abridged version of UVA-M-0768, Tata Nano: The People's Car (A), and UVA-M-0804, Tata Nano: The People's Car (B). Excerpt UVA-M-0850 Jul. 5, 2013 THE TATA NANO: THE PEOPLE'S CAR (ABRIDGED) Source: © User:High Contrast/Wikimedia Commons/CC-BY-SA-3.0. It was one of the longest-awaited and most-talked-about car debuts in India. On January 10, 2008, Tata Motors unveiled the Nano, a USD2,500 automobile referred to as “the people's car.” Would it live up to the hype? And did its launch signal a new era for the small car market in India? How could Tata ensure the product would be profitable? Measuring 3.1 m by 1.5 m, the Nano displaced Maruti Udyog's Maruti 800 as the world's smallest car, yet its seating room was 21% greater than the 800's—providing ample room for four adults. The Nano was also one of the world's most fuel-efficient cars, getting 52 mpg in the city and 61 mpg on the highway. Touted as the cheapest car in the world, the Nano was scheduled to be available in September 2008. . . .

Achieving Customer Satisfaction through Total Quality Management (TQM): A Case Study of Telecom Sector

In today's competitive scenario, achieving total quality is the key to success. Most of the organisations are emphasizing on Total Quality Management (TQM) in order to provide better quality products and services to customers delivering value for money. After LPG (Liberalization, Privatization and Globalization) one of the major challenges faced by the organizations is competition from MNC's.Challenges Faced by Organisations:Indian organizations are facing a challenge form the inflow of MNCs since the government of India has implemented the process of Liberalization, Privatization and Globalization. In the light of this, they are in dire need of new ideas, approaches & techniques for attaining a competitive edge. TQM is creating a revolution in manufacturing and service organisations throughout the world. Various companies like Motorola, Toyota, Hero Honda, Xerox Corp., Maruti Udyog Ltd., Ashok Leylend, TCS; Telco etc. have initiated radical changes through the implementation of TQM tools & techniques.Challenges under WTO Regime:World Trade Organisation (WTO) is the only international Organisation, which deals with the Global rule of Trade between the nations, and it ensures that the trade flows smoothly, predictably and as fully as possible. Opening up of economies is mainly backed by WTO.Under the WTO regime, tariffs among the member nations will get abolished in near future. India being one of the founder members will certainly face challenges since the products of MNC's and Indian Organisations will be at par and since MNC's provide better quality & variety there are most likely chances for customers to switch over to MNC's products & services.General Agreement on Trade in Services (GATS):By the year 2005, MNC's will be freely entering into service sector also. It will include establishment of foreign universities, colleges etc. in Indian boundaries. This will certainly pose a big challenge. To ensure the survival, Indian Universities & organisations need to be competitive. Measures have already been initiated.

Countering Disruptive Innovation Strategy in Indian Passenger Car Industry: A Case of Maruti Suzuki India Limited

Origin of Indian passenger car industry dates back to the year 1928. First 55 years saw negligible to slow growth in this industry till Maruti Udyog Ltd, later named as Maruti Suzuki India Ltd (MSIL), was incorporated in 1983. The MSIL, through its wide range of cars across different segments spread over 15 brands and over 150 variants, became the leader of the Indian car market during the next two-and-a-half decades. Suddenly, the MSIL showed a significant fall from over half of its share (53.13 per cent) of Indian car market to a market share of 44.9 per cent in the fiscal year 2010–2011, despite robust growth of 21.6 per cent of MSIL in the fiscal year 2010–2011 and a faster industry growth at 34.3 per cent during this fiscal. This declining market share of the leader of Indian car market has been investigated by the authors using industry analysis and reports, Society of Indian Automobile Manufacturers’ reports and publications, media coverage and other secondary sources available in print and web media, and MSIL’s own source for the last five years from 2006–2007 to 2010–2011. The article thus tries to bring out the strategic perspectives of MSIL that helped it reach the top of Indian car market segment and does the environmental scanning to identify factors that dipped it to low. It is found that in the last three years has come about what has been popularized as the ‘disruptive innovation strategy’ in the passenger car industry of India occupying the centre of the wheel. With increasing loss in its market prominence and market share, how does MSILpropose to meet the challenges of survival and sustainability on product price, customization and customer service is the issue of this case.

EVA : A tool for measuring shareholders value creation � A case study of Maruti Udyog Limited

EVA : A tool for measuring shareholders value creation � A case study of Maruti Udyog Limited

Interorganisational systems in an automotive supply network: the Indian case of Maruti Udyog

This paper reports a case study of Interorganisational Systems (IOS) at Maruti Udyog Limited (MUL), which is a major player in the Indian automotive industry. This paper suggests an approach to IOS planning for the automotive industry. It provides new insights into the existing literature on Critical Success Factors (CSFs) in the IOS domain. The paper examines two specific IOS initiatives in the MUL value and supply networks and presents a differentiated analysis of design elements (e.g., relationships, processes, Information Systems (IS) and change issues). It is also a best-practice case of how IOS initiatives can add value to the focal company and its business partners and provides support to the business relevance of interorganisational investments. The research is based on interviews with senior managers, heads of departments, employees and business partners of MUL who have been directly affected in their work. Other sources of information are company documents and publicly available background information.

