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INTRODUCTION
As a part of our MBA curriculum, an organizational study was done in
SITARAM BAJAJ, THRISSUR. One of the main objectives of the study
was to get acquainted with a real time working environment and to develop
first hand knowledge of the dynamics of an organization. It also helped to
understand the various functional and managerial aspects of the organization
as well as a practical knowledge regarding the management of the business.
OBJECTIVES OF THE STUDY
The objectives of the organizational study are:
PRIMARY OBJECTIVES
1. To get an idea of the organization and their organization structure.
2. To understand about the various department of the organization; the
objectives of each department and its functions.
SECONDARY OBJECTIVES
1. To find out the problems faced by the organization in achieving their
goals.
2. To get the feel of actual working environment and to get acquainted
with it as well as the managerial aspect of the company.
3. To get some idea about two-wheeler industry.
METHODOLOGY OF STUDY
The methodology used in the study involves the collection of the primary
data and secondary data. The primary data was collected directly by
interviewing the departmental heads as-well-as the people working in the
departments and other staff of Sitaram Bajaj, Thrissur. The secondary data
were collected through the reference of brochures, books and the details
available on web sites.
LIMITATIONS OF THE STUDY
1. A constrain was very less time, which prevented me from visiting
all departments, as a result, the information has been obtained from
secondary sources.
2. Busy schedule of the officers and employees prevented lengthy
discussions.
3. Due to the lack of time and busy schedule of the employees not
many details about work could be collected.
2.1 INDUSTRY PROFILE
The Bajaj Group is amongst the top 10 business houses in India. Its
Footprint stretches over a wide range of industries, spanning automobiles
( two- wheelers and three- wheelers), home appliances, lighting, iron and
Steel, insurance, travel and finance. The group’s flagship company, Bajaj
Auto is ranked as the world’s fourth largest two- and three wheeler
Manufacturer and the Bajaj brand is well-known in over a dozen countries
In Europe, Latin America the US and Asia.
Founded in 1926, at the height of India’s movement for independence
from British, the group has an illustrious history. The integrity, dedication,
Resourcefulness and determination to succeed which characteristics are of
the group today, are often traced back to its birth during those days of
relentless devotion to a common cause. Jamnalal Bajaj, founder of the
group, was close confident and disciple of Mahatma Gandhi. Infact,
Gandhiji had adopted him as his son. This close relationship and his deep
involvement in the independence movement did not leave Jamnalal Bajaj
with much time to spend on his newly launched business venture.
His son, Kamalnayan Bajaj, then 27, took over the reins of business in
1942. He too was close to Gandhiji and it was only after independence in
1947, that he was able to give his full attention to the business. Kamalnayan
Bajaj not only consolidated the group, but also diversified in to various
manufacturing activities. The present Chairman and Managing Director of
the group, Rahul Bajaj, took charge of the business in 1965. Under his
leadership, the turnover of Bajaj Auto the flagship company has gone up
from Rs.72 million to Rs.46.16 billion (USD 936 million), its product
portfolio has expanded from one to and the brand has found a global market.
He is one of the India’s most distinguished business leaders and
internationally respected for his business acumen and entrepreneurial spirit.
Bajaj Auto has a technical tie-up with Kawasaki Heavy Industries of
Japan to produce a range of the latest, state-of-art two-wheelers in India.
Since the tie-up in 1986, Bajaj Auto has launched KB100, KB RTZ, KB125,
4S, 4S Champion, Boxer, Caliber, Caliber115, Wind125 and India’s first
real cruiser bike, the Kawasaki Bajaj Eliminator. A fortune 500 company
with a turnover of USD 10 billion (Rs. 45,840 crore), Kawasaki Heavy
Industries has crafted new technologies for over a hundred years. These
technologies have redefined space systems, aircrafts, jet engines, ships,
locomotive, energy plants, construction machinery, and automation systems,
apart from a range of high quality, high reliability two-wheelers. Kawasaki
has given the world its legendary series of 600-1200cc Ninja and 1600
Vulcan bikes. Straight from Kawasaki design boards, the Kawasaki Bajaj
Eliminator redefines the pleasure of “biking” in looks as well as
performance.
Quality Policy
Bajaj Auto continues to firmly believe in providing the customer value for
money, for years through our products and services. This we shall maintain
and improve, in our decision making, quality, safety, and services will be
given as much consideration as productivity, cost and delivery. Quality shall
be built in to every aspect of our work life and business operations. Quality
improvements and customer satisfaction shall be the responsibility of every
employee.
TPM Policy
Bajaj Auto adopt Total Productivity Maintenance as a means of creating a
safe and participative work environment in which all employees target the
elimination of losses in order to continuously enhance the capacity,
flexibility, reliability and capability of its processes, leading to higher
employee morale and greater organizational profitability.
Group Company
Bajaj Auto is the flagship of the Bajaj group of companies. The group
comprises of 27 companies and was founded in the year 1926. Bajaj Auto’s
three plants at Arkudi, Waluj, and Chakan in Maharashtra, western India,
produced 1,814,799 vehicles in 2004- 05.
Recruitment policy
Bajaj Auto is an equal opportunity employer. Selection is based strictly on
individual merit. A large number of our recruits are fresh engineers and
MBAs. Natural attrition is usually taken care of by promotions and
horizontal movements within the organization to provide career
opportunities for our employees. Occasionally, specific skill-sets may
warrant lateral recruitment.
Entry level Recruitment Engineers: Bajaj recruits Engineering Graduates
from reputed institutes from all over India. Bajaj Auto enjoys an excellent
reputation with all National Institute of Technology (NITs) and is among
preferred employers for on campus recruitment. The selection process
comprises a written test in technical, analytical and logical reasoning, group
discussion and personal interview.
