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BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
PART I : INDUSTRY PROFILE
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 1
ABOUT GENERAL MOTORS
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
WILLIAM DURANT GM HEADQUARTERS IN DETROIT
ABOUT GENERAL MOTORS
Founded in 1908,General Motors Corporation, the world’s largest vehicle manufacturer,
designs, builds and market cars and trucks worldwide. GM’s vision is to be the world leader in
transportation products and the most exciting lineup in its history.
The company will earn its customers enthusiasm through continues improvement driven
by the integrity, work, and innovation of GM’s people.
GM today employs more than 3,24,000 people around the world. It has manufacturing
operation in 32 countries and its vehicles are sold in 200 countries. In 2004 GM sold nearly 9
million cars and trucks globally, up to 4 percent and the second highest total in the company’s
history. In 2004 for the 4th consecutive year, GM set industry sales records in the United States,
its largest market, for total trucks and sport utility vehicles. GM’s global headquarters are at the
GM renaissance center in Detroit.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 2
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
GM’s major markets are North America, Europe, Asia Pacific, Latin, Africa, America
and Middle East. Its largest market is North America, where it is in 78 th year as market leader.
GM cars and trucks are sold under the following brands: Cadillac, Chevrolet, Buick, Holden,
Hummer, Pontiace, Saap, Saturn and Vauxhall.
GM is investing aggressively in high technology and e-business within its global
automotive operations and through such initiatives as e-GM, GM by power, on star and its
Hughes electronics corporation (NYSE : GMH) subsidiary. GM also one of the world’s most
successful financial institutions, General Motors ‘administrative corporation (GMAC). Other
major subsidiaries include General Motors locomotive group and Allison transmission division.
The GM group of global partners includes Fiat auto SPA of, Fuji heavy industries
limited, and Suzuki motors corporation of Japan, which are involved in various product power
train and purchasing collaborations. In addition GM also has technology collaborations with
BMWAG of Germany and Toyota Motors Corporation of Japan and vehicle manufacturing
ventures with several auto makers around the world, including Toyota, Suzuki, Shanghai
automotive industry corporation of China, AUTOVAZ of Russia and SA of France.
GM brought brand differentiation to the world back in the year 1920’s, when Alfred
Sloan created the price ladder of GM Marques that offered “ A car for every purse and purpose”.
Today the GM product revolution again in strengthening its brands, with more innovative
marketing that better understand the customer. Witness the incredible renaissance of Cadillac,
led marketing that red by all new cars and trucks that have gone in a unique design direction, and
by marketing that really connects with potential buyers.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 3
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
Building on the success of CTS sedan and escalade series of SUVs, Cadillac’s
renaissance was enhanced further last year with the highly praised.
XLR roadster, the SRX performance utility vehicle stunning sixteen concept car. To
reclaim the mantle of “ Standard of the world” Cadillac must continue to further upscale the
ultimate statement of luxury Stay tuned.
Lesson learnt at : in short, develop, distinctively designed, high quality vehicles that
reinforce the brand’s image, support this with strong and innovative advertising, and the buyers
will come.
Around the world from Thailand to South Africa to Russia, Chevrolet is establishing
itself as a truly global, mainstream brand that across its lineup offers great value and quality that
consumers can trust.
Designing and selling great cars trucks that people really want to own. That’s
fundamental business of GM.
Compelling design excite customers and connect with them on an emotional level. Well-
designed vehicle turn heads and fire the imagination. Gm’s goal is to develop cars and trucks that
have an emotional appeal for a new generation of consumer’s cars and that people feel they must
have.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 4
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 5
General Motors Company
Type Public
Traded as NYSE: GM
Industry Automotive
Founded September 16, 1908
Founder(s) William C. Durant
Headquarters Renaissance CenterDetroit, MichiganUnited States
Number of locations
156 facilities on six continents[1]
Area served Worldwide
Key people Daniel F. Akerson, Chairman and CEO
Products AutomobilesFinancial Services
Revenue US$ 150.28 billion (2011)[2]
Operating income US$ 9.287 billion (2011)[2]
Net income US$ 7.585 billion (2011)[2]
Total assets US$ 144.60 billion (2011)[2]
Total equity US$ 38.99 billion (2011)[2]
Employees 207,000 (2012)[1]
Divisions ChevroletBuickCadillacGMC
Subsidiaries General Motors IndiaACDelcoGM Components Holdings LLCOnStarAdam Opel AGGM Holden LtdGM FinancialGM KoreaGeneral Motors do Brasil
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
SOURCE: http://en.wikipedia.org/wiki/General_Motors_India_Private_Limited
The Mission Statement of the General Motors Car Company and the Chevrolet Brand :
The unofficial mission statement of General Motors Car Company and the Chevrolet brand come directly from Chairman and CEO Dan Akerson...
"We win when the customer says we win."
5 PRINCIPLES OF GM
"Safety and Quality First
Create Life-Long Customers
Innovate
Deliver Long-Term Investment Value
Make a Positive Difference"
OBJECTIVES OF GENERAL MOTORS
Customer is king.
Provide a convenient and comfortable environment.
Be professional and well groomed.
Welcome customer like a guest at a home.
Identify and anticipate needs.
Present your products professionally and selectively.
Test free.
Provide efficient purchase consultation and hassle free paper work.
Deliver vehicle on time with “ RESPECT”.
Ensure religious post sales follow up and take corrective actions as required.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 6
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
AWARDS
BBC World ‘Wheels’ Car of the year 2003.
BBC World ‘Wheels’ Viewer Choice Award 2003.
BBC World ‘Wheels’ Best car in its segment 2003.
CNBC Auto car Value for Money Car 2004.
CNBC Auto car Viewer Choice Awards 2004.
Target Achievement Award 2008.
INDUSTRY OVERVIEW
India has long term potential to become a significant vehicle market. Its of which (150-
250 are million class), and a vehicle population of 3.5 million(equipment to only 3.4 cars per 100
people). However, infrastructure within the cities and throughout country side coupled with
India’s restrictive automobile import and investment regulation indicates India has a long way to
before automobile and the auto industry reach the level of importance they hold in the developed
world.
For example: Indian govt taxes account for half of the price of a new car, which further explains
why passenger car sales production in the two-wheeler segment (scooter, motorcycles and
mopeds).
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 7
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
An improving economy and a large un served market coupled with import restriction are
driving the major auto manufactures to invest in India Hyundai, Daewoo, Fiat, Honda and
Toyota are investing heavily into a market that ford and General motors (GM) entered in mid-
90’s Recent sale figures show the heavy foreign investment may be paying off, especially for
Hyundai & Daewoo, whose market share is rising at the expense of the more established
manufacturers. On the other hand, the increased investment has led to production capacity that is
more than twice the level of reported sales, which means a competitive market where some
manufacturers may be forced to retreat or increase exports.
