As a part of our MBA curriculum, an organizational study was done in SITARAM BAJAJ, THRISSUR. One of the main objectives of the study was to get acquainted with a real time working environment and to develop first hand knowledge of the dynamics of an organization. It also helped to understand the various functional and managerial aspects of the organization as well as a practical knowledge regarding the management of the business.

The objectives of the organizational study are: PRIMARY OBJECTIVES 1. To get an idea of the organization and their organization structure. 2. To understand about the various department of the organization; the objectives of each department and its functions. SECONDARY OBJECTIVES 1. To find out the problems faced by the organization in achieving their goals.

2. To get the feel of actual working environment and to get acquainted with it as well as the managerial aspect of the company. 3. To get some idea about two-wheeler industry.

The methodology used in the study involves the collection of the primary data and secondary data. The primary data was collected directly by interviewing the departmental heads as-well-as the people working in the departments and other staff of Sitaram Bajaj, Thrissur. The secondary data were collected through the reference of brochures, books and the details available on web sites.

1. A constrain was very less time, which prevented me from visiting

all departments, as a result, the information has been obtained from secondary sources. 2. Busy schedule of the officers and employees prevented lengthy discussions. 3. Due to the lack of time and busy schedule of the employees not many details about work could be collected.

The Bajaj Group is amongst the top 10 business houses in India. Its Footprint stretches over a wide range of industries, spanning automobiles ( two- wheelers and three- wheelers), home appliances, lighting, iron and Steel, insurance, travel and finance. The group’s flagship company, Bajaj Auto is ranked as the world’s fourth largest two- and three wheeler Manufacturer and the Bajaj brand is well-known in over a dozen countries In Europe, Latin America the US and Asia. Founded in 1926, at the height of India’s movement for independence from British, the group has an illustrious history. The integrity, dedication, Resourcefulness and determination to succeed which characteristics are of the group today, are often traced back to its birth during those days of relentless devotion to a common cause. Jamnalal Bajaj, founder of the group, was close confident and disciple of Mahatma Gandhi. Infact, Gandhiji had adopted him as his son. This close relationship and his deep involvement in the independence movement did not leave Jamnalal Bajaj with much time to spend on his newly launched business venture.

His son, Kamalnayan Bajaj, then 27, took over the reins of business in 1942. He too was close to Gandhiji and it was only after independence in 1947, that he was able to give his full attention to the business. Kamalnayan Bajaj not only consolidated the group, but also diversified in to various manufacturing activities. The present Chairman and Managing Director of the group, Rahul Bajaj, took charge of the business in 1965. Under his leadership, the turnover of Bajaj Auto the flagship company has gone up from Rs.72 million to Rs.46.16 billion (USD 936 million), its product portfolio has expanded from one to and the brand has found a global market. He is one of the India’s most distinguished business leaders and internationally respected for his business acumen and entrepreneurial spirit. Bajaj Auto has a technical tie-up with Kawasaki Heavy Industries of Japan to produce a range of the latest, state-of-art two-wheelers in India. Since the tie-up in 1986, Bajaj Auto has launched KB100, KB RTZ, KB125, 4S, 4S Champion, Boxer, Caliber, Caliber115, Wind125 and India’s first real cruiser bike, the Kawasaki Bajaj Eliminator. A fortune 500 company with a turnover of USD 10 billion (Rs. 45,840 crore), Kawasaki Heavy Industries has crafted new technologies for over a hundred years. These

technologies have redefined space systems, aircrafts, jet engines, ships,

locomotive, energy plants, construction machinery, and automation systems, apart from a range of high quality, high reliability two-wheelers. Kawasaki has given the world its legendary series of 600-1200cc Ninja and 1600 Vulcan bikes. Straight from Kawasaki design boards, the Kawasaki Bajaj Eliminator redefines the pleasure of “biking” in looks as well as performance.