Management Graduates: Bajaj recruit management graduates from
reputed management institutes all over India. The selection procedure
comprises a written test in analytical and logical reasoning, group discussion
and personal interview. All entry-level selections are made through campus
recruitment only. After recruitment new entrants undergo a thorough
induction-training program before their placement in the company.
Departments are allocated on the basis of the individual recruit’s aptitude
and our requirements. Usually, after completing two years of service they
are provided opportunities for job-rotation.
Work culture
Bajaj’s work culture supports and enhances our brand. The Bajaj brand
signifies excitement. Bajaj strives to inspire confidence through excitement
engineering. The culture is built on core values of learning, innovation,
perfection, speed and transparency. Facilitative leadership style helps in
developing leaders at all levels and establishes accountability.
Our Brand Values
Bajaj live our brand by its values of innovation, perfection, and speed.
Bajaj will be distinctly ahead through excitement engineering. Innovation is
how we create the future. It is a value that provokes us to reach beyond the
obvious in pursuit of that which exceeds the ordinary. Perfection is how we
set new standards. It is a value that exhibits our determination to excel by
endeavoring to establish new benchmarks all the time. Speed is how we
convey clear conviction. It is a value that keeps us sharply responsive,
mirroring our commitment towards our goals and process.
Competency Building
Bajaj Auto has a very flat organization structure with three management
levels. Each level represents a specific role and hence needs relevant
competencies. Competency building at Bajaj Auto is a combination of
development for current and future roles. We cater to these needs by using
intervention like development centers, need-based training and job-rotation
plans. We use different methods of imparting training like lectures, group
discussions, role-plays, seminars, outbound training, assignment and on-the-
job tasks.
Compensation Philosophy
Bajaj strive to be amongst the top quartile in our compensation structure.
Competence and performance are the key drives of our compensation policy.
A significant part of the compensation is in the form of variable pay linked
to the individual’s and the organization’s performance.
2.2 COMPANY PROFILE
SITARAM GROUP
It would appropriate to appraise herewith Sitaram group and its business
activities, past and present. As for the track record of the family business, it
is roughly a century old in business and is toppers in so many fields. The
models C$FA status in the whole country, consecutively for a number of
years by M/s Hindustan Lever Ltd, top distributor for M/s Philips India Ltd,
for the all South India, first dealer in Kerala to retail 1000+ motorcycle in a
month, one of the fastest 1000+ Maruti car seller etc, to name a new of their
achievement.
Sitaram group is one of the oldest business houses in Kerala,
established way back in 1908 by the great Sri.T.S.Balarama iyer. Sitaram
spinning and weaving mills, clicked off under his leadership. This was the
beginning of a business empire which has now the dominance among the
leading business groups in Kerala, especially in Thrissur. The footsteps of
the great man who had a vision for the years ahead are perfectly followed by
his son Mr.T.B. Subbarama iyer and his four sons ensuring that the group
maintains its high standard.
The group’s entire distribution network is looked after by the eldest
son, Mr. T.S. Balaraman. Mr. T.S Venkitaraman, the second son is the in
charge of packing units. The clearing and forwarding units are headed by
Mr. T.S. Sivaraman, while the youngest son Mr. T.S. Sitaram, in charge of
Automobile segment of the group. Mr. T.B. Subbarama iyer co-ordinates
the overall activities of sitaram group of companies.
The corporate office of the group is located at Punkunnam, Thrissur,
Kerala. Well trained and dedicated staff each responsible for individual
profit centers, fully computerized accounts, separate delivery vans catering
different products, fixed route schedule etc are some of the key factors to our
success over the years.
HISTORY OF SITARAM GROUP
Sitaram group is one of the oldest business houses in Kerala,
established way back in 1908 by the great Sri. T.S. Balarama iyer, who is the
father of present stalwart of the institutions. He founded the first spinning
mill of South India at Thrissur nearly a century ago with more than five
thousand workers and employees. Other minor establishments like Sitaram
Ayurvedic Pharmacy Ltd (SAPL) petroleum agency, tile manufacturing etc.,
were also founded by him. Their establishment was supplying electricity to
Thrissur municipality at one time. Due to political and labor reasons, the
management of Sitaram Mills Ltd, was handed over to the government in the
late 60’s of the last century.
ESTABLISHMENTS OF SITARAM GROUP
Sitaram group starts business in various fields. Some major fields,
where sitaram group put their sign are distribution networks, contract
packaging, communication, clearing and forwarding, auto mobiles etc. A
brief description about the establishments of sitaram groups is below.
Distribution network
We are the distributor for the Blue Chip Companies for Thrissur district.
Our distribution setup was started in 1972. Unarguably we are one of the top
distributors in all most all the lines we handle.
Re distributors for
Philips India Ltd.,
Johnson $ Johnson Ltd.,
Cadbury India Ltd.,
Godrej Soaps Ltd.,
Protech Appliances.
Kwality Biscuits.
Finolex Cables.
We have 10000 sq.ft of storage area in the heart of city, Dedicated
Transporting arrangement, 75 numbers of trained and professional
manpower etc for effective distribution of products.
Contract packaging
Sitaram Packers are the blending and packing contractors for M/s
Hindustan Lever Ltd (beverages division) for their popular tea brands like
Deepam, 3 Roses, Taaza, A 1 Dust, Top star etc. the entire process is carried
out with utmost care in our own fully mechanized 22000 sq. ft factory
complex.
Communication
Sitaram reliance (super DSA)
Sitaram Reliance Intercornm is the super DSA in Thrissur and started
operation on 16th November 2005. This is the first entrance of Sitaram
Group in to the telecommunication sector.
The major features of Sitaram Reliance are 1250 sq.ft of infrastructure,
60 numbers of trained and professional manpower etc. Being started recently
there is no turnover specified.
