Professional Documents
Culture Documents
ON
ESCORTS CONSTRUCTION
EQUIPMENT LIMITED
Submitted by:
SAURABH TYAGI
FIP/BBA(G) IB/021
A
PROJECT REPORT
Submitted to
Manav Rachna International University
In Partial Fulfillment of
BACHELOR OF BUSINESS
ADMINISTRATION
Submitted By
SAURABH TYAGI
BBA(G) IB- V SEMESTER
ROLL NO. FIP/BBA(G) IB/ 021
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CONTENTS
Topics
Acknowledgement
History
5-9
13 - 15
16 - 25
22 - 24
25 - 30
31 - 32
33 - 38
Operations Framework
SW OT Analysis
Main Competitors
Conclusion
W ork Cited
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10 - 11
12
39
40 - 41
42
43
44
ACKNOWLEDGEMENT
I am sure that the reader will find this report useful to enhance their
knowledge in Escorts Groups & help them in various ways.
SAURABH TYAGI
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ORGANISATION HISTORY
The Escorts symbol means more than a seen by the eye. It has been prepared with
certain objective in mind and is symbolic in more then one way. The philosophy
behind Escorts and the E in the Escorts is Enterprise. The Hexagon is a symbol
of productivity, precision when interposed as a nut. It symbolizes a craftsmanship,
and mending productivity. The sprains superimposed on the Hexagon represent
the workers and the people of the Escorts. This forms the letter E the first of
Escorts a company even on the more changing unveiling the future. The genesis of
Escorts goes back to 1944 when two brothers, Mr. H. P. Nanda and Mr. Yudi
Nanda, launched a small agency house, Escorts Agents Ltd. in Lahore. Over the
years, Escorts has surged ahead and evolved into one of India's largest
conglomerates. In this journey of six decades, Escorts has had the privilege of
being associated with some of the world leaders in the engineering manufacturing
space like Minneapolis Moline, Massey Ferguson, Goetze, Mahle, URSUS,
CEKOP, Ford Motor Company, J C Bamford Excavators, Yamaha, Claas,
Carraro, Lucky Goldstar, First Pacific Company, Hughes Communications,
Jeumont Schneider, Dynapac . These valued relationships be it technological or
marketing, are our highly cherished experiences treasures, which have helped us
inculcate best in class manufacturing practices and to emerge as a technologically
independent world class engineering organization.
1944 - Launch of Escorts (Agents) Ltd.
1948 - Pioneered farm mechanization in the country by launching Escorts
Agricultural Machines Limited, with a franchise from the U.S. based Minneapolis
Moline, for marketing tractors, implements, engines & other farm equipment.
Launch of Escorts (Agriculture and Machines) Ltd.
1949 - Franchise of Massey Ferguson tractors for northern India
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MoU was signed with Long Manufacturing Company, USA for setting up a
Joint Venture in USA.
1999 - MoU for Joint Venture with a Polish Company POL-MOT was signed for
assembly, manufacturing and marketing of Farm Machinery.
2004 - Divested Escotel Mobile Telecommunications to Idea Cellular
TS16949 certification for Agri Machinery Group.
2005 Divested Escorts Heart Institute and Research Centre (EHIRC) to Fortis
Healthcare.
2006 - Divested in Carraro India Ltd.
Set up new manufacturing facility in Rudrapur for manufacture of new range of
railway equipment
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have rolled out from the facilities of Escorts, complemented by a highly satisfied
customer base, are testimony to the manufacturing excellence of Escorts. Following
the globally accepted best manufacturing practices with relentless focus on research
and development, Escorts is today in the league of premier corporate entities in India.
Technological and business collaboration with world leaders over the years, Globally
competitive indigenous engineering capabilities, over 1600 sales and service outlets
and footprints in over 40 countries have been instrumental in making Escorts the
Indian multinational. At a time when the world is looking at India as an outsourcing
destination, Escorts is rightly placed to be the dependable outsourcing partner of
world's leading engineering corporations looking at outsourcing manufacture of
engines, transmissions, gears, hydraulics, implements and attachments to tractors, and
shock absorbers for heavy trailers.
