Strategic Management and Financial Performance

Topics: Strategic management, Data analysis, Scientific method Pages: 14 (2847 words) Published: April 5, 2011

Submitted by :- James Cherian Nedumgatt

Regn. Number :- 1145393 Words:- 725



I declare that no portion of the work referred to in the dissertation has been submitted in support of an application for another degree or the qualification of this or any other university or institute of learning. Further all the work in this dissertation is entirely my own, unless referenced in the text as a specific source and included in the bibliography




I. Introduction

➢ Executive summary

➢ Selection of the Topic

➢ Company Profile

➢ Project Objective

➢ Research questions

➢ Research methodology

➢ Research Hypothesis

➢ Project Framework

II. Information gathered and Business models


Selection of the Topic:- The topic chosen for the Research and Analysis project is “Business and financial Performance of an organization over a three year period”(Topic 8). Access to the Information is vital for the success of the Project, The information required for analyzing a company’s financial and business performance is easily accessible from the company’s annual report and the Internet. Assessing the Business and Financial Performance of the company is a rather challenging and Interesting Topic area which requires analytical and technical skills.

Other topics considered for conducting the RAP were Topics 4(Impact of e-business in an organization) and Topic 6(Key factors or Indicators in the motivation of the employees) which were limited in scope and was rather difficult in acquiring an organization’s sensitive information respectively.

Company Profile:- Voltas, India's premium air conditioning and engineering products and projects company, consolidated its position in the room air-conditioner industry. Voltas Ltd., a part of the Tata Group, is one among the leading Electro-Mechanical Projects & Services and Air-conditioning companies in India. Voltas has delivered an outstanding performance over the past few years, competing against the Multinational giants like LG, Samsung and Videocon, and is one among the well established companies in India. The company grabbed a market share of 17% in 2009 and has targeted to acquire 20% in 2010.( The company sustained its thrust in International Electro-Mechanical Business leading to significant growth in Revenues, generated by the execution of large orders in hand.

The various business segments of the Company are

A. Electro – Mechanical Projects and Services

B. Engineering Products and Services

C. Unitary Cooling Products for comfort and Commercial Use

D. Others


Source:- Annual Reports 2008-09

Scope of the Project:- Voltas Ltd enjoyed high Profit margins until the early 1990s.

In early 1990s, Indian Government promoted the growth of Industrial Sector and Service sector by Liberalizing Privatizing and Globalizing the economy (LPG in short). ( )

Various MNCs entered the Indian market which resulted in intense competition between the companies, price war unleashed by the MNCs seriously reduced the Profit margin of the company. Therefore, in order to improve margins, Voltas either had to increase prices or reduce costs. While the former was not really an option owing to intense competition, Voltas set out to secure economies of scale.

The company adopted new strategies to secure its position in the market. Among them ‘Big Bang’ strategy was the first to be implemented. Going by market shares, the 'Big Bang' strategy was a success. Within a year of its implementation, the company's...
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