Chapter-1: Introduction To The Study & Industry Profile

MATS INSTITUTE OF MANAGEMENT AND ENTERPRENURESHIP
CHAPTER-1
INTRODUCTION TO THE STUDY

&
INDUSTRY PROFILE
INTRODUCTION TO ORGANIZATION STUDY:
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The main aim of the organizational study is to acquire the knowledge regarding the
functional as well as the management aspects of an organization. This project is an
organizational study at MYMUL.
NEED FOR THE STUDY:
To get practical exposure towards the office environment and to know how any
organization departments interact with each other and to develop our views regarding the
organization and present the same in the project with the suggestion. This study helps us
in knowing how the different people of different departments coordinate to accomplish
their organizational goal.
OBJECTIVES OF THE STUDY:
 To study the organizational structure; organizational design; the departmentation;

delegation of authority and responsibility.
 Observing the working of various departments like HRM; MARKETING;

FINANCE; PRODUCTION etc.
 To know the organizational culture.
 To know the organizational motive.
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 To get the exposure of the cooperate world and to know how the company works.
METHODOLOGY USED FOR ORAGNIZATION STUDY:
The project started on 8th of NOVEMBER,2010. There was a prior appointments

scheduled with each department heads according to their availability.
In management, organization study can be defined as investigation of any management
practices followed within the organization, the sole motto here was to understand the
functions of all the departments and their mutual coordination. Data required to build this
study report has been collected in broadly two fold ways:
PRIMARY DATA: includes-

Personal interviews –There were interview sessions with each of the functional heads and
there was a questionnaire that was followed as also questions which were asked
depending upon the situations
Observations done – There was a keen sense of observation followed during the study
period to follow the entire production and process functions very well.
SECONDARY DATA: includes-

Internal data- These are the companies own data which they provided like organization
structures, balance sheet, annual reports etc.
RESEARCH METHODOLOGY APPLIED:
The research methodologies applied in the organization study project were the following:
 SWOT Analysis
 PEST Analysis
 The McKinsey 7S Framework
SWOT ANALYSIS:
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Here we try to analyze the organizations performance in their core industry with four
variables i.e.
 Strength - Companies strength within the industry
 Weakness - The different weaknesses of the organization
 Opportunities – The opportunities in the market in future
 Threats – Threats from the market and competitors
PEST ANALYSIS:
This form of analysis helps us to identify the industry as well as Organization’s
performance comparing to different variables as follows:
 Political advantages and disadvantages regarding business performance
 Economic and financial condition of the country and the market
 Social factors responsible for survival and performance in the market
 Technological factors such as innovation and developments in the industry.
PORTERS FIVE FORCE ANALYSIS:

Five Forces Analysis helps the marketer to contrast a competitive environment. It tends to
focus on the single, stand alone, business or SBU (Strategic Business Unit) rather than a
single product or range of products. Five forces analysis looks at five key areas namely:
 The threat of entry

 The power of buyers
 The power of suppliers
 The threat of substitutes
 The competitive rivalry.
INDUSTRY PROFILE:
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GLOBAL SCENARIO
DAIRY INDUSTRY, WORLD DAIRY INDUSTRY
This report analyzes the worldwide markets for Milk in Thousand Metric Tons The report
provides separate comprehensive analytics for US, Canada, Japan, Europe, Asia Pacific,
Latin America, and Rest of World.. Annual forecasts are provided for each region for the
period 2006 through 2015. The report profiles 241 companies including many key and
niche players worldwide such as AMUL (Anand Milk Union Limited), BRF Brasil Foods
SA, Bright Dairy & Food Co., Ltd, CANDIA, China Mengniu Dairy Company Limited,
Dairy Crest Group, Plc., Dairy Farmers Limited, Dairy Farmers of America, Inc., Dairy
Farmers of Britain Limited, Dean Foods Company, Fonterra Group Cooperative Limited,
Harvey Perley Hood, LLC, Inner Mongolia Yili Industrial Group Co., Ltd., Lactalis
Group, Milk Link Ltd., Morinaga Milk Industry Co., Ltd., National Foods, Neilson
Dairy, Nestlé SA, Parmalat SpA, Robert Wiseman Dairies Plc, Robert Wiseman Dairies
Plc, Sanlu Group, and Valio Ltd. Market data and analytics are derived from primary and
secondary research. Company profiles are mostly extracted from URL research and
reported select online sources
Milk Yield comparison:
Country Milk Yield

(Kgs per
year)
USA 7002
UK 5417
Canada 5348
New Zealand 2976
Pakistan 1052
India 795
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World (Average) 2021
INDIAN SCENARIO:
INDIA DAIRY INDUSTRY
India’s dairy sector is expected to triple its production in the next 10 years in view of
expanding potential for export to Europe and the West. Moreover with WTO regulations
expected to come into force in coming years all the developed countries which are among
big exporters today would have to withdraw the support and subsidy to their domestic
milk products sector. Also India today is the lowest cost producer of per litre of milk in
the world, at 27 cents, compared with the U.S' 63 cents, and Japan’s $2.8 dollars. Also to
take advantage of this lowest cost of milk production and increasing production in the
country multinational companies are planning to expand their activities here. Some of
these milk producers have already obtained quality standard certificates from the
authorities. This will help them in marketing their products in foreign countries in
processed form.
The urban market for milk products is expected to grow at an accelerated pace of around
33% per annum to around Rs.43,500 crores by year 2005. This growth is going to come
from the greater emphasis on the processed foods sector and also by increase in the
conversion of milk into milk products. By 2005, the value of Indian dairy produce is
expected to be Rs 10,00,000 million. Presently the market is valued at around
Rs7,00,000mn.
INDIA DAIRY INDUSTRY: HISTORY
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Dairy is a place where handling of milk and milk products is done and technology refers
to the application of scientific knowledge for practical purposes. Dairy technology has
been defined as that branch of dairy science, which deals with the processing of milk and
the manufacture of milk products on an industrial scale.
In developed dairying countries such as the U.S.A., the year 1850 is seen as the dividing
line between farm and factory-scale production. Various factors contributed to this
change in these countries, viz. concentration of population in cities where jobs were
plentiful, rapid industrialization, improvement of transportation facilities, development of
machines, etc. whereas the rural areas were identified for milk production, the urban
centres were selected for the location of milk processing plants and product
manufacturing factories. These plants and factories were rapidly expanded and
modernized with improved machinery and equipment to secure the various advantages of
large-scale production. Nearly all the milk in the U.S.A. before 1900 was delivered as
raw (natural) milk. Once pasteurization was introduced, it developed rapidly. Mechanical
refrigeration helped in the rapid development of the factory system of market milk
distribution.
In India, dairying has been practised as a rural cottage industry since the remote past.
Semi-commercial dairying started with the establishment of military dairy farms and co-
operative milk unions throughout the country towards the end of the nineteenth century.
During the earlier years, each household in those countries maintained its ‘family cow’ or
secured milk from its neighbour who supplied those living close by. As the urban
population increased, fewer households could keep a cow for private use. The high cost
of milk production, problems of sanitation etc., restricted the practice; and gradually the
family cow in the city was eliminated and city cattle were all sent back to the rural areas.
Gradually farmers within easy driving distance began delivering milk over regular routes
in the cities. This was the beginning of the fluid milk-sheds which surround the large
cities of today. Prior to the 1850s most milk was necessarily produced within a short
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distance of the place of consumption because of lack of suitable means of transportation

