Download - Abu Project Part -1
INDUSTRY PROFILE:
HISTORY OF FOOTWEAR:
Spanish cave drawings from more than 15000 years ago show humans with animal
skins or furs wrapped around their feet. The body of a well preserved “ice-man” nearly 5000
years old wears leather foot stuffed with straw. Shoes, in some form or another, have been
around for a very long time. The evolution of foot coverings, from the sandal to present-day
athletic shoes that are marvels of engineering, continues even today as we find new materials
with which to cover our feet.
We are, in fact still wearing sandals- the oldest crafted foot covering known to us.
Moccasins are still readily available in the form of the loafer. In fact, many of the shoes we
wear today can be traced back to another era. The Cuban heel may have been named for the
dance craze of the 1920s, but the shape can be seen long before that time. Soles, which are
one of the most recognizable features of footwear in the 1970s and 1990s, were handed down
to us from 16th century choppiness. Then, high soles were a necessity to keep the feet off of
the dirty streets. Today they are worn strictly for fashion’s sake.
If one can deduce that basic shoe shapes have evolved only so much, it is necessary to
discover why this has happened. It is surely not due to a lack of imagination- the colors and
materials of shoes today demonstrate that. Looking at shoes from different parts of the world,
one can see undeniable similarities. While the venetians were wearing the choppiness, the
Japanese balanced on high-soled wooden shoes called get. Though the shape is slightly
different, the idea remains the same. The venetians had no contacts with the Japanese, so it is
not a case of imitation. Even the mystical Chinese practice of foot binding has been copied in
our culture. Some European women and men of the past bound their feet with tape and
squashed them into too-tight shoes. In fact, a survey from the early 1990s reported that 88%
of American wear shoes that are too small!
As one examines footwear history, both in the west and in other parts of the world, the
similarities are apparent. Though the shoemakers of the past never would have thought to
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pair a sandal with a platform sole, our shoe fashions of today are, for the most part,
modernized adaptations of past styles.
PERFORMANCE OF INDIAN FOOTWEAR INDUSTRY
The foot wear industry is a significant segment of the leather industry in India. India
ranks second among the footwear producing countries next to the China.
In 1999, the global import of footwear in terms of value was around US$43278 million
accounting a share of 63.42% in the total global import of leather and leather products out of
this import of leather footwear alone accounted for us$26379 million and non leather foot
wear US$16899million.
India’s exports of leather footwear touched US$331 million in 1999-2000, recording an
increase of 3.29% over the preceding year. India thus holds a share of 1.25% in the global
import of leather footwear. The major markets were the UK, USA, France, Italy, Russia, etc.
In 1999-2000, export of leather footwear from India contributes 21% share of its total
export of leather and its products. Nearly 33 million pairs of various types of leather footwear
were exported during the year. It includes dress shoes, casuals, sport shoes, etc.
INDIAN FOOTWEAR COMPONENTS INDUSTRY
The footwear component industry is a segment of leather industry in India. The
footwear components which are exported from India are leather shoe upper and leather unit
soles. The estimated annual production capacity of leather shoe upper’s is 112 million pairs.
The major production centers are Chennai, Ranipet, Agra, Tamilnadu, etc.
The component industry has enormous opportunities for growth to cater to increasing
production of footwear of various type, both for export and domestic market.
Nearly 75% of total export of footwear component is from the southern region followed
by northern region with a share of 13%.
Nearly 83% of the India’s export of footwear component is from the UK, Germany,
Italy, USA, France and Portugal.
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Company profile.
a. Background of the company:
Name of the company : VKC GROUP OF COMPANY
Constitution : small scale industry
Date of establishment : 1984
Sales head quarters : Calicut
Incorporation : 1984
Contacts phone no : 0495-2442225
Authorized capital : Rs.40 lakh
Land and building : 4.5 acres and 1.75 acres
Financial year turnover : Rs.700 million
“VKC group of companies are the leading footwear manufacture especially in southern
region of India. The group established on (August17) 1984 with a nominal capital and few
employees. In 1984 the founder of the group Mr. V.K.C. Mammed Koya started a Hawai Sheet
manufacturing unit with his two brothers. Later on Hawai straps were also inducted to the
production line and in 1986 VKC group launched the first product with its own brand name in
the market viz. VKC Hawai with an initial production of 600 pairs per day. By 1989 the
production increased to 5000 pairs a day and by 1996 it jumped to 17000 pairs.
