digital Human resource management presentation.pdf
Vijay Mallya
1. Presented by –
Shubham Pradhan
Behavioral Aspect of Built Environment -3
Assignment on Leadership style
2. Table of content
► Introduction
► Leadership style
► Early life
► Awards and political positions
► UB group
► Other ventures
► Assets
► Current issues
► SWOT analysis
► Conclusion
► References
3. Introduction
► The flamboyant liquor baron, Dr Vijay Mallya once hailed as the King
of Good Times and Indian version of Richard Branson, is being
chased by almost every institution in the country — the banks,
regulators and, finally, the judiciary — for the Rs 9,000 crores he owes
to the lenders.
► Mallya did not borrow any money, it was Kingfisher Airlines that
borrowed the money from public sector banks. Some 9,000 Crores.
► All shareholders (Mallya is only one of them) are equally liable to
repay the loans, but their liability is restricted to the shares they hold,
no more. That is the concept of Limited Liability that Mallya is quoting.
No one can legally touch Mallya's wealth to pay off Kingfisher's loans.
► Mallya is morally responsible (note: not legally responsible) for
repayment of loans, since he gave a personal guarantee as a
collateral / to secure the loans. But the concept of personal guarantee
is fuzzy in the eyes of the law.
► There are other cases (not related to the loans) like a bounced
cheque, allegations of funds being diverted etc. for which Mallya is
indeed liable and can be prosecuted.
4. Early life
• Born on 18 December 1955
• Mallya born in a Brahmin family originally from the
town of Bantwal in Karnataka.
• Vijay Mallya is the son of Vittal Mallya, and his wife
Lalitha Ramaiah.
• In 1986, he married an air hostess named Sameera
Tyabjee . They were divorced in 1987 .
• In June 1993 , Mallya married Rekha
• Chairman of UB (United Breweries) group.
• Educated at La Martiniere & St. Xavier’s College,
Calcutta
• Member of Parliament , Rajya Sabha
• Doctorate of Philosophy in Business Administration,
by the Southern California university
5. Leadership styles
Styles of leadership
► Efficient leaders bother not only about whether they looser win, but even
about how they proffered to play the game.
► It's been seen the famous industrialist emphasize the difference between
the "authoritative" and "nurturing" leadership styles as the "hard" and "soft"
components of management.
► They maximize opportunity but will never turn opportunity into adventure.
They have a total knowledge of thin line between risk and reward as they
push ahead towards prosperity and progress.
Good leaders will use all three styles depending on all situations with only a
minor difference to their natural style. Poor leaders will generally stick with
one style and not adjust for different situations limiting their influence greatly
and it can be one out of these.
► Autocratic
► Participative
► Free reign
6. Leadership styles
► Democratic style favors decision making by group as in leaders generates
instructions after a consulting a group or group of professional. They can seek co-
operation from a group or professional and motivate them by their involvement in
goals. The outcomes of the democratic leader are not serotype as with the
autocrat because they arise from consultation with the group members and
participation by them.
► Free rein style a free reign leader will lead by leaving the decesions to its co-
workers and subordinates i.e., they are providing a freedom deciding their own
way of doing things and policies.
► Different scenario style can be applied in different situations. In an emergency
where there is little time an autocratic style is best suitable however in a motivated
and homogenous team democratic would be more suitable.
► The practice of organizational leadership includes developing plan and direction,
pointing changes and managing cultural transformation. Organizational leadership
is important to manage the fit between the external, variable marketplace and the
internal company's processes to develop organizational resilience.
7. Vijay Mallya’s style of leadership
► Call him 'The king of good times' or the liquor Baron, this charismatic
personality's name is a complete introduction in itself. Story his life narrates
countries, time zones, cars and careers.
► He says and believes in living the life-king size. His strong vision and guts to
take on difficult and new challenges in life always gave him an image of
great leader over other business leaders and tycoons. He is the person who
changed the common view about a 'multi-national company'.