and refrigeration.
The Indian Dairy Industry has made rapid progress since Independence. A large number
of modern milk plants and product factories have since been established. These organized
dairies have been successfully engaged in the routine commercial production of
pasteurized bottled milk and various Western and Indian dairy products. With modern
knowledge of the protection of milk during transportation, it became possible to locate
dairies where land was less expensive and crops could be grown more economically.
In India, the market milk technology may be considered to have commenced in 1950,
with the functioning of the Central Dairy of Aarey Milk Colony, and milk product
technology in 1956 with the establishment of AMUL Dairy, Anand. The industry is still
in its infancy and barely 10% of our total milk production under goes organized handling.
MAJOR DAIRY PRODUCTS MANUFACTURERS
Some of the major dairy products manufacturers in the country:
Company Brands Major Products

Nestle India Milkmaid,Cerelac, Lactogen, Sweetened condensed milk, malted foods,
Limited Milo, Everyday milk powder and Dairy whitener
Milkfood Limited Milkfood Ghee, ice cream, and other milk products
SmithKline Horlicks, Maltova, Viva Malted Milkfood, ghee, butter, powdered
Beecham Limited milk, milk fluid and other milk based
baby foods.
Indodan Indana Condensed milk, skimmed milk powder,
Industries whole milk powder, dairy milk whitener,
Limited chilled and processed milk
Gujarat Co- Amul Butter, cheese and other milk products
operative milk
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Marketing

Federation
Limited

H.J. Heinz Farex, Complan, Glactose, Infant Milkfood, malted Milkfood
Limited Bonniemix, Vitamilk
Britannia Milkman Flavoured milk, cheese, Milk Powder,
Ghee
Cadbury Bournvita Malted food
SWOT ANALYSIS:
STRENGTHS:
1. Market leaders
2. Nandini is a trusted household branded name.
3. The network and the cooperation between all the 13 co-operation units are very
strong.
4. The production of milk product and milk satisfies the consumer need in both
price and quality.
5. Monitoring the quality of milk and milk products of the unions so, nobody can
dissatisfy the consumer.
6. Regularly attending the customer complains
7. Most important is the trust of people on KMF
WEAKNESS:
1. Lack of flexibility in deciding about its operation. And no authority over issues
like pricing offering volume discount etc.
2. No replacement policy, resulting in safe indenting by the agent.
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3. Inter-union competition in same place.

4. Organizational structure does not permit incentives rewards for good performance
5. Lack of employees in the quality control department
OPPORTUNITIES:
1. Since the mysore district is under Cauvery basin, perennial greens are available to
the cattle, the cattle management by the women farmers is highly organized,
coupled with existence of good numbers of cross breed milk animals with a
reasonable lactate periods.
2. Because of logical locations MYMUL has a perennial suppliers of milk to tamil
nadu and kerela.
3. At much better price then any other milk unions’ price obtained in Karnataka.
4. Institutional market, bakeries, hotel, etc are not fully tapered and these can
capture preferably by direct marketing. Market milk share of unorganized sector
still remains to be tapered.
5. Diversification into milk products like peda, burfi, lassi, etc.
6. Since KMF is the 3rd largest milk union and biggest in south India, so it has an
opportunity to enter into international market.
THREATS:
1. After liberalization, early barriers in the diary industry cased from new entrance.
2. Private diary procure milk at low cost from producers and sale milk restoring to
un ethic trade practice. It is a marketing war in which union has to fight by rules
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and others i.e private diary’s do not fight by rules. Hence there is no level paying
field for organization with social responsibilities to compete with organization
with purely profit motive.
3. Some private diary’s are selling homogenous milk, which appears rich. The union
cannot homogeneous all its huge quality of milk being sold due to lack of
homogenizing capacity and increases in processing cost.
4. Absence of full proof quality/ adulteration monitoring mechanism by the
government, resulting in proliferation of adulteration/ substandard milk in the
unorganized sector and by private diary’s.
5. Plants of major companies like ITC to enter into the milk market in future the
competition from co-operatives like AMUL, VIJAYA, AAVIN etc.
6. Consumer increasingly expects high quality and service. They perceive fewer
real products difference and show less brand loyalty.
PEST ANALYSIS:
PEST Analysis stands for “Political, Economic, Social and Technological

Analysis” and describes a frame work of micro environmental factors used in
environmental scanning. It is a part of the external analysis when doing market research
and gives a certain overview of the different macro environmental factors that the
company has to take into consideration. PEST analysis is a useful strategic tool for
understanding market growth or decline, business position, potential and direction for
operations. The use of PEST analysis can be seen effective for business and strategic
planning, marketing planning, business and product development and research reports.
PEST also ensures that company’s performance is aligned positively with the powerful
forces of change that are affecting business environment. PEST is useful when a
company decides to enter its business operations into new markets and new countries.
The use of PEST, in this case, helps to break free of unconscious assumptions, and help
to effectively adapt to the realities of the new environment.
POLITICAL FACTOR:
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 The political environment is stable.
 Since it is a government organization so the rules and the policies are in

accordance with the government.
ECONOMIC FACTOR:
Consumers on the other hand would not want to buy expensive product or brands
due to presence of local milk men. Competition in India has grown so strong that KMF is
facing difficulties in places In the developing countries and the emerging economies,
where there are political instability, KMF has adopted its company strategy to ensure that
its profitability drive is sustained. Some Products are packaged in small size for low or
regular income earner, for affordability.
SOCIOCULTURAL FACTOR:
 The attitude toward foreign product is acceptable
 There is no barrier of language
 The products are environment friendly and the materials used for packagings are
as per the norms and environment.
TECHNOLOGICAL FACTOR:
 The technologies are available at a lower price.
 The present technologies allow for the production of new products.
 COMFED uses internet for marketing
 COMFED does not use new methods for communicating to consumers. It uses
the traditional methods.
PORTER’S FIVE FORCE ANALYSIS:
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The most influential analytical model for assessing the nature of competition in an
industry is Michael Porter's Five Forces Model, which is described below:
 Threat of new entrants

 Threat of substitute products
 Competitive rivalry within an industry
 Bargaining power of suppliers
 Bargaining power of customers
THE THREAT OF NEW ENTRANTS:
 This sector does not have any barrier for new entrant.
 Also the product quality is of international standard.
 Product differentiation is applicable like different size, different grade, etc.
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THE THREAT FROM SUBSTITUTE PRODUCTS:

