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    Godrej

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    Shubham Bhardwaj
    Godrej Group is a large Indian conglomerate operating in various industries. It has a revenue of $4.1 billion and market capitalization of 14,915.54 crore rupees. The group is privately owned by the Godrej family and operates in industries like consumer goods, chemicals, construction, and electronics. The group aims to have Godrej in every home and workplace and its mission is to enrich quality of life everyday everywhere according to its stated vision and mission. It emphasizes values like integrity, trust, respect, and environmental protection. The group has pursued both related and unrelated diversification strategies over time and now generates over 25% of its revenue from international markets.

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    Godrej

    Uploaded by

    Shubham Bhardwaj
    106 views21 pages
    Godrej Group is a large Indian conglomerate operating in various industries. It has a revenue of $4.1 billion and market capitalization of 14,915.54 crore rupees. The group is privately owned by the Godrej family and operates in industries like consumer goods, chemicals, construction, and electronics. The group aims to have Godrej in every home and workplace and its mission is to enrich quality of life everyday everywhere according to its stated vision and mission. It emphasizes values like integrity, trust, respect, and environmental protection. The group has pursued both related and unrelated diversification strategies over time and now generates over 25% of its revenue from international markets.

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    Godrej Group is a large Indian conglomerate operating in various industries. It has a revenue of $4.1 billion and market capitalization of 14,915.54 crore rupees. The group is privately owned by the Godrej family and operates in industries like consumer goods, chemicals, construction, and electronics. The group aims to have Godrej in every home and workplace and its mission is to enrich quality of life everyday everywhere according to its stated vision and mission. It emphasizes values like integrity, trust, respect, and environmental protection. The group has pursued both related and unrelated diversification strategies over time and now generates over 25% of its revenue from international markets.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    106 views21 pages

    Godrej

    Uploaded by

    Shubham Bhardwaj
    Godrej Group is a large Indian conglomerate operating in various industries. It has a revenue of $4.1 billion and market capitalization of 14,915.54 crore rupees. The group is privately owned by the Godrej family and operates in industries like consumer goods, chemicals, construction, and electronics. The group aims to have Godrej in every home and workplace and its mission is to enrich quality of life everyday everywhere according to its stated vision and mission. It emphasizes values like integrity, trust, respect, and environmental protection. The group has pursued both related and unrelated diversification strategies over time and now generates over 25% of its revenue from international markets.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 21

    Godrej Group

    A STRATEGIC MANAGEMENT PERSPECTIVE


    By
    GROUP 8 | SECTION F
    Revenue: $ 4.1 Bn

    Market Cap: 14,915.54 Crore Rupees


    GODREJ: AN
    INTRODUCTI
    ON Private, family owned Conglomerate

    Industries served: Aerospace, Agriculture, Consumer


    Goods, Home Appliances, Chemicals, Construction,
    Electronics, Furniture, Real Estate, Security Solutions,
    Infotech
    ORGANIZATION
    AL STRUCTURE
    ORGANIZATIO
    NAL
    STRUCTURE

    Source: Godrej Website


    VISION: GODREJ IN EVERY MISSION: ENRICHING
    VISION HOME AND WORKPLACE QUALITY OF LIFE
    EVERYDAY EVERYWHERE

    AND
    MISSION

    VALUES: INTEGRITY,
    TRUST, TO SERVE RESPECT,
    ENVIRONMENT
    VISION AND MISSION
    Vision: “Godrej in Every Home and Workplace “
    • answers “What will success look like”
    • Provide “Reason for being”

    Mission: “Enriching Quality of Life Everyday Everywhere “


    • Realistic, Credible and Attractive
    MISSION
    Mission: “Enriching Quality of Life Everyday Everywhere “
    • Realistic, Credible and Attractive

    • It Answers:
    • What is the basic purpose of organization?
    • What is unique?
    • What is in differentiator?
    • Who are, and who should be, principal customers?
    • What are the basic beliefs, values and philosophical priorities of firm?
    VALUES
    • Values: Integrity, Trust, To Serve Respect, Environment
    • Reflects:
    • Respect for their Employees
    • Responsiveness to their customers
    • Results for their Shareholders
    COMPETITORS
    • Response has been mixed
    • Example: Lost market leader position in refrigerators with the rise of
    Korean giants like LG, Samsung etc
    in terms of Brand recognition, it stays #1
    Showing inability of Godrej to capitalise on Brand image
    • Example: GCPL Success- tapping new markets and diversifying risks
    • Sara Lee’s Acquisition helped with efficient management of portfolio
    in South Asia
    COMPETITORS- AN EXAMPLE
    GCPL: HUL, RB, P&G, ITC

