Organisation Study Report on Star PVC Pipes

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Organisation Study Report on Star PVC pipes & fittings Internship 2011 CONTENTS CHAPTERCONTENTS PAGE NO EXECUTIVE SUMMARY 2 Chapter I INTRODUCTION 3 1.1 IndustryProfile 4 1.2 Company Profile 5 Chapter II STRUCTURE OF THE ORGANISATION 11 2.1Organizational Structure 12 2.2 Organizational Chart 12 2.3 Organizational Outlook 13 2.4 Dutiesand Responsibilities of Dept. Heads 13 Chapter III FUNCTIONAL DEPARTMENTS 16 3.1Finance Department 17 3.2 Accounts Department 18 3.3 Marketing Department 18 3.4 Human

Resource Department 26 3.5 Production Department 27 3.6 Purchase Department 29 3.7Systems Department 31 Chapter IV PORTERS FIVE FORCES MODEL 32 Chapter V SWOTANALYSIS 40 Chapter VI FINDINGS AND SUGGESTIONS 43 Chapter VII CONCLUSION 45Chapter VIII BIBILIOGRAPHY 47 Ramaiah Institute of Management Studies1SBS Swiss BusinessSchool

2. Organisation Study Report on Star PVC pipes & fittings Internship 2011 EXECUTIVESUMMARY The organizational study was conducted at STAR Plastics, Thrissur, Kerala.

Theobjective of the study is To study the organizational structure. To study about thestructure and functioning of various departments. To study how the management controlvarious departments for the attainment of the organizational objectives. The organization is intoPVC pipes and fittings manufacturing. PVC is anorganochlorine, which was first patterned in 1913by Fritz Klatte. However, its developmentfor hindered by pure PVCs chemical instability and its

low workability. During the 1930s,German experiments with various stabilizers and softeners leadto the first useable forms ofPVC. By the early 1950s PVC was second only to polythene, as themost important syntheticproduct in Germany. It is now the single largest use for chlorine today,using about 1/3 of allglobal production. About 40 million tons of chlorine is produced by thechemical industryevery year. PVC development was part of the huge expansion of the chlorineindustry afterthe Second World War. PVC, Dichloro Diphenyl Trichloroethane (DDT) andChloroFluoroCarbons (CFCs) are all products of post war boom in the chlorine industry.Currentlythere are over 11,000 oregano chlorines now in commercial use. Organo chlorines areusefulto industry because they tend to be very stable and the resist natural breakdown process.Star Plastics have seven functional departments and its the leader in PVC pipes &Fittings insouth India. Star Plastics is the first PVC pipe fittings manufacturer in south Indiato receive ISO9002 certification. While globalization and economic slowdown in the worldmarkets threw up new

challenges the STAR group is busy chalking out plans to translatethese challenges in toopportunity. The company is going to make a centralization system ofthe software network thatthe progress of work at any levels, at any units, at any centers canbe viewed from the corporateoffice itself. Each and every aspect of the business can bechecked from the corporate office.Atpresent company is able to later about 10% of themarket requirements. In order to later thecomplete needs the company is planning to increasethe production level to maximum extentpossible. The company is planning to increase thepresent product level of Dubai units. Theresearch and development team of STAR group isengrossed in developing new product for theinternational markets. Ramaiah Institute of Management Studies2SBS Swiss Business School

3. Organisation Study Report on Star PVC pipes & fittings Internship 2011 CHAPTERIINTRODUCTIO N Ramaiah Institute of Management Studies3SBS Swiss Business School

4. Organisation Study Report on Star PVC pipes & fittings Internship 20111.1Industry ProfilePlastics, in the modern meaning of the word, are synthetic materials that arecapable of beingformed into usable products by heating, milling, molding andsimilar processes. The term isderived from the Greek plastic, to form in simplestterms; plastics can be described as resins intheir molded form. The wonders of plastics cut across all sectors of society. It is a materialofchoice due to its versatility, its physical strength, its economic viability; its easyprocess abilityand also its attractiveness and durability of all weather condit ions.With the globalization of Indianeconomy and television entering into homes andtiniest villages and communications demand forthe materials for suitable functionaluse more economic packing, durable all weather products has
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meant increasingdemand for plastics. Packing of cement bags, the end user is demandingplastics instead ofconventional jute, because it prevent transits loses and wastages. The hillyregionsof East India or drought prone districts of Rajasthan, Gujarat, and Tamil Nadudemand automolded tanks in thousands each day. The agriculturists of HimachalPradesh insist on plastic pipesfor irrigation to their farms, the floriculturists ofKarnataka and Maharashtra cannot thrive withoutultraviolet stabilized polythenewide width films for huge tunnels and green polymers consumption

and import. The Plastic industry in India has made significant achievements ever since itmade amodest but promising start by commencing production of polystyrene in1957. The potentialmarket has motivated Indian entrepreneurs to acquire technicalexpertise. Achieve high qualitystandards and build capacities in various facts of thebooming plastic industry. Phenomenaldevelopment in the plastic machinery sectorcoupled with matching development in petrochemicalsectors, both of which Ramaiah Institute of Management Studies4SBS Swiss Business School

5. Organisation Study Report on Star PVC pipes & fittings Internship 2011supports the plasticprocessing sectors, have facilitated the plastic processors tobuild capacities to service both thedomestic market and overseas.The chronology of manufacture of polymers in India is summarizedas under. 1957 : poly styrene 1959 : LDPE 1961 : PVC 1968 : HDPE 1978 : polypropylene Theeconomic reforms launched in India since 1991, joint ventures, foreigninvestments, easier acrossto technology from developed countries etc. have openedup new vistas to further Indian plastic

industry are exported to over 150 countriesround the globe with major trading partners beingUSA,UAE, Italy,UK,Russia,Honkong, Germany etc. The plastic processing sector comprises ofover 30000 unitsinvolved in producing a variety of items through injections molding, blowmolding,extrusion and calendaring. The capacities built in most of this industry coupledwithinherent capabilities have made us capable of servicing the overseas markets.Thedevelopment of plastics took place in 1920s with the introduction of celluloseacetate,polyvinylchloride and nylon. Polyethylene evolved out of the need for a superior insulating materialcouldbe used for such applications as radar during World War II. The decade of the1950s sawthe introduction of poly propylene and the development of acetyl andpolycarbonate. In 1960s and1970s a sub group of plastic family started to emerge,called high temperature plastics, whichincludes polyamides, aromatic polyesters,polyether siphoned etc.1.2Company Profilea)Background of the company: The history of STAR is the history of pipe fittings production in southIndia.In 1983, Vikas plastics and Star plastics amalgamated to form Star plastics, RamaiahInstitute of Management Studies5SBS Swiss Business School

