job analysis l&t

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RESEARCH PROJECT REPORTOn

A study of Job Analysis and its impact on Larsen

and Tourbro

Towards partial fulfillment of

Master of Business Administration (MBA)School of Management, Babu Banarasi Das University,

Lucknow

Guided by Submitted by

(Name of the Guide) (Name of the Student)Session 2012-2013

School of Management

Babu Banarasi Das UniversitySector I, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India

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ACKNOWLEDGEMENT

It gives me pleasure to present this report. This report is out come

of the study on A study of Job Analysis and its impact

on Larsen and Tourbro.I got support from many people without

their help I would not have got success. I wish to record sincere appreciation

and thanks to them.

First of all I would like to thanks Mr. SRINIVASA SASTRY

garu, principal, MALLA REDDY INSTITUTE OF MANAGEMENT for

undertaking this project work.

I am also thankful to N.V.SHARMA, MBA faculty for Human

Resource, Malla Reddy Institute of Management. Who helped me

throughout my study and helped me in analysis and interpretation of data

preparing the final draft.

I am thankful to Mr. J.RAVI KUMAR, head of the department ofmaster of business administration for his encouragement and help

throughout the M.B.A course.

I am very grateful to Mr. V.V.NAIDU, Senior HR Manager for

helping me in various steps and encouraging me for having me an

opportunity to work in their organization on a project.

Finally, I am very thankful to all of my friends whose

cooperation and suggestions have helped me in successful complete of this

project.

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PREFACE

The topic chosen by me for my project is A study of Job

Analysis and its impact on Larsen and Tourbro

In reference to Larsen and Toubro. At present L&Tis market

leader in the Indian market in four wheeler segment.

Today there are various companies coming in Indian and these

certainly will exist a cutthroat competition in these field. I have

chosen a Larsen and Toubro as a topic essence of my project

.today four wheeler consumer due to new manufacturing entrant

has started getting a wide choice while buying one these gave to

considered the facility provided by the four wheeler the price

,mileage , maintenance and service etc. while buying a four

wheeler

A normal customer is quit puzzled and faces for an uneven some

time huge problems in deciding which vehicle to buy. I realized

the problem and decide to take these up as the challenge and

provide answer to as the requirement of The Larsen and Toubro.

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EXECUTIVE SUMMARY

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CONTENT Certificate

Acknowledgement

Preface

Executive Summary

Table of content Page Nos.

Introduction

Company profile

Organization chart

Aims and objectives

Objectives of the study

Research Methodology

Problems and limitations

Findings, Analysis & Interpretations

SWOT/ETOP analysis

Suggestions/Recommendations

Conclusion

Appendix

Bibliography

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Introduction

India is an emerging country with huge potential. The domestic

economy is now growing at around 9-10% per annum and

Indias importance in global terms is being reinforced by rapidly

rising exports and domestic consumption. At a time when

numbers of a slowdown and overheating in the Indian economy

have started gaining momentum, the Indian rupee sprang a

surprise by pushing the GDP figure past the trillion-dollar

(42,00,000 crore) mark.

The automotive industry is at the center of Indias new global

dynamic. The domestic market expanding rapidly as incomes

rise and consumer credit becomes more widely available.

Manufacturers product lines are being continually expanded,

as is the local automotive manufacturing base. Expectation are

high that India can develop as a global hub for vehicle

manufacturers and as an outsourcing center that offers the

global automotive industry solution high up the automotive

value chain.

India eyes 25 million automotive jobs.

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India's GDP is set to double over the next decade

In percentage terms, the automotive industry's

contribution should also double.

In dollar terms, the sector's contribution is set to

quadruple to some $145bn

With the worlds second largest and fastest-growing population,

there is no denying Indias potential in both economic and

population terms and the effect it will have on the auto industry

in the years to come. The country is already off to a good start,

with a well-developed components industry and a production

level of 1 million four-wheeled vehicles a year, plus a further 5

million two- and three-wheelers.

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Historical back ground

In India there are 100 people per vehicle, while this figure is 82 in

China. It is expected that Indian automobile industry will achieve

mass motorization status by 2014.

Since the first car rolled out on the streets of Mumbai (then Bombay) in

1898, the Automobile Industry of India has come a long way. During its

early stages the auto industry was overlooked by the then Government

and the policies were also not favorable. The liberalization policy and

various tax reliefs by the Govt. of India in recent years has made

remarkable impacts on Indian Automobile Industry. Indian auto industry,

which is currently growing at the pace of around 18 % per annum, has

become a hot destination for global auto players like Volvo, General

Motors and Ford. A well developed transportation system plays a key role

in the development of an economy, and India is no exception to it. With

the growth of transportation system the Automotive Industry of India is

also growing at rapid speed, occupying an important place on the 'canvas'

of Indian economy.