 The treat from substitute product is very less. As substitute of liquid product is
milk powder but people does not prefer milk powder in place of milk as a health
drink.
Competitive rivalry within industry:

 The major competitor in organised sector is Amul and in unorganised sector are
the milkmen.
 Since the products are of international quality and a government undertaking it
enjoys the benefit or the competitive advantage over other players.
 It advertises it products through websites, hoardings, at fairs etc.
THE BARGAINING POWER OF THE CUSTOMERS:

 There are large no of customers so the bargaining power of customers are less.
 The organisation has a well developed distribution channel. They are distributors
and retailers.
 They are independent so there is a possibility of forward integration.
THE BARGAINING POWER OF SUPPLIERS:

 As there are large no of suppliers the bargaining power of suppliers are less.
 Backward integration is there.
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CHAPTER-2
COMPANY PROFILE
KARNATAKA MILK FEDERATION
Karnataka Milk Federation – a harbinger of rural prosperity

Karnataka Milk Federation (KMF) is the largest cooperative dairy Federation in South
India, owned and managed by milk producers of Karnataka State. KMF has over 2
million milk producers in over 10500 Dairy Cooperative Societies at village level,
functioning under 13 District Cooperative Milk Unions in Karnataka State. The mission
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of the federation is to usher rural prosperity through dairy development. During the last
four decades of cooperative dairy development by KMF, the dairy industry in Karnataka
has progressed from a situation of milk-scarcity to that of milk-surplus.

KMF MILK PRODUCT
“Quality Excellence from Cow to Consumer” – is the motto of the Federation to obtain
better-quality Milk and milk products from our value chain (Procurement to Processing to
Marketing). Thus milk and milk products, under “nandini” brand name, are unmatched
in quality made available to consumers at most competitive prices. In a way Nandini
Milk and Milk Products are “Spreading wealth of health”.
ABOUT KARNATAKA MILK FEDERATION
Karnataka Cooperative Milk Producers' Federation Limited (KMF) is the Apex Body in
Karnataka representing Dairy Farmers' Co-operatives. It is the second largest dairy co-
operative amongst the dairy cooperatives in the country. In South India it stands first in
terms of procurement as well as sales. One of the core functions of the Federation is
marketing of Milk and Milk Products. The Brand "nandini" is the household name for
Pure and Fresh milk and milk products.
KMF has 13 Milk Unions throughout the State which procure milk from Primary Dairy
Cooperative Societies(DCS) and distribute milk to the consumers in various
Towns/Cities/Rural markets in Karnataka.
The first ever World Bank funded Dairy Development Program in the country started in
Karnataka with the organisation of Village Level Dairy Co-operatives in 1974. The
AMUL pattern of dairy co-operatives started functioning in Karnataka from 1974-75 with
the financial assistance from World Bank, Operation Flood II & III. The dairy co-
operatives were established under the ANAND pattern in a three tier structure with the
Village Level Dairy Co-operatives forming the base level, the District Level Milk Unions
at the middle level to take care of the procurement, processing and marketing of milk and
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the Karnataka Milk Federation as the Apex Body to co-ordinate the growth of the sector
at the State level.
Coordination of activities among the Unions and developing market for Milk and Milk
products is the responsibility of KMF. Marketing Milk in the respective jurisdiction is
organized by the respective Milk Unions. Surplus/deficit of liquid milk among the
member Milk Unions is monitored by the Federation. While the marketing of all the Milk
Products is organized by KMF, both within and outside the State, all the Milk and Milk
products are sold under a common brand name NANDINI.
EVOLUTION OF KMF:
Karnataka Milk Federation which is most popular as KMF, evolved itself as a premier
and most profitable dairy farmers' organization in the State of Karnataka.
As an agency in 1975 to implement the World Bank Aided Dairy Development Projects,
Karnataka Dairy Development Corporation (KDDC) was formed, the company grew
itself fast and as it spreads the wings of new found rural economic activity - Dairying all
over the State, the genesis of apex cooperative body took the shape of KMF in 1983
encompassing entire State with 13 District Co-operative Milk Unions executing the
various parameters of Dairy activity - organization of Dairy Co-operatives, Milk Routes,
Veterinary Services, Procurement of milk in two shifts of the day, Chilling, Processing of
milk, distribution of milk and also establishment of Cattle Feed Plants, Nandini Sperm
Station, Liquid Nitrogen Supply, Training Centers - as its main stay.
The entire system was reconstructed on the model of now well known `ANAND' pattern
dairy cooperative societies. Eight southern districts of Karnataka was considered initially
with a target of organizing 1800 Dairy Co-operative Societies, four Milk Unions and
processing facilities were set up to the tune of 6.5 lakhs per day by 1984.
Under Operation Flood - II &III, project which started in 1984 & 1987 covered the
remaining parts of Karnataka. Thirteen milk unions are organized in 175 talukas of all 20
districts then and the field work was extended by organizing more dairy cooperative
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societies. The processing facilities i.e. chilling centers, milk dairies and powder plants
were transferred in phases to the administrative control of respective cooperative milk
unions and the activities continued to be implemented by these District Organizations.
Additional processing facilities were created & existing facilities augmented every
decade with the help of Govt. / Zilla Panchayat and NDDB to handle ever increasing milk
procurement without declaring milk holidays. The processing facility as exists at 32.25
lakh liters/day is further strengthened.
OBJECTIVES
KMF is a Cooperative Apex Body in the State of Karnataka representing organizations of

milk producers' and implementing all-round dairy development activities to achieve the
following objectives:
 To ensure assured and remunerative market round the year for the milk produced
by the farmer members.
 To make available quality milk and other premier dairy products to urban
consumers.
 To build & develop village level institutions as cooperative model units to
manage the dairy activities.
 To ensure provision of inputs for milk production, processing facilities and
dissemination of know how.
 To facilitate rural development by providing opportunities for self employment at
village level, preventing migration to urban areas, introducing cash economy and
opportunity for a sustained income.
The philosophy of dairy development is to eliminate middlemen and organize institutions

to be owned and managed by the milk producers themselves, employing professionals.
To sum it up, every activity of KMF revolves around meeting one basic objective:
'Achieve economies of scale to ensure maximum returns to the milk producers, at the
same time facilitate wholesome milk at reasonable price to urban consumers'. Ultimately,
the complex network of cooperative organization should build a bridge between masses
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of rural producers and millions of urban consumers and in the process achieve a socio-
economic revolution in every hinterland of the State.
UNITS OF KMF:
KMF has the following units function directly under its control:
· Mother Dairy, Yelahanka, Bangalore
· Nandini Milk Products, KMF, Bangalore
· Cattle Feed Plants at Rajakunte / Dharwad/ Hassan
· Nandini Sperm Station at Hessaraghatta
· Pouch film plant at Munnekolalu, Marathahalli
· Central Training Institution at KMF Complex, Bangalore.
· Quality control lab at KMF Complex, Bangalore.
THE DIFFERENT MILK UNIONS:
There are totally 13 milk unions in the state. They are:
1. Bangalore Milk Union

2. Kolar Milk Union
3. Mysore & Chamaraja Nagar Milk Union
4. Mandya Milk Union
5. Tumkur Milk Union
6. Hassan Milk Union
7. Dharwad Milk Union
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8. Belgaum Milk Union

9. Bijapur Milk Union
10. Gulbarga Milk Union
11. Dakshina Kannada Milk Union
12. Shimoga Milk Union
13. Raichur – Bellary – Koppala Milk UnionKakri
MYSORE CHAMARAJNAGAR DISTRICT CO-OPERATIVE MILK

PRODUCER'S SOCIETIES UNION LTD. MYMUL
BRIEF HISTORY
Under the World Bank aided Karnataka Dairy Development Projects, the activities
on Dairy Development were taken up in the year 1975. The Mysore Coop Milk
Producers Societies Union Ltd was established on 23.11.1976, having the jurisdiction
extended to the entire Mysore District and Five Taluks of Mandya District. The Union
undertook the work of organization of Milk Co-operatives in ‘AMUL Pattern’ with the
main objective of socio-economic reformation of the farmers in the rural areas through
Dairying as main subsidiary occupation.
Later the Union was bifurcated into Mysore and Mandya District Co-Operative
Milk Producers Societies Union Ltd from 01.04.1987. Consequent to the bifurcation of
Mysore District into Mysore and Chamarajanagar Districts, this Union is renamed as
Mysore-Chamarajanagar District Coop Milk Producers Societies Union Ltd.
THE MAIN FUNCTIONS OF THIS UNION
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1. To Provide remunerative market for the milk produced by the rural
farmers throughout the year irrespective of the quantity supplied by
them.
2. First Aid facility at the Society level.
3. Emergency visits to treat the animals on a nominal fee to be collected
from the producers.
4. Cross breeding facility through Artificial Insemination services.
5. Supply of balanced Cattle Feed to the farmers of the Coop Societies at
subsidized rates.
6. Technical guidance and supply of root slips/seeds for Fodder
cultivation by the members of the Coop Societies
7. Effective supervision/extension services through field executives of
the Union.
8. Intensive Coop Education Programs to the Women members of the
Dairy Coop Societies through Coop Development Programme.
Mysore Dairy with the capacity of 10 TLPD was started in the year 1965 under the
control of the Department of Animal Husbandry and Veterinary Services of Karnataka
State, which was transferred to Karnataka Dairy Development Corporation in the year
1974. The capacity was expanded to 60 TLPD in 1980 and transferred to the Karnataka
Milk Federation in 1984. The capacity was expanded to 100 TLPD under the Operation
Flood II and further expanded to 150 TLPD under OF III Programme. As per the
Government policy the Dairy and its Chilling Centres were handed over to MYMUL on
01.06.1987.
BOARD OF DIRECTORS:-
Sri g.somasekhara reddy chairman Karnataka milk federation
H.d.revanna hassan union

G.p.revanasiddappa Shimoga union
K.v.nagaraju kolar-chikkaballapura union
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H.j.chandru Mandya union

Maruthi kashampura Gulbarga-bidar union
P.nagaraju Bangalore union
H.k.renuka prasad tumkur union
Sathish keshav bhat Dharwad union
Sanjay gowda r patil belgaum union

Mallikarjuna shankarappa jagura Bijapur-bagalkote union
S.c.ashok Mysore-chamarajanagar union
THE VISION OF KMF:
 “To march forward with a missionary zeal which will make KMF a trailblazer of
exemplary performance and achievements beckoning other Milk Federations in
the country in pursuit of total emulation of its good deeds.
 To ensure prosperity of the rural Milk producers who are ultimate owners of the
Federation.
 To promote producer oriented viable cooperative society to impart an impetus to
the rural income, dairy productivity and rural employment.
 To abridge the gap between price of milk procurement and sale price.
 To develop business acumen in marketing and trading disciplines so as to serve
consumers with quality milk, give a fillip to the income of milk producers.
 To compete with MNCs and Private Dairies with better quality of milk and milk
products and in the process sustain invincibility of cooperatives.
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MISSION OF KMF:
Heralding economic, social and cultural prosperity in the lives of our milk
producer members by promoting vibrant, self-sustaining and holistic cooperative
dairy development in Karnataka State.
MILK PEODUCT OF KMF
Pasteurised Toned Milk Shubham Milk
Nandini Double Toned Milk Homogenised Cow's Pure Milk
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Goodlife Milk Goodlife Slim Milk
Sampoorna Standardised Milk Smart Double Toned Milk
Goodlife UHT Long Life Milk
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CHAPTER-3
ORGANISATIONAL DESIGN
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ORGANISATION:
An organization structure refers to the determination of organization system of the

enterprise it determines the programs and procedures by which the administrative
relations of an enterprise are defined and established. No activity of the organization can
go out of this structure. As the policy of the enterprise determines the limits within which
the enterprise has to work. In the same manner organization structure determines and
defines the shape and size of the enterprise according to which the administrative and
organization decisions have to be taken. It is also the framework of activities of the
enterprise, it may also be considered as the map of the building to be constructed.
Organization structure can be defined, as the organization structure of an organization
deals with its organizational arrangements.
TYPES OF ORGANIZATIONS STRUCTURE
FORMAL ORGANIZATION:-
It refers to the planned structure of jobs and positions with clearly defined objectives and
functions. It is consciously created by top management for the accomplishment of
enterprise objectives. It is made up of official relationships and channels of
communication. Formal structure is governed by established rules and procedures.
Formal organization tends to be stable and predictable. Thus, it is represented in the
organization chart and manual of the enterprise.
INFORMAL ORGANIZATION:-
Informal organization arises from the personal and social relations of people. It is not
formally designed but develops spontaneously out of interactions between persons. It is
influenced by personal attitudes, likes and dislikes. Informal relations cut across formal
channels. People working together in an enterprise frequently come into contact and
develop personal or social relations outside the formal structure.
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ADVANTAGES OF THE ORGANIZATION STRUCTURE:-

The organization structure has the following advantages in the enterprise:-
 NECESSARY FOR THE MANAGEMENT:- it is necessary for the

management of the business and industrial enterprise. In the absence of a clearly
defined organization structure, the management cannot discharge its duties
properly because the structure defines and defines the relation between all the
departments of the enterprise and the rights and duties of all the in the enterprise.
It also tells us about the managerial approach.
 IT REVEALS THE DRAWBACK OF AN ORGANIZATION:- organization
structure is an important document of an enterprise. It serves as the guidelines to
explain what should be done in the enterprise. Actual performance of the
enterprise is compared with this document. The way it reveals the drawback of an
organization
 HELPFUL IN DELEGATION:- it is also helpful in providing the suitable
training to the employees of the organization and defining their duties. It helps in
delegating proper authority to the employees so that they can discharge their
duties effectively and efficiently.
 HELPFUL IN TRAINING:- It is also helpful in providing suitable training to
the employees and defining their duties like mentioned in the above. It defined the
requirements of all the suitable postages and it also determines the need, nature,
and the from of the training required.
DISADVANTAGES OF ORGANIZATION STRUCTURE:-

The organization structure follows from the certain defects:-
 IT IS DIFFICULT TO CHANGE IT: - Management is a dynamic science. To

make is a real science, must be practical, no hard and fast line can be drawn in the
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activities of enterprise, organization structure is the definite determination of

activities. Therefore, it develops rigid ness in the activities and becomes difficult
to make any changes easily.
 IT REVEALS ONLY THE FORMAL RELATIONS:- A very important
drawback of the organization structure is that it is only a formal document. It
defines only the formal relations among the employees of an enterprise. But in
practice, there are two types of relations among them. Formal and informal and
organization structure does not define informal relations.
 IT CREATES CONFLICTS:- Organization structure makes clear difference in
the rights and duties of all the employees of the enterprise. It is the feeling of boss
and subordinate among them. It also develops the feeling of superior and inferior.
It also develops the feeling of senior and junior.
TYPES :
1. PRE-BUREAUCRATIC STRUCTURE- This structure is most common in

smaller organizations and is best used to solve simple tasks. They follow a flat
hierarchy system.
2. BUREAUCRATIC STRUCTURE- They are suited for complex or larger

scale operations. Under this structure:-
 Functional structure- This structure groups specialize in similar skills
in separate units. It is well suited to organizations with a single or
dominant core product because each subunit becomes extremely adept at
performing its particular portion of the portion.
 Divisional structure- It is formed when an organization is split up into a
number of self-contained business units, each operating as a profit centre.
3. LINE ORGANIZATION- It is also known as scalar or military organization.

In this structure, there is a vertical line of authority running from the top to the
28
bottom of the organization. Here, the command is through a straight and

unbroken line. All persons at the same level are independent of each other. The
authority and responsibility of each position is specified. The man at the top has
the highest authority and it is reduced at each successive level down the
hierarchy. Every person is in direct chain of command. Line organization can be
of two types. In pure line organization all individuals at a given level perform
the same type of work and they are grouped into divisions only to facilitate
effective supervision and control. In a departmental line organization work
performed in each department is of a different type.
4. FUNCTIONAL ORGANIZATION:-
Under functional organization, the organization is divided into a number of

functional areas. Each function is managed by an expert in that area. Every
functional area serves all other areas in the organization. Thus, an individual in the
organization receives instructions from several functional heads. Every functional
expert enjoys functional authority over subordinates in other departments. Within a
functional department every operating executive receives orders from several
functional specialists.
5. LINE AND STAFF ORGANIZATION-
Line and staff organization is a combination of line and functional structures. Under
it, line authority flows in a vertical line in the same manner as in the line organization.
In addition, staff specialists are attached to line positions to advise them on important
matters. These specialists do not have power of command over subordinates in other
departments. They are purely of advisory nature. Thus, staff positions are created to
support the line managers. Every staff specialist, however, has line authority over the
subordinates in his own department.
29
ORAGANIZATION STRUCTURE OF KMF
CHAIRMAN
M.D. KMF
Director Director Director Directo Director Director Directo

HRD Anl Hus- Marketing STEP DDIL Qty. Control R&D
Bandry
Joint Dir Joint Dir Joint Dir

Finance/ M/s Purchase co-operative Audit
MD Bangalore MD Mandya
MD Belgaum MD Mysore
MD Bijapur MD Bellary
MD Dakshina Kannada MD Shimoga
MD Dharwad MD Tumkur
MD Gulbarga
MD Hassan
MD Kolar
REVIEW OF THE ORGANISATION STRUCTURE
30
At the end we can say that the organization structure of KMF is quite complicated as
there is a huge man power is employed. We can also say that the departments are mixed
to a very high degree and it seems as if the entire structure is intertwined into each other.
But in spite of this we can see that there is a high degree of synchronizing. This the basic
need for smooth running of such a huge organization employing more than a two
thousand workers. The chain of command has to be followed without any doubt. This in
turn needs a high degree of managerial skills and discipline. The entire chain fails in case
of one slip. Hence the organization has a delicate but very well maintained organization.
31
CHAPTER-4
BUSINESS LEVEL FUNCTIONS
AND
PROCESSES
ADMINISTRATION DEPARTMENT:
32
ADMINISTRATION
DEPARTMENT
SUPERINDENT SECURITY CANTEEN

OFFICER
CLERKS ASSISTANT COOKS

COMPUTER
ATTENDER SECUTRITY
OFFICERS
It is the main department In the MYMUL. It covers all the section of the C0-operative in
case of overall administration. This department acts as the HR department and takes care
that the employees are satisfied with their present work and are working efficiently with
their respective authority. It looks after the welfare schemes of the employees of the
whole dairy. There are totally 3 employees working in the department . one is supervisor,
and the other two are helpers or subordinates. The employees are given a pair of shoes,
uniform, raincoats, etc.., once in a year. All these kind of allowances act as a source of
motivation to the employees. At MYMUL, there are permanent workers and labors and
also contract labors. Contract labors are paid daily wages and a separate register is
maintained for them. The general shift of the dairy is from 9.30 am to 5.30pm.
PURCHASE DEPARTMENT:
33
PURCHASE DEPARTMENT
MANAGER
ASSISTANTS
GRADE 1
HELPER
Purchase department purchases all materials required by the organization. Its main
function is to purchase good quality milk at competitive rates from the milk suppliers.
Functions:
34
 Proper selection of suppliers

 Placing order for purchase.
 Obtaining milk at the best price
Conducting market research for purchase.
Process:
Farmers
DCS
MYMUL
The farmers milk the cattle and take the milk to DCS (dairy Co-operative societies) and
then milk is tested for FAT for both cow and buffalo.
The milk collected at DCS centers are picked up by milk vans and taken to the main
dairy. Then it is weighted there and FAT and SNF are again tested and then send for
pasteurization. The money paid by main dairy to the societies based on the FAT and SNF
content of milk.
For more milk procurement and milk production, balanced cattle feed is essential. For
that reason MYMUL is supplying balanced food i.e.., cattle feed and mineral mixture at
reasonable prices I the village itself at their DCS. The price of the mineral mixture is
rs.30/kg. and tribal people where they finance tribal’s for cows, cattle feed, etc..,
MINERAL MIXTURE:
PERCENTAGE
COMPOSITION (%)
CALCIUM 19.80
PHOSPHORUS 9
35
ZINC 1.62
COPPER 0.25
MEMBERS WHO GIVE MILK FOR DCS:

SMALL 27,495
FARMERS
MARGINAL 19,549
FARMERS
LENDERS/LABORERS 11,369
OTHERS 11,698
TOTAL 70,111
Average procurement
DISTRICT FUNCTIONAL 2006-07 2007-08 2008-09

DCS (IN RS.) (IN RS.) (IN RS.)
MYSORE 27 4,858 3,478 3,841

GOKAK 50 8,161 10,244 13,173
RAIBAG 30 5,018 7,818 9,074
BAILHONGAL 62 10,363 9,751 10,136
SAVADATHI 36 4,789 4,531 5,145
RAMDURG 43 8,677 8,744 8,293
HUKERI 13 1,696 2,149 2,839
CHIKODI 9 704 1,065 1,440
KHANAPUR 51 6,876 7,068 7,902
ATHANI 13 1,852 1,513 1,899
TOTAL 337 52,994 56,361 63,741
THE TOTAL PROCUREMENT TILL JUNE IS 65,585 MILK/DAY.
36
MARKETING DEPARTMENT:
MARKETING DEPARTMENT
Marketing management in the analysis, planning, implementing and

controlling of programs designed to bring about desired exchange of goods
and money with target market needs and desires and using effective
promotional activities to improve sale and attain the desired profit.
Departmental Hierarchy:-
Marketing department comprises of departmental head and further
divided into two categories and further into officers then to superintendents.
Salesmen and dispatchey. The hierarchy is as under.
Marketing Department:
Manager
(Marketing)
Dy Manager
(Marketing)
Asst Manager
(Marketing)
37
Officers
Suptd
Marketing Asst-1
Marketing Asst-2
Marketing Asst-3
Helpers
Objectives of Marketing Department

 To provide utmost satisfaction to the end consumers.
 Create market awareness and preference for Nandini.
 Customer retention.
 Balance the demand and supply of milk and milk products.
 Organize and develop the market share of Nandini effectively.
 Prepare sales budget.
 Formulate strategies to compete with its competitors.
 Always ensure the position of Nandini as the market leader in milk
and milk products.
38

Promotional Activities:-
 Door to door campaigning:- This is done through the sales force

team by questioning the consumers, reasoning them, issuing brochures
etc. This is carried on periodically.
 Organizing meeting:- Organizing meetings is important public
places and inviting important period like doctor, professional,
government officers etc.
 Visit to Non-Govt. Organizations:- Visiting to NGOs and creating
awareness about the product and its benefits, inviting them to the plant
and showing them the production procedures.
 Visit of school children to the dairy and promoting their

products through them by issuing samples.
 Inviting the consumer forum and creating awareness to them.
 Participating in trade shows, exhibitions and educate people.
 Through advertising in major media’s like T.V., News Papers,
hoardings etc…
 It seals its product under the brand name “NANDINI”
Marketing & Sales of MYMUL at a glance
Number of Distribution Routes 147

Retailers 952
Wholesale Dealers 11
39
Franchisee Outlets 34
Milk Parlors 22
Day Counters 138
Transport cum Distributors 17
Number of
Distribution Routes
Retailers
W holesale Dealers
Franchisee Outlets
Milk Parlors
Day Counters
Transport cum
Distributors
FINANCE DEPARTMENT:-
FINANCIAL MANAGEMENT
Assistant Director (Finance)
Joint Director
Linear Deputy Director
40
Deputy Director
Assistant Director
Superintendent
Accountant Assistant
Grade - I
Grade - II
Grade – III
FUNCTION:
The finance department in mysore dairy work as a blood for the whole plant. The
main function of this department is to take care of bill passed and brought to paper
income and profit & loss account statement and annual balance sheet. The finance
department gets funds extremely only from NDDB. They provide fund only for
expansion purpose and purchase of fixed capital like plant and machinery,
Building...etc.., on long term loan basis. The working capital is provided by the Internal
working capital (depends upon procurement of milk,i i.e., producer).
The capital structure of union consist of share capital collected from farmers in the form
of shares. The authorized capital as on 31.3.10 of the dairy is 447.04 lakh. They do not
have any subscribe capital. Every day the cash book is maintained to record the cash
41
receipts and cash payments of the day. The cheque received is also enter in the book later
and this information is feed in to the company to recorde. Tally software is used in a
accounts. For every payment to the societies is made on weekly basis. The staff salary is
made on monthly basis according to attendance. The tax is not paid for milk and lassi,
only paid for pedas, ghee and cattle feeds, jammons,ice creams etc.., apart from daily
activity, the P & I activity, AH activity, training activity, laboratory etc, are passed
through here i.e ,all expenses related to this section are passed for payment in this
department. The book initially as cash book , cash book to monthly ledger , monthly
ledger to annual ledger receipt and payment accounts receipt and payment accounts to
trading and p/l account, finally balance sheet is prepared.
HUMAN RESOURCE MANAGEMENT:
HUMAN RESOURCE TEAM

General Manager (Administration)
Deputy Manager (Administration)
Assistant Manager (Administration)
Personal Secretary / Time Officer / Public Relation Officer /

Administration Officer / Office Manager / Labor Officer
42
Administration Superintendent
Administration Assistant-I
Administration Assistant-II / Sr. Typist / Sr. Steno
Administration Assistant III
Helpers
Peons
Classification of Employees
 Permanent employee: A permanent employee is one who is on the

permanent rolls of the union against the specific cadre and enjoying
all such benefits as specified under the regulatory rules of MYMUL
or all such benefits which may be excluded from time to time.
Employees who are recruited are deemed to be permanent employees
subject to declaration of probation and confirmation by an order.
 Probationer employee: A probationer employee is one who is
provisionally employed to fill a permanent vacancy in a post for a
period of probation which will not exceed 2 years on aggregate and
whose name is entered on the rolls of the probationary employees.
43
 Apprentice: It means a learner who is engaged to undergo

apprenticeship training and who is paid a stipend and whose terms and
conditions of apprenticeship are governed by the provisions of The
Apprenticeship Act of 1961. The Union Dairy is not obliged to
employ him o n completion of his apprenticeship period.
Functions:-
1. Recruitment of candidates
2. Selection of best suited and right person
3. Training and development of employees
4. Framing of rules
5. Creating a good working environment
6. Motivating the employees to work hard
7. Maximizing the performance of employees
8. Maintenance of records
9. Maintenance of industrial relations
10.Employee Service and Benefits
11.Compensation
12.Personal Audit
Recruitment
Procedure of appointment
 If a post is to be fulfilled by competitive examination, then after
giving adequate publicity in the leading Kannada newspaper and one
of the national dailies (as the appointing authority may determine).
The appointment procedure will be carried in the order of merit
44
subject to reservation in Rule 3.6 from the list of candidates prepared

by the selection committee or expert panel.
 If it is by selection, after giving such adequate publicity in leading
newspaper at least one in Kannada and English to the recruitment as
the appointing authority may determine in the order of merit (same
3.6).
 In case of the post being fulfilled by internal promotion from its own
staff it is done by a selection of a person on the basis of merit and
suitability in all respects
HR Practices of MYMUL:-
The following are the HR practices of MYMUL:
1. House rent Allowance:-
It is allowance provided to all permanent employees at the rate
of 13% of basic pay.
2. Conveyance Allowance:-
Companies provide conveyance facilities to each employee
from the place of residence to the place of work. MYMUL also
provides this allowance because it is situated 11 km away from
Mysore. Conveyance allowance of Rs. 225/month for persons owning
Scooters/Motorcycle, Rs. 500 for moped where as Rs 1000 for other
will be given.
3. Shift Allowance:-
It is an allowance given to employees who work in shifts

(except general shift).
45
For 1st shift Rs. 2.25 per day
For 2nd shift Rs. 2.50 per day
For 3rd shift Rs. 3.00 per day
Shift allowance should not be taken into account for the

purpose of calculating PF, Bonus etc…
4. Provident and Pension Fund:-
This contribution is equal to that of employee contributions i.e.

