1. Table: A: MACRO ENVIORNMENTAL ANALYSIS
EST UK BRAZIL CHINA INDIA
POLITICAL democratic
Strong Federal Republic(R36) Communist country Largest democracy
setup(R33) Judicial system is More pragmatic Stable govt & ruling
Stable system of dysfunctional perspective On political nd
2 term (R38)
governance Violent Crime (R35) and Socioeconomic Low import duty (R32)
Strong opposition Rampant Corruption (R35) problems (R37) Environmental Law (R3)
& forecast of hung Unstable government Reduced the rule of FDI Inflows (R1, 18)
parliament in 2010(R34) Ideology in economic policy
ECONOMICAL Economy
Developed Tax burden high (R40) Low cost labour High Inflation
Economic RecessionI (R54) Inflation growth 4.9% Inflation growth (R5, 23, T4)
Budget Deficit £200bn GDP real growth 4.9% negative 0.7% (T4) Tax Rates Low (R32)
(R39) Lending rate high (T4) High Tax rates (R37) GDP Growth high
Tax rates high Unemployment growth GDP growth 10.3% (R5, 17, T4)
Inflation growth 2.2% Reasonable 4.4% negative 3.5% Lending Rate 12.2%
GDP growth Lending rate 3.5% (T4) Unemployment growth
negative 3.7% (T4) High Unemployment mild 4.1%
Low lending rate0.6% growth 49.5% Currency positive from
High Unemployment stable and increased
growth 37.3% Credit rating-Moody (R22)
SOCIAL
High standard of living High Urban population Many different dialects High Population 1.15bn
Literacy rates high size 85.4% (R49) Std. Chinese Language Old age 9.6%age
Relatively high Disposable income growth for written and English Low urban population
dependency ratio For male 7% and for for speaking 29.8% (T4)
High old age people Female 4.9% (T4) Literacy rates over 90% Consumers awareness
High urban population Old Age people 6.7% High Population 1.3bn increased for spending
89.6% (T4) Increasing rates of non Low urban population (R13, 19, 20,24)
Disposable income attendance and dropouts 46.4% (T4) Developing country and
negative growth for both in school pose a serious Low old age population 46% increase in total
Male- 2.7% challenge towards the 4.8% plan allocation in
Female-4.6% (R48) accomplishment of social Consumers tastes have infrastructure, 16%
Consumers taste towards and economic goals (R31) increased and believes increase in Education
low premium products (R55) Total Population 0.19bn in spending (R56) and 75% Increase in
Total Population low Consumers are choosing urban development
i.e. 0.06bn selected products housing (R32)
TECHNOLOGICscientific
Renowned Low penetration rate in Roads are not well built Significant growth in
AL Expertise (R31) Telecommunication in the and road congestion Telecommunication Ind
Effective enforcement of Hilly & Amazon regions(R40) is commonly seen in In 2008-09 (R15)
IP laws Mobile market continues China (R31) Increasing broadband
Lack of skilled personnel to post double-digit (R49) Govt is building on connectivity for growth
Regulatory control over growth railways and improvement of knowledge based
indigenous innovation (R31) can be seen by 2010.(R37) Society
Innovative strategies ((R9)
able: B: INDUSTRY LIFE CYCLE(R31, R55)

2. ble: 6 PORTERS FIVE FORCES MODEL ((R41,42 and R58)
hreat of Entry Internal Rivalry
Economies of Scale important i.Lot of competitors in the market.
Substantial amount of capital investment ii.High Degree of differentiation & diversification.
. High Marketing expenditure iii. High fixed cost
.Imposed govt regulation iv. High endorsement of brand
High level of technological access
roduct Substitute Buyer power
High Product complements. i. Strong independence and significant bargain power
Cheap & Beneficial alternative ii. Low switching cost.
.Low switching cost iii. Brand loyalty reduces buyer power.
upplier Power
Monopolized cosmetic industry reduces supplier power.
Backward integration of industry.
. Few relative chemical suppliers
. Competitive market to get biggest piece of share.
ble: 7 MODE OF ENTRY DECISIONS
Decision Variables (R43) Entry Advantage (R44,45) DisadvantageR44,45)
Mode
i. Product Oriented Join i. Better Market Feedback i. Reduce control.
Opportunities vent ii. Experience in International ii. Involve greater risk
ii. Market Growth ure Marketing iii. Unprofessional partner.
Government Support iii. Minimize Resources iv. Associating with wrong
iii. Geographical Position iv. Low financial risk people
iv. Risk
vi. Flexibility of
International Business
policy
Acq i. Skilled Management and i. Involve more capital
uisit Labour ii. Exposure to political
ion ii. Contract with local market risk
and government iii. Greater managerial
iii. Removing a potential complexity.
competitor
Table: BENCHMARKING WITH COMPETITORS(T6)(R25,26,27)