Today Indian automotive industry is fully capable of producing various

kinds of vehicles and can be divided into 03 broad categories: Cars, two-

wheelers and heavy vehicles.

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The first automobile in India rolled in 1897 in Bombay.

India is being recognized as potential emerging auto market.

Foreign players are adding to their investments in Indian auto

industry.

Within two-wheelers, motorcycles contribute 80% of the segment size

Unlike the USA, the Indian passenger vehicle market is dominated by

cars (79%).

Larsen and Toubro dominates over 60% of the Indian commercial

vehicle market.

2/3rd of auto component production is consumed directly by OEMs.

India is the largest three-wheeler market in the world.

India is the largest two-wheeler manufacturer in the world.

India is the second largest tractor manufacturer in the world.

India is the fifth largest commercial vehicle manufacturer in the world.

The number one global motorcycle manufacturer is in India.

India is the fourth largest car market in Asia - recently crossed the 1

million mark.

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FOUNDATION - The seeds of what would

mature and become today's L&Tgroup were

laid long years before India became

independent.

CONSOLIDATION - The L&Tgroup ventured

into new areas and built on the foundations,

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in spite of the restraints imposed by a

controlled economy.

LIBRILISATION -The Indian economy

unleashed a period of remarkable growth

for the L&Tgroup, in India and

worldwide.

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FIVE CORE VALUES OF L&T

The L&TGroup has always sought to be a value-driven organization.

These values continue to direct the Groups growth and businesses. The

five core L&Tvalues underpinning the way we do business are:

Integrity: We must conduct our business fairly, with honesty and

transparency. Everything we do must stand the test of public

scrutiny.

Understanding: We must be caring, show respect, compassion

and humanity for our colleagues and customers around the world,

and always work for the benefit of the communities we serve.

Excellence: We must constantly strive to achieve the highest

possible standards in our day-today work and in the quality of the

goods and services we provide.

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Unity: We must work cohesively with our colleagues across the

Group and with our customers and partners around the world,

building strong relationships based on tolerance, understanding and

mutual cooperation.

Responsibility: We must continue to be responsible, sensitive to

the countries, communities and environments in which we work,

always ensuring that what comes from the people goes back to the

people many times over.

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Current Scenario

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The growth of the Indian middle class along with

the growth of the economy over the past few years

has attracted global auto majors to the Indian

market. Moreover, India provides trained

manpower at competitive costs making India a

favored global manufacturing hub. The

attractiveness of the Indian markets on one hand

and the stagnation of the auto sector in markets

such as Europe, US and Japan on the other have

resulted in shifting of new capacities and flow of

capital to the Indian automobile industry. According

to the International Yearbook of Industrial Statistics

2008 released by United Nations Industrial

Development Organization (UNIDO), India ranks

12th in the list of the worlds top 15 automakers.

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GENERAL OVERVIEW

INDIAS LARGEST

BUSSINESS GROUP

DIVERSE BUSSINESS IN 7

SECTOR

INTERNATIONAL INCOME

61%OF GROUP REVENUE

OPERATION IN OVER 80

COUNTRIES

PRODUCT AND SERVICES

EXPORED IN 85 COMPANIES

LARGEST EMPLOYER INPRI VATE

SECTOR OVER 300,000

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GROUP REVENUE FY09 :

251,543 CR/ $62.5 bn

Larsen and Toubro

Larsen and Toubro is Indias largest automobile company. Its

revenue in 2008-2009 was Rs 24,000 crore (U.S.$ 6.4 billion).It is the

leader in commercial vehicles in each segment and the second

largest in the passenger vehicles market ,with winning products in

compact, mid-size car and utility vehicle segment. The company is

the worlds fifth largest medium and heavy commercial vehicle

manufacturer and the worlds second-largest medium and heavy bus

manufacturer. The companys 29,600 employees are guided by the

vision to be best in the manner in which we operate, best in the

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products we deliver and best in our value system and ethics

Established in 1945, Larsen and Toubro presence extends across

the length and breadth of India. Over 3.5 million L&Tvehicles have

driven on Indian roads since the first one rolled out on 1954.The

companys manufacturing base is spread across multiple plants,

supported by a nationwide dealership, sales and services and spare

parts network comprising of about 1,200 touch points. The company

also has a strong auto finance operation, Larsen and Toubro Finance

for supporting customers in purchasing Larsen and Toubro vehicles

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Company profile

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Company profile

INTRODUCTION

Larsen & Toubro Limited (L&T) is a technology, engineering,

construction and manufacturing company. It is one of the largest and most

respected companies in India's private sector. Seven decades of a strong,

customer-focused approach and the continuous quest for world-class quality

have enabled it to attain and sustain leadership in all its major lines of

business. L&T has an international presence, with a global spread of offices.