In today's Global Market Place, Escorts is fast on the path of an internal
transformation, which will help it to be a key driver of manufacturing excellence in
the global arena. For this we are going beyond just adhering to prevailing norms, we
are setting our own standards and relentlessly pursuing them to achieve our desired
benchmarks of excellence.
The Escorts symbol means more than a seen by the eye. It has been prepared with
certain objective in mind and is symbolic in more then one way. The philosophy
behind Escorts and the E in the Escorts is Enterprise. The Hexagon is a symbol of
productivity, precision when interposed as a nut. It symbolizes a craftsmanship, and
mending productivity. The sprains superimposed on the Hexagon represent the
workers and the people of the Escorts. This forms the letter E the first of Escorts a
company even on the more changing unveiling the future.
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VISSION
We shall strive to be the Numero Uno in the Indian tractor industry and top five
tractor manufacturers in the world. We shall continuously strive to meet the ever
rising expectations of our valued customers at the lowest internal cost. We shall
aim to offer the farming community a range of innovative products and services,
which shall enable them to improve their productivity and competitiveness. We
shall achieve a turnover of RS. 20 Billion And profit of RS. 2 Billion By the year
2000. Transcending national boundaries, we shall strive to attain exports of one
tenth of our total tractor production by the year 2000.
MISSION
We will achieve leadership in market share & profitability in the domestic tractor
market by the year 2009-2010 and shall be the world's largest supplier of sub 100
HP tractors. We shall proactively contribute to the prosperity of the rural economy
by defining a larger role for ourselves in the Food and Agriculture sector.
OBJECTIVE
ESCORTS LIMITED are the holding company of Escorts groups. Post restructuring,
Agri Machinery or tractors has become the focus area of operations. Other businesses
like I.T., construction equipment are controlled through subsidiaries and joint
ventures.
BUSINESS
Background
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In 1960, Escorts set up the strategic Agri Machinery Group (AMG) to venture into
tractors. In 1965, we rolled out our first batch of tractors under the brand name of
Escort.
In 1969 a separate company, Escorts Tractors Ltd., was established with equity
participation of Ford Motor Co., Basildon, UK for the manufacture of Ford
agricultural tractors in India. In the year 1996 Escorts Tractors Ltd. formally merged
with the parent company, Escorts Ltd. Since inception, we have manufactured over 1
million tractors.
Technologies
Escorts AMG has three recognized and well-accepted tractor brands, which are
on distinct and separate technology platforms.
Farmtrac: World Class Premium tractors, with single reduction and epicyclic
reduction transmissions from 34 to 75 HP.
International Subsidiaries
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Fuctional Excellence
Manufacturing
Quality Assurance
Materials Management
Knowledge Management
Finance
Human Resources
Information Technology
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MANAGEMENT
Mr. Rajan Nanda
Chairman
An alumnus of Doon School, Dehradun, Mr. Rajan Nanda took
over as Chairman of Escorts Group in the year 1994. That was the
time when the Indian economy had begun to burgeon as a result
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of liberalization. The task before him was to prepare Escorts Group for the emerging
competitive, globalised business environment and steer it to greater heights.
Displaying vision and leadership qualities, Mr. Nanda undertook a major restructuring
programme to give sharper focus to the Group's businesses. Under his stewardship the
Escorts Group today is moving ahead in the high growth areas of agri machinery,
construction equipment, railway equipment and auto components.
Mr. Nanda is an active member of several apex trade and industry bodies. As member
of the CII National Council he has served as Chairman of its Agriculture Committee
in the past years. He played a pivotal role in promoting the cause of Indian agriculture
and his endeavours resulted in the Government announcing the long-awaited National
Agriculture policy.
He is a member on the Board of most Group companies since 1997 and has the overall
responsibility for managing the Group's agri, construction and engineering businesses.
Combining contemporary management techniques with real life practical approach,
Mr. Nikhil Nanda has been responsible for driving the business growth initiatives of
the Group to strategically position it in the global arena.
Mr. Nanda is also among the five Indians selected as the Global Leaders of Tomorrow
for the year 2001 by the World Economic Forum, Geneva.
