Maruti Suzuki India-SWOT Analysis-Project Report

<h1>Project Report on Maruti Suzuki India-SWOT Analysis Assignment Writing Help

SWOT ANALYSIS

Maruti Suzuki India (MSIL), a subsidiary of Suzuki Motor, manufactures and distributes motor vehicles and spare parts. The company's product suite consists of luxury cars, sports utility vehicles and multi-purpose vehicles. MSIL is India's largest passenger car company, accounting for about 38.4% of the Indian passenger vehicle market. A strong market position gives the company significant bargaining power and provides it with benefits of economies of scale. However, increasing competition would adversely impact the company's market share and profitability.

Strengths

Strong domestic player

MSIL, a subsidiary of Suzuki Motor (SMC) of Japan, is India's largest passenger car company, accounting for over 38.4% of the Indian passenger vehicle market. MSIL is the only Indian company to have crossed the 10 million sales mark since its inception. In FY2012, the company sold over 1.13 million vehicles including 127,379 units of exports. The company offers 15 brands and over 150 variants ranging from entry-level cars such as Maruti 800 and Alto 800 and Alto K10; family cars such as Ritz, A star, Swift, Wagon R, Estilo and Eeco; off-roaders such as Gypsy; luxury cars such as SX4, Swift DZire and Kizashi; and sports utility vehicle such as Grand Vitara. The company’s premium small car A-star with low CO2 emission was the single largest selling model and its cumulative sales crossed the milestone of 300,000 units.

Since its launch in 1983, Maruti 800 was the best selling car till 2004. The Maruti Suzuki Alto then followed as the largest selling car in India. Additionally, MSIL exports entry-level models across the globe to over 120 countries in Latin America, Africa, South East Asia and Oceana. Thus, a strong market position gives the company significant bargaining power and benefits it with the economies of scale. In addition, it also enhances the company's brand image and provides an edge over its competitors.

Robust brand image

The company has built up a strong brand image over the years. During the year, the company received reputed awards and accolades for its products and services from independent expert groups, media houses and research agencies. For instance, in FY2012, for the 12th consecutive time, MSIL was ranked the highest in JD Power Asia Pacific 2012 India Customer Service Index (CSI) study. In addition, according to a survey conducted by JD Power Sales Service Index (SSI) study, MSIL was ranked the highest in customer satisfaction with dealer service for a 13th consecutive year, with a score of 879 points.

Therefore, strong brand image makes the company's entry into new markets easier and increases the customer base which further helps in boosting the overall sales.

Extensive distribution network
MSIL has an extensive distribution network in India. It has a strong sales and service network in the country. In FY2012, the company had a sales network of 1,100 dealerships across 801 towns and cities in India. In addition, it provides service support to customers at 2,958 workshops spread over 1,408 towns and cities of India. The company has the highest presence in terms of district coverage at 82%. MSIL is the only passenger vehicle manufacturer to achieve more than one thousand sales outlets in India. Furthermore, the company is planning to expand the number of dealerships to 1,500 by 2015.

Therefore, strong distribution network enables MSIL to tap the growing demands in metropolitan cities as well as fast growing small cities in India, which in turn enables the company to improve its sales and to strengthen its market position in the high growth Indian automotive market.

Strong parent backing

MSIL is a majority owned subsidiary of Suzuki Motor (SMC), a Japan-based company, engaged in the manufacturing and marketing of motorcycles, automobiles, marine and power products, motorized wheelchairs, electro senior vehicles, and houses. SMC is a pioneer and market leader in small car
 manufacturing segment in Japan. Its mini car section rolled out innovative yet economical passenger
car for the masses.The company has high brand recognition and operates in more than 190 countries
across the world.

Brand recognition allows SMC to charge premium prices than its competitors and thus register relatively higher margins. Hence, SMC's strong brand image gives MSIL a significant competitive advantage and helps it to register higher sales growth in domestic, as well as in international markets.

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Source-Data Monitor (2013)-Maruti Suzuki India

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SWOT Analysis- Nike Inc-Assignment on Footwear

SWOT Analysis- Nike Inc-Assignment Writing Help on Footwear

Case Study on Nike-SWOT Analysis Coursework Help

SWOT ANALYSIS

NIKE, Inc. (Nike or ‘the company’) is a leading designer, marketer and distributor of athletic footwear, apparel, equipment and accessories for a range of sports and fitness activities.The company enjoys a strong market position in most of its product segments. Widening product lines coupled with strong marketing and innovation has contributed to Nike's rising market share in the global footwear market. However, intense competition could affect Nike’s market share.