It continues to grow its overseas manufacturing footprint, with facilities in

China and the Gulf region. The company's businesses are supported by a

wide marketing and distribution network, and have established a reputation for

strong customer support. L&T believes that progress must be achieved in

harmony with the environment. A commitment to community welfare and

environmental protection are an integral part of the corporate vision.

History of Larsen & Turbo

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The evolution of L&T into the country's largest engineering and

construction organization is among the most remarkable success stories in

Indian industry. L&T was founded in Bombay (Mumbai) in 1938 by two

Danish engineers, Henning Holck-Larsen and Soren Kristian Toubro.

Both of them were strongly committed to developing India's engineering

capabilities to meet the demands of industry. Beginning with the import of

machinery from Europe, L&T rapidly took on engineering and construction

assignments of increasing sophistication. Today, the company sets global

engineering benchmarks in terms of scale and complexity.

In 1938, the two friends decided to forgo the comforts of

working in Europe, and started their own operation in India. All they had was a

dream and the courage to dare. Their first office in Mumbai (Bombay) was so

small that only one of the partners could use the office at a time! In the early

years, they represented Danish manufacturers of dairy equipment for a

modest retainer. But with the start of the Second World War in 1939, imports

were restricted, compelling them to start a small work-shop to undertake jobs

and provide service facilities. Germany's invasion of Denmark in 1940 stopped

supplies of Danish products. This crisis forced the partners to stand on their

own feet and innovate. They started manufacturing dairy equipment

indigenously. These products proved to be a success, and L&T came to be

recognised as a reliable fabricator with high standards. The war-time need to

repair and refit ships offered L&T an opportunity, and led to the formation of a

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new company, Hilda Ltd., to handle these operations. L&T also started two

repair and fabrication shops - the Company had begun to expand. Again, the

sudden internment of German engineers (because of the War) who were to

put up a soda ash plant for the Tatas, gave L&T a chance to enter the field of

installation - an area where their capability became well respected.

In 1944, ECC was incorporated. Around then, L&T decided to build a

portfolio of foreign collaborations. By 1945, the Company represented British

manufacturers of equipment used to manufacture products such as

hydrogenated oils, biscuits, soaps and glass. By 1964, L&T had widened its

capabilities to include some of the best technologies in the world. In the

decade that followed, the company grew rapidly, and by 1973 had become

one of the Top-25 Indian companies. Today, L&T is one of India's biggest and

best known industrial organisations with a reputation for technological

excellence, high quality of products and services, and strong customer

orientation. It is also taking steps to grow its international presence.

The L&T vision reflects the collective goal of the company. It was drafted

through a large scale interactive process which engaged employees at every

level, worldwide. L&T has a global presence. A thrust on international business

over the years has seen overseas revenues growing steadily. The company

has manufacturing facilities in India, China, Oman and Saudi Arabia. It has a

global supply network with offices in 10 locations worldwide, including

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Houston, London, Milan, Shanghai, and Seoul. Customers include global

majors in over 30 countries.

Achievements of L&T

Built India's first indigenous hydrocracker reactor.

Built the world's largest continuous catalyst regeneration reactor.

Built the world's biggest fluid catalytic cracking regenerator.

Built the world's longest product splitter.

Built Asia's highest viaduct - Panvalnadi for the Konkan Railway.

Built the world's longest LPG pipeline.

Built the world s longest cross country conveyor.

Key Products of L&T:

Turnkey projects

Hydrocarbon, Power, Cement and allied machineries, Engineering

services, Railway projects,

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Construction

Construction services, Building products, Infrastructure concessions,

Engineering services, International products

Engineered products and systems

Refinery, Oil and gas, Petrochemicals, Fertiliser, Coal gasification,

Aerospace, Thermal power plant, Nuclear power plant, Defence, Cement

Electrical and electronic product and systems

Switchgears, Electrical solutions, Metering systems and relays, Medical

equipment , Control and automation , Petroleum dispensers and systems ,

Tooling solutions

IT and engineering services

IT services, Engineering services, Embedded systems.

Machinery valves and industry consumables

Financial services24


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1. Infrastructure finance

2. Equipment finance

Shipbuilding

Key Competitors of L&T:

NHAI

Nagarjuna Construction

DLF

Gammon India

Hindustan Construction

Mission of L&T:

To compete and grow in a globalised business environment, L&T is

implementing a strategic plan (Lakshya) for 2010-15. The plan has been

drawn up in consulation with a leading international strategy consultant. It

has set ambitious growth target for each business. Create long term value

for the customers through superior product structuring by capitalizing on

our knowledge pool.

