CALCUTTA BUSINESS SCHOOL

CRITICAL ANALYSIS OF
ORGANIZATION ON

APPLICATION OF CONCEPTS OF
MANAGEMENT

SUBMITTED TO: SUBMITTED BY:

DR.TAMAL DUTTA SAYAN KUNDU

CHOWDHURY
PGDM 2015-17
CALCUTTA BUSINESS
ROLL NO-
SCHOOL
15045

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CONTENTS PAGE NUMBER

ABOUT THE COMPANY 3

MISSION & VISION 4

MAJOR COMPETITORS 5

MARKET SHARE 6-7

OF
MARUTI SUZUKI
PRODUCT 8

PORTER’S 5 FORCES 9-11

MODEL
CORE COMPETENCE 12

BCG MATRIX 13-14

SWOT ANALYSIS 15—16

PROFIT AND LOSS RATIO 17

NET SALES AND PAT 17

BALANCE SHEET 18

IS MARUTI SUZUKI 19
BUILT TO LAST?
CONCLUSION 20

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ABOUT
THE
“Ifyou have travelled in India, taken a route
to anywhere around this great nation,
chances are you’ve driven with us. For over
three decades now, Maruti Suzuki cars have
been going places.
We started out in 1982 in Gurgaon, Haryana. Little did the then quiet suburb
of New Delhi know, that it was going to become the epicenter of the
automobile revolution in India. The year marked the birth of the Maruti
Suzuki factory. India turned out 40,000 cars every year. The new Maruti
Suzuki 800 hit the streets to begin a whole new chapter in the Indian
automobile industry.
We set out with an obsession for customer delight, one that was unheard in
the corridors of automobile manufacturers then. It was about a commitment
to create value through innovation, quality, creativity, partnerships,
openness and learning. It created a road that was going to lead the world in
to a whole new direction, laid out by Maruti Suzuki.
Today, Maruti Suzuki alone makes 1.5 million Maruti Suzuki family cars every
year. That’s one car every 12 seconds. We drove up head and shoulders
above every major global auto company. Yet our story was not just about
making a mark. It was about revolutionary cars that delivered great
performance, efficiency and environment friendliness with low cost of
ownership. That’s what we call true value. We built our story with a belief in
small cars for a big future. Our story encouraged millions of Indians to make
driving a way of life. India stepped up with our vision to take on the fast lane.
A comradeship had begun. Something incredible had begun.
So, what drives us? Millions of Indians who’ve put their faith in us. A team of
over 12500 dedicated and passionate professionals that turned out 14 cars
with over 150 variants. The drive is backed up by a nationwide service
network spanning over 1454 cities and towns and a sales network that
spreads across 1097 cities, 2 state of the art factories. A diesel engine plant
with a capacity upped to turn out 7 lakh diesel cars a year. And a
commitment to road safety to make Indian roads safer.

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Finally, our inspiration comes from one place – India’s hopes, dreams and
aspirations. The Maruti Suzuki journey has been nothing less than
spectacular. But to be honest, we’ve only just begun.”

MISSION STATEMENT

“We have chosen a road and that drives us extra miles to

achieve every endeavour. Here is what we at Maruti
Suzuki believe in:
Customer Obsession
Fast, Flexible & First Mover
Innovation & Creativity
Networking & Partnership
Openness & Learning”

VISION STATEMENT

“The Leader in automobile industry creating customer

delight and shareholder’s wealth; A pride of India”

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MAJOR COMPETITORS:
 Honda
 Hyundai
 Tata Motors
 Mahindra
 Ford
 Chrevolet

MARKET SHARE OF MARUTI

SUZUKI

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Products:

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PORTER’S FIVE FORCES MODEL:

Supplier Power: LOW

• The Supplier market for Maruti is highly fragmented.
• The possibility for backward integration is also high
which has restrained the power of the suppliers

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• Maruti engages with several local suppliers for their

spares and parts for their automobiles
manufacturing.
• The entry of many new small scale manufacturers
has also contributed to the benefit of large
automobile manufacturers like Maruti to source their
Spares and parts at a very optimal price.
• This clearly indicates the low supplier power.