6. Organisation Study Report on Star PVC pipes & fittings Internship 2011Mullurkara that is20kms away from Thrissur town, the cultural capital of Kerala. In1988, star became the numberone PVC pipe fitting manufacture in south India it hasreceived the best ISI mark for quality. In1994 star began the production andmarketing of flexible hoses under the brand name STARFLEX. In 1998 takingadvantage of the wings of globalization star started star impex and forayedinto theglobal market. Growth being as the key strategy the visionary Mr.P.K.Paul nurturedstarplastics into a corporate level. After the demise of Mr. P K Paul his eldest sonMr. Bobby Paul tookthe charge of the chariot. His brother Mr. Anto Paul alsoassists in the day to day activities of thecompany .Presently the group consists ofvarious companies like Star Plastics, Star Flex, ShineStar, Star Exporters& FinePolymers, A new group venture of star group of companies for the

purpose ofexporters In the year 2000, to take on the challenge of globalization, star set up acoreteam and applied core ISO certification. In August 2001, star became the first PVCfittingsmanufactures in south India to receive the IS O 9002 certification. Starplastic is the market leaderin Kerala, Tamilnadu & the market challenger in AndhraPradesh and Karnataka. The companyhas made its presence significantly in MiddleEast market having a branch office at Dubai. It is amulti -core, multi-ProductCompany which has been deeply involved in the manufacture,distribution, sale, andinstallation and servicing to bring the customer satisfaction andsocialresponsibilities. In the last one decade unparalleled growth was witnessed in star gr oupofcompanies to emerge as a leader in the PVC fitting and to diversify into themanufacture of
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suction hoses, drainage fittings and PVC pipes. Star plastics are agroup of companies with aturnover of 30 crores per annum and with manpowerstrength of 450 employees including 50 highcaliber professionals. It has a32%growth due to the young and dynamic MDs expansions andgrowth plans. Thecompany increased its production capacity over 50% in just two years incurringhugeadditional investments. Presently it is enjoying the benefits. At the end of currenthalf year agrowth rate of 35% when compared with the last year is witnessed. The companys operations

include manufacturing of PVC fittings and alliedproducts in clearly defined core business areas athome and overseas. The star groupof companies is the single largest plastic industry in privatesector over the years, Ramaiah Institute of Management Studies6SBS Swiss Business School

7. Organisation Study Report on Star PVC pipes & fittings Internship 2011star group has steadilydeveloped in to a professionally managed companycomprising of 8 manufacturing unit in 3production centers wit h a total installedcapacity of 3850 meter per annum- 8divisions andeffective centralize supportservices wholly dedicated to the most existing standards of quality andcustomerservices, constantly motivated by the need to ensure total product satisfacti on.b) Stargroup of companies:Star Plastics: - star plastics, the parent company of the group wasincorporated in1983, and within these 21yrs it has grown up as one of the largest pacefittingsmanufacturing companies in India and its products are approved by these authorities.ShineStar: -shine star is another unit of star plastic, which is manufacturing pipefitting. This has been

started as another manufacturing fitting unit.Star Flex: - star flex is totally a new venture,manufacturing flexible s olution anddelivery hoses ranging from to 4 sizes. As on today theabove companies aremaking a combined sales turn over approximately worth of 30 crores peryear.Star Polymers: -It is the unit of star plastics. It is manufacturing pipe fittings.Star Plus: - starplus is another unit of star plastics. It is also manufacturing pipefittings. The different units hadbeen given different names in terms of marketing.c) Nature of business carried:STARThis wordis the combination of basic concepts and fundamentals believedby its founder and carried overacross the years, it has sailed hitherto and for thefuture such as S - Service T- Transparency A -Accountability R - Reliabilityd) Star which means: Ramaiah Institute of Management Studies7SBSSwiss Business School

8. Organisation Study Report on Star PVC pipes & fittings Internship 2011 Provider of basicrequirement of all PVC related fittings, pipes, and allied products. Unstinted and continuedsupply and service since last 2 decades. Believer and Promoter of quality products than givingsimple propaganda. The First PVC pipe fittings manufacturer in south India who is operationaland reaching newer heights year after year. The First PVC pipe fittings manufacturer in southIndia to have received ISI mark. The First PVC pipe fittings manufacturer in south India to havereceived ISO mark. An entity who gave to its customers qualitative products & value addedservices. To have received the best appreciation from its people.e) Vision, Mission and QualityPolicy:Our vision is to maintain the hegemony as the most reliable provider of high qualityPVCproducts to meet the diverse requirements of potable water distribution, domesticplumbing,bore wells and lift irrigation purposes. We aim to make each of our products a paragonofquality and technical excellence. Through our constant Endeavours of research andinnovationwe strive to come up with new products that help architects and builders keepahead of thetimesMission: - serve water projects, construction activities and agriculture on global level

toensure customer satisfaction.Quality policy: To manufacture and market goods, which complywith the consumers requirements. To achieve customer satisfaction is the basic philosophy of theorganization. In the last one decade, unparalleled growth was witnessed in STAR group ofcompaniesto emerge as a leader in the PVC fittings and to diversify in to the manufacture ofsuction,drainage fittings and PVC pipe. STAR PLASTICS is a group of companies with a turnoverof75 cores per annum and with a manpower strength of 450 employees including 50 highcaliberprofessionals. Ramaiah Institute of Management Studies8SBS Swiss Business School


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9. Organisation Study Report on Star PVC pipes & fittings Internship 2011f) Product/Serviceprofile: Star plastic product constitutes plumbing equipment materials such as PVC pipes,fittings,S.W.R fittings and PVC adhesive. Star fitting is leading names fittings over all thestates. STARPVC pipe fittings are manufactured from the finest grade PVC resin trusted andacclaimed all overthe-country for quality. Due to high tensile strength and reliability used inindustry, homes etc.STAR fittings are available in above 10 shapes and measures vary from 20mm to200mm. These

are also available in 3 different colors. Injection modulated STAR PVC pipefittings confirm to ISIspecification and assure totally safe, non-toxic water for all purposes.g) STAR-Plastic-Products:The company concentrates on the manufacturing of a wide range of PVC pipes andfittingsand allied products. Their products are basically categorized as STAR Drainage fittings BS4514 STAR Pressure Fittings BS4344 STAR Pressure Fittings STAR SWR Fittings STAR Flexsection & Delivery Hose STAR Solvent cement STAR PVC pipesh)Production centers: STARplastics Mullakkara, Thrissur STAR plastics, the parent company of the group was theincorporated in 1983, andwithin these 24 years it has grown up as one of the largest PVCfittingsmanufacturingcompanies in India and its products are approved by ISI authorities.Manufactures the PVCpipe fittings, drainage fittings, SWR fittings, Pressure fittings, solventcement. Lisna Inc. issituated in same premise. Shine Star Minaloor, Thrissur Ramaiah Institute ofManagement Studies9SBS Swiss Business School

10. Organisation Study Report on Star PVC pipes & fittings Internship 2011 STAR manufacturesthe PVC pipe fittings, SWR fittings, Pressure fittings. Also manufactures PVC granules mainlymaster batches. SILVERSTAR, NEW STAR, FINE POLYMERS, LISNA TECH are situated in thesame premise. Star Flex, Velappaya, ThrissurSTAR Flex manufactures the PVC flexible hoses,suction and delivery hoses ranging from0.75 to 4 inch diameter. Star Pipes, Choolissery, ThrissurSTAR pipes manufacture the rigid PVC pipes for plumbing and electrical purpose.Its a semi-automatic manufacturing unit which manufactures rigid PVC pipes ranging from20mm to 200mm.Star pvc pipe fitting (p) ltd, sri perumbathur, chennai Manufactures the rigid PVC pipes forplumbing and electrical purpose its a semi-automatic manufacturing unit which manufacturesrigid PVC pipes ranging from 20 mm to200mm.This unit does the production for TAMILNADU andKARNATAKA. Star Implex industries llc, Dubai, UAE Manufactures the rigid PVC pipes forplumbing and electrical purpose its a semi-automatic manufacturing unit which manufacturesrigid PVC pipes ranging from 20 mm to200mm. also manufactures the PVC pipe fittings andsolvent cement. This unit does theproduction for the Middle East Asia, Africa and Europe. Eachdivision is self-reliant in itsactivities of research and development, Manufacturing and marketing,now moving for totalautomation and integration. STAR group of company is structured in tobusiness unitscomprising synergistic group of responsibility centers, division backed up by anextensivemarketing infrastructure and front line support services. Ramaiah Institute ofManagement Studies10SBS Swiss Business School

