INDEX

SR TOPIC
NO
01 Background
02 History
03 Product & Services
04 Strategic Business Unit
05 Strategic Plan: Vision, Mission, Goals
06 BCG Matrix
07 SWOT Analysis
08 7-S McKinsey Model
09 GE Matrix
10 Product Life Cycle
11 Corporate Governance
 Background
 Founded : 1987

 Founders : Nandlal Madhavlal Dhoot

 Headquarters : Aurangabad ( Maharastra )

 Area served : Consumer Electronics

Home Appliance
Components
Office Automation
Internet
Petroleum
Power

 Industry : Consumer Durables, Oil and Gas etc.

 Share Type : Ordinary

 Revenue : US$4.1 billion (2008)

 Net Income : US$276 million (2008)

 Web site : www.videoconworld.com

  Products & Services :-
Videocon served in
many area like consumer product, home product, oil & gas etc.
Following are the important product produced by videocon
company.

 CONSUMER ELECTRONIS
1. Plasma TV
2. LCD TV
3. 34” TV
4. Slim TV
5. Sound Station
6. Flat TV
7. Conventional TV
8. DVD
9. Multimedia Speakers

 HOME APPLIANCES
1. Frost Free Refrigerators
2. Direct Cool Refrigerators
3. Side by Side Refrigerators
4. Fully Automatic Washing Machines
5. Semi Automatic Washing Machines
6. Microwave Ovens
7. Window AC
8. Split AC
9. Cassette AC
10.Tower AC
  STRATEGIC BUSINESS UNIT ( SBU)
An SBU, in the strategic management sense, is normally an entire division
in large corporations or one of the firms of a diversified company that
carries out a certain business - in one of the business sectors the firm
operates. This approach entails the creation of SBU's to address each
market in which the company is operating.

 SBU OF VIDEOCON COMPANY

 Key StepsTowards Strategic
Planning

MISSION
“To delight & deliver innovative product
through ingenious strategy intrepid
entrepreneurship, improved technology,
insightful marketing and inspired thinking
about the future ”

VISION
“To bring happiness in every home with
global presence offering high quality “e”-
products to ease & enrich humanlife”

GOAL

“To provide a much higher level of service

to all those who
seek information”
 BCG MATRIX

In BCG Matrix product or business unit are identified as Stars, Cash Cow,
Dogs, Question mark. BCG Matrix can used for resource allocation. The
matrix can be explained are as follows.

 Stars (high growth, high market share)

  Stars are using large amounts of cash. Stars are leaders in the
business. Therefore they should also generate large amounts
of cash.
 Stars are frequently roughly in balance on net cash flow. However if
needed any attempt should be made to hold your market share in
Stars, because the rewards will be Cash Cows if market share is
kept.

 Cash Cows (low growth, high market share)

 Profits and cash generation should be high. Because of the

low growth, investments which are needed should be low.
 Cash Cows are often the stars of yesterday and they are the
foundation of a company.

 Dogs (low growth, low market share)

 Avoid and minimize the number of Dogs in a company.

 Watch out for expensive ‘rescue plans’.
 Dogs must deliver cash, otherwise they must be
liquidated.

 Question Marks (high growth, low market share)

 Question Marks have the worst cash characteristics of all,

because they have high cash demands and generate low
returns, because of their low market share.
 If the market share remains unchanged, Question Marks will
simply absorb great amounts of cash.
 Either invest heavily, or sell off, or invest nothing and generate
any cash that you can. Increase market share or deliver cash.
BCG MATRIX OF VIDEOCON COMPANY
  SWOT ANALYSIS
The SWOT is a strategic planning tool to evaluate Strength(S) Weakness(W)
Opportunities(O) & Threats(T) involved in a project, in a business venture
or in any other situation requiring a decision. The SWOT analysis is to
explained with help of following diagram
SWOT ANALYSIS OF VIDEOCON COMPANY
7’S MCKINSEY MODEL
 The 7S Model which they developed and presented became extensively
used by mangers and consultants and is one of the cornerstones of
organisational analysis.

Essentially the model says that any organisation can be best described by
the seven interrelated elements shown above:

Strategy :- Plans for the allocation of a firm's scarce resources, over time,
to reach identified goals. Environment, competition, customers.

Structure:-The way the organization's units relate to each other:

centralized, functional divisions (top-down); decentralized (the trend in
larger organizations); matrix, network, holding, etc.

System:- The procedures, processes and routines that characterize how

important work is to be done: financial systems; hiring, promotion and
performance appraisal systems; information systems.

Skills:- Distinctive capabilities of personnel or of the organization as a

whole.

Staff :- Numbers and types of personnel within the organization.

