Case Analysis onMahindra Shubhlabh Services Ltd.                                   1
Contents             Situation             Analysis           Key Take Away           Players in Supply           Chain & ...
Push Pull View of FactsPresented     Customer     Order Cycle     • Harvested       Crops          Pull Processes         ...
Situation Analysis usingPorter Five Forces                                                          •   Low as an integrat...
Key Take Away - Visible   Brand Prowess alone cannot make the way: M & M assumed that their    brand prowess was sufficie...
Key Take Away – Visible(Cont.…)   Failure to Mitigate Risks: The major risk in the model was relying on    weak monsoons ...
Key Take Away – Hidden• The rural farmers do not easily believe or trust a new advisor so it’s a time taking  process to c...
Understanding the Players inSupply Chain                                 MSSL                               Customers     ...
Recommendations                             One Stop Solution                                 Provider• Presence in farmin...
Example on the points discussedInnovative Farmer:                                Farmers who grew the Bt variety obtained ...
Cash Crop/Crop Rotation:      A cash crop is an agricultural                                  If, crop rotation not possib...
Recommendations (Cont.…)                        End Product Trader• Acts as a focal point as a end point in Supply Chain.•...
Recommendations (Cont.…)                      General ( Common to Both the Options )   The contract clauses for the Franc...
Our Final Take   Remain a ONE STOP SOLUTION PROVIDER    with a prime focus on trading as the benefits    derived from bei...
   www.wikipedia.com   http://edugreen.teri.res.in/explore/bio/Btcot.htm   www.indiastats.com   http://hau.ernet.in/ex...
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Mahindra subhlabh services ltd

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  • Mahindra subhlabh services ltd

    1. 1. Case Analysis onMahindra Shubhlabh Services Ltd. 1
    2. 2. Contents Situation Analysis Key Take Away Players in Supply Chain & Options Available Recommendations 2
    3. 3. Push Pull View of FactsPresented Customer Order Cycle • Harvested Crops Pull Processes Push Pull Push Processes Boundary Procurement Order Cycle• Seeds • Farm Finance• Fertilizers • Output Marketing• Pesticides Services• Farm Equipment • Farm Solutions on rental basis 3
    4. 4. Situation Analysis usingPorter Five Forces • Low as an integrated One Threat of Stop Solution Provider New • High as a End Product Entry Trader Competitive Rivalry Hariyali Kisaan Bazaar, Aadhar, Choupal Supplier Power Sagar, Tata Kisan Buyer Power Sansar, Kisan Seva Kendra • High for Farmers as they many varieties• Less with current rate to select from of franchise signup and farmers Threat of acceptance Substitution • High as the options available are plenty including smaller players products 4
    5. 5. Key Take Away - Visible Brand Prowess alone cannot make the way: M & M assumed that their brand prowess was sufficient to get the franchises. The initial nonrefundable fee which was charged could have been relaxed. Deviation from the Triple Bottom Line Planning: The Model which initially outlaid importance of aligning economic benefits with social and environmental benefits had to alter the model after failure to create revenue. Community Engagement: The approach taken by MSSL where in the supervisor visited the field of farmers and provided technical advice which included seed selection, soil preparation and fertilizer application could have been more effective if they could create strategies for engaging the community rather than focussing on individuals who were registered. 5
    6. 6. Key Take Away – Visible(Cont.…) Failure to Mitigate Risks: The major risk in the model was relying on weak monsoons which were the main source of water. Further it overlooked the traditional mode of working where the potential franchise which they targeted were earlier acting as one stop shop for advise too. Need for thorough PEST Analysis: MSSL jumped to into the business seeing the overall agro input market of Rs. 45,000 crore. It failed to take into account the prevailing political, economic, social and technological trend at the micro level. 6
    7. 7. Key Take Away – Hidden• The rural farmers do not easily believe or trust a new advisor so it’s a time taking process to convert doubt into Trust.• The average repaying time which Indian farmers takes is about >120 days to 180 days.• The farmers gets these finances from people like input suppliers, traders, and processors. The Indian farmer usually have a Negative Image positioning on the established micro credit financers.• The established micro financing companies have a clear legal framework and seek registered credit history of the loan seeker.• Since the uncertainty existed i.e. number of farmers who are going to avail the services it is difficult to Demand Planning and narrow onto a EOQ ( Economic Order Quantity ) for procuring. 7
