11/7/2021
Strategic Business Planning:
Kabu Projects Pvt. Ltd
MBAZG611 - Experiential Learning Assignment
Submitted to:
Prof. Neetu Yadav
Siddharta Sen - 2020mb21514
KABU PROJECTS PVT. LTD
1. KABU PROJECTS PVT. LTD – COMPANY BACKGROUND AND INDUSTRY
Kabu Projects is an Indian conglomerate headquartered in New Delhi, India. It was founded in 1982 and gained international recognition with its
brand “ATMOS” which specializes in the field of Severe Duty Air Conditioning & Refrigeration. The company is well recognized as the most trusted
and reliable brand in Steel Plants, Non Ferrous Smelters, Heavy Equipment Manufacturing & Mines.
We are specialist in manufacturing of ATMOS Brand of High Temperature Precision Air Conditioning & Refrigeration solutions. The company focuses
in solutions for Hot Zone applications in Steel & Non-Ferrous Metal making as well as Mining, Ports & Oil & Gas segments.
The company portfolio comprises of turn-key solutions in the field of Industrial HVAC from design, manufacturing, supply, installation,
commissioning & after-sales services for the industries mentioned earlier.
The product range is broadly split into two categories; Industrial grade units with cooling capacity from 320W to 4000W rated up to 55 Deg. C and
Heavy Duty units from 2.5 KW to 24 KW from 55 up to 90 Deg. C.
2. STRATEGIC MANAGEMENT PLANNING BUILDING BLOCKS
1.
ENVIRONMENTAL SCANNING
a. Pestel Analysis Of Industry
POLITICAL ANALYSIS:
• Government has taken various steps to boost the sector including the introduction of National Steel Policy 2017 and allowing 100% Foreign
Direct Investment (FDI) in the steel sector under the automatic route. According to the data released by Department for Promotion of
Industry and Internal Trade (DPIIT), between April 2000 and March 2021, Indian metallurgical industries attracted FDI inflow of US$ 14.74
billion.
• The National Steel Policy 2017 aims to increase the per capita steel consumption to 160 kgs by 2030-31. The Government has also
promoted policy which provides a minimum value addition of 15% in notified steel products covered under preferential procurement.
•
•
In 2019, the Government introduced Steel Scrap Recycling Policy with an aim to reduce import. This in turn will also improve the
consumption per capita which is currently @ 19kg/capita in rural areas and 46 kg/capita in urban areas. As a benchmark the per capita
consumption of steel in developed countries is approximately 234kg/capita and in China it is 512 kg/capita.
India is currently the second largest Steel Manufacturer in the world after China. The current goal is to take the national manufacturing
capacity from 100Million Tonnes per Annum(MTPA) to 300 MTPA by 2030.
ECONOMIC ANALYSIS:
•
The industry is also benefitting from the developments happening across various industries. The new Vehicle Scrappage policy will help in
reducing the steel prices since the policy enables recycling the materials used in old vehicles. In the healthcare front, major steel producers
are now exceeding their production capacities to produce oxygen cylinders for COVID patients. In 2021, Indian Railways is planning to
procure over 11 lakh tons of steel from Steel Authority of India Limited (SAIL) for the track renewal and laying new lines across the country.
•
In June 2021, Mr. T.V. Narendran, CII president and MD of Tata Steel, in an interview with The Telegraph, stated that steel companies have
firmed their plans to invest ~Rs. 60,000 crore (US$ 8.09 billion) over the next three years—this is was the biggest private sector investment
plan announced in recent times.
•
•
In January 2021, the Ministry of Steel, Government of India, signed a Memorandum of Cooperation (MoC) with the Ministry of Economy,
Trade and Industry, Government of Japan, to boost the steel sector through joint activities under the framework of India–Japan Steel
Dialogue.
In July 2021, the Union Cabinet, approved the production-linked incentive (PLI) scheme for specialty steel. The scheme is expected to
attract investment worth ~Rs. 400 billion (US$ 5.37 billion) and expand specialty steel capacity by 25 million tonnes (MT), to 42 MT in FY27,
from 18 MT in FY21.
SOCIO- CULTURAL:
•
•
Steel making companies strive to improve the quality of life of communities it serves through excellence in all facets of activities. There is a
nationwide increase in levels of urbanization. The level of per capita consumption of steel is an important determinant of the
socioeconomic development of the country.
