basic econobasic econometrics 5th edition (by damodar n. gujarati, and dawn c. porter) 5th edition...

7/26/2019 Basic EconoBasic Econometrics 5th Edition (by Damodar N. Gujarati, and Dawn C. Porter) 5th Edition (by Damodar…

http://slidepdf.com/reader/full/basic-econobasic-econometrics-5th-edition-by-damodar-n-gujarati-and-dawn 1/30

Bosch ltd



CHAPTER -1

INTRODUCTION

PROFILE OF THE COMPANY

Bosch group founded in 1886 in Germany as a workshop for precision mechanics and

electrical engineering by Robert Bosch group. The Bosch group today is the largest

automotive technology supplier in the world with a global group turnover of !." billion

#uros in the automotive technology$ industrial technology$ consumer goods$ and building

technology in the fiscal %&1&.

't has around "(& subsidiaries and associated with companies over (& countries and sales and

service partners roughly 1(& countries. There are %&&&& scientists$ engineers and technicians

engaged in R)*. +s a result Bosch applies for over %&&& patents each year. This places the

company at the top in the entire automotive industry.

Bosch ltd. 's a member of Bosch group$ Germany$ Bosch ltd. 's the flagship of the Bosch

group subsidiaries in 'ndia in 1,(1. The company is 'ndia-s largest auto component

manufacturer and also one of the largest 'ndo German companies in 'ndia. Bosch ltd.

pioneered the manufacturer of automotive spark plugs and diesel fuel in/ection e0uipment in

'ndia. Bosch is a leading supplier of technology and services in 'ndia$ and has a strong



presence in the country at numerous locations in diverse industry segmentsboth automotive

and non automotive.

Bosch imited has a strong nationwide service network which spans across 1&&& towns and

cities with over &&& authori2ed representations to ensure widespread availability of products

and services. The company is head0uartered in Bangalore with manufacturing facilities in

Bangalore 3+dugodi and bidadi4 and 5asik$ aipur and Goa.

'n 'ndia$ the Bosch Group operates through the following7

• Robert Bosch #ngineering and Business solutions td.7 Robert Bosch engineering

and business solutions ltd$ a 1&& subsidiary of Robert Bosch Gmb9. which is

presented in 'ndia has emerged as one of the largest Bosch development centres

outside Germany. 't provides end to end engineering and technology solutions for all

the business sectors of automotive technology$ industrial technology$ consumer goods

and building technology.

• Bosch Re:roth 'ndia td.7 Bosch Re:roth 'ndia td.$ established in 1,! in 'ndia$

serves customers through manufacturing facilities and service centres in +hmadabad

and Bangalore.

• Bosch ;hassis <ystems 'ndia td7 Bosch ;hassis systems 'ndia td.$ established in

1,8% as =alyani Brakes imited 'ndia$ is amongst the leading manufacturers of

brakes in the country. 't currently manufacturers a range of 9ydraulic brake systems

meeting the stringent 0uality norms of many leading 'ndian and 'nternational vehicle

manufacturers.

• Bosch #lectrical *rives private td.7 Bosch #lectrical *rives 'ndia >rivate td. 's a

/oint venture company. 't drives for various automotive applications such as window

lift drive$ wiper system$ engine cooling fans etc.



• Bosch +utomotive #lectronics 'ndia private td7 Bosch +utomotive #lectronics 'ndia

private td. 's a 1&& subsidiary of Bosch group and engaged in the manufacture and

sale of electronic devices and electronic control units. The company is based at

5agnathapura in Bangalore.

BOSCH VISION

;reating valuessharing values

+s a leading technology and services company$ company take advantage of Bosch global

opportunities for a strong and meaningful development. Bosch ambition is to enhance the

0uality of life with solutions that are both innovative and beneficial. ;ompany focuses on its

core competencies in automotive and industrial technologies as well as in products and

services for professional and private use.

Bosch strive for sustained economic success and a leading market position. #ntrepreneurial

freedom and financial independence allow Bosch actions to be guided by a long term

prospective. 'n the spirit of Bosch founder$ Bosch particularly demonstrates social andenvironment responsibility.

Bosch customers choose Bosch for its innovative strength and efficiency$ for Bosch reliability

and 0uality of work. Bosch organisational structures$ processes$ and leadership tools are clear

and effective$ and support the re0uirements of Bosch various businesses. Bosch acts

according to its principles.