12% of salary and it is divided between provided and pension fund as
8.33% and 3.67% respectively. The total accumulated is balanced in
the individual PF account and is paid to employee at the time of his
retirement or on his leaving the service. In the event of the death of
the employee accumulated balance is paid to his legal heirs.
5. Gratuity:-
The amount of gratuity payable is generally 15 days average

salary. For this purpose salary includes only basic pay, DA and
completed service..
6. Death Relief Fund:-
If any workmen of the factory at MYMUL expire, the company

will declare no paid holiday. However, if the workmen decide to
work on a holiday/weekly off and contributes that day’s wages to the
deceased workmen’s family an equivalent amount will be granted by
46
the company and thus total amount will be paid to the nominee of the
workmen.
The nominee under the payment of Gratuity act, PF act or legal

heir, as the case may be considered for this purpose.
7. Medical Reimbursement:-
Contribution from employees is 1.75% (except washing

allowance and conveyance allowance), Rs 25 from management.
Total 6.5% should be remitted to ESI within stipulated time of

21 days. If an employee becomes fully handicapped, company will provide
him Rs. 170/month depending upon the salary scale. If an employee earns
less than Rs. 25 then management contribute Rs. 25 to ESI.
8. Salary Advance:-Workmen will be provided to avail this facility of

festival advance for Rs. 2,000 each employee same has been
recovered 10 equal installment of salary of employees.
The other HRM practices practiced in MYMUL are as under:-
 Canteen facilities
 Festival allowances
 Cold storage allowance
 Heat allowance
 Attendance allowance
47
 Special pay, allowances inactive
Promotions:-
Promotion for the employees is given on seniority basis. For

promotion, individual employee should have working experience of
about 10 years in a particular department i.e. minimum 5 years.
Trade Unions:-There are two recognized trade unions. It is formed by

workers for legal issues.
 MYMUL employees union
Participation of employees in decision-making is practiced in

MYMUL. The participation of employees is encouraged only in the
matter pertaining to employee disputed, wants and demand.
Production /plant department structure
Manager Dairy
Dept. Manager Ass. Manager Quality

production Engineering Control Stores Transport
48
Ass. Manager Technical Technical Officer Stores Supervisor

Officers Officers
Tech.Officers Supervisors Tech. Lab Ass.

Dairy Stores Clerks
Supervisor Technicians Lab Drivers

Dairy Helpers
Operator Helpers
Helpers
Production is the conversion of raw material into finished product. At MYMUL,

production department is well planned and adequately equipped manufacturing
set up where the entire necessary infrastructure is available.
In MYMUL, the raw milk is processed to form the good quality of milk. During
the processing, the milk is differentiated depending on the contract of FAT and
SNF(solids not fat).
The different types of milk its FAT and SNF.

TYPES OF MILK FAT(IN %) SNF(IN%)
Full Cream Milk 6 9
Toned Milk 3 8.5
49
Standardized Milk 4.5 8.5
The production procedure at MYMUL is done under different stages. They are as
follows.
MILK PROCESS:
DCS
Fresh Liquid Milk Sample Testing Fat and SNF
Chilling
Storing
Pasteurization
Separation 50
Homogenization
1.Collection of Milk:-
In this stage, the milk is brought from the various DCS to the main dairy in a can
containing 40 liters capacity in the vehicles. The cans are marked with two different
colors to differentiate between Cow and buffalo milk. The red colour is used for Buffalo
milk and green or Blue colour is used for cow milk. Once the milk is brought to main
dairy, it undergoes for testing of FAT and SNF.
2.Testing:-
In this stage, the testing goes under three stages:-

 Smelling(odor)test-
51
A man at the dock station checks the acidic nature of milk by smelling or tasting
the raw milk. If the tasted milk had bad odors, then the dairy will pay lower rate
to such society members than the normal rate.
 Extraneous matter appearance-
This test is conducted by the chemist. The chemist checks for the two aspects,
mainly whether the milk is contaminated or not and milk is in liquid form or curd
form. He also checks for any extraneous matters like dust,flies,etc.., which lead
to the spoilage of milk.
 Acidic test –
The payment to the suppliers o DCS depends mainly on FAT and SNF content in
the raw milk. The supplier may add sugar to the milk so as to increase the FAT
and SNF content. Hence, to avoid this adulteration, the acidic test is conducted.
In this process,10 ml. of milk is shaken in a test tibee and 1ml. of hydrochloric
acid . few crystals of resorcinol are mixed into it. The solution is shaken well and
is heated for 5 minutes. If the solution is turned into orange colour, it is demanded
that sugar is mixed to it.
3.Chilling and Storing-

After testing, the milk is allowed to store in the SILOS(storage tank). It is
maintained at cold lever of 4C. the union is having 7 storage tanks, 3tanks are
vertical with 30,000 liters capacity each and the remaining 4 are horizontal among
which 2 are having the capacity of 10,000 liters each and other 2 of 15,000 liters
each.
4.Pasteurization and Separation-
In this stage, the heating of milk is done at 72C in seconds and it is cold in less than
4C. when it is passing through pasteurization , the cream is removed depending on the
quality of the milk required(standardization).
52
5.Packing and Dispatching-

In this stage, the packing is done by the machine of fluid goods and manually in case of
solid goods like peda. The machine packs the milk is 500 ml. pouches. These machines
are automatic with a capacity of packing 10,000 to 14,000 pouches per hour. These
machines are used to pack all different types of milk in plastic bags. Same machines are
used for flavored milk, lassi, ghee, etc…,the polythene bags required for packing milk is
brought from Bangalore.
6.Storing-
After packing, the milk is arranged in crates. Each cater contain 10 liters of milk. The
caters are stored in cold room which has a temperature of about 5C. or below.
QUALITY CONTROL:
Introduction: -
MYMUL has a very good and an extensive quality control

department. The main aim is to produce milk bacteria free and prevent
adulteration of milk. It also focuses on producing proper quality milk with
proper quality of fits and proteins needed
Quality Policy: -
53
The quality policy of MYMUL is, “Collection of pure milk from