Source- Source-Data monitor (2013)-SWOT Analysis of Nike Inc

Robust market position bolstered by strong brand equity

Nike is one of the leading players in the global athletic footwear and apparels market. The company enjoys a strong market position in most of its product segments. Widening product lines coupled with strong marketing and innovation have contributed to Nike's rising market share from almost 14% in 2006 to around 16% in 2009. In addition to the robust market position, the company has built strong brand equity over the years. According to a leading global branding consultancy firm, in 2011, Nike was ranked 25th overall with its brand value increasing 6% year-on-year to $14,528 million. The robust market position coupled with strong brand equity imparts significant competitive edge to Nike in terms of scale and recognition, which in turn augers well for the company's expansion plans.

Competent technical innovation in products enhancing Nike's competitive advantage and brand
equity

Continued emphasis on technical innovations in the design of footwear, apparel, and athletic equipment has been the key for Nike's leadership position in the athletics footwear and apparel market.The company employs own staff specialists in the areas of biomechanics, chemistry, exercise physiology, engineering, industrial design, and related fields, for the development of products best suited to athletic needs. Nike also utilizes research committees and advisory boards made up of athletes, coaches, trainers, equipment managers, orthopedists, podiatrists, and other experts for consultations on designs, materials, and concepts for product improvement. Furthermore, the company employs the services of athletes, either employed with the company or engaged under sports marketing contracts, to evaluate products during the design and development process.

Additionally, the company collaborates with other companies in order to design new products. For instance, the company launched Nike+ GPS App on the App Store in 2010. The new Nike+ GPS App includes several features which allow runners to use their iPhone to map every run while tracking pace, distance, time and calories-burned. It also provides instant feedback during and after each run from athletes including Paula Radcliffe. Earlier, Nike partnered with Apple to develop a shoe with embedded chip that communicates data on speed and distance covered to the runner's iPod. The popularity and customer penetration of iPods and other mobile devices that runners often use during exercise showcases Nike's competency in innovative product design. Increased emphasis on R&D and innovation enables Nike to cater to changing preferences and requirements with ease, which in turn enhances the company’s competitive advantage and brand equity.

Broad distribution network

Nike offers its products through a wide distribution channel across the globe. In the US, the company distributes footwear through its distribution centers located in Tennessee and Memphis. Nike distributes apparel and equipment from centers located in Memphis, Tennessee and Foothill ranch, and California. Cole Haan products are distributed primarily from Greenland, New Hampshire, and Converse and Hurley products are shipped primarily from Ontario, California.

The distribution channel of the company comprises 384 retail outlets across the US. Of these 156 are Nike factory stores which carry primarily overstock and closeout merchandise, 28 Nike in-line stores including Nike Towns which are designed to shelf Nike branded products and employee-only stores. Also, the company operates 109 Cole Haan stores, 62 Converse factory stores, and 29 Hurely stores in the US. Internationally, Nike offers its products through Nike-owned retail stores and through a mix of independent distributors and licensees. International branch offices and subsidiaries of Nike are located in Argentina, Australia, Austria, Belgium, Bermuda, Brazil, Canada, Chile, China, Croatia, Cyprus, the Czech Republic, Denmark, Finland, France.The company operates 16 distribution centers outside of the US. In international markets, the company offers its products through 308 Nike factory stores, 65 Nike in-line stores including Nike Towns and Nike employee-only stores. Additionally, the company operates 69 Cole Haan stores. Thus, the wide distribution channel helps in on-time delivery of the products across the countries, which in turn, helps Nike in managing its inventories in a better way.

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Sri Lankan Tea Industry-Case Study

An overview of the Sri Lankan Tea industry -an exploratory case study

Research Paper Writing Help in an exploratory case study- Sri Lanka Tea industry

The tea industry is of paramount importance to Sri Lanka’s economy. This industry also forms a significant part of British history and is still central to British culture and tradition. Using the Sri Lanka-UK relationship, this paper explores the declining competitiveness of Sri Lanka’s tea industry as an example of shifting competitive advantage in agribusiness. Increasing competition from countries such as Kenya, India and Indonesia has resulted in reduced market share and low prices in the international market. This paper identifies the shortcomings in the existing market strategies used by Sri Lanka and explores options available for such commodity producers to become globally more competitive through means other than just increased volumes and low prices.

The general long-term trend in tea prices has been downward since 1954 except for odd periods of increase which have not been sustained. Willsmer (1982) suggests that the demand for tea, at least in the main consuming countries, is relatively inelastic. Thus, increases in the quantity of tea entering world trade have been subject to more than proportionate falls in price. However in 2004, the Food and Agriculture Organisation’s composite price, as a world price indicator for tea, increased by 2%. Prices in 2004 opened
at US$ 1.56 per kg in January and closed at US$ 1.73 per kg in December (Kasturisinghe 2005).

