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PROJE
CT
REPOR
T
ON
ACC
CALCUTTA
BUSINESS
LTD
SCHOOL
PROJECT REPORT
BY
Nazibul Rahaman
PGDM 2014-16
Content
PG NO
1. Introduction.
2. Corporate Profile.
3. History.
4. Products...
4-5
5. SWAT Analysis...
6-7
6. BCG Matrix.
10
9. Strategies..
11-13
14-16
17
12. Recommendations..
18
13. Conclusion..
19
Introduction
ACC cement is India's foremost manufacturer of cement and concrete. ACC's operations are
spread throughout the country with 16 modern cement factories, more than 40 Ready mix
concrete plants, 20 sales offices, and several zonal offices. It has a workforce of about
10,000persons and a countrywide distribution network of over 9,000 dealers. Since inception
in 1936, the company has been a trendsetter and important benchmark for the cement
industry in many areas of cement and concrete technology. ACC has a unique track record of
innovative research, product development and specialized consultancy services. The
company's various manufacturing units are backed by a central technology support services
centre - the only one of its kind in the Indian cement industry. ACC has rich experience in
mining, being the largest user of limestone. As the largest cement producer in India, it is one
of the biggest customers of the domestic coal industry, of Indian Railways, and a considerable
user of the countrys road transport network services for inward and outward movement of
materials and products. Among the first companies in India to include commitment to
environmental protection as one of its corporate objectives, the company installed
sophisticated pollution control equipment as far back as 1966, long before pollution control
laws came into existence. Today each of its cement plants has state-of-the art pollution
control equipment and devices .ACC has made significant contributions to the nation
building process by way of quality products, services and sharing expertise. Its commitment
to sustainable development, its high ethical standards in business dealings and its on-going
efforts in community welfare program have won it acclaim as a responsible corporate citizen.
ACCs brand name is synonymous with cement and enjoys a high level of equity in the
Indian market. It is the only cement company that figures in the list of Consumer Super
Brands of India
CORPORATE PROFILE
ACC (ACC Limited) is India's foremost manufacturer of cement and concrete. ACC's
operations are spread throughout the country with 17 modern cement factories, more than 50
Ready mix concrete plants, 21 sales offices, and several zonal offices. It has a workforce of
about 9,000 persons and a countrywide distribution network of over 9,000 dealers.
Since inception in 1936, the company has been a trendsetter and important benchmark for the
cement industry in many areas of cement and concrete technology. ACC has a unique track
record of innovative research, product development and specialized consultancy services. The
company's various manufacturing units are backed by a central technology support services
centre - the only one of its kind in the Indian cement industry.
ACC has rich experience in mining, being the largest user of limestone. As the largest cement
producer in India, it is one of the biggest customers of the domestic coal industry, of Indian
Railways, and a considerable user of the countrys road transport network services for inward
and outward movement of materials and products.
Among the first companies in India to include commitment to environmental protection as
one of its corporate objectives, the company installed sophisticated pollution control
equipment as far back as 1966, long before pollution control laws came into existence. Today
each of its cement plants has state-of-the art pollution control equipment and devices.
ACC plants, mines and townships visibly demonstrate successful endeavours in quarry
rehabilitation, water management techniques and greening activities. The company actively
promotes the use of alternative fuels and raw materials and offers total solutions for waste
management including testing, suggestions for reuse, recycling and co-processing.
ACC has taken purposeful steps in knowledge building. We run two institutes that offer
professional technical courses for engineering graduates and diploma holders which are
relevant to manufacturing sectors such as cement. The main beneficiaries are youth from
remote and backward areas of the country.
ACC has made significant contributions to the nation building process by way of quality
products, services and sharing expertise. Its commitment to sustainable development, its high
ethical standards in business dealings and its on-going efforts in community welfare
programmes have won it acclaim as a responsible corporate citizen. ACCs brand name is
synonymous with cement and enjoys a high level of equity in the Indian market. It was the
first cement company to figure in the list of Consumer SuperBrands of India.
History
ACC cement has an interesting story - one that inspired a book. ACC was formed in 1936when
ten existing cement companies came together under one umbrella in a historic merger -the
country's first notable merger at a time when the term mergers and acquisitions was not even
coined. The history of ACC spans a wide canvas beginning with the lonely struggle of its
pioneer F E Dinshaw and other Indian entrepreneurs like him who founded the Indian cement
industry. Their efforts to face competition for survival in a small but aggressive market
mingled with the stirring of a country's nationalist pride that touched all walks of life including trade, commerce and business. The first success came in a move towards
cooperation in the country's young cement industry and culminated in the historic merger of
ten companies to form a cement giant. These companies belonged to four prominent business
groups - Tatas, Khataus, Killick Nixon and F E Dinshaw groups. ACC was formally
established on August 1, 1936. Sadly, F E Dinshaw , the man recognized as the founder of
ACC, died in January 1936; just months before his dream could be realized.
