Vadher Manush (A-55) Vaghela Vaishali (A-56) Vaishnav Nitish (A-57) Vyas Kuldeep (A-58) Zala Ravi (A-59)

ABOUT COMPANY
The Company's four global business divisions Industrial Energy Americas, Industrial Energy Europe, Transportation Americas, and Transportation Europe provide a comprehensive range of stored electrical energy products and services for industrial and transportation applications. In addition, Asia Pacific/ Rest of World operations contribute sizeable revenues to the Company, divided evenly between the Industrial Energy and Transportation markets include original-equipment and aftermarket automotive, heavy-duty truck, agricultural and marine applications, and new technologies for hybrid vehicles and automotive applications. Industrial markets include network power applications such as telecommunications systems, electric utilities, railroads, photovoltaic (solar-power related) and uninterruptible power supply (UPS), and motive-power applications including lift trucks, mining and other commercial vehicles. We are in global business organized to serve the complex stored energy systems needs of its customers. Key strengths of the Company are that its products and services span global markets and geographic borders, melding two significant bases of experience and technology expertise from its Transportation and Industrial battery divisions. The Company shares expertise across business segments. This global footprint enables better and faster means of introducing innovations in products and services, changing the way the world uses and stores electrical energy. We extend customer offerings by selling services and systems that enhance vehicle performance and fleet utilization or reduce risk of loss of power problems. We provide energy solutions not merely batteries.

The group manufactures & distributes a vast range of batteries, including:

Sealed Absorbed Glass mat (AGM) & Gel Batteries Batteries with Tubular & Pasted Flat Plates Batteries with Expanded and Cast Grids Lead and Lithium Batteries with Prismatic & Cylindrically Wound Design (Dual Graphite Batteries are under development Automotive Batteries for two-wheelers, cars, tractors, trucks, construction equipment. The group is also the global pioneer of Sealed Maintenance-free Batteries. Batteries for Motive Power Applications The group is also the pioneer of sealed maintenance-free batteries.

STRATEGY FORMULATION PROCESS

I. Environmental analysis

a. Competitors: - Major Competitors of the company are Exide, Amaron, TATA Green and SF. b. Customers:- Company has got significant share in Saurastra region and its major revenue comes from load carrier vehicles c. Suppliers: - Mainly major components of the product are either produced by copany itself at Prantij plant or they import it from USA. Other additional accessories are purchased from local vendors. d. Government: - Goverments role is not very much significant in this industry but it has passed certain laws and regulations regarding disposal of used batteries for environmental safety. e. Social/political: - Company is also involved/conducting various CSR activities on regular interval.

II.

Internal Analysis

a. Technological knowhow: - As this company is originated from USA majority of its technological inputs are from USA only. b. Manufacturing Knowhow: - Company is not dependent on any other companies of local vender for it manufacturing process. c. Marketing knowhow: - Companies is not having any significant strategy or plan for advertising of its products. It is still using old methods of advertising. d. Distribution knowhow: - Same as per industry players no unique methods for increasing market share.

III.

SWOT analysis
Strengths US Based No much dependence of vendors for raw material Weakness Lack of marketing plans/strategies Unknown name amongst customers.

Opportunities Huge untapped market. Can expand its business by increasing backward integration

Threats Huge marketing by competitors Laws regarding by product wastes

IV.

Type of organization
Functional Structure. Advantages Clarity about career path Economies of scale Specialization Disadvantages Boredom & monotony Responsibility for profits is on top level management only. Slow adaption of changes in the environment.

V.

Responsibility centre
Meaning In simple words an organizational unit for which manager is made possible. At Tudor each and every line marketing manager is responsible for the variance in the sales volume in his/her territory assigned by management.

VI.

Nature of Responsibility Centre

Input (Majority of raw material are self produced)

Output (Finished goods)

Measruing input & output Monetary value of given input = Physical Quantity * Price per unit

Cost : The Monetary measure of the amount of resources used by responsibility centre. It is easier to measure the cost of an input than to calculate the calculate the value of outputs Profit & non profit organization

Why does an organization related input to outputs? To measure efficiency To measure effectiveness Ratio of input to output Types of Responsibility Centre. Revenue Centre Cost Centre or Expense Centre Profit Centre Investment Centre

Practices followed at Tudor India Ltd.

Company is following practice of maintaining profit centre concept for it s Sr. No. 1 2 3 Name of Department Purchase cum Production Department Research & Development Department Sales Department Type of Centre Expense Centre Discretionary Expense Centre Profit Centre

Details about how centre practices are followed:A. Purchase cum Production Department (Expense Centre) Responsibility center whose inputs are measured in monetary terms, but whose outputs are not Responsibility centers whose employees control costs, but Do not control their revenues or investment level. Examples: Production department in a manufacturing unit B. Research & Development Department (Discretionary Expense Centre) Where a direct relationship between a cost unit and expenses cannot be reasonably made; Management allocates them on a discretionary basis (e.g. depreciation expenses for machines utilized). (Estimation of cost is difficult thus it is made on the discretion of the managers) More difficult to measure in physical quantities or precisely on monetary terms (e.g. customer relations or even R & D). Discretionary means, management allocates them based on established polices (not arbitrarily). Output of these unit cannot be measured in monetary terms Difference between budgeted expenses and actual expenses does not indicate efficiency. (Budgeted input v/s Actual Input)

Types of Expense Centre

Engineered Cost

Discretionary Cost

R&D Department (Prestolite) (pres C. Sales Department Managers of profit centers control both the revenues and costs of the product or service they deliver. Input & output both can be measured in monetary terms It is like an independent business except it is part of a larger organization (e.g. departmental stores of larger chains Wal Mart, restaurants, corporate hotels). The store manager would have responsibility for pricing, product selection, and promotion. Cost for these units vary depending on ability to control labor, waste, and hours. Revenues also will vary depending on the units service level, location, etc. In other words, local discretion would affect revenues and costs. Therefore, profits represent a broader index of both corporate and local decisions.