BOSCH MISSION

Be?'= @Be better$ Be Bosch profit secures growth

?uality

'nnovation

;ustomer orientation

BeQIK -The ob/ective is to continuously improve all internal processes @ so that growthand economic success can be secured in long term.



Be Better-

;ontinuous improvement.

Better than its competitors.

Be Bosch-

Bosch offer outstanding products and services worldwide.

=eep up its promises to its customers.

Q!"#t$ %o"#c$

1. ;ustomer satisfaction7

The ob/ective in purchasing and logistics are geared towards satisfying customer

re0uirements and ensuring customer satisfaction. 'n implementing these ob/ectives$ they work

with all parties concerned$ across business divisions and in partnerships$ in order to ensure

the best combination of functions$ delivery and costs. The achievement of 0uality targets is a

prere0uisite.

%. <upplier development7

Aor the procurement of goods and services they need strong innovative suppliers with whom

they can interact in an open$ fair and long term working relationship. They actively support

their suppliers in continuously improving their e:pertise and respect them as independent

business.

". >rocess orientation and continues improvement7

;ore processes and structures within the supply ;hain are oriented towards the principles of

the B<;9 Business systems. They are committed to continuous improvement. To this end

they ensure short throughput times and strive for economy. The capabilities of the purchasing

and logistics processes are rendered transparent by a standardi2ed controlling system$

. *evelopment of human resources7



To achieve their aims in purchasing and logistics they consciously develop the employees in

the fields of entrepreneurial thinking$ leadership$ social and methodological competence$ as

well as intercultural skills.

(. Aairness and transparency7

They make purchasing decisions only on the basis of ob/ective and the comprehensible

criteria. The ob/ective is the total benefit to Bosch contributed by all parties involved 3total

cost4. 'n choice of suppliers and service providers$ and when implementing targets and

evaluating supplier and performance$ they take into account pricing$ logistic and 0ualitative

perspectives. They employ a unified approach for this process.

QUALITY PRINCIPLES&

• Goal of the organi2ation is to fully satisfy its customer-s e:pectations through its

0uality products and services.

• + 0uality and 0uality improvement is every associate-s responsibility and ultimate

goal from the board of directors to their apprentices.

• The directives$ processes$ systems and goals are based on re0uirements from

international standards$ consumer-s e:pectation$ knowledge and e:perience.

=nowledge and compliance with compliance with these directives and processes in

the foundation of its 0uality.

• ?uality means doing right in the beginning thus preventing failures in the end.

continues improvement for 0uality of processes lowers costs and improves

productivity.

• +voiding failures is more important that eliminating defects. Bosch systematically

methods and tools$ preventive 0uality assurance systematically$ learn from mistakes

and prevent their root causes without delays.

• ;ompanyCs suppliers contribute systematically to the 0uality of products and services.

Therefore suppliers have to live up to standards which the company adopts.



H'!( resorce %o"#c#es

Dedical 7

+nnual master health check up.

9ospitali2ation insurance.

Danipal hospital scheme.

Dedical reimbursement scheme.

9ouse related7

Aurniture guidelines.

Refundable house deposit.

DinorE asset maintenance.

Cor%or!te soc#!" res%o(s#)#"#t#es

Bosch 'ndia foundation$ a charitable trust uses &.( of profit after ta: towards health

care and education. +t all its manufacturing facilitiesF Bosch has provided /obs to

differently abled people in simple yet important role like packaging rewarding them

for their good work.

The entire canteen facility is installed with state of the art Bosch made solar panels$

which reduces its dependency on electricity thereby saving money and ma:imum use

of renewable energy.

ittle sisters ole aged home$ an orphanage has its food by provided by Bosch daily.

'ndustrial wastes which generally termed ass ha2ards are recycled in their recycling plant and

used again instead of dumping them which can be 0uiet harmful for the environment. Bosch

V!"es



• Auture and Result Aocus 'n order to ensure dynamic development of the company

and to guarantee long term corporate success$ they participate in shaping the changes

in markets and technologies. By doing so$ they provide their customers with

innovative solutions and provide their associates with attractive /obs. Hith thedividends generated$ the Robert Bosch Aoundation supports charitable activities.

• Responsibility They accept that their actions would accord with the interests of

society. +bove all they place their products and services in the interests of the safety

of people$ the economic use of resources and environmental sustainability.