PRODUCTS
The company manufactures Portland cement for general construction while its blended
products, acknowledged for outstanding durability, include fly ash and slag-based cements
.Both these varieties of cement offer high quality and special properties that defy the harshest
environments. In addition to conserving valuable mineral resources and reducing waste, these
blended cements also help cut down the emission of carbon dioxide and assist in checking
global warming. ACC is sensitive to consumer needs .When the company realised that large
construction activities would require large amounts of cement it set up the countrys first
facility for distribution of cement in bulk, as far back as 1956.To meet the needs of other
consumers it introduced cement in small25 kilogram bags as also jumbo bags of one metric
tonne. Today, of course, mechanized mega construction projects receive cement from ACC
delivered in bulk tankers a welcome change from the conventional cement bag. ACC was
also the first company in India to introduce Ready Mix Concrete on a commercial basis. A
transit concrete mixer is now a familiar sight in Indias major cities. Ready Mix Concrete and
Bulk Cement have enabled the construction industry to introduces phisticated practices for
the speedy completion of large infrastructure projects
Bulk Cement
Yet another first in our seven-decade history of cement in India has been the introduction
of Bulk Cement, an alternative to bagged cement, which is of particular advantage to large
consumers of cement. Internationally, the trend is to move cement more and more in loose
form rather than bagged. In fact, over 90 percent cement in the USA, and other European
countries is transported and sold in bulk, unlike in India, where only one percent is
transported in bulk.
SWAT Analysis
SWOT Analysis explores the relationship between the environmental influences and
the strategic capabilities of an organization compared to its competitors. The
importance of SWOT is revealed by the value of the strategies it generates. A SWOT
item that generates no strategies is not important.
Strength
Weakness:
The competitors are doing much promotional activity rather than ACC Limited thats why it
facing more problems in selling of product in the market.
Lack of awareness program for consumers.
Opportunities:
Rapid growth is taking place in Bihar and Madhya Pradesh.
People are opting for more stable structures and intensive use of cement is taking place, even
government is spending heavily on infrastructure projects. Thus, this is the right time to fully
tap these markets.
As Indian core industry is also growing at rate of nearly 10% per annum, it is having a good
future.
Foreign direct investment in infrastructure sector going to increase in coming years, which
will increase the demand of cement.
Roads are undergoing through the transformation process through which the traditional
method of road building will be replaced by modern concrete roads.
THREATS:
Large number of players in cement industry makes it more competitive for ACC to carefully
price its product and at the same time satisfy its dealers and customers.
Players such as Jaypee Cement, Prism Cement, and Birla Samrat are eating up considerable
market share.
Due to Indias exponential growth many new international cement companies are expected
in coming years which will bring a tide of change and can start price war.
The emergence of small players in this market may increase the competition and start the
malpractices, and heavy discounts to retailers. They can also influence many retailers by
giving better profit margin, and other Benefits.
BCG Matrix
Definition: the BCG Matrix is an early (1970) strategic portfolio management tool created
by the Boston Consulting Group.
The idea behind it is that to ensure long-term value creation, a company should have a
portfolio of products that contains both high-growth products in need of cash inputs and lowgrowth products that generate a lot of cash.
Placing the products of a strategic business unit in 2 dimensions (market growth and market
share) creates 4 quadrants and corresponding investment strategies:
- Cash Cows (low market growth, high market share)
- Stars (high, high)
- Question Marks (high, low)
- Dogs (low, low)
Balanced Scorecard
The balanced scorecard (BSC) is a strategy performance management tool - a semi-standard
structured report, supported by design methods and automation tools, that can be used by
managers to keep track of the execution of activities by the staff within their control and to
monitor the consequences arising from these actions.
The critical characteristics that define a balanced scorecard are:
STRATEGIES.
A. High on quality, customer value and customer care
B. Branding
C.
D.
E.
F.
Advertising
Other promotional activities
Packages
Retention marketing
A N A L Y S I N G O F E X T E R N A L E N V I R O N M E N T
WE SEE FOLLOWING OPPORTUNITIES FOR OUR BUSINESS
As Indian core industry is also growing at rate of nearly 10%per annum, it is having a good
future. Foreign direct investment in infrastructure sector going to increase in coming years,
which will increase the demand of cement. Roads are undergoing through the transformation
process through which the traditional method of road building will be replaced by modern
concrete roads.
4)G a p A n a l y s i s :
As the main aim is to satisfy the customer demand so it should see that the gap between the
customer and organization is properly build up.
5)F r a m i n g A l t e r n a t i v e s t r a t e g y :
A f t e r m a k i n g t h e g a p a n d S W O T a n a l y s i s t h e company should accomplish the
objective of the firm.
6)C h o o s i n g t h e s t r a t e g y :
follows focus strategy as its main aim is to go world wide.
II) STRATEGIC EVALUATION
1) FORMULATION OF PLANS, PROGRAMMES AND PROJECTS
If you are a line manager or functional expert, overseeing a number of businesses, profit
center or operating units, you are likely to be facing tough challenges. It is hard to add value
and easy to make things worse.
Group Level Strategy is a unique opportunity for you to rethink your role in
creating value. Based on the ground-breaking 16
ACC CEMENT research of Andrew Campbell and Michael Gold, the programme is about
your job at its most visible: fundamental choices that affect business performance.
2) PROJECT IMPLEMENTATION:ACC has a unique track record of innovative research ,product development and specialized
consultancy services. With more than seven decades of rich experience in prospecting for raw
materials, mining, setting up and managing cement plants of different sizes, technologies and
processes. We are proficient in managing captive thermal power plants and now also have a
few power plants based on wind energy. Our large team of talented scientists, engineers and
technocrats are experienced in meeting the needs of the cement industry both in India and in
many other countries.
3) PROCEDURAL IMPLEMENTATION:-
1.SETTING OF STANDARDS
As per the standards set by the company the employees has to function. Along with the
standards the company should not forget it ultimate objective or goals.
2.MEASUREMENT OF PERFORMANCES
:-The set standards are then measured with the actual performance.
3.COMPARISON OF ACTUAL STANDARD WITH STANDARDS
:-the comparison after measuring is evaluated on the bases of performance which can positive
or negative . it means the deviating in achieving the targets.
4.Analysing the deviation
for eg:- the standards was to produce 1000 units but actual production is 900 the it is called
negative deviation.so it should kept in mind while evaluating a performance .
5.Taking corrective measures
:-after doing all evaluation the proper measures are required to be taken
Financial Results
Mission
ACC Ltd. drives their mission statements from a particular set of tasks.
They are called upon to perform in the light of their individual, national or
global priorities .Indian Cement industry into a Globally strong and
competitive industry
Vision
To be one of the most respected companies in India ; recognized for
challenging Conventions and delivering on our promises.
RECOMMENDATIONS
ACC CEMENT is highly focused on its future objectives & expansion plans, butat the same
time it has to maintain a balance between the present plan &the future one. On the basis of
strategic analysis following recommendations will help in achieving its future goals
effectively & efficiently: ACC LTD must focus on its Vision & Mission in order to attain its objective.
ACC LTD should focus on expanding its market in order to grab the market shares.
It should also try to maximize the shareholders wealth.
ACC LTD should not choose those project which may dilute the brand name just for the
sake of gaining market shares.
It should focus on to convert itself from Question Marks to Stars.
ACC LTD has a high growth potentials, so it should try to raise funds timely in order to meet
its target.
ACC LTD should not do overpromise as it will deteriorate its goodwill.
ACC LTD must focus on its competitors strategy in order to gain a competitive edge
CONCLUSION
Keeping pace with changing times and an evergrowing need for speciali
zeds e r v i c e s , A C C h a s b e g u n o f f e r i n g i t s m a r k e t i n g e x p e r t i s e a n d
d i s t r i b u t a r i e s facilities to other producers in cement and related areas. However a
precondition of all such agreement is quality control supervision to be carried out by an ACC
expert located at the franchisees plant.
Each of the regional Marketing offices has a customer services cell that is
manned by qualified civil engineers. These, in addition to handling afte
r-salesservicing, function as advisory bodies that can help customers,
m a k e t h e r i g h t choice of cement for a specific area of application. ACC can provide
expert advice on getting the best value from cement and offer assistance on related
issues in civil construction projects.
Besides this, technical books/booklets on cement, concret
e a n d b u i l d i n g construction and maintenance are regularly must be available
for the benefit of the customers. In addition to this, ACC also publish free booklet, which
profiles the latest information on concrete research, design, construction and maintenance.
Thus to conclude it can be said that ACC cement has its branches spread all over India
ACC Limited company product are the profitable not only in India but also in the whole
world.