Aditya Birla Group

History

Originated by: Seth Shiv Narayan Birla in 1870

Founded by : Ghanshyamdas Birla in 1919
Incorporated by : Aditya Vikram Birla in 1960
Taken over by: Kumar Mangalam Birla in 1995
Overview - Company profile

Public Company
Type of Company: Premium global conglomerate
Incorporated: 1870
Employees: 72,000 in India and 120,000 globally
Sales: $7.59 billion (2012)
Revenue: $4.6 billion per year
Stock Exchanges: India

A US $40 billion corporation, the Aditya Birla Group is in the League of Fortune
500. It is anchored by an extraordinary force of over 120,000 employees belonging
to 42 nationalities.
The Group has been ranked Number 4 in the global 'Top Companies for Leaders'
survey and ranked Number 1 in Asia Pacific for 2011. 'Top Companies for Leaders'
is the most comprehensive study of organizational leadership in the world
conducted by Aon Hewitt, Fortune Magazine, and RBL (a strategic HR and
Leadership Advisory firm). The Group has topped the Nielsen's Corporate Image
Monitor 2013-14 and emerged as the Number 1 corporate, the 'Best in Class', for
the second consecutive year.
Over 50 per cent of the Aditya Birla Group's revenues flow from its overseas
operations. The Group operates in 36 countries Australia, Austria, Bangladesh,
Brazil, Canada, China, Egypt, France, Germany, Hungary, India, Indonesia, Italy,
Ivory Coast, Japan, Korea, Laos, Luxembourg, Malaysia, Myanmar, Philippines,

Poland, Russia, Singapore, South Africa, Spain, Sri Lanka, Sweden, Switzerland,
Tanzania, Thailand, Turkey, UAE, UK, USA, and Vietnam.
Aditya Birla Group The Global Scenario

Around the world, the company is known for:

A metals powerhouse, among the world's most cost-efficient aluminium and
copper producers. Hindalco-Novelis is the largest aluminium rolling
company. It is one of the three biggest producers of primary aluminium in
Asia with the largest single location copper smelter
No.1 in viscose staple fibre (Grasim)
No.1 in carbon black(Aditya Birla Nuvo)
The fourth-largest producer of insulators(Birla NGK Insulators)
The fourth-largest producer of acrylic fibre
Among the top 10 cement producers
Among the best energy-efficient fertilizer plants(Indo Gulf)
The largest Indian MNC with manufacturing operations in the USA

Aditya Birla Group The Indian Scenario

In India, they have accomplished:
The largest fashion (premium branded apparel) and lifestyle player
The second-largest manufacturer and largest exporter of viscose filament
yarn (Aditya Birla Nuvo)
The largest producer in the chlor-alkali sector
Among the top three mobile telephony companies(Idea Cellular)

 A leading player in life insurance and asset management(Birla Sun Life

Insurance Co.)
Among the top two supermarket chains in the retail business
Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where
success does not come in the way of the need to keep learning afresh, to keep
experimenting.

Aditya Birla Group Beyond Business

Works in 3,000 villages
Reaches out to seven million people, annually, through the Aditya Birla
Centre for Community Initiatives and Rural Development spearheaded by
Mrs. Rajashree Birla
Focuses on healthcare, education, sustainable livelihood, infrastructure and
espousing social reform in India, Brazil and Egypt, as well as Philippines,
Thailand, Laos, Indonesia, Korea and other Asian countries

In India:
The Aditya Birla Group runs 42 schools, which provide quality education to
45,000 children. Of these 18,000 students belong to the underprivileged
segment. Merit scholarships are given to an additional 12,000 children from
the interiors.
The 18 hospitals run by the Aditya Birla Group tend to more than a million
villagers.
In line with its commitment to sustainable development, the Aditya Birla
Group has partnered with Columbia University in establishing the Columbia
Global Centre's Earth Institute in Mumbai.
The idea of embedding CSR as a way of life in organizations has led to the
setting up of the FICCI Aditya Birla CSR Centre for Excellence, in Delhi.
The Aditya Birla Group transcends the conventional barriers of business
because we believe it is our duty to facilitate inclusive growth.

