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project of strategic management
well........ little bit design work and edition of conclusion is remaining then also still hope dat u guyz will enjoy dis one
August 11, 2011
[STRATEGIC LEADERS]
STRATEGIC LEADERS
A PROJECT REPORT ON STRATEGIC MANAGEMENT
SUBMITED BY YATIN, PRABHJOT, SANGEETA, ANISH, VISHWANATH, DANDAPANI, MOSHAMI
SUBMITED TO NES RATNAM COLLEGE
PROJECT GUIDE PREETI KHITANI
N.E.S RATNAM COLLEGE OF ARTS, SCIENCE &COMMERCE BHANDUP (W), MUMBAI.400078
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STUDENTS INVOLVED
SR NO. 1 2 3 4 5 6 7 SANGEETA PATEL YATIN PATIL MOSHAMI PATRA ANISH PINGALE VISHWANATH POOJARI PRABHJOT KAUR DANDAPANI REDDY NAME ROLL NO. 30 31 32 33 34 35 36
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DECLARATION
WE YATIN PATIL, PRABHJOT KAUR, ANISH PINGALE, SANGEETA PATEL, MOSHAMI PATRA, VISHWANATH POOJARI AND DANDA PANI ARE THE STUDENTS OF S.Y.BMS OF NES RATNAM COLLEGE HERE BY DECLARED THAT WE HAVE COMPLETED THIS PROJECT ON PURCHASE MANAGEMENT FOR THE ACADEMICYEAR 2011-12 THE INFORMATION SUBMITTED IS TRUE AND ORIGNAL TO THE BEST OF OUR KNOWLEDGE. STUDENTS SIGN. 1 DATE: 2 3 4 SIGN.OF TEACHER 5 6 7 . . . . . .... ..
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ACKNOWLEDGEMENT
We would like to acknowledge and extend our heartfelt gratitude to the following persons who have made the completion of this Lecture Notes possible: Our project guide Mrs. PREETI GETHANI for her vital encouragement and support. As well as for the help and inspiration she extended. We would also like to thank our group members, friends and families who have provided us with help up to a large extent.
And to God , who made all things possible.
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INDEX
SR PARTICULARS NO. 1 INTRODUCTION 2 3 4 5 6 7 8 9. QUALITIES GENERAL APPROCHES DIFFERENT STRATEGIC LEADERS MAHATMA GANDHI VIJAY MALYA DHIRUBHAI AMBANI RATAN TATA CASE STUDY PAGE NO. 06 07 09 14 15 17 21 26 29 32 33
10. CONCLUSION 11. BIBLO GRAPHY
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INTRODUCTION
"Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations". Strategic leadership refers to a manger·s potential to express a strategic vision for the organization, or a part of the organization, and to motivate and persuade others to acquire that vision. Strategic leadership can also be defined as utilizing strategy in the management of employees. It is the potential to influence organizational members and to execute organizational change. Strategic leaders create organizational structure, allocate resources and express strategic vision. Strategic leaders work in an ambiguous environment on very difficult issues that influence and are influenced by occasions and organizations external to their own. The main objective of strategic leadership is strategic productivity. Another aim of strategic leadership is to develop an environment in which employees forecast the organization·s needs in context of their own job. Strategic leaders encourage the employees in an organization to follow their own ideas. Strategic leaders make greater use of reward and incentive system for encouraging productive and quality employees to show much better performance for their organization. Functional strategic leadership is about inventiveness, perception, and planning to assist an individual in realizing his objectives and goals.
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QUALITIES OF STRATEGIC LEADERS
1. Loyalty Powerful and effective leaders demonstrate their loyalty to their vision by their words and actions. 2. Keeping them updated Efficient and effective leaders keep themselves updated about what is happening within their organization. They have various formal and informal sources of information in the organization. 3. Judicious use of power A strategic leader makes a very wise use of their power. They must play the power game skillfully and try to develop consent for their ideas rather than forcing their ideas upon others. They must push their ideas gradually. 4. Have wider perspective/outlook Strategic leaders just don·t have skills in their narrow specialty but they have a little knowledge about a lot of things. 5. Motivation Strategic leaders must have a zeal for work that goes beyond money and power and also they should have an inclination to achieve goals with energy and determination. 6. Compassion Strategic leaders must understand the views and feelings of their subordinates, and make decisions after considering them.
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7. Self-control Strategic leaders must have the potential to control distracting/disturbing moods and desires, i.e., they must think before acting. 8. Social skills Strategic leaders must be friendly and social. 9. Self-awareness Strategic leaders must have the potential to understand their own moods and emotions, as well as their impact on others. 10. Readiness to delegate and authorize Effective leaders are proficient at delegation. They are well aware of the fact that delegation will avoid overloading of responsibilities on the leaders. They also recognize the fact that authorizing the subordinates to make decisions will motivate them a lot. 11. Articulacy Strong leaders are articulate enough to communicate the vision (vision of where the organization should head) to the organizational members in terms that boost those members. 12. Constancy/ Reliability Strategic leaders constantly convey their vision until it becomes a component of organizational culture. To conclude, Strategic leaders can create vision, express vision, passionately possess vision and persistently drive it to accomplishment.
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GENERAL APPROACH IN STRATEGIC LEADERSHIP
Leaders recognize the need to incorporate aspects of both the analytical and human dimensions to effectively drive the organization forward but how this insight translates into action varies significantly from leader to leader. These differences are largely driven by the bias leaders have for how they divide their time between the two dimensions. This bias is reflected in how leaders answer questions such as the following: 1. 2. 3. 4. What is their primary role as chief strategist? What is their job as a leader during ongoing strategy making? What type of team should their strategy making create? When is strategy making finished?
How leaders answer these questions will ultimately impact their ability to deliver a winning strategy because their responses indicate whether and how they build and lead an organization that is aligned and committed to a particular agenda.
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Question 1: What is their primary role as chief strategist?
Should the focus be on being the architect of the strategy product or being the architect of the strategy process? Is their primary job to come up with the right strategy or is it to manage a process to achieve this outcome? Analytical: From an analytical perspective the chief strategist·s job is to be the ´architect of the perfect strategy product.µ Leaders holding this perspective see the strategy itself as the outcome and managing the process is either ignored or delegated, frequently to individuals who lack line of sight to the senior person. Their concerns center on organizing and mastering the data, developing the arguments and looking for that burst of insight that will drive the organization·s competitive advantage and provide the foundation for future success. Human: Answering the same question from the perspective of the human dimension, the chief strategist·s job is to be the ´architect of the perfect strategy process.µ Leaders holding this perspective see the process as the primary outcome and the product, while important, can and should be built by others. There is a recognition that the product will necessarily evolve so the more important endpoint is to build the capacity for strategic thinking across the group so that change, when it occurs, can be absorbed more quickly and more completely.
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Question 2: What is their job as a leader during ongoing strategy making?
Linked to the first question, this second question focuses on how leaders conceptualize their role as they participate in the ongoing strategy process. Is it to provide bold, clear leadership that elicits confidence in their personal capabilities as ´hero,µ or is it to serve as a ´coach and guideµ who enables others to perform and stand in the limelight? Analytical: Analytical leaders feel the need to personally come up with the right answer. If they are to be the leader, they must be the one with the solutions. They feel obligated to lead from the front on strategic issues, demonstrating expertise through business insights and customer knowledge, skillfully outsmarting the competition and outguessing the marketplace. These leaders are seen as visionary, smart leaders comfortably assuming star status as they fill the role of a Homeric hero. Human: These leaders view themselves as coaches or guides, believing that the organization·s strategy is only as good as the breadth and depth of the understanding and commitment that it attracts. Responsibility for developing the strategy is widely dispersed but carefully coordinated. These leaders focus on guiding and responding while building commitment and empowerment among those building the strategy.
