HRM in Context Assignment Sample
Reliance Industry
Introduction:
Reliance Industry Limited is a multinational conglomerate in India. It was founded by Dhirubhai Ambani in 1960. Reliance Industry Limited is a part of Reliance group. The company deals in oil and gas and it company ranked 96 in the Fortune Global 500.
STEEPLE Analysis:
STEEPLE analysis can be used to study the external factors that affect business in the long run. STEEPLE stands for Social, Technological, Economical, Environmental, Political, Legal, and Ethical.
-
Social Analysis:
Reliance Industry Limited contributes to society for a better life. It started initiatives in education, health, environment, and social development. To obtain sustainable development, the company is working on strategies for the continuous interaction of people and communities. Apart from that, a large number of initiatives have been taken by the company to develop community infrastructure and to protect the environment. Reliance also supports women and youth empowerment, which shows their contribution towards changing society.
-
Technological Analysis:
Reliance group is well known for its technological advancement, and disruptive technologies which can change the market scenario in such a short time. In 2016, Reliance Jio has been launched with the first-ever 4G volte service. Not only it attracts the consumer but also it forced the other telecom companies to lower their price. By the end of the year 2020, Reliance Jio became the largest selling telecom service provider. In the supply chain, the company does backward vertical integration which plays a vital role in the company’s growth. Reliance group has a strong back for investment and it invests a large amount of funds in technology in order to cooperate with the trend or to come up with some disruptive ideas.
-
Economic Analysis:
According to the first quarter report of 2021-2022, the standalone Reliance Industry Limited showed growth by 27.60% as the EBITDA goes at Rs. 27550 cr. Value of sales and service for the quarter was $12.8 billion which is higher by 81.4% and profit recorded of $1.2 billion which is higher by 76.3%. In consolidation, the value of sales and service is $21.4 billion higher by 57.4% and Net profit 1.9 billion higher by 66.7%. The Reliance Industry Limited is the only private sector company in India which records 1.9 billion of net profit in a quarter.
-
Environmental Analysis:
Reliance Industries Limited seeks internal and external perspectives in regarding to environmental issues. The main issue can be identified in the form of environmental issues. To deal with it, Reliance Industries Limited invested in “innovative renewable energy generation initiatives such as Algae to Oil and Jatropha-based biodiesel”. The company also invested in solar photovoltaic modules and biogas generation.
To prevent waste, the company recycled about 2 billion PET bottles a year. In FY 2016-17, water recycles percentage was about 45.50. According to annual report 2017, Reliance industry Limited was involved in setting up of National Centre for Marine Biodiversity which is a Centre for the study of India’s coastal biodiversity at Jamnagar.
-
Political Analysis:
Political factor affects the organization at a greater level. Reliance Industry Limited mainly operating in India and government policies in India is not stable. In a democratic government, after every 5 years, an election will take place and the possibility of change of government is high because of the influence of different leaders. Reliance Industry Limited also faces such issues that happened due to a change of policies. In 2016, Reliance Jio was launched and the prices were set to the lowest as possible but the government decided not to increase prices much to maintain fair competition in the market and prevent jio to become a monopoly in the telecom industry. However, Reliance Jio captured a large share of the telecom market. The political stability is also important for the flow of raw material and to maintain supply chain efficiency.
-
Legal Analysis:
Reliance Industries Limited follows strict laws in every field. The environmental protection law has been made to innovate and implement new ideas without affecting the environment. In manufacturing units, there are strict rules for the disposal of industrial waste under the government guidelines. Apart from the environment, company laws are strict towards labor minimum wages and it should be aligned with the company’s legal framework. Corporate laws are also an important part of legal. In Reliance Industry Limited, there is a separate legal team which ensures alignment of all kind of laws and incorporated in their business.
-
Ethical Analysis:
As a multinational conglomerate, Reliance Industry strictly follows the ethics in their businesses. In the company, the ethical practice differs from honesty to caring. Apart from these two, the company believes some other ethical practices like integrity, respect, fairness, purposefulness, trust, responsibility, and citizenship are also important.
Key factors affecting the company:
The three key factors that may affect the company are depending on the different analysis of Social, Technological and Environmental.
-
Social Factor:
RIL has some social responsibilities toward their employees, society, and business partners. The company has a great contribution of Corporate Social Responsibility in which the company already gave benefits to more than 4,00,000 people with their initiatives every month. A large number of initiatives focus on developing community infrastructure. According to a journal published by Dr. Navindra Kumar Totala, the Reliance Foundation group has already touched the lives of 35 million people in India and nearly 20,000 villages and some urban areas. The focus areas for Reliance foundations are rural transformation, healthcare, education, sports for development, disaster response, urban renewal, and arts and culture.
