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A Report on Mahindra and Mahindra

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Some interchanges that fulfil the needs of individuals or customers beyond national limit is called Global Marketing . This process is starts with finding of customers wants and then planning to satisfy those wants . People wants are not same . There are lots of dissimilarity like culture ,competition between companies ,rules and regulations ,geographical conditions different in different countries . Global marketing growing day by day because of advanced technology. Today internet links customers around the world . New transportation facilities creates easy transaction of goods and raw materials .

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The new transportation system reduces the cost of transportation than before and much faster and efficient. Emergence of new markets like South America, Africa and South East Asia, Increase of individual income around the world are the strongest drive for global marketing. The company that entering the international market must know the difficulties of marketing in different culture, advertising and sale, political environments and legal issues are different in different countries. International trade increases the economic condition of world economy .

Products is available more cheaply than before, because of the low production cost. Countries sharing their interests and make economic treaties . This leads to an improved relationship between the countries. This is an important benefit of globalisation Globalisation reduces restrictions and regulation of production . This helps to increase the production . The verity of products helps the customers to choose the right product. Global marketing helps competitors to improve their efficiency and quality of products with lower cost. Globalisation helps to reduce the poverty.

Counties which have low wage rate can produce product at lower cost. When the labour demand increases automatically salary also increases. MAHINDRA AND MAHINDRA Mahindra &Mahindra is an Indian multinational company. Its headquarters is in Mumbai . Mahindra and Mahindra formed by J. C Mahindra and his friend Malik Glulam Mohammed in 1945. After the independence of India M. G Mohammed went back to Pakistan and he became the first Finance Minister of Pakistan. After that K. C. Mahindra (brother of J. C Mahindra) jointed with his brother and they changed the name of company Mahindra &Mahindra in 1948.

In the beginning M&M was a small steel company . In 1949 company entered in to automobile manufacturing. In 1950 company started make jeep in India under the licence and agreement with Wally’s motors Inc. USA. In 1969 M&M became an exporter of utility vehicles and spare parts. Mahindra and Mahindra started a tractor division in 1982. In 1994 company divided into six business units: Automotive, Farm Equipment, Trade and Financial service, Information Technology and automotive components. This separation created a sudden change in the performance of company.

Applying of modern production techniques creates the company more competitive. Currently M&M is the one of the 20th largest company in India. M&M included in Forbes ranging among the 200 highest reputable companies in the world. PRODUCTS AND SERVICES OF M&M Mahindra and Mahindra Group consist of ten business sectors. They are Automotive and Farm equipment, Defence system, financial service, Hospitality, Information Technology, Real Estate & Infrastructure, Systech, Two Wheelers and Mahindra Partners with the partnership of 18 other businesses.

In 2011 M&M entered a new market, production of construction equipment called EarthMaster Backhoe Loader. In this product Mahindra uses their own technology. EarthMaster Backhoe Loader is an earth-moving equipment. Company manufacturing currently focus on earth moving equipment because it is an important fast developing zone in India and other developing countries around the world. MAJOR RECENT EVENTS In May 2012 Keshub Mahindra the chairman of M&M PTE was retire from the company and Anand Mahindra became the chairman of the company. Mahindra introduced a new defence vehicle called Rakshak Plus in April 2012rapid action forces. 0th February 2012 Mahindra Satyam Limited accrues the major shares of Dion Global Solutions Limited provider of specialist software’s for the global capital markets. Company now paying more attention to the electric car segment because of the energy problems that will happen in the . M&M introduce new electric vehicle modal called Mahindra Rava . MAJOR RECENT ISSUES Mahindra like to introduce their small trucks and Scorpio(the successful SUV in Indian market)in USA. That is why Mahindra signed an agreement with Global Motors USA. Mahindra already spend 100 million Dollars in USA for to introduce these vehicles.

But Mahindra faces a problem in USA . They fail to get proper certification. That is why their project in USA is at tortoise pace. WHY MAHINDRA GLOBALIZE? Primary objective is to maximise the sales and profit of the company. Improve local competition and find more customers. Minimise the production cost through global outsourcing. Decrease the over dependence of local market. ATTITUDE TOWARDS GLOBALISATION Mahindra founded in 1945. From the beginning onwards company well connected globally through international partnership. Mahindra have a large number of international work forces.