Prior to the early 90’s there were only 4-cars companies manufacturing and selling cars in
India. Foreign investment was effectively banned and foreign technology transfers were subject
to government approvals. This period was characterized by strong licensing regulations in a
small market with a law technology vehicle. In 1983 the government of India approved and
become 50/50 partner with Suzuki to form the industry’s called Maruthi udyog.
Maruthi Udyog rapidly became remained the overwhelming market leader with nearly
75% of the passenger car market.
By 1993, the Indian government de-licensed the Indian car industry which eased other
forign auto manufacturers entry into the market first under joint partnerships, then wholly owned
subsidiaries. The major auto manufacturers were further encouraged to enter the Indian market
with tax mince natives, in contrast to foreign investment liberalization, the import regime
remains restrictive.auto’s may only be imported with a license and Completely Knocked
Down(CKD) and Semi Knocked Down (SKD) kits can only be imported after signing a
memorandum of understanding with the Indian Govt. as a result there was been a high rate of
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 8
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
foreign investment in the auto sector between 1993 and 1996, India’s vehicle market expanded
from 371,630 vehicle (passenger and commercial) to 735,985.
Analyst predict a more modest growth forecast through 2003. The decreased automobile
demand is being augmented by a second income or high wages. Sales have also increased
because the manufacturers have introduced new, more advanced models to the Indian market,
which Indian customer have had the opportunity to buy in the past.
There has been trend over the previous year for foreign auto manufacturers to increase
their equity shares in their joint venture. This trend has been fueled by lower than expected sales
coupled with higher than expected capital expenses associated with the introduction of new
models.
ABOUT CHEVROLET
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 9
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
SOURCE:
http://en.wikipedia.org/wiki/Chevrolet_Sales_India_Private_Limited
PART II- COMPANY PROFILE
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 10
Type Division
Industry Automotive
Founded November 3, 1911
Founder(s) Louis ChevroletWilliam C. Durant
Headquarters Detroit, Michigan, U.S.
Products Automobiles
Owner(s) General Motors Company
Website Chevrolet.com
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
ABOUT BELLAD & COMPANY
INTRODUCTION
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 11
ABOUT BELLAD & COMPANY
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
Bellad Enterprises Private Limited was appointed as exclusive sales and service center by
GM. Before they were dealers of Daewoo motors which merged with GENERAL MOTORS.
Was the joint venture company of GM cars {India} covers all districts on northern Karnataka
these are:
Dharwad
Belgaum
Haveri
Gadag
Bijapur
Bagalkot
Uttar Karnataka
Gulbarga
Davanagere
Karwar
Bellad Enterprises is the second authorized sales & services center after the one in
Bangalore, Mangalore & Mysore. Chevrolet, Optra, Tavera are the model developed by GM for
the India market based on a closed and detailed study of the local condition, needs & aspiration
of the customers.
The current market share of the GM is about 20-25% of the mid-size premium car
segment.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 12
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
GM has been awarded the 1st in customer satisfaction in the J.D Power Asia Pacific
Customer Satisfaction Study of the Year 1999 and 2000. The study was based on a total 2,236
customer response. GM believes that marinating a healthy world for a future generation is a
fundamental responsibility of the industry. This is why the GM legacy and tradition of making
world’s most powerful fuel efficient and clean set burning engines continuous in India with
GM.
Bellad & Company is a vision of Mr. Chandrakanth Bellad & Mr. Aravind . C . Bellad
(MD of Bellad Groups) son of Chandrakanth Bellad. He wanted to establish an organization
which provides the best services to the customer and their main mottos was satisfying the
customers and make them happy. Bellad & Company were establish in 1960 and it is most
successful and is known for its quality.
General Motors India Ltd., & taken over by Chevrolet Sales Corporation Ltd. with Sales &
Service branches at Hubli, Belgaum & Bellary.
In the year 2003, the group formed one more company as Bellad Enterprises Pvt. Ltd.
(BEPL) to carry out the dealership of General Motors Cars. At present, BEPL is one of the top
dealers of Chevrolet cars in the South India region. The firm has set up an exclusive showroom
for Chevrolet cars at Rayapur on Hubli Dharward Highway, Belgaum & Bellary.
DIVISIONS
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 13
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
Bellad & Company is big organization and it is providing employment to many people
and all the employees are proud of their organization. They are having job and are motivated to
work and give their 100% result.
BELLAD & Company is having 10 Divisions:
HMT Tractor Division.
HMT Spares Division.
Pennzoil Division.
Hyundai Division.
General Motors Division.
Wind Power Division.
Hero Honda Motors Division.
Sony Exclusive Division.
Ashok Leyland Division.
Bellad Construction Co.
Bellad & North has taken an initiative steps into wind power & they are the 3 pioneers in North
Karnataka in Wind power.
PROMOTERS
Bellad Enterprises Private Limited is a private limited company and following are the directors of the company:
1. Shri.Chandrakanth.G.Bellad
2. Shri.Aravind.C.Bellad
3. Smt.Leelavati.C.Bellad
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 14
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
4. Smt.Smruti.A.Bellad
Mr.Chandrakanth Bellad has over more than 30 years of rich experience in business & industry
and he is the chairman of this company.
Mr.Aravind Bellad,the other promoters this concern is an engineering graduates and he has been
in the family business for over more than 11 years after qualifying Bachelors of engineering
degree in 1991.He is the managing director. Under the management of this people, the business
is flouring rapidly.
PRODUCT LINES
Bellad Enterprise have three product lines as shown below:
CARS
SPARES
ACCESSORIES
“Bellad group will strive to excel by following highest standard of fairness, ethics and
professionalism to create a sense of belongingness and commitment to its customers, employees,
principals and business associates and contribute to the society and green revolution”
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 15
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
VISION STATEMENT OF THE GENERAL MOTORS DIV, BELLAD ENTERPRISES
PVT, LTD:
“A car for every purse and purpose”.
MISSION STATEMENT :
“To develop cars that have an emotional appeal for a new generation of consumer’s cars
and that people feel they must have.”
INFRASTRUCTURE
The General Motors was set to find out ``Customer Satisfaction of GM Cars” in Bellad
Enterprises . The company is situated at Rayapur, Hubli established in the year 1981. Good
infrastructure, qualified and trained men power. Uses of computerized diagnostic equipment and
a total commitment towards quality and service and innovative ideas were the key element in the
achievement of a successful company.
