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Name: Nagaraaj Aalla,

ID: 2015HT74520,
Course code: QMZG 611
Course: Strategic Management & Business Policy
Project work: Strategic Plan

Objective of the Project: -


Prepare a strategic plan for your function or organization using Strategic Management model,
Tools and Methodologies studied in this program.
Project Scenario description: -
I would like to present Strategic plan for my Organization (L&T) in context to our program.
Task to be Performed: -
STRATEGIC STATEMENT
L&T Strategies to Target a revenue of 2 Lakh crores by 2021, building on our inherent strength
of engineering excellences professionalism and financial prudence, a New L&T is emerging one
that is innovation drives, agile, asset-light and delivers super value to all stake holders. With a
GDP growth rate 7.4% in 2016-17, India is the fastest growing large economy in the world. The
Governments trusts on infrastructure and its MAKE IN INDIA initiative provide a range of
opportunities for our company. The opening of Defense sector will lead to business
opportunities worth Rs.13 Lakh crores over next 10 years. With the resolution of issues relating
fuel supply and a clear understanding on Nuclear liability issues, the nuclear power sector is
expected to grow significantly in the years ahead. The estimated opportunity for this sector
over the next 10 years is up to 50,000 Crores. India has launched satellites, orbited the Moon
and Mars and is now all set to become one of the worlds preferred commercial satellite launch
service providers. Our Prime Minister has announced an ambitious plan to make 100 cities in
India into Smart Cities. Each of these cities will be endowed with a combination of smart
infrastructure and IT-Led operation. The outlay for a proposal of this nation is expected to be
very large. It is Estimated that by 2022, over 110 million homes will be require to be built in
urban as well as rural areas to house Indias rapidly growing population. And finally, in
infrastructure- Roads, Ports, Airports, Railway corridors there are over thousand projects in
pipeline with an estimated total value of over Rs. 14 Lakh crores. Our company has both
expertise and the track record to make the most of each of these opportunities. Over years we
have set benchmark, only to supers them ourselves. Whether it is the largest, tallest, heaviest,
first, large-our company has made it. And you find references to those, as well as the

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Name: Nagaraaj Aalla,
ID: 2015HT74520,
Course code: QMZG 611
Course: Strategic Management & Business Policy
Project work: Strategic Plan

companys capabilities. We will now focus on how we all building on our existing capabilities to
capitalize on the opportunities before us. As you know our company has always been aligned
with the nations priorities, developing capabilities to meet Indias needs. As the country surges
forward, with a focus on technology-led initiatives, our company is future ready. The theme of
Technology Leadership, It is at the heart of the New L&T. Our Mission is profitable growth
through technology leadership- year after year. Our company has developed and rigorously
implemented a five -year Strategic Planning Process. We are now in the fourth wave of this
program. We would help us achieve our target revenue of 2 Lakh Crores by 2021. The first, is a
requirement to sharpen our business focus. We have identified select growth business is our
companys board portfolio. These includes IT, Technology services, Defense, Smart World and
water management. Our Strategic Plan involves re-allocation of resources-both talent and
capital to business with visible value creation potential. As most of these are also asset-light
business, one of the objective of our strategic plan is the need to extend operational
excellences across the company. A major step in this direction has been the setting up of a
separate Digital group which will ideate and implement solutions across functions. All of you
must have experienced the transformative power of digital technology in your daily lives. Our
group companies- L&T Infotech, L&T Technology Services, will play a key role in this process.
For our technology arm, these enterprise-wide initiatives will act as a ready to market
showcase. Enhancing client confidence in their capabilities. Another focus area is Leadership
Development. Our company has a unique 7 step leadership program designed to build a Robust
pipeline of future leaders. The stage include training by some of the worlds leading business
schools like IIM-A, ROSS, INSEAD and Harvard, for future leaders. Other imperative includes
management portfolio risk and conducting a portfolio Churn, to transform our company into an
asset-light Organization. As an Indian Multi-national, our company is strengthened its
operations in the Gulf, Africa, and South East Asia. We are competing with worlds best in those
markets and ensuring that our products and services are truly globally benchmarked. Our
company has been championing the cause of community and the environment, long before
terms like CSR come into vogue. We have signed technology license agreement for FGD (Flue
Gas De-sulfurization), with Chyoda Japan and SCR (Selective Catalytic Reduction System) with
MHPS Japan, Cost reduction, Digitalization and expanding globally are same of focus points in
our strategy Plan.

