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Mahindra Swaraj Sales Organization Structure

The document describes the sales organization structure of Mahindra Swaraj. Key aspects include: 1) The country is divided into two halves, each headed by a Head Half India. These halves are further divided into zones headed by Zonal Heads. 2) Zones are divided into states headed by State Heads. States contain areas managed by Area Managers and territories managed by Territory Managers. 3) The restructured organization improved focus on each state, increasing area offices from 7 to 12 and dealers from 523 to 598, boosting market share from 9.3% to 11.9% over three years.

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138 views9 pages

Mahindra Swaraj Sales Organization Structure

The document describes the sales organization structure of Mahindra Swaraj. Key aspects include: 1) The country is divided into two halves, each headed by a Head Half India. These halves are further divided into zones headed by Zonal Heads. 2) Zones are divided into states headed by State Heads. States contain areas managed by Area Managers and territories managed by Territory Managers. 3) The restructured organization improved focus on each state, increasing area offices from 7 to 12 and dealers from 523 to 598, boosting market share from 9.3% to 11.9% over three years.

Uploaded by

karanvirkalra
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd

ASSIGNMENT

SALES ORGANISATION
STRUCTURE OF MAHINDRA
SWARAJ

(Submitted in the partial fulfilment for the requirement of the degree of)

MASTERS OF BUSINESS ADMINISTRATION (2009-2011)

SUBMITTED TO: SUBMITTED BY:

Lect. Raminder Kaur MANDEEP KUMAR (5819)

VARINDER SINGH (5813)

JAGMEET KAUR (5825)

MBA-II (A)
SCHOOL OF MANAGEMENT
STUDIES
PUNJABI UNIVERSITY,
PATIALA

MAHINDRA SWARAJ:
SWARAJ TRACTORS, formerly manufactured by Punjab Tractors Limited, are
now being produced by Mahindra & Mahindra Ltd., (FES) SWARAJ Division
which came in to existence after merger of Punjab Tractor Limited with
Mahindra & Mahindra Limited, continues to manufacture under the same brand
name of SWARAJ Tractors, Harvester Combines, implements and Forklifts.

We are one of the leading tractor manufacturers in India and the company is
totally indigenous. Nearly 600,000 SWARAJ tractors are operating in the field
providing durable delight to discerning farming community of India.

PUNJAB TRACTORS LIMITED:


Punjab Tractors Limited (PTL) a joint sector company of the Punjab
Government, which went into commercial promotion in the early
seventies, is a unique example of technological self reliance in a high
technology area like the automotive sector in the country. It was promoted
by Punjab State Industrial Development Corporation (PSIDC) in 1974
which was set up by Punjab Government for setting up new projects.
In 1965 when the entire industrial growth of India relied upon foreign
technology and know-how for setting up industrial ventures in India, the Central
Mechanical Engineering Research Institute (CMERI, Durgapur), a national
Laboratory of the Government of India, took the bold step of taking up the
design and development of totally Indian know how for 26.5 H.P. agricultural
tractors.

PRODUCT LINES:

• Tractors- 9 models (25 HP to 72 HP)


• Harvester Combine
• Industrial Forklifts
• Automotive Castings
• Diesel Engines
• Automotive Seatings and Components

In India the company have has 1000 sale outlets spread throughout the country
with over 650 dealers. The company is also exporting tractors regularly to
several countries in Asia and Africa and also to USA. SWARAJ tractors enjoy
good reputation in the market place for their ruggedness, simple construction
and durable performance under tough operating conditions. The company has
the necessary HP range and capability to develop products suited to local
conditions at prices that are affordable.

SWARAJ has recently begun exporting tractors to USA. These tractors besides
being fitted with an EPA (Environment Protection Agency of USA) approved
engine have all the features required in US market viz. Power Steering, Wet
Brakes, Differential Lock, Cat I & II three point linkages, provisions for fitment
of front end loader, auxiliary hydraulics with two banks of direction control
valves and quick release couplings, ROPS with Canopy, spin on type filters, etc.

Sales Organisation Structure:


The sales organisation structure of Mahindra Swaraj is as given above and is as
explain below:-

Deputy CEO:

In the sales organisation chart the top most position is held by the deputy chief
executive officer who is head of overall sales structure of the company. Deputy
CEO heads the overall sales of the company throughout the country and its sales
in the foreign countries also.