The basic facilities include 7,500sq,ft.of covered area and 10,000sq,ft.of open area
with spectacular showroom. The Company is equipped to cater to more than hundred vehicles
per day with latest computerized diagnostic equipment for accurate, diagnosis, rectification and
speedy repairs.
The accident repair section has modern repair facilities with a dust free paint booth for a
factory finish. AQ team of trained and skilled engineers cars of the vehicles, leaving nothing to
chance.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 16
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
MANAGEMENT
CEO
The chief Executive Officer of the Bellad Enterprises is Mr.Aravind.C.Bellad.
The Functions of CEO:
The CEO is responsible for the overall functioning of the company.
He has the authority for approving the quality manual, quality policy and quality
objective of the company.
The CEO will provide all type support to the Management Representative in
implementing and maintaining quality system in the company.
GENERAL MANAGER
The General Manager of the organization is Mr.K.G.Kulkarni.
The functions of General Manager
As the head of the organization, he is responsible for the overall functioning and
administration of the company.
To take effective decision in the track of selected plan and to meet the objectives.
To maintain formal relationship with employees as well as customers.
To have a proper check over daily works.
To provide training for employees.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 17
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
ORGANIZATIONAL STRUCTURE
The GENERAL MOTORS DIVISION of Bellad Enterprises is having centralized
type of organization structure. At the top level there is Mr.Aravind Bellad , who is the
Managing Director and Mr.K.G.Kulkarni who is the General Manager of the GENERAL
MOTORS DIVISION.
Decisions which are having major a importance are taken by the Managing Director
Mr.Aravind Bellad himself. All the decisions taken by him will be having the consideration of
the welfare of the company, employees of the company satisfaction.
People who are the customer are fully satisfied with the services given by GENERAL
MOTORS and the employees who are working here feel comfortable and they know that the
decision taken by the MD will be for their welfare and hence there is no room left for any kind of
dissatisfaction due to centralization.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 18
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
DIAGRAMETIC REPRESENTATION
Source: company projection reports
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 19
Managing Director
General Manager
Front OfficeMarketing
Department
Back Office StaffFloor InchargerService Asst.Supervisor
Service Department
Administration Department
Spare Department
Spare Asst.Works Manager
Front Office Staff
Sales Manager
Sales Executive Front Office Executive
Wash BoysHelpersMechanics
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
PART III
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 20
FUNCTIONAL DEPARTMENTS
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
FINANCE DEPARTMENT
FINANCE
The Bellad and company has tied up with Housing Development Finance Corporation
(HDFC) Bank,State bank of India(SBI),Sundaram Finance Ltd & AXIS Bank help in case of
Metropolis like Bangalore and Delhi.
Following books are maintained by the accounts department:-
Petty cash book
Purchase register
Credit note register
Journal register
Sales register
Functions:
In case of purchase of cars, accessories and spares,the finance department handles the
transaction. This payment goes through the finance manager.
All cheques are authorized through the manager.
The financial manager prepares financial reports every month and submits them to
management.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 21
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
INSURANCE
It is headed by Mr.Uday Hubballi. Bellad and company has tied up with IFFCO-TOKIO
Insurance Company which offers you a dual benefit for your car and complete peace of mind for
yourself. .
In case of an unfortunate event of damage to your in an accident etc. the company itself
takes care of everything from picking up damaged vehicle intimation to the local NIC office,
arrangement, repairing, managing the salvage to getting the claim settled using with NIC. The
quality of repairs is ensured at the state of art dealer’s workshops using genuine spare parts with
complete transparency.
The major benefits of IFFCO- TOKIO INSURANCE Company are:
Near cashless post accident repair.
Nationwide at all General Motors Authorized Dealer Workshop.
Transfer of no-claim bonus as per rules.
Easy settlement of claimant with virtually no follow-up.
ACCOUNTS
The account section contains checking of account related to cash transactions. Proper
checking of account is necessary to take decision for future.
Functions
Bank Transaction: This is considered only when the customer takes loan through the
banks for buying the car.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 22
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
Daily reconciliation:
The daily checking of account is necessary for future decision. It also helps in building
to the goodwill of the firm.
Party ledger :
Here, the ledger prepared for each and every customer, as some of the customer many
purchase he car on cash or on loan basis. It will help to know about sales figure of the
company.
HUMAN RESOURCE DEPARTMENT
FUNCTIONS
1. PROCUREMENT OR PERSONNEL:
It is the work of the human resource department it determine the manpower
requirements.
This department also determines sources and process of recruitment.
After recruitment the HR does placement and induction to the new employee
2. REMUNERATION :
The human resource department is concerned with the determination of wages
and salaries of the company employees. Factors that the company consider for
remuneration include requirement of the job, financial capacity of the company,
employees basic needs etc.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 23
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
3. INTEGRATION OF HUMAN RELATIONS:
The maintenance and promotion of harmonious relation between employees and
management is a function of the HR department.
The HR manager provides an efficient system of communication by being in
touch with the grievances of the people at the work and tries to remove them.
In all circumstances, the HR manager maintains proper discipline in the company.
4. MAINTAINANCE OF PERSONNEL:
This means to keep the worker engaged on their work with good health and with
full loyalty to their jobs and to the organization. This function involves provision
of better working conditions, medical benefits, rest rooms etc.
MARKETING DEPARTMENT
MARKETING
Marketing has a task of influencing the level of timing and composition of demand in a
way that will help the organization achieves its objective. In other words marketing is nothing
but advertising and finding the niche market and catching the potential market for the product.
The functions of the marketing department include the whole process of distribution and
the process before distribution. Marketing makes the goods useful to the society by getting them
where they are wanted, when they are wanted and by transferring them to those whom they are
wanted.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 24
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
The type of customer purchasing cars from the Bellad Enterprises range from doctors,
Engineers, Business people, Government employees, all earning around rs 50,000 per month.
This company offers the following brands to its customers:
OPTRA TAVERA
Bellad Enterprises using the selling concept to sell its cars this concept assumes that
consumer will not buy enough of its produce unless they are approached through intensive sales
promotions, advertisement and salesmanship efforts and also effective communication with the
market. This concept emphasizes the prominence of advertising and salesmanship, publicity
campaigns and promotions in the marketing process.
SALES
Marketing
It includes providing product knowledge to the customers through advertising
and it also includes the sales promotional activities.
SHOW ROOM AND FIELD SALES
Show room sales are done by he show room executive when the new customers
enters into the show room and who is interested in buying the vehicle.The field
sales are done by the representatives. Here the list of customers is collected from
the secondary sources.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 25
CHEVROLET
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
QUOTATION
The quotation is provided to the customers, who are interests in buying the
vehicles. It contains the detailed information about the vehicle, i.e model, colors,
available, features of the vehicle, ex-showroom, price, insurance amount, etc.
ORDER BOOKING
The booking of vehicle is according to customer’s needs and wants. Here , each
and every elements is taken into the consideration, i.e color, price, date of
delivery, accessories etc.
INVOICE
The invoice contains the detailed information about the vehicle, which the
customer is going to buy. It contains the chassis and engine number of the
vehicle.
DELIVERY OF VEHICLE
Invoice, sales letter and gate pass will be prepared and the customer signature is
taken on the letter at the time of delivery.
FOLLOW UPS
Whenever the customer purchases the car on loan basis, it is the duty of the
organization to inform the customer regularly about the repayment of loan.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 26
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
EXPENSES CONTROL
Here proper steps are taken by the management to control the expenses related to
finance and accounts.
ACCESSORIES AND SPARE PARTS DEPARTMENT
ACCESSORIES
It is headed by Miss. Reth . D . This section deals with proper maintenance of
accessories required for the vehicle. The accessories include the seat covers, wheel cap, brakes,
air freshener, show piece, wipers, car polisher etc.
SPARES AND STORES
It is headed by Mr. Mallikarjun .Hiremath. procurement of spares includes supply
as required. Issue of spares provides all the necessary to the three work shop whenever the
servicing work is carried out. In case of counter sales the spares are sold. They include oil, bolts,
lubricants etc. and in case of spares each and every kind of spares is maintained properly. Highly
spares having more demand should always be kept ready without shortage.
WORKSHOP
This section is headed by Mr. Gasper Fernandes along with supervisors and mechanics. This
department contains imported machines like injector, cleaner, wheel alignment machines, spark
plug cleaner, wheel balancing machines etc.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 27
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
SERVICE PROCEDURE
Service activities start with the entry of customer into the front of workshop
department . The customer have to handle their queries with concerned workshop with opening
of job card. The details Are entered in the job card and the vehicles are booked for service
depending upon the workload.
The vehicle is then thoroughly inspected in front customer and then the
requirement will be explained to the customer with fault severity. Then the job cards are opened
and the repair or service demanded by the customer is entered. The estimated cost and estimated
delivery time shall be cleanly explained to the customers.
If the case is detection of any fault in the vehicle, it is then done at extra cost and
delivery time , by estimating priority to the customer verbally or through mail.
This department is also concerned care. The customer care deals with those
customer who have problems regarding their vehicles.
DENTIG AND PAINTING
This is the department in which accident cases are dealt and the procedure for
repairs goes hand in hand with the insurance agent who inspects the vehicle and then gives order
for further repairs.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 28
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 29
CAR SEGMENTATION
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
SPARK
This is the most awaited car from the GM stable as finally launched on April 17, 2007.
The car boasts great styling, superb performance, and class leading features, practical interiors
and unmatched fuel efficiency. With some never seen before innovations, the Spark is already
sparking off a revolution in the mini car segment. The spark communication is focused on a
personality for the car a personality which is witty, intelligent, tongue-in-check, humorous,
naughty, charming and lovable essentially ‘ fuel of life’. And this is route which is being used to
communicate the product strengths that make the SPARK a widely popular car across over 100
countries globally.
OPTRA SRV
Chevrolet’s Optra SRV is a perfect combination of traffic- stopping looks, truly
international styling and great performance. It sports an aerodynamic sporty form, individualized
looks while not compromising on roominess, finish nd comfort. The Chevrolet OPTRA SRV is
targeted at individuals displaying a youthful, trendy, outwardly, energetic, exuberant and
unrestrained personality.
AVEO
The Chevrolet AVEO is a new- generation car with class leading performance, amazing
looks and style along with a great mileage. The high impact advertising campaign for the Aveo is
designed to connect emotionally with the audience. The campaign also highlights the dimension
of performance and aesthetics, substance and style plus class and exuberance. It’s a campaign
with style, class and depth things which can be associated with the Chevrolet Aveo.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 30
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
CAPTIVA
The Chevrolet Captiva is the largest offering from the GM in India. It is smart and
dynamically styled SUV that will set a new benchmark in the segment by providing exceptional
combination of next generation diesel technology, refined performance and drop dead gorgeous
looks, both inside and outside. With its smart proportions, strong, sporty design and
comprehensive range of equipment, the new Chevrolet Captiva is perfectly tailored to Indian
customer.
TAVERA
The MUV segment is one of the fastest growing segment today and the Tavera is key
player. The Tavera was launched as the comfortable family car which serves the multiple needs
of typical joint family in India, thus making it a versatile car. It is an ideal vehicle for Indian
roads with study build quality, class leading fuel efficiency and low cost of ownership.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 31
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
PART IV
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 32
McKinsey 7S Model
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
McKinsey 7S Model
According to Mckinsey & co strategy is only one of seven elements in successful
business practice.
The first three elements strategy, structure & systems are considered the hard ware for
success.
The next four style, skills, staff & shared values are the software.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 33
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
1. Strategy: the plan devised to maintain and build competitive advantage over the
competition.
The company has the following set of strategies;
Emerging multi-brand strategy is being rebuilt with a more upscale image
through an entire new lineup of existing products.
Offers great value and high quality vehicles that consumers can trust and
reinforces the brand image.
Strong and innovative advertising.
Distinctively designed vehicles.
2. Structure: the way the organization is structured and who reports to whom.
The GENERAL MOTORS DIVISION of Bellad Enterprises is having centralized
type of organization structure. At the top level there is Mr. Arvind Bellad, who is the
Managing director and Mr.K.G.Kulkarni whois the General Manager of the
GENERAL MOTORS DIVISION.
Decisions which are having a major importance are taken by the Managing
Director himself. All the decisions taken by him will be having the consideration of
the welfare of the company, employees and the customer satisfaction.
And the employees who are working here feel comfortable and they know that
the decisions are taken by the MD will be for their welfare and hence there is no room
left for any kind of dissatisfaction due to centralization.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 34
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
3. Systems: the daily activities and procedures that staff members engage in to get the
job done.
Top level staff members of the Bellad Company are responsible for the overall
functioning of the company.
They have the authority for approving the quality manual, quality policy
and quality objective of the company.
The CEO will provide all type of support to the management
Representative in implementing and maintaining quality system in the
company.
As the head of the organization, he is responsible for the overall
administration of the company.
Engaged in to take effective decision in the track of selected plan and to
meet the objectives.
To have a proper check over the daily works.
To provide training for employees.
Accessories department staff members are deals with proper maintenance of
accessories required for the vehicle.
Spares and Stores department staff members are involved in procurement of spares
includes supply as required.
Workshop department contains the imported machines headed by supervisors along
with mechanics.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 35
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
Finance department staff members handles the transaction and payments goes
through the financial manager. Financial manager prepares financial reports every
month and submits them to management.
Account section staff members contains checking of account related to cash
transactions.
Human Resource Department staff members are concerned with the determination of
manpower requirements, wages and salaries of the company employees. This
department also determines sources and process of recruitment. after recruitment
HR does the placement and induction to the new employees.
The functions of the marketing department staff members include the whole process
of distribution and the process before distribution. Marketing the cars , showroom
and field sales, order booking, invoice, delivery of vehicle these functions are
performed by the marketing department staff members.
4. Staff : The staff of the Bellad Company, who are working here feel comfortable and
they know that the decision taken by the MD will be for their welfare and hence there
is no room left for any kind of dissatisfaction due to centralization.
5. Shared Values : called "superordinate goals" when the model was first developed,
these are the core values of the company that are evidenced in the corporate culture
and the general work ethic.
Treat each other with trust, dignity, respect and follow highest standards
of ethical behavior.
Customer delight is their priority by being courteous, honoring
commitments and delivering quality.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 36
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
Foster a spirit of innovation, knowledge sharing, teamwork & simplicity.
They take accountability by delivering results and taking ownership for
Bellad group’s overall success.
Constantly support towards the well-being of our society and environment.
Retention of employees at all levels is their utmost priority.
6. Skills : the actual skills and competencies of the employees working for the company.
Bellad Company employed both skilled and unskilled employees and workers for
company’s regular operations. Like others the management of the company divided into
3 levels.
Top level of the company contains skilled people who are highly qualified and involved
in the non-programmed decision making process.In the middle level of the company
contains semi-skilled people who are related to office work and field work. These people
are also trained in computer applications, and they have had a knowledge about market,
management, and accounting which are helps to manage money and people in the
organization.Bottom level people consist of the workers who are unskilled those are
helpers, wash boys etc.
7. Style : the style of leadership adopted. Bellad Enterprises is having centralized type of
organization structure. All the decisions taken by Managing Director will be having the
consideration of the welfare of the company, employees of the company and their
satisfaction.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 37
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
PART V
3C’s of GM
Customer Voice – Listen Carefully.
Cause of Concern – Identify Accurately.
Corrective Action – Write Correctly.
STRENGTHS WEAKENESS
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 38
SWOT ANALYSIS
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
Well established brand name.
The organization is vast in terms of place, financial
terms and the market.
The company has 25% of market share (GM) in India
and as well as in the local market.
Better service maintenance.
Good cordial relationship with customer.
Lack of service station in Karnataka.
High service and maintained cost.
High service cost as compared to the
market rates.
OPPORTUNITIES THREATS
Availability of sufficient bank loan facilities for
customers.
Good market share i.e 25% in Karnataka state.
Availability of sufficient bank loan
facilities for customers.
Good market share i.e 25% in
Karnataka state.
SWOT ANALYSIS
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 39
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
PART VI
FINANCIAL RESULTS
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 40
ANNUAL REPORTS
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
The company has reported annual profits since 2010. It can carry forward previous losses
to reduce tax liability on future earnings. It earned $4.7 billion in 2010. The Wall Street Journal
estimated the tax break, including credits for costs related to pensions and other expenses can be
worth as much as $45 billion over the next 20 years.
In 2010, General Motors ranked second on the list with 8.5 million units produced
globally. In 2011, GM returned to the first place with 9.025 million units sold worldwide,
corresponding to 11.9% market share of the global motor vehicle industry. The top two markets
in 2011 were the United States, with 2,503,820 vehicles sold, and China, with 2,547,203 units.
The Chevrolet brand was the main contributor to GM performance, with 4.76 million vehicles
sold around the world in 2011, a global sales record.
As of January, 2012, the US government's Troubled Asset Relief Program had about $25
billion invested in GM. Break even for the government was figured at $53.98 v. the then-current
share price of about $25.
BALANCE SHEET
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 41
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
All numbers in thousands
Period Ending 30-Dec-2011 30-Dec-2010 30-Dec-2009
Assets
Current Assets
Cash And Cash Equivalents 15,705,000 22,301,000 36,596,000
Short Term Investments 16,148,000 5,555,000 134,000
Net Receivables 9,949,000 8,699,000 9,295,000
Inventory 14,324,000 12,125,000 10,107,000
Other Current Assets 4,121,000 4,373,000 3,115,000
Total Current Assets 60,247,000 53,053,000 59,247,000
Long Term Investments 15,952,000 16,726,000 -
Property Plant and Equipment 22,957,000 19,235,000 19,217,000
Goodwill 29,019,000 31,778,000 30,672,000
Intangible Assets 10,013,000 11,882,000 14,547,000
Accumulated Amortization - - -
Other Assets 6,415,000 6,224,000 12,048,000
Deferred Long Term Asset Charges - - 564,000
Total Assets 144,603,000 138,898,000 136,295,000
Liabilities
Current Liabilities
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 42
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
Accounts Payable 47,250,000 45,541,000 41,859,000
Short/Current Long Term Debt 1,682,000 1,616,000 10,221,000
Other Current Liabilities - - 355,000
Total Current Liabilities 48,932,000 47,157,000 52,435,000
Long Term Debt 10,551,000 9,142,000 5,562,000
Other Liabilities 45,030,000 44,608,000 36,064,000
Deferred Long Term Liability Charges - - 13,279,000
Minority Interest 871,000 979,000 708,000
Negative Goodwill - - -
Total Liabilities 106,483,000 102,718,000 108,048,000
Stockholders' Equity
Misc Stocks Options Warrants - - 6,998,000
Preferred Stock 10,391,000 10,391,000 -
Common Stock 16,000 15,000 15,000
Retained Earnings 7,183,000 266,000 (4,394,000)
Capital Surplus 26,391,000 24,257,000 24,040,000
Other Stockholder Equity (5,861,000) 1,251,000 1,588,000
Total Stockholder Equity 38,120,000 36,180,000 21,249,000
Net Tangible Assets (912,000) (7,480,000) (23,970,000)
INCOME STATEMENT All numbers in thousands
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 43
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
Period Ending 30-Dec-2011 30-Dec-2010 30-Dec-2009
Total Revenue 150,276,000 135,592,000 104,589,000
Cost of Revenue 131,229,000 119,038,000 113,380,000
Gross Profit 19,047,000 16,554,000 (8,791,000)
Operating Expenses
Research Development - - -
Selling General and Administrative 12,105,000 11,446,000 12,167,000
Non Recurring 1,286,000 - -
Others - - -
Total Operating Expenses - - -
Operating Income or Loss 5,656,000 5,108,000 (20,958,000)
Income from Continuing Operations
Total Other Income/Expenses Net 869,000 1,727,000 128,193,000
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 44
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
Earnings Before Interest And Taxes 6,507,000 6,639,000 108,424,000
Interest Expense 540,000 1,098,000 6,122,000
Income Before Tax 5,967,000 5,541,000 102,302,000
Income Tax Expense (110,000) 672,000 (2,166,000)
Minority Interest (97,000) (331,000) (396,000)
Net Income From Continuing Ops 9,190,000 6,172,000 104,821,000
Non-recurring Events
Discontinued Operations - - -
Extraordinary Items - - -
Effect Of Accounting Changes - - -
Other Items - - -
Net Income 9,190,000 6,172,000 104,821,000
Preferred Stock And Other Adjustments - - -
Net Income Applicable To Common Shares 7,585,000 4,668,000 104,690,000
Source: http://in.finance.yahoo.com/q/bs?s=GM&annual
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 45
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
CASH FLOW STATEMENT All numbers in thousands
Period Ending 30-Dec-2011 30-Dec-2010 30-Dec-2009
Net Income 9,190,000 6,172,000 104,821,000
Operating Activities, Cash Flows Provided By or Used In
Depreciation 7,544,000 7,086,000 15,421,000
Adjustments To Net Income (5,311,000) (5,813,000) (130,831,000)
Changes In Accounts Receivables - - -
Changes In Liabilities - - -
Changes In Inventories - - -
Changes In Other Operating Activities (3,354,000) (996,000) (7,046,000)
Total Cash Flow From Operating Activities 8,166,000 6,780,000 (17,239,000)
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures (6,241,000) (4,200,000) (5,379,000)
Investments (12,751,000) (5,503,000) (4,000)
Other Cash flows from Investing Activities 6,243,000 10,590,000 (15,466,000)
Total Cash Flows From Investing Activities (12,740,000) 1,233,000 (18,978,000)
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid (916,000) (1,572,000) (97,000)
Sale Purchase of Stock (89,000) 3,389,000 (105,000)
Net Borrowings 697,000 (11,422,000) 44,839,000
Other Cash Flows from Financing Activities (50,000) (4,000) -
Total Cash Flows From Financing Activities (358,000) (9,770,000) 44,574,000
Effect Of Exchange Rate Changes (253,000) (57,000) 660,000
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 46
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
Change In Cash and Cash Equivalents (5,185,000) (1,814,000) 9,017,000
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 47
FINANCIAL ANALYSIS
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
ANALYSIS OF FINANCIAL STATEMENTS
Financial statements provide a summarized view of the financial position and operations
of a firm therefore much can be learnt about a firm from a careful examination of its financial
statements as invaluable documents / performance reports the analysis of financial analysis.
RATIO ANALYSIS :
The focus on ratio analysis as the most widely used technique of financial statement
analysis.
MEANING
Ratio analysis is a widely used tool of financial analysis it can be used to compare the
risk and return relationships of firms of different sizes It is defined as the systematic use of ratio
to interpret the financial statements so that the strengths and weakness of a firm as well as its
historical performance and current financial condition can be determined.
A ratio is an arithmetical relationship between two figures, financial ratio analysis is a
study of ratios between various items or groups of items in financial statements.
ADVANTAGE OF RATIO ANALYSIS
1. Helpful in analysis of Financial Statements.
2. Helpful in comparative Study.
3. Helpful in locating the weak spots of the business.
4. Helpful in Forecasting.
5. Estimate about the trend of the business.
6. Fixation of ideal Standards.
7. Effective Control.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 48
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
8. Study of Financial Soundness.
LIMITATIONS OF RATIO ANALYSIS
1. Comparison not possible if different firms adopt different accounting policies.
2. Ratio analysis becomes less effective due to price level changes.
3. Ratio may be misleading in the absence of absolute data.
4. Limited use of a single data.
5. Lack of proper standards.
6. False accounting data gives false ratio.
7. Ratios alone are not adequate for proper conclusions.
8. Effect of personal ability and bias of the analyst.
Basic of comparison
Ratios as shown above are relative figures reflecting the relationship between variables
they enable analysts to draw conclusions regarding financial operations the use of ratios ad a tool
of financial analysis
Involves their comparison for a single ratio like absolute figures fails to reveal the true
position
Four types of comparisons:
1) Trend ratios
2) Inter firm comparison
3) Comparison of items within a single years financial statement of a firm
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 49
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
4) Comparison with standards or plans
Trend ratios involve a comparison of the ratios of a firm over time that is present ratios
are compared with past ratios for the same firm the comparison of the profitability of a firm say
year 1 through 5 is an illustration of a trend ratio trend ratios indicates the direction of change in
the performance improvement deterioration or constancy over the years
The inter firm comparison involving comparison of the ratios of a firm with those of
others in the same line of business or for the industry as a whole reflects its performance in
relation to its competitors
TYPES OF RATIOS
1. Liquidity ratios
2. Capital structure / leverage ratio
3. Profitability ratios
4. Debt Equity Ratios.
5. Return on Investment ratios
6. Growth ratio.
1. LIQUIDITY RATIOS:
The liquidity ratios measures the ability of a firm to meet its short term obligations and
reflect the short term financial strength / solvency of a firm the ratios which indicate the liquidity
of a firm are ;
1) Current ratios
2) Acid test/ quick ratios
3) Super quick ratios
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 50
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
4) Turnover ratios
1. CURRENT RATIO :
The current ratio is the ratio of total assets to total current liabilities it is calculated by current
liabilities
Current ratio = Current asset
Current liabilities
The current ratio for firm GENERAL MOTORS is shown below:
Interpretation:
The liquidity position of GENERAL MOTORS does not appear to be
commendable during all the year under reference though the current ratio range of 0.6 to
1.12(during the year 2008 to 2011) is an indicative of satisfactory liquidity position.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 51
YEAR PARTICULARS CURRENT RATIO
2008 69,59,901
60,78,790
0.6
2009 59,247.0
52,435.0
1.13
2010 53,053.0
47,214.0
1.1
2011 60,247.0
49,745.0
1.2
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
2. Acid test /Quick Ratio :
The acid test ratio is the ratio between quick current assets and current liabilities & is calculated
by dividing the quick assets by the current liabilities.
Acid- test ratio = Quick assets
Current liabilities
THE ACID TEST RATIO FOR GENERAL MOTORS IS SHOWN BELOW
YEAR PARTICULARS ACID TEST RATIO
2009 49,140,000
52,435,000
0.93
2010 40,928,000
47,157,000
0.87
2011 45,923,000
48,932,000
0.94
Interpretation:
The acid test ratios of the firm appear to be on the lower side the range being 0.93 to
0.94 (during 2009-2011 ). The major reason for the sharp difference in these two liquidity ratios
may be ascribed to a significant proportion of inventory (in current assets ) so it is advised that
the firm has to increase its quick assets.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 52
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
SOLVENCY RATIOS LEVERAGE RATIOS/ CAPITAL STRUCTURE RATIOS:
The second category of financial ratios is leverage or capital structure ratios the leverage
or capital structure ratios may be defined as financial ratios which throw light on the long term
solvency of a firm as reflected in its ability to assure the long term lenders with regard to
Periodic payment of interest during the period of the loan and
Repayment of principal on maturity or in pre-determined installment at due dates
These are thus two aspects of the long term solvency of i) ability to repay the principal
when due and (ii) regular payment of the interest accordingly these are two different but
mutually dependent and interrelated types of leverage ratios first ratios which are based on the
relationship between borrowed funds and owners capital.
These ratios are computed from the balance sheet and have many variations such as
a) Debt- equity ratio
b) Debt assets ratio
c) Equity assets ratio
3. DEBT EQUITY RATIO:
The relationship between borrowed funds and owners capital also a popular measure of the long
term financial solvency of a firm. One approach is to express the D/E ratios in terms of the
relative proportion of long tem debt and share holders equity . Thus
D/E ratio= Debt
Equity
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 53
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
GENERAL MOTORS DEBT EQUITY RATIO for the year
YEAR PARTICULARS RATIO
2009 107,340.0
28,955.0
3.7
2010 101,739.0
37,159.0
2.7
2011 105,612.0
38,991.0
2.7
Interpretation:
The solvency position of the industry is sound because its total debt equity ratio over the
years has shown a substantial decrease from 3.7 in 2009 to 2.7 by 2011.
4. DEBT ASSET RATIO :
The debt asset ratio measures the extent to which borrowed funds support the firm assets it as
defined as:
Debt asset ratio = Debt
Assets
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 54
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
GENERAL MOTORS DEBT ASSET RATIO for the year
YEAR PARTICULARS RATIO
2009 106,483,000
144,603,000
0.74
2010 102,718,000
38,898,000
0.77
2011 106,483,000
44,603,000
0.73
Interpretation:
The solvency position of the firm is constant because its total debt asset ratio over the
years has shown neither increase nor decrease from 0.74 in 2009 to 0.73 by 2011.
PROFITABILITY RATIOS:
Profitability ratios can be determined on the basis of either sales or investments the profitability
ratios in relation to sales are
a) Profit margin
b) Expenses ratio
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 55
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
PROFIT MARGIN
The profit margin measures the relationship between profit and sales as the profit may be gross
or net there are two types of profit margins gross profit margin and net profit margin.
5. GORSS PROFIT MARGIN :
Is also known as gross margin it is calculated by dividing gross profit by sales thus
Gross profit margin = Gross profit X 100
Sales
Interpretation: The profitability ratios shown that the profitability of the company has been
consistently increased since year 2008. The margin of profit on sales has increased from 4.6% in
the year 2008 to 13.10% in the year 2011. It is better than industry norms of 10%.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 56
YEAR PARTICULARS RATIO
2008 6,930.0 *100
148,979.0
4.6%
2009 (2,475.0) *100
104,589.0 -----
2010 17,512.0 *100
135,440.0
12.93%
2011 19,586.0 *100
149,491.0
13.10%
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
6. RETURN ON INVESTMENT RATIO:
The ratio may be expressed with reference to total capital, the latter being most aptly. It is used
to study the operational efficiency of the business. This is the important single ratio for the study
of management efficiency. This shows the earning capacity of the capital.
ROI = Net Income *100
Long term debt
GENERAL MOTORS ROI
RATIO for the year
Interpretation:
ROI of the industry was 9.6% in the year 2011 which is better than industry norm 7%.
ASSET TURNOVER RATIO
Asset turnover ratio = Turnover
Fixed Assets
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 57
YEAR PARTICULARS RATIO
2010 6,172,000 *100
91,741,000
6.72%
2011 9,190,000 *100
95,671,000
9.6%
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
GENERAL MOTORS ASSET TURNOVER RATIO for the year
Interpretation:
The asset turnover ratio of the company was increased from the year 2009 and it shown efficiency of a firm in managing and utilizing assets.
7. NETWORKING CAPITAL TURNOVER RATIO
Net Working Capital Ratio : Net Sales
Net Working Capital
GENERAL MOTORS NET WORKING CAPITAL TURNOVER RATIO for the year
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 58
YEAR PARTICULARS TURNOVER RATIO
2011 149,970,000
84,356,000
1.77 times
2010 135,440,000
85,845,000
1.57 times
2009 104,589,000
77,048,000
1.35 times
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
Interpretation: Industry shown high net working capital ratio in the year 2010 , but it decreases in
the year 2011 from 22.97% to 13.25% . it indicates satisfactory turnover of current assets like
stock and debtors.
8. INTEREST COVERAGE RATIO
Interest coverage ratio = EBIT
INTEREST
GENERAL MOTORS INTEREST COVERAGE RATIO for the year
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 59
YEAR PARTICULARS TURNOVER RATIO
2011 149,970,000
11,315,000
13.25 %
2010 135,440,000
58,96,000
22.97
2009 104,589,000
68,12,000
15.35 %
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
Interpretation: Industry has a interest coverage of 12.05 times in the year 2011, it was shown
larger the coverage,
the greater is the ability of
the industry to handle
fixed-charge liabilities
and the more assured is the
payment of interest to
them.
9. CAPITAL TURNOVER RATIO
Net sales
Owner’s Equity
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 60
YEAR PARTICULARS RATIO
2011 6507000
540000
12.05 times
2010 6639000
1098000
6.0 times
2009 108424000
61,22,000
18 times
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
Interpretation: in the year 2011and 2010 the industry rotated 6 & 4 times its capital respectively in the process of business.
