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Organisational Analysis of Hero Motocorp and Eicher Motors: Group 9
Organisational Analysis of Hero Motocorp and Eicher Motors: Group 9
MISSION MISSION
Finance Manager
Reducing logistics Manager
manager Create
costs for goods and
• Redefine mobility
people – leading to
higher enablement of • Set best practice and
Engineeri Finance Purcha Business
specialization in Production Quality HR Ware Head sing
benchmark
ng dept dept dept dept dept house quarters dept
manufacturing, dept Collaborate
agriculture and • Leverage partnerships and
ISO document
services, thereby control centre exhibit teamwork.
increasing the nation's • Co-create solutions that
economic activity and benefit the community
productivity.
Tooling Stamping Die-casting Winding motor Painting Parts Final
workshop workshop workshop workshop workshop assembly assembly
Life cycle stage
Hero Moto Corp Eicher
Hero Moto Corp is in the Elaboration Stage since it is a large Large size, multiple product/service lines – 4899 employees (as
organization with bureaucracy, reputation, institutionalized of Mar 2020), multiple products: Royal Enfield motorcycles,
R&D department, and multiple product and service lines. Hero Light/Medium/Heavy-duty trucks, Buses, Construction and
MotoCorp has a size organizational size of more than 9000 Mining vehicles, Automotive components, Engines for power
employees. Hero MotoCorp has multiple product or service generation, and a vast service network covering 310+
lines encompassing 21+ scooters and bikes. They also offer dealerships and 2800+ retailers.
services like spare parts, accessories etc.
Bureaucratic means of control is used, with extensive rules Very bureaucratic (extensive rules and procedures): Eicher has
under code of conduct, code of practices, environment policy, in place a Code of Conduct, Policies regarding Human Rights,
risk management policy etc. for various departments. Information security, Board diversity, Supplier conduct,
Remuneration, Archival, Whistle blowing, Tax strategy, CSR,
Redressal of sexual harassment, and Dividend distribution.
Hero MotoCorp has its own R&D department for scooters and Innovation institutionalized through R&D dept. – Bengaluru
bikes in Jaipur and Germany, hence innovation is based R&D center to design platforms for heavy duty trucks
institutionalized.
Stature and reputation are important for Hero MotoCorp. This Stature and reputation are important: The firm maintains its
can be seen through an ongoing legal case, wherein the reputation by investing into the GoodEarth Education
organization wanted to use Hero electric’s name under its own foundation, and Eicher Schools in Alwar, Parwanoo and
organization to seem like they invested in green vehicles. Faridabad
2
Inter-Organisation Relationships
Hero MotoCorp:
Generalist known for fuel economy and
Hero MotoCorp: wide variety of low cost two wheelers, front
Hero MotoCorp and Gilera Motors Argentina runner for Electric Mobility
The project Green Leaf with IBM Eicher Motors:
Eicher Motors: Experiential brand, Royal Enfield with its
Enfield India, Ramon and Demm, Govt. of motorcycle combines modern-day elements
Tamil Nadu, Harris Performance with the brand’s heritage and garners
Resource Population immense enthusiasm amongst global
Dependence Ecology motorcyclists
3
Hero MotoCorp is focusing on Global Business currently and
follows R4 Strategy:
Strategy Eicher has adopted the Strategy:
Introduction of small-format stores to expand its distributor footprint
Revitalize Recalibrate Revive Revolutionize
Competitive Structure
position
Both companies are in a similar position when it Both companies have a divisional
comes to expansion into global markets, investment departmental grouping. The divisions are
into R&D, and economies of scale. However, what also geographically divided.
makes Hero MotoCorp different from Eicher is its Geographic:
much larger distribution network, stronger rural Hero MotoCorp is spread across India, Bangladesh,
presence. This is reflected in the difference in net Nepal and Latin America and African markets.
worth, both pre and post COVID. Eicher is spread across India, UK and Asia Pacific