MBA Business Strategic Capabilities Project
The project report titled "Mahindra & Mahindra’s Clean Energy Sector: Current Strategy & Future Roadmap Propositions" provides a comprehensive analysis of Mahindra & Mahindra's strategic positioning and future plans in the clean energy sector. Focusing on internal and external environment analysis, the report delves into corporate and business-level strategies, organization structure, and strategy formulation for short, medium, and long-term objectives. The study highlights the importance of restructuring, technological investment, and leveraging opportunities in electric vehicles, ESG, and smart cities. This project demonstrates the strategic capabilities and roadmap for Mahindra & Mahindra to sustain and enhance its role in the renewable energy landscape.
Current Strategy & Future Roadmap Propositions
Executive Summary
This report highlights the Current Strategy & Future Roadmap Propositions for Mahindra & Mahindra in the Clean Energy Sector in short (0 to 1 years), medium (2 to 3 years) and long term (3 to 5 years) future. Mahindra & Mahindra (M&M) internal environment analysis, strategy analysis and organization structure analysis is performed, having Mahindra Susten and Mahindra Solarise as the center of the study. Mahindra Susten's mandate, as a strategic objective, is to develop creative solutions and services utilizing renewable and clean energy resources (Mahindra Susten n.d.). This research offers strategies for pursuing aggressive non-acquisitional growth in the coming years.
Strategic capability frameworks are used for the current evidence-based research to recommend improvements and course corrections. The organization needs to focus its efforts around restructuring all the renewable energy entities as part of standardization and normalization. Investments in technology, agile ways of working, deploying balanced scorecard can help in an effective strategy implementation approach. Electrical vehicles, ESG, smart cities opportunities need to be capitalized. New areas for diversification include Urban Air Mobility and sustainability transportation infrastructure.
This report's Appendix section contains all of the strategic capability frameworks and research details along with the sources and underlying assumptions for each of the models.
Section 1: External Environment Analysis
India's renewable energy (RE) business is expected to be the world's third most attractive renewable energy market by 2021. (IBEF n.d.). India has a renewable energy potential of 1,000 GW or more (IBEF n.d.). At COP26, India's Prime Minister Narendra Modi pledged to achieve net zero emissions by 2070, which is a welcome move in the fight against climate change. Mahindra, Amazon, and Apple have joined the First Movers Coalition, which will drive demand for zero-carbon technology on the sidelines of COP26 (The Hindu 2021). India also intends to switch to 100 percent sustainable energy for public transportation and logistics in the future.
The GDP and economic indices have been declining as a result of the Covid19 Pandemic, which has hampered the completion of many projects. The Government of India's (GOI) Invest in India initiative provides opportunities for investors from all over the world (Invest India n.d.). Similarly, India's Make in India initiative encourages investment, innovation, talent development, intellectual property protection, and the development of world-class industrial infrastructure (IBEF 2018). The technological improvements in the Indian Clean Energy sector deserve special attention, particularly in the Startup environment (Silicon India 2021), where the Renewable Energy landscape in India is dominated by a small number of incumbent businesses, including Suzlon, ReNew and Tata Power.
The industry is also known for its role in addressing climate change and related international accords. New areas of opportunities include Urban Air Mobility and B2C products to make a presence in the blue oceans (Jacinth 2021). As we address development, innovation, and the need for long-term clean energy, we must also consider the industry's financial and regulatory difficulties, as well as significant entry and exit barriers. With the right strategy, planning and timely execution, Mahindra Susten can make a positive impact in the Clean Energy sector in India.
The industry is also well-known for its contributions to climate change and related international agreements. To establish a foothold in the blue oceans, new areas of opportunity include Urban Air Mobility and B2C products. We must examine the industry's financial and regulatory obstacles, as well as major entry and exit hurdles, as we handle development, innovation, and the need for long-term sustainable energy. Mahindra Susten can have a good impact in India's Clean Energy sector with the correct strategy, planning, and timely execution as per Jacinth (2021).
Section 2: Internal Environment Analysis
Internal environment analysis is performed on the internal organization of M&M to identify and assess the strengths and weaknesses. Various company reports, industry reports and secondary analysis sources are used in the model formulation. Below strategic capability frameworks are utilized to analyze the internal environment of the organization. Each of the framework/models analyze a dedicated capability or a strategic factor or a competence of the organization in the clean energy space as per Johnson et al. (2020).