World tea production continued to reach new highs in 2004 with output growing by 2% to reach an estimated 3.2 million tonnes. The expansion was due mainly to the increases recorded in Turkey, China, Kenya, Malawi, Sri Lanka and Indonesia (Kasturisinghe 2005).

World tea exports increased by 4.4% in 2004 to 1.47 million tonnes with all major exporters registering a rise, according to a report released ahead of the meeting of the IGG on Tea in Bali in July 2005. Sri Lanka is expected to increase exports by 1.2% annually to reach 330,000 tonnes by 2014 and continue to account for 25% of the global total (The Island 2005).

The importance of the tea industry to Sri Lanka

The Sri Lankan tea industry is of paramount importance to the country’s economy. It contributes about 13% to the total export earnings of the country and is the highest net foreign exchange generator. In 2004, tea accounted for 13% of Sri Lanka’s merchandise exports and earned US$ 810 million. Tea is the third largest agricultural industry in Sri Lanka and represented 2% of overall GDP in 2005. The industry also generates direct and indirect employment for over 1 million people (Central Bank of Sri Lanka 2005; SLTB
2005a)

The global position

Sri Lanka is the world’s second largest tea exporter with a 19.2 percent global export market share in 2005. In 2004 Kenya, which produces mainly CTC1 tea surpassed Sri Lanka as the largest exporter, and held 22.5 percent of the global export market in 2005. Total world production in 2004 was 3.2 million tonnes with Sri Lanka’s share as the fourth largest producer being 10%. About 44% of world production is CTC tea and 31% Orthodox tea, with green tea making up the balance. Sri Lanka competes mainly in the
orthodox tea market where it has a 32% market share and is the leading producer (SLTB 2005a).

Ceylon tea

Sri Lanka produces tea throughout the year. The six regions (Nuwara Eliya, Uda Pussellawa, Uva, Dimbulla, Ruhuna, Kandy) of differing agro-climatic conditions in the country offer a range of diversified speciality teas to suit a range of consumer tastes and lifestyles. The growing areas are mainly concentrated in the central highlands and southern inland areas of the island nurtured by excellent basic factor conditions for tea  production. These areas are broadly grouped under three elevations, with “high growns” ranging from 1200m upwards, “medium growns” covering between 600m to 1200m and “low growns” from sea level up to 600m. Teas grown in these elevations are different from one another in their liquoring properties and the appearance of leaf. The diversity in specialities has been the power and strength of the tea industry in Sri Lanka. Like other food and beverage categories (Poole, Martinez & Gimenez 2007), the tea “category” need not be regarded as a commodity, but as a range of distinct products amenable to differentiation in the market. This diversity is not exploited adequately to its advantage.

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Credit Risk Models for Managing Bank's Agricultural Loan Portfolio

Project Report on Credit Risk Models for Managing Bank’s Agricultural Loan Portfolio

PhD Thesis on Credit Risk Models for Managing Bank’s Agricultural Loan Portfolio

A rapid growth in the rural economy and within that of agriculture in India is highly feasible provided key ingredients such as adequate supply of credit and the availability of the tools for the management of risks that agriculture is exposed to are religiously followed.

Farm level surveys have indicated that the most frequently cited risks are price, crop/weather and health. These risks among others could lower farmers’ anticipated income and have negative effects on their   standard of living, ability to provide for themselves and their families, ability to build capital and hence, their inherent creditworthiness. In order to sustain credit disbursement to agricultural farmers, public sector banks in India should be able to ease risk arising from credit exposure in agriculture. A good credit risk assessment assists banks and financial institutions in taking right and informed credit decisions, proper loan pricing,  determining the amount of loans to be disbursed, reducing the chance of default and finally, increasing the  possibility of debt recovery. Credit risk assessment involves determining the financial strength of the borrowers, estimating the probability of default and reducing the risk of non-payment to an acceptable level. In general, credit evaluations in public sector banks in India are based on the credit officer’s subjective  assessment of judgmental assessment techniques. However, this technique seems to be inefficient,  inconsistent and above all non-uniform because of subjectivity in choice of risk weights and scores, and hence, suboptimal. Rather, customized credit scoring model based on internal data of a bank has the potential of reducing the variability of credit decisions and imparting efficiencies to credit risk assessment process.

The New Basel Accord, scheduled to be implemented by the end of 2009, does not include any special treatment for agricultural lending. Basel II implies that large agricultural loans would be treated as corporate loans and small agricultural loans as retail loans. The regulators, however, need to take into account the particular characteristics of farm loans when setting capital charges for organizations involved in agricultural lending (Barry, 2001). Farm businesses are characterized by cyclical performance, seasonal production patterns, high capital intensity, leasing of farmland, participation in government programs, and annual payments of real estate loans. Because of these characteristics, losses in agricultural lending may not be frequent, but could be large due to high correlations among farm performances. At the same time, high capital intensity, especially involving farmland, offers relatively strong collateral positions, thus mitigating the severity of default when default problems do arise.

Katchova and Barry (2005) developed models for quantifying credit risk in agricultural lending. They calculated probabilities of default, loss given default, portfolio risk, and correlations using data from farm businesses. The authors showed that the calculated expected and unexpected losses under Basel II critically depend on the credit quality of the loan portfolio and the correlations among farm performances. These analyses of portfolio credit risk could be further enhanced if segmented according to primary commodity and geographical location. Agricultural lenders could then adopt similar models to quantify credit risk, a key component in the calibration of minimum capital requirements. Ramaswami et al. (2004) discussed the issue of risk management in agriculture in a comprehensive manner. Some of the risk-reducing strategies at the farmers’ level have been crop diversification, intercropping, farm fragmentation and non-farm income.

A credit risk model suitable for agricultural loan is developed based on the sample data obtained from a large Indian public sector bank. The model incorporates basic characteristics of the borrowers and various risk parameters that significantly influence the borrowers’ creditworthiness. Such a model would enable the bank to identify the key risk parameters in agricultural loan that would help the lending officers to take decisions and manage the loan portfolio in a better way to minimize credit losses. The New Basel Capital Accord (Basel II) provides added emphasis to the development of portfolio credit risk models. An important regulatory change in Basel II is the differentiated treatment in measuring capital requirements for corporate exposures and retail exposures. Basel II allows agricultural loans to be categorized and treated as the retail

exposures. However, portfolio credit risk models for agricultural loans are still in their infancy. Most portfolio credit risk models being used have been developed for corporate exposures, and are not generally applicable to agricultural loan portfolio. The objective of this study is to develop a credit risk model for agricultural loan portfolios. The model developed in this study reflects characteristics of the agricultural sector, loans and borrowers and is designed to be consistent with Basel II including the consideration given to forecasting accuracy and model applicability. This study conceptualizes a theory of loan default for farm borrowers. A theoretical model is developed based on the default theory with several assumptions to simplify the model.

While modeling credit risk for agricultural loans, one must account for the attributes of agricultural sector and its borrowers. The performance of the sector is also influenced by economic cycles and is highly correlated to farm typology, commodity, and geographical location. Credit risk of agricultural loans is closely related to a farm’s net cash flows like other retail loan categories. However, these cash flows exhibit annual cycles. Banks catering to agriculture sector need a unique credit risk model for their loan portfolio that captures these and other characteristics unique to agriculture. The objective of this study is to develop a credit risk model for an agricultural loan portfolio in India. This model takes into account the characteristics of the agricultural sector, attributes of agricultural loans and borrowers, and restrictions faced by commercial banks. The proposed model is also consistent with Basel II including consideration given in forecasting accuracy and applicability. We also highlight how such a model would help the Indian banks to mitigate risk in agricultural lending.

For individual farmers and agri-businesses, risk management involves choosing among alternatives for reducing the effects of risk on the firm, thereby affecting the firm’s welfare position. Risk management often requires the evaluation of tradeoffs between changes in risk, expected returns, entrepreneurial freedom and other factors. Research on risk management issues in agriculture has been among the main topics of interest of the Regional Research Committee for Financing Agriculture in a Changing Environment—macro, market, policy, and management issues.

A credit rating is a summary indicator of risk for banks’ individual credit exposures. Traditionally, most financial institutions relied virtually exclusively on subjective analysis or the so-called banker expert system to assess the credit risk of borrowers. Bank loan officers used information on various borrower characteristics which are called the “5 Cs” of credit. They are: (1) Character of borrower (reputation); (2) Capital (leverage); (3) Capacity (volatility of earnings); (4) Collateral; and (5) Condition (macroeconomic cycle). However, this method may be inconsistent if its risk weights are also based on expert opinion. The weights should be grounded based on the historical experiences. Accordingly, we have followed a statistical model approach which takes care of the “5 Cs” subjectively and produces consistent forecast about the borrowers’ default probability.

Bank can use such a credit rating tool in loan processing, credit monitoring, loan pricing, management decision-making, and in calculating inputs (probability of default, loss given default, default correlation and risk contribution, etc., have been discussed later in detail) for portfolio credit risk model.

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