Steel now contributes about 2% to India's GDP and employs some 6 lakh people directly and 20 lakh people indirectly. Steel industry is
besides responsible for the development in the rural sector which leads to the rise in the criterion of the life of the people.
TECHNICAL:
•
•
Indian steel companies have now started benchmarking their facilities and processes against global standards, to enhance productivity
These steps are expected to help Indian companies improve raw material and energy consumption as well as improve compliance with
environmental and pollution yardsticks. There is a global pressure to achieve carbon neutral status and to levy additional penalties on
countries not confirming to pollution norms.
Companies are attempting coal gasification and gas-based Direct-Reduced Iron (DRI) production. Other alternative technologies such as
Hlsmelt, Finex and ITmk3 being adopted to produce hot metal Ministry of Steel has issued necessary direction to the steel companies to
frame a strategy for taking up more R&D projects by spending at least 1 per cent of their sales turnover on R&D to facilitate technological
innovations in the steel sector. Ministry has established a task force to identify the need for technology development and R&D. Ministry
has adopted energy efficiency improvement projects for mills operating with obsolete technologies. In January 2017, Noamundi iron ore
mine of Tata Steel introduced drone technology in mine monitoring
ENVIRONMENTAL:
•
•
Increasingly, environmental concerns are taking centre stage and the Indian steel industry is not immune to this trend. The steel industry is
energy-intensive and is the second biggest consumer of energy globally. This leads to a higher carbon footprint and also affects the
immediate environment. Using energy-efficient methods
to produce steel will not only reduce production costs but also improve competitiveness. This can be achieved through highly developed
energy management systems and usage of the latest technologies in steel production.
Iron & steel industry in India are covered under the Environment Protection Act (EPA) as well as Environment Protection Rules &
Regulations enacted & published by Ministry of Environment & Forest (MoEF&CC). At the beginning, the entrepreneurs are required to
obtain statutory clearances from the Union/State Governments required under the EPA for setting up of any new iron & steel plants or its
substantial expansion. Further, the steel companies are required to install specified pollution control equipment/facilities and also operate
well within the prescribed Standards/Norms in respect of air, water and noise pollutions as also solid waste generation & utilization. These
are monitored by Central/State Pollution Control Boards. MOS helps & facilitates formulation/amendment of Norms and standards.
LEGAL:
•
•
•
•
•
The Steel Making Industry in India is 60% in the organized sector and 40% in the unorganized sector. The Government paying the more
attention in the welfare policies of the employees who are working with the steel industry. Particular wellness inducements and
regulations are introduced in the steel industry.
The welfare measures are to meet the real needs of the employees. This means that the management must first determine what the
employees’ real needs are with the active participation of the employees. There are the difference in age, sex, marital status and number
of children, type of job, and the income level of employees. Hence there exist large differences in the needs of employees for the welfare
measures. Management is to balance these needs while providing the welfare measures.
The management is to assume a benevolent posture while providing the welfare measures.
The expenditure on the welfare measures are to be planned properly in the budget and its financing is to be established on a sound basis.
There is to be periodical assessment or evaluation of the benefits of the welfare measures and necessary timely actions are to be taken on
the basis of feedback.
b. Porter’s Five Forces Model Analysis
1.
2.
3.
4.
Threat of New Entrants
Threat of Substitutes
Bargaining Power of Suppliers
Bargaining Power of Buyers
5.
Intensity of Rivalry Among Existing Firms
A high force can be regarded as a threat and reduce profits. A low force be an opportunity and may permit higher profitability.
•
Threat of New Entrants(LOW)
o
o
o
•
Bargaining Power of Suppliers (MEDIUM)
o
o
o
o
•
o
o
Limited number of established & proven indigenous manufacturers available.
Gradual preference of buyers for Indigenous manufactures from earlier imported manufacturers under ATMANIRBHAR Bharat
campaign.
Increasing number of Alternatives subcomponent manufacturers.
Switching cost in terms of re-evaluation of performance parameters and change in R&D and machine design can be time
consuming and cost intensive.
Threat from Substitutes(LOW)
o
o
o
•
Certain component manufacturers have patented design and hence alternatives is not available.
Large number of suppliers for other subcomponents exist in the industry.
No threat of suppliers for forward integration.
Time consuming and expensive R&D switching costs.
Bargaining power of Buyers(MEDIUM)
o
o
•
Economies of Scale - Large start-up costs in terms of factories, trained and qualified staff, certifications, marketing etc.
