Organiztional study at Double Horse

8/18/2019 Organiztional study at Double Horse.

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CHAPTER ONE

INTRODUCTION


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INTRODUCTION

Introduction to the study

The organization study was undertaken in Manjilas Food Tech Pvt Ltd. helps to

observe the functioning of the company, which helps to get a practical and real time feel

of various aspects concerned with the organization and to relate it to the concepts.

Manjilas is a food products manufacturing company. The company produces

various types of rice products, masalas etc. Rice is the main product of the company.

The employees are working together for achieving the organizational goal. The

company has a functional organization structure which helps to determine the

relationship between the different functions and positions, and also helps to determine

the authority and responsibility to carry out defined tasks.

In an organization study each and every department in the organization is

observed and analyzed in detail. They also gave an opportunity to interact with the

employees in the organization.

Scope of the study

The study is focused on the operations of Head Office and Operationalactivities of Kottekkad unit of Manjilas Food Tech Pvt Ltd. The activities of the

company in other branches are not within the scope of this study. The structural

aspects, functional aspects0 of all the departments like the Finance, Human Resource,

and Research & Development, Customer care Department, Marketing, Purchase and

Production etc. are covered in this study. However a detailed study on the production

process or the technology being used or a detailed financial analysis is not done.

.


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Objectives of the Study

The major objectives of this organizational study conducted at Manjilas Food Tech

Pvt Ltd. are as follows.

1. To familiarize with the organization and to study various problems faced by

the organization.

2. To understand thoroughly what is the key process in the organization and the

functions and activities of various departments in the organization.

3. Find out the strength, weakness, opportunities, threats of the organization.

Methodology

Information and data collection was mainly done through one to one

interactions with the members of the management team and employees. Both formal

and informal methods have helped in the better understanding of the operations of the

business. The study was done in a systematic manner following a predefined schedule

wherein all departments were covered one by one. Material data from company

website and other websites were also used for this study.

Limitations

The depth and the detail which this study could achieve were primarily limited

by the time constraint. The confidential nature of certain documents, especially the

financial data and the strategically important information has too prevented this study

from achieving the level of perfection it had aimed at initially. The busy schedules of

the head office had made them unavailable for interactions during the study which

could have really made the study more complete and valuable.


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CHAPTER TWO

ANALYSIS OF THE BUSINESS

ENVIRONMENT


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ANALYSIS OF BUSINESS ENVIRONMENT

Analysis of the Remote External Environment

The life styles and culture of India is changing drastically. The population of

India is increasing every year and this will have a direct impact on the FMCG industryand its organizations. Although population of India is increasing every year the

population growth rate is decreasing over a period of time.

In 2008 the population growth rate is 1.6%, in 2009 it is 1.5%. In 2010 the

growth rate is 1.3%. Although the figures didn't change drastically, the supply and

demand of the FMCG products will be affected due to change in population structure.

There will be decrease in demand and intense competition as the birth rates and

number of customers decrease. Most importantly it is the change is life style of Indiancustomers and social behavior will affect the FMCG industry in India. It will demand

a new products and services over the time and will lead to increase in investment in

R&D of FMCG companies. Now the world is facing with food shortage leading to

increasing invest in food production. If the organizations fail to offer products and

services according to changing lifestyle and behavior then it will be difficult for any

organization to survive in the market.

Economic Factor. Current slowdown in global economic scenario affected

almost every industry across the world. There has been increase in unemployment and

low consumer spending power. This leads to consumers not opting to buy expensive

products or services. This further pressurizes the RMCG companies to reduce the

prices for the products and services.

Organizations will have to review this economic ride and have to respond

accordingly, a successful organization will respond according changing economic

conditions, consumer and stakeholder behaviour. An efficient organization must be

aware of the changing economic condition across the country and global and should

employ a suitable strategy to stay in the market.

Political Factor. Political factors will have a greater influence on the

organization and industry and it is the duty of the organizations to comply with it. It is

necessary for the organizations to comply with the legislations implemented non-

conformance of which may lead to serious implications on the organization. The

government has implemented certain restriction in the import policies. However tax


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exemptions in sales and excise duty are provided for the small scale industries. This

will allow the SMEs to invest more and will increase the number of new entrants.

Transportation and infrastructure facilities are improving not only in urban but also in

the rural area which will help in distribution network .

Technological Factor. Advancement in technology boost the production with

enhancement in quality of products and services rendered to the customers.

Organizations began to adopt e-business to improve brand communication and

market. Technological advancement makes the supply chain and transactions along

the chain simple. Organizations reduced costs with effective IT technologies and

increased the rate of information transactions. Technology is playing a key and huge

part in the FMCG sector by developing the new packaging, increasing productivityand longer shelf life of food products.

Better, stronger, more effective and faster are the key elements that all

manufacturers in this sector push for, as it drives sales. The advancement enhances

the sales by enabling the manufactures to produce better products with attractive

packaging and better communication. With advancement in communication

technology and rising social media network it enables the organizations to

communicate better to the customers by improved marketing campaigns.

International trends. The economic crisis and slowdown had greatly affected

the sales FMCG goods across the world. However emerging economies like India,

China and Brazil are not greatly affected and manage to do well to recover quickly. A

common trend that was followed across the world during economic slowdown was

trading down. Because, customers became more cautious looking for less expensive

brands, special offers and discounts. This added tremendous pressure on the market

prices due to severe competition and down trading. However emerging economies

like India, China and Brazil saw development in hypermarkets helping the growth of

FMCG markets in these countries.


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Industry Profile

History of the FMCG Industry

FMCG industry, alternatively called as CPG (Consumer Packaged Goods)

industry primarily deals with the production, distribution and marketing of consumer

packaged goods. The Fast Moving Consumer Goods (FMCG) are those consumables

which are normally consumed by the consumers at a regular interval. Some of the

prime activities of the FMCG industry are selling, marketing, financing, purchasing,

etc. The industry also engaged in operations, supply chain, production and general

management. Some common FMCG product categories include food and dairy

products, glassware, paper products, pharmaceuticals, consumer electronics, packaged

food products, drinks, household products, etc. Some of the merits of FMCG industry,which made this industry as a potential one are low operation cost, strong distribution

networks, and presence of renowned FMCG companies. Population growth is another

factor which is responsible behind the success of this industry.

Some of the well-known FMCG companies are Sara Lee, Nestle, Reckitt

Benckiser, Unilever, Procter & Gamble, Coca-Cola, Pepsi etc. FMCG industry creates

a wide range of job opportunities. This industry is a stable, diverse, challenging and

high profile industry providing a wide range of job categories like sales, supply chain,

finance, marketing, operations, purchasing, human resources, product development,

general management.

The following are the main characteristics of FMCG’s

Frequent purchase

Low involvement (little or no effort to choose the item- products with strong

brand loyalty are exceptions to this rule)

Low price

High volumes

Low contribution margins

Extensive distribution networks


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As it exists today, the domestic food and beverage industry is a very competitive

and mature industry with the little domestic growth. Increases in a company’s market

share usually come at the expense of a competitor’s loss of market share. Over all

more growth comes from international expansion. With the package of NAFTA andGATT many domestic companies are either entering into alliances with the foreign

entities ,or acquiring them. There are many reasons for this. For example much

domestic food and beverage companies want to take advantage for existing

distribution systems or underutilized plant capacity. Some acquisitions may be

motivated by Federal income tax considerations.

From the time that agriculture began about 7000 years ago to the present there

have been many important developments that are responsible for the state of the

industry as it is today, the followings events that have had a major impact on where

the industry is today.

