Preview

Aditya Birla Case notes

Satisfactory Essays
Open Document
Open Document
613 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Aditya Birla Case notes
Birla #1:The Unknown Global Indian Conglomerate
Q) After a decade of reform, had the Birla group done enough to outpace its rivals , or was there another step it had to take to be “Birla #1”?
Ans: Once Kumar Mangalam Birla took over the Birla group in 1995 after the untimely death of his father, he ushered in an era of reforms and mandated the company be among the top three players in the world or at least in the region for any particular investment. The renewed focus of the group was in making investments in India, acquiring companies outside India fuelling growth. One of his notable acqusitions was Novelis to make the high-risk aluminum business less vulnerable to price fluctuations on the London Metal Exchange. (Novelis was acquired by Hindalco).
Mangalam Birla focused on strengthening and consolidating similar businesses together and investing in growth business sectors from the cash generated from the value businesses. His strategy paid off and from being a conglomerate with just US$1.5 billion in revenues in 1995 it had grown to a business with revenues of approximately US$40 billion in year 2012.Though the group has come a long way it is still at number three amongst the Indian Conglomerates(Number 1 being Tata with revenues of US$100 billion as of 2012 and RIL with revenues of US$74 billion).
In certain businesses the group is number one like VSF and cement whereas in certain other sectors like retail it needs to work towards establishing itself amongst the top three. The level of competition has increased both at home and abroad and the Birla group needs to rethink their strategy to be the number one. The Birla Financial services can play a major role with insurance company and an asset management fund.
As a conglomerate it should be able to reap the benefits of distributing its costs across similar businesses and achieve cost leadership to gain a competitive advantage over its rivals.
The group is looking at investment opportunities in Africa,

You May Also Find These Documents Helpful

  • Satisfactory Essays

    2. How does John’s outlook about receiving help affect his ability to get his needs met?…

    • 493 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    R V. Shankar Case Summary

    • 433 Words
    • 2 Pages

    Facts: The accused was driving his car without the required laminated taillights when officers pulled him over late October 2004. The police asked Shankar for his licence, registration, and insurance. The accused handed over a licence in the name of Jason Singh, the insurance information handwritten on an informal yellow sticky note, and a photocopy of the vehicle registration. When inquired about the spelling of name, Shankar misspelled Singh as ‘Sing’ and gave the wrong unit number for the home address. Based on these wrong answers, officers arrested Shankar on the basis of misleading them; officers physically removed Shankar from the vehicle and searched him. The officers discovered bulletproof vests on Shankar’s person, Shankar justified these on the basis of self defence and protection. When searching the vehicle police found numerous weapons including two guns, a hunting knife, and ammunition. Shankar did not testify in court, and was charged and convicted of two counts of possession of loaded, prohibited firearms and public mischief. Shankar appealed his conviction to the Ontario Court of…

    • 433 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    * to differentiate the business’s products from its competitors rather than using a cost leadership strategy.…

    • 3959 Words
    • 16 Pages
    Good Essays
  • Good Essays

    When pursuing a cost-leadership strategy, the focus of competition is on cost parity, while offering…

    • 16463 Words
    • 79 Pages
    Good Essays
  • Satisfactory Essays

    Chapterone10 Week 4

    • 884 Words
    • 4 Pages

    fits the company's internal and external situations, builds sustainable competitive advantage, and improves company performance.…

    • 884 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Blue

    • 343 Words
    • 2 Pages

    19. The text discusses three approaches to combining overall cost leadership and differentiation competitive advantages.…

    • 343 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    The story of IBM was always considered to be the greatest turnaround stories of all times but wait, have you heard how an Indian MNC Tata has turned it around for itself through its acquisition and revival of the global luxury brand , Jaguar-Land Rover(JLR).…