Smallwood Ulrich framework
Dynamic Capabilities framework
Value Chain analysis
VRIO framework
In the Clean Energy EPC domain, Mahindra Susten & Solarise have the essential resources and competencies required to conduct operations as planned. However, because of the Parent-Child relationship, there is less autonomy in decision-making, which slows things down. The operations and middle management staff do not have the required authority Mahindra Susten (2018). The holding firm Mahindra & Mahindra has a long history and a strong brand identity among consumers and workers. They are placed in a vertical hierarchy structure, where power is concentrated among few and spread over many levels till the shop floor because of their organizational structure, the influence Mahindra has over Susten and Solarise, and their shareholding values as seen in the annual report of Mahindra Susten (2018)
The collaboration between all EPC divisions and operations units around the country is strong. Although there are several learning initiatives and training programs in place, the amount spent on training activities is lower than the industry average. Mahindra Susten and Mahindra Solarize executive leadership teams have extensive project delivery experience and is able to share it among the subsidiaries (Mahindra Group 2021).
There is a reasonable level of trust and connectivity with the type of contracts and agreements. The flow down of strategic vision and mission from the top down to the bottom up is modest, as seen by staff updates in the glass door. According to the Annual Reports, the amount spent on innovation and R&D is lower than the industry average (India Infoline 2021). There is information about a PMO group and six sigma procedures, however Agile working methods are not readily apparent as observed by Kumari (2021).
Mahindra & Mahindra has rightly sensed the breakthroughs in Clean Tech. It has taken advantage of some of the capabilities, but there are still some gaps in the reconfiguration process (refer Appendix section 7.2 Dynamic capabilities). Technology Development can be a significant driver for Sustained competitive advantage, whereas Marketing and sales, leadership, increased customer connectivity can provide a temporary competitive advantage (Mahindra & Mahindra 2021a), (refer Appendix section 7.4 VRIO Framework).
The company is certified as a grate place to work based on employee feedback, industry parameters, attrition rate, training and development opportunities provided etc. (Great Place to Work 2019). The position to be maintained year on year to retain as well as attract best in industry talent.
Section 3: Strategy Analysis
3.1 Corporate Level Strategies
Strategic capability frameworks of Ansoff Matrix and the three generic strategies are used to analyze the corporate level strategy of the organization, following approach as mentioned in Johnson et al. (2020). There are products in each of the four quadrants in Ansoff Matrix, where they are categorized based on new and existing markets on the Y-axis and new and existing products on the X-axis (Refer Appendix 7.6 Ansoff Matrix for more details).
The organization currently employs conventional methods of market penetration successfully. There are few products in product development phase as well like the electric vehicle ecosystem and sustainable transportation. Products and services successful in one market like module mounting structure and carports are now being tried and exposed to new markets (Mahindra Susten 2021)
Competitive scope and competitive advantage are the key parameters part of the generic strategies. Cost leadership is being maintained in Solar rooftops, while the recent renewable energy asset management offerings as part of Mahindra Teqo comes under the differentiation. Focus strategies for cost and differentiation also have been employed by Mahindra and Mahindra for its solar water pump and electrical vehicles business (Mahindra Rise 2021a).
3.2 Business Level Strategies
Below strategic capability frameworks of BCG Matrix and Parenting Matrix are used to analyze the business level strategy of the organization, following approach as mentioned in Johnson et al. (2020). The RE products and services of the organization are categorized into four quadrants and observed that electric vehicles, solar water pump and utility scale solar are stars of the company, as their relative market share is high as well as the relative market growth rate is high. (refer Appendix 7.5 BCG Matrix)
Mahindra Susten's Module Mounting Structure has been patented and has been incorporated throughout their commercial projects as well as being sold to the public. Commercial solar, Carports and being an independent power producer are still yet to reach market potential and are part of company initiatives which are yet to realize the market potential. Strategy changes at both business level and corporate level are required to maintain sustainable competitive advantage (PV Magazine 2020).
Mahindra Susten and Mahindra Solarise are subsidiaries to the holding company M&M. As per the fit between business units and critical success factors and parents’ skills, it’s a Value Trap Business. With the huge potential available and the need to increase renewable and sustainable energy sources and products, the current strategies are inadequate and the business unit entities are being underutilized.
