Ambani provoke strong reactions from people, but no one can be indifferent to his accomplishments. Many shareholders happy rely, and he is good enough to deserve Bharat Ratna and the other in the far much people hate it ‘s hard for working methods. On being criticized the way his work publicly by using political influence to achieve gains for companies, and stressed repeatedly Ambani :
”I give least importance to number one. I was nothing but a small merchant but I reached this level here. I consider myself fortunate to be in this position, but I have no pride. I am as I was.”
Reliance on the global level for methods of rapid implementation and time-bound and those are the cases where resort lateral thinking to the fullest extent.
And executives are encouraged to rely constantly to think outside -the-box, not traditionally or sequentially. Top leaders themselves have this tremendous ability to think laterally and consider the business in the form of a series of operations as evidenced by shares : ” The leadership of Reliance Industries has always avoided thinking ins, ” says Anil Ambani, managing director of the Reliance group. Elder brother Mukesh Ambani said : ” We are working in concentric circles, not in straight rows, but there is always a hub of accountability. We do not believe in their competence. We believe in building on the efficiency of operations and people to create value ”.
Ambani added: ”The world is a series of orbits hierarchically stacked up with peons and clerks at the bottom and leading industrialists and politicians at the top. To be successful, you must break out of your orbit and enter the one above. After a spin in that orbit, you must break into the next one and so on till you reach the top.”
To keep moving in the escalating growth, Ambani has frequently use lateral thinking, far more than any other industry, as revealed in his book Gita PIRAMAL, and the business of Indian princes, among other sources.
Dhirubhai Ambani was the first Indian industry to meet the needs of small investors. This was more by default rather than design because of its inability to finance its operations at the beginning, however, was a significant departure from the practice of raising funds from financial institutions. Introduced the worship of equity in small towns in India. It is also recognized as after activating single – handedly the Indian capital market, by focusing on the capital increase instead of a dividend, which was the norm.
Aside from its overall strategy, tactics also reveal the brutal act. When colluded union afford to reach a price reduction share, bought Reliance all of its own shares, and demanded delivery by creating a “Friends of Reliance ‘ Association to buy those shares which can not be for the management of technically. Brought consequent anger and shut down the stock market him in the national spotlight. was also pioneered by conversion of convertible bonds into shares. this was so successful that was oversubscribed six times and once paid to use the idea to convert the bonds of non-transferable.
The RIL Strategy Includes:
- Build and support the leadership position across its product categories in local markets;
- Follow-up attractive export opportunities;
- Implementation of vertical integration;
- Improve its technology;
- Achieve economies of scale;
- With a focus on prudent financial management, and
- Investment in high-growth opportunities.
Ambani was a man of industry first in India to build similar plants for the best player in the world. Then, in a shining example of turning the situation upside down, and he created the ability before the actual demand. Work on the basis that supply creates its own demand, and said he planned sometimes plant with a capacity of approximately five times the actual demand or expected to run into thousands of tons. Accreditation is known to have accepted tenders that were 250 per cent higher than the lowest bid because the contractor delivered on time or someone flew abroad to buy a critical component.
Against conventional wisdom, which Reliance manufacturing synthetic fabrics widely, to realize that the poor got more value – for – money also polyester implied batch image. Face opposition from traditional cloth merchants that rests on the old mills and loyalty, he ignored wholesale firm, established his own exclusive shows and explore the markets and agents selected from non-textile backgrounds. And finally, achieved the impossible – reliance through building a cryogenic plant for the transfer of ethylene in the deep seas when conventional methods failed, and was tried for the first time in India.
At a time when the stock market was in India at the stage of the bear, and the adoption of the first group to benefit from the overseas debt market with long – term debt, including the 100 – year Yankee bond. It was also the first Indian company to make the issue of GDR and the first to get Moody’s and Standard & Poor ‘s rating. The company was relying on zero tax for several years because of constant tax credit helped to offset profits. When the Minister of Finance imposed and compulsory corporate tax of 30 per cent, Reliance Cap – term total debt contracted for the entire debt. They said that interest accrues from the date of take advantage of the loan until paid, and that all loans would be repaid at maturity. This enabled them to retain their tax situation zero.
Reliance site is replete with examples of lateral thinking, even in micro-management. The company uses unconventional methods to get the job done, especially when participating customer satisfaction. The disguised employees themselves to make a significant direct shipment to the customer. The total credit to the customers of their client to create a broader loyalty rules. Anil and Mukesh Ambani approaching directly lower – level employees without going through the heads of departments. The linking them with the Institute of Management to teach trainees in six months what they have learned in the MBA courses in two years. And Ambanis look at the possibility of individual initiative and instead of paper qualifications. Check out the Reliance Industries Ltd financial performance report for the quarter / year ended 31 st. March, 2012.