• 'nitiative and *etermination They act on their own initiative$ with an entrepreneurial

but accountable spirit and demonstrate determination in pursuing their goals.

• penness and trust They keep their associates$ business partners and investors

informed regarding the developments within the company. This is a best basis tocreate a trustful relationship.

• Aairness They view mutual fairness as a condition of their corporate success while

dealing with each other as well as business partners.

• Reliability$ ;redibility and egality They promise only what they can deliver$ accept

agreements as binding$ and respect and observe the law in all their business

transactions.

• ;ultural diversity they are aware of our companies regional and cultural origins and

at the same time regard diversity as an asset$ as well as precondition of our global

success.

Bosch *#+e"#(es ,or Le!+ersh#%

• +im for success >rofit$ growth$ 0uality$ customer and process orientation these are

the key metrics with which our corporate ob/ectives are aligned. Regularly

communicate these ob/ectives to your associates. Dake it clear what each individual

can contribute to achieve them.

• *emonstrate initiative Together with your associates$ generate new ideas and

strategies that make our company stronger. #ncourage them to embrace change and

take initiative on their own and support them in the implementation.

• *emonstrate courage <tand by your associates$ make clear decisions and

demonstrate determination in implementing them. Be a role model and e:emplify the

Bosch values.



• =eep your associates informed f course you give your associates factual

information. They should also know the business conte:t and background they are an

important prere0uisite for identification with the company.

• ead by goals *elegate tasks and give your associates the authority to perform them.

+gree on clear goals and allow sufficient space so that creativity$ selfconfidence and

accountability can be developed. This enables you to lead your associates to success.

• Give feedback to your associates Recognise the strengths of your associates and help

them to utilise and further develop them. Take a close look7 praise your people where

praise is due$ but also give fair and constructive criticism. Distakes happen on both

sides. Be 0uick and open in addressing them with the associate.

• Trust your associates They are capable and willing to perform. 9ave the courage to

manage with limited control. Iour trust will create the entrepreneurial momentum that

all of us want.

• <hift your perspective >ut yourself in your associate-s position and also look at

things from their point of view. 9ow would you react to the decisions you have taken

as their supervisor and what rational would you e:pect to hearJ

• <hape the future together Iour associates can and do contribute to our company.

'ntegrate them into the preparation of decisions and capitalise on the ideas and the

potential that the cultural diversity of our company offers. Hork together with your

associates to transform mere interfaces into connection points and barriers into

opportunities.

• *evelop your associates +dvise and systematically support your associates in their

professional development. <upport them if there are suitable opportunities for$ or if they desire$ further development somewhere else in the company.



Str!te#c *o!"s !(+ O).ect#/es&

1. Pro/#+e E'%"o$!)#"#t$ Tr!#(#( !(+ Tech(o-So"t#o(s throh P!rt(ers& Kocational

training aims at connecting individuals and societies to the economic engines$ while technological

solutions aim at robust affordable solutions that work in the community conte:tF eg7 telemedicine or

<olar >ower for remote villages.

The foundation works through partners who may provide resources to enable this work. #g7 by

funding providers of marketable vocational trainings and entrepreneurs who create machines that

could provide improvement in the 0uality of life for disadvantaged communities.

%. He"% co''(#t#es st!(+ o( the#r o0( ,eet& The long term ob/ective of the foundationLs

work is to make disadvantaged communities selfsustaining. The foundation does this by mobili2ing$

consolidating and redeploying resources. 9ence pro/ects are evaluated for their long term impact.

". E'%o0er #(+#/#+!"s to cre!te !( #'%!ct& The foundation aims to identify and work with

individuals to create an impact in society. The foundation will develop a model of empowering

individuals to be change agents.

•

PRODUCTS AND SERVICES



The Bosch Group is a leading supplier of technology and services$ and is divided into three business

sectors of$

• +utomotive Technology

14 *iesel system

%4 Gasoline systems

"4 +utomotive aftermarket

4 <tarter Dotors and Generators

• 'ndustrial Technology

14 <pecial purpose machines

%4 >ackaging Technology

"4 <olar energy division

• ;onsumers goods and Building technology

14 >ower Tools

%4 <ecurity systems

"4 Thermo Technology

The Bosch Group-s products and services and designed to improve the 0uality of life by providing

solutions which are both innovative and beneficial.

