Mission K-54: turning around the US$3bn Indian auto major – Ashok Leyland

Abstract

Learning outcomes Learning outcomes are eliminating usual options for a turnaround, understanding how organizations can respond to adverse industry /market changes through cost and productivity management, managing strategic cost control turnaround deployed across a company, turning a huge threat into an opportunity and the role of leadership in driving strategic cost management and importance of internal communication and buy-in for a successful implementation. Case overview/synopsis Ashok Leyland Ltd. is the 2nd largest manufacturer of commercial vehicles in India, the 4th largest manufacturer of buses in the world and the 12th largest manufacturer of trucks globally. Vinod Dasari joined this company in 2005, and since 2011, he has been the MD and CEO of the company. This case is about restaging of this company that commenced in the year 2013 when the company was heading toward a loss for the very first time in its 65 plus years of history. Ashok Leyland was heaving under its own weight, saddled with overheads, grappling with intense competition from old and new players and struggling to become agile and meet the new challenges in the market. A potential loss of up to Rs 750 crores (US$123m) looked inevitable. The challenges were that major structural changes were required and the company needed not only a transformational change but also a surgery. The company had to come up with savings of Rs 750 crores (US$123m) annually to avoid making losses. The projection of 54,000 unit sales volumes be achieved. Internal communication and buying in by all employees. This case outlines the path chosen by Dasari to restage, turn around, overcome the challenges and deal with employee resistance. Complexity academic level This study is applicable for MBA programs in business strategy, strategic marketing, international marketing and BBA programs in business strategy, strategic marketing and international marketing. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. Subject code CSS 11: Strategy.