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Question 3: What type of team should their strategy making create?
This third question recognizes that every strategy process defines a community and creates a team. This is true whether the leader is aware of it or not and whether the leader manages it or not. The question being asked is, ´Does the strategy making create an exclusive club of capable thinkers, or create a broad base of ownership and commitment leading to a sense of citizenship across a much larger group?µ Analytical: The analytical approach to strategy creates an exclusive ´inner circleµ of thinkers who are in the know and make most of the decisions. Being part of this group feels good because it is similar to being part of a private society. The common element that binds society members together is their close knit exclusiveness and the extraordinary access and understanding of the data and thinking that leads to the strategy. This smaller group is well versed in the views of the leader and the data, and knows how the different pieces of the strategy fit together. Human: A leader focusing on the human dimension is concerned about building a sense of citizenship among a much larger group of people. It is built around a process that invites much broader participation and relies on input from many others outside of the top team. The aim is to create a sense of belonging and ownership across the organization. In this situation many more people feel they can have an informed opinion about the overall strategy. They believe they have been part of its development, and that they can influence the outcome. In that sense, it is their strategy.
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Question 4: When is strategy making finished?
Most leaders have an idea of how strategy making and time are related. The question being asked is, ´Is strategy making as a discrete set of sequential activities with a defined start and stop? Or, is strategy something that is continually reforming itself, never quite complete or perfected but always in a state of evolution?µ At its essence, the question is, ´In the organization, is the strategy process fundamentally linear with a defined beginning and end or is it fundamentally iterative with no defined endpoint?µ Analytical: From the analytical view good strategy making follows a linear process with each task being ´checked offµ as it is completed. As set out in many strategy texts, it is a set of reasonably well defined steps leading to a fully formed plan of execution. Effectively, the strategy is set for a defined time period and executed. Human: Leaders who lean to the human dimension see strategy as a continuing work in process, something that is more freeflowing, never truly complete but continuously being shaped as interactions occur with customers and competitors and as new issues and knowledge emerge from the people throughout the organization. They are comfortable circling back on key ideas and frequently will drive the strategy process to re-visit critical assumptions and, based on the insights gained, alter course. For these individuals, changes in strategy are markers of leadership success, not leadership failure.
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DIFFERENT STRATEGIC LEADERS
Strategic leadership refers to a manger·s potential to express a strategic vision for the organization, or a part of the organization, and to motivate and persuade others to acquire that vision. Strategic leadership can also be defined as utilizing strategy in the management of employees. It is the potential to influence organizational members and to execute organizational change. In Indian market there are sum strategic leaders who control their business. Every individual have their own thinking and design making style so here strategic leaders also having different thinking styles. Style can be different in the form of making of plans and framing the policies, decision making, implementation of plans, good relationship with various aspect of business, different thinking styles etc. But there is a uniqueness in their strategies which helps organization to achieve the particular goal and objectives in less time in proper way. Different strategic leaders are as follows :
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MAHATMA GANDHI
Smart leaders don't take too many decisions. They take very few decisions and are successful in creating great impact on the outcome. Such leaders don't work within the system but upon the system. For instance, Mahatma Gandhi's decision of breaking salt law at Dandi would have been a stupid act in normal circumstances. But he d ecided to travel from Ahmecabad to Dandi, covering 830 kms on his feet and in the process, delivered number of speeches. This enlightened the people and they followed him. As a result of his move, Dandi Yatra became the symbol of freedom struggle. In addition to Mahatma Gandhi's leadership contribution to freedom struggle, his other sifnificant contribution was nurturing of new leaders like Jawaharlal Nehru, Sardar Vallabhbhai Patel, Abdul Kalam Azad, etc. Many of these leaders had different vision of future India that was not accepted by Mahatma Gandhi, but still, he encouraged them to express their views. This is a great attribute of creative leaders. In the history of 5000 years if India, no other leader has been able to motivate the masses in a way made possible by Mahatma Gandhi. This was possible because Mahatma Gandhi tried to understand people in depth, Which no other leader has succeeded.
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An effective leader is one who knows how much force should be used and when. Mahatma Gandhi was the master of this art. When he launched civil disobedience movement against British rule, some protesters used violence in police station at Chauri Chaura. As a consequence, Mahatma Gandhi immediately called-of the movement despite opposition from every freedom fighter. The reason why Mahatma Gandhi called of the movement was that he feared that government may take strong action which the week freedom movement may not be able to bear. Movement might have dissipated or fissile out. But the sale Mahatma Gandhi gave the call of "DO or Die" when he launched Quit India Movement. He knew that government has become week because of the Second World War and could be crushed with little force. Even though violence was resorted to at many places, but still Mahatma Gandhi continued with the movement. He had unique ability to take advantage of the opponent's weakness.
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DR. VIJAY MALLYA
Call him ¶The king of good times· or the liquor Baron, this charismatic personality·s name is a complete introduction in itself. His story jumps countries, time zones, cars and careers. He believes in living life-king size. His unique style and doing just anything in the most exotic manner shows his extra-ordinary way of life. Blessed with Midas touch, this business tycoon surely knows how to turn any simple opportunity into a goldmine And be it anything! He is a keen sportsman, aviator and yachtsman of distinction, championship horse breeder, and professional race car driver, versatility has always been the key to success for this strategic man. His sharp vision and guts to take on new challenges in life always gave him an edge over other business tycoons.
He is the man who changed the usual perception about a so called ¶multinational company·. Who is this multi-faceted personality? He is none other than Dr. Vijay Mallya
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PROFILE
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Born: December 18, 1955 (age 53)Bantwal, Karnataka, IN Occupation: Rajya Sabha MP, Chairman- United Breweries Group, Kingfisher Airlines, Force India, Royal Challengers Bangalore ,United Racing and Bloodstock Breeders Net worth: US$1.2 billion Age: 52 Fortune: inherited and growing Source: liquor Net Worth: $1.2 billion Country Of Citizenship: India Residence: Bangalore , India, Asia & Australia Industry: Beverages Marital Status: married, 3 children Education: Calcutta University, Bachelor of Arts / Science
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KEY MILESTONES
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Upon assuming the position of Chairman in October 1983, Dr. Mallya initiated the process of defining a corporate structure with performance accountability, inducting professional management and consolidating the unwieldy empire into individual operating divisions. In 1988, Vijay Mallya became a non-resident Indian to pursue global opportunities and to transform the UB Group into India¶s first multinational. In a leveraged buyout , Mallya acquired the global Berger Paints Group with operating companies across four continents and divested it at significant value in 1996 through a successful exit strategy that included five initial public offerings on the stock exchanges in London,Singapore In 1990, Mallya led the restructuring of The UB Group, retaining only the areas of core competence, transforming the vastly diversified UB conglomerate into a handful of key operating businesses that dramatically increased shareholder value
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In 1993 he founded UBICS, Inc, listed on the NASDAQ in 1996, a leading global provider of a broad spectrum of IT services and IT products for the vast US market Mallya personally steered The UB Group·s entry in civil aviation with Kingfisher Airlines, launched in May 2005. The full service luxury domestic airline operates a fleet of 13 brand new aircraft that provide 70 daily flights connecting 16 cities. In its first year of operations Kingfisher Airlines was awarded service excellence awards. On entering the new millennium, The UB Group is considerably more focused and has dramatically increased value for its shareholders through its various operating businesses. Sales of the UB Spirits Division have exceeded 60 million cases (9 liters each) during the fiscal year 2005-06 making the UB Group, the third largest beverage alcohol company in the world. In addition, this Division is one of only three in the world to own seven millionaire brands and at least five brands rated by Drinks International, UK to be amongst the ten fastest growing brands in the world in their respective categories. The market share of the Spirits Division in India is currently 60% and exports to the Middle East, Africa and Asian countries are growing rapidly The UB Group·s Brewing Division has also assumed undisputed market leadership with a national market share in excess of 50%. Through a process of aggressive acquisition and market penetration, The UB Group today controls 60% of the total manufacturing capacity for Beer in India. The flagship brand, Kingfisher is now sold in over 50 countries worldwide having received many accolades for its quality. The flagship brand, Kingfisher is now sold in 32 countries worldwide and its quality has received undisputed praises The newest venture of The UB Group is in Civil Aviation. After the initial launch of UB Air in 1990, Vijay Mallya decided to take advantage of the attractive growth opportunities for Civil Aviation in India, leverage the equity of the Super brand ´Kingfisherµ and utilize the strength of The UB
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Group in consumer product marketing. Kingfisher Airlines Limited launched scheduled Airline services on May 9, 2005 with 4 flights a day with one brand new Airbus A-320 aircraft.
