STRENGTHS
1.
A
modern well-equipped manufacturing base spread over 10 plant locations.
2. 17000-strong,
skilled manpower.
3. Organisational
ability to assimilate advanced technologies.
4. Very
wide business diversification.
5. Consensus-based
decision-making.
6. High
standing with
* Financial
Institutions
* Investing Public
* Central/State
Governments
* Collaborators
abroad
7. Generally satisfactory Industrial climate.
8. A strong
marketing/dealership network.
WEAKNESSES
1. Lack of "in-house" capabilities to
* conduct
market surveys
* prepare
techno-commercial viability studies
when it comes to totally
"unrelated" businesses.
2. Inadequate manpower resources as far as "Implementation
Phase" of large projects business concerned.
3. "Information-Base"
inadequate with reference to :
* ready-reference list of "Experts" with vast experience
of the businesses/industries
we wish to diversify into.
* ready-reference
list of world's top ten manufacturers in each
product/business
lines of interest to us.
* comprehensive list of LOIs/ILs issued to SIDCs.
*
comprehensive
list of "critical success- factors" for
businesses/industries
we wish to diversify into.
4.
Lack of expertise in dealing with various State
Industrial Development Corporations (SIDCs).
5. Liaison at
appropriate levels in Delhi with DGTD/Ministries/Planning Commission/DoE/DoT,
etc. as also with Financial Institutions is not adequate.
6.
Very long internal decision-making process for new
business/product lines.
7. Ultra-conservatism
leading to too much analysis and pushing up all risk-involving decisions right
to the top.
8. Absence of a
climate which encourages innovation (ability to respond to changes faster everywhere,
of every kind)
9.
Very long external process of getting MRTP clearance
(where more than 10 be held by L&T)
10. Resistance to
usher into a truly work participative work culture.
11. Insufficient
in-house managerial resources to manage diversification ventures at new
locations.
OPPORTUNITIES
INTERNAL
1. positive synergy and use of
existing manpower to fill up
positions in diversified industry in
functional areas like EDP,
finance, personnel and general
administration.
2. Improved
growth opportunities to trained middle level
manpower and lower level manpower at group
level.
EXTERNAL
1. Delicensing of
26 industries (for category 'A'districts for MRTP companies - without export
obligation) including "Industrial Machinery".
2. Broad
banding
3. OGL import of food processing
machinery at lower rate of duty
4. Thrust to
food processing industry
5.Opening up of
"Defence-sector" to private industry (in a limited way) .
6.Poor BOP
position throws-up opportunities to take up a number
of products for local manufacture
(import-substitution angle),
something which GoI will strongly support.
7. Backdoor entry into thrust
areas and non- Appendix I industries
through joint sector Approach.
THREATS
1.
Possibility of linking new industrial licences with export
obligations.
2.
Possibility of Govt asking large companies to meet their foreign
exchange requirement through open market purchase of REP licences.
3.
Increased foreign competition because of a large
number of items having been put under OGL.
4.
Liberalised industrial licensing policy have made it very
easy for a large number of "entrepreneurial start-up" companies to
enter into the competition area.
5.
possible dilution of corporate "values"
due to geographical and business-diversification.
6.
Inadequate technical/supervisory/managerial retraining
may lead to "personnel-obsolescence."
7.
Rapidly rising manpower-costs, unmatched by manpower-productivity,
may force us out of some traditional businesses.
In this
backdrop, L&T's Corporate Strategy would shape itself towards realizing its
Corporate Mission as delineated in the previous Chapter. While taking into
cognisance L&T’s historical growth so far, the following Chapters would now
define the possible strategic moves within the ambience of Goods and Services
encompassing a gamut of Inputs and Outputs.
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