Chronology
Key Dates

1870 Seth Shiv Narayan Birla launches a cotton- and jute-trading business in the
town of Pilani, in Rajasthan, India.
1919 Grandson Ghanshyamdas Birla sets up a jute mill, establishing the family's
industrial holdings.
1947 The Birla family sets up the Grasim weaving plant, later adding production of
rayon.
1958 The company establishes Hindalco for production of aluminum.
1966 Indian Rayon Corporation is acquired.
1969 Under Aditya Birla, the company launches international expansion, founding
Indo Thai Synthetics in Thailand.
1978 Carbon black production is launched in Thailand.
1988 Indo Gulf is formed under Hindalco for the production of fertilizer.
1995 Aditya Birla dies and is succeeded by son Kumar Mangalam Birla, who later
leads a restructuring and streamlining of the group; a joint venture, Birla AT&T, is
formed.
1998 Info Gulf begins copper production; Birla enters Canada with the purchase of
Atholville Pulp Mill in New Brunswick.
1999 Birla adds financial services through an insurance joint venture with Canada's
Sun Life.
2000 Birla AT&T merges with Tata Communications; Hindalco acquires Indal.
2002 Hindalco restructures and spins off Indo Gulf Fertilizers; Anapurna Foils is
acquired.

2003 Birla acquires Nifty Copper and Mt. Gordon Copper mines in Australia; the
company enters China with the creation of the carbon black joint venture, Liaoning
Birla.
2004 Indal merges into Hindalco.
2005 Construction of a new aluminum facility begins in Orissa, India; the St. Anne
Nackawic Pulp Mill in Canada is acquired.
2006 The company announces plans to build a new viscose staple fiber plant in
Laos.
Principal Subsidiaries

Aditya Birla Chemicals (Thailand) Ltd.

Aditya Birla Nuvo Ltd.
Alexandria Carbon Black Company S.A.E. (Egypt)
Alexandria Fiber Company S.A.E. (Egypt)
AV Cell Inc. (Canada)
AV Nackawic Inc. (Canada)
Birla Mineral Resources Pty. Ltd. (Australia)
Birla Mt. Gordon Pty. Ltd. (Australia)
Century Textiles
Grasim Industries Limited
Hindalco Industries Limited
Indo Gulf Fertilisers Limited

 Indo Phil Textile Mills (Philippines)

Indo Thai Synthetics
Liaoning Birla Carbon Co. Ltd. (China)
Pan Century Edible Oils (Malaysia)
PSI Data Systems Limited
PT Elegant Textile Industry (Indonesia)
PT Indo Bharat Rayon (Indonesia)
PT Sunrise Bumi (Indonesia)
Thai Acrylic Fibre
Thai Carbon Black
Thai Peroxide
Thai Rayon
TransWorks Information Services Ltd.
Principal Competitors

RPG Enterprises
Tata Sons Ltd.

Murugappa Group

Jaypee Group

Amalgamations Ltd.

 Dabur India Ltd.

Balmer Lawrie and Company Ltd.

Escorts Ltd.

HMT Ltd.

Greaves Cotton Ltd.

Bombay Burmah Trading Corporation.

Changes taken by K.M.Birla

1.Retirement policy
He introduced a retirement policy in 1995,on the basis of which around 325
senior employees, who were there early 60s,had quit the organization in the
next five years .subsequently about 400young employees replaced them.
Meanwhile, answering the critics he said, "people in the group about twice
my age when I took over as chairman. I had great respect for them
personally, but I also feel the need for change.
2. Corporate logo
In 1996,he launched for the first time a corporate identity that would serve a
corporate logo. The group selected the rising sun as the logo, which signified
optimism and served as a unification symbol for the group.
K.M.Birla said, The new corporate logo helped in bringing various
companies of the group together. This helped the organization to re -energize
and get started to the path of change.

