Beruflich Dokumente
Kultur Dokumente
6% 1%
7% 7%
3%
25%
14% 6%
59%
17% 29% 18%
8%
Year : 2006
S p i r i ts B eer F e rt iliz e r
P h a rEm n ag i n Be ee reSi nr pg i r Pi t sh a rOm t ah eP r sa i
Mission – UB Group
o We constitute a large, global group based in India. We associate with world leaders in
order to adopt technologies and processes that will enable a leadership position in a large
spectrum of activities.
o We recognize that our organization is built around people who are our most valuable
asset.
o We will always be the partner of choice for customers, suppliers and other creators of
innovative concepts.
o We will continually increase the long-term value of our Group for the benefit of our
shareholders.
o We will operate as a decentralized organization and allow each business to develop within
our stated values.
o We will be a major contributor to our National Economy and take full advantage of our
strong resource base.
Strategic Management Process
FO Corporate Strategy
RM
UL L ATION
AT Business Strategy
O RMU
IO F
N Functional Strategies
ION F M M IT HR IM
AT PL
M ENT EM
LE EN
IMP Structure T AT
Culture IO
N
Control
Levels of Strategy
Corporate
What business + general direction
Business / Competitive
How to compete in the given business
Functional
How to translate competitive strategy in action plans
Corporate Strategy
o The ultimate goal is GROWTH of the
company
o Focus on primary line of business
o Effort to sell the same products to a new
market
GROWTH BY CONCENTRATION,
MARKET DEVELOPMENT,MERGER
AND ACQUISITION
MERGERS - UB
o Following entities being merged:
n McDowell & Company Limited (Listed)
n Herbertsons Limited (Listed)
n Triumph Distillers & Vintners Private Limited
n United Distillers India Limited
n Baramati Grape Industries Limited
n Phipson Distillery Limited
n United Spirits Limited
n Asian Opportunities & Investments Limited
n McDowell International Brands Limited
n Zelinka Limited
n Shaw Wallace Distilleries Limited together with its subsidiaries
n WHYTE & MACKAY
n 26% stake in Air Deccan
External Analysis
o PEST Analysis
o Opportunities &Threats
o Competitive advantage
PEST
o Political
n Regulatory hurdles constitute an entry barrier to the industry.
o Domestic Air Traffic – grew by 23% to 21.82 million passengers in 2005, over 17.70 million passengers in 2004.
o The buoyancy in the corporate sector with the economic boom, business and leisure travel is expected to far exceed first time travel.
PEST
Social:
o Changing Lifestyles
o Market conditions very attractive for growth especially booming real estate
and aviation.
o Create credible alternatives in the premium and high end segment.
o Facilitate entry into new segments, such as wines, Aviation etc.
o Provide access to non traditional global markets, particularly Russia and
China.
o Incorporate B2C e-commerce portal.
THREAT
o Government regulations
o Strengths
o Weaknesses
o Financials
o Critical Success Factors
Strengths
o Cost Management
o Brand value
Total Expenditure
a) (Inc)/Dec in stock in trade (15.25) (1.76)
b) Consumption of Raw Materials 461.33 419.10
c) Purchase of Finished Goods 226.24 70.63
d) Consumption of Other Materials 455.82 440.22
e) Staff Cost 155.03 158.91
f) Other expenditure
i) Advertisement & Sales Promotion 241.02 239.88
ii) Others 340.47 357.25
1864.65 1684.22
Earnings Before Interest, Depreciation and Tax 97% 266.25 135.14
Revenue Statement –
Major Items
Rs. Mio Rs. Mio
Income 5,845.00
Fuel Cost 2,356.00
Total Operating Cost 6,806.00
Other Cost 760.00
EBIDTA (1,721.00)
PBT (1,908.00)
KFA 12
Core Competencies
o Focus on Brand Imagery
• Since Beer is a category with little product differentiation, consumer’s brand choice
is largely on imagery
• With multiple brands in each segment of beer, UB has successfully positioned
different brands on different platforms relevant to different consumers, different
need states
• Kingfisher has appropriated some of the category values including `refreshment’
o Brand Association
• With Fashion, through Kingfisher Fashion Awards and the Kingfisher Swimsuit
Calendar
• With high visibility events like the Mumbai Marathon, the Delhi Half Marathon,
the International Film Festival of India
• With events important to the ethos and culture of people in key regions like the Goa
Carnival, the Bangalore Habba
Core Competencies
o Focus on Value to Consumer.
To achieve the national roll out of McDowells’ Diet Mate whisky (using a
proprietary and US patented technology from the Group Research
Foundation – VMSRF)
Launching of unique
Diet Vodka (using
another US patented
technology from VMSRF)
USL 15
New Marketing Initiatives
- To pursue the launch of existing products in
innovative packaging variants (tetra packs,
pre-formed sachets, etc) and there by reduce 180ml Tetra Pack
the packaging cost as well as the price point
to consumers in addition to the convenience
of the pack itself .
Pre-formed
Sachets
Saving
of Rs.30/-
per Cs.
Saving of Rs.12/-
per Cs. USL 17
UB Group in transition
From To
Market Attractiveness
- Market size + + + + +
- Market growth rate + + + + +
- Market profitability + - moderate + Moderate
- Pricing trends + - moderate moderate
- Competitive intensity / rivalry moderate - - - -
- Overall risk of returns in the industry moderate moderate moderate + moderate
Industry Strengths
- Relative brand strength (marketing) + + moderate moderate moderate
- Quality + + + + +
Industry Attractiveness v/s Business Position
Industry Attractiveness
High Medium Low
Invest Selective Up or Out
Growth
High
Business Position
Breweries
KFA
Growth
Infra Fertilizer
Aventis
CONCLUSION
o Based on the GE matrix and the
PEST,SWOT analysis we feel:
• The group should keep on investing in the
Breweries division as the portfolio offers
promising future.
• Aviation is in growth phase so needs focused
growth strategies.
• It can divest from the Pharma business and
concentrate on the Infra division specially.
RECOMMENDATIONS
Strategic Themes
Metrics & Objectives
o Increase profitability to bring
USL in line with other FMCG o Value growth to lead volume growth
companies in India
o Align performance
metrics with the strategic
o Introduce balanced scorecard to
plan assess performance