In between the founder initiated the floating of the first RPVC footwear manufacturing
unit in the Malabar Area of Kerala state with few of his friends. This product also got very good
acceptance in the market. The success of the first unit and the RPVC unit gave a signal to the
business community and the vast potential was seen by the various industrialists. This resulted in
a rapid change in the footwear industry itself. Within a few years the number of Rubber and
RPVC unit grew to more than 80 in this area.
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In 1994 the group ventured the first unit in Kerala to manufacture footwear from virgin
PVC. This resulted in a big change and the multinational brands felt competitions from the local
brands. In 1998 the group started the first Micro Cellular PVC footwear in Kerala with imported
plant and machinery. “Quality at low price” made the VKC groups products popular in the
market day by day. It also expanded its market to other southern states.
In 2001 the group started the first Air Injected PVC DIP footwear manufacturing unit
in the South India. In 2003 the group ventured the first Injected EVA manufacturing unit in
South –Central India. In 2006 the group started backward integration to produce EVA compound
for Injection and started the first EVA compounding plant in the South –Central India. The unit
went in 2007 the group started manufacturing of PU DIP footwear.
During this period new bloods with technical, commercial and practical knowledge
were inducted and now the group consists of 20 working Directors and 60 share holders spread
over 19 various units. And have annual group turnover of Rs.700 million. More than 1000
employees are working in these units.
The company had achieved a prominent position in the footwear market of India. The
main markets, which are concentrated by the company, are Kerala, Tamilnadu and
Karnataka.The good quality and variety in models of VKC products help the companies to face
the market competition. The company has been able to maintain the quality of the products by
adopting foreign technologies. The group is now looking for further avenues in the field of
footwear to stretch their hands.
The Head Quarter of VKC group is in CALICUT .And the main plants of VKC group
of companies are situated in Kerala and Tamilnadu. The following are the associate companies
of VKC group.
1. M/s. VEEKESY RUBBER INDUSTRIES PVT.LTD.
2. M/s. VEEKESY ELASTOMERS PVT.LTD.
3. M/s. VEEKESY POLYMERS PVT.LTD.
4. M/s. SANDLON TECHNOLOGIES PVT.LTD.
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5. M/s. FORTUNE ELASTOMERS PVT.LTD.
6. M/s. CALTECH POLYMERS PVT.LTD.
7. M/s. EMERALD PLASTOMERS PVT.LTD
8. M/s. SLIPONS INDIA PVT.LTD
9. M/s. DIADORA SHOES PVTLTD.
10. M/s. DIMESCO FOOTCARE INDIA PVT LTD.
11. M/s. VEEKESY PLASTOMERS (INDIA) PVT.LTD.
12. M/s. KOVAI FOOTWEARS PVT.LTD.
13. M/s. FERRARI SHOES (INDIA) PVT.LTD
14. M/s. VEEKESY FOOTCARE (INDIA) PVT. LTD
15. M/s. FERRERO VINYL TECHNOLOGIES PVT.LTD
16. M/s. MORBIDO VINYL PVT.LTD.
17. M/s. SMARTAK FOOTCARE PVT. LTD.
18. M/s. VEEKESY SANDALS (INDIA) PVT. LTD.
VEEKESY RUBBER INDUSTRY PVT.LTD
Veekesy rubber industry pvt ltd is the registered private limited
company situated at Kolathara in Kozhikode district. The objective of the company
is to manufacture the high quality footwear. It got its certificate of registration on
1-1-. 1984 The installed production capacity at the initial period is 21, 60, 000 pairs.
All affairs and day-to-day business administration of the firm is vested
in the hands of Boards of Director. They are in charge of various activities like
Production, Finance & Marketing. The board is assisted by qualified administrative
staffs.
Veekesy rubber industry private limited is a leading rubber
manufacturer in south India. The company’s mission is to maintain and achieve
customer satisfaction through providing quality products at reasonable price. In
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order to satisfy customer needs first the company is providing footwear which offers
better style, comfort, elegance, finish, colors and durability.