Ato'ot#/e Tech(o"o$

D#ese" S$ste's

Bosch in 'ndia is committed to develop innovative diesel fuel in/ection products and provides

services to meet the stringent emission norms of the future. The inline fuel in/ection pumps of Bosch

could cater to the full spectrum of diesel engines till B<''. They are used in a range of engines starting

from small fi:ed installations to large earth movers. By increasing pressure capability$ improving

timing control along with combustion optimi2ation$ the inline pump is able to meet the ne:t level of

emission norms of B<''' in ma/or parts of the country.

*!so"#(e s$ste's



The gasoline systems division of the company offers a wide product portfolio that include as

#lectronic control units$ <ensors$ Auel in/ection$ Auel supply module$ air management products like

+>D$ electronic throttle bodies etcM.for building fuel efficient and low ;% emissions engine

management systems for passenger cars and small engines including two wheelers. ther areas under

focus are system engineering$ component engineering$ calibration and local manufacturing in order to

cater the 'ndian market needs.

Ato'ot#/e A,ter'!ret

Bosch +utomotive aftermarket division is responsible for the supply$ sales and distribution of

automotive parts of vehicle servicingF diagnostics e0uipment for workshops 3i.e. testing e0uipment4$

technical information$ training and consultingF and technical aftersales service for Bosch automotive

products and systems.

•

St!rter 'otors !(+ e(er!tors

The starter generator division developed the startstop system$ which is cost effective answer to the

increasing fuel prices$ ever stricter emission limits$ and the need to reduce co % emissions. The system



switches the engine off when the vehicle is stationary. <o$ whether you are waiting for the traffic

signal to turn green struck in a traffic /am$ you can save energy.

Ato'ot#/e E"ectro(#cs

The +utomotive electronics division develops produces and sells microelectronic products for

automotive applications. The core competencies are systems integration and application engineering

for the vehicle.

C!r M"t#'e+#!

;ar multimedia division develops smart solutions for the integration of entertainment$ navigation$telematics and driver assistance functions. Bosch concentrates on the #D business with a special

focus on automotive navigation and infotainment as well as instrumentation systems for cars$ trucks

and coaches.

I(+str#!" Tech(o"o$

S%ec#!" %r%ose '!ch#(es



Bosch has an e:clusive and established division for manufacturing special purpose machines 3<>Ds4

and high precision tooling. <tarted in 1,!&$ this division has grown in si2e and stature to emerge as

the front runner in the industry.

P!c!#( Tech(o"o$

Bosch packaging technology produces cost effective$ high speed$ energyefficient and

environmentally sustainable packaging machines for the 'ndian market. The eco friendly design of

machines help in cut waste$ thereby reducing packaging material.

Co(s'er oo+s !(+ B#"+#( Tech(o"o$

Po0er Too"s

Bosch power tools are designed to save energy$ yet deliver highest levels of performance. These tools

are compact and light in weight$ run on environmentfriendly Bosch lithium ion technology and cater

to diverse industrial sectors like automotive$ construction$ manufacturing and homeinteriors$ offering

best solutions to industrial and engineering application like screw driving$ drilling$ cutting grinding$

polishing$ sanding etc. There is a



Hide range of "(& N tools including cordless screw driving$ drilling machines$ impact wrenches$

rotary hammers$ surveying e0uipments and range finders. Recent inclusion to the range is gardening

and hobby tools for better and healthy life style. Bosch Tools are fitting with batteries having longer

lifetime and intelligent recharging capability for 0uick charging$ therefore making economical use of

precious resource of energy.

Secr#t$ Tech(o"o$

Bosch security system is an innovative$ global provider of high0uality security$ safety and

communication products and solutions. 't is one of the key players in the industry both globally and in

the 'ndian market. He offer a complete range of speciali2ed stateoftheart products and systems for

standard or customi2ed. +pplication and pro/ects$ which enables us to offer our customers$ true one

stop solutions.