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Congruency between Vision, Mission and Core Values:

There is clear accord & harmony among Vision, Mission & Core Values.

1. Core Value: Performance Driven

Vision: Attaining global benchmarks, constantly creating value,

meeting

expectations of employees, stakeholders and society,

total customer

satisfaction, enhancing shareholder value.

Mission: To compete and grow, ambitious target setting for each

sector

2. Core value: Innovation & Excellence

Vision: Indian Multinational, professionally managed,

Entrepreneurial and

empowered team, L&T-ites shall be innovative, shall

foster a culture of

caring, continous learning, high corporate governance

standards &

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constantaly creating value.

Mission: Included are the opportunity of diversifaction, creat

long term value by

setting new standard & through superior product

structuring, capitalizing,

on our knowledge pool & consulation with the leading

international

strategy consultant

3. Core Value: Integrity

Vision : Enterpreneurial and empowered team, proffessionaly

managed and

committed, foster a culture of caring, trust (show

uprightness and honesty

as an important part of integrity).

Mission: Capitalizing on our knowledge

4. Core value : Customer Focus & Mutual Respect

Vision: Customer satisfaction, enhancing shareholder value,

fostering a culture of

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caring, trust, meeting expectation of society, employees

and shareholders

Mission: Create long term value for our customer through

superior product

structuring, partnering our customer by offering

solutions, deep

understanding of Indian sector and full range of

financial products.

Vision of L&T:

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PESTEL Analysis

1. Political Factors:

(i) SEZ Act to Boost infrastructural Development

SEZ is the new destination for real investor. Currently 150 SEZs

are approved out of 85 SEZs are in the IT/ITES area and the 10-

15 SEZs in the electronics area. 130 SEZs are developed by real

estate developers which constitute of about 50% of the total SEZ

area. IT SEZ should be developed and made operational within

the period of six months from the date of notification. Thus, 130

approved SEZ would result in investment of US$ 12bn

immediately.

(ii) Cement Prices Reduced for State Infrastructure Projects:

The continued thrust on the infrastructure development will

provide impetus to the healthy growth in demand, protecting the

bottom-line of cement companies to an extent. The reduction in

the CST and in Freight rates on diesel and limestone will be

marginally positive for some companies.

(iii) FDI Liberalization to Augment Industry Growth:

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Recent amendments by the government have made accessibility

to the required capital much easier. Opening of FDI in

construction and allowing developers to raise capital in

international market has led to development of larger projects

benchmarked against international standard.

(iv) REITs(Real Estate investment trusts) to Positively affect real

Estate Business

The proposed introduction of REMF(Real Estate Mutual Fund)

and REIT will boost real estate investment from the small

investors point of view. This will allow small investors to enter

real estate market with the contribution as less than Rs 10,000.

The concept of REIT is on the verge of entering India and would

be structured as company dedicated to owing and in most cases

operating income producing real estate such apartments,

shopping centres, offices & warehouses.

2. ECONOMIC FACTORS:

(i) Growth in Construction Activity Stimulating GDP Growth:

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India is witnessing tremendous growth & expansion of

construction activities and construction is largest component of

GDP. It has been growing at a rate over 10% in the past few

years when GDP growth is around 8%. Within construction;

sector such as roads, railways, housing and power have been

keen drivers.

(ii) Rate Hikes Unlikely to Slow down Growth:

It has been analysed that the residential prices has been

increased by about 15-20% on average in the last one year.

There has been strong growth in demand supported by rising

disposable incomes, low interest rates, and fiscal incentives on

both interest and principal payment and increasing urbanization.

3. SOCIAL FACTORS :

(i) Shifting Consumption Pattern to Fuel industry Growth

The consumption pattern of Indian households is undergoing a

gradual, but steady change. The share of food and beverages,

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which used to constitute almost 50% of household spend until

2003 is fall to 45% by FY08. We expect the share of discretionary

items to consistently rise given the rising affordability and

changing aspiration levels. Increased exposure to western

lifestyle has altered the consumption pattern of Indian people.

(ii) Rising Urbanization to Boost Industrial Growth:

Urban infrastructure consist of drinking water, sanitation, sewage

systems, electricity and gas distribution, urban transport, primary

health services, and environmental regulation. Many of these

services are in the nature of local public goods with the benefits

from improved urban infrastructure. The urban population in India

will grow by 85 million over the next 10years.

(iii) Green Building in India:

The green building movement has gained tremendous

momentum during 3 to 4 years, ever since the Green Business

centre embarked on achieving the prestigious LEED rating for

their own centre at Hyderabad. The Platinum rating for green

building has sensitized the stakeholders of construction industry.