The product “VKC” has a high brand value in the minds of the
peoples of Kerala because of the quality and the affordable price of the product. The
management gives high priority to the quality of the product. The company assures
the quality of the product through the continuous quality checking in each and every
stages of the production process.
Veekesy rubber industry private limited synonymous with quality
footwear is today busy stepping from a splendid present into a glorious future, it is
energetically in the move to scale never heights in footwear designing and
manufacturing.
a. Nature of business The business carried by VKC is production of footwear. VKC mainly manufacturing
high quality footwear as per the requirement of customers. The company faces many
competitors for the kind of manufacturing. “Consistent quality at affordable price” made
the VKC group products popular in the market day by day. The success in Kerala market
gave morale boost to the group to market their product in the other southern states.
b. Vision, mission and quality policy
Mission:
To achieve international levels of excellence in technology and quality.
To maintain and achive customer satisfaction through providing quality
products at reasonable price.
To continuously grow in our business and became a significant player in the
world market.
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Quality policy:
In order to satisfy customer needs first the company is providing footwear which offer
better style, comfort, elegance, finish, colors and durability. Quality performance demonstrated is
the result of optimization of design, effective process control in manufacturing together with
testing and approval process in the environment of Quality management system.
Product profile:
VKC Rubber industry pvt.ltd producing high quality plastic footwear from 100% virgin
rubbers. The company’s VKC Rubber industry pvt.ltd is producing high quality plastic footwear
from quality plastic footwear from 100% virgin micro cellular rubbers. The company’s
manufacturing facilities includes modern equipment and machineries imported from Taiwan,
first of its kind in south including rotary injection modeling machines for improved product
quality. The company has to face stiff competition as there is lots of plastic footwear
manufacturing in Kerala.
Area of operation:
Veekesy Rubber industry pvt ltd has operating the business in south India and it has a
long tradition of maintaining the highest quality standards, right from the selection of raw
materials to processing and packaging of the end product
Ownership pattern:Veekesy Rubber industry pvt ltd is a private limited company.
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Competitors’ information:
Paragon Rubber Industries BANGALORE, India Haritha Hawai Kerala, India Odessey rubber industries, kerala Hawalker rubber industries, kerala Witco India ltd kerala,
Infrastructural facilities
a. Security checks:
Any material official/otherwise that is being brought in taken must have appropriate
documentation. Regular security checks are conducted to prevent unauthorized material leaving
entering the organization. Employees required to leave the factory on official/personal work
during working hours are to be submit an authorized gate pass to the security.
b. Medical facilities:
The medical centre is staffed by a resident Doctor and trained attendants and
supported by efficient Ambulance service.
C.Canteen Facilities
Vkc has got a good canteen facility for the employees at project area also.
Achievement/ award
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Work flow mode:
Process flow diagram for manufacturing of Hawai sheets, chappals and straps.
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Raw Materials
Mixing with Chemicals in mixing mill
Keep for Maturation
Mixing in mixing mill with blowing agent & Vulcanizing Agent
Vulcanization in Hydraulic Press
Hawai sheets & straps
Cutting & Drilling
Assembling & Packing
Hawai Sheets Hawai Chappals Hawai Straps
Future growth and prospects:
To attain market leadership.
Introduction of new trade schemes to increase sales.
Aggressive advertisement and publicity as part of sales promotion.
Reduction in distribution expenses.
Cost-reduction in all areas.
Instant decision making in certain procurement activities.
Timely introduction and implementation of market driven decisions.
Ensuring effective internal control
I. M c Kinsey’s 7S Framework: with special reference to the
organization under study
According to Waterman, organization change is not simply a matter of structure,
although structure is significant variable in the management of change. Again it is also not a
simple relationship between strategy and structure, although strategy is also a critical aspect. In
their view effective organizational change may be understood to be a complex relationship
between strategy, structure, system, style, skills & shared values. The first three elements-
strategy, structure &system are considered the “hardware” of success. The next four – style
skills, staff, and shared values are called the “software”. The complex relationship is
diagrammatically presented below;
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Origin of 7s framework
The 7s framework was first mentioned in “The art of Japanese management” by Richard
Pascale and Antony Athos in 1981. They had been investigating how Japanese industry had been
so successful. At around the same time that Tom-Peters and Robert Waterman were exploring
what made a company excellent. The 7s model was born at a meeting of these four authors in
1978. It appeared also in “In search of excellence” by Peters and Waterman and was taken up as
a basic tool by the global management consultancy company Mckinsey. Since then it is known as
their Mckinsey’s 7-s model.