Quality Policy
Bajaj Auto continues to firmly believe in providing the customer value for money, for years through our products and services. This we shall maintain and improve, in our decision making, quality, safety, and services will be given as much consideration as productivity, cost and delivery. Quality shall be built in to every aspect of our work life and business operations. Quality improvements and customer satisfaction shall be the responsibility of every employee.

TPM Policy
Bajaj Auto adopt Total Productivity Maintenance as a means of creating a safe and participative work environment in which all employees target the elimination of losses in order to continuously enhance the capacity,

flexibility, reliability and capability of its processes, leading to higher employee morale and greater organizational profitability.

Group Company
Bajaj Auto is the flagship of the Bajaj group of companies. The group comprises of 27 companies and was founded in the year 1926. Bajaj Auto’s three plants at Arkudi, Waluj, and Chakan in Maharashtra, western India, produced 1,814,799 vehicles in 2004- 05.

Recruitment policy
Bajaj Auto is an equal opportunity employer. Selection is based strictly on individual merit. A large number of our recruits are fresh engineers and MBAs. Natural attrition is usually taken care of by promotions and horizontal movements within the organization to provide career

opportunities for our employees. Occasionally, specific skill-sets may warrant lateral recruitment. Entry level Recruitment Engineers: Bajaj recruits Engineering Graduates from reputed institutes from all over India. Bajaj Auto enjoys an excellent reputation with all National Institute of Technology (NITs) and is among preferred employers for on campus recruitment. The selection process

comprises a written test in technical, analytical and logical reasoning, group discussion and personal interview. Management Graduates: Bajaj recruit management graduates from reputed management institutes all over India. The selection procedure comprises a written test in analytical and logical reasoning, group discussion and personal interview. All entry-level selections are made through campus recruitment only. After recruitment new entrants undergo a thorough induction-training program before their placement in the company. Departments are allocated on the basis of the individual recruit’s aptitude and our requirements. Usually, after completing two years of service they are provided opportunities for job-rotation.

Work culture
Bajaj’s work culture supports and enhances our brand. The Bajaj brand signifies excitement. Bajaj strives to inspire confidence through excitement engineering. The culture is built on core values of learning, innovation, perfection, speed and transparency. Facilitative leadership style helps in developing leaders at all levels and establishes accountability.

Our Brand Values
Bajaj live our brand by its values of innovation, perfection, and speed. Bajaj will be distinctly ahead through excitement engineering. Innovation is how we create the future. It is a value that provokes us to reach beyond the obvious in pursuit of that which exceeds the ordinary. Perfection is how we set new standards. It is a value that exhibits our determination to excel by endeavoring to establish new benchmarks all the time. Speed is how we convey clear conviction. It is a value that keeps us sharply responsive, mirroring our commitment towards our goals and process.

Competency Building
Bajaj Auto has a very flat organization structure with three management levels. Each level represents a specific role and hence needs relevant competencies. Competency building at Bajaj Auto is a combination of development for current and future roles. We cater to these needs by using intervention like development centers, need-based training and job-rotation plans. We use different methods of imparting training like lectures, group discussions, role-plays, seminars, outbound training, assignment and on-thejob tasks.

Compensation Philosophy
Bajaj strive to be amongst the top quartile in our compensation structure. Competence and performance are the key drives of our compensation policy. A significant part of the compensation is in the form of variable pay linked to the individual’s and the organization’s performance.

It would appropriate to appraise herewith Sitaram group and its business activities, past and present. As for the track record of the family business, it is roughly a century old in business and is toppers in so many fields. The models C$FA status in the whole country, consecutively for a number of years by M/s Hindustan Lever Ltd, top distributor for M/s Philips India Ltd, for the all South India, first dealer in Kerala to retail 1000+ motorcycle in a month, one of the fastest 1000+ Maruti car seller etc, to name a new of their achievement. Sitaram group is one of the oldest business houses in Kerala, established way back in 1908 by the great Sri.T.S.Balarama iyer. Sitaram spinning and weaving mills, clicked off under his leadership. This was the beginning of a business empire which has now the dominance among the leading business groups in Kerala, especially in Thrissur. The footsteps of the great man who had a vision for the years ahead are perfectly followed by his son Mr.T.B. Subbarama iyer and his four sons ensuring that the group maintains its high standard.

