TSMG reorients itself to new challenges
Financial Express — February 18, 2002

The Tata Strategic Management Group (TSMG), a division of Tata Industries Ltd, is in the process of testing frameworks for strategy management that stresses identification and indepth resolution of strategic issues and options to leverage their service functions, according to
Mr Prashant Srivastava, managing consultant, TSMG.

At present, TSMG operates as an independent management consulting firm advising companies on business strategy and operational excellence through a range of offerings.

Proving his point, Mr Srivastava elicits a case study of Lakme Ltd. He says: "Lakme Ltd had approached TSMG in 1994 when an onslaught of multinational companies seemed likely in the wake of liberalisation. TSMG envisioned scenarios for the future of the cosmetics industry and competitor moves, and identified the critical success factors of the industry."

Based on the analysis, a strategy was recommended which culminated in Lakme exiting its main business at an attractive price. Thereafter, TSMG helped the company (now renamed Trent) enter the retailing field through an acquisition at favourable terms, adds Mr Srivastava.

Since then Trent has set up a chain of stores for apparel retailing in seven Indian cities. "Recently, TSMG assisted Trent in studying other retailing formats and has helped identify retailing of food, groceries and household items as attractive opportunities. TSMG has also helped define the value proposition for the target consumer segments. Trent is all set to implement the business plan," says Mr Srivastava.

TSMG strategised Telco’s motive to reduce the total cost of manufacturing and delivering vehicles to various regions. Explains Mr Raju Bhinge, chief executive officer, TSMG: "A joint TSMG-Telco team analysed the cost drivers, which covered the component cost, inward freight, packaging, variable conversion cost and outbound logistics. A plant-wise production programme that would result in the lowest total variable cost was developed. This production programme and the methodology developed will provide significant savings to the company in future."

In a bid to synchronise the integrated corporate strategies with HR initiatives, Mr Srivastava informs that the consultancy is also aligning the objective of value creation by creating a conducive climate that can breed performance excellence through a fine-knit system of knowledge management.

This is initiated by an interface of informal working environment under an open office structure. The collective initiatives are further strengthened with flexibility through assignment mobility that forms an integral part of the HR domain, he adds.

Mr Srivastava points to the instance of business enhancement of the leather division of TIL. It was realised that the existing business model based on in-house manufacturing of leather and leather products was inappropriate and unsustainable. TSMG worked along with TIL to evaluate alternative business models.