Background And Nature Of The Company Business Essay

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Surya Nepal Private Limited (SNPL) is an Indo-Nepal-UK joint venture based in Nepal. It came in existence in 1986 and since then it has never looked back. Now Surya Nepal is the largest private sector enterprise in Nepal with its turnover of more than US $100million. This company is also a subsidiary of ITC Limited, India, the balance shares are held by 20 Nepalese individual & corporate shareholders and British American Tobacco (Investment) Limited, UK.
Surya Nepal basically concentrates on manufacturing and marketing of cigarettes and readymade garments. The company was awarded the prestigious FNCCI National Excellence Award during 2007 for being the best-managed corporation in Nepal. The company is also the recipient of various national safety and environmental awards and with constant focus on systemic work processes, both its cigarette and garment factories are ISO-9001: 2000 certified.

POSITION FOR THE SPNL IN CURRENT ECONOMICAL CLIMATE

SPNL is a leader of the pack as far as private companies in Nepal are concerned. SPNL enjoys monopoly over the tobacco market in Nepal due its variety of products satisfying needs at all income levels. In records SPNL's share out of the total 0.7 million kgs of tobacco produced in Nepal annually is an extra-ordinary 0.6 million kgs. Due to which it is easily the highest employment providing company in this line of business.

SPNL expanded its line of business to garment production with leased capabilities from ITC limited, India. It has two major brands now which are John Players and Springwood. The popularity especially of John Players has been skyrocketed due to its superior quality and also due to the use of Indian movie star “Hritik Roshan”.

RECENT CHANGES THAT TOOK PLACE IN THE COMPANY IN THE PAST FIVE YEARS

I have basically categorised the major changes that took place in SPNL into three categories:

Venture into Garment manufacturing (John Players, Spring Wood): After establishing its monopoly in tobacco industry, SPNL recently diversified its products by manufacturing garments.

Shikar Beats(Competition of musical bands in Nepal): SPNL also tried to increase its popularity by holding a competition of musical bands in Nepal every year. This is an event which every music lover in Nepal looks out for every year (Like the X-factor in UK).

p>Surya Golf Competition(Prestigious golf competition in Nepal): SPNL also holds Nepal's most famous golf competition which is very famous among the upper class people in Nepal.

OUTCOME OF THE CHANGES

Garments: It has been a very successful venture for SPNL and both the brands have been slowly but steadily building its reputation in Nepalese market. Especially John Players is really meeting the expectations of young and modern Nepalese people.

Shikar Beats: Sinceits initiation, this programme of SPNL has captured the need of young musicians and bands gaining huge popularity throughout Nepal. It has created a platform for many new artists to launch their careers and these good deeds have resulted in SPNL gaining more goodwill.

Surya Golf Competition:There are plenty of upper class people in Nepal who have genuine interest in golf. This idea was used SPNL by introducing a golf competition which was the first in Nepal. This move also turned out to be a master-stroke with Nepalese people becoming more aware about the sport and more revenue flowed in SPNL's direction.

2. CHAUDHARY GROUP (CG)

BACKGROUND AND NATURE

This company is the first conglomerate company in Nepal which initially specialised in fabrics and clothing. It all started when the founder of this business Mr Bhuramull Chaudhary (originally from India) started importing fabrics from India and selling it to the Royals inside the Palace at around 1935. It slowly gained its momentum and has never looked back since with its products and services ranging from Food & Beverages, Automobiles, Construction, Finance Company, Tobacco, Steels and many other smaller ventures. It has a very broad vision of establishing itself as a corporate conglomerate with specialisation in foods and beverages, financial services, real estate and hospitality and strives towards becoming a front-running company in South East Asia. Now it has over 40 companies under it and its investment outlay is more than US $250 millions.

POSITION OF THE CGIN CURRENT ECONOMICAL CLIMATE

FUDCO the quality food production unit of CG is the leader of the pack in terms of production of noodles, snacks, crackers and fruit juices in Nepal FUDCO basically has three units which are Nepal Thai Foods (NTF), Gold Beverages Nepal (GBN) and Kwik Foods (KF). NTF produces mostly noodles and its most famous product is called a “WAI WAI” noodle which is like a national snack in Nepal. There has been a lot of competition in this area of market with other noodle companies like Gandaki Noodle (PVT) Ltd., Himalayan Snax and Noodles Ltd etc. However the brand of “WAI WAI” has stood the test of time and is still the most popular noodle/snack in Nepal due to its originality of taste, quality and public confidence. GBN manufactures fruit, fruit and milk and soft drinks in Nepal. It also faces tough competition from other international juice and soft drinks company. KF produces other fringe snacks under FUDCO and it has also slowly but steadily been able to grasp its limited market in Nepal.