► A great part of the personality of the Kingfisher brand is based on Mallya's
personality. He is considers to been an ethical leader. He is honored for
having alone changed the image of his beer from a commodity to a new
lifestyle brand. The Kingfisher commands a 29% share of the beer market in
India and is sold in over 52 countries
► Vijay Mallya is considered to be a flamboyant CEO of United Breweries -that
owns the Kingfisher brand - is one of the most flamboyant CEOs in Asia. He
has built a reputation for spending extravagantly his money in the public
trusts. Even he is seen as a very parotic person.
8. Mission Statement from the Tycoon
► We constitute a large, global group based in India. We associate with
world leaders in order to adopt technologies and processes that will
enable a leadership position in a large spectrum of activities.
► We are focused on assuming leadership in all our target markets.
► We seek to be the most preferred employer wherever we operate.
► We recognize that our organization is built around people who are our
most valuable asset.
► We will always be the partner of choice for customers, suppliers and
other creators of innovative concepts.
► We will continually increase the long-term value of our Group for the
benefit of our shareholders.
► We will operate as a decentralized organization and allow each
business to develop within our stated values.
► We will be a major contributor to our National Economy and take full
advantage of our strong resource base.
► We commit ourselves to the ongoing mission of achieving Scientific
Excellence
9. United Breweries Group
► The UB Group was founded by a Scotsman, Thomas
Leishman, in 1857.
► At the age of 22, Vittal Mallya was elected as the
company's first Indian director in 1947. Mallya became the
Chairman of United Breweries Group in 1983 at the age of
28, following his father's death.
► the annual turnover was increased by 64% over 15 years to
US$11 billion in 1998
► United Breweries Group or UB Group is an Indian
conglomerate of over 60 companies,headquartered in UB
City, Bangalore in the state of Karnataka.
► Its core business includes beverages, aviation, electrical
and chemicals, life science and leisure. The company
markets beer under the Kingfisher brand.
► United Breweries is India's largest producer of beer with a
market share of around 48% by volume.
10. King fisher airlines
► Established in 2005, was a major business venture
launched by Mallya.
It is one of the only seven airlines
► Awarded 5-star rating by Skytrax.
► It eventually became insolvent and had to be closed down.
As of October 2013, it had not paid salaries to its
employees for 15 months, had lost its license to operate as
an airline.
► Once the second-largest airline in India, Kingfisher Airlines
was never once able to earn a profit and it still went
on for 8 years.
► In 2009, the net loss went from Rs 213 crore in 2008 to Rs
1,317 crore. And that didn’t stop Mallya from continuing.
His delusional optimism of reviving the company went to
such extent that the accumulated losses as of March 2013
stood at a whopping Rs 16,023 crore.
► He did cut flights from 300 to 110-125, but it never reached
the skies Vijay was so hopeful about.
11. Kingfisher airlines
► Given that and how indebted Mallya was by 2012, it
was his inability to pay salaries to 1500 employees
that stopped the beleaguered airline to continue
operating.
► When asked why he couldn’t he simply answered, “I
don’t have money to pay your salaries”.
► But then Diageo acquired 27% stake in United Spirits
Ltd. for Rs 6,500 crore in 2013, but no lender or
employee was given a single penny, without any
reasons stated. Mallya had his own wish list to fill.
► He spent Rs 9.5 crore to get Australian all-rounder
Shane Watson to play for his Royal Challengers
Bangalore Indian Premier League cricket team this
season.
► In December 2015, his birthday became a gala with
200 people and featuring a firework display and
performances by Spanish pop star Enrique Iglesias
worth 3.5 crore. The whole party cost him more than
$2 billion.
12. Other ventures
► 1951 - McDowells became its first subsidiary. acquired
Berger Paints, Best and Crompton in 1988.
► Malabar Chemicals and Fertilizers in 1990
The Asian Age newspaper and the publisher of film
magazine, Cine Blitz, a Bollywood magazine in 2001.