Clearing and forwarding
The group’s clearing and forwarding activities, started in 1973, are
carried out in the name of Sitaram Trading Company. Currently, we are the
C$F agents for M/s Hindustan Lever Ltd for their beverages and foods
division. Popular brands like Dalda, Anikspray, Milkana, Kissan squash and
jams, Tea and coffee are being dispatched from here. The operations
includes receipts/ dispatches, billing, banking etc. Our godown is newly
constructed, close to the city, and confirms to the hygiene standards
applicable for storing food products.
Our company is the authorized C$F agents for Electrolux Voltas Ltd
(refrigerators and washing machines) and Alwyn Ltd (refrigerators, washing
machines and storage cabins) also.
Automobiles
Sitaram also have two automobile establishments in Thrissur. Sitaram
motors deals with four wheelers. They are the authorized dealers of Maruti.
Another one is sitaram Auto sales and services deals with two-wheelers.
They are the authorized dealers of Bajaj Auto Ltd. Sitaram has sub dealers
Thrissur to reach out its customers, 7 Authorized Services Centers, 8 Rural
Service Outlet, and 2 young Engineering Service. 2009 is their 12th year of
operation.
COMPANY’S MISSION
Provide job opportunities with excellent work atmosphere.
Consolidate our position as leaders in all our areas of operations.
Respond quickly to market and gain competitive advantage in all
our activity.
SITARAM BAJAJ
Sitaram Auto sales and services are the dealers for Bajaj Auto Ltd’s
two and three wheelers for Thrissur. Our show room is the largest in
South India and the first standardized one in Kerala. Vast selection area,
pneumatic tool assisted working base, smoke less work shop
arrangement, dust free engine room and service centre, separate sales and
spare parts counters etc, are the specialties of the showroom . And we are
also selected as Hi-end Dealers for Bajaj Auto Limited.
Our workshop/service centre is of ideal plus standard recently. There
are only two ideal plus workshop in Kerala and with the co-operation of our
dedicated staff; we are one amongst the two.
22000 sq.ft of showroom + service centre in the heart of city.
Sitaram setup their showroom and service centre in heart
of Thrissur city. So they can know the pulse of market. There by they can
make decision about sales promotional activities, selling expenditure.
9 branches
Sitaram Bajaj has 9 branches in Thrissur District. They are
1. Triprayar
2. Vadanappilly
3. Perinjanam
4. Vellankallur
5. Kuriachira
6. Cherpu
7. Kechery
8. Nelluvai
9. Thiruvillwamala
155 numbers of trained and professional manpower.
Sitaram Bajaj has 155 professionals as employees. The
management provides 20 days on the job training for freshers. After
getting training, they are efficient enough to achieve targets.
25 crore turnover
In 2008-09 Sitaram Bajaj’s turnover is 25 crore. A well designed
strategy, hard working of employees, etc are behind this great
achievement.
FUNCTIONAL DEPARTMENTS
Sitaram Bajaj has 7 functional departments. These separate
departments are well co-ordinate by the management. This is also facilitated
division of work and specialization in work. The various departments are
Sales and marketing Department, Finance Department, service department;
personnel department, purchase department, spares department and system
department.
SALES AND MARKETING DEPARTMENT
Marketing department is headed by marketing manager. Under him there
is an assistant manager, sales executives, trainees and showroom hostess.
Around 30 staffs are working under this department. Sales of motorcycle are
done through showroom. Three strategies for effective sales are
Field visit by field executives
Telephone enquiries
Walk- in customers
FINANCE DEPARTMENT
Finance plays a vital role in the success of every organization. In
sitaram Bajaj sales receipts and expenses are closely controlled by the
finance manager and assisted by accountants and cashier. Various accounts
registers and records to meet statuary requirements and management’s
controls help the customers to get motor cycle loans.
SERVICE DEPARTMENT
The service is located in the heart of the city. More than one thousand
motor cycles are serviced in every month. Service department has separate
section which provides help to the customers regarding any trouble with
their and a unit known as accident service is accessible to customers for
claiming insurance after meeting an accident.
HR DEPARTMENT
The personnel department is headed by the showroom manager who
works as the personnel manager. The security personnel, time office clerks
and other administrative clerks etc are working under him. This department
takes necessary steps to recruits stable person as per the requirements of
various departments. Employee’s attendance, leave, over time etc are
monitored and recorded by this department. This department looks after
good liaisons with various government departments and legal/statutory
departments conduct training programs and a meeting for employees to keep
up the discipline morale of the organization and to ensure smooth
functioning of the organization.
PURCHASE DEPARTMENT
The stores department monitors the stock, receipts, and consumption of
various materials and spare parts to maintain the optimum level of each item.
The purchase section contracts suppliers for the procurement of the items
advised by stores so as to get the item with the finance department so that
payment can be made as and when required. There are two main storage
sections one for motorcycle storage and the other for the spares parts storage
in service station.
Market
The term market is derived from the Latin word “Marcatus” which
means merchandise, trade or a place where business is conducted. Market is
a geographical area where commodities are exposed for sale. It is the sum
total of the situation or environment in which the resources, activities,
attitudes of the buyers and sellers, affect the sales for the product in a given
area.
Definition of marketing
The definition formulated by the definition committee of American
Marketing Association is “marketing is the performance of
business activities that direct the flow of goods and services
from purchaser to consumer or user”.
The modern definition of marketing by Stanton is “marketing is
total system of interacting business activities designed to
plan, price, promote, and distribute want satisfying product
and services to present and potential customer”
Features of marketing
By considering the definition of marketing, we can conclude that
modern marketing has the following features.
1. Distribution of goods and services: Distribution of goods and
services is the traditional concept of marketing. The term distribution
covers all other activities such as transportation, storage, grading, and
all other efforts of the wholesalers and retailers. These activities,
though do not form part of production, they are covered by term
distribution.
