Mahindra Case

Mahindra “Rise”: New Vision , Core Purpose and

Positioning Statement

Mahindra “Rise”: New Vision , Core Purpose and

Positioning Statement

By- Sandeep Mishra

AbstractAbstract

• The Mahindra Group (Mahindra), a federated group of companies based in India, developed a new core purpose to connect with its global stakeholders.

• By 2011, Mahindra had become a US $12.5 billion Indian multinational employing over 119,900 across the globe and had operations spanning 18 key industries.

• As Mahindra expanded globally, it was not able to connect its existing core purpose and positioning statement to the global arena and across the businesses since 1947.

• So the top management at Mahindra decided to revisit its core purpose and positioning statement in a bid to unify all its businesses. 

•  They launched a new tagline for the group 'Rise in January 2011. As part of the initiative, Mahindra made some changes internally as well as externally to articulate the new core purpose and vision. 

• The challenge Mahindra faced was how to embed the new core purpose and positioning.

M&M GroupM&M Group

• M&M was established in 1945 by JC and KC Mahindra as steel trading company.

• Ghulam Mohammad setup franchise for assembling jeeps from Willys.

• In 1958 Mahindra and Birfield into agreement to form Mahindra Sintered Products Private Ltd.

• In 1968 Company’s instrumentation and electronic division was setup.

• In 1984 collaboration agreement with Formaer.• In 1985 signed a memorendum of understanding with British

telecom.• In Sept. 1989 acquired the automotive pressing unit at kanhe.• In 1994 a wholly-owned subsidiary ,Mahindra USA, was formed.

New HeightsNew Heights

• M&M gained expertise in Tractor Technology & which resulted the best tractor in India.

• In 1996 M&M had entered into JV with Ford Motors Co.• In 2005 M&M established Mahindra Australia & Mahindra China

Tractors .• Jiang Ling Motors Joint venture for china.• Renault Joint venture for South Africa and France.• Logan was significant step into Indian Automotive Market by M&M• Anand Mahindra’ s ESEE strategy.• Frugal Engineering by M&M.• It’s a business which came from Family Business to Conglomerate.

DiversificationDiversification

Vision & MissionVision & Mission

Old

Vision - “Indians are second to none in the world. The founders of our nation & of our company passionately believed this. We will Prove them right by believing in ourselves and by making M&M Ltd. Known worldwide for the quality of its product and services”.

Mission – To Create India’s largest automobile and automobile related products distribution with the large choice of unique world class Products and services.

New

Vision – We will challenge conventional thinking and innovatively se all our resources to drive positive change in their lives of our stakeholders and communities across the world, to enable them to Rise”.

Mission – The mission is different from different groups.

M&M’s “Rise” & ChangeM&M’s “Rise” & Change

Reasons to new vision.• As old Vision says India were second to none.• As Indian companies were expanding globally.• M&M had made significant growth.• The people from Global arena were not able to connect with old.• Thought was Central Ideas needed to redefined by M&M.• For sake of Value, positioning, trust and viable business model.

Scenario• As M&M was not well known at global level.• Indian markets are becoming Very Competitive.• “Rise” is a powerful verb which connects to the final customers.

Implementing RiseImplementing Rise

4 Core qualities of M&M.• Integrity, Compassion, Diversity and empowerment of employees and

customers.• Rising means World class standards.• Setting New Benchmark.

Internally change (Human Resource Management)

M&M’s changes for HRM into 2 Parts:

1. Involved leadership competencies, recruitment, induction and on boarding.

2. New Talent management, performance management, learning & development ,rewards and recognition.

• M&M established cross business and cross functional team.• Training with the principle of rise to drive change programs throughout

M&M.

Externally changeExternally change

• Marketing team established cohesive visual, verbal and electronic marketing standards.

• Mahindra “Rise” align the brand to business through innovation programs.

M&M explored new opportunities with acquition

• The electric vehicle maker Reva of Bangalore.

• Launching Genio pick truck,• Yuvraj tractor for small farmers and

strenghthing rural housing finance business.

• M&M translated the “Rise” effect to product services, solutions and value-delivery change everyday.

Challenges Challenges

• Global market have big competitors in comparison to M&M.

• Difficult to quantify the impact of new core purpose. The idea was to think big and grow.

• It will be not easy to implement as it take time.• Growth will be done if stakeholders are with us.• Innovation will be the must need.• Employee will take time to understand the new

core idea.