Access to Raw materials, technology and distribution channels - Not easily available to a new entrant
Brand Identity and Differentiation - Strong established brand names can merge and thereby enter the segment and command
market share example Voltas, Bluestar & Daikin – if they wish to enter the Industrial HVAC segment.
Variable Frequency Drives(VFD) capable of operating in ambient temperatures of 70 deg. C. Currently such a technology does
NOT exist and VFD limit to 40 Deg. C and hence demand for such a specialized air conditioner will continue.
Domestic regular Air conditioners have a limitation of operation in ambient temperatures of 45 Deg. C and hence cannot perform
in such demanding site conditions.
Air Handling Units/Blowers/Chillers & Dessert coolers cannot sustain heavy dust loads and corrosive environments.
Intensity of Rivalry within the industry(MEDIUM)
o
o
Prior client preferences and product positioning do NOT permit heavy rivalry amongst end users. Clients prefer to maintain a
single brand due to inventory handling charges and comfort through proven reputed brand. This is exemplified through single
party purchasing and Annualized Rate Contracts.
Category wise product positioning:
§ Non Moving Machinery up to Ambient Temperatures of 40 Deg. C.
§ Bluestar, Voltas
§ Room ACs – 35 Deg. C
§ Daikin, Hitachi, Voltas, Bluestar
§ Moving Equipment – EOT Cranes, Coke Oven Machines – 90 Deg. C
§ ATMOS, Frigortec GmbH & Lintern(USA)
2. STRATEGY FORMULATION
a. SWOT Analysis
Internal Factors
Strengths
WEAKNESSES
Strong After Sales Service
Strong Rnd and Technical Team
Weak presence in Public Sector plants
Strong Industry Reference List and Proven Track Record
Long Lead time for manufacturing
Strong Marketing Team
High Employee Overhead Costs
Large Scale Manufacturing Facility
Reliance on Manual Documentation
Large Cash Reserves
Limited Product range
Good relations with End Users and OEMs
No International Brand Awareness and minimal export market
presence
Strong Brand Value
No Strategic Channel Alliances
Low Attrition Rates
OPPORTUNTIES
New and Upcoming Steel Expansion Projects in India and
Globally
Demand for Digitization
THREATS
Threat of Entry of New Players
Threat of Obsolescence of Technology or changes in existing
technology thereby reducing demand for HVAC
Demand for Replacement of outdated and non-ecofriendly refrigerants
Rising demand for alternative suppliers in related markets
such as Oil & Gas, Pulp & Paper.
Threat of Existing players lowering prices
Losing Marketing share in global markets
External Factors
b. TOWS Matrix
CORPORATE LEVEL STRATEGY
•
•
MISSION STATEMENT
Cooling Confidence Delivered
VISION STATEMENT
Making innovative use of technology in order to create efficient cooling industrial solutions that improve customers’ machine efficiency,
productivity while prioritizing robustness and reliability.
BUSINESS UNIT STRATEGY
•
•
OBJECTIVES
Increase company revenue topline by 95% and profitability by 100% through marketing penetration/saturation and organic plus strategic
partnerships.
TIMELINE
3 Years
FUNCTIONAL STRATEGY
•
R&D STRATEGY
-Technological leadership with Cost leadership – In Global Markets thereby building brand visibility through clear demonstration of Pop’s(Points of Parity) and Pod’s(Technologically)
-Technological Leadership with Differentiation – In domestic markets. Leading to increased average revenue per machine and making entry
INTERNAL FACTORS
EXTERNAL FACTORS
STREGNTHS(S)
WEAKENESSES(W)
OPPORTUNITIES (O)
• Strong marketing team, strong reference list,
strong brand name and large scale
manufacturing facility will help capitalize on
opportunity for Upcoming Steel expansion
projects in India and Globally.
• Strong RnD Team will be able to produce
similar or alternate products to capture the
rising demand for alternate suppliers in related
markets.
• Strengthen market and channel agreements in
Public sector plants hereby boosting topline by
capturing the Maharatna Expansion plan for SAIL
PSU.
• Investing in untapped or developing markets or
related markets with by developing more product
options to improve market penetration as well as
expand global market share.
• High turnaround time due to rudimentary
manufacturing and procurement processes.
THREATS(T)
• Strong brand, strong marketing team and
proven reference list can prevent or make
difficult the entry of new players or existing
players dropping prices.
