ORGANISATION EFFECTIVENESS AND

CHANGE
TOPIC-MARUTI SUZUKI
(GROUP EFFECTIVENESS)
SUBMITTED TO Dr. AJAI PRAKASH
SIR
SUBMITTED BY SHIVLI CHHABRA

Maruti Suzuki India Ltd.(maruti
suzuki),commonly referred as Maruti and
formerly Maruti Udyog Ltd.
It is the subsidiary of Japanese automobile and
motorcycle manufacturer Suzuki.
Maruti Suzuki manufactures and sells wide
range of from entry level to hatchback.
The companys headquartered is at Nelson
Mandala road ,New Delhi
Maruti Udyog Ltd was established in February
,1981.
Actual production commenced only in 1983.
Orginally ,74%of the company was owned by
indian government ,and 26% by Suzuki of Japan.
Maruti history begins in 1970.
In June 1971 ,a company called Maruti Limited
was incorporated under the company act.
Maruti Udyog limited was incorporated in the
same year.

In 1982, a license and a joint venture agreement is
signed between Maruti Udyog Ltd. And Suzuki of
Japan.
At first Maruti Suzuki is mainly an importer of
cars.
In 1986,the original maruti 800 is replaced by an all
new model of the 796cc hatchback Suzuki Alto
/Fronte.
Maruti products has been exported to
neighbouring countries already.
By 1988,the capacity of Gurgeon plant is increased
to 100,000 units per annum
Relationship between govt of India , under the United Front
(India) coalition and Suzuki Motor Corporation over a joint
venture was a point of heated debate in the Indian media
until Suzuki Motor Corporation gained the controlled stake.
The success of the joint venture led Suzuki to increase its
equity from 26% to 40% in 1970, & further to 50% in 1992.
In 1987 ,both the partners had entered into agreement for
managing director nomination.
Suzuki did not attend the meeting and felt that
Bhaskarudu(managing director) was a proxy for the govt
and would not let it to increase its stake in the venture.
If Maruti Suzuki would not have been able to indenise gear
boxes then maruti suzuki would have been able to
manufacture all items without technical assistance from
suzuki.
Co-branding was a major issue.
Maruti Suzuki owned its own brand Maruti .
All the models that used SMCs technology and design
was co-branded with the Maruti Suzuki brand.
The transfer authorities were asserting that the Suzuki
brand is likely to be weaker brand in India.
Co-branding with Maruti allows Suzuki to gain market
recognition .
They hold that this process of piggybacking of Maruti
trademark by the Suzuki trademark has resulted in
impairment of Maruti brand value in a big way

Technology related:
R&D facilities and Japanese collaboration.
Suzuki internationally known for small cars.
Launch of world class quality cars like A-STAR
and SPLASH.
Manufacturing related :
designing cars best suited for Indian market.
cost leadership in the market.
Distribution related:
dealers suppliers and other business partners .
local community and society .
environment and regulatory authorities.


RS Kalsi has been appointed as head of domestic
marketing and sales ,Maruti Suzuki.
He led to companys forey into bouyuet of business
including maruti finance and maruti true value.
With this organisational changes Maruti Suzuki will
continue to strengthen its relationship with customers
and partners.
The company has launched various initiative to
improve customer service .
Maruti has increased its operational effeciency by
increasing productivity,cutting costs and launching
new products.
By its quality initiative maruti has reduced its defects
per vehicle significantly.

After their fall in market share due to increasing
competition & its failure to met it.
Company adopted cost reduction strategies.
This would save foreign currency and also stabilize prices
that fluctuates with exchange rates.
Maruti planned to reduce cost , increased productivity
,quality and upgrade its technology.
Joint venture initiative taken by maruti and its team of
supplies had generated over 29% cost reduction over 3 years
for maruti.
With the program of organisational redesign ,rationalization
of cost and enhanced productivity,Maruti bounced back to
competition with 50.8% market share and 40% rise in
profits for the FY02-03.
It has ventured into maruti finance ,maruti
insurance and true value .
This helps them in making customer experience
hassle free and helps building customer
satisfaction.
MARUTI FINANCE- Maruti has tied up with 8
finance companies , it has entered into this &
created revenue stream for maruti.
MARUTI INSURANCE- Maruti has tied up with
National Insurance Company , Bajaj Alliance etc.
TRUE VALUE-It is a initiative to capture used car
market , MULS entry into this helped them to
retain customers.
In 2002, Suzuki motor corporation(SMC) took
over management contol over MUL from the
govt for a consideration of 1000 crore.
Suzukis control meant maruti did not have to
mind the whims and fancies of ministers and
bureaucrates.
Suzuki also built 2- wheeler facility in India for
manufacturing motorcycle and scooters
through a joint venture.

Maruti Suzuki collaboration led to huge industrial
development in India.
Maruti Suzuki combines the superior technology
of Japan and sheer engineering design brilliance of
India.
Their collaboration enables them to achieve no 1 ,
by making higher sales and offering customer care
products.
Maruti Suzuki is reducing the weight of car which
enables the company to achieve the economies of
scale.
Maruti Suzuki stands for value as it stands for
performance.
Maruti Suzuki is expanding its product basket
by offering value(swift,sx4) at different income
level.
Maruti Suzuki India, is working on customers
specific marketing strategy to increase its sales
among the first time buyers.
The company have maximum 47% market
share among first time buyers.
The companys network of sales and services outlets
continues to be its strength.
Manesar plant reopens under full security of employees.
MSIL to track its new alto launch which is priced about 2
lakhs ,Suzuki making MSIL a small car manufacturer hub,
volume growth of 10.8% for FY2012.
Net sale grew by 27.3% to 10,788 cr in 1sr quarter FY13, EPS
estimates to be INR 66.87% and ROE of 12.1% for FY13.
Coming up with new plant and skill development center in
Gujarat and R&D center in Haryana.
Share in diesel vehicle is 38% during first quarter FY13.
Maruti Suzuki has proven that it is always ahead of its
competitors because of continous innovation and
technological upgradation .The company has set a
benchmark of excellance because of its research and
development activities.Considering growing pollution
,the company introduced advanced K series engines in
its vehicles which resulted in reduction of CO,THC and
Nox emissions by almost 50%.As economic
performance is concerned ,Maruti Suzuki s last few
year statistics of domestic sales ,exports,narrates that
still Maruti Suzuki is the leader of automobile industry.
www.jbm-group.com
www.marutisuzuki.com
www.slideshare.net/indra.Kamble/term-
paper-on-marutisuzuki
economicstimes.indiatimes.com
en.wikipedia.org/wiki/maruti-suzuki