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Years .Allied Autos Ltd is in the business of manufacturing auto components and is one of the largest manufacturers of Sheet metal parts, Machined Tabular,Electroplated & painted components ,welding facilities with integrated world Class features in India.
With growing opportunities and enhanced experience base Allied Autos has strengthened horizontally, widening its
Customer base and products by entering into 4 wheeler industry, not only within they have established themselves
In the domestic market but left their mark globally with strong infrastructure base and enlightened human resource
Reached the zenith of success
To attain high level of growth and experience they have gone through continuous and aggressive strategy building
And execution of same. Their strategy is towards
Improvement in customer satisfaction
To optimize cost and move up in value chain
Progress through a strong base laid on in depth research and development
VISION : Highly customer oriented ,humane and system run global organisation with a concern for society.
MISSION : Excellence through latest technology ,people empowerment and brand equity to produce world class
Products by adapting best business practices and ethics.
To achieve its vision and mission the company is working towards major changes
Development of in house research and development department to capture the market through innovation
Improvement in the efficiency of operations , especially focused to meet the planned output
Effective PDI leading to defect free products to customers
Improvement in the Production system
To meet the growing demand of the two wheeler , the company is augmenting capacity in existing lines
as also adding additional equipments
There is an opportunity in the market for exports so the company is planning to go globally
Planning for related diversification and expansion in home market
Greater operational efficiency and managing cost better
As the economy is showing signs of lifting up organisation will prepare itself to reap the benefits of take off keeping investment in place.
organisation is planning to compete in global market , and there is a high level of market competition , in order to gain competitive advantage there was a need to analyse the organisation to know what it is good at , where it is lacking , what opportunities can it grab and what are the likely threats .business environment is changing rapidly and there is a cut throat competition . so there is need to analyse both the business environments to know the current position
Analysis of 2 environments i.e. internal and external environment which reveals internal strengths and weaknesses and external opportunities and threats.
SWOT analysis is a tool that helps generate information and to have a strategic fit between strengths and opportunities ,to downplay weaknesses or improve them after a while and avoid threats or convert them into opportunities with the use of innovation and creativity.
Internal Analysis is basically the analysis of internal environment i.e. analysis of
Strategy, Structure,System,Shared Values
External Analysis is the analysis of external environment i.e. Micro and macro environment
Micro Environment: Analysis of micro environment in which allied auto operates ,which can be analysed with the help of five forces
Barriers of entry or exit- In case of allied auto if barrier of entry is high which means that it is difficult for other competitors to enter in the auto sector is good for the survival.
Availability of substitutes : Since allied auto is a nicher so it has hardly any substitutes available but in near future as auto industry is growing there are chances of new entrants which means that substitutes can become available.
Bargaining power of suppliers : At allied auto the prices of raw material went up ,which is not a good indication as it indicates that bargaining power of supplier is high , if bargaining power of supplier is high than they will fix the prices.
Bargaining power of customers-for the products produced by us we fix the prices as there are no close substitutes ,bargaining power of customers is low at our organisation .
Competitiveness of industry-auto industry is very competitive as it attracts new entrants which is a threat for us as entry of new competitor will increase the competition so there is a need for allied auto to be more innovative and creative .
Who my competitors are :
How big are they
What advantages they have over me
How much Market share they have
On what basis they are competing ( Unique Selling Preposition) i.e
Quality: Our competitors cannot compete us on quality as our employees are our strength and this is our core competency which cannot be easily replicated
Consistency - whether they have a permanent customer base : it might be quiet possible that they have a permanent customer base which is a threat for us as the customer would not like to shift easily.
Analysis of Stakeholders expectations
Different Stakeholders of Business
Analysis of Macro Environment
Political and Legal
Social and Cultural
Allied auto has two kinds of resources
I. Tangible Resources
Physical Resources : allied auto had an excellent location with less infrastructure cost
Financial Resources : it enjoys Credit worthiness , good records with banks
Return on total assets = net income/Total assets
Human Resources : Skilled manpower , multi skilled ,professional people with good IT background which is astrength for us as this resource of ours is unique and it cannot be easily replicated by competitors
Informational Resources : Informational Resources are ok but they are not unique to the organisation
Intangible Resources: Allied auto enjoys a huge amount of goodwill, brand loyality which helps us in building a customer base and also brings in new customers.
Allied Auto is very strong at its value chain
STRENGTHS : These are internal to organisation , they reveal our ,strategic capabilities
Ability to draw a world on a worldwide pool of talents
Ability to nurture employee a and managing employees relationship
Very good Inbound and Outbound Logistics : good coverage of their territory, timely deliveries, excellent storage space
Multi facilitated Tool Room
No Research and Development department
Purchasing system not effective including quality of inputs
Lack of accountability
More pressure on production
negative effects of the global financial crisis
depreciating value of the Indian rupee and falling income
severe sales contraction related to fall in world wide demand
rising costs of financing stocks and debtors
contraction of the export market
Lack of state support and export credit guarantee schemes
Growing demand for two wheelers
Growth and demand for Home Furnishings
As the market consolidates and the global recovery happens the international players would find a renewed appetite for sourcing from India.
Prioritisation of key project areas by the government which will accelerate the process of national growth and India will emerge as a
Step ahead in word equation
Reduction of excise duty by 4% on all vehicles and
reduced excise duty to 8% from 10% on commercial
vehicles and auto parts.
Reduction in Central Sales Tax from 3% to 2%
Introduction of GST
Setting up of special institutions to promote skill development.
Recommendations -My recommendations as a manager are that there is need for us to change the business strategies as Business strategy can take 3 directions it can be any one of porter,s 3
If we choose Mass Production (Undifferentiated) where we give importance to the quantity than we need to have formalised planning system and according our HR strategy will change.
If we Choose Job and Batch Production (Differentiated) where quality matters than quantity than we can have In formalised planning system and accordingly we have to change HR strategy and Value chain .
If we choose Process Production (Nicher) highly differentiated where creativity and innovation matters than we need to have task culture and accordingly our HR strategy and value chain will be changed.
At allied auto there is no fit between Business strategy and HR strategy ,according to me HR strategy and Business strategy should be aligned because if they are not aligned than the objectives of the organisation and employees clash which is not a good indicator of sustainability and if there is no sustainability than there will be no profitability.
We need to have creative and innovative manpower which possess high skills as the organisation has chosen to emerge as a niche player which is highly differentiated
One of reason for loosing the market share can be that inspite of performing well we are not changing with the dynamic environment ,My recommendation as a manager is that we should change our organisation way of operations , it should not be like that everything should be changed at once but we can bring incremental change that is we can change slowly