“A STUDY ON ENTREPRENURSHIP WITH REFERENCE TO

OFFLAND GOLD & DIAMONDS, ATHOLI”

PROJECT REPORT

Submitted in partial fulfillment of the requirement for the Degree of Master

of Business Administration in Pondicherry University

Submitted by

ASWEEL M

REG NO :- 15397010

UNDER THE GUIDANCE OF

DR. (MRS.) B. CHARUMATHI

(ASSOCIATE PROFESSOR)

DEPARTMENT OF MANAGEMENT STUDIES

PONDICHERRY UNIVERSITY

PONDICHERRY - 605014

TABLE OF CONTENTS

No. TITLE

1 INTRODUCTION

2 OBJECTIVES OF THE STUDY

3 METHOD OF STUDY

4 OFFLAND GOLD & DIAMONDS

5 ORGANIZATIONAL STRUCTURE

6 SOURCE OF FINANCE

7 DEPARTMENTS

8 HUMAN RESOURCES

9 PRODUCTS OFFERED

10 CHALLENGES

11 MARKETING STRATGY

12 CURRENT SITUATION

13 CONCLUSION

INTRODUCTION

An entrepreneur is ordinarily called a businessman. He is a person who combines

capital and labour for the purpose of production. He organizes and manages a business

unit assuming the risk for profit. He is the artist of the business world.

Entrepreneurship is the willingness to take risks and develop, organize and manage a

business venture in a competitive global marketplace that is constantly evolving.

Entrepreneurs are pioneers, innovators, leaders and inventors. They are at the forefront

of technological and social movements – in their fields, in their forward thinking, in

their desire to push the envelope. They are dreamers and most importantly - doers

OBJECTIVES OF THE STUDY

To familiar with the day-to-day running of an entrepreneurial venture

To understand the working of an organization by interacting with an

entrepreneur

To know about challenges faced by entrepreneur in running a business

To know about marketing strategies used by an entrepreneur

To know how they procured finance for starting the entrepreneurial venture

To know motive for starting this venture

METHOD OF STUDY

In this project information are collected through direct observation of day to day

working of the entrepreneurial venture and by interacting with the entrepreneur and

other employees of the organization and observing the functioning of various

departments. The vital information such as source finance, motive for starting venture,

sales, marketing strategies etc. are collected by interviewing the entrepreneur

personally.

OFFLAND GOLD & DIAMONDS

Company profile

Company name Offland Gold & Diamonds

Type Partnership

Industry Jewellers

Founded 15 November 2014

Capital 2 crore

Founders Musthafa Kallathill

Shameer P.V

Lijas.K

Shameer M

Location Atholi, Kozhikode, Kerala

Products Gold, Silver and Diamonds

Number of employees 6

Offland Gold & Diamonds is jewellery shop started operation in 15 November 2014.

Offland Gold & Diamonds’s showroom is situated in heart of Atholi town, atholi is

one of emerging town in Kozhikode district. It has good showroom facilities and

parking area. This jewellery is started by four young entrepreneurs, three of them

previously worked abroad. It is a partnership based business started with a capital of

two crore rupees, which is raised only through share capital. The organization is

managed by Mr. Shameer, who possesses a proven track record in the field of gold

business over five years in the area of manufacturing, wholesale, exporting as well as

retailing. It sell only BIS Hallmarked 916 Gold, IGI Certified Diamond jewelry and

hallmarked silver jewellery. All products come with a detailed and transparent price

tag with details like gross weight, stone weight, making charge, stone charge and net

weight.

The main advantages of Offland Gold & Diamonds is only single local competitor.

The core strategy of founders is serve the local market where no big players exist.

Offland Gold & Diamonds is now planning to expand its business by starting two

more Jewellery shops in Payyoli and Ulleri. Special features of Offland Gold &

Diamonds is 100% BIS hallmarked 916 gold collections, vast array of modern

designer collections from India, Singapore, Europe, Middle East etc., guarantee and

free maintenance for gold ornaments, exclusive collections of diamonds and

availability of well trained professional sales executives. Total number of employees

working in the jewellery is six

ORGANIZATIONAL STRUCTURE

MANAGER

SUPERVISOR

SALESMAN ACCOUNTANT CASHIER

BACKGROUND OF ENTREPRENURS

Offland Gold & Diamonds is started by four young entrepreneurs who reside in the

Atholi town area. All partners are educated, they completed graduation in different

discipline. Their age ranging from 28 to 35 years. Three of them previously worked

different gulf countries. They resigned their job and now they are concentrating on

jewellery business. The other partner Mr. Shameer P.V is having around five year

experience in the field of jewellery business, he is a wholesale dealer of gold in

Calicut area. He own a gold wholesale shop in Calicut city, he import gold from

foreign countries and distribute to local jewellers.

SOURCE OF FINANCE

Offland Gold & Diamonds is started with capital of two crores. The finance for

starting the jewellery procured from each partner as their share capital. The

contribution of each partner is given below

Musthafa Kallathill : 6000000 (30%)

Shameer P.V : 7000000 (35%)

Lijas.K : 3000000 (15%)

Shameer M : 4000000 (20%)

The profit of the business is distributed on the same proportion. Some of the partner

collected the money from friends and relatives to invest in the venture. They also

applied for loan from bank for starting new branches.