► Vijay Mallya is also the chairman of South African
company, United National Breweries, a company that
specializes in making traditional sorghum beer.
► acquired premium scotch distillers Whyte & Mackay
and Liquidity Inc in 2007
► Signature golf tournament (golf tournament)
► Mohunbagan A.C (I league team)
► Kingfisher derby team (horse racing)
► East bengal club (I league team)
► Royal challengers Bangalore (ipl team)
► Force india (formula one car racing team)
► McDowell indian (horse racing)
13. Awards and CSR
Awards
► Honorary degree of Doctorate of Philosophy in Business Administration, by the
Southern California University for Professional Studies (1997).
► "Officier de la Legion dHonneur", a highest award of recognition in France.
► "Global leader for tomorrow", World Economic Forum.
► "Entrepreneur of the Year" award at The Asian Awards (2010)
Corporate Social Responsibility
► The Mallya Hospital The Mallya-Aditi School
► The Vittal Mallya Scientific Research Foundation in Bangalore, India
► Water projects
► Drinking water schemes
► Rain water harvestin
14. Assets
► Estimated net worth $1.2
billion.
► 26 homes
► A stud farm named Kunigal
► Stud Farm comprising over
250
► race horses
► 200 classic vintage cars
► A castle in UK
► Several yacht & private jets
17. Current issues
► Vijay Mallya has been in Britain since he left India in March 2016, unable to travel after his passport was
revoked, so the annual British Grand Prix is the only race he has been able to attend since then.
► The Enforcement Directorate, which fights financial crimes, is seeking to declare him a "fugitive economic
offender" and to confiscate Rs. 125 billion worth of his assets.
► Vijay Mallya has denied the charges, decried a "political witchhunt" and has said he is seeking to sell assets
worth about Rs. 139 billion ($2.04 billion) to repay creditors.
► "I think the overriding consideration that everybody seems to be missing is that I have put $2 billion worth of
assets in front of the Karnataka high court which is more than sufficient to repay the banks and indeed
everybody else," he said.
► "So the question of attaching assets either in the UK or whatever should not arise."
► Vijay Mallya repeated recent complaints on Twitter that enforcement agencies had frozen assets in India so
he could not sell them, while banks continued to tot up interest.
► He said the enforcement directorate had also attached assets inherited from his father, including properties
acquired in the 1920s, under the provisions of the Prevention of Money Laundering Act.
18. SWOT Analysis
Strength
► Risk taker ,
► Leadership qualities ,
► Consolidated all in one group called
UB group
► Creativity skills
► Good communicator
Weakness
► When he bought Air Deccan
► Huge borrowed funds
► Trying to run an Airline like liquor
business
Opportunity
► The Heineken Deal
► Huge investments in Real estate
► BREXIT
► International Businesses
Threat
► Fear of Assets in Britain being seized
► Indian Government actions .
► Media
19. Conclusion
The following is my list of the characteristics of a good leader
► Vision leaders must have a good and clear vision. They must believe in them self and can motivate people in
believing and following them. There vision for things is what it could be not what they are.
► Wise leaders have to go for critical calls are difficult points. A leader has to be wise and knowledgeable in order
to make a correct call for a successful organization. They are strategic, wise and perceptive.
► Passionate good leaders are very passionate aabout their work and people. There obsession makes them
entirely focused on what they do it may be sports hobby or business. They operate in a high level of passion that
they get totally consumed in it.
► Charismatic and Daring
► Persistent they have strong will power towards their goal. They anticipate the problem towards their goals. They
see that the advantage of attaining their goals is larger than that of the problems that occurred. This makes them
intensely persistent individuals.
► Great communicators they are comfortable in public speaking and inspiring. They are great orator and
persuaders.
► Disciplined Most good leaders are very controlled in their goals. Where most would be simply distracted, good
leaders discipline their minds to keep focused and steady regardless of the situation.