Mr. S. Sridhar
CEO Agri Machinery Group
Mr. S Sridhar is an Agricultural Engineer and has done Post
Graduate Diploma in Business Management from Symbiosis
Institute of Business Management Pune. He has over 26 years of
experience in Auto (Tractor and Bi-Wheeler) Industry in the areas of
Sales & Marketing, Plant Operations, Product Planning and
Strategies. In his previous assignment, Mr. Sridhar was with Bajaj Auto as the
President of their Motorcycle Business. In the long span of more than two and half
decades, he has worked with companies like Bajaj, TVS Suzuko and Mahindra.
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Mr. O K Balraj
EVP & Group CFO
A Chartered Accountant by profession, certified under the Indian
Institute of Bankers, London, with an advanced degree/ diploma
from Harvard University on Project Finance, Mr. O K Balraj has
over 28 years of rich and valued experience in different facets of
financial operations and executive management. Prior to joining Escorts, he was
working as Group Director (Finance) at NSL Group where he was responsible for
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dealing with banks and financial institutions for raising capital for fund expansion
projects, follow-up of new investments for formulating strategic business plan.
He has also worked at senior positions in reputed organizations like Goghenheim
Infrastructure Fund, New York, Essar Group, IDFC, ANZ Grindlays and Tata Group.
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QUALITY POLICY
Over six decades back two young men set out on a journey together armed with little
beyond intelligence, business acumen and determination and dreams aplenty. They
believed that India could only achieve total freedom with a breakthrough in the field
of agriculture and mechanization would have to rule the fields. Their youthful
enthusiasm had kindled the hope that one day they would make a mark of their own.
They were in fact writing the first chapter of what has come to be widely recognised
as one of the greatest success stories in Indian industry.
Escorts came into being with a vision. A vision that eschewed easy paths to
profitability, and sought instead for ways to make a contribution. A vision that led two
young brothers, Yudi and Hari Nanda, to branch out of their family's prospering
transport business and institute ventures that were to become the foundations of
Escorts Limited. On 17th October 1944, Escorts Agents Limited was born at Lahore
(now in Pakistan) with Mr. Yudi Nanda as Managing Director and Mr. Hari Nanda as
Chairman. It was a trendsetting marketing house driven by the same business
philosophy, which had given their family enterprise an unrivalled reputation: customer
concern. Not long afterwards, this driving ambition to go beyond the expected led
Hari Nanda to the first of his many successful business insights - the discovery of the
great business potential that lay in India's villages. This led to the launch, in 1948, of
Escorts (Agriculture and Machines) Ltd., with Yudi Nanda as Director. Though
separate business entities then, both companies had two great strengths in common:
the dynamic Nanda brothers and the unifying force of the name they gave their
companies; Escorts, literally 'escorting' their products and services to the customer
while most other businessmen were just selling.
Tragically, Mr. Yudi Nanda died in an accident in 1952 - but his spirit remained
embedded in the foundations of the company. Mr. H P Nanda then took on the mantle
to realise the dreams which he had always seen with his brother.
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Escorts (Agents) Ltd., and Escorts (Agriculture and Machines) Ltd. merged in 1953 to
create a single entity -Escorts Agents Pvt Ltd. Having initially started with a franchise
for Westinghouse domestic appliances, by this time the Company had already
expanded its marketing and service operations, representing internationally known
German and American organisations such as MAN, AEG, Haniel & Leug, Knorr
Bremse, MIAG and BMA for sophisticated electrical and mechanical engineering
equipment and Minneapolis Moline and Wisconsin for agricultural tractors,
implements and engines. Escorts made a major thrust into the agricultural arena by
taking on the marketing and service franchise for Massey Ferguson tractors in
Northern India, which soon comprised 75% of MF's all-India sales - a signal tribute to
Escorts' inherent strengths. Its first industrial venture came up in 1954, in partnership
with Goetzewerke of Germany for the manufacture of piston rings and cylinder liners
- followed by production of pistons in collaboration with MAHLE, also of Germany,
in 1960. The company's incorporation in its present name, Escorts Limited, was
effected on 18th January, 1960. Escorts' next major industrial activity was the
assembly of tractors in 1961 in technical cooperation with URSUS of Poland.
