GODREJ CONSUMER PRODUCTS LIMITED

SUMMER INTERNSHIP REPORT

Submitted by
GOKUL T NAIR

MCK19MBA15

In partial fulfilment of the Requirements for the Award of the Degree

Of

MASTER OF BUSINESS ADMINISTRATION

Of Dr. APJ Abdul Kalam Technological University

MBA DEPARTMENT, MUSALIAR COLLEGE

OF ENGINEERING AND TECHNOLOGY,
PATHANAMTHITTA

January-February 2021

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 GODREJ CONSUMER PRODUCTS LIMITED

SUMMER INTERNSHIP REPORT

Submitted by
GOKUL T NAIR

MCK19MBA15

In partial fulfilment of the Requirements for the Award of the Degree

Of

MASTER OF BUSINESS ADMINISTRATION

Of Dr. APJ Abdul Kalam Technological University

MBA DEPARTMENT, MUSALIAR COLLEGE

OF ENGINEERING AND TECHNOLOGY,
PATHANAMTHITTA

January-February 2021

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 DECLARATION

I, GOKUL T NAIR, MCK19MBA15 have conducted an internship study in GODREJ

CONSUMER PRODUCTS LIMITED and submitting the report for the partial fulfilment of
MBA Program at KERALA TECHNOLOGICAL UNIVERSITY.

GOKUL T NAIR

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 MBA DEPARTMENT, MUSALIAR COLLEGE

OF ENGINEERING AND TECHNOLOGY,

PATHANAMTHITTA

CERTIFICATE

This is to certify that report titled “AN ORGANISATION STUDY using 7S McKinsey
Model” of GODREJ ONSUMER PRODUCTS LIMITED being submitted by GOKUL T
NAIR, MCK19MBA15, 2019-2021 during the period January to February 2021 in partial
fulfilment of requirements for the award of the Degree of Master of Business Administration,
is a bonafide record of the internship work done by (Student Name) of MBA Department,
Musaliar College of Engineering and Technology Pathanamthitta under the guidance of Prof:
NAVIN V KOSHY.

Prof: NAVIN V KOSHY Dr. SONIA KATHERIN MATHEW Prof: PRAKASH NAIR

Faculty Guide Class Coordinator HOD

Place: Pathanamthitta

Date : 10/02/2021

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 ACKNOWLEDGEMENT

At the very outset I express my deep sense of gratitude to my faculty guide MR. NAVIN V
KOSHY (Assistant Professor), MBA Department, Musaliar College of Engineering and
Technology, Pathanamthitta for the report guidance, attention and suggestions without which
this report would not has been possible.

In would like to particularly thank MR. PRAKASH NAIR, HOD, MBA Department, Musaliar
College of Engineering and Technology, Pathanamthitta for extending all facilities for the
completion of the study. I thank all the other faculty members and staff, Musaliar College of
Engineering and Technology for the encouragement and help extended to me in the completion
of my report.

The Almighty is the force behind the existence of all activities in the world. It is my foremost
duty to thank almighty for the successful completion of my report.

GOKUL T NAIR

Place: Pathanamthitta

Date: 10/02/2021

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 CONTENT

CHAPTER TITLE PAGE

NO. NO.
1 INTRODUCTION. 7
1.1 INTRODUCTION.
1.2 OBJECTIVES OF THE INTERNSHIP.
1.3 INDUSTRY ANALYSIS.
1.4 SCOPE OF THE INTERNSHIP.
1.5 LIMITATIONS OF THE INTERNSHIP.
2 SWOT ANALYSIS. 13
2.1 NATURE OF THE ORGANIZATION.
2.2 MISSION, VISION AND VALUES.
2.3 PRODUCTS / SERVICES OF THE COMPANY.
2.4 SWOT ANALYSIS.
3 McKINSEY 7S FRAMEWORK. 27
CONCLUSION. 38
REFERENCES. 39

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 CHAPTER 1
INTRODUCTION

1.1 INTRODUCTION
An organization is an entity comprising multiple people, such as an institution or
an association that has a particular purpose. A hybrid organization is a body that operates in
both the public sector and the private sector simultaneously, fulfilling public duties and
developing commercial market activities.

An internship consists of an exchange of services for experience between the intern and the
organization. Internships are used to determine if the intern still has an interest in that field
after the real-life experience. In addition, an internship can be used to create a professional
network that can assist with letters of recommendation or lead to future employment
opportunities. The benefit of bringing an intern into full-time employment is that they are
already familiar with the company, their position, and they typically need little to no training.
Internships provide current college students the ability to participate in a field of their choice
to receive hands on learning about a particular future career, preparing them for fulltime work
following graduation. The internship helps to get a practical awareness of the function and
management of the organization. It helps in exploring the various departments and
familiarizing the organization culture and to understand the organizational behaviour to some
extent. The scope of the internship is meaningful and serves to enhance the educational
experience and career development. It helps to go deep through the activities of Marketing
Department. The internship helps to get familiarize with the organization procedures.

Godrej Consumer Products is engaged in the manufacture of personal and household care
products. The company's geographic segments include both within & outside India.

The company offers a range of products in India, which include household insecticides, such
as aerosols, liquid vaporizers, coils and mats; hair colours; soaps and air fresheners.