11. Organisation Study Report on Star PVC pipes & fittings Internship 2011 CHAPTERII

STRUCTURE OF THE Ramaiah Institute of Management Studies11SBS Swiss Business School

12. Organisation Study Report on Star PVC pipes & fittings Internship 2011ORGANISATIO N2.1Organizational StructureThe STAR group follows absolute dedicated approach. The organization

of its manufacturingoperations is based on product divisionalisation in to group of products inwhich are similarin technology or manufacturing process. Each group is constituted by divisions orprofitcenters. Each of these group, are led by absolute manager. A central manager leadsthecorporate function. Some of these functions in turn are reported to the managing director.2.2Organizational Chart Ramaiah Institute of Management Studies12SBS Swiss Business School

13. Organisation Study Report on Star PVC pipes & fittings Internship 2011 DIRECTOR MG-DIRECTOR GENERAL MANAGER HR FINANCE PURCHASE PRODUCTION MARKETINGACCOUNTS SYSTEM ASST FIANCE PURCHASE PRODUCTION MARKETING CHEIF
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MANAGER MANAGER MANAGER MANAGER MANAGER ACCOUNTANT (SYSTEMS)2.3Organizational OutlookManaging Director - BOBBY PAULOther Directors - Anto Paul & RosyPaulGeneral Manager - K.B. Suresh KumarMarketing Manager - C.L.GeorgeFinance Manager -Biju ThomasAccounts Manager - A.C. ChummarEstablished in - 1984Main production - PVC pipefittings and adhesives Ramaiah Institute of Management Studies13SBS Swiss Business School

14. Organisation Study Report on Star PVC pipes & fittings Internship 2011Raw materials forproduction - Resin and other chemicalsProduction range - Wide range of productsPresentproduction - Best in southern India with 85 percentOf total productionNumber of machines - 202machines with generation backupNumber of office staff - 50Number of workers at factory -400Trade discount - 50%Special discount forPayment within one week - 5%2.4Duties andResponsibilities of Departmental Heads 1) Finance Manager He is responsible for financialmatters in the organization. He prepares financial plan. He assesses the financial needs of theorganization and sources of the finance. He should be an expert in the field of financialmanagement. He should know different tools used in the financial management ratio analysis,fund flow analysis, cash flow analysis, Budgeting etc. All these are necessary to prepare a soundfinancial policy for the organization. He is also responsible for financial planning, raisingnecessary fund, controlling the use of funds, appropriation of profits etc. Other functions includefinancial forecasting and planning, procurement of funds, investment decision, management of

income, management of cash, deciding upon borrowing policy, negotiations for new financing,analysis and appraisal of financial performance, advising the top management, co-coordinatingand control, helping in valuation decisions, and tax administration. 2) Accounts Manager He isresponsible for keeping the details of day book, ledger and P.F registers. Moreover, he shouldrecord and maintain all the details of the sales tax calculation and related documents and producethem on demand. Ramaiah Institute of Management Studies14SBS Swiss Business School

15. Organisation Study Report on Star PVC pipes & fittings Internship 2011 3) Marketing ManagerHe is charge of the marketing department of the organization. The marketing department aims toincrease the turnover of the organization, market share, and profitability of the organization. Themarketing manager should be tactful. He should know marketing concepts product mix, promotionmix, price mix, distribution mix etc. He should be known the strength and weakness of the firmsproducts. He is also able to design and implement market strategies to enhance turn over andcapture new markets. 4) Human Resource Manager A human resource manager occupies a veryimportant position in an organization. The duty of the human resource manager is to recruit anddevelop Personnel required by the organization. They are involved in manpower planning,training, maintenance, compensation etc. The other responsibilities of the human resourcemanager are formulation and development of personnel policies, employees training anddevelopment, transfer, promotion, etc., maintaining personnel records of each employee in theorganization, establishment of good relation with employees, effective communication of thepersonnel policies and programmers of the management to employees, responsible for advisingline manager, responsible for welfare activities and responsible for solving the problem ofemployees. 5) Production Manager He is responsible for the production of goods services in theorganization. He looks after the purchasing function and manages the production design andprocess. He is called in different names such as production engineer, plant engineer, operation

engineer etc. They are responsible for plant layout, inventory management, production control andquality control. 6) Purchase Manager Duties and responsibilities of the purchase manager are: Prepare purchase budget. Receive purchase requisition, and ascertain the materialrequirements. Ascertain the sources of supply. Invite tenders from the approved suppliers. Select the supplier offering the best terms and conditions. Issue purchase order to the supplierselected. Ramaiah Institute of Management Studies15SBS Swiss Business School

16. Organisation Study Report on Star PVC pipes & fittings Internship 2011 Follow-up thepurchase order to avoid any delay in delivery. Receive goods received note and the inspection


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report. Return the material which are not according to specifications or secure adjustment withthe supplier. Verify the invoice with regard to quality, price and other relevant particulars andpass it for payments. Send the invoice to the accounting section. Ramaiah Institute ofManagement Studies16SBS Swiss Business School

17. Organisation Study Report on Star PVC pipes & fittings Internship 2011 CHAPTERIII

FUNCTIONALDEPARTMENTS3.1 Finance Department Ramaiah Institute of ManagementStudies17SBS Swiss Business School

18. Organisation Study Report on Star PVC pipes & fittings Internship 2011 Finance departmentmanages the fund available for the operations of the business, by making a balance between thefund inflow and fund outflow. The management of all activities related to finance requiresconsiderable expertise and specialized knowledge of banks, financial institutions, the differentsources of finance and ways to profitability utilize these funds. Finance Manager directly does theplanning, organizing, directing and controlling financial activities in the society.OrganizationStructure:- GENERAL MANAGER FINANCE MANAGER FACTORY MANAGER BRANCHMANAGERFinance department is headed by finance manager. Finance manager reports to theGeneralManager and in certain strategy and urgent issues directly report to managing directorandtake decisions. Finance Manager works in the coordination with chief accountant,

productionmanager, marketing manager, branch managers.Sources of Finance:-STAR Plasticsfind sources of finance through banks and other private financial institutions.As it is a partnershipfirm, the partners contribute their funds to make capital requirementsand other expenditure withthe help of banks and financial institutions. STAR Plastics dealsall finance requirements withSouth Indian bank, Kerala State Financial Enterprises (KSFE)and State Bank of India. Vehicle

loans are provided by Cholamandalam finance.Companys Financial Policies:- Low cost ofoperation of funds. Efficient receivable management, through acceleration of funds. Fastersourcing of funds from institutions.Functions of Finance Department:- Ramaiah Institute ofManagement Studies18SBS Swiss Business School

