Sunil mittal case study (developed by ranjan shetty)
2009 - 11Term - III[Type a quote from the document or the summary of an interesting point. You can position the text box anywhere in the document. Use the Text Box Tools tab to change the formatting of the pull quote text box.]righttop[ The Ability To Inspire Others: Sunil Bharti Mittal] This case study provides an inside look at how Sunil Bharti Mittal have set an example and the ability to inspire others, by the way he have achieved his goals. This document describes and tries to make an understanding the level 5 and leadership style of Sunil Bharti Mittal.Submitted by:Ranjan Shankar Shetty – PGDM IB (2009-11) - 40Rafique Alam – PGDM IB (2009-11) - 38<br />The ability to inspire others: Sunil Bharti Mittal<br />Introduction<br />For organizations to develop they require a direction. The people who manage the business provide the direction. Taking responsibility for making decisions and running a business well is a skill. Management involves control and organization to get something done. In the course of business, managers use many different skills. They:<br />• plan and organize people and resources<br />• set and monitor budgets<br />• control operations or services in order to meet customers’ needs.<br />The ability to manage is essential at all levels in the organization.<br />However, for a business to excel, leadership is vital. A leader is somebody who sets the direction and inspires other people. A leader is able to influence others in meetings or when making decisions. This helps to achieve the goals of the organization. Enterprise has leaders at all levels of its business, not just senior management. Some people are natural leaders. For example, the captain of a school Cricket team will probably have the ability to influence others. Leaders can also develop through training and education.<br />A dreamer, an achiever<br />He has the knack to strike at the right place at the right time. His contribution in shaping<br />the modern telecom industry in India earned him the sixth place in the Forbes list of ‘India’s 40 Richest’. <br />Although he belonged to an influential political family, he chose to become a first generation entrepreneur. He started his first venture in 1976 with a capital investment of Rs.20,000 ($487) for a small bicycle firm at Ludhiana city in the north Indian state of Punjab, but soon realized that the potential to scale up this business was limited.<br />He shifted his focus to import and distribution operations in Mumbai, India’s financial capital and New Delhi, country’s national capital and started importing portable generators from Japan. The flourishing venture, however, faced a sudden road-block when the government banned the import of generators as it awarded licenses to two Indian companies for manufacturing generators in India.<br />However, during a trip to Taiwan he came across electronic push button phones. He sensed an opportunity, as only bulky rotary phones were available to Indian users that time. In 1982, he introduced the push button phones to India. This was the first experience of Indian consumers with modern age telecom. He formed Bharti Teletech Ltd and started manufacturing push button phones in technical tie-up with Siemens AG of Germany. His company is now one of the largest manufacturers of telephones in the world.<br />The real opportunity for Sunil came in 1992, when the Indian government awarded licenses for GSM mobile phone services first ever in the country. Armed with considerable experience in telecom manufacturing, he secured the licence for offering mobile phone services in Delhi. His company Bharti Cellular Ltd started mobile phone operations in 1995 under the brand name AirTel.<br />The initial years of the cellular business were not as rosy as they are today. The role-out of telecom services required a lot of initial investments and the returns were not adequate due to the low subscriber base. With the help of private equity investors and foreign partner Singapore Telecommunications Limited, Singapore's largest telecommunications company, he successfully met the challenges of capital intensive role-out, cut throat competition and policy changes.<br />Sunil has expanded the single circle mobile phone service in to a pan-India integrated telecom company with market capitalization of about Rs.1,500 billion ($36 billion), the third highest in India after Reliance Industries Ltd, largest private sector diversified conglomerate and Oil & Natural Gas Corporation Ltd, state owned largest oil refiner.<br />After establishing Bharti AirTel as the largest telecom service provider among the private telecom operators in India, Sunil Mittal has turned his attention to new opportunities such as Retail, Agro-exports and Life Insurance. Also, he has just been elected as the President of the Confederation of Indian Industries (CII), a non-government, not-for-profit, industry led and industry-managed organization.<br />Bharti's "
Professionally Managed, Entrepreneur Supported"
model <br />Responsibility towards employees: Employees is one of the most important drivers of growth and success for any organization is its people. At Bharti AirTel his Mantra for employee delight focus on 5p’s.<br /><ul><li>People