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1.2 OBJECTIVE OF THE INTERNSHIP

 To familiarize with the organization “Godrej Consumer Products Ltd” (GPCL) and its
various departments.
 To understand various policies and programs of the company
 To analyse different departments and its functions.
 To know the duties and responsibilities of each department.
 To study the marketing strategies of GCPL and how they implemented it for their
consumer products.
 To know about the different consumer product variants and to study the segmentation,
targeting and positioning.
 To know about the recent trends that GCPL has been using to promote their consumer
products in market.

1.3 INDUSTRY ANALYSIS

The Fast-Moving Consumer Goods (FMCG) industry or consumer packaged goods (CPG)
industry is mainly responsible for producing, distributing and marketing fast moving consumer
goods.

Fast-moving consumer goods (FMCG) sector is India’s fourth largest sector with household
and personal care accounting for 50% of FMCG sales in India. Growing awareness, easier
access and changing lifestyles have been the key growth drivers for the sector. The urban
segment (accounts for a revenue share of around 55%) is the largest contributor to the overall
revenue generated by the FMCG sector in India. However, in the last few years, the FMCG
market has grown at a faster pace in rural India compared to urban India. Semi-urban and rural
segments are growing at a rapid pace and FMCG products account for 50% of the total rural
spending.

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1.3.1 FMCG INDUSTRY IN INDIA

Fast-moving consumer goods (FMCG) sector is India’s fourth largest sector with household
and personal care accounting for 50% of FMCG sales in India. Growing awareness, easier
access and changing lifestyles have been the key growth drivers for the sector. The urban
segment (accounts for a revenue share of around 55%) is the largest contributor to the overall
revenue generated by the FMCG sector in India. However, in the last few years, the FMCG
market has grown at a faster pace in rural India compared to urban India. Semi-urban and rural
segments are growing at a rapid pace and FMCG products account for 50% of the total rural
spending.

1.3.2 MARKET SIZE

The retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 840 billion
in 2017, with modern trade expected to grow at 20 25% per annum, which is likely to boost
revenue of FMCG companies. Revenue of FMCG sector reached Rs. 3.4 lakh crore (US$ 52.75
billion) in FY18 and is estimated to reach US$ 103.7 billion in 2020. FMCG market is expected
to grow at 9-10% in 2020.

Rise in rural consumption will drive the FMCG market. It contributes around 36% to the
overall FMCG spending. FMCG urban segment witnessed growth rate of 8%, whereas, rural
segment grew at 5% in the quarter ended September 2019. The rural FMCG market in India is
expected to grow to US$ 220 billion by 2025 from US$ 23.6 billion in FY18.

1.3.3 FMCG MARKET GROWTH IN INDIA

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1.3.4 ADVANTAGES OF FMCG INDUSTRY IN INDIA

● Growing Demand

- Rising income and growing youth population have been the key growth drivers for this sector.
brand consciousness is also aided by demand.
- India's Contribution to global consumption is expected to double to 5.8% by 2020.

● Attractive Opportunities

- Increase in disposable income in rural India and low penetration levels in rural market offers
room for growth.

● Policy Support

- Investment approval of up to 100% foreign equity and single brand retail and 51% in multi
brand retail.

- The union governments production-Linked Incentive (PLI) scheme gives companies to a

major opportunity to boosts exports.

● Competitive Advantage

- Investment in this sector attract investors as FMCG products have demand throughout the
year.

-The sector witnessed healthy FDI inflow of US$ 16.28 billion during April 2020 - March
2020.

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1.3.5 MAJOR TRENDS IN FMCG INDUSTRY

● Growth of e-commerce
● Consumers demand product convenience
● Greater focus on healthier products
● Greater disposable income and more consumers in Asia
● Millennials to become big FMCG influencers
● Newer sustainability consumer mindset
● Demand driven by population density

1.3.6 GLOBAL FMCG MARKET OVERVIEW

The global FMCG market is projected to reach $15,361.8 billion by 2025, registering a CAGR
of 5.4% from 2018 to 2025. Fast moving consumer goods (FMCG) also known as consumer-
packaged goods are products that can be bought at a low cost. These products are consumed
on a small scale and are generally available in a variety of outlets including grocery store,
supermarket, and warehouses. The FMCG market has experienced healthy growth over the last
decade because of adoption of experience retailing along with reflecting consumers desire to
enhance their physical shopping experience with a social or leisure experience.

The global FMCG market is segmented based on product type, distribution channel, and
region. Based on product type it is classified as food and beverages, personal care (skincare,
cosmetics, hair care, others), healthcare care (over-the-counter drugs, vitamins & dietary
supplements, oral care, feminine care, others), and home care. The distribution channel
segment comprises of supermarkets and hypermarkets, grocery stores, specialty stores,
specialty stores, e commerce and others. By region, it is analysed through North America,
Europe, Asia-Pacific, and LAMEA.

1.3.7 KEY BENIFITS FOR GLOBAL FMCG MARKET

● The report provides an in-depth analysis of the current trends, drivers, and dynamics of
the FMCG market to elucidate the prevailing opportunities and tap the investment
pockets.

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 ● It offers qualitative trends and quantitative analysis of the global FMCG market from
2018 to 2025 to assist stakeholders to understand the market scenario.

