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Strengths And Strategy Of Adtha Group: Aditya Birla Group

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INTRODUCTION: The Aditya Birla Group is an Indian multinational conglomerate named after Aditya Vikram Birla, headquartered in the Aditya Birla Centre in Worli, Mumbai, India. It operates in 40 countries with more than 1.2lakh employess worldwide. The group was founded by Seth Narayan Birla in 1857. The group interests in sectors such as viscose stable fiber, metals, cement, viscose filament yarn, branded apparel, carbonblack, chemicals, fertilizers, insulators, financial services, telecom, BPO and IT services. Founded 1857 Founder Ghanshyam Das Birla Area World wide Revenue US $ 40 billion Employess 1,33,000 Headquarters Mumbai , India Vision: To be an conglomerate globally with a clear focus on each business it has. Mission: To …show more content…

Strength:- It is an inherent capability of firm to gain the strategic advantage over its competitors of the company. 2. Weakness:- It is an limitation or constraint of firm which creates a strategic disadvantage to it. 3. Opportunity:- It is a favorable condition of the firms environment in which it enables it to strengthen its position. 4. Threat:- It is an unfavorable condition of the firms environment in which it causes a risk for the firms position. SWOT ANALYSIS OF BIRLA GROUP: Components Analysis Strength Growing Internationally, Effective leadership, innovations in products and capabilities, technological advancements. Weakness Process chain is lengthy, operations were too complex. opportunity E-commerce business is growing rapidly, urbanization, growth in particular core sector industries. Threat Substitute sales will be lost, fluctuations in currency rates and the interest rates. Boston Consulting Group (BCG) Growth – Share Matrix :- There were 3 stages in the BCG matrix:- Stage1: Evaluation of relationship between growth share. Stage2: Classification of SBUs into a. Stars b. Cash Cows c. Question Marks d. Dogs Stage3: Determination of strategy :- a. …show more content…

They represent best opportunities for expansion. Cash Cows- Low growth high market share SBUs or products. They generate cash and have low costs. They are established , successful and need less investment to maintain their market share. In the long run, when the growth rate slows down, stars becomes cash cows. Question Marks Low market share business in high growth markets. Question marks if left unattended, are capable of becoming cash traps. As growth rate is high, increasing the investments should be relatively easier. Firms have to initiate action to convert “ Question Marks” into “stars” and then into “cash cows” when the growth rate reduces. Dogs- low- growth They may generate enough cash to maintain themselves, but do not have much future. Sometimes they need cash to survive. Dogs should be minimized by means of divestment or liquidation. BCG Matrix can be represented

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