• Strong R&D team can prevent the threat from
obscolence of technology
• Reduce Threat of new competition or product
obsolence by making investments in new products
• Reduce Threat of Losing small International Market
share by engaging in Joint Ventures with related
companies or associating with strong local channel
partners.
barriers higher for any potential new entrants.
•
•
HRM STRATEGY
-Self-managing Teams – Bringing ownership and clear deliverables following Management by objectives building towards the larger
picture.
-Virtual Teams – Building better inter department harmony through regular cross functional communications.
SOURCING STRATEGY
-Focus on Just in Type and Overall Inventory reduction or holding time
-Parallel Sourcing
•
FINANCIAL STRATEGY
-Debt Financing for Increasing infrastructure capability to manage larger & faster machine turnover.
•
MARKETING STRATEGY
PRODUCT
Increase penetration in Existing Markets
PRICE
Penetration Pricing
New market Development of SAIL & USA through Strategic Channel Agreements
Development of new Technical Value add solutions to upscale product offering
options
PLACE
PROMOTION
Focus on Public Sector Clients in India
Road Shows
Market Penetration in GCC
Active participation in Exhibitions & Seminars
Market Development for US Markets
Building Strategic Geographical Channel Partners
3.
STRATEGY IMPLEMENTATION
a. Programs
(i). Revenue Streams
Regular client revenue orders
Project Orders
Annual Maintenance Contracts
Spare Parts
Tier 2 Buyers
Export Projects
NON-Ferrous Customers
Public Sector Purchase – STEEL AUTHORITY OF INDIA(SAIL)
•
•
•
•
•
•
•
•
(Ii) Business Strategy Stream Wise Status Review
S/No.
CATEGORY
STATUS
Remark
1
REVENUE
STRONG
Focus on Value Addition, Client Trainings & Improving Profitability
2
PROJECTS
STRONG
Advance knowledge of all upcoming projects, Strong project positioning & lobbying
3
SPARE
PARTS
MEDIUM
Strategic contracts and understanding with subcomponent OEMs to avoid conflict of interest
4
AMCs
MEDIUM
Improve AMC awareness and offering. Acquisition of new clients. Important to improve client engagement
5
TIER 2
WEAK
Develop Markets & Channels
6
EXPORT
WEAK
Develop Markets & Channels
7
SAIL
WEAK
Build Strategic Channel Partnerships, Extensive Lobbying and Brand Awareness Campaign
8
Non
Ferrous
MEDIUM
Bring Value addition and technical innovation for existing client basis. Focus on new client acquisition.
(Iii) Category Wise Turnover Projections
S/No.
CATEGORY
1
REVENUE
ORDERS
2
CAPEX ORDERS
3
SPARE PARTS
4
AMCs
5
TIER 2 CLIENTS
6
EXPORT
7
SAIL
8
Non Ferrous
TOTAL REVENUE
YoY Increase
b. Budget
FY15-16
VALUE
FY16-17
ALLOCATION
20,00,00,000.00
12,00,00,000.00
1,50,00,000.00
1,50,00,000.00
57%
34%
4%
4%
VALUE
ALLOCATION
20,00,00,000.00
15,00,00,000.00
44%
33%
7%
3,00,00,000.00
3%
1,50,00,000.00
2%
1,00,00,000.00
4%
2,00,00,000.00
4%
2,00,00,000.00
1%
50,00,000.00
35,00,00,000
FY17-18
VALUE
ALLOCATION
24,00,00,000.00
16,00,00,000.00
31%
21%
6%
5,00,00,000.00
4%
3,00,00,000.00
4%
3,00,00,000.00
10,00,00,000.00
15,00,00,000.00
13%
19%
3%
2,00,00,000.00
45,00,00,000
78,00,00,000
40%
73%
•
New Revenue Streams : By introducing more revenue streams higher turnover will directly offset budget requests for resources. Keeping in
mind overhead target percentage of 25% additional sales revenue will offset additional HR costs. Any cost overrun due to manpower hiring
can also be balanced by lowering costs through optimized sourcing channels.
Value Added Sales : Solution value additions in client proposals such as (Uptime guarantee, service care packages & remote monitoring
solutions) increase average turnover per machine and profitability thereby making available funds for human resources & marketing
expenses.
Snowball Growth : Additional Sales revenue will also make available funds for marketing expenses required for increased sales visits to
clients and participation in global exhibitions & conferences.