● In-depth analysis of the key segments demonstrates the types of fast-moving consumer
goods available.

● Competitive intelligence of the industry highlights the business practices followed by

key players across geographies and the prevailing market opportunities.

● Key players and their strategies and developments are profiled to understand the
competitive outlook of the market.

1.4 SCOPE OF INTERNSHIP

The internship helps to get a practical awareness of the function and management of
the organization. It helps in exploring the various departments and familiarizing the
organization culture and to understand the organizational behaviour to some extent. The scope
of the internship is meaningful and serves to enhance the educational experience and
career development. It helps to go deep through the activities of Marketing Department.
The internship helps to get familiarize with the organization procedures.

1.5 LIMITATIONS OF THE INTERNSHIP

Due to covid situation it was not possible to visit an organization and do the internship. So, the
report is prepared on the basis of secondary data.

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 CHAPTER 2
ORGANISATIONAL ANALYSIS

2.1 NATURE OF THE ORGANIZATION

2.1.1 OVERVIEW

Godrej Consumer Products is a leading emerging markets company. As part of the over 123-
year young Godrej Group, is an Indian consumer goods company established in 2001 and
headquartered in Mumbai. The Group enjoys the patronage of 1.5 billion consumers in more
than 90 countries across different businesses. GCPL had more than 12000 employees. They
earned US $ 1.4 billion revenue and US $ 9.2 billion market capital. The company has
manufacturing units across various regions of the country such as Madhya Pradesh, Assam,
Himachal Pradesh, Pondicherry, Sikkim and Tamil Nadu. It offers products across three
segments personal care, hair care and household care.

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2.1.2 GCPL HISTORY

Godrej Consumer Products Limited (GCPL) is an Indian consumer goods company founded in
2001 and based in Mumbai, India. The Consumer Products business was part of the erstwhile
Godrej Soaps Limited (GSL) and was demerged into Godrej Consumer Products Limited in
April 2001, pursuant to a scheme of demerger. GCPL is the major player in Indian FMCG
market with leading Household and Personal Care Products. GCPL's products include soap,
hair colourants, toiletries and liquid detergents. Its brands include 'Cinthol', 'Godrej Fair Glow',
'Godrej No.1' and 'Godrej Shikakai' in soaps, 'Godrej Powder Hair Dye', 'Renew', 'Colour Soft'
in hair colourants and 'Ezee' liquid detergent. GCPL currently operates several manufacturing
facilities in India spread over seven locations and grouped into 4 Operating Clusters at
Malanpur (Madhya Pradesh), Guwahati (Assam), Baddi- Thana (Himachal Pradesh), Baddi-
Katha (Himachal Pradesh), Pondicherry, Chennai and Sikkim. Its manufacturing facilities
located abroad at South Africa produce a range of personal care products and hair colour
products.

GCPL is building its presence in 3 emerging markets (Asia, Africa, Latin America) across 3
categories (home care, personal wash, hair care). In 2010, GCPL acquired the Indonesia based
Megasari group, a leader in household insecticides, air fresheners and baby care. With the
acquisition of Rapidol and Kinky in South Africa, and the Darling Group, a leading pan-Africa
hair care company, GCPL has a strong presence in the fast-growing African hair care market.
GCPL acquired the Issue and Argencos groups in Argentina, leaders in hair colour, in 2010,
and expanded its footprint to Chile through the acquisition of a 60% stake in Cosmetica
Nacional. The UK based Keyline Brands, which GCPL acquired in 2005, plays in hair and
personal care. GCPL also has a business in the Middle East and a strong presence across
SAARC countries.

Four Brands (Good Knight, Cinthol, Godrej No.1, Godrej Expert Hair Colour) are ranked
among the '100 Most Trusted Brands' in the country by Economic Times - Brand Equity 2012.
GCPL rank number 1 in hair colour, household insecticides and liquid detergents and number
2 in soap. GCPL products are available in over 60 Countries.

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2.1.3 AWARDS

● 2016 - Awarded the Porter Prize for Creating Shared Value 2016.

● 2016 - Ranked the number 1 FMCG company to work for in India by the Great Place
to Work institute.

● 2015 - Ranks on the CDP India Climate Disclosure Leadership Index 2015.

● 2015 - Bought 100% equity stake in Frika Hair (Pty) Limited.

● 2015 - Highest ranked Indian company on Forbes' list of The World's 100 Most
Innovative Growth Companies 2015.

● 2015 - First company in the world to receive the prestigious Platinum Level
International Achievement Award 2015.

2.1.4 SUBSIDIARIES

● Essence Consumer Care Products Pvt. Ltd.

● Naturesse Consumer Care Products Pvt. Ltd.
● Godrej Hygiene Products Ltd.
● Godrej Netherlands B.V

2.1.5 ACQUSITIONS

GCPL has bought out foreign companies such as Keyline Brands Limited (United Kingdom)
in 2005, Rapidol (Pty) Limited in 2006, and Godrej Global Mid East FZE in 2007 and the joint
venture with SCA Hygiene Products AB, Sweden in 2007.

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GCPL owned a 49% non-controlling share in Godrej Sara Lee Limited (GSLL), an unlisted
joint venture between the Godrej Group and Sara Lee Corporation USA, as of early 2010. In
May 2010, it acquired Sara Lee's 51% controlling share.