Irrigation. The use of some form of irrigation is well documented throughout the

history of civilization. It has enabled food production to occur in areas previously too

hostile for plants and to counter the effects of drought.

Industrial Revolution. Resulted in mass production of food products at lower cost

and consistent characteristics.

Food Preservatives. Classified into two main groups, antioxidants that delay or

prevent the deterioration of foods by oxidative materials and antimicrobial agents that

inhibit the growth of spoilage and pathogenic microorganisms in food.

Packaging. Tinned products came to America in 1822 and allowed food to be

stored for long periods of time. Some packaging processes were developed to enable

Napoleon’s armies to carry war to distant areas and remain well fed.

Pasteurization. A partial sterilization accomplished by raising milk to a

temperature high enough to destroy pathogenic bacteria. This process allows milk to

remain consumable for about 14 days if refrigerated in closed containers.

Pesticides. Enabled farmers to significantly increase yield.

Franchising. In the 1950’s and 1960’s, the concept of franchised restaurants was

promoted. This enabled franchisers to expand with limited capital investment.


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Transportation . First, railroads and barges, then trucks and air transportation

have enabled many food products to be enjoyed in regions where food cannot be

grown. Many locally grown food products can be consumed globally (bananas, fish,

fruit, etc.).

Nutrition. In the 1950’s and forward, nutrition became a major concern for

production/consumption. The emphasis on eating healthy has spawned a new market

segment; for example organic foods, low-fat foods and healthy foods all enjoy healthy

margins and increased demand.

All of the above mentioned technological developments have played a major

role in the evolution of the food and beverage industry. There have also been some

business developments that have had an impact on the current state of the industry.

Future Market. Many food manufacturers participate in the futures markets

by entering into futures contracts to “hedge” against price fluctuations for their

inventories of raw materials.

Government Agencies. OSHA and the FDA, have had a dramatic effect on

the meat and food processing plants. They have helped ensure safety in production

and consumption.

Product Branding. Branding of products is accomplished by extensive

advertising, in many instances this product advertising costs more than the cost of

production. Branding is partially responsible for the emergence of radio and television

(soap operas).

Mergers and Acquisitions. In the 1980’s there were many mergers and

acquisitions of food and beverage companies. This trend continues today. Many

companies are actively buying and selling brands like baseball teams trade players.

Global Scenario

The recent market statistics reveal that the world economy is recovering.

Moreover, the market researches further reveal that FMCG is the industry that has

braved all odds in the doldrums and maintained a fairly constant position. But the

practical picture is hardly similar to the conceptual vision as the industry is yet to


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experience enhanced consumer payments and consumer confidence. This is

specifically applicable for the FMCG industry of the developing countries like US

and UK where consumer activities have remained more or less constant without any

improvement. But the scenario of emerging countries like China, Brazil and India

seems optimistic, which feature enhanced sales and more frequent shopping trips that

hint at quantitative and qualitative improvements.

At Market Quotient, we carry out extensive research on a periodic manner in

order to accumulate in-depth knowledge of the activities of competitors and market

intelligence on the current and future trends of the FMCG industry. We prioritize

these triggers as the major pillars of growth. We approach factors like unpredictable

change in consumer trends, intense competition among peers and frequency oftransactions from different angles so that we can improvise our services and adapt

quickly to the evolving changes.

The strength of Market Quotient is the expert panel that comprises of industry

professionals who have spent years in the industry and closely observed the nature of

consumers and changing trends. Thus, they conduct studies and prepare full proof

reports that highlight integral issues like “What is the latest trend”, ”What are the

future predictions” and “how to get through the industry doldrums”. They work

closely with the clients to understand their specific demands and crisis and suggest

tailor- made margin management goals which can be boosted by devoted supply chain

research support.

Growth in sales for the world’s top-50 FMCG firms has halved from 5.6% in

2013 to 2.9% in 2014 , as a result of exchange rate volatility, failing commodity costs

and increased competition from local players – according to research unveiled today

by OC&C Strategy Consultants in collaboration with The Grocer.

OC&C’s annual Global 50 Index, the only analysis of the financial statements to

find growth at the same pace they have seen in recent years. Particularly in the BRIC

markets, global companies are losing market share to local players. In 2014, the Global

50 lost 0.7% points of their market share of the market in China, 1.3% points in India,

1.4% points in Brazil and 0.4% points in Russia. In contrast the picture on profitability is

more positive – gross margins have grown by 0.7% in 2013 compared with 0.1% in


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2013 and EBIT margins are up by 0.9%, as companies have refocused activities on

rebuilding profitability.

Although the BRICs have been proving more challenging, global FMCG firms

are identifying new areas of growth. 70% of firms in the Global 50 who reported

underperformance in a BRIC country I their annual report, named a MINT country

(Mexico, Indonesia, Nigeria and Turkey) as a key growth market. Early movers to the

MINTS are establishing very high market shares. In Nigeria, for example, Coca-Cola

has built a 41% share of the soft drinks market compared to 26% globally, and Nestle

has built a 69% share of the coffee market versus 22% globally.

FMCG companies are behind the biggest brands in the world. FMCG is all

about names, the products which everyone recognizes from trips to the supermarket or

from ads on television. The brands that make up this sector are the high profile ones,

the ones everybody knows and loves. Thank Coca- Cola, Dettoland Dove. This is an

industry that puts you in living rooms, kitchens and bathrooms across the globe.

The FMCG industry changes fast and is constantly evolving. It’s fair to say there is

never a dull moment in FMCG. From the pace at which goods leave the shelves to the

rate of product innovation and career progression, things move quickly. And doesn’t

end there. The brands themselves are changing just as quickly.40 percent of brands on

the top 100 list 20 years ago have already been replaced by new names today.

Firms have been sales growth slow considerably; their renewed focus on

rebuilding, profitability is proving successful. Companies have been taking a more

cautious and FMCG firms thrive on employee and customer retention. Employee

investment is a big part of the ethos of the FMCG world. Perhaps it’s because we

understand the importance of loyalty. Customer loyalty can make or break a brand.

Take Twinnings for example-a century after they entered the top 100 brand list, they

are still there and going strong. So it makes sense for FMCG companies to encourage

the loyalty of their employees too.

FMCG companies can beat the recession. This is an industry that proved itself

very resilient ot recession-with the majority of companies in the sector weathering the

financial storm in a way that very few others have managed. Why? well, consumers

will always need to buy the products created by FMCG companies. They may not buy


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big items like refrigerators or cars in a recession, but floors still need to be cleaned,

clothes has to be laundered and aches and pains still need to be soothed.

FMCG has a history of delivering what consumers want. Some FMCG

company’s roots are over two centuries old – driving the industry to a value of $570.1

billion. In short, to quote Sam Walton, founder of wallmart:”high expectations are the

key to everything”.

All the FMCG focused approach, and as our research shows, more than 80%

of innovation investment in 2014 focused on core products rather than new ventures.

Similarly, firms are increasing the selling of businesses that are of poor fit with their

core operations, and only buying firms that will strengthen their market position in a

key market rather than diversify.

New emerging markets like Mexico, Indonesia, Nigeria and turkey that have

weaker local competition are providing a welcome way of growth opportunities for

the world’s largest FMCG firms. Companies that are struggling to establish a strong

foothold in the BRICS firms need to consider these new markets as opportunities for

expansion and consolidation. “In contrast to established western multinationals, local

BRIC firms are enjoying a period of sustained growth”. This year has seen the first

Chinese firm-Tingyi, a company specializing in instant noodles and beverages-enter

OC&C’s global 50 index at number 41, with two other Chinese firms, Yili group and

Mengniu, narrowly missing out on a top 50 spot. In addition the four global 50 firms

based in emerging markets-JBS and Brazil Foods in Brazil, Grupo Bimbo in Mexico

and Tongyi in china – grew by 14.6% in 2014.

