Chief executive or the top management is defining the strategy for the business. Top management surveys the market, competitor activity, market trend, countries economic position and then defines strategy. The middle management has to follow the strategy. Each and every department has to do the different tasks. The manager has to give that task with suitable executive to follow them. The final out put receive from bottom level worker. They apply this strategy and give the feedback. If it is not suitable then the top management reviews the strategy. Once again the strategy pass throw the channel and reach at lower level and follow it.
Construct an agreed strategy and include its resource implications.
Mahindra finances and Maruti Udyog limited is tie-up for finance in rural market. This strategy help growing the passenger vehicle market in India. Mahindra finance is the leading rural finance company and also maruti udyog limited is the large car maker and reputed brand name in India. Before the tie-up with maruti udyog limited the company goal is to provide the finance of the tractor's and utility vehicle in rural and semi-urban market. But now they include car segments.
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Mahindra finance strategy is to provide larges range of finance service to customer through its extensive network of branches spread over India.
Mahindra finance has a wide range of branches through India. So it's provide a better services to customer and also recover its money, It's has a number of executive has doing the loan, recovery, all dealer meeting, sub dealer meet and direct customer contact. Company's one of the strategies is that they give loan for flexible loan schedule to the customer.
MMFSL is use the resources is the wide range of the branches in the rural and semi-urban area. Organizations have a wide range of customer database. Company will use this database for its personal loan and the housing loan.
There are five types of strategic management process as are following.
Develop strategic vision and mission.
Craft a strategy to achieve objective.
Implement and executive strategy.
Monitor, evaluate, and take corrective action.
Figure 1 Five task of Strategic Management 
Firstly company had to develop a strategic vision and mission then set objective for the organization. Follow the mission and achieve objective if it's not possible to review the strategy implement the strategy. Then monitor strategy take corrective action to evaluate finally success of strategy improve on timely.
Mahindra finance strategy is to provide finance in rural and semi-urban sector. Mahindra finance provides training its executive for all kind of product like loan business, loan recovery, dealer relation maintain, sub-dealer relation. Mahindra finance provide customer to pay per week installment instead of monthly.
Office and operational resources
Operation management is concern with the better managing of resources whether people, technology or material. The principles of work measurements, method study and many motivational theories are valuable tools that make the best use of expensive human resources. The location and layout of equipment, its maintenance and replacement are key issues in the management of an organization's technology.
1. Sales and marketing resources:
Marketing in encompassing market research sales forecasting and promotions activity represent a vital communication link between the organization whether profit oriented or not and the outside world it does this essentially by considering changes in economic technological social and other environments and bringing such knowledge in to the entity as well as making information about the enterprise available to customers and potential customers.
In analyzing the effectiveness of marketing communication and information attention must be paid to the role of marketing in the organization and the extent to which management adopts a marketing perspective. This would entail careful observation and the collection of information whether it is factual such as sales and profit by product group or more quantities like the length of product life cycle or percentage market shares well as opinions all of which need to be placed in a strategic context. In appraising the marketing function crucial areas for consideration would include:
The use made of market research and the extent to which it influences product development
Always on Time
Marked to Standard
The relative position of each product group in terms of sales and contribution to profits
The market share of each product group and its stage in the product life cycle
The distribution channels used and the extent to which new distribution developments may indicate a need for change.
The relationship if any between sales price and sales volumes the pricing policy pursued by the firm.
Important competitive features which may include quality, price, service and delivery and the extent to which such features are appropriate given the structure of the industry
The extent to which marketing area is aware of competitors moves technological change and environmental aspects relevant to the firm.
This sort of information allows assessment of the area as to its strengths and weaknesses which can then lead to an evaluation of the firm's marketing strategies and whether the propounded strategy is being followed, the controls utilized in the function some of which of course may already have been considered in the analysis of the accounting and finance function and the performance of managers will all have been the subject of scrutiny and judgment which may lead to suggestion concerning the role of marketing in the firm.
