PGP-18-234 Submission – 4: Operations Strategy Varun Singh

Discuss the highlights of the operations strategies of the following

companies

M&M – Mahindra Tractors

1. The company envisages drawing half of its revenue in the segment from overseas operations over
the next two to three years, up from the current 37 per cent, even as it aspires to increase its
share in the domestic tractor market form the current 43 per cent to 50 per cent
2. While the overseas strategy will be driven by efforts to increase revenue in the Americas, Japan
and Eastern Europe, a volume ramp of the recently launched tractor platforms will be key to
meeting the aspiration to control half the domestic market
3. Expanded their operations through strategic acquisitions such as that of Punjab Tractor Ltd
with manufacturing facilities at 7 locations
4. The farm equipment sector is the cash-cow for the tractor-technology conglomerate. It
contributes four out of every ten rupees earned in revenue terms and six out of ten rupees in
profit terms for the parent company
5. M&M’s globalization strategy aimed at de-risking the India business from the cyclical swings in
the domestic market is being driven by the three key regions—Eastern Europe, Japan and the
Americas (includes North America, Brazil and Mexico)

TCS
The operational strategies of TCS encompasses the Global Network Delivery Model (GNDM),
Inorganic growth strategies and integrated full services play (IFSP).
The GNDM Model
The GNDM was brought with an intent to bring in homogenous standards across all centres of TCS, i.e.
one global service standard. It would also help TCS implement the follow the sun model where dependency
on geographically distributed centres would decrease bringing in an opportunity to function seamlessly.
Inorganic growth
TCS aimed at attaining inorganic growth by focusing on different geographies, diverse competencies, and
also aimed at acquiring new capabilities that would lead synergistic growth. This was a cheaper option to
consider because of the availability of the cheaper targets during an economically stressed period.
Integrated full services play
Offering IFSP would enable TCS to capture the entire IT value chain – products, services, consulting,
implementation and support.

HUL
HUL has institutionalized a “Challenge cost” mindset where the target price for consumers drive the
innovation (a key component of Operational Value chain) in the company. It has a five pronged
approach to remain at the cutting edge of the operational excellence being demanded in the industry.
1. Embracing technology and inclusive innovation that meets the needs of consumers across the
socio-economic pyramid.
PGP-18-234 Submission – 4: Operations Strategy Varun Singh

2. Committing to sustainable and responsive growth.

3. Building future ready talent and capabilities.
4. Values-led and purpose-driven leadership.
5. Creating an agile and inclusive work culture.
The approach to developing innovations with consumer price at the starting point is at the heart of the
company’s inclusive innovation strategy.

ITC
1. In the FMCG industry domain, unlike P&G (which is leading in marketing expertise) and HUL
(leading in supply expertise), ITC is leading in product and process expertise.
2. It has efficient production flexibility that is being leveraged in garment manufacturing line
(Lifestyle).
3. It has labor intensive jobs, and therefore have low cost process.
4. The company has a varied product portfolio in terms of size, shape and performance, providing
them an edge to circumvent any operational disruptions.

Hindalco
1. The Aditya Birla group flagship, is planning to enrich its product mix and evaluating
investments in aluminum downstream facilities
2. Has a strong focus on strengthening the balance sheet through deleveraging, allocation of capex
towards growth strategies and generating positive free cash flows.
3. To break away from the past, Hindalco has positioned the metal from its new smelters, Aditya
and Mahan, differently from that produced in its other centers.
4. However within the downstream portfolio, Hindalco has taken a differentiated approach for its
brands from Novelis visa-a-vis the rest of the company.
5. While the Novelis acquisition has given the Indian brand a global footprint, Hindalco is not keen
to impose its imprint on its turf. Hence there has been no move to bring about an identity
makeover or impose a different label on Novelis products.