There is tremendous potential for construction of green building

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in India. The estimated market potential for green building will be

about $ 400 million in 2010.

4. TECHNOLOGICAL FACTORS:

(i) Low Technology Adoption to Hinder Growth:

The poor state of technology adopted by the construction sector

adversely affects its performance. Upgrading of technology is

required both in the manufacturing of construction material and in

construction activities. As a large number of construction

materials are manufactured in the unorganised sector, effective

monitoring and regulation of the production of these material to

ensure proper quality become difficult. Use of low grade

technology in the construction sector lead to low value addition

and low productivity, apart from poor or substandard quality of

construction and time overruns in projects.

(ii) Construction As Per Indian Requirements:

The construction needs to be done as per Indian standards and

requirements which will demand considerable changes from the

international requirements. The Infrastructure requirements of

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India are much different as the population spread, increasing

urbanization, increasing slums, the small space for roads, the

water problems are more.

(iii) Ready-Mix-Concrete being Experienced With:

The Ready mix concrete business in India is in its infancy. For

example, 70% of cement produced in a developed country like

Japan is used ready mix concrete business there. Here in India,

Ready Mix concrete business uses around 2% of total cement

production. The increasing use of ready mix not only saves time

but also improves quality.

5. ENVIORMENTAL FACTORS:

Technological solutions helps in integrating the supply chain,

hence reduce losses and increase profitability

With the entry of global companies into the Indian market,

advanced technologies, are used in engineering &

Construction.

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With the development or evolution of infrastructure sector,

many of the MNC enter into Indian market

Environmental situation affect the infrastructure sector.

Infrastructure such as roads and bridges affect the many

sector such as automobile sector etc.

LEGAL FACTORS

Ensure a balanced transition to open trade at minimal risk to the

Indian economy and local industry.

Indian government infrastructure policy aimed at promoting an

integrated, phased and conductive growth of the Indian

infrastructure sector.

Confirms the governments intention on harmonizing the regulatory

standards with the rest of the world

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Establish an international hub for engineering & construction

companies so that new technology can be used.

Legal provisions relating to safety measures

Business Strategy of Larsen & Turbo Ltd.

Strategic Vision:

To stimulate the active learning of rigorous engineering principles and

practices within an environment informed by internationally-leading

research this fosters creativity, innovation and professionalism.

1. Growth Strategies:

In a challenging market environment, an environment characterised

by prolonged downturn in the domestic industrial sector and a

recession in the global market, an engineering company like L&T

had to follow some crucial strategies for growth. General practices

would be to reduce costs, go into hibernation and wait till the climate

becomes more conducive. Move in aggressively thereafter. There is

certainly no single sure-fire recipe guaranteeing both survival and

growth in a challenging market. According to Mr P.M. Mehta, Senior

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Vice-President (Operations), L&T is concentrating on hi-tech areas,

vacating non-remunerative product lines and focusing on the

exports market. The company is currently following a multi-pronged

strategy for beating recession without compromising growth. Three

years ago the company had visualised opportunities shrinking in the

traditional sectors, process plants, power and refineries. It was

then that the management really took a decision to move into the hi-

tech sector.

The company, which had a small presence in the

defence sector earlier, started moving in aggressively after the

sector was opened up to the private sector. L&T developed

technology for manufacturing critical equipment for process, nuclear

and defence sectors. It is currently looking at entering into joint

collaboration with defence companies in various parts of the world. It

is also in talks with leading aircraft manufacturers in India and

abroad for supplying components. Defence orders are generally

spread across four to six years. A submarine, for instance, would

take 12 years for completion.

The defence division could contribute Rs 1,500 to

2,000 crore five years down the line which would be almost five

times the current contribution. Recently the company signed a joint

venture with EADS Defence and Security, for defence electronics in

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India. The 5.7 billion (Rs37, 791 crore) EADS Defence and Security

is a systems solutions provider for armed forces and civil security.

2. Risk Management Strategy:

Doing business within India remains paramount. Vision is to

become an Indian multinational not just another multinational.

Showing a long term commitment to consolidating presence in

select geographies through setting up of offices, entering into

alliance with collaborators, developing marketing networks, brand

promotion and wherever feasible, setting up manufacturing

facility.

Investment made in the Middle East for training of workmen.

Building a motivated and globally benchmarked team of

professionals through providing a fast track career growth, up

gradation of compensation structure, setting up a Project

Management Institute, conducting Companywide people

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engagement & leadership development programmes,

international assignments and hiring Expats.

