PROJECT-1

DATE - 3.11.2015
Submitted byGaurav Sharma

Submitted toDr. Upasana singh

Mba-1st sem.

INTRODUCTION TO
MAHINDRA
Mahindra is Japanese multinational company primarily known as
manufacturer of automobiles and motor cycles.
Mahindra was founded on 24th September, 1948 by Soichiro Mahindra
And Takeo fujisawa.

Mahindra is the worlds largest manufacturer of two Wheelers ,

Recognized the world over as the symbol of Mahindra two wheelers ,
the Wings arrived in India as Mahindra Motorcycle and Scooter India
Pvt. Ltd. (HMSI ), a 100% subsidiary of Mahindra Motor Company
Ltd., Japan ,in 1999. Since its establishment in 1999 at Manesar, District
Gurgaon, Haryana, Mahindra has lived up to its reputation of offering
the highest quality at the most reasonable price. Despite being one of the
youngest players in the Indian two-wheelers market, Mahindra has
become the largest two wheeler manufacturer as well as the second
largest two-wheelers company in India.

Mahindra is also the fastest growing company in country today. With a

host of facilities under its wings, the first factory of HMSI is spread over
52 acres including a covered area of about 100,000 sq. meters in
Manesar, District Gurgaon, Haryana with an annual capacity of 1.65
million units. To meet the ever increasing demands of the products,
Mahindra has started operations of its second plant in Tapukara, District
Alwar, Rajasthan. Expanding to full operations , Mahindra production
capacity has jumped 30% year on year to 2.8 million per annum in FY
12- 13.
Mahindras third plant at Narsapura Industrial Area near Bengaluru,
Karnataka is equipped to manufacture 1.2 million units. Utilizing
production technologies refined at Manesar & Tapukara plants as
starting point, the 3rd plant is employed with state-of-the-art
manufacturing, automation and environment friendly technologies to
deliver quality products.
On October 16 2014, Mahindra announced the Worlds largest only
scooter plant" at Vithalapur Gujarat. Fourth plant will become
operational by end of 2015 with annual capacity of 1.2 million units. The
new plant will employ approximately 3000 people within first 2 years of
commercial production and will entail INR 1,100 crores

HISTORY
The history of the Mahindra brand is nothing more than the history of
our challenges and achievements in creating values, invariably ahead of
our time. It is also the history of the dreams of each of our associates
that have come true and have been shared by people around the world.

ORGANISATION STRATEGY
An organizational strategy is the sum of the actions a company intends
to take to achieve long-term goals. Together, these actions make up a
companys strategic plan. Strategic plans take at least a year to complete,
requiring involvement from all company levels. Top management
creates the larger organizational strategy, while middle and lower
management adopt goals and plans to fulfill the overall strategy step by
step. This unified effort to can be likened to a journey. Daily challenges
such as road conditions must be overcome to complete sequential legs of
the journey, which eventually lead to the ultimate destination.

POINTS1- Supply highest quality of product reasonable price- supply product

to the customer at low price. They are able to purchase it.

2- Build product close to customer- There should be the interaction
between customer and industry before making the product. So the
company will able to make that product which customer will want.
3- Use research and development system- Use R&D system in the
organization, through which we knows about better products.

MISSION AND VISION OF MAHINDRA

Mission
123-

Supply highest quality of product at reasonable price.

Proceed always with ambition and youthfulness.
Develop fresh ideas and make most effective use of time.

Vision
12-

Quality in all jobs, learn, analyse and think, analyse, evaluate and
improve.
Realible products.

CSR
Corporate Social Responsibility

Mahindra Motorcycle & Scooter India will strive to be a Company

which the society wants to exist.
HMSI shall direct its resources to the extent reasonable in order to

improve the quality of life of the people by focusing on

Environment, Education, Sports, Rural Development & other
Humanitarian & Social causes to enhance the joys in their lives
HMSI will respect Human dignity and all applicable laws.
HMSI will positively impact & influence society for its sustainable
development.
Promoting education , including special education and employment
enhancing vocation skills especially among children , women
elderly , and the differently abled and live hood enhancement
projects.
Ensuring environmental sustainability , ecological balance ,
protection of flora and fauna , animal welfare , agro forestry ,
conservation of natural resources and maintaining quality of soil ,
air and water.
Training to promote rural sports , nationally recognized sports ,
Paralympics sports and Olympic sports.
Rural development projects.
Health