USER'S PERCEPTION ON SMALL CAR SEGMENT: A STUDY WITH REFERENCE TO CHENNAI

The first motorcar on the streets of India was seen in 1898. Mumbai had its first taxicabs in the early 1900. After fifty years, cars were imported to satisfy the domestic demands. From 1910 to 1920, the automobile industry made a humble beginning by setting-up assembly plants in Mumbai, Kolkatta and Chennai. The imported/assembly of vehicles grew consistently after 1920's, crossing 30,000 marks in 1930. In 1954, the decision of the Government marked a turning point in the history of the Indian Car Industry. The Govt. of India instructed what type of vehicle each manufacturer should make. Therefore, each product was safety cocooned in its own segment with no fears of any impending competition. In 1985, after the entry of Maruti Udyog, the Car makers were given a free hand to fix the prices of Cars, thus, effectively abolishing all controls relating to the pricing of the end product. The importance of the small car segment emerges from the fact that it serves the common man, middle class of India. The small car has become the most common and become popular. The main objective of the survey is to evaluate users opinion, and also to identify the overall capability of small cars. A note of caution when interpreting these findings, which are based on perception of and opinion of small car owners.

Need Behavioural Orientation of Dynamos and Drones in Organizations: A Maruti Experience

Research has recognized the important role of personality in developing and selecting employees and in determining behaviour at workplace. Personality is believed to affect decisionmaking, problem-solving, conflict management, and stress management. This stems from the assumption that role conflicts and organizational stress are also manifestations of the underlying turbulence of one�s personality predispositions. This paper reports the results of the threephase study conducted in Maruti Udyog Limited to understand the different behaviour patterns in workplace. In phase I, secondary data were collected through organizational stress and work motivation questionnaires, and job satisfaction and role conflict scales. In phase II, Dynamos and Drones were identified. Those scoring low on organizational stress, role conflict, and absenteeism and high scores on work motivation, work performance, and job satisfaction were grouped as Dynamos. On the other hand, those obtaining high scores on organizational stress, role conflict, and absenteeism and low scores on work motivation, work performance, and job satisfaction were categorized as Drones. In phase III, the Edwards' Personal Preference Schedule was administered to Dynamos and Drones to compare the need orientation of their behaviour. In order to examine the difference between the Dynamos and the Drones on various need orientation of their personality, t-test was conducted. The results reveal the following: The Dynamos are significantly higher on achievement, order, and autonomy compared to the Drones. Dynamos prefer to participate in friendly groups and form strong attachments. Dynamo's high score on endurance shows that they keep pursuing a job till it is complete. The drones are significantly higher on aggression and heterosexuality resulting in poor interpersonal relationship. There is no difference between the Dynamos and the Drones on deference, exhibition, interception, dominance, abasement, and change. In order to grow and be successful, an organization therefore needs a workforce consisting of more Dynamos. And, to be a dynamo, one should have the need personality orientation of order, endurance, and achievement which accounts for one's desire to give his best, to be successful, plan work, and stick to the job till the end. The author also stresses upon the need orientation of affiliation, succorance, and nurturance which together form the key ingredients for building interpersonally sensitive relationship.

Marketing: A New Paradigm

An organisation comes into existence to market itself through its offers to the society at home and abroad and wishes to survive for an indefinitely long time into future. Organisations all over the world survived colonialism, parochialism, state socialism and terrorism. Now they are struggling to survive liberalisation, privatisation, globalisation and marketisation. Every organisation has to offer need fulfillment through its products and services to the society. No organisation is bom to make a particular product or offer a specific service. Hindustan Lever Limited, an FMCG giant started offering water purifiers and operating health clubs; Maruti Udyog Limited ventured into driving schools; and ONGC, a public sector oil company started opening retail outlets with a difference. Nirma, an organisation known for detergents, has opened a university. Nirma may not perhaps continue for long in detergents, in an environment where the Chinese home appliances company Haier has introduced detergent free washing machines. Thus each organisation wishes to survive with a purpose by offering always something special, unique, different, innovative, useful and creative to the society. Marketing is a social relationship between and organisation and the society. Marketing is a total organisational function an not a simple function to be left to the marketing department. According to Peter Pritchard, Chairman, Pritchard Services Group, U.K., “Most of our most successful managers are people who spend most of their time attending to the customers.