Institutionalised a risk management culture and framework in the

Company

3. Future Strategy :

A blueprint for the next phase of growth till 2015, named Vision

2015, at Larsen and Toubro Ltd is being drafted. The company is

planning to focus on segments traditionally dominated by foreign

defence equipment makers and state-owned companies. Since

2000, L&T has charted two five-year plans to reposition the

company which was heavily into engineering, procurement and

construction segments with a large exposure to commodity

businesses, such as cement and ready-mix concrete, to a more

focused value-added engineering company.

The first plan was devised by Boston Consulting Group, a

leading global management consulting firm. It saw L&T divesting its

cement business in favour of the Aditya Birla Group. This was done

through a unique arrangement with L&T employees getting shares of40


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their own company following the divestment. More recently, L&T

divested its ready-mix concrete business in favour of Lafarge SA.

The two five-year plans paid huge dividends to the shareholders of

the company including its employees who hold a 12.7% stake in it

through a trust. The market capitalization of L&T was Rs15, 507

crore in January 2000. It soared to Rs1.31 trillion at the height of the

bull rally in January 2008.

L&T s recent moves such as signing a

slew of pacts with nuclear engineering firms such as

Westinghouse of USA, Atomic Energy Commission of Canada

and Russia s Atoms troy export for nuclear plants, an entry

into nuclear equipment forging, defence shipbuilding and the

latest joint venture make it clear that L&T is focusing more on

its core competencies. Its power business is also taking shape

with 11 new factories making various parts of power equipment. The

highly skilled areas of engineering that L&T is entering are currently

largely serviced by imports. The operating margins are currently at

8-9% and the new areas it is entering could fetch margins of about

11-12%.

The company also hopes that the nuclear program will be in place

once the new government assumes power. By signing pacts with

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three companies in the nuclear energy space, L&T has hedged its

risks as a nuclear equipment maker.

It has put in place a nuclear equipment

forging shop in Hazira in Gujarat at an investment of Rs1, 500 crore.

This is in addition to a defence shipbuilding yard near Chennai at a

cost of Rs1, 500 crore. As per plan, the company will create three

operating companies to look after defence, aerospace and nuclear

power sectors for effective operations. The three operating

companies could happen in 2012-13, provided they had the requisite

volumes.

Porter Five Forces Model:

1. Threat of New Entrants:

Low threat of new entrant due to

Economies of scale

Labour Intensity

High Capital Requirement

Lack of Knowledge and Experience

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Acess to input

Access to maket

2. Suppliers Bargaining Power:

High Bargaining power of supplier. Suppliers of construction

materials are fragmented and are extremely critical for this industry

since most of the construction work is outsourced. Proper supply

chain management is a costly yet critical need.

3. Buyers Bargaining Power

The Bargaining power of buyer is low/moderate. Buyers in

Engineering & construction sector have less choice due to limited

number of players. The market forces havent empowered the

buyers to a large extent.

4. Industry Rivalry: The industry rivalry is high. This instinct of the

industry is primarily driven by the technical capabilities acquired over

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years of gestation under the technical collaboration with international

players and the completion of project on time.

5. Substitute: There is no perfect substitute to this industry. It will be

effected only when the country is fully developed than the company

need to look forward towards the emerging economies.

SOWT ANALYSIS:

Strengths

Larsen and Toubro (L&T) is India's largest engineering and

construction company.

It has created international presence by operating supply network

offices in 10 locations worldwide, including Houston, London, Milan,

Shanghai and Seoul.

L&T has created a strong brand name by building worlds largest

Tubular Reactor for a petrochemical plant and has also built world's

longest Product Splitter and longest LPG pipeline.

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Larsen and Toubro's order book has reported continuous growth.

The company has a strong pipeline of projects in domestic as well

as international markets, which is likely to ensure a steady revenue

growth

Weaknesses

In spite of having a diversified expertise, the revenues of the

company are highly concentrated

Opportunities

The company has acquired the switchgear business of TAMCO

Corporate Holdings of Malaysia in April 2008

With TAMCO the company will be able to offer a comprehensive

range of MV switchgear and become a significant player in the MV

segment in India

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L&T has also entered into various joint ventures in the recent past.

L&T has joint venture agreement with Tamil Nadu Industrial

Development Corporation Limited, Mitsubishi Heavy Industries and

A.A. Turki Contracting & Trading Corporation (ATCO) of the

Kingdom of Saudi Arabia.

These joint ventures boost and strengthen the operational

efficiency of the company, as well as provide it with avenues to

generate additional revenues and also leverage its strong presence

in order to exploit the growing capital goods and infrastructure

industry

Growing Indian capital goods and infrastructure industry as the

government has planned a series of measures to encourage private

sector participation and increase spending on infrastructure.

Capacities are being ramped up in Railways, Roads, Ports, Airports

and Urban infrastructure to sustain the momentum of double digit

growth in the industrial sector.

