Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Thursday 5 January 1989

SWOT ANALYSIS


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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