Whole of the country is divided into two parts:


Head Half India (HI-1):

After the Dy CEO there is the head which is looking after the sales for the half
of the India. The India is divided into two halves. Both halves are headed by
different persons. The HI-1 is further divided into two zones. These zones are
named as zone 1 and zone 4.

Zonal Head Zone-1:

After the half India head it’s divided into two zones one of which is named as
zone-1. The person who is head of zone is called zonal head. He looks after the
sales of particular zone. Zone head-1 is further divided into four different areas
state wise.

State Head Pb:

Zone one is divided into four different heads state wise. One of these is the State
Head PB. State head Punjab is the person whose responsibility is to look for the
sales of the company in the geographical area of the Punjab State. Under the
Punjab state head the sales work is done with the help of 2 area managers and 9
territory managers which are appointed at plant of the company in the Punjab
state.

State Head Hr:

The second head in the Zone-1 is the State Head Haryana. Different area
managers and territory managers are appointed in the state of Haryana. In this
state there are 2 area managers and 7 territory managers.

State Head Raj:


The next state in the zone-1 of the sales organisation structure of the company is
the State Head Rajasthan. In this state there are 3 area managers appointed and
8 territory managers are appointed for looking after the sales of the company.

State Head Guj:

The last state in this zone is the state of Gujarat. The state head for this area is
responsible for the sales in the state of Gujarat. In this state there are 3 area
managers working and the number of territory managers for this area is 9.

Zonal Head Zone-4:

Another zone covered under the half India -1 is the zone-4. The zonal head
looks for the sale of the particular area under the zone -4.

State Heads-3:

This state head cover the states and it comes under the Zonal Head Zone-4. This
zonal head is responsible for the sales proceeds of the company for the states
covered under this zone. For this purpose there are 7 area managers appointed in
these states and for the territories there are 23 territory officers appointed for
managing the sales force and looking for the sales if the company.

Head Half India (HI-2):

The whole of the country is divided into 2 halves. The 2nd half of the country is
known as Half India-2. This half is headed by a different head. He is sole
responsible for the sales proceeds in this part of the country. This HI-2 is further
divided into two zones named Zone 2 and Zone 3.

Zonal Head Zone 2:


This zone is headed by the zonal head and is looked after by this zonal head. He
is the head for the zone and all the sales proceeds for this zone are under his
control. For making it worth is divided into a lower sales level that is the states
head-5.

State Heads-5:

Various states are covered under the state head-5. These states are having a
number of area managers and territory managers. These managers are working
for the company’s sales department in this zone. The states covered under this
zone are operated by 9 area managers and 41 territory managers.

Zonal Head Zone 3:

Zonal head zone 3 is the other part of the half india-2. The head of the second
half of the country is the looking after this zone. This zone is having another
level in the sales organisation chart of the company. This is the States Head-3.

State Heads-3:

Sates head 3 is the state wise distribution of the company’s sales force and this
is under the Zonal head zone 3. For the sales management and sales proceeds of
the company in this state is done with the help of various managers appointed at
different places. In the company there are 6 area managers and 21 territory
managers working as the sales force of the company. These managers look after
the sales in these particular states of the country.

With this restructuring each State has come under a clear focus. The no. of Area
offices has increased from 7 to 12 & the numbers of dealers have increased from
523 in financial year 2007 to 598 in financial year 2010. With this change the
Swaraj has bounced back in the market by showing a market share growth from
9.3% in financial year 2007 to 11.9% in financial year 2010. It has also brought
down the stock level at dealerships & receivables in above period.

Common questions

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Decentralization in Mahindra Swaraj's sales structure plays a critical role by allowing localized management of sales operations, which is essential for addressing regional variations in market conditions and customer preferences. Each region operates under zonal and state heads, which enables responsive and adaptive sales strategies tailored to specific areas. This structure enhances communication between different levels of the sales force, facilitates quicker decision-making, and aligns local sales efforts with overall business goals. It effectively empowers local managers to optimize sales practices and improve customer service, which is pivotal in a diverse market like India .

Mahindra Swaraj could face challenges such as maintaining consistent communication and aligning sales strategies across its complex, decentralized structure. As the organization continuously expands, ensuring uniform training, monitoring, and performance evaluation across all regions could become problematic. Additionally, regional autonomy might lead to strategic misalignments if not carefully coordinated with the central management's objectives. Lastly, the dynamic nature of the agricultural equipment market, necessitating swift adaptation, could strain the established hierarchical levels, requiring more agile procedures .

The Zonal Heads in Mahindra Swaraj's sales organization are crucial for implementing the company's sales strategy effectively across diverse geographical areas. Each zonal head is responsible for overseeing the operations within their respective zones and managing state heads who oversee state-specific sales activities. This decentralized management allows for tailored strategies that cater to regional needs and market conditions. Zonal heads also coordinate between the Deputy CEO and state-level managers to ensure that company policies are implemented effectively, thereby enhancing regional performance and responsiveness to market changes .

Area and territory managers play a crucial role in Mahindra Swaraj's sales effectiveness by directly managing the sales operations at the ground level. They facilitate the implementation of strategic sales plans, monitor market dynamics, and ensure customer engagement in their respective regions. Their proximity to the field allows them to gather real-time data on customer preferences and market trends, which they report to higher management for informed decision-making. This role is vital for adapting quickly to changes and maintaining the company's competitive edge in different regions .

The organizational structure of Mahindra Swaraj's sales division is designed to improve efficiency and effectiveness by dividing the entire country into two halves, each overseen by a 'Head Half India' (HI-1 and HI-2). Each half is further divided into zones, led by a zonal head, and then split state-wise under state heads. This hierarchical structure allows for focused attention on regional sales strategies, with 7 area managers and a varying number of territory managers in different regions to manage local sales activities. This structured decentralization allows Mahindra Swaraj to address local market needs effectively, thereby improving market share and operational efficiency .

Mahindra Swaraj's focus on indigenous development has significantly contributed to its reputation in India by emphasizing self-reliance in technology. Punjab Tractors Limited (PTL), part of Mahindra Swaraj, was an early example of an Indian company in the automotive sector that relied on local technology, a significant divergence from the prevalent dependence on foreign technology during the 1960s and 70s. This approach demonstrated technological self-sufficiency and market adaptability, which, coupled with their products' ruggedness and simplicity, elevated the brand's reputation among India's farming community .

Enhancing local manufacturing and product development capabilities allows Mahindra Swaraj to leverage cost advantages and tap into specific regional requirements more effectively. In India, it ensures that products are designed to withstand local farming conditions, thus increasing market acceptance. For international markets, it enables the company to adapt product features, such as EPA-approved engines for the USA, without exceeding cost-benefit thresholds. By focusing on indigenous manufacturing capabilities, Mahindra Swaraj can maintain competitive pricing while meeting regulatory requirements abroad, thus facilitating sustained expansion globally .

Technological self-reliance is critical for companies in high technology sectors within developing countries like India to reduce dependence on foreign technology and to foster innovation tailored to local conditions. Mahindra Swaraj's development of completely indigenous know-how for its agricultural tractors is a testament to this approach, enabling the company to maintain control over its engineering processes and reduce costs associated with licensing foreign technology. This self-sufficiency supports resilience against global market fluctuations and enhances capability to adapt products to meet local needs effectively, giving an edge in competitive markets .

Mahindra Swaraj managed to penetrate international markets by exporting tractors with features suited to local demands. For the US market, these tractors were equipped with an EPA-approved engine and included features such as power steering, wet brakes, differential locks, Cat I & II three-point linkages, provisions for front-end loaders, and auxiliary hydraulics. The adaptations were specifically designed to meet regulatory and operational requirements, ensuring compatibility with US environmental standards and enhancing functionality for local farming conditions .

The increase in the number of area offices from 7 to 12 and the number of dealers from 523 to 598 between 2007 and 2010 positively impacted Mahindra Swaraj's market share. This expansion allowed the company to enhance its market presence and improve product accessibility for customers, contributing to a market share increase from 9.3% in 2007 to 11.9% in 2010. The strategic expansion also led to reduced stock levels at dealerships and improved management of receivables, further reinforcing sales efficiency and market responsiveness .

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