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It was India·s second largest budget carrier. Designer uniforms for stewards, bold usage of colour palette inside the aircraft and the ever so charming kingfisher logo ² that·s Mallya·s flamboyance. Kingfisher airlines proved out to be the most glamorous domestic airlines. In just 10 months from launch, Kingfisher Airlines has received 3 International Awards. The first was the ´Best New Airline of the year award in the Asia Pacific and Middle East regionµ given by the Centre for Asia Pacific Aviation. The second was the ´Skytrax award for service excellenceµ. Skytrax, London is the leading independent research and quality evaluation agency for the World Air Transport Industry. The latest addition to the list of laurels is the ´Best New Domestic Airline for Excellent Services and Cuisineµ award from Pacific Area Travel Writers Association (PATWA), one of the biggest travel writers· organizations in the world. After Mallya·s successful airline venture, it was time now for Entertainment industry. And what better than joining hands with NDTV in launching India·s first lifestyle channel ² NDTV Good Times. UB group owned Kingfisher brand took over the charge for this exotic channel·s promotion and it came into being on September 7, 2007. Vijay Mallya, a sports lover, bought Spykar F1 team along with Micheil Mol in October 2007 for 88 million euros. It was a 50-50 joint venture between him and Mol, a director of Spyker Formula One, of the Netherlands. The world saw India·s first Formula One team ² Force India came into existence Vijay Mallya owns one of the largest private yachts in the world called Indian Empress
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DHIRUBHAI AMBANI
Dhirubhai Ambani was an Indian business magnate and entrepreneur who founded Reliance Industries, petrochemicals, a communications, power, and textiles conglomerate and the only privately owned Indian company in the Fortune 500. Ambani took his company public in 1984. Dhirubhai has been one among the select Forbes billionaires and has also figured in the Sunday Times list of top 50 businessmen in Asia. His life has often been referred to as a true "rags to riches" story. Dhirubhai started off as a small time worker with Arab merchants in the 1950s and moved to Mumbai in 1958 to start his own business in spices. After making modest profits, he moved into textiles and opened his mill near Ahmedabad. Dhirubhai founded Reliance Industries in 1958 and today the company, with over 85,000 employees, provides almost 5% of the Central Government's total tax revenue.
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Management Lessons from Dhirubhai Ambani
1. Dhirajlal Hirachand Ambani Born on December 28, 1932 in Chorwad, Gujarat. Dhirubhai started off as a small time worker with Arab merchants in
the 1950s
Moved to Mumbai in 1958 to start his own business in spices. He moved into textiles and opened his mill near Ahmedabad. 2. During 1950s In the 1950s, the Yemini administration realized that their main unit of
currency, the Rial, was disappearing fast.
It was found that a young man in his twenties was placing unlimited
buy orders for Yemini Rials.
Rials, pure silver coins and was in much demand at the London Bullion
Exchange. Young Dhirubhai bought the Rials, melted them into pure silver and sold it to the bullion traders in London. Entrepreneurship·s true sense lies in the fact that he always looks upon opportunity.
3. During 1960s In 1962, Dhirubhai returned to India and started the Reliance
Commercial Corporation with a capital of Rs.15,000.00. The primary business of Reliance Commercial Corporation was to import polyester yarn and export spices.
Asia Times quotes: ´His people skills were legendary. A former
secretary reveals: He was very helpful. He followed an 'open-door' policy. Employees could walk into his cabin and discuss their problems with him.µ
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4. During 1970s Dhirubhai Ambani is credited with starting equity investing in India.
More than 58,000 investors from various parts of India subscribed to Reliance's IPO in 1977. Dhirubhai was able to convince people of rural Gujarat that being shareholders of his company will only bring returns to their investment.
Reliance Industries holds the distinction that it is the only Pvt. Co.
whose several annual general meetings were held in stadiums.
5. 9 great management lessons from Dhirubhai Ambani Dhirubhaism No 1: Roll up your sleeves and help. sense of ¶do it yourself· He does not wait for infrastructure to be created to support his
operations. He goes out and builds it himself; be it a power plant for his petrochemical enterprise or a canal to bring water from large distances for his cooling plant. Small men like me don't inspire big words!
6. Dhirubhaism No 2: Be a safety net for your team. There used to be a time when our agency Mudra was the target of some
extremely vicious propaganda by our peers,
he gently asked ´Mµ if They needed any help in combating it. Knowledge that he knew and cared for what his team was going
through, and that he was there for Them if needed him, worked wonders for confidence. ´ He gave courage which we never knew we hadµ
7. Dhirubhaism No 3: The silent benefactor. When he helped someone, he never ever breathed a word about it to
anyone else
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8. Dhirubhaism No 4: Dream big, but dream with your eyes open. Whenever a task seemed too big to be accomplished, he would reply: ;
No is no answer!; Not only did he dream big, he taught all of us to do so too.
His favorite phrase ´dream with your eyes open It's difficult but not
impossible!µ
9. 5. Dhirubhaism: Leave the professional alone! management techniques of him is different The simplest strategies are often the hardest to adopt. ´let professionals do the workµ This technique enforced responsibility among his team
´Produce your bestµ
10. 6. Dhirubhaism: Change your orbit, constantly! Dhirubhai's ´orbit theoryµ This is no miracle. When you change orbits, you will create friction. The good news is that
your enemies from your previous orbit will never be able to reach you in your new one. By the time resentment builds up in your new orbit, you should move to the next level. And so on. Changing orbits is the key to our progress as a nation.
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11. 7. The arm-around-the-shoulder leader It was Dhirubhai's very own signature style Arm around the shoulder -With that one simple gesture, he managed
to achieve many things.
This tendency that he had, to draw people towards him, manifested
itself in countless ways. « That did much more than words in letting me know that I belonged, that I had his trust, and that I had him on my side!
12. 8. The Dhirubhai theory of Supply creating Demand He was not an MBA. Nor an economist. But yet he took traditional
market theory and stood it on its head. And succeeded.
When everyone in India would build capacities only after a careful
study of market, he went full steam ahead and created giants of manufacturing plants with unbelievable capacities.
13. 9. Money is not a product by itself, it is a by-product, so don't chase it He did not breathe a word about profits, nor about becoming the
richest
A by-product is something that you don't set out to produce. It is the
spin off when you create something larger.
14. Success Success in attaining that goal will eventually ring in the cash. For
instance, if you work towards creating a name for yourself and earning a good reputation, then money is a logical outcome.
People will pay for your product or service if it is good Sounds too simplistic for belief? Well, look around you and you will
know exactly how true it is.