In 2010, Godrej made several acquisitions, including Indonesian firm Megasari and Tura. In
addition, Godrej entered Latin America with the acquisition of Issue Group and Argencos in
Argentina, and later acquired Cosmética Nacional, a Chilean company.

2.1.6 OWNERSHIP STRUCTURE

The Shareholding Pattern page of Godrej Consumer Products Ltd. presents the Promoter's
holding, FIIs holding, DII's Holding, and Shareholding by the general public etc.

Shareholding pattern - Godrej Consumer Products Limited

Holders Name No of Shares % Share Holding

Promoters 215496082 63.31%

Foreign Institutions 98184976 28.85%

General Public 19211196 5.64%

Financial Institutions 3796621 1.12%

Other Companies 2811141 0.83%

Banks & Mutual funds 878294 0.26%

2.1.7 SHARE PRICE OF GCPL

● GCPL Stock price (NSE) - ₹743.50

● GCPL Stock price (BSE) - ₹743.55

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2.1.8 COMPETITION

- In the soap’s category, GCPL brands compete with Lux and Lifebuoy (Hindustan
Unilever Limited); Nirma.
- In the hair colours category, its products compete for market share with Black Rose,
Super Vasmol and L’Oréal.
- Competitors in shaving cream category are Gillette, Palmolive and Old Spice.
- GCPL's talcum powder brands, compete with Pond's (HUL) and Denim.
- In the liquid detergent category, GCPL brands Ezee and Genteel, compete with Safe
wash (Wipro) and Surf Excel (HUL).

2.1.9 SALES AND DISTRIBUTION NETWORK

GCPL has a widespread distribution network across India. It makes sales in both urban and
rural markets, enabling it to benefit from the opportunities in both segments. It has a sales team
of over 250 staff spread across the country. It has a network of 33 C&F agents and as on 29
February 2008. It had 1,247 distributors, 142 super stockists and 3,175 sub stockists to support
the sales team in India. Its distributors and sub stockists cover around 650,000 retailers in India.
GCPL has linked its major distributors in India through a system called 'Sampark', a
collaborative planning, forecasting and replenishment system with its ERP system leading to
reduced inventory levels.

2.1.10 RESEARCH AND DEVOLOPMENT

GCPL's R&D departments focus on developing new products, standardising new analytical
methods [clarification needed] and finding cheaper and more abundant alternatives to key raw
materials. Through this research and development centre, GCPL continuously interact with
consumers to obtain feedback on its products and information obtained is leveraged to
complement new product development activities. The Godrej Research & Development Centre
is recognised by the Department of Science and Technology, New Delhi.

2.1.11 SIZE OF THE COMPANY

As of 2021, GCPL employs 12,000 employees.

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2.2 MISSION, VISION AND VALUES

2.2.1 MISSION

- Mission is to operate a new business which capitalizes on the GCPL brand and
Corporate image of reliability and integrity.
- GCPL objective is to delight its customers both in India and abroad.
- GCPL shall stive for excellence by naturing, developing and empowering it’s
employees and suppliers.
- GCPL encourages an open atmosphere, conductive to learning and teamwork.

2.2.2 VISION

- It's business to be globalised rapidly and to enrich the quality of life everyday
everywhere.
- We are dedicated to deliver superior stakeholder value by providing solutions to
existing & emerging consumer needs in the house hold & personal care business.
- We will achieve this to enduring trust & relentless innovations delivered with passion
and entrepreneurial spirit.

2.2.3 OBJECTIVES

Is to delight its customer both in India and abroad.

2.2.4 VALUES
- Integrity
- Trust.
- To serve respect.
- Environment.

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2.3 PRODUCTS OF THE COMPANY

- Goodnight
- Hit
- Jet
- Ezee
- Genteel
- Cinthol
- Godrej Vigil
- Godrej No.1
- Fair glow
- Shikakai
- Godrej Shaving
- Expert
- Colour Soft
- Nupur Mehndi

2.4 SWOT ANALYSIS

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT Analysis
is a technique for assessing these four aspects of your business. We can use SWOT Analysis
to make the most of what you’ve got, to your organization’s best advantage. And you can

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reduce the chances of failure, by understanding what you’re lacking, and eliminating hazards
that would otherwise catch you unawares.

Better still, you can start to craft a strategy that distinguishes you from your competitors,
and so compete successfully in your market.

2.4.1 STRENGTHS

Strengths are things that your organization does particularly well, or in a way that
distinguishes you from your competitors. Think about the advantages your organization has
over other organizations. These might be the motivation of your staff, access to certain
materials, or a strong set of manufacturing processes. Your strengths are an integral part of
your organization, so think about what makes it “tick.” What do you do better than anyone
else? What values drive your business? What unique or lowest-cost resources can you draw
upon that others can’t? Identify and analyse your organization’s Unique Selling Proposition
(USP), and add this to the Strengths section. Then turn your perspective around and ask
yourself what your competitors might see as your strengths. What factors mean that you get
the sale ahead of them? Remember, any aspect of your organization is only a strength if it
brings you a clear advantage. For example, if all of your competitors provide high-quality
products, then a high-quality production process is not a strength in your market: it’s a
necessity.