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Benefits of 7-s Model Diagnostic tool for understanding organization those are ineffective.
Guides organizational change.
Combines rational and hard elements with emotional and soft elements.
Managers must act on all S’s in parallel and all S’s are interrelated.
Description: The 7s framework of is a value based management (VBS) model that describes how one can
holistically and effectively organize a company. Together these factors determine the way in
which a corporation operates. Mckinsey 7-s model is one of the approaches of management
analysis. Mckinsey model consists of 7-s. They are:
Structure-(virtual organization).
Skill-(competencies)
Style-(culture and leadership)
Strategy-(corporate, business, product or market)
System-(process)
Staff-(empowerment)
Shared values-(mission and goals)
According to this model, there are seven basic dimensions, which represent the core of
managerial activities. These are the levels which executives use to influence complex and large
organizations; obviously there was a concerted effort on the part of the originators of the model
to coin the managerial variables with works beginning with the letters so as to increase the
communication power of the model.
"Hard" elements are easier to define or identify and management can directly influence them:
Theses are strategy statements; organization charts and reporting lines; and formal processes and
IT systems.
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"Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and
more influenced by culture. However, these soft elements are as important as the hard elements
if the organization is going to be successful. The way the model is presented in Figured 1 below
depicts the interdependent of the elements and indicates how a change in one affects all the
others.
Structure: the way the organization is structured and who reports to whom.
Skill: the actual skills and competencies of the employees working for the company.
Style: the style of leadership adopted
Strategy: the plan devised to maintain and build competitive advantage over the competition.
Systems: the daily activities and procedures that staff members engage in to get the job done.
Staff: the employees and their general capabilities.
Shared values: called "super ordinate goals" when the model was first developed, these are the
core values of the company that are evidenced in the corporate culture and the general work
ethic.
STRUCTURE
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It refers to the more durable organization arrangements and relationships, & forms the
skeleton of the edifice of the organization. It prescribes the formal relationships, communication
channels, roles to perform and rules and procedures.
Structure has 3 important functions
It reduces the external uncertainty by forecasting, research & planning process.
It reduces the internal uncertainty due to variable, unpredictable, random human behavior
by mechanisms.
It helps in coordination of the activities of the organization to enables it to have a focus by
departmentation, specialization, division of labour & delegation of authority
ORGANISATIONAL STRUCTURE
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EXICUTIVE DIRECTOR
ACCOUNTANTSUPERVISOR
BOARD OF DIRECTORS
MANAGING DIRECTORS
CHAIRMAN
PURCHASE DEPARTMENT
PRODUCTION DEPARTMENT
FINANCE DEPARTMENT
HUMAN RESOURCE
DEPARTMENT
MARKETING DEPARTMENT
OFFICE ASSISTANT
Channel of Distribution
Sales Promotion Advertisement Market Research
Un Skilled Labours
Semi Skilled Labours
Skilled Labours
FINANCE DEPARTMENT
VKC maintains a separate finance department under the super vision of finance manager
who is assisted by the assistant manager and his subordinates .The section handles all the
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financial aspect of the firm. All transactions are handled through computerized transactions. All
the transactions are done by tally. Finance department involves preparing all the statements like, trading accounts,
profits and loss accounts, balance sheet, bills, notes, letters, other tender call letters, suppliers
list, creditor's information, shareholders' documents, dividend policy.
Functions of finance department
Planning, controlling, rising and administration of funds used in the business
Maintaining liquidity and profitability
Maintain integrity and ensure its' future prospects
Working capital management
To meet day to day expenses
To provide credit facility to customer
To maintain the inventories
MARKETING DEPARTMENT:
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Marketing Manager
Advertisement manager
Sales promotion manager
Channel of distribution
manager
Market research manager
Assistant manager
Assistant manager
Assistant manager
Assistant manager
Sales executives
“Marketing is the management process responsible for the identifying, anticipating and
satisfying consumers’ requirements profitably”.