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Name: Nagaraaj Aalla,
ID: 2015HT74520,
Course code: QMZG 611
Course: Strategic Management & Business Policy
Project work: Strategic Plan

CORPORATE GOVERNANCE

ENVIRONMENTAL SCANNING
INTERNAL ENVIRONMENT
SWOT ANALYSIS
EXTERNAL ENVIRONMENT
PEST ANALYSIS (PESTLE)
PORTERS 5 FORCE ANALYSIS

SWOT ANALYSIS

STRENGTHS WEAKNESSES

SWOT

OPPORTUNITIES THREATS

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Name: Nagaraaj Aalla,
ID: 2015HT74520,
Course code: QMZG 611
Course: Strategic Management & Business Policy
Project work: Strategic Plan

STRENGTHS: -
We have a strong JVs and Partnership agreement licensing to be the leaders in the tune
key solutions.

Market leadership providing competitive edge. The company leverage its strong brand
name and market leadership position to gain competitive advantage and expand into
international market.
Strong technical expertise reinforces leadership position-L&T has set up an Engineering
and Project Management Centre in Abu Dhabi to undertake oil and gas related project
as well as engineering and consultancies services.
Diversified revenues providing resilience.
Our employees form a part of our strength.
It has offering like Construction, Heavy Equipment, Electrical Equipment, Power
equipments, Ship Building, Defense, Financial Services and IT Sector.
Strong Leadership pipeline through conduct of Multiple Leadership Development
Programs across the levels within the organization.

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Name: Nagaraaj Aalla,
ID: 2015HT74520,
Course code: QMZG 611
Course: Strategic Management & Business Policy
Project work: Strategic Plan

WEAKNESS: -
Difficult in implement immediate companywide changes as it is a Vast Organization.
Limited leverage cross organizational learnings.
Limited Investment in R&D
High attrition rate (better opportunity /pay by competitor.
Increased debt impacting financial flexibility.
Surplus capacity in Power, Forging and Ship building businesses.
OPPORTUNITIES: -
Head start in Digitalization.
Major infrastructure projects coming up by Government. Like Smart Cities.
Renewable energy projects will bring more opportunities now a days.
Global Economic recovery.
Investment in Defense sector and security.

URBAN High end residential projects by cash rich developers.


INFRASTRUCTU Affordable housing projects.
RE
OPPORTUNITIES Government and private sector office buildings.
Health care capacity expansion in India and Middle East.
Brown field Airport & terminal expansion.
Trust on Education facility expansion by Govt.
New manufacturing facilities under MAKE IN INDIA as well as capacity expansion in
light engg. And cement.

Smart Worlds Defense sector optic fiber cable connectivity projects.


Communications
Intra-city telecom connectivity.
Opportunities Smart Cities: Smart infrastructure and e-governance projects.
Security and surveillance solutions for cities, industrial establishments and
infrastructure facilities.

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Name: Nagaraaj Aalla,
ID: 2015HT74520,
Course code: QMZG 611
Course: Strategic Management & Business Policy
Project work: Strategic Plan

Increased roads build-out by NHAI with current focus on EPC projects.