2.4.2 WEAKNESSES

Now it’s time to consider your organization’s weaknesses. Be honest! A SWOT Analysis
will only be valuable if you gather all the information you need. So, it’s best to be realistic
now, and face any unpleasant truths as soon as possible. Weaknesses, like strengths, are
inherent features of your organization, so focus on your people, resources, systems, and
procedures. Think about what you could improve, and the sorts of practices you should avoid.
Once again, imagine (or find out) how other people in your market see you. Do they notice
weaknesses that you tend to be blind to? Take time to examine how and why your competitors
are doing better than you. What are you lacking?

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2.4.3 OPPORTUNITIES

Opportunities are openings or chances for something positive to happen, but you’ll need to
claim them for yourself! They usually arise from situations outside your organization, and
require an eye to what might happen in the future. They might arise as developments in the
market you serve, or in the technology you use. Being able to spot and exploit opportunities
can make a huge difference to your organization’s ability to compete and take the lead in your
market. Think about good opportunities you can spot immediately. These don’t need to be
game-changers: even small advantages can increase your organization’s competitiveness. What
interesting market trends are you aware of, large or small, which could have an impact? You
should also watch out for changes in government policy related to your field. And changes in
social patterns, population profiles, and lifestyles can all throw up interesting opportunities.

2.4.4 THREATS

Threats include anything that can negatively affect your business from the outside, such as
supply chain problems, shifts in market requirements, or a shortage of recruits. It’s vital to
anticipate threats and to take action against them before you become a victim of them and your
growth stalls. Think about the obstacles you face in getting your product to market and selling.
You may notice that quality standards or specifications for your products are changing, and
that you’ll need to change those products if you’re to stay in the lead. Evolving technology is
an ever-present threat, as well as an opportunity! Always consider what your competitors are
doing, and whether you should be changing your organization’s emphasis to meet the
challenge. But remember that what they’re doing might not be the right thing for you to do,
and avoid copying them without knowing how it will improve your position. Be sure to explore
whether your organization is especially exposed to external challenges. Do you have bad debt
or cash-flow problems, for example, that could make you vulnerable to even small changes in
your market? This is the kind of threat that can seriously damage your business, so be alert.

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2.5 SWOT ANALYSIS OF GCPL

2.5.2.1 GCPL STRENGTH

Following are the Strengths in Godrej Consumer Products SWOT Analysis: -

- Some brands in 100 most trusted brands

- Presence in more than 60 countries

- Over 1,300 full-time employees

- Widespread distribution network across India

- To support the sales team, it has a network of 33 C&F agents, 1,200+ distributors, 150
super stockists, 3,200 sub stockists and 650,000 retailers in India.

- Recognized Godrej Research & Development Centre

- Focus on innovation

2.5.2.2 GCPL WEAKNESSES

Following are the Weaknesses in Godrej Consumer Products SWOT Analysis: -

- Market share is limited due to presence of other strong FMCG brands

- Godrej products has cut throat competition from big domestic players and
international brands like Colgate-Palmolive, Parle Agro, Hindustan Unilever, Nestle,
ITC

- Lack of strategic management system

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2.5.2.3 GCPL OPPORTUNITIES

Following are the Opportunities in Godrej Consumer Products SWOT Analysis: -

- Tap rural markets and increase penetration in urban area

- Increasing demand

- Acquire market share through branding.

- Mergers and acquisitions to strengthen the brand

- Increasing purchasing power of people thereby increasing demand

2.5.2.4 GCPL THREATS

Following are the Threats in Godrej Consumer Products SWOT Analysis: -

- Intense and increasing competition amongst other FMCG companies

- FDI in retail thereby allowing international brands

- Competition from unbranded and local products

- Changing behaviour of consumers

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2.6 GCPL BRAND ANALYSIS

Parent Company Godrej LTD

Category Home care, Personal Care

Sector FMCG

Tagline/Slogan Brighter Living; Enjoy a brighter Godrej

USP Providing superior quality and affordable products

2.7 GCPL STP

Godrej Consumer Products Care products for daily needs

Segmentation

Godrej Consumer Products Target Every Indian household especially middle

Market class

Godrej Consumer Products Positioning Value for money

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 CHAPTER 3
McKINSEY 7S FRAMEWORK

Hard Elements Soft Elements

Shared values

Strategy Skills

Structure Style

System Staff

Godrej Consumer Products Ltd B makes use of the McKinsey 7s model to regularly enhance
its performance, and implement successful change management processes. Godrej Consumer
Products Ltd focuses on the 7 elements identified in the model to ensure that its performance
levels are consistently maintained, and improved for the offerings.
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1. HARD ELEMENTS
The hard elements of the McKinsey 7s model comprises of strategy, structure, and systems.
The hard elements of the model are easier to identify, more tangible in nature, and directly
controlled and influenced by the leadership and management of the organization.

1.1. STRATEGY

1.1.1. Clearly defined

The strategic direction and the overall business strategy for Godrej Consumer Products Ltd are
clearly defined and communicated to all the employees and stakeholders. This helps the
organization manage performance, guide actions, and devise different tactics that are aligned
with the business strategy. Moreover, the business strategy’s definition and communication
also make operations for Godrej Consumer Products Ltd more transparent and aligns the
responsibilities and actions of the company.