3. Recruitment process

 K.M. Birla also changed the groups policy in house recruitment. In 1996, he
also made changes in groups HR system. He hired professionals from other
companies into his management team.
4.Change in decision making
The partha system of daily financial reporting which focused mainly on
production was replaced with an Economic value added model. This model
focuses on the aspects of profitability, asset productivity and growth.
K.M. Birla also established aditya birla management corporation limited, the
strategic decision making for ensuring the best practices across the group
companies.
K.M.Birla decided to reduce the groups dependence on fiber based business where its
market share was low. Instead he decided to concentrate on non-ferrous metals as there
was less competition and hindalco already had a big presence in the aluminum
sector

Perspectives of Company

CSR vision

"To actively contribute to the social and economic development of

the communities in which we operate, and, in so doing, to build a
better, sustainable way of life for the weaker sections of society
and raise the human development index of our country."

Our Values: The Backbone of the Aditya Birla Group

As said by Mr. Kumar Mangalam Birla

The values of any organization define its character and personality. Values guide,
shape and influence our behaviour and actions. Mr. Kumar Mangalam Birla
stresses on the importance of the group's values.
Integrity
We define integrity as honesty in every action. We shall act and take decisions in a
manner that these are fair, honest and follow the highest standards of
professionalism. Integrity shall be the cornerstone for all our dealings, be it with
our customers, our employees, suppliers, our partners, shareholders, the
communities we serve or the government.
Commitment
On the foundation of integrity, we see commitment as doing whatever it takes to
deliver as promised. Each one of us shall take ownership for our own work, teams
and the part of the organisation we are responsible for. Through this value, we shall
build an even sharper results-oriented culture that is high on reliability and
accountability. Our commitment is likely to make us a formidable leader and
competitor in every market that we are in.

Passion
We define passion as a missionary zeal arising out of an emotional engagement
with work which inspires each one to give his or her best. All of us are expected to
be enthusiastic in the pursuit of our goals and objectives. We shall recruit and
actively encourage employees with a 'fire in the belly'. With this value, we hope to
build a culture of innovation and breakthrough thinking, leading to superior
customer satisfaction and value creation.
Seamlessness
We understand seamlessness as thinking and working together across functional
silos, hierarchy levels, across business lines and geographies. Each one of us shall
demonstrate high level of teamwork through sharing and collaborative efforts and
garner the synergy benefits from working together. Before we can truly benefit
from a borderless world, we need to build a borderless organisation. We visualise
free flow of knowledge and information across the group.
Speed
We look upon speed as responding to internal and external customers with a sense
of urgency. We shall continuously seek to crash timelines and ensure expeditious
completion of our tasks. Through this value, we hope to build an agile and
proactive organisation that is prompt to respond to the present and future needs of
our customers.

Products
Aditya Birla Nuvo
SECTOR

Textiles, chemicals, agribusiness, insulators, telecommunications, financial services

PRODUCT

Branded garments, viscose filament yarn, fertilisers, insulators, textiles, life insurance, asset
management, non-banking financial services, distribution and wealth management, broking,

general insurance advisory and broking, private equity investment, advisory and management
services, cellular services, branded apparel retailing
BRANDS

Louis Philippe, Van Heusen, Allen Solly, Peter England, Birla Shaktiman Urea, Krishidev,
Aditya Birla Insulators, Linen Club, Pyroguard, Ray One, Nuvo Lana, Jaya Shree, Kolorone,
Idea, The Collective, Planet Fashion, More.
Grasim industries Ltd
SECTOR

Cement (grey and white), textiles, chemicals

PRODUCT

Cement, viscose staple fibre, rayon grade pulp, ready mix concrete, chemicals, textiles
BRANDS