To be the best product in the market company is giving importance to the following.
BRAND NAME : The brand name used for the product is “Slipons”.
QUALITY : Quality of the products is the main marketing technique that the `
company used.
ADVERTISING : The Company treats the advertising as the main mode of marketing
to improve the sales of their products.
SCHEMES :
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One of the main marketing techniques of the company is the different Schemes for their
customers and dealers.
WHOLSALERS MEET: The Company conducts the Wholesalers Meet at least once in a year.
By this the company provides an opportunity to the wholesalers to interact with the company and
between the dealers. This helps to identify problems, sort out differences, and to formulate plans
for future improvement in the market.
ORDER TAKING & COLLECTION: The Company executives are directly taking the orders
from the wholesalers.
DELIVERY SYSTEM: The Company has very good system for the supply of the products to the
wholesalers. The company had provided door delivery system and they are fixed a weekly chart
for the supply.
THE MARKETING TECHNIQUES USED ARE:
A) CHANNELS OF DISTRIBUTION
B) SALES PROMOTION
C) ADVERTISING
D) MARKET RESEARCH
A) CHANNELS OF DISTRIBUTION:
Channel of distribution is the set of marketing intermediaries through which the goods
flow from the producer to consumer. The company had provided the door delivery system to the
wholesalers for the distribution of products through their owned vehicles and through the
different transporters. The Channel of Distribution followed by the Company is:
The company adopts a two level distribution system consisting of Wholesale dealer and
Retail dealer. The company is satisfied with the existing arrangements.
Manufacture
Wholesaler
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Retailers
Consumers
B) SALES PROMOTION:
Sales promotion plays a major role for the success of the VKC products. Sales promotion
influences the customers for buying the products and also helps to meet competition. It
popularizes the product so as to stimulate demand.
Sales promotion tools used are:
CONSUMERS PROMOTION
COUPONS
DEMONSTRATION
CONTEST
PRICE OFFER
DEALER PROMOTION
SALES CONTEST
DEALER GIFT
TURNOVER ALLOWANCE
C) ADVERTISING & SCHEMES:
The VKC’s Advertising covers all activities connected with giving of publicity regarding
goods and services offered for sale. The main Medias for advertising are: Indoor Media &
Outdoor Media
INDOOR MEDIA
TV CHANNELS
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NEWS PAPERS MAGAZINES CATALOGUES, DANGLERS, CALENDERS, & STICKERS
OUTDOOR MEDIA
NAME BOARDS & A BOARDS HOARDINGS
TV CHANNELS:Advertisements of the products of the company are given in all the major TV channels in
Malayalam. The Brand Ambassadors for the product is Cine Artist and Models “Lakshmi
Rathan, Raji, Aaru Nayar, Baby Sooraj and Silpa”.
SCHEMES:
The company is providing different schemes for customers, retailers and wholesalers
during seasons. This helps the company to gets the good results in sales and publicity. The
company had already undertaken various schemes and contests like:
VKC Sammanotsavam
Mathrubhumi – VKC perdition contest (Football World Cup 2010)
D) MARKET RESEARCH
Market research helps in analyzing the buyer’s habits, popularity of a product, and
effectiveness of advertising media. It also helps to collect information about marketing problems
and opportunities. The continuous marketing research has been conducted by the company which
helps them in planning and executing marketing strategies for the future course of action.
THE PILLARS IN THE PATH OF SUCCESS OF THE FIRM is
1. FOREIGN TECHNOLOGIES:
The main advantage of the company is the implementation of Italian technology used by
them for the injection moulding process. Moulding process is the main activity and the key
process of manufacturing of quality footwear. The Company purchases Footwear Mould from
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Ital, Taiwan and China. This will help the company to ensure high quality with accurate size and
good finish to the product.