How Firms IS Organized

Given that a firm must perform several tasks, how should
the tasks be organized? Should each worker perform
several different tasks or concentrate on only one or a
few? For example, in a shoe manufacturing firm,
someone must decide how many shoes to produce and at
what price to sell them. Once the number is determined,
someone must decide how to produce them, oversee
production costs, and keep management informed of any

cost changes. All of these decisions must be coordinated

if the firm is to maximize profit.
Hierarchies. How should a firm's management be
organized? Should one manager be responsible for
pricing, another for monitoring production costs, and
another for purchasing raw materials? Or should
managers be responsible for certain phases of all three
functions? Firms use various management organizations.
An organization of management is called a hierarchy:
the chain of control in an organization. Figure 2.1 shows
the hierarchy of a typical organization. Three division
managers report to the president, who coordinates the
various pieces of information.
Figure 2.1 Firm Organization

Because people have limited information-processing

ability, it is impossible for each division vice-president to
convey all relevant information to the president. Instead,
every time information gets transferred, some
information is lost. The benefit from transferring
information up the hierarchy is that one individual (the
president) can use the combined information from the
three divisions to make a coordinated decision that
reflects the tradeoff of costs and benefits across all
divisions. Within any hierarchy, there is a trade-off
between the amount of information from each division
and the need for coordinated decisions. [See Williamson
(1967, 1975) for a detailed analysis of hierarchies within

firms. See also Milgrom and Roberts (1992).] The more

detailed the information from each division, the less able
is one person to absorb information from several
divisions and hence the less coordinated the decisionmaking becomes.
The president of any company typically knows much less
about how a particular market works than a buying agent
does and much less about how a particular machine
works than the production engineer does. The president's
role is to assimilate information from all sources and to
make the most important, coordinated decisionsthose
that cannot be undone quickly. For example, a president
is more likely to be involved in a decision to build a highly
specialized plant than to purchase a large machine that
can readily be resold.
Internal Organization of Large Firms. Large firms
that produce several related products may be organized
in several ways, two of which are discussed here. [For an
excellent, detailed analysis of the internal structure of
firms, see Williamson (1975, Chapter 8).] One form of
organization involves functional separation, in which
the firm has separate divisions for each activity such as
production and sales. One benefit of this form is the
greater efficiency that occurs when many tasks are
handled by one economic unit due to the specialization of
labor. An alternative organizational form is the
multidivision form (M-form), in which the firm is
divided into divisions based on the output produced.
Although all the tasks are usually the same in the two
different organizational forms, the hierarchy of command
is different, and hence the cost of organizing (monitoring
efficiency) can be different. In particular, it is difficult to

keep the functional divisions focused on the goal of

maximizing overall profits. The reason is that it is hard to
calculate the profits for the accounting, manufacturing, or
marketing division separately. It is much easier to
calculate profits for a division that sells a product than for
a functional division. Although it allows less
specialization, the M-form stresses profit maximization
for each division and holds the managers of each division
accountable for any shortfalls.
Until the 1920s, large firms that produced many products
used the functional separation mode of organization. A
few large firms, notably DuPont, General Motors,
Standard Oil of New Jersey, and Sears, Roebuck, devised
the M-form in response to their increasing size and
diversity. Chandler (1962, 48-49) contended that "the
multidivisional type of administrative structure, which
hardly existed in 1920, had by 1960 become the
accepted form of management for the most complex and
diverse of American industrial enterprises."

In the United States, the M-form became prevalent in the

1950s (Williamson and Bhargava 1972), while in other
countries its adoption was slower. For example, its
widespread diffusion in the United Kingdom did not occur
until the 1960s (Steer and Cable 1978; Marginson 1985).
In the early 1970s, it appeared that the M-form was used
in 70 percent of the major firms in the United Kingdom,
in 50 percent in Germany, and in 42 percent in Japan
(Cable and Yasuki 1985).

