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Presented by:
Hardik Dave (Team Leader)
Santosh Kumar Sahu
P E Kannan
TVS Motor Company Ltd.
Managing Organizational & Management Challenges in India 1
28-Jul-19
Theme of Presentation:
The theme has been broadly explained and discussed through practical studies
India growth story, and reflective of Indian customer sentiment through the years,
“In the business world the rear view mirror is always clearer than the
windshield.”
– Warren Buffet
Final Presentation
Understanding customer
Market based pricing Quality of Material
Competitors’ products
Customer - centric
Manufacturer dominated
market
Managing Organizational & Management Challenges in India 5
28-Jul-19
Behaviour Pattern of Indian Customer:
Price
Conscious
Low
Varied
Tastes Customer Running
Costs
Maximize
Play Safe Revenues/Market Share
UOM: %
Hygiene Factor
Price
Cost
Competitive pricing
Margin
+
Conversion
Material
Tier 1 Cost Consum Power &
Packing Logistics Interest Others Profit
Labour Depn R & M Rejection
able Fuel
+
Conversion
Material
Tier 2 Cost Consum Power &
Packing Logistics Interest Others Profit
Labour Depn R & M Rejection
able Fuel
Design
strategies
Sourcing
strategies
Manufacturing
strategies
Definition:
The cost limit is usually what the buyer can pay or what the marketplace demands.
Make /
Buy Balance
target cost
&
requirement
Production Production
Commonize
Managing
Value Design Wastes
engineering strategies (COPQ)
Benchmarking
Localization
Maximize E – Bidding
fiscal
Sourcing / Group
benefits strategies buying
Global
sourcing
Maximize
margin / unit
Fixed
Costs
Asset
Base
Increase Asset
Turnover
Protostars Stars
Guerilla Tactics Marketing based on rival moves
High
Dull Bright
(Liquidate) (Spend more on Mktg.)
Low High
Brand stature
After Sales • Retention of skilled manpower • Basic HR policy can be mandated &
service
• No intervention by OEM in recruitment monitored by the OEM
process • One-time subsidy for purchase of
• Availability of proper gadgets & tools proper gadgets & tools
• Customer complaints • Easy access to company technicians
• New Technology for customers / by dealer staff for complexities
service personnel • Handy literature for reference
Customer
FUNCTIONAL DEPARTMENTS/FUNCTIONS
OBJECTIVES/ = DECISION UNITS
TARGETS
BASED ON DECISION PACKAGE
ACTIVITY
PLANNING/MAPPING OF
COST DRIVERS
EVOLUTION OF
METHODS/COSTS
BASIS OF
RESOURCE
COST- BENEFIT ANALYSIS ALLOCATION
(PERFORMANCE MANAGEMENT)
MEETS
FUNCTIONAL
OBJECTIVES? NO
YES
STANDARDISE THE PROCESS AND
IMPLEMENTATION
Design to Cost
Concentrate on businesses or sectors which are relatively recession proof, and have them
- Johann Wolfgang
Thank you