DEPARTMENTS

In this organization there is only one department that is SALES DEPARTMENT, a

good sales department is necessary for success of the every jewellery. Under sales

department there is one supervisor and four salespersons are working. The five

workers has previous experience in the field they are working. Salesman

responsiveness of the jewellery is very good and it has good showroom facilities. Rest

of the work of other departments namely FINANCE, MARKETING, FINANCE AND

HUMAN RESOURCE which is done by the founders themselves. The partner of the

firm Mr. Shameer M is doing active role in the running of the business, he is doing the

work of above departments. The other partner Mr. Shameer P.V taking care of

PURCHASE of gold, silver and diamond jewelry.

HUMAN RESOURCES

Total number of employees employ in Offland Gold & Diamonds is six, they were

selected through interview. All of them are experienced in their job. There are four

salesman in the jewellery, two of them are female. The accountant is a B.COM

graduate, he works as accountant also as salesman. There is one receptionist she

previously worked in Apollo Gold, she welcoming each customer who enter the shop.

The owners himself act as manager and supervisor, most of the time cashier section is

occupied by anyone of the entrepreneurs.

PRODUCTS OFFERED

Rings

Chain

Earring

Pendant

Bangle

Necklace

Mangalsutra

Bracelet

Black Beeds Chain

Waist Chain

Maang Tikka

Charm

Tanmaniya

CHALLENGES

Starting a entrepreneurial venture is not an easy job, the entrepreneurs faces many

challenges while starting and running a business. The challenges faced by the founders

of Offland Gold & Diamonds are given below

1. Finance is the basic element for starting a business, they faced difficulty to get

adequate finance for starting the venture. They borrowed money from friends

and relative to start the jewellery.

2. Opposition from family members against resigning from job.

3. A jewellery shop should be in a location which is attractive and with adequate

parking area. The owners of Offland Gold & Diamonds unable find such a

location in the Atholi town.

4. Customers are unwilling to purchase jewelery from the shop because they are

doubtful about the quality of jewelery.

5. Stiff competition from local player Koyilatt Jewellery and established players

such as Malabar Gold & Diamonds, Apollo Gold, etc.

6. Difficulty and lag in getting license from panchayat.

7. Too much formalities for getting certificate such as BIS hallmark and other

certificates.

8. There was an auto stand just in front of the jewellery that creates

inconvenience to customers to reach the shop. They arranged a new place for

auto stand and also provide sitting facilities to auto drivers.

9. Customers prefer large jewelleries for bulk purchase such as for wedding.

10.Uncertainty about the success of the venture, stress and other problems related

with running the business.

MARKETING STRATEGY

Marketing is the most important function of the organization to increase sale and

popularity of the business enterprise. Offland Gold & Diamonds following various

marketing techniques to boost sale and to create a good image among public. Some of

the strategies which are adopted by Offland Gold & Diamonds are given below.

ADVERTISEMENT

Offland Gold & Diamonds using different advertisement activities like TV

advertisement in local channels, banner advertisement, announcements, newspaper

advertisement and also printing notices and distributing along with newspapers. It

almost spend 8 lacks for advertisements in the previous year.

GOLD PURCHASE PLAN

Offland Gold & Diamonds implemented a scheme GOLD PURCHASE PLAN, this

scheme helps financially unsound people to buy ornaments. It is just like installment

purchase, the customer has to pay money periodically.

EXCHANGE OFFER

Offland Gold & Diamonds providing exchange offer to its customers, they accept old

Jewellery and giving new Jewellery. It helps to create good customer relations and

goodwill.

LUCKY DRAWS

Offland Gold & Diamonds announce various lucky draw schemes in which the

purchase of a certain amount of gold makes a customer eligible to participate in a

lucky draw. It gives home appliance as prize. It helps to increase sales.

SPECIAL OFFERS (FREE GIFTS)

Offland Gold & Diamonds launch special offer schemes time to time for their

customers for the purpose to increase the sales. They generally distribute free gifts to

their customers on the purchase of Jewellery of a certain amount.

PRICE DISCOUNT

It also provide price discount to its customers in some occasions such as in festival

seasons.

REFRESHMENTS

It also provide different types of snacks, coffee, tea and cold drinks to their customers

so that they may feel relaxed and may select their ornaments in easy mood.

PERSONAL ATTENTION

This is the welcome strategy. When a customer reaches the showroom, the staff

welcomes him/her and pays its personal attention to him/her. Sometimes the owner

himself pays his personal attention to the customers.

SPONSORSHIP

Offland Gold & Diamonds sponsor various gift items at the time of festivals and other

occasions. Besides above, they provide sponsorship to various awards and trophies

during various sports events. It not only helps them in promoting their brand but make

their active presence in various social events too.

CURRENT SITUATION

Offland Gold & Diamonds is still at infancy, the popularity and sales are increasing

slowly. It now makes around 2.5 lakhs sales in each month. They are now more

concentrated on increasing sale buy increasing publicity. Spending on marketing

activity is gradually increasing, they now spend more money for different

advertisements. Offland Gold & Diamonds is now planning to expand its business by

starting two more branches in Payyoli and Ulleri, where no big players exist.

CONCLUSION

This project helped me to become familiar with day to day running of the

entrepreneurial venture Offland Gold & Diamonds. Through observation and

interaction with entrepreneur helped to understand the working of an organization. It

helped me to understand life of an entrepreneurs and challenges faced by them in

building an organization. It helped me to know about different aspects of

entrepreneurship.