The group’s entire distribution network is looked after by the eldest son, Mr. T.S. Balaraman. Mr. T.S Venkitaraman, the second son is the in charge of packing units. The clearing and forwarding units are headed by Mr. T.S. Sivaraman, while the youngest son Mr. T.S. Sitaram, in charge of Automobile segment of the group. Mr. T.B. Subbarama iyer co-ordinates the overall activities of sitaram group of companies. The corporate office of the group is located at Punkunnam, Thrissur, Kerala. Well trained and dedicated staff each responsible for individual profit centers, fully computerized accounts, separate delivery vans catering different products, fixed route schedule etc are some of the key factors to our success over the years.

Sitaram group is one of the oldest business houses in Kerala, established way back in 1908 by the great Sri. T.S. Balarama iyer, who is the father of present stalwart of the institutions. He founded the first spinning mill of South India at Thrissur nearly a century ago with more than five thousand workers and employees. Other minor establishments like Sitaram Ayurvedic Pharmacy Ltd (SAPL) petroleum agency, tile manufacturing etc., were also founded by him. Their establishment was supplying electricity to Thrissur municipality at one time. Due to political and labor reasons, the management of Sitaram Mills Ltd, was handed over to the government in the late 60’s of the last century.


Sitaram group starts business in various fields. Some major fields, where sitaram group put their sign are distribution networks, contract packaging, communication, clearing and forwarding, auto mobiles etc. A brief description about the establishments of sitaram groups is below. Distribution network We are the distributor for the Blue Chip Companies for Thrissur district. Our distribution setup was started in 1972. Unarguably we are one of the top distributors in all most all the lines we handle. Re distributors for Philips India Ltd., Johnson $ Johnson Ltd., Cadbury India Ltd., Godrej Soaps Ltd., Protech Appliances. Kwality Biscuits. Finolex Cables.

We have 10000 sq.ft of storage area in the heart of city, Dedicated Transporting arrangement, 75 numbers of trained and professional manpower etc for effective distribution of products. Contract packaging Sitaram Packers are the blending and packing contractors for M/s Hindustan Lever Ltd (beverages division) for their popular tea brands like Deepam, 3 Roses, Taaza, A 1 Dust, Top star etc. the entire process is carried out with utmost care in our own fully mechanized 22000 sq. ft factory complex. Communication Sitaram reliance (super DSA) Sitaram Reliance Intercornm is the super DSA in Thrissur and started operation on 16th November 2005. This is the first entrance of Sitaram Group in to the telecommunication sector. The major features of Sitaram Reliance are 1250 sq.ft of infrastructure, 60 numbers of trained and professional manpower etc. Being started recently there is no turnover specified. Clearing and forwarding The group’s clearing and forwarding activities, started in 1973, are carried out in the name of Sitaram Trading Company. Currently, we are the

C$F agents for M/s Hindustan Lever Ltd for their beverages and foods division. Popular brands like Dalda, Anikspray, Milkana, Kissan squash and jams, Tea and coffee are being dispatched from here. The operations includes receipts/ dispatches, billing, banking etc. Our godown is newly constructed, close to the city, and confirms to the hygiene standards applicable for storing food products. Our company is the authorized C$F agents for Electrolux Voltas Ltd (refrigerators and washing machines) and Alwyn Ltd (refrigerators, washing machines and storage cabins) also. Automobiles Sitaram also have two automobile establishments in Thrissur. Sitaram motors deals with four wheelers. They are the authorized dealers of Maruti. Another one is sitaram Auto sales and services deals with two-wheelers. They are the authorized dealers of Bajaj Auto Ltd. Sitaram has sub dealers Thrissur to reach out its customers, 7 Authorized Services Centers, 8 Rural Service Outlet, and 2 young Engineering Service. 2009 is their 12th year of operation.