Company well connected to the world communities and it makes the opportunities to customers all-over the world. CURRENT ECONOMIC CONDITION OF CAMBODIA According to United Nation Organisation Cambodia is a least developing country in Asia. Which is situated in the centre of South East Asia sharing border with Thailand and Vietnam . Its population is around 14 Million. Most of the people are living in rural area. Like other developing countries in the world Cambodia’s economy based on agriculture. Rice, Rubber, Timber and fisheries are the important sources of income.

WHY CAMBODIA? Cambodia is one of the developing country in Asia. Presently Cambodian government modify some of the low that are helpful to the international companies to do business in the country. One of the important advantage of Cambodia is unutilised natural resources. Cambodia have rich mineral resources. But still country effectively not using this natural resources. Liberalisation of international business policies make some improvements in the economy of the country . In construction equipment sector slowly started to develop in Cambodia.

Companies like JCB already entered in the country . Now a days construction industry is the one of the important fast developing sector in Cambodia. This helps to develop construction equipment industry also. Still Cambodia using labour intensive technique in the filed construction. Labour intensive method is wastes lot of time and human effort and this much more expensive also. That means it is the perfect time to enter Cambodian construction equipment industry. MAJOR NATURAL RESOURCES OF CAMBODIA Cambodia has rich natural resources like metals, forestry, hydroelectric power, petroleum .

But one of the important problem is not exploiting these natural resources properly . But recently there are some good news coming from Cambodia because liberal economic policies of Cambodian government. Industries are essential for the economic development of a country . Cambodia have rich natural resources effective utilisation of those natural resources make a good effective the economic condition of the country. MAJOR INDUSTRIES IN CAMBODIA Basically in Cambodia industries are based on agriculture and forestry. Rice milling is the one of the impotent industry in Cambodia.

After the civil war in Cambodia’s (1970) industrial development decreased because of the new industrial policies. New policies prevent the privatisation. The Pol Pot government placed all the industry under the state control. Because of that almost 100 industries were stop working and this leads some important economic problems like unemployment and poverty. In 1979 a new government came and made some law which were supporting the industrial development of the country. Government open a door for international investment. This made immediate changes foreign investors came in to the ountry and started around 60 factories like producing household goods, textiles, soft drinks, pharmaceutical products, and other light consumer goods. But most of the industries were operates below capacity because the government failed to provide electricity and transportation facility. Small industries faced problems like lack of raw materials, and lack of availability of spare parts. After signing of the Paris peace accords in 1991 opened its oil fields for privet sector. 16 international companies were interested oil exploration in Cambodia.

In January 1994 it was reported that five more oil companies continuing offshore oil and gas exploration in the country. In 2000 the production of textile dabbled than before and started export also. This made some significant changes in related industries like cotton manufacturing and improved the life style of cotton cultivators. Cambodia has rich mineral deposits of gold, silver, and iron, copper, marble, limestone and phosphate, and a gem industry. Due to the globalisation lots of foreign investors invest large amount in these industries.

Major companies in the world like ConocoPhillips, Chevron, ExxonMobil, Federal Express, GE, Google, IBM, Jhpiego, Microsoft, RMA Group, and Qualcomm, Tata, Mahindra, Angang New Steel etc. already invested large amount of money in deferent sectors in Cambodia. CONSTRUCTION INDUSTRY IN CAMBODIA Construction industry is the one of the fast developing segment in Cambodia. Construction industry working very smoothly than before because of the good planning of construction department of Cambodian government. There are lots of foreign companies invested lots of money in Cambodian construction industry.

Now a day’s government have also been given approval a new hydropower plant, textile and garment factories, and hotels and petrol stations, several new housing developments. 2012 government approved projects worth US$324 million. When compared to last year the amount is very high because last year the amount was US$159 million. POLITICAL ENVIRONMENT THAT UPSETTING THE BUSINESS Cambodia is a constitutional monarchy. Prime Minister is the head of government and a Monarch is head of state. One of the important problems that upsetting Cambodian business is corruption.