2. EMPLOYEES OF THE FIRM:
The Company always maintains good employer-employee relationship. The employees
are well satisfied with the attitude of the management towards them and in the facilities provided
to them. So there were no labour strikes, labour absenteeism and labour resignation. The
company provides excellent training programs for the employees to improve the skills and
productivity with in a lesser time. The employees are getting the statutory benefits like Bonus,
ES scheme, Employees Provident Fund, Festival Holiday Allowances from the company.
3. QUALITY OF THE PRODUCT:
Quality can be viewed as a weapon for competitive advantage, as a means of profitability
and a source of value for customers, investment in quality achieves desired business results.
Quality derives the productivity machine and leads the firm to prosperity. Quality of Hawai
product is the combined effort and cooperation of the entire organization. Quality Management
of VKC involves quality planning, quality control and quality improvement which are cross
functional in nature. The company has to face keen competition in the market since there are
numbers of footwear’s manufactures in the country. The main factor, which determines sales, is
the quality of the products. The company produces good quality products and hence they are
capable of competing with others. VKC Rubber Industries PVT. Ltd. Has succeeded in
withstanding stiff competition from the parallel manufactures because of the superior quality of
their products at reasonable price.
4. ADVERTISING & MARKETING:
The advertisement of VKC’s product is of news of information concerning an ideas,
services or products to induce action which is suitable with the intent of the advertiser. The
advertisement given is based on the new trends in the market and which are highly attractive by
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the customer. “Marketing is the process of providing the right product of the right quality in the
right quantity in the right place at the right time”.
Slipons is a right product with a right quality and the management tries to supply the
required quantity in the right place at the right time. This helps Slipons to be the one of the best
product in the market.
The Top Management directly controls the marketing and advertising activities of the
firm
Both Advertising and Marketing plays a vital role for the success of our products in the market
The adequate production, supply, good quality, affordable price of the product, and the
various marketing techniques used by the company helps its products to be a superior one in the
market that satisfies the customer.
SKILLS
The term “skills” includes those characteristics, which people use to describe a
company. Organization have strengths in a number of area but their key strengths are dominant
skills are few. These are developed over a period of time of the result of the interaction of a
number of factors performing certain tasks successfully over a period of time, the kind of people
in the organization, the top management style, structure, the management systems, the external
environmental influence etc. Hence when organization makes a strategic shift it becomes
necessary to consciously build new skills.
Classification of skill at VKC is as follows:
1. Top Management Skills:
Top management includes board of directors, secretaries and unit chief. Top
management skills includes balancing, integrating, setting, priorities, developing standards,
conceptualizing, leading, persuasive, and planning process.
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2. Supervisory Management Skills:
It includes additional general manager, deputy general manager, senior manager
and manager. Every superior in the unit should have sound technical knowledge of his field to
provide proper instructions and guidance to operatives, accuracy in work, and communication
skill for interaction with the higher management.
3. Technical and Clerical Skills:
Technical skills are required from an individual as per the project requirements.
For technical skills employee should be engineer/diploma holder. For clerical work candidates
should be BCom/ BBM.
Candidates who have passed industrial training institute are engaged scheme under trade
apprentices’ for a year. Besides fulfilling the training requirements under the apprentices act.
STYLE
The company employees share a common way of thinking and behaving. Leaders
establish unity of purpose and direction of the organization. They create and maintain the
internal environment in which people became fully involved in achieving the organization
policy.
Top down style
In VKC management follows the top down decision making at the time of taking
any decision relating to management.
Board of directors and chief executive of the company give decisions about the
management relating problems of the company. The decision taken is flow from top to down, (to
Middle Level and Lower Level Management) in VKC they follow the participative leadership in
case of recruitment.
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Participative leadership:
The head of the department takes some decisions there may by consulting the
other employees. In this type of leadership all the level of management participate in taking
decisions. In case recruitment A.M personnel department consult the entire department head to
take decision regarding recruitment of new employees.
STAFF:
It refers to the people working in an organization the company’s people resources and
how they are developed, trained and motivated. The process of staffing includes various
processes like recruitment and selection procedures, training etc. It refers to how the people
are developed, trained, socialized, integrated, motivated and how the employees’ career is
shaped in an organization.
Technical Staff:
These are the staffs they are responsible for the work related to technical
aspect. In this company they are appointing well –qualified and experienced persons as
technical staff. So these staff will have good knowledge about the working environment.