Threats

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Larsen & Toubro faces stiff competition in the international market

with construction majors in the Middle East including ABB of

Sweden and Bechtel of the US. Stiff competition could erode the

company's market share and reduce its profitability.

Engineering and construction companies such as Larsen & Toubro

(L&T) are facing pressure on their earnings due to the high interest

rates on working capital. L&T's interest costs increased more than

three-fold in the first six months of FY2009, which would impact its

profit before tax (PBT). Rising interest rates would put pressure on

the margins of the company

PROBLEM DEFINATION

Consumer says something and does something. There are many

companies manufacturing motorcycles into the market, at the same time

as there are many companies manufacturing motorcycles, idea about

thinking of customer on whether, what, how, and for whom to purchase the

CAR.

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Therefore, research is required to measure present consumer

buying behavior at the purchase of L&Tcars. So the researcher problem is

to identify what are the criteria that prospective customer takes into

consideration before buying the cars.

SCOPE OF STUDY

(1) The main scope of the study is depend to consumer response

(2) It also analysis the benefits accruing to the company as a result of

those service.

(3) This study has been made to find the level of satisfaction the

Customer has regarding the service provider by car place.

Limitations of study

(1) When the buyers are busy we cant get accurate data

from them.

(2) According to the time limit of our project we can cover

only the some area.

OBJECTIVES OF STUDY

(1) To know market position of Larsen and Toubroin the market.

(2) To know consumer behavior for purchase of four wheeler.

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Research methodology

Research Methodology: The data for the project was collected from

malls, customers at showrooms, markets and from public also.

Sample Size: Sample size of 60 was taken based on convenient Simple

Random Sampling.

Research Tools: The data was collected through Survey Questionnaire

Method.

Data Collection: Data was collected through the following:-

Primary sources: Questionnaire from General public

Secondary Sources: Magazines, newspapers, Internet.

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ANALYSIS

Sample size 40

Respondents:

Owners of Santro 9

Owners of Zen estilo 8

Owners of Indica 18

Owners of other cars 5

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Q3) Are you satisfied with it?

A) Yes b) No

From that it was found that:-

25 were satisfied and

15 were not.

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Q5) How much do you spend on

maintenance on a monthly basis?

a) 4000

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25 %spends below 2000

10% spends between 2000-

4000

5 %spends above 4000

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(6) Sample of 30 customers, according

to their income.

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(9)Are you planning to buy a vehicles

within next session?


29 people want to purchase within 1 year

11 people want to purchase in 1 month

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(10)Factors affecting buying of customers

Power

steering

7

Mileage 15Price 10Others 8

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FINDINGS & SUGESSTIONS

FINDINGS

Majority of the customers see LARSEN AND

TOUBRO with savings.

Most of the customers spend large sum of

money.

Out of the samples, people are highly

convinced that LARSEN AND TOUBRO will yield

them better results.

Product will have a gradual progress. Because

most industries would wait for the response

about the product from other Company.

Customers were educated by me, about fuel

efficient cars by LARSEN AND TOUBRO.

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SUGGESTIONS

Based on the findings from the analysis the following suggestions could

be made:

Demo of the product should be made available to Customers, since

most of the purchase decisions are based on it.

Technical details should be made available to the customers in the

most accurate numerical form.

The Indica has remained a bestseller throughout in the industry

figuring in the top 3 selling list of cars for most of the years.

The distribution channel should be more efficient to cater the

demand during peak seasons like during dassraa, diwali etc .

The city is mostly dominated by the working class like people employed in

high court, AG office( accountant general office) and government school

employees who this year are getting more pay due to the

recommendations made by the pay commission so , the sales for mid size

car can be enhanced in this scenario.

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SWOT Analysis - Larsen and Toubro Limited

SWOT Strengths, Weaknesses, Opportunities, Threat

The internationalization strategy so far has been to keep local

managers in new acquisitions, and to only transplant a couple of senior

managers from India into the new market. The benefit is that L&Thas

been able to exchange expertise. For example after the Daewoo

acquisition the Indian company leaned work discipline and how to get

the final product 'right first time.'

The company has a strategy in place for the next stage of its

expansion. Not only is it focusing upon new products and acquisitions,

but it also has a program me of intensive management development in

place in order to establish its leaders for tomorrow

The company has had a successful alliance with Italian mass producer

Fiat since 2007.This has enhanced the product portfolio for L&Tand

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Fiat in terms of production and knowledge exchange. For example, the

Fiat Palio Style was launched by L&Tin 2008, and the companies have

an agreement to build a pick-up targeted at Central and South

America.

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The company's passenger car products are based upon 3rd and 4th

generation platforms, which put Larsen and Toubro Limited at a

disadvantage with competing car manufacturers.