The Bosch *ro% co(tr#es co/ere+ 0or"+0#+e #(c"+es&

+ustralia$ +ustria$ Belgium$ bra2il$ ;anada$ china$ ;2ech Republic$ *enmark$ Ainland$

Arance$ Germany$ 9ungary$ 'ndia$ 'taly$ apan$ =orea$ De:ico$ 5etherlands$ 5orway$ >eru$

>ortugal$ Romania$ Russian Aederation$ <ingapore$ <lovakia$ <lovenia $ south +frica$

<pain $<weden$ <wit2erland $Thailand $ Turkey$ Okraine$ O=$ O<+$ Kene2uela$ Kietnam$

middle @east $ +frica 3O+#$#GI>T$ =#5I+4$ 5eighbouring countries 3<ri anka$

Bangladesh4 south #ast +sia 3>hilippines$ Thailand$ 'ndonesia.4

Co'%et#tors ,or Bosch&-

=ar Dobiles td.

Triton Kalves td.

Rane #ngine Kalve

Aederal Dogul Goet2e 3'ndia4

' > Rings td.

<undram Aasteners td.

Talbors +utomotive ;omponents td.

Ocal Auel <ystems td.

Benco >roducts 3'ndia4 td.



+utoline 'ndustries td.

ohnson ;ontrols$ 'nc.

*enso ;orporation.

TRH +utomotive 9oldings ;orp.

*elphi +utomotive >lc.

Kisteon ;orporation.

#aton ;orporation >lc.

;9+>T#R%

AO5;T'5+ +R#+< A T9# ;D>+5I.

F(ct#o(!" Are!s O, The Or!(#s!t#o(



F#(!(ce +e%!rt'e(t

Co(tro""#( F#(!(ce A(+ Acco(ts De%!rt'e(t2CFA3

The ;A+ department looks after the control of finance and accounting functions of Bangalore

>lant 3Ban >4 and 5aganathapura >lant 35h >4 of Bosch td. ;A+ comprises of seven sub

departments whose functions are as follows7

CFA 1

a4 >lant accounts consolidation .

c4 ;ash and bank payments.

d4 +ssets accounting and physical verification of assets.

e4 +udit coordination and statutory reporting.

CFA 4

a4 'nward bills and controls.

b4 +udit schedules and coordination.

c4 ;oordination for payment of Aoreign <ervice bills.

CFA 5

a4 ;ost controlling for diesel system products.

b4 ;ost estimation and guidance cost.

c4 'nvestment appraisal and monitoring.

d4 D'< and monitoring.

e4 verheads accounting.

CFA 6

a4 ;ontrolling of statutory payments and returns.

b4 <ervice ta: and K+T related issues.



CFA 7

a4 >ayroll administration.

b4 <tatutory payments and returns for payroll.

c4 >ension Aund Trust activities.

CFA 8

a4 Daterial accounting and inventory control.

b4 'nventory data management for business plans.

c4 Donthly reporting of various financial activities.

d4 ;oordination with e:ternal agency for perpetual inventory verification.

CFA 9

a4 +nnual stock verification and audit.

b4 Daterial cost trend monitoring.

Prch!se De%!rt'e(t

The purchase activities at B<;9 are carried out by two departments namely7

14 ;orporate logistics and purchase department.

%4 *epartment for >lanning and purchase of indirect materials 3>O'4.

The ma/or material fields covered are steel$ castings$ forging$ turned and machine powers$

sintered components$ fasteners$ springs$ bearings and assemblies$ subassemblies$ packing

materials$ logistic services and capital goods.



't is the endeavour of the highly motivated technical and commercial component associates of

the purchasing department to establish suppliers of world class 0uality at competitive price

and optimum delivery performance.

Cor%or!te Lo#st#cs A(+ Prch!se De%!rt'e(t

;orporate logistics and purchase department fulfils and co ordinates the re0uirements by

bundling and sourcing common materials such as raw materials$ standard components$ capital

goods etc across all Bosch locations.

;> also finalises the logistics contracts and deals with purchase activity of indirect materials

and management of stores for indirect material.

Responsibilities f ;> is to look after the following7

a4 Raw materials.

b4 ogistics contracts and custom clearance.

c4 ;apital goods and e0uipments.

d4 Trade goods.

Prch!s#( I(+#rect M!ter#!" De%!rt'e(t 2PUI3

't deals with the purchase and management of stores of indirect material of Bosch such as

cutting tools$ machine spares$ oil and lubricants etc. This department is further sub divided

into various other departments which deal with the following functions7

a4>O' 1 and >O' % deals with planning and purchase of indirect materials$ inventory control$

procurement$ vendor development$ price negotiation and stores management of indirect

materials.

b4 >O' " deals with vendor establishment and price finalisation of the products.

c4 >O' deals in stores and tool crib management wherein the inventory is managed

according to the +B; analysis 3where + fast moving items$ B slow moving items$ ; very

slow moving items4. 9ere$ the good preservation is done by dividing the items broadly into

Ltool storesL and Lcommon storesL.



