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 cIn 1981, through an Act of Parliament,cm

  was established in Feb,
to meet the growing demand of a personal mode of transport caused by the inefficient public
transport system. The main objectives are ± modernizing the Indian automobile industry,
producing fuel efficient vehicles to conserve scarce resources and producing indigenous
utility cars for the growing needs of the Indian population. A license and a Joint Venture
agreement were signed with the Suzuki Motor Company of Japan in Oct 1983, by which
Suzuki acquired 26% of the equity and agreed to provide the latest technology as well as
Japanese management practices. The main reason for success was- discipline for individuals
and the organization, constant efforts to increase the productivity of labor and capital, steady
improvements in quality and reduction in costs, customer orientation, long-term objectives
and policies with the confidence to realize the goals

The global passenger car industry has been facing the problem of excess capacity for quite
some time now. For the year 2002, the global capacity in the automotive industry was 75
million where as the production 74%. This resulted in price competition, affecting margins
and forcing fundamental changes in the industry. The pressure on sales and margins is driving
players to emerging markets in pursuit of better growth opportunities and/or access to low-
cost manufacturing bases.

The concept of selling in the passenger car industry is changing from original sales towards
lifecycle value generation, encompassing financing, repairs & maintenance, cleaning,
provision of accessories, and so on. Carmakers are increasingly outsourcing component
production, and focusing on product design, brand management and consumer care, in
contrast to the traditional emphasis on manufacturing and engineering.

Vehicle manufacturers are moving into completely new materials and technologies²partly
guided by environmental legislation²in striving to come up with radically different products.
Some of these new technologies involve parts that can be bolted on to an existing vehicle with
relatively few implications for the rest of the vehicle. Others are much more fundamental, and
are likely to have a profound impact throughout the supply chain.

The target age group for the car had now shifted from 30-35 years to 25-30 years. The
repositioning followed the face-lifts the car has been getting from time to time in the form of
engine up gradation, new power steering, automatic transmission, etc, to keep the excitement
around it alive in the highly competitive small car market. The repositioning also comes ahead
of the possible launch of a new design Santro, and the super B-segment car µGetz¶, sometime
in 2003.

This was given a fresh new positioning ² from a Xc

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denoting a fresh new attitude and a µchanging your life¶ positioning. As the average age of a
car owner has declined from around 30-35 three years ago to 25-30, primarily because of
changing lifestyles, cheap and easily available finance, etc. the company thought that instead
of promoting the Santro as a family car, it should be promoted as a car that can change the life
of a young person since many of the buyers were young buyers.


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 cThe cell phone industry is passing through the stage of maturity stage. The strategies
which the companies will use to cope up the competitive and customer challenge are as
follows:c

1.c It is done through the mergers and the acquisitions of the companies.
2.c Credible brand ambassadors should be brought in for the company promotion.
3.c It is also done through by providing them good offers with the night calls and week
end calls where the calls are less.
4.c They can go for unlimited calls for a particular number.
5.c Companies should go for the extensive R &D which they will provide with the latest
technology.
6.c Companies should provide good advertisements, inspirational and emotional ads which
will tend the customers to buy which promotions the company.
7.c Companies should act as sponsorers for the games and the events where they can get
good advertisements.
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 cThe following are some of the objectives of strategic and financial objectivec

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{c Develop and implement a strategic plan that supports the organization's mission, vision
and values
{c Create organizational and business unit plans
{c Identify and evaluate new business opportunities
{c Provide training and education related to planning
{c Perform market assessments and forecasts
{c Reconcile the plan with capital and operational budgets, as well as with human resource
and facility planning
{c Monitor plan implementation and measure results

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{c Measure current performance

{c Compare the organization's position against past organizational data and local, regional
and national benchmarks
{c Make financial projections and outline the organization's financial requirements
{c Integrate the financial process with the strategic planning process

Traditional financial reporting system provides an indication of how a firm has performed in
the past, but offers a little information about how it may perform in the future. For example, a
firm might reduce the level of customer service in order to boost current earnings, but then
future earnings might be negatively impacted due to reduced customer satisfaction.

To deal with this problem Robert Kaplan and David Norton developed the balance score card
a performance measurement system that considers not only financial measures, but also
customers, business process and learning measures. The balance score card translates the
organization strategy into four perspective with a balance between internal and external
measures, between objective and subjective measures and between performance results and
the drivers of the future results.