19. Organisation Study Report on Star PVC pipes & fittings Internship 2011Finance function isconcerned with all aspects of business operations. It is very difficult to setlimits to the finance

function. The key activities under finance department are: Management of firms assetsstructure. Financial analysis, planning and control. Management of firms financial structure.Estimating capital requirement. Determining sources of fund. Utilization of fund. Disposalof surplus. Management of cash. Financial controls.3.2 Accounts DepartmentAccountsdepartment deals with day to day book keeping, daily collections, salaries of allemployees, etc.Accounts department is headed by chief accountant. He is assisted by fourassistant accountants.In each production centers and marketing branches have an accountantand cashier which doesthe daily function at the places Chief accountant works in coordination with finance manager, onthe fund flow issuesand in case of any shortage of cash occurs. Finance manager canalized theshortage fromfinancial institutions in case of emergency and normal cases, chief accountanttightness thepayment collections from the whole sellers and other sources. Other main function ofaccounts department is tax payments. They deal with thecentral sales tax, K VAT, excise andother department. Monthly returns are prepared by theaccounts department.3.3 Marketing

DepartmentMarketing department is entrusted with the function of planning and executingtheconception, pricing, promotion and distribution of ideas goods services, to createexchangesthat satisfy individual and organizational boards. In simple terms the marketing functioniscatered around the customer and his needs.Organization Structure: Ramaiah Institute ofManagement Studies19SBS Swiss Business School

20. Organisation Study Report on Star PVC pipes & fittings Internship 2011 MARKETINGMANAGER BRANCH MANAGER SALES EXECUTIVE REPRESENTATIVESMarketingPolicy:STAR Lights to reduce the number of intermediaries, so they have no distributors. Billing
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isdirectly done to the wholesalers and retailers. In case of other state sales, its a one throughthebranch offices. No direct export to any customers. STAR is operating by exporting to thebranchoffice at Dubai, STAR IMPEX INDUSTRIES L.L.C. and billing directly to thecustomers. In the caseof logistics the supply of products is done through company ownedfeet of vehicles. Same policyfollowed with inter-state also.Functions of Marketing Department in Star Plastics: The majorfunctions are explained below: 1. Demand Forecasting 2. Marketing Research 3. Marketing

Control1.Demand ForecastingDemand forecasting is the main function of marketing in STARplastics .It should be donethrough sales force in the company such as sales representativessales executives etc.collecting information from customers. On the basis of this informationdemand forecastingis to be done.2. Marketing Research Ramaiah Institute of ManagementStudies20SBS Swiss Business School

21. Organisation Study Report on Star PVC pipes & fittings Internship 2011Marketing research ismore comprehensive composing all the functions of a marketingmanager that is it covers product,price, sales, market, promotion, distribution policies. It iscommonly says that marketing researchbegins where manufacturing ends. In fact itcommences well before the product is fabricated. Itgoes in to operation even before erectingthe factory. It covers analysis of competitive advantage,market share analysis and newproduct development. The main objectives of market research are:

To know buyers. To measure the impact of promotional effort. To know consumer

response. To know market costs and profits. To master external forces. To design andimplement marketing control.3. Marketing ControlVarious tools used for marketing control are costcontrol and a market share analysis. Costcontrol is one task for monitoring the cost of marketingand it is compared with planned coststandard, so as to identify deviations and take correctiveaction. Market share analysis is alsoused for marketing control.Objectives of Marketing:The basicobjectives of marketing are to satisfy human wants. The important objectives ofmarketing arebriefly explained below:1. Customer Satisfaction through Quality Products Marketing activitiesaims at achieving customer satisfaction by offering qualityproducts. It is also help more increasingprofit, increasing goodwill, increasing image of theorganization etc.2.After Sales Service Thisanother objective of marketing company provides after sales services to itscustomers. The serviceof the company does not end with process of distribution the companyhas been waited until goodresult comes by giving their products to consumer and theyalways rendered their services at the

time needed by the customers. The marketing and sales Ramaiah Institute of ManagementStudies21SBS Swiss Business School

22. Organisation Study Report on Star PVC pipes & fittings Internship 2011department keepstheir eyes and ears to open to know changes in the market. The complaintand suggestions if anyare well accepted by the company from their customers. There is anycomplaint about the sold

product the company will take it back at the companys costs. Method Of After Sales Service:For providing after sales service company may use thefollowing methods: Sending special staffto the customers. Arranging service with dealers/agents. Appointing in depending servicespecialists.3. Maintaining Price Leadership:Companys important objective is to maintain priceleadership. Company is always trying tobecome a price leader. It does not like become a pricefollower.4. Achieving Maximum Market Share: Companies another objective is to achievingmaximum market share. In order toachieve maximum market share, company will spend more on

advertising and offeringquality products to the customers.5. Other Objectives: Other objectivesinclude: Increasing firms sales. To guarantee firms survival. To fortify better resourceutilization. To meet customer needs.Present market condition:For their products STAR is facingdemand higher than supply, which is a healthy situation. Incase of seasonal products like suctionand delivery hose, demand exceeds supply. It tries tolater products to major customers. It is themain reason for expansion of production facilities.Market Segmentation: Ramaiah Institute ofManagement Studies22SBS Swiss Business School


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23. Organisation Study Report on Star PVC pipes & fittings Internship 2011 STAR is the dominantplayer in the South India. Geographically the market issegmented into five regions and branchofficers are responsible for marketing activities intheir regions. 1. Bangalore (Karnataka) 2.Chennai (TN) 3. Dubai (Middle East, Russia, South Africa etc.) 4. Nagari (AP) 5. Thrissur(Kerala)As per the consumers, market is segmented into three: 1. Government Works 2.Household Consumers 3. BuildersPresently highly concentrated on the builders, as the

construction industry is booming,appointed two sales executives exclusively for this sector andhave a considerable marketshare in the other two segments.Promotion:In STAR PLASTICSpromotion is done in the case of sale of products, in the case ofdealers,and in the case of saleforce.1. In the case of sale of productsSales promotion includes short term incentives likesdiscounts, free gifts and contests tostimulate sale of products. Sales promotion builds a bridgebetween the products andconsumers. In the case of STAR, sales and brand promotion is done byproviding informationabout the products through advertisement, demonstrations, organizationalshows etc.2. In the case of dealers Company provides incentives to their dealers and alsoprovides dealers with discount atthe time of purchasing the product from the company. Thecompany also provides after saleservices to dealers. It is based on the nature of product thecompany offers their dealers withreplacement facility after checking the product. Ramaiah Instituteof Management Studies23SBS Swiss Business School

24. Organisation Study Report on Star PVC pipes & fittings Internship 20113. In the case of salesforce: Company provides incentives to sales force. This includes the activities whichinduce andmotivate sales person. The aim of sales forces promotion is to make the salesmens effort most

effective. The various schemes of sales promotion are: Bonus to sales force. Sales forcecontest. Sales meetings, convention and conferences.Advertisement:In the case of STARadvertisement is the most glamour element of the promotion mix. Itcovers all the activitiesconnected with the giving of publicity regarding goods and servicesoffered for sale. Advertising istransmitting through mass media such as television,newspapers, magazines etc.AdvertisingPolicy:Each potential customer must see an advertisementBrand awareness is not much with thecustomers. Brand awareness to be created, its ingrowth stage. Advertisement focused oncreating the brand image and promoting the STARbrand for their entire product. Earlieradvertisement (Hoarding) were exhibited at districtheadquarters and important junctions.

