...Luke Sutton | 10/8/2012 | Case for Critical Thinking: Satyam – the ‘Enron’ of India. | Table of Contents Background to case study1 introduction to management issues1 Identification of management issues2 rationalisation behind unethical behaviour2 corporate governance and social responsibility2 recommendations3 Implementation of recommendations3 references4 1.0 BACKGROUND The purpose of this case study is to identify the management issues of Satyam Computer Services Limited’s, former chairman Ramalinga Raju when he admitted to corporate fraud in 2009, and how these issues could be addressed. Satyam Computer Services Limited, (now known as Mahindra Satyam) is a “leading global information communications and technology company”. (Anon., n.d.) It is a part of the “US $15.4 billion dollar Mahindra group, a global industrial federation of companies of the top 10 business houses based in India”. (Anon., n.d., p. 1; Anon., n.d.)). 1.1 INTRODUCTION TO MANAGEMENT ISSUES “India’s corporate community experienced a significant shock in January 2009 with damaging revelations about board failure and colossal fraud in the financials of Satyam.” (Afsharipour, 2010)Ramalinga Raju and the CFO of the company were charged with “conspiracy, cheating and falsifying records. Raju was also allegedly using salary payments to fabricated employees, in order to steal money from the company.” (Anon., n.d.) This case study will explore the unethical behaviours of Ramalinga Raju, but...
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...AYUSH MAJUMDER <12063> ANSHU <12068> DEBAJYOTI CHAKRABORTY <12073> PRITHIV PRASAD C<12078> KOPPARAPU SRIVATSA <12083> MAYUR J <12088> NOOPUR KHARE <12093> ROSHAN SHETTY <12098> SANJEEV S<12103> SHWETA PATHAK<12108> SUPROTIM GANGULY<12113> VINAY PRAKASH<12118> INFORMATION TECHNOLOGY SECTOR Project Work on Human Resource Management ------------------------------------------------- Accenture ------------------------------------------------- TCS ------------------------------------------------- Tech Mahindra ------------------------------------------------- SUBMITTED TO : Dr.MOUSUMI SEN GUPTA DATE : 10/08/2012 GROUP : 3 [SECTION B] Contents Overview of the Information Technology Sector 4 Major players according to revenue (global) US$(Billion):- 4 Top 5 Indian IT companies 5 HR POLICIES 6 ORGANIZATIONAL HIERARCHY:- 6 Recruitment and Selection:- 6 Training and Development:- 7 GRIEVANCE REDRESSAL:- 8 Compensation Management:- 9 APPRAISAL PROCESS:- 10 REWARDS & RECOGNITIONS/MOTIVATION:- 12 CSR activities (Corporate social responsibility) 13 Education and Learning:- 14 Best HR Practices 15 Similarities in terms of HR policies and Strategies 16 Differences in terms of HR Policies and Strategies 16 Conclusion 17 References and Acknowledgement 18 Overview of the Information Technology Sector Information technology...
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...MAHINDRA GROUP COMPANIES As of 31st March 2012, the Group flagship company Mahindra & Mahindra Ltd. had 110 Subsidiary Companies Sr. No. 1 Industry Aerospace Group Company Mahindra & Mahindra Limited Mahindra Aerospace Private Limited Mahindra Aerostructures Private Limited Mahindra Aerospace Australia Pty Limited Gipp Aero Investments Pty Limited Nomad TC Pty Limited GA 200 Pty Limited GA8 Airvan Pty Limited Aerostaff Australia Pty Limited Airvan Flight Services Pty Limited Gipps Aero Pty Limited Nature of Relationship Sector Products / Services Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Systech IP holder for Type Design Data IP holder for Type Design Data IP holder for Type Design Data Aero Components Aircraft Operating Company Aircraft 2 Aftermarket Mahindra & Mahindra Limited Mahindra Spares Business Mahindra First Choice Wheels Limited Mahindra First Choice Services Limited Division Subsidiary Subsidiary Aftermarket Spares Buying & Selling Used Cars Multi-brand Service of Cars 3 Agri-business Mahindra & Mahindra Limited Mahindra Shubhlabh Services Limited Subsidiary Automotive & Farm Fresh Produce, Agri-Inputs 4 Automotive Mahindra & Mahindra Limited Mahindra & Mahindra Limited - Automotive Division Mahindra & Mahindra South Africa (Pty) Limited Mahindra Automobile Distributor Private Limited Mahindra Navistar Automotives Limited Mahindra...
