INDEX

SR NO

TOPIC

01 Background02 History

03 Product & Services04 Strategic Business Unit05 Strategic Plan: Vision, Mission, Goals

06 BCG Matrix

07 SWOT Analysis08 7-S McKinsey Model09 GE Matrix10 Product Life Cycle11 Corporate Governance

Background

Founded : 1987

Founders : Nandlal Madhavlal Dhoot

Headquarters : Aurangabad ( Maharastra )

Area served : Consumer Electronics Home Appliance

Components Office Automation Internet Petroleum Power

Industry : Consumer Durables, Oil and Gas etc.

Share Type : Ordinary

Revenue : US$4.1 billion (2008)

Net Income : US$276 million (2008)

Web site : www.videoconworld.com

Products & Services :- Videocon served in many area like consumer product, home product, oil & gas etc. Following are the important product produced by videocon company. CONSUMER ELECTRONIS

1. Plasma TV

2. LCD TV

3. 34” TV

4. Slim TV

5. Sound Station

6. Flat TV

7. Conventional TV

8. DVD

9. Multimedia Speakers

HOME APPLIANCES

1. Frost Free Refrigerators

2. Direct Cool Refrigerators

3. Side by Side Refrigerators

4. Fully Automatic Washing Machines

5. Semi Automatic Washing Machines

6. Microwave Ovens

7. Window AC

8. Split AC

9. Cassette AC

10.Tower AC

STRATEGIC BUSINESS UNIT ( SBU)

An SBU, in the strategic management sense, is normally an entire division in large corporations or one of the firms of a diversified company that carries out a certain business - in one of the business sectors the firm operates. This approach entails the creation of SBU's to address each market in which the company is operating.

SBU OF VIDEOCON COMPANY

Key StepsTowards Strategic Planning

MISSION“To delight & deliver innovative product

through ingenious strategy intrepid entrepreneurship, improved technology,

insightful marketing and inspired thinking about the future ”

VISION

“To bring happiness in every home with global presence offering high quality “e”-

products to ease & enrich humanlife”

GOAL

“To provide a much higher level of service to all those who seek information”

BCG MATRIX

In BCG Matrix product or business unit are identified as Stars, Cash Cow,

Dogs, Question mark. BCG Matrix can used for resource allocation. The

matrix can be explained are as follows.

Stars (high growth, high market share)

Stars are using large amounts of cash. Stars are leaders in the

business. Therefore they should also generate large amounts of

cash.

Stars are frequently roughly in balance on net cash flow. However if

needed any attempt should be made to hold your market share in Stars,

because the rewards will be Cash Cows if market share is kept.

Cash Cows (low growth, high market share)

Profits and cash generation should be high. Because of the

low growth, investments which are needed should be low.

Cash Cows are often the stars of yesterday and they are the

foundation of a company.

Dogs (low growth, low market share)

Avoid and minimize the number of Dogs in a company.

Watch out for expensive ‘rescue plans’.

Dogs must deliver cash, otherwise they must be

liquidated.

Question Marks (high growth, low market share)

Question Marks have the worst cash characteristics of all,

because they have high cash demands and generate low

returns, because of their low market share.

If the market share remains unchanged, Question Marks will

simply absorb great amounts of cash.

Either invest heavily, or sell off, or invest nothing and generate

any cash that you can. Increase market share or deliver cash.

BCG MATRIX OF VIDEOCON

COMPANY

SWOT ANALYSIS

The SWOT is a strategic planning tool to evaluate Strength(S) Weakness(W) Opportunities(O) & Threats(T) involved in a project, in a business venture or in any other situation requiring a decision. The SWOT analysis is to explained with help of following diagram

SWOT ANALYSIS OF VIDEOCON COMPANY

7’S MCKINSEY MODEL

The 7S Model which they developed and presented became extensively

used by mangers and consultants and is one of the cornerstones of

organisational analysis.

Essentially the model says that any organisation can be best described by the seven interrelated elements shown above:

Strategy :- Plans for the allocation of a firm's scarce resources, over time, to reach identified goals. Environment, competition, customers.

Structure:-The way the organization's units relate to each other: centralized, functional divisions (top-down); decentralized (the trend in larger organizations); matrix, network, holding, etc.

System:- The procedures, processes and routines that characterize how important work is to be done: financial systems; hiring, promotion and performance appraisal systems; information systems.

Skills:- Distinctive capabilities of personnel or of the organization as a whole.

Staff :- Numbers and types of personnel within the organization.

Style:- Cultural style of the organization and how key managers behave in achieving the organization’s goals.