Reliance Industry Limited through Reliance Foundation contributed significantly to inclusive India. According to the Reliance Foundation Annual Report, the company contributes to a positive societal impact created through different initiatives. The Reliance foundation shaped itself to support meaningful activities through innovative institutions. The company develops its social responsibility to support sustainable development.
-
Technological Factor:
The Reliance group is always come up with new technologies. In the year 2016, when Reliance Jio was introduced, it was fully capable of providing 4G services in the whole country. This disruptive technology floods the Indian market with the cheapest telecom services. Reliance group is a big name associated with the latest optical fiber technology and due to their latest technologies and high investment in research and development. Apart from the Reliance Jio, Reliance Industry Limited invested in research and development to create timeless assets. The company shaped them to follow the technological part to not to get obsolete and continues progress on that makes company to 96 patent alone in 2019-20 in India and abroad. Reliance Industry Limited develops them by collaborating with various international and national institutes for research and development related activities..
- Political Factor: Political factor is always a big concern for Reliance Industries Limited. There are government policies and rules which affect the company’s wealth. In 2019, Reliance Industry Limited faced a pending tax case for oil and gas. The government claimed the pending dues as $4.5 billion as the tax amount from three operators, including ONGC. Reliance Industry Limited introduced arbitration in this case. Apart from the taxation case, the government intervenes again in Reliance Jio pricing and asks to end the charging money on every voice call from another operator. Since 2016, Reliance Jio has provided free voice calls to any operator. Due to that, the other operator faced losses and the government decision for the company was unfavorable, and the government asks them to pay Airtel and Vodafone.
The Telecom Regularity of India has said to maintain the perfect competition in the telecom market. The government intervention was disturbing the company’s business, however, company develop new strategies and became the price leadership in telecommunication industry.
Conclusion:
Reliance Industry Limited has a great influence on society and reliance foundation continuously making lives better. The technological aspect is the strong side of the company as they have many options available to come up with disruptive technologies. However, the company faced a lot of issues with the government tax policies and faced losses because of tax cases.
References:
Bhasin, H., 2021. What is Steeple Analysis? Meaning and Factors. [online] Marketing91. Available at: <https://www.marketing91.com/steeple-analysis/> [Accessed 13 August 2021].
Bhattacharjee, S., 2021. Three key issues and the rift between Reliance Industries and the Centre. [online] Business-standard.com. Available at: <https://www.business-standard.com/article/economy-policy/three-key-issues-and-the-rift-between-reliance-industries-and-the-centre-120010800337_1.html> [Accessed 13 August 2021].
Ril.com. 2021. Reliance Industries Limited. [online] Available at: <https://www.ril.com/Innovation-R-D/R-D.aspx#:~:text=Reliance%20has%20achieved%20significant%20technical,well%20recovering%20water%20and%20nutrients.> [Accessed 13 August 2021].
Ril.com. 2021. Corporate Social Responsibility :: Reliance Industries Limited. [online] Available at: <https://www.ril.com/ourcompany/csr.aspx> [Accessed 13 August 2021].
Ril.com. 2021. Corporate Sustainability :: Reliance Industries Limited. [online] Available at: <https://www.ril.com/sustainability/corporatesustainability.aspx> [Accessed 13 August 2021].
SWOT & PESTLE.com. 2021. Reliance Industries SWOT & PESTLE Analysis | SWOT & PESTLE. [online] Available at: <https://www.swotandpestle.com/reliance-industries/> [Accessed 13 August 2021].
Totala, N. and Jha, A., 2020. A Study of Corporate Social Responsibility initiative taken by Reliance Industries Limited. INTERNATIONAL RESEARCH JOURNAL OF MULTIDISCIPLINARY STUDIES, 6(5), p.7.
Ukessays.com. 2021. A Case Study For Vertical Integration Commerce Essay. [online] Available at: <https://www.ukessays.com/essays/commerce/a-case-study-for-vertical-integration-commerce-essay.php> [Accessed 13 August 2021].
Ukessays.com. 2021. Reliance Industries Limited Business Environment Analysis. [online] Available at: <https://www.ukessays.com/essays/business/business-environment-for-reliance-industries-business-essay.php> [Accessed 13 August 2021].
………………………………………………………………………………………………………………………..
Know more about UniqueSubmission’s other writing services:
