12. A BRIEF OVERVIEW OF MARUTI UDYOG LTD.
In 1981, GOI entered into four wheeler business
through joint venture with Suzuki motors
corporation a Japanese company
Maruti Udyog Limited (MUL) was established in
February 1981
competitors- the Hindustan Ambassador and
Premier Padmini were both around 25 years out of
date at that point
Maruti Suzuki offers a complete range of cars from
entry level Maruti 800 and Alto, to hatchback Ritz,
A-Star, Swift, Wagon-R , Estillo and sedans DZire,
SX4, in the 'C' segment Maruti Eeco and Sports
Utility vehicle Grand Vitara.
13. CONFLICTING SITUATIONS
Plan for modernization and expansion
Appointment of Bhaskarudu as the Managing
Director
Disinvestment of MUL
Stake of SMC and GOI in Maruti udyog ltd
Funding decisions
14. PARTIES IN THE CONFLICT
Maruti ltd-Government of India
Suzuki ltd
15. TYPE OF CONFLICT IN THE CASE STUDY
Relationship conflict
Process conflict
16. RECOMENDATION
The above mentioned conflict will never occur again
if both the companies Maruti India and Suzuki
Japan make a policy that contains democratic
theory of ethics by which every executive post is
filled by consciences of both the parties that will
cause a good working environment.
This conflict could be resolved by making a policy in
such a way where an executive post should be
filled by conducting a lucky draw which should be
crystal clear and transparent so every one should
accept this way of job posting.An advantage of
such an activity is that maruti India and Suzuki
japan both the party will agree upon it and there will
be lesser conflict in future.
17. Another way of handling such a conflict is to form
a neutral committee which is responsible for
judging the problems faced by the organization
and making ways to resolve those problems, and
produce a monthly report to the board of
directors.i think this is the best way to solve this
type of conflict situations, because in this method
every report of organization is been delivered to
board of directors.
Think Think
23. NEXT CASE
MR. TATA , AT A PRESS CONFERENCE IN KOLKATA, DECLARED THAT
TATA MOTORS WAS FOLDING UP ITS PROJECT AT SINGUR IN
HOOGHLY DISTRICT BECAUSE OF THE CONTINUOUS VIOLENCE
UNLEASHED BY THE TRINAMOOL CONGRESS, AND THAT IT WOULD
BE SHIFTED TO ANOTHER STATE. WHILE STATES LIKE ORISSA,
JHARKHAND AND CHHATTISGARH AMONG OTHERS OFFERED SITES,
THE TATAS OPTED FOR GUJARAT.
WHAT YOU WOULD HAVE DONE IF YOU WERE TO DECIDE ?
26. WHAT WENT WRONG?
Frankly, it was a hassle-free decision for Vijay Mallya to completely
suspend services on his budget carrier Kingfisher Red , says one of
his close confidantes. Formerly known as Air Deccan, Mallya had
bought 26% stake in this airline from his friend-cum-neighbour
Captain Gopinath in 2007 at Rs 550 crore and later picked up
additional 20% stake at around Rs 155 a share.
The intention of acquiring Deccan was only aimed at giving
Kingfisher Airlines (KFA) an access to international routes quickly.
Government rules gave overseas flight rights only to airlines with
a minimum of five years experience, and KFA was behind in the
queue after Deccan. “Mallya never believed in low fare business
model even when he bought the airline,” says an official with the
airline.
27. RECOMENDATIONS –
MARKETING STRATEGY
Holiday packages-at unprofitable routes
•
like Nasik, Aurangabad
•Pricing-Should beat par with Spice jet
and Indigo
•Tie-ups with Corporate
•Frequent flyer programmes
•Better deals and offers for flyers in air
28. GENERAL RECCOMMENDATIONS
1. Route rationalisation: Cutting back unprofitable sectors
and services to several cities
2. Debt recast: Asking banks to reduce rates or take a cut
on loans or find a 'local investor„
3. Raising capital: It has plans to raise $200 million
through GDR
4. FDI: If the FDI limit is raised and foreign airlines are
allowed to buy a stake, Mallya could recapitalise
Kingfisher