Buyer Power: HIGH

• Buyers’ power in four wheelers industry is more as
the product diversity and brands available in the
market are exceptionally high.
• Buyers today are demanding and specific on their
needs for the money they pay.
• They are looking for the brand that offers better
pricing and technology which has shadowed the
customer loyalty for any brand today which is the
most faced threat by Maruti Suzuki.

Threat of Substitutes: HIGH, And increasing

• Threat from substitutes is quite high.
• When looked down the line we could anticipate a
threat from the dramatically escalating fuel cost
which might cause customers to switch to economic
two wheelers.

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• As well growing environmental concerns has also

brought in bicycles and battery two wheelers that
might pose a threat in future to Maruti Suzuki.

Intensity of Rivalry: HIGH

• Automobile industry is most known for the
competitive market and rivalry.
• Automobile brands like hundyai, Honda, Tata
Motors, and Mahindra have come up with various
product line and technology targeting the customer
segment of age group 20 to 30 years who are more
fascinated to fascinating four wheelers.

Threats of New Entrants: LOW

• New entrants face a moderate barrier in penetrating
the market since it is consolidated by few and strong
suppliers.
• As the market size of the four wheelers industry is
big and requires a strong footprint with high capital
investment, new entrants find it difficult to fit
themselves among the market frontrunners.
• Thus Maruti Suzuki is not susceptible to threats from
the new entrants to the industry.

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CORE COMPETENCE
1.The core competence of Maruti Suzuki lies in
manufacturing small cars.
2. Another competence is their fuel efficiency factor that
their car provides

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BCG MATRIX:

Sx4,eeco
Swift,swift dzire

Alto,Waganor Maruti
Omni,Maruti 800

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Star:
Star denotes high market growth and high market share in the industry. This
position defends when the organization invest large amount in this segment. There
is high growth when compared to last year, so this is the reason SWIFT and SWIFT
DZIRE comes under star category. It will turn into cash cow when there is gradual
decrease in market growth in coming years.

Cash cow:

Cash cow denotes low market growth and high market share in the industry. ALTO and
WAGANOR can be treated as cash cows. Handling is very simple and this is more preferred by
small traders. Teenagers are using this vehicle as an entry point for them. This dominates in the
position of cash cow because increase in the share of sales in every year.

Question mark:

Question mark denotes high market growth and low market share. In this category, there are two
things to be considered as invest greatly in the products or to clear up this products. The
company launches new EECO which gets more drawbacks in the market and the company
planned to launch the product with redesign But the product is failed due to some engine
problems. So company need to invest in them(EECO AND SX4) for increase in market growth,
this is the reason that these products comes under the question mark.

Dog:

Dog denotes low market growth as well as low market share in the industry. In this segment we
have considered MARUTI SUZUKI 800 and OMNI because there is negligible market share of
the cars,the growth of the two cars is also negligible.

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SWOT ANALYSIS
STRENGTHS:

 Maruti Udyog limited (MUL) is in a leadership position

in the market with a market share of 47.68%
 Major strength of MUL is having largest network of
dealers and after sales service centers in the country.
 Good promotional strategy is adopted by MUL to
transfer its thoughts to the people about its products.
 Maruti Suzuki recorded highest number of domestic
sales with 9,66,447 units from 7,65,533 units in the
previous fiscal. It recently attained the 10million domestic
sales mark.
 Strong Brand Value and Loyal Customer Base are big
strengths for MUL
 There are around 15 vehicles in Maruti Product
portfolio. Has good product lines with good fuel efficiency
like Maruti Swift, Diesel, Alto etc
 Alto still beats the small car segment with highest
number of sales
 MUL is the first automobile company to start second
hand vehicle sales through its True-value entity.
 MUL has good market share and hence it’s after sales
service is a major revenue contributor.
WEAKNESSES:

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 Low interior quality inside the cars when compared to

quality players like Hyundai and other new foreign
players like Volkswagen,Nissan etc.
 Government intervention due to having share in MUL.
 Younger generations started getting a great affinity
towards new foreign brands
 The management and the company’s labor unions
are not in good terms. The recent strikes of the
employees have slowed down production and in turn
affecting sales.
 Maruti hasn’t proved itself in SUV segment like other
players.

