WORKBOOK The workbook is meant to be filled up very seriously after attending the classes regularly, reading up the suggested material, discussions in the group, rendering them into presentable slides, and final presentation to the class are the keys to leaning in this class. There may not be ready answers to the questions here. You are most welcome to bring in learnings from other courses, management models NOT discussed in the class in completing the format. These are not forms to be filled in… but frameworks to be worked at. In completing the formats, give explanations, diagrams, etc. etc. The formats are meant for serious logical, reflective, critical and constructive thinking and these need to be brought out in your completing the tasks. You may use, for instance, models not specially mentioned here…. say, McKinsey’s 7S format, forecasting techniques, fishbone diagram… NO FORM FILLING….Do not be constrained by the forms. Use them as guidelines and use your imagination. 1, INTRODUCTION 1.1, Members of the Group

Sl No. Reg. No. Full Name

1 4NM12MBA51 Kavya G

2 4NM12MBA46 James Dsilva

3 4NM12MBA15 Arpitha

4 4NM12MBA55 Kiran

5 4NM12MBA13 Anup Siddanur

6 4NM12MBA57 Kuldeep Hegde

1.2, Basic Details of Units of Analysis Chosen Industry: Fast Moving Consumer Goods Chosen Enterprise: Wipro consumer care and lightings Chosen Company: Wipro Enterprises 1.3, Levels of Strategy Three levels of strategy (Corporate, Business and Functional) Identify at least one strategic decision made at the corporate, business and functional levels by your chosen corporate enterprise. Where relevant, give details of what the decision was, why, when, where, how etc. Include all relevant details and justify why you classify the decision as strategic.

Decision Why is the decision strategic (First consider the

characteristics of a strategic decision

Corporate:

It is the set of explicit or implicit decision rules that

determines what business a firm will be in and not be in, and

how it will allocate resources among them. The corporate

decision taken by Wipro is demerge of IT sector and non IT

sector of the organization. They have taken the decision to

hive off non IT business into separate firm.

Business:

The operational decisions taken by Wipro are better ways to

segment the customer base, to rethinking the ideal product

mix in a retail store. Because of the demerge of IT and non IT

sector in organization the non IT products like consumer care

products needs development of specific segment so the

marketing leaders are finding wide-ranging uses for their data

to help improve how they market their company’s wares.

Functional:

Business decision is how a firm develops and sustains a

competitive advantage within an industry. Business

Decisions of Wipro organization involves the decisions in

data management strategy and working out which data

matters most to gain more strategic insights from their data,

many hurdles await and a lack of skills, the usual disconnect

between IT and the business, or worries over data quality.

2, IDENTITY OF THE ENTERPRISE/ BUSINESS

2.1, Explicitly Stated Identity of the Enterprise

What are the explicitly stated Mission/ vision/ goals/ objectives etc. etc. of the Corporate/ enterprise. State how the enterprise says it articulates its philosophy (whether as mission/ vision/ goals/ objectives etc.). What are the explicitly stated mission/ vision/ goals/ objectives of the Business? How do you come to your conclusions and justify your statements? VISION “To serve customers with integrity value for money solutions, by applying thought day after day” MISSION “To offer services based on world class infrastructure, industry, expert skills, proven

process-oriented services operations that are backed by principles to ensure the worlds

best way of delivering IT infrastructure management solutions”

2.2, Actual Identity of the Enterprise Wipro ltd has 4 values and from the beginning this company is following these 4 values.

They are

Outstanding teamwork

Challenging spirit

Applying thoughts

Customer satisfaction

Wipro’s goal is to being the leader in area of business, customer and people. And it has also one more goal that is being the 1st choice of among customers and employees.

2.3, Match between official and actual identities of the enterprise

There is the match between official and actual identity of Wipro Company. Wipro wants to

diversify their business. The diversification possible with the help of brand identity. Wipro

already made their name in the market in IT , consulting and outsourcing service. Its

subsidiary, Wipro Enterprises Ltd., offers consumer care, lighting, healthcare, and

infrastructure engineering. The various research and development by the Wipro Company

result for new technology. As a result they improved their brand value and also achieved

profitable growth. As of September 2013, the company has 147,000 employees serving over

900 clients with a presence in 57 countries. Wipro Consumer Care and Lighting has become

a fast growing company in the FMCG segment.

2.4 What are the Businesses within the Chosen Enterprise?

1. Wipro Technologies

2. Wipro Consumer Care & Lighting

3. Wipro GE Medical Systems Ltd

4. Wipro Fluid Power

2.5, Connectedness and Unconnectedness among Businesses Discuss connected/ relatedness/ unconnectedness among the businesses. Draw a connectedness diagram.

The SBU’s of Wipro ltd are not connected. They have diversified their products which are not inter

related. They have taken diversification as their growth strategy.

2.6, Portfolio Analysis

BCG Matrix

BCG Matrix is used to evaluate the strategic positions of the business brand

portfolio and it’s potential by considering the growth rate and relative market

share.

Wipro limited is broadly broken into these key strategic business units: Wipro

technologies, Wipro InfoTech, Wipro consumer care and lightings, and Wipro GE

Medical systems.

Wipro

Technologies

Consumer

care & lighting

GE Medical

Systems

Fluid Power

High Market share Low

High

Low

Wipro InfoTech

It falls under Question mark because they have low market share, as they do not

generate much cash, the result is a large net cash consumption. A question mark

(also problem child) has the potential to gain market share and become a star and

eventually cash cows when the market growth slows.