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...What happened to Satyam? Satyam Computers, the fourth largest IT industry of India, The member of Nifty 50, BSE Sensex, winner of golden peacock award for best corporate governance, and many more laurels that it has in its kitty did not stop it from drowning like a rock in its dirty waters. Ramalinga Raju of Satyam computers, confessed in a four page letter, stating that the accounting books of Satyam had been hugely inflated and that the company did not have that much of money as it was showing. In layman's terms, the company had been from that time lying about the amount of money that they had. Imagine a person telling you he has Rs 10000 but in reality has only Rs 50. Only that the proportion was so high that it took many down with it. This is done in business so that the reputation of the company maintains in business circles, the company keeps getting clients because of its strong liquidity position and investors keep pumping money into the company, to earn more money. Only that all of this was based on pure lies. Ramalinga Raju claims that he did not take any personal advatange and there was no money laundering. A few days back Ramalinga Raju, decided to buy his sons contruction company MAytas infras for around 1 Billion $ so as to plug the hole between the actual company finances and the projected finances. We can only imagine in his mind. The best guess is, he would have deffered payment to Maytas, and then would have shown the gap as the money involved in paying Maytas...
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...Strategic Management Article on: Tech Mahindra By Pratik Deshpande J010 MBA TECH EXTC Tech Mahindra’s Successful Strategy Towards its Vision Nowdays it’s a digital era and the whole world has a vision of IOT (Internet of Things) on the Machine To Machine Platform (M2M) . A recent small invention to it is the smart watches which are connected to your mobile platform and you can do the function through that medium. So here the Tech Mahindra was successful in predicting the worlds vision long back and went to acquire it. Tech M vision was “Connected World ,Connected Solutions” . To represent itself as the connected world, innovative and customer-centric information technology services and solutions provider that enable Enterprises, Associates and the Society to Rise. Its vision is to become $ 5 billion company by 2015 end. The aim of the vision is to connect to 287,714 users, 3431 followers to get the analysis of customer required services and 522 ideas approved for funding. It also aimed that with new networking technology (eg: Internet, mobility, social media and networking ) a virtual platform is build up for innovation. The third aim is to redefine the usability aspect of internet and technology via a digital ecosystem. For all the above aims the solution was to provide solution and services in all areas with expertise that will enable to reduce cost , improve revenues, improve efficiency levels, better output and proper management and control. To fulfill this vision...
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...Tech Mahindra was incorporated as a joint venture between Mahindra & Mahindra and British Telecom plc in 1986 under the name of ‘Mahindra British Telecom’. Later, the name was changed to ‘Tech Mahindra’, to reflect the diversification and growth of the client base and the increased breadth of our service offerings. With Satyam acquisition, Tech Mahindra is well positioned to be a leader in the broader IT services space, serving a wide array of industry verticals like banking and financial services, manufacturing, energy and utilities in addition to telecom Tech Mahindra is part of the US $14.4 billion Mahindra Group, in partnership with British Telecommunications plc (BT), one of the world’s leading communications service providers. Focused primarily on the telecommunications industry, Tech Mahindra is a leading global systems integrator and business transformation consulting organization. Tech Mahindra has recently expanded its IT portfolio by acquiring the leading global business and information technology services company, Mahindra Satyam (earlier known as Satyam Computer Services). Tech Mahindra’s capabilities spread across a broad spectrum, including Business Support Systems (BSS), Operations Support Systems (OSS), Network Design & Engineering, Next Generation Networks, Mobility Solutions, Security consulting and Testing. The solutions portfolio includes Consulting, Application Development & Management, Network Services, Solution Integration, Product Engineering...
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...The below are the requirements for term paper. 1)Title 2)Object 3)Review(2 articles) 4)Analysis 5)conclusion 6)Source(References) http://www.businessweek.com/blogs/globespotting/archives/2009/01/satyam_scandal.html The terror attacks on Mumbai were just a tremor for the country’s tech industry compared to the shocks coming from the Satyam scandal. Earlier today, Ramalinga Raju, Satyam’s founder and longtime chairman, admitted in a letter to the board that he had been cooking the books for years to make up for revenue and profit shortfalls. Read the details in this report by my BW colleague, Manjeet Kripalani. In his letter, Raju wrote that the cover-up finally got the best of him: “It was like riding a tiger, not knowing how to get off without being eaten.” This admission will have a crippling impact on Satyam. Its chances of getting new business are nil. Don’t expect its current customers to abandon the company overnight. That’s not easy in a tech services business where the operations of the client and service provider are so interwoven. On the other hand, it’s possible that the company may collapse financially, in which case clients will have no choice but to flee. Which brings us to a bigger shock: This betrayal of trust could have a major impact on the entire Indian tech services industry. The industry has spent 20 years building up credibility with Western clients, but this disaster will make many US and European clients rethink their reliance on Indian outsourcing...
