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INDUSTRY PROFILE
1.1 AUTOMOTIVE INDUSTRY
The automotive industry designs, develops, manufactures, markets and sells the
world motor vehicles. In 2008, more than 70 million motor vehicles, including
cars and commercial vehicles were produced worldwide.
In 2007, a total of 71.9 million new automobile were sold worldwide. Around
the word, there were about 806 million cars and light trucks on the road in
2007: the burn over 260 billion gallons of gasoline and diesel fuel yearly. The
numbers are increasing rapidly especially in India and china.
1.2 INDIA
An embryonic automotive industry started in India in the 1940s. However for
the next 50 years the growth of the industry was hobbled by the socialist
policies and the bureaucratic hurdles of the license. Following, the economic
liberalization in India from 1991 and the gradual easing of restrictions on
industry, India has seen dynamic 17% annual growth in automobile production
and 30% annual growth in export of automotive components and automobiles.
India produces around 2 million automobiles currently. Total turnover of the
Indian automobile industry is expected to grow from USF 34 billion in 2006 to
122 billion in 2016. Tata Motors has launched Tata Nano, the cheapest car in d
world at USD 2200.
Indian automotive industry is contributing a significant portion to overall
Indians GDP. This sector is growing and promising a lucrative future.
Automotive sector also provides wide business and employment opportunities.
With the liberalization of economy, the decades old monopolistic environment
of the Indian automotive industry where only a handful of vehicle models were
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available with a long waiting list, gradually gave way to a highly competitive,
complex and rapidly changing market which was not limited to domestic
market alone. Today the number of vehicle models available are more than
hundred and not a month goes without offerings of newer and more advanced
mode.
Ironically for the Indian automotive industry, the cost of technology
development has increased manifold and increasing product cost has put a
squeeze on profit margin affecting their ability to outsource expensive
technologies. Moreover, the technologies are not so easily available from
outside .Instead of giving a license or setting up joint ventures with an industry,
many intentionally renowned automobile manufacturers have started
production in India to take advantage of grate commercial opportunities Indian
market offer. Even in the existing joint venture, the control has slowing moved
into hands of MNCs.
Indian automotive industry urgently needs technologies to produce fuel
efficient, environmental friendly, lighter, safer and cost competitive engines,
and vehicles. Advanced material and manufacturing techniques, technologies
for using alternative fuels, emission abatement, fuel economy improvement,
safety enhancement, engine management systems, and embedded vehicle
control system are some of the areas where we must focus our efforts.
1.3 AT PRESENT, INDIA IS THE WORLDS
CHAPTER- 2
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COMPANY PROFILE
2.1 BACKGROUND AND INCEPTION OF THE COMPANY
BOSCH Group founded in 1886 in Germany as a workshop for precision
Mechanics and Electrical engineering by Robert BOSCH Group. The
BOSCH Group today is the largest automotive technology supplier in the
world with a global group turnover of 47.3 billion Euros in the
automotive technology, industrial technology, consumer goods and
buildings technology in the fiscal 2010.
Robert BOSCH Group GmbH is a widely known company the world
over, with presence across six continents. It has more than 300
subsidiaries and regional companies in over 60 countries. If its sale and
service partners are included, then Bosch is represented in roughly 150
countries. Bosch operates 260 manufacturing locations worldwide of these
200 are located outside Germany in Europe, North and South America,
Asia, and Australia. The company employs more than 283,500 associates
worldwide.
The name Bosch is synonymous with innovation in automotive
technology, industrial technology and consumer goods and building
technology. The company is not just famous for automotive technology
products like Gasoline, Chassis systems and Car electronics, it is also a
pioneer in the areas of automation technology, metal technology,
packaging technology, power tools, heating technology, house hold
appliances, car multimedia systems and security systems. In 2010, BOSCH
Group filed 3800 patent applications across the globe.
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Tool Corporation
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Bosch customers choose us for Bosch innovative strength and efficiency, for
Bosch reliability and quality of work. Bosch organizational structures,
processes, and leadership tools are clear and effective, and support the
requirements of Bosch various businesses. We act according to common
principles. We are strongly determined to jointly achieve the goals we have
agreed upon.
As associates worldwide, we feel a special bond in the values we live by day
for day. The diversity of Bosch cultures is a source of additional strength. We
experience Bosch task as challenging, we are dedicated to our work, and we are
proud to be part of Bosch.