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RATAN TATA
Leadership style of Rattan Tata
Rattan naval Tata the chairman of the Tata group one of the largest groups of industries, something he inherits from his earlier generation, Brought up by his grandmother due to separation of his parents. Rattan Tata did his schooling from Cathedral and John Cannon School in Mumbai later on he got his Architectural &Engineering degree from Cornell University. From here he joined his family business. After turning down a job offer from IBM he joined the Jamshedpur Tata steel plant working with the Blue collar employees handling blast furnaces.
PEEK IN THE PAST
In 1971 Ratan Tata joined Nelco & turned it into a profit making company. Later on when he joined a sick unit of Tata Empress Mill, he turned it into a dividend declaring company. In 1981 he was declared the chairman of Tata group of industries. Today, the company has been listed in New York stock exchange. The young lad who left the IBM job & brewed the corridors of his own company is today the chairman of Tata group of company listed in stock exchange. His latest expedition is the Tata Elegant , the Tata four wheeler he presented at the Gevena car expo.
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The recognition honoured with Padma Bhushan. He is the member of Price minister council on Trade and industry. Ratan was also honoured by Cornell university as the 26th Robert S. Hatfield fellow in economic education, considered to be the highest honour by the Cornell University. He is board member of the Republic of South Africa·s International Investment Council and is Asia-Pacific advisory committee member for the New York stock exchange.
In the meantime, as many as five senior executives from the group have written about "the many hues of leadership" in the latest edition of the Tata group's internal publication Tata Review, wherein they have praised the leadership styles of the group as also that of Ratan Tata. These include Tata Sons Director R Gopalakrishnan, Tata Sons Finance Director Ishaat Hussain, Tata Industries Managing Director Kishor Chaukar, Tata Sons' Group Human Resources Chief Satish Pradhan and Tata Quality Management Services head Sunil Sinha. Another senior group executive and a search panel member R K Krishna Kumar recently admitted that finding a successor for Ratan Tata was a difficult task and the panel was considering people from both within and outside the group.
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Krishna Kumar, in an internal interview published on the group's website in March, had also praised Ratan Tata for his contributions to not only the group, but the business and industry as a whole and called him a "born leader." Now, Ishaat Hussain has named Ratan Tata among the business leaders who are inventors. "That's why I admire Ratan Tata -- he is such a game changer," he said. Hussain further said that the Tata group leaders, both past and present, subscribe to a form of leadership where shareholder value was relevant and inclusive. Chaukar, on the other hand, said that Ratan Tata was a "terrific combination" of the four necessary leadership characteristics -- character, commitment, competence and courage. Terming 'courage' as one of the most important ingredients to become a leader, Chaukar said: "The courage bit is partly yours and substantially that of the organization you are with. If it had not been for Ratan Tata, I don't know whether I, as an individual, would have had that courage." About Ratan Tata, he further said: "Additionally, he is an amazing indefatigable individual. I have never seen him say, "I am tired, we'll do this tomorrow."
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CASE STUDY
Coca Cola (Pesticide Incident)
INTRODUCTION:
This case study is about the challenges faced by Coca Cola company due to CSE allegations in 2003; the leadership & marketing strategies adopted by Sanjiv Gupta, President and CEO of Coca-Cola India, which helped to regain the trust of consumers, the media, and the government.
ABOUT COCA-COLA COMPANY:
The Coca-Cola Company is the world's largest beverage company, largest manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups in the world and is one of the largest corporations in the United States. The company is best known for its flagship product Coca-Cola, invented by pharmacist John Stitch Pemberton in 1886. The CocaCola formula and brand was bought in 1889 by Asa Candler who incorporated The CocaCola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers nearly 400 brands in over 200 countries or territories and serves 1.5 billion servings each day.
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COCA-COLA INDIA:
Coca-Cola was the leading soft drink brand in India until 1977 when it left rather than reveals its formula to the government and reduces its equity stake as required under the Foreign Exchange Regulation Act. With the acquisition of 5 major brands in 1993, Coca-Cola cemented its presence which gave an ownership of the nation's top soft-drink brands and bottling network. Sanjiv Gupta joined Coke in 1997. With a clear mission, vision & his marketing competency being critical to growth of company he was instrumental to the company·s success in developing a brand relevant to the Indian consumer and vast rural market potential. Interbrain·s Global Brand Scorecard for 2003 ranked Coca-Cola the No. 1 Brand in the World and estimated its brand value at $70.45 billion. With an investment of more than US$1 billion in India from 1993 to 2003, Coca-Cola India announced plans to double its capacity at an investment of $125 million between September 2002 and March 2003 which was encouraged by its performance in 2002, thus making it one of the country·s top international investors.
CSE (CENTRE FOR SCIENCE AND ENVIRONMENT) ALLEGATIONS:
History reveals that companies with the strongest brands, most proactive policies of social responsibility, and deepest relationships with their consumers are the most attractive targets for NGO attacks. CSE issued a press release in August 2003 stating: "12 major cold drink brands sold in and around Delhi contain a deadly cocktail of pesticide residues". The CSE used European norms for maximum permissible limits for pesticides in packaged water ´because the standards set for pesticide residues by the Bureau of Indian Standards (BIS) are vague and undefined.µ Actual Standard set by European Economic Commission
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(EEC) is 0.5 ppb total pesticides 0.1 ppb individual pesticides, but the tests conducted by PML(Pollution Monitoring Laboratory) of CSE revealed that the pesticide residue level was well above the global standard level by 3036 times. The pesticides found were known to cause cancer, damage to the nervous and reproductive systems, birth defects, and severe disruption of the immune system.
COCA COLA RESPONSE:
Coca-Cola & Pepsi challenged the very authenticity of the CSE report. The companies attacked the credibility of the CSE and their lab results but promised to provide this data to the public, threatened legal action against the CSE while seeking a gag order, and contacted the United States Embassy in India for assistance. In a statement published by Sanjiv Gupta, he mentioned that the allegations made by CSE were misleading & unaccredited data is used to discredit trusted and world-class brands. He assured that their soft drinks in India are produced to the same level of purity, regarding pesticides, as the EU criteria for bottled water. In order to regain trust of public, they carried out test individually & published full data to them by means of advertisement & corporate websites.
COCA COLA KEY TO SUCCESS:
The CSE·s allegations of pesticide-contaminated Coke and Coca-Cola India·s response provide an important example of the world·s most important brand under attack and the steps taken in the aftermath. Coke India CEO Sanjiv Gupta and his team had to decide how to rebuild public trust and had to weigh a larger policy decision at the same time
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taking on a leadership role and help create higher standards for food and beverage safety. Following are the key decision implemented: 1. Communicate openly with key constituents, including the public, media, employees, franchisees, the trade/channel, state and national government, CSE and suppliers with a spirit of partnership and a willingness to resolve the issue in a way that benefits the Indian consumer. 2. Attempt to collaborate with the CSE, acknowledging that your goals may be closer together than you initially imagine. Take the time to discover their true motivation, ultimate goal, and ideal outcome. Recognize the enormous reputational benefits that could come from such a partnership, or even a willingness to partner. 3. Choose to differentiate as a socially responsible company. Take advantage of an opportunity to demonstrate leadership in a sphere that is critically important to your key constituents. 4. Recognize the upside for reputational risk on a corporate level if the situation can be turned into a positive. 5. Launched Coca-Cola echo Management System to educate the public, the government, and the media about environmental stewardship activities, about the framework implemented by Coca-Cola India to transform the principle of operating in ways that Protect, Preserve and Enhance the Environment in actions.
