MBA6204 Quantitative Support of Decision Making Report 3 Sample
Assessment 2: Individual Report
Individual Report on Quantitative Model Development: Students will develop a Quantitative model to analyse a specific managerial problem faced by their organization. Students will need to demonstrate their knowledge and ability to critically develop the model objectives, the decision variables and the organizational constraints. The students must prepare a brief report to demonstrate their ability using solver function to generate an optimal solution and assist their management in decision making.
Student Guidelines
This is an individual assessment and you must choose one of the managerial problem as listed below that relate to your organization or another organization of your choice. You need to research all the data that will support management in such a way that they will have sufficient data and information that they are able to make the decisions appropriately.
You also need to develop a quantitative model (linear programming) using the data, analyse and interpret the model using excel solver and report your findings. You need to identify an objective function clearly stating the purpose of the quantitative model. You should be able to define the variables under con- sideration for the quantitative model development. Further, you should be to collect relevant information from stakeholders for developing the constraints. The report should outline the stakeholder’s analysis for data collection and developing constraints. The developed model should be analysed using the Excel solver nction to generate an optimal solution. The report should outline the step-by-step procedure of the solver function. The final output should be presented to management for decision analysis.
You are required to set up the MS Excel dashboard to assist any user to make decisions. You are to provide quantitative model for managerial decision making with optimal outcomes for the organization by using
Excel solver tools and validate the importance of specific analysis and interpretation for the management decisions.
Your submission will include two submissions: Report (1500 words) + Excel work file
The managerial decisions you make in relation to this assessment must be made with regards to any one of the following:
› 1. Make or buy product or equipment
› 2. Financial decision making: Investment portfolio problem
› 3. Transportation/Assignment problem
› 4. Blending Problem/Marketing Mix problem
› 5. Production/Inventory Planning problem
› 6. Multiperiod Cashflow Problems
› 7. Process/Job Sequencing Problem
› 8. Other specific managerial problems...
You will be assessed as follows:
a. Structure of the written report: Background information is relevant, issues are logically ordered, recommendations clearly relate to the managerial problem.
b. Identify critical managerial problem: Formulate linear programming model using variables, objectives and constraints.
c. Analyse and test the issues: Able to mathematically analyse and test using Excel solver.
d. Implement the solution: Justify by providing alternatives that the solution generated is the optimal.
e. Write clearly and concisely: Arguments are explicit and succinct, appropriate headings are used, grammar and spelling are accurate.
Solution
Introduction
The organisation selected for the Quantitative Support of Decision-Making is Mahindra. Mahindra is a globally known Indian automotive manufacturing company which was established in 1945. University Assignment Help, The Company has multiple key functional units, in which the 4 key ones are operations, production, finances, and sales & marketing. The report will focus on thoroughly analysing the functional units, followed by the key challenges faced in each unit. Further, the report will develop 4 cases for each unit using a suitable quantitative model for supporting quality managerial decision-making. Further, a thorough stakeholder analysis will be conducted for Mahindra and key constraints and measures for success will be identified. Lastly, an implementation plan will be developed within the time frame of 12 Months for Mahindra company.
The Key Business Initiative (Stated Target) Of Mahindra Organisation and Its Background
Stated Target of Mahindra company
Mahindra being one of the largest automobile manufacturers in India looks forward to the new business initiative or stated target which is to become one of the leading global players in sustainable mobility solutions as well as to achieve net carbon zero by 2040. As part of its vision for a greener and more sustainable future, the corporation has set an ambitious goal to accelerate the adoption of electric vehicles (EVs) and sustainable mobility solutions.
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Figure 1: Sustainability Target of Mahindra company
(Source: Mahindra life spaces, 2023)
Background of Mahindra Company
The company was established in 1945 as a producer of utility vehicles such as trucks, tractors, and many more other vehicles whose sole purpose is to contribute to agriculture. It was founded by the Mahindra brothers, Jagdish and Kailash, together with their business partner Ghulam Mohammed and the city of Mumbai. Anand Mahindra, the current chairman, is a direct descendant of the company's founder, J.C. Mahindra (Nikkei Asia, 2020). After India gained its independence from Britain in 1947, Mohammed left the company's administration to the Mahindra brothers and joined politics in Pakistan. Soon after, the firm shifted its focus to producing four-wheel-drive vehicles and used the success of the automobile industry to launch a global expansion. The company has always been a winner in innovation and adopting new technologies, the expanding worldwide demand for electric cars, the growing need to cut carbon emissions, and the Indian government's objective of attaining net carbon zero by 2070 all contribute to the company's emphasis on sustainable mobility solutions (Mahindra.com, 2021).
