Bajaj Auto Limited

22 Мар 2015 | Author: | Комментарии к записи Bajaj Auto Limited отключены
Bajaj Eliminator
Bajaj Eliminator

Bajaj Auto Limited

The economy and the market are growing than ever. The current situation is in a state where need to reshape their constantly. The change has become so that without it a company survive in this competitive

Change is the process of taking a from current position to a desired or expected position and at the same time dealing the problems that arise in the then change is about the (Gill, 2003). Change is that cannot force it is a gradual process of transformation can affect the entire structure.

management is an organized, methodical of the knowledge, tools, and resources of that provides organizations a key development to achieve their strategy. But change management is not a discipline with rigid and defined boundaries (Burnes,

Organisations may not get their desired if the change management is not effective. effective management of change we can achieve a better turnover, the business, reduce cost of maximise profit and even the same employee satisfaction. are two angles in which a change can be — one from the management who are it and another form the employees who it.

In the past, the affect of change on a business organization was very but as and when the business transactions to happen on global basis, the that could lead organizational change also The affect of a change can be felt in way just like the current crunch that is happening world.

Brief History of Auto Limited

The Bajaj is one of the top 10 business organisations in India. The Group has a wide range of such as, Bajaj Auto home appliances, lighting, and steel, insurance, travel and But the group’s main focus is Auto which is ranked as the fourth largest two- and wheeler manufacturer and is well-known in a dozen countries in Europe, America, the US and Asia.

Jamnalal founded Bajaj Auto Ltd in the 1926, which did mainly and sell two or three wheelers. In the 1959, the company secured a from the government of India to two and three wheelers. From license, the company started to and in the same year, it went in with Piaggio to manufacture and marketed under the brand Vespa.

By the end of the 10 year agreement Piaggio, the company started its own scooters under the brand Chetak which pushed the market to top boom and stayed as leaders in scooter industry for a period in India.

The scooter a strong brand image people especially the middle families who longed to have own transport which was economical, and easy to maintain which was the key for their dominancy in market. The of motorcycles was 30% high when with scooters, so common prefer it. Another factor for the dominancy was the restriction for international in the Indian market.

Hence the company faced no competition.

After the effect of when international organisation to enter the Indian market, the faced by Bajaj was severe. The companies had invested a lot in Research and and had better features and fuel and this started to trouble the rule over the Indian

When the price gap between and scooters narrowed consumers to shift to motorcycles because were more able to on a terrain and had much greater clearance. When banks to give loans to own vehicles it was a come true for most of the and thus the consumer preference to motorcycles rather than To conclude the situation created of the company’s lack of interest in RD, the over market dominancy and market value of the company declining constantly.


Changing Scenario

In the early the market saw a great recession in the two wheeler sector; overall of two-wheelers declined by 15% in 1991 and 8% in This period also saw a rise in fuel prices, resulted in consumers placing emphasis on fuel efficiency purchasing a new two wheeler. Fuel of scooters were comparatively with motorcycles.

When started financing for buying new common people shifted to which can save a fortune in

Japanese companies like motor co. ltd (Honda), Suzuki and started their operations in through joint ventures Indian companies like Cycles ltd, TVS, etc. All these joint were in the motorcycle segment. The firms came with the technology and efficient production which dramatically improved the of motorcycles available in the Indian

Soon the foreign companies introducing more new models contemporary technology, styling and fuel efficiency.

Then, the Indian market witnessed a that was not at all foreseen by the company. The preference shifted from to motorcycles, which affected the drastically in a much big way. was because the difference in the ratio of and … adults. In addition the became cheaper, more and was capable to ride with in any terrain.

The arch rivals, Honda was the company the Bajaj had to but it was in vain as Bajaj had not once of modifying their scooters or of bringing new motorcycles into and ultimately Bajaj had to give up its of the largest two wheeler company.

The Bajaj was rolling out of the company was a scooter. In the year 2005-06 the entry of gearless scooters lost its dominance over the market to the gearless scooter Activa from Honda, was more comfortable for old people as as  women and even men have to use Activa for their short because of its ease of use.

Forces of Change

Organisational is triggered by performance falling expectations or aspiration levels Ramnarayan, 2006) or change is by disconfirmation. Forces of change can be two the external and the internal.


Consumer preference

In the 1990s, the two wheeler market witnessed a in consumer preferences.

License Raj

The investment was extensively regulated by the through licensing. All the important decisions like the entry of a into an industry, capacity choice of product, capacity mix and the were controlled by the government in an to prevent concentration of economic This was referred as License

Also there was a change in norms.

Poor conditions of the

The conditions were really bad at time. The consumers need a with strong reliability and efficient.

