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Japanese auto majors for their global operations – a possibility that we will

examine shortly. Believe that only by becoming a part of the global value-
chain can we become competitive. Preview not available

The performance of the group will be measured both on financial


parameters, like profitability, sales, and returns on assets,, and on non-
financial parameters, like supplier relationships, product quality arid
customer satisfaction. The participants will, then, `determine the strategic
options available to Auto Components. This would involve reviewing past
strategies to identify strategic problems, organisational capabilities, and
constraints. Based on these findings, a summary of the strengths and
weaknesses of the group will be arrived at. Preview not available

Questions:
(a) Is there a need for a strategy at Auto Components? Does a small
company operating in a predictable environment need to formulate one ?
Ans. Preview not available
(b) Can approaches to strategy be so conceptually different ? Should
Abhayankar go by gut-feel and, using in-house talent do what he believes is
right for the company?
Ans. Preview not available
(c) Instead of spending time on documenting a strategy, shouldn't Auto
Components just have an informal plan of action, governed by the intuition
of its senior managers ?
Ans. Preview not available
AUTO COMPONENTS
Occasions Young President's Organisation (YPO) Meeting
DATE August 7, 1996
TIME 4 p.m.
VENUE The Carlton Chambers, Mumbai
PRESENT
Members • Vinod of the YPO
Abhayankar, CEO, Auto Component; Lalit Desai, Chairman, YPO:
AGANDA The Need for Strategic Planning Preview not available

I wish to correct Lalit at the very outset. We haven't implemented strategic


planning at Auto Components; we are in the process of doing so. We are still
grappling with two questions. First, do we need strategic planning at all?
That's surprising since str It has been nearly a year since I took over as the
CEO of Auto Components. I returned from the US in 1995 where, after
completing my MBA, I worked in the Production Planning Division of a
transnational. I was looking forward to a promising career, but chucked it in
deference to the wishes of my father, who wanted me to return home to take
over the family business. ategy is supposed to be high on every CEO's list of
priorities. Preview not available

Yes, there is. The thing is that there is no replacement market. Not only do
most auto-ancillary units fare better than the automotive sector, they are
also insulated from recessions because of the after market. Preview not
available

No. basically, the shock-absorb functions as a dampener of shock resulting


from the vertical vibrations of a vehicle. Its function I sot absorb the jerks
transferred form the wheels to the frames, thus ensuring a comfortable ride.
Typically, each shock-absorber consists of 2 oil-chambers. Preview not
available

It will now be easier for us to become a sourcing-base for both European and