Strategic Profile of L&T Group
Strategic Profile of L&T Group
Strategic Profile of L&T Group
Strategic Management
IIFT Kolkata (Batch of 2019-21)
Vision
Values
INTERNAL FACTORS
SO Strategies WO Strategies
Opportunities(O) S1.3-O1: Use brand name & manufacturing W1-O3: Venture into new
1) Govt. spending capabilities to gain projects emerging from overseas market by leveraging
on infrastructure govt. spending on infrastructure FTAs to reduce dependence on
2) Online Platform S2.4-O2: Exploit online platforms by using domestic markets
3) Govt. free trade strong distribution networks & reliable W2: Reduce funding projects on
EXTERNAL FACTORS
Firm Infrastructure
- Total 59 Buildings across India with 17 Green Buildings (USGBC Certified) *
SUPPORT ACTIVITIES
Technology Development
- Maintaining green products and services which contributes 25% of its revenues
Procurement M
- Large Number (44116568) of electrical and automation products and heavy engineering A
Equipment to sustain magnanimous projects like Statue of Unity, Motera Stadium R
G
Inbound Operations Outbound Marketing Service I
Logistics Logistics & Sales N
o UCGBC Certified 17 Green buildings. In which 6 are LEED Platinum and 6 are LEED Gold
o 986 Patents filled &148 patents granted, E&A Division acquired 143 Patents, 309 Designs, 189 Trademarks & 12 Copyrights
o Total 3951 MSME Suppliers for group as of 31st March 2019
o Personalizing the training experience of tech -savvy employees with ‘ATL Next’, An extension of ‘Any Time Learning
(ATL)’
MBA (IB) 19-21 GROUP D
L&T group has successfully implemented the change in their eco system at regular interval.
Their 4- tier governance structure (i- Strategic Supervision, ii- Executive Committee, iii-
Strategy and Operational Management, iv- Operational Management) builds and ensure greater
management credibility and accountability.
The L&T Group has anticipated the future challenges like scarcity of water, climate change,
Implementation of AI in process and already started taking necessary steps to mitigate risk i.e. (i)
12.45% reduction in domestic water consumption (ii) Reduction in total energy consumption
intensity by 5% in FY19. (iii) Reduction in direct greenhouse gas (GHG) emission intensity by
5% and etc.
L&T group has the strong and masculine brand image in consumer’s mindset, and they have
delivering their responsibility towards society as well with Rs 1667 Million in CSR Activity.
L&T has put in place a nuclear equipment forging shop in Hazira in Gujarat at an investment of
Rs 1500 crores.
L&T, as per plan will create three operating companies to look after defense, aerospace and
nuclear power sectors for effective operations.
L&T can focus on innovation to differentiate its products and spend on differentiate its products
and spend on marketing to build strong brand marketing to build strong brand identification.
This will help it retain its identification
It can have multiple suppliers within its supply chain. For example, it can have different
suppliers for its different geographic locations. This way it can ensure efficiency within its
supply chain
It’s highly unlikely for a group like L&T to have a negative foreign currency reserve (INR -
0.17bn) financial capability determine the company’s future approach for expansion. So L&T
should take into account Foreign Currency Exchange Risk
L&T should use its reputation and core competencies to win and complete more and more projects
abroad and thus gaining the revenues maximized in those geographies also
With the government spending more and more on infrastructure & smart cities. It is the golden
time for the L&T to raise capital for winning more and more contracts and using its core
competency to increase their revenue
L&T needs to build a large customer base, as the bargaining power of buyers is weak. It can do
this through marketing efforts aimed at building brand loyalty
References: -
o https://www.larsentoubro.com/
o https://www.mbaskool.com/brandguide/conglomerates/7954-larsen-a-toubro.html
o http://sustainabilityreport.larsentoubro.com/SupplyChain.asp
o http://annualreview.larsentoubro.com/transportation-infrastructure.html
o https://www.linkedin.com/company/larsen-&-toubro-limited/life/campusengage/
o https://www.lntsustainability.com/integrated-report/