Subsequently this led to the manufacture of the country's first indigenous tractors
under Escorts' own brand name, which were to play a pivotal role in the Green
Revolution. This went on to lay the foundations that even today are the Company's
core strengths -relevant, world-standard technology through strategic international
alliances; a broadbased marketing and service network yet unrivalled; powerful
symbiotic relationships with suppliers and dealers; and above all, the crusade to make
a difference.
Beyond the growth of the organisation, these principles have ensured that Mr. H. P.
Nanda's contribution to the cause of industry and the consumer will endure. He
pioneered the revolutionary concept of 'interdependence' between ancillary and large
industries, institutionalising vendor development and in the process building
Faridabad and the entire belt of townships in the region. He introduced the discipline
of service going before marketing, reassuring the customer that Escorts would stay
with them, that they were here for the long run. He built lasting alliances with an array
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HR PRACTICES :
Its Human Resource policies are aimed towards creating a skilled & motivated
workforce. It has 50 employees both employed in its corporate office as well as in its
manufacturing unit & other facilities. Description is as below:
*According to age
AGE
NO. OF EMPLOYEES
18-24
10
25-35
25
35 & above
15
TOTAL
50
through electronic ads and this is the best way to reach a wide audience because
almost all people have access to it.
MARKETING STRATEGY FOR PERFECT BAKE:
Escorts Limited AMG Plant-II Quality Objectives are derived for the quality policy
and are intended to provide quality direction to employees in the day to day operation
of the plant.
The quality objectives are applicable to AMG Plant-II is approved by Plant Head. The
approved quality objectives are below:
Escorts Limited- AMG Plant Quality Objectives are derived from the Quality
policy and are intended to provide Quality Director to Employees in the day to
day operations of the company.
We will attempt to give our Customers the best value for their money by
supplying products to match customer specifications/needs.
We will attempt full customer satisfaction by monitoring customer perceptions
and brand image of our product through market surveys and periodic direct
customer contact in the market place.
We will pursue continuing improvement in Product Quality and Productivity
by suitable indicators to measure the trends of improvement resulting from our
efforts.
We will strive to ensure full commitment and conformance to the Escorts
Limited AMG Plant-II Quality Management System in all areas of work and
take prompt corrective action on any problem that may occur.
We will work together as a team across departments and organizational levels
using Task Forces to develop a common focus and greater effectiveness in
solving problems.
Specific Corporate and Departmental Objectives for a particular year will be
derived from the above used to monitor and control company operations.
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No.
Aspect
Urban
Rural
& Concepts,
Relationship
Development
Marketing
Marketing
&
Relationship
Marketing
2
a) Market
b) Demand
High
c) Competition
Among
Low
Units
In Mostly
From
Organized Sector
Unorganized Units
Location
Concentrated
Widely Spread
Literacy
High
Low
Income
High
Low
Expenditure
Planned, Even
Seasonal, Variation
Needs
High Level
Low Level
Innovation/Adoption
Faster
Slow
Awareness
High
Low
Concept
Known
Less Known
Positioning
Easy
Difficult
Usage Method
Easily Grasped
Difficult To Grasp
Consumers
Product
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Quality Preference
4
Good
Moderate
Sensitive
Yes
Very much
level desired
Medium-high
Medium-low
Price
distribution
Wholesalers, stockists, Village
Channels
retailer,
shops,
supermarket, Haats
specialty
stores,
&
authorised showrooms
Transport Facilities
Good
Average
Product Availability
High
Limited
Promotion
Print,
Advertising
audio
media,
exhibitions
etc.
few languages
languages
Personal Selling
Sales Promotion
Publicity
Door-to-door,
Occasionally
frequently
Contests, gifts, price Gifts, price discounts
discount
Good opportunities
Less opportunities
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afford a normal tractor and would also fulfill the need of family transporter that
could take in the rural roughs but would be much more comfortable and safer than
the conventional tractor-trolley.
Titan Watches: A recent NCAER study revealed that there is a great potential for
watches in rural areas. In fact it is considered to be a high priority list. It was also
found that a rural consumer looks for the ruggedness of the watch more than the
urban consumer does. He prefers thick watches than slim watches.
