THE K.P.E.

S COLLEGE ASSINEMENT ON (SWOT ANALYSIS ON MARUTI SUZUKI)

SUBMITTED TO:Mr. Jagat bhatt SUBMITED BY:Chaudhary Amit Roll.no:-27

ACEDEMIC YEAR:- 2011-2012

SWOT ANALYSIS ON

 SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies.  A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning has been the subject of much research.

y STRENGTHS: characteristics of the business or team that give it an advantage over others in the industry. y WEAKNESSES: are characteristics that place the firm at a disadvantage relative to others. y OPPORTUNITIES: external chances to make greater sales or profits in the environment. y THREATS: external elements in the environment that could cause trouble for the business.

 Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated. The SWOT analysis is often used in academia to highlight and identify strengths, weaknesses, opportunities and threats. It is particularly helpful in identifying areas for development.

 KEY POINTS  SWOT analysis can be used to keep off strategy formation Or in more sophisticated way as a serious strategy tool. You Can also use it to get an understanding of your competitors Which can give you the insight you need to craft a coherent and successful competitive position.  When carrying out the SWOT analysis it should be realistic and rigours. Apply it at the right level and supplement it with the other option- generation tools where appropriate.

STRENGTHS WEAKNESSES Reputation in marketplace Shortage of consultants at operating level rather than partner level Expertise at Unable to deal partner level in with multiHRM disciplinary consultancy assignments because of size or lack of ability

OPPORTUNITIES Well established position with a well defined market niche Identified market for consultancy in areas other than HRM

THREATS Large consultancies operating at a minor level Other small consultancies looking to invade the marketplace

 The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. SWOT analysis groups key pieces of information into two main categories:  Internal factors: The strengths and weaknesses internal to the organization.  External factors: The opportunities and threats presented by the external environment.  The internal factors may be viewed as strengths or weaknesses depending upon their impact on the organizations objectives. What may represent strengths with respect to one objective may be weaknesses for another objective. The factors may include all of the 4Ps; as well as personnel, finance, manufacturing capabilities, and so on. The external factors may include macroeconomic matters, technological change, legislation, and socio-cultural changes, as well as changes in the marketplace or competitive position. The results are often presented in the form of a matrix.

GENERAL INFORMATION

TYPE: Public INDUSTRY: Automotive FOUNDED: 1981 (as Maruti Udyog Limited) HEADQUARTERS: New Delhi, India KEY PEOPLE: Mr. Shinzo Nakanishi, M.D and CEO PRODUCTS: Automobiles REVENUE: US$4.8 billion (2009) EMPLOYEES: 6,903 Parent Suzuki Motor Corporation WEBSITE: MarutiSuzuki.com

HISTORY OF SUZUKI INDIA LTD

 Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is a subsidiary of Suzuki Motor Corporation, Japan. MSIL has been the leader of the Indian car market for over two and a half decades. The company has two manufacturing facilities located at Gurgaon and Manesar, south of New Delhi, India. Both the facilities have a combined capability to produce over a 1.2 million (1,200,000) vehicles annually.  The company plans to expand its manufacturing capacity to 1.75 million by 2013.  The company offers a wide range of cars across different segments. It offers 15 brands and over 150 variants - Maruti 800, people movers, Omni and Eeco, international brands Alto, Alto-K10, A-star, WagonR, Swift, Ritz and Estilo, off-roader Gypsy, SUV Grand Vitara, sedans SX4, Swift DZire and Kizashi. In an environment friendly initiative, in August 2010 Maruti Suzuki introduced factory fitted CNG option on 5 models across vehicle segments. These include Eeco, Alto, Estilo, Wagon R and Sx4.  In fiscal 2009-10 Maruti Suzuki became the only Indian company to manufacture and sell One Million cars in a year.   Maruti Suzuki has employee strength over 8,500 (as at end March 2011)  In 2010-11, the company sold over 1.27 Mnvehicles including 1,38,266units of exports. With this, at the end of March 2011, Maruti Suzuki had a market share of 44.9 per cent of the Indian passenger car market.

Maruti Suzuki's revenue has grown consistently over the years.

(Rs. in Million) YEAR 2005-06 2007-08 2009-10 NET SALES 1,20,034 1,78,603 3,01,198 YEAR 2006-07 2008-09 2010-11 NET SALES 1,45,922 2,03,583 3,61,282

FINANCIAL YEAR 2010-2011

y The company s total income (net excise) for year 2010-2011
Was Rs.375224 million, a growth of 24.6 % over fiscal year 20102011

y The company s net profit during the year stood at Rs.22886

million

KEY HIGHLIGHTS 2010-2011

y Total sales- 1271005 vehicles during 2010-2011, a growth
Of 24.8 % over year 2009-2010 (1018365 units).

y Exported 138266, which include 43% to European countries.

CORPORATE SOCIAL RESPONSIBILITY

y Maruti Suzuki has adopted a CSR policy, which serves as a guiding tool for the management and the employees in steering Maruti Suzuki towards long term sustained growth in harmony along with the interests of the stakeholder. y The role of the CSR department is to professionalize CSR activities in Maruti Suzuki and strengthen the mechanisms involving the activities. Significant efforts have been taken to contribute to society at large, through its corporate activities, especially in the areas of Road Safety and Vocational Training. Maruti Suzuki has set up dedicated teams with requisite expertise to steer the social projects.

CONCLUTION

 It is not simply enough to identify the strengths, weaknesses,

opportunities, and threats of a company. In applying the SWOT analysis it is necessary to minimize or avoid both weaknesses and threats. Weaknesses should be looked at in order to convert them into strengths. Likewise, threats should be converted into opportunities. Lastly, strengths and opportunities should be matched to optimize the potential of a firm. Applying SWOT in this fashion can obtain leverage for a company (Marketing Strategy, 1998).

 As can be seen, SWOT analysis can be extremely beneficial to

those who objectively analyze their company. The marketing manager should have rough outline of potential marketing activities that can be used to take advantage of capabilities and convert weaknesses and threats. However, at this stage, there will likely be many potential directions for the managers to pursue. Due to the limited resources that most firms have, it is difficult to accomplish everything at once. The manager must prioritize all marketing activities and develop specific goals and objectives for the marketing plan (Contemporary Marketing, 1992).