Building a team by recruiting talent.</li></ul>Extract from Sunil Mittal's interview to Forbes India.<br />When we started out, we were an entrepreneur-led, entrepreneur-promoted company. We did a great job. In some companies, this phase lasts forever. Nothing wrong. But in my view, if you do that, you remain small. You can’t manage a large company using this model. So we moved to the next stage — entrepreneur-led and professional-supported. Over the last four years, we’ve moved to professional-managed and entrepreneur-supported. And that’s where we want to keep it.<br />There is one more stage — professional-led and professional-supported. Vodafone is in this mould...No single shareholder is dominant...Parts of our organization were moving to the professional-led and professional-supported model. I had to pull it back because I figured they were becoming too bureaucratic. Things didn’t move; too many approvals were needed; too many emails. That is something we want to avoid...You must feel like the deer in a forest, which is always afraid of being attacked. Else you’re dead. <br />Entrepreneurs do it intuitively. For professionals, it is part process and part intuition. When we wanted to outsource our network, it was considered blasphemy. Akhil [Gupta] and I spoke about it many times. I know how many obstacles he had to face to take it through. Everybody was dismissive of the idea. Sometimes, seniors will not only say this isn’t good, they will work hard to ensure it isn’t good. I had to protect him. That’s where the professional-managed entrepreneur-supported model comes into play. I said let’s go...If I were a professional CEO and even if I had the guts to take on the board, I don’t think I would have got the approval. The board would have batted on the safe side.<br />India’s 'Wireless Wonder'<br />Naming India's Sunil Mittal as Asia's Businessman of the Year 2009, Fortune Magazine calls him a 'Wireless Wonder' who has built a mobile-phone empire by turning outsourcing on its head. Now the founder and CEO of India's leading mobile company, Bharti AirTel, is plotting a retail revolution with a new partner - Wal-Mart, said the magazine in the cover story of its international edition.<br />India's No. 1 mobile provider with subscriptions shooting past the 30 million mark is expected to report revenue of more than $4 billion in the fiscal year ending March, up from $509 million in 2003. Bharti, which lost money every year until 2003, has posted rising profits every year. Its stock is on a tear, rising to more than $14 a share on the Mumbai exchange in late December, a fivefold gain since 2003. With a market capitalization of $26 billion, Bharti has emerged as India's fourth-most-valuable firm, and Mittal one of India's richest men.<br />In 2004 he signed contracts worth $400 million to hand over operation of Bharti's entire phone network to Sweden's Ericsson, Germany's Siemens and Finland's Nokia. The deal means Bharti no longer has to worry about buying and maintaining equipment. Instead it pays the European vendors a fee determined by customer traffic and the quality of service the firms provide. That same year, Mittal signed a ten-year, $750 million contract with IBM, farming out the bulk of Bharti's information-technology services, including billing, management of customer accounts and even operation of the Bharti intranet.<br />The IBM contract is a revenue-sharing arrangement, but the objective is the same as the deal with the European equipment vendors: freeing Bharti to do what it does best - marketing, devising new services for its customers, and searching for new business opportunities.<br />Now Mittal is forging his most audacious foreign partnership yet, Fortune said. In November he announced that Bharti Enterprises will team with Wal-Mart (Charts) to transform India's underdeveloped retail market.<br />Terms of the alliance, structured to end-run Indian restrictions barring foreign investment in any retail operation offering customer’s more than one brand, grant Bharti full ownership of stores selling directly to Indian consumers under the Wal-Mart name.<br />Bharti and Wal-Mart will form a separate joint venture to take on back-end activities in which overseas investment is permitted, including wholesale, logistics, supply-chain management and distribution. The companies haven't disclosed who will own how much of the joint venture. But Fortune citing Mittal says he will open hundreds of stores over the next five years in formats ranging from super centre to neighborhood market, and he predicts investment in the venture will exceed $1 billion.<br />Level 5 Leadership<br />Conclusion<br />Management is about getting things done. Leadership is about achieving goals by creating a direction for a business and inspiring employees to take initiative and make the right decisions. Enterprise managers need the skills to motivate, lead and influence others. Enterprise aims to employ people who can take on a leadership role and help to grow the business for the longer term. Its management and training programmes help to provide employees with the skills necessary to lead others.<br />This case study illustrates that individual differ in many ways, including personality, values, attitudes and style of thinking and decision making. There are two leadership styles that rely strongly on the Individual leader personal characteristics, which are Transactional leader and Transformational Leader. Depending upon the circumstances, leaders will use different leadership styles, by developing leaders who are able to make decisions at a local level, Enterprise can respond more closely to customer needs within a competitive service industry. Its high levels of customer service provide it with competitive advantage over its rivals.<br />Questions<br /><ul><li>How did Mittal rise to the challenge of managing breakneck growth?