Presentation2 - VisualBee

7/31/2019 Presentation2 - VisualBee

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GRP. NO. 4

1


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STRATEGIC MANAGEMENT


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SR. NO. NAME ROLL NO. ATTENDANCE

1 BHASKAR C. 10 B 709

2 DOMINIC G. 10B718

3 RANISH J. 10B723

4 HARSHAL K. 10B728

5 UMANG S. 10B746

6 RADHIKA K 10B726

GROUP NO 4
http://en.wikipedia.org/wiki/File:Amul_Plant_at_Anand.jpg


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Amul (Anand Milk Union Limited), formed in 1946, is adairy cooperative movement in India.

It is managed by Gujarat Co-operative Milk MarketingFederation Ltd. (GCMMF).

AMUL is based in Anand, Gujarat has been a sterlingexample of a co-operative organization's success in thelong term.Amul has spurred the White Revolution of India. It is alsothe world's biggest vegetarian cheese brand.

History of Amul
http://en.wikipedia.org/wiki/File:Amul_Plant_at_Anand.jpghttp://en.wikipedia.org/wiki/File:Amul_Plant_at_Anand.jpg


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To build mutual trust with consumers, governmental

authorities and business partners.

Conservation of natural resources and minimization of

waste.

To establish the benchmark for good business practice.

Employing new technologies and processing by

committing to resources, both human and financial.

Measuring the cost and benefits to business of its

activities.

OBJECTIVES


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AMUL aim is to meet the various needs of the

consumer and reach out to a much larger

network of people both on a national as well asinternational scale.

VISION


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GCMMF: Gujarat Cooperative Milk Marketing Federation

GCMMF is India's largest food products marketingorganization.

It is a state level apex body of milk cooperatives inGujarat which aims to provide remunerative returns tothe farmers and also serve the interest of consumers byproviding quality products which are good value formoney.

CRISIL, India's leading Ratings, Research, Risk andPolicy Advisory company, has assigned its highestratings of "AAA/Stable/P1+".

GCMMFOver View


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Members: 13 district cooperative milk producers'Union

No. of Producer Members: 2.79 million

No. of Village Societies: 13,328

Total Milk handling capacity: 11.22 million litres per day

Milk collection (Total - 2008-09): 3.05 billion litres

Milk collection (Daily Average 2008-09): 8.4 million litres

Milk Drying Capacity: 626 Mts. per day

Cattle feed manufacturing Capacity: 3500 Mts. per day

Facts


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RAW MILK

DriedSkimmed Milk

Powder

Packaged Milk

Ice creamBeverages

Condensed

GheeButterCream

pasteurization

Amul - Business Model


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Er

AMUL


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-


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BOSTON CONSULTING GROUP (BCG) MATRIXis developed by BRUCEHENDERSONof theBOSTON CONSULTING GROUP IN THE EARLY 1970s.

According to this technique, businesses or products are classified as low or high

performers depending upon their market growth rate and relative market share.

What Is BCG Matrix?


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It is aportfolio planning modelwhich is based on the

observation that a companys business units can be classified in

to four categories:

Stars Question marks

Cash cows

Dogs

It is based on the combination of market growth and market

share relative to thenext best competitor.

THE BCG GROWTH-SHARE

MATRIX


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Stars are leaders in business.

They also require heavy investment, to maintain its

large market share.It leads to large amount of cash consumption and

cash generation.

Attempts should be made to hold the market share

otherwise the star will become a CASH COW.

STARS

High growth, High market share


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Low growth , High market share

They are foundation of the company and often

the stars of yesterday.

They generate more cash than required.They extract the profits by investing as little

cash as possible

They are located in an industry that is mature,not growing or declining.

CASH COWS


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Dogs are the cash traps.

Dogs do not have potential to bring in much cash.

Number of dogs in the company should be

minimized.

Business is situated at a declining stage.

DOGS

Low growth, Low market share


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Most businesses start of as question marks.

They will absorb great amounts of cash if the

market share remains unchanged, (low).Why question marks?

Question marks have potential to become star and

eventually cash cow but can also become a dog.

Investments should be high for question marks.

QUESTION MARKS

High growth , Low market share


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High

Low

HIGH LOWMARKET SHARE

BUSINESS

GROWTHRATE

BCG MATRIX


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So basically Amul Butter falls into the category of cash

cow.

