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    INTRODUCTION OF PORTER

    The model of the Five Competitive Forces was developed by Michael E. Porter inhis book Competitive Strategy: Techniques for Analyzing Industries andCompetitors in 1980. Since that time it has become an important tool foranalyzing an organizations industry structure in strategic processes.

    Porters model is based on the insight that a corporate strategy should meet theopportunities and threats in the organizations external environment. Especially,competitive strategy should base on and understanding of industry structuresand the way they change.

    Porter has identified five competitive forces that shape every industry andevery market. These forces determine the intensity of competition and hencethe profitability and attractiveness of an industry. The objective of corporatestrategy should be to modify these competitive forces in a way that improvesthe position of the organization. Porters model supports analysis of the drivingforces in an industry. Based on the information derived from the Five ForcesAnalysis, management can decide how to influence or to exploit particularcharacteristics of their industry.

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    Bargaining Power of Suppliers

    The term 'suppliers' comprises all sources for inputs that are needed in orderto provide goods or services.

    Supplier bargaining power is likely to be high when:

    There are no substitutes for the particular input,

    The suppliers customers are fragmented, so their bargaining power is low,

    The switching costs from one supplier to another are high,

    There is the possibility of the supplier integrating forwards in order to

    obtain higher prices and margins.

    In such situations, the buying industry often faces a high pressure onmargins from their suppliers. The relationship to powerful suppliers canpotentially reduce strategic options for the organization.

    Similarly, the bargaining power of customers determines how much customerscan impose pressure on margins and volumes.

    Customers bargaining power is likely to be high when

    The supplying industry comprises a large number of small operators

    The supplying industry operates with high fixed costs,

    The product is undifferentiated and can be replaces by substitutes,

    Customers have low margins and are price-sensitive,

    The customer knows about the production costs of the product

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    Threat of New Entrants

    The competition in an industry will be the higher, the easier it is for othercompanies to enter this industry. In such a situation, new entrants could change

    major determinants of the market environment (e.g. market shares, prices,customer loyalty) at any time. The threat of new entries will depend on theextent to which there are barriers to entry. These are typically

    Economies of scale (minimum size requirements for profitable operations),

    Brand loyalty of customers

    Protected intellectual property like patents, licenses etc,

    Scarcity of important resources, e.g. qualified expert staff

    Access to raw materials, distribution channels and customer relations arecontrolled by existing players,

    Threat of Substitutes

    A threat from substitutes exists if there are alternative products with lowerprices of better performance limits for the same purpose. They couldpotentially attract a major amount of market size and hence reduce thepotential sales volume for existing players. This category also relates tocomplementary products.

    Similarly to the threat of new entrants, the threat of substitutes is determinedby factors like

    Brand loyalty of customers,

    Close customer relationships,

    Switching costs for customers,

    The relative price for performance of substitutes,

    Current trends.

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    Competitive Rivalry between Existing Players

    This force describes the intensity of competition between existing players(companies) in an industry. High competitive pressure results in pressure on

    prices, margins, and hence, on profitability for every single company in theindustry.

    Competition between existing players is likely to be high when

    There are many players of about the same size,

    Players have similar strategies

    There is not much differentiation between players and their products,

    hence, there is much price competition

    Low market growth rates

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    SWOT

    SWOT analysis is a strategic planning method used to evaluate the Strengths,

    Weaknesses, Opportunities, and Threats involved in a project or in a business

    venture. It involves specifying the objective of the business venture or projectand identifying the internal and external factors that are favorable and

    unfavorable to achieve that objective..

    A scan of the internal and external environment is an important part of thestrategic planning process. Environmental factors internal to the firm usuallycan be classified as strengths (S) or weaknesses (W), and those external to thefirm can be classified as opportunities (O) or threats (T). Such an analysis of

    the strategic environment is referred to as a SWOT analysis.

    The SWOT analysis provides information that is helpful in matching the firm'sresources and capabilities to the competitive environment in which it operates.As such, it is instrumental in strategy formulation and selection. The followingdiagram shows how a SWOT analysis fits into an environmental scan:

    SWOT Analysis Framework

    Environmental Scan

    / \

    Internal Analysis External Analysis

    / \ / \

    Strengths Weaknesses Opportunities Threats

    |

    SWOT Matrix

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    Strengths

    A firm's strengths are its resources and capabilities that can be used as a basisfor developing a competitive advantage. Examples of such strengths include:

    patents strong brand names good reputation among customers cost advantages from proprietary know-how exclusive access to high grade natural resources favorable access to distribution networks

    Weaknesses

    The absence of certain strengths may be viewed as a weakness. For example,each of the following may be considered weaknesses:

    lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels

    In some cases, a weakness may be the flip side of a strength. Take the case inwhich a firm has a large amount of manufacturing capacity. While this capacitymay be considered a strength that competitors do not share, it also may be a

    considered a weakness if the large investment in manufacturing capacityprevents the firm from reacting quickly to changes in the strategicenvironment.