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...27 March 2012 India Tractors The growth story continues continues…. Mayur Milak (+91 22 ) 4096 9749 mayurm@dolatcapital.com mayurm@dolatcapital com 1 Executive summary Why did we do a follow-up report on tractors NOW ? The tractor industry has grown at a CAGR of ~12% during last five years. After a splendid performance, during the last two to three years, the Indian tractor industry is believed to head for a slow-down , we believe otherwise and hence our stance to b buy i into tractor at this j hi juncture. Our takeaways: There is an increasing lack of cheap farm labour due to migration to urban areas, leading to more mechanisation. Further, f F h farm i income h has grown at a CAGR of 12 8% d i f 12.8% during l last fi five years. W expect this growth to sustain going We hi h i i forward, which will continue to boost tractor sales. Contrary to popular belief, rainfall does not affect tractor sales directly. Other factors such as higher farm income, availability of water (irrigation facilities), cheaper and more easily available finance, successful implementation of government schemes (NREGA) and higher MSP are the key drivers for growth in tractor sales. We expect tractor demand to grow by 11-12%, going forward. All key drivers are in place and adequate availability of water is expected with a forecast of regular and timely rainfall. Our top-pick: M&M top pick: M&M has always been a leader in the farm equipment sector. After acquiring Punjab Tractors Limited (PTL), it...
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...Riding a Tiger… Wipro Infotech, is the leading IT Company offering integrated IT solutions to various clients in India, the Middle East and Asia-Pacific. The present Chairman of the company, Azim Premji was reelected as the Chairman of Wipro Infotech for a period of 2 years, i.e. end of July 2011. His reappointment was unanimously supported by the shareholders of the company. Majority of shareholding of the company, i.e., 79.32 percent of shareholding in Wipro Infotech was held by the Premji and his family members. The company reported a profit of Rs.79/- crore in the first quarter of 2009 under his leadership. The success of the company is attributed to ethics that are practiced in the company in addition to the timely strategic business decision made by the management. The chairman practices ethics in the business and they only preaches. Premji strongly believes that ordinary people are capable of extraordinary things and that the key to this is creating highly charged teams. He takes a personal interest in developing teams and leaders and invests significant time as a faculty in Wipro’s leadership development programs. Premji is firmly committed to the belief that business organizations have deep social responsibility, and such responsibility shall be discharged by conducting ethical and fair business, by involvement with community issues and by building an ecologically sustainable business. It’s that kind of integrity that has catapulted Premji and Wipro to unprecedented...
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...1 Strategy Implementation Course Project - Globalization of Mahindra A Report by Group 7, Division D, MBA Core 2014-16 D037 – Karishma Mehta D038 – Ronak Mehta D039 – Tanmay Mhapsekar D040 – Amit Mirchandani D041 – Priyadarshi Mishra D061 – Rahul Tiwari 2 Table of Contents Mahindra Rise ................................................................................................................................... 1 Strategy Executed ............................................................................................................................. 1 Organic growth strategy ............................................................................................................... 1 Mergers and Acquisitions ............................................................................................................. 1 Future Targets................................................................................................................................... 2 Competition ...................................................................................................................................... 2 World’s Most Admired Global Companies ........................................................................................ 2 Analysis of Mahindra’s Current Global Scenario ............................................................................... 3 Financial Position ..................................................................
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...VANITA YADAV C.V. BAXI CORPORATE GOVERNANCE FAILURE AT SATYAM “Why do you want to quit Satyam,”1 the panel member asked the 30-year-old employee being interviewed. Satyam Computer Services Ltd (“Satyam”) was India’s fourth-largest computer services company; however, many employees had left and applied for new jobs after news of a US$1.4 billion corporate fraud at Satyam became public in December 2008. 2 Satyam’s governance failure had severely shaken its stakeholders and the global business community, and the business press worldwide referred to Satyam as “India’s Enron”.3 Satyam was listed on the New York Stock Exchange (“NYSE”) in 2001 and on Euronext Amsterdam in 2008. 4 It boasted a large number of clients, including many Fortune 500 companies.5 The founder of Satyam Computer Services, B. Ramalinga Raju (“Raju”), was a highly regarded entrepreneur and an eminent fixture at prestigious corporate events in India.6 In 2007, he was honoured with the Ernst & Young Entrepreneur of the Year award, yet a mere two years later, on 7 January 2009, Raju made the calamitous confession that he had falsified accounts on a grand scale over a long period of time. His shocking announcement sparked a big debate over whether India possessed adequate guidelines for corporate governance. 7 How did Raju commit a fraud of such magnitude? How could a successful company, twice awarded the Golden Peacock award for corporate governance excellence collapse in such a manner? 8 Where did the internal...