2. Research and development:
Research and development is normally relevant in efforts to improve products, introduce and develop new product, or improve or enhance production process. As with the other functions considered earlier the objective of assessing research and development is to determinist effects on the firm strategy. These is dependent upon the past record of research and development in product and process innovation for example and perhaps more importantly upon the future expectation for research and development driven innovation a further aspects relates to how research and development is perceived in the entity's external environment.
Industry expenditure on R&D and the firms commitment to R&D
The nature of the product and whether it calls for continual development or whether the nature of the market or competition requires such developments
The nature of the production process and whether it calls for further enhancement
The return through the firm for a product break through including and evaluation of the risk return trade off
The resources that the firms can devoted to R&D analyzed in between projects and product and whether the spread of efforts is to broad or sufficiently focus
The record of the firms in terms of new or improved products or processes and the present state of likely innovation for future exploitation
R&D is probably the hardest area in which even to attempt an objective appraisal .it is also in many aspects one of the easiest areas to trim or cut in periods when profits are under threats if only because the benefits from the development of new products may takes many years to materialized. However problematic it may be an attempt must be made both to evaluate R&D and on the results of sound analysis to determine it is a strength upon which the firm can build future success or a weakness requiring a strategy designed to focus attention on other stronger parts of the organization.
Outside resources and full time staff.
There are two types of resources,
Internal human resources: The many internal operations also have customers, internal ones. These are customer within the organization for whom each internal operation provides goods and services. Human resources mean who involve in organization like employees. Employees are internal customer of organization. They support the business with their work they support business in process of production
External human resources: customers who are outside the organization who desire the goods and services it produces they are external human resources. Customers are external resources of organization. Because company make a product for customers and what is customer demand and what they want all dependent on customer choice so customer also support the business
Equipment & material: Materials managements the economic purchasing, control and distribution of materials is an important issue for many organization. Equipment and materials is a useful resource to support the business equipment and material is the essential input of the business. Plant, machinery and computers are essential input of the business process.
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Information and time: In today's business environment information of process and process time is very useful to develop a business process
Physically layout resources: building, virtually layout, goodwill and reputation are support a business process.
Finance support from government.
Financial support of the company can also be government or fixed customers who are another form of asserts to the company following are few financial support
Shares: Shares represent an investment in a company in which a shareholder becomes members and part owners. The right of share holders depends on the type of shares they hold.
Debentures: debesntures are secure loans to a company. Debentures are creditors of the company. Both shares and debentures raise finance for a company.
Factory: a method of raising finance whereby a company's book debts, for example the money a company is owed, are bought by a factoring company, which may also take over the credit control function in the business.
Leasing: An arrangement whereby one party obtains on a long term basis the use of a capital asset owned by the other party. Photo- copiers are computer systems are examples of assets often leased rather that purchased.
Capital gearing: A highly geared company is one which has a high proportion of loan capital to share capital.
Prospectus: A document which a company must issue by law when it wishes to raise money by inviting the public to subscribe for its shares and debentures.
Dividend: The distribution of a company's profit to its members based on the par (face) value of its shares.
ESTABLISHING MISSION AND VISION
Suggest criteria for alternative sources:
Alternative sources would be more emphases on the technology emphases should also be on the improvement of the service given to the customer. Research and development team of the company is putting relevant efforts to improve products, introduce and develop new product, or improve or enhance production process
Review additional costs /benefits of these outside sources:
Customer is also the main asset of the company. Specific allotment should be given to the costs /benefits of the outside sources. Periodical review is always maintained on the same.
Consider potential export or internet advantages:
Technology is always been an advantage for the industry. For Finance company internet or the superior technology is always helpful to track tap the customer since the level of completion is very high. companies commitment is most useful for such commitment companies has to work Via faster means of communication moreover the finance business is recently become more advanced coz technology cuts the time for transfer to money from one end to the other
Consider the firm's ethical, cultural, environmental, social and business background.