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CONCLUSION
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BIBLOGRAPHY
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doc_517556959.docx
project of strategic management
well........ little bit design work and edition of conclusion is remaining then also still hope dat u guyz will enjoy dis one
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STRATEGIC LEADERS
A PROJECT REPORT ON STRATEGIC MANAGEMENT
SUBMITED BY YATIN, PRABHJOT, SANGEETA, ANISH, VISHWANATH, DANDAPANI, MOSHAMI
SUBMITED TO NES RATNAM COLLEGE
PROJECT GUIDE PREETI KHITANI
N.E.S RATNAM COLLEGE OF ARTS, SCIENCE &COMMERCE BHANDUP (W), MUMBAI.400078
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STUDENTS INVOLVED
SR NO. 1 2 3 4 5 6 7 SANGEETA PATEL YATIN PATIL MOSHAMI PATRA ANISH PINGALE VISHWANATH POOJARI PRABHJOT KAUR DANDAPANI REDDY NAME ROLL NO. 30 31 32 33 34 35 36
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DECLARATION
WE YATIN PATIL, PRABHJOT KAUR, ANISH PINGALE, SANGEETA PATEL, MOSHAMI PATRA, VISHWANATH POOJARI AND DANDA PANI ARE THE STUDENTS OF S.Y.BMS OF NES RATNAM COLLEGE HERE BY DECLARED THAT WE HAVE COMPLETED THIS PROJECT ON PURCHASE MANAGEMENT FOR THE ACADEMICYEAR 2011-12 THE INFORMATION SUBMITTED IS TRUE AND ORIGNAL TO THE BEST OF OUR KNOWLEDGE. STUDENTS SIGN. 1 DATE: 2 3 4 SIGN.OF TEACHER 5 6 7 . . . . . .... ..
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ACKNOWLEDGEMENT
We would like to acknowledge and extend our heartfelt gratitude to the following persons who have made the completion of this Lecture Notes possible: Our project guide Mrs. PREETI GETHANI for her vital encouragement and support. As well as for the help and inspiration she extended. We would also like to thank our group members, friends and families who have provided us with help up to a large extent.
And to God , who made all things possible.
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INDEX
SR PARTICULARS NO. 1 INTRODUCTION 2 3 4 5 6 7 8 9. QUALITIES GENERAL APPROCHES DIFFERENT STRATEGIC LEADERS MAHATMA GANDHI VIJAY MALYA DHIRUBHAI AMBANI RATAN TATA CASE STUDY PAGE NO. 06 07 09 14 15 17 21 26 29 32 33
10. CONCLUSION 11. BIBLO GRAPHY
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INTRODUCTION
"Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations". Strategic leadership refers to a manger·s potential to express a strategic vision for the organization, or a part of the organization, and to motivate and persuade others to acquire that vision. Strategic leadership can also be defined as utilizing strategy in the management of employees. It is the potential to influence organizational members and to execute organizational change. Strategic leaders create organizational structure, allocate resources and express strategic vision. Strategic leaders work in an ambiguous environment on very difficult issues that influence and are influenced by occasions and organizations external to their own. The main objective of strategic leadership is strategic productivity. Another aim of strategic leadership is to develop an environment in which employees forecast the organization·s needs in context of their own job. Strategic leaders encourage the employees in an organization to follow their own ideas. Strategic leaders make greater use of reward and incentive system for encouraging productive and quality employees to show much better performance for their organization. Functional strategic leadership is about inventiveness, perception, and planning to assist an individual in realizing his objectives and goals.
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QUALITIES OF STRATEGIC LEADERS
1. Loyalty Powerful and effective leaders demonstrate their loyalty to their vision by their words and actions. 2. Keeping them updated Efficient and effective leaders keep themselves updated about what is happening within their organization. They have various formal and informal sources of information in the organization. 3. Judicious use of power A strategic leader makes a very wise use of their power. They must play the power game skillfully and try to develop consent for their ideas rather than forcing their ideas upon others. They must push their ideas gradually. 4. Have wider perspective/outlook Strategic leaders just don·t have skills in their narrow specialty but they have a little knowledge about a lot of things. 5. Motivation Strategic leaders must have a zeal for work that goes beyond money and power and also they should have an inclination to achieve goals with energy and determination. 6. Compassion Strategic leaders must understand the views and feelings of their subordinates, and make decisions after considering them.
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7. Self-control Strategic leaders must have the potential to control distracting/disturbing moods and desires, i.e., they must think before acting. 8. Social skills Strategic leaders must be friendly and social. 9. Self-awareness Strategic leaders must have the potential to understand their own moods and emotions, as well as their impact on others. 10. Readiness to delegate and authorize Effective leaders are proficient at delegation. They are well aware of the fact that delegation will avoid overloading of responsibilities on the leaders. They also recognize the fact that authorizing the subordinates to make decisions will motivate them a lot. 11. Articulacy Strong leaders are articulate enough to communicate the vision (vision of where the organization should head) to the organizational members in terms that boost those members. 12. Constancy/ Reliability Strategic leaders constantly convey their vision until it becomes a component of organizational culture. To conclude, Strategic leaders can create vision, express vision, passionately possess vision and persistently drive it to accomplishment.
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GENERAL APPROACH IN STRATEGIC LEADERSHIP
Leaders recognize the need to incorporate aspects of both the analytical and human dimensions to effectively drive the organization forward but how this insight translates into action varies significantly from leader to leader. These differences are largely driven by the bias leaders have for how they divide their time between the two dimensions. This bias is reflected in how leaders answer questions such as the following: 1. 2. 3. 4. What is their primary role as chief strategist? What is their job as a leader during ongoing strategy making? What type of team should their strategy making create? When is strategy making finished?
How leaders answer these questions will ultimately impact their ability to deliver a winning strategy because their responses indicate whether and how they build and lead an organization that is aligned and committed to a particular agenda.
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Question 1: What is their primary role as chief strategist?
Should the focus be on being the architect of the strategy product or being the architect of the strategy process? Is their primary job to come up with the right strategy or is it to manage a process to achieve this outcome? Analytical: From an analytical perspective the chief strategist·s job is to be the ´architect of the perfect strategy product.µ Leaders holding this perspective see the strategy itself as the outcome and managing the process is either ignored or delegated, frequently to individuals who lack line of sight to the senior person. Their concerns center on organizing and mastering the data, developing the arguments and looking for that burst of insight that will drive the organization·s competitive advantage and provide the foundation for future success. Human: Answering the same question from the perspective of the human dimension, the chief strategist·s job is to be the ´architect of the perfect strategy process.µ Leaders holding this perspective see the process as the primary outcome and the product, while important, can and should be built by others. There is a recognition that the product will necessarily evolve so the more important endpoint is to build the capacity for strategic thinking across the group so that change, when it occurs, can be absorbed more quickly and more completely.
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Question 2: What is their job as a leader during ongoing strategy making?
Linked to the first question, this second question focuses on how leaders conceptualize their role as they participate in the ongoing strategy process. Is it to provide bold, clear leadership that elicits confidence in their personal capabilities as ´hero,µ or is it to serve as a ´coach and guideµ who enables others to perform and stand in the limelight? Analytical: Analytical leaders feel the need to personally come up with the right answer. If they are to be the leader, they must be the one with the solutions. They feel obligated to lead from the front on strategic issues, demonstrating expertise through business insights and customer knowledge, skillfully outsmarting the competition and outguessing the marketplace. These leaders are seen as visionary, smart leaders comfortably assuming star status as they fill the role of a Homeric hero. Human: These leaders view themselves as coaches or guides, believing that the organization·s strategy is only as good as the breadth and depth of the understanding and commitment that it attracts. Responsibility for developing the strategy is widely dispersed but carefully coordinated. These leaders focus on guiding and responding while building commitment and empowerment among those building the strategy.