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Figure 2: Mahindra Company
(Source: Mahindra.com, 2021)
The Key Issues Faced Within the Functional Unit of The Organisation
The functional units selected for this study are Production, Sales & Marketing, Finances, and Operations. Each of the units faces its own challenges however the common issues are-
1. Production
a. Supply chain disruptions- These involve delays in the delivery of raw materials, components, as well as other automotive parts, which are a common problem for Mahindra's manufacturing unit. Disruptions in the supply chain can result from a number of sources, including the state of the global economy, the occurrence of natural catastrophes, and transportation challenges (Dutta et al., 2020).
b. Quality Control- It is very difficult to keep product quality constant across many different product lines and worldwide operations. Dissatisfied customers and added expenses from recalls and repairs are the results of quality fluctuations (Hrusecka et al., 2019).
c. Technology Integration- integrating new advanced manufacturing technologies like automation, AI, IoT, big data, and many more is a challenging process as it requires a proper skill set and informed people. It is a challenge for Mahindra’s production unit (Srinivasa Reddy Tummalapalli & Robinson, 2022).
d. Sustainability- Mahindra's manufacturing division must handle sustainability challenges including cutting down on carbon emissions, controlling waste, and implementing environmentally friendly production methods as environmental concerns and laws rise.
2. Finance
a. Financial Risk Management- Global presence of the company Mahindra faces a number of financial unpredictability and challenges, including as fluctuations in interest rates, commodity prices, and currency exchange rates. Strategic risk mitigation is a must.
b. Regulatory Compliance- Maintaining compliance with ever-changing local and international financial legislation is of the highest priority. Failing to comply could result in penalties and other legal consequences.
c. Cost Management- Ensuring continued cost effectiveness is a constant issue for the Finance team. Among them include minimising operating expenditures, controlling debt levels, and making sure all divisions are profitable.
d. Capital Allocation- The company faces challenges in known being able to identify where to put the money or capital allocation which sometimes lead to unwanted losses. Hence, it is essential that Investments must be made with the long-term strategic goals in mind.
3. Sales & Marketing
a. Competition- there is a massive competition in the automotive industry especially with the emergence of the eco-friendly vehicles, the major competitors are Tata and Tesla. Hence, it leads a competitive environment lading to drop in sales (Jazel Auto, 2017).
b. Market saturation- Saturation of the market is a challenge to expansion for Mahindra in more established areas. This calls for creative solutions if we are to keep growing and keeping my current market share.
c. Digital Transformation- As consumer preferences change towards digital media, which leads to marketing challenges. The sales and marketing department will need to undergo a digital transformation in order to remain competitive. E-commerce systems that have been optimised for sales and marketing have become more important (Llopis-Albert et al., 2021).
d. Data management- data is the oil of company which aids in driving the best results and data analysis helps in decision making for the company. However, data management is a challenge due to its voluminous amount (dealing with massive volumes of client data) (Jazel Auto, 2017). Hence, an efficient customer relationship management (CRM) system and data analysis are prerequisites for targeted advertising.
4. Operations
a. Talent management- Competing for and maintaining strong operational staff is a challenge. Improvements in productivity and new ideas need the efforts of highly trained experts.
b. Sustainability and Green Practices- Adopting green manufacturing techniques and maintaining environmentally responsible business operations is becoming more crucial. The use of less energy, less trash, and better materials sourcing all fall under this category (Ahmadian et al., 2023).
c. Regulatory Compliance- Similar to the Finance division, Operations needs to understand complex regulatory settings, especially in high-stakes sectors like the automobile and aerospace industries (Iyer, 2022).