2.4.1 BOSCH MISSION
BeQIK Be Better, Be Bosch Profit secures our growth
Quality
Innovation
Customer Orientation
BeQIK gives us the bearing for our actions. Our objective is to continuously
improve all our internal processes so that growth and economic success can
be secured in the long term.
BeQIK
Quality is our most valued asset
Innovation today ensures businesses tomorrow
Customer orientation inspires customers and associates
BeBetter
We want continuous improvement
We want to be better than our competitors
BeBosch
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systematically, learn from mistakes and prevent their root causes without
delays.
Our suppliers contribute systematically to the quality of our products
and services. Therefore our suppliers have to live up to standards we
have adopted.
2.5 PRODUCT/SERVICE PROFILE
Product Range
A. Automotive Technology Robert Bosch
Diesel Systems
Common Rail System for passenger cars, commercial vehicles &
off-highway vehicles
Axial Distribution injection pumps
Multi Cylinder Inline Injection Pumps (PE)
Single-Cylinder Injection Pumps (PF)
Elements
Delivery Values (DV)
Governors
Injection Timers for PE pumps
Fuel Filter & Water Separators
Glow Equipment
Electronic Control Unit
Gasoline system
Electronic Control Unit
Fuel Injectors
Lambda Sensors
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B. Industrial Technology
Industrial Equipment
Special Purpose Metal Cutting / Grinding / Honing / Lapping/ Super
Finishing machines.
Semi / Fully Automatic Assembly Machines
Semi / Fully Automatic Inspection & Measuring Equipment
Cleaning Machines
Electro-Chemical Machines
Tools, Gauges & Fixtures
Exhaust Gas Re-circulating Unit (EGR)
Test Equipment
Bosch Packaging Machines
Vertical Form Fill & Seal Machines
Dosing System Cup Filler, Auger Filler, Weighed & Pump
Pharmaceutical Packaging Machines
Confectionary Processing & Packaging Machines
C. Consumer Goods & Building Technology
Bosch Power Tools
Construction Tools
Wood Working Tools
Metal Working Tools
Cordless Tools
Do- It Yourself Tools
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Jaipur Plant
Set up in 1999 the Jaipur plant manufactures BE (Mechanical) pumps for
domestic market and export purpose. The VE pump (Distributor fuel injection
pump) is designed to meet Bharat state 11 & Euro 11 emission norms. These
pumps are used in 3-6 cylinder vehicles.
Built area 16345m2
Land area 202350m2
Employees more than 1200
COUNTRIES COVERED
Middle-East and Africa (UAE, EGYPT, KENYA), Neighboring countries (Sri Lanka,
Bangladesh,) South East Asia (Philippines, Thailand, Indonesia).
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2.7
OWNERSHIP PATTERN
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Since 1964, Boschs majority shareholder has been Robert Bosch Stiftung
GmbH, a charitable foundation. The Stiftung carries on the charitable and
social endeavors of the companys founder in contemporary form. It sees itself
as a foundation that pursues its objectives both with programs and institutions
of its own, and by supporting suitable projects and initiatives proposed by
others for tackling the tasks faced by society.
Today, the Robert Bosch Stiftung, a charitable foundation, holds a 92 percent
stake in the share capital of Robert Bosch GmbH. The share dividend received
by the foundation is used exclusively for charitable purposes, i.e. to support
general medical care, international understanding, social work, training and
education.
Robert Bosch
Stiftung GmbH
92% Beteiligung
Familie Bosch
Kein stimmrecht
8% Beteiligung
Robert Bosch
Industrietreuhan
d KG
7% stimmen
0.01%
Beteiligung
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Modi Champion
Delphi
Denso
Doowon
Electrex
Nippon
NGK
Siemens VDO
Zexel
Cav England
Lucas
TVS
Bosch infrastructure is one of the best in the country. The individual work
place is designed as per the international standards which make the employees
feel comfortable, proud, happy and safe.
Medical Facilities
Medical centre works round the clock and also provides a 24 hours ambulance
service
The company has also associated with important hospitals, labs and senior
Canteen Facilities
Food is provided to all the employees and 24hrs a day providing breakfast,
lunch, dinner, tea/coffee and snacks for 8500 employees in 4 shifts.
It is well equipped and accommodation for more than 1500 persons at a time
The food provided in the organization is 100% hygiene.
