Case Study of new controlling system on USHA Int. and Maggi as examples. Content related to course Management Practices and Organizational Behviour on the topic controlling.

1. NEW
CONTROLLING
SYSTEM
Submitted by:-
11405752 Nimish
Arora E1413 A7
11404518 Abhishek
Mishra E1413 A11
11410191 Sudhanshu
Shekhar E1413 A29

2.  Usha International Ltd (the Company), a constituent
of the Siddharth Shriram group, was formed in 1934
and started doing business under the brand
name,USHA.
 The Siddharth Shriram group was founded by the
legendary Lala Shriram in 1889.
 Over the decades, this brand name has become a
household name in India while the Company has
diversified into the business of new age home
appliances, sewing machines, fans, power products,
water cooler, water dispensers, modern farm
equipments and auto components.

3.  Cooking Appliances
 Home Appliances: Fabric Care, Water Heating
Solutions, Climate Control, Power Storage Solutions
 Drinking Water Solutions
 Kitchen Appliances: Food Preparation, Brewing,
Cooktops
 Fans: Ceiling Fans, Table Fans, Pedestal Fans, Wall
Fans, Fresh Air Fans, Industrial Fans, Special
Application Fans
 Sewing Machines: Usha Janome, Hi-Speed Industrial,
Domestic Industrial, Accessories, Straight Stitch
 Electric Water Pumps
 Agri Business: Engines and Pumpsets.

4.  It started by USHA in March 2011 is a community based
initiative with the aim of skilling rural women and
empowering them to become entrepreneurs.
 Women are taught stitching and sewing skills to help them
earn a livelihood in their respective communities.
 USHA in partnership with local NGOs sets up Silai Schools in
some of the country’s most remote and rural corners.
 More than 1% from the sale of every USHA Sewing
Machine is invested into this program.

5.  Till date 4,507 Classic Silai Schools and 9,841 Satellite
Silai Schools have been created.
 Women Trained: 2,18,326
 Silai Schools in India: 14,348
 Partner NGOs: 52
 Corporate/Govt Partnerships: 13

6.  Control, or controlling, is one of the managerial
functions like planning, organizing,
staffing and directing.
 Controlling is the last function of management
process relates with regulating activities of the
organization.
 Regulating the work of those for whom a manager is
responsible this may include setting standards of
performance in advance, monitoring ongoing (real-
time) performance and assessing a completed
performance.

7. Mr. Aditya Mohan attempted to formulate an
appropriate controlling system.
Aditya Mohan previously worked in a reputed MNC as
assistant marketing controller, took charge as the
‘marketing controller’ of Usha International Ltd.
Wherever he worked, he applied his own new or
different method of working.

8. It was his belief that the new system should be
ideologically as well as practically sound; it must be fit
in all significant regards and must be objectively and
impersonally selected and implemented.
He firmly believed that only ‘fit’ could function
effectively in turbulent business environment.
His approach to work had yielded satisfactory
outcomes each time.

9. On the very first day, he reviewed marketing policies and
practices.
He discussed relevant issues with the former controller. He
arranged separate meetings with senior executives, followed
by junior executives.
Then he met the chairman and other top position holders.
He also shared his views with regular clients and customers.
At the end of a month, he evoked a new control system.

10. In the meeting, he highlighted key points of the proposed control system.
 New control system will be implemented from 1st October 2011.
 Team containing one member from every department will be constituted to review
performance in unbiased manner.
 Members of review committee will be appointed on rotation basis. They are to be
rotated after every two years.
 Profits, sales, customer satisfaction, new customers, competitiveness, relations
with outsiders, and growth rate will be used as criteria to evaluate departmental
and individual performance.
 Pay package, incentives, promotion and transfer, leaves authority, and other
rewards will be strictly linked with performance.
 Outcomes of every quarter performance will be communicated to relevant
employees.
 Employees will be given a chance to express their views.
 Control system is to be treated as preventive measures, it is not meant for
punishment

11.  Training:-The company has taken on the onerous task of re-
training the entire organization. The sales staff is being trained
in new approaches to selling in a competitive environment.
 IT Initiatives:-In keeping with the need for providing
transparency, better and faster data analysis, effective e-
commerce solutions and to build a backbone, USHA has
started the process of implementing state-of-the-art ERP
(Enterprise Resource Planning) solutions with a dedicated
team of managers.
This will have a direct impact in terms of high-speed availability
of data, transformation of data into management, information
for decision making and providing necessary tools for higher
customer satisfaction.

13.  At the end of May 2015, India’s Food safety administration (FDA) ordered
Nestle India to recall its popular Maggi noodles after tests showed that the
product contained high levels of lead and MSG.
 The brand which had been enjoying over 75% of the market share since ages
saw the worst days in 2015 with a nationwide ban on its instant noodle
product. The entire market with sales of worth Rs 250-300 crore a month
went down to 0% during the Maggi controversy.
 When the crisis first broke out, Nestle had said, "We use hydolysed
groundnut protein, onion powder and wheat flour to make Maggi Noodles,
which contain glutamate. We believe that the authorities' tests may have
detected glutamate, which occurs naturally in many foods." It also said that
in its routine tests done over the years, it never found Maggi containing
more than 0.03 ppm of lead, adding that the batch that was tested was an
old one (February 2014). Initially, the company rejected the accusation that
the noodles were unsafe and said on their website and social media
accounts that there had been no order to recall any products.

14.  Nestle used its Twitter and Facebook accounts to answer
customers questions about the levels of MSG and lead
found in their noodles.
 The company continued to re-assure customers that the
noodles are safe and that they are a transparent company
working closely with authorities in India to resolve the
issue.
 Nestle launches a FAQ page on the official website.
 Nestle recalled all Maggi noodles from India.
 Nestle decided to destroy more than $50million worth of
Maggi Noodles in India after they were deemed unsafe by
regulators.

16.  The return of Nestlé India's instant noodles brand has been
accompanied by a wave of nostalgia marketing with
campaigns such as #WeMissYouToo, #WelcomeBackMaggi
#MaggiMother and #NothingLikeMaggi. As part of the
above campaigns, Maggi has been relentlessly churning out
ads to remind consumers of the various ways in which the
noodles brand was a part of their lives. Whether it's a father
preparing a 'Maggi dinner' to impress his family once again
and to prove that he can be a good cook too, or college
alumni bonding with juniors over Maggi to relive their hostel
adventures, or even a 'dhaba' owner celebrating the return
of his hottest-selling product, the ads showcase the vivid
roles Maggi has played for consumers over the years.

17.  Playing the nostalgia card is a good strategy as Maggi was an
integral part of growing up for kids of the '80s and '90s. No
other generation really grew up with the 'Magic of Maggi'.
 "'Maggi, Maggi, Maggi' jingle was etched in our minds and our
hearts. So, when Maggi went off the shelves, people in their
early 20s and 30s felt as though a part of their childhood was
taken away (even if they weren't regularly consuming Maggi
at the time the packs disappeared from the shelves).
 Maggi played its cards smartly when it decided to take this
into account by making a deal with Snapdeal, which became
the only platform where Maggi packets were sold before its
official comeback into the shelves of all stores.