    Godrej Infotech: Oracle, SAP etc

    Godrej and Boyce Manufacturing Co. Ltd.: LG,


    Whirlpool, Samsung
    CLIENTELE
    • BARC, ISRO
    • IAF, Navy
    • HAL
    • Indian Parliament
    • MNCs like Hitachi, Reliance, Conoco Philips, Bechtel, Valero, MOOG,
    Ion America Lab
    FAMILY BUSINESS MODEL
    • Family continues to hold 50-100% shares in its industries
    • Senior Management is mostly third gen Godrej family members
    • Fourth generation is just entering, with a strong succession plan
    • Structural changes post liberalization
    • Group Companies are like SBUs, chaired by family members
    • Steady Growth, so model works
    ORGANIZATIONAL STRATEGY- R
    STRATEGY
    • Maintaining market leader position in Security Products Division since
    conception
    • Second and Third Gen continued to enter unchartered territories
    • First Movers’ Advantage:
    • First Lock with Lever Tech: Anchor
    • Introduced First Safe in 1902
    • First vegetable oil soap
    • First Introduction of Typewriters in India- mechanical (1955) and electronic (1985)
    • First to bring Poly Urethane Tech in India (1958)
    • Good Night, Hit etc (pesticides)
    • And so on….
    ORGANIZATIONAL STRATEGY-
    UNRELATED DIVERSIFICATION
    • Initially, From Locks to related security products
    • From security to consumer appliances to material handling
    equipment to precision components to life sciences, insurance, real
    estate, telecom, medical diagnostics etc
    • With later generations, this was more pronounced unlike Dabur,
    Wadia families
    • Families like Kirloskar have acted on Decision making through
    consensus, but Godrej on risk minimization and family wealth
    preservation
    ORGANIZATIONAL STRATEGY-
    DIVERSIFICATION
    • A few acquisitions by Godrej:
    • Transelaktra: mosquito repellents
    • Keyline Brands Limited: international portfolio expansion
    • Rapidol South Africa: mkt share now 80% in South African ethnic hair colour
    market

    • Internal Restructuring (transfer of Godrej Global MidEast FZE from


    Godrej International to GCPL)

    • JV: Godrej Properties and Godrej Agrovet


    Pre Independence: India

    ORG
    STRATEGY- Post independence, overseas
    GLOBALIZATI expansion begins
    ON

    More than 25% of its current


    revenue comes from overseas
    markets
    FUNCTIONAL STRATEGY
    • Godrej Soaps (Parent company of GCPL) implemented TQM in 1991
    • Godrej chose Kaizen over ISO 9000, as the latter did not reduce operational
    costs
    • By 2002, the model was extended to all Godrej companies
    • GCPL: Collaborative Planning, Forecasting and Replenishment (CPFaR) model
    instead of forecasting and push model
    • Manufacturing in low tax areas like HP and Assam
    • ERP in 1998
    • Godrej and Boyce: Balanced Score Card in 1998
    • Wide variety of products, but focus on low to middle income groups
    INTERNAL ANALYSIS
    • Strengths
    • Core Strength: Value System
    • Brand Name
    • National Presence
    • People
    • Relationships
    • Financial Strength
    • Resources
    • Weaknesses:
    • GCPL Lack of the scale of competitors like ITC and HUL
    • Stiff Competition affects market share
    RESOURCES
    • Capitalization of Internal Resources- Intrapreneurial
    • Tangible- manpower, machinery, technological expertise, land
    • Intangible- brand, customer and supplier loyalty and acquired
    knowledge
    • Long term goals include investment in quality, infrastructure and
    enduring relationship with the employees
    SOME OBSERVATIONS
    • Family Control and cementing of values
    • Succession Plan should be concrete and transparent
    • Needs to be more dynamic to sustain and grow
    This Photo by Unknown Author is licensed under CC BY-NC-ND

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