1.1.2. Guiding behaviour for goal attainment

The strategic direction for Godrej Consumer Products Ltd is also important in helping the
business guide employee, staff, and stakeholder behaviour towards the attainment and
achievement of goals. SMART Goals are set with short- and long-term deadlines in accordance
with the business strategy. The business strategy helps employees decide tactics and behaviours
for attaining the set goals and targets to help the business grow.

1.1.3. Competitive pressures

Godrej Consumer Products Ltd strategy also takes into consideration the competitive pressures
and activities of competitors. The strategy addresses these competitive pressures through
suggestive measures and actions to address competition via strategic tactics and activities that
ensure sustainability to Godrej Consumer Products Ltd via adapting to market changes, and
evolving consumer trends and demands.
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1.1.4. Changing consumer demands
An important aspect of the strategy at Godrej Consumer Products Ltd is that it takes into
constant consideration the changing consumer trends and demands, as well as the evolving
consumer market patterns and consumption behaviour. This is an important part of the strategic
direction at Godrej Consumer Products Ltd as it allows the company to remain competitive and
relevant to its target consumer groups, as well as allows the company to identify demand gaps
in the consumer market.
The company then strategically addresses these gaps through product offerings and marketing
activities which give the company successful and leading-edge over other patterns in the
market.

1.1.5. Flexibility and adaptability

The strategy at Godrej Consumer Products Ltd is flexible and adaptable. This is an important
aspect of the strategic direction, and strategy setting at Godrej Consumer Products Ltd. Rigidity
in strategy leads a company and a business to often become stagnant and obstructs
advancement, and progression with evolving changes in the consumer markets.

With flexibility and adaptability, the Godrej Consumer Products Ltd is not only able to benefit
from quickly reacting and responding to changing consumer patterns globally, but is also able
to locally and culturally adapt its products via localization for different countries and regions.
Moreover, the company is often able to proactively predict consumer market changes, and
devise strategic changes accordingly to meet the market trends.

1.2. STRUCTURE

1.2.1. Organizational hierarchy

Godrej Consumer Products Ltd B has a flatter organizational hierarchy that is supported by
learning and progressive organizations. With lesser managerial levels in between and more
access to the senior management and leadership, the employees feel more secure and confident
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and also have higher access to information. Moreover, the flatter hierarchy also allows quicker
decision-making processes for Godrej Consumer Products Ltd B and increases organizational
commitment in the employees.

1.2.2. Inter-Departmental coordination

Godrej Consumer Products Ltd B has high coordination between different departments. The
company’s departments often form inter-department teams for projects and tasks that require
multiple expertise. All coordination between different departments is effective and organized.
Godrej Consumer Products Ltd B has a systematic process for initiating and monitoring
coordination between departments to ensure smooth work operations and processes – and goal
attainment.

1.2.3. Internal team dynamics [department specific]

Godrej Consumer Products Ltd B encourages teamwork and team-oriented tasks. Where jobs
require individual attention and scope, the company also assigns individual responsibilities and
job tasks. However, all employees at Godrej Consumer Products Ltd B are expected to be team
players who can work well with and through other members, and who get along well with other
people. The teams at Godrej Consumer Products Ltd B are supportive of all embers and work
in synch with synergy towards achieving the broader team objectives and goals under the
Godrej Consumer Products Ltd B designed strategy and values.

1.2.4. Centralization vs. decentralization

Godrej Consumer Products Ltd B has a hybrid structure between centralization and
decentralization. Like many progressive organizations, Godrej Consumer Products Ltd B
largely supports decentralized decision making. Job roles at Godrej Consumer Products Ltd B
are designed to be carried out with responsibility, and employees often set their goals with
mutual coordination and understanding with the supervisors.

However, Godrej Consumer Products Ltd B is also centralized in making sure that supervisors
oversee, and approve of the various efforts, and tactics that employees choose to ensure that
they are aligned with the organizational strategy ad values.

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1.2.5. Communication
Godrej Consumer Products Ltd B has a developed and intricate system for ensuring
communication between employees, and different managerial levels. The communication
systems at Godrej Consumer Products Ltd B enhance the overall organizational structure. The
systematic, defined, and organized communication allows an easy flow of information and
ensures that no organizational tasks and goals are compromised because of a lack of
communication, or misunderstandings.

1.3. SYSTEMS

1.3.1. Organizational systems in place

Godrej Consumer Products Ltd B has defined and well-demarcated systems in place to ensure
that the business operations are managed effectively and that there are no conflicts or disputes.
The systems at Godrej Consumer Products Ltd B are largely departmental in nature, and
include, for example: -

- Human resource management

- Finance
- Marketing
- Operations
- Sales
- Supply chain management
- Public Relation Management
- Strategic leadership

1.3.2. Defined controls for systems

Each of the defined and demarcated systems at Godrej Consumer Products Ltd B has especially
designed tools and methods as controls for evaluating performance and goal attainment. These
controls and measures are designed specifically in different departments based on the nature of
their tasks and responsibilities. Moreover, each department also designs specific controls for
members for performance evaluation, as well as for inter-departmental tasks and
responsibilities.

