Aditya Birla Group

History

Originated by: Seth Shiv Narayan Birla in 1870

Founded by : Ghanshyamdas Birla in 1919

Incorporated by : Aditya Vikram Birla in 1960

Taken over by: Kumar Mangalam Birla in 1995

Overview - Company profile

Public Company Type of Company: Premium global conglomerate Incorporated: 1870 Employees: 72,000 in India and 120,000 globally Sales: $7.59 billion (2012) Revenue: $4.6 billion per year Stock Exchanges: India

A US $40 billion corporation, the Aditya Birla Group is in the League of Fortune 500. It is anchored by an extraordinary force of over 120,000 employees belonging to 42 nationalities.

The Group has been ranked Number 4 in the global 'Top Companies for Leaders' survey and ranked Number 1 in Asia Pacific for 2011. 'Top Companies for Leaders' is the most comprehensive study of organizational leadership in the world conducted by Aon Hewitt, Fortune Magazine, and RBL (a strategic HR and Leadership Advisory firm). The Group has topped the Nielsen's Corporate Image Monitor 2013-14 and emerged as the Number 1 corporate, the 'Best in Class', for the second consecutive year.

Over 50 per cent of the Aditya Birla Group's revenues flow from its overseas operations. The Group operates in 36 countries – Australia, Austria, Bangladesh, Brazil, Canada, China, Egypt, France, Germany, Hungary, India, Indonesia, Italy, Ivory Coast, Japan, Korea, Laos, Luxembourg, Malaysia, Myanmar, Philippines, Poland, Russia, Singapore, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Tanzania, Thailand, Turkey, UAE, UK, USA, and Vietnam.

Aditya Birla Group – The Global Scenario

Around the world, the company is known for:

A metals powerhouse, among the world's most cost-efficient aluminium and copper producers. Hindalco-Novelis is the largest aluminium rolling company. It is one of the three biggest producers of primary aluminium in Asia with the largest single location copper smelter

No.1 in viscose staple fibre (Grasim) No.1 in carbon black ( Aditya Birla Nuvo) The fourth-largest producer of insulators(Birla NGK Insulators) The fourth-largest producer of acrylic fibre Among the top 10 cement producers Among the best energy-efficient fertilizer plants(Indo Gulf) The largest Indian MNC with manufacturing operations in the USA

Aditya Birla Group – The Indian Scenario

In India, they have accomplished:

The largest fashion (premium branded apparel) and lifestyle player The second-largest manufacturer and largest exporter of viscose filament

yarn ( Aditya Birla Nuvo) The largest producer in the chlor-alkali sector Among the top three mobile telephony companies ( Idea Cellular) A leading player in life insurance and asset management(Birla Sun Life

Insurance Co.)

Among the top two supermarket chains in the retail business

Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where success does not come in the way of the need to keep learning afresh, to keep experimenting.

Aditya Birla Group – Beyond Business

Works in 3,000 villages Reaches out to seven million people, annually, through the Aditya Birla

Centre for Community Initiatives and Rural Development spearheaded by Mrs. Rajashree Birla

Focuses on healthcare, education, sustainable livelihood, infrastructure and espousing social reform in India, Brazil and Egypt, as well as Philippines, Thailand, Laos, Indonesia, Korea and other Asian countries

In India:

The Aditya Birla Group runs 42 schools, which provide quality education to 45,000 children. Of these 18,000 students belong to the underprivileged segment. Merit scholarships are given to an additional 12,000 children from the interiors.

The 18 hospitals run by the Aditya Birla Group tend to more than a million villagers.

In line with its commitment to sustainable development, the Aditya Birla Group has partnered with Columbia University in establishing the Columbia Global Centre's Earth Institute in Mumbai.

The idea of embedding CSR as a way of life in organizations has led to the setting up of the FICCI – Aditya Birla CSR Centre for Excellence, in Delhi.

The Aditya Birla Group transcends the conventional barriers of business because we believe it is our duty to facilitate inclusive growth.

