CASE PRESENTATION

ON

Bharat earth movers limited(bEML)

BEML Ltd “ A Mini ratna” was established in May 1964 as a Public Sector Undertaking for manufacture of Rail Coaches & Spare Parts and Mining Equipment.

Government of India Holding => around 54% of total equity.

Exports => more than 56 countries

Serving India’s core sectors i.e Defence, Rail, Power, Mining and Infrastructure .As part of company’s globalization strategy, the company has expanded its global reach by opening local offices in Indonesia and Brazil recently in addition to Malaysia and China.

introduction

CORPORATE STRUCTURE

It consist of a whole-time Chairman and Managing Director who is assisted by ten Directors, of whom five are whole time (Marketing, Finance, Production, R & D, and HRD).

COMPANY PROFILEheadquarters => BangaloreManufacturing units[5] => Mysore, Kolar Gold fields (KGF), Palakkad ,Bangalore & Vignyan Industries(Karnataka)R & D center => KGF

MISSIONIMPROVE COMPETITIVENESS THROUGH ORGANIZATIONAL TRANSFORMATION AND COLLABORATION / STRATEGIC ALLIANCES / JOINT VENTURES IN TECHNOLOGY.GROW PROFITABLY BY AGGRESSIVELY PURSUING OPPORTUNITIES IN NATIONAL AND INTERNATIONAL MARKETS.ATTRACT AND BUILD PEOPLE IN A REWARDING AND INSPIRING ENVIRONMENT BY FOSTERING CREATIVITY AND INNOVATION.

VISIONTO BECOME A MARKET LEADER, AS A DIVERSIFIED COMPANY SUPPLYING PRODUCTS AND SERVICES TO MINING & CONSTRUCTION, RAILWAY & METRO AND DEFENSE SERVICES AND EMERGE AS AN INTERNATIONAL PLAYER.

OBJECTIVES

TO MAINTAIN A DOMINANT POSITION IN DESIGN, DEVELOPMENT, MANUFACTURE AND MARKETING OF DEFENSE, EARTHMOVING & CONSTRUCTION AND RAIL & METRO EQUIPMENT.TO DIVERSIFY AND GROW.TO PROVIDE TOTAL ENGINEERING SOLUTIONS TO ITS CUSTOMERS.TO INTERNATIONALIZE OPERATIONS BY ENHANCING EXPORTS.TO IMPROVE PROFITABILITY.TO MAINTAIN STATE-OF-THE-ART TECHNOLOGY FOR ALL PRODUCTS.RE-ORIENTATION OF THE BUSINESS OPERATIONS TO MATCH PRESENT SCENARIO.CONTINUOUS BUILDING OF SKILLS AND COMPETENCIES TO BRING ABOUT EXECUTIVE EFFECTIVENESS FOR MANAGEMENT SUCCESSION.

PRODUCTS

BULL DOZERS HYDRAULIC EXCAVATORS DUMP TRUCKS

WHEEL LOADERS ROPE SHOVELS MOTOR GRADER

RAILWAY PRODUCTS

RAIL COACHES TRACK LAYING EQUIPMENTS

COLLABORATORS

BEML has collaboration with world leaders such as :-

• KOMATSU – Japan• INDRESCO MARION – USA• KOMATSU DRESSER – USA• OMNIPOL – Czech Republic• VOEST ALPINE - Australia

SWOT Analysis

STRENGTH

BEML STAND

ADEQUATE MANUFACTURING FACILITIES WITH ISO 9001 CERTIFICATION

WIDE MARKET NETWORK AND WIDE PRODUCT RANGE. VERY STRONG R&D FACILITIES. CUSTOMER SATISFACTION. HUGE SKILLED LABOUR FORCE AT MANUFACTURING CENTRE INCREASED GOVERNMENT SUPPORT FOR EXPORTS.

SWOT Analysis

WEAKNESS HIGH COST OF PRODUCTION. EMPLOYEES DISSATISFACTION. OUTDATED TECHNOLOGY ADOPTED. DELAY IN DECISIONS DUE TO PROCEDURES AND AUTHORITY.

FAST CHANGING MARKET CONDITIONS.

PERMITTING PRIVATE SECTOR FOR MANUFACTURING AND SUPPLYING RAILWAY REQUIREMENTS.

SWOT Analysis

OPPURTUNITIES 

DEMAND FOR SMALL AND MEDIUM RANGE EQUIPMENTS. ACCESS FOR LATEST TECHNOLOGY. GROWTH POTENTIAL IN CORE SECTORS LIKE MINING,

CONSTRUCTION, INFRASTRUCTURE, DEFENCE AND RAILWAYS. BEML LIMITED HAS A VERY GOOD OPPORTUNITY IN FIELD OF

MATERIAL MOVING EQUIPMENTS.

SWOT Analysis

THREATS

TO IMPLEMENT MODERN TECHNOLOGIES. ENTRY OF MULTINATIONAL COMPANIES INCREASED COMPETITION IN MINING SEGMENT DUE TO THE

ENTRY OF MNC’S TO INDIAN MARKET.

Porter’s “Five Forces” Strategy

Porter’s “Five Forces” Strategy

Bargaining power Supplier• Volume is critical to suppliers• Inputs have little impact on costs• Large number of substitute

inputs

Bargaining power customer

• Product is important to customer

• Large number of customers• Limited buyer choice• Low dependency on

distributors

Porter’s “Five Forces” Strategy

Substitutes•Substitute product is inferior•Limited number of substitutes

Rivalry• Relatively few competitors• Large industry size

Competitors• Government Regulations

Porter’s Value Chain AnalysisPorter describes the value chain as the internal processes or activities acompany performs “to design, produce, market, deliver and support itsproduct.” Porter describes two major categories of business activities:primary activities and support activities. Primary activities are directly involved in transforming inputs into outputsand in delivery and after-sales support. It include:

• Inbound logistics — material handling and warehousing;• Operations — transforming inputs into the final product;• Outbound logistics — order processing and distribution;• Marketing and sales — communication, pricing and channel management.• Service — installation, repair and parts.

Porter’s Value Chain Analysis

Inbound LogisticsThe receiving and warehousing of raw materialsDistribution of raw materials to manufacturing and operations

Porter’s Value Chain Analysis

OperationsProcess of transforming inputs into finished goods and services

Porter’s Value Chain Analysis

Outbound Logistics

Warehousing of finished goodsDistribution of those finished goods to customers or retail stores

Porter’s Value Chain Analysis

Second Activity : They are handled by the organization’s staff ,functions include:

• Procurement—purchasing of raw materials, supplies and other consumable items as well as assets.

• Technology development — know-how, procedures and technological inputs needed in every value chain activity.

• Human resource management—selection, promotion and placement; appraisal; rewards; management development; and labour/employee relations.

• Firm infrastructure—general management, planning, finance, accounting, legal, government affairs and quality management

QUESTIONS