•
•
c. Standard Operating Procedures
•
Turnover Planning – To improve topline through intensifying market penetration by direct & channel marketing routes thereby
Þ SALES – Increasing annual revenue in existing profit lines:
Revenue Orders: Technical training of Sales team to advise clients on possible solutions during sales visit. Increase sales visit frequency.
Advising of latest developments in technology during sales visit or virtual conferences thereby generating more leads.
CAPEX Projects: Train design team on client manufacturing process thereby exploring loopholes/bottlenecks in HVAC technology. This will
in turn lead to technology consultation and CAPEX lead generation with clear investment vs ROI modules to clients.
Spare Parts: Inform clients on the benefits of housing spare part inventory to cater to unexpected breakdowns and expensive delays due to
loss of production. Audit existing spare part inventory and recommend list of spares to be housed. Increase in turnover will lead to higher
volume of spare parts demanded in future years. Strategic tie ups with component OEMs for exclusive pricing thereby increasing spares
business and preventing conflict of interest.
AMCs : Train & engage service personnel to improve quality of service and promote Annual Maintenance Contract care packages for
customers. Build confidence by offering uptime guarantees thereby increasing client confidence in brand and increasing product line
revenue. Train and build channel tie ups with local HVAC service companies thereby inorganically increasing service network.
Þ MARKETING - Exploring and increasing turnover in existing and newer revenue lines in existing product family:
TIER 2 Client Orders: Increasing brand awareness and product line awareness through ROI in investment schemes to secondary
nonintegrated steel makers and mini mill companies.
Export Orders: Participate in global exhibition and conferences to build brand awareness. Appoint Strategic channel partners with
geographical proximity to cater to larger client pool. Recruit and Train international sales managers for direct sales revenue improvement.
Exclusive collaboration with International Turn Key/EPC contractors as a component supplier.
SAIL: Register in all SAIL plants as an approved HVAC supplier. Process approvals through technical presentations at site and qualifications
with consultants. Issue paid trial machines for critical applications thereby increasing end user confidence.
Non-Ferrous Orders: Increase sales revenue through focused direct sales efforts.
•
Resource Planning
•
Infrastructure Requirements Analysis
o
o
Through customer value addition & brand recognition average price demanded can be increased.
Ongoing average price per machine is estimated at 7.0 Lacs per machine thereby giving estimating approximately 570 machines to be
manufactured annual well within factory limitations.
With increased average revenue per machine @ 8.0 Lacs/machine to achieve target of 78.0 Crores estimate machines manufactured will be
975 thereby requiring facility limitation 20% above @ 1200 machines per annum.
o
o
Upscaling manufacturing facilities through expansion plans. Capital for new facilities will be arranged at a debt-to-equity ratio of 1:1.
Increased cash flow from sales accruals along with debt will be raised from bond markets and domestic banks.
•
Supply Chain Optimization
•
Manufacturing Line Optimization
o Introducing IoT based segment monitoring to capture key bottlenecks and repetitive downtimes or IDLE times.
4. EVALUATION & CONTROL
a. Evaluation : Turnover & Profit Assessment
FISCAL
YEAR
CATEGORY
REVENUE
PROJECTS
SPARE PARTS
AMCs
20,00,00,000.00
14,00,00,000.00
4,00,00,000.00
2,00,00,000.00
REVENUE
ALLOCATION
57%
40%
11%
6%
40,00,00,000.00
PROFIT %
25%
25%
25%
15%
PROFIT
TURNOVER
VALUE
TIER 2
EXPORT
SAIL
Non Ferrous
RESULTS
FY15-16
PROFIT
VOLUME
TURNOVER
VALUE
5,00,00,000.00
3,50,00,000.00
1,00,00,000.00
30,00,000.00
20,00,00,000.00
17,50,00,000.00
5,00,00,000.00
1,50,00,000.00
50,00,000.00
3,00,00,000.00
2,00,00,000.00
50,00,000.00
9,80,00,000.00
REVENUE
ALLOCATION
40%
35%
10%
3%
1%
6%
4%
1%
50,00,00,000.00
PROFIT %
30%
25%
30%
30%
10%
30%
50%
25%
PROFIT
6,00,00,000.00
4,37,50,000.00
1,50,00,000.00
45,00,000.00
5,00,000.00
90,00,000.00
1,00,00,000.00
12,50,000.00
14,40,00,000.00
24,00,00,000.00
20,00,00,000.00
8,00,00,000.00
3,00,00,000.00
3,00,00,000.00
10,00,00,000.00
15,00,00,000.00
2,00,00,000.00
REVENUE
ALLOCATION
28%
24%
