Vision and Mission Statement The company does not have a vision and mission statement. Anand G. Mahindra stated that “We do not 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” ("Mahindra - Overview", 2020). Considering various aspects of the company, the vision and mission statements can be suggested as follows Vision To create outstanding automotive value for our customers across the world by blending quality, safety, and efficiency - This is a great start. Remember though a vision statement is meant to be what an organization wants to achieve for the future. If this is a vision statement then it sound as though Mahindra doesn’t currently create outstanding automotive value. Revise this so that it is future sounding. Mission Statement We are a global family committed to innovating mobility solutions to enhance the quality of life. We deliver outstanding products and services to improve people’s lives. – “mobility solutions” is not the correct wording. In North America, this typically refers to helping disabled people so it sounds as though this is a wheelchair company or other type of company that makes products for people that have trouble walking. External Analysis Political Analysis – Very good factors here. You also need to consider political factors in countries where Mahindra products are sold. Most of the below factors are similar to those found on slides 9 and 10 on this website https://pdfslide.net/documents/pestle-analysis-of-mm-tractors.html The political analysis involves examining political factors, which refer to government policies affecting the business. Below are some of these factors • • • • • The Indian government has invested heavily in the agricultural sector (Arora, 2013). The sector started receiving financial assistance, which fosters the demand for agricultural equipment manufactured by automobile industry. In India, government policies in the automobile industry have been framed to aid the expansion of the automobile sector. The Indian government has also reduced the tariffs on car exports, and this has contributed to greater profit margins of the company. The government has eliminated the required minimum capital from new investors. This has, however, attracted more competition for industry. The government has also urged the state government to ensure a constant supply of power. This has created a productive environment and minimized losses for the company. • The Indian government has also proposed an import duty for establishing new industrial holdings and manufacturing units Economic Analysis - See comments below. It’s not clear which region you are considering. Update this for Part C. Actual data should be used where appropriate. The economic examination involves factors such as interest rates, exchange rates, recession, inflation, taxation changes, and economic growth. • • • • • • Considering economic growth, resent slum in economic conditions has resulted in the fall in automotive sales (Strauss, 2019). – what region are you referring to India? USA? Canada? Global? The current fluctuations and rising cost of fuel have also contributed to the decrease in automobile sales. Considering the declining GDP in the international market, the sales in this sector is likely to fall. – what region are you referring to India? USA? Canada? However, low inflation rates have created a stable economic environment in the automobile sector. – what region are you referring to India? USA? Canada? The current stable exchange rates are likely to boost the exports of automobiles The recent changes in taxation such concession in import duty is likely to boost the industry. – This is a political factor Social Analysis Most of the below factors are similar to those found on slide 14 on this website https://pdfslide.net/documents/pestle-analysis-of-mm-tractors.html The current social factors affecting the company include • • • • • • The rapid urbanization of rural regions. It is likely to decrease the demand for agricultural equipment The increasing emphasis on comfort and luxury. It forces the industry to incur additional costs to meet customer expectations. Improving the living standards of the middle-class. The social trend is like to increase the demand for automobiles. The increasing behavior of ‘seeking value for money.’ The social trend forces many companies to embrace innovation to meet customers’ expectations. Buying materials overseas. Importing raw materials brings about various challenges related to international trade. – This is a political factor Selling to foreign customers. It involves international trade, which requires the need to take into account different cultures. Technological Analysis Most of the below factors are similar to those found on slide 16 on this website https://pdfslide.net/documents/pestle-analysis-of-mm-tractors.html The technological factors include automation, R&D activity, technological change, renewable energy, and technological incentives. • • • • • • Technological changes. The recent technological changes in this sector have affected costs and quality. Innovation. Automobile industry has been a step ahead when it comes to innovation, and this has given it some competitive edge ("Mahindra Rise - Mahindra Official Website", 2020). Renewable energy. Vehicles operating on renewable energy are on-demand, and this affects production costs and product prices Low-fuel consumption vehicles are increasingly becoming a primary concern for customers. There is increasing use of the internet as a medium of exchange R&D activities. Mahindra has improved its technology significantly, and this has made it very competitive globally. Porter’s Analysis Good start but more information is needed. See comments below and make corrections for Part C. a). Bargaining Power of Buyers • • • • • • There is a lack of awareness among farmers on certain things such as pricing The company has few big