Birla Super, Vikram Cement, Rajashree Cement, Birla White, UltraTech Concrete, UltraTech
Cement, Graveria, Birla Cellulose

Hindalco Industries Limited

SECTOR

Non-ferrous metals, chemicals, mining, agribusiness

PRODUCT

Aluminium, copper, aluminium rolled products (sheet and foil), cans, primary metal, recycling,
caustic soda, aerospace alloys, alumina, power generation and aluminium smelting
BRANDS

Everlast aluminium roofing sheets, Freshwrapp aluminium foil, Freshpakk, semi-rigid

containers, Permashield, waterproofing, Aluminium foil, Hindalco extrusions, Birla Copper,
Birla Gold, Birla Silver
Ultratech cement limited
SECTOR

Cement (grey and white)

PRODUCT

Cement, ready-mix concrete

BRANDS

UltraTech Cement, UltraTech Concrete

Organization process

Processes lets the group to achieve:

Quality and quantity
Cost effectiveness
Delivery and speed
Innovation and intellectual capital

 Productivity and pride

Processes are essential for leading the organization towards
excellence and it is achieved through:

1. work environment: The group provide best working conditions

to its employees for effective and efficient output.
2. Assets management: The group considers the profitability
comes from managing its employees , properties effeciently so as
to have profitability as well as stability.
3. Supply Chain Management: the group has best and long term
relations with its suppliers , intermediaries , providers and
customers which is based on trust factor to deliver best quality
product and services.
4. Market and customer orientation: it is the most trusted brand of
the country and have a good market share and long chain of
customers.
5. Quality management: The group never comprises on quality
and hence it is a premium selling brand.
6. People management: customers , employees , stakeholders are
taken care in the best possible way .
7. Innovation and technology: The group has the best R&D
department in the country to deliver innovation with quality to the
demanding customers .

1. Fixing the objectives of the organisation

At the top level, administrative management first fixes the common objectives of
organisation. At the middle level, executive management fix the departmental
objectives. Lastly, at the lower level, supervisory management fix the day-to-day
objectives. All the objectives of the organisation must be specific and realistic.
2. Finding activities must for achieving objectives

After fixing the objectives, the top-level management prepares a list of different
activities (or works) which are required to be carried out for achieving these
objectives. This list is prepared at random without following any sequence or
order. This is a very important step because it helps to avoid duplication,
overlapping and wastage of efforts.

3. Grouping the similar activities

All similar or related activities having a common purpose are grouped together to
make departments. For e.g. all activities or works which are directly or indirectly
connected with purchasing are grouped together to make the Purchase Department.
So various departments such as Purchase, Production, Marketing, Finance, etc. are
made.
4. Defining responsibilities of each employee

The responsibilities (duties) of each employee are clearly defined. This will result
in the selection of a right person for the right post / job. He / she will know exactly
what to do and what not to do. Therefore, it will result in efficiency.
5. Delegating authority to employees

Each employee is delegated (surrender or given) authority. Without authority, the

employees cannot carry out their responsibilities. Authority is the right to give
orders and the power to get obedience. The authority given to an employee should
be equal to the responsibility given to him.

6. Defining authority relationship

When two or more persons work together for a common goal, it becomes
necessary to clearly define the authority relationship between them. Each person
should know who is his superior, from who he should take orders, and to whom he
will be answerable. Similarly, each superior should know what authority he has
over his subordinates.
7. Providing employees all required resources

After defining the authority relationships, the employees are provided with all the
material and financial resources, which are required for achieving the objectives of
the organisation. So in this step, the employees actually start working for a
common goal.
8. Coordinating efforts of all to achieve goals

This is the last stage or step in the process of organisation. Here, the efforts of all
the individuals, groups, departments, etc. are brought together and co-coordinated
towards the common objectives of the organisation.

Hr policies of Aditya birla group

HR policies allows Aditya birla group to be clear with employees on:
The nature of the organisation
What they should expect from the company
What the company expects of them
How policies and procedures work at the company

 What is acceptable and unacceptable behavior.