The biggest problem that the Marketers are facing in the Rural Markets is Of
IMITATIONS. Imitations may result in two types of goods depending upon the
purpose, commitment, and competence of imitator. A poor imitator will end up in
producing deceptive, spurious, fake, copycat products. He dupes the gullible customer
by offering products having close resemblance with the original. In quality, it is poor
cousin to the original. On the other hand, a poor imitator may even produce an
improved version of the original product. In this scenario the job of the Marketer
becomes even more difficult in the sense that he has not to fight other competitors but
also the imitated products. The advantages that these products enjoy in the rural
markets are that the Imitators who are in the villages are making these and they are
offering More Margins & Better credit Facilities. To solve this problem the Marketer
has to educate the consumer about his product and show him the benefits of his
products over the imitated ones.
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PRODUCTS
PRODUCT RANGE
TRACTORS
Farmtrac (35 75 HP, Premium range)
Powertrac (30 55 HP, Value range)
Escort
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COMBINE HARVESTERS
TRANSMISSIONS & AXLES - Ford, Ursus & Carraro SpA of Italy for
state-of-art transmissions to offer with higher HP tractors.
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Along with achieving high market share in domestic market , Escorts with its
Farmtrac range of tractors has spread its wings to international boundaries as
well.
To consolidate our presence in the overseas markets, we have acquired 100 %
equity in this subsidiary i.e. Farmtrac Tractors Europe Sp. Z o with FTES
products successfully EU homologated
Market leader in Africa , with presence in 22 African countries.
Our DG Set business has been initiated in the overseas market with our first
order to Kenyan market.
Brand reinforcement and enriched experience through Spare Parts & Service
support offering.
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strongest agriculture sectors, but prices of some major crops have slowed on the back
of lower international prices and a stronger currency. Pretorius said SAAMA expected
tractor sales to fall by about 10 percent to 5,000 units this year.
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Market Overview
The South African agricultural equipment market is estimated at approximately
US$171 million. Tractor sales constitute the sixty percent of the total agricultural
equipment market followed by combine and baler sales. A significant number of
specialized equipment and parts are also being sourced from international markets.
Although the contribution of agriculture to the GDP is small, its importance cannot be
overstated. The agriculture sector provides employment for a million people and agroindustrial activity amounts to about 15% of GDP, with substantial growth potential.
New land owners will also create further employment and income. Although 80% of
South Africas land is used for agriculture only 15% of that is arable with the rest
being used for pastoral and other purposes.
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Tractors 58.9
Harvesting equipment9.1
Other 8.2
100%
The recent strength of the Rand combined with low domestic interest rates has
enabled South African farmers to replace aging equipment. The Agriculture
machinery market continues to be buoyant despite a slump in sales since 2004 when
sales of combine harvesters rose by 48%. Figures released by the South African
Agriculture Machinery Association (SAAMA) indicate that tractor sales rose by 50
percent since 2009. Combine and Baler sales have also rose by a 50 percent compared
with sales recorded in 2010. Farm land allocation and redistribution to previously
disadvantaged communities continues to be high on the agenda of the South African
Government (SAG), with concerted efforts being made to address and eradicate past
injustices. The government is also working to develop small-scale farming in efforts
to boost job creation. While this will ultimately place more land in the hands of
emerging farmers, the resulting agricultural operations will likely be smaller and will
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require time and training/assistance to reach their potential. However, the increase in
numbers of farmers will represent an increased number of farming equipment
purchasers as well. As always, agricultural trends are greatly affected by weather and
market realities. Rainfall continued to be sporadic throughout South Africa in 2008
and 2009 with some drought conditions reported throughout the country. South Africa
has good sunlight nationwide throughout the year, which allows for more controlled
farming, particularly green house farming. This is creating a growing market for
greenhouse sheeting and other related products.
FEASIBILITY STUDY OF ESCORTS TRACTOR IN ANGOLA
tractor industry plays an important part as agriculture sector has a major contribution
to Indias GDP. Tractors are part of agricultural machinery industry. Tractors came to
India through imports and later on were indigenously manufactured with the help of
foreign collaborations. The manufacturing process started in 1961-62. Indian tractor
industry is relatively young but now has become the largest market worldwide. There
are currently 14 players in the industry. Mahindra & Mahindra is the leading player in
the industry. Monsoon season is a key driver for sales of tractors. A series of good or
bad monsoon can affect the sales. In recent years the industry has registered a good
growth in sales, both domestic as well as exports. This is also partly because of the
initiative of the government to boost up agriculture and agricultural machinery
industry. The tractor penetration level in India is very low as compared to the world
standards. Also the penetration levels are also not uniform throughout the country.