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    Opportunities

    The external environmental analysis may reveal certain new opportunities forprofit and growth. Some examples of such opportunities include:

    an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers

    Threats

    Changes in the external environmental also may present threats to the firm.Some examples of such threats include:

    shifts in consumer tastes away from the firm's products emergence of substitute products new regulations increased trade barriers

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    AJANTA FOOD PRODUCTS

    The company produces confectionery items candies and lollipops. The companywas started in year 1978. The company runs all 365 days. Also on some occasions

    there are holidays. The company remains close on Fridays due to cut off of

    power supply.

    The company starts at 6:00 in the morning and ends at 8:00 in evening. The

    workers according to their number have breaks for snacks or lunch. There is a

    strong management structure in the company. The leadership in the companyautocratic and discipline is always is always maintained in the company. The top

    level management provides bonus to the staff on Diwali and at the end of year.

    The goods are not distributed in the local markets but are expored to other

    countries. The export process is done according to the government law and their

    policies

    Accordingly the sales of the company include VAD tax-12.5% and CST taxes-2%.

    The company is also given rewards by the government for their exports.

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    MANAGEMENT IN AJANTA FOOD PRODUCT

    Ajanta food product is a company in ulhasnagar camp 4. It has huge number of

    production daily. It produces confectioner items (candies and lollipops) which

    are very demanding not only in India but in all over the world.

    HEADS OF THE AJANTA PVT LIMITED

    OWNER : MR. SANJAY M. VISHNANI

    MANAGER : MR JAI KUMAR BHAWANANI.

    PRODUCTION : MRPRAVEEN BALANI

    Company: AJANTA FOOD PRODUCTS

    Activities: FOOD RRODUCTS, CONFECTIONERY FOOD PRODUCTS

    Category: CONFECTIONERY

    State: MAHARASHTRA , INDIA

    City: ULHASNAGAR

    Address: P.N.11-A,INDUSTRIAL AREA

    Phone: +0091-25-12582636

    Fax: 15693381

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    MACHINES:

    Laminator:

    Laminators are used for making multiplelayers of dough (laminations) for cutting

    process for making quality cracker

    biscuits. These can be either made in

    Vertical or Horizontal Configurations as

    per requirements.

    Gauge roll:

    Gauge Rolls are used to give better finish and to adjust the thickness of sheetafter the Lamina tor or Triple roll

    Sheeter.

    This is done by heavy duty Gauging

    Rollers made chilled cast iron.

    These rolls work in pairs to give a

    smooth finish to the sheet. A

    Scrapping Knife is provided toremove dough (if any) from the

    gauge roll.

    The number of Gauge Rolls depends

    on the Length of the Oven and production capacity.

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    Molding Machines:

    The Rotary Molders is used to make soft dough

    cookies and biscuits. Stainless Steel parts are

    used for contact parts, are used for contact

    parts, covers, hoppers and trays to maintain

    hygienic conditions.

    Sugar Grinder:

    The machine is used to grind the

    granules of sugar into fine powder. The

    grinder of the machine is hammer mill

    type.

    Automatic feeding system isincorporated for better

    productivity.

    After grinding powder can eitherbe collected in box or into bag.

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    INGREDIENTS USED FOR MAKING BISCUITS

    SUGAR FOOD COLOUR

    WATER GULUCOUS

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    ESSENCE SALT

    COCONUT CRUSH MILK POWDER

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    MANUFACTURING PROCESS

    Manufacturing process of candies:

    Step 1

    In the manufacturing process of Ajantafood products, the first step is themixing process. In the mixing processthe fixed amount of sugar and hugeamount of glucose is been put togetherin the mixture machine. It mixed withdifferent acnes for adding flavors. Thisliquid mixture is stirred and mixed

    properly and heated for at least 45minutes.

    Step 2

    After mixing process than comes the takeaway process. In this process the mixturewhich is mixed in step 1 is been taken outon the slab than it is mixed manually for10-15 minutes. This mixture is mixed untilit looks like bulky plastic bag. Whilemixing the mixture the personnel use a

    white powder which avoids the mixture tobond of slab.

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    Step 3

    After mixing and take away process than

    comes the rolling process. In rollingprocess, the taken away mixture, which waslooking like a bulky plastic bag is inserted inthe roller machine where they areconverted into smooth layer. The rollingprocess involves the combination of tworollers. In rolling process the two rollerssqueeze the bulk of mixture into thin layer.This process gives the mixture a correct

    shape.

