BRAND FAILURE

A study on Satyam, Maytas Infra and Maytas Properties

Satyam Brand Failure

Satyam is the 4th largest software company in India
Company announced Acquisition of 51%

stake in Maytas Infra and 100% stake in Maytas Properties on 16th Dec 2008 but were unsuccessful This was mainly done to hide the irregularities in the accounts of Satyam

Contd
It is rather an example of Peoples failure rather than brand failure.
Mr. Ramalinga Rajus greed for land led to

this debacle It is also said the close association with the political leaders is one of the reasons

What Management can do??

Change the name of the company
Restore the management of the company

and appoint some reputed people as the board of directors The image of the company can be revived by a series of press conferences highlighting the ongoing contracts with the clients It can also be merged with any other software company

Maytas Infra
The company is run by the sons of Ramalinga Raju
It was started in the late 1980s by Ramalinga

Raju The main reason for the debacle of Maytas Infra is due to the debacle of Satyam

What management can do??

Reconstitution of the board
Try building confidence in the clients to get

back the lost projects Possibly enter into a joint venture with other infrastructure firms like Gammon India, DLF, IRB, GMR etc.

Maytas Properties
One of the reasons for the debacle of Maytas properties is the ongoing economic slowdown The company has huge land banks and the prices have dropped down in the real estate significantly

What management can do??

In spite of laying off the employees the company should try to build up confidence among the employees about their future in

the organization It can be merged with Maytas Infra The combined entity can have a lot of synergies and low costs The name of the firm cam also be changed

Thank you