Chronology

Key Dates

1870 Seth Shiv Narayan Birla launches a cotton- and jute-trading business in the town of Pilani, in Rajasthan, India.

1919 Grandson Ghanshyamdas Birla sets up a jute mill, establishing the family's industrial holdings.

1947 The Birla family sets up the Grasim weaving plant, later adding production of rayon.

1958 The company establishes Hindalco for production of aluminum.

1966 Indian Rayon Corporation is acquired.

1969 Under Aditya Birla, the company launches international expansion, founding Indo Thai Synthetics in Thailand.

1978 Carbon black production is launched in Thailand.

1988 Indo Gulf is formed under Hindalco for the production of fertilizer.

1995 Aditya Birla dies and is succeeded by son Kumar Mangalam Birla, who later leads a restructuring and streamlining of the group; a joint venture, Birla AT&T, is formed.

1998 Info Gulf begins copper production; Birla enters Canada with the purchase of Atholville Pulp Mill in New Brunswick.

1999 Birla adds financial services through an insurance joint venture with Canada's Sun Life.

2000 Birla AT&T merges with Tata Communications; Hindalco acquires Indal.

2002 Hindalco restructures and spins off Indo Gulf Fertilizers; Anapurna Foils is acquired.

2003 Birla acquires Nifty Copper and Mt. Gordon Copper mines in Australia; the company enters China with the creation of the carbon black joint venture, Liaoning Birla.

2004 Indal merges into Hindalco.

2005 Construction of a new aluminum facility begins in Orissa, India; the St. Anne Nackawic Pulp Mill in Canada is acquired.

2006 The company announces plans to build a new viscose staple fiber plant in Laos.

Principal Subsidiaries

Aditya Birla Chemicals (Thailand) Ltd. Aditya Birla Nuvo Ltd. Alexandria Carbon Black Company S.A.E. (Egypt) Alexandria Fiber Company S.A.E. (Egypt) AV Cell Inc. (Canada) AV Nackawic Inc. (Canada) Birla Mineral Resources Pty. Ltd. (Australia) Birla Mt. Gordon Pty. Ltd. (Australia) Century Textiles Grasim Industries Limited Hindalco Industries Limited Indo Gulf Fertilisers Limited Indo Phil Textile Mills (Philippines) Indo Thai Synthetics Liaoning Birla Carbon Co. Ltd. (China) Pan Century Edible Oils (Malaysia) PSI Data Systems Limited PT Elegant Textile Industry (Indonesia) PT Indo Bharat Rayon (Indonesia) PT Sunrise Bumi (Indonesia) Thai Acrylic Fibre Thai Carbon Black Thai Peroxide Thai Rayon TransWorks Information Services Ltd.

Principal Competitors

RPG Enterprises Tata Sons Ltd. Murugappa Group Jaypee Group Amalgamations Ltd. Dabur India Ltd. Balmer Lawrie and Company Ltd. Escorts Ltd. HMT Ltd. Greaves Cotton Ltd. Bombay Burmah Trading Corporation.

Changes taken by K.M.Birla1.Retirement policy

He introduced a retirement policy in 1995,on the basis of which around 325 senior employees, who were there early 60s,had quit the organization in the next five years .subsequently about 400young employees replaced them.

Meanwhile, answering the critics he said, "people in the group about twice my age when I took over as chairman. I had great respect for them personally, but I also feel the need for change”.

2. Corporate logo In 1996,he launched for the first time a corporate identity that would serve a

corporate logo. The group selected the rising sun as the logo, which signified optimism and served as a unification symbol for the group.

K.M.Birla said, “The new corporate logo helped in bringing various companies of the group together. This helped the organization to re -energize and get started to the path of change”.

3. Recruitment process K.M. Birla also changed the group’s policy in house recruitment. In 1996, he

also made changes in group’s HR system. He hired professionals from other companies into his management team.

4.Change in decision making

The partha system of daily financial reporting which focused mainly on production was replaced with an “Economic value added model”. This model focuses on the aspects of profitability, asset productivity and growth.

K.M. Birla also established aditya birla management corporation limited, the strategic decision making for ensuring the best practices across the group companies.

K.M.Birla decided to reduce the group’s dependence on fiber based business where its market share was low. Instead he decided to concentrate on non-ferrous metals as there was less competition and hindalco already had a big presence in the aluminum sector

Perspectives of Company

CSR vision"To actively contribute to the social and economic development of the communities in which we operate, and, in so doing, to build a better, sustainable way of life for the weaker sections of society and raise the human development

index of our country."

