PERSPECTIVE MANAGEMENTGROUP 3 ABCL PETROCHEMICALS COMPANY

OVERVIEWy ABCL petrochemical company founded as a collaboration in y y y y y y

the late 60s only till the 70s. Manufactured and sold 3 products P , A and T (Commodity products). Initially produced only near Pen in Raigad district. Financial performance was extremely good till the 90s. Also invented 10 new products (Speciality products). Liberalisation & globalisation Import duty protection was removed.

How do you think the activities of the company were arranged initially?

THEIR OBJECTIVES(PAST)

PRIMARY OBJECTIVE : MAXIMIZATION OF PROFITS BY

INCREASING PRODUCTION.

SECONDARY OBJECTIVE : INTRODUCTION OF NEW PRODUCTS

INITIAL ARRANGEMENTS OF ABCLManufacturin g the products. (Commodity and speciality products)

Purchasing RM

Distribution of FG.

Modifying the manufacturin g processes.

In house R&D

Maintaining & replacing the facilities.

PAST ORGANISATION STRUCTURE

M.D

EXECUTIVE ASSISTANT

FINANCE

PURCHASE

OPERATIONS

R&D

With the changing environment is there a need to change the organisation structure ?

There is a need for modifications in the structure .ENVIRONMENTAL FACTORS

INTERNAL FACTORS y Need for development. y Need for higher value added products.

EXTERNAL FACTORS y Changing government policies. Import protection vanished.

ORGANISATIONAL STRUCTURE (Present)FUNCTIONAL STRUCTURE

M.DEXECUTIVE ASSISTANT SELLING & DISTRIBUTION FINANCE R&D OPERATIONS MARKETING

How would you Re-organise ? Why?

OBJECTIVE :

PRIMARY OBJECTIVE: TO INTRODUCE NEW PRODUCTS AND IMPROVE EXISTING

ONES.

SECONDARY OBJECTIVE: TO IMPROVE THE VARIOUS PROCESSES. TO PRODUCE COST EFFECTIVE AND VALUE ADDED PRODUCTS. TO KEEP ON INNOVATING WITH NEW PRODUCTS THROUGH

(R&D )

ACTIVITIES INVOLVEDFinances required for production, research, etc. New product development (R&D) Marketing of the products (B2B).

Costing of the products at competitive prices.

Quality control

Compiling with environmental norms.

Modifying the processes and products through research and development.

Refining the product

Procurement of RM.

Manufacturing the product

GROUPINGGroup 2 : R&DObtaining funds. Utilising the funds. Costing of the RM & FG. Reduction of costs to help face competition. New technology. Developmen t Of higher value added goods. betterment and maintainenc e of quality. Environmen t friendly processes.

Group 3 : OPERATIONS

Purchasing RM. Manufacturi ng and refining of the products. Packaging of the products

Group 4: MARKETING

Group 1 : FINANCE

B2B marketing as the competition has increased due to globalisatio n and liberlisation. Market research to know customer preferences.

Group 5 : S&D

Increase number of distributors and wholesalers. Keep different distributors for commodity and speciality products.

Based on the grouping of functions the following departments can be formed.

DEPARTMENTIZATION ABCLFINANCE R&D OPERATIONS MARKETING SELLING & DISTRIBUTION

Organization structureFUNCTION BASEDFinance department Operations department Research and development department Marketing department Selling and distribution department

Person responsible Authority available Expected results

THE VARIOUS DEPARTMENT HEADS. WHO ARE IN TURN ANSWERABLE TO THE TOP MANAGEMENT.Cost reduction Good quality products as per buyers preferences Improved processes and higher value added products. Technological advancement Competitive marketing strategies (since theres direct competition from abroad) Increase of distribution channels

WHY?THERE IS A NEED FOR REORGANISING THE STRUCTURE BECAUSE OF :y Change in the external environment. y Increase in competition. y Cost effectiveness. y Change in government policies (L.P.G. 1991)

THANK YOU