Mahindra and Mahindra finance select local educated people for job so local employee know the culture, local political environment. MMFSL is the very good standpoints are the 71% market cover in finance sector. In several years there are several changes in the Indian economic. There are the legal environment, globalization of the economic, privatization of the public sector, liberalization in business and resulting of freedom. In the Indian business market the resulted in a dramatic growth and business opportunities increase. In this environment the organization has to set the highest business principles also maintain highest standards. Organization should not concentrate just maximizing the profit and shareholder value but be responsible to each of the stakeholders- employees, partners, society, business associates, financiers and the state.
Mahindra and Mahindra financial services limited practice that,
Reaffirm the fundamentals of the governance.
Focus over core values.
Maintain balance between corporate goal and individual aspiration.
Delivering excellent services whilst and products, at the same time.
MMFSL has also many aspect of corporate governance, each aspect as important as the other. One of them is adequate return to shareholders. Another is business affairs; maintain the trust and confidence of shareholder of corporate governance. It's concerned with empowerment of employees and the values, ethics and morals of company. Developing and identifying employee capability, integrating and opportunity of social responsibility.
MMFSL ethics is to long term success with no compromising on ethical business standard. The highest standard of impartiality, objectivity, integrity and equity will be observed in every activity that encompasses the business, so the reputation the "Mahindra finance" trade name is not affect. Every employee has to follow the exacting standards that are helps to company to achieve the business target. Employees are accepted to take any decision in favoring of company and disclose any interest-academic or business, personal, professional. Company's any employee is not take any kind of gifts, any payment or bribes for finance of business gain. Employee will fully take a decision for the business and compare with the competitor activity.
Company believes in equal employee opportunities. Company is selecting the employee without reference, religion, sex and cast. Harassment and discrimination of any kind will be death within the most manners. Employee will always remember the business ethics and integrity of each activity and rules and regulation of organization. Company will take a pre-test of the new employee to measure the capability of the employee and then company will provide the training for upgrade its skill. MMFSL will see the employee innovation and positive risk taking for the business. Company wills property like all equipment, patent, copyright, trademark, plan, strategy, design and trade secret.
MMFSL will follow the countries legal framework. Companies business are spread a multiple location so company will special care to adopted in matter that impact in more than one place. MMFSL is not belonging to any political party or not support any political party and not support the individual person. MMFSL work for its individual and focus its business. Company will follow the daily reporting system of business, funding and recovering.
Develop appropriate vision and mission statements.
Values give the basic idea, guide or qualify your personal conduct, interaction with other, involvement in your carrier. Moral give the motivation to decide what is right? Or wrong? How you can bring yourself in meaningful way?
Vision consider the belief, values, customer needs are fulfill by the organization. Its shows that the how the organization focus on the market position as well as the competitor activities. Company will attitude toward the growth by its entire department.
Mission is provide to long term information of identity and direction how to achieve the define target. Mission statement is give brief declaration of organization.
Company values are influenced the company past, tempered company's present and it's will shape their future.
Good Corporate Citizenship:
Company will continue to seeking the long term success, it's alignment the countries needs. Companies will do the business without compromising ethical standards.
Company's always give the chance for job to new people and freedom, opportunity to grow. Company will support innovation and well reason risk talking. But will performance on demand.
Company focus the customer need and expectation change them speedily and effectively.
Company special focus the quality is key aspect to delivering for the value to the customers. It makes quality a driving the value to its works. Company believes the do "First Time Right".
Dignity of the Individual:
Company will value individual dignity. Company respects the time and effort of the others. Company wills nature fairness, trust and transparency.
Company Vision Statement:
Vision statement of MMFSL is "to be a leading financial services provider in semi-urban and rural India."
MMFSL is the leading non-banking finance provider, it's subsidiary company of the Mahindra and Mahindra limited so, company vision is to become a leading rural finance company and help to sales more and more product of M&ML. This is the long term vision of the company. Company sales a number of product giving with the finance so they secure its product, provide insurance.
MMFSL mission is to provide a finance services on the basis of the contribution to sales of Mahindra vehicles, tractors and M&M products.