Maruti Udyog Limited: The Bumpy Road Ahead

Maruti Udyog Limited: The Bumpy Road Ahead

Maruti Udyog Limited: The Bumpy Road Ahead

Maruti Udyog Limited: The Bumpy Road Ahead

Multinational corporations and public relations in a historically resistant host culture

Since the onset of globalisation, many multinational corporations (MNCs) have been increasingly opening up subsidiaries in several host nations. While the entry of MNCs in some nations has been generally unproblematic, that has not been the case in every host nation. Fears of neocolonialism and postcolonial anxieties are very real phenomena in many parts of the world. When it comes to such resistant environments, MNCs need to be especially careful in how they conduct their public relations activities. This qualitative study of two MNC subsidiaries in India – Hindustan Lever Limited (of Unilever) and Maruti Udyog Limited (of Suzuki Motor Corporation) – explores, in context, the phenomenon of MNC public relations in this host nation that has a history of resistance to MNCs. The authors conclude that MNCs can be successful in potentially resistant host environments through culturally attuned involvement, intervention and respect for the local that is proven through socially responsible performance over time. This is an important message for MNCs starting up in new host environments. Descriptive details elucidate the specific public relations activities of the two MNCs in the Indian business and cultural environment. Overall, the findings have heuristic value for transnational public relations theory building since they suggest that an MNC’s organisational culture and approach to communication and relationship cultivation are important variables that shape how it practises public relations in host nations around the world.

Changing buyer-supplier relationships: reflections of dynamism and innovation in the automotive industry in India

The opening up of the Indian economy that has occurred since the mid-1980s has forced Indian firms to face external competition. This paper looks at the spectrum of linkages between the two automobile manufacturers Maruti Udyog Limited (a passenger car manufacturer) and Eicher Tractors Limited (a tractor manufacturer) and their suppliers. A discernible shift in the assembler-supplier relationships has been seen in the case of these two automobile manufacturers and their respective suppliers. Reducing the supplier base is one of the most discernible features of restructuring, based on the just in time approach. This has paved the way for long-term contracts with suppliers, quality assurance and more assembling being carried out at the supplier's end leading to supply of subassemblies rather than mere components. The important lesson that one learns is that the supply chain, as a system, became institutionalised with the establishment of Maruti and Eicher. The autocomponents industry, which was marked by inefficiencies, such as low technological competence, poor quality and low productivity with virtually no access to the international market got the boost which it needed. The supplier firms operating in the open market in the controlled regime have now become a part of the network. Many small firms were established. Their technological development, quality awareness, and financial management were guided by the large firm. The transition can be attributed to the government's redefined role in adopting clear-cut policies and the efforts of the automobile manufacturers to innovate. The outcome of this process is dynamic long-term relationships, information exchange, skill enhancement leading to improved processes, changed raw materials, inventory reduction, product improvements, wastage reductions, quality improvements, energy conservation, continuous benchmarking, and so on, for the suppliers on one hand, and the Indian automotive industry in general.

Concepts of Culture and Organisational Analysis: A Perspective

The purpose of this paper is to draw attention to certain aspects of organisational culture on Edgar Schein's perspective. It is assumed that free market economy evolves a competitive environment demanding quality and efficiency for success. An organisation may have significant idiosyncratic beliefs and the combination of these will develop unique culture of the organisation. The cursory overview of these perspectives suggest that there are serious overlapping concerns among these perspectives. On the basis of this understanding it may be asserted that these perspectives need to be juxtaposed in a complementary manner and the insights from all the perspectives need to be drawn and utilised for examining and managing organisational culture. Against this backdrop an attempt has been made to examine organisational culture, competence and effectiveness in three organisations namely Maruti Udyog Limited, Escorts Limited and Pepsi Foods Limited which are all highly profit making and performing extremely well. The results showed that value systems classified both as functional and traditional, are most likely to contribute to development of work values and consequently to organisational effectiveness from the perspective of culture.

Strategic advantages of good supplier relations in the Indian automobile industry

This paper deals with supplier relationships in the Indian automobile industry. Here I have attempted to draw attention to the strategic advantages being generated by the Indo-Japanese collaboration, Maruti Udyog Limited (MUL), due to effective management of supplier relationships. Having Suzuki Motors as its collaborator, MUL's strategy is very much like the Japanese company's. In general, it could be said that the Japanese method is giving good results for MUL as the Indian market slowly opens up to international competition. MUL can depend on its suppliers whom it has groomed over the last 12–13 years while countering competition. The paper goes further, to analyse the similarities and the dissimilarities between the Indian and the Japanese situations. Given these differences and similarities in the Indian and Japanese situations and supplier relations management, the paper highlights some points which go a long way in establishing sound business relationships.

Maruti Udyog Limited

Maruti Udyog Ltd. (MUL) was set up in 1980 by the government to produce automobiles. By collaborating with Suzuki Motor Company in 1982, it was hoped that the famed Japanese style of management would catalyze the small and backward car industry and some of the others to which it was linked. Maruti got off to an excellent start by public sector standards. However, by 1985, fiscal, balance of payments, and technology transfer problems began to surface. With current order books winding down by 1990, questions arise as to MUL's mission, its product-market strategies, its pricing policy, and the value of Japanese participation. Questions also arise regarding the coherence, long term stability, and developmental aims of government's policy towards the automobile industry.