    Step 4

    The 4 step consist of moulding processwhere the thin layer of mixture arefragmented and molds into the shape ofcandies and lollipops. In the mouldingprocess the company uses many molds formanufacturing different shapes and sizes

    of candies and lollipops. In this process, theunwanted material, which was introducedfrom molding process is separated andreused.

    This process involves molding process ofcandies as well as lollipops for whichdifferent machines are being used.

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    Step 5

    After molding process then comes the

    checking process. In this process thecandies and lollipops are reserved inlarge containers in huge quantity.Checking is done before the packagingprocess. In this process the necessaryobservation in done in order to avoidthe unprocessed candies.

    Step 6Sixth step involves the cooling process in thisthe process the candies are kept in hugecontainers for 15 to 20 minutes for chillingpurpose. After the candies and lollipops arecooled they are sent for packaging purposeafter the essential inspection.

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    Step 7

    After the cooling process than comes the packaging process. In this process thecooled candies are packed. But however before packaging the necessary

    inspection is done by the supervisors. After inspection the candies and lollipopsare kept in big plastic bags. And then at last the candies and lollipops arepacked according to their flavors and quantities.

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    PACKING PROCESS

    The fresh candies and lollipops are brought in the packing department in bags.

    In packing process around 50 employees work. Amongst these 40 employees

    pack manually and rest do the packing by using machines.

    Different types of plastic bags are given to the workers. These plastics bagsvary according to the flavors.

    There are also different types of wrappers according to the flavor of thecandies and lollipops.

    The lollipops are been wrapped and packed in plastic jars. These jars also varyaccording to the flavors of the lollipops.

    Here in the process of packing 60% of work is done through machines while only40% work is done manually.

    In the machine first the candies are been inserted and the machine start theprocessing.

    Here in the machines a plastic tape is rolled. The candies then push the wrapperand the wrapper is then been cut with a sharp blade inside the machine. Thesewrapped candies are then thrown out with a needle and then slide down in

    plastic bags.

    Then a plastic tape is inserted in the machine. It is been joined with a pulleywhich rotates the plastic tape. This pulley is joint with a sharp blade which thencuts the tape and wraps the candies.

    Finally the small candies are been wrapped into wrappers of different designs.These candies are then thrown out of machines with the help of a needleattached to the spring. The candies then slide downward into plastic bags.

    After the candies and lollipops are wrapped they are packed in different plasticbags, they are stored in big cartoons of different packing designs.

    These cartoons are packed with machines with seal them. These machinescontain plastic strips which automatically seal the box. These boxes are tentransferred to the warehouses where they are stored. Then they are sold in themarket.

    These products are not only sold in local market but are sold inINTERNATIONAL MARKETS.

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    TYPES OF CANDIES

    PINEAPPLE BLACKCURRANT GINGER

    STRAWBERRY ORANGE MINT

    COCONUT LIME MANGO

    Ajanta food products mainly deal in manufacturing of candies of various flavors

    which they supply to distributors. The various flavors of candies in which Ajanta

    food products deal are as follows: Pineapple, Blackcurrant, Ginger, Strawberry,

    Orange, Mint, Coconut, Lime, and Mango.

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    SWOT

    Opportuniti

    es

    Threats

    Weakness

    Strength

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    SWOT ANALYSIS OF AJANTA FOOD PRODUCTS

    1.STRENGTHS OF AJANTA:

    Every organization has some strength. In some cases this is obvious, forexample, dominant market shares. In other cases, it is a matter of perspective,

    for instance, a company is very small and hence has the ability to move fast. It

    is important to note that companies that are in a bad position also have

    strengths. Whether these strengths are adequate is an issue for analysis.

    It is situated in an industrial area fromwhere there is easy transportation available so

    they can transport their goods easily from that

    place

    This company has large working experienceof over 15 years so they can manage the acrivies

    of the company smoothly and effectively

    The hierarchy the company is properlybalanced and the management is carried

    accordingly The suppliers of raw material are situated

    near by company so which also saves time.

    All the products of the company areproperly stored in an air conditioned room as they

    require cool and dry place to b stored

    Technology available with the firm is prettygood so the work is done more efficiently and time is saved.

