Strategic Leadership: The story of Maruti Udyog Ltd. and R. C Bhargava
Leading change is considered to be one of the most important and difficult responsibilities for administrators. It involves guiding, encouraging and facilitating the collective efforts of members to adapt and survive in an uncertain and sometimes hostile environment. As part of the change management initiative, Bhargava witnessed all the elements involved in change-creation: conflict and crisis and evolved as the change agent for Maruti Suzuki.
Maruti Suzuki is a company that came into being with the government of India as its majority owner, has ceded charge to its Japanese partner, Suzuki Corporation and through its days of origin Bhargava has been the troubleshooter-in-chief for Maruti Suzuki for issues ranging from indigenization to shareholding, control, labor issues and lock-out.
Major changes took place in Maruti involving both political and administrative aspects but Bhargava has enjoyed the confidence both of the government – till it exited the company fully in 2006 – and of Suzuki, which now owns 56.2 % of the shares of the company......................
Maruti Udyog Ltd.: Background
The Maruti story gets well conveyed in its website through the following message, “If you have travelled in India, taken a route to anywhere around this great nation, chances are you’ve driven with us. For over three decades now, Maruti Suzuki cars have been going places.”..........
Bhargava as a strategist
While nationalizing Sanjay Gandhi’s Maruti Ltd., the Parliament decided that it was imperative to establish a government company to modernize the Indian automobile industry. The management of Maruti being synchronous to the idea developed a strategy to achieve this objective within the constraints of operating as a public sector organization. Bhargava believed that the infusion of Japanese management and labor practices would equip and enable Maruti to lead the industry to productivity. Maruti was a deviation from.............
The New Project
In January 2014, Suzuki announced that they would build, own and run the plant and sell those cars to Maruti which went down very well with Bhargava’s sense of business. The announcement created waves in the government about Bhargava’s position in the proposal – whether he was viewing the proposal as the Chairman of Maruti Udyog or as a representative of Suzuki...........
Man Who Keeps Going
Bhargava has been busy working towards the formulation of strategies, policies and structures that translate vision, mission and core values into business possibilities. He is still working on to create an environment for............
Assignment Questions
I. R.C.Bhargava played a strategic role in leading Maruti Udyog Ltd., from the front. Elaborate.
II. ‘Making profits on a sustained basis is a necessary condition for any company to survive for long.’ Bhargava has tried to live up to this philosophy. Discuss
III. .............
Exhibits
Exhibit I: Profile of R.C.Bhargava
Exhibit II: Vision and Core Values
Exhibit III: Maruti Suzuki Sales in September 2014