Section 4: Organization Structure Analysis
Mahindra Susten, being a stakeholder focused model firm, is influenced significantly by Mahindra & Mahindra, the holding company that owns all of the shares except one, which is held by Mr. Narayan Shankar as seen in the Annual Report of Mahindra & Mahindra (2021a). Mr. Basant Jain, the current CEO of Mahindra Susten is an industry leader with rich experience, along with Mr. Rakesh Singh, the CEO of Mahindra Solarize and Mr. Pramod Kalyanshetti comprise the executive leadership supported by Board of Directors and various Committees which oversee the execution of strategy and control operations. (Mahindra Susten 2021)
Mahindra Susten has a vertical organization structure as compared to the relationship between the parent company and the business unit since the decision-making power is concentrated with M&M. However, within Mahindra Susten, it’s a horizontal structure with the power distributed among the executives, board and the committees. All the renewable energy units and subsidiaries are being restructured under Mahindra Susten or Mahindra Solarise, which is a welcome move as it promotes standardization, focused spending and technical excellence. (Mahindra Susten 2021)
Mahindra Teqo is a cutting-edge renewable energy asset management solution powered by technology which adds a lot of value to operations in house as well as to market customers. We must examine the industry's financial and regulatory obstacles, as well as major entry and exit hurdles, as we handle development, innovation, and the need for long-term sustainable energy. Mahindra Susten can have a good impact in India's Clean Energy sector with the correct strategy, planning, and timely execution. (Mahindra Teqo 2021)
In Feb 2021, Brookfield Asset Management is reported buying 1,200 MW of solar assets from Mahindra Susten's engineering, procurement, and construction division under organization disinvesting as Susten is a non-core portfolio company and to exit the renewable energy business (Balakrishnan 2021). However, as the burden on liabilities are more the apex court intervened, delaying the process.
Section 5: Strategy Formulation
5.1 Short Term (0-1 Years)
India's sustainable energy transformation is considered a hot investment opportunity as reported by PTI (2021). This is a positive trend for any company operating in renewable energy space. Capitalizing the existing opportunities can be effective if Mahindra & Mahindra can restructure all the renewable energy entities into a single entity to have standardization and to focus efforts.
The company reports like the financial statements, annual reports, profit and loss accounts etc available in the public domain are not up to date, especially for Mahindra Susten. This needs some immediate attention, as it portrays an inactive picture of the entire company. Investments in Technology is the need of the hour. Technology can be used to optimize existing processes and setup effective new processes like implementation of Management Information System (MIS) or the Enterprise Resource Planning (ERP).
The organization should embark on a mindset and cultural change to embrace startup ecosystem kind of work environment by using Agile ways of working, Six sigma and Lean best practices in the industry. Disaster Recovery needs to be given equal importance along with new product development. Impact of Covid19 Pandemic has been significant over the last one and half year, where projects haven been delayed, investments got reduced, timelines have been impacted etc. Disaster recovery and risk management measures reduces the impact of such unpredictable events.
Implement Balanced Scorecard method to measure and correct the strategy execution. Having 10% decrease in costs and 10% increase in sales to be the next short-term goal. Similarly, improved use of MIS, ERP to check process improvements, increased user and market research and more impetus to technology leadership to have more new products in the market will help the organization to measure progress. (Refer appendix 7.11 Balanced Scorecard)
5.2 Medium Term (2 to 3 years)
Companies have increased considering ESG investments as part of their strategy planning (Tyagi 2021), providing an opportunity for Mahindra Susten to supply sustainable products and services to a growing market. The country's use of Electric Vehicles (EVs) is increasing, which could raise demand for Mahindra Susten's solar car charging station solution (Mahindra Susten 2020). We also have the Initiative for a "Green City in Every State," which creates a vast market for clean energy products and services (IBEF 2021). Focus on ESG projects and electrical vehicles infrastructure will significantly help M&M in market penetration and new product development.
The upcoming plan of the Government of India in establishing smart cities, need to be capitalized by both Mahindra Susten and Mahindra Solarize as many of the products and services have a ready market here. The organization needs to build a strong Digital Presence through effective digital marketing strategies. This is mandatory for all the B2C products and services and same time improves brand visibility in negotiating B2B transitions. Publishing annual reports regularly is crucial to keep stakeholders informed and aligned. It is also important to have them available in the public domain on company websites and industry portals.