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Question 3: What type of team should their strategy making create?
This third question recognizes that every strategy process defines a community and creates a team. This is true whether the leader is aware of it or not and whether the leader manages it or not. The question being asked is, ´Does the strategy making create an exclusive club of capable thinkers, or create a broad base of ownership and commitment leading to a sense of citizenship across a much larger group?µ Analytical: The analytical approach to strategy creates an exclusive ´inner circleµ of thinkers who are in the know and make most of the decisions. Being part of this group feels good because it is similar to being part of a private society. The common element that binds society members together is their close knit exclusiveness and the extraordinary access and understanding of the data and thinking that leads to the strategy. This smaller group is well versed in the views of the leader and the data, and knows how the different pieces of the strategy fit together. Human: A leader focusing on the human dimension is concerned about building a sense of citizenship among a much larger group of people. It is built around a process that invites much broader participation and relies on input from many others outside of the top team. The aim is to create a sense of belonging and ownership across the organization. In this situation many more people feel they can have an informed opinion about the overall strategy. They believe they have been part of its development, and that they can influence the outcome. In that sense, it is their strategy.
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Question 4: When is strategy making finished?
Most leaders have an idea of how strategy making and time are related. The question being asked is, ´Is strategy making as a discrete set of sequential activities with a defined start and stop? Or, is strategy something that is continually reforming itself, never quite complete or perfected but always in a state of evolution?µ At its essence, the question is, ´In the organization, is the strategy process fundamentally linear with a defined beginning and end or is it fundamentally iterative with no defined endpoint?µ Analytical: From the analytical view good strategy making follows a linear process with each task being ´checked offµ as it is completed. As set out in many strategy texts, it is a set of reasonably well defined steps leading to a fully formed plan of execution. Effectively, the strategy is set for a defined time period and executed. Human: Leaders who lean to the human dimension see strategy as a continuing work in process, something that is more freeflowing, never truly complete but continuously being shaped as interactions occur with customers and competitors and as new issues and knowledge emerge from the people throughout the organization. They are comfortable circling back on key ideas and frequently will drive the strategy process to re-visit critical assumptions and, based on the insights gained, alter course. For these individuals, changes in strategy are markers of leadership success, not leadership failure.
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DIFFERENT STRATEGIC LEADERS
Strategic leadership refers to a manger·s potential to express a strategic vision for the organization, or a part of the organization, and to motivate and persuade others to acquire that vision. Strategic leadership can also be defined as utilizing strategy in the management of employees. It is the potential to influence organizational members and to execute organizational change. In Indian market there are sum strategic leaders who control their business. Every individual have their own thinking and design making style so here strategic leaders also having different thinking styles. Style can be different in the form of making of plans and framing the policies, decision making, implementation of plans, good relationship with various aspect of business, different thinking styles etc. But there is a uniqueness in their strategies which helps organization to achieve the particular goal and objectives in less time in proper way. Different strategic leaders are as follows :
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MAHATMA GANDHI
Smart leaders don't take too many decisions. They take very few decisions and are successful in creating great impact on the outcome. Such leaders don't work within the system but upon the system. For instance, Mahatma Gandhi's decision of breaking salt law at Dandi would have been a stupid act in normal circumstances. But he d ecided to travel from Ahmecabad to Dandi, covering 830 kms on his feet and in the process, delivered number of speeches. This enlightened the people and they followed him. As a result of his move, Dandi Yatra became the symbol of freedom struggle. In addition to Mahatma Gandhi's leadership contribution to freedom struggle, his other sifnificant contribution was nurturing of new leaders like Jawaharlal Nehru, Sardar Vallabhbhai Patel, Abdul Kalam Azad, etc. Many of these leaders had different vision of future India that was not accepted by Mahatma Gandhi, but still, he encouraged them to express their views. This is a great attribute of creative leaders. In the history of 5000 years if India, no other leader has been able to motivate the masses in a way made possible by Mahatma Gandhi. This was possible because Mahatma Gandhi tried to understand people in depth, Which no other leader has succeeded.
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An effective leader is one who knows how much force should be used and when. Mahatma Gandhi was the master of this art. When he launched civil disobedience movement against British rule, some protesters used violence in police station at Chauri Chaura. As a consequence, Mahatma Gandhi immediately called-of the movement despite opposition from every freedom fighter. The reason why Mahatma Gandhi called of the movement was that he feared that government may take strong action which the week freedom movement may not be able to bear. Movement might have dissipated or fissile out. But the sale Mahatma Gandhi gave the call of "DO or Die" when he launched Quit India Movement. He knew that government has become week because of the Second World War and could be crushed with little force. Even though violence was resorted to at many places, but still Mahatma Gandhi continued with the movement. He had unique ability to take advantage of the opponent's weakness.
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DR. VIJAY MALLYA
Call him ¶The king of good times· or the liquor Baron, this charismatic personality·s name is a complete introduction in itself. His story jumps countries, time zones, cars and careers. He believes in living life-king size. His unique style and doing just anything in the most exotic manner shows his extra-ordinary way of life. Blessed with Midas touch, this business tycoon surely knows how to turn any simple opportunity into a goldmine And be it anything! He is a keen sportsman, aviator and yachtsman of distinction, championship horse breeder, and professional race car driver, versatility has always been the key to success for this strategic man. His sharp vision and guts to take on new challenges in life always gave him an edge over other business tycoons.
He is the man who changed the usual perception about a so called ¶multinational company·. Who is this multi-faceted personality? He is none other than Dr. Vijay Mallya
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PROFILE
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Born: December 18, 1955 (age 53)Bantwal, Karnataka, IN Occupation: Rajya Sabha MP, Chairman- United Breweries Group, Kingfisher Airlines, Force India, Royal Challengers Bangalore ,United Racing and Bloodstock Breeders Net worth: US$1.2 billion Age: 52 Fortune: inherited and growing Source: liquor Net Worth: $1.2 billion Country Of Citizenship: India Residence: Bangalore , India, Asia & Australia Industry: Beverages Marital Status: married, 3 children Education: Calcutta University, Bachelor of Arts / Science
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KEY MILESTONES
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Upon assuming the position of Chairman in October 1983, Dr. Mallya initiated the process of defining a corporate structure with performance accountability, inducting professional management and consolidating the unwieldy empire into individual operating divisions. In 1988, Vijay Mallya became a non-resident Indian to pursue global opportunities and to transform the UB Group into India¶s first multinational. In a leveraged buyout , Mallya acquired the global Berger Paints Group with operating companies across four continents and divested it at significant value in 1996 through a successful exit strategy that included five initial public offerings on the stock exchanges in London,Singapore In 1990, Mallya led the restructuring of The UB Group, retaining only the areas of core competence, transforming the vastly diversified UB conglomerate into a handful of key operating businesses that dramatically increased shareholder value
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In 1993 he founded UBICS, Inc, listed on the NASDAQ in 1996, a leading global provider of a broad spectrum of IT services and IT products for the vast US market Mallya personally steered The UB Group·s entry in civil aviation with Kingfisher Airlines, launched in May 2005. The full service luxury domestic airline operates a fleet of 13 brand new aircraft that provide 70 daily flights connecting 16 cities. In its first year of operations Kingfisher Airlines was awarded service excellence awards. On entering the new millennium, The UB Group is considerably more focused and has dramatically increased value for its shareholders through its various operating businesses. Sales of the UB Spirits Division have exceeded 60 million cases (9 liters each) during the fiscal year 2005-06 making the UB Group, the third largest beverage alcohol company in the world. In addition, this Division is one of only three in the world to own seven millionaire brands and at least five brands rated by Drinks International, UK to be amongst the ten fastest growing brands in the world in their respective categories. The market share of the Spirits Division in India is currently 60% and exports to the Middle East, Africa and Asian countries are growing rapidly The UB Group·s Brewing Division has also assumed undisputed market leadership with a national market share in excess of 50%. Through a process of aggressive acquisition and market penetration, The UB Group today controls 60% of the total manufacturing capacity for Beer in India. The flagship brand, Kingfisher is now sold in over 50 countries worldwide having received many accolades for its quality. The flagship brand, Kingfisher is now sold in 32 countries worldwide and its quality has received undisputed praises The newest venture of The UB Group is in Civil Aviation. After the initial launch of UB Air in 1990, Vijay Mallya decided to take advantage of the attractive growth opportunities for Civil Aviation in India, leverage the equity of the Super brand ´Kingfisherµ and utilize the strength of The UB
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Group in consumer product marketing. Kingfisher Airlines Limited launched scheduled Airline services on May 9, 2005 with 4 flights a day with one brand new Airbus A-320 aircraft.