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...Ashish Tripathi EXECUTIVE SUMMARY Club Mahindra holiday is a consumers service industry which is part of Mahindra group having infrastructure of US $ 14.4 million. Under Club Mahindra flagship Mahindra Holiday and Resorts India Ltd (MHRIL) was started in 1996 as a realty sector of Mahindra group brought up for bring values, reliabilities and trust and customer satisfaction. Club Mahindra has got an affiliation with RCI which consist of 60% of the service industry market share, which make Mahindra holiday timeshares largest holiday ownership brand in India. Apart from being a customer centric company club Mahindra performs various Corporate Social Responsibilities for the well fare of people, employees, its customers and environment. According to CESD, 2007 Tourism is becoming one of the largest business sector in the world showing 2005 receipt of international tourism reaching $6.82 trillion. Club Mahindra performs in service industry where revenue produced in 2008 by service industry was $4,028.6 billion showing CAGE OF 6.3% from 2004-08. (Datamonitor, 2009) Furthermore, club Mahindra perform or exist in environment where customers has the power to control the market. Whereas, large number of suppliers weakens them from leading, new entrants in service industry is very easy but the threat of substitutes and rivalry can lead to tough completion in this sector. Consequently seeing the services of the Club Mahindra, the potential market for its service expansion...
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...Industry Analysis: 1. Industry trends: Indian and Global perspectives, recent happenings Mahindra & Mahindra Ltd. is the flagship company of the Mahindra group presence in the Aerospace, Agribusiness, Automobile, Components, Defense, Energy, Farm Equipment and Logistics industries. Let take a look at the industry trends in its main line of business Automotive and Farm Equipment. Automotive Industry: The Society of Indian Automobile Manufacturers (SIAM) plans to propel the Indian Auto industry to a global $145 bn industry by 2016 whilst promoting sustainability by addressing the multiple challenges arising out of emissions, climate change, energy security and safety. It plans to achieve its target by increasing competitiveness between the local rivals and put in efforts to bring in more eco-friendly products. The automotive industry has a highly cyclic demand and looking at the current global and national economic scenario it is in for some tough times. Also with high inflation and increasing presence of global heavy weights in the local market, the Indian Automotive Industry is in for its biggest test till date. Also attention must be focused on using technology to built more fuel efficient cars, hybrid cars, cars with lower CO 2 emission. Companies will need to maintain a balance with their investments in technology and profits in order to have a sustainable growth and also look to expand to global markets. On the global scale the...
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...MARKETING MANAGEMENT – II PROJECT REPORT on Mahindra and Mahindra Motorcycle Launch Submitted by: Rupa Deepanju (2012261) Sagar Panchal (2012262) Sarath S (2012272) Shashank Doveriyal (2012292) Srinivasa Krishnan S (2012312) KLIO * Hamare Logon ke Liye Two Wheeler market size: The Indian two-wheeler industry is divided into three segments namely motorcycles, scooters and mopeds. Sales of the Indian two-wheeler industry were estimated at around Rs 650 billion in value terms and 15.4 in volume terms at the 2011-12. The industry has posted healthy growth over the past 5 years, growing at a CAGR of 15 per cent and 12.7 per cent, in value and volume terms respectively. In volume as well as value terms, motorcycles lead the two-wheeler market. In 2011-12, share of motorcycles in sales volumes was 77.6 per cent. The two wheeler industry is dominated by three players - Hero MotoCorp, Bajaj Auto and TVS Motors together contribute around 80 per cent of the domestic sales volumes. Over last 5 years, the domestic industry has clocked a growth at a CAGR of 11.3 per cent during 2007-08 to 2011-12. Motorcycles segment continue to rule the market Motorcycles can be further divided into three segments - economy, executive and premium. The economy segment comprises lower-end motorcycles (priced at Rs 30,000-40,000 when launched), whereas the executive segment (launch price between Rs 40,000-50,000) and...
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...Satyam Computers Limited-A case of corporate fraud. Overview: Satyam Computer Services (an IT company) is considered India’s Enron. The company CEO Mr. Raju was the main person involved. In the end, he admitted to faking company profit for numerous years and was arrested for 1.47 billion dollars in fraud. Fraudulent acts: Mr. Raju worked with the internal auditors to come up with ways to create non-existent profits and eliminate debt. For instance, he had fake bank accounts on paper in order to report fake interest income. In addition, internal auditors created fake customer identities to increase company revenue. According to Raju, the fraudulent activities started out only creating a marginal gap between actual and book profit. However, things got out of hand quickly. Cover-ups after cover-ups made the gap wider and wider. External parties involved: Satyam’s external auditors, PwC, were also under high scrutiny and criticism after the fall of Satyam. They were Satyam’s auditors for 9 years and signed off on Satyam’s financial statements annually. Under Indian law, if PwC signed off the financial statements, they are responsible for the numbers. Authorities blamed PwC because they failed to notice obvious red flags such as Satyam having a large no-interest bearing account. Reasonable companies would have invested the money in interest bearing accounts or distributed dividends to shareholders. Red flags raised: Merrill Lynch was appointed by Satyam to...
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