Amul Butter and Amul Milk are the foundation of the

company .

They generate more cash than required.

They extract the profits by investing as little cash as

possible.They are located in an industry that is mature, not

growing or declining.


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GE MATRIX


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The nine cells of the GE matrix are grouped on the

basis of low to high industry attractiveness and weak

to strong business strength.

Three zones of three cells each are made denoting

different combinations represented by green, yellow

and red colours.

Based on the green zone, the signal is go ahead togrow and build, indicating expansion strategies.

Business in the green zone attract major-investment.

GE MATRIX


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For the yellow zone, the signal is wait and seeindicating hold and maintain type of strategies

aimed at stability and consolidation.

For the red zone, the signals is stop, indicating the

retrenchment strategies of divestment and

liquidation, or the re-building approach for

adopting turnaround strategies.


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Size of the

market

15% 4 0.6

Growth rate ofsales

10% 5 0.5

Intensity of

competition

15% 6 0.9

Probability of

technological

obsolence

15% 7 1.05

Social image 15% 8 1.2

Profitability 30% 5 1.5

100% 5.75

ac or


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ac or

Plant capacity

and market

share

15% 6 0.9

Growth rate 10% 5 0.5

Location and

distribution

channels

10% 7 0.7

Management

Competence

20% 8 1.6

Labour-

Mgt.Relations

20% 7 1.4

Technical

strength

15% 6 0.9

Corporate

image

10% 7 0.7

100% 7.4


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G E MATRIX


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. Try to cement its position as a leader over MotherDairy

. Cash generation is already in excess so should go

for selective investment

. Invest for Growth

AMUL CAN DO

THE

FOLLOWING


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SWOT Analysis


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STRENGHTS


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Largest food brand in India Providing Best quality

World's Largest Pouched Milk Brand Annual turnover of US $1504 million Highly Diverse Product Mix

Robust Distribution Network

Strengths


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Risks of highly complex supply chainsystem. Strong dependency on weakinfrastructure.

Alliance with third parties who do notbelong to the organized sector. It has been listed in the stock market. Loss of employees who actually

started amul by retirement.Eg. Chairman Kurian Verghese

Weaknesses..


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Penetrate international

markets

Diversify product portfolio toenter new product categories

and expand existingcategories like processed foods,chocolates etc

Opportunities.!


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Competitors - Nutralite, Mother Dairy,Nestle and Britannia.

Still competition from Mutli Nationals inbutter

Growing price of milk and milk products

Ban on export of milk powder

Threats!


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GrowthMatrixModel

MarketDevelopment

Market

Penetration

ProductDevelopment

Diversification

Ansoffs Growth Matrix Model


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Increase in market customers .

Persuading to increase their usage

Cost reduction benefits to customers.Introduction of AMUL KOOL in cans.

Reduction in price.

Market Penetration


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Health Conscious

Kids Women

Youth Calorie Conscious


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Kids

I. Amul Kool

II. Chocolate Milk

III.Nutramul Energy Drink

IV. Amul Kool

V. Millk Shake


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Womens

Amul Calci


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Youth

I. UtterlyDeliciousPizza

II. Amul EmmentalCheese

III.Amul Cheese

Spreads


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Health Conscious

I.Nutramul

II.Amul Shakti Health

Food Drink


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Calorie Conscious

I.Amul Lite

II.Sagar SkimmedMilk Powder

III.Amul Lite Slimand Trim Milk


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Milk

Ice-cream Manufacturers

Restaurant/Food Chains

Coffee Shop Chains

Temples

Amul Milk


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Amul is available in different forms and sizes

100 g Amul slabs

200g Amul slabsAmul cubes

Diversification of Packaging


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AMUL is well known for its innovative hoardings. Find below afew:

Advertisements


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Introduction of our existing products into new market

segments.

Eg . Lassi

Increase in geographical expansion in national or

international markets.

Market Development


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This strategy suggests the company to continue operating in

the same market but with newer products in addition to

current products.

Eg. Cheese spread and slice , butter slabs and cubes.

Product Development


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It is used to indicate development for growth away from the

present market and products..

Uptil now amul is dealing only with dairy product but could

diversify in the near future with malls cafes. Etc etc.

Diversification


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THANK YOU

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Presentation2 - VisualBee