2. Delivery of standard of living: Modern business managers consider
marketing as consumer oriented. Therefore, the major function of
marketing is the satisfaction of consumers’ desires for goods and
services. The structure and efficiency of the marketing system
strongly influence the amount of satisfaction derived by the
consumers. In other words, it vitally affects the standard of living
demanded by the people.
3. Creation of utilities: Marketing activities try to create three types of
utilities – time. Place and possession utilities. The creation of such
utilities adds value to a product.
4. Generation of revenue: Consumer’s satisfaction alone is not the only
object of marketing. It does not overlook the producer. From the view
point of the firm, it is marketing’s responsibility to generate revenue
of a cost which will allow a reasonable profit to be realized from its
operations. The marketing manager is, therefore, expected to work for
a revenue, which will be in excess of the cost incurred for
salesmanship and advertising.
Objectives of marketing
The first and foremost objective of all marketing activities is the satisfaction
of human wants. Besides it has other objectives also. Some of the objectives
are-
1. Profit maximization is another objective of marketing. If the firm fails
to earn decent profits, its very existence itself may be handicapped.
Some authorities consider profit as only an incentive but not an
objective.
2. Successful distribution of products is another notable objective of
marketing. Effective distribution refers to the free flow of goods and
services to the consumers.
IMPORTANCE OF MARKETING
An effective system of marketing is a condition precedent for a high
level of economic activity. It is not only for the firm producing the
product but also to the society which uses the product. Moreover, its
importance to each is growing rapidly in the recent years. Its importance
can be well understood by the student if he knows what marketing does
for the society and to the firm. Now we shall discuss them in detail.
Benefits to the society
The benefits of marketing to the society can be summed up as follows:
1. Delivers the standard of living: marketing help to
achieve maintain and raise standards of living of the community.
Now-a- day’s production is carried on mass scale. Mass
production needs mass marketing. Both production and sales on
mass scale bring down the cost of production and increase the
amount of profit. Besides, the consumers are also benefited by
getting a variety of goods at a lower price. Lower price results in
larger consumption by more consumers and thereby their
standard of living is increased. On the other hand, if production is
restricted, prices will become high and the number of consumers
will also become less. At the same time, the producer cannot also
increase his total income because of the ultimate reduction in the
volume of sales.
However, marketing alone is not the only
determinant of the standard of living. There are other factors like
production, purchasing power, etc., which do affect the standard of
living.
2. Connects the producers and consumers: The
very object of production is consumption. The producer produces
goods and services for the purpose of selling. Therefore, they
should get in touch with the consumers who require such goods
and services. Similarly the consumers should also know the
sources of supply. In the absence of marketing process, it is
extremely difficult for both to have contact with themselves. It is
the marketing process which connects both easily.
3. Increases the national income: The national income
of a country is really composed of the purchasing power i.e., what
money can buy in terms of goods and services. Effective
marketing reduces the distribution costs and there by lowers the
prices. Lower prices to consumers mean more purchasing power,
which in turn means an increase in the national income.
4. Provides employment opportunities: Marketing
furnishes employment both in production work and in marketing
activities. Effective marketing results in large scale production
which in turn creates more employment in the production
process. In addition to furnishing production jobs, marketing
activities require a large number of employees. Thousands of men
are to be employed to manage the retail and whole sale
establishments. In our country, the business establishment rank
next to agriculture in providing employment opportunities.
5. Helps to maintain economic stability: An
observed by a classical economist, “nothing happens in our
economy until somebody sells something”. Therefore marketing
is the main spring of all economic activities. Besides, the
economic activities must be stable and free from fluctuations,
especially in price. Effective marketing system enables to
maintain the price level stable by equating demand and supply.
Benefits to the firm
As observed by Stanton, “marketing is the beating heart of
many operations of the firms”. In other words, it is marketing which
makes all the activities of the firm possible. It helps the business firm in a
variety of ways. Some of the benefits of marketing are given below.
1. If the marketing function is not effective, the whole organization
will be put in to trouble.
2. It creates revenue to the firm. Without this revenue, no production
process is possible. Besides, the firm it self cannot grow.
3. The marketing organization provides a channel of communication
between the firm and the consumers. It is continuously furnishing
information about the consumer’s demands, tastes and preferences
to the top managements. By this process, it helps the firm to adjust
its production schedule to suit the tastes of the consumers.
4. It helps the producers to increase the volume of sales. Large scale
implied more production and more profit. More production also
helps to lower the production and marketing costs.
SELLING AND MARKETING IN SITARAM BAJAJ
MARKETING/SALES MANAGER
Sales manger is the head of this department. Under him there is an
assistant manager, sales executives, trainees and a showroom hostess.
Around 30 staffs are working under this department.
SELLING PROCESS
The customer will approach the section and enquire about the product.
Now a days the customers are predetermining about the product. When a
customer approaches section, the hostess will receive them and the sales
executives will explain the product and If needed they explain about the
financial schemes. After that they will demonstrate the vehicle to the
customer. If the customer is willing to purchase the vehicle, documentation
is done and if necessary, the delivery is done that day itself. If the particular
stock is not available, the customer has to book it and have to wait for 5
days.
If the customer needs financial assistants, the loan facility is provided
by the company. Bank in it are, mainly ICICI and Centurion Bank. Bajaj
Auto Finance also provides loan to the customers.
MARKETING MIX
The marketing mix is defined by Stanton is “marketing mix
refers to the term used to describe the combination of four
inputs which constitute the core of a company’s marketing
system. The product, the price structure, the promotional
activities and the distribution system”. The marketing mix i.e., 4
P’s are
1. Product
2. Price
3. Promotion
4. Place
MARKETING MIX IN SITARAM
1. product
Sitaram Bajaj, one of the leading two-wheeler dealers is the
authorized dealer of Bajaj Auto Ltd. They mainly trade the two
wheelers in Thrissur. Apart from two-wheelers, they sell spare parts of
two-wheelers.