Pro+ct#o( De%!rt'e(t

Aor BoschF material innovation$ new process and production techni0ues and interpretation

mythologies are highly relevant for the future as they pave the way for innovative and cost

effective future products. ;ustomised functional and structural materials also play a key role

in this connection. Bosch has manufacturing plants located in Bangalore$ 5asik$ aipur$

5aganthapura. *ue to customer re0uirement and capacity problems$ employees work in two

or three shifts. >roduction targets are reviewed on weekly basis and production output is

monitored on hourly basis. The inventory is classified into various categories such as Lraw

materialsL$ Lwork in progressL$ Lfinished goodsL$ Lgoods in transit to customersL and Lgoods in

stores and warehousesL and is maintained for a minimum of " days to a ma:imum of ( days

to meet the re0uirements of manufacturing department.

Pro+ct#o( L!$ot Des#(

a4 Bosch is product oriented.

b4 't is designed according to the product movement.

Mer#ts O, The L!$ot

a4 5o confusion.

b4 #ach employee is assigned responsibility and authority.

c4 9ighly decentralised in structure.

De'er#ts O, The L!$ot

a4 't involves the duplication of the same machine.

b4 't is product based.



S!"es A(+ M!ret#( De%!rt'e(t

The <ales and Darketing department of Bosch is headed by its L<ales and +utomotive

+ftermarket *ivisionL. <ales and +utomotive +ftermarket *ivision has the following sub

departments7

a4 <ales$ marketing and advertising department.

b4 ;ustomer Business *evelopment.

c4 <ales planning and *istribution.

d4 <ales #:port.

e4 ;orporate advertising and publicity.

f4 <ales <ervices.

g4 <ales houses administration.

The marketing mi: of Bosch assists it to satisfy the needs of the urban middle class niche

market by understanding it through research. Bosch has four sales houses in four metros.

H'!( Resorce De%!rt'e(t

The 9uman Resource department of Bosch is responsible for the management of the

personnel of the organisation. +s it is very important for any manufacturing organisation to

maintain a healthy relationship between the management and the labour union$ the 9uman

Resource department of Bosch tries to bridge the gap between them by looking into the

labour welfare issues thereby ensuring a smooth work environment for every employee.

The ma/or functions performed by the 9R department of Bosch are as follows7F

1. 'ndustrial Relations and +dministration.

%. Hage <ettlement Datters.

". Training and *evelopment.

. #stablishment Datters ike 'ncrements$ >romotions$ Transfers and <eparations.



(.>rovision f Dedical and ;anteen Aacilities.

6. <ecurity and Kigilance.

!. >lant ;ommunication.

;9+>T#R"

<HT +5I<'< A T9# RG+5'P+T'5

S:OT ANALYSIS

Stre(th

<uccessful customer satisfaction.



>opularity of brand and product across globe.

Better infrastructure facilities provided.

Hith good employee morale.

Rapid improvement in products and their 0uality.

9igh 0uality products.

Better service provider.

:e!(ess

'neffective allocation of e:perienced and skilled employees on right position.

ess importance is given for marketing of products.

O%%ort(#t#es

• ;ontinues innovation of products.

• >otential to grow in power tools$ packaging and security systems.

• 't can produce more economical and eco friendly products.

Thre!ts

• 'ncrease in competition.

• Too many substitute products available in the market.

• Brand image being diluted due to entering into many products.

• Growing$ bargaining power of companies.

• ;ontinues cost pressure.



KEY RESULT AREAS

Csto'er S!t#s,!ct#o(

ver a period of years$ Lcustomer satisfactionL has been the number one priority of

Bosch$ as Bosch looks at it as a gateway to earn and maintain customer loyalty. 't is

also a key indicator of the companyLs success that keeps it ahead of its competitors

and helps it to increase its customer lifetime value thereby deepening the relationships

with its customers. + key contributor to this is the Lafter sales servicesL and the

Lcustomer feedbacksL that help it to continuously optimise its services and to ac0uire

and retain the new customers.

