Continue Assessment - 1

On
Innovative Management Practices at M&M Group

Submitted by
Kapil Birla (11404696, A09)
Praveen Kumar Tiwari (11405064, A02)
Rishab Sinha (11408390, A07)

Section E1416

Programme Name: B.Tech.-M.B.A Dual Degree – Electrical

Engineering

Under the Guidance of

 Asst. Prof. Maninder Singh

School of Electronics & Electrical Engineering

Lovely Professional University, Phagwara
(Sept, 2017)
 INDEX

 Introduction (M&M)
 Group Strategy Office
 Praveen Topic
 Shadow Board
 Introduction
Mahindra and Mahindra Limited (M&M) is an Indian MNC car manufacturing corporation. It
is one of the largest vehicle manufacturers by production in India and the largest manufacturer
of tractors in the world. It is a part of Mahindra Group, an Indian conglomerate. M&M was
founded in 1945 by two brothers J.C Mahindra and K.C Mahindra and Malik Ghulam
Mohammed by the name Mahindra and Mohammed.

After India gained independence and Pakistan was formed, Mohammed immigrated to Pakistan
where he became that country's first finance minister. In 1948 the company name changed to
Mahindra and Mahindra.

M&M started as a steel trading company and later gained the license of manufacturing Willeys
Jeep in India, soon after the started manufacturing Light Commercial Vehicle (LCV) and
agricultural vehicles.

The Journey of M&M didn’t stopped yet, In today's date Mahindra Group has access to each
and every field like Aerospace, automotive, Agri-sector, consultancy, Military Services,
energy, education, Sports and many more.
 Group Strategy Office at M&M Group
In today’s highly dynamic business environment, Organizations are at greater risk from
information leakage and corporate governance missteps. The Mahindra group has a new
tagline, which reflects a new strategy. It is a call to action a core purpose that will galvanize
employees, customers and stakeholders. From there onwards the logo will read as Mahindra
Rise.

The Group strategy management office is an internal consulting agency which is responsible
for ensuring a robust strategy cycle across the group with research and development activities
focused on identify and pursuing cross sector business initiatives.

Basically the strategy was to launch new product which will take part in the marketing. Every
company needs profits. So they make a new product out of which they want to make more
profit out of it. The company Mahindra and Mahindra is not getting profit from their
previously product. As before the launch of Scorpio, Mahindra & Mahindra image was a big
barrier. They removed their barrier with the company ‘Mahindra &Mahindra’ launched the
new vehicle successfully in 2002 under the brand name “SCORPIO “.

Urban market was showing more potential for vehicle sales and UVs were gaining higher
acceptability in urban areas. International UVs were entering the market and competition was
getting tougher. The market was moving from traditional multi utility, non- luxurious
vehicles to luxurious vehicle. From consumer perspective consumer wants luxurious vehicle
at an affordable price. Customer preferred big size as its stands for status .Consumer also
seeks latest technology Customer wants the sheer thrill and passion of driving an SUV but at
affordable price. As we considered the consumer perspective the consumer also want
according to the technology related and more over the price. In India because of its
considerable hold on jeep market it was ranked 6th in 2004 which was up from 10th rank.
However as we know that the world is leading towards globalization many new opportunities
& threats are coming with it. M & M has faced a cut throat competition in its jeep market in
price size because TATA jeeps & tempo are providing same quality jeeps at low price. To the
above point M & M felt that it has to grow & maintain its position in India as well as in world
so it generate export policies also to participation in trade fairs abroad so as to be known
globally. M&M group started inventing the diesel engine which will become very easy to
catch the market. On that time the price of petrol was even more than the diesel. So the
company started making the diesel engine according to the market survey. They also started
manufacturing diesel engines in collaboration with foreign company that is Peugeot of
France. The demand of the consumer was the diesel engine as compared to Petrol engine.
They also decided to extend its segment in various countries like Australia, Denmark, Italy,
Norway, Sweden etc. However there also it faced competitions from Japanese companies.
But government liberalization policy helped him in many way to expand its business. So it
estimated to export around 2500 jeeps annually to Australia.

The relation between Scorpio and the mother brand Mahindra was also deliberated upon. The
strategy chosen for Brand Endorsement was - Scorpio from Mahindra -shadow endorsement,
one which does not shout “Mahindra.” The Mahindra brand image was not modern and
young. There was a need to create a strong distinct modern brand. Hence Mahindra as a
Masterbrand could not contribute towards enhancing the Value Proposition. Yet Mahindra
had to provide source reassurance. Also the distribution would be through Mahindra
dealerships. Hence it became a shadow endorser. They started the advertising and promotion
strategy which really help to gain the profit from the product. The creative strategy was to
drive home the ‘Car Plus’ positioning forward. There was a need to leverage on product
strengths. And a need to establish car plus story. Hence the product was to be the hero in all
communications. The tone and manner was to help associate the brand with the modern and
urban lifestyle. The TVCs as well as the press still-shots were shot in Australia to provide an
international city feel. This brought in the international, premium, up-market association for
the brand.