Poor conditions of the system

The suppliers had a hard for supplying materials. Also the was partly attributed to the inefficient transport systems in the country’s and cities, which led to a greater for personal transport.


Company’s inability to force the and shift in the trend patterns

BAL had slow in reading the demand and how to cater to the changing consumer and preferences.

Company was not interested in RD

It was that the dramatic shift because BAL did not pay sufficient attention to research and development and consumer

No additional features

Motorcycles better ground clearance, suspensions, and larger wheel performed well on the village Also the fuel economy was an bonus

No other brand of

No young and fresh minds in the management

Change Models

The and the procedure by which a change has made in a particular scenario is as the change model. Change are tools for driving change in an organization. Managing the complex of change mainly involves a set of activities, in which each of the is crucial for the overall success of

The change process involves the need for change into a for change, and deciding who will the change and creating a effective relationship.

Change Model in Bajaj Auto Ltd

Change provided by Kurt Lewin and V. Nilakant S. Ramnarayan (2006) is one of the change models followed in the world. The best model for the current scenario is the combination of of these models by above It can be divided into three

The first phase involves the people for change with the on getting them to let go of what is

The second phase involves the steps that actually the change.

The last phase returning the organization to a stable again based on the new culture.

The stage according to Kurt in order to implement a change is and most of the cases it will be by the change agent. In this Rahul Bajaj, the chairperson of the is the change agent and this involves alerting and communicating the performance gap and need for change to the customers/employees. It is basically modifying the situation in order to achieve the change by proper communication and to the restrainers of change which to reduce the resistance and it is the best for change.

The second stage involves the of the change model provided by V. and S. Ramnarayan. It mainly highlights the of leadership in the process of change. The of appreciating change requires the to understand the forces of change and mindset inside the organisation, as task of mobilising support leaders to facilitate the idea of

In the same model, task of change involves creating the structure and processes in an organisation, is crucial and very important for the and horizontal communication within the which ensures that are highly focused during the process.

Building Change involves empowering employees and them believe in their own to face new challenges; undertake and new tasks. Above all, emphasises is placed on leadership in the which is the driving force of the tasks, which also a vital role in creating and change within an organisation. Change, is a data-driven process guides the project teams, change agents and sponsors to as they just need to guidelines through simple or complex initiatives.

The third is refreezing stage which the organisation at a new state of equilibrium. The point about this is that new behaviour must be, to degree, congruent with the of the behaviour, personality and environment of the or it will simply lead to a new of disconfirmation (Schein, 1996). In terms, refreezing often changes to organisational culture, policies and practices. (Cummings and 1989)

(Source: Bernard (2004) Managing Change Edition) Prentice Hall)

of change model in Bajaj Ltd

Unfreezing Stage:

After the Indian two wheeler market for decades by the end of 1999 BAL realised the in consumer preference from to motorcycles with four engines and predictions was that trend will continue in a scale. There was a 41% fall in sale in 2001 which was a threat for the existence of BAL. a new set of emission norms (equivalent to II emission norms) came effect in 2000 for petrol two engines.

As a result, scooters two-… engines fell out of

Applying the change model above, Bajaj Autos was its market share due to change in preferences, development of new market and availability of better products and manufactured by their competitors. In step, Chairman of company Bajaj which is change as well identified the need for as suggested by Kurt Lewin, he the current situation by making aware of problems, performance gap and for change.

Simultaneously, he empowered and provided new roles to younger generation as Rajiv Bajaj (Managing In an attempt to regain market the company increased its production of by 67.6% in 2001 even as the of geared scooters fell by By 2001, the company was manufacturing as motorcycles as geared scoters.


This is the stage the leadership qualities of a change play an important role in of the change. Change agent in our Rahul Bajaj who is the chair of the company analysed the present environment and figure out the importance of to retain the market share and to the company back in the path of

He figured out the customer demands surveys and categorised the production in segments such as executive cruiser segment, premium etc. He also introduced into the company and gave more authority in order to innovative ideas which very important for the competitive He also invested a huge in RD and also for design. This changed the product portfolio of Auto Ltd.

Within a time after these new version motorcycles launched in segment such as ‘Boxer’ and in executive segment, ‘Eliminator’ in segment and ‘Pulser’ ‘Avenger’ and in premium segment which was a success in the Indian motorcycles This transformation of Bajaj scooters to motorcycles created a impact on the mind set of the public the new generation who were looking for performance and stylish bikes. The point in this change was the introduction of the product ‘Pulsar’ and DTSi ‘  technology help them to capture the two market under their and to overcome their rival Honda’.