• Provide job opportunities with excellent work atmosphere. • Consolidate our position as leaders in all our areas of operations. • Respond quickly to market and gain competitive advantage in all our activity.

Sitaram Auto sales and services are the dealers for Bajaj Auto Ltd’s two and three wheelers for Thrissur. Our show room is the largest in South India and the first standardized one in Kerala. Vast selection area, pneumatic tool assisted working base, smoke less work shop arrangement, dust free engine room and service centre, separate sales and spare parts counters etc, are the specialties of the showroom . And we are also selected as Hi-end Dealers for Bajaj Auto Limited. Our workshop/service centre is of ideal plus standard recently. There are only two ideal plus workshop in Kerala and with the co-operation of our dedicated staff; we are one amongst the two.

22000 sq.ft of showroom + service centre in the heart of city. Sitaram setup their showroom and service centre in heart

of Thrissur city. So they can know the pulse of market. There by they can make decision about sales promotional activities, selling expenditure. • 9 branches Sitaram Bajaj has 9 branches in Thrissur District. They are 1. Triprayar 2. Vadanappilly

3. Perinjanam 4. Vellankallur 5. Kuriachira 6. Cherpu 7. Kechery 8. Nelluvai 9. Thiruvillwamala

155 numbers of trained and professional manpower. Sitaram Bajaj has 155 professionals as employees. The

management provides 20 days on the job training for freshers. After getting training, they are efficient enough to achieve targets.

25 crore turnover In 2008-09 Sitaram Bajaj’s turnover is 25 crore. A well designed strategy, hard working of employees, etc are behind this great achievement.

Sitaram Bajaj has 7 functional departments. These separate departments are well co-ordinate by the management. This is also facilitated division of work and specialization in work. The various departments are Sales and marketing Department, Finance Department, service department; personnel department, purchase department, spares department and system department. SALES AND MARKETING DEPARTMENT Marketing department is headed by marketing manager. Under him there is an assistant manager, sales executives, trainees and showroom hostess. Around 30 staffs are working under this department. Sales of motorcycle are done through showroom. Three strategies for effective sales are • Field visit by field executives • Telephone enquiries • Walk- in customers FINANCE DEPARTMENT Finance plays a vital role in the success of every organization. In sitaram Bajaj sales receipts and expenses are closely controlled by the

finance manager and assisted by accountants and cashier. Various accounts registers and records to meet statuary requirements and management’s controls help the customers to get motor cycle loans. SERVICE DEPARTMENT The service is located in the heart of the city. More than one thousand motor cycles are serviced in every month. Service department has separate section which provides help to the customers regarding any trouble with their and a unit known as accident service is accessible to customers for claiming insurance after meeting an accident. HR DEPARTMENT The personnel department is headed by the showroom manager who works as the personnel manager. The security personnel, time office clerks and other administrative clerks etc are working under him. This department takes necessary steps to recruits stable person as per the requirements of various departments. Employee’s attendance, leave, over time etc are monitored and recorded by this department. This department looks after good liaisons with various government departments and legal/statutory departments conduct training programs and a meeting for employees to keep up the discipline morale of the organization and to ensure smooth functioning of the organization.

PURCHASE DEPARTMENT The stores department monitors the stock, receipts, and consumption of various materials and spare parts to maintain the optimum level of each item. The purchase section contracts suppliers for the procurement of the items advised by stores so as to get the item with the finance department so that payment can be made as and when required. There are two main storage sections one for motorcycle storage and the other for the spares parts storage in service station.

The term market is derived from the Latin word “Marcatus” which means merchandise, trade or a place where business is conducted. Market is a geographical area where commodities are exposed for sale. It is the sum total of the situation or environment in which the resources, activities, attitudes of the buyers and sellers, affect the sales for the product in a given area.