After decades of civil war and political violence, corruption has almost every sectors of Cambodian government. Law agencies implementation are the most corrupt and ineffective sectors, lacking the independence, resources and capacity to effectively investigate and put on trial corruption cases, Weak systems of checks and balance, ineffective accountability mechanisms and limited opportunities for public participation are the main problems of Cambodia now faces. BUSINESS ENVIRONMENT IN CAMBODIA Cambodia has experienced solid economic growth over the past three years without significant political liberalization.

The country gained its independence in 1953 after nine decades of French colonial rule. Since the end of Cambodia’s civil war and the Khmer Rouge regime in 1991, national strongman Hun Sen has held de facto power, and the government’s repression of political opponents has damaged Cambodia’s international reputation. To achieve its stated goal of 6 %annual growth, Cambodia must foster a more transparent, rules-based economic system to encourage business development and expansion beyond the current base of textiles, tourism, and agriculture. FREEDOM TO DO BUSINESS

Starting a business takes an average of 86 days, evaluated to the world average of 48 days. Entrepreneurship should be easier for maximum job creation. Both obtaining a business license and closing a business are very difficult. Transparency in the governing management is very poor, and official delays are commonplace. The overall freedom to start, operate, and close a business is considerably limited by the national regulatory environment. FREEDOM OF TRADE Cambodia’s weighted average tariff rate was a relatively high 16. 4 %in 2003. The government abolished most non-tariff barriers to trade.

However, import licenses are required for firearms and pharmaceuticals; export licenses are required for antiquities, rubber, and timber; and customs and regulation of trade are difficult. As a result, an additional 20 %is subtracted from Cambodia’s trade freedom score to account for these non-tariff barriers. FISCAL FREEDOM Cambodia has low tax rates. Both the top income tax rate and the top corporate tax rate are 20 %. Other taxes include a value-added tax (VAT) and a tax on interest. In the most recent year, overall tax revenue as a percentage of GDP was 8 % FREEDOM FROM GOVERNMENT

Total government expenditures in Cambodia, including consumption and transfer payments, are low. In the most recent year, government spending equalled 14. 9 % of GDP, and the government received 29. 1 % of its total revenues from state-owned enterprises and government ownership of property. CONVENIENT MONETARY Inflation in Cambodia is moderate, averaging 4. 8 % between 2003 and 2005. Relatively moderate and unstable prices explain most of the monetary freedom score. The market determines most prices, but the government attempts to maintain stable retail prices for fuel through subsidies.

Consequently, an additional 5. 7 % is deducted from Cambodia’s monetary freedom score to adjust for measures that distort domestic prices. FREEDOM OF INVESTMENT The foreign investment rule is generally liberal, although certain sectors face restriction, including law, accountancy, and certain areas of transport, construction, and foreign trade, as well as publishing, printing, broadcasting, brick making, rice mills, wood and Foreign-owned hospitals may not employ non- Cambodian doctors if the Ministry of Health considers that there is an adequate number of Cambodian practitioners.

There are no restrictions or controls on the holding of foreign exchange accounts by either residents or non-residents. Non- residents may not own land, and the government still must approve foreign direct investment. LOW LEVEL OF FINANCIAL RESTRICTIONS Cambodia’s financial system is small, underdeveloped, and subject to government influence. The government has pursued privatization and consolidation since 2000. All 15 commercial banks are private except the Foreign Trade Bank of Cambodia and the Rural Development Bank. Much credit is in the informal sector.

A state-owned firm dominates the insurance sector. There is no stock market. The National Bank of Cambodia, which used to operate as a commercial bank as well as the central bank, is now solely a regulatory and supervisory agency. FREEDOM IN PROPERTY RIGHT Cambodia’s legal system does not protect private property effectively and contains many gaps in company law, bankruptcy, and arbitration. The executive branch usually dominates the legislature and the judiciary. There are frequent problems with inconsistent judicial rulings as well as outright corruption.