2. Price
The prices of the bikes are fixed by the manufacturer i.e. Bajaj Auto
Ltd. The prices fixed by them are very fair and affordable to the
Customers.
3. Promotion
Sitaram has promotional activities for push their demand. They put
the ads in newspapers, banners, notices etc. They also provide special
offers and discounts to attract customers.
4. Place
People want products at very near to them. All people cannot reach
at Thrissur for buying bikes. So Sitaram Bajaj starts 9 branches at various
places. They are Triprayar, Vadanappilly, Perinjanam, Vellenkallur,
Kuriachira, Cherpu, Kechery, Nelluvai, and Thiruvillwamala. Sitaram
Bajaj also has whole sale trading. They sell bikes to Authorized Service
Centers (ASC). The 9 ASC’s of Sitaram Bajaj are Kodungallur,
Wadakanchery, Iringalakuda, 2 at Chalakudy, Kodakara, Chavakadu and
Kunnamkulam. Sitaram Bajaj also has Rural Service Outlets (RSO).
RSO’s have no authorization.
SALES PROMOTION ACTIVITIES
The sales promotional activities adopted by Sitaram Bajaj are
Sales offers
Finance offers
Advertisements
After sales services
Sales offers
As a sales promotion technique this organization gives sales offers to
consumers. Sales offers means price discounts, price off etc. These offers are
provide by Sitaram Bajaj and Bajaj Auto Ltd also.
Finance offers
Finance offers are also used to increase the demand for the products.
Finance offers refer to less rate of interest for loan provided by Bajaj Auto
Finance.
Advertisement
Sitaram Bajaj put advertisements in various Medias. News papers,
notices, banners are some of them. Bajaj Auto Ltd provides advertisement
on TV and other Medias. This also helps to increase the demand of bikes.
The timely and efficient advertisement ensures the responses of consumers.
After sales service
They provide after sales services to customers. After sales services
schemes like home delivery, warrantee schemes etc are given by this
business organization. They ensure warrantee for 2 years for their vehicle
DISTRIBUTION CHANNELS
They have a well planned distribution channel. Distribution channel for
services are usually short, and are either direct or use of an agent. Since
stocks are not held, the role of wholesalers, retailers or industrial distributor
does not apply.
In case of Sitaram Bajaj, they are the service providers. They have
retailers for convenient for consumers. Ultimately it reaches to consumers.
This distribution channel is very much helpful and convenient for customers.
The consumers get the same two wheelers from very near to their place.
WAREHOUSE OF SITARAM BAJAJ
Warehouse of Sitaram Bajaj is attached to their showroom, which is
situated in the heart of Thrissur city. The 1000 sq.ft warehouse can afford
250 bikes at a time. They stock enough two wheelers to meet the consumers
demand with out any delay.
COMPETITORS
The main competitors of Sitaram Bajaj are
Kalyan mobikes, Thrissur.
Johns Honda, Thrissur.
TVS
Yamaha
MARKET SHARE ANALYSIS
Sitaram Bajaj deals with two- wheelers of the great Bajaj Auto Ltd.
They can capture 40% of two- wheeler market. Other 60% are shared by
Hero Honda, TVS etc. compare to others they has a very good influence in
market. This is mainly because of the quality of two-wheelers and customer
caring of Sitaram Bajaj.
COMPLAINT HANDLING
In this kind of service, the consumers are suffered from two kinds of
complaints. They are service problems and sales problems. In Sitaram
Bajaj, the consumers are get solution for their problems very quickly.
The problems related to service solved by service executives. If they
can’t solve it, it will pass to service manager. The problems related to
sales formalities handled by sales executives. If they are unable to solve
the consumer’s problem, it will pass to sales manager.
FINANCE DEPRTMENT
FINANCE
In our present day economy, finance is defined as the
provision of money at the time when it is required. Every
enterprise, whether big, medium of small, needs finance to carry on its
operations and to achieve its targets. In fact, finance is so indispensable
today that it is rightly said to be the lifeblood of an enterprise. Without
adequate finance, no enterprise can possibly accomplish its objectives.
FINANCIAL MANAGEMENT
Financial management is applicable to every type of organization, part
of the management irrespective of its size, kind or nature. It is as useful to a
small concern as to a big unit. Financial management refers to that
activity which is concerned with the planning and controlling
of firm’s financial resources.
FUNCTIONS OF A FINANCIAL MANAGER
The changed business environment in the recent past has widened the
role of financial manager. The increasing pace of industrialization, rise of
larger scale units, innovations in information processing techniques, intense
competition etc. have increased the need for financial planning and control.
The size and extent of business activities are dependent upon the availability
of finances. Financial reporting may be used as a technique for control. In
the present business context, a financial manager is expected to perform the
following functions.
Financial Forecasting and Planning
A financial manager has to estimate the financial needs of a business.
How much money will be required for acquiring various assets? The amount
will be needed for purchasing fixed assets and meeting working capital
needs. He has to plan the funds needed in the future. How these funds will
be acquired and applied is an important function of a finance manager.
Acquisition of Funds
After making financial planning, the next step will be to acquire funds.
There are a number of sources available for supplying funds. These sources
may be shares, debentures, financial institutions, commercial banks, etc. The
selection of an appropriate source is a delicate task. The choice of a wrong
source for funds may create difficulties at a later stage. The pros and cons of
various sources should be analyzed before making a final decision.
Investment of Funds
The funds should be used in the best possible way. The cost of acquiring
them and the returns should be compared. The channels which generate
higher returns should be preferred. The technique of capital budgeting may
be helpful in selecting a project. The objective of maximizing profits will be
achieved only when funds are efficiently used and they do not remain idle at
any time. A financial manager has to keep in mind the principles of safety,
liquidity and soundness while investing funds.