TRANSPORTATION Expressway projects by State Governments.
INFRATSRUCTURE
OPPORTUNITIES
Elevated corridors and ring roads in major cities.
Dedicated fright corridor program.
Track modernization and expansion by Indian Railways.
Highway projects in Middle East.
HEAVY CIVIL Metro Rail projects planned in multiple cities across India.
ENGINEERING Thrust on connectivity to hilly states with Tunnels and boarder roads.
INFRATSRUCTURE
Major road and railway bridges and sea links.
OPPORTUNITIES
Increased spends on Infrastructure facilities for armed forces.
Thrust being given by Govt on increasing Nuclear Power installed base.
Inland water Transport Terminal.
Thrust on water infra due to growing scarcity in India.
WATER AND
EFFLUIENT Water treatment, management and distribution, desalination.
TREATMENT Lift irrigation programs.
INFRATSRUCTURE Waste Water Treatment Plants from Municipalities.
OPPORTUNITIES
Clean Ganga and other river water pollution prevention projects.
Effluent treatment plants in Industrial units/ clusters.
Thrust on Water recycling, conservation, Desalination and availability improvement
in Middle east.
Thrust on Grid Strengthening, Expansion and Efficiency programs with growing
POWER
TRANSMISSION generation capacities and increasing loads.
AND Transmission lines from State, central and Private Transmission utilities.
DISTRIBUTIONS
Inter-regional and HVDC grid connectivity.
OPPORTUNITIES
Feeder separation scheme (DDUGJY), IPDS, and Other rural electrification programs.
Dedicated green energy transmission corridors.
Thrust on Solar Power capacity addition.
T&D expansion in Middle East, Africa, South East Asia.
THREATS: -
Cost pressure. (limited projects/Excessive competition).
Impact of GST.
Rise in global oil prices.
Investment constraints.
Lending capacity of banking system.
Lack of private sector interest in PPP projects.
Challenges in land acquisition likely to affect business.

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Name: Nagaraaj Aalla,
ID: 2015HT74520,
Course code: QMZG 611
Course: Strategic Management & Business Policy
Project work: Strategic Plan

Government funding.
Environmental clearances.
Slow evolution of policy frameworks.
Pace of awards and execution.
Raise in cost of construction may affect margins.

Positioning, Capability, Value Innovation.


Segment: -
Infrastructure:
1) Urban Infra,
2) Smart worlds Communications,
3) Transportation Infra,
4) Heavy Civil infra,
5) Water and Effluent Treatment,
6) Power, Transmission& Distributions.

Based on the business type, based on geography India, Rest of Asia, Africa

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Name: Nagaraaj Aalla,
ID: 2015HT74520,
Course code: QMZG 611
Course: Strategic Management & Business Policy
Project work: Strategic Plan

Target Group: -

Positioning: -
Premium service provider in Infrastructure with Leadership positioning in Technology,
Engineering, Construction, Manufacturing and Project Management in India, Middle East, South
East Asia & Africa.
Technology Company.

PORTERS 5 FORCE ANALYSIS: -


1) THREAT: - Low threat of new entrant due to economics of scale, labor intensity, High
capital requirement, lack of knowledge and experience.
2) SUPPLIERS BARGAINING POWER: - High Bargaining power of suppliers- Suppliers of
construction materials are fragmented and are extremely critical for industries since
most of the construction works is out sourced. Proper supply chain management is a
costly yet critical need.
3) BUYERS BARGAINING POWER: - The Higher bargaining power Especially in Power
having surplus capacities.

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Name: Nagaraaj Aalla,
ID: 2015HT74520,
Course code: QMZG 611
Course: Strategic Management & Business Policy
Project work: Strategic Plan

4) INDUSTRY RIVELRY: - The Industry revelry is high; this instant of the industry is primarily
driven by the technical capabilities acquired over years of generation under the
technical collaboration with international players and the completion of the project on
time.
5) SUBSTITUTE: - Renewable, Power storage and Nuclear Boom.

PESTLE ANALYSIS
POLITICAL FACTORS
ECONOMIC FACTORS
SOCIAL FACTORS
TECHNOLOGICAL FACTORS
LEGAL FACTORS
ENVIROMENTAL FACTORS

POLITICAL FACTORS: -
Current NDA government has complete moderate through majority represented in Lok
Shaba & substitute represented in Rajya Shaba.
Cement price reduced for state infrastructure projects.
FDI Liberalization to Augment industry growth.
REITs (Real Estate Investment Trust) to positive affect real estate business.

