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.......................