    • 1019 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    BILT is a leading paper company in India and a part of Avantha Group, a global corporation with revenues in excess of US $ 4bn. In 2012, BILT completed 10 years (2002 – 2012) of its structured set of activities, projects and programmes as part of its formal Corporate Social Responsibility (CSR) initiative. Bilt published its first Sustainability Report with specific focus on the Bhigwan manufacturing unit, in the year 2004-05 on nonfinancial performance. Report disclosed that a total of Rs. 52.15 lakhs were invested in the non-core business expenses where infrastructure and education were given top priority and accounted for 87 per cent of the total investment.…

    • 1721 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Birla1

    • 2280 Words
    • 7 Pages

    Grasim was founded in 1947 as a textile manufacturer. It had expanded into VSF, cement, sponge iron and chemicals. Grasim should look to focus more on the businesses which are its cash-cow rather than focusing on everything. From the case we see that Grasim has a market share of 20% in cement market and 22.5% in apparel market. While 11% in others. So Birla Group can actually opt out of these markets so as to focus more on cement and VSF. This will also decrease the pressure on the management and will help them unlock conglomerate discount.…

    • 2280 Words
    • 7 Pages
    Good Essays
  • Powerful Essays

    indigo airlines

    • 1394 Words
    • 6 Pages

    Birla's steadfastness in growing the business is reflected in the fact that when he took over the reins 18 years ago, the group's cement capacity was a mere 3.5 MT, way below ACC and Ambuja Cements' 11.5 MT. In the interim, the Birla group companies more than caught up with ACC and Ambuja's capacity. The period also saw Birla growing his group's revenue to over $40 billion from $2 billion.…

    • 1394 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Kamala Nehru Case

    • 2256 Words
    • 10 Pages

    * Several of the doctors were very renowned and have won awards at the national level.…

    • 2256 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Kirloskar Analysis

    • 767 Words
    • 4 Pages

    The Kirloskar Group is an Indian conglomerate with sales exceeding $4.917 billion. The Kirloskar Group today exports to over 70 countries, especially within India and over most of Africa, Southeast Asia and Europe. The flagship & holding company, Kirloskar Brothers Ltd. established in 1888, is India's largest maker of pumps and valves and also undertakes construction projects through its subsidiary Aban Construction. Laxmanrao Kirloskar established the group, his son S. L. Kirloskar played a major role in its rapid growth. He created an empire that enjoyed one of the highest growth rates in Indian history, a staggering 32,401% growth of assets from 1950–1991…

    • 767 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Tata-Jlr Turnaround

    • 735 Words
    • 3 Pages

    The story of IBM was always considered to be the greatest turnaround stories of all times but wait, have you heard how an Indian MNC Tata has turned it around for itself through its acquisition and revival of the global luxury brand , Jaguar-Land Rover(JLR).…

    • 735 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Charan Singh Case

    • 8918 Words
    • 36 Pages

    This appeal under Section 23 of the Consumer Protection Act, 1986 is directed against an order of the National Consumer Disputes Redressal Commission, New Delhi (hereinafter the "National Consumer Forum") dated 9th August, 1999 dismissing a complaint filed by the appellant, without expressing any opinion on the merits of the case, but granting liberty to the appellant to "make a realistic claim" and move the State Commission or the District Forum, as the case may be in accordance with law. The National Consumer Forum 1…

    • 8918 Words
    • 36 Pages
    Powerful Essays
  • Good Essays

    Talent Management Activities

    • 13685 Words
    • 55 Pages

    Recently words like attrition, retention and job switch is back with a bang as the Indian economy is booming. Indian job market is expected to grow in line with economic growth and double at Rs 2000 crore within 5 years (with 20 percent growth per annum). Retaining the star performers of the company is need of the day now. Aditya Birla Group’s foray into the Retail sector began in 2006 with the acquisition of Trinethra, the South Indian based chain of stores. May 2007 saw Aditya Birla Retail launching its own brand of stores ‘MORE’. The stores are in 2 formats: Supermarkets and Hypermarkets. As on Dec 2011, 891 Supermarkets and 11 Hypermarkets are operational across the country.…

    • 13685 Words
    • 55 Pages
    Good Essays