Management of Global Manufacturing
Globalization of Maruti Suzuki India Limited
Table of Contents
Maruti – Company Profile
Background of the Indian Automobile Industry
The Issues at Maruti
Analysis of the Issues
Process Flow Analysis
Porter’s 5 Forces analysis
Proposed Strategies and Reccommendations
Strategies to maintain Market Leadership
Defensive Warfare Strategy
Modular Manufacturing System
Reccomendations to evolve out of the current issues
Labour issues – Bring in Industrial Democracy
Global Manufacturing locality
Reduce dependency on Entry-level Models
Maruti – Company Profile
Maruti Suzuki India Limited is a subsidiary company of Japanese automaker Suzuki Motor Corporation. It has been the leader of Indian car market for over two decades. Its manufacturing facilities are located at Gurgaon and Manesar with an installed capacity of 350000 units per annum and 100000 units per annum respectively. Both its plants Manesar and Gurgaon, account for half of Suzuki’s worldwide output and Maruti Suzuki owns a 50% share of the Indian Car Market (2). Suzuki Motor Corporation, the parent company, is a leader in mini and compact cars for three decades. Suzuki’s technical superiority lies in its ability to pack power and performance into a compact, lightweight engine that is clean and fuel efficient. Maruti Suzuki offers 12 models, Maruti 800, Omni, Alto, Versa, Gypsy, A Star, Wagon R, Zen Estilo, Swift, Swift Dzire, SX4, and Grand Vitara(2). It was the first company in India to mass-produce and sell more than a million cars. It is largely credited for having brought in an automobile revolution to India. But recently, India’s Automobile Giant faces decrease in sales by 14.5% so far and expects sales volumes to be 11% lower in the financial year that ends in March 2012. Suzuki’s share in Indian market is expected to drop to as low as 24% by 2013.(1) Company Mission (2)
* A leader in the Indian Automobile Industry
* Creating Customers Delight and Shareholders Wealth
* A Pride of India
Maruti Ownership (2)
Organization Structure (2)
Maruti Suzuki has a multi-tier management structure, comprising a Board of Directors at the top, followed by five business vertical heads reporting to the Managing Director. The business verticals of the company are Marketing & Sales, Engineering, Production, Administration and Supply Chain. Industry Analysis
The Automobile Industry has so far undergone significant changes since Henry Ford first introduced the assembly line technique for the mass production of cars. Production concepts, processes and the associated technologies have changed dramatically since the first cars rolled out. Today, the process of car manufacturing is fully automated. Carmakers concentrate mainly on a few specific stages (like car assembly) unlike olden days when every stage was manually scrutinized. Current Scenario
The global car industry has been facing the problem of excess capacity for quite some time now. In the year 2002, the global capacity in the automobile industry was 75 million units in a year against production of only 56 million units (excess capacity estimated at 25%). Efforts to shore up capacity utilization have prompted severe price competition, thus affecting margins and forcing fundamental changes in the industry. The pressure on sales and margins is driving players to emerging markets in pursuit of better growth opportunities and access to low cost manufacturing bases. Background of the Indian Automobile...
References: 1. CNBC TV 18, 2012. Business News. [Online] Available at: http://www.moneycontrol.com/news/business/maruti-sees-11-sales-fallfy12_660566.html [Accessed on 10 February 2012].
2. Maruti Corporate website, 2012. [Online] Available at: http://www.marutisuzuki.com/maruti-cars-home.aspx [Accessed on 10 February 2012].
3. The Economic Times, 2012. Maruti labour unrest spoils Suzuki Motor Corp 's 11-year track record. [Online] Available at: http://articles.economictimes.indiatimes.com/2012-02-03/news/31021283_1_manesar-maruti-suzuki-india-mayank-pareek [Accessed on 10 February 2012].
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