Definition of marketing
The definition formulated by the definition committee of American Marketing Association is “marketing is the performance of business activities that direct the flow of goods and services from purchaser to consumer or user”. The modern definition of marketing by Stanton is “marketing is total system of interacting business activities designed to plan, price, promote, and distribute want satisfying product and services to present and potential customer”

Features of marketing

By considering the definition of marketing, we can conclude that modern marketing has the following features.
1. Distribution of goods and services: Distribution of goods and

services is the traditional concept of marketing. The term distribution covers all other activities such as transportation, storage, grading, and all other efforts of the wholesalers and retailers. These activities, though do not form part of production, they are covered by term distribution.
2. Delivery of standard of living: Modern business managers consider

marketing as consumer oriented. Therefore, the major function of marketing is the satisfaction of consumers’ desires for goods and services. The structure and efficiency of the marketing system strongly influence the amount of satisfaction derived by the consumers. In other words, it vitally affects the standard of living demanded by the people.
3. Creation of utilities: Marketing activities try to create three types of

utilities – time. Place and possession utilities. The creation of such utilities adds value to a product.
4. Generation of revenue: Consumer’s satisfaction alone is not the only

object of marketing. It does not overlook the producer. From the view

point of the firm, it is marketing’s responsibility to generate revenue of a cost which will allow a reasonable profit to be realized from its operations. The marketing manager is, therefore, expected to work for a revenue, which will be in excess of the cost incurred for salesmanship and advertising.

Objectives of marketing
The first and foremost objective of all marketing activities is the satisfaction of human wants. Besides it has other objectives also. Some of the objectives are1. Profit maximization is another objective of marketing. If the firm fails to earn decent profits, its very existence itself may be handicapped. Some authorities consider profit as only an incentive but not an objective. 2. Successful distribution of products is another notable objective of marketing. Effective distribution refers to the free flow of goods and services to the consumers.


An effective system of marketing is a condition precedent for a high level of economic activity. It is not only for the firm producing the product but also to the society which uses the product. Moreover, its importance to each is growing rapidly in the recent years. Its importance can be well understood by the student if he knows what marketing does for the society and to the firm. Now we shall discuss them in detail.

Benefits to the society
The benefits of marketing to the society can be summed up as follows:
1. Delivers the standard of living: marketing help to

achieve maintain and raise standards of living of the community. Now-a- day’s production is carried on mass scale. Mass production needs mass marketing. Both production and sales on mass scale bring down the cost of production and increase the amount of profit. Besides, the consumers are also benefited by getting a variety of goods at a lower price. Lower price results in larger consumption by more consumers and thereby their standard of living is increased. On the other hand, if production is restricted, prices will become high and the number of consumers will also become less. At the same time, the producer cannot also

increase his total income because of the ultimate reduction in the volume of sales. However, marketing alone is not the only determinant of the standard of living. There are other factors like production, purchasing power, etc., which do affect the standard of living.
2. Connects the producers and consumers: The

very object of production is consumption. The producer produces goods and services for the purpose of selling. Therefore, they should get in touch with the consumers who require such goods and services. Similarly the consumers should also know the sources of supply. In the absence of marketing process, it is extremely difficult for both to have contact with themselves. It is the marketing process which connects both easily.
3. Increases the national income: The national income

of a country is really composed of the purchasing power i.e., what money can buy in terms of goods and services. Effective marketing reduces the distribution costs and there by lowers the prices. Lower prices to consumers mean more purchasing power, which in turn means an increase in the national income.

4. Provides employment opportunities: Marketing

furnishes employment both in production work and in marketing activities. Effective marketing results in large scale production which in turn creates more employment in the production process. In addition to furnishing production jobs, marketing activities require a large number of employees. Thousands of men are to be employed to manage the retail and whole sale establishments. In our country, the business establishment rank next to agriculture in providing employment opportunities.
5. Helps to maintain economic stability: An

observed by a classical economist, “nothing happens in our economy until somebody sells something”. Therefore marketing is the main spring of all economic activities. Besides, the economic activities must be stable and free from fluctuations, especially in price. Effective marketing system enables to maintain the price level stable by equating demand and supply.