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    2. WEAKNESSES OF AJANTA:Every organization also has some weakness. In some cases, this is obvious;

    say for example, a stricter regulatory environment. In other cases, it is a

    matter of perspective, for example, a company has 99% market share and is

    open to attack from every new player. It is important to note that companies

    that are extremely competent in what they do, also have weaknesses. How

    badly these weaknesses will affect the company is a matter of analysis

    The building of company is very old and through these years the strengthof building is not as much as it was before so there are many problems

    like leakages, growing of fungi on the walls and cracks in the walls. Company sends its goods to the retailers in plastic containers which are

    not clean enough so the quality of goods is also affected.

    There is mixing of left overs in the production of new products. While manufacturing people in the company do not wear any gloves or

    anything as such so the germs in the hands of workers might enter the

    food products.

    Handling of goods in the company is not proper which might sometimesleads to defect of goods.

    There were no proper covering of hair of workers so their hair might fallin the food products made there.

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    3. OPPORTUNITIES OF AJANTA:

    All organizations have some opportunities that they can gain from. These could

    range from diversification to sale of operations

    Completion faced by company is minimal so they can easily change theirstrategies and can expand the business.

    The goodwill of company is good so they can attract more and morecustomers.

    The company can also manufacture the close substitute products asthey have plenty of resources.

    Their business sector is expanding, with many future opportunities forsuccess.

    Their competitors are slow to adopt new technologies. Manpower available to the firm is more than sufficient thus can

    increase opportunities for the firm

    As these are Fast Moving Consumer Goods there are moreopportunities available for attracting customers by changing

    the flavors of the food products.

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    4. THREATS IN AJANTA:

    No organization is immune to threats. These could be internal, such as falling

    productivity. Or they could be external, such as lower priced international

    competition

    There is threat of entry of new individuals andincreasing competition.

    There is threat of our managers and supervisorsgoing out of firm and establishing their firm thus

    by increasing competition.

    Development is technology is also a threat to thecompany.

    Changing in taste of customers is also a threat tothe company

    Moving of customers from our firm to othercompetitors is also a threat to the firm.

    Change in duties and taxes by government are also a threat to the firm. There is also a threat of transportation strikes as due to strikes the

    goods will b not delivered on time.

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    THE SWOT MATRIX

    A firm should not necessarily pursue the more lucrative opportunities. Rather, itmay have a better chance at developing a competitive advantage by identifying a

    fit between the firm's strengths and upcoming opportunities. In some cases,the firm can overcome a weakness in order to prepare itself to pursue acompelling opportunity.

    To develop strategies that take into account the SWOT profile, a matrix ofthese factors can be constructed. The SWOT matrix (also known as a SWOTMatrix) is shown below:

    DEFINATION

    A tool that identifies thestrengths, weaknesses, opportunities and threats of

    an organization. Specifically, SWOT is a basic, straightforward model that

    assesses what an organization can and cannot do as well as

    its potential opportunities and threats. The method of SWOT analysis is to take

    the information from an environmental analysis and separate it into

    internal (strengths and weaknesses) and external issues (opportunities and

    threats). Once this is completed, SWOT analysis determines what may assist

    the firm in accomplishing its objectives, and what obstacles must be overcome

    or minimized to achieve desired results.

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    PORTER'S

    5 FORCES

    MODEL

    BARGAINING

    POWER OF

    CUSTOMER

    THREAT

    POSTED BY

    SUBSTITUTE

    PRODUCTS

    THREAT

    POSTED BY

    NEW

    ENTRANTS

    COMPETITION

    AMONG

    EXISTING

    FIRMS

    BARGAINING

    POWER OF

    SUPPLIERS

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    FIVE FORCE MODELS

    Porter's 5 forces model is a powerful way of analyzing the competitive forces

    that shapes every industry in general. This was developed by Michael E. Porterof Harvard Business School in 1979. This tool helps you to identify whether anew product, investment, services or business have the potential to beprofitable.

    The 5 competitive forces that are taken into consideration are: Competition in the Industry Potential of new entrant into Industry Power of Suppliers Power of Customers Threat to substitute products

    Like every company Ajantas working also depends upon porters five force

    models.

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    BARGAINING POWER OF SUPPLIERS:

    As Ajanta is a CONFECTIONERY producing company so for that they deals with

    number of suppliers. Ajanta believes those suppliers are

    very important in every aspect. As without raw materialsproduction is not possible. So they provide them with

    various types of discounts and schemes.

    As Ajanta is the small scale company manufacturing

    candies and lollipops, the suppliers of Ajanta supplies to

    more than one company. Ajanta works on small scale so it is

    not easy for Ajanta to manufacture the raw materials of

    their own hence they have to accept the rates of suppliers..

