How External Environments Deal With Organisations

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Mainly Mahindra& Mahindra was established after the completion of the world war- ii, because Indian roads in the rural areas are very ugly. In this roads travelling is more problem, that's they started the business. Mahindra brothers and Gulam Mohammad started the business Mahindra& Mohammad, after independence it's renamed as Mahindra& Mahindra.

Mahindra and Mahindra was established on 1945, October 2 . It was converted into a public limited company on June 15, 1955,up to that time it is a private limited company .Mahindra & Mahindra is one of the largest private sector company in India. Today Mahindra group of company deals with 14 players and 4 of them are Multinational Companies.

PESTEL analysis:

There are many external factors that will affect the any organization. Some of them are political factors, economical factors, social factors, technological factors, ecological factors and legal factors.

Political factors:

Now a day's all companies are doing friendship with all political parties and leaders.

Mahindra was started because of the welfare of rural areas and agricultural purposes.

In military Mahindra vehicles are used.

Government gives subsidy for agriculture.

Change in taxation policy

100% Foreign direct investment policy

Regaining " Agricultural dynamism", a key goal of eleventh Five year plan.

Economical Factors:

Credits can be occurred mainly on the sales. 95% o the sales occurred through banks most o them are offering loans.

When compared to other products Mahindra are cheaper .Mahindra products are mainly exported because of low cost.

For agriculture purpose banks are offering low interest rates.

Inflation may provoke higher wage demands from employees and raise costs.

When the GDP of india increases the automatically the firm value also increases.

Social factors:

There is an increase in awareness among the people for the need of mechanization and are keen to acquire automobiles with the help of credit facilities from financial institutions.

Now a day's automobiles are required for mainly reducing the man power, because of shortage of laborers.

Indian cultivation is developed in 4.7%

When the technology increases, then they also changes the new technology.

When the society changes the firm can also compulsory want to change.

Technological factors:

Now a days all the customers required new technologies.

Continuous technological innovation

Renewable energy development. Ex, coal gas renewable.

When the customer dissatisfy the technology ,they invented the new technology.

Ecological factors:

When there is no monsoons it will effect on the tractors.

When there is no political stability there is no stability for the business.

Strong monsoons, increase lending by nationalized banks which leads to farming of commodity prices money availability catapulted tractor demand.

Global warming.

When there is no recession, information technology is more beneficial, all the buyers buy products what they need and want .

Legal factors:

Collaboration with government which shapes policy issues.

Agricultural policy.

When the sat yam is victim, its takeover and follow the legal factors.

Drivers of change: From the PESTEL analysis we can know the drivers of change


Drivers of change




Marketers attractive

Extension of rural credits



rural economy

Bank clamped down on credit.

Demand increases.

Credit Economy

Global economy

100% FDI policy




Land fragmentation

Moderate effect

Animal for agriculture


More farmers opting multiple cropping

Per capita consumption is low in India


High technological innovation

High quality product

Import of technology

Coal and Gas renewable




Cropping cycle

Global warming




Moderate effect


Rivalry: in this group they are maintaining the competition

Entry of foreign players

Continuous technological innovation

Opening of world market

SWOT Analysis:


In world Mahindra is the one and only Indian tractors brand

Mahindra leads the market. The share of the market is high. This is the biggest strength.

They are more innovation and launching new products, because of survival of long run.

Mahindra had a brand name, that's why they started the new business and survived them.

Effective and large distribution channel.

Enough and Sufficient financial resources.

The products manufactured Mahindra are not harmful to anyone and not harmful to society.


The company is highly dependent on the rural sector

Less technological ability as compared to Foreign players

Low labor productivity


When the government of India encouraged the agricultural sector in the 11th Five year plan.

In the information technology merged satyam they formed a Multinational Company.


When the monsoon increases the tractor business also increases.

Global warming.

Hacking of the websites from the hackers.

Organization analysis:


Goals and Objectives

Strategy followed

Vision: Indians are second to none in the world. The founders of our nation and of our company passionately believed this. We will prove them right by believing in ourselves and by making M&M Ltd. known worldwide for the quality of its product and services.

To provide highly technological innovative product

E-business Initiatives and by out sourcing of technology

Products that redefined the market

By 2015 it wants to enter almost all continents of world

Joint ventures, acquisition and merger with different players in other countries

Foreign competition.

Plan to open 30 outlet pan in India by next 4 year

Restructuring of the company.

Network of dealers, sales offices, service stations etc.

Mission: We don't have a group-wide mission statement. Our core purpose is what makes all of us want to get up and come to work in the morning"

to make the production system even more efficient

proactively following world-class methodologies like QC story and QC tools, Six Sigma, DOE ( Design of Experiments) and TPM ( Total Productive Maintenance)

To usher prosperity; for its customers, dealers, employees, society and all other stakeholders.

By developing good citizenship behavior.

Keeping good relationship with customers by providing better quality service and providing latest information

To be the market leader in all power segments of tractors.

Strong market base in the urban, semi-urban and rural areas.

USP - ruggedness and performance.

