STRATEGIC MANAGEMENT Term Paper Presentation on

PRESENTED BY GROUP 2:
ABHIJEET PATNAIK- 12202176 ABHISHEK KHETAN 12202178 AMIT KUMAR DAS 12202179 KOUSTAV LAHA 12202193 T. RAJ KUMAR 12202230 SHALINI GUPTA - 12202240

Calculations

CHALLENGES AND ISSUES

Increasing customer appetite to continuously upgrade, irrespective of price points and a more competitive scenario. Managing the supply chain They are planning to integrate supply chain process using IT solution to enable demand planning.

Careful choice of demographics, consumer segments and product categories.

Commodity pricing since imported products like palm oil are costlier due to depreciation rupee.

The Middle-East business faced severe cost challenges due to exorbitant inflation in all key commodities like flour, sugar & oil which resulted in lower profit compared to previous year.

OVERCOME

The market challenge was successfully met by strengthening the companys pillar brands which grew at over 17% year on year. The company addressed the cost challenge by removing over Rs. 700 million in cost, by consolidating operations, optimizing manufacturing units, reducing complexities and eliminating wastages in the value chain. Company focused attention on building new capabilities and a robust pipeline of innovation. Coupled with leading edge go-to-market approaches these innovations tap new sources of growth and profitable revenue, while building brand differentiation and relevance. New products like Britannia Cookies and Treat Choco-Decker were launched, leveraging new capabilities, to open up new growth vectors. For Britannia Brands a three pronged strategy was followed through improved distribution in high growth markets of USA, Canada, Australia, New Zealand and Singapore, launch of new products like Rusk, Nutrichoice 5 Grain, Nutrichoice Digestive, and opening up of new geographies: Taiwan, Fiji, Nigeria, Botswana & Ghana.

Internal Analysis

Tangible Resources:

Financial Resources Physical Resources

R & D Capabilities
Supply Chain and Manufacturing Capabilities

Financial Resources

Credit Rating:
CRISIL has

assigned credit rating to Britannia Industries as AAA rating.

Debt-Equity Ratio:
4,001,400 5,464,100 4,314,459 4,296,168 251,623

Debt (all values in '000) Total Equity (all values in '000)

6,364,100 5,200,400 4,513,049 3,962,522 8,245,412

Leverage

0.63

1.05

0.96

1.08

0.03

Physical Resources
Location

Plant locations Britannia Industries Ltd. Year-ended : March 2013 State Product Bihar
Biscuits & High Protein Food Bread Cake & Rusk

Bihar

Lawrence Road

Delhi

Biscuits & High Protein Food Bread Cake & Rusk

Biscuits & High Protein Food Bread Cake & Rusk Biscuits & High Protein Food Bread Cake & Rusk Biscuits & High Protein Food Bread

Orissa

Orissa

Taratalla

West Bengal

Uttaranchal

Uttarakhand

R & D Capabilities
R & D - Expense Details
Britannia Industries Ltd.
Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13

Currency: Crore

12 mths

12 mths

12 mths

12 mths

12 mths

12 mths

R & D expenses (capital & current account)

3.48

4.28

4.61

9.28

6.50

8.33

Supply Chain and Manufacturing Capabilities

The culture of continuous improvement is being created through deploying various initiatives like Kaizen, Total Productive Maintenance (TPM) and Total Quality Management (TQM). The Lean Six Sigma methodology has been adopted in solving complex issues in the organization, thereby improving the effectiveness of processes and systems.

THANK YOU