The land titling system is not fully functional; most property owners do not have documentation to prove their ownership. FLEXIBLE LABOUR MARKET The labour market operates under relatively flexible employment regulations that could be improved to enhance employment and productivity growth. The non- salary cost of employing a worker is low, but dismissing a redundant employee is relatively costly. The formal labour market is not fully developed, and the rigid labour market runs the risk of creating an arbitrary dual labour. BOTTOM LINE FOR BUSINESS

Differences in political and legal systems present both opportunities and risks for international companies. Understanding differences in culture, politics, and law is the first step for any company that hopes to manage the risks of doing business in unfamiliar environments. Managers of international companies also need to understand how global legal issues, including intellectual property, product safety, and antitrust laws, affect operations and strategy. CONSTRUCTION EQUIPMENT SECTOR IN CAMBODIA Cambodia still using a mixture of labour and capital intensive method in construction industry.

This gives more importance to the labours. Use of labour-based technologies can create between two and four times more employment (mostly unskilled). This technique increases the use of related domestic resources. This consists of available domestic materials, equipment and tools, knowledge and skills, other than local finance. But recently in Cambodia there are some changes in this sector due to the international relations and globalisation. Some of the international companies came in to the country and launches their construction equipment’s in Cambodia.

MAHINDRA &MAHINDRA IN CAMBODIA Mahindra & Mahindra Ltd. , Farm Equipment Sector introduced its tractors in Cambodia in January 2009. The company appointed M/s Mekong Agriculture Tractor Co. Ltd as its distributor for Cambodian market. The Mekong group is one of the most renowned groups in agri-business in Cambodia. The group has extensive sales and service network across the country. Mahindra already entered in Cambodian farm equipment industry. These experiences help the company to introduce new product in the country. MAHINDRA EARTHMASTER BACKHOE LOADER

Mahindra & Mahindra entered the Construction Equipment industry in February 2011 with the launch of the Mahindra EarthMaster Backhoe Loader. Already one of the world’s largest markets, demand for construction equipment is growing in India. Mahindra’s unmatched dealer network makes the EarthMaster available across the country. Mahindra’s strategy team is headquartered in Mumbai and Earth Master Backhoe Loader is manufactured at its state-of-the-art facility Pune(India) Spread 30 acres, the plant uses solar panels and a hydro-pneumatic pumping system to power its advanced robotics with solar energy.

Company’s fully automatic welding unit enables a high level of precision in the construction of the Backhoe Loaders. Company’s current focus is earth-moving equipment, the largest segment of construction equipment in the market. Company confident of making a mark in this fast-growing segment all developing countries in the world. INTRODUCING EARTHMASTER BACKHOE IN COMBODIA Mahindra Earthmaster Bklackhoe is the one of the latest product of Mahindra &Mahindra. The backhoe is a very successful product in India. Introduction of Earthmaster Backhoe easier to Mahindra because.

Mahindra already knows the current condition of Cambodian market and its nature . But for Mahindra this is a new sector that means company should know, what are the current progress of market . COMPETITORS One of the important competitor for Mahindra is JCB. JCB is the world’s number one construction equipment manufacturer. In Cambodia they are marketing different kinds of construction equipment’s like Backhoe Loaders, Telescopic Handlers, Tracked Excavators, Wheeled Loader, Vibratory Single Drum Compactor, Rough Terrain Forklifts etc. JCB marketing their products through RMA Group Cambodia.

Other important competitors are Shantui, John Deere and Dressta. HOW MAHINDRA REDUCE THE COST OF PRODUCTION? Comparing to competitors Mahindra can sell the product more cheaply. Because company already have a tractor production plant in Cambodia. Company only want to make some improvements like new machineries, appointing new engineers and skilled workers. Establishing of a new plant is very expensive and it will take lots of time also Mahindra using their own technology to produce Earthmaster Backhoe Loaders. Most of the spare parts manufacture Mahindra oneself.

At first company want to import the entire spare parts to Cambodian plant. Importing of spare parts also not expensive for Mahindra because its already have their own logistic service. RELATIONSHIP WITH SUPPLIERS Still, Mekong AT Mekong Agriculture Tractor Co Ltd is the distributer of Mahindra tractors in Cambodia. Mahindra maintain good relation with Mekong AT. Through Mekong Agriculture Tractor Co Ltd Mahindra can sell the new product. Because they know the current economical, political and geographical condition of Combodia. If Mahindra going directly to the new segment means company faces lots of risk.

