Mahindra & Mahindra Company: An Emerging Global Giant? Case Study
The primary goal of this paper is to draw attention to the importance of management activities for firms that are actively developing and trying to expand. Mahindra & Mahindra is exploring markets in other countries, but it has to deal with several challenges at the moment. The current situation will be evaluated, and possible solutions that may be considered by higher-ups will be proposed.
It is imperative to note that the role of multinational companies has been increasing in recent years. Many businesses have recognized that the thread from the side of foreign enterprises is enormous. Therefore, it is reasonable to expand in other regions and get a better understanding of what approaches are commonly used worldwide. Mahindra & Mahindra is one of the best examples of such firms, and the progress that it has shown is truly impressive. It would be reasonable to review and analyze peer-reviewed articles on this subject matter and provide recommendations that may be used by the management to promote expansion.
Cultural Profile and Background of the Firm
Mahindra & Mahindra is a multinational enterprise focused on the manufacturing and promotion of automobiles. Headquarters are located in India, and it is viewed as one of the most powerful companies in the world. Higher-ups made a decision to focus on globalization and have developed a strategy that would help the manufacturer to expand. It has collaborated with many international firms over the years and has managed to establish long-term relationships.
Moreover, the enterprise has entered markets in countries that are still actively developing to test its strategies. The approach has proven to be incredibly efficient, and the company has expanded to markets that are already developed and established. Sales in the territory of the United States are quite impressive, but several barriers are still present (Deresky, 2013). The biggest problem is that higher-ups do not adjust their strategy to account for cultural differences most of the time, and this leads to potentially lower profits.
An approach focused on the manufacturing of products aimed at emerging markets is commonly used by such companies. The focus on narrow categories of automobiles would be incredibly beneficial to the enterprise because of the high level of competitiveness. Global consolidation strategy is also quite reasonable. Enterprises manufacture standardized products and take advantage of the experience that other firms in the industry have. Merging and acquisition also should be mentioned. The strategy allows the firms to get access to valuable assets and alter the manufacturing process depending on the objectives (Deresky, 2013).
Recommended Strategies in the United States
The firm needs to alter its advertising strategy to appeal to the target market in the United States. A marketing campaign is of utmost importance in this case, and it would be reasonable to utilize the Internet and social media to promote the products (Singh, Lehnert, & Bostick, 2012). Reviews have an enormous impact on the decision-making process of customers, and it is important to collaborate with websites that are focused on SUVs. It would be appropriate to introduce a new range of SUVs aimed at Western markets, albeit that the vehicles would have to be branded differently because the current name may viewed unfavourably by some of the clients.
The fact that many employees do not speak English at the moment is quite problematic, and it complicates the interactions between the branches. It would be appropriate to invest in types of staff training that would enhance the knowledge of workers and help focus on core concepts and phrases. All of the offices must have translators to ensure that all of the information received may be delivered promptly without any complications.
Another issue that needs to be discussed is that relationships between the workers may be complicated because of the differences in traditions. Therefore, an HR professional should develop activities that would improve communication patterns and the overall environment in the organization (Faisal, Tower, & Rusmin, 2012). Workers must have an opportunity to voice their opinions, and it would help to facilitate interactions in the workplace.
Staffing Policies and Challenges Related to Human Resources
Polycentric staffing is an approach that will be chosen in this case. The strategy is aimed at the employment of local professionals and focuses on the reduction of cultural changes. It would be reasonable to acknowledge the importance of a multicultural team. Diversity is incredibly important in multinational corporations because it promotes cooperation. Some employees may provide valuable ideas and suggestions that would enhance relationships with clients that represent different cultures. The enterprise should utilize HR management systems to determine the number of workers that is the most efficient.
Moreover, associated challenges also should be taken into account. It is important to pay close attention to the benefits provided to expatriates, and the most attention should be devoted to equality to avoid complaints. Repatriation should be viewed as an aspect that can often be rather problematic, and it is necessary to establish long-term relationships to ensure that workers stay loyal to the company.
Leadership and Motivation
Current CEOs are outstanding leaders because they are devoted to their business and are always focused on expansion. The company is going to ensure that Indian professionals take top positions. However, it is reasonable to review applications and look for local specialists that are experienced in the area. Their performance will be evaluated with the use of questionnaires and HR systems to maintain high levels of productivity.
Managers and supervisors will participate in training designed to enhance their skills and their abilities to influence workers. Motivation is one of the aspects that need to be highlighted. A range of policies that would recognize the needs of individuals must be introduced. An employee motivation assessment may be used to determine which adjustments are necessary and which factors impact job performance the most (Gignac & Palmer, 2011).
One of the problems that should not be overlooked is that the company still has not managed to define its target market in the U.S., and it affects the sales of SUVs. The differences between the two cultures and their preferences must be analyzed. The role of social responsibility and sustainability has been increasing, and the corporation must participate in activities that would be beneficial to the public.
The advancement and fitting of engines with reduced emissions is crucial, and the enterprise should focus on this area. Another issue is the design of vehicles. The problem is that it is not that original and any perceived lack of creativity is a significant issue when it comes to such vehicles. It is paramount to hire external designers with the ability to provide innovative ideas. Furthermore, this would help to differentiate the products because competitors offer cars that are quite similar.
Organizational Structure and Recommended Adjustments
Organizational structure is one of the areas that may have to be addressed. Currently, each branch has a chairperson and one other executive who, together, are responsible for most of the decisions. Chief financial supervisors are in control of finances, and vice presidents of operations also have a range of responsibilities. One of the problems is that only two professionals are focused on HR activities.
It would be reasonable to expand the department dependent on the number of employees to ensure that resources are used efficiently, and HR systems are implemented (Kapoor & Sherif, 2012). Branches in emerging countries should be restructured, and the same approach must be used in developed countries if the process is successful. This strategy would help to facilitate expansion because the impact that HRM has on the financial performance of the firm could be considerable.
Available Alternatives That Would Support Brand Expansion
The company has acknowledged the fact that the name is one of the factors that could affect its ability to grow and enter global markets. CEOs believe that it should not be changed, and persistence would help to eliminate possible barriers. However, the threat from its various competitors is enormous, and the firm may be hurt in the long-term if senior management do not review their stance on this subject.
Another approach that should be considered is cooperation with other companies in this industry. It is possible to develop several vehicles with a brand that is already established, and it would improve the image of Mahindra & Mahindra (Fleming, 2013). Franchising is another approach that needs to be considered, but the company should devote enormous attention to monitoring and evaluation to ensure that the quality of products remains satisfactory.
In summary, it is possible to state that Mahindra & Mahindra has enormous potential that is not yet fully realized. The application of global management concepts would help the company to expand and increase profits if available resources are utilized efficiently. The industry is quite competitive, but the firm may take advantage of such aspects as relatively low prices and reliability. The company needs to find its niche because current strategies in the United States can be regarded as underdeveloped and ineffective in the long-term.
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