10. RETURN ON ASSETS
Return on assets = Profit after Tax * 100
Total Assets
Interpretation:
On the basis of above ratio of the industry, it can be said that the industry’s position is sound from the point of view of profitability.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 61
YEAR PARTICULARS RATIO
2011 9,190,000
144,603,000
6.3 times
2010 6,172,000
138,898,000
4.44 times
YEAR PARTICULARS RATIO
2011 149,970,000
38,120,000
3.9 times
2010 135,440,000
36,180,000
3.7 times
2009 104,589,000
21,249,000
4.9times
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
11. EARNINGS MARGIN RATIO:
Earnings Margin Ratio = Net Income * 100
Sales
Interpretation
NET PROFIT MARGIN
13. OPERATING PROFIT RATIO
Operating profit ratio = EBIT
Net Sales
Interpretation: Industry’s operating net profit ensure adequate return to the owners as well as enable a industry to withstand adverse economic conditions, which was 5% in the year 2010 & 4% in the year 2011.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 62
YEAR PARTICULARS RATIO
2010 6,172,000 *100
135,440,000
4.5%
2011 9,190,000 *100
149,970,000
6.12%
YEAR PARTICULARS RATIO
2010 6,639,000
135,440,000
4.9%
2011 6,507,000
149,970,000
4.3%
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
14. PRE TAX PROFIT RATIO
Pre- tax Profit ratio = EBT
Net sales
15. NET PROFIT RATIO
Net profit ratio = EAT
Net Sales
YEAR PARTICULARS RATIO
2010 5,541,000
135,440,000
4.09%
2011 5,967,000
149,970,000
4%
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 63
YEAR PARTICULARS RATIO
2010 6,172,000
135,440,000
4.55%
2011 9,190,000
149,970,000
6.12%
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
Interpretation: Net Profit Margin of the industry indicate that the management’s ability with sufficient success and net profit (after interest and taxes ) to sales expressed cost price effectiveness in the year 2011 i.e 6.12%
EXPENSES RATIO
16. COST OF GOODS SOLD RATIO
Cost Of Goods sold Ratio = Cost Of Goods Sold * 100
Net Sales
Interpretation: The industry shown cost of goods sold ratio as 87% & 86.62% in the year 2010 and 2011 respectively. It implies that total cost of goods sold consume 87% of the sales revenues of the industry and remaining proportion is available to meet expenses.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 64
YEAR PARTICULARS RATIO
2010 117,928,000 * 100
135,440,000
87%
2011 130,384,000 *100
149,970,000
86.62%
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
17. OPERATING EXPENSES RATIO
Operating Expenses Ratio = Administrative Expenses + Selling Expenses * 100
Net Sales
Interpretation: Industry
shown low operating
expenses ratio. A low
operating ratio of the industry
is by and large a test of operational efficiency. In this case income and expenses are non-operating, the
operating expenses ratio, however cannot be used as a yardstick of profitability.
18. OPERATING RATIO
Operating Ratio = Cost of goods sold + Operating expenses * 100
Net Sales
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 65
YEAR PARTICULARS TURNOVER RATIO
2010 11419000 * 100
135,440,000
8.43%
2011 11989000 *100
149,970,000
7.9%
YEAR PARTICULARS RATIO
2010 129,465,000 * 100
135,440,000
95.58%
2011 141,952,000 *100
149,970,000
94.65%
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
Interpretation: The operating
efficiency of the industry
fairly good which was average 96% in the both year.(2010 and 2011)
19. DEBTORS TURNOVER RATIO
Debtors turnover ratio = sales
Debtors + BR
Interpretation: The industry has average sales of 15 times in both years (2010 and 2011).
20. DEBTORS VELOCITY RATIO
Debtors velocity ratio = Debtors + BR
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 66
YEAR PARTICULARS
RATIO
2010 135,440,000
8,699,000
15.56 times
2011 149,970,000
9,949,000
15 times
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
Sales/12
Interpretation: The industry has taken 1 month to recover debtors money.
PART VII
FINDINGS:
The following are the major findings of the present study:
General Motors have a good brand image.
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 67
YEAR PARTICULARS
RATIO
2010 8,699,000
135,440,000/12
0.77 months(1)
2011 9,949,000
149,970,000/12
0.79 months(1)
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
The liquidity position of GENERAL MOTORS does not appear to be commendable
during all the year under reference though the current ratio range of 0.6 to 1.12(during the
year 2008 to 2011) is an indicative of satisfactory liquidity position.
The solvency position of the industry is sound because its total debt equity ratio over the
years has shown a substantial decrease from 3.7 in 2009 to 2.7 by 2011.
The operating efficiency of the industry fairly good which was average 96% in the both
year.(2010 and 2011)
In the year 2011and 2010 the industry rotated 6 & 4 times its capital respectively in the
process of business.
As per the analysis is done the company is managing their current assets very well.
CONCLUSION
To conclude with my in-plant training at Bellad Enterprise Pvt.Ltd, realized that it is a
well-organized unit carried under the guidance of the partners. It is fulfilling the condition agreed
when getting the dealership through the hard work and dedication of the management and
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 68
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
workers. The personnel of both the top and middle level management are very much experienced
in their field of operation.
According to me Bellad Enterprise Pvt.Ltd Hubli is managing there working capital
quite well. The Finance Department is carrying out its responsibilities efficiently. All the major
departments are cooperating and synchronizing their efforts for the progress of Company.
At Bellad Enterprises Pvt, Ltd, I witnessed strong employee relationship and co-
ordination from one department to another. This element is helping the management to carry on
the business efficiently. The customers of company are happy and satisfied by sales and after
services and the employees of the organization are pleased with the facilities available to them.
LEARNING EXPERIENCE
The In-plant training program has been extensively a good learning experience. There are
many concepts which I learned from the entire in-plant training. They are:
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 69
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
It gives me a clear insight as to how corporate world is and also how it operates.
It gives me an opportunity to relate theoretical concept to practical situation.
It gives thorough knowledge about the auto-car industry in particular.
It helps to know about various departments and its functions of the organization.
From this training practically I experienced regarding McKinsey’s 7s Model ,how it can
be applied for the organization.
It is a good exposure and also experience which can help me when I will enter in this
corporate world.
Bibliography
BOOKS AUTHORS PUBLICATION EDITION PAGE.
NO
Financial M Y KHAN, P K JAIN The McGraw-Hill 5th edition 6.2 -
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 70
BELLAD ENTERPRISES PVT. LTD GENERAL MOTORS DIV, HUBLI
management companies 6.30
Marketing
Management
Kotler,Keller,Koshy,Jha Pearson 13th
edition
54-55
WEBSITES
1. www.gm.com
http://en.wikipedia.org/wiki/General_Motors_India_Private_Limited
2. www.chevrolet.com
http://en.wikipedia.org/wiki/Chevrolet_Sales_India_Private_Limited
Company projection reports
BAPUJI ACADEMY OF MANAGEMENT AND RESEARCH DAVANAGERE 71