HINDUSTAN LEVER

One of the most respected MNC operating in India Core brands were maturing HLLs Strategy:

Focus on innovation Prioritized opportunities which built upon existing assets and capabilities Avoided Management talent to work on too many projects

Entered rural market through Breeze 2 in 1 In 1995, launched Kissan Annapurna iodized salt

Strong competencies in marketing and R&D Partnership with manufacturers Cost competitiveness due to competition from local marketers Encapsulation technique to retain iodine in the salt
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Monthly review of financial results at corporate level

DESCRIBE AND EVALUATE THE STRATEGY EMPLOYED BY HINDUSTAN LEVER DURING 19952002 TO GROW THEIR TOP-LINE

Focus on Innovation

Entered rural markets

Prioritized opportunities which built upon existing assets and capabilities Avoided Management talent to work on too many projects Partnership with the manufacturers
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EVALUATE THE CONTROLS AND ORGANIZATION USED BY HINDUSTAN LEVER TO IMPLEMENT ITS GROWTH INITIATIVES IN KISSAN ANNAPURNA IODIZED SALT

Extensive research and development

Partnership with the manufacturers

Used rural marketing network of soaps and shampoo

First emphasized on purity, then on health and finally on encapsulation technique Demonstration vans, health charts in schools, Annapurna scholarships Monthly review of financial results at corporate level
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WHAT CRITERIA WOULD YOU USE TO SELECT

FROM THE MANY GROWTH PROPOSALS THAT HAVE BEEN SUBMITTED TO THE CHAIRMAN,

MR. BANGA? WHY DO YOU CHOOSE THESE CRITERIA?

1) BLEND OF FINANCIAL & NON-FINANCIAL MEASURES IS REQUIRED 2) NON-FINANCIAL MEASURES ARE USED AT LOW LEVELS FOR TASK CONTROL 3) FINANCIAL MEASURES ARE USED AT HIGH LEVELS FOR MANAGEMENT
CONTROL

FINANCIAL MEASURES

NON FINANCIAL MEASURES

o

Sales (value) Expenses Budget compared to actual value of sales Sales (quantity) Net income Contribution margin Budget compared to actual net income Budget compared to actual expenses Return on sales Return on equity

Customer satisfaction Product quality Employee development Productivity improvement Implementation of new products / services
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Environmental compliance

GIVEN YOU DECISIONS, WHAT PRACTICES AND PROCESSES SHOULD HLL RETAIN? WHAT NEW PRACTICES AND PROCESSES WILL HAVE TO BE DEVELOPED?

Retain: Focus on Innovation Continuous R&D Marketing strategies Encouragement to all the levels of management for new ideas New processes and practices to be developed: Better forward integration Logistics management Joint ventures
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THANK YOU