PROJECT REPORT

ON

Submitted by
Athira K.P.
(2018-2020)
To

Mr. ANANDA KRISHNAN S. NAMBIAR

(Faculty, Department of MBA)
International business

SAINTGITS INSTITUTE OF MANAGEMENT

Kottukulam Hills, Pathamuttom P.O, Kottayam 686532
September 2019
 Table of Contents

Sr No Title Pg No

1 Company Profile 2

2 Product and Services 3

3 Government regulations and impact on business 5

4 Contributions and operations 6

5 Strategies and external market grow 9

6 Competitive edge 11

7 Technology 14

8 Challenges
15

9 SWOT Analysis 17
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COMPANY PROFILE

Wipro is the India-based holding company that owns both Wipro Infrastructure Engineering and
Wipro Consumer Care and Lighting. Wipro Enterprises is headquartered in Bangalore, India.

Wipro Ltd., the flagship company of the Azim H Premji group was incorporated in the year
1945. The company started off originally as a manufacturer of vegetable ghee/vanaspati, refined
edible oils etc. Gradually the company has diversified into various other businesses.

Today Wipro Limited is the first PCMM Level 5 and SEI CMM Level 5 certified IT Services
Company globally. Wipro provides comprehensive IT solutions and services, including systems
integration, Information Systems outsourcing, package implementation, software application
development and maintenance, and research and development services to corporations globally.
In the Indian market, Wipro is a leader in providing IT solutions and services for the corporate
segment in India offering system integration, network integration, software solutions and IT
services. Wipro also has profitable presence in niche market segments of consumer products and
lighting. In the Asia Pacific and Middle East markets, Wipro provides IT solutions and services
for global corporations.

Wipro's ADSs are listed on the New York Stock Exchange, and its equity shares are listed in
India on the Stock Exchange – Mumbai, and the National Stock Exchange, among others.
Wipro is the leading strategic IT partner for companies across India, the Middle East and Asia–
Pacific – offering integrated IT solutions. They plan, deploy, sustain and maintain your IT
lifecycle through their total outsourcing, consulting services, business solutions and professional
services. Wipro InfoTech helps you drive momentum in your organisation – no matter what
domain you are in.
Backed by their strong quality processes and rich experience managing global clients across
various business verticals, they align IT strategies to your business goals. Along with their best
of breed technology partners, Wipro InfoTech also helps you with your hardware and IT
infrastructure needs.
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Products & Services offered by Wipro

IT Services:
Wipro takes charge of the IT needs of the entire enterprise. The gamut of services extends from
Enterprise Application Services (CRM, ERP, e-Procurement and SCM), to e-Business solutions.

Product Engineering Solutions:

Wipro is the largest independent provider of R&D services in the world. Using the Extended
Engineering model for leveraging R&D investment and accessing new knowledge and
experience across the globe, people and technical infrastructure, Wipro enables firms to
introduce new products rapidly.

Technology Infrastructure Services:

Wipro 's Technology Infrastructure Services (TIS) is the largest Indian IT infrastructure service
provider in terms of revenue, people and customers with more than 200 customers in US,
Europe, Japan and over 650 customers in India.

Business Process Outsourcing:

Wipro BPO is uniquely positioned to service customer requirements by leveraging its tenets of
quality and innovation, the best people talent, self sustaining process framework and domain
knowledge. We offer customized service offerings; translating into the most flexible and cost
effective services of the highest quality for our customers.

Consulting Services:
Wipro 's cross-industry consulting services helps in crafting visions for organizations and then
provide a specific, practical business and technology framework that will make that vision a
reality. Wipro's consulting competencies are spread across business, process, quality and
technology consulting.
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INTERNATIONAL REGULATIONS AFFECTING THE INDUSTRY

Information technology (IT) major Wipro Ltd. has listed U.S. President Donald Trump’s policies
as a risk factor that could impact its business, citing promotion of “greater restrictions on free
trade” among key worrying points.

The Bengaluru-based firm, which earned 52 % of its IT services revenue from the Americas,
including the U.S., said significant developments stemming from the U.S. presidential election
could have a material adverse effect on its business.

As a candidate, Mr. Trump and his administration had expressed support for policies impacting
existing trade agreements, like the North America Free trade agreement (NAFTA), and proposed
trade agreements, Wipro said in an SEC filing.

In its annual report for the fiscal ended March 31, 2017 filed with the market regulator, Wipro
further said the Trump administration was “promoting greater restrictions on free trade
generally and significant increases on tariffs on goods imported into the U.S.”