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1.3.3. Monitoring and evaluating controls
Godrej Consumer Products Ltd B continually evaluates its systems through the designed
controls. This monitoring of the performance is continual and ongoing. This is largely done
through observation and informal discussions. Feedback to employees and overall department
heads is informally given regularly as and when is required. Formal evaluation of performance
is also conducted semi-annually or quarterly, depending on the need and the urgency of the
projects and assigned tasks. This is a formal process that is undertaken by supervisors and
managers to ensure the identification of performance lags, and suggestive means of
improvement.

1.3.4. Internal processes for organizational alignment

Godrej Consumer Products Ltd B also has special processes and methods for ensuring that all
departments and systems within the organization are aligned and working in harmony towards
the greater business goals and targets. This is made possible through ensuring that all systems
are designing and working towards goals and targets specific to their expertise under the
broader business vision and strategy. Moreover, the strategic leadership at Godrej Consumer
Products Ltd B also ensures that all systems are allocated with resources, and set specific targets
to achieve similar business goals in any specific period.

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2. SOFT ELEMENTS
The soft elements of the McKinsey 7s model, in turn, include shared values, staff, skills, and
strategy. These elements are less tangible in nature and are more influenced by the
organizational culture. As such, the management does not have direct influence or control over
them. These elements are also harder to describe and directly identify – but are equally
important for an organization’s success and improved performance.

2.1. SHARED VALUES

2.1.1. Core values

The core values at Godrej Consumer Products Ltd B are defined and communicated to foster a
creative and supportive organizational structure that will allow employees to perform
optimally, and enhance their motivation and organizational commitment. The core values at
Godrej Consumer Products Ltd B include, but are not limited to:

- Creativity
- Honesty
- Transparency
- Accountability
- Trust
- Quality
- Heritage

The Godrej Consumer Products Ltd B business also ensures that all its activities and operations
are conducted with high ethical and moral standards that redefined and benchmarked against
international criteria.

2.1.2. Corporate culture

Godrej Consumer Products Ltd B encourages an inclusive culture that celebrates diversity. The
company has an international presence, and production units that are spread across different

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countries, as such, Godrej Consumer Products Ltd B ensure that its organizational culture is
supportive of diversity, and has internal policies to reduce incidences of discrimination.

The corporate culture at Godrej Consumer Products Ltd B also encourages innovation and
creativity by allowing independence for growth to individuals and teams –thus helping them
refine their careers as well as personalities. Lastly, the corporate culture at Godrej Consumer
Products Ltd B also has a supportive leadership which works towards increasing employee
motivation and job satisfaction by giving way to visibility and accessibility.

2.1.3. Task alignment with values

Godrej Consumer Products Ltd B ensures that all its job tasks and roles are aligned with the
core values that the company propagates. This means that all activities, tactics, and strategic
tactics employed by Godrej Consumer Products Ltd B will reflect its core values, and will not
deviate away from these. This is to ensure a consistent, and reliable brand image, as well as an
honest organizational culture. In the event of organizational change, the company will continue
to ensure that all change management processes and methods incorporate the core values so
that the organizational culture is consistently maintained, and systematically changed if need
be.

2.2. STYLE

2.2.1. Management/leadership style

Godrej Consumer Products Ltd B has a participative leadership style. Through a participative
leadership style, Godrej Consumer Products Ltd B is able to engage and involve its employees
in decision-making processes and managerial decisions. This also allows the leadership to
regularly interact with the employees and different managerial groups to identify any potential
conflicts for resolution, as well as for feedback regarding strategic tactics and operations.
Through its participative leadership, Godrej Consumer Products Ltd B is able to enhance
employee motivation, and increase organizational commitment and ownership amongst
employees as well as other stakeholders.

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2.2.2. Effectiveness of leadership style
The participative leadership style is highly effective in achieving the business goals and vision
of the organization. Employees feel to be active members of the organization who are valued
for their suggestions, feedback, and input. Moreover, through participative leadership, leaders
and managers are able to identify current and potential conflicts within the Godrej Consumer
Products Ltd B organization, and actively work to resolve them as soon as possible.

2.2.3. Cooperation vs competition – internally

With its supportive and encouraging organizational culture, Godrej Consumer Products Ltd B
gives way to internal collaboration and cooperation between employees, systems, teams, and
departments. This cooperation and collaboration at Godrej Consumer Products Ltd B is
important since its operations are spread globally, and also because tasks and responsibilities
within the company often require inter-departmental feedback and input. Moreover, with
increased expansion, and synergy, the business also regularly forms project teams – which
function effectively because of the cooperative and collaborative culture within the Godrej
Consumer Products Ltd B organization.

2.2.4. Team vs groups

Godrej Consumer Products Ltd B has effective and functional teams and works with them
internally to achieve its various business goals and objectives, and complete tasks. The
company’s management is encouraging and supportive, and the leadership provides a
motivating and pragmatic vision toad achieve. The human resource management system, as
well as the organizational training, supports all employees in their growth fairly and
transparently. This leads to effective team formation instead of nominal groups within the
organization for various projects, as well as department-specific tasks and roles.

2.3. STAFF

2.3.1. Employee skill level vs business goals

Godrej Consumer Products Ltd B has a sufficient number of employees employed across its
global operations. Employees for different job roles and positions are hired internally as well
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as externally – depending on the urgency and the skill levels required. Based on this, it is seen
that Godrej Consumer Products Ltd B has employees who are skilled as per the requirements
of their job roles and positions. All employees are given in house training to familiarize
themselves with the company and its values. External training along with in-house training is
provided for skill level enhancement.

