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FOUNDERS
Type- Public
Industry-
Conglomerate
Founded-
Mumbai, India(1938)
Headquarters-
Mumbai, India
Introduction
Larsen & Toubro (L&T) is a technology, engineering, construction
and manufacturing company. It is one of the largest and most
respected companies in India's private sector
Seven decades of a strong, customer-focused approach and the
continuous quest for world-class quality have enabled it to attain
and sustain leadership in all its major lines of business
L&T has an international presence, with a global spread of offices.
A thrust on international business has seen overseas earnings grow
significantly. It continues to grow its overseas manufacturing
footprint, with facilities in China and the Gulf region
Cont..
customer support.
By 1944,
the Company In December
Prestigious
represented In 1945, L&T 1950, L&T
orders executed
British signed an became a
by the
manufacturers agreement with On 7th Public
Company
of equipment Caterpillar February Company with
during this
used to Tractor 1946, Larsen & a paid-up
period included
manufacture Company, Toubro Private capital of Rs.2
the Amul Dairy
products such USA, for Limited was million. The
at Anand and
as marketing born. sales turnover
Blast Furnaces
hydrogenated earthmoving in that year was
at Rourkela
oils, biscuits, equipment. Rs.10.9
Steel Plant.
soaps and million.
glass.
Cont..
Today, L&T is
The sixties were In 1976, Holck- one of India's
also a decade of Larsen was biggest & best
rapid growth for awarded the known
the company: Magsaysay industrial
S. K. Toubro By 1973 had Award in organisations
UTMAL
retired from become one of recognition of with a
active (set up in 1960), the Top-25 his contribution reputation for
management in Audco India Indian to India's technological
1962. Limited ( 1961), companies. industrial excellence, high
Eutectic development. He quality of
Welding Alloys retired as products &
(1962) and Chairman in services, &
TENGL (1963). 1978. strong customer
orientation.
SECTORAL PRESENCE
BUSINESS STRUCTURE
ACHIEVEMENTS
OF L&T
Built India's first indigenous hydrocracker reactor.
Process Technology
: Cement and Mineral Process, Chemical Engineering, Material Science
and Corrosion Engineering, Mechanical Engineering, Ocean Engineering
and Water Technology.
Basic and Detailed Engineering Services
: Electrical and Instrumentation Engineering, Front-End Engineering and
Design, and specialized SBUs for Oil and Gas Engineering services.
Modular Fabrication
: Through one of Asias largest yards at Hazira
, capable of manufacturingseveral modules simultaneously.
Cont..
Procurement
: An extensive set of suppliers from around the globe, networked through an online
procurement and an e-business platform.
Project Management
: L&T is one of the first companies in the world to implement the Enterprise
Resource Planning (ERP) software SAP R/3 in E&C business. This integrates all
the execution processes for the project and also provides to the project team unique
access to information at all stages - from proposal to project handing over.
Construction
: Through ECC - executing comprehensive construction projects in areas of power,
oil & gas exploration, refinery, fertilizer and petrochemicals, airports, townships,
hotels, public buildings, bridges, transmission lines, water treatment plants, hydro-
electric power stations and irrigation structures in various countries.
A NATIONWIDE NETWORK
Offices in - 19 cities
We have reduced carbon emission to less than 22,000 tonnes since 2008.
TQM CULTURE
TQM culture
TQM and ISO 9000
awareness systems
programmes adopted by
Cross almost all
functional have also
been divisions.
teams
Large regularly extended to
number of operate in the stockiest and
managers area of vendors.
participated design,
TQM in Kaizen. manufacturin
movemen g, marketing,
t was services.
initiated
in L&T in
1993.
EXTERNAL ENVIRONMENT
PEST ANALYSIS
PORTERS 5 FORCES ANALYSIS
INTERNAL ENVIRONMENT
SWOT ANALYSIS
ANALYSIS
Strengths
Weakness
Slowdown in middle east
Private sector housing boom &
Average experience
high demand of commercial building
employee age nearing retirement
L&Ts experience in India
Huge attrition rate
Brand name of Larsen & Toubro
Low employee satisfaction
An experienced employee base
Week Global Reach
Diversified business group
Training itself is a challenge.
Strong financial results.
Lack of new products & services.
Low cost skilled labour availability
3. Buyers Bargaining
4. Industry Rivalry 5. Substitute
Power
The industry rivalry is high. This
The Bargaining power of buyer is There is no perfect substitute to this
instinct of the industry is primarily
low/moderate. Buyers in Engineering industry. It will be effected only
driven by the technical capabilities
& construction sector have less when the country is fully developed
acquired over years of gestation
choice due to limited number of than the company need to look
under the technical collaboration
players. The market forces havent with international players and the
forward towards the emerging
empowered the buyers to a large economies
completion of project on time.
extent.
ANALYSIS
1. Political Factors
L&T had divested its cement business in favour of the Aditya Birla Group
and its ready-mix concrete business in favour of Lafarge SA. The third five-
year plan of the company will be executed from 2010 to 2015.
GROWTH STRATEGY
L&T is concentrating on hi-tech areas, vacating non-remunerative
product lines and focusing on the exports market.
Recently the company signed a joint venture with EADS Defence and
Security, for defence electronics in India..
Risk Management Strategy
Doing business within India remains paramount. Vision is to become
an Indian multinational not just another multinational.
Structure
Strategy
System
Superordinate
Goals
Skills
Style
Staff
MCKINSEYS 7S FRAMEWORK
Style
One of the seven levers which top management can use to bring
about organization Change.
With change of systems & procedures
- style of functioning changes
- Culture of organization changes Staff .
Update knowledge & skills to keep pace with change
Strategy
Includes purpose, mission, objectives, goal, action plans & policies
7S model emphasize - Development easy execution.
Systems
Procedures & methods framed by organization & followed by
operational personnel in the respective functional area
Traditional systems Change in view of advanced technology &
processes developed.
Structure
Relationship between/among various positions and activities
Design of structure - critical task for top mgmt.
Need based structural changes - to cope with specific strategic tasks
without abandoning basic structural divisions throughout the
organizations.
Skills
Acquainted with state of the art technology & improvised methods &
practices.
Strategic Mantras Followed By L&T
Audacious in vision.
Their new emerging verticals include Media & Entertainment and Life Sciences
& Healthcare.
Larsen & Toubro Infotech Ltd. (L&T Infotech), one of the fastest growing IT
/Services companies, is ranked by NASSCOM among the top software &
services exporters from India in 2009.