Benefits to the firm As observed by Stanton, “marketing is the beating heart of many operations of the firms”. In other words, it is marketing which

makes all the activities of the firm possible. It helps the business firm in a variety of ways. Some of the benefits of marketing are given below. 1. If the marketing function is not effective, the whole organization will be put in to trouble. 2. It creates revenue to the firm. Without this revenue, no production process is possible. Besides, the firm it self cannot grow.
3. The marketing organization provides a channel of communication

between the firm and the consumers. It is continuously furnishing information about the consumer’s demands, tastes and preferences to the top managements. By this process, it helps the firm to adjust its production schedule to suit the tastes of the consumers. 4. It helps the producers to increase the volume of sales. Large scale implied more production and more profit. More production also helps to lower the production and marketing costs.


Sales manger is the head of this department. Under him there is an assistant manager, sales executives, trainees and a showroom hostess. Around 30 staffs are working under this department.

SELLING PROCESS The customer will approach the section and enquire about the product. Now a days the customers are predetermining about the product. When a customer approaches section, the hostess will receive them and the sales executives will explain the product and If needed they explain about the financial schemes. After that they will demonstrate the vehicle to the customer. If the customer is willing to purchase the vehicle, documentation is done and if necessary, the delivery is done that day itself. If the particular stock is not available, the customer has to book it and have to wait for 5 days. If the customer needs financial assistants, the loan facility is provided by the company. Bank in it are, mainly ICICI and Centurion Bank. Bajaj Auto Finance also provides loan to the customers.

MARKETING MIX The marketing mix is defined by Stanton is “marketing mix refers to the term used to describe the combination of four inputs which constitute the core of a company’s marketing system. The product, the price structure, the promotional

activities and the distribution system”. The marketing mix i.e., 4 P’s are 1. Product 2. Price 3. Promotion 4. Place

MARKETING MIX IN SITARAM 1. product Sitaram Bajaj, one of the leading two-wheeler dealers is the authorized dealer of Bajaj Auto Ltd. They mainly trade the two wheelers in Thrissur. Apart from two-wheelers, they sell spare parts of two-wheelers. 2. Price The prices of the bikes are fixed by the manufacturer i.e. Bajaj Auto Ltd. The prices fixed by them are very fair and affordable to the Customers.

3. Promotion

Sitaram has promotional activities for push their demand. They put the ads in newspapers, banners, notices etc. They also provide special offers and discounts to attract customers. 4. Place People want products at very near to them. All people cannot reach at Thrissur for buying bikes. So Sitaram Bajaj starts 9 branches at various places. They are Triprayar, Vadanappilly, Perinjanam, Vellenkallur, Kuriachira, Cherpu, Kechery, Nelluvai, and Thiruvillwamala. Sitaram Bajaj also has whole sale trading. They sell bikes to Authorized Service Centers (ASC). The 9 ASC’s of Sitaram Bajaj are Kodungallur, Wadakanchery, Iringalakuda, 2 at Chalakudy, Kodakara, Chavakadu and Kunnamkulam. Sitaram Bajaj also has Rural Service Outlets (RSO). RSO’s have no authorization.


The sales promotional activities adopted by Sitaram Bajaj are • Sales offers • Finance offers •


• After sales services

Sales offers As a sales promotion technique this organization gives sales offers to consumers. Sales offers means price discounts, price off etc. These offers are provide by Sitaram Bajaj and Bajaj Auto Ltd also. Finance offers Finance offers are also used to increase the demand for the products. Finance offers refer to less rate of interest for loan provided by Bajaj Auto Finance. Advertisement Sitaram Bajaj put advertisements in various Medias. News papers, notices, banners are some of them. Bajaj Auto Ltd provides advertisement on TV and other Medias. This also helps to increase the demand of bikes. The timely and efficient advertisement ensures the responses of consumers.

