VRIO ANALYSIS: Mahindra and Mahindra Ltd.

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Mahindra and Mahindra is the one of the largest Indian automobile company. An analysis of business environment, it is identified that the Indian Government is creating varied opportunities for multiple industries which will benefit M&M. Acquisition of BORN will assist firms to capitalize opportunities available in the Indian market. Due to corona and earlier also economic environment was not good which lead to the origination of threat. Shift in the value system of people creates opportunity for the firm. The firm has sufficient financial resources, HR, tech infra etc., which are valuable, but possible to imitate and are not rare. However, the firm prepares appropriate policy in its business due to which resources are better organized in the business. Considering capabilities of the firm it is recommended that firm must expand its business in foreign market.
M&M also known as Mahindra and Mahindra are the one of the India largest automobile company. Recently, the firm acquires US based company BORN which is known for digitizing marketing and cloud technology. In the present research study, the business environment is analyzed and benefits that firm achieved by doing acquisition is discussed in context of the business environment. VRIO analysis is done and a recommendation is made whether firm must expand its business. At end, conclusion section is prepared in the report.
External and internal analysis
External environment
• Political environment: Political environment greatly affects business in any nation. This is because it is Government business friendly policies and trade agreements it signs with foreign nations that increase business opportunities for the companies. Thus, due to this reason political environment matter a lot of the firms (Kumar and Sethi, 2016). Mahindra and Mahindra are operating in varied industries and some of them are agribusiness, defense, energy, IT, leisure and hospitality and retail. On all these sectors current Indian Government is laying down emphasis. The largest population of India is dependent on agriculture for earning their livelihood. Government of India is running many schemes by using which farmers can easily buy agriculture based equipments. This elevate demand for agriculture related machines which directly affect M&M revenue as firm is leading company in India manufacture tractors and other equipments for sector. With respect to defense, Indian Government is already running “Make in India” program which further create opportunities for the M&M. Acquisition of the BORN by the M&M create another opportunity for the mentioned company to participate in the Indian Government digital India program (Gupta and Bhaskar, 2016). Acquisition of BORN enables M&M to provide analytics and digital marketing services. Few Indian states are now adopting analytics to make better decisions and also use digital marketing for advertisement of their services. Such kind of things after acquisition of BORN for M&M creates new opportunities. The Indian Government is already paying due attention to tourism because India have lots of potential to create more employment opportunities by promoting mentioned industry at homeland. It is preparing policies that promote tourism in the nation (Lubinski, 2015). It also makes a heavy investment on improving tourist destinations and making it more attractive. Hence, in upcoming time period, it is expected that tourism will increase in India and this will benefit M&M because it is operating resort chain in the India. Overall, it can be said that there are ample opportunities for the M&M in the Indian market because Indian Government is give due importance to specific industries and M&M is operating in few of them.

On the basis of the above discussion, it is concluded that M&M is the one of the India’s largest automobile company that is operating worldwide. Currently, the firm is operating in multiple industries and nations of the world. The political and social environment is creating opportunity for M&M but economic environment and technology environment are creating threat for it. HR, financial resources and assets purchased through M&A deals are valuable for the company and play crucial role in making it successful in its business. However, these resources are not rare and easy to imitate. Resources are well organized in the company which is good for the firm. It is recommended considering core competency and resources that firm must expand its business in overseas market.

Books and Journals
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Kumar, R.. and Sethi, A. 2016. Doing business in India. Springer.

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