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Case 15-4
Entered rural market through Breeze 2 in 1 In 1995, launched Kissan Annapurna iodized salt
Strong competencies in marketing and R&D
Describe and evaluate the Strategy employed by Hindustan Lever during 1995-2002 to grow their Top-Line
Focus on Innovation
many projects
Partnership with the manufacturers
4
Evaluate the controls and organization used by Hindustan Lever to implement its growth initiatives in Kissan Annapurna Iodized Salt
shampoo
First emphasized on purity, then on health and
Annapurna scholarships
6
What criteria would you use to select from the many growth proposals that have been submitted to the chairman, Mr. Banga? Why do you choose these criteria?
1) Blend of financial & non-financial measures is required 2) Non-financial measures are used at low levels for task control 3) Financial measures are used at high levels for management control
FINANCIAL MEASURES
Sales (value) Expenses Budget compared to actual value 8
of sales Sales (quantity) Net income Contribution margin Budget compared to actual net income Budget compared to actual expenses Return on sales Return on equity
products / services
o Environmental compliance
Given you decisions, what practices and processes should HLL retain?
Retain:
Focus on Innovation
Continuous R&D Marketing strategies Encouragement to all the levels of management for
new ideas
New processes and practices to be developed: Better forward integration Logistics management Joint ventures
1 0
Thank You