Style:- Cultural style of the organization and how key managers behave in
achieving the organization’s goals.
Shared Value:- The interconnecting centre of McKinsey's model is: Shared
Values. What the organization stands for and what it believes in. Central
beliefs and attitudes.

Key Points are:-

1. The top 3, strategy , structure and systems, are the hard elements.
The bottom 4, skills, staff, style, and shared values are the soft
elements.
2. At that time, any organisational study focused on the top "hard"
elements and ignored the bottom "soft" elements.
3. The current view is to focus on all 7, accepting that for each
business or enterprise, two or three will be the VITAL ones.
4. The key point is that all the elements are all inter-dependant.
Changes in one will have repercussions on the others. Thus
introduction of new systems will certainly affect skills, and may well
effect structure, style and staff. It could even have an impact on
strategy. Similar repercussions occur with decentralisation.
5. If you just try to change one element on its own, the other element
may well resist the change and try to maintain the status quo.
6. In this sense, any change in organisation is best seen as a shift in
the whole picture.

GENERAL ELECTRIC MODEL

 The GE/McKinsey Matrix template can be used in conjunction with,
or as an alternative to, other tools such as S.W.O.T. Analysis and the
Boston Consulting Group (BCG) Growth Share Matrix in basic strategic
planning and analysis. The GE/McKinsey Matrix differs from the other
tools. Unlike a BCG Matrix template, it uses multiple factors to define
Industry Attractiveness and Business Unit Strength and therefore
overcomes one of the main BCG Matrix limitations. The GE/McKinsey
Matrix identifies the optimum business portfolio as one that matches the
company's strengths to the most attractive industry sectors or markets.

Thus, the objective of the analysis is to position each Strategic

Business Unit (SBU) on the chart depending on the SBU's Strength and
the Attractiveness of the Industry Sector or Market on which it is
focused. Each axis is divided into Low, Medium and High, giving the 3
by 3 nine-cell matrix as depicted below.

The aim of the portfolio analysis is firstly to analyse its current business
portfolio and to decide which SBU’s or branches should receive more or
less investment. Secondly, developed growth strategies for adding new
products and businesses to the portfolio and lastly, to decide which
businesses or products should no longer be retained.

Hence, videocon has a strong business competitive strength and a high

market attractiveness which helps it to exploit attractive industries or
markets.

GE MATRIX OF VIDEOCON COMPANY

 P
R
ODUCT LIFE CYCLE
 The Product Life Cycle refers to the succession of stages a
product goes through. Product Life Cycle Management is the
succession of strategies used by management as a product goes
through its life cycle.

The product life cycle goes through many phases and involves many
professional disciplines and requires many skills, tools and
processes. Product life cycle (PLC) is to do with the life of a product
in the market with respect to business/commercial costs and sales
measures; whereas Product Life cycle Management (PLM) is more to
do with managing descriptions and properties of a product through its
development and useful life, mainly from a business/engineering point
of view.

1. Market introduction Stage

• cost high
• sales volume low
• no/little competition - competitive manufacturers watch for
cceptance/segment growth losses
• demand has to be created
• customers have to be prompted to try the product

2. Growth Stage

• costs reduced due to economies of scale

• sales volume increases significantly
• profitability
• public awarwness
• competition begins to increase with a few new players in
establishing market

3. Maturty Stage
 • Costs are very low as you are well established in market & no
need for publicity.
• Sales volume peaks
• increase in competitive offerings
• prices tend to drop due to the proliferation of competing
products
• brand differentiation, feature diversification, as each player
seeks to differentiate from competition with "how much product"
is offered
• very profitable

4. Decline or Stability Stage

• costs become counter-optimal

• sales volume decline or stabilize
• prices, profitability diminish
• profit becomes more a challenge of production/distribution
efficiency than increased sales
PRODUCT LIFE CYCLE OF VIDEOCON COMPANY

NOTE :-

1] VIDEOCON LCD AT INTRODUCTION STAGE

2] NEXT AT STAR STAGE
3] HUNDAI ELECTROULX AT MATURITY STAGE
4] ALLWYN AT DECLINE STAGE
AND
VIDEOCON COMPANY IS REACHING THE MATURITY STAGE

CORPORATE GOVERNANCE OF VIDEOCON COMPANY

CORPORATE GOVERNANCE

This report sets out the compliance status of the Company on

Corporate Governance as set out in the Amended Clause 49 of the
Listing Agreement with the Stock Exchanges.

I.Company’s Philosophy on Corporate Governance:-

The
Company’s philosophy on Corporate Governance is centered around
maintaining highest standards of integrity, accountability and
professionalism and ensuring transparency and fairness in all its
dealings with stakeholders. The Company believes in and practises
good corporate governance norms both in letter and spirit.