Presently, apart from above mentioned places, at areasof potential customers, each retail andwhole sale outlet etc.Mode of Advertisement:1. Earlier as wall paintings, banners etc. nowchanged to huge flex hoardings. Reason for change is: a. Attractiveness. b. New technologyacceptance with change in market.c. Real and clear image of product. d. Quality advertisementgives better company image. Ramaiah Institute of Management Studies24SBS Swiss BusinessSchool

25. Organisation Study Report on Star PVC pipes & fittings Internship 20112. Newspapers:heading Malayalam newspaper, The Hindu, Indian Express.3. Website.4. Sponsoring cultural andinstitutional programs, management and dealers meet, plasticmanufactures association andexport promotion counsels meetings.5. Presently no visual media.Advertisement Budget:Budgetof advertisement depends mainly on market needs as its the growth stage need topromote thebrand. Once established the budget could be reduced followed poly is 3-5% ofnet

profit.Distribution Channel:Pricing Strategy: In STAR pricing strategy is a special kind of planformatted in order to meet thechanges of external factors particularly from the policies ofcompetitors. Pricing strategieschange with competitive situation. Some of the common pricingstrategy followed STARplastics are: 1. Competitive pricing. 2. Premium pricing.1. Competitivepricing:It depends upon market condition competitors price, seasonal variation etc. customersarevery much aware of the quality and price of the product.2. Premium pricing: Ramaiah Instituteof Management Studies25SBS Swiss Business School


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26. Organisation Study Report on Star PVC pipes & fittings Internship 2011In the case of suctionand delivery hose, adopted a premium price strategy to utilize the ISImarking and brand image.As the brand awareness is less with customers market will stilldepends on price of the product.Inthe case of new product:Following pricing strategy followed in the case of new products: 1.Skimming price policy:Company adopts skimming price policy in the case of new products. This isdone with thebasic idea of gaining a premium from those buyers who always ready to pay a much

higherprice than others. The main reason for adopting this strategy is to attract the consumersofhigh income group. . 2. Penetration price policy:Sometimes company adopt penetration pricepolicy that means changing low price frombeginning in order to stimulate the growth of the marketand to capture a large share of it.Since the customers with low income are able to purchaseit.Price Fixation:Price of the product depends on two components: a. Cost of raw material -variable. b. Operational &Processing cost - fixed. Product price changes with change in rawmaterial price, which is considered as avariable. Minimum period of two weeks taken for pricerevision, though in some cases rawmaterials price fluctuates each day.Risk Involved:Usually baddebts may occur in a business concern. But in STAR PLASTICS till now no baddebts have beenincurred. The usual credit period given to customers is 15 days. If onecustomer delays thepayment, they collect the amount by the way of sending reminders tohim, although they arekeeping some amount as reserve for bad and doubtful debts. Thesociety is keeping largequantities of direct materials as stock because the price of such Ramaiah Institute of Management

Studies26SBS Swiss Business School

27. Organisation Study Report on Star PVC pipes & fittings Internship 2011materials is growingday by day. Therefore these excessive raw materials dont result in lossthough some heavyinvestment is required in it.To avoid the risk involved in transportation of goods to customersoutside Kerala, the goodsare insured accordingly. It helps the society to avoid the risk involved intransporting goodsto distant places.3.4 Human Resource Department Human resourcemanagement involves personnel management, personnel administration,employee welfare,manpower planning, industrial relations etc.Human resource department isheaded by GeneralManager and assisted by all the department heads, factory managers, andbranch managers.STAR does pro-active approach to managing people in the organization. It constitutes aseries ofintegrated decisions that helps to consolidate the employment relationship andbelieves that theirquality contributes to the efficiency of the organization and helps theemployees to achieve theirobjectives. In the case of production centers, factory manager manages all personal staff andcreatesa good relationship with office staff and workers. He undertakes their wants. He willmotivateentire unit as a whole. Each unit works as an independent unit with its own modes oftraining,induction, performance, appraisal etc. All the functions are done in consultation with theproduction manager and thegeneral manager. In the branch offices Branch manager maintainsthe warmth employeerelationship and assessment and training is provided by branch manager inconsultations withmarketing manager and the General Manager. Ramaiah Institute ofManagement Studies27SBS Swiss Business School

28. Organisation Study Report on Star PVC pipes & fittings Internship 2011OrganizationStructure: HUMAN RESOURCE MIDDLE SUPERVISORY OPERATIONAL TOP MANAGEMENTMANAGEMENT MANAGEMENT MANAGEMENT BOARD OF DIRECTORS DEPARTMENTAL

HEADS SENIOR SUPERVISORS SKILLEDWORKERS CHEIEF ACCOUNTANT DIVISIONALHEADS INTERMEDIATE SEMI- SKILLED WORKERS FINANACIAL SUPERVISORSSECTIONAL HEADS UNSKILLED WORKERS DIRECTORSWorking Hours in STAR:Office timebegins with 9 A.M up to 5.30 P.M. In that time all transactions and officialfunction of that day arecompleted. All functions are controlled by HR Manager. HRManager handles many planning

process they are: Forecasting future manpower requirement, it is estimated based upon specificfuture plans of the company. Identifying present manpower resources and analyzing the degreeto which these resources are employed optimally. Anticipating manpower problems byprojecting present resources into the future and comparing them with the forecast of the


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requirement, to determine their adequacy, both quantitatively and qualitatively. Planning thenecessary programs of requirement, selection, training and development, utilization, transfer,promotion, motivation and compensation. So that future manpower requirement will be met.3.5Production DepartmentProduction is the core function concerned with STAR as it has wide rangeof products andproduction take place in plants located at faraway places. More over as faced withstiffcompetition, the only way to increase the profit is by the cost reduction, as price increase isnot

at all possible. So each unit has its own research and development facilities working for RamaiahInstitute of Management Studies28SBS Swiss Business School

29. Organisation Study Report on Star PVC pipes & fittings Internship 2011the better productionfunctions to increase the efficiency in a way result in cost reduction.Production takes place in sixproduction centers located at different place. Each division isself-reliant in its activities ofmanufacturing, quality control, research and developmentproduction center is headedby factorymanagers reports to a production manager at thecorporate office.Organization Structure:PRODUCTION MANAGER FACTORY MANAGER ASST. MANAGER PRODUCTION QUALITYIN CHARGE STORE IN CHARGE (ADMINISTRATION) SUPERVISORS (TECH & R&D)

ACCOUNTANT WORKER CASHIER CLERK, RECEPTIONThe Companys productiondepartment handles the production of PVC pipe fittings. Themain raw material for product isResin and other related components like chemicals. 95%resin and 5% other chemicals are used

for the production. The plant is set up in processlayout. The raw materials go through the variousprocesses for development of final product.Other than company fittings Company also producesolvent cement and in differentmeasures. There are 20 machines in production plant, eachcosting up to 35 lacks.Depending upon the type of products, the production process is divided in

to three: Extrusion: - For rigid pipes and flexible hoses. Injection Molding: - For PVC PipeFittings. Mixing: - For solvent cement. Ramaiah Institute of Management Studies29SBS SwissBusiness School

30. Organisation Study Report on Star PVC pipes & fittings Internship 20113.6 PurchaseDepartmentThe purchase department is entrusted with the function of purchasing row materials.In thepresent scenario with the cut throat competition, cost reduction is practiced in every sphereofthe business and purchase is one of the important functions where cost can be highlycontrolled.