9%
4%
4%
12%
18%
2%
85,00,00,000.00
PROFIT %
35%
25%
35%
40%
15%
45%
50%
30%
PROFIT
PROFIT
VOLUME
8,40,00,000.00
5,00,00,000.00
2,80,00,000.00
1,20,00,000.00
45,00,000.00
4,50,00,000.00
7,50,00,000.00
60,00,000.00
30,45,00,000.00
FY16-17
PROFIT
VOLUME
TURNOVER
VALUE
FY17-18
FY15-16
FY16-17
FY18-19
3
12
20
22
LINTERN
17
48
58
FRIGORTEC
40
ATMOS
LINTERN
FRIGORTEC
80
ATMOS
LINTERN
FRIGORTEC
ATMOS
b. Control
(i).OUTPUT CONTROL
o
§
§
§
§
o
§
§
§
§
§
§
o
Turnover was increased 112.5% within 3 year span period. Factors impacting turnover improvement
Additional Revenue streams demonstrated
Increased per machine turnover
Positive buying trend in Steel Industry
Improved market share
Profitability increased by ~200%:
YoY increased profitability in revenue orders due to value added sales attaining higher prices per machines and offsetting annual raw
material inflation costs.
Increased Spare part profits due to exclusive rate agreements with OEMs and clear channel understanding of which channel will bid in
each project.
AMCs – Through training & Third Party SLAs we were able to gain a wide service network thereby increasing AMC turnover and also
profitability due to increased client willingness to pay for authorized service comforts.
Increased turnover in CAPEX projects, TIER 2 orders and Non Ferrous projects through direct sales.
Increased Export Sales – Through global Channel agreements & increased representation on international scale. New clients developed
in Egypt, Chile, Qatar & Malaysia.
Participated in 4 North American & 1 South American Exhibition leading to initial 0.5 MUSD of sales. This in turn would set baseline for
exponential once brand name and performance is established over the next 2-3 years.
Service Network Increased to 150 personnel from 85 man power in 3 years earlier.
(ii)BEHAVIOURAL CONTROL
o
§
Following steps of Revenue Manufacturing process, we focused on these:
Manufacturing Line Optimization – Introduction sub assembly lines and split integrated A&B shift provided 4 more manhours per day
thereby speeding up labor intensive tasks and moving faster down the manufacturing line.
§
§
Overall machine process split from 37 process checklist to 61 process and improving order to delivery cycle time by 18 days.
ISO 9001 : 2015 Certification for manufacturing line up achieved.
3. LEARNINGS
a. Human Resource Learnings
•
•
•
It has been noted that two different sets of strategy were needed to manage office employees(White collar) vs plant and field personnel(Blue
Collar Workers).
It was noted in the case of blue collar staff incentives such as company perks and salary were less meaningful. They were more inclined towards
recognition towards respect & dignity towards. Example a trophy or medal for performance. An office uniform, ID Cards etc.
For white collar workers organizational politics is a much strong roadblock. Factors such as holding onto secret information, not sharing
information across departments. Push for personal recognition.
Company Benefits Mapping
FREE FOOD
MEDICAL INSURANCE
JOB SATISFACTION
RESPECT
RECOGNITION
LAUNDRY SERVICE
GYM ACCESS
COMPANY CAR
SALARY
0
10
20
BLUE COLLAR
30
WHITE COLLAR
40
50
60
•
Building working trust in management is a very key factor in MSME business management. For employees there is a continuous need for
reassurance and trust from the management for decisions taken, for their role in their team, to motivate ownership, to highlight the direction of
the company.
b.
•
•
•
•
•
•
•
Information Technology Learnings
Investing in cloud computing is one of the largest IT investments and corporate shifts required for business management.
Cloud Computing is certainly considerable savings in company’s IT costs. You do not need to spend for the purchase of inventory such as
infrastructure and hard disk. According to the service, plan agreed with the Cloud Computing service provider, you only need to pay a low fee for
regular compensation per month or once paid.
As with the corporate plan of increasing work place diversity and market penetration through strategic geographical proximity. Cloud source
computing is very critical to maintaining and managing data across continents.
It offers greater flexibility to your employees in their work practices. If you need access to your documents and data when you’re off-site or at
home, you can quickly interact with the virtual office. Moreover, you can easily access it whenever you need it via any web-enabled device.