Mysore Milk Union Members and Testing Scientifically and Providing
Fresh & Pure Milk to consumers with Associated Milk Products with
Competitive Prices and Best Services”
Functions: -
The main function of quality control section is to control the quality

and produce best quality products. In Q.C section, the milk is tested before
processing and even after processing. Before processing the milk, it is tested
for adulteration, fat content in the milk. Milk 8% is rejected and above 8%
of fat is accepted. After the mi8lk is processed again, it is tested for bacteria
fat contents, acidity etc… Then the reports are prepared after conducting
tests. Then these reports are further submitted to KMF for further clearance
and approval. If my defects are found, then KMF notifies and recommends
for further better performance.
KMF has established a research and development center. It conducts

produce development and continued quality improvement programs.
Hierarchy of quality control as under: -
Hierarchy (Quality Control)
Manager (Q.C)
Dy Manager
54
Asst Manager
T.O
Chemist-1
Chemist-2
Chemist-3
Helpers
Quality Control Techniques Adopted: -
The various tests conducted in order to maintain the quality of milk

are as under: -
1. Garber Test: - To know the fat content present in the milk. It is

mixed with sulphuric acid. (MILK + H2SO4)
2. Milk Test: - To know the fact content present in the milk through
electronic device.
3. Lactometer: - To know the stability of the milk and is conducted by
mixing the milk with water and using lactometer, stability is tested. If
55
milk water quantity is more in the milk the lactometer will immerse
inside.
 MBRT test and methylene blue radiatic Test.
 Acidity Test.
 PFA Test and Prevention of food Adulteration Test.
Inspection & Testing: -
Each individual co-operator is trained for instructed well before the

individual co-operator commences his routine work of production. The
supervisor inspects the routine work personally.
CHAPTER-5
56
FINDINGS, CONCLUSIONS
&
RECOMMENDATIONS
FINDINGS
 it was found that response the majority of nandini customers are under
the average age group of 30-40.
 It is found that majority of the response have income 5k to 10k.
 It is found that maximum number of response agree that the product is
economical.
 It is found the response want to buy the products always, on though
there is change in price.
 It is found that the response believe that the product is worth for their
money.
 It is found that maximum response don’t want to substitute nandini
with any other brand.
57
 It is found that majority of the response agree that an improvement in

the quality and packing balance the raise in price.
 It is found that majority of the response consider the attributes of the
product as good
Suggestions
 Customer are using nandini products have distributed income and
product must satisfy each one of them.
 Most customer using nandini product from 5-10 years are vdry loyal
and the company must build an improve the quality to retain them.
 Quality and attributes must be such that customer must feel it as
economical.
 There must not be a change in price in a short span of time.
 Reach of the product must be efficient and the responsive must be
improved.
 Price must not be increased because many customer want to
substitute.
 There is a threat of competition from many other brands hence the
company must try to cut the cost.
Learning experience gained in the MYMUL

 got complete knowledge of quality testing
 method of maintaining accounts in proper manner.
 Learnt about the marketing strategy and sales promotion.
 Learnt about the distribution channels , it consists wide area of
networking also speed of operation.
58
 Proper manner of maintaining punch cards and everytime alert

security centre.
CONCLUSION:
In less span of time, many new companies are entering the market. The employees and
customers may get attracted towards the new companies. Therefore the ultimate
challenge for MYMUL would be to maintain confidence and trust of its employees and
customers. By doing this it will deliver employee satisfaction as well as customer
satisfaction.
To conclude with it was a nice experience in MYMUL, Mysore. I really came to know
what it takes to create and maintain an organization and its customers to give them a
satisfaction. Moreover all the staff of the organization provided me with the relevant
information which made a good learning experience.
BIBLIOGRAPHY:
www.kmfnandini.corp
www.nddb.com
company manuals
Annual report
Company Journals
Discussion with Department heads
59
60

Chapter-1: Introduction To The Study & Industry Profile

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MATS INSTITUTE OF MANAGEMENT AND ENTERPRENURESHIP

INTRODUCTION TO THE STUDY

INTRODUCTION TO ORGANIZATION STUDY:

NEED FOR THE STUDY:

OBJECTIVES OF THE STUDY:

 To study the organizational structure; organizational design; the departmentation;

 Observing the working of various departments like HRM; MARKETING;

 To know the organizational culture.

 To know the organizational motive.

METHODOLOGY USED FOR ORAGNIZATION STUDY:

The project started on 8th of NOVEMBER,2010. There was a prior appointments

PRIMARY DATA: includes-

SECONDARY DATA: includes-

RESEARCH METHODOLOGY APPLIED:

PORTERS FIVE FORCE ANALYSIS:

 The threat of entry

DAIRY INDUSTRY, WORLD DAIRY INDUSTRY

Milk Yield comparison:

Country Milk Yield

World (Average) 2021

INDIA DAIRY INDUSTRY

INDIA DAIRY INDUSTRY: HISTORY

distance of the place of consumption because of lack of suitable means of transportation

MAJOR DAIRY PRODUCTS MANUFACTURERS

Some of the major dairy products manufacturers in the country:

Company Brands Major Products

3. Inter-union competition in same place.

PEST Analysis stands for “Political, Economic, Social and Technological

 The political environment is stable.

 Since it is a government organization so the rules and the policies are in

 There is no barrier of language

 The present technologies allow for the production of new products.

 COMFED uses internet for marketing

PORTER’S FIVE FORCE ANALYSIS:

 Threat of new entrants

THE THREAT FROM SUBSTITUTE PRODUCTS:

Competitive rivalry within industry:

THE BARGAINING POWER OF THE CUSTOMERS:

THE BARGAINING POWER OF SUPPLIERS:

KARNATAKA MILK FEDERATION

Karnataka Milk Federation – a harbinger of rural prosperity

ABOUT KARNATAKA MILK FEDERATION

KMF is a Cooperative Apex Body in the State of Karnataka representing organizations of

The philosophy of dairy development is to eliminate middlemen and organize institutions

THE DIFFERENT MILK UNIONS:

There are totally 13 milk unions in the state. They are:

1. Bangalore Milk Union

8. Belgaum Milk Union

MYSORE CHAMARAJNAGAR DISTRICT CO-OPERATIVE MILK

THE MAIN FUNCTIONS OF THIS UNION

H.d.revanna hassan union

H.j.chandru Mandya union

Sanjay gowda r patil belgaum union

THE VISION OF KMF:

MILK PEODUCT OF KMF

Pasteurised Toned Milk Shubham Milk

Nandini Double Toned Milk Homogenised Cow's Pure Milk

Goodlife Milk Goodlife Slim Milk

Sampoorna Standardised Milk Smart Double Toned Milk

Goodlife UHT Long Life Milk

An organization structure refers to the determination of organization system of the

TYPES OF ORGANIZATIONS STRUCTURE

ADVANTAGES OF THE ORGANIZATION STRUCTURE:-