Business Model (Assignment 3)

By Rahul Verma Raguraj R PGDM1102B63 PGDM1102B62

Business Model
Players
Sellers: Mahindra & Mahindras Farm Equipment division Samriddhi Centers Mahindra&Mahindra Automotive Division Mahindra Navistar Engines Mahindra Navistar Automotives Mahindra Reva Electric Vehicles Mahindra Vehicle Manufactures Three Wheeler Goods Carrier Buyers: Farmers Car Buyers(customers) Truck Buyers Electric Car Buyers SUV Buyers Three Wheeler Goods Carrier Buyers Distributors Small Business People: Used Tractor Sellers Retail Investors Institutional Investors Vendors

Profit/Value
Sellers Mahindra & Mahindras Farm Equipment division Increase the sales, Build up the Brand Image Customer satisfaction(Mahindra and Mahindra earned customer satisfaction index (CSI) of 88 percentthe highest in the industry) Samriddhi Centers Increase the sales of Farm Equipment and promote new products Build up the Brand Image

Mahindra&Mahindra Automotive Division Increase the sales Build up the Brand Image Mahindra Navistar Engines Increase the sales, Build up the Brand Image Mahindra Navistar Automotives Build up the Brand Image Increase the sales Mahindra Reva Electric Vehicles Increase the sales, Build up the Brand Image Mahindra Vehicle Manufactures Increase the sales, Build up the Brand Image Buyers Farmers Learning new farming methodologies, Farm Equipment and Technology Better Financing Opportunities. Car Buyers(customers) Vehicle for commuting, comfort or luxury. Truck Buyers Vehicle for transporting goods Improved safety and security Reduce the cost of expenditure on transportation of goods Electric Car Buyers Vehicle for commuting Eco friendly Improved safety and security SUV Buyers Vehicle for commuting Spacious and Improved safety Three Wheeler Goods Carrier Buyers Vehicle for small and medium business transportation needs Reduced Goods Transportation cost Distributors Increase Commission fee Incentives for additional sales Used Tractor Sellers Increase Sales Build Brand Image. Vendors

Increased sales and better business relation

Retail Investors Dividends. Institutional Investors Dividends

Expense streams
Manufacturing expenses Interest on expenses Loss on Sale of Assets Loss on Sale of Investments OPERATING expenses (Power, Fuel, etc) Non operating expenses Merger & Restructuring Charges Misc. Expenses Contingency Expenses Construction cost of plant and purchase of equipments Plant and Equipment Repair and Maintenance Expenses Inventory Expenses Taxes Expenses Dividends Paid Expenses
Advances towards membership fees Promotions Expenses

R&D Expenses Software Expenditure Freight outward Expenses Donations and charity Travelling Expenses

Revenue
Gain on Long-Term Investments (Deposits, Mutual funds etc ) Gain on Short-Term Investments (Inter corporate Deposits, Shares etc) Gain on Sale of Asset Sales revenue (Domestic, Exports) After sale service revenue Revenue from Sale of scrap Revenue from Lease amount against assets Cash Flow from Financing Activities Revenue from Manufacturing contracts Income from Project Management Revenue from Miscellaneous Income

Assumptions
Target sales (Number of vehicles and farm equipments sold in an year) Better flavors and preferences of customers pertaining to commercial and personal vehicles Increased literacy among farmers about farm technology Better road connectivity Improved economic well being and quality of life of the people Better customer feedback about products which is used as feed for R&D

References
http://www.mahindrasatyam.com/resource_center.asp http://www.mahindra.com/ http://www.wikipedia.org http://www.moneycontrol.com/financials/mahindramahindra/ratios/MM http://www.bizindia.net/news/News.asp?newsID=462&catID=61 http://www.business-standard.com/india/news/mms-indigenous-aircraft-prototype-to-bereleased-soon/441412/