All job roles and positions are designed to facilitate the achievement of business goals, and as
such, employee skill level at Godrej Consumer Products Ltd B is sufficient to achieve the
business goals of the company.

2.3.2. Number of employees

Godrej Consumer Products Ltd B has employed a large number of employees. The number of
employees varies from country to country as per the requirements and needs of the business
and operations. The global team of Godrej Consumer Products Ltd B is an inclusive one that
accepts, and encourages diversity, and works in synchronization with members to ensure
attainment of business goals. The team member sand employees are the most important part of
business success for Godrej Consumer Products Ltd B.

2.3.3. Gaps in required capabilities and capacities

Godrej Consumer Products Ltd B has a well-defined system for identifying potential needs of
capabilities and capacities for the organization. The human resource function of the business
has a systematic process that aligns all other departments to identify potential vacancies or skill
gaps. Based on the nature of the need, the human resource department arranges for recruitments
which may be permanent or contractual in nature, as well as arranges training sessions if need
be for the current workforce.

2.4. SKILLS

2.4.1. Employee skills

Godrej Consumer Products Ltd B has a commendable workforce, with high skills and
capacities. All employees are recruited based on their merit and qualifications. Godrej

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Consumer Products Ltd B prides itself on hiring the best professionals and grooming them
further to facilitate growth and development.

2.4.2. Employee skills vs task requirements

Godrej Consumer Products Ltd B has defined tasks and job roles and hires and trains employees
for skill levels accordingly with respect to those. The company ensures that all its job
requirements are met and that employees have the sufficient skills to perform their respective
jobs in accordance with the values and culture as well as the business goals and strategy of
Godrej Consumer Products Ltd B.

2.4.3. Skill management

Godrej Consumer Products Ltd B pays particular attention to enhancing the skills and
capacities of its employees. It arranges regular training and workshops – internally as well as
externally managed- to provide growth and development opportunities for its employees.
Godrej Consumer Products Ltd B focuses on personal as well as professional growth for its
employees and works accordingly with them.

2.4.4. Company’s competitive advantage

The human resource is one of the core competitive advantages of the company. The skills of
employees are developed specifically for job roles and requirements at Godrej Consumer
Products Ltd B and provide a competitive benefit to the company – where players cannot
imitate employee skills or training. This creates a unique and non-substitutable competency for
Godrej Consumer Products Ltd.

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 CONCLUSION

Godrej Consumer Products Ltd (GCPL) is one of the leading Fast-Moving Consumer Goods
(FMCG) companies in India. As part of the over 123-year young Godrej Group, they are
fortunate to have a proud legacy built on the strong values of trust, integrity and respect for
others. At the same time, they are growing fast and have exciting, ambitious aspirations. The
company has five product segments namely Household Insecticides Soaps Hair Colours Liquid
Detergents and Air Fresheners. The company has manufacturing facilities at Malanpur in
Madhya Pradesh Baddi in Himachal Pradesh Guwahati in Assam and Namchi in Sikkim. The
company has established a strong international presence through a slew of acquisitions over
the years. GCPL is among the largest household insecticide and hair care players in emerging
markets. In household insecticides it is the leader in India and the second largest player in
Indonesia. GCPL is the leader in serving the hair care needs of women of African descent the
number one player in hair colour in India and Sub-Saharan Africa and among the leading
players in Latin America. GCPL ranks number two in soaps in India. It is the number one player
in air fresheners and wet tissues in Indonesia. The company is among the largest marketer of
toilet soaps in the country with leading brands such as Cinthol Fair glow and Godrej No 1. Fair
glow India's first fairness soap created marketing history as one of the most successful
innovations. The company is also the leader in the hair colour category in India. They are
having a vast product range from Godrej Renew Colours soft Liquid Hair Colours Godrej
Liquid & Powder Hair Dyes to Godrej Kesh Kala Oil Nupur based Hair Dyes. Their Liquid
Detergent brand EZEE is the market leader in that category.

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 REFERENCE

 Robbins, Judge & Sanghi, Organizational Behaviour, 12th Ed. Prentice Hall India
 Hall, Robert E and David H Papell, Macro Economics: Economic Growth, Fluctuations
and Policy, Viva Books Private Limited, 2010
● https://godrejcp.com/
● https://en.wikipedia.org/wiki/Godrej_Consumer_Products
● https://www.mbaskool.com/brandguide/fmcg/2678-godrej-consumer-
products.html
● https://www.dksh.com/global-en/insights/seven-fmcg-trends-to-watch-out-for-
2019
● https://www.alliedmarketresearch.com/fmcg-market
● https://www.ibef.org/industry/fmcg.aspx
● https://www.business-standard.com/company/godrej-consumer-
21960/information/company-history
● https://www.essay48.com/case/8561-Godrej-Consumer-Products-Ltd-B-
Mckinsey-7s
● https://sites.google.com/a/stu.ximb.ac.in/godrej-consumer-products/home/brief-
history#:~:text=Godrej%20Consumer%20Products%20Limited%20(GCPL,to
%20a%20scheme%20of%20demerger

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