Helping in Valuation Decision
A number of mergers and consolidations take place in the present
competitive industrial world. A finance manager is supposed to assist
management in making valuation etc. for this purpose; he should understand
various methods of valuing shares and other assets so that correct values are
arrived at.
Maintain Proper Liquidity
Every concern is required to maintain some liquidity for meeting day-to-
day needs. Cash is the best source of maintaining liquidity. It is required to
purchase raw material, pay workers, meet other expenses, etc. A finance
manager is required to determine the need for liquid assets and then arrange
liquid assets in such a way that there is no scarcity of funds.
AIMS OF FINANCIAL MANAGEMENT
The primary aim of financial management is to arrange as much funds for
the business as are required from time to time. The financial management
has the following aims:
Acquiring sufficient funds
The main aim of financial management is to assess the financial
needs of an enterprise and then finding out suitable sources for raising
them. The sources should be commensurate with the needs of the
business. If funds are needed for longer periods then long-term sources
like share capital, debentures, term loans may be explored. A concern
with longer gestation period should relay more on owner’s funds instead
of interest-bearing securities because profits may be there for some years.
Proper Utilization of Funds
Though raising of funds is important but their effective utilization is
more important. The funds should be used in such a way that maximum
benefit is derived from them. The returns from their use should be more
than their cost. It should be ensured that funds do not remain idle at any
point of time. The funds committed to various operations should be
effectively utilized. Those projects should be preferred which are
beneficial to the business.
Increasing Profitability
The planning and control of financial management aims at
increasing profitability of the concern. It is true that money generates
money. To increase profitability, sufficient funds will have to be
invested. Finance function should be so planned that the concern neither
suffers from inadequacy of funds nor wastes more funds than required. A
proper control should also be exercised so that scarce resources are not
frittered away on uneconomical operations. The cost of acquiring funds is
more, and then profitability will go down. Finance function also requires
matching of cost and returns from funds.
Maximizing Firm’s Value
Financial management also aims at maximizing the value of the
firm. It is generally said that a concern’s value is linked with its
profitability. Even though profitability influences a firm’s value but it is
not all. Besides profits, the type of sources used for raising funds, the cost
of fund, the condition of money market, and the demand for products is
some other considerations which also influence a firm’s value.
FINANCIAL MANAGEMENT IN SITARAM BAJAJ
Departmental structure
Capital structure
Sitaram Bajaj is under the management of Sitaram Group. This is
considered as a family business enterprise. So there is no chance of
public borrowing, there by no need of formalities for issuing shares or
debentures, making dividend decision etc. Their capital structure consist
30% own fund and 70% loan fund i.e. borrowed fund. Land and building
of Sitaram Bajaj is owned by Sitaram Group.
Source of fund
The sources of fund of Sitaram Bajaj are own fund, commercial banks,
financial institutions, loans from friends and relatives etc. The major
commercial banks are AXIS and HDFC.
Accounts of Sitaram Bajaj
Sitaram Bajaj giving much importance to keeping accounts properly.
They appoint professionals for proper maintenance of accounts and records.
All payments and receipts are made through cheques, so each point of
transaction should be kept in to records. Daily datas regarding sales should
be sent to regional offices. They use accounting software such as TALLY
for accounting work.
Working Capital Arrangement
Funds needed for short term purpose for the purchase of raw materials,
payment of wages and other day-to-day expenses, etc. these funds are known
as working capital. In the words of shubin, “working capital is the
amount of funds necessary to cover the cost of operating the
enterprise”. In case of Sitaram Bajaj, they are not at all a manufacturing
concern there by they don’t need a lot of money as working capital. The
fund for meet the daily needs is available from sales amount. And balance
amount is available from their banks.
SERVICE DEPARTMENT
Sitaram Bajaj is mainly concentrate on providing better services to
consumers. They are the authorized dealers of Bajaj Auto Ltd. Now-a-days
two wheeler industries become more competitive. So not only the product
quality, the services provided by the dealers is also important. This concern
is well aware of it. So it tries to give maximum services to consumers.
Sitaram Bajaj offers a lot of servicing facilities to consumers. Consumer
didn’t face any difficulty during the transaction. All the formalities of
transaction and registration are done by the staffs of the concern.
When the consumers entering in to the show-room, the hostesses are
receiving them. The executives of sales department explain the features of
various bikes. They also provide the demonstration. If the consumer is
satisfied, he will take the buying decision. If the purchase is bound by cash,
all other formalities are done by the sales department.
Or if it is not a cash purchase the finance is arranged by the finance
provides such as HDFC, Bajaj Auto Finance etc. The registration formalities
of two-wheelers are looking after by the dealers. It is in two ways.
In case of cash purchase the registration formalities are looking after by
the sales department. In other case, the formalities of the registration are
looking after by the finance providers. In both cases the consumers are free
from tensions; the only responsibility of them is providing the required
documents and proofs.
After completing the registration formalities the vehicle is delivered to
customer.
After sales services
The success mantra of Sitaram Bajaj is searching for new customers at the
same time retaining the existing customers through proper service and care.
Sitaram is well equipped and technologically driven. Work specialization is
one of the important concepts followed in Sitaram for effective functioning
of service department.
The service department has been divisionalised in to accident vehicle
section, entry level bikes, executive level bikes and premium level bikes.
Each separate section is headed by a supervisor. One of the main important
advantages for the service department is that using of pneumatic tools and
specialization in work. Due to this they can provide good service to the
consumers as well as vehicle. Paid services are taking place in the showroom
and the free services are provided by the Bajaj Authorized Service Station
(B A S S). The workshop/service centre has been upgraded to “ideal plus”
standard recently. There are only two ideal plus workshops in Kerala ad with
the co-operation of the dedicated staff Sitaram is one amongst two.
