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Pre se n te d b y

Group F1
Beauty & Wellness solutions
Enjoying leadership position

$23.9 billion turnover


Largest overseas consumer franchise

Indias’s most trusted brand


Reaching over 25lakh retail outlets
Contents
§ Organization and its environmen
§ Organizational design
§ Organizational change
§

Introduction
# Kanji morarji started a small trading
business in 1862
# In 1948, the family started Bombay
Oil Industries Limited(BOIL)
# In 1990, Marked division hived off
into Marico Industries Ltd.
# Later changed name to Marico Ltd. to
have vast diversity
#
#
Products
Structure

Suagata Gupta Vijay Rakesh Pandey Anju Madeka Vilas Milind Sarwate
CEO - consumer Subramanian CEO - Kaya Chief - Finance Shirhatt i Chief – HR &
products CEO - IB Chief-Tech Strategy
Structure

• Marico has a flat organizational


structure with just five levels
between the managing director and
the shop floor manager.
• The structure is organic in nature
where individuals are encouraged
to locate new opportunities,
experiment and take actions rather
than doing detailed analysis .

Entrepreneur
ØJo in e d B O IL in 1 9 7 1
ØTo o k o ve r co n su m e r p ro d u ct
d ivisio n in 1 9 8 0
ØR e a lize d to re stru ctu re fro m fa m ily
Harish Mariwala ru n b u sin e ss to p ro fe ssio n a le n tity
CMD
ØC h a lle n g e fa ce d in a ttra ctin g n e w
ta le n t
ØO ve rsa w e m e rg e n ce o f Pa ra ch u te
a n d S a ffo la b ra n d s
ØT h o u g h t d iffe re n t a p p ro a ch w a s
n e e d e d th a n co m m o d ity d rive n
a p p ro a ch
ØIn 1 9 9 0 , h e se p a ra te d fro m fa m ily
b u sin e ss a n d fo rm e d M a rico
Conducive Factors Identified
• India has 16% of world population.
Average length of hair is twice the
length of world average. India
share in world hair is 28%.
• Risk of heart disease due genetic
mutation affecting one in 25.
• Westernization and health
consciousness


Stake holders

Share holders

Society
Managers

Work force Customers

Suppliers
Stake
holders
• Members: Marico has a unique culture of
calling its employees as members ,every
employee is treated as the member of
organization and they are endowed with
all the essential resources to nurture there
talent and are encouraged to think
innovative and take risks .
• Consumers: Marico believes in keeping
consumers as focus in creating and
delivering solutions.
• Suppliers: Marico’s supplier basically include
farmers, and instead of forcing there
farmer to lower there price Marico
believes in the idea of improving the life
of farmers both on and off field so that
they can realize there full potential . For
this it had initiated practices like sms
Culture
• The culture promotes innovation at
all the level.
• It believes in adaptability to various
culture and learning through
various culture.
• Emphasizes on calculated risk taking.
• From the very beginning new joiners'
are given big responsibilities
Contents
§ Organization and its environment
§ Organizational design
§ Organizational change
§

Ethics
• Marico is a very ethical organization.
• Every employee had to follow the
code of conduct of the company
• In every dealing the employees are
expected to follow personal as well
as professional integrity.
• members are expected to comply
with applicable rules and law.

Corporate Social Responsibility
• Marico believes in the ideology of
interdependence according to
which a healthy and progressive
society guarantees better returns.
As result of which Marico at various
office and factory locations in India
and overseas promotes education,
sports, art, culture and supports
welfare and relief operations.

Innovation
• The future of the organization rests
on the willingness to experiment,
push in new and untested
directions, and think in uncommon
ways to take calculated risks. We
innovate when we do something in
ways that are distinctive/
pioneering and gives dramatic
results. Fear of failure should not be
the reason to avoid trying
something different or new.
Contents
§ Organization and its environment
§ Organizational design
§ Organizational change
§

Growth of organization
Strengths
• Marico is a professionally managed company
that empowers people ,encourages new ideas
and promote innovation.
• It believes in hiring and retaining talented
people. It recruits professionals from premiere
b schools and give them big responsibilities
from the early stage of their career.
• It had to strike a wonderful balance between
each of its stakeholders (share
holders,consumers,members and society at
large).
• It believes in the application of total quality
management to continuously improve its
product.
• It has got a consumer centric culture where
emphasis is given on quick action.
• The organization has global outlook and is
Weaknessess
• The company is still very small in
terms of its employee strength or
market capitalization when
compared with global heavy
weights like procter and gamble or
colgate pamolive.
• Company still largely depends on the
local market for its revenue. The
revenue generated by its global
operation is just 21%.

Opportunities
• Demography of india:India has a population of
more than 1 billion people,the median age is
around mid twenty,Indian economy is growing
very fast and the youth are becoming fashion
conscious day by day like there western
counter parts. Thus Marico has got a wonderful
market in india. 
• The Indian FMCG sector with a market size of
US$13.1 billion is the fourth largest sector in
the economy. 
• It has been estimated that FMCG sector will rise
from around Rs 56,500 crores in 2005 to Rs
92,100 crores in 2010. 
• Hair care, household care, male grooming, female
hygiene, and the chocolates and confectionery
categories are estimated to be the fastest
growing segments, says an HSBC report.Marico
has special interest in these sections. 
• Rural economy is growing fast and its expected
Threats
• Input cost: The price of domestic product is
linked to international prices.in the past few
years prices have undergone huge
fluctuation. Eg:the price of petrol once went
as high as 150$ a barrel and then finally
came down to 50$ a barrel,since in fmcg
sector input cost comprises 60% of the
production cost so such increase in the
price of commodities might hamper the
profit of fmcg companies like Marico.
• The environment for FMCG sector is highly
competitive ,both in India s well as the
world over.
• Marico has to deal with various currencies
such as dirham,South African rand,Egyptian
pounds etc.so any fluctuation in any one of
Thank
you

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