Cloud Computing model enables your business to communicate and share more easily outside of the traditional methods. It allows better
collaboration between employees, enabling multiple users to share and work on data and files at the same time. Cloud makes it simple for the
company’s design and construction experts. Especially for those who invest much of their time on job sites overseas or across various areas to get
work-related information.
Another major benefit of cloud computing is its scalability. Cloud-based services are ideal for organizations with growing or fluctuating bandwidth
demands. Your business can scale up or scale down operations. The resource storage needs of your business may need a quick adjustment to suit
such variations, allowing flexibility as the conditions change.
The more representatives and partners work together on documents, the greater the need for fastened document control. Before Cloud
Computing, employees had to send files back and forth as email attachments to your work by one client at a time. At some point, you end up with
a mess of colliding file content, formats and titles.
c. Sourcing Learnings
•
•
•
Porters 5 Forces model revealed that the bargaining in our situation the bargaining power of suppliers and the bargaining power of buyers is both
low to medium offering a dual advantage. While marketing team focused on value addition and product positioning. Sourcing team took more
immediate effects to build a supplier network systematically. This was able to improve our top line as well as lower our bottom line and widen the
net profit EBIT.
Streamlining all historic purchase data, analysing market buying trends and other factors is key to organized buying
From identifying the right supplier to keeping track of vendor performance and ensuring a stable supply of quality products, the whole process is
filled with complications.
d. Marketing Learnings
•
It is observed that through market penetration both domestically & globally an annualized saturation level of 95-105 Crore will be achieved
in the next 2 – 3 years. There is a max limit. Hence to further continue on growth path a memorandum of recommendation was given to the
management to diversify by investing in new products 2 years in advance to continue on path of revenue growth.
EXISTING MARKET
NEW MARKET
EXISTING PRODUCT
FY15-16 -FY19-20 Reaching Saturation
Levels in Steel & Non Ferrous Markets
FY17-18 -> Building markets in
North & South America, complete
Africa & Australia
NEW PRODUCT
Remote monitoring solutions, VFD
based HVAC, fast lock switch vales.
To be Explored with 3 Year
Timeline to continue on company
growth plan
e. General Learnings & Summary
•
•
•
•
•
Revisiting your Business Continuity Plan on a frequent basis is a necessity.
You must transform your BCP into a living project. Revisit the related strategy and make sure the framework, processes, and elements of the plan
evolve together with your organization.
Rapid decision making is more important now than ever.
A crisis can be a routine affair in day to day business management. It involves making tough decisions in an environment filled with threat, urgency,
and uncertainty. The situation calls for rapid decision making across the entire leadership team. What we have learned is that there are occasions
when plans must change immediately; actions must be taken at the speed of light. Decentralized decision making should also be part of your fast
response plan.
Transparency is required. Emphasize it.
Managers must be able to react quickly and transparently about what decisions the company is making to address the issue and effect change in
the organization.
We have come to realize that people do not need to be at the office in order to perform. As with any job, what our employees require most are the
right tools – with that, miracles can happen. We have seen many incredible ideas come up during virtual meetings – taking place thousands of
miles apart and across multiple time zones. The collaboration through virtual means has been inspiring and I believe leaders will become much
more flexible on remote working plans in the future.
Businesses that are able to shift technological capacity and investments to digital platforms will mitigate the impact of the outbreak and keep their
companies running smoothly both now and in the future.
4. REFERENCES
www.kabuprojects.com
https://www.ibef.org/industry/steel.aspx
https://sail.co.in/index.php/en/sail-news/sails-retail-sales-gets-boost-sails-gaon-ki-ore-campaign
https://www.businesstoday.in/latest/economy-politics/story/jsw-steel-plans-rs-47457-crore-capex-in-3-years-toexpand-capacity-to-38-mtpa-by-2024-296781-2021-05-23
https://www.financialexpress.com/industry/sail-aims-to-start-next-phase-of-expansion-in-2023-24/2307559/
https://www.steelmint.com
https://economictimes.indiatimes.com/markets/expert-view/indian-steel-industry-faced-severe-cost-pressure-inq2-seshagiri-rao/articleshow/87203177.cms
https://www.livemint.com/industry/manufacturing/indian-steel-firms-eye-record-exports-in-fy2211632419522809.html
https://steel.gov.in/overview-steel-sector