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Name: Nagaraaj Aalla,
ID: 2015HT74520,
Course code: QMZG 611
Course: Strategic Management & Business Policy
Project work: Strategic Plan

ECONOMIC FACTORS: -
Demonetization-White economy boost up.
Growth in construction activities stimulating GDP growth.
Expected Low interest rate cycle shall be conductive for investments.
SOCIAL FACTORS: -
Power for all people.
Shifting consumption pattern to fuel industry growth.
Rising urbanization to boost industrial growth.
Green Building in India.
TECHNOLOGICAL FACTORS: -
Digitalization.
FBR (Fast Breeder Reactor) in Nuclear Power Plants.
IGCC (integrated gasification combine cycle technology).
Renewable Power.
Power Storage.
FBC (Fluidized bed combustion) system in coal power plants.
LEGAL FACTORS: -
Ensuring a balance transition to open trade at minimal risk to the Indian economy and
local industry.
Indian Government infrastructure policy aimed at promoting an integrated, phase and
conductive growth of the Indian infrastructure sector.
Confirms the governments intention a harmonizing the regulatory standards with the
rest of the world.
Legal provisions relating to safety measures.
Stable Legal environment enhancement, and for international projects/ Legal
Framework should be established.
ENVIROMENTAL FACTORS: -
Technological solution helps in integrating the supply chain, hence reduce losses and
increase profitability.
With the entry of global companies into Indian market, advanced technologies, area
used in engineering and construction.

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Name: Nagaraaj Aalla,
ID: 2015HT74520,
Course code: QMZG 611
Course: Strategic Management & Business Policy
Project work: Strategic Plan

Infrastructure such as road and bridges affect the many sectors such as automobile
sector etc.
Environmental situation affect the infrastructure sector.
IMPLEMANTATION PLAN, EVOLUTION & CONTROL: -
BACK DROP:
Strategic decisions involve substantial allocation of people, physical assets, or moneys that
either must be redirected from internal sources or secured from outside the firm. They also
commit the firm to action over an extended period. For these reasons, they require
substantial resources, Larsen & Toubro (L & T) was aggressively expanding its operations
overseas, as part of a vision to become a global multinational engineering and technology
company, the company started new offices, mainly sales and marketing divisions, in
countries such as Nigeria and South Africa in African continent, Brazil in Latin America and
Germany in Europe. The was also transforming its West Asia operations as a major hub for
its international business with extensive manufacturing and marketing operations, L&T had
an order book of over Rs. One trillion. About 20 percent of these orders were international,
mainly from the Gulf region. L&T was targeting the Hydrocarbon sector, including the
option of manufacturing oil rigs in India, infrastructure and power sector to boost its order
book. The shipping arm of Larsen and Toubro was also planning to expand its vessel building
capacity. Under infrastructure projects, L&T proposed to create metro and monorail
facilities in Ahmedabad and Gandhinagar. This required a commitment from facet of the
organization, including the capital expenditure of about Rs. 15,000crores. In heavy
competitive service-oriented businesses, achieving and maintaining customer satisfaction
frequently involve a commitment from every facet of the organization.

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Name: Nagaraaj Aalla,
ID: 2015HT74520,
Course code: QMZG 611
Course: Strategic Management & Business Policy
Project work: Strategic Plan

THE FUTURE DEPENDS ON WHAT YOU DO TODAY-MAHATMA GANDHI


BUILDING THE FUTURE-LARSEN & TOUBRO
Launching multiple Satellites in to space.
Building Nuclear Submarines.
Nuclear Power Plant.
Developing Smart Cities.
Creating Business Agility with enhanced Analytics.
The future is closer than we think. using Digital Technologies, we are implementing
futuristic solutions to make quantum improvement across all our business, resulting in
Smart Engineering, Smart Manufacturing, Smart Project Management, Smart
infrastructures.

