Description Is Surrounding the Background †Myassignmenthelp.Com

Question: Discuss About the Description Is Surrounding the Background? Answer: Introducation DhirubhaiH.Ambani founded the Reliance Group is the largest private sector organization in India, with businesses in material value chain and energy. In the beginning it was a textile company, and now it has expanded its business operation in various fields. The company was the leading retailer of polyester yarn and producer of fiber in the world. The company provides different types of and quality products to their customers (Appannaiah, Reddy, 2010). The company serves over 260 million customers all across power, telecommunications, infrastructure, financial services, healthcare and media and entertainment sectors. Marketing Secondary sources The secondary sources are useful to recognize the marketing strategies and plan applied by the Reliance Industries to establish the huge business empire in India. The success story of Reliance Group has become a myth. Moreover, the story is repeatedly published in various magazines, newspaper, books, journal, etc. The story of Reliance even becomes a hot topic for the researchers, and much research work has been performed on this subject. Market analysis Industry analysis The industry analysis is consisting of the overall explanation of the starting of the industry to the present day performance as it is well established in the market. The starting of the business is consisting of the production which is depicted to be focusing of the dealings with shifting from the textile to the petrochemicals with the expansion of the Reliance group (Doyle, Stern, 2009). The company is known as the second largest petrochemical company in all over the world which is also deals with the onshore and off shore drillings. This is the overall analysis which is made for the Industry Reliance Group. Seasonality The Reliance has a wide range of diverse products and services such as petrochemical products, textile, insurance, retailing, energy, telecommunication and much more. The company serves the customers throughout all the session. The Reliance Fresh is the new venture of the group where the make an entry in the retail industry and build several supermarkets. From the Reliance Fresh, the company provides fresh food throughout the year. Moreover, here the company serve seasonal fruit and vegetable during the entire year (Du Plessis, Strydom, Jooste, 2012). Competitors The major competitors of the Reliance group are identified to be the Bharat Petroleum, Hindustan Petroleum, ONGC and the IOCL. These are identified to be the major competitors of this industry which is showing the competitive characteristics with considering the petroleum products. Potential strategic allies To improve the efficient and accomplish its deep market penetration strategy Reliance has done strategic alliance with BP for operating the energy sector in India. Another vital alliance of Reliance Industries is with Sum Sang for their asset management initiation. SWOT analysis The SWOT analysis of this Reliance Group is as follows:- Strengths: It is consisting of the leading market position and also the consisting of huge market shares in India which are identified as the best strength of the Reliance Group. Weakness: After the death of the Dhirubhai Ambani, the Reliance Group was divided in between two brothers. This is the major weakness of the Reliance Group (Etzel, Walker, Stanton, 2007). Opportunities: The Company can easily spread its market under penetration and also the increment of the asset in the international market had become the opportunity for the Reliance Group. Threats: The existing competitors in the current market are the main threat to the company. Marketing plan The Reliance Industry has implemented an aggressive marketing plan to capture the entire market. The company uses to offer extensive benefits to the customers so that the company can attract a large portion of the client towards the products and services of the organization. Moreover, with additional benefits and value creation for the company the company can be able to form a huge loyal customer's base, which is a real asset of the company (Krajewski, Ritzman, 2005). Financial projections Basic assumptions and information Forecasting is referred to the use of the historical data and information which helps to determine and evaluate the future performance of the company. The companies prepare the forecasting to determine how to allocate the budgets as per the requirement. It is based on the historical data and resource availability of an organization. The flow of cash also shows the bank account detail of an organization. The cash flow statement shows negative balance which means the inflow of cash is less than the outflow (Paton, Clegg, Hsuan, Pilkington, 2011). The long-term debt of the company has increased from 2016 to 2017 which means the debt has increased. The company requires funds to expand its business, but it cannot take loan because the debts are high. Financial forecasts The sales forecast helps to determine and evaluates the future sales revenue of the company. It is expected that the sales of Reliance group industries will increase which is good for the