II. Board of Directors:-

1. Composition of the Board of Directors as on September 30, 2007

Category Director No of Directors

Promoter-Non Executive Mr. V N Dhoot
Director
Mr. P N Dhoot 02
Non-Executive - Mr. Naveen B Mandhana
Independent
Mr. Avinash Malpani
Mr. S Padmanabhan 03
Nominee Directors- Mr. D K Jain (Nominated 01
Representing by IFCI Limited)
Lending Institution.

The Board comprises of eminent persons having versatile experience

in the field of management, marketing, finance, technical and
administration.

2. Board/Committee Meetings and Proceedings

A. Institutionalised decision making process:-
With a view to
institutionalize all corporate affairs and setting up systems and
procedures for advance planning for matters requiring
discussion/decisions by the Board, the Company has defined
guidelines for the meetings of the Board of Directors and Committees
thereof. These guidelines seek to systematize the decision making
process at the meetings of Board/Committees, in an informed and
efficient manner.

B. Scheduling and Selection of Agenda Items:-

All
Board/Committee Members are given reasonable notice of the
meetings. These meetings are governed by a structured agenda. The
agenda along with the explanatory notes are distributed well in
advance.

C. Availability of Information to the Members:-

The Members have unqualified access to all information available
with the Company. In fact, all items in the agenda are supported by
detailed background information to enable the members to take
informed decisions. The information generally provided to the
Members include:-
 Quarterly and financial results
 Minutes of the meeting of Audit and other Committees to the
Board;
 Material Transaction
 Related Party Transactions

D. Recording minutes of the proceedings:-

Minutes of the
proceedings each board/committee meetings are recorded. Draft
minutes are circulated amongst all members for their comments. The
minutes of the proceedings of the meetings are entered in the
minutes book.

III. Board Committees:

Currently the board has constituted three committees i.e., Audit
Committee, Shareholders/Investors Grievance Committee and
Remuneration Committee.

1. Audit Committee:-
Composition (As of 30th September, 2007)

Name of the Committee Member Category

Mr. S. Padmanabhan (Chairman ) Non Executive - Independent
Mr. Avinash Malpani Non Executive - Independent
Mr. Naveen B. Mandhana Non Executive - Independent
The Committee members have requisite financial and management
experience and have held or hold senior positions in other reputed
organizations.

2. Remuneration Committee:-
Composition (As of 30th September, 2007)

Name of the Committee Member Category

Mr. Naveen B. Mandhana Non Executive - Independent
(chairman)
Mr. Avinash Malpani Non Executive - Independent
Mr. S. Padmanabhan Non Executive - Independent

3. SHAREHOLDERS/INVESTORS GRIEVANCE COMMITTEE:-

Composition: (As on 30th September, 2007)

Name of the Committee Member Category

Mr. Avinash Malpani Non Executive - Independent
Mr. P.N.Dhoot Non Executive - Independent
Mr. Mr. Naveen B. Mandhana Non Executive - Independent

COMPLIANCE CERTIFICATE OF THE AUDITORS

A certificate from the auditors of the Company regarding compliance
of conditions of Corporate Governance as stipulated under Clause 49
of the Listing Agreement is attached to this report.

COMPLIANCE CERTIFICATE ON CORPORATE GOVERNANCE

To
The Members of

VIDEOCON APPLIANCES LIMITED

We have examined the compliance of conditions of Corporate
Governance by Videocon Appliances Limited, for the year ended on
30th September 2007, as stipulated in Clause 49 of the Listing
Agreement of the said Company with Stock Exchanges.

The Compliance of conditions of Corporate Governance is the

responsibility of the management. Our examination was limited to a
review of the procedures and implementations thereof adopted by the
Company for ensuring the compliance of the conditions of the
corporate governance as stipulated in the said clause. It is neither an
audit nor an expression of opinion on the financial statements of the
Company.

In our opinion and to the best of our information and according to the
explanations given to us and the representations made by the
Directors and the management, we certify that the Company has
complied with, in all material respect, the conditions of Corporate
Governance as stipulated in Clause 49 of the above mentioned
Listing Agreement.

As required by the Guidance Note issued by the Institute of Chartered

Accountants of India, we state that no investor grievance were
pending for a period exceeding one month against the Company, as
per the records maintained by the Investors Grievance Committee
and as per the certificate of the Registrars and Transfer Agents of the
Company.
We further state that such compliance is neither an assurance as to
the future viability of the Company nor of the efficiency or
effectiveness with which the management has
conducted the affairs of the Company.

For KADAM & CO..

Chartered Accountants

U.S.KADAM
Proprietor

Place: Ahmednagar
Date : February 23, 2008

For KHANDELWAL JAIN & CO

Chartered Accountants

SHIVRATAN AGARWAL
Partner