Shared Value:- The interconnecting centre of McKinsey's model is: Shared Values. What the organization stands for and what it believes in. Central beliefs and attitudes.

Key Points are:-

1. The top 3, strategy , structure and systems, are the hard elements. The bottom 4, skills, staff, style, and shared values are the soft elements.

2. At that time, any organisational study focused on the top "hard" elements and ignored the bottom "soft" elements.

3. The current view is to focus on all 7, accepting that for each business or enterprise, two or three will be the VITAL ones.

4. The key point is that all the elements are all inter-dependant. Changes in one will have repercussions on the others. Thus introduction of new systems will certainly affect skills, and may well effect structure, style and staff. It could even have an impact on strategy. Similar repercussions occur with decentralisation.

5. If you just try to change one element on its own, the other element may well resist the change and try to maintain the status quo.

6.  In this sense, any change in organisation is best seen as a shift in the whole picture.

 

GENERAL ELECTRIC MODEL

The GE/McKinsey Matrix template can be used in conjunction with,

or as an alternative to, other tools such as S.W.O.T. Analysis and the

Boston Consulting Group (BCG) Growth Share Matrix in basic strategic

planning and analysis. The GE/McKinsey Matrix differs from the other

tools. Unlike a BCG Matrix template, it uses multiple factors to define

Industry Attractiveness and Business Unit Strength and therefore

overcomes one of the main BCG Matrix limitations. The GE/McKinsey

Matrix identifies the optimum business portfolio as one that matches

the company's strengths to the most attractive industry sectors or

markets.

Thus, the objective of the analysis is to position each Strategic

Business Unit (SBU) on the chart depending on the SBU's Strength and

the Attractiveness of the Industry Sector or Market on which it is

focused. Each axis is divided into Low, Medium and High, giving the 3

by 3 nine-cell matrix as depicted below.

The aim of the portfolio analysis is firstly to analyse its current business

portfolio and to decide which SBU’s or branches should receive more or

less investment. Secondly, developed growth strategies for adding new

products and businesses to the portfolio and lastly, to decide which

businesses or products should no longer be retained.

Hence, videocon has a strong business competitive strength and a high

market attractiveness which helps it to exploit attractive industries or

markets.

GE MATRIX OF VIDEOCON COMPANY

PRODUCT LIFE CYCLE

The Product Life Cycle refers to the succession of stages a

product goes through. Product Life Cycle Management is the

succession of strategies used by management as a product goes

through its life cycle.

The product life cycle goes through many phases and involves many

professional disciplines and requires many skills, tools and

processes. Product life cycle (PLC) is to do with the life of a product

in the market with respect to business/commercial costs and sales

measures; whereas Product Life cycle Management (PLM) is more to

do with managing descriptions and properties of a product through its

development and useful life, mainly from a business/engineering

point of view.

1. Market introduction Stage

cost high

sales volume low

no/little competition - competitive manufacturers watch for

cceptance/segment growth losses

demand has to be created

customers have to be prompted to try the product

2. Growth Stage

costs reduced due to economies of scale

sales volume increases significantly

profitability

public awarwness

competition begins to increase with a few new players in

establishing market

3. Maturty Stage

Costs are very low as you are well established in market & no

need for publicity.

Sales volume peaks

increase in competitive offerings

prices tend to drop due to the proliferation of competing

products

brand differentiation, feature diversification, as each player

seeks to differentiate from competition with "how much product"

is offered

very profitable

4. Decline or Stability Stage

costs become counter-optimal

sales volume decline or stabilize

prices, profitability diminish

profit becomes more a challenge of production/distribution

efficiency than increased sales

PRODUCT LIFE CYCLE OF VIDEOCON COMPANY

NOTE :-

1] VIDEOCON LCD AT INTRODUCTION STAGE2] NEXT AT STAR STAGE3] HUNDAI ELECTROULX AT MATURITY STAGE4] ALLWYN AT DECLINE STAGE AND VIDEOCON COMPANY IS REACHING THE MATURITY STAGE

CORPORATE GOVERNANCE OF VIDEOCON COMPANY

CORPORATE GOVERNANCE

This report sets out the compliance status of the Company on Corporate Governance as set out in the Amended Clause 49 of the Listing Agreement with the Stock Exchanges.

I.Company’s Philosophy on Corporate Governance:- The Company’s philosophy on Corporate Governance is centered around maintaining highest standards of integrity, accountability and professionalism and ensuring transparency and fairness in all its dealings with stakeholders. The Company believes in and practises good corporate governance norms both in letter and spirit.