They also to resurrect scooter sales. sale of geared scooters falling, the gearless scooter has growing. The purchasers of gearless were mainly teenagers, and older people.

So they production of gearless scooters in under the name ‘Saffire’ was a great success with its new and design from Tokyo RD a design firm. They give great importance to the mileage because it was an important for choosing a new model in the market.

As per the suggested the change agent was in motivating people, engaging and developing the capabilities in an economical way than going for a  complete of the organisation. They appreciated the happened in the organisation, build up the capabilities, mobilise support and the change in the right time and manner.

Refreezing Stage:

is the stage where the company to a stable state based on the new It mainly deals with to organisational culture, norms, and practices to cope up with the for a smooth running of the day to day routine of the When Bajaj’s motorcycles becoming popular the scooter were really down of the competition in market.

They analysed the market and made apt changes. Meetings and were arranged to discuss the fact about new competition and earnings. So they were to phase out several models the Spirit, the Sunny Spice, the NXT 2 and the Bravo. The Saffire, suffered several technical problems. Its too failed to pick up so they did and was replaced by the Wave in 2005.

In they also upgraded old model ‘Chetak’ with a new …, 125cc engine, a promise of greater comfort, performance, and better mileage.

In 2006, the company announced its to raise production capacity 3.5 million units to 5.1 million a year by 2009, of which the for two-wheelers was to be 4.6 million units. to their plans, they launched a 220cc variant of it Pulsar motorcycle. In 2004 auto changed their old and created a new logo and brand to renew its new brand identity.

proves that a vision something that helps the direction in which an organization to move (Kotter, 2007). visions and their accomplishments the organisation at a new state of equilibrium.


The person who has the handed the of the change is known as the change The facilitator who is in-charge of the change in section where the change is is known as the change agent. (Mc and Paton 1992). Their also includes circulate identify problems, strategy monitor the progress and problems and to the management.

To introduce a change the agent must have a and direction and the capability to make to follow their direction and their vision. (Clarke,

In this case study, the person of Bajaj Auto Mr. Rahul Bajaj is the change who proved to have a great towards changes in market He also proved to be an efficient agent by handling different situation easily. According to the in market conditions he changed the names to make them localised and classified the motorcycles in sections so they can penetrate the more easily.

His adherent Bajaj also played a important role in this scenario who had a major role in and marketing their icon ‘ Pulsar ‘ help the company to acquire a share in market. ‘ ‘ was selected as Bike of the for continuous 4 years and he was selected as the man of the year 2005 by Auto car bike India and NDTV respectively. Timely actions by change agent like of changes in policies, production and and final stage of integration them to achieve the worlds 4th and 1st largest producer of two and three

Analysis and Recommendations:

In this Bajaj Auto Ltd handled particular situation incredibly but were certain instances they could have even better. The Indian two market was dominated by scooters 1990’s and motorcycles came as new Bajaj was the market leaders that time later sales declined because did not pay attention to design, R D and customer

They also didn’t much importance to marketing the competitors were keen in the sales through advertisements.  Bajaj later admitted they had been slow in the demand pattern and failed to customer behaviour. They didn’t participate in any social and failed to build a trusting with customers, employees and

But they handled the whole sensibly with the proper of change models and the powerful under the change agent Bajaj.


This clearly shows that is a continuous process and a proper and implementation of a change results in growth. Success of change on choosing the perfect change with fewer resources and can maximum outcome. An organisation anticipate the need for change, the resources effectively to attain mission and must integrate effort into the planning

Change agent also has an role where the desired depends on how he manages the particular To conclude change is an essential in growth and development and the overall depends on how we tackle the change


Bernard Burnes Managing Change (Fourth Prentice Hall

Bob Hamlin Organisational Change and Development Edition) Prentice Hall

B.L C.J Huson (2003) Leadership and Management (Fourth Edition) Lippincott

Colin Carnall Managing Change in Organisations Edition) Prentice Hall

Hayes (2007) the Theory and of Change Management (Second Palgrave Macmillan, New York

L. B. M. G. Crisp (1989) Understanding Change: Converting Theory to (First Edition) Thomson Learning

R. Woolfe W. Dryden Handbook of Counselling Psychology Edition) Sage Publications

T.G C. G. Worley (2001) Organisation and Change (Sixth Edition) Western College Publishing,

V. Nilakant S. Ramnarayan (2007) Management (Second Edition) Publications, India Accessed on November 14th (Electronically Accessed on 06th 2008). Accessed on November 24th (Electronically Accessed on 16th 2008). Accessed on January 04th (Electronically Accessed on 03rd 2008). Accessed on November 28th (Electronically Accessed on 08th 2009). Accessed on October 29th (Electronically Accessed on 11th 2008).


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