The consequences of unacceptable behavior.
The three tier HR structure enabling (efforts to drive, manage and sustain the
change agenda) across the organization comprises Group HR, Business (SBU)HR ,
Unit HR, all backed by a robust and enabling HR Governance model.
HUMAN CAPITAL:
Among Human Resources initiatives taken during the FY 2007- 08 to retain and
groom talent are:
1. Created new channels of communication.
2. Geography wise HR partners to aid employee interaction.
3. PSI Buddies for all new hires on their date of joining the
organization.
4. Initiated Speak your Mind : projects interface with HR.
5. Various spot awards and informal rewards recognizing
deserving PSIans.
6. Training boot camp for freshers.
7. Strengthen the Training and Competency function,
introducing the Monthly training calendars.
8. Employee integration activities to foster fun at workplace.
9. Routine medical check ups of project team members.

Standards of Professional Conduct:

The Employer of Professional Responsibility provides that employees shall:
Comply with and abide by all rules and regulations.
Comply with and abide by all State and Federal laws and regulations.
Maintain the highest professional standards.
Commit no act of forgery or alteration of documents or records.
Commit no act of theft, damage or destruction of Employer or property.
Cause no physical harm to any employee.
Engage in no activity that obstructs the administration of disciplinary procedures
or review
Make no unauthorized commitments or promises binding Employer or any of its
employees

HR schemes:
Aditya Birla Group classifies its various HR initiatives over the last five years into the
following categories:
1. Recruitment and staffing.
2. Nurturing talent.

3. Performance management.
4. opportunities for learning,
5. Rewards and recognition.
6. Group-wide people process.
7. Quality of life beyond work.
8. Integrating effectively.
9. Talent reviews:
10.Talent engagement
11.Career moves and succession plans:
1.Recruitment and staffing

Objective of recruitment
To attract people with multi dimensional skills and experiences that suit the present
and future organizational strategies .

Process of selection
1. Job descriptions with jobs bands.
2. Competency maps
3-Technical and aptitude tests (where applicable)
4- Group discussions (where applicable)
5-Structured interviews
6-Psychometric tests
7-Values assessment tests.
1. nuturing talent
The company has a talent identification and talent development strategy for all
three levels of management i.e. senior, middle and junior management enabling
planned succession and career development of employees who have talent and are
of higher worth. This is facilitated through development assessment centers which
have been have been designed to support managers in assessing and developing
their capabilities. Over 1,200 managers across all management levels have
participated in the DACs since 2003. Post-DAC, the developmental goal for an
individual, in terms of priorities for learning and development experiences to move
to the next career stage, is captured through the individual development plan (IDP).
These are monitored on a real time basis for tracking implementation.

2. performance management

Its objective is to evaluate employees performance with respect to companys objective.

It provides them with structured and in-depth analysis of strengths and areas of
improvement. It helps organization to identify, recruit, motivate and retain key

employees. Aditya birla group introduced 3 main types of performance management

systems which was done on online basis:
1. Annual goal setting-in the month of april/may, after the annual planning and
budgeting rounds teams are required to set goals for the forthcoming year which
is then evaluated and approved by managers further communicated to the
employees.
2. Mid-year review- it is review of goals set at the beginning of financial year held
on the months of October/November of every year. It helps to update the goals
and take corrective actions if required.
3. Annual performance review manger discusses the performance with the
employees personally and gives feedbacks and necessary suggestions for
improvement.
4. 360 degree feedback- program was introduced in 1999 that permitted manager to
raise questions over leadership styles, managerial ability and also personal traits.
After the feedback, each senior manager had to submit a six page letter
mentioning the areas of improvement and their expectations.
3. opportunities for learning

The Group provides its people with multiple opportunities to hone existing skills and develop
new ones, with a focus on constantly encouraging people to learn on the job, in classrooms, and
beyond.
Enablers

Gyanodaya - The Aditya Birla Institute of Management Learning

Individual Learning Plans

Professional certifications for specialist Leadership Development Programs

Functional Training Programs

Continuing Education

E-Learning

Robust Training Processes at local levels

1. Group Internship Program (GIP) -Opportunities to understand the Group's
global operations, gain experience in the chosen domain, and get exposure
to the Group's cultural diversity.

