Converting each of the five components into an engine of growth is a powerful strategy for raising business performance. Bajaj Auto was founded by a Harvard MBA named Rahul Bajaj in 1959. The company grew rapidly to become the largest motor-scooter manufacturer in India and the top performing stock on the Bombay equity market. Rahul Bajaj was voted business man of the year in India in 1986 and joined the board of World Economic Forum. This was also the moment when the Government of India took its first serious steps toward opening up the sheltered Indian economy to foreign competition. Twenty leading international motor-scooter and motorcycle manufacturers announced immediate plans to enter the Indian market. The consensus of industry experts was that the company lacked the product quality and advanced technology to compete with foreign brands. The good times were over for Bajaj Auto.
A month later we were engaged by Bajaj to identify strategies to double the company’s profit performance and weather-proof it against new competitors. Our final report included more than 130 strategies to energize and develop each of the five components and 100 subcomponents of the company. Rahul Bajaj said he agreed with and accepted all the recommendations without exception. Contrary to prevalent expectations, Bajaj Auto continued to grow rapidly and tripled its profits during the next three years.
Society is a teeming ocean of energy. The ultimate source of energy for the growth of a company is the society in which it is born and of which it remains always a part. Every company is the child of society and draws upon it for all its ideas, values, attitudes, knowledge, skills, organizational capacities, people, resources, technologies and opportunities. Society constitutes the macrocosm – an unlimited reservoir of social potential.Download Article 1K Club