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Figure 3: Challenges faced by Mahindra
(Source: Businesswire.com, 2019)
Key Targets (Goals and Objectives) For the Report in Terms of Maximizing/Minimizing Costs/ Revenues/Improving ROI
Mahindra looks forward to maximise its revenues and presence globally with their initiatives and innovative approaches. For doing so, Mahindra needs to first set a few goals and objectives in order to keep the operations in the right path.
The key targets for Mahindra are-
Maximising revenue
• Increase sales 10% year by year.
• In the first year, launch two new vehicles or any related products that each produce $1 million in sales.
• Enter a new market and produce $5 million in sales in the first year.
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Figure 4: Maximised revenue of Mahindra company
(Source: Statista, 2023)
Minimising costs
• Optimise marketing campaigns and channel resources effectively to cut client acquisition expenses by 15% per year.
• Reduce manufacturing costs by 10% using cost modelling and resource utilisation approaches that are successful.
• Use predictive maintenance models to cut operational downtime by 15%, resulting in increased productivity and cost savings.
Improving ROI
• Increase ROI on working capital by 15% via an improved cash flow management and effective se of resources.
• Increase the ROI on capital expenditures in technology and automation by attaining a 20% increase in output without increasing capital expenditure.
• Using data-driven marketing methods, Mahindra targets to increase the marketing ROI by 25%.
Case for Selected Functional Units and Using Suitable Quantitative Model for Supporting Quality Managerial Decision-Making
Mahindra's production, sales & marketing, finance, and operations units are having challenges optimising resource allocation and production schedules.
Production Functional Unit
The Linear Programming (LP) approach is an effective method to be used to help with quality management decision-making. This quantitative approach aids in determining the best cost-effective way to deploy resources like as labour, machinery, and raw materials to maximise output while taking into account restrictions such as budget limits and timelines (Ozsan et al., 2019). By using LP, Mahindra can enhance operational efficiency, reduce costs, and maintain consistent product quality, eventually leading to improved production management decision-making.
Sales & Marketing Functional Unit
Mahindra's Sales & Marketing department attempts to increase revenue while reducing client acquisition expenses. A strong quantitative approach, predictive analytics, is to be used in order to anticipate market trends and discover prospective customers. Mahindra can better focus its marketing efforts by analysing historical data, client behaviour, and market circumstances. Predictive analytics allows the discovery of high-value client categories and personalised marketing efforts, leading in more revenue and lower costs.
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Figure 5: Sales & Marketing Functional Unit case
(Source: Sharma, 2020)
Operations Functional Unit
The Operations case of Mahindra aims to improve supply chain efficiency while minimising operational downtime. In this case, simulation modelling can be a useful quantitative tool. Mahindra can discover possible challenges, optimise inventory management, and simplify supply chain operations by simulating different situations. Simulation modelling aids in quality decision-making by enabling the organisation to evaluate various methods without real-world implications, thus improving operational efficiency and minimising downtime.
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Figure 6: Operations Functional Unit case
(Source: ResearchGate, 2019)
Finance Functional Unit
The aim in the Finance department is to maximise investment returns while minimising financial risk. Portfolio optimisation, a mathematical approach, may aid in the development of a diverse investment portfolio that maximises returns for a given amount of risk. Using this approach, Mahindra can make informed investment choices while balancing the need for better profits with the requirement to successfully control risk (Mahindrahomefinance, 2022). Portfolio optimisation helps managers make better judgements by using a data-driven approach to investment strategy.
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Figure 7: revenue analysis of Mahindra case
(Source: Statista, 2022)
Stakeholder Analysis
Stakeholder analysis plays an essential role in an organisation as they are the ones who builds the business from scratch and have the power to demolish it. Each and every stakeholder have their unique set of responsibilities such as some of them contributes in finances of the organisation while some of them contributes in marketing and internal operations. Stakeholder analysis is an important process in decision-making and strategy creation that aims to identify and comprehend the different stakeholders engaged in a certain project, initiative, or problem-solving endeavmy (Fernando, 2023). This analysis aids in determining strategic goals, critical limitations, and appropriate success measures in obtaining an ideal solution. It is a methodical technique to taking into account the interests, requirements, and viewpoints of all relevant people. The Mahindra Group is a diverse corporation with operations in the automotive, aerospace, agricultural, and IT industries, among others. A thorough stakeholder analysis is necessary for setting strategic goals, recognising important limits, and choosing appropriate success metrics (Rzesny-Cieplinska & Szmelter-Jarosz, 2019). The objectives, constraints, and performance indicators of Mahindra Group, as well as the main groups that have a stake in the company, are outlined below.
