DIVERSIFICATION

 

TAK - RO Study
Date: 18/1/89

1. Financial Statistics / Financial Ratios
   Comparison with leading engineering Co’s (PJP has done all of these)
   ✓ Have we grown at 15% compound growth rate envisaged in 1973 Study?
   What else was envisaged / targeted in 1973? How have we performed against those targets?
2. How have INPUTS (RESOURCES) grown during the same period?
• Manpower
• Money / materials
• Fixed Assets / Space
3. How has Sales / Order Booking / Order Backlog of each division grown during SAME period?
   ✓ (SAME period is most important)
4. How has “productivity” of various resources behaved during same period?
   What is the productivity of each resource?

5.
How has our “Manpower-Mix” behaved during the same period? What trends can we see in our trends of ratios of

5. Cov/all staff
6. Cov/Sup.
7. NEU/Ununionized
8. MR/Sup. & above
9. Are we getting Top-Heavy? Is it a deliberate staffing or just outcome of promotions — pressures for vertical movement?
10. Has there been any horizontal/lateral movement at all in L&T? How much? At what level? Is there a job rotation, planned or otherwise? Is it within same function or inter-functional?
11. Is there any “inter-group” mobility?

12. ---

13. 6.
    Training
    From HRD & respective Cost Ale / personnel dept. records, is it possible to find out how many man-hours various levels of employees (Cov to DR) spend in formal training
14. Within L&T (inhouse)
15. Outside courses

16. ---

17. Compare this with IBM / Toyota “corporate classroom”
    (I have loaned this book to DFP — pls. get it back). Let us talk to CMS to find out what statistics (group-wise) can be furnished for last 5 years.

18. ---

19. (Diagram)

Mfg. Process	Product
Gr III	Std. Product, Swstd., L-CON
Gr II	Chemical, Fertilizer, Dairy, Nuclear
	ASLV, PSLV
Gr IV	(blank)

30. ---

31. Mktg networks / distribution channels
32. Markets / end users

33. ---

34. Repeat this matrix vis-a-vis:
35. Mfg. Processes / Technology
36. Types of space
37. One-off / Batch / Mass Production
38. Heavy / Light - mat. Handling
39. Information / Documentation
40. R&D
41. Process Planning

 

1973 Recommendations.

It would be highly desirable to prepare A4 Size typed chart showing against each 1973 recommendations what is the actual position today. If there is deviation, last column

May indicate most probable "reason" for the devation - as you and I Can perceive

Function: PERSONNEL PERSONNEL /MKT/MPG/FIN.

operational

Aspect

Policy

For Plant Personnel (Labour) function, AND is preparing a matrix of Decisions Vs. Level of

✓ decision making. This should be ready by 21/1987

we must update all existing, chants for each group -- org. siZE & prepare. Perhaps PPO with

attempt from on A-4 master booklet. Exec. As may already have. Check of GGMS. otherwise Mgmt. Circular file.

1973 recommendations clearly speltout of CGM/DGM/RM/DM etc. in great Roles details.

It may be worthwhile to prepare Separate questionnaires to elicit responses from each person so designated. what he currently thinks about his 201 or to what extent his "present real-role" confirms to that envisaged in 1973 - on each element /each item.

·Cana statistical Corelation be established between

Reality

self-perceptions

as envisaged perception of others in org.

I have given a folder to AMD containing some cyclistyled forms used for analysing "Incoming communications/Menges' Take a look.

 

A Company - reorganises

To accentuate capitalise on its STRENGTHS

To minimise (overcome on its WEAKNESSES

To make the most of its OPPORTUNITIES

To Squarely face-up to its THREATS

So one of the first things to do would be. for LAT to carry-out a SWOt analysis for L&T - - as its stands at the doorsteps of 1987

How do

- Insiders perceive L&T's SWOT ?

Outsider " “ SWOT ?

We can carry-out swot

By an individual replying to a collective brain-storming questionnaire

By collective brainstorming

Perceptions are found to offer depending upon a person vantage point

How far an employee sees into the future. will also depend upon his vantage point which he has achieved due to both

Seniority / Length of Service

Merit

Riding  Piggyback

 

    

20 Feb 1994

 

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I have, elsewhere mentioned about taking-up “ Direct Mailing “ activity as a business diversification

The more I think about it, the more it appears to have a synergy with our existing business of Executive search

 

There are following similarities in both these businesses :

 

Ø  Building up databases of names / addresses from any number of sources

 

Ø  Sending out MAILERS

 

Ø  Receiving “ response “ – then Categorizing , Coding, Computerizing

 

Ø  Offering databases for clients to “ search and select “ , one or more persons who meet their needs

 

Executives belong to the “ affluent “ class and are potential buyer of goods and services . With liberalization of economy, they are going to be in greater demand and will get progressively better paid. This class will get more & more affluent and will have increasing purchasing power

 

Therefore,

 

This will be a “ sought after “ class by all manufacturers of goods / provider of services

Service Sector itself will grow in a big way.

 

This comprises,

 

Ø  Hotel / Housing

Ø  Tourism

Ø  Hospitals / Health

Ø  Financial Services ( incl. leasing / hire purchase )

Ø  Banking / Mutual Funds

Ø  Courier

Ø  Cable Network ( for TV )

Ø  Telephone / Fax networks ( E Mail / Voice Mail )

Ø  Software

Ø  Transport

Ø  TV ( Star – Zee – MTV etc )

Ø  Education / Publishing Idustry

Ø  Insurance ……….etc

 

The list is huge

 

All the companies engaged in the Service Sector, want to increase their client-base. Obviously, each of these businesses is trying to :

 

Ø  Build-up its own database of clients ( existing / potential )

 

Ø  Reach out to these clients to offer their services

Both are “ continuous “ processes and market-driven

Continuously new clients have to be “ discovered “ and “ new “ services must be offered

 

Hence “ mailing lists “ must grow  all the time and mailers be sent out all the time

 

Many types of client-profile must be compiled ( continuously ). Eg :

 

Ø  Geographical

Ø  Racial

Ø  Social

Ø  Educational

Ø  Age  /  Sex

Ø  Purchasing power

Ø  Travel habits / Purchase habits

 

Each manufacturer / servicer, is interested in one or more profiles who could be his potential clients

We could start by offering to carry out mailing of literature / pamphlets / publicity materials, for a few select companies

 

Of course, we should carefully decide “ which “ companies would be interested in our database – and why . How does it stand to benefit ?

 

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23 Feb 1994

 

Only yesterday there was an advt from a company which said, it printed and dispatched , all within one week, 5.8 lakh Annual Reports !

 

Tata Press perhaps send out 30 lakh in a month !

L&T has 16 lakh share-holders and Reliance has over 28 lakhs

 

Obviously such “ mailing activity “ has to be organized as a FACTORY with,

 

Ø  Storage ( of materials to be mailed )

 

Ø  Machinery to place / insert the material into envelopes / packets, seal the envelope , attach pre-printed labels, frank postage stamp, stack in bundles ( city-wise )

 

City-wise bundling would make it easier for Post Offices to accept such bulk posting

 

If volumes / weighs – as in case of annual reports – are too large, services of couriers / transport contractors must be hired

 

A local city-agent ( a newspaper distributor ? ) would undertake door-to-door delivery in each city / town

 

If large quantity of one/two page newsletters are to be dispatched , an automatic “ paper-folding machine “ ( magazine for holding mailers ), would be required. I am sure such machines are available

 

The entire process should be computerized / conveyorized / automatic to the maximum extent  possible so that minimum number of operators are required.