Assoc#!te S!t#s,!ct#o(

+ good work climate is essential to good profitability. There are often conflicts which

create obstacles to a productive work climate. The company thus maintains an inde:

called the Lassociate satisfaction inde:L. The associate satisfaction inde: helps Bosch

to understand as to where and why these obstacles e:ist$ allowing the company to

implement the right measures in the right places. The inde: also helps the company to

compare the different teams within the organisation$ so that the employees will be

inspired to address issues in their team in order to achieve a productive$ efficient and a

good working climate within their own teams$ thereby removing the obstacles to

profitability throughout the company.

Soc#et!" Perce%t#o(

Businesses shape the perception of the public in order to get the desired behaviour and

purchase patterns from their customers. They usually do this by effectively marketing

their products thereby establishing a good brand image and by fulfilling their

obligations towards the society. Bosch$ also believes in creating and maintaining a

good perception about itself among the people of the society and thus thrives to

effectively and accountably discharge its responsibilities towards the environment and

the society.

Pro+ct M!(!e'e(t

The Lproduct managementL is an important key result area of Bosch that acts as the

hub of product and market information for sales$ marketing$ development$ support$



financial management and other parts of the company. Hithout this hub$ each

department would have to develop its own perception of market reality$ product

capabilities and product portfolio direction. >roduct management$ thus helps to keep

the company to stay focused thereby attaining ma:imised revenue at a minimised

cost.

O%er!t#o(!" Cost Co(tro"

L;ost controlL as a key result area that helps Bosch to e:ploit a number of ancillary

benefits. 't lowers the companyLs overall e:penses by limiting the amount that is spent

on unproductive activities thereby creating an atmosphere of thrift and providing

better and more economical ways of completing each operation. The operational cost

control is mainly implemented in the purchase of materials and in the process of

manufacturing as these are the two most important functions performed by the

organisation. ;ost control is therefore an important tool for profitplanning and

ma:imisation.

CHAPTER-6

OR*ANI;ATIONAL PERFORMANCE

F#(!(c#!" H#h"#hts&

Pro,#t A(+ Loss Acco(t O, Bosch

2M!rch 4<173

P!rt#c"!rs A'o(t2I( Crores3

I(co'e

Revenue Arom perations 11,1.

ther perating Revenues 1.1

ther 'ncome (6(."

Tot!" I(co'e 1487<=>

E?%e(ses

;ost f Daterial ;onsumed "8!1.,

>urchase f <tock 'n Trade %6(%

;hanges 'n 'nventories 66.,

#mployee Benefit #:penses 166".1

Ainance ;osts 1."*epreciation +nd +mortisation (8.



ther #:penses 1,8.1

Tot!" E?%e(ses 1<888=@

Pro,#t Be,ore E?ce%t#o(!"

E?tr!or+#(!r$ Ite's A(+ T!? 1@>5=@

#:ceptional 'tems %8Pro,#t Be,ore T!? 1@77=@

Total Ta: #:penses 618.%

Pro,#t A,ter T!? A(+ Be,ore

E?tr!or+#(!r$ Ite's 1559=9

Pro,#t For The Per#o+ 1559=9

B!"!(ce Sheet O, Bosch

2M!rch 4<173

P!rt#c"!rs A'o(t2I( Crores3

E#t#es A(+ L#!)#"#t#es

Sh!reho"+ers F(+s

#0uity <hare ;apital "1.

Reserves +nd <urpluses !"1(.6

No(-Crre(t L#!)#"#t#es

ong Term Borrowings (.%

ther ong Term iabilities 8."

ong Term >rovisions "&.%

Crre(t L#!)#"#t#es

<hort Term Borrowings 1."

Trade >ayables 1%16.(

ther ;urrent iabilities 6."

<hort Term >rovisions 88!Tot!" 1<65<=>

Assets

No(-Crre(t Assets

Tangible +ssets ,6!.(

'ntangible +ssets &.1

;apitalHork'n >rogress %!6

5on;urrent 'nvestments %6%.6

*eferred Ta: +ssets 1!.%

ong Term oans +nd +dvances %18.,Crre(t Assets



;urrent 'nvestments %6(

'nventories 1%!6.%

Trade Receivables 118!.!

;ash +nd ;ash #0uivalents 18,6

<hort Term oans +nd +dvances 111.!ther ;urrent +ssets 1(,.,

Tot!" 1<65<=>

CHAPTER-7

CONCLUSION

Ftre %"!(s o, Bosch

Bosch showcases its pioneering future ready for competence. Bosch significantly dominates

the e:hibition with an impressive stall spanning nearly 1&&&s0 meters the largest among the participating auto component manufacturers. <howcasing some of their finest technologies.

