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One of the most respected MNC operating in India Core brands were maturing HLLs Strategy:
Focus on innovation Prioritized opportunities which built upon existing assets and capabilities Avoided Management talent to work on too many projects
Entered rural market through Breeze 2 in 1 In 1995, launched Kissan Annapurna iodized salt
Strong competencies in marketing and R&D Partnership with manufacturers Cost competitiveness due to competition from local marketers Encapsulation technique to retain iodine in the salt
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DESCRIBE AND EVALUATE THE STRATEGY EMPLOYED BY HINDUSTAN LEVER DURING 19952002 TO GROW THEIR TOP-LINE
Focus on Innovation
EVALUATE THE CONTROLS AND ORGANIZATION USED BY HINDUSTAN LEVER TO IMPLEMENT ITS GROWTH INITIATIVES IN KISSAN ANNAPURNA IODIZED SALT
1) BLEND OF FINANCIAL & NON-FINANCIAL MEASURES IS REQUIRED 2) NON-FINANCIAL MEASURES ARE USED AT LOW LEVELS FOR TASK CONTROL 3) FINANCIAL MEASURES ARE USED AT HIGH LEVELS FOR MANAGEMENT
CONTROL
FINANCIAL MEASURES
Sales (value) Expenses Budget compared to actual value of sales Sales (quantity) Net income Contribution margin Budget compared to actual net income Budget compared to actual expenses Return on sales Return on equity
Customer satisfaction Product quality Employee development Productivity improvement Implementation of new products / services
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Environmental compliance
GIVEN YOU DECISIONS, WHAT PRACTICES AND PROCESSES SHOULD HLL RETAIN? WHAT NEW PRACTICES AND PROCESSES WILL HAVE TO BE DEVELOPED?
Retain: Focus on Innovation Continuous R&D Marketing strategies Encouragement to all the levels of management for new ideas New processes and practices to be developed: Better forward integration Logistics management Joint ventures
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THANK YOU