After sales service

They provide after sales services to customers. After sales services schemes like home delivery, warrantee schemes etc are given by this business organization. They ensure warrantee for 2 years for their vehicle DISTRIBUTION CHANNELS They have a well planned distribution channel. Distribution channel for services are usually short, and are either direct or use of an agent. Since stocks are not held, the role of wholesalers, retailers or industrial distributor does not apply. In case of Sitaram Bajaj, they are the service providers. They have retailers for convenient for consumers. Ultimately it reaches to consumers. This distribution channel is very much helpful and convenient for customers. The consumers get the same two wheelers from very near to their place.

WAREHOUSE OF SITARAM BAJAJ Warehouse of Sitaram Bajaj is attached to their showroom, which is situated in the heart of Thrissur city. The 1000 sq.ft warehouse can afford 250 bikes at a time. They stock enough two wheelers to meet the consumers demand with out any delay.


The main competitors of Sitaram Bajaj are • Kalyan mobikes, Thrissur. • Johns Honda, Thrissur. • TVS • Yamaha

MARKET SHARE ANALYSIS Sitaram Bajaj deals with two- wheelers of the great Bajaj Auto Ltd. They can capture 40% of two- wheeler market. Other 60% are shared by Hero Honda, TVS etc. compare to others they has a very good influence in market. This is mainly because of the quality of two-wheelers and customer caring of Sitaram Bajaj.

COMPLAINT HANDLING In this kind of service, the consumers are suffered from two kinds of complaints. They are service problems and sales problems. In Sitaram Bajaj, the consumers are get solution for their problems very quickly. The problems related to service solved by service executives. If they

can’t solve it, it will pass to service manager. The problems related to sales formalities handled by sales executives. If they are unable to solve the consumer’s problem, it will pass to sales manager.


FINANCE In our present day economy, finance is defined as the provision of money at the time when it is required. Every enterprise, whether big, medium of small, needs finance to carry on its operations and to achieve its targets. In fact, finance is so indispensable today that it is rightly said to be the lifeblood of an enterprise. Without adequate finance, no enterprise can possibly accomplish its objectives.


Financial management is applicable to every type of organization, part of the management irrespective of its size, kind or nature. It is as useful to a small concern as to a big unit. Financial management refers to that activity which is concerned with the planning and controlling of firm’s financial resources.

FUNCTIONS OF A FINANCIAL MANAGER The changed business environment in the recent past has widened the role of financial manager. The increasing pace of industrialization, rise of larger scale units, innovations in information processing techniques, intense competition etc. have increased the need for financial planning and control. The size and extent of business activities are dependent upon the availability of finances. Financial reporting may be used as a technique for control. In the present business context, a financial manager is expected to perform the following functions.

Financial Forecasting and Planning A financial manager has to estimate the financial needs of a business. How much money will be required for acquiring various assets? The amount will be needed for purchasing fixed assets and meeting working capital needs. He has to plan the funds needed in the future. How these funds will be acquired and applied is an important function of a finance manager.

Acquisition of Funds After making financial planning, the next step will be to acquire funds. There are a number of sources available for supplying funds. These sources may be shares, debentures, financial institutions, commercial banks, etc. The selection of an appropriate source is a delicate task. The choice of a wrong source for funds may create difficulties at a later stage. The pros and cons of various sources should be analyzed before making a final decision.

Investment of Funds The funds should be used in the best possible way. The cost of acquiring them and the returns should be compared. The channels which generate higher returns should be preferred. The technique of capital budgeting may be helpful in selecting a project. The objective of maximizing profits will be

achieved only when funds are efficiently used and they do not remain idle at any time. A financial manager has to keep in mind the principles of safety, liquidity and soundness while investing funds.