Armour and Teece (1978) tested Williamson's (1975)

prediction that adoption of the M-form leads to higher
profits. Using a sample of petroleum companies, they
found that the percentage of firms that adopted the Mform rose from 16 percent to 78 percent. They also
compared the profitability of those firms that adopted the
M-form to those that did not between 1955 and 1973 and
found that firms that adopted the M-form had much
better initial profit performance (about 30 percent
improvement in profit) than other firms. By the end of
the period, however, there was no difference in profits
between those few firms not adopting the M-form and the
others. This result may show that some firms have
special reasons for not adopting the M-form.

FORMAL STRUCTURE
(ORGANISATIONAL CHART)

DECISION MAKING PROCESS

Making decisions in a company or organization happens

at all levels. A manager of a business shouldnt assume
hes right in every decision he has to make. In that
regard, different types of decision-making should be
taken depending on the situation at hand.

Identifying Problems
Before making any decision, the organization has to
identify exactly what the problem is. Not identifying the
problem could lead to an erroneous decision. The leader
of an organization should evaluate the issue with all
employees so everyone knows about it, and then make a
decision that taps into what's worked before if that
decision process is right for solving the issue. This form of
decision-making can be made into a computer program
with a set pattern of rules to follow in amending a
problem.
Multiple Perspective Analysis
Sometimes using multiple perspective analysis to make a
decision is best so a CEO or manager can force herself
out of her usual method of thinking. Professor Hossein
Arsham, in an article titled Leadership Decision Making
at the University of Baltimore site, notes this method and
its steps. By wearing six different hats, you can make a
decision using different thinking approaches. For
instance, a red hat uses reaction and emotion, or being
aware of how other people will react when the decision is
made. A green hat will use freewheeling creativity in
making a decision. The article also notes that a decision

can be made using differing points of view from

customers or those in different professions.

LEADERSHIP STYLE IN
MAHINDRA
Nowadays teams are becoming very important in every company. Team
building denotes a process of elaboration and development of a greater
sense of collaboration between team members. The organizational culture
helps to unite team members. Team building is used in work organizations
and is the essential part of a leader's work. Team building skills are
necessary for an exemplary leader, such as Mahindra. These skills are
obligatory for effective work of a company and better understanding of
team work can help a leader and an employee become more effective in
the corporation. A team building success is when your team is able to do
some great project and work more and more effectively. The essential
element of team work success is the ability of a team to direct their efforts
toward a certain goal of the team.
This article briefly analyzes Soichiro Mahindra Japanese industrialist, the
founder of Mahindra Motor Corporation. Research has shown that
Mahindra is an exemplary leader who has built his success on failures'. He
believed failures' are essential for achieving the real success. Persistence
is the major characteristic feature of Mahindra. He had the ability to go
through one failure after the other and to stay the same person with the
same dreams and aspirations. Soichiro Mahindra is recognized as one of
the most successful mechanical engineering entrepreneurs since Henry
Ford. Vision and recognition of an opportunity is the hallmark of Mahindra
and other leaders. Mahindra had a clear aim the factor that guided his
corporation and brought it success. It was Mahindra's leadership and vision
that made his corporation successful on a world scale.
The research of the events has shown that Mahindra was the innovative
leader who encouraged a culture of experimentation. He injected
enthusiasm and energy into people around him and they helped him to
achieve great things. Soichiro Mahindra was a transformational leader and
working for him was a wonderful and uplifting experience. Soichiro
Mahindra was a true leader who had the ability to create a healthy working
atmosphere within the team. Mahindra focused efforts and activities of a
team for achieving the desired goal effective and successful team work.

He set clear goals and everyone accepted them. Mahindra was a good
leader who was able to deal with all team work issues. Although the
employees called Mahindra Mr. Thunder' for his bursts of anger in answer
to their mistakes, they loved and respected him.

ORGANISATIONAL HEROES
The employees who work in the organization are the heroes of the
organization. They do their work with their full efforts. They generate
innovative ideas and creates new products.

MY INTEREST IN JOINING THE

OGANISATIONI join this company because according me this
automobiles sector is very good. I have interest in
Mahindra brand. I use the product of Mahindra so I
will better know about that. The pick up speed and
engine power is much better than other bikes or
cars.