2. Leadership Program for the Experienced (LEAD) -Opportunities to work

across the Group's diverse businesses and meet and engage with the
Group's eminent business leaders.
3. Finance Leadership Program (FLP) -Opportunities to experience first-hand
the challenges that businesses face in the constantly changing and evolving
global economy.

5. Rewards and recognition.

Reward strategy for Performance appraisal , Efforts taken , Skills, Job difficulty , Target
achievement , seniority etc. There is strong emphasis on competitive compensation, performance
incentives, international assignments, Group-wide recognition and more.
Enablers

Attractive Compensation Programs

Variable Pay and Long Term Benefit Programs

PRIDE/Performance Awards

Aditya Birla Awards for Outstanding Achievement

Stretch Assignments and Task Forces

Unit Level/Business Level Recognition Programs

6. Group-wide people process.

Having an aggressive growth plan with structured people

processes that provide flexibility for individual creativity
has worked well for the Group. The organisation's
strength has been its high quality talent and strong
financials, which help to further build on their leadership
positions; and the freedom for employees to charter their
career path of choice across businesses spread across 20
countries in six continents where Aditya Birla Group has a
presence.

7.Quality of life beyond work.

The Group enables its people to fulfill personal and social needs, besides professional
development. There is a range of benefits offered at the Aditya Birla Group- from individual and
family benefits, to a supportive work environment, to corporate social responsibility platforms
and more.
Enablers

Quality of Life- Improved facilities at Units, hospitals, telemedicine, etc.

Benefits - Medical Insurance, Nischint - benefit plan in case of death in service, etc.

Education for Children and Scholarships

Wellness initiatives

Sabbaticals

ABG Emergency Helpline

8. Integrating effectively.
1. Conceptualize and design Organisation Effectiveness(OE)interventions to
support delivery of Business strategy
2. Develop unique OE interventions that drive Change Management,
Collaboration, etc. that support and enhance the climate and culture in the
Business to be an employer of choice in the sector/ region/country
3. Conduct diagnosis, identify and implement employee engagement initiatives
and action research programs within the Business for team and
organizational improvement
4. Lead/support projects that are undertaken to strengthen employer brand in
the Sector/Country/Region (eg. participate in Best Employer study, best
practice study etc.)
5. Actively involve all stakeholders in seeking inputs for employee
engagement programs, providing feedback on program performance and
initiatives, share trends, benchmarks and insights from appropriate best
practices for use of Business.

9.Talent reviews:
A three-tier annual talent review process, held at the unit level, business level
and Group level, ensures a focused approach to the implementation of lDPs.

The review discussions provide meaningful input into the career and
succession planning process.

10. Talent engagement:

Business heads anchor programmes aimed at developing leadership potential
and are personally involved in the design of specific courses. Other initiatives,
such as the Chairman's Challenge and Ideas Unlimited, provide in depth
engagement opportunities with hi-potentials.

11.Career moves and succession plans:

Three-tier succession planning ensures that there is adequate leadership
bench strength for all critical positions. Over 300 managers have moved into
identified business critical roles at the senior and middle management levels
as a consequence of their individual development plans. Most business
critical positions have identified succession plans.
12.Training and development

To ensure that the organizations manpower needs are

met by timely recruitment and focussed training so as to
ensure a competent and skilled workforce.
SWOT Analysis
Strengths:

1. Strong brand recognition

2. Internet sales
3. Growing international presence
4. Superior research and development department
5. Strong financial returns
6. Strong sense of working culture
7. Effective leadership
8. Cost leadership
9. Prestigious client base
10.Customer loyalty
11.Diversified business
12.Product innovation capabilities
13.Technological excellence
14.Good corporate image
Weakness:

