HR STRATEGY FRAMEWORK

Source: Aligned at the Top survey, Deloitte Touche Tohmatsu and the Economist Intelligence Unit, 2007.

Organization al development Shortfall in talent availability

Unclear metrics

HR Issues in IMC Crossfunctional Training Ineffective Compensatio n strategy

Regulatory compliance

Communicati on gap

HR STRATEGIES
ASSOCIATE LOYALTY integrate associates around the world into the corporate culture described in House of Orientation and create new international development programs

RECRUITING YOUNG TALENT Develop international standards and expand junior executive programs worldwide

HARMONIZING CAREER AND FAMILY offering more options for harmonizing career and family life for both mothers and fathers

EDUCATION AND LIFELONG LEARNING operate a systematic competence management scheme and increase the number of associate training programs

EQUAL OPPORTUNITIES FOR WOMEN promote employment and development opportunities for women

GENERATION 50PLUS boost the health and performance of older associates support them in career changes

LIQUIDITY
Comparing Financials of IMCs peer tier-1 companies- Bosch India & Motherson Sumi Systems
Dec '12 Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from investing activities Net Cash (used in)/from Financing Activities Bosch India Motherson Sumi Systems 1346.2 649.7 959.1 Analysis

-933

money generated by a company's core business 600 activities is higher for Bosch hence has more ability to make profits thus will be preferred by investors Bosch is re-investing more in its business hence is -355.9 more sustainble

Shows how often company goes to the -156.2 -198.8 shareholders to raise new money or how efficiently it pays back its debt, which is good for Motherson Sumi Systems IMC should work on keeping the cash inflows from operating activities higher like Bosch to sustain its day to day operations IMC should start investing and borrow long-term funds to pay back its debt so that it attracts investments by other investors thereby increasing their production capacity African markets offers same opportunities for untapped growth that were available in China before it grew to its current status as the worlds largest car market--- through JVs and startegic alliances IMC should invest hence try to reduce its cost by outsourcing its operationg activities by low labour cost, transportation & communication
Source: http://www.moneycontrol.com/financials/bosch/cash-flow/B05#B05 http://www.moneycontrol.com/financials/mothersonsumisystems/cash-flow/MSS01#MSS01

PROFITABILITY
Comparing Financials of IMCs peer tier-1 companies- Bosch India & Motherson Sumi Systems Mar '13 Mar '12 Mar '11 Mar '13 Mar '12 Mar '11 Bosch India Operating Profit Margin(%)=operating income/revenue Gross Profit Margin(%)= (Revenue-COGS)/Revenue Return On Capital Employed(%)= EBIT/Avg. Capital employed 15.58 17.39 16.09 Motherson Sumi Systems 17.58 15.99 Analysis

Shows the operating efficiency and 15.45 should be increasing for good growth 12.52 Shows the efficiency of production & should be stable and increasing

11.34

14.19

12.3

14.21

12.71

23.47

27.97

23.76

28.58

25.23

21.92 Shows the efficiency of long term funds

Operating Profit margin & Gross profit Margins of Motherson Sumi systems are better than Bosch India even though its revenue & sales turnover is half of Bosch India

Thus IMC should Focus on improving profit margins by: Saving Taxes Diversifying its portfolio in other potential markets Focus on reducing complexity and competing where it can win therefore IMC should Leave markets where it lacks scale or which are unprofitable and cost more Above left-out customers will be served under IMCs new segment of Private Clients
Source: http://www.moneycontrol.com/financials/bosch/ratios/B05#B05 http://www.moneycontrol.com/financials/mothersonsumisystems/ratios/MSS01#MSS01

SUSTAINABILITY

Sources of Funds: Due to underperformance of IMCs business operations- should go for long term funds like: Issue of Capital (Equity/Preference) Increase in Long term liabilities Sale of Fixed assets or Investments

Application of Funds: To overcome challenges of Complex distribution Unavailability of inventory stocks Increasing working capital requirement IMC should go for short term uses of funds that will cover: Operating Loss Non operating expenses Dividends paid Increase in Working Capital

THANK YOU