Industry rankings need to be improved like Great place to work, market share indices along with company recognitions. Innovation is a key driver of growth in 21st century. A separate Innovation committee or a department will add lot of value, focus and provide strategic direction to innovation initiatives which can help building new products and optimize existing offerings. Partnerships with the Government of India through Make in India and Invest in India initiatives need to be exploited with already existing public private partnerships and agreements. Cost leadership over next two to three years will help the organization to establish as a prominent player in the clean energy sector.
5.3 Long Term (3 to 5 years)
Another exponentially growing business that is garnering a lot of investment and skill is Urban Air Mobility, which might be a lucrative market to enter. All of the big names, like Google, Ola, Airbus, and Google, have invested in some of the fastest-growing businesses (Gomez 2021). This is an area for M&M to plan for having a first mover advantage in Indian context.
Training and Development is crucial for any organization to be successful in a volatile, uncertain, changing and ambiguous market like the RE market in India. The organization need to set up dedicated training centers and programs from leadership to the shop floor. Knowledge workers need to be provided opportunities for continuing education, certifications to keep them motivated and equipped with right skills. (refer Appendix 7.8 7S Framework)
Product differentiation from B2C focus currently, the organization need to diverse its offering by having products and services built for B2C customers also. There need to be clear product roadmaps for new products which will help to have stakeholders and customers onboarded earlier in the product journey and build collaborative solutions. Sustainable Ecosystems is one area which need to be ventured into by focusing not only on the products but infrastructure like electric vehicle charging stations, auto vehicle traffic controllers, autonomous solutions development etc (PTI 2021).
Tie ups with Academia can help Mahindra Susten to have access to new talent, ideas and can help in building new capabilities. Hackathon events in schools and colleges can help the company with new ideas and prototype solutions which can later be streamlined and optimized by M&M internal R&D teams.
The inherent need for more presence in India, as well as the size of the opportunity it brings, are key motivations for international investor interest in the Indian renewable energy industry. Effectively identifying the change measures, converting into a strategy and based on evidence, defining the vision and mission to steer the organization into action, will define company’s future.
6. Reference List
Balakrishnan, R 2021, ‘Brookfield pips NIIF to buy Mahindra Susten’, The Economic Times, 10 February, viewed 1 December 2021, <https://economictimes.indiatimes.com/markets/stocks/news/brookfield-to-buy-solar-assets-epc-division-of-mahindra-susten/articleshow/80778517.cms>.
Balakrishnan, R & Barman, A 2021, ‘Brookfield’s Rs 6000 crore buyout of Mahindra Susten in trouble’, The Economic Times, 2 June, viewed 2 December 2021, <https://economictimes.indiatimes.com/markets/stocks/news/brookfield-buyout-talks-for-mahindra-unit-face-hurdles/articleshow/83153590.cms>.
Craft 2021a, Mahindra Susten Company Performance Reports, https://craft.co/.
― 2021b, Mahindra Susten competitors, https://craft.co/.
Glassdoor 2021, Working-at-Mahindra-Susten, https://www.glassdoor.co.in.
Great Place to Work 2019, Certified Organizations - Great Place to Work - Certified Organizations, Great Place to Work, viewed 2 December 2021, <https://www.greatplacetowork.in/get-certified-old/certified-organizations/#large>.
IEA 2021, India Energy Outlook 2021 – Analysis, IEA.
India Brand Equity Foundation 2021, Renewable Energy Industry in India: Overview, Market Size & Growth | IBEF, Ibef.org.
India Infoline 2021, M&M incorporates new subsidiary Mahindra Solarize to undertake Distributed Energy biz; Stock gains 1%, www.indiainfoline.com, viewed 3 December 2021, <https://www.indiainfoline.com/article/news-top-story/m-m-incorporates-new-subsidiary-mahindra-solarize-to-undertake-distributed-energy-biz-stock-gains-1-121040700263_1.html>.
Jacinth, P 2021, Mahindra & Mahindra Opportunities and Threats, Deakin Library.
Johnson, G, Whittington, R, Scholes, K, Angwin, D & Regner, P 2020, Exploring Strategy : Text and Cases, 12th edn, Pearson, Harlow, England.
Kumar. J, CR & Majid, MA 2020, ‘Renewable Energy for Sustainable Development in India: Current status, Future prospects, challenges, employment, and Investment Opportunities’, Energy, Sustainability and Society, vol. 10, no. 1.
Kumari, S 2021, Mercom’s India Solar Market Leaderboard 1H 2021: Market Shares and Profiles, Mercom India, viewed 2 December 2021, <https://mercomindia.com/product/mercom-india-solar-market-leaderboard-1h-2021-market-shares-profiles/>.
Linkedin 2021, Mahindra Susten Company Page, https://www.linkedin.com/, viewed 2 December 2021, <https://www.linkedin.com/company/mahindra-susten/posts>.
Mahindra & Mahindra 2021a, Integrated Annual Report for Financial Year 2020 -21, https://www.mahindra.com/about-mahindra-company, June.
― 2021b, Mahindra-Annual-Report-FY-2021, https://www.mahindra.com/.
― 2021c, Rebalancing the Balanced Scorecard, www.mahindra.com, viewed 4 December 2021, <https://www.mahindra.com/news-room/knowledge-centre/opinions/rebalancing-the-balanced-scorecard>.
Mahindra Group 2021, Mahindra - Many Companies One Purpose - Group PPT, https://www.mahindra.com/.
Mahindra partners 2021, Mahindra Partners Archive News - Vc funding in india, News Insights, Mahindra Partners News, www.mahindrapartners.com, viewed 2 December 2021, <https://www.mahindrapartners.com/archive>.
Mahindra Rise 2021a, Energy - Powering the Cities of Future | Mahindra Rise, www.mahindra.com.
― 2021b, Mahindra Sustainability Report, https://www.mahindra.com/.
― 2021c, What is the Mahindra-TERI CoE and how does it embody our focus on sustainability beyond just business?, Mahindra Echo, viewed 1 December 2021, <https://echo.mahindra.com/2021/august/issue2/what-is-the-mahindra-teri-coe-and-how-does-it-embody-our-focus-on-sustainability-beyond-just-business>.
Mahindra Solarize 2021, Products - Residential Solar Rooftop in India, Mahindra Solarize, viewed 2 December 2021, <https://www.mahindrasolarize.com/products/residential-solar-rooftop.php>.
Mahindra Susten 2017, Reports & Policy, Mahindra Susten, viewed 2 December 2021, <https://www.mahindrasusten.com/sustainability/reports-policy/>.
― 2021, Opportunities and challenges in the Solar Industry, Mahindra Susten.
Mahindra Teqo 2021, About Us | Solar Energy in India - Mahindra Teqo, Mahindra Teqo.
Mahindra Susten 2018, Annual Report 2017-18, https://www.mahindrasusten.com/.
Make In India 2021, Renewable Energy | Make In India, www.makeinindia.com, viewed 4 December 2021, <https://www.makeinindia.com/sector/renewable-energy#:~:text=The%20capacity%20of%20renewable%20sources>.
Medhi, T 2020, These 5 cleantech startups are making India self-reliant and sustainable, YourStory.com, viewed 1 December 2021, <https://yourstory.com/2020/09/cleantech-startups-making-india-self-reliant/amp>.
Mukul, J 2015, ‘Mahindra Susten aiming for fastest billion in the group’, Business Standard India, 17 February, viewed 3 December 2021, <https://www.business-standard.com/article/companies/mahindra-susten-aiming-for-fastest-billion-in-the-group-115021601349_1.html>.
Pant, A 2018, ‘Sustainability Report’, Toxicology International, vol. 18, no. 1, p. 1.
PTI 2021, ‘CAFE norms: Not a right time to implement next stage of emission norms, says Maruti Suzuki chairman RC Bhargava’, The Economic Times, 13 August.
PV Magazine 2020, Mahindra Mahindra forms a new solar subsidiary, pv magazine India, viewed 2 December 2021, <https://www.pv-magazine-india.com/2020/09/01/mahindra-mahindra-forms-a-new-solar-subsidiary/>.
Shukla, H 2021, Mahindra Susten, Vikram Solar, BELECTRIC – Top Solar EPC Companies in 1H 2021, Mercom India, viewed 2 December 2021, <https://mercomindia.com/mahindra-susten-top-solar-epc-companies/>.
Silicon India 2021, 10 Best Clean Tech Startups - 2021, startup.siliconindia.com.