High quality materials with lower cost became the motto of every organization fora meaningfulsurvival, for this organizations practice supplier rating and vender management.There is acentralized purchase department headed by purchase manager who is responsiblefor takingpurchase decisions for all units. The decisions are made on the basis of followingfactors: Marketconditions Availability of raw materials Price of raw materialsOrganization Structure: PURCHASEMANAGER SENIOR ASSISTANT OFFICE ASSISTANTThe purchase manager concerns with thefactory managers regarding the technicalspecifications, manufacturer, quality standards, cost ofmaterials, availability, time delay etc.In case of engineering goods, testing equipments, specialitychemicals, instruments etc thepurchase manager seeks help from the engineers and the othertechnical persons workingwith the research and development. Purchase manager also works incoordination with thechief accountant, to know the position and about the credit position with thesuppliers. Ramaiah Institute of Management Studies30SBS Swiss Business School

31. Organisation Study Report on Star PVC pipes & fittings Internship 2011Role of PurchaseManager: Raw materials purchase. Purchase of consumables and stores. Negotiation ofprices of raw materials with the supplier.Procurement and Issue of Materials: Purchase. Store.A.Purchase The production department, usually factory manager informs the purchasedepartmentabout the requirements of materials. The information is passed through the purchaseintentissued by factory manager to the purchase manager. In case of regular product likestationaryand small purchase, the store in charge issues the purchase intend giving a copy to thefactorymanager item specification, required quantity, name of the manufacture, approximatecostsetc. are mentioned in the purchase intend. The purchase department then enquires with


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thesuppliers and invites quotation. From the received quotation mentioning the offered price,modeof payment, discount if any, time need for dispatches etc., purchase department choosesthe mostappropriate by considering all the criteria. Purchase manager consults with accounts departmentabout the availability of cash,payment condition, balance of any paid, whether the account withthe supplier crossed thecredit limit etc. with the approval of accounts department, purchasemanager then sends apurchase order to the supplier. In case of new materials or new supplier,

purchase departmentinsist or samples to be supplied before the purchase. These samples aretested within houselaboratories. Orders are given only when the sample confirms to the requiredquality levels.B.StoreStore is very important to arrange different items of materials in a systematicmanner. Storerecords information relating to receipts and issue of materials and products. Properstorage isessential for material cost control. Store is headed by the store in charge who report tothefactory manager and purchase manager. Each production center has its own store.Materialpurchasing is done as a centralized activity and then it is supplied to stores atproductioncenters. Store is divided into three: Ramaiah Institute of Management Studies31SBSSwiss Business School

32. Organisation Study Report on Star PVC pipes & fittings Internship 2011 Raw material stores.Engineering Stores (electrical suppliers). Finished goods store.3.7 Systems Department STARstarted the computerization of its departments way back. Personal computerswith UNIX as the

operating system were used in the late 1980s. But the computers ofvarious departments are notnetworked. In the year 1999, STAR went to upgrade its EDPsetup further. Costume made ERPsoftware was developed for its units and head office. Theinstallation of ERP software made thework of the departments of STAR easier. Beingcostume made this ERP software, with SQLRDBMS, Front end on Visual basic andwindows NT 2000 and XP, seamlessly had integrated allfunction of the organization VIZ,production, inventory billing. Payroll, Accounting etc.The headoffice at Thrissur has three servers and forty nodes running the application. Oneserver isnetworked and other is kept as back up, another one is used as internet server. Otherunits totallyhave about eight servers and about 50 nodes. Their latest plants at DUBAI,CHENNAI hascomputerized control room for monitoring and production controlling. Inaddition with ERP system,STAR also had implemented an electronic messaging solutionwith its organization, which iscentered on the companys website. This messaging solutionobviates the communication bottleneck of company. Ramaiah Institute of Management Studies32SBS Swiss Business School

33. Organisation Study Report on Star PVC pipes & fittings Internship 2011 CHAPTERIV

PORTERS FIVEFORCES MODEL Ramaiah Institute of Management Studies33SBS SwissBusiness School

34. Organisation Study Report on Star PVC pipes & fittings Internship 2011 PORTERS FIVE

FORCES MODELPorters Five Forces is a framework for industry analysis and business strategydevelopmentformed by Michael E. Porter of Harvard Business School in 1979. It draws uponIndustrialOrganization (IO) economics to derive five forces that determine the competitiveintensityand therefore attractiveness of a market. Attractiveness in this context refers to theoverallindustry profitability. An "unattractive" industry is one in which the combination of thesefiveforces acts to drive down overall profitability. A very unattractive industry would be

oneapproaching "pure competition", in which available profits for all firms are driven downtozero.The Five Forces are 1. The threat of the entry of new competitors. 2. The threat ofsubstitute products or services. 3. The bargaining power of customers (buyers). 4. The bargainingpower of suppliers. 5. The intensity of competitive rivalry.For plastics producers worldwide, Indiarepresents a range of highly new opportunities forgrowth. The plastics industry in India has madesignificant achievements ever since it made amodest but promising beginning by commencingproduction of polystyrene in 1957.TheIndian plastic industry conforms to the levels ofsophistication required to produce plastic andplastic products of international quality standards.The consumption of plastics 1999 isestimated at twelve million tons by the year 2010. The


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demand for plastics is growingapproximately @ 22% annually and plastic consumption in India isexpected to increase fromalmost 2.7 million tons of various commodity plastics in 1998 to almostfifteen milliontonsby 2010.During the organizational study undertaken in Star Plastics, Kerala, theinformation collectedregarding its competitors, products, the bargaining power of customers andthe suppliers and Ramaiah Institute of Management Studies34SBS Swiss Business School

35. Organisation Study Report on Star PVC pipes & fittings Internship 2011the intensity ofcompetitive rivalry has been analyzed using Porters five forces model and isas follows:1. TheThreat of the Entry of New CompetitorsProfitable markets that yield high returns will attract newfirms. This results in many newentrants, which eventually will decrease profitability for all firms inthe industry. Unless theentry of new firms can be blocked by incumbents, the abnormal profit ratewill tend towardszero (perfect competition). The history of star is the history of pipe fittingsproduction insouth India. In 1983, Vikas plastics and Star plastics amalgamated to form Starplastics,Mullurkara that is 20kms away from Thrissur town, the cultural capital of Kerala. In1988,star became the number one PVC pipe fitting manufacture in south India it has receivedthebest ISI mark for quality. Afterwards more organizations came into the plasticmanufacturingindustry and so that the competition also becomes huge.The main competitors forStar in the market now are: Hycount Plastics & Chemicals. Hycount Plastics & Chemicals wascommissioned two decades ago at Kollam. HYCOUNT PIPE - One of the brand PVC pipes in the

country and the market in Kerala in its kind with an installed capacity over 12,000 Metric tons perannum produced at different locations in Kerala. A-One Polymer Ltd. A-One Polymer Ltd. is yetanother glorious contribution of the century old Anwar Group of Industries in strengthening thedeveloping industrial base of Bangladesh. Manufactured in strict compliance with ISO 3633:2002& BS Standard 4514, A-One u PVC Fittings possess attributes equivalent to any internationalpremier quality pipe-fittings. A-One Polymer, established in 2006 with uPVC pipe & fittingsmanufacturing facility, is also in production of 50MT of PTFE Thread Seal Tape per month,making it the first manufacturer of this product in Bangladesh. With the aim to diversify its productrange further, A-One Polymer seeks to manufacture a wide range Ramaiah Institute ofManagement Studies35SBS Swiss Business School