While the northern region is now almost saturated in terms of new tractor sales, the
southern region is still under penetrated. The medium horse power category tractors,
31-40 HP, are the most popular in the country and fastest growing segment. This
report gives an insight into the tractor industry in India, discussing its inception and
growth. It analyzes the current scenario of tractors in India, industry size, domestic
and exports trends and Indias share in global market. Lastly, it discusses the players
in the industry and profiles the top players.
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OPERATIONS FRAMEWORK
Escorts is testimony to the valour, vision and values of its Founder Mr. H P Nanda. He
remains the inspiration for our courage, spirit of adventure and ability to Think Big.
These qualities are his enduring legacy and have inspired and encouraged us down the
decades and will continue doing so in all our endeavors.
In the business world investment is made in machinery, equipment and services. Quite
naturally time and money is spent ensuring that they provide what their suppliers
claim. In other words the performance is constantly appraised against the results
expected.
When it comes to one of the most expensive resources companies invest in, namely
people, the job appraising performance against results is often carried out with the
same objectivity. Each individual has a role to play and management has to ensure
that the individuals objectives translate into overall corporate objectives of the
company. Performance Management includes the performance appraisal process
which in turn helps identifying the training needs and provides a direction for career
and succession planning.
SWOT ANALYSIS
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organizations mission. These are the basis on which continued success can be made
and continued/sustained. Strengths can be either tangible or intangible. These are what
you are well-versed in or what you have expertise in, the traits and qualities your
employees possess (individually and as a team) and the distinct features that give your
organization its consistency. Strengths are the beneficial aspects of the organization or
the capabilities of an organization, which includes human competencies, process
capabilities, financial resources, products and services, customer goodwill and brand
loyalty. Examples of organizational strengths are huge financial resources, broad
product line, no debt, committed employees, etc.
Weaknesses- Weaknesses are the qualities that prevent us from accomplishing
our mission and achieving our full potential. These weaknesses deteriorate influences
on the organizational success and growth. Weaknesses are the factors which do not
meet the standards we feel they should meet. Weaknesses in an organization may be
depreciating machinery, insufficient research and development facilities, narrow
product range, poor decision-making, etc. Weaknesses are controllable. They must be
minimized and eliminated. For instance - to overcome obsolete machinery, new
machinery can be purchased. Other examples of organizational weaknesses are huge
debts, high employee turnover, complex decision making process, narrow product
range, large wastage of raw materials, etc.
Opportunities- Opportunities are presented by the environment within which
our organization operates. These arise when an organization can take benefit of
conditions in its environment to plan and execute strategies that enable it to become
more profitable. Organizations can gain competitive advantage by making use of
opportunities. Organization should be careful and recognize the opportunities and
grasp them whenever they arise. Selecting the targets that will best serve the clients
while getting desired results is a difficult task. Opportunities may arise from market,
competition,
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industry/government
and
technology.
Increasing
demand
for
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MAIN COMPETITORS
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CONCLUSION
With rewards being directly linked to achievement of objectives, goal setting
and Performance Appraisal assumes utmost importance. The Performance
Appraisal System has been professionally designed and it is monitored by
HRD. The implementation is the responsibility of each and every employee
along with their supervisor. There should be adequate training to the evaluator
that will go a long way in answering the quality of Performance Appraisal. In
conclusion, a Performance Appraisal is a very important tool used to influence
employees. A formal Performance review is important as it gives an
opportunity to get an overall view of job performance and staff development.
It encourages systematic and regular joint-stocking and planning for the future.
Good performance reviews therefore dont just summarize the past they help
determine future performance.
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WORK
CITED
WWW.SCRIBD.COM
WWW.WIKEPEDIA.COM
WWW.ESCORTSGROUP.COM
WWW.RESEARCHANDMARKETS.COM
WWW.BUSINESS-STANDARD.COM
WWW.SLIDESHARE.NET
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