    8. 8. Understanding the Players inSupply Chain MSSL Customers APMC Govt. ( Agricultural Produce Farmer Market Committee )Options available for MSSL Two Options Exist End Product Trader One Stop Solution Provider 8
    9. 9. Recommendations One Stop Solution Provider• Presence in farming may act as cost center but is needed because this will help in developing a linkage (entire supply chain control).• Control on quality which is the biggest problem that exist for a isolated trader. Steps for Implementation • Invest not only in educating farmer but also franchise as this will help in better mind shift. • Also in rural India there is tendency to believe their heads in other words seeing is believing. • Should take in confidence the village head or farmer who is the having a better reach. By success of them it will be easy to communicate to lower rung of farmers. • After this trust is built then there is a need of advocate the practices i.e. MSSL way of doing it i.e. providing seeds, fertilizers, soil testing, growing crops as per market need like cotton and providing tools and equipment to increase yield etc. 9
    10. 10. Example on the points discussedInnovative Farmer: Farmers who grew the Bt variety obtained 25%–75% more cotton than those who grewWho are willing to take risk. the normal variety. Also, Bt cotton requires only two sprays of chemical pesticide against eight sprays for normal variety.  Ground level realities to be considered.  Bt Cotton can’t be grown anywhere because it is highly sensitive to bacteria, fungus etc. Cont. 10
    11. 11. Cash Crop/Crop Rotation: A cash crop is an agricultural If, crop rotation not possible due crop which is grown for sale for to land, cost, resources, etc. then profit. For e.g. go for legume plants ( soya blueberries, olives, strawberries bean, peas, etc.) etc. Legumes are plants which haveStory of village Saharwa of Hisar Distt. in Haryana. symbiotic nitrogen-fixing bacteria.Farmer is getting Rs.1.25 lac to 1.50 lac net returns per acre. Natural fertilizer of Ammonia.Strawberry is increased from 30 acres (2005-06) to 98 acres(2010-11). Help in increasing yield of another cropProviding the employment opportunities to about 150 persons on too.regular basis and about 60 persons on part time basis.established a small scale industry in the village & providing the Farmer generate revenue on Rs. 92,000regular employment. in 120 days from GUAR. Cont. 11
    12. 12. Recommendations (Cont.…) End Product Trader• Acts as a focal point as a end point in Supply Chain.• Good Option if company has no access to R & D or technology markets Steps for Implementation• Develop Markets for the produce• Focus on markets where small players in this business has lower reach i.e niche agro based commodities• Good relations with APMC traders 12
    13. 13. Recommendations (Cont.…) General ( Common to Both the Options ) The contract clauses for the Franchise needs modification especially clauses like providing suitable four wheel transportation to the MSSL official. Instead of rolling out standardised royalty and annual service fees should grade the franchise year on year and should give special incentive to the top performing franchise by slashing the minimum annual fees and royalty percentages to be paid to MSSL. Following the above point MSSL is making sure their franchise stays competitive and eye for being the top performers. Also it must give special focus on weak franchise so that MSSL is making its stance clear that they want the franchise to grow with the company and not the other way. MSSL should realise that the Business Model is not impossible to be copied giving rise to new entrants. The easiest strategy which a new player employs is usually entering in price wars. Price wars in terms of annual service fees and royalty charges. In such situations if the trade-off between the monetary benefit vs. the trust and bonding is smaller the franchise will opt to stick with MSSL hence preventing the attrition rate of among the franchises. 13
    14. 14. Our Final Take Remain a ONE STOP SOLUTION PROVIDER with a prime focus on trading as the benefits derived from being a isolated trading player can be also realised if existing as a One Stop Solution. 14
    15. 15.  www.wikipedia.com http://edugreen.teri.res.in/explore/bio/Btcot.htm www.indiastats.com http://hau.ernet.in/extension/sadalpur/ss_sad.pdf http://www.msamb.com/english/apmc/default.htm http://haryanaseeds.gov.in/products_field_crops_kharif_gu ar.html REFERENCES: 15
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