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It was India·s second largest budget carrier. Designer uniforms for stewards, bold usage of colour palette inside the aircraft and the ever so charming kingfisher logo ² that·s Mallya·s flamboyance. Kingfisher airlines proved out to be the most glamorous domestic airlines. In just 10 months from launch, Kingfisher Airlines has received 3 International Awards. The first was the ´Best New Airline of the year award in the Asia Pacific and Middle East regionµ given by the Centre for Asia Pacific Aviation. The second was the ´Skytrax award for service excellenceµ. Skytrax, London is the leading independent research and quality evaluation agency for the World Air Transport Industry. The latest addition to the list of laurels is the ´Best New Domestic Airline for Excellent Services and Cuisineµ award from Pacific Area Travel Writers Association (PATWA), one of the biggest travel writers· organizations in the world. After Mallya·s successful airline venture, it was time now for Entertainment industry. And what better than joining hands with NDTV in launching India·s first lifestyle channel ² NDTV Good Times. UB group owned Kingfisher brand took over the charge for this exotic channel·s promotion and it came into being on September 7, 2007. Vijay Mallya, a sports lover, bought Spykar F1 team along with Micheil Mol in October 2007 for 88 million euros. It was a 50-50 joint venture between him and Mol, a director of Spyker Formula One, of the Netherlands. The world saw India·s first Formula One team ² Force India came into existence Vijay Mallya owns one of the largest private yachts in the world called Indian Empress
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DHIRUBHAI AMBANI
Dhirubhai Ambani was an Indian business magnate and entrepreneur who founded Reliance Industries, petrochemicals, a communications, power, and textiles conglomerate and the only privately owned Indian company in the Fortune 500. Ambani took his company public in 1984. Dhirubhai has been one among the select Forbes billionaires and has also figured in the Sunday Times list of top 50 businessmen in Asia. His life has often been referred to as a true "rags to riches" story. Dhirubhai started off as a small time worker with Arab merchants in the 1950s and moved to Mumbai in 1958 to start his own business in spices. After making modest profits, he moved into textiles and opened his mill near Ahmedabad. Dhirubhai founded Reliance Industries in 1958 and today the company, with over 85,000 employees, provides almost 5% of the Central Government's total tax revenue.
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Management Lessons from Dhirubhai Ambani
1. Dhirajlal Hirachand Ambani Born on December 28, 1932 in Chorwad, Gujarat. Dhirubhai started off as a small time worker with Arab merchants in
the 1950s
Moved to Mumbai in 1958 to start his own business in spices. He moved into textiles and opened his mill near Ahmedabad. 2. During 1950s In the 1950s, the Yemini administration realized that their main unit of
currency, the Rial, was disappearing fast.
It was found that a young man in his twenties was placing unlimited
buy orders for Yemini Rials.
Rials, pure silver coins and was in much demand at the London Bullion
Exchange. Young Dhirubhai bought the Rials, melted them into pure silver and sold it to the bullion traders in London. Entrepreneurship·s true sense lies in the fact that he always looks upon opportunity.
3. During 1960s In 1962, Dhirubhai returned to India and started the Reliance
Commercial Corporation with a capital of Rs.15,000.00. The primary business of Reliance Commercial Corporation was to import polyester yarn and export spices.
Asia Times quotes: ´His people skills were legendary. A former
secretary reveals: He was very helpful. He followed an 'open-door' policy. Employees could walk into his cabin and discuss their problems with him.µ
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4. During 1970s Dhirubhai Ambani is credited with starting equity investing in India.
More than 58,000 investors from various parts of India subscribed to Reliance's IPO in 1977. Dhirubhai was able to convince people of rural Gujarat that being shareholders of his company will only bring returns to their investment.
Reliance Industries holds the distinction that it is the only Pvt. Co.
whose several annual general meetings were held in stadiums.
5. 9 great management lessons from Dhirubhai Ambani Dhirubhaism No 1: Roll up your sleeves and help. sense of ¶do it yourself· He does not wait for infrastructure to be created to support his
operations. He goes out and builds it himself; be it a power plant for his petrochemical enterprise or a canal to bring water from large distances for his cooling plant. Small men like me don't inspire big words!
6. Dhirubhaism No 2: Be a safety net for your team. There used to be a time when our agency Mudra was the target of some
extremely vicious propaganda by our peers,
he gently asked ´Mµ if They needed any help in combating it. Knowledge that he knew and cared for what his team was going
through, and that he was there for Them if needed him, worked wonders for confidence. ´ He gave courage which we never knew we hadµ
7. Dhirubhaism No 3: The silent benefactor. When he helped someone, he never ever breathed a word about it to
anyone else
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8. Dhirubhaism No 4: Dream big, but dream with your eyes open. Whenever a task seemed too big to be accomplished, he would reply: ;
No is no answer!; Not only did he dream big, he taught all of us to do so too.
His favorite phrase ´dream with your eyes open It's difficult but not
impossible!µ
9. 5. Dhirubhaism: Leave the professional alone! management techniques of him is different The simplest strategies are often the hardest to adopt. ´let professionals do the workµ This technique enforced responsibility among his team
´Produce your bestµ
10. 6. Dhirubhaism: Change your orbit, constantly! Dhirubhai's ´orbit theoryµ This is no miracle. When you change orbits, you will create friction. The good news is that
your enemies from your previous orbit will never be able to reach you in your new one. By the time resentment builds up in your new orbit, you should move to the next level. And so on. Changing orbits is the key to our progress as a nation.
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11. 7. The arm-around-the-shoulder leader It was Dhirubhai's very own signature style Arm around the shoulder -With that one simple gesture, he managed
to achieve many things.
This tendency that he had, to draw people towards him, manifested
itself in countless ways. « That did much more than words in letting me know that I belonged, that I had his trust, and that I had him on my side!
12. 8. The Dhirubhai theory of Supply creating Demand He was not an MBA. Nor an economist. But yet he took traditional
market theory and stood it on its head. And succeeded.
When everyone in India would build capacities only after a careful
study of market, he went full steam ahead and created giants of manufacturing plants with unbelievable capacities.
13. 9. Money is not a product by itself, it is a by-product, so don't chase it He did not breathe a word about profits, nor about becoming the
richest
A by-product is something that you don't set out to produce. It is the
spin off when you create something larger.
14. Success Success in attaining that goal will eventually ring in the cash. For
instance, if you work towards creating a name for yourself and earning a good reputation, then money is a logical outcome.
People will pay for your product or service if it is good Sounds too simplistic for belief? Well, look around you and you will
know exactly how true it is.