Bosch pavilion at the auto e:po displays some of the latest technologies and product covering

diesel and gasoline systemsF chassis and brakes systemsF latest in blaupunkt car multimediaF

+utomotive accessories$ diagnostics and Bosch car service.

To comply with strict emissions standards in 'ndia$ which are the following the lead set by

#uropeF Bosch offers both efficient gasoline in/ection systems and advanced common rail

systems. 'ncreasing volumes are also to be seen in all the other products Bosch manufacturers



in 'ndia. +longside environmental protection$ accident prevention is an urgent priority on

'ndian roads. To satisfy this need$ Bosch is promoting advanced braking system in 'ndia.

Bosch engineers around the world are working on new technologies for low price vehicles.

+nnual sales of the car grow by si: percent worldwide and thirteen percent in 'ndia. Aor

Bosch the development focus here is costefficient management systems for gasoline and

diesel engines$ but also on alternators and brakes. Bosch CKalue Dotronic- is one e:ample. 'n

this new management platform for gasoline engines$ intelligent software is providing

ma:imum functionality at minimum cost.

*ue to rapid growth of automotive production in 'ndia$ which is likely to double its current

units$ a great challenge is posed on 'ndia. Bosch response to 'ndia-s strong economic growthand increasing motori2ation is to e:pand local development and manufacturing. +part from

e:pansion of rail diesel production$ investment will be made in manufacturing of gasoline

component systems.

I(ter(sh#% %roress

The company which ' worked for my internship is B<;9 ltd. ' was assigned in 9R

department as trainee. Dy /ob was to deal with the employees files. He were si:

trainees in a team and the team was further subdivided into three smaller groups

consisting of two members in a group. He have been assigned to audit employees

documents 3employee-s 0ualification certificates and the nomination forms like *RA$

G>+'$ ';$ gratuity forms etc.4 There were around %%%8 employee files was given to

us to audit. 't was a wonderful e:perience. He achieved our target of %%%8 files /ust in

a week and also got appreciation from 9R 3trainees guide4. ' also learned about *RA$

G>+' and '; benefits given to the B<;9 employees. +part from this we were

asked to sort the documents and reports 3like clearance certificate$ transfer letters etc4

according to the employee number.



' also got guidance from my 9R i.e. what are the formalities to be done while an

employee takes #arly Koluntary Retirement 3#KR4. ' helped few employees who took

#KR$ in fulfilling the formalities like filling the nomination forms and e:plaining the

procedures etc. ' also personally reminded each retiring employee about their

Retirement Training >rogramme which was arranged by the management of the

company.

' also visited the manufacturing unitF ' got a brief e:planation from a plant guide. 9e

e:plained how the production process is done. <tarting from inputs storage 3raw

materials stock4 everything was systemised and standardised. #ach product is packed

only after the proper testing and inspection. 't was a wonderful industrial visit$ the

plant consisted of different departments like 'nput storage$ assembly unit$ calibration$

packaging unit etc$ and the machineries which is used for production was high 0uality

machines. +fter Dy visit to the manufacturing unit$ my guide gave a brief orientation

about B<;9 3introduction$ vision and mission$ policies and procedures of the

organisation4.

' assisted my guide in preparing the increment report of the employees which is

re0uired for auditing. By this ' learned on what base the increments are given in

B<;9 to its employees$ all the increments are given according to the settlement

book and it is revised every year. The increment is also given based on the grade of

the employee 3grade % is the low and grade 1& is the highest4 employeeCs

performance$ attendance$ e:perience is also taken into note while giving the

increment. This year$ the ;ompany gave gift coupons of RsE1&&&& for its employees

as a bonus$ so ' assisted my guide in making record of the gift coupons and divided

the coupons for different departments.

' learned many things as ' was under direct supervision of my 9R$ even though it was

0uiet difficult /ob$ ' got wonderful e:perience and ' would like to thank my guide and

the company for giving me such good opportunity to learn.

By7

*ivya.<

(th B.com C+-



;hrist Oniversity

basic econobasic econometrics 5th edition (by damodar n. gujarati, and dawn c. porter) 5th edition...

Documents