Company profile and strategic analysis.

1. CASE PRESENTATION
ON
Bharat earth movers limited
(bEML)

2. 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

3. 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 PROFILE
headquarters => Bangalore
Manufacturing units[5] => Mysore, Kolar Gold fields (KGF),
Palakkad ,Bangalore & Vignyan Industries(Karnataka)
R & D center => KGF

4. MISSION
IMPROVE 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.
VISION
TO 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.

5. 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.

6. PRODUCTS
BULL DOZERS HYDRAULIC EXCAVATORS DUMP TRUCKS
WHEEL LOADERS ROPE SHOVELS MOTOR GRADER

7. RAILWAY PRODUCTS
RAIL COACHES TRACK LAYING EQUIPMENTS

8. COLLABORATORS
BEML has collaboration with world leaders
such as :-
• KOMATSU – Japan
• INDRESCO MARION – USA
• KOMATSU DRESSER – USA
• OMNIPOL – Czech Republic
• VOEST ALPINE - Australia

9. 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.

10. 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.

11. 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.

12. 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.

13. Porter’s “Five Forces” Strategy

14. 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

15. Porter’s “Five Forces” Strategy
Substitutes
•Substitute product is inferior
•Limited number of substitutes
Rivalry
• Relatively few competitors
• Large industry size
Competitors
• Government Regulations

16. Porter’s Value Chain Analysis
Porter describes the value chain as the internal processes or activities a
company performs “to design, produce, market, deliver and support its
product.” Porter describes two major categories of business activities:
primary activities and support activities.
Primary activities are directly involved in transforming inputs into outputs
and 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.

17. Porter’s Value Chain Analysis
Inbound Logistics
The receiving and warehousing of raw materials
Distribution of raw materials to manufacturing and operations

18. Porter’s Value Chain Analysis
Operations
Process of transforming inputs into finished goods and services

19. Porter’s Value Chain Analysis
Outbound Logistics
Warehousing of finished goods
Distribution of those finished goods to customers or retail stores

20. 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

21. QUESTIONS