Indian Scenario

“We are a daily market share business much like newspaper, milk and airlines.

These industries cannot afford to lose a day. Hence the key is relentless execution”.

These were the quotes from a senior leadership who took charge of the top slot of a

leading FMCG very recently. This is just to indicate that the “fast moving “in the

FMCG is expected to move to “daily moving”.

As the 2014 came to an end, with the very high inflationary trend the market

sluggish most of us are entering 2015 “neutral perspective” . With the change most

likely over the political situation most of them would be planning to split the year into


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2, pre-election and post-election periods. However seeing a distinct action and

varying consumerism quarter-wise.

The Jan-march period would be a start with not much action happening and

would be as “volatile and uncertain” as last 12-18 months period. Not much spending

expected (but some hiring, yes).also it would be washout for market with lots of pre-

election activities happening. The April-June period would see good momentum with

new budgets getting executed. The need for manning would come from “replacements

and those for new projects”. Some leading parent multi-nationals have already

announced additional participation in their equity share at Indian operations or have

announced investment amounts and new projects clearly indicating growth potential

seen in Indian context. July-Sept quarter, with onset of monsoon would witness some positive change in the environment and thus in recruitments too. The post-election

period would also see some changing equations and new investments. This would

continue through the last quarter Oct-Dec with festive season, new markets, new

products hitting the shelves. All in all there is a positive April-Dec 2015 period for

recruitments t happen.

With young consumer base, 65% of Indian consumer is below 35 years of age, the

GDP poised to be a tad higher over current and with lowering inflation the consumer

would be willing to spend, organizations willing to invest and one clearly see an

affirmative view for new and more managers is being hired too. Fast moving

consumer goods (FMCG) industry in India is one of the fastest developing sectors in

the Indian economy. At present the FMCG industry is worth $13.1 billion and it is the

fourth largest in the Indian economy. These products have very fast turn-around rate,

which is the time from production to the revenue from the sell of the product is very

less. The present economic scenario, time is regarded as money, so FMCG companieshave to be very fast in manufacturing and supplying these goods.

The Fast Moving Consumer Goods (FMCG) industry in India include segments

like cosmetics, toiletries, glassware, batteries, bulbs, pharmaceuticals, packaged food

products, white goods, house care products, plastic goods, consumer non-durables, etc.

the FMCG market is highly concentrated in the urban areas as the rise in the income in

the middle income group is one of the major factors in the Indian FMCG market.


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The penetration in the rural areas in India is not high as yet and the opportunity of

growth in these areas is huge by means of enhanced penetration into the rural market

and conducting awareness programs in these areas. The scopes for the growth of the

FMCG industry are high as the per-capita consumption of the FMCG products in

India is low in comparison to the other developed countries. The manufacturing of the

FMCG goods is concentrated in the western and southern belt of the country. There

are other pockets of FMCG manufacturing hubs.

Overall increasing affluence and aspirations in the customers have fuelled FMCG sector

in India is likely to grow in rapid pace over the years. A rapid urbanization, increasing

demands, double digit increase in sales, profits galloping and well under check on cost in

the FMCG sector has presented a picture of growth in the recent days. As per the

emerging market scenario and overall macro-economic expectations the Reserve Bank of

India (RBI) is expected to go for a reduction in interest rates to boost the sagging

economy, improve demand momentum and investment climate. Market also expects RBI

to reduce the cash-reserve ratio (CRR) and the report in the forth coming monetary policy

review and FMCG will turn out to be the biggest beneficiary of the same.

There is ample scope for all the FMCG companies as the per capita consumption of

almost all products in the country is amongst the lowest in the world and the demand or

prospect could be increased further if these companies can change the consumer’s

mindset, and offer new generation products. Traditionally Indian consumers where using

non-branded apparel but today cloths of different brands are available and the same

consumers are willing to pay more for branded quality clothes. It’s the quality, promotion

and innovation of products which can drive FMCG sectors. The sector has sustained a

double digit volume growth in the second quarter despite the slowing global and domestic

economy, the rise in demand had helped the companies to recover the margin drop and

the trend is likely to continue. Product innovation in FMCG sector has picked up pace in

the last few years and will act as a catalyst of growth for the sector in coming days. Also

the implementation of the long delayed GST is likely to benefit the sector as they are

considered as the progressive measures aimed at removing bottle necks, though the

unabated inflation will continue posing hindrance.


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State Scenario

Sensing Kerala’s potential as a consumer market, giants in the retail segment have set

up shops across the state. Not to be out done the Kerala SIDCO (small industries

development cooperation limited) to has entered fast moving consumer goods sector,

with a view to making inroads into the retail sector.

Kerala SIDCO has started marketing a select list of FMCG products under its brand

name. The agency has already launched package drinking water and washing soap. It

is said to introduce a range of food products soon.

SIDCO had been marketing its brand of furniture for several years. The products were

made by reputed manufacturers for SIDCO. They agency had been supplying the

products to government officers.

SIDCO has gained confidence to try FMCG products in the market after its successful

stint in the furniture segment. The agency is adopting a strategy akin to that of the

furniture segment for marketing the FMCG products.

The products are manufactured by groups which had been in the business for quite

some time. SIDCO would ensure the quality of the products before dispatching them

to the market, head of the FMCGs wing said. Competitively priced, the products have

being marketed through supply co and consumer fed outlets initially. The new food

products to be launched under the SIDCO brand include high consumption items such

as rice powder and banana powder.

The marketing initiative is being studied by SIDCO and future efforts would be based

on the feedback from the market. The product range would have to be self-sustainable

as the government is not providing any subsidy for the FMG initiative.

The state government has made its stand clear on the retail policy adopted by the

union government. Accordingly, the state will not permit FDI in retail as it is

considered grossly harmful to the interests of the local retailers.

In this current changing business scenario, retail industry has witnessed major

revolution and global attention. Retailing is one of the most rapidly growing and

promising industries in Indian economy. Retailing is an important social institution in

Kerala because about 30 percent of what a customer spends goes on products and


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services that they buy from retailers. In the midst of stiff and fierce competition and

increased number of retail outlets providing a variety of FMCG products, customers

have become accustomed to patronizing multiple audience. Traditionally, retailers

have relied only on differentiation of products and services to retain their customersand also to satisfy the customers. However, times have changed, due to fierce

competition from new players entering the market, imitation of new features and

increase in number of new offers, customers have acquired new choices and they have

also become more price sensitive, which has forced marketers to adapt differentiated

and customer oriented strategies in order to enable them to stand out in the

competition and gain a competitive edge. Retailers have recognized this trend and are

of the view that customer satisfaction places a role in the success of retailing business.

Therefore it has become important for FMCG retail stores to try and manage customer

satisfaction. Customer satisfaction occurs when the value and customer services

provided through a retailing experience meet or exceed customer expectations.

Customer satisfaction is considered very important nowadays, it shows how firms are

committed to provide quality product or services to their customers that eventually

increase customer loyalty. Retail business units are now busy in finding out new and

innovative ways to satisfy their customers so that they will stick on the company. The

present study is to assess the level of satisfaction of the customers from the various

services of retailing of FMCGs in Thrissur district.

Industry Analysis

Industry Key Players

The industry key players are nirapara, eastern curry powder, priyam masalas,

kaula.

Nirapara

K K R Group are mainly involved in the manufacturing and exporting of

quality rice, rice products, spices, spice products, etc. The Products are sold under the

brand name "NIRAPARA".

The K.K.R group was set up in 1976 by Mr. K.K. Karnan, a man who set out with the

vision to bring quality rice into the traditional homes of Kerala in South India. A venture

which started out with traditional method of boiling, sun drying and milling, grew into


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one of the most modern rice processing houses in India with the latest world-class

technology today. KKR Mills boasts of a state – of the – art plant with the highest

levels of technology in the world, ensuring products that meet the most stringent

quality and hygienic standards.

Eastern

Eastern is a 650 crores company today. The foundation for this phenomenal

achievement lies in core values such as a commitment to high quality. All of their

brands and products work towards creating a unique qualitative relationship with

customers. Their consistent philosophy and way of doing business has endeared their

brands to people all over the world. A well-diversified portfolio of products helps the

Eastern group become a part of everyday life of their customers.

Priyam Masalas

Priyam started in 1987 is a trustworthy name in the field of packed food and

condiment manufacturing industry, has a remarkable place in the hearts of taste lovers

worldwide. Its plant situated at Cochin gives the finest quality Curry powder, Tea ,

Pickle, Chutney, Rice powder, Rice ,etc. The whole manufacturing process is

designed with a special emphasis to retain the original taste of respective products.They take all possible precautions to make that possible. Selections from the best

fields or garden, Hi-tech processing, no human touch line manufacturing, High

quality vacuum packing, speedy delivery are a few to name.

Kaula

This is a new venture from the KRC International Group that introduced

brands such as Ramble, Joggy, Border, Golden Concept Catering, Fresh Food

Restaurant and so on is being marketed across the GCC by KRC International FZE.

The new range of the best of food products is fast becoming a big sensation among

the people who savour taste and health above everything else.

Porter’s five forces Model. Porter's Five Forces of Competitive Position Analyses was

developed in 1979 by Michael E Porter of Harvard Business School as a simple

framework for assessing and evaluating the competitive strength and position of a business organization.This theory is based on the concept that there are five forces that


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determine the competitive intensity and attractiveness of a market. Porter’s five forces

help to identify where power lies in a business situation. This is useful both in

understanding the strength of an organization’s current competitive position, and the

strength of a position that an organization may look to move into. Strategic analystsoften use Porter’s five forces to understand whether new products or services are

potentially profitable. By understanding where power lies, the theory can also be used

to identify areas of strength, to improve weaknesses and to avoid mistakes. A change

in any of the forces normally required a company to reassess the marketplace. The

overall industry attractiveness does not imply that every firm in the industry will

receive the same profitability. Firms are able to apply their core competences,

business model or network to achieve a profit above the industry average. A clear

example of this is the airline industry. As an industry, profitability is low and yet

individual companies, by applying unique business model have been able to make a

return in excess of the industry average.

According to Porter, the five forces model should be used at the industry level; it is not

designed to be used at the industry group or industry sector level. An industry is defined

at a lower, more basic level: a market in which similar or closely related products and/or

services are sold to buyers. Firms that compete in a single industry should develop, at aminimum, one five forces analysis for its industry. Porter makes clear that for diversified

companies, the first fundamental issue in corporate strategy is the selection of industries

(lines of business) in which the company should compete.


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Threat of New Entry

Supplier Competitive Power Rivalry

Threat of Substitution

Figure 1 Porter’s five forces of competitive position analysis

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Buyer Power

Five Forces Analysis assumes that there are five important forces that determine

competitive power in a business situation. These are:

Supplier Power. Here you assess how easy it is for suppliers to drive up

prices. This is driven by the number of suppliers of each key input, the uniqueness of

their product or service, their strength and control over you, the cost of switching

from one to another, and so on. The fewer the supplier choices you have, and the

more you need suppliers' help, the more powerful your suppliers are. Manjilas has a

very powerful purchase department and they mainly depends on large number of

suppliers. They purchase the products according to the quality measures assured by

the production department.


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Buyer Power. Here you ask yourself how easy it is for buyers to drive prices

down. Again, this is driven by the number of buyers, the importance of each

individual buyer to your business, the cost to them of switching from your products

and services to those of someone else, and so on. If you deal with few, powerful

buyers, then they are often able to dictate terms to you.

Manjilas provide wide variety of products to its customer’s. Manjilas has a wide

market including Kerala, Outside Kerala and Exports. So the problem of buyer

power is not affected to this company.

Competitive Rivalry. What is important here is the number and capability of

your competitors. If you have many competitors, and they offer equally attractive

products and services, then you'll most likely have little power in the situation,

because suppliers and buyers will go elsewhere if they don't get a good deal from

you. On the other hand, if no-one else can do what you do, then you can often have

tremendous strength. Nirapara and Eastern are the main competitors of Double

Horse. They also give more priority to quality but Double Horse has a great history

and wide number of traditional customers.

Threat of Substitution. This is affected by the ability of your customers to

find a different way of doing what you do – for example, if you supply a unique

software product that automates an important process, people may substitute by

doing the process manually or by outsourcing it. If substitution is easy and

substitution is viable, then this weakens your power.

Threat of New Entry. Power is also affected by the ability of people to enter

your market. If it costs little in time or money to enter your market and compete

effectively, if there are few economies of scale in place, or if you have little

protection for your key technologies, then new competitors can quickly enter your

market and weaken your position. If you have strong and durable barriers to entry,

then you can preserve a favorable position and take fair advantage of it . Threat of

new entry is not a problem for Double Horse . They uses the most modern

technology for production process and distribution which helps in the smooth flow of

products in the market.


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CHAPTER THREE

ORGANIZATIONAL ANALYSIS


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Background and History

Manjilas rice saga began from the humble environs of the rice bazaar, Thrissur

which is the cultural capital of Kerala. It was here late Sri M.O John started his rice

vending outlet in the year 1959. He was a visionary who brought about a great

revolution in the rice industry. He was the founder general secretary of Vyapari

Vyvasai Ekopana Samithi, as association of the business community of Kerala. He

was also the president of Chamber of Commerce, Thrissur (1993-2000).Thanks to the

wide vision of this great man, Manjilas make about 14 varieties of rice and about

50varieties of food products under the famous brand name Double Horse.

Today Manjilas is the first ISO 9002company in the rice industry in Kerala

and presently the company has been awarded with ISO 9001:2000 certificates.

Manjilas has 6 manufacturing units, employing 600 people. These units use the state

of the art imported technology. A strong R & D department and special development

kitchen has helped to launch many innovative products giving novelty to the

customers taste and appetite.

DOUBLE HORSE is available across length and breadth of India, Middle

East, USA & Europe . As the brand logo suggests the horse is galloping to reach great

heights. For the last two years the company is on track of profit making with the

introduction of more rice items as well as food products like puttupodi ,pickles, etc.,.

All the products are of high quality. The quality of the products are much fine that

they have gained fame abroad.

Countries: US, Canada, Gulf countries are the export target of this company.

History of the Company

When M.O John started Manjilas mill in 1959, he had the only intention of

providing the pure rice to malayalees. Years ago the ancestors of M.O John were

dedicated to deliver rice for the Royal family. They were doing these processes

through buying raw rice from agriculture farms and making transform raw rice to rice.

They gave importance to quality because they have to deliver the rice to the royal

family. Now, there were no ruling and Manjilas give that much importance to quality.

In the ancient time M.O. John‘s father commenced rice trading and started it

as a business. By starting his own rice mill M.O. John gave an introduction to the rice

industry in Kerala. By starting a modern rice mill in 1976 he brought up his business


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in a new turning point. Innovation should brought up in the business but don’t be over

aggressive. This was his concept about business. Rice being an inevitable food item

he had the vision that rice should be available in at ordinary rate and for the growth of

business he was not ready to raise the price.

Manjilas introduced branded rice in the market. By introducing rice powdering

1994 they started differentiation of products. In the olden days the keralites have been

buying rice from the shop and after washing it they gave it to the mill for getting rice

powder. Because of these, all market analysts were having the doubts regarding the

success of the rice powder from Manjilas group. But within 6 months Manjilas got a

favourable reply from customers. After rice powder, by introducing idly mix, dosa

mix, easy palappam and instant idiayappam, Double Horse can lead the market

according to the needs of the society.

Food processing industry is one of the fast changing industries in the world.

To utilize the opportunities out of the changes. Manjilas used product innovation and

regular research. The children of M.O John implemented the new technologies in rice

industry and they brought at rice industry into new meaning. Now they are leading

with their father M.O.John‘s long perceptiveness and insight. After the death of M.O

John, Double Horse products entered into diversification under the able guidance of

his sons. Now, the research and developments department are working continuously

for developing new products.

Establishment

Manjilas food products were founded in the year 1995. As today’s life style

has changed tremendously, there has been a wide change in the eating habits of

people. Keeping this aspects in mind Manjilas food products has entered to the cater

the changing taste and appetite of the consumers. The unit produces various rice

based value added products, instant mixes, ready to eat products etc. in the famous

brand name Double Horse.

Manjilas has 6 manufacturing units employing 600 people. The unit used the state

of art imported technology. A strong R & D department and special developed kitchen

had helped to launch many innovative products giving novelty to the customers taste and

appetitive. The unit has a capacity of 10 tons per day and has 45 dedicated staff that is

always on the look out to give the best quality products throughout. The unit uses state of

art packaging technologies to maintain the freshness and aroma of the products. Today,

Manjilas Double Horse offers its customers the widest variety of food with more than 20

superior types of rice and 100 premium quality food products in different ranges.


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Vision: To become the leader in the food industry, offering the widest variety

of high quality food products that become a way of life for all those who love good

food, across the globe.

Mission: To come out with a wide variety of innovative food products, that combines health, taste & convenience, so as to make cooking good fun and easy.

Quality Policy

Manjilas is committed to give total satisfaction to their customers through continuous

improvement of products, processes and distribution.

Objectives of the Company

The main objective of the company is to provide quality products at a reasonable

price to its customers. They give more priority to their customers. By implementing new

technologies in the manufacturing process will reduce the cost of production. The new

objective of the company is to increase market share and to make products of the

company all over the world and thus enhance the annual turnover.

Companies Under the Group

Group of companies include Manjilas Food Tech. Pvt. Ltd., Kottekkad, Thrissur and

Vannamada, Palakkad, Manjilas Agro Foods Pvt. Ltd., Cheramangalam, Palakkad and

Naripotta, Palakkad,Q One Foods and Ingredients Pvt. Ltd., Unjuvelampetti, Pollachi,

Tamil Nadu and M.O. John & Sons (Exports), Kolangattukara, Thrissur.

Products and Markets

Manjilas started off with Rice vending outlet 56 years ago, Today Double Horse

offers its customers the widest variety of good food with more than 10 superior types

of rice and 100 premium quality food products in different ranges.

It has always stayed a market leader with introduction of Rice products almost 35 years

into the finding of the company and later moving on to Wheat products, Masalas,

Pickles, health products and instant food products. The latest in the series being the

‘Retort’ products which was a result of efforts of the R&D kitchen. With more than 100 products to offer, Double horse has become an inevitable name in

the malayali house hold.


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Following are the complete list of products from Double Horse.

Rice

In the rice category company produces Rose Matta, Cherumani , Jyothi Matta, RedRaw Rice, Matta Broken, Ponni Rice , Single Matta, Jaya Rice , Idli Rice, Raw Rice

Meals Ghee Rice, B.T.Meal and Jeerakasala Rice

Rice Products

The following are rice based products manufactured in the company- Easy Palappam

Mix, Appam Idiyappam Pathiri Rice Flour, Aval Thick, Dosa Mix, White Rice Flour,

Idly Mix, Roasted Pathiri Flour, Palappam Mix, Vattayappam Mix, Red Aval, White

Aval, Thick Aval.

Puttupodi

White Puttu Podi, Samba Wheat Puttu Podi, Chemba Puttu Podi, Ragi Puttu Podi,

Corn Puttu Podi

Wheat Product

Chakki Fresh Atta, Samba Broken Wheat, Broken Wheat, Wheat Rava, Samba Wheat

Rava, Roasted Rava, Vermicelli Roasted (Short Cut), Long Vermicelli

Instant Break Fast

Instant Idiyappam, Rice Sevai, Upuma Mix

Paysam & Kheer Mix (Sweet Dishes)

Palada Payasam Mix, Rice Palada Payasam Mix, Vermicelli Kheer Mix, Rice Ada,

Diet Payasam Mix

Health Products

Banana Powder, Health Mix, Ragi Vita, Ragi Powder.


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Instant Ready to Eat

Chakka Varatty (Jack Fruit Dessert), Pazham Varatty (Kerala Banana Jam), Boiled

Chinese Potato (Koorkka), Nadan Kappa Puzhukku (Kerala Tapioca Curry), Roasted

Coconut Gravy

Instant Ready To Eat Cup Payasams

Wheat Payasam, Palada Payasam, Vermicelli Payasam

Instant Ready to Cook Curry Mix

Chicken Biryani Mix, Kerala Meat Curry Mix, Kerala Chicken Curry Mix, Kerala

Fish Curry Mix, Sambar Mix.

Pickles

Veg Pickles, Non Veg Pickles, Vegetables in Brine

Masalas

Sambar Powder, Chicken Masala, Meat Masala, Pickle Powder, Fish Masala, Rasam

Powder, Vegetable Masala, Egg Roast Masala, Biriyani Masala, Garam Masala.

Condiments

Chilli Powder, Coriander Powder, Turmeric Powder, Pepper Powder, Ginger Powder,

Crushed Chilli, kashmiri Chilli.

Others

Coconut Chammanthi Podi, Tamarind, Jaggery, Cocount Oil, Papad, Vinegar, Soya

Chunks, Macaroni, Black Tamarind, Asafoetida Cake, Asafoetida Powder, Mustard,

Fenugreek, Cumin, Fennel, Soya Chunks Nano, Chutney Powder.

Awards

Company has received many awards/recognitions during our years of service.Following

are a few among the many. Life Time Achievements Awards to the Founder by The

Chamber of Commerce, Thrissur. Award for Management Excellence 2007 by Trichur

Management Association. Enterpreneur of the Year 2007-08 award by Investors Club,

Thrissur. Energy Conservation Award 2008 by Energy Conservation Society (ECS).


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Best Entrepreneur of the year 2009 award by The Chamber of Commerce, Thrissur.

Icon D' Product 2011-Award of Excellence by New Age Business daily. The

Emerging Entrepreneur Award 2012 by Thrissur Dist. Investure Development

Society. Best Entrepreneur of the year 2012 award by School of Management Studies,

University of Calicut.

Recognitions

Kerala‘s modern rice mill. It is the first rice mill which has branded rice product. It is the

first rice mill which has implemented LSU driver from USA.It is the first rice mill which

supply product free from adulteration. First rice mill which has introduced sorted machine

from England. First rice mill which has introduced SATAKE machineries from Japan.

First rice mill which has introduced Bubbar machineries from Buhler in Germany. It is

the first rice mill which has introduced repacking system.

Certifications

Manjilas is the first ISO 9001:2000 certified rice mill in Kerala. The company

has also been certified with ISO 9002.


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Organizational Structure

CHAIRMAN

GMMARKETING

MANAGING

DIRECTOR

AGM HR

GM

ACCOUNTS

DIRECTORS DIRECTORS

AGM

PRODUCTION

GM ASST.

PURCHASE MANAGER

IT

Figure 2

Organisation Structure

Adapted from Company Manual


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Functional Analysis

Departmentation is a process of dividing the large functions into small and

administrative units. The basic needs of the departmentation arises because of the

limitation on the number of subordinates that can be directly managed by thesupervisor. Departments are divided on the basis of functions, products, regions,

customers, time, etc. Functional basis is very popular method. It refers to grouping the

activities into small units, each with separate layout, departmental heads, employees

etc.

Manjilas has following departments- Purchase Department, Warehouse Department,

Production Department, Marketing & Sales Department, Finance Department, Human

Resource Department, IT Department, Research & Development Department, Media

and Design Department


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Purchase Department

The main duty of this department is to verify the purchase or derquantified and

value of the bill or move at store for correct address or quantity .Checking a number

of Packages received and acknowledge the bill. Preparation of daily material receiptand inform to lab authorities for inspection. After getting the inspection report is

should be entered in to the stock register.

Purchase Department Structure

GM PURCHASE

REGIONAL

MANAGER

MANAGER

EXECUTIVES

Figure 3


Mode of purchase

1. Centralized

2. Seasonal

3. Maintains minimum stock


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Company has many permanent suppliers inside and outside the state. Raw

materials Purchase from different places according to the price and quality. They give

purchase order to the suppliers according to the purchase request. The suppliers bring

materials directly to the factory. After the of goods the quality of the material will be

check, if here is any damage it will return back to the suppliers, Payment should be

done after the delivery and quality checked. Payment should be in the form of either

cash payment or demand draft. Sometimes advanced payment also given suppliers in

credit system.

Functions of Purchase Department

Procurement

To procure material economically at a cost consistent with the quality and services

required. However, generally all purchases may be attempted at the lower cost.

Market Information

In view of the fast changes in market conditions, the purchase department must keep

up-to-date information regarding the price movements, technological factors, delivery

schedule, reliability of supplies and the various terms at which goods can be supplied.

The purchase department can take this information from traders, electronic media ,

competition etc, .

Determination and description of quality

There are a number of problems in deciding about best buy and often the purchase

manager needs considerable technical knowledge before he can purchase goods of the

best quality.

Control of quality and quantity

On receipt of goods, the purchase department has to ensure that goods are of the same

quality and quantity as were ordered. This may be done through inspection and

laboratory tests.

Selecting adequate sources of supply

The purchase manager on the basis of his previous experience, marketing information and

market survey has to maintain a list of the suppliers who could supply him materials ofthe requisite quality, quantity and at the right time. More over purchase department helps

in fixing the price of the product and they must maintain a close relationship with QC and


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production department. Maintaining the optimum inventory is also important.

Warehouse Department

The Warehouse Department of Manjilas Food Tech plays a vital role in efficient supply ofgoods to its customers. Warehouse is a commercial building for storage of goods.

Warehouse Department Structure

AGM

MANAGER

ASST.

MANAGER

CO-ORDINATOR

SUPERVISOR

Figure 4 WORKERS



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Functions of Warehouse Department

Receiving

Identification & sorting

Dispatching to storage

Placing in storage

Storage

Order accumulation

Packing

Record keeping

Retrieval from storage


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Production Department

Production is the functional area responsible for turning inputs into finished

outputs through a series of production process. The production department is

responsible for making sure that raw materials are provided and made into finished

goods effectively. Production manager must make sure that work is carried out

smoothly, and must supervise Procedures for making work more efficient and more

enjoyable.

Production Department Structure

AGM

MANAGER

ASST.

MANAGER

EXECUTIVE

SUPERVISOR

WORKERS

Figure 5


Production Department Structure

The production department manufactures goods for the business which are then sold

in order to bring revenue for the business. Every aspects of production is controlled by


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production department. By controlling production, the department efficiently uses things

such as labour, machines and materials judiciously in order to prevent any wastage. The

department improves on the production of the business by bringing changes and

innovations. The production department makes sure that it produces goods or products atvery low costs in order to maximize profit. The production department works in

collaboration with the purchase department of the company in order to make sure that

materials needed for production are always available. The department also makes sure

that the machines and equipment’s used in production are serviced and properly

maintained all the time.

Production Process Complete production process is done with the help of machine and operated by

skilled people .Department will set the standards and targets for each section of

Production process. The quality and quantity of the products coming off a production

line will be closely monitored. Quality will be monitored by all employees at every

stage of production, after completed the production quality control department will

ensure the quality of the product, quality is the peculiarity of the DOUBLE HORSE

products. Company creates better working conditions for the employees and there are

around 1200 employee’s working under the guidance of 10supervisors.The complete

production process is done with the help of manual machine and operated by skilled

people. The company will check the quality of the machinery at regular intervel for

the smooth running of the production.


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PURCHASE RAW

MATERIAL

STOCK

CLEANING PROCESS

ROASTING PROCESS

MIXING IN BLENDER

POWDERING IN

PULVERIZER

PACKING

Figure 6


Production Process


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Marketing and Sales Department

The marketing department must act as a guide and lead the company

company’s other departments in developing, procuring, fulfilling and servicing

products or service for their customer’s .Communication is vital. The marketing

department typically has a better understanding of the market and customer needs but

should act independently of product development or customer service. Marketing

should be involved and there should be a meeting of the minds, whenever discussion

are held regarding new product development or any customer related function of the

company. DOUBLE HORSE has an excellent marketing network that extends across

the length and breadth of the country and has substantial network in roads into the

Middle EAST, USA , and European markets . There by ensuring a steady supply and

regular distribution of DOUBLE HORSE products. DOUBLE HORSE has created

and produced a stunning range of over 100 instant, ready to cook and ready to eat

products that replicate authentic Kerala food, with an excellent marketing.

Marketing and sales department consists of marketing manager, north area and

south area managers, area sales managers, sales executives and marketing coordinator.The marketing and sales department is headed by the Marketing manager. Marketing

department is entrusted with the function of planning and executing the consumption,

pricing , promotion and distribution of ideas , goods and services to create exchange that

satisfy individual and organizational goals. In simple term a marketing department

researching into the identifying consumer needs and employing appropriate price

,products ,place and promotion strategies in order to satisfy these needs profitably.

Manjilas introduced branded rice in the market, because is an inevitable food

item in the Kerala. They introduced rice powder, idli mix, dosa mix, easy palappam,

and instant idiyappam, into the market according to the needs of the society. They

introducing right products, at right price, at right place with a suitable brand name

DOUBLE HORSE.


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Marketing and Sales Department Structure

GM

SENIOR

MANAGER

MANAGER

SALES

MANAGER

AREA SALES

MANAGER

SALES

EXECUTIVES

SALES

REPRESENTATIV

E

Figure 7


Marketing and Sales Department Structure


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Marketing is classified into three types they are:- Domestic, National, Inter National.

Functions

It is responsible for monitoring of sales in the area. It is responsible for

monitoring of price and terms of the company products compared to the

competitors. It is responsible for processing credit proposals for dealer’s

institutions. It is responsible for processing proposals for extending special

incentives/credit terms to dealer. It is responsible for committee work for

appropriate cancellation of dealers. It is responsible for processing proposals

for special arrangements/sales terms with bulk buyers/commodity. It isresponsible for sales force motivation through internal and external training

programs. It is responsible for processing and sending replies to audit queries

at divisional level. It is responsible for monitoring the MIS from the market

research department and from field establishments. It is responsible for

monitoring overdue and outstanding of area/credit management. It is

responsible for coordinating of sales promotion and marketing development

activities. It is responsible for supervising and controlling the sales promotion

service departments.

Objectives of Marketing

To develop the market fields.

To develop the guiding policies and the implementation for good result.

To suggest solution by studying the problem relating to marketing.

To find sources for further information concerning the market problems.

To take appropriate actions in the course of action.


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Finance Department

The finance department look after the entire function of the company. The major

source of the fund is capital and reserve surplus, This department has to raise necessary

funds ,manage them, prepare finance budgets and administer its working capital .The

office supplies necessary data to finance and carry out its function effectively .It

maintains records for helping the finance manager to access the appropriateness of capital

structure .It provides the data for the preparation of the budgets and various financial

statements .The accounting function of the department includes the preparation of trial

balance on yearly basis. They also prepare managerial reports regarding expenditure of

travelling, postal, telephone and courier transactions. Finance is the most important

function to be carried to achieve the progress of the organization.

The functions of finance department are diverse with distinct procedures for

account related to personal purchase, stores marketing, work contract, costing,

budgeting, central excise etc. Payment for raw material and stores are being made in

time. The company is at present making all statutory payments in time. Finance

department include finance manager, chief accountant and accountant.

One of the major roles of the finance department is to identity appropriatefinancial information prior to communicating this information to managers and

decision-makers, in order that they may make informed judgments and decisions.


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Finance Department Structure

GM

FINANCE

MANAGER

ACCOUNTANT

CASHIER

Figure 8


Finance Department Structure

Objectives

The objective of the financial department of the company is to maximize

company’s economic welfare. There are mainly two steps for achieving this specific

objective. They are :

Profit Maximization

Profit earning is the main aim of every economic activity. No business can

survive without earning profit. Profit also serves as a protection against the risks

which cannot be measured. Thus, profit maximization is considered as the main

objective of the business.

Wealth Maximization When the firm maximizes the stockholder’s wealth, the

individual stockholder can use this wealth to maximize his individual utility. Manjilas

Food Tech is looking for expansion and this wealth maximization is very important for


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this organization. The main activities of the company finance department are broadly

classified in to three.

Receiving finance

Spending finance

Finance research & analysis

Receiving Finance

The funds are collected for the effective usage of finance resource. The

company collects funds from following sources:- The firm collects funds from its

sales procedure. The sale may be cash. In the cash sales, the cash is directly received

by the department within a certain period. Funds can be arranged as loans, loans can

be taken from the banks and other financial institutions in the form of Bank OD, cash

credit, loans etc. Company gets income from investments that made outside the

business. They are made carefully to ensure that safety, speedy and profitable.

Allocation of Finance

Finance department spends funds for the operation of the business. Funds must be

controlled correctly for the existence of business. The company mainly spends funds for

procurement of raw materials, raw materials are the main direct materials used in the

production process. The company spends above 40% of total income of the firm. The

company spends next most funds for the employees’ wages and office salary. Finance

department co-operate with HR department for this function. Funds are spending for

office expenses, power charges, transportation charges etc.

Finance Research & Analysis

The company uses various research techniques to improve the firm’s efficiency.

The various research and analysis tricks of the company are follows: The Company

uses various ratio analysis to evaluate the results of the firm. The main ratio that are

analysed were Gross Profit Ratio, Net Profit Ratio, Solvency Ratio, Working Capital

Turnover Ratio, Current Ratio and Liquidity Ratio. Company prepares all cost sheets

of production with the help of accounting department and then it control costs.

Functions

The functions of the finance department of the company are follows:


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Cost Accounting Function

Being a manufacturing company it is essential to determine the cost of

production of the products. Here all the products are manufactured as batches. So

batch cost is done. The company has no cost department.

Cash Collection and Disbursement

Company is doing credit purchase and credit sales. The company makes

payment to its suppliers within one month. The debtors of the company are also

allowed to settle the debt within one month.

Working Capital Management

Working capital is the capital required for a company to run the day – today

activities of the company. The company is satisfying its working capital requirements

by using retained earnings.

Taxation

Taxation means an amount that is payable to Government on the basis of

income earned through a business. Every company has to pay income tax on the basis

of their income. They also want to pay Sales Tax to the Government.


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Human Resource Department

Human Resource Department is the department or support systems responsible

for personnel sourcing and hiring, applicant tracking, skills development and tracking,

benefits administration and compliance with associated government regulations.

A human resources department is a critical component of employee well-being in any

business, no matter how small. HR responsibilities include payroll, benefits, hiring,

firing, and keeping up to date with state and federal tax laws.

HR Department Structure

AGM HR

MANAGER

ASST.

MANAGER

EXECUTIVES

Figure 9


Human Resource Department Structure

Functions of HR

Manpower Planning and Recruitment

Human resources are regarded as the only dynamic factor of production. Other

factors like materials, methods, machines, money etc. are useless without their effective

use by the human resources. Thus, it is logical that there should be proper manpower or

human resource planning in the organization to use the other resources effectively. HRDepartment forecasts the manpower requirement for the financial year in line with


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the organizational objectives. They mainly depend on the internal sources of the

organization. Average time to fill the vacancy is 45 days & maximum 90 days.

Maintaining Attendance and Pay rolling

It is one of the major function of HR department in this organization. They get

the attendance downloaded from the Bio Metric Scanner by the location HR

representatives who are appointed in all factories of Double Horse. They send the

attendance to the HR persons in the Head Office for helping them to prepare the

Salary Statement and send to accounts for transfer.

Statutory Compliances

Preparation of Statutory Compliances is another important function.

Preparation of Provident Fund Statements and ESI etc.,. They must remit it on time

otherwise they must pay the damages for delay.

Training and development

Training and development is a function of human resource management

concerned with organizational activity aimed at bettering the performance of

individuals and groups in organizational settings. It has been known by several names,

including "human resource development", and "learning and development".They

identify the training needs in co-ordination with representative head of departments

and prepare the Training Calendar for the training.

Performance Management System

Each role of the employees of the organization has to be appraised or evaluated

with their functional KRA’s and soft skills which ar e already set in the organization.

After evaluation of employees, they decide the promotions and salary hike depending

upon their performance.

Staff Welfare Activities

The organization is in the process of modifying the existing Staff Welfare

Measures by introducing new beneficial welfare measures to the employees and their

families.


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Record keeping by the department

Personal file: The department keeps separate personnel file for each

worker an employee whom permanently employed.

Leave Register.

Insurance records: Insurance record of human resources and the

factory premises are kept and adopted by personnel department.

Salary slip and Wage Register

Others: Personal department keeps all the record related with thefactory licensing with all level of government and local authorities.

Marriage fund

Marriage funds are provided according to the year of experience and grade of

employee. (For eg: an executive officer with 3 year experience will get 1000 as

marriage fund)

Social activities

The company takes care of the needs of the local people with the consideration

.The includes construction of buildings ,waiting shed ,donation to various charitable

organizations, uniforms and books for pure children etc.