    In the case of Ajanta the bargaining power of suppers is up to 50%

    BARGAINING POWER OF CUSTOMER:

    As consumers are given first priority by Ajanta Company so they allow some kind

    of discounts to their customer such as cash discounts up to 10%. In Ajanta

    buyers purchases from more than one company so the charges are nominal. Like

    every other company Ajanta also have more number of suppliers as compare to

    buyers.

    As per the above given data BARGAINING POWER OF CUSTOMER of Ajanta

    is up to 60%.

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    THREAT POSTED BY SUBSTITUTE PRODUCTS:

    Now a day in competitive world more than 60% of the

    companies face the competition and threats from the

    products which are substitute to their products. A closesubstitute is a potential threat to the companys products.

    Like other companies Ajanta face competition from many

    other types of candies and biscuits manufactured in other

    firms

    Normally Ajanta faces competition for the products like

    candies and lollipops which are fast moving products of

    Ajanta.

    In the case of Ajanta the threats posted by substitute products are not less

    than 40%

    THREAT POSED BY NEW ENTRANTS

    The Ajanta company was started in the year 1978. At the time when Ajanta

    entered in the market the 5 year plan policy

    changed because of which Ajanta faced severe

    problems.

    Besides problems faced due to government

    policies Ajanta also faced severe problems like

    Capital requirements Cost disadvantages irrespective of size Economies of scale Product differentiation Access to distribution channels

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    COMPETITION AMONG EXISTING FIRMS

    In todays world, more than 75% of the companies face the competition and

    threats from existing companies. A competitor is

    a potential threat to the companys products.

    Like other companies Ajanta face competition

    from many other companies which manufacturing

    same products like candies and biscuits

    Normally Ajanta faces competition from the

    companies like SAMRAT,JANTAand many more

    companies producing substitute goods.

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    TRANSPOTATION AT AJANTA:-

    After the manufacturing process there is the packing process and packing is

    with the help of machine and employees. And the workers have different type

    of plastic bags as there is various flavor, and different types of wrappersaccording to the flavor of candies and lollipop.

    The candies are been wrapped in transferable plastic bag according to the

    different flavor and the packing is done by the worker and machine the minimum

    packing is of 250gms and maximum there is no limit as its done to the customer

    needs, and then cartoons packing is done according to the order.

    The lollipop are been wrapped and packed in plastic jars. These jars also vary

    according to the flavors of the lollipops, and the plastic jars are pack in

    cartoons the cartoons packing is done according to the customer need which will

    pack by the worker manually but the packing seal by the machine as machine

    contain plastic strips which automatically seal the box and box are transferred

    to warehouse and then is carried to the truck.

    The goods export in locally cities some of them is Bhiwandi, Dombavali, Nasik,

    Pune, Dadar, and Ghatkopar. The goods are export in SOUTH AFRICA with the

    help of agent. The transportation is done every day according to the order

    expect Friday as company remains close on Friday.

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    Conclusion

    Hence we can conclude that the main aim of making this project was

    to improve not only the premise part but also the realistic knowledgeby essentially visiting the manufacturing unit of AJANTA

    COMPANY.

    This object was achieved by all the members of our group.

    The time expend on achieving this objective proved really

    advantageous to us.

    We are grateful AJANTA COMPANY and to Mr. SANJAY for their

    kind co-operation in making the project prosperous.

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    BIBLIOGRAPHY

    WEB SITE :

    1. WWW.GOOGLE.COM2. WWW.WIKIPEDIA.COM3. WWW.BUSINESSBALLS.COM

    REFERANCE:1. NOTES GIVEN BY SNEHA MIRCHANDANI2. VIPUL PRAKASHAN TEXT BOOK OF STRATEGIC

    MANAGEMENT

    http://www.google.com/http://www.google.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.businessballs.com/http://www.businessballs.com/http://www.businessballs.com/http://www.wikipedia.com/http://www.google.com/
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    QUESTIONNAIRE:-

    1. In what manner you give discount to your customer.

    2. Who are your customers.

    3. Name of your suppliers.

    4. Is suppliers give you discount? If yes, than in what manner.

    5. Name of your competitors.

    6. Threats by competitors.

    7. What measures you take to reduce your threat.

    8. Do you have any substitute.

    9. what are your distribution channels.

    10. what is your mode of transport.

    11. Did supplier give any benefit to you?

    12. From where do you buy your raw materials.

    13. How is the progress of your company.

    14. What kind of changes you have made in past few years.

    15. strategy of your company.

    16. When you entered in the market which problems/threats you face at that

    time.

    17. What are the threats you have from the existing firm.

    18. If new industry enters in the market what are the problems you may have

    & what are the measures you take to reduce those threats.

    19. What will you do to improve your quality &reduce your cost.

    20. If government changes the policy will you affect that change into your

    business or not?