About the working of the department, each and every vehicle entered in to
the department and delivered is recorded at the gate. A job card is opened for
each work and a store indent is maintained. This store indents facilities the
details regarding the vehicle. Bajaj is providing two hours service for the
normal complaints of the vehicle giving free services. Another one of the
important service rendered by the department is collection of customer feed
back through direct enquiry and sales executive generated enquiry.
In this we have seen Sitaram Bajaj is focused on sales and services. So they
can retain the customers at every point by giving appropriate services to the
customers.
HUMAN RESOURCE MANAGEMENT
Human resource is of paramount importance for the success of any
organization. It is a source of strength and aid. Human resources are the
wealth of an organization which can help it in achieving its goals. Human
resource management is concerned with the human beings in an
organization.
According to Flippo, “ human resource management is
the planning, organizing, directing and controlling of the
procurement, development, compensation, integration,
maintenance and reproduction of human resources to the
end that individual, organizational, and societal objectives
are accomplished”. The definition revels that human resource
management is that aspect of management which deals with planning,
organizing, directing and controlling the personnel function of an
enterprise. The purpose of these functions is to assist in the achievement
of basic organizational individual and societal goals.
FUNCTIONS OF HRM
HRM has a crucial role to play in the organization. So following
functions can be associated with HRM.
Identifying and developing persons
The success of every organization depends upon the quality of
persons it employs. HRM helps in spotting right persons for right jobs.
Persons are given right type of training so that they are able to develop
their potentialities to the maximum.
Retaining suitable persons
HRM not only helps in procuring suitable persons but also useful in
retaining them. There may be redundant workforce because of various
developments, efforts should be made to offer golden handshake to
them.
Creating work culture
Human resource policy is backed by human values, understanding
and concern for the welfare of people. Persons in the organization will
reciprocate by improving their efficiency, motivation, self-co-ordination
and greater co-operation. The work culture in the organization improves,
people feel satisfied and enjoy their work.
Educating managerial personnel
HRM approach will succeed only when managerial personnel
change their attitude towards workforce. There is a need to educate
executives, managers and top management regarding various aspects
of human resources approach adopted in the organization.
Conducting research
HRM will be successful only if we know the aspirations and
expectations of various persons working in the organization. The framing
of human resource policies, strategies and approaches depend upon the
information controlled through research.
Developing a communication system
There is a need to develop downward, upward and lateral
communication in the organization. HRM develops a system of
communication where policies of management are properly
communicated to the lowest level of hierarchy and feedback from lower
levels is conveyed to the top management. Communication system helps
in understanding the view points of each other and taking up remedial
steps, if needed.
HRM IN SITARAM BAJAJ
In case of Sitaram Bajaj all HR activities such as selection, placement,
training etc are handled by the concerned department it self. The HR
department is headed by the HR manager. Around 124 employees are
working in Sitaram Bajaj.
Selection of employees
The applications are invited from candidates through news papers.
After receiving the written application form, the management scrutinizes
each application form. Eligible candidates get interview call.
Interview
The management conducts an interview for getting the right persons.
In interview, the board measures the ability, talents, qualification,
personality, aptitude etc.
Checking references
Before the final selection, the interview board checks the reference letter
from previous institutions, where the candidates worked. They normally
make an investigation on the references supplied by the candidate and
undertakes search in to his past employment, education, personal
reputation etc.
Placement
The candidates, who were success all these procedures get the
placement as employee of Sitaram Bajaj.
Training
The fresher employees will get 20 days training provided by the
concerned department. This training is purely an on the job training.
Sitaram Bajaj provides refreshment training for existing employees. This
refreshment training is conducted once in quarterly.
Motivation
Sitaram Bajaj use financial motivators and non financial motivators for
motivating employees. Financial motivators like bonus and incentives are
provided by the management. Employees work is recognized by their
superiors. The employees get the chance of participating in decision
making process. Employees are given certain objectives and every body
tries to achieve them ahead of others. These techniques are motivating
employees.
Performance appraisal
They have a well structured system of performance appraisal. Each
department keeps a daily graph for each employee. The head of the
department record the performance of employee on each day. The
appraisal of employee is conducted in every month. The decisions
regarding incentives are made after the appraisal of performance.
Wage and salary administration
Sitaram Bajaj provides fixed salary for employees. Apart from salary
they give bonus and incentives. Incentives are purely on the basis of
performance. Incentives are given 15th of every month.
Salary structure
Sales
Promotion
The staffs of the Sitaram Bajaj get promotion to just above their post.
They adopt merit based promotion. The promotion is purely based on the
performance of the employees.
SYSTEM DEPARTMENT
The all activities in Sitaram Bajaj are controlled and coordinated by
system department. This department is headed by a system administrator.
Their showroom is fully automated. This department is connected with
internet.
ADVANTAGES OF SYSTEM DEPARTMENT
Setting up a system department involves a lot of hard work and pain. The
benefits of possessing a system department, more than make up for the
efforts. System facilitates the sharing of files, programs and resources.
System departments provide many advantages.
Sharing files
System department facilitates information sharing with other
computers connected to the network. Information can be shared in
different ways. The most direct method is to transfer files directly from
one computer to the other. The second method is to send the file to an
intermediate place of rest from where the other people can pickup the file
later.
Sharing resources
This implies that certain computer resources such as printer, disk
drive. CD-ROM drives, modems etc can be shared through network.
Sharing programs
Some times, it is better to save programs that every one uses on a
shared disk, rather than keep separate copies of the programs on each
computer.
Backups
As all data is stored on the server, backing up critical data becomes a
simple process.
Communication
The biggest benefit, however, comes in the form of better
communication facilities such as electronic mail and groupware
applications.
