MARUTI :VISION &

MISSION
STRATEGIC MANAGEMENT

FEBRUARY 13, 2017

SHASHANK GAUR
BBA LLB
116
4 SEMESTER
Maruti History :
Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of
Parliament, to meet the growing demand of a personal mode of transport
caused by the lack of an efficient public transport system. It was established
with the objectives of - modernizing the Indian automobile industry,
producing fuel efficient vehicles to conserve scarce resources and producing
indigenous utility cars for the growing needs of the Indian population. A
license and a Joint Venture agreement were signed with the Suzuki Motor
Company of Japan in Oct 1983, by which Suzuki acquired 26% of the equity
and agreed to provide the latest technology as well as Japanese
management practices. Suzuki was preferred for the joint venture because of
its track record in manufacturing and selling small cars all over the world.
There was an option in the agreement to raise Suzukis equity to 40%, which
it exercised in 1987. Five years later, in 1992, Suzuki further increased its
equity to 50% turning Maruti into a non-government organization managed
on the lines of Japanese management practices.

Maruti created history by going into production in a record 13 months. Maruti

is the highest volume car manufacturer in Asia, outside Japan and Korea,
having produced over 5 million vehicles by May 2005. Maruti is one of the
most successful automobile joint ventures, and has made profits every year
since inception till 2000-01. In 2000-01, although Maruti generated operating
profits on an income of Rs 92.5 billion, high depreciation on new model
launches resulted in a book loss.

The Evolution

Marutis history of evolution can be examined in four phases: two phases

during pre-liberalization period (1983-86, 1986-1992) and two phases during
post-liberalization period (1992-97, 1997-2002), followed by the full
privatization of Maruti in June 2003 with the launch of an initial public
offering (IPO).The first phase started when Maruti rolled out its first car in
December 1983. During the initial years Maruti had 883 employees. From
such a modest start the company in just about a decade (beginning of
second phase in 1992) had turned itself into an automobile giant capturing
about 80% of the market share in India. Employees grew to 2000 (end of first
phase 1986), 3900 (end of second phase 1992) and 5700 in 1999.
During the pre-liberalization period (1983-1992) a major source of Marutis
strength was the wholehearted willingness of the Government of India to
subscribe to Suzukis technology and the principles and practices of Japanese
management. Large number of Indian managers, supervisors and workers
were regularly sent to the Suzuki plants in Japan for training. Batches of
Japanese personnel came over to Maruti to train, supervise and manage.
Marutis style of management was essentially to follow Japanese
management practices. It is largely credited for having brought in an
automobile revolution to India. It is the market leader in India. On 17
September, 2007, Maruti Udyog was renamed to Maruti Suzuki India Limited.
The company's headquarters remain in Gurgaon, near Delhi.

The Path to Success for Maruti was as follows:

(a) teamwork and recognition that each employees future growth and
prosperity is totally dependent on the companys growth and prosperity

(b) strict work discipline for individuals and the organization

(c) constant efforts to increase the productivity of labor and capital

(d) steady improvements in quality and reduction in costs

(e) customer orientation

(f) long-term objectives and policies with the confidence to realize the goals

(g) respect of law, ethics and human beings. The path to success
translated into practices that Marutis culture approximated from the
Japanese management practices.

Maruti adopted the norm of wearing a uniform of the same color and quality
of the fabric for all its employees thus giving an identity. All the employees
ate in the same canteen. They commuted in the same buses without any
discrimination in seating arrangements. Employees reported early in shifts so
that there were no time loss in-between shifts. Attendance approximated
around 94-95%. The plant had an open office system and practiced on-the-
job training, quality circles, kaizen activities, teamwork and job- rotation.
Near-total transparency was introduced in the decision-making process.
There were laid-down norms, principles and procedures for group decision
making. These practices were unheard of in other Indian organizations but
they worked well in Maruti. During the pre- liberalization period the focus was
solely on production. Employees were handsomely rewarded with increasing
bonus as Maruti produced more and sold more in a sellers market
commanding an almost monopoly situation.

Business Portfolio:
The Group's principal activity is to manufacture, purchase and sale of Motor
Vehicles and Spare parts. The other activities of the Group comprise of
facilitation of Pre-Owned Car Sales and Car Financing. The Group also
provides services like framing of customized car policies, economical leasing
of car, maintenance management, registration and insurance management,
emergency assistance and accident management. The product range
includes 14 basic models with more than 150 variants. The company has a
sales network of 802 centers in 555 towns and cities, and provides service
support to customers at 2,740 workshops in over 1,335 towns and cities (as
on March 31, 2010). The company is focused on rapidly expanding the sales
and service further across the country. MSIL has been the leader of the
Indian car market for over two and a half decades. The company has two
manufacturing facilities located at Gurgaon and Manesar, south of New Delhi,
India. Both the facilities have a combined capability to produce over a 1.2
million (1,200,000) vehicles annually.

The company plans to expand its manufacturing capacity to 1.75 million by

2013. The company offers a wide range of cars across different segments. It
offers 15 brands and over 150 variants - Maruti 800, people movers, Omni
and Eeco, international brands Alto, Alto-K10, A-star, WagonR, Swift, Ritz and
Estilo, off-roader Gypsy, SUV Grand Vitara, sedans SX4, Swift DZire and
Kizashi. In an environment friendly initiative, in August 2010 Maruti Suzuki
introduced factory fitted CNG option on 5 models across vehicle segments.
These include Eeco, Alto, Estilo, Wagon R and Sx4.
Vision:
Visions of any company are those values on which company works. As the
MUL is started by Governmental initiatives it tends to be more consumer
oriented and hence cost effective, but on the other hand Suzukis
participation ensures not only need of the profit, but of the need of maximum
profit. The only way for this Noras dilemma of selecting principals for
companys working vision ,was to maximize profit and reducing cost by
maximizing output and sales Hence MUL declared its Vision as-

The Leader in the Indian Automobile Industry, Creating

Customer Delight1 and Shareholder's Wealth2; eventually
become a pride of India
Customer Delight1 is making sure that performance, after sales service and
customer support are best and beyond expectation. Shareholders wealth2 is
the prime concern for running business smoothly. MUL knows this and
understands customer is king, he can change the fortune of any company,
hence goes companys brand line: COUNT ON US!
Mission:
Mission is the statement of an organizations purpose, what it wants to
accomplish in the larger environment and its goals which are specific,
realistic and motivating. Missions are described over visions and visions
demand certain objectives.

The main objectives/Missions of MUL are:

- Modernization of the Indian Automobile Industry.

- Developing cars faster and selling them for less.

- Production of fuel-efficient vehicles to conserve scarce resources.

- Production of large number of motor vehicles which was necessary for

economic growth.

- Market Penetration, Market Development Similarly Product Development

and Diversification.

- Partner relationship management, Value chain, Value delivery network.

SWOT ANALYSIS: Consists of analysis of internal environment

(Strength and weakness) and external environments (Opportunity and
Threat).

STERNGHTHS:
1. Contemporary technology. Japanese Management practices (that had
captured Japan over USA to the status of top Auto manufacturing
country in the world)

2. Early mover advantages.

 3. Recruitment is done in very tedious manner ensuring talent and best
professionals, Working, culture.

4. after sale services, distribution, R&D.

5. Is the most fuel-efficient cars producing company in the industry

WEAKNESS:
1. Still depends upon SUZUKI COPORATION, Japan for tech. support, 10%
components are manufactured outside India.

2. Though MUL has launched luxury cars as well its still considered as
poor mans brand.

3. Bureaucracy, Technological disadvantages, Decades of isolation, are

still having a negative impact on the company.

4. must import their diesel engines from Fait.

OPPURTUNITY:
1. first company to roll out suitably designed cars before 2008 as per
Govt.s Proposal of new ethanol (renewable) mixed fuel.

2. Other companies lack economy of scale, so market is still open.

3. Demand is rising

4. Growing market as there is a considerable increase in the demand

levels.

THREAT:
1. Numbers of new Technology driven players and manufactures are in
market.

2. Government reducing support and cutting down the Gas supply quota.

3. Rapid technological changes

4. New players coming in India

5. Fuel prices are increasing at a very fast rate resulting in slowing down
the growth rate of the market

6. Increase in interest rates has inverse result on car sales and is a great
threat to the company.