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Strategic ManagementLarsen and Toubro -Vivek Pandya12131052

About Larsen & Toubro Limited (L&T) is a technology, engineering, construction and manufacturing company. It is one of the largest and most respected companies in India's private sectorSeven 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 businessL&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

The company's businesses are supported by a wide marketing and distribution network, and have established a reputation for strong customer support. L&T believes that progress must be achieved in harmony with the environment. A commitment to community welfare and environmental protection are an integral part of the corporate vision.

HistoryL&T was founded in Bombay (Mumbai) in 1938 by two Danish engineers, Henning Holck-Larsen and Soren Kristian Toubro. Both of them were strongly committed to developing India's engineering capabilities to meet the demands of industry.1938-1950: Started with trading &making dairy equipment, fabrication services, war-time ship repair.Entered construction business Entered into switchgear business 1960-1980:Emerges as one of the largest & best erection construction

Commenced Manufacturing earth-moving equipment.Entered into the cement business in early 1980s1990-2005:Technology majors for engineering in power and hydrocarbon sectors Mid 90s: Entered into IT & Financial ServicesEmerges as Indias largest integrated E&C company.2006-2009: JVs with MHI for super critical power plant equipment.

Foray into Railways sectorInitiated capacity expansionExpanded Developmental projects business. Step towards power generation

VisionExcellence and professionalismCustomer delight through service.Entrepreneurial leadership and creation of an organization that is on the path of continuously learning by fostering teamwork, trust, and care.Community service and environmental protection.

Core CompetenciesToday the core competence of L&T lies in its ability to synthesize, integrate and harmonize its diverse world-class engineering, manufacturing, procurement, construction and fabrication skills around turnkey projects (in core economic sectors) and people.

Business LeadershipL&T holds a leadership position in India in most of the areas in which it operates. The first company to introduce hydraulic excavators in the country, it still maintains its leadership status.It continues to be a leader in the manufacture of Z-Line petrol pumps and its cement is considered to be of high quality.L&T has pioneered the manufacture and supply of critical nuclear reactors and space vehicles hardware in the country and so on.

Decision-makingOnly through empowerment and decentralized decision making can a highly diversified company like L&T be managed. Only in major decisions involving capacity augmentation, business divestment, diversification, and so on does the CEO personally involve himself.

The Culture of TQMEmployees have realized that everybody in every department is a supplier to somebody in the organization if not directly to an outside customer.Employees are being trained in multi-skills, including quality transactions and market engineering, besides product engineering.

Human Resource Management

Human Resource ManagementWith people being regarded as the 'prime movers', a strong HRD culture pervades the organizations personnel policies, and HRD systems are designed to sustain motivation, encourage learning, and achieve higher levels of quality and productivity through job involvement.

Financial AuditThe financial results of L&T for the year 20012-13 are too encouraging as far as profits are concerned. The company has reported profits of Rs. 5,849 lakhs against the previous years profit of Rs. 2530 lakhs thereby achieving a marvelous growtL&T presently has a shareholder base of nearly 1 million and employee strength of over 24,000. As a company, this multi-dimensional engineering giant is actually the nucleus of a group of companies involved in building complexes, worksites, offices, and service outlets at different locations all over India and abroad. Over the years, L&T has acquired a commendable reputation for capabilities for executing engineering related projects.

BCG MATRIXHIGHLOWSTARSQUESTION MARKSSwitch gear motorsL&T Mutual fundPower projectsBPO EntryElectrical and electronic productsMetro projectIT & Engineering servicesCASH COWSDOGSFinanceFertilizersAerospaceCementShipbuildingInsurance

RELATIVE MARKET SHAREMAREKT GROWTH RATE

TYPES OF STRATEGIESINTEGRATION STRATEGIES:- Backward integrationA company exhibitsbackward vertical integrationwhen it controlssubsidiariesthat produce some of the inputs used in the production of its products. For example, an automobile company may own atirecompany, aglasscompany, and a metal company. Control of these three subsidiaries is intended to create a stable supply of inputs and ensure a consistent quality in their final product.

INTENSIVE STRATEGIES:- Market developmentIntroducingpresentproducts or services intonewgeographicarea.Their Expansion Strategy.

DIVERSIFICATION STRATEGIES:- Conglomerate diversification.Conglomeratediversification occurs when a company stretches out its business into an area which is dissimilar to itscore business. This often occurs due to a merger or buyout of another company, or it can occur if the company simply wants to develop different products that aren't related to the ones they already produce. In most cases, companies can benefit from conglomerate diversification because of increased profit potential and expanded business reach. On the other hand, a merged company can suffer if management is not adept with the new products or if the new company gets stretched too thin.Example : L & T Solar

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