Tech Mahindra 2021, Renewable Insights, https://files.techmahindra.com/, viewed 2 December 2021, <https://files.techmahindra.com/static/img/pdf/renewable-insights.pdf>.
The Hindu 2021, Tech News, Latest Gadgets, Smartphones, Internet Technology, The Hindu.
Planning for an MBA or any Other Program to upgrade yourself? Check out Upgrad, you can use my referral code PAUL367.Just drop a hello on my mail programstrategyhq@gmail.com so that I will know if you have enrolled and for any inputs you might need throughout the process. Also check out my detailed blog about Deakin MBA. Wish you best!
7. Appendix
7.1 Smallwood Ulrich Framework
Factor | Question | Rating 5 High, 1 Low | Explanation | Source |
Talent | Do our employees have the competencies and the commitment required to deliver the business strategy in question? | 3 | Mahindra Susten & Solarise have the required competencies in Clean Energy EPC domain. | (Mahindra & Mahindra 2021) |
Speed | Can we move quickly to make important things happen fast? | 2 | Because of the Parent and Child structure, there is less autonomy in decision making slowing the processes | (Kumar. J & Majid 2020) |
Shared mindset & coherent brand identity | Do we have a culture or identity that reflects what we stand for and how we work? Is it shared by both customers & employees? | 4 | Mahindra & Mahindra the holding company has a rich heritage and brand identity shared among customers & employees | (Great Place to Work 2019) |
Accountability | Does high-performance matter to the extent that we can ensure the execution of strategy? | 5 | The organization structure, the control Mahindra group has on Susten and Solarise along with shareholding structure, they are highly accountable. | (Mahindra Group 2021) |
Collaboration | How well do we collaborate to gain both efficiency and leverage? | 4 | Collaboration between all the EPC divisions and operation units across the country is well maintained. | (Mahindra partners 2021) |
Learning | Are we good at generating new ideas with impact and generalizing those ideas across boundaries? | 3 | There are various learning initiatives and training programs, but the spend on Training activities is less than industry average. | (Shukla 2021) |
Leadership | Do we have a leadership brand that directs managers on which results to deliver and how to deliver them? | 4 | The executive leadership team of Mahindra Susten, Mahindra Solarise bring a lot of experience in delivering projects. | (Mahindra Susten 2017) |
Customer connectivity | Do we form enduring relationships of trust with targeted customers? | 3 | There are few but large customers in the Clean tech space. With the type of contracts and agreements there is a reasonable trust and connectivity. | (Mahindra Group 2021) |
Strategic unity | Do our employees share an intellectual, behavioral, and procedural agenda for our strategy? | 3 | The flow down on Strategic vision& mission from the leadership till the floor level is moderate which can be inferred by the employee updates in glass door. | (Glassdoor 2021) |
Innovation | How well do we innovate in the product, strategy, channel, service, and administration? | 2 | The spend is innovation, R&D is less as seen in the Annual reports and less that the industry average. | (Balakrishnan 2021) |
Efficiency | Do we reduce costs by closely managing processes, people, and projects? | 3 | There is information on a PMO group, six sigma practices, but Agile ways of working is not clearly visible. | (Mahindra Susten 2017) |
7.2 Dynamic Capabilities
Sensing | Seizing | Reconfiguring | Conclusion |
The impact of climate change is around us. Clean Energy and Clean Technology are solutions to mitigate the impact. There are also regulations in place under ESG for companies to incorporate. | Yes, the initiatives of for sustainability under Susten, Solarise, Teqo etc. companies is to capitalize on the Clean Tech opportunities. First mover’s coalition on sidelines of COP 26 | Mahindra & Mahindra reorganized Mahindra Solar & EPC under Mahindra Susten created a separate Entity. | Mahindra & Mahindra has rightly sensed the Clean Tech advancements. It has partially seized the opportunities and still has some gaps in reconfiguring. |
(Mahindra & Mahindra 2021a), | (The Hindu 2021), | (Mukul 2015), |
|
(Mahindra Susten 2021) | (Mahindra Susten 2021) | (India Infoline 2021) |
7.3 Value Chain Analysis
Activities Chain
| Description | Source | |
Primary | Inbound logistics | Identified suppliers, economics of scale, supplier’s agreement, Just in time delivery, effective monitoring and transportation. | (Balakrishnan 2021) |
Operations | Production plants, Total quality management systems, use of technology like ERP and MIS systems, etc. | (Kumar. J & Majid 2020) | |
Outbound logistics | Information systems for tracking and ordering, records of finished inventory and closed orders. | (Mahindra Susten 2017) | |
Marketing and sales | the 4P strategy of product, price, place and promotion is applied across products and services | (Mahindra Rise 2021a) | |
Services | After sales services is enhanced by use of technology, customer centers, dedicated partner managers etc. | (Mahindra partners 2021) | |
Secondary | Firm Infrastructure | M&M owns infrastructure in India and abroad, it also has joint ventures with multiple companies and also public private partnerships. | (Kumar. J & Majid 2020) |
Human Resource Management | It recruits trained and skilled people experienced in Renewable and Clean Tech energies. | (Great Place to Work 2019) | |
Technology Development | Mahindra Susten has patented products and solutions to its advantage. The spend on R&D is considerable. | (Mahindra Rise 2021a) | |
Procurement | Raw material procurement from pre-approved suppliers list thought negotiated contracts. | (Mahindra partners 2021) |
7.4 VRIO Framework
Resource or Capability | Is the resource or capability | Competitive implications | |||
Valuable? | Rare? | Inimitable | Supported by Org | ||
Firm Infrastructure,Procurement,Strategic unity, Shared mindset & coherent brand identity | No | - | - | No | Competitive Disadvantage |
Services,Human Resource Management, Inbound logistics, Outbound logistics | Yes | No | - | No | Competitive Parity |
Marketing and sales,Leadership,Customer connectivity | Yes | Yes | No | No | Temporary competitive advantage |
Technology Development | Yes | Yes | Yes | Yes | Sustained competitive advantage |
Note: The resources and capabilities are drawn from Smallwood Ulrich framework, Dynamic Capabilities and Value Chain analysis models in Appendix sections 7.1, 7.2 and 7.3.
7.5 BCG Matrix
7.6 Ansoff Matrix
7.7 Generic Strategies
Note: The Generic Strategies are drawn from Smallwood Ulrich framework, Dynamic Capabilities and Value Chain analysis models in Appendix sections 7.1, 7.2 and 7.3.
7.8 7 S framework
Factors | Type | Description | Source |
Structure | Core | M&M Parent company with RE specific companies Susten, Solarize, Teqo etc. It is more centralized with limited autonomy to Business Units. | (Mahindra Group 2021) |
Systems | Core | Organizational systems and committees are in place for Finance, HR, Operations, etc. Monitoring and evaluation controls are also in place. | (Mahindra Susten 2021) |
Strategy | Core | Clearly defined, Strategic guidance from M&M, dynamic capabilities amidst changing consumer demands. | (Mahindra & Mahindra 2021a) |
Style | Additional | Leadership and management style of M&M is collaborative. But there are instances where we see competitiveness that cooperation | (Mahindra Group 2021) |
Staff | Additional | Mahindra Susten has 500+ permanent staff, there are also contractors in various roles commissioned on a case to case basis. | (Mahindra Susten 2021) |
Skills | Additional | Employee skills are being developed as per the task requirements. There are various mandatory and optional training courses available. | (Mahindra Susten 2021) |
Shared values | Additional | Creativity, honesty, transparency, accountability, trust, quality, heritage, are the center of Mahindra & Mahindra legacy. | (Mahindra & Mahindra 2021a) |
7.9 Strategy Clock
7.10 Change kaleidoscope
Note: The change kaleidoscope is drawn from Smallwood Ulrich framework, Dynamic Capabilities and Value Chain analysis models in Appendix sections 7.1, 7.2 and 7.3.
7.11 Balance Scorecard
Note: The resources and capabilities are drawn from Smallwood Ulrich framework, Dynamic Capabilities and Value Chain analysis models in Appendix sections 7.1, 7.2 and 7.3.
7.12 Narrative Wheel
Note: The Narrative wheel is drawn from Change Kaleidoscope, Balanced scorecard and strategy clock models in Appendix sections 7.9, 7.10 and 7.11.
Planning for an MBA or any Other Program to upgrade yourself? Check out Upgrad, you can use my referral code PAUL367. Just drop a hello on my mail programstrategyhq@gmail.com so that I will know if you have enrolled and for any inputs you might need throughout the process. Also check out my detailed blog about Deakin MBA. Wish you best!
Other Projects In This Series:
