CRITICAL ANALYSIS OF ORGANIZATION

ON

Submitted to:

Submitted by:

DR.TAMAL DUTTA

SAYAN KUNDU

CHOWDHURY

ROLL NO:15045

CALCUTTA BUSINESS

PGDM(2015-17)

SCHOOL

CONTENTS

ABOUT THE COMPANY

MISSION & VISSION
MAJOR COMPETITORS
MARKET SHARE OF MARUTI SUZUKI
PORTERS FIVE FORCES MODEL
CORE COMPETENCE
BCG MATRIX
SWOT ANALYSIS
PROFIT AND LOSS RATIO
NET SALES AND PAT
BALANCE SHEET
IS MARUTI SUZUKI BUILT TO LAST?
CONCLUSION

ABOUT THE COMPANY

Started in 1982,in Gurgaon,Harayana.

Annual Production in 1982 was 40,000 cars.
Started with Maruti Suzuki 800 model.
Today, Maruti Suzuki alone makes 1.5 million Maruti
Suzuki family cars every year. Thats one car every 12
seconds
We built our story with a belief in small cars for a big
future
The company is commited to make Indian roads safer.

MISSION STATEMENT
We have chosen a road and that drives us extra
miles to achieve every endeavour. Here is what
we at Maruti Suzuki believe in:
Customer Obsession
Fast, Flexible & First Mover
Innovation & Creativity
Networking & Partnership
Openness & Learning

VISSION STATEMENT
The Leader in automobile industry creating
customer delight and shareholders wealth; A
pride of India

MAJOR COMPETITORS:

Honda
Hyundai
Tata Motors
Mahindra
Ford
Chrevolet

MARKET SHARE OF MARUTI SUZUKI

PORTERS FIVE FORCES MODEL

Supplier Power: LOW
Highly fragmented.
Engagement with local suppliers
The entry of many new small scale manufacturers.
Buyer Power: HIGH
Brand diversity and Brand availability
Brand specification
Taste and preference of consumers

Continued..
Threat of Substitutes: HIGH, And increasing
Threat from substitutes is quite high.
Economic two wheelers
Bicycles and Battery two wheelers.
Intensity of Rivalry: HIGH
Competitive market and rivalry.
Innovation n technology of Hyundai, Honda, Tata Motors,
and Mahindra.
Threats of New Entrants: LOW
Moderate barrier in penetrating the market.
High capital investment
Thus Maruti Suzuki is not susceptible to threats from the new
entrants to the industry.

CORE COMPETENCE
Small cars
Fuel efficiency

BCG MATRIX:

Swift, Swift
Dzire

SX4,Ecco

Alto, Waganor

Maruti Omni, Maruti

800

SWOT ANALYSIS
STRENGTH
47.68% market share.
Good promotional strategy.
Increasing net sales
WEAKNESSES:
Low interior quality.
Government intervention.
Attractive foreign brands

Continued..
OPPORTUNITIES:
LPG version of Wagonor
R&D on electric cars.
Marutis Cervo 600 has a huge potential
THREATS
Heavy competition from other competitors and international
brands.
Increase in fuel price, Decrease in car prices, policies and increase
in taxes will affect margin for dealer as well as customer.
Improving public transport.

PROFIT AND LOSS RATIO

Mar15

Mar14

Mar13

Mar12

Operating Profit Margin(%)

Mar11

13.43

11.66

9.70

7.06

9.93

8.35

6.76

5.33

3.77

7.07

8.49
12.16
12.16
7.42

6.89
10.93
10.93
6.36

5.43
9.57
9.57
5.48

3.86
7.61
7.61
4.59

7.16
8.89
8.89
6.24

7.30

6.25

5.38

4.49

6.16

Return On Capital Employed(%)

21.24

16.91

15.92

13.53

22.32

Return On Net Worth(%)

15.65

13.26

12.87

10.76

16.50

Adjusted Return on Net Worth(%)

15.65

13.26

12.87

10.76

16.50

Return on Assets Excluding Revaluations

784.70

694.45

615.03

525.68

479.99

Return on Assets Including Revaluations

784.70

694.45

615.03

525.68

479.99

21.27

17.88

16.63

14.49

22.37

Profit Before Interest And Tax Margin(%)

Gross Profit Margin(%)
Cash Profit Margin(%)
Adjusted Cash Margin(%)
Net Profit Margin(%)
Adjusted Net Profit Margin(%)

Return on Long Term Funds(%)

NET SALES AND PAT

BALANCE SHEET

IS MARUTI SUZUKI BUILT TO LAST?

Yes It is built to last as it follows the 7 timeless
principles of Great companies
Best of the Best.
Be Clock Builders, Not Time-Tellers.
More than Profits
Preserve the Core/Stimulate Progress
Big Hairy Audacious Goals
Cult-like Cultures
Try a Lot of Stuff and Keep What Works
Maruti Suzuki also believes that BEING A GREAT
COMPANY IS A NEVER ENDING PROCESS and
has a great VISION (stated earlier).

CONCLUSION:

In this study I came to know that there are more than five
different automobile companies manufacturing different types
of consumer utility vehicles. As the time is changing, the
demands and preferences are also changing very rapidly, so if
the companies wants to survive in this competitive market ,
they have to produce the goods and services as per the needs
of customers to delight them.The Maruti Suzuki is currently the
No.3 four-wheeler company in India which produces wide
variety of products with different models, aesthetics etc, by
which it has captured a large market share in four-wheeler
market. Although the sale of Maruti Suzuki fell during the year
2011-2014,but due to its excellent strategy and built to last
techniques it bounced back during the financial year 2014-15.
Now there are other companies like Hyundai, Ford etc, which
are giving keen competition to Maruti Suzuki, continuous
innovation and research is required to survive the competition.

THANK
YOU