3. RATIO GCPL DABUR INDIA MARICO
2008 2009 2008 2009 2008 2009
Total Revenues (Cr) 1102.6 1393 2396 2834 1914 2400
Revenue Growth (%) 26.33 18.28 25.39
PAT 159.2 173.3 333 391 169 189
Gross Profit 19.3 14.7 16.9 16.4 12.7 12.4
Margin(%)
Net Profit Margin(%) 14.4 12.4 13.9 13.8 8.9 7.9
ROE (%) 704.42 674.31 385.41 452.02 277.5 310.3
EPS 7.1 6.7 3.9 4.5 2.8 3.1
ROCE(%) 55 23 47.6 38.8 40.3 37.4
Debt Equity Ratio 0.1 0.5 0.1 0.1 0.2 0.3
Dividend Per Share 4 4 1.5 1.75 0.7 0.6
Number of 1450 4200 2585
Employees
Table: 8 THE SWOT ANALYSIS (R25, 26, 27, 46, 53)
SWOT GCPL DABUR INDIA MARICO LTD

4. a- Strong Balance sheet with huge cash & comfortable a- Strong online presence a- Good understanding of
debt equity ratio ahead of its competitors Indian consumers in hair
b- Differentiate product offerings b- Leadership in aurvedic oil segment
5 modern & integrated plants with ISO 9002 and 14001 products b- Large distribution
quality stds c- Deals with rural and network all over India
c- Strong presence in rural markets (R52) urban customers c- Rural Market reach
STREN
d- Established brands & leadership
e- Widespread sales & distribution network & supply
chain
GTH
WEAK a- Low advertisement a- Products services are low a- Small range of products
NESSE b- Lack of continuous training & education quality b- Very weak financial
S c- Incompatible organisational structure and isolated b- Old & outdated technologies performance
individuals & Dept. hold company back & limits (T6) & Low market share
success c- Lack of management
c- A limited customer base commitment and improper
d- Weak employees planning
performance appraisal
OPPOR a- Increasing penetration in smaller towns and rural a- Alliance & takeover a- Strategy to capture youth
TUNITI areas strategies to maximise in mid 20 in increasing the
ES b- Target of increasing distribution channels profits, revenues, customer mkt set up
significantly by 10-18% base and market share b- Shifting from urban to
c- Increase brands by more advertisements b- Increasing product quality rural area to increase
d- Value for money pricing and services by using TQM demand
e- Alliance & joint venture strategies to increase c- Effective performance c- Increase R&D exp for
market share appraisal system for innovative products &
employees existing brands
THREA a- Competition in FMCG space on a/c of low entry a- Increasing raw material will a- Competition from the
T barriers of technology and capital requirements effect on profit margin diverse players may cause
b- Price war due to multinationals & regional players b- Rising inflation is main threat losing mkt share
could impact revenues & profits in consumer spending b- Increasing input cost prices
c- Rise in cost of raw materials & rising in food c- Recession may come in may result low profit
inflation means less spending on non food items FMCG industry margin
d- Increasing Advt & publicity exp will effect profit
margin
ble: 9 CONSUMER BEHAVIOUR MODEL (R53) (R64)
able: 10: BRANDING & BRANDING ISSUES:
Factors Impact
Brand loyalty i. Godrej acquired a Nigerian Cosmetic and Toiletries product which produce Tura bar soap product in
local market. (R: 25)
ii. Godrej create market penetration, Enhance brand presence by acquired of Kinky group a South African
company. (R: 25,66)
Brand awareness th
i. The market share position of Godrej holding 5 position in Cosmetic and Toiletries (R: 25)
ii. Godrej hair colour leading the colour cosmetic in cosmetic and toiletries industry. (R: 25)
iii. Godrej soap second largest toilet soap in India. (R: 25)

5. Perceived Brand quality i. Increasing market share, brand positioning indicate the quality of Godrej brand in the market. (R: 25)
Sensor Branding i. Godrej -1, Cinthol, Ezze and Fair Glow brands create consumers attention and increase market share due
to sensitiveness of packaging and product. (R: 25)
Celebrity Branding i. Indian Film hero Hrithik Roshan, actress Katrina Kapoor are engaged as brand ambassador with Godrej
product and increase business grew sharply by 25%.
ble: 11: Risk (R33)