36. Organisation Study Report on Star PVC pipes & fittings Internship 2011 of plumbing related

materials (PVC, uPVC, cPVC) in the years to come. Already serving the world market, A-Onepolymer plans to further expand its production capacity by 150MT/month to strengthen its exportmarket in 2013. Finolex Industries Ltd. Finolex Industries Ltd is the largest manufacturer of rigidpoly vinyl chloride (PVC) pipes and fittings in India having a market share of nearly 10 per cent.The companys manufacturing capacity of 36,000 tons for PVC pipes and fittings is likely to beincreased to 50,000 tons by the end of next year. Recently, FIL commissioned an ultra-modernPVC pipes plant at Ratnagiri in Maharashtra. The company also has a plant in Pune. NediyaraGroup "SHAKTHIMAN SUPER". "SHAKTHIMAN SUPER" is the flagship brand of NediyaraGroup, a synonym for plastic processing in Kerala. The headquarters of the group is atKodanad,A picturesque village on the banks of river Periyar. Besides PVC pipes, the groupchurns out a myriad of plastic products like Soft PVC Garden Hoses, ISI Marked Electrical WiringPipes, Printed Food Packaging Containers, Water Storage Tanks, Toilet Seat Covers, Cisternsetc. Launched in 1974. Eurotech Pipes and Fittings. Eurotech Pipes and fittings are made from

VESTOLEN P9421 polypropylene random co polymer specially developed for this use. Eurotechis a system of pipes and fittings made from VESTOLEN P9421 random copolymer polypropylene,specially developed for this use. The systems characteristics make it suitable for the constructionof heating and water supply systems of the most widely varying forms with outstanding reliabilityover time. Eurotech office in Kerala: Thrissur Road, Chagarakulam, and Kerala. Some OtherCompanies in Thrissur I. UNIVERSAL DISTRIBUTORS, Masjid Road, Kokkalai, Thrissur. II.Moyalan HDPE -PVC Pipes, Market Rd, PB-76, Ollur P O, Thrissur. Ramaiah Institute ofManagement Studies36SBS Swiss Business School


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37. Organisation Study Report on Star PVC pipes & fittings Internship 2011 III. MazPolymers,Industrial Development Plot, Athani P O, Peringandoor Thrissur.2. TheThreat of SubstituteProducts or Service The threat of substitute is high when the price of that substitute product fallsor it iseasy for consumers to switch from one substitute product to another or when buyersarewilling to substitute. Star Plastic product constitutes plumping equipment materials suchasPVC pipes, fittings, SWR fittings and PVC adhesive. Star fitting is leading names fittingsover all

the states. STAR PVC fittings are manufactured from the finest grade PVC resintrusted andacclaimed all over the country for quality. Due to the high tensile strength andreliability used inindustry, homes etc. STAR fittings are available in above 10 shapes andmeasures vary from20mm to 200mm. They are also available in 3 different colors. Injectionmolded STAR PVC pipefittings confirm to ISI specification and assure totally safe, non-toxic water for all purposes. Thedevelopment of PVC pipes and all type of Plastic fittings and equipmentsallover the world is byusing the organochlorine called Poly Vinyl Chloride (PVC). STAR isalso developing all type of pipeproducts (rigid pipes, flexible hoses etc.) using the sameorganochlorine PVC. The competitors arealso using the same technology. So there is nosubstitute products made from otherorganochlorine, the plastic products are all made fromthe same organochlorine PVC.3. TheBargaining Power of Customers (Buyers) Buyers or customers can exert influence and controlover an industry in certaincircumstances. This happens when: There is little differentiation overthe product and substitutes can be found easily. Customers are sensitive to price. Switching to

another product is not costly. Ramaiah Institute of Management Studies37SBS Swiss BusinessSchool

38. Organisation Study Report on Star PVC pipes & fittings Internship 2011Nowadays customershave the buying power and they have the choice in the market tochoose the product what theywant. In 1994 Star began the production and marketing offlexible hoses under the brand nameSTAR FLEX. Before that Nediyara group came withSoft PVC Garden Hoses and it has a goodname among the customers and has a good marketalso. So when Star came with flexible hoses,it is difficult to market the product. But whilecomparing to other companys products, Star haveinternational standards and also have theISI certification and the product flexible hose is for bothdomestic and industrial use. Thismade Star to gain supremacy of the products over othersproducts, market ascendancy wasnot difficult. Star now is a ubiquitous presence in the entireMiddle-East and South Africa. In2001, STAR received the ISO 9002 Certification, yet again thefirst in South India. Thecustomers of STAR are satisfied with their products. They continue to usethe product andwill purchase them in future. Quality is the main factor that helps STAR tocompete withother brands. Advertisements were done in print media only.4. The BargainingPower of SuppliersSuppliers are also essential for the success of an organization. Raw materialsare needed tocomplete the finish product of the organization. Suppliers do have power. Thispower comesfrom: If they are the only supplier or one of few suppliers who supply that particularraw material. If it costly for the organization to move from one supplier to another (known also asswitching cost). If there is no other substitute for their product.STAR plastics have suppliers allover South India. STAR plastics concentrates there marketin India mostly in southern region.STAR has a monopoly market in southern area. Thecompany can market their product verysmoothly through the market segmentation. Thecompany is selling their products by dividing themarket state wise. The companyconcentrates in Tamil Nadu, AndhraPradesh, Karnataka and

Kerala. In North India thecompany continues marketing of their products. To be more precise, theproduct of the company makes its presents felt in thefollowing counties: Ramaiah Institute ofManagement Studies38SBS Swiss Business School

39. Organisation Study Report on Star PVC pipes & fittings Internship 2011 INDIA UAE RUSSIAIRAN AFGHANISTAN MUSCAT QATAR BAHRAIN SAUDI ARABIA EGYPT SUDAN ETHIOPIASOMALIA SOUTH AFRICA5. The Intensity of Competitive RivalryIf entry to an industry is easythen competitive rivalry will likely to be high. If it is easy forcustomers to move to substituteproducts for example from coke to water then again rivalrywill be high. Generally competitive


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rivalry will be high if: There is little differentiation between the products sold between customers.Competitors are approximately the same size of each other. If the competitors all have similarstrategies. It is costly to leave the industry hence they fight to just stay in (exit barriers).In India thePVC industry is going through high competitive rivalry. As too manyorganizations are coming toPVC pipes & Fittings manufacturing industry yearly, thecompetition is also becoming higher. In thelast one decade unparalleled growth waswitnessed in Star group of companies to emerge as a

leader in the PVC fitting and todiversify into the manufacture of suction hoses, drainage fittingsand PVC pipes. Thecompanies operation includes manufacturing of PVC fittings and alliedproducts in clearlydefined core business areas at home and overseas. The Star group ofcompanies is the singlelargest plastic industry in private sector over years, star group has steadilydeveloped into a Ramaiah Institute of Management Studies39SBS Swiss Business School

40. Organisation Study Report on Star PVC pipes & fittings Internship 2011professionallymanaged company comprising of 8 manufacturing unit in 3 production centerswith a total installedcapacity of 3850 meter per annum-8 divisions and effective centralizesupport services whollydedicated to the most existing standards of quality and customerservices, constantly motivated bythe need to ensure total product satisfaction. In the year2000, to take the challenge ofglobalization, star set up a core team and applied core ISOcertification. In August 2001, starbecame the first PVC fittings manufacture in south India toreceive the ISO 9002 certification. Now

