Riding The Globalization Wave Sample Assignment
Welspun group: Riding the globalization wave
Welspun group of companies is an Indian business house which manufactures products related to textile. Due to hard work and motivation the company is now one of the famous textile companies and it also contacts with the foreign countries. The company kept on flourishing after 1985 by establishing and investing at different places and companies. It kept on establishing products which are now known as the famous brands of different countries. The company kept on focusing on the requirements of products in the market at different places and globalised its business. As the time passed the company diversified to such extent that it started selling products other than textile related. Focusing on the needs the company is still struggling to be more useful for the people. The company has also started home textile business which was the demanding need for the people of US. Such ability of diversification and investing at different places requires the ability of risk taking. The efforts and successful position of Welspun Company promotes the concept of globalization. Welspun Company stood out in its peers not only by manufacturing in foreign markets but also by establishing brands abroad. This shows that how business can be globalised by starting from a small scale and making it successful by the capabilities required.
The Welspun group of companies started its business of polyester manufacturing facility from a native city of India and with a total capital base of US$250,000 in 1985. Now it is manufacturing in almost 50 countries and one of the flourishing Companies all around the world. In the next ten years of starting it established terry towel and cotton yarn facilities, then it manufactured pipes which started diversification and resulted in many more products like steel and renewable energy sources. The internationalism was started in 200 when a subsidiary was established in New York. Then next five years the company spent time in the extension of the existing manufactured products making them more consolidate. It started the acquisition of branding by introducing bath rug and towel brands in the UK. Also it started decorative bedding in Mexico. Therefore, by focusing on the marked needs the company succeeded in a very short time. It took risks but was careful in selecting the market. The company started making many products as listed above and flourished day by day. One more major diversification was that it started the home textile business listed under the stock exchanges companies in India known as Welspun India limited. It has found joint ventures and partners for its business in India. Currently B. K. Goenka is the chairman of the company and running it successfully by establishing different products. The annual growth of the company is nearly more than 30% and it is flourishing successfully. Producing diversified products is very common but by doing risky actions like sharing abroad and established brands makes this company different from the other companies in India
Identification of problems and recommendations
Challenges faced by the Welspun group
Companies always face challenges whether it is local or global. Welspun being a global company can face many challenges as is growing day by day. One of the most important challenges that the company can face is the problem of “Risk”. As globalization is achieved by taking risks, there can be fluctuation of interest and the rates. Due to these risks the capital investments can also be affected. Another challenged that Welspun Company can face is the “Changing of policies”. When the policies will change rapidly then it will affect the growth in the markets. As the business is carried out by large number of people from all over the world, the cultural differences can surely affect the performance. Another point is that it can be difficult for the company to manage the problems at international level. The challenges listed above can be faced by the welspun company which will also affect the continuous growth of the company.
Key success factors
The high growth rates are sustainable for the company following below given key success factors. The high growth rate of Welspun Company has many key success factors. One of them is “Managing and developing people”. The people in the company must have the right to speak freely and openly. All the time they must not be pressured with work and instructions, they must only be instructed with basic laws. People should be managed according to their needs and requirements so that their skills are also developed and they feel motivated to work in the company. Managing people requires freedom and encouragement for the people and balance everything. Another point is the “focus on strategy”. It is important for the leaders and employees to focus on the organizational needs of the company. The leader must keep a track of all the sales and the profit gained and also about if the customers are satisfied or not. Another factor is “Organizing the routine of employees”. What the people do all day in the company matters a lot regarding the success of the company and the satisfaction of customers. The policy should be that the customers get the product according to his needs and at the right time. Therefore, good communications skills must be used to address the clients and customers in a proper way. One of the factors is “Resources”. Proper equipment and facilities should be provided to the customers for better growth and success of the company. The leaders must manage the money properly and use it when needed. Therefore the above mentions factors are the key success factors for a high growth rate.
Welspun as a role model
Since Welspun Company is one of the most emerging textile companies in the world as it is flourishing day by day with a high growth rate, it can surely serve as a role model for the other companies under some conditions. The company should demonstrate confidence and leadership to be a good role model for the other companies. It should strive for the better and focus on the objectives. Secondly, it the company is doing something then just go for it because following others is not always right and people are attracted towards the unique idea. Another point is to communicate in a good way. The growth strategy is flourishing day by day because of the following these points. The people working in the environment must show respect for the other people and deal everyone in a good and proper way. These traits will help the company to be a role model for the other companies.
Factor influencing the growth
The most important factor that will have impact on the growth of Welspun Company is “Patience”.
While working in an environment, to be patient is very important. Ups and downs are a part of every occupation we adopt. As it is said that “Slow and steady wins the race”, it is important to work properly even it is slow. Patience is required to run the business successfully because if there would be no patience then the business will be affected and the growth rate too.
To eliminate the hereafters of risk the company should have a comprehensive environment and should analyze and write everything in their record. Moreover a platform should be established so that the plans are discussed and provide more understanding of the barriers. Proper guidelines should be passed on timely so that the people remain intact and follow the principles. The customers must be entertained and responded properly on time as customer relations matter a lot. Customers must be asked what they need and what they don’t need and they must be entertained properly.
Since welspun is one of the emerging companies in the industry and it is flourishing day by day, the important points discussed above must be kept in mind and followed. The weak points must be solved and the positive points must be made stronger. This will make the company stand out in its competitors. Hard work and motivation is very important whether you are an employee or a owner. Everyone must fulfill their duties sincerely which will once make this company number one in the world. The process followed by this company is also an example for those who want to run a globalised company with a high growth rate.
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Totalsuccesscenter.com. (2016). 5 Key Success Factors | A Powerful System For Total Business Success | Total Success Center. [Online] Available at: http://totalsuccesscenter.com/business-success/key-success-factors/ [Accessed 4 Aug. 2016].
Zwilling, M. (2010). The seven traits of a role model. [Blog] CayenneConsulting. Available at: https://www.caycon.com/blog/2010/10/seven-actions-of-a-true-role-model-entrepreneur/ [Accessed 4 Aug. 2016].
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