Distribution Strategy – The company vision is to serve less markets at a time but
serve them well. Since the Scorpio was targeted at an urban clientele it needed a
stronger distribution presence in Metros and urban areas. Hence, the distribution
channel had to focus on providing an appealing experience for modern car buyers and
on offering international standards of auto retail.

Having done well in the domestic market, Mahindra and Mahindra is now moving forward on
its path to become a global niche player. i.e, it is stretching its activities in foreign markets.
The company is in the process of negotiating joint ventures in markets like Spain, Italy, South
Africa, Indonesia, Russia, and Ecuador for marketing of Scorpio. Mahindra & Mahindra has
given its best in terms of product development and diversification and the also change their
strategy according to present era i.e. FACING CHALLENGES AND OPPERTUNITIES thus
becoming a dynamic automobile company so far.
 Shadow Board
Anand Mahindra wanted to “hear the voice of the young”. So, in 2003, he added a new circle
in the organization structure of Mahindra companies to give young managers a voice at the
highest levels of decision-making. A formation of new board was started, among the 50000
employees of company, 300 bright young executive were selected. Eventually 9 best executives
were sorted to make the new board named as "SHADOW BOARD".

Shadow Boards are a group of

promising young managers that
formulate new business ideas, put
forward their opinions, and give
their suggestions to grow the
business in all forms. With this
idea in mind, Mahindra AFS
(Automotive and Farm Equipment Sector) has been inspiring young employees to collaborate
and propose strategic business suggestions to bring a change in the organization. This initiative
has not only significantly stimulated the functioning of the sector, but has also given fresh ideas
a distinguished place within the organization. It's a platform for young employees to interact
with their leaders in the organization and tide over through their budding stage.

Anand Mahindra with Mahindra Satyam Shadow Board Group

Success of a Shadow Board

The idea has been successful in recognizing exceptional performance, public appreciation for
teams or individuals, sharing best practices across teams, sectors, leadership and inviting
suggestions for making the business larger than life!

A shadow board presentation in 2006 simulated a strategy session which played a vital role in
influencing the top management, because of which Mahindra AFS has been successfully able
to take over businesses that form a crucial part of the group now.

Shadow boards have brought out suggestions like diversification into commercial vehicles like
Mahindra trucks, a round-the-clock helpline, attracting farmer’s children to brand Mahindra
AFS, a more personal approach to distributing increments, Second hand Vehicle Financing and
even a leap into a bold acquisition!

Shadow Board Mentor

The Mahindra group roped in senior managers to act as mentors to the shadow boards.
Typically, the pool of mentors for a shadow board comprises the company's MD and the
functional heads. So, for instance, Ramesh Iyer, managing director, Mahindra Finance, will
mentor a shadow board of the company.

Tenure of Shadow Board

The first shadow board in the Mahindra group, in 2003, had a tenure of two years. Now,
Mahindra shadow boards are reconstituted every year, with 50% of the members being
replaced. This adds dynamism and brings in fresh ideas. On an average, 50% of shadow-board
members have been 30-35 years, 25% below 35 years and 25% above 35 years.
Shadow Board as a career maker

Many of the young managers who have been a part of shadow boards have seen their careers
fast-tracked.

 Mr. Karandikar was the brand head for a utility vehicle, Bolero. Today, he is the head
of product development and marketing for the group’s international business.
 Harish Chavan is currently the COO of the Farm Division business at Mahindra AFS.
 Anirudhha Haldar, 34, is currently the chief marketing officer at Mahindra Holidays.

Other companies with Shadow Board

Years ago, Hindustan Uniliver and general electric had also introduced shadow board in there
management, but they found it difficult to sustain it, as their senior managements didn't get
involved. Between 2000 and 2009, the Adi Godrej group had a young executive board (YEB).
Says Adi Godrej, chairman, Godrej group: "It operated like a shadow board and worked closely
with the group management committee."

Bajaj Auto was also not successful with shadow board in Rahul Bajaj, the chairman of Bajaj
Auto. "Having shadow boards is pointless, as there is no governance involved and it is more
advisory in nature."

Current Shadow Board Members at Tech Mahindra (2017-2018)

Reference

http://economictimes.indiatimes.com/articleshow/6169552.cms?utm_source=contentofinteres
t&utm_medium=text&utm_campaign=cppst

https://en.wikipedia.org/wiki/Mahindra_%26_Mahindra