GLOBAL BUSINESS STRATEGY

GROUP 4

PRERNA AGARWAL ANSHUL ANAND PRERNA MUNDHRA PREETI GOEL VINIT SHAH VASUNDHARA KEDIA NIKHIL KEDIA PRERNA BAJAJ JASLEEN OBEROI

Has been in a severe recession caused by massive financial crisis During 2009, GDP projected to contract to 1.3% compared to a growth of 3.2% in 2008 GDP growth rate for advanced economies are negative China, India, Middle East, few African Countries were doing good

Average annual growth rate of 8.9% in 20032008 Real GDP dropped to 7.1% from 9% Manufacturing Sector declined by 1.7% Indias economy was expected to grow at 5.7% in 2009-10 GDP growth was projected at 9% during the 11th five year plan period.

Predicted sustainable growth in 2nd hemisphere market Market in Brazil and China where relatively stable Russian market was very unstable Fall in demand in Indian market Indian Government announced various packages to pull demand

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Indian CV industry has to face two major challenges Competing with global original equipment manufacturer in Indian market enhancing global presence Decline of Heavy CV by37.5% in 2008 Ashok Leyland decline in medium and heavy CV by 1.8% in 2008-09 Ashok Leyland decline by 8.7% in heavy duty busses Still retained its number 1 position in this segment

Global Economy has been in massive financial crisis and acute loss of confidence Was predicted that BRIC country will do well Brazil and China where stable Russia was unstable Indian market has many challenges as global players are entering into the market

Regulatory risk company addresses these risks through advance planning and allocation of physical and human resources. Technology risk this includes broadening the scope of R&D related to vehicles aggregates using advanced developmental techniques. It also requires filling up gaps in the current portfolio , utilizing low cost advantages.

Environmental risk the company is fully equipped to meet the environmental legislation prescribed by govt. for CVs and taking advance action in anticipation of future legislations.

Operational risk the company foresees several operational issues related to supply chain and labor practices. Company would also take steps to improve anticipation of market movements in commodity prices.

Political risk these risks are mitigated by taking ECGC cover wherever required and delivering vehicles against confirmed letters of credit.
Economic risk capacity expansion plans have resulted in excess capacity in short term

Financial risk the company has revised its working capital policy in order to minimize financial risk. Initiatives on interest rates have been taken. Company has also taken currency related policy to mitigate foreign exchange risk. Physical risk company has insurance and breakdown coverage to protect its electronic equipments from damages.