Despite buying the Jaguar and Land Rover brands (see

opportunities below); Tat has not got a foothold in the luxury car

segment in its domestic, Indian market. Is the brand associated with

commercial vehicles and low-cost passenger cars to the extent that

it has isolated itself from lucrative segments in a more aspiring

India?

One weakness which is often not recognised is that in English the

word 'tat' means rubbish. Would the brand sensitive British

consumer ever buy into such a brand? Maybe not, but they would

buy into Fiat, Jaguar and Land Rover.

The CV segment is becoming highly competitive by new player like

Volvo, and rival M&M are coming with new products to cater the

L&Tin the market as the rural area has given thumps up to M&M

during this year.

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The new global track platform is about to be launched from its Korean

(previously Daewoo) plant. Again, at a time when the World is looking

for environmentally friendly transport alternatives, is now the right time

to move into this segment? The answer to this question (and the one

above) is that new and emerging industrial nations such as India,

South Korea and China will have a thirst for low-cost passenger and

commercial vehicles. These are the opportunities. However the

company has put in place a very proactive Corporate Social

Responsibility (CSR) committee to address potential strategies that will

make operations more sustainable.

The range of Super Milo fuel efficient buses are powered by super-

efficient, eco-friendly engines. The bus has optional organic clutch with

booster assist and better air intakes that will reduce fuel consumption

by up to 10%.

Nano is the cheapest car in the World - retailing at little more than a

motorbike. Whilst the World is getting ready for greener alternatives to

gas-guzzlers, is the Nano the answer in terms of concept or brand?

Incidentally, the new Land Rover and Jaguar models will cost up to 85

times more than a standard Nano!

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In the summer of 2008 L&TMotor's announced that it had successfully

purchased the Land Rover and Jaguar brands from Ford Motors for UK

2.3 million. Two of the World's luxury car brand have been added to

its portfolio of brands, and will undoubtedly off the company the chance

to market vehicles in the luxury segments.

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Other competing car manufacturers have been in the passenger car

business for 40, 50 or more years. Therefore Larsen and Toubro

Limited has to catch up in terms of quality and lean production

Sustainability and environmentalism could mean extra costs for this

low-cost producer. This could impact its underpinning competitive

advantage. Obviously, as L&Tglobalizes and buys into other brands

this problem could be alleviated.

Since the company has focused upon the commercial and small

vehicle segments, it has left itself open to competition from overseas

companies for the emerging Indian luxury segments. For example

ICICI bank and DaimlerChrysler have invested in a new Pune based

plant which will build 5000 new Mercedes-Benz per annum. Other

players developing luxury cars targeted at the Indian market include

Ford, Honda and Toyota. In fact the entire Indian market has become a

target for other global competitors including Mahindra and Mahindra,

Maruti Udyog, General Motors, Ford and others

Rising prices in the global economy could pose a threat to Larsen and

Toubro Limited on a couple of fronts. The price of steel and aluminum

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is increasing putting pressure on the costs of production. Many of

Tata's products run on Diesel fuel which is becoming expensive

globally and within its traditional home market.

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ANNEXURES

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Questionnaire

1. WHAT IS YOUR SALARY?

1 LAC 1 LAKH -3 LAKH 3LAKH-

5LAKH 5LAKH

2. WHICH VEHICLE DO YOU OWN?

_______________________________________________________________________

_______________

3. DID YOU RIDE SOME OTHER VEHICLE BEFORE THIS?

YES NO

4. WHAT IS YOUR EXPERIENCE FROM THE PREVOIUS VEHICLE?

SATISFIED NOT SATISFIED

5. WHICH IS THE MOST ESSENTIAL THING YOU PREFER WHILE

BYING VEHICLE?

PRICE MILEAGE POWER

STEERING OTHERS

6. DOES TV AD APPEAL YOU?

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YES NO

7. DO YOU LIKE TV PROGRAMMES ON L?

YES NO

8. DOES BRAND VALUE AFFECT YOUR DECISION ON BUYING

VEHICLE?

YES NO

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BIBLIOGRAPHY

Books:

1. Philip Kotler, Kevin Keller (2009),

Marketing Management (Thirteenth Edition)

2. Marketing Management, The McGraw.Hill

Company Rajan Saxena (Third Edition)

MAGAZINES:

A) OUTLOOK BUSINESS (FEB, 2009)

B) BUSINESS STANDARD (April-July 2009)

C) 4PS OF BUSINESS AND MARKETING (June 2009)

D) BUSINESS TODAY - Pick and Choose

INTERNET:

1. Larsen and Toubro' Official Website

2. Wiki - Larsen and Toubro Ltd

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