buyers hence each one is vital to the firm Tractor companies can compromise on price and quality because of high switching costs In India, the consumer base is high disbursed - what does this mean? Buyers lack adequate information regarding offerings These factors lead to the low bargaining power of buyers (Dobbs, 2014). b). Bargaining Power of Suppliers – Need to identify the major supplier groups to the industry and then evaluate the bargaining power of each of those supplier groups. • • • • • There is a high differentiation of inputs There is a high availability of substitute inputs There is moderate supplier concentration One supplier cannot reduce the availability of products Therefore, the bargaining power of suppliers can be rated as moderate (Dobbs, 2014). c). Threat of Entry - There are more criteria for this factor that should be evaluated. Also, need provide more explanation for each criteria. • • • • • • Entry requires high startup capital The industry requires a large dealer network - which criteria does this belong to? The industry is characterized by intensive technology requirement There is a high switching cost - why? To a larger extent, the existing companies have great control over suppliers - This doesn’t belong here Competitors are reactionary towards new entry • Therefore, the barriers to entry can be categorized as high (Dobbs, 2014). d) Threat of Substitute • • • • There are limited substitutes to tractors The only available option is bull-plow There is no each of switching - This sentence is not correct. Therefore, the threat of substitution can be rated as low e). Power of Complementary Goods - This is suppose to be Competitive Rivalry. There are more criteria for this factor that should be evaluated. Also, need provide more explanation for each criteria. • • • There is a high concentration of competition - How do you know there is a high concentration of competition. There is a high level of globalization in the industry The Power of Complementary Goods can be rated as high (Dobbs, 2014). Internal Analysis Value Chain Analysis It appears that section is not your own work. Sections of this are similar and/or the same as text found on https://www.essay48.com/value-chain-analysis/4054-Mahindra-Mahindra-Ltd---Farm-EquipmentSector-Acquisition-of-Jiangling-Tractor-Company-Value-Chain-Analysis Primary activities • • • • Inbound logistics: Mahindra has a strong relationship with suppliers. It can retrieve raw materials, store inputs and distribute components internally. Without analyzing the in-bound logistics, Mahindra Ltd Farm Equipment Sector Acquisition of Jiangling Tractor Company can face various challenges in product development phases. Operations: Mahindra is perfectly capable of operational activities like machining, assembling, testing, packing, maintenance, and repairs. It includes both- manufacturing and service operations. Analysis of operational activities is important for improving productivity, maximizing the efficiency and ensuring the competitive success of Mahindra Ltd Farm Equipment Sector Acquisition of Jiangling Tractor Company Outbound Logistics: The Company can optimize the outbound logistics for competitive advantage. The activities include warehousing, material handling, order processing, and delivery. Mahindra Ltd Farm Equipment Sector Acquisition of Jiangling Tractor Company can analyze and optimize the outbound logistics to explore competitive advantage sources and achieve its business growth objectives. Marketing and Sales: The company strategy involves the production of high-quality products with distinctive features at affordable costs. Only producing a high-quality product at affordable costs and distinctive features cannot create value until Mahindra Ltd Farm Equipment Sector Acquisition of Jiangling Tractor Company invests on the marketing and sales activities. • Services: The pre-sale and post-sale services offered by the Mahindra Ltd Farm Equipment Sector Acquisition of Jiangling Tractor Company will play an important role in developing customer loyalty. The modern customers consider post-sale services as important as marketing and promotional activities. Support activities Firm infrastructure The firm infrastructure denotes a range of activities, such as- quality management, legal matters handling, accounting, financing, planning and strategic management. Effective infrastructure management can allow Mahindra Ltd Farm Equipment Sector Acquisition of Jiangling Tractor Company to optimize the value of the whole value chain. Human resource management Mahindra Ltd Farm Equipment Sector Acquisition of Jiangling Tractor Company can analyze human resource management by evaluating different HR aspects, including- recruiting, selecting, training, rewarding, performance management and other personnel management activities. The effective HR management can allow Mahindra Ltd Farm Equipment Sector Acquisition of Jiangling Tractor Company to reduce competitive pressure based on motivation, commitment and skills of its workforce. Technology Technological advanced era, almost all value chain activities depend on technological support. The technological integration in production, distribution, marketing and human resource activities requires Mahindra Ltd Farm Equipment Sector Acquisition of Jiangling Tractor Company to realize the importance of technology development. It can be divided into product and process technological development activities. Procurement The procurement in value chain denotes the processes involved in purchasing the inputs that may range from equipment, machinery, raw material, supplies, raw material and other items necessary for producing the finished product. Due to its linkage with multiple value chain activities, Mahindra Mahindra Ltd Farm Equipment Sector Acquisition of Jiangling Tractor Company should carefully consider its procurement activities to optimize