New vision: To be the leader in the automobile industry in the undisputed manner.

New Mission: To provide best value for money to customers through best quality and most cost effective products and services.

Resource analysis-

There are 2 types of resources

1. Stock resources

2. Capabilities resources.

Stock Resources: The resources which are started to any business is called stock Resources. They are Physical, financial and technological resources.

Physical resources:

High inventory capacity

The Mahindra company has its own Infrastructure Company, IT Company and Financial service company.

High quality equipments for production

Many number of own out-lets

Large infrastructure

Financial resources:

Highest market share

Share holders rising the funds.

Human resources:

They are encouraging the young talent.

The training and recruitment campuses are encouraging the young talent.

In the guidance of experienced people they encouraged the younger talent.

Technological resources:


They have more research and development teams.

Since last 60 years Mahindra and Mahindra is the top leading automotive manufacturer in India

Today Mahindra and Mahindra announced a land mark break through Indian fuel technology o unbelievable bio diesel

In the year 2001 Mahindra and Mahindra at the technologies of converting with the help of bio mass in to bio diesel fuels.

Capability resources:

The resources which flow on competition is capability resources. They are innovation, production capability, marketing capability and human resources development.


Web site which provides farmers the latest information relating to crops, weather conditions, loans, insurance schemes, commodity prices, Government schemes, news and events.

Developing the new technologies.

They are mainly developing bio diesel motors for innovation.

The first Indian tractor with turbo technology the 'Mahindra Serpent 595 Di Super Turbo'.

Production capability:

Efficient and competent employees

Process control in production

Highest production capabilities( 1,50,000 tractors per year)

Larger rural initiative Mahindra Samriddhi, which aims to increase agricultural productivity through creative farming techniques.

Marketing capability:

Huge distribution channel in rural, urban and semi urban area

Established brand name

Highly motivated sales people.

Good advertisement strategy

After sale service for longer period

A quick "one-stop-shop" for promotion of company

Human resources development:

Training and development programmed to all level of employees.

Proper succession and career planning.

Thrust on building the brand name.

They are guidance and review of every two or three months.

Social Responsibilities:

Mahindra and Mahindra discover the employee's talent in the social responsibility activities to delegate the 1% PAT.

Mahindra and Mahindra announcing its bio diesel fuel technology break through Indian alternative fuel technology by creating its own land mark in this alternative fuel technology.

Mahindra and Mahindra was influenced by its past, tempered by its present and will shape its future.

In Mahindra group social responsibility is not just a duty, it's a way of life

In Mahindra Group Environment protection is a part of everyday life.

Mahindra mainly responsibilities in hospitality, education and pollution.

Good Corporate Citizenship:

In the past we will success the long term, because of mainly satisfying the customer. We will do this without compromising ethical business standards.


In the professionalism hiring the best people or the job and give them freedom and the opportunity to grow. Provide good training support innovation and well reasoned risk taking, but will demand performance.

Customer First:

In the Mahindra group give respect to the customers. the group will respond to the changing needs and expectations of our customers speedily, courteously and effectively.

Quality Focus:

Mainly the group is not committed on the quality. they are maintaining on the quality.

The company Mahindra and Mahindra gives value of money to its customers and maintaining the product quality and services .M&M will interactions with others with its good quality of products, it will do First time right.

Dignity of the Individual:

In the group everyone has individual identity. And every one has right to express .in this group every employee has truthfulness and transparency

The values of Mahindra and Mahindra like compass it will guide the company's actions of both corporate and personal.

Alternative Thinking has grown from strength to strength in Mahindra and rethinking the regular has become a regular.

Mahindra gives importance to the voice of customer:

Mahindra awarded the coveted Golden Peacock Award for Excellence in Corporate Governance.

Mahindra and Mahindra designed its meeting standards in international with emission and safety, to all its related plants across the country which comply way beyond necessary regulations of environmental standards in conservation of resources Mahindra is the efficient in the most recent green IT with its water management.

Employee social options:

In Mahindra and Mahindra employees

every me gets together and shares their skills to make the society cleaner, greener, and more sustainable with their efforts.

Mahindra Employees speak on their experiences after volunteering in


Esops in Education

Esops in Health

Esops in Environment


In the group they are maintaining the professionalism as one of the Group's core values. In the group they maintain the individual identity. They are giving the best training and maintaining social responsibilities. in the group always explains that customer is more beneficial to the group. The group explains that provide good quality and service.


Any one call fall love in Mahindra products and service.

Internal Development:Develops its own R&D, OEM and Finance company

Joint Development: with the help of servo they developed own engine oil.

Ensuring high distribution margins

Provide tractors on lease through govt. agencies:

Expand geographically.


In the Mahindra group mainly encouraging the employees. And the business skills that maintaining the Mahindra is very highly competitive and innovative. The group mainly focus on the money of the customer and them maintaining the quality and services. Mahindra product is low cost and the quality of the products is high. They are maintaining the social responsibilities. Many excerpts appreciation that Mahindra products are cheap and the product quality and service are more.