Wipro Info Tech recorded a revenue of ₹ 700.8 crore, a growth of 76% YoY and

PBIT of ₹ 58.70 crores, a growth of 56% YoY.

Wipro technologies.

Wipro Consumer goods and

lightings

Wipro Info Tech

Wipro GE Medical systems.

Market

Growth Rate

Wipro technologies

Europe has been one of the fastest growing markets for Wipro. For this fiscal

revenues from Wipro’s European operations delivered 48% growth rate and

contributed more than 32% to Wipro’s IT service revenues. Therefore Wipro

technologies is growing at CAGR of 25% and has a highest market share of 38% in

India.so it falls under star Position

Wipro consumer care and lightings (WCCLG).

It falls under Question mark. The FMCG division of Wipro recorded a revenue of

₹ 2114 million, a growth of 36% Y-O-Y and PBIT of ₹ 262 million, a growth of

25 % YoY.

Wipro GE Medical Systems

It falls under cash cows because of relatively low growth of 9% and low market

share.

2.7, Choice of Business for Further Analysis Business Chosen: Consumer Care and Lightings

2.8, Product-Market Positioning

What is the product market positioning followed by the business? Compare with

competitors. Consider concepts like strategic groups, niche markets. Identify the

reasonable basis for forming strategic groups. It may be useful to start with the

mapping of product market space for the whole industry.

Introduction

AC Nielsen estimates that India is amongst the fastest growing geographies for fast moving

consumer goods, with a growth rate of 14.2% for the Moving Annual Total November 2011,

or the twelve month period ending in November 2011, for the non-food segment, the market

they address. According to AC Nielsen, the market is expected to grow at a compounded

annual growth rate between 12% to 15% for the period from 2012-2015. According to AC

Nielsen, household and personal care FMCG market in the other Asian countries in which we

operate including Malaysia, Vietnam and Indonesia, is expected to grow at a CAGR of 8%

for the period from 2012-2015.

Wipro Credentials and Strategy

Consumer Care and Lighting business segment focuses on niche markets in personal care in

specific geographies in Asia, the Middle East and Africa, as well as office solutions in India.

The SBU successfully leverages the brands and distribution strengths to sustain a profitable

presence in the personal care sector, including personal wash, fragrances, hair and skincare,

male toiletries and household lighting and office products. The office solutions include

lighting products, modular switches, modular furniture and security solutions. The Santoor

brand is the third largest in India in the soap category, and the Safi brand is the largest Halal

toiletries brand in Malaysia. The Yardley brand gives a stronger presence in the Middle East

in the luxury segment of personal care. The segment is among the top 15 companies in

personal care in India, and the third largest company in personal care in Malaysia and the

fourth largest company in personal care in Vietnam.

Marketing and sales of personal care products takes place through a network of distribution

channels which include modern retail outlets, hyper arts, supermarts, traditional retailers, van

operators and wholesalers. Sales and marketing of the consumer care products primarily

through the distribution network in India, which has access to over 4,000 distributors and

approximately 1.9 million retail outlets. Sales of lighting products to major industrial and

commercial customers through the direct sales force, from 34 sales offices located throughout

India.

In India, the leveraging of brand recognition happens by successfully incorporating the Wipro

name in the consumer brands. Expansion of marketing efforts with the aid of advertising

campaigns and promotional efforts targeted at specific regions of India .Wipro intends to

introduce acquired personal care product brands to further establish the presence in the

markets for personal care products in India. In other geographies, led by Malaysia, Vietnam,

Indonesia and China, they have direct access to over 230,000 retail outlets.

Performance highlights

(Figures in Rs. million)

Year ended

March 31,

Year

on

year

change

2012 2011 2011-12

Revenue 38,436 36,910 4.1%

Gross profit 4,356 4,067 7.1%

Selling and

marketing expenses (1,395) (1,284) 8.6%

General and

administrative

expenses

(1,174) (1,174) 0%

Operating income 1,787 1,609 11.1%

As a Percentage of

Revenue:

Selling and

marketing expenses 3.6% 3.5% (15) bps

General and

administrativeexpen

ses

3.1% 3.2% 13 bps

Gross margin 11.3% 11.0% 31 bps

Operating margin 4.7% 4.4% 29 bps

Consumer Care and Lighting revenue increased by 22.5%. This increase is attributable to an

increase of approximately 24.1% in revenue from consumer products including Yardley

products sold in Indian markets and an increase of approximately 20% in revenue from

personal care products sold in southeast Asian markets.

The growth in revenues in Indian markets is primarily due to an increase in revenue from

toilet soap products, domestic lighting and institutional business.

The gross profit as a percentage of revenues from the Consumer Care and Lighting segment

decreased by 117 bps. The increase in major input costs has primarily contributed to

reduction in gross margin.

Risk Factors

The competitors in the consumer care and lighting are located primarily in India, and include

multinational and Indian companies. Certain competitors have recently focused on sales

strategies designed to increase sales volumes by lowering prices. Sustained price pressures by

competitors may require WCCL to respond with similar or d ifferent pricing strategies. This

may adversely affect the gross and operating profits in future periods.

A major share of revenue in Consumer care and lighting business comes from top three

brands in India and international business. Any dilution in market share of such brand against

competition may adversely impact the revenue. Further, price volatility in major inputs for

personal care products, could have an adverse impact the margin.