Supervisory Staff:
These are the persons who are in charge with supervising the other employees in the
organization. In this company they are employing experienced staff as supervisor. so they
can observe the fellow workers and guide them as per the companies need. The experienced
supervisors are one of the key assets of this company.
Clerical staff:
Clerical staff required for clerical work, clerical work need for all organization for
clerical staff required B.com/BBM.
STRATEGY
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Strategy is a choice of direction and action; the company adopts to achieve its objectives
in a competitive situation. Strategies formulated need to be implemented. Implementation of
strategies is often more difficult than their formulation. Strategic planning is about asking
questions, more than attempting to answer them. Strategy formulation entails a search for a
different frame of reference. It is the quest for a new business paradigm. There are two types of
paradigms that apply to management, namely the business and the organizational or managerial
paradigms. The business paradigms define a company’s position in the market place with respect
to customers, technology and products.
2nd para strategy followed by any of the deptPricing of VKC:
The name “VKC” itself is the mark of quality for the customer. The company has across
different price terminologies/price strategies. They are as follows:
1. List price
2. Discount
3. Payment periods
4. Credit terms
5. Seasonal pricing
6. Area wise pricing
7. Pricing on demand
SYSTEM:
Identifying, understanding and managing process as a system contribution to the
organization effectiveness and efficiency in achieving its objectives.
A. Inventory Control System:
An effort to achieve and maintain an ecological balance between the cost incurred and cost
solved by holding material in stock is called inventory.
ABC analysis for stock control.
FIFO method for issuing materials
2nd para strategy followed by any of the dept
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B. Accounting System:
Financial statements are prepared under the historical cost convention on an accrual
basis and comply with the accounting standards refer to sec 211 (3c) of the companies Act 1956.
C. Remuneration System:
1. Piece rate system is followed to employees.
D. Management Information System (MIS)
“A Management Information System, as the term is generally understood, is an integrated,
user-machine system for providing information to support operations,
Management, and decision making functions in an organization. The system utilizes computer
hardware and software; manual procedures; models for analysis; planning, control and decision
making; and a database.” Management Information System is the application of information
technology to support business activities. MIS and the information it generates are generally
considered essential components of prudent and reasonable business decisions.
Management Information System, which has been computerized partly at VKC, is used
for specific purpose that has been identified.
Personnel, Marketing, Finance, Accounting, Payrolls functions, Production planning,
Material management, Budgeting etc are the departments which are made computerized in VKC.
The Management Information System utilities: -
Computer hardware and software.
Manual procedures.
Models for analysis, planning, control, and decision-making.
A database.
SHARED VALUES:
Values refer to the institutional standards of behavior that strengthen commitment to the
vision, and guide strategy formulation and purposive action. The core values are shaped around
the belief that enterprises exist to serve society. In terms of this belief, profit is a means rather
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than an end in itself a compensation to owners of capital linked to the effectiveness of
contribution to society and the essential ingredient to sustain such enlarged societal contribution.
1. Integrity among various department
Various departments in organization are working successfully. Coordination of
all the functional departmental area works together to achieve the stated object of the
company.
2. Team work among the employees
Every person or worker in the organization knows the objectives of the
company. With the proper communication network and corporation among the employees,
synergy is existing in the organization.
3. Customer satisfaction
The status of customer satisfaction is measured through two principles
interventions.
a. Customer satisfactory survey
The customer satisfaction is measured by sending structured questionnaires to
major customers and exacts their opinion about the product being offered reported for internal
reviews and also for reviews at higher level in the organization. The results of these are used to
update the quality management system and procedures.
b. Customer complaint handling system
The calls and complaints from the customers are systematically processed for
timely response and solution right from the branch, maintenance centre or the site itself. The
complaints are continuously monitored and regularly reviewed by the unit chief to ensure speedy
redressal.
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SWOT ANALYSIS
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 project and identifying the internal and external factors
that are favorable and unfavorable to achieve that objective. The technique is credited to Albert
Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from
Fortune 500 companies
Strengths:
Easy availability of low cost of labour.
Comfortable availability of raw materials and other inputs.