1. Complexity of operation

2. Lengthy processing chain

3. Huge business line

Opportunities:

1. Growth of core sector industries

2. Rapid integration with global economy
3. Booming construction business in asia
4. Growing e-commerce business
5. Increasing urbanization
6. Rural up gradation
Threats:

1. Entry of global players

2. Take over possibilities
3. Political threats
4. Impact of foreign exchange fluctuations
5. Loss of sales to substitutes
6. Growing competition

Business stratergies used by Aditya Birla group :

Corporate Strategy and Business Development

Corporate Strategy and Business Development continuously tracks the business

environment for the Aditya Birla Group's existing businesses. It recommends new
directions through evaluation of deal creation opportunities, analysis of project

proposals, etc. The function also plans and develops strategic initiatives for the
Group and facilitates its execution.
Additionally, it assists businesses in crafting their strategic direction and evaluates
options for long-term growth, both organic and inorganic. It works towards
identifying sources of competitive advantage for the businesses, viz., exploration
of new markets and geographies, analysis of integration across the industry's value
chain, etc.
Diversification strategy

Birla group made the right move of applying diversification

strategy of growth. To continue diversifying into other emerging
markets, in 1999, Birla group formed joint venture with Sun Life
Financial Inc., one of the leading international financial services
organizations from Canada, and formed Birla Sun Life Insurance
Company Limited (BSLI). As insurance market in Indian had low
entry barriers, the cost of entry was less and hence BSLI did not
erode the bottom life of Birla group. Birlas diversification
strategies include Operational relatedness when they formed
Grasim industry. Birla textile & Grasim could share resources like plant, R&D facilities ,distribution centers, etc. thereby saved cost.
Diversification into metal business and formation of Hindalco was
a good example of growth motive and risk spreading across
businesses. Hindalcos diversification in the upstream and
downstream was to have synergies due to operational
relatedness. Diversification into cellular & insurance business
gave Birla group entry into markets which were attractive and had
low cost of entry. Thus, we can see strategic relatedness in all the
Birla groups business which has made a US $35 billion corporation
and in the league of Fortune 500.
3.Corporate Communications Strategy
Corporate Communications is a service-oriented support function. Its main
business is to enhance the Aditya Birla brand credibly. The function works to
strengthen the Group's competitive advantage through proactive, two-way

communication among its multiple internal and external stakeholders. In doing so,
it strives to raise the Group's profile and enhance its image. Corporate
Communications is the pivot, which imparts the Group identity to the Group
companies and businesses through multiple communication strategies, leveraging
the Aditya Birla brand equity. The function is responsible for media relations
across the entire Group. It assists the top management's interface with the outside
public, comprising besides media, professional bodies and institutions who have
the potential to impact the Group's image.
Corporate Communications provides Group companies and corporate functions
with strategic advice and professional inputs in their communication processes.
Alongside, its portfolio of services includes internal communications, corporate
intranet, corporate branding, image measurement, publications, websites, creative
arts, supporting Investor Relations and building up the Group's archives.

Management functions of Aditya birla group

PLANNING

Planning is the function of management that involves setting objectives and

determining a course of action for achieving these objectives. Planning requires
that managers be aware of environmental conditions facing their organization and
forecast future conditions.There are many different types planning undertaken by
Aditya Birla group
a) STRATEGIC PLANNING.

Strategic planning involves analyzing competitive opportunities and threats, as

well as the strengths and weaknesses of the organization, and then determining
how to position the organization to compete effectively in their environment.
Strategic planning is often based on the organization's mission, which is its
fundamental reason for existence. An organization's top management most often
conducts strategic planning.
b) TACTICAL PLANNING.

