Saint Gobain has already focused its attention in the Indian market by the acquisition of the majority of the stakes of Grindwell Norton in 1996 (one of the biggest grinding wheels company in India). From that moment, this company started to pay attention to different factors and resources that could not only facilitate the establishing of a new business model in thiscountry, but also a way to use this business model in an effective and an efficiently way, so the company could get profit for the shareholders and an expansion in all the country.
Saint Gobain decided, after entering in this new market, to launch its individual businesses in India, in order to operate in different business sectors. Right now, the company is manufacturing Flat glass (two companies inIndia), high performance materials (three companies in India) and construction products (3 companies in India).
It is important to mention that in order to set up a sustainable business model, taking in consideration cultural factors and different strategies used in countries that belong to the same sector, Saint Gobain decided to create the General Delegation that would cover India, Sri Lanka andBangladesh (also in 1996). This delegation has the purpose to facilitate the establishing of new businesses in those regions (especially in India), considering human resources as a fundamental key, ensuring synergy and coordinating the different businesses with the companies.
Moreover, the company is always trying to build employee commitment by creating a sense of reciprocity with theworkforce. This means that Saint Gobain pays a lot of attention to the HR, trying to satisfy them and to reach their interests, asking them in exchange to look also for the interests of the company. Furthermore, the enterprise tries to get people who have the capabilities and the skills necessary to respond to the market demand and to add value to the operational activities of the company.
One of thedelegates from the General Delegation manifested, when talking about the important position of Saint Gobain in India: “In India, we are Indian. We rely on local expertise and talent to develop and to grow our businesses. We recognize that our performance and growth thus far has been largely due to our most valuable resource – ‘People’. We believe that our people, their talents and skills, their spiritand enthusiasm are our greatest strength.”
On the other hand, by the application of this business model in India, which has been quite successful, the company always tries to balance the interest of the enterprise’s diverse stakeholders and the third people that have a direct or an indirect relationship with the company, in order to make them feel secure. Therefore, Saint Gobain focus on socialresponsibility among families and businesses, providing a transparency and an honest view of the activities that are made within the organization.
Consequently, they are not scared to show financial graphics about the performance of the different company:
Total sales: € 40.1billion
Net Income: €1.3 billion
Cash Flow: € 3 billion
Capital Expenditure: € 1.5 billionSAINT GOBAIN: CHINA
Saint Gobain has been also able to enter in the Chinese market, with the presence of different companies and businesses in various cities across the country. This process has been possible by the application of Joint Ventures with Chinese corporations, where they could exchange knowledge, minimize the cost risk, know in a better way the market (competition, new entries,logistic, etc), manage resources in a better way and others. Additionally, Saint Gobain has wholly foreign owned enterprises, which are companies completely owned by Saint Gobain, keeping in this way its autonomy to make decisions.
The step of going to this country has been taken because China it’s not a centralized country, where the price of raw materials, capital and products varies greatly...