Code Manpreer Reliance

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Understanding International Business (Seminar 2) Assessment 1: RELIANCE 1

Dhirubhai Ambani founded Reliance Industries Limited (RIL), a sizable conglomerate based in India that operates in a number of industries, including retail, oil refining, and petrochemicals. With a global presence, the company's strategic dynamics are influenced by several internal and external variables. The goal of this article is to do a thorough analysis of Reliance Industries Limited, paying particular attention to its ownership structure, success factors, threats, opportunities, and weaknesses (Shrivastava, 2021). In order to offer important insights into the company's strategic position, measures to counteract weaknesses and threats as well as recommendations for additional improvements will be investigated (Appendix 1). Under the inspiring direction of Mukesh Ambani, Reliance Industries Limited (RIL) possesses a potent array of resources that tactically place the business in the international market. Under the inspiring direction of Mukesh Ambani, Reliance Industries Limited (RIL) possesses a potent array of resources that tactically place the business in the international market. The company has demonstrated a strong dedication to vertical integration and diversification, which has resulted in a notable enhancement of operating efficiency (Lohana, 2021). As a result of this dedication, using outside providers is significantly decreased. The assertions of Mukesh Ambani, supported by interviews and yearly reports, demonstrate the real advantages of vertical integration in facilitating improved supply chain management and strikingly boosting operational efficiency 20% throughout the most recent fiscal year (Vijayakumar and Nethravathi, 2021). RIL's financial performance during the previous five years has consistently shown consistency in its financial position. In addition to solidifying RIL's place in the industry, this financial stability enables the business to make large investments in important projects and investigate fresh prospects (Appendix 1). For instance, to support innovation initiatives, RIL's capital expenditures on research and development rose by 25% in the most recent fiscal year (Saini, 2020). Though these are encouraging points, RIL suffers from a serious shortcoming: a large reliance on oil and gas earnings, which make about 65% of overall earnings. RIL is actively engaging in renewable energy source diversification in order to close this gap. Their decision to shift away from traditional revenue sources is reflected in their decision to allocate US$2 billion to renewable energy initiatives (Kundu and Sarkar, 2023). With the share of renewable energy 2

rising to 20% over the next three years, this diversification is anticipated to help create a balanced revenue stream. RIL also faces challenges from environmental issues, particularly in the refining and petrochemical industries. To overcome this vulnerability, the corporation is, nevertheless, moving very quickly. RIL is taking major steps towards environmental responsibility by investing a total of USD 500 million in green technology (Appendix 2). The company's ESG (environmental, social, and governance) ratios will improve as a result of these activities, which also reduce legal and reputational concerns and fit with international sustainability norms (Singhania and Saini, 2022). The present wave of digital change presents opportunities for RIL. Significant profits have been obtained by the corporation from its strategic investments in digital technologies, particularly the Jio platform. In addition to upending the telecom sector with its 400 million users, the Jio platform has made a substantial contribution to RIL's digital revenues, which increased by an astounding 30% in the previous year. RIL is leading the way in the digital revolution thanks to Mukesh Ambani's ambition to integrate digital platforms with traditional enterprises (Shanmugasundaram, 2020). RIL has a great chance to capitalise on its considerable global presence through global expansion. In this context, the company's strategic ambitions include breaking into new markets in Europe and Africa (Appendix 3). The goal of these initiatives is to expand revenue streams and reach undiscovered markets. According to RIL's goals, it wants to grow its revenue from overseas activities by 25% over the next two years. RIL proactively addresses global economic uncertainty by developing backup plans in case of threats. The company's adaptable business strategies have demonstrated efficacy in mitigating market swings, as demonstrated by a 15% surge in net profit amid the most recent economic recession (Konwar, 2023). Furthermore, RIL's risk management techniques, such as strategic alliances and currency hedging, lessen the effects of market volatility and geopolitical unrest. Strong competition is a concern that RIL is addressing with large expenditures in innovation, particularly in the retail and communications sectors. Spending on research and development rose by 18%, which resulted in ground-breaking inventions. The company's cooperative initiatives, like establishing strategic alliances with top tech firms, demonstrate its dedication to preserving a competitive edge. 3