Our Values: The Backbone of the Aditya Birla Group

As said by Mr. Kumar Mangalam Birla

The values of any organization define its character and personality. Values guide, shape and influence our behaviour and actions. Mr. Kumar Mangalam Birla stresses on the importance of the group's values.

IntegrityWe define integrity as honesty in every action. We shall act and take decisions in a manner that these are fair, honest and follow the highest standards of professionalism. Integrity shall be the cornerstone for all our dealings, be it with our customers, our employees, suppliers, our partners, shareholders, the communities we serve or the government.

CommitmentOn the foundation of integrity, we see commitment as doing whatever it takes to deliver as promised. Each one of us shall take ownership for our own work, teams and the part of the organisation we are responsible for. Through this value, we shall build an even sharper results-oriented culture that is high on reliability and accountability. Our commitment is likely to make us a formidable leader and competitor in every market that we are in.

PassionWe define passion as a missionary zeal arising out of an emotional engagement with work which inspires each one to give his or her best. All of us are expected to be enthusiastic in the pursuit of our goals and objectives. We shall recruit and actively encourage employees with a 'fire in the belly'. With this value, we hope to build a culture of innovation and breakthrough thinking, leading to superior customer satisfaction and value creation.

SeamlessnessWe understand seamlessness as thinking and working together across functional silos, hierarchy levels, across business lines and geographies. Each one of us shall demonstrate high level of teamwork through sharing and collaborative efforts and garner the synergy benefits from working together. Before we can truly benefit from a borderless world, we need to build a borderless organisation. We visualise free flow of knowledge and information across the group.

SpeedWe look upon speed as responding to internal and external customers with a sense of urgency. We shall continuously seek to crash timelines and ensure expeditious completion of our tasks. Through this value, we hope to build an agile and proactive organisation that is prompt to respond to the present and future needs of our customers.

Products

Aditya Birla Nuvo

SECTOR

Textiles, chemicals, agribusiness, insulators, telecommunications, financial services

PRODUCT

Branded garments, viscose filament yarn, fertilisers, insulators, textiles, life insurance, asset management, non-banking financial services, distribution and wealth management, broking, general insurance advisory and broking, private equity investment, advisory and management services, cellular services, branded apparel retailing

BRANDS

Louis Philippe, Van Heusen, Allen Solly, Peter England, Birla Shaktiman Urea, Krishidev, Aditya Birla Insulators, Linen Club, Pyroguard, Ray One, Nuvo Lana, Jaya Shree, Kolorone, Idea, The Collective, Planet Fashion, More.

Grasim industries Ltd

SECTOR

Cement (grey and white), textiles, chemicals

PRODUCT

Cement, viscose staple fibre, rayon grade pulp, ready mix concrete, chemicals, textiles

BRANDS

Birla Super, Vikram Cement, Rajashree Cement, Birla White, UltraTech Concrete, UltraTech Cement, Graveria, Birla Cellulose

Hindalco Industries Limited

SECTOR

Non-ferrous metals, chemicals, mining, agribusiness

PRODUCT

Aluminium, copper, aluminium rolled products (sheet and foil), cans, primary metal, recycling, caustic soda, aerospace alloys, alumina, power generation and aluminium smelting

BRANDS

Everlast aluminium roofing sheets, Freshwrapp aluminium foil, Freshpakk, semi-rigid containers, Permashield, waterproofing, Aluminium foil, Hindalco extrusions, Birla Copper, Birla Gold, Birla Silver

Ultratech cement limited

SECTOR

Cement (grey and white)

PRODUCT

Cement, ready-mix concrete

BRANDS

UltraTech Cement, UltraTech Concrete

Organization process

Processes lets the group to achieve:

Quality and quantity Cost effectiveness Delivery and speed Innovation and intellectual capital Productivity and pride

Processes are essential for leading the organization towards excellence and it is achieved through:

1. work environment: The group provide best working conditions to its employees for effective and efficient output.

2. Assets management: The group considers the profitability comes from managing its employees , properties effeciently so as to have profitability as well as stability.

3. Supply Chain Management: the group has best and long term relations with its suppliers , intermediaries , providers and customers which is based on trust factor to deliver best quality product and services.

4. Market and customer orientation: it is the most trusted brand of the country and have a good market share and long chain of customers.

5. Quality management: The group never comprises on quality and hence it is a premium selling brand.

6. People management: customers , employees , stakeholders are taken care in the best possible way .

7. Innovation and technology: The group has the best R&D department in the country to deliver innovation with quality to the demanding customers .

