Presentation prepared as a part of a competition by Abhishek Pai, Keerthan G and Pradeep K at IIM Indore in 2012

1. RPG Enterprises
Group Strategy
Team Name: Case-a-novas
Members: Keerthan G
Abhishek Pai
Pradeep K

2. Core competence analysis
Relevance
Difficulty of
Imitation
Breadth
of
Application
Core
Competence
KEC: Scale of operation
Largest lattice transmission tower manufacturing
capacity
CEAT: Very energetic and youthful workforce
Young workforce avg. age 23 years
Zensar: High quality standards with CMM
certificates and others
World's first enterprise-wide SEI CMM Level 5
Company
Raychem: Strong network of channel
partners spread across the country
Spencers Travel: Vast experience as General
Sales Agents
Business partnership with various airlines over
three decades.

3. RPG Group- Portfolio Analysis
KEC Int.
Zensar
Ceat
RPG Life
Sciences
Raychem
Harrisons
Malayalam
Spencer's
Travel
Raychem,
Zensar,
Spencer’s
Travel
c
c
R
a
y
c
h
e
m
c
c
R
a
y
c
h
e
m
Harrisons
Malayalam
c
c
RRPG Life
Sciences
c
c
R
a
y
c
h
e
m
KEC Int.,
Ceat
BCG Matrix
Relative Market Share
Marketgrowthrate
High
High
Low
Low
Business Life cycle
Time

4. Why conglomerates slump
• Fortune500- Dropping out of the list
Many companies dropped out of the list due to their inability to
innovate and introduce relevant products or services in the early to
Growth stages in the product life cycle. Thus they remained as
question marks without moving to Star or Cash cow.
RPG Investment Strategy
• To introduce new products and service in their current Business as
soon as the current Business move to late growth and maturity
stage i.e have question marks in your portfolio as soon your current
question marks become stars or cash cows.
• To invest in growing Business that are question marks today but
likely to be stars and cash cows in the years to come

5. RPG Group- Growth Strategies Organic
• Initiatives to move from Question Mark to Stars
Zensar
Develop core competencies in few growing areas like IT products and
services for Healthcare, Energy & utilities. Develop your own products
as well as build capability in Oracle, SAP and other ERP products.
Spencer’s Travel
Explore Opportunities in Tourism. Tourism opportunities in India
(especially in Himalayas and North East regions are largely
unexploited. Innovative packages can be designed in collaboration
with airlines.
Raychem Group
Can look to move into mechanical component manufacturing like
automobile parts

6. RPG Group- Growth Strategies
In-Organic
Acquisitions in current sectors
Harrisons Malayalam can consolidate its position by acquiring smaller
players in the southern region
New Sectors to get into- Adding Question marks to the portfolio and
nurture them to be stars
Raychem Group can get into Automobile component manufacturing- If
starting a new division from scratch is difficult, acquire an existing player
Venture Capitalist Seed fund for startups. Small projects up to 20 crores
can be funded.
RPG group can get into plying chartered flights on all routes as well as
small flights(20-30 seaters) on routes covering tier 3-4 cities and distances
less than 300 kms.

7. RPG Group- Branding
Projection of the conglomerate under Umbrella
campaigns
- This helps in Brand association
- Reduces the cost of communication
- Maintain uniformity and consistency in the communication
- Builds credibility into group companies
Ex. Mahindra Rise campaign where all its services are projected
under the group’s name
Focus on being a lean conglomerate with high synergy
among businesses
Rather than going for rapid diversification, the group can focus
on a few businesses with high synergies.

8. Enter New Businesses
Venture Capital
- Starting a venture capital fund to support startups and
ventures in upcoming domains
Ex. Intel Capital is one such that supports ventures in Technology space
- Gain knowledge in upcoming ideas and technologies
- Possibility of takeover with its success and synergies
- Economic sense: Even though the risk of failure is high, the
fund involved is low. Hence a few successes can nullify the
effects of a large no. of failures

9. Charter and short route aircrafts
Enter New Businesses(Contd.)
A new division under Spencer’s Travel for
Air transport
Charter Plane
-Growing in prominence in business circles
and has a huge unfulfilled demand
Huge potential for Short route operations
in unconventional routes where there are
no many competitors
Ex. Bangalore –Mysore and Indore- Jabalpur

10. Acquire Auto Component manufacturer
It has great synergies with existing businesses
- Raychem has the engineering capabilities and expertise in
manufacturing components
- CEAT can be used to leverage its relations with OEMs to achieve
sales
Enter New Businesses(Contd.2)
Raychem
Engg.
expertise
CEAT –
OEMs
relation
Auto
Component
Sales

11. References
1. Core Competence analysis-
http://www.mindtools.com/pages/article/newTMC_94.htm
2. Components of Capabilities-Driven Strategy
http://www.booz.com/global/home/what_we_think/cds_home/the_c
oncept
3. Model of Intel Capital- Venture capital
http://www.intel.com/about/companyinfo/capital/index.htm
Thank you