Star Plastics is the market leader in South India. Thecompany has made its presence significantlyin Middle East market also.Strategy persuaded by Star PVC is: Produces good quality product.Makes use of modern techniques for production to meet the demands mostly with the help ofpops. Assigning targets to each store manager and as such rewarding then with attractiveprizes. Everyday feedbacks are taken.The value which exists in Star PVC is: Nodiscrimination for race, religion, decision making and actions. To develop a sense of respect foroneself in others mind. Discipline is given great importance.These all help them to overcomethe intensity of competitive rivalry in the PVC pipes &Manufacturing industry. Ramaiah Institute ofManagement Studies40SBS Swiss Business School

41. Organisation Study Report on Star PVC pipes & fittings Internship 2011 CHAPTER V SWOT

ANALYSIS Ramaiah Institute of Management Studies41SBS Swiss Business School

42. Organisation Study Report on Star PVC pipes & fittings Internship 2011 SWOT analysis is astrategic planning tool used to evaluate the strengths, weakness,opportunities and threatsinvolved in a project or in a business venture. It involves specifyingthe objectives of the businessventure or project and identifying the internal and externalfactors that are Favorable andunfavorable to achieve the objectives.Strength: 1. The company has a good brand image amongthe consumers. 2. Products accepted all over the world for its quality. 3. MultiUnit MultiProduct organization catering all products in PVC pipe industry. 4. Global presence in Middle EastAsia, Europe, Africa. 5. The company has the direct marketing network with well establisheddistribution system 6. Dedicated marketing force with effective promotion strategy. 7. Thecompany has fully computerized departments and production units and corporate office isconnected through intranet. 8. Committed work force guided by technically skilled superiors,maintaining warmness in relation helps in delivering a combined effect. 9. Stringent quality

measures adopted, backed by a strong quality control and R & D team.Weakness: 1. Organizationin flexibility (Flexible working hours and Policies for flexible working). 2. Limited branches. 3. Lackof access to the key distribution channels (Not concentrating in the rural areas of south Indiawhere there are lot of business possibilities in agriculture sector. Now the organization isconcentrating mainly in the construction Industry). 4. Advertisements are done through print mediaonly. Ramaiah Institute of Management Studies42SBS Swiss Business School

43. Organisation Study Report on Star PVC pipes & fittings Internship 2011Opportunities: 1. PVCpipe industry is in growth stage so PVC pipe industry has a greater opportunity to grow. 2.


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Immense opportunities as infrastructure development in India are growing at a faster pace. 3.There are large untapped opportunities in Government sector(E.g. Government is giving subsidiesto the farmers for buying agriculture equipments). 4. Growth of real estate on account of nuclearfamilies. 5. Agriculture promotion schemes by government and other agencies.Threats: 1. Suddenfluctuations in crude price, causing fluctuations in raw material price makes difficult in pricingstrategy. 2. Industry is one among those with greater competition. 3. In the changing world of

technology, sometimes a better substitute over PVC may emerge. 4. All the competitors (HycountPipes, A-One Polymers, and Finolex Industries etc.) are changing their strategies and formulatingnew ones to capture new markets. 5. As PVC is a plastic which is not biodegradable causes environmental pollution, may face a ban in future. Ramaiah Institute of ManagementStudies43SBS Swiss Business School

44. Organisation Study Report on Star PVC pipes & fittings Internship 2011 CHAPTER VIFINDINGS AND SUGGESTIONS Ramaiah Institute of Management Studies44SBS SwissBusiness School

45. Organisation Study Report on Star PVC pipes & fittings Internship 2011Findings:Star Plasticsis the number one PVC pipe fitting manufacturer in south India and it hasreceived the best ISImark for quality. In August 2001, Star became the first PVC fittingsmanufacturer in south India to

receive the ISO 9002 certification. International Standard that is being followed as far as thequality of the products is concerned. Has well trained employees to operate the machines. Provides excellent services to its employees like canteen, medical facilities, transportation etc. Premises are huge and designed in such a way that the raw materials can easily transferred from

one department to another. Safety is given main preference. Discipline is being followed. Pollution level is low. Quality of the products is assured by doing nine different quality tests. Everyday feedbacks are taken. Excellent training and development system. Employeeperformance appraisal system. No discrimination for race, religion, decision making andactions.Suggestions: Ramaiah Institute of Management Studies45SBS Swiss Business School

46. Organisation Study Report on Star PVC pipes & fittings Internship 2011 Problems can bedetected early and treated to prevent deterioration welfare and cost reduction. Annual medical

checkup for all workmen and employees. A small amount can be deducted from the salary onetime. Cleanliness and orderliness has to be further improved. Improve security measures byusing electronic devices at all gates. Advertisement need improvement (currentlyadvertisements is done through print media only, need to be done in visual media also).CHAPTER VII CONCLUSION Ramaiah Institute of Management Studies46SBS Swiss BusinessSchool

47. Organisation Study Report on Star PVC pipes & fittings Internship 2011 CONCLUSIONThestudy conducted at STAR GROUP OF COMPANIES THRISSUR which is the pioneerand marketleader in the PVC pipe product in South India, helped in getting a wider outlookabout the businessenvironment and managing an organization. Organization has sixproduction centers and fivemarketing branches spread all over South India and Middle EastAsia, with operation all over theworld.It was a general study regarding all functions and aspects of STAR. The company hassevenfunctional departments through which it was operating. It is found that company has agoodworking environment and cordial relationship is maintained between all departments forthesmooth functioning and achievement of the organization goal of maintain the companysbrandimage among the customers. Porters Five Forces Model is done in the period of studyto analyzethe threat of the entry of new competitors and substitute products or services, thebargainingpower of the customers and the suppliers and the intensity of competitive rivalry.SWOT analysis isalso done to analyze the Strength, Weakness, Opportunities and Threats ofthe organization.Starhas made are of most advance technology and up to date knowledge. Fully automatedproductionhas been put to use long time ago U.S made microprocessor controlled machineryis used to for


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production. Star received the ISI mark for quality and ISO 9002 certification for Ramaiah Instituteof Management Studies47SBS Swiss Business School

48. Organisation Study Report on Star PVC pipes & fittings Internship 2011quality by TUVGermany, and ISO 14001: 2001 certification. All the products are ofInternational standard. Atpresent company is able to later about 10% of the marketrequirements. In order to later the

complete needs the company is planning to increase theproduction level to maximum extentpossible. The company is planning to increase thepresent product level of Dubai units. Theresearch and development team of STAR group isengrossed in developing new product for theinternational markets. This has helped them togain valuable insight that prompt the group tosearch alternative ways for manufacturingbetter products in a cost effective manner. CHAPTERVII Ramaiah Institute of Management Studies48SBS Swiss Business School

49. Organisation Study Report on Star PVC pipes & fittings Internship 2011 BIBILIOGRA PHY

BIBILIOGRAPHYBooks Referred: Philip Kotler, Jha, and Koshy: Marketing management. Roger. A. Kerin, Steven. W. Hartley, Eric. N. Berkowit, William Redlius: Marketing

Management.Websites Referred: www.wikipedia.com www.stargroupind.com www.google.com Ramaiah Institute of Management Studies49SBS Swiss Business School

50. Organisation Study Report on Star PVC pipes & fittings Internship 2011Journals: StarPlastics Company Magazine. Ramaiah Institute of Management Studies50SBS Swiss BusinessSchool

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