OPPORTUNITIES:

 MUL has launched its LPG version of Wagon R and it

was a good move simultaneously
 MUL can start R&D on electric cars for a much
better substitute of the fuel.
 Maruti’s cervo 600 has a huge potential in tapping
the middle class segment and act as a strong threat to
Nano
 New DZire from Maruti will capture the market share
and expected to create the same magic as Maruti
Esteem(currently not available)
 Export capacity of the company is giving new hopes
in American and UK markets
 Economic growth of the country is constantly
increasing and the government is working hard to
increase the gdp to double digit
THREATS:

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Heavy competition from other competitors and from other

international brand i.e. importing of cheap motorcycle
from china.

Gradual increase in fuel price, Decrease in car prices,

policies and increase in taxes will affect margin for dealer
as well as customer.

Improving public transport will have an effect on the

automobile sales.

Spare parts are expensive which increases the

maintenance cost.

PROFIT AND LOSS RATIO

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NET SALES AND PAT

BALANCE SHEET as on 31 st March

2014

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As at
31.03.2014
As at
31.03.2013

IS MARUTI SUZUKI BUILT TO LAST?

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• Yes It is built to last as it follows the 7 timeless principles of

Great companies

• Best of the Best- Maruti Suzuki is premier institution in

their industries, widely admired by their peers and having a
long track record of making a significant impact on the world
around them.

• Be Clock Builders, Not Time-Tellers- Maruti Udyog

Limited in the early years were mot pioneer in automobile
industry.They merged with Suzuki and built their goodwill
slowly.

• More than Profits- Maruti Suzuki preserved its core

ideology while allowing room for the manifestations of the
core ideologies to change. This means product lines, profit
strategies, cultural tactics, and organization structure
changed – but the core ideology did not.

• Preserve the Core/Stimulate Progress- Maruti Suzuki

does business by being able to adapt and change over time
in response to market conditions. Over time, competencies,
strategies, and goals change but the core ideology remained
intact.

• Big Hairy Audacious Goals- Maruti Suzuki is committed to

being a highly profitable, socially responsible, and leading
manufacturer of high value for money, environmentally
friendly, lifetime personal transportation products under the
Maruti Suzuki brand, for customers predominantly in Asian
markets and to provide fulfillment and prosperity for
employees, dealers and suppliers.

• Cult-like Cultures- Maruti Suzuki employs around 40,000

skilled employees who believe strongly in the company
ideology.

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• Try a Lot of Stuff and Keep What Works-Maruti Suzuki

is constantly working on research and innovation and
modifying the products and upgrading the technology.

• Maruti Suzuki also believes that BEING A GREAT

COMPANY IS A NEVER ENDING PROCESS and has a
great VISION (stated earlier).

CONCLUSION:
In this study I came to know that there are more than five
different automobile companies manufacturing different types of
consumer utility vehicles. As the time is changing, the demands
and preferences are also changing very rapidly, so if the
companies wants to survive in this competitive market , they
have to produce the goods and services as per the needs of
customers to delight them.The Maruti Suzuki is currently the No.3
four-wheeler company in India which produces wide variety of
products with different models, aesthetics etc, by which it has
captured a large market share in four-wheeler market. Although
the sale of Maruti Suzuki fell during the year 2011-2014,but due
to its excellent strategy and built to last techniques it bounced
back during the financial year 2014-15. Now there are other
companies like Hyundai, Ford etc, which are giving keen
competition to Maruti Suzuki, continuous innovation and research
is required to survive the competition.

THANK YOU

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