Research and Development Department

Double horse food products have well established R & D department involved

in the development of traditional as well as innovative products giving novelty to the

customers taste and appetite. As a part of the golden jubilee year (2009), the company

aimed at launching 50 new products with prime importance for ready to eat products

and masala mixes.

Quality Control Department

Quality control department refers to the ways and means where quality standards

are maintained. The aim of quality control is not only to improve quality of products, but

also to eliminate bad quality goods. Once the quality standard is set, then it should be

achieved and maintained in future and efforts should be made to improve


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it further. Manjilas group of companies have set up a quality control department for

the purpose of determining the quality of the product. Different types of tools are used

for the purpose of checking control. Their department consists of 7 people headed by

the quality control manager. Double horse emphasis on maintaining strict quality

parameters that involves the detection of total bacterial count, Total fungal count,

Collide forms, Detection of pathogens like e.coli, Staphylococcus, salmonella,

bacillus, listeria, clostridium and so on.

IT Department

The company has a good IT team that helps out with the data management,

computer networking, computer engineering, database systems design, software design,

Management Information Systems, systems management or system administration. The objectives of the IT department includes:

To ensure protection and security of data.

To minimize duplication of effort, services and resources.

To eliminate inefficient and costly redundancies.

To eliminate non compatible standards and architectures.

To identify obstacles for departments wanting to move computing operations

to the division of information technology and solve it immediately.

SAP (Systems Applications and Products) was implemented and centralized in the

company in the year 2005. SAP enables fast transaction and is systematic in all its

functions. SAP also helps in generating MIS reports which help in decision making.

Media and Design Department

Media and design department deals with the advertisement and promotional

activities required for the products and the company. The design department is mainlyfocused on the outlook of the packing material of a desired product. Media department

associates with the advertisement and all the necessary promotional measures required for

the selling of a product. Media has a huge role in the sales of the product produced.

The brand ambassador of Manjilas Double Horse is Ms. Shobana, renowned for her

exquisite dancing and acting skills.


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Organizational Analysis

Key Resources

Key resources are the important resources behind the success of theorganization. Manjilas, the mother brand of Double Horse, was founded in the year

1959, as a rice milling company selling high-quality rice grains. The brand, on the

strength of its commitment to deliver only the best to its customers have witnessed a

phenomenal growth over the years. The goodwill among the customers is one of the

most important resources of Double Horse. This goodwill is generated by the quality

assurance policies of Manjilas. Double Horse is the first ISO 9001:2000 certified Rice

Mill in the Kerala, the company follows stringent quality checks at every stage of

production- right from procurement to packaging so that only the best food, in all its

natural goodness, reaches to its customers.

The raw materials are chosen by expert professionals and procured from the

finest sources across the country, in order to ensure consistent quality and taste. The

products are then sorted, cleaned and processed/blended in hygienic environment, to

retain their natural taste, nutrition and flavour; and then packed using state-of-the-art

technology to seal in the freshness. Double Horse does not use Class II preservatives

(Sorbites, Sulphites, Benzovites) that are harmful to health. Hence, even in preserved

categories like veg pickle ranges, only natural preservatives like salt, vinegar and

vegetable oil are used. No Double Horse products contain artificial sweeteners,

flavouring or chemical colours.

Manjilas Double Horse offers its customers the widest variety of good food

with more than 20 superior types of rice and 100 premium quality food products in

different ranges. The instant products like instant idiyappam , instant palappam etchelps to maintain a strong participation in the market.

Another important resource of Manjilas is the human resources of the

organization. As it is a family concern the Board of Directors have a close touch with

the employees of the organization. It will create a positive attitude among the

employees and they work well for the development of the organization. The company

provides so many facilities to it’s employees like interest free loans , free food etc., .

They provide free lunch to the employees.


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Warehouse of the company is situated at Kottekad in Thrissur which is the

central part of Kerala. The market of Manjilas in kerala is classified into two , North

and South. The warehouse in Thrissur help them to supply their products without any

delay. The technological development in the organization is also a major resource ofManjilas . SAP (System Assessment Procedure) was implemented and centralized in

the company in the year 2005. SAP enables fast transaction and is systematic in all its

functions. SAP also helps in generating MIS reports which help in decision making.

An Application called Field Max is also used in this organization which was

developed by Technopark, Trivandrum. It reduces wastage of time of marketing

executives by providing real time ordering of products.

SWOT Analysis

A tool that identifies the strength, weakness, opportunities and threats of an

organization. Specifically, SWOT is a basic, straight forward model that assesses

what an organization can and cannot do as well as its potential opportunities and

threats. The method of SWOT analysis is to take the information from an

environmental analysis and separate it into internal (strength and weakness) and

external issues (opportunities and threats). Once this is completed , SWOT analysis

determines what may assist the firm in accomplishing its objectives , and what

obstacles must be overcome or minimized to achieve desired results.

A SWOT analysis is structured planning method used to evaluate the strength, weakness,

opportunities and threats involved in a project or in a business venture . A SWOT

analysis can be carried out for a product ,place , industry or person. It involves specifying

the objectives of the business venture or project and identifying the internal and external

factors that are favourable and unfavourable to achieve the objective.

Strength

The decisions made in the company are quick. The company changing in a rapid

phase. There is no major competition apart from three or four unique products.

Manjilas Food Tech being a family oriented business so there is a close touch with the

employees of the organization. There are no labour union which is big merit. The

company policies are employee friendly policies.


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Weakness

There is resistance to change by certain employees. There is a lack of corporate

structure. There is an infrastructural limitation.

Opportunities

There is high boom in the market. They have very good governmental support. There

is a customer income. Indian products exported to foreign countries are gaining

demand. There is an increase in brand presence in other states. There are more

professionals in the organization.

Threats

Changing market scenario because of more competitors planning to enter into the

market is a major threat for the organization. There is a poor infrastructural break

downs. Frequently changing government policies and tax rates is a major threat for

the organization.


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CHAPTER FOUR

OBSERVATION AND CONCLUSION


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Observations

Effective welfare measures have been provided to the employees and there is a

good team spirit among the employees. There exists good employee-employer

relationship. The company maintains a safe and secure atmosphere.

Company considers training and development of employees important and as part

of its responsibilities. Manjilas food products mainly focusing on traditional foods

with great quality. They provide wide variety of goods in the market. Manjilas is

stricter in quality of products and quality checking can be done through modern

techniques.

Conclusion

The organization study done on Manjilas Food Tech Pvt Ltd. helped me to get clear

picture of the organization and its management function. The employees of the

company are satisfied with the company and Double Horse is one of the leading

manufacturers of food products in Kerala and outside Kerala. Company is well

equipped with most modern machinery and technology to produce the whole

variety of products in the market. The study has accomplished several goals. The

study has helped to familiarize with working conditions of the organization. It has

helped to study the coordination among various departments. It also helped to

understand the various operations of the departments in the organization.


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BIBILOGRAPHY

Aswathappa, K. (2005). Resource and Personal management .New Delhi:Tata McGraw-Hill Publishing Company Ltd. Fourth edition

Aswathappa ,K., SridharaBhata, K.(2005). Production and Operations

management .place of publishing:Himalaya Publishing House

Jain, P.k. Khan, M.Y.(2005). Financial management. place of

publishing:Tata McGraw-Hill Publishing Company Ltd, Fourth edition

Kothari, C R.(2004). Research Methodology. place of publishing: Prentice-

hall of India Private Limited, Eleventh edition

Flippo, Edward .B.(1984). Personal Management . New Delhi: Mc Graw Hill

Kotler, Philip. ( 2009). Human Resource Management . New Delhi: Newage Publication.


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Documents

Organiztional study at Double Horse