company. It is expected that personal expenses that will need to be drawn from the business are around INR357000000. Month Amount Jan 185000 Feb 198000 April 233000 May 270000 June 310000 July 325000 Aug 362000 Sep 395200 Oct 410000 Nov 455000 Dec 496000 Operations and production Legal and licensing requirements The company follows the rules and regulations implemented by the government of India. The rules and regulations are followed which is important to maintain the license to operate in different segments. The company carries out its business activities fairly, and the government also analyses the activities of the company (Ramachandra, Chandrashekara, Shivakumar, 2010). Management details The company has an executive Board of Directors headed by the Managing Director and Chairman of the Reliance Group Mr. Mukesh Ambani, the elder son of late Dhirubhai Ambani the founder of the company. Under the Managing Director and Chairman, there are four executive directors, seven independent directors. Moreover, the wife of Mr. Mukesh Ambani, Mrs. Nita M. Ambani is working as non-executive and non-independent director of the company. Organizational structure and staffing The Managing Director is the head of the Industry and under the MD the other directors' works. The board has recruited several committees to help the board in performing the assigned responsibilities of the board. The board has implemented a charter setting for the roles plus responsibilities of every single committee and the qualification of the members of the committee (Winer, Dhar, 2014). There is a definite method of appointing and removing the committee. The constitution of the committee is board responsibility. Insurance and security needs The insurance and the security needs are very much crucial for the purpose of protecting the industry from the accidents, and also the protection of the industry will create a good environment for the workers to feel safe while working in the industry (Sen, 2008). This is simply explained to be presenting the protected environment which should be made by the industry for the development and the growth in this competitive environment. Business premises The business premises are not only limited to the Petrochemical industry, but the Reliance group is also consisting of the Reliance Communications, Reliance Infrastructure, Reliance power and Reliance Capital. The premise is also seemed to be consisting of in retail industry which is consisting of the Reliance Fresh. Plant and equipment required The net property, plant, and equipment value of the company has increased from INR 2826120 to INR 4177510 million from the year 2016 to 2017. The company has purchased the property, plant, and equipment for carrying out the business operations. The company has managed all the processes of the business (Sheehan, 2011). Production processes The production processes of the Reliance Group is dependent on the operational and the logistic strength which is identified as the fulcrum for leveraging the assets of the refineries and also the optimization could be easily handled in the form of the key components which are the RM business model. Information and communication technologies In the form of the Reliance communications, the information and the communication technology can be easily described in the case of the Reliance Group. Therefore the information and communication technology services are being provided by the help of this platform as established by the Reliance Group (Stevenson, 2009). Critical risks The main risk for the company is the debt level of the company has increased, and the cash flow shows a negative value. The increase in the debt shows an increase in the risk for the company. Liquidity/Financial Health 2016-03 2017-03 Current Ratio 0.68 0.62 Quick Ratio 0.4 0.31 Financial Leverage 2.48 2.68 Debt/Equity 0.58 0.57 The liquidity ratios clearly show an increase in the debts. The current ratio and quick ratio clearly shows that it would be difficult for the company to pay the debts. The debt to equity ratio shows that the debts have increased (Wang, 2012) References Appannaiah, P., Reddy, D. (2010).Business Management. Himalaya Publishing House. Doyle, P., Stern, P. (2009).Marketing management and strategy. Harlow [u.a.]: FT Prentice Hall. Du Plessis, P., Strydom, J., Jooste, C. (2012).Marketing management. Cape Town: Juta. Etzel, M., Walker, B., Stanton, W. (2007).Marketing. Boston: McGraw-Hill/Irwin. Krajewski, L., Ritzman, L. (2005).Operations management. Upper Saddle River, N.J.: Pearson Prentice Hall. Paton, S., Clegg, B., Hsuan, J., Pilkington, A. (2011).Operations management. London: McGraw-Hill Higher Education. Ramachandra, K., Chandrashekara, B., Shivakumar, S. (2010).Marketing management. Mumbai [India]: Himalaya Pub. House. Sen, M. (2008).Business Management. New Delhi: Global Media Publications. Sheehan, B. (2011).Marketing management. Lausanne: AVA. Stevenson, W. (2009).Operations management. Boston [u.a.]: McGraw-Hill. Wang, J. (2012).Innovations in information systems for business functionality and operations management. Hershey, Pa.: IGI Global (701 E. Chocolate Avenue, Hershey, Pennsylvania, 17033, USA). Winer, R., Dhar, R. (2014).Marketing management. Harlow, Essex: Prentice Hall.