Workings of the canteen is guided by an advisory committee
Transportation Facilities
The company provides transport facilities for employees
Library Facilities
The company has the facility of both general and technical library
The general library is used by the project trainees also
Other Facilities
Sports club
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Fine Arts Society looks into the cultural events and various programmes
2.10 ACHIEVEMENTS/AWARD
February 1, 2012: Bosch Limited wins Car & Bike Award 2012
The accolades and awards keep rolling in for Bosch Limited. Once
again, Bosch Limited was the proud winner of the Subros Car & Bike
Award 2012 in the Best Automotive Component Manufacturer
category.
Jan. 07, 2010: NDTV Car & Bike Award - Automotive technology
of the year
This accolade recognizes the contributions made by Bosch in India, for
localizing ABS (Antilock Braking System) production. Bosch is the only
automotive supplier to manufacture ABS in India for passenger cars and
light commercial vehicles. ABS is crucial to safety while driving, as it
makes braking safer, by preventing the wheels from locking.
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April 15, 2009: DHL - CNBC TV18 International Trade Award
Bosch won this honor in the category of auto component industry, for
doing extremely well in exports through its low-cost solutions. The
award recognizes the companys commitment and innovations that
address the needs of the Indian market, and keep Brand India alive.
Feb. 20, 2009: NDTV Car & Bike Award Auto component
manufacturer of the year 2009
Bosch was chosen as the best in the auto component industry of India
for the year 2009. These awards are considered as benchmarks for auto
excellence in India and widely trusted by consumers, manufacturers and
auto experts alike. The award recognizes the best in the automobile
industry of India.
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Jan, 12, 2007: NDTV Profit Car & Bike Award 2007 Automotive
Technology of the year'
Audited by PricewaterhouseCoopers, these awards honored the best in
the Indian automotive industry for their handiwork in calendar year
2006. Bosch was presented with the award for its application of ABS /
ESP technology.
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Jan. 12, 2006: NDTV Profit Car India Award Safety &
Technology Award
Bosch was presented with this award for its pioneering work on the new
age direct injection diesel fueling systems, with notable emphasis in the
range of common rail diesels. Also taken into account was the persistent
focus on unit injector systems which are entering the scene in the high
profile high aspiration D-segment cars. The jury considered not just the
technology but its bearing on safety, and the benefits it brought to
automotive users as well as the potential it has for India.
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2.11 WORK FLOW MODEL
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also the formidable biggies also entering India in such a manner that it is
increasingly turning out to be a lucrative destination for many
companies.
The other growth plans are
Focus on strengthening or engineering competencies and infrastructure
in new product lines.
Focus on securing liquidity position.
Cost reduction without hurting the long term interest of the business.
Import substitution projects.
Continuous improvement activities and implementing lean practices
through Bosch Production System (BPS), continue with redesign of HR
policies and practices to attract, retain and motivate employee.
CHAPTER - 3
MCKINSEYSS 7S FRAMEWORK
3.1 STRATEGY
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Hr Strategy
It pays special attention to competence management and filling up of
executive positions in growth regions, special entry programs to attract
qualified university graduates and applicants with professional
experience. Train and develop the younger generation of apprentices/
engineers who are the future skilled technicians and managers.
Corporate Strategy
Bosch economic strategy corresponds to a common aim of the group for
innovation, independence and integrity. The aim is to be among the
world market leaders and to be a major player in all of the company
business sectors. The strategy to achieve this goal is by strong marketing
of new products and ongoing investment in Research and Development
to innovate continuously. The emphasis on innovation is underlined by
huge number of associates, working in Research and Development
departments, 21250 world wide. Efficient sales and customer service
also play a key role in Boschs corporate strategy.
Innovation
Bosch shall focus their innovative strength on technology that is
INVENTED FOR LIFE. Bosch has invested heavily in R&D much
above the industry average. This has resulted in Bosch pioneering many
technological advances
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3.2 STRUCTURE
The design of organization structure is a critical task to the top
management of an organization. It is the selection of the whole
organization edifice. Organization structure refers to the relatively more
durable organizational arrangements and relationships. It prescribes the
formal relationship,
how an organizational members procedure exists. To guide the various
activities performed by the member of all part of the organization.
Board of Directors
Plant Commercial
Plant Quality
Plant Technical
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3.3 SYSTEM
System refers to formal process and procedures use to manage the
organization including the management control system performance
management measurement and reward system, information system and
distribution.
Human Resource
The HR organization uses its human resources strategy to support the
divisions in the pursuit of their objectives. This involves the consistent
application of the balanced scorecard. This method is used by
executives.
The HR organizations missions are based on the House of Orientation
and contribute to closer alignment with the strategic objectives of the
company. The House of Orientation provides a frame of reference for
Bosch long term road map and for the way Bosch works together. It is
based on Bosch values and core competencies.
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Environment Management
Bosch has been expanding the environment management systems at
Bosch sites since 1996. Now, the 300 sites have been certified to ISO
14001. Bosch implemented a maturity model for all manufacturing and
developing sites, which will serve as the basis for further improvements
in environmental protection, occupational safety and fire safety.
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3.4 STYLE
Style is the leadership approach in the top management and the
companys overall operating approach. Style impacts the norms that the
people follow and how they work and interact with each other and the
customers. The leadership style depends upon the organization culture
that is in practice.
Bosch Ltd has participative kind of leadership style where in the leader
consult with the subordinate, a proposed action, decision and
encourages, ensures equal participation among them. The style adopted
by the management is to maintain a friendly and collaborative
environment for smooth running of the organization.
Bosch Guidelines for Leadership
1. Aim for success: - Profit, growth, quality, customer and process
orientation. These are the key metrics with which our corporate
objectives are aligned. Regularly communicate these objectives to your
associates. Make it clear what each individual can contribute to achieve
it.
2. Demonstrate initiative: - Together with your associates, generate
new ideas and strategies that make our company stronger. Encourage
them to embrace change and take initiative on their own and support
them in the implementation.
Gr.6 Officer
3.6 SKILLS
There are 6 different skill groups within the skills framework.
Community leadership skills, leadership skills, management skills,
occupational/technical/ professional skills, core skills, skills for life. The
other skills groups are
GENERIC SKILLS are those which should be possessed by each and
every employee in order to carry out the task successfully. Skills like
problem solving, decision making and communication form the basic
important generic skills.
SPECIFIC SKILLS are those which should be possessed by the
employee to carry out his/her assigned specific task. Example: Time
management, shop floor management, building teams, leadership and
motivation, creativity, industrial safety and environment.
BOSCH SKILLS - The employees according to the nature of the jobs
posses following skills
Functional
Quality
Information Technologies
Behavioural/ Human Relations
Managerial
3.7 SHARED VALUES BOSCH VALUES
Bosch Values are those values which are applied and followed by all
Executives faithfully.
Future and result focus: - In order to ensure dynamic development of our
country and to guarantee long term corporate success, we participate in
shaping the changes in markets and technologies.
Responsibility - We accept that our actions must accord with interests of
society.
Initiative and determination - We act on our own initiative, with an
entrepreneurial but accountable spirit, and demonstrate determination in
pursuing our goals.
Openness and Trust - We inform our associates, business partners and
investors in a timely and open fashion of important development within our
company.
Fairness - We view mutual fairness as a condition of our corporate success
when dealing with each other and with or business partners.
Reliability, credibility, and legality - We promise only what we can
deliver accept agreements as binding and respect and observe the law in all
our business transactions.
Cultural diversity - We are aware of our companys regional and cultural
origins and at the same time regard diversity as an asset as well as a
precondition of or global success.
CHAPTER - 4
SWOT ANALYSIS
4.1 STRENGTHS
High customer satisfaction.
Established brand image around the world over the centuries.
Continuous improvement of products and quality.
Employee development given at most important.
Cost reduction strategy is good.
Good infrastructure facility.
Leadership through innovation.
High employee morale.
Effective decision making, information sharing and authority
distribution.
Less employee turnover.
High quality and eco-friendly products.
4.2 WEAKNESS
Experience and skilled employees are not in right position because of
ineffective allocation.
Decision making will be delayed because of long procedure.
In certain situations centralized management is followed.
Marketing of products is given less importance.
Adaptability towards change is low.
No diversification of business.
4.3 OPPORTUNITIES
Continuous innovation of products.
Bosch can foray into other line of business as it has a good brand image.
It can produce new machineries using high technology.
Potential to grow in power tools, packaging and security systems.
It can produce more economical and eco-friendly products.
It helps to compete with other companies
Quick cost effective adaptation of product to market requirement of
Indian market.
4.4 THREATS
Increase in competition.
Too many substitute products available in the market.
Brand image being diluted due to entering into many products.
Growing bargaining power of companies.
Continuous cost pressure.
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