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RATAN TATA
Leadership style of Rattan Tata
Rattan naval Tata the chairman of the Tata group one of the largest groups of industries, something he inherits from his earlier generation, Brought up by his grandmother due to separation of his parents. Rattan Tata did his schooling from Cathedral and John Cannon School in Mumbai later on he got his Architectural &Engineering degree from Cornell University. From here he joined his family business. After turning down a job offer from IBM he joined the Jamshedpur Tata steel plant working with the Blue collar employees handling blast furnaces.
PEEK IN THE PAST
In 1971 Ratan Tata joined Nelco & turned it into a profit making company. Later on when he joined a sick unit of Tata Empress Mill, he turned it into a dividend declaring company. In 1981 he was declared the chairman of Tata group of industries. Today, the company has been listed in New York stock exchange. The young lad who left the IBM job & brewed the corridors of his own company is today the chairman of Tata group of company listed in stock exchange. His latest expedition is the Tata Elegant , the Tata four wheeler he presented at the Gevena car expo.
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The recognition honoured with Padma Bhushan. He is the member of Price minister council on Trade and industry. Ratan was also honoured by Cornell university as the 26th Robert S. Hatfield fellow in economic education, considered to be the highest honour by the Cornell University. He is board member of the Republic of South Africa·s International Investment Council and is Asia-Pacific advisory committee member for the New York stock exchange.
In the meantime, as many as five senior executives from the group have written about "the many hues of leadership" in the latest edition of the Tata group's internal publication Tata Review, wherein they have praised the leadership styles of the group as also that of Ratan Tata. These include Tata Sons Director R Gopalakrishnan, Tata Sons Finance Director Ishaat Hussain, Tata Industries Managing Director Kishor Chaukar, Tata Sons' Group Human Resources Chief Satish Pradhan and Tata Quality Management Services head Sunil Sinha. Another senior group executive and a search panel member R K Krishna Kumar recently admitted that finding a successor for Ratan Tata was a difficult task and the panel was considering people from both within and outside the group.
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Krishna Kumar, in an internal interview published on the group's website in March, had also praised Ratan Tata for his contributions to not only the group, but the business and industry as a whole and called him a "born leader." Now, Ishaat Hussain has named Ratan Tata among the business leaders who are inventors. "That's why I admire Ratan Tata -- he is such a game changer," he said. Hussain further said that the Tata group leaders, both past and present, subscribe to a form of leadership where shareholder value was relevant and inclusive. Chaukar, on the other hand, said that Ratan Tata was a "terrific combination" of the four necessary leadership characteristics -- character, commitment, competence and courage. Terming 'courage' as one of the most important ingredients to become a leader, Chaukar said: "The courage bit is partly yours and substantially that of the organization you are with. If it had not been for Ratan Tata, I don't know whether I, as an individual, would have had that courage." About Ratan Tata, he further said: "Additionally, he is an amazing indefatigable individual. I have never seen him say, "I am tired, we'll do this tomorrow."
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CASE STUDY
Coca Cola (Pesticide Incident)
INTRODUCTION:
This case study is about the challenges faced by Coca Cola company due to CSE allegations in 2003; the leadership & marketing strategies adopted by Sanjiv Gupta, President and CEO of Coca-Cola India, which helped to regain the trust of consumers, the media, and the government.
ABOUT COCA-COLA COMPANY:
The Coca-Cola Company is the world's largest beverage company, largest manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups in the world and is one of the largest corporations in the United States. The company is best known for its flagship product Coca-Cola, invented by pharmacist John Stitch Pemberton in 1886. The CocaCola formula and brand was bought in 1889 by Asa Candler who incorporated The CocaCola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers nearly 400 brands in over 200 countries or territories and serves 1.5 billion servings each day.
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COCA-COLA INDIA:
Coca-Cola was the leading soft drink brand in India until 1977 when it left rather than reveals its formula to the government and reduces its equity stake as required under the Foreign Exchange Regulation Act. With the acquisition of 5 major brands in 1993, Coca-Cola cemented its presence which gave an ownership of the nation's top soft-drink brands and bottling network. Sanjiv Gupta joined Coke in 1997. With a clear mission, vision & his marketing competency being critical to growth of company he was instrumental to the company·s success in developing a brand relevant to the Indian consumer and vast rural market potential. Interbrain·s Global Brand Scorecard for 2003 ranked Coca-Cola the No. 1 Brand in the World and estimated its brand value at $70.45 billion. With an investment of more than US$1 billion in India from 1993 to 2003, Coca-Cola India announced plans to double its capacity at an investment of $125 million between September 2002 and March 2003 which was encouraged by its performance in 2002, thus making it one of the country·s top international investors.
CSE (CENTRE FOR SCIENCE AND ENVIRONMENT) ALLEGATIONS:
History reveals that companies with the strongest brands, most proactive policies of social responsibility, and deepest relationships with their consumers are the most attractive targets for NGO attacks. CSE issued a press release in August 2003 stating: "12 major cold drink brands sold in and around Delhi contain a deadly cocktail of pesticide residues". The CSE used European norms for maximum permissible limits for pesticides in packaged water ´because the standards set for pesticide residues by the Bureau of Indian Standards (BIS) are vague and undefined.µ Actual Standard set by European Economic Commission
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(EEC) is 0.5 ppb total pesticides 0.1 ppb individual pesticides, but the tests conducted by PML(Pollution Monitoring Laboratory) of CSE revealed that the pesticide residue level was well above the global standard level by 3036 times. The pesticides found were known to cause cancer, damage to the nervous and reproductive systems, birth defects, and severe disruption of the immune system.
COCA COLA RESPONSE:
Coca-Cola & Pepsi challenged the very authenticity of the CSE report. The companies attacked the credibility of the CSE and their lab results but promised to provide this data to the public, threatened legal action against the CSE while seeking a gag order, and contacted the United States Embassy in India for assistance. In a statement published by Sanjiv Gupta, he mentioned that the allegations made by CSE were misleading & unaccredited data is used to discredit trusted and world-class brands. He assured that their soft drinks in India are produced to the same level of purity, regarding pesticides, as the EU criteria for bottled water. In order to regain trust of public, they carried out test individually & published full data to them by means of advertisement & corporate websites.
COCA COLA KEY TO SUCCESS:
The CSE·s allegations of pesticide-contaminated Coke and Coca-Cola India·s response provide an important example of the world·s most important brand under attack and the steps taken in the aftermath. Coke India CEO Sanjiv Gupta and his team had to decide how to rebuild public trust and had to weigh a larger policy decision at the same time
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taking on a leadership role and help create higher standards for food and beverage safety. Following are the key decision implemented: 1. Communicate openly with key constituents, including the public, media, employees, franchisees, the trade/channel, state and national government, CSE and suppliers with a spirit of partnership and a willingness to resolve the issue in a way that benefits the Indian consumer. 2. Attempt to collaborate with the CSE, acknowledging that your goals may be closer together than you initially imagine. Take the time to discover their true motivation, ultimate goal, and ideal outcome. Recognize the enormous reputational benefits that could come from such a partnership, or even a willingness to partner. 3. Choose to differentiate as a socially responsible company. Take advantage of an opportunity to demonstrate leadership in a sphere that is critically important to your key constituents. 4. Recognize the upside for reputational risk on a corporate level if the situation can be turned into a positive. 5. Launched Coca-Cola echo Management System to educate the public, the government, and the media about environmental stewardship activities, about the framework implemented by Coca-Cola India to transform the principle of operating in ways that Protect, Preserve and Enhance the Environment in actions.
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CONCLUSION
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BIBLOGRAPHY
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doc_517556959.docx