II. Board of Directors:-

1. Composition of the Board of Directors as on September 30, 2007

Category Director No of DirectorsPromoter-Non Executive Director

Mr. V N Dhoot

Mr. P N Dhoot 02Non-Executive - Independent

Mr. Naveen B Mandhana

Mr. Avinash Malpani

Mr. S Padmanabhan 03Nominee Directors-Representing Lending Institution.

Mr. D K Jain (Nominated by IFCI Limited)

01

The Board comprises of eminent persons having versatile experience in the field of management, marketing, finance, technical and administration.

2. Board/Committee Meetings and Proceedings

A. Institutionalised decision making process:- With a view to institutionalize all corporate affairs and setting up systems and procedures for advance planning for matters requiring discussion/decisions by the Board, the Company has defined guidelines for the meetings of the Board of Directors and Committees thereof. These guidelines seek to systematize the decision making process at the meetings of Board/Committees, in an informed and efficient manner.

B. Scheduling and Selection of Agenda Items:- All Board/Committee Members are given reasonable notice of the meetings. These meetings are governed by a structured agenda. The agenda along with the explanatory notes are distributed well in advance.

C. Availability of Information to the Members:-The Members have unqualified access to all information available with the Company. In fact, all items in the agenda are supported by detailed background information to enable the members to take informed decisions. The information generally provided to the Members include:-

Quarterly and financial results Minutes of the meeting of Audit and other Committees to the

Board; Material Transaction Related Party Transactions

D. Recording minutes of the proceedings:- Minutes of the proceedings each board/committee meetings are recorded. Draft minutes are circulated amongst all members for their comments. The minutes of the proceedings of the meetings are entered in the minutes book.

III. Board Committees:

Currently the board has constituted three committees i.e., Audit Committee, Shareholders/Investors Grievance Committee and Remuneration Committee.

1. Audit Committee:-Composition (As of 30th September, 2007)

Name of the Committee Member CategoryMr. S. Padmanabhan (Chairman ) Non Executive - IndependentMr. Avinash Malpani Non Executive - IndependentMr. Naveen B. Mandhana Non Executive - Independent

The Committee members have requisite financial and management experience and have held or hold senior positions in other reputed organizations.

2. Remuneration Committee:-Composition (As of 30th September, 2007)

Name of the Committee Member CategoryMr. Naveen B. Mandhana (chairman)

Non Executive - Independent

Mr. Avinash Malpani Non Executive - IndependentMr. S. Padmanabhan Non Executive - Independent

3. SHAREHOLDERS/INVESTORS GRIEVANCE COMMITTEE:-Composition: (As on 30th September, 2007)

Name of the Committee Member CategoryMr. Avinash Malpani Non Executive - IndependentMr. P.N.Dhoot Non Executive - IndependentMr. Mr. Naveen B. Mandhana Non Executive - Independent

COMPLIANCE CERTIFICATE OF THE AUDITORS

A certificate from the auditors of the Company regarding compliance of conditions of Corporate Governance as stipulated under Clause 49 of the Listing Agreement is attached to this report.

COMPLIANCE CERTIFICATE ON CORPORATE GOVERNANCE

ToThe Members of

VIDEOCON APPLIANCES LIMITEDWe have examined the compliance of conditions of Corporate Governance by Videocon Appliances Limited, for the year ended on 30th September 2007, as stipulated in Clause 49 of the Listing Agreement of the said Company with Stock Exchanges.

The Compliance of conditions of Corporate Governance is the responsibility of the management. Our examination was limited to a review of the procedures and implementations thereof adopted by the Company for ensuring the compliance of the conditions of the corporate governance as stipulated in the said clause. It is neither an audit nor an expression of opinion on the financial statements of the Company.

In our opinion and to the best of our information and according to the explanations given to us and the representations made by the Directors and the management, we certify that the Company has complied with, in all material respect, the conditions of Corporate Governance as stipulated in Clause 49 of the above mentioned Listing Agreement.

As required by the Guidance Note issued by the Institute of Chartered Accountants of India, we state that no investor grievance were pending for a period exceeding one month against the Company, as per the records maintained by the Investors Grievance Committee and as per the certificate of the Registrars and Transfer Agents of the Company.

We further state that such compliance is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management hasconducted the affairs of the Company.

For KADAM & CO..Chartered Accountants

U.S.KADAM Proprietor

Place: AhmednagarDate : February 23, 2008

For KHANDELWAL JAIN & COChartered Accountants

SHIVRATAN AGARWALPartner