7. Financial Business Country Risk management
a-Loss incurred by promoter group a- Distributors might a-Outstanding a- Gogrej is an established brand name and
might affect the company’s finance. affect the litigations against the market leadership
b- Competition might force the distribution network, company & compliance b- Widespread sales and distribution network
company to compress its profit thus distribution with laws. and supply chain competencies in India
margins and increase marketing costs. should be well b- Fiscal benefits being c- Manufacturing facilities spread across
c- the company should be able to managed. enjoyed by the locations both internationally and domestically
manage its growth, otherwise this will b- the launch of new company (income tax d- Research and Product Development
affect the business and financial products, if and excise duty) may e- Qualified employee base and management
results. unsuccessful, may not be available in team
d- Failure to successfully identify and impact earnings. future could affect our f- Leverage and enhance the Godrej brand
conclude acquisitions, joint ventures c- the existence of post-tax profits. name and that of our brands.
or manage the integration of the look-alikes products c. Probability of g- Focus on enhancing our sales and
businesses acquired or the could damage the Cultural risk due to distribution network within the domestic
performance of such businesses being business. heterorganic market
below expectations may cause d- the business relies community. h- To grow and expand our market share
profitability and operations to suffer. on IT for its supply d. Language barrier through organic growth
chain, any faults e. Regional Parties. i- To accelerate growth and expand our
e- Significant fluctuations in certain may result in loss. f. Social and international presence through strategic
foreign currency exchange rates can e- any proposed Communal tension. acquisitions and partnerships
have an adverse impact. acquisitions by the g. Compliance with j- Continue to upgrade and modernise our
f- A Significant portion of our Objects company may have laws. plants and facilities to manufacture and supply
are for the purposes of repayment of A material impact products at a low
loans. on its business,
g- Many liabilities are not provided financial condition
in the company's financial statements. and results of
operations.

8. ble: 12: Kaplan & Norton Model for Benchmarking GCPL with Competitors (T6, T7, R25, 26, 27, 30, 46, 47, 52,
)
GCPL DABUR INDIA MARICO
FINANCIAL Revenue Growth 26.33% Revenue growth 18.28% Revenue growth 25.39%
PERFORMANCE Net Profit Margin 12.4% N.P Margin 13.8% N.P Margin 7.9%
Employees Cost on revenues 6.2% Emp. Costs on Revenue 8.28% Emp Costs on revenue 6.8%
Advt Exp on revenue 9.09% Advt Exp on revenue 12.11% Advt Exp on revenue 10.43%
EVA in 2009 Rs129.83 cr (T7) EVA in 2009 Rs 144 cr ROE 310.3%
ROE 674.31% ROE 452.2%
CUSTOMER Sahayog & Sampooran projects Outsourcing IT services Marico is doing well in their
PERFORMANCE resulted 30% time saving in customer helped Dabur by customer satisfaction by meeting
MEASURES order taking & between reach of all implementing a new sales personally and finding their needs
range of products and distribution strategy, and IT has also improved its
supply chain management customer service
capability, optimizing ERP
capabilities and outsourcing
IT operations
INTERNAL Above two projects resulted 30% time Dabur is utilising at 80% Marico deployed Microsoft
BUSINESS PROCESS saving in despatch time capacity approximately dynamics TM NAV 4.0 for faster
Plant utilisation Capacity is 65% The above use of IT increased decision making which resulted
business process efficiency, improved sales efficiency & faster
quality, flexibility and product reporting
development.
LEARNING & GCPL has EVA based performance Company is using Young Learning through sharing concept
GROWTH management system which is linked Managers development in which members have
with employees remuneration& programme from recruitment to opportunity to directly interact
bonuses and satis appraisal which satisfies all with board under Popcorn Session
faction. employees at all levels. with Harish.
Best Employee of India award in 2007 Satisfying & keeping employees
rank 6 by giving them stock options
Table: 13: RECOMMENDATION FOR ALTERNATIVE INVESTMENT OF ASSET CLASS (R60. 61)
YPES DESCRIPTION REASONS TO CHOOSE MAJOR RISK
SHARES Common, preferred High return potential High
Large cap, mid cap, small cap May provide income
Growth value Long term horizon
International/domestic
BONDS Government, Agency Regular income Medium
Municipal Potential for price appreciation
Corporate Possible tax advantages
Mortgaged-backed, asset-backed Lower risk
International/domestic
CASH EQUIVALENTS Treasury Bills Regular income Low
Commercial Paper Relative price stability
CD’s & banker’s acceptances Liquidity
Money markets Lower-risk
PROPERTY Real estate High return potential Low
Property unit trusts May provide income
Listed property/funds Long-term horizen
International/domestic

9. RISKS (R25)
easonal fluctuations, Political risks associated with unrest and instability in countries where the company has a presence or operations,
conomic depression and inflation, Labour shortages and attrition of key staff, Exchange rate fluctuation and arbitrage risk, Increasing
osts of raw material, transport and storage, Competitive market conditions and new entrants to the market, Compliance and regulatory
ressures including changes to tax laws, Supplier & distributor relationships and restriction of distribution channels
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