VII.

Transfer Pricing (at Tudor)

Value placed on transfers within an organization, used as a means of allocating costs to various profit centers is transfer pricing. The price at which divisions of a company transact with each other. Transactions may include the trade of with supplies or labor between departments. Transfer prices are used when individual entities of a larger multi-entity firm are treated and measured as separately run entities.

Objectives of TP 1.It should provide each business unit with the relevant information. 2.It should induce the goal congruence decision to improve units profit. 3.It should help to measure the economic performance of individual business unit. 4.The system should be simple to understand and easy to administer. Basically Transfer Pricing is done in 4 different ways i. ii. iii. iv. Cost Based Market Based Dual Pricing Negotiation Pricing

The company is adopting cost based transfer pricing for it s internal work-in-progress transfers from one department to other departments. About Raw Material Storage Policy As the company is from the industry where we cannot see major fluctuations in demand because there is no seasonal demand applicable (of course there is marginal spike in demand in winter season but no big spurt is there)

VIII.

Strategic Management

Inbound Logistics Activities, such as materials handling, warehousing, and inventory control, used to receive, store, and disseminate inputs to a product. Operations Activities necessary to convert the inputs provided by inbound logistics into final product form. Machining, packaging, assembly, and equipment maintenance are examples of operations activities. Outbound Logistics Activities involved with collecting, storing, and physically distributing the final product to customers. Examples of these activities include finished goods warehousing, materials handling, and order processing. Marketing and Sales Activities completed to provide means through which customers can purchase products and to induce them to do so. To effectively market and sell products, firms develop advertising and promotional campaigns, select appropriate distribution channels, and select, develop, and support their sales force. Procurement Activities completed to purchase the inputs needed to produce a firms products. Purchased inputs include items fully consumed during the manufacture of products (e.g., raw materials and supplies, as well as fixed assetsmachinery, laboratory equipment, office equipment, and buildings). Technological Development Activities completed to improve a firms product and the processes used to manufacture it. Technological development takes many forms, such as process equipment, basic research and product design, and servicing procedures. Human Resource Management Activities involved with recruiting, hiring, training, developing, and compensating all personnel. Firm Infrastructure Firm infrastructure includes activities such as general management, planning, finance, accounting, legal support, and governmental relations that are required to support the work of the entire value chain. Through its infrastructure, the firm strives to effectively and consistently identify external opportunities and threats, identify resources and capabilities, and support core competencies. IX. Performance Measurement systems Key success factors: Customer-focused key variables: Bookings Back orders Market share Key account orders Customer satisfaction Customer retention Customer loyalty

Balance Scorecard as Performance Measurement System

INTERNAL BUSINESS

Financial

BALANCE SCORE CARD

Innovation and learning

Customer

For performance measurement balance scorecard is such a vital tool wherein the organisation sets goals on the four main dimensions as followings;

1. Financial
Profit & Loss account Mar '10 12 mths Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses 68.41 5.6 62.81 4.45 -2.5 64.76 34.64 3.81 5.59 0.59 0 16.47 0 61.1 Mar '10 12 mths Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) -0.79 3.66 0.55 3.11 2.18 0 0.93 0 0.93 0.36 0.58 26.46 0 0 0 246.17 0.23 0 9.84 Mar '09 12 mths 148.53 21.94 126.59 0.37 4.58 131.54 84.61 8.19 6.14 0.87 0 24.27 0 124.08 Mar '09 12 mths 7.09 7.46 0.99 6.47 1.69 0 4.78 -0.01 4.77 3.6 1.16 39.47 0 0 0 246.17 0.47 0 9.61 Mar '08 12 mths 146.93 23.69 123.24 0.88 6.11 130.23 92.67 6.63 4.6 0.77 12.93 1.08 0 118.68 Mar '08 12 mths 10.67 11.55 1.37 10.18 1.67 0 8.51 0.08 8.59 0.96 7.63 26.01 0 0 0 246.17 3.1 0 9.13

As far as financial dimension is concerned the latest data is not given by the company, but from the online sources the financial reports of some past years are as above. But as such this data are not enough to evaluate the performance.

2. Customer e.g. Market share, customer satisfaction The following chart shows the poor market share of the prestolite which depicts that the company need to formulate strong policies like to advertise the brand, organize various brand awareness programme, and so on to increase the market share.

Users
10% 23% 20% Exide Amaron Tata Green 20% 27% SF Prestolite

3. Internal business e.g. Employee skills 4. Innovation and learning e.g. New product research in low maintenance batteries

Suggestions

 We have observed that even though company is having strong backward integration in its raw material and final product Constituents Company is not able to utilise same in capturing any significant market share so we feel that company can expand its business in this segment. Also add here that company is not adopting any proper transfer pricing policy for transfer of its products from one department to another. So if company expands its market in backward integration then it can also think about increasing it s profitability. Further to be added that even though company has got due support from its parent company from USA it is not able to make its presence felt in India, so we feel that it is not having any proper planning for marketing and product promotional activities. Further we have seen that company is not providing any budget for marketing and product promotion activities. So in order to gain significant market share company should allocate due budget for same.

Reference
www.moneycontrol.com www.tutorindia.com