Business Vision Setting

Importance of Vision Setting

A businessman to a consultant: “I want my present branches streamlined properly...and my manufacturing unit too…and I want to expand my business to other districts...”

Consultant: “Well we can ...the fee will be Rs.2 lakhs per month.”

Businessman: “That's too much...I can't afford. Can you make it to 1.5 lakhs..?”

"Unless there is a vision for an entrepreneur, his business will end up nowhere. If you want more money invest more."

We can take an example of Vision achievement exercise of Honda Motorcycle and Scooter India Ltd. (HMSI)

Their vision: To become the No.1 two-wheeler company by 2020.

Major milestones achieved after unmerging from Hero-Honda (34 months):

·    23% growth since separation

·    HMSI now constitutes around 17%-18% of turnover of Honda Motor Corporation.

·    By 2015, target is set to be 5 million units of sales.

·    Overtaken TVS and Bajaj in sales

·    Became 2^nd largest two-wheeler company

·    9 zonal offices.

·    Hero has lost 2% of market share

·    Honda gained 3% of market share

·    Overtaken the sales of Hero's Passion by Honda's Dream Yuga in 2012.

The key for achieving the milestone: The pace of Transformation

Following are the factors which they thrived on:

1.  Research department relocated and linked  to Marketing and Sales department (main strategy)

2.  Kept on reworking strategies

3.  New model line up

4.  Spread their market to the interiors of the country.

5.  Widened the product range.

6.  Quick communication and decision making

7.  Responded to market needs and trends.

8.  Brand ambassador- Akshay Kumar (Bollywood actor)

9.  Focused on fuel efficient bikes like Dream Yuga and Neo to compete with Hero's Splendor and Passion.

- Jimish K. Joseph

  Asst. Manager - Consulting

  Bramma Learning Solutions
  Mob: 9746195297
  Phone: 0484 2705535