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Reliance Industries Limited's performance is directly related to measurable elements that highlight the expansion and significance of the business (CHAUDHARY, 2022). As seen by the ground-breaking accomplishments of the Jio platform, adopting technology and digital transformation is a critical success factor. Reliance's overall performance has been positively impacted by the Jio platform, as evidenced by the company's 30% growth in telecom market share. In addition to positioning Reliance at the forefront of technical innovation, this digital endeavour contributed to a notable 25% rise in overall shareholder value during the most recent fiscal year. Another measurable component of Reliance Industries' success is its global expansion. Revenue from abroad operations increased by a resounding 15% as a consequence of the company's international market entry strategy (Bakshi, 2021). Reliance's geographic reach was increased by this growth, which also made a substantial contribution to the company's commendable 20% worldwide gain in net profit. Empirical evidence supporting the effectiveness of Reliance's worldwide projects includes positive financial outcomes and a noteworthy 10% rise in brand awareness in the global market. Reliance's Reputation Index has increased by a noteworthy 22% as a result of this practical strategy, confirming Ambani's dynamic leadership. With a 15% increase in R&D spending, Reliance has demonstrated its commitment to innovation and established itself as a global leader in fast-moving industries. Mukesh Ambani's assertion regarding leadership accountability and proprietorship is more strongly associated with measurable measures of achievement (Joshi, 2022). The emphasis on dedication to quality is emphasised by a noteworthy 12% rise in customer satisfaction. Reliance has demonstrated its commitment to ecologically friendly practises by aligning its focus on sustainable growth with a 25% reduction in the company's carbon footprint. To summarise, Reliance Industries Limited's strategic approach entails using its strengths, fixing its weaknesses, seizing opportunities, and reducing risks. The company's dedication to digital transformation, sustainability, and international expansion puts it in a successful position going forward. Reliance's position in the global business scene will be further strengthened by strategic actions to counter challenges and vulnerabilities as well as ongoing improvements (Appendix 1). This research offers a thorough perspective that aids in stakeholders' comprehension of the opportunities and complexity found in Reliance's strategy framework. Mukesh Ambani's vision and leadership, coupled with his accomplishments in the digital space, have played a significant 4

role in shaping Reliance's prosperous trajectory. The noteworthy yearly growth in market capitalization of 18% during Ambani's tenure is evidence of his strategic acumen and ability to make sound decisions. References Shrivastava, R., 2021. CSR: A Study of Reliance Industries Ltd. Issue 3 Int'l JL Mgmt. & Human., 4, p.376. Lohana, S.R., 2021. Reliance: a success story in international refinery sector. International Journal of Business and Globalisation, 29(3), pp.314-328. Vijayakumar, S. and Nethravathi, P.S., 2021. The Mega Conglomerate of India-Success Story of Growth of Reliance Industries: A Case Study. International Journal of Case Studies in Business, IT and Education (IJCSBE), 5(1), pp.143-154. Saini, V.K., 2020. RELIANCE INDUSTRIES-BUSINESS MODEL (Doctoral dissertation). Kundu, S. and Sarkar, A., 2023. Business Innovation in Retail, Playing the Right Cards: A Case of Reliance Retail. Indian Institute of Management, Kozhikode. Singhania, M. and Saini, N., 2022. Systems approach to environment, social and governance (ESG): Case of Reliance industries. Sustainable Operations and Computers, 3, pp.103-117. Shanmugasundaram, S., 2020. Internationalization and governance of Indian family-owned business groups. Journal of Family Business Management, 10(1), pp.76-94. Konwar, N.N., 2023. Financial Performance Analysis of Reliance Industries Ltd.–An Indian Conglomerate MNC. IJFMR-International Journal For Multidisciplinary Research, 5(1). CHAUDHARY, R., 2022. COMPARATIVE ANALYSIS OF JIO VS AIRTEL (Doctoral dissertation). Bakshi, J., 2021. Corporate Restructuring: A Modern Alternative for a Company's Survival. Issue 3 Int'l JL Mgmt. & Human., 4, p.3034. Joshi, P.L., 2022. Theoretical Retrospective and Prospective of Value-Based Management. 21st Century Strategic Management Accounting and Performance Measurement Systems, p.301. 5

Appendices Appendix 1: SWOT Analysis Strengths Weaknesses Improves operational effectiveness and lessens dependency on outside suppliers through vertical integration. Strong Financial Performances show consistency with a steady 15% yearly revenue increase. A deliberate move towards renewable energy offsets the 65% income share derived from oil and gas. $500 million has been invested in green technologies, and the carbon footprint has been lowered by 25%. Opportunities Threats Leveraging a 25% surge in digital income through digital transformation. Aiming to boost income from overseas businesses by 25%. In recessions, net profit was reduced by 15% due to risks associated with the world economy. An 18% increase in R&D expenditures countered fierce competition. Appendix 2: System Approach to Environment from RIL Appendix 3: RIL’s Strategic Focus Areas 6

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