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Figure 8: Stakeholders of Mahindra
(Source: Fernando, 2023)
Stakeholders analysis (matrix) of Mahindra Company
The image shown below is the stakeholder matrix of Mahindra, the stakeholder matrix is depicting that the customers and financial investor stakeholders hold the most highest power and highest interest in the company, while local communities holds the lowest power and interest in company’s operations.
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Figure 9: Stakeholder P/I Matrix
(Source: Author, 2023)
Stakeholder Objectives
• Diversification and Innovation- To maintain its competitive edge in a number of different markets, Mahindra needs keep expanding its portfolio and encouraging innovation such as development of EV Vehicle (Parmar et al., 2021).
• Global Expansion- Extend its reach internationally, particularly in fast-growing economies, without sacrificing attention to detail in individual markets.
• Sustainability- Reduce carbon emissions, switch to renewable power, and spread the word about the circular economy; these are just a few of the sustainable practises that should be developed and put into action.
• Customer-Centric Approach- Focus on making the customers happy and loyal by providing them with excellent goods and individualised attention.
• Employee Development- Invest in the staff's education, growth, and satisfaction to attract and keep the best people (Himabindu & Reddy, 2022).
Key constraints
The key constraints are as mentioned below-
• Limitation of resources including capital investments and human resources can be a challenge for Mahindra’s innovation.
• Intense competitive market and emergence of new technologically advanced brands leads to decline in sales and loss of customers (Mishra, 2020).
• Keeping up with the ever-changing norms and standards in a variety of sectors and geographical locations can be challenging.
• Though it may be costly in the short run to address environmental issues and reduce waste, doing so is crucial for the long run (Gurca et al., 2021).
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Figure 10: Key constraints
(Source: Author, 2023)
Measure of success
It is crucial to analyse and measure the success to make informed decisions and strategies for future.
• Financial Metrics- Monitor financial results by keeping tabs on things like revenue gains, profit percentages, and ROI.
• Customer satisfaction- Analyse and measure customers satisfaction level via polls, comments, and the Net Promoter Score (NPS) (Techmahindra, 2020).
• Employee engagement- Surveys, turnover rates, and measures of productivity may all provide insight into whether or not employees are invested in their work.
• Environmental impact- Consider the effects on the environment, namely the reduction of carbon emissions, trash production, and material use.
• Regulatory compliance- Maintain conformity with all applicable laws and professional norms (Mssspl-india, 2023).
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Figure 11: Measure of success
(Source: Author, 2023)
Implementation Plan
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Table 1: Implementation Plan
Conclusion
The report thoroughly analysed the functional units of Mahindra company, which are finance, operations, sales & marketing, and production. These units play a huge role in the development of the company and its activities, however there are several challenges being observed in these units of Mahindra company. The report was divided into key sections, the first section was focused of the key target of Mahindra which is to become one of the leading global players in sustainable mobility solutions as well as to achieve net carbon zero by 2040, along with that a brief description of the company was discussed. Further, the repot focused on the key issues faced within the functional unit of the organisation, followed by strategic objectives developed to minimise the cost and maximise the revenues. Lastly, stakeholder analysis has been conducted for the company in order to measure which stakeholder holds more power and interest and their impact on company’s functional units and innovative strategies along with that and implementation plan has been developed within 12 months target.
References
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Sharma, R. (2020, September). Tech Mahindra Stock Analysis. Sana Securities. https://www.sanasecurities.com/tech-mahindra-stock-analysis/
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Techmahindra. (2020). Mahindra Overview. Techmahindra. https://www.techmahindra.com/en-in/mahindra-overview/
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