Massive institutional support for technical services, designing, manpower development
and marketing.
Management is very stable, that forms strong foundation of the company.
Employees are being provided with all necessary welfare facilities.
There are highly skilled and committed employees.
Well equipped quality control department for inspecting the quality of incoming of raw
materials and final products
Competitive advantage in cost of production
Wide distribution network
Weaknes s
Due to lack of direct sales, debts with many dealers turning bad.
Lack of human resource.
Cost of production of is high.
Low turnover resulting in low profits.
Defective marketing strategy lacks effective advertising and publicity.
No proper utilization of R&D centre and less importance to R&D.
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OPPORTUNITIES:
The company has the opportunity to expand its production units due to more demand for its
products.
The company has got better tool for better planning and decision-making.
The company can establish more branches across the India.
At present it has good raw material sources to enhance production.
Good export market should tap foreign market vigorously.
At present it has Good raw material sources to enhance production
Threats
Competition from other leaders.
Government interference may reduce growth potential.
Competition from other global leaders like HUL.
Technology advancement at a faster rate.
To protect the financial interest of the company.
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Financial statement analysis
RATIO ANALYSIS:
The ratio is the most powerful tool of financial analysis. It is the process of
establishing and interpreting various quantitative relationships between the figures and
group of figures. It is with the help of ratio analysis that the financial statement
Can be analyzed more clearly and decision can be made.
SL.NO RATIOS 2009-2010
1 Current ratio 1.52
2 Acid test ratio 0.34
3 Net profit 3.00
4 Net worth ratio 28.76
5 Debt/Equity 1.63
Current ratio;
It expresses the relationship between current assets and current liabilities. The
company’s current ratio is 1.52 in the year 2009-10. The Indian Standard Current ratio is 3:1,
though the ideal ratio is 2:1. Therefore, the company does not meet the standard ratio and does
not enjoy sufficient liquidity and there is shortage of working capital in the year 2009-10
Acid test ratio;
The Acid Test Ratio is the rigorous measures of a firm’s ability to service short
term liabilities. The Acid Test Ratio is superior to the current ratio. Generally an Acid Test Ratio
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of 1:1 is considered satisfactory. In the year 2009-10 the Acid Test Ratio is 0.34 which is not
satisfactory.
Net Profit Ratio:
Net Profit Ratio measures the relationship between net profit and sale of the firm. The
Net Profit shows the profit position of the company against sale during the year. The Net Profit
ratio in the year 2009-10 is 3.00. While calculating Net Profit Ratio, the investment or capital of
the firm is only in relation to sales.
Net worth ratio;
Debt/Equity ratio;
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LEARNING EXPERIENCE
The learning experience gained by me during the in-plant training was very much
practical oriented. Mostly all the concepts and theories, which I studied in the class, are
applicable practically. I had a great time working on the project, as it gives insights into the working environment
of an organization. The training has exposed me to many facts of an organization and also helped
me to gain practical knowledge, which will go a long way in the horizon of our career. I became
more aware of the soap industry and the role played by VKC RUBBER INDUSTRY PVT LTD.
It is fallowing very good accounting system by wish helps in meeting all its obligations in
time
Structure: I got to know how decisions are communicated, the flow of decision process.
The way in which departments are classifieds on the basis of their functioning. The
functions of each departments and its relevance.
Skills: Through skills, how the training needs are satisfied to the employees of different
grades. The different on-job and off-job training given to the employees.
Style: Through style, I got to know how decisions flow from top to bottom in VKC
RUBBER INDUSTRY PVT LTD. How the production process is planned and worked
out. How self managed teams perform to achieve the targets set by the management.
Strategy: Through strategy, I found how strategies were formulated to overcome the
rigorous competition. Strategy is very much essential for the company to survive in the
market. Supply Chain Management is one of the strategies adopted by VKC RUBBER
INDUSTRY PVT LTD. through which they are able to reduce the cost of production and
increase profitability.
System: System plays an important role of supporting and facilitating various activities
that are carried out within the organization VKC RUBBER INDUSTRY PVT LTD
adopts latest system.
Overall the learning experience was quite satisfactory which enabled me to experience a
slice of the real and ruthless industry.
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