TYPE OF NETWORK
The type of network used by Sitaram Bajaj is LAN. LAN is a system of
networked computers and other hardware resources spread in small area
such as a building. LANs allow users to share important computing
resources such as printers, application programs, CD-ROM drives and the
information users require to do their work. LAN and LANs network is not
only powerful but also user friendly.
OFFICE AUTOMATION FACILITY
Office automation is defined as using computer and communication
technology to help managers and executives for a better use and
management of information. Office automation technology includes all types
of computers, telephones, electronic mail, other office machines and
equipment.
In case of Sitaram Bajaj their office is fully automated. They use
document generating devices like type writers; communicational devices
like postal services, telephone. Electronic mail, cellular phone; and
accounting devices like calculators and computers.
INTERNET CONNECTIVITY
In Sitaram Bajaj, they use broad brand as internet connection. Large
volume of data can be transmitted through broad brand. It has high
transmission rate also.
OPERATING SYSTEM
In Sitaram Bajaj, they use WINDOWS 98 as operating system of their
computers.
SOFTWARE
Sitaram develop their own software to meet their business needs. The
software is SYSCON and it is licensed.
NUMBER OF WORK STATIONS
In Sitaram Bajaj, there are 40 work stations. These 40 work station are
controlled by a server.
TYPE OF SERVER
In Sitaram Bajaj, they use WINDOWS XX as server. Sitaram Bajaj
running with only one building so their work station architecture is two-tier
architecture. It means only one server and some work stations.
SECURITY SYSTEMS
The all computers in Sitaram Bajaj are protected through password. All
files stored in computers are protected from virus attacking. The advanced
and updated anti-viruses such as NORTON are used for this purpose.
SYSTEM BACKUP FACILITIES
The documents and data’s about the transactions are kept as backups.
SPARES DEPARTMENT
Sitaram Bajaj is a number one dealer of Bajaj in Kerala. Apart from two-
wheelers, they have the dealership of spare parts of Bajaj. There is around
10606 spare parts available in Sitaram Bajaj. They are considered as VOR
hub (vehicle off road hub). Around 30 employees are working under this
spare department. The spares division is one of the outstanding performers
in Sitaram Bajaj.
DEPARTMENTAL STRUCTURE
DUTIES OF SPARES DEPARTMENT
According to their need, daily send purchase order to Bajaj.
Proper inventory maintenance.
SWOT ANALYSIS OF SITARAM BAJAJ
A scan of the internal and external environment is an important part of
the strategic planning process. Environmental factors internal to the concern
usually can be classified as strengths (S) or weakness (W) and those external
factors to the firm can be classified as opportunities (O) or threats (T). Such
an analysis of the strategic environment is referred to as SWOT Analysis.
STRENGTHS:
One of the main strength of Sitaram Bajaj is the location of their
showroom. The showroom situated in the heart of the Thrissur
city there by management can know about the pulse of the
market. This showroom is well noticed by consumers.
The dedicated and efficient employees are another strength or
company. The staff of Sitaram Bajaj is highly sincere to their
work so the consumers are satisfied with their service.
Sitaram Bajaj provides utmost service to the consumers. They
look after all the legal formalities of the transaction.
All the activities of Sitaram Bajaj are well co-ordinate by the
management. This will increase the quality of service.
WEAKENESS:
Availability of adequate fund is on of the weakness of Sitaram
Bajaj.
Labour turnover due to monotony of job, lack of fair
remuneration.
OPPERTUNITIES
Bajaj is one of the well known brands in two-wheeler industry. So
consumers have the loyalty to that brand. This will help them to
sustain in market.
The sales promotional activities such as advertisement, offers etc
will increase the demand.
THREATS
Decreasing price trend of four-wheelers are one of the major threats
faced by Sitaram Bajaj. When the price of four wheelers is affordable
to common people, then they will prefer four wheelers. This will
decrease the demand for two-wheelers.
The high competition between the various two-wheelers available in
market such as TVS, Hero Honda, Yamaha.
FINDINGS
In Sitaram Bajaj there is only a low provision for advertisement.
There is no grievance handling. So employees can’t get a chance to
share their problems.
There is trade union impact.
The management takes care about the selection of employees.
They have a procedure for selecting employees.
Labor turnover rate in Sitaram Bajaj is high.
Fair salary is not available to employees
SUGGESTIONS
Provide adequate amount for sales promotional activities.
Information provide in the advertisement must be more
accurate and reliable which increase customers trust towards
the company in news paper.
The management should take necessary steps for decreasing the
labor turnover.
The fresher’s got only 20 days on the job training by the staffs.
This will improve.
The HR department should solve the employees grievance
the authorities should improve the ware house facility
CONCLUSION
Sitaram Bajaj is the only dealer for Bajaj in Thrissur. They follow Triple
“S” basis, which indicates sale. Services $ spares. I have completed our
organization study with great pleasure. This study clearly reveals the fact
that Sitaram Bajaj is a prominent leader of two-wheeler, in Thrissur. There is
a clear indication of increasing market share and good will of the company.
The management of the company entirely deserves a credit of their victory.
The grater achievement will come through only “effectiveness in marketing”
by adopting various marketing techniques which include effective sales
promotion, effective performance evaluation between target and actual sale.
Target achievement award/gift and finally through effective service after
sale.
BIBLIOGRAPHY
1) Dr. V. Radha, P.T. Oommen and N.S. Nair, marketing
management, Prasanna Publishers, Chennai, 2005 edition.
2) Shashi K.Gupta and Rosy Joshy, Human Resource
Management, Kalyani Publishers, Ludhiana, 2003 edition.
3) Abdul Assis Koroth, Information Technology For
Management, Calicut University Central, 2004 edition.
4) Shashi K. Gupta, R.K. Sharma and Neeti Gupta, Financial
Management, Kalyani Publishers, Ludhiana, 2007 edition
5) Www. Sitaramgroup.com
6) Company profile, annul reports