That means Mahindra should spend lots of money for the marketing. But going through joint venture Mahindra can reduce these kinds of expenses. AVAILABILITY OF SPARE PARTS Easy availability of spare parts is one of the important factor in the field of construction equipment. One of the important speciality of construction equipment segment is customers always like to select the original spare parts. Mahindra can easily provide the spare parts all the important places in Cambodia with a tie up of popular automotive suppliers like Ly Sovanna Accessory Shop, Sin Pros, Khem Khan Auto Parts.

ANY TIME CUSTOMER SUPPORT A strong customer support team is essential for to build-up the selling of product. For to achieve this target company need a number of automotive experts. Company can arrange number customer care facilities. FREE CALL CENTRE FACILITY: Customer can use call centre facility any time. The experts give the assistance to the customers 24 hour. USE OF MODERN SATELLITE TECHNOLOGY: Setting of transmitter in the product which connected to the Global Positioning System help to the company track product.

This system connected to all parts of the product including engine. If there any problem arises in product the transmitter send a message automatically to the company. This facility helps the company identify the exact problem of product. This system connects the customer mobile phone device. By this facility company can assist customer. This facility is more reasonable for customers, because customer no need to send a message also. This system should connect all the service centres in the country. This helps experts for easy on site assistance.

ONSITE SERVICE: Establishment of onsite service helps the customers, because it is not necessary to bring the product in to service stations. For this company have to set up service centres all over the country. Availability of service with in a particular time is impotent because in the construction industry a small abruption also creates a loss of plenty of money. SPECIAL OFFERS FOR CONSTRUCTION COMPANIES: Construction companies are the main users of construction equipment. Special offers can give to the construction companies on the basis of number of the product they buy.

Company provide some reduced amount and interest rate. FINANCING FACILITY: Mahindra can provide effective financing facility to individual customers and companies. This helps to the company to increase the profit and also helpful to the customers. Because customers don’t want go for to search an another financial institution for t Introduce new attractive schemes for payments like daily payment. YOU DECIDE: This is a new repayment system; customers can decide their repayment amount on the basis of their income. But should pay monthly a fixed amount. Customer can decide his method of payment like daily or weekly.

In this method of repayment, the interest rate is low. But in this method if customer failed to pay the fixed amount, the interest rate become double. SECOND HAND ASSISTANCE: Company help the customers to sell the second hand product and company provide good service facilities those who buy the second hand goods. This is the one of the way company can increase its reputation. ENHANSINING THE EXPANSION Mahindra already have a strong position in Cambodian tractor industry. But construction equipment industry is different because in agriculture industry company look mainly the individual customers.

But in construction filed company deal with the construction companies. Technology is changing day by day; implementation of latest technology is one of the important challenges for the Mahindra. In future company will to modernise their production plant because the arrival of new machineries new technique of production. Mahindra implementing the advanced robotic technology in Earthmaster. Still company doing some research for the further development of the product. Establishment of more new outlet in different parts of the country is an important marketing technique.

In future company planning to without any joint venture. Direct selling increase the profit because there are no intermediaries on middle. Participation of different social activities like education, health etc. Helpful to increase the status of the company E-MAMAKETING PLAN 1. Advertising in popular websites 2. E-mailing to construction companies and customers . CONCLUSION In conclusion with an effective management Team Company can easily can achieve its target . In the beginning stage the profitability must be little low. 1. MAHINDRA (2012). GLOBAL MARKETING. [ONLINE] Available at: WWW.

MAHINDRA RISE. COM. [Last Accessed 20 JULAY 2012] 2. Asia foundation (e. g. 2011). Business Environment in Cambodia. [ONLINE] Available at: http://asiafoundation. org. [Last Accessed 22 July 2012]. 3. Dictionary (0212). GLOGALISATION. [ONLINE] Available at: www. dictionary. reference. com. [Last Accessed 2 July 2012]. 4. asean. fta (2012). economic condition pf Cambodia. [ONLINE] Available at: http://www. asean. fta. govt. nz. [Last Accessed 23 July 2012]. 5. MAHINDRA (2011). earthmaster. [ONLINE] Available at: WWW. MAHINDRA RISE. COM. [Last Accessed 1 JULY 2012].

Cite this A Report on Mahindra and Mahindra

A Report on Mahindra and Mahindra. (2016, Oct 26). Retrieved from https://graduateway.com/a-report-on-mahindra-and-mahindra/

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