IMAGINING: -
Our proven global expertize Infotech as well as Technology Services enable us to solve
complex business problems, as the convergence to the physical and Digital world both
internally and the major plans across the globe.
Including a large number fortune 500 companies. Destructive technologies like internet
flings, are challenging the way we live, we are leveraging our rich engineering heritage with
these new technologies to offer business worldwide services that enhances effectiveness
and productivity, by exploiting analytics for innovation, we are transforming the way the
industries operate.
Cities are the weaving heart of the worlds Economy. The speed and scale of expansion
presents a choices Mega Cities turn on an inviting Urban environment.
SMART CITIES: -
A Smart City involves the application of information base systems for better Governances
and services, with expertise and both infrastructure and knew its technologies, L&T has the
edge in implementing Indias Mission to make 100 Smart Cities Resident friendly and
sustainable.

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Name: Nagaraaj Aalla,
ID: 2015HT74520,
Course code: QMZG 611
Course: Strategic Management & Business Policy
Project work: Strategic Plan

POWERING: -
Every day we help light up 100 of villages, help power businesses and industries, we provide
a complete range of solutions for Power Plants, From concept to Commission.
Our Heavy Engineering facilities are among the largest and best equipped in the world, we
fabricate complex large size equipment forge industries and provide critical equipment for
Indias Nuclear Power Plant, we are the only company to build entire Nuclear Power Plant
on its own, Nuclear Fusion has the potential to replace every source of energy.
Larsen and Toubro is collaborating a global project to build the worlds First Fermin Nuclear
Reactor in Southern France. A potential step to words the bundle of energy to power the
entire planet for millions of years.
FUELLING: -
Till such time alternative fuel energy source reaches fuel maturity, Hydrocarbon remains as
the principle source. The worlds energy supply our present span the entire Hydro Value
Chain from exploration to refining to erecting the complete plant. The product drived from
Hydrocarbon, we touch your life every day.
BUILDING: -
In a merit, other way, we are a recovering presence in our life day after day, moving you
through airports built by us, over bridges, Roads, Intersections, that we have constructed to
state that we are to metros that we have built and as you above at your destination on a
ray of properties the way to build by us to a highest standard whether it is the tallest,
largest, largest, we the L&T have built it. We apply technology to manage most precious
resource Water, our ability to build a world class Water infrastructure covers all aspects of
treatment and conservation de-sanitations.
DEFENSING: -
Strength is the prerequisite of peace, it is being a mission with us, to seem your way of life
by helping strengthens the countrys Defense. For intensive investment on research, we
develop a system of system capability enabling us to build complete weapon platform
including Indias First Nuclear Submarine, a long health dream. Indian Navy looks to us for
an entire range of weapon system and the land forces for diverse advance weaponry, Given
the trans for decades proven performance we are well position to be the leaders in Indian
Defense.

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Name: Nagaraaj Aalla,
ID: 2015HT74520,
Course code: QMZG 611
Course: Strategic Management & Business Policy
Project work: Strategic Plan

EXPLORING: -
We have played our part for Indias mission to the moon and its Thrust to orbit Mars, for
decades we have made critical Aerospace components to the countrys space program
through our technology leadership, we now have the capability to build complete launching
system to place satellite into orbits, opening limitless possibilities for the future. Technology
is pushing from every direction, the future doesnt belong to the faith hearted, it belongs to
the resolute, it belongs to those who strives, who seek and do not yield, the future belongs
to the BRAVE.

PREFERANCES:
DEFENSE, SMART CITIES, INFRASTRUCTURE,
SECTORIAL
NUCLEAR POWER PLANTS, DIGITALIZATION,
PREFERANCES
POWER TO ALL PEOPLE & SOCIAL SECURITY.
INDIA, MIDDLE EAST,
COUNTRY PREFERANCES SOUTH EAST ASIA,
AFRICA, ETC.

ASSET PREFERANCES ASSET HEAVY TO ASSET LIGHT

REVENUE HIGH PERFORMANCE BUSINESS

CORE/NON-CORE RATIONALIZE ALLOCATIONS BY INVESTING IN CORE AND


CAPITAL ALLOCATIONS DISINVESTMENT FROM NON-CORE

EMPHISIS ON IMPROVED MARGINS,


OPERATING LEVEL LOW COST OF CAPITAL,
WORKING CAPITAL REDUCTION.

Thank You.
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