1. Fixing the objectives of the organisation

At the top level, administrative management first fixes the common objectives of organisation. At the middle level, executive management fix the departmental objectives. Lastly, at the lower level, supervisory management fix the day-to-day objectives. All the objectives of the organisation must be specific and realistic.

2. Finding activities must for achieving objectives

After fixing the objectives, the top-level management prepares a list of different activities (or works) which are required to be carried out for achieving these objectives. This list is prepared at random without following any sequence or order. This is a very important step because it helps to avoid duplication, overlapping and wastage of efforts.

3. Grouping the similar activities

All similar or related activities having a common purpose are grouped together to make departments. For e.g. all activities or works which are directly or indirectly connected with purchasing are grouped together to make the Purchase Department. So various departments such as Purchase, Production, Marketing, Finance, etc. are made.

4. Defining responsibilities of each employee

The responsibilities (duties) of each employee are clearly defined. This will result in the selection of a right person for the right post / job. He / she will know exactly what to do and what not to do. Therefore, it will result in efficiency.

5. Delegating authority to employees

Each employee is delegated (surrender or given) authority. Without authority, the employees cannot carry out their responsibilities. Authority is the right to give orders and the power to get obedience. The authority given to an employee should be equal to the responsibility given to him.

6. Defining authority relationship

When two or more persons work together for a common goal, it becomes necessary to clearly define the authority relationship between them. Each person should know who is his superior, from who he should take orders, and to whom he will be answerable. Similarly, each superior should know what authority he has over his subordinates.

7. Providing employees all required resources

After defining the authority relationships, the employees are provided with all the material and financial resources, which are required for achieving the objectives of the organisation. So in this step, the employees actually start working for a common goal.

8. Coordinating efforts of all to achieve goals

This is the last stage or step in the process of organisation. Here, the efforts of all the individuals, groups, departments, etc. are brought together and co-coordinated towards the common objectives of the organisation.

Hr policies of Aditya birla group HR policies allows Aditya birla group to be clear with employees on:• The nature of the organisation• What they should expect from the company• What the company expects of them• How policies and procedures work at the company• What is acceptable and unacceptable behavior.• The consequences of unacceptable behavior.

The three tier HR structure enabling (efforts to drive, manage and sustain the change agenda) across the organization comprises Group HR, Business (SBU)HR , Unit HR, all backed by a robust and enabling HR Governance model.

HUMAN CAPITAL:Among Human Resources initiatives taken during the FY 2007- 08 to retain and groom talent are:1. Created new channels of communication.2. Geography wise HR partners to aid employee interaction.3. PSI Buddies for all new hires on their date of joining theorganization.4. Initiated Speak your Mind : projects interface with HR.5. Various spot awards and informal rewards recognizingdeserving PSIans.6. Training boot camp for freshers.7. Strengthen the Training and Competency function,introducing the Monthly training calendars.8. Employee integration activities to foster fun at workplace.9. Routine medical check ups of project team members.

Standards of Professional Conduct:The Employer of Professional Responsibility provides that employees shall:• Comply with and abide by all rules and regulations.• Comply with and abide by all State and Federal laws and regulations.• Maintain the highest professional standards.• Commit no act of forgery or alteration of documents or records.• Commit no act of theft, damage or destruction of Employer or property.• Cause no physical harm to any employee.• Engage in no activity that obstructs the administration of disciplinary procedures or review• Make no unauthorized commitments or promises binding Employer or any of its employees

HR schemes:Aditya Birla Group classifies its various HR initiatives over the last five years into the following categories:

1. Recruitment and staffing. 2. Nurturing talent. 3. Performance management.4. opportunities for learning,5. Rewards and recognition. 6. Group-wide people process. 7. Quality of life beyond work.8. Integrating effectively. 9. Talent reviews:10. Talent engagement11. Career moves and succession plans:

1.Recruitment and staffing

Objective of recruitment To attract people with multi dimensional skills and experiences that suit the present and future organizational strategies .

Process of selection 1. Job descriptions with jobs bands. 2. Competency maps 3-Technical and aptitude tests (where applicable) 4- Group discussions (where applicable)

5-Structured interviews 6-Psychometric tests 7-Values assessment tests.