It added: “Changes in US social, political, regulatory and economic conditions or in laws and
policies governing foreign trade, manufacturing, development and investment in the territories
and countries where we currently operate could adversely affect our business.”

The company had reported net sales of Rs. 55,420.9 crore in the fiscal ended March 31, 2017.

After assuming office last year, Mr. Trump has taken several steps, including H-1B visa
restrictions that raised concerns in the Indian IT sector.

This April he signed an executive order that called for a review of the H-1B visa programme,
saying they should never be used to replace American workers and must be given only to the
most skilled and highest paid applicants.

The U.S. had also accused top Indian IT firms TCS and Infosys of ‘unfairly’ cornering the lion’s
share of the H-1B work visas by putting extra tickets in the lottery system.
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Wipro said in April that it expected locals to constitute more than half of its workforce in the
U.S. by June as it continues to make “significant” investments in the American market amid
tightening of visa norms.

The company further said in the SEC filing that if the economy in the Americas or Europe
continued to be volatile or uncertain or conditions in the global financial market deteriorate,
pricing for its services may become less attractive.

Clients located in these geographies may reduce or postpone their technology spending
significantly, it added.

The other factors, which the company said are “not within our control that could cause
significant variations in our results in any particular quarter”, include “political uncertainties or
changes in regulations in India, the United States and other countries that we operate in.”

Besides, it also said the duration of tax holidays or exemptions and availability of other Indian
government incentives would be a factor.
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OPERATIONS AND CONTRIBUTIONS :-

Certain statements in this release concerning our future growth prospects are forward-looking
statements, which involve a number of risks, and uncertainties that could cause actual results to
differ materially from those in such forward-looking statements.

The risks and uncertainties relating to these statements include, but are not limited to, risks and
uncertainties regarding fluctuations in our earnings, revenue and profits, our ability to generate
and manage growth, intense competition in IT services, our ability to maintain our cost
advantage, wage increases in India, our ability to attract and retain highly skilled professionals,
time and cost overruns on fixed-price, fixed-time frame contracts, client concentration,
restrictions on immigration, our ability to manage our international operations, reduced demand
for technology in our key focus areas, disruptions in telecommunication networks, our ability to
successfully complete and integrate potential acquisitions, liability for damages on our service
contracts, the success of the companies in which we make strategic investments, withdrawal of
fiscal governmental incentives, political instability, war, legal restrictions on raising capital or
acquiring companies outside India, unauthorized use of our intellectual property, and general
economic conditions affecting our business and industry.

Additional risks that could affect our future operating results are more fully described in our
filings with the United States Securities and Exchange Commission.
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STRATEGIES ADOPTED BY WIPRO

Diversification strategy is a form of growth strategy which is adopted in Wipro which helps the
organizational business to grow. It opens up new possibilities for the organization. By adopting
this strategy, the organization not only diversifies its products offerings in the target markets but
also expands its business horizons. The strategy helps the organization to increase sales volume
and revenues while keeping costs to minimum.

The other three strategies in this matrix are market penetration, product development, and market
development. Ansoff pointed out that a diversification strategy stands apart from the other three
strategies. These other three strategies are usually pursued with the same technical, financial, and
merchandising resources used for the original product line, whereas diversification usually
requires an organization to acquire new skills, new techniques and new facilities.

Growth strategies adopted through diversification in Wipro involve a significant increase in

performance objectives beyond past levels of performance. Many organizations pursue one or
more types of growth strategies. One of the primary reasons is the view held by many investors
that ‘bigger is better’. Growth in sales is often used as a measure of performance based on the
assumption that if sales increase, profits will eventually follow.
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External diversification

External diversification occurs when an organization looks outside of its current operations and
buys access to new products or markets. Mergers are one common form of external
diversification. Mergers occur when two or more organizations combine operations. These
organizations are usually of similar size. One goal of a merger is to achieve management synergy
by creating a stronger management team. This can be achieved in a merger by combining the
management teams from the merged firms.