Helping in Valuation Decision A number of mergers and consolidations take place in the present competitive industrial world. A finance manager is supposed to assist management in making valuation etc. for this purpose; he should understand various methods of valuing shares and other assets so that correct values are arrived at. Maintain Proper Liquidity Every concern is required to maintain some liquidity for meeting day-today needs. Cash is the best source of maintaining liquidity. It is required to purchase raw material, pay workers, meet other expenses, etc. A finance manager is required to determine the need for liquid assets and then arrange liquid assets in such a way that there is no scarcity of funds.


The primary aim of financial management is to arrange as much funds for the business as are required from time to time. The financial management has the following aims: • Acquiring sufficient funds The main aim of financial management is to assess the financial needs of an enterprise and then finding out suitable sources for raising them. The sources should be commensurate with the needs of the business. If funds are needed for longer periods then long-term sources like share capital, debentures, term loans may be explored. A concern with longer gestation period should relay more on owner’s funds instead of interest-bearing securities because profits may be there for some years.

Proper Utilization of Funds Though raising of funds is important but their effective utilization is

more important. The funds should be used in such a way that maximum benefit is derived from them. The returns from their use should be more than their cost. It should be ensured that funds do not remain idle at any point of time. The funds committed to various operations should be effectively utilized. Those projects should be preferred which are beneficial to the business.

• Increasing Profitability The planning and control of financial management aims at increasing profitability of the concern. It is true that money generates money. To increase profitability, sufficient funds will have to be invested. Finance function should be so planned that the concern neither suffers from inadequacy of funds nor wastes more funds than required. A proper control should also be exercised so that scarce resources are not frittered away on uneconomical operations. The cost of acquiring funds is more, and then profitability will go down. Finance function also requires matching of cost and returns from funds.

• Maximizing Firm’s Value Financial management also aims at maximizing the value of the firm. It is generally said that a concern’s value is linked with its profitability. Even though profitability influences a firm’s value but it is not all. Besides profits, the type of sources used for raising funds, the cost of fund, the condition of money market, and the demand for products is some other considerations which also influence a firm’s value.


Departmental structure

Capital structure Sitaram Bajaj is under the management of Sitaram Group. This is considered as a family business enterprise. So there is no chance of public borrowing, there by no need of formalities for issuing shares or debentures, making dividend decision etc. Their capital structure consist 30% own fund and 70% loan fund i.e. borrowed fund. Land and building of Sitaram Bajaj is owned by Sitaram Group. Source of fund

The sources of fund of Sitaram Bajaj are own fund, commercial banks, financial institutions, loans from friends and relatives etc. The major commercial banks are AXIS and HDFC.

Accounts of Sitaram Bajaj Sitaram Bajaj giving much importance to keeping accounts properly. They appoint professionals for proper maintenance of accounts and records. All payments and receipts are made through cheques, so each point of transaction should be kept in to records. Daily datas regarding sales should be sent to regional offices. They use accounting software such as TALLY for accounting work. Working Capital Arrangement Funds needed for short term purpose for the purchase of raw materials, payment of wages and other day-to-day expenses, etc. these funds are known as working capital. In the words of shubin, “working capital is the amount of funds necessary to cover the cost of operating the enterprise”. In case of Sitaram Bajaj, they are not at all a manufacturing concern there by they don’t need a lot of money as working capital. The fund for meet the daily needs is available from sales amount. And balance amount is available from their banks.


Sitaram Bajaj is mainly concentrate on providing better services to consumers. They are the authorized dealers of Bajaj Auto Ltd. Now-a-days two wheeler industries become more competitive. So not only the product quality, the services provided by the dealers is also important. This concern is well aware of it. So it tries to give maximum services to consumers.

Sitaram Bajaj offers a lot of servicing facilities to consumers. Consumer didn’t face any difficulty during the transaction. All the formalities of transaction and registration are done by the staffs of the concