Management Development Institute of Singapore)
Subject : Corporate Strategy (Assignment 1)
Lecturer : Dr Keith Ng
Course : Master of Business Administration
ASSIGNMENT COVER SHEET
|No. |NAME OF MEMBER |FIN No. |SIGNATURE | |1 |SHUBHAV GUPTA |G0874179X | |
Submitted on Due Date? YES (Date Submitted: 30.4.2010)
Submitted Soft Copy? YES (Date Submitted: 30.4.2010)
Word Limit Observed? YES (No. of Words: 2090)
TABLE OF CONTENTS
|S.No |Contents |Page No. | |1 |Executive Summary |3 | |2 |Introduction |4 | |3 |PEST Analysis |5 | |4 |Porters 5 Forces |7 | |5 |Structural drivers of change |11 | |6 |Industry Life Cycle |12 | |7 |Scenarios |13 |
The Corporate Strategy assignment is divided into 2 parts. The first part of the assignment asks us to select and analyze an industry of our own choice. I have selected the INDIAN CEMENT INDUSTRY. In this assignment, a brief history regarding the Indian Cement Industry and how it has changed over the years to become one of the largest cement markets in the world has been covered. Further on, it has the analysis of the strategic posture of the key cement players in the Indian market and the direction in which the cement industry of India is moving. To identify the structure, changes, and the drivers of change within the industry, Porter’s Five Forces, PEST Analysis and Life Cycle Model has been used. The second part of the assignment has 3 scenarios indicating possible long-term futures for the industry.
The word Cement has come from the Roman word ‘Opus Caementicium’. In general, the word cement means binder- a substance, which when gets set and hardens, binds itself independently with other substances. Joseph Aspdin, a British stonemason, invented cement way back in 1824.(Portland Cement Association 2010) INTRODUCTION TO THE INDIAN CEMENT INDUSTRY
In 1914, the first licensed cement-manufacturing unit in India was set-up by the India Cement Company Ltd. With the boom in the economy-growth rate of India, the cement industry is seeing a great future. India has now become the second largest cement producer in the world after China, with a total capacity of 151.2 Million Tones, contributed by around 125 large and 300 mini cement plants. Further growth in the Indian cement industry is expected in the coming years. It is expected that by FY12, the cement production capacity will rise upto 262.61 Million Tones. The cement industry in India is dominated by around 20 companies, some of the major Cement players in India are |Company |Production |Installed Capacity | |ACC |17,902 |18,640 | |Gujarat Ambuja |15,094 |14,860 | |Ultratech |13,707 |17,000 | |Grasim |14,649 |14,115 | |India Cements |8,434 |8,810 | |JK Group |6,174 |6,680 | |Jaypee...