By:-
Vasista B V
Prashanth
Nagendra
Supriya T swamy
AGENDA OF THE PRESENTATION
Background of the Voltas case
Strategy process at Voltas
Mission statement (aim & goal)
Objective
Environmental analysis
Strategy (generic, alternative)
Swot analysis
Conclusion
Background of the case study
Voltas was set up in the year 1954.
In the year 1963 started manufacturing.
In the year 1964 set up the supporting
industry.
The range of products gradually widened.
Voltas international limited was set up in the
year 1978.
Over a year voltas tied up with several global
players.
Until the 1990s voltas was a major player.
Continued………..
The company invested heavily in the business b/w
1994&1997.
At the same time voltas had diversified into
several unrelated business.
Voltas acquired the loss-making Hyderabad
ALLWYN LTD.
The demand fell down by 9% in 1996-97.
The debt doubled from 1.65 billion in 1994-95 to
3.3 billion 1996-97.
The MD of voltas Viswanath H munshi replaced by
Nawshir.
Continued…..
The restructuring.
Others -
Chemicals Trading.
Voltas – is leader in air conditioning business.
Voltas – is largest projects exporter in Mechanical, Electrical and Public Health works.
Voltas - is No. 2 brand in air conditioners.
Voltas – is most trusted name in mining and construction equipments.
Voltas – enjoys market leadership in textile machinery.
Voltas – is a innovator and leading player in machine tools.
Voltas – is leading force in forklift trucks.
MISSION STATEMENT
AIM :
Historic Voltas mission to 'foster indigenous manufacture' had
one particularly momentous outcome.
To foster indigenous manufacture of engineering products
and capital equipment, based on technologies acquired from
overseas, often from Volkart's existing principals.
To supply the full gamut of services, from marketing to
commissioning, for such products.
GOAL :
To have a market share of 20% in 2006.
ENVIRONMENTAL
ANALYSIS
(Where are we now??)
From a loss of Rs. 119mn in 1998-99, Voltas recorded an
From a loss of Rs. 119mn in 1998-99, Voltas recorded an
operating profit of Rs. 69mn in 2000.
The company offered a dividend of 12% in 2000.
In electro-mechanical business, Voltas decided to strengthen its
financial capabilities in order to further expand it business.
Voltas intended to grow through brand building and new product
launches.
Making a mark in the High end category Segment – electro
mechanical projects, air conditioning and refrigeration.
RAPIDLY
INCREASING
ITS MARKET SHARE
Market Shares in the Indian
Ac Market
25%
59%
13%
OBJECTIVE
(Where do they want to
be ???)
To have a market share of 20% in 2006.
Expansion of its Sales Infrastructure
Become a Mass product and still retain its
leading edge technology
STRATEGY AT VOLTAS
PRODUCT DIVERSIFICATION
Product Range is from contemporary to hi-tech
Diversifying products so that each and every segment
is covered
FOCUS OF THE COMPANY
Provide contemporary and best-in-class products meeting customer needs and value
expectations
Build customer loyalty by strengthening after-market operations through service.
Ensure cost reduction in all aspects of operations to achieve total cost leadership in
the market.
Achieve market leadership through people by attracting, developing and retaining
excellence in personnel.
Energise the organization through teamwork to ensure that various functional areas
work together to deliver results in a quick and effective manner.
Explore new avenues for revenue generation leveraging established manufacturing
and distribution strengths.