1. nuturing talent

The company has a talent identification and talent development strategy for all three levels of management i.e. senior, middle and junior management enabling planned succession and career development of employees who have talent and are of higher worth. This is facilitated through development assessment centers which have been have been designed to support managers in assessing and developing their capabilities. Over 1,200 managers across all management levels have participated in the DACs since 2003. Post-DAC, the developmental goal for an individual, in terms of priorities for learning and development experiences to move to the next career stage, is captured through the individual development plan (IDP). These are monitored on a real time basis for tracking implementation.

2. performance management

Its objective is to evaluate employee’s performance with respect to company’s objective. It provides them with structured and in-depth analysis of strengths and areas of improvement. It helps organization to identify, recruit, motivate and retain key employees. Aditya birla group introduced 3 main types of performance management systems which was done on online basis:

1. Annual goal setting -in the month of april/may, after the annual planning and budgeting rounds teams are required to set goals for the forthcoming year which is then evaluated and approved by managers further communicated to the employees.

2. Mid-year review - it is review of goals set at the beginning of financial year held on the months of October/November of every year. It helps to update the goals and take corrective actions if required.

3. Annual performance review – manger discusses the performance with the employees personally and gives feedbacks and necessary suggestions for improvement.

4. 360 degree feedback - program was introduced in 1999 that permitted manager to raise questions over leadership styles, managerial ability and also personal traits. After the feedback, each senior manager had to submit a six page letter mentioning the areas of improvement and their expectations.

3. opportunities for learning

The Group provides its people with multiple opportunities to hone existing skills and develop new ones, with a focus on constantly encouraging people to learn on the job, in classrooms, and beyond.

Enablers

Gyanodaya - The Aditya Birla Institute of Management Learning Individual Learning Plans Professional certifications for specialist Leadership Development Programs Functional Training Programs Continuing Education E-Learning Robust Training Processes at local levels

1. Group Internship Program (GIP) -Opportunities to understand the Group's global operations, gain experience in the chosen domain, and get exposure to the Group's cultural diversity.

2. Leadership Program for the Experienced (LEAD) -Opportunities to work across the Group's diverse businesses and meet and engage with the Group's eminent business leaders.

3. Finance Leadership Program (FLP) -Opportunities to experience first-hand the challenges that businesses face in the constantly changing and evolving global economy.

5. Rewards and recognition.

Reward strategy for Performance appraisal , Efforts taken , Skills, Job difficulty , Target achievement , seniority etc. There is strong emphasis on competitive compensation, performance incentives, international assignments, Group-wide recognition and more.

Enablers

Attractive Compensation Programs Variable Pay and Long Term Benefit Programs PRIDE/Performance Awards Aditya Birla Awards for Outstanding Achievement Stretch Assignments and Task Forces Unit Level/Business Level Recognition Programs

6. Group-wide people process.

Having an aggressive growth plan with structured people processes that provide flexibility for individual creativity has worked well for the

Group. The organisation's strength has been its high quality talent and strong financials, which help to further build on their leadership positions; and the freedom for employees to charter their career path of choice across businesses spread across 20 countries in six continents where Aditya Birla Group has a presence.

7.Quality of life beyond work.

The Group enables its people to fulfill personal and social needs, besides professional development. There is a range of benefits offered at the Aditya Birla Group- from individual and family benefits, to a supportive work environment, to corporate social responsibility platforms and more.

Enablers

Quality of Life- Improved facilities at Units, hospitals, telemedicine, etc. Benefits - Medical Insurance, Nischint - benefit plan in case of death in service, etc. Education for Children and Scholarships Wellness initiatives Sabbaticals ABG Emergency Helpline

8. Integrating effectively.

1. Conceptualize and design Organisation Effectiveness(OE)interventions to support delivery of Business strategy

2. Develop unique OE interventions that drive Change Management, Collaboration, etc. that support and enhance the climate and culture in the Business to be an employer of choice in the sector/ region/country

3. Conduct diagnosis, identify and implement employee engagement initiatives and action research programs within the Business for team and organizational improvement

4. Lead/support projects that are undertaken to strengthen employer brand in the Sector/Country/Region (eg. participate in Best Employer study, best practice study etc.)

5. Actively involve all stakeholders in seeking inputs for employee engagement programs, providing feedback on program performance and initiatives, share trends, benchmarks and insights from appropriate best practices for use of Business.

9.Talent reviews:A three-tier annual talent review process, held at the unit level, business level and Group level, ensures a focused approach to the implementation of lDPs. The review discussions provide meaningful input into the career and succession planning process.

10. Talent engagement:Business heads anchor programmes aimed at developing leadership potential and are personally involved in the design of specific courses. Other initiatives, such as the Chairman's Challenge and Ideas Unlimited, provide in depth engagement opportunities with hi-potentials.

11.Career moves and succession plans: Three-tier succession planning ensures that there is adequate leadership bench strength for all critical positions. Over 300 managers have moved into identified business critical roles at the senior and middle management levels as a consequence of their individual development plans. Most business critical positions have identified succession plans.

12. Training and development

To ensure that the organizations manpower needs are met by timely recruitment and focussed training so as to ensure a competent and skilled workforce.

SWOT Analysis

Strengths:

1. Strong brand recognition2. Internet sales3. Growing international presence4. Superior research and development department 5. Strong financial returns 6. Strong sense of working culture7. Effective leadership8. Cost leadership9. Prestigious client base10.Customer loyalty11.Diversified business

12.Product innovation capabilities13.Technological excellence14.Good corporate image

Weakness:

1. Complexity of operation 2. Lengthy processing chain3. Huge business line

Opportunities:

1. Growth of core sector industries 2. Rapid integration with global economy 3. Booming construction business in asia 4. Growing e-commerce business5. Increasing urbanization6. Rural up gradation

Threats:

1. Entry of global players 2. Take over possibilities3. Political threats 4. Impact of foreign exchange fluctuations 5. Loss of sales to substitutes6. Growing competition

Business stratergies used by Aditya Birla group :

Corporate Strategy and Business Development

Corporate Strategy and Business Development continuously tracks the business environment for the Aditya Birla Group's existing businesses. It recommends new directions through evaluation of deal creation opportunities, analysis of project proposals, etc. The function also plans and develops strategic initiatives for the Group and facilitates its execution.

Additionally, it assists businesses in crafting their strategic direction and evaluates options for long-term growth, both organic and inorganic. It works towards identifying sources of competitive advantage for the businesses, viz., exploration of new markets and geographies, analysis of integration across the industry's value chain, etc.

Diversification strategy

Birla group made the right move of applying diversification strategy of growth. To continue diversifying into other emerging markets, in 1999, Birla group formed joint venture with Sun Life Financial Inc., one of the leading international financial services organizations from Canada, and formed Birla Sun Life Insurance Company Limited (BSLI). As insurance market in Indian had low entry barriers, the cost of entry was less and hence BSLI did not erode the bottom life of Birla group. Birla’s diversification strategies include Operational relatedness when they formed Grasim industry. Birla textile & Grasim could share resources like - plant, R&D facilities ,distribution centers, etc. thereby saved cost. Diversification into metal business and formation of Hindalco was a good example of growth motive and risk spreading across businesses. Hindalco’s diversification in the upstream and downstream was to have synergies due to operational relatedness. Diversification into cellular & insurance business gave Birla group entry into markets which were attractive and had low cost of entry. Thus, we can see strategic relatedness in all the Birla groups business which has made a US $35 billion corporation and in the league of Fortune 500.

3.Corporate Communications Strategy

Corporate Communications is a service-oriented support function. Its main business is to enhance the Aditya Birla brand credibly. The function works to strengthen the Group's competitive advantage through proactive, two-way communication among its multiple internal and external stakeholders. In doing so, it strives to raise the Group's profile and enhance its image. Corporate Communications is the pivot, which imparts the Group identity to the Group companies and businesses through multiple communication strategies, leveraging the Aditya Birla brand equity. The function is responsible for media relations across the entire Group. It assists the top management's interface with the outside public, comprising besides media, professional bodies and institutions who have the potential to impact the Group's image.

Corporate Communications provides Group companies and corporate functions with strategic advice and professional inputs in their communication processes. Alongside, its portfolio of services includes internal communications, corporate intranet, corporate branding, image measurement, publications, websites, creative arts, supporting Investor Relations and building up the Group's archives.

Management functions of Aditya birla group

PLANNING

Planning is the function of management that involves setting objectives and determining a course of action for achieving these objectives. Planning requires that managers be aware of environmental conditions facing their organization and forecast future conditions.There are many different types planning undertaken by Aditya Birla group

a) STRATEGIC PLANNING.

Strategic planning involves analyzing competitive opportunities and threats, as well as the strengths and weaknesses of the organization, and then determining how to position the organization to compete effectively in their environment. Strategic planning is often based on the organization's mission, which is its

fundamental reason for existence. An organization's top management most often conducts strategic planning.

b) TACTICAL PLANNING.

Tactical planning is intermediate-range planning that is designed to develop relatively concrete and specific means to implement the strategic plan to be more competitive. Middle-level managers often engage in tactical planning. Tactical planning often has a one- to three-year time horizon.

c) OPERATIONAL PLANNING.

Operational planning generally assumes the existence of objectives and specifies ways to achieve them. Operational planning is short-range planning that is designed to develop specific action steps that support the strategic and tactical plans. Operational planning usually has a very short time horizon, from one week to one year.

ORGANIZING

Organizing is the function of management that involves developing an organizational structure and allocating human resources to ensure the accomplishment of objectives. Organizing at the level of this organization involves deciding how best to departmentalize, or cluster jobs into departments to effectively coordinate effort. There are many different ways to departmentalize in this organization, including organizing by function, product, geography, or customer. Organizing at the level of job involves how best to design individual jobs to most effectively use human resources.

LEADING

Leading involves influencing others toward the attainment of organizational objectives. To become effective at leading, managers of this organisation understand their subordinates' personalities, values, attitudes, and emotions. Personality research and studies of job attitudes provide important information as to how managers can most effectively lead subordinates. Communication provide direction as to how managers can effectively and persuasively communicate.

CONTROLLING

Controlling involves ensuring that performance does not deviate from standards. Controlling consists of three steps, which include establishing performance standards, comparing actual performance against standards, and taking corrective action when necessary.The measurement of performance is done, depending on the performance standards, including financial statements, sales reports, production results, customer satisfaction, and formal performance appraisals. It requires a clear understanding of where responsibility for deviations from standards lies. managers also control production/operations processes, procedures for delivery of services, compliance with company policies, and many other activities within the organization.

PESTEL Analysis of Aditya Birla group

Global environment:

Indian industry has a key role to play in the prosperity of our country. Its full potential needs to be unleashed, if the business of India is to be in business.Globalisation and size are almost inextricably linked.. Due to

globalization and liberalization the company have reached a position where it can take pride in having world-scale plants in several industries. From fragmented and small plants, today, the Group is the world's largest producer of viscose staple fibre. It operates, the world's largest palm oil refinery, of a staggering 3500 tonnes per day capacity. The Group is the world's third largest producer of insulators and the sixth largest producer of carbon black.

Socio-cultural environment:

As India is becoming a country of development , more percentage of population are educated so the expectation from the company is high. Their main concern is to serve the country and the people. The company, therefore, is becoming more competitive in Indian context as well as globally. For further globalization of industry, it is necessary to have open borders and much freer access to the developed markets.

Technological environment:

Assimilating the latest technology. will ensure, that Indian companies can remain cost and quality competitive, survive and come out ahead, in the chilly and ruthless winds of globalization. The company get the best technology that is available worldwide. Do not compromise by getting the second best. They choose the most effective technology, which ensures, the best product quality and ensures cost effectiveness, to withstand, severe international competition. Institutionalize R&D and spend fruitfully on it.

Economic environment:

India is emerging as one of the great economic success stories. Globalisation has led to profound emphasis on stepping up FII and FDI flows,. Demolition of tariff barriers has led to greater access to indian as well as international markets. Stable foreign exchange regimes are adding up to the profitability of the company.

Political environment:

The organization takes pride in being successful and standing in its own feet in terms of trade and exports without any government subsidies, it is evident from their various international collaborations and the revenue generated out of it. The organization is overriding narrow and misguided political considerations. Group, has more than 20 highly successful ventures outside India, with a combined turnover exceeding Rs. 3,500 crores.

Legal environment:

The Corporate Legal function of the Group works in close coordination with other corporate functions to provide integrated business solutions, keeping in view the applicable legal environment. It has acquired the competence to provide legal assistance and advice in different jurisdictions. It plays a significant role in the areas of mergers and acquisitions, joint ventures (both domestic and cross border), and corporate re-structuring.