MMFSL is focus on the each and every segment of vehicle financing and develops the skills for acquired through an in depth understanding of the selected product market.
MMFSL will give the services to its genuine customer and M&M needs. If the demand and supply mismatch of fund the company find the solution.
MMFSL will help to M&M to produce better product by gathering information from its target market.
Agree objectives for the next five years and describe factors which would be used to evaluate success, or improvement of the period.
Company main strategic objective is to provide the large range of finance to its customer through its number of branches spread out in India.
MMFSL provide a finance of number of segment like utility vehicle, tractors, two wheeler, three wheeler, cars, commercial vehicles, construction equipments and personal loan.
MMFSL position is between organization banking sector and the money lender.
MMFSL provide the financial services to its customer of flexible, personalized and efficient lending services.
MMFSL already started to provide insurance to its financed vehicle through its subsidiary Mahindra insurance broker limited.
MMFSL enter in the mutual fund and housing loan business in rural and semi-urban market with its strong long term personal relationship.
MMFSL main business is to provide a refinance on utility vehicle.
Mahindra and Mahindra financial services is a suitable strategy like the provide the finance in the rural and semi-urban market. This strategy is suitable for finance because the Indian business market is growing up and also rural and semi-urban market is recently started to grown. This strategy is validity is very long term. Strategy is gives the consistence giving the gain or reword. Organization will provide the flexible finance and more funding for its existing finance. This strategy shows the company feasibility like population and awareness of the company and its strategy and plan. This strategy shows vulnerability is very good stand point in the Market.
Chart defining the 5 year plan of firm showing stages expansion
Relation with M&M Limited
Funding more in the Utilities Vehicles and Tractors
Increase more Branches
For business and Recovery.
Build relation with Dealer, sub dealer and Broker
For Number of Cases
Every 15 Days
Review the strategy
Board of Director
Reduce the NPA
Branch Manager and every Employee
Increase branch Performance
Define Area Team Structure
Find the Employee Shortfall
MMFSL top management has to continuous to meet the Mahindra and Mahindra limited to increase the fund. Organization has to find out the more number of sources of fund so the company will increase the number of customer as well as the number of fund. Top management has to review the strategy to implementation on it. Each state manager has to increase the number of branches on its area to provide better services to the customer. Increase the number of cases and keep holding the market position. All branch manager and every employee has to arrange the weekly meet to the dealer, sub dealer and broker. Who give to company business and also they provide the information the customer and the vehicle. This information is helping them recover the money from the market and reduce the non performing assets (NPA). MMFSL has to define the new area structure so every area manager had to know the how to perfume and how many people have to do the business and how many people do the recovery.
Explain how the process will be communicated to the work forces within & outside
MMFSL the top management is watching up the strategy and they are the welcome the customer, employee and outside entities suggestion. MNMFSL has welcomed the customer comments and improve its customer services and the way of presenting the services to the customer. Monitor system is include the company sales position and what is the actual sale write now and the how to improve theme. Each and every manager has to give the task the monitor the each and individual task and receive the feedback from the employee. Top management has received the response from the every manager and it is positive or negative. Manager has to monitor the competitor activity and understand them and evaluation on the over product and services.
After receiving the feedback from the grass level and review the strategy make some changes on it and apply once again and follow them more power.
Construct monitoring and control systems which could evaluate each stage annually.
When the organisation develops structures they develop system of control communication channels and cultural entities that subsequently affect how strategy develops. The organization following cost leadership strategies will therefore manage their activities in different ways than those following differentiation strategies. Decision about structural configuration will affect both operating efficiency and strategic decision making. In order words strategy implies structure and structure influences strategy creation
The MMFSL strategy is the long term strategy it's define a nicely. Over all Mahindra and Mahindra financial services limited is a reputed organization and well known as in financial sector and it's a non banking finance company and they have to bit the reserve bank of India in financial year 2008-09. Company will increase growth, fixes assets, reputation, trademark etc.