Small business norms to big business for success

1. Eighth International Conference on Operation and Quantitative Management (ICOQM- 8)October 17-20, 2007Assumption University, Bangkok, Thailand

2. Small business norms to big business for success Author: Dr.Sachin S Vernekar Director Bharati Vidyapeeth University Institute of Management and Research, New Delhi Co author: Dr. K. Venkatasubramanian Delhi

3. GoAir to go slow on expansion, look at IPOThere is an example of an LCC that grew very aggressively and then was acquired by another big player due to financial crunch. Source: Times of India, October 5, 2007.

4. Ambani needs to learn from Deveshwar - Swaminathan S Anklesaria Aiyar The ‘farm-to-fork’ strategy threatened rural intermediaries and others connected with government – run mandis. Why did Reliance not find ways of splitting opponents, co-opting some factions, and offering sops to potential losers like ITC’s E-Chaupal Source: Times of India, October , 2007.

5. Indian-Americans look at jews for inspirationLook To Work With ‘ Model Jewish Community’ Source: Times of India, October 3 , 2007. Now, Indian IT firms are teaching US, UK Students Source: Hindustan Times, October 04, 2007.

6. Cipla overtakes GSK to become top Indian Pharma Company.Company Jan-Jul Jan-Jul MAT* MAT* ‘07 ‘06 Jul ’07 Jul ‘06Cipla 5.16 5.17 5.07 5.09GSK 4.89 5.32 4.93 5.45Ranbaxy 4.86 5.05 4.95 5.07 Market share in % *Moving annual total Table Source: ORG Source: Times of India, October 3, 2007.

7. India Inc. Shining ! There was a time when a job overseas was a clear indicator of one’s professional success. However, many Indians are defying convention by rejecting overseas job offers. Source: Times Ascent, October 3, 2007.

8. Rural route to global ambitions In his nine years at ICICI’s helm, K V Kamath has made it India’s largest private sector bank. But to break into the top league of global banks, he will have to follow a course few banks have taken. Source: Times of India, October 13, 2007.

9. Dosa man best NYC vendo New York: Thiru ‘The Dosa Man’ Kumar, a Sri Lankan migrant, has won the Vendy Award, given to the city’s top street chef vendor for his “Pondicherry Dosa”, with a filling of vegetables. Kumar’s New York Dosa cart near Washington Park in downtown Manhattan is popular with university students and professors. Source: Times of India, October 13, 2007.

10. India Chain to bring ‘the British curry to its home’85% of the 9,800 Indian restaurants in the UK are actually Bangladeshi Source: HT Mint, October 04, 2007.

11. Dabur turns Street- SmartTo partner key local grocery stores, eyes Rs 120 cr revenue By the end of current fiscal, the number of “Parivaar” outlets is expected to reach 12,000, and 8 percent of our consumer care division sales. V.S. Sitaram Executive director (marketing), Consumer care division Source: Hindustan Times, October 8, 2007.

12. Every organization Looks for examples for achieving success They mostly choose big organizations or the most famous ones And emulate them

13. Most of the big organizations of today • But most of them were started small • They were started with very small capital • But the persons who started the same had a vision and were clear on their objectives • They also put the strategy as –customer first

14. The spirit of entrepreneurship It is the spirit of entrepreneurship that made these small organizations to grow to what they are today

15. Entrepreneurship in Greek mythology • Known as the Hermes spirit • A member of the Green Pantheon discovered a tortoise shell and made immense fortune by converting that into a musical instrument • Even big companies today depends on the same spirit which they would call as Entrepreneurship

16. These entrepreneurs They adopted the small business norms strictly and then grew to be the big companies of today

17. Examples of small business which grew big • Hewlett Packard • Dominos • Good year • Virgin group • Coca cola • Mc Donald • Nokia and many more

18. The sweet story of success • How do we learn the methods for achieving success today • Instead of looking at the big companies of today,we can look at some examples of growing companies of today and learn from them • We have here listing out such stories, in India • They excel in managing their enterprise and also well focus on operational tools

19. Haldirams, India • A food chain • An ISO 9000 company • Member, European snacks association • Member,Snack foods association, Virginia, USA

20. Haldirams, India • Operational success factors: • Understanding the customer need for variety of foods • Fast service • Serves not only Indian, but other popular international dishes also • Consistency not to the extent of Mc Donald, but within certain limits

21. Nalli silks, chennai , India • A silk sari manufacturing company • From a small stores, now the biggest sari stores in India • 7 stores in India and one in the US

22. An image from the advt. Of Nalli silks

23. Nalli Silks • Operational factors for success: • Quality and authenticity unquestioned • Customer care while in the store • Trained sales people who are patient to show a huge variety of saris to the Indian female customer • Sourcing directly from manufacturers and sometimes helping them financially, as they are in the small scale sector

24. Saravana Stores, Chennai, India Known as the Wal-Mart of India, even though it is only on one location • More than 1 lakh footfall a day • They also claim the cheapest prices than any other store

25. Saravana stores, chennai Operational success due to: • Large sourcing • Sourcing from manufacturers • Customer care when they are in the shop • Good marketing efforts • Low prices due to volume

26. Hotel Saravana Bhavan • Started as a small hotel in Chennai • Has now 25 branches in India • And 16 outlets in 7 countries abroad

27. An advertisement from the website

28. Hotel Saravana Bhavan • Operational factors for success:wide variety of food • Main concentration on south Indian food • Good ambience • Trained workforce for serving • Bulk buying of ingredients

29. Cavin Kare A small company started with Rs.20,000 INR and today a company with turnover of 20 million INR The company makes Shampoos

30. Cavin Kare • First in India to introduce Sachet type packaging at low prices for the semi urban market • Good advertising efforts • Good dealer margins

31. What are the secrets from these growing companies in India?

32. The factors of success • Customer satisfaction • Supply chain management • Just in time approach • Kaizen • Customer relationship management • Benchmarking

33. The factors for success If you think these are only Jargons used by multinational companies and global organizations, you are wrong These are used by these medium sized growing companies in India

34. Well adopted & Well understood • Haldirams follow Mc Donald norms and set their own standards,offering a variety • Nalli silks thrive on CRM • Saravana stores wants to follow wal mart and sets their own standards • Hotel Saravana bhavan, wants to follow Mc Donald norms and still offer a variety • CavinKare – understands marketing well and makes their own rules for markets

35. The lesson for us Not to copy the giants in business, set your own norms and follow them, be consistent. The small business has its own norms and grow with those norms to a big business Do not try to duplicate the big business players, as of now Make your own norms

36. Thank you