Tactical planning is intermediate-range planning that is designed to develop

relatively concrete and specific means to implement the strategic plan to be more

competitive. Middle-level managers often engage in tactical planning. Tactical

planning often has a one- to three-year time horizon.
c) OPERATIONAL PLANNING.

Operational planning generally assumes the existence of objectives and specifies

ways to achieve them. Operational planning is short-range planning that is
designed to develop specific action steps that support the strategic and tactical
plans. Operational planning usually has a very short time horizon, from one week
to one year.

ORGANIZING

Organizing is the function of management that involves developing an

organizational structure and allocating human resources to ensure the
accomplishment of objectives. Organizing at the level of this organization involves
deciding how best to departmentalize, or cluster jobs into departments to
effectively coordinate effort. There are many different ways to departmentalize in
this organization, including organizing by function, product, geography, or
customer. Organizing at the level of job involves how best to design individual jobs
to most effectively use human resources.
LEADING

Leading involves influencing others toward the attainment of organizational

objectives. To become effective at leading, managers of this organisation
understand their subordinates' personalities, values, attitudes, and emotions.
Personality research and studies of job attitudes provide important information as
to how managers can most effectively lead subordinates. Communication provide
direction as to how managers can effectively and persuasively communicate.
CONTROLLING

Controlling involves ensuring that performance does not deviate from standards.
Controlling consists of three steps, which include establishing performance

standards, comparing actual performance against standards, and taking corrective

action when necessary.The measurement of performance is done, depending on the
performance standards, including financial statements, sales reports, production
results, customer satisfaction, and formal performance appraisals. It requires a
clear understanding of where responsibility for deviations from standards lies.
managers also control production/operations processes, procedures for delivery of
services, compliance with company policies, and many other activities within the
organization.

PESTEL Analysis of Aditya Birla group

Global environment:

Indian industry has a key role to play in the prosperity of our country. Its full
potential needs to be unleashed, if the business of India is to be in
business.Globalisation and size are almost inextricably linked.. Due to
globalization and liberalization the company have reached a position where it can
take pride in having world-scale plants in several industries. From fragmented and
small plants, today, the Group is the world's largest producer of viscose staple
fibre. It operates, the world's largest palm oil refinery, of a staggering 3500 tonnes
per day capacity. The Group is the world's third largest producer of insulators and
the sixth largest producer of carbon black.
Socio-cultural environment:

As India is becoming a country of development , more percentage of population

are educated so the expectation from the company is high. Their main concern is to
serve the country and the people. The company, therefore, is becoming more
competitive in Indian context as well as globally. For further globalization of

industry, it is necessary to have open borders and much freer access to the
developed markets.
Technological environment:

Assimilating the latest technology. will ensure, that Indian companies can remain
cost and quality competitive, survive and come out ahead, in the chilly and ruthless
winds of globalization. The company get the best technology that is available
worldwide. Do not compromise by getting the second best. They choose the most
effective technology, which ensures, the best product quality and ensures cost
effectiveness, to withstand, severe international competition. Institutionalize R&D
and spend fruitfully on it.
Economic environment:

India is emerging as one of the great economic success stories. Globalisation has
led to profound emphasis on stepping up FII and FDI flows,. Demolition of tariff
barriers has led to greater access to indian as well as international markets. Stable
foreign exchange regimes are adding up to the profitability of the company.
Political environment:

The organization takes pride in being successful and standing in its own feet in
terms of trade and exports without any government subsidies, it is evident from
their various international collaborations and the revenue generated out of it. The
organization is overriding narrow and misguided political considerations. Group,
has more than 20 highly successful ventures outside India, with a combined
turnover exceeding Rs. 3,500 crores.

Legal environment:

The Corporate Legal function of the Group works in close coordination with other
corporate functions to provide integrated business solutions, keeping in view the
applicable legal environment. It has acquired the competence to provide legal
assistance and advice in different jurisdictions. It plays a significant role in the
areas of mergers and acquisitions, joint ventures (both domestic and cross border),
and corporate re-structuring.