the inbound, operational and outbound value chain. Resources and Capabilities - This needs to be divided in to tangible and intangible resources. The information here needs to be specific. For example, Where does Mahindra have manufacturing and distribution facilities? How many facilitates does it have? • • • • Resource Analysis. The resources of Mahindra Company can be categorized as capability and stock resources. When it comes to physical resources, the company is characterized by high inventory capacity, several own outlets and high-quality machinery for production and distribution. When it comes to human resources, the company has senior professionals from diverse companies and sectors. Technological Resources. The company has among the most advanced technological plants. It has also established total quality management in its entire operation. Evaluating the Firm’s Performance • • Profitability: Mahindra has reported an increase in profits in the financial year of 2019 – What are these profits? Specific data is required. Market Share: In India, the company has regained the market share to 41% in the automotive sector. – reference for this? Competitive key Advantages It is important for Mahindra Ltd. the farm equipment division acquired Jiangling Tractor Corporation based on a competitive advantage that it could access to activities of rare or scare resources. It may includeknowledge capital, assets, skills or distribution network. Value chain analysis can help Mahindra Ltd. farm equipment division to acquire Jiangling tractor company identify these activities and develop these areas to gain a strong competitive advantage. There are many examples (such as Toshiba and sharp) that value chain analysis is a tool to gain a competitive advantage and to invest heavily in research and development activities within their value chain network. Porter's general strategy to achieve competitive advantage and value chain models can be used together to build a strong competitive advantage Foundation. SWOT analysis Strengths • • • • • Strong brand position. The company’s brand is widely recognized both locally and internationally Innovation. The company has invested heavily in technology to foster innovation Leading tractor brand. The company is recognized internationally as a number one tractor brand Human and technological resources. The company is one among the companies with the most skilled human and technological resource New launches. The company has recently launched new products that have strengthened its product portfolio. Weaknesses • Over 60% of its revenue comes from India. It means that high inflation or economic slowdown in India can affect its operation significantly. – Reference? • • • • The sale of tractors is largely dependent on how the rural agricultural sector performs. Overdependence on the automobile industry. It makes it vulnerable to a slowdown in the sector (Ramaswamy & Chopra, 2014). Products recall. The company has recalled its products in the past which has affected its brand image – Reference? The company’s partnership with Renault. The partnership didn’t live up to its international quality standards. – when did this happen? Reference? Opportunities It appears that this was completed independently from the external analysis. There are factors here that are not in the PEST. The opportunities should come from the PEST analysis. You need to review the PEST and move the positive factors from the PEST to opportunities. • • • • • Fast-growing industry. The company can take advantage of the fast-growing automobile industry to expand. Export potential. The company has a great opportunity to expand internationally into untapped markets - Needs to be more specific. What untapped markets are you referring to? Rising demand for infrastructure equipment. This is a great opportunity for the company to increase its sales. Growing demand for hybrid cars. It also provides a good opportunity for the company to expand its sales. Emerging markets provide the company with an opportunity to increase their global footprint (Ramaswamy & Chopra, 2014). Threats You need to review the PEST and move the negative factors from the PEST to threats. There are additional threats that can be included here. • • • • • Ever-increasing fuel prices. Increasing fuel prices lowers the demand for automobiles. Competition from global brands. Major global brands producing similar products present a significant threat to Mahindra (Ramaswamy & Chopra, 2014). Environmental protection initiatives. Efforts to curb pollution present a threat to the company’s product portfolio. Stringent regulations. The company is subject to government regulations when it comes to emission and noise levels. Substitute mode of transport like metro trains. They lower the demand for the company’s products because of readily available better alternatives. References • • • • Arora, V. (2013). Agricultural Policies in India: Retrospect and Prospect. Agricultural Economics Research Review, 26(2), 135-157. Dobbs, M. E. (2014). Guidelines for applying Porter's five forces framework: a set of industry analysis templates. Competitiveness Review. Ramaswamy, V., & Chopra, N. (2014). Building a culture of co-creation at Mahindra. Strategy and Leadership, 42(2), 12-18. Mahindra - Overview. (2020). Retrieved 27 January 2020, from https://www.timesjobs.com/timesjobs/mahindraandmahindra/index.html. • • • Mahindra Rise - Mahindra Official Website. (2020). Retrieved 27 January 2020, from https://www.mahindra.com/ Strauss, D. (2019). The decline of the motor industry drives global economic slowdown | Financial Times. Retrieved 30 January 2020, from https://www.ft.com/content/cd2f8bdc-fef611e9-be59-e49b2a136b8d. Dekker, H. C. (2003). Value Chain Analysis in interfirm relationships: a field study. Management accounting research, 14(1), 1-23.
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