There were major insurgency activities in Nepal for more than a decade and the economy was pretty much static. Nepal like any other country has been facing economic downturn as well but the products of CG are still very much in demand. The main reasons I believe are its quality, affordable pricing and a well established brand name. All its other products and units have also been equally successful. With more than 4000 employees within Nepal which is a landlocked country I must say this company has been able to create a so called ‘niche' in Nepalese market.

RECENT CHANGES THAT TOOK PLACE IN THE COMPANY IN THE PAST FIVE YEARS AND ITS OUTCOMES:

Various promotional scheme and flavours for “WAI WAI”

Due to steep competition posed by various other competitors, CG introduced many schemes to enhance sales. Most noticeably cash prize of Nepalese Rs 100,000 in lucky coupons. It also appointed famous comedian Gopal Nepal as its brand ambassador. It also launched several other flavoured noodles like vegetarian, Mexican etc.

Pre-paid Visa Debit Card

CG also has a finance company called CGFINCO which launched a pre-paid visa debit card called “E-pay” in association with a high-street bank in Nepal. It was the first non-financial institution card with branches more than 1000 in India and Nepal.

Introduction of lager beer “Nepal Ice”

Local beer industry in Nepal still is an under developed market. Foreign beers are mostly in consumption even with people having to pay more for it. Hence CG launched its own lager beer “Nepal Ice” during 2006 and has been growing in popularity. It is now-a-days exported in countries like Japan, Hong Kong and UK.

Orange-boom blast

CG even produced a “music album” by the above mentioned named which included 10 remix songs of the original scores of some of the legendary singers in Nepal. The project was a massive success and was well appreciated within the music industry.

Overseas-export division

In order to expand its market horizon CG started an Overseas-export division not so long ago. It was a huge step for a pre-dominantly Nepalese company to achieve this objective as Nepal has never been known much as an exporting nation. The outcome was bound to be fruitful due to its good quality products. It has now built up steady success in increasing its sales of its noodles, beers, tobaccos etc to Middle-east, Far-east, Europe and North-America.

Rio-punte

Another interesting change in their marketing plan was to introduce “Rio-Punte” meaning Rio-small. By introducing a smaller size Rio, CG captured the needs of young children in Nepal who were finding it hard to convince to their parents more 10NRS extra for their lunch.

3. SANTANDER

BACKGROUND AND NATURE

Santander is a retail and commercial bank, which originated from Spain, where it has its current base as well. It was founded in 1857 and now with its operations in over 40 countries and more than 90 million customers, 13650 branches and 180,000 employees it is one of world's largest financial group. The origin and history of any organisation always defines its values and visions, with several modifications of course. Likewise from the beginning this bank's vision was to be “open to the world”. It has always wanted to be an international force or a group of financial institutions which have strongholds in local markets throughout the world. It strongly believes in the philosophy of providing variety of financial services to all types of people. Santander has classified its operations basically into four main geographical areas which are mainland Europe, UK, United States and Latin America.

POSITION OF THE SANTANDER IN CURRENT ECONOMICAL CLIMATE

We cannot say that Santander have not been hit hard by the credit crunch. However it still has strong competitive position in Spain across all business segments in credit ratings. It has leading franchises in Latin America. Its priority is retail banking hence it has a steady revenue streams. It has been performing well in most of its areas. It still has a huge potential for growth from international operations. In 2008, Santander became the third largest bank in the world in terms of profits, and the seventh in stock market capitalisation. As per the records, in 2008 alone, the Group earned ordinary attributable profit of more than £ 6,000 billion. It has been doing well in all of its business lines as well. It has been constantly growing in size and power within the banking industry and due to which its credit ratings are also rising up. Efficiency in terms of cost and revenue of its business operations has been improving of Santander. Hence overall we can say that Santander is well placed in this current economical climate.

RECENT CHANGES THAT TOOK PLACE IN THE COMPANY IN THE PAST FIVE YEARS AND ITS OUTCOMES:

  • Takeover of Abbey bank, UK<'

Abbey bank, UK with its history of more than 150 years was one of the largest bank in the UK. Abbey have always been known for its keen interest in innovation and managing change. Online system for maintaining customers' accounts was initiated by Abbey more than 30 years ago when this system was barely popular.

Santander completed the takeover of Abbey bank, UK during late 2004 after conducting emergency general meeting (EGM) on both the banks.

  • Takeover of Sovereign BanCorp, US
  • Takeover of Bradford and Bingley, UK
  • Takeover of Alliance and Leicester, UK

REFERENCE

http://www.santander.com/csgs/StaticBS?blobcol=urldata&blobheader=application%2Fpdf&blobkey=id&blobtable=MungoBlobs&blobwhere=1224975050343&cachecontrol=immediate&ssbinary=true&maxage=3600

http://en.wikipedia.org/wiki/Abbey_(bank)

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