 The new taxation policy can significantly impact the way of doing business and can open new
opportunity for established players such as Wipro Limited to increase its profitability.
 Organization’s core competencies can be a success in similar other products field. A comparative
example could be - GE healthcare research helped it in developing better Oil drilling machines.
 The new technology provides an opportunity to Wipro Limited to practices differentiated pricing
strategy in the new market. It will enable the firm to maintain its loyal customers with great
service and lure new customers through other value oriented propositions.
 Opening up of new markets because of government agreement – the adoption of new technology
standard and government free trade agreement has provided Wipro Limited an opportunity to
enter a new emerging market.
 Stable free cash flow provides opportunities to invest in adjacent product segments.
 With more cash in bank the company can invest in new technologies as well as in new products
segments. This should open a window of opportunity for Wipro Limited in other product
categories.
 New environmental policies – The new opportunities will create a level playing field for all the
players in the industry. It represent a great opportunity for Wipro Limited to drive home its
advantage in new technology and gain market share in the new product category.
 Government green drive also opens an opportunity for procurement of Wipro Limited products
by the state as well as federal government contractors.
 Decreasing cost of transportation because of lower shipping prices can also bring down the cost
of Wipro Limited’s products thus providing an opportunity to the company - either to boost its
profitability or pass on the benefits to the customers to gain market share.
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Wipro Limited Facing - External Strategic Factors

 The demand of the highly profitable products is seasonal in nature and any unlikely event during
the peak season may impact the profitability of the company in short to medium term.
 Intense competition – Stable profitability has increased the number of players in the industry
over last two years which has put downward pressure on not only profitability but also on overall
sales.
 No regular supply of innovative products – Over the years the company has developed numerous
products but those are often response to the development by other players. Secondly the supply
of new products is not regular thus leading to high and low swings in the sales number over
period of time.
 Rising raw material can pose a threat to the Wipro Limited profitability.
 Increasing trend toward isolationism in the American economy can lead to similar reaction from
other government thus negatively impacting the international sales.
 Shortage of skilled workforce in certain global market represents a threat to steady growth of
profits for Wipro Limited in those markets.
 Imitation of the counterfeit and low quality product is also a threat to Wipro Limited’s product
especially in the emerging markets and low income markets.
 Liability laws in different countries are different and Wipro Limited may be exposed to various
liability claims given change in policies in those markets.
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TECHNOLOGY

Over the last four decades, Wipro Infrastructure Engineering has employed highly advanced
technology for hydraulic cylinder manufacturing encompassing full design and engineering
know-how and in-house machining capabilities. In Aerospace too we have adopted this
philosophy. Our manufacturing facilities across the globe are equipped with best-in-class
machinery to produce products that meet our customers’ high-quality standards.
We continuously upgrade the technology that provides us the flexibility to manufacture
specific products as per individual customer requirements. Our experience and capabilities
extend to manufacturing parts from a large selection of metals including Titanium,
Aluminum, Inconel, SS and virtually any other materials needed.

Wipro evolves AI capabilities to maintain competitive edge

Wipro continues to invest in an AI-first approach to data and analytics. Learn about Wipro's
strategy, which includes a framework for using AI across the data and analytics value chain.

Indian IT services firm Wipro believes it is "very critical" today for all enterprises to move
beyond traditional AI and looking at historical data. Instead, Wipro said, it's time for companies
to embrace advanced AI capabilities, which means ensuring an AI system can recognize
emerging patterns.

Initially, Wipro focused on applying AI from an automation standpoint. The company sought to
optimize customers' existing processes to boost operational efficiency and create cost savings.

"While cost savings are important, applying AI as a revenue enhancement was an important ask
from our customers. This made us apply niche and emerging AI concepts" like automated
machine learning, meta-learning, Graph neural networks .

So Wipro has opted to focus the STRL framework on three areas: outcome shaping, behavior
inference and design for behavior change. Wipro is applying the framework in a number of
vertical markets, he said.
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Outcome shaping, for instance, is being used to help a large U.S. retailer predict its annual
revenue forecast with 99% accuracy. The framework "is helping the customer improve their
COGS .

The STRL framework is also helping banks to identify fraud rings from data that on the surface
appears to be normal, he noted. "Our Intelligent Fraud Prevention IP uses concepts like behavior
inference to identify emerging frauds and fraud rings.

CHALLENGES FACED BY WIPRO

Wipro met market estimates, remember these were low expectations from a laggard, which has
in the recent years struggled to even match its peers, forget outperformance.
How energy and utilities from which Wipro derives 16 per cent of its overall revenues has faced
challenges because of low energy prices and the impact global slowdown has had on its
outsourced research & development services business. Those reasons are valid but inadequate
going forward.

Wipro needs to get its act together in the BFSI segment, which has been its weak area for a long
time. Whether it does it through smart acquisitions or decides to grow aggressively organically,
The reason for this is simple. BFSI accounts for the biggest chunk of spend in the global IT
services space. Wipro compared to its peers like TCS, Infosys and Cognizant gets the lowest
amount of revenue from this critical vertical.

Third Wipro needs to take risks big and small. While the management mouthed the right words
of 'growth in digital, cloud and how automation had replaced nearly 4000 jobs, they need to
lead rather than follow. For that Wipro needs to invest in innovation. In the past in areas like
telecom and outsource R & D, Wipro lead the Indian IT pack. It needs to identify verticals,
where it can gain competitive edge and take more risks in them.

The company's ability to its top clients better. It has been a truism that most Indian IT
companies get a majority of their business by mining existing clients for additional work as they
embed more deeply into their operations. For instance this quarter its revenue from top 10
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clients declined to 19.3 per cent of its overall revenue compared to 21.2 per cent for the same set
of clients a year back.

FUTURE WIPRO

 Wipro to work together in design for additive manufacturing of aerospace systems

 IT services major Wipro NSE 0.57 % beat Street estimates to report 36 per cent profit
growth in September quarter at Rs 2,561.3 crore. On a sequential basis, the bottom line
was up 6.2 per cent.
 Operating margin improves
Wipro’s operating margin increased 3.1 per cent YoY to 18.1 per cent. “We delivered
operating margins in a tight range after absorbing the impact of two months of wage hike.
Growth remains our priority .
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Wipro SWOT Analysis

Strengths
 Continuous innovation: Wipro Technologies has an efficient research and development
facility that meets the global standards. In this regard, it continues to create new goods
and services that attract the attention of new customers as well as shareholders in the
market.

 For example, over 90% of its revenue comes from repeat business ,Many businesses are
in need of its software solutions, an implication that there is ever increasing demand for
its services or products.

 Skilled employees: the HR practices at the company has made it easier for Wipro to
remain its employees. For example, the recent changes in HR policies are suitable and
sustainable for employees. The overall attrition rate has significantly improved over the
last quarter.

 Economies of scale: the company also positions itself in the IT market as a low-cost
provider. This strength has made the company to achieve a lot in terms of increased
customer base. Economies of scale is allowed to clients who buy services or products in
large scale.

 Customer satisfaction: this is made possible through quality product and delivery
capabilities. Wipro Technologies gives quality a top most priority because it is committed
to ensuring customer satisfaction

 Eco-friendly products: innovation is the order of the day at Wipro Technologies, and it
has enabled the company to gain value propositions .It advocates for reusable computer
peripherals as well as less toxic material used in its production process.
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Weaknesses

 Overdependence of mature markets: this poses a risk to the company because the
domestic market is huge, yet it remains to be underdeveloped.

 Secondly, the company shies away from making a business investment

 For example, it does not encourage joint investment with the customer. Instead, it prefers
executing the business given out by the client.

 Strong concentration on the process: Wipro Company is very much focused on the
process and not the people (Wipro Ltd., 2017). As a result, delays have been common
especially during decision-making process by the top management.

 Precarious top management: frequent changes in top management is one area that the
company is doing badly.

Opportunities

 Consultancy area: Wipro Consultancy is believed to be one of the best in the IT

industry. The company is therefore in a position to achieve more especially with its large
customer base,

 Emerging technology: since it boasts of skilled employees, the latter can make good use
of technologies to create new products or services that satisfy the varied needs of the
consumers.

 Huge global and potential domestic market: as a global company, Wipro can take
advantage of global opportunities to increase its market share On the other hand, it has
the capacity to capture to domestic Indian IT industry, another opportunity to expand.
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Threats

 The high cost of human capital: due to high attrition rate in the IT industry, recruiting
people can be very costly. This can affect the profitability of the firm Stiff competition.
The level of competition in the IT market is very high. As a result, firms will always
compete for the buyers. It requires a unique differentiation strategy in order to penetrate
the market.

 Exchange rate: due to economic changes, exchange rates are affected either. For
example, high exchange rates impact negatively on the firm’s profits and vice versa.
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REFERENCE :-

 Thompson, A. (2017, May 21). Procter & Gamble SWOT Analysis & Recommendations.

Retrieved from http://panmore.com/procter-gamble-swot-analysis-recommendations.

 Department, S. M. (n.d.). The Procter & Gamble Company PESTEL Analysis &

Environment Analysis. Retrieved from http://fernfortuniversity.com/term-

papers/pestel/nyse4/787-the-procter---

gamble-company.php.

 Procter and Gamble Mergers and Acquisition. (n.d.). Retrieved from

https://ukessays.com/essays/marketing/global-mergers-and-acquisition-of-procter-

and-gamble-