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Viva Automation’s Survival: Madan Mohan’s Revival Plan

CASE STUDY, STRATEGIC MANAGEMENT
ET Cases, 14 pages

Case Preview

Viva Automation’s Survival: Madan Mohan’s Revival Plan

 

Industry was facing turbulent times and mostly Automotive, Engineering, Steel, Infrastructure, and related industries were under economic slowdown. Business was tough and many companies were laying-off their staff and some were even closing shops. Investments were not forthcoming and no new ventures were being initiated across the sectors.

Viva Automation was also one among the scores of companies that were at crossroads, it had not grown substantially as its turnover was hovering around the 4 crore mark for the past 8 years. The management was not sure how to deal with this stagnated situation. The low growth rate had resulted in low morale environ among the employees. Customers were not considering repeating orders to this company. Economic slowdown had struck and survival of the fittest was the watchword of the industry. Management was unable to decide whether to divest from this current business, as the recession loomed large and employee turnover was on the rise.

Viva Automation was involved in the field of Robotics and Automation. The past financial performances of the company were not very satisfactory. Viva Automation saw a string of new leaders and most did not have a strong vision to grow the business in the right direction. The kind of projects executed mainly were those of selling of components used in the robotics and automation industry namely motors, drives, controllers, some automation solutions were provided for cement, steel, textile, automotive industries, and some non-critical mechanical and electronic components were provided by taking up outsourced jobs from these industries. As of 2011–2012 the number of employees in this company was only 25 with diverse skill sets. The direction of business at Viva Automation helped little to develop the skill-sets of their employees to those levels which were required to be able to take up high-end robotics and automation industry projects with exponential returns. The Business Growth Areas in focus too were very diverse and incoherent. Market conditions did not favor big investments in the fields of expertise of the company. Areas which would give immediate Return on Investment were not explored over the past 8 years as the company growth had been stagnated.......................

Teaching Note Preview

Viva Automation’s Survival: Madan Mohan’s Revival Plan

 

Synopsis

Managing technology strategies is a challenging task and has prime importance in a firm’s business strategy formulation. Today, technology and disruptive manufacturing methodologies can make a significant difference in winning and losing competitive strategic alternative. This case study is targeted on the formulation of winning business strategies including analysis on technology and operations strategies with focus on robotics and automation. The case study also focusses on how the formulation of correct strategies brought exponential business growth and success to Viva Automation.1 Robotics and Automation has touched almost all aspects of industrial applications from Welding, Assembly automation, Painting, Pharmaceutical, Packaging, Spot Welding, Food & Beverages, FMCG, Healthcare, Rehabilitation and many more sectors. Apart from the manufacturing industry, robotics and automation also finds its niche place in Defence and Power Sectors including nuclear power generation.

Expected Learning Outcomes

  • • Draw the strategies which will grow the Viva Automation exponentially from a 2.5 crore company to 30 crore company in 3 years
  • • Perform the Competitor Analysis and strategize to beat the competition, gain market share and high business growth
  • • Learn to innovatively use relevant frameworks, their pragmatic application and draw prudent conclusions to meet the set goals
  • • Analyze qualitatively and quantitatively whether a given investment in an identified Business Growth Area will give the requisite ROI in the short and long term
  • • Perform a GAP Analysis and identify areas of concern that needs reinforcement of resources in order to achieve the goals

 

Case Positioning and Setting

Functional areas where the case study can be used are as follows:

  • • Marketing Management, Strategic Management, Entrepreneurship Management, Technology Management and Financial Management

 

Assignment Questions

  • I. Using a suitable framework, Can you perform a market landscape and competitor dynamics analysis for the case study in question?
  • II. Using the top six competitive factors in this case study how can you perform a simple polar competitor analysis?
  • III. How can you derive the strategic alternatives that can take the company ahead of its competitors in the same industry?
  • IV. ...................

 

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Abstract


This case study enables to critically analyze how Viva Automation which had invested in the Hi-Tech field of Robotics and Automation survived the competition and successfully strategized to grow exponentially in spite of facing the dark clouds of recession. The analysis involved the use of proven frameworks and chalking out a Business Plan which would take Viva to the next league of growth. The execution of this business plan warranted the involvement of management and the entire staff of Viva. The company had to revitalize itself to draw an altogether different business model wherein the company and its partners were motivated and explained the new path that the company would be striding on in the next 3 to 5 years. Explaining how their support would make this a possibility had all the stakeholders lined up for the aggressive line of action plan. This gave sufficient time for each of them to gear up for the new scenario of achieving exponential growth and all got ready to put in their might behind this humongous effort. The goal defined was to grow the company Viva Automation from a ₹2.5 crore company to being a ₹30 crore company within a span of 3 years. Initially, this seemed to be an impossible task. But by using out of the box Business Strategies, good execution planning and excellent teamwork this company succeeded in achieving the goals set and is still continuing to do well even today.



Pedagogical Objectives

  • To draw the strategies which will grow the Viva Automation exponentially from a ₹2.5 crore company to ₹30 crore company in 3 years
  • To perform the Competitor Analysis and strategize to beat the competition, gain market share and high business growth
  • Learn to innovatively use relevant frameworks, their pragmatic application and also to draw prudent conclusions that help to meet the set goals
  • To analyze qualitatively and quantitatively whether a given investment in an identified Business Growth Area will give the requisite ROI in the short and long term
  • To perform a GAP Analysis and find out those areas of concern where there needs be reinforcement of resources in order to achieve the laid down goals

Case Positioning and Setting
Functional areas where the case study can be used are as follows:

  • Marketing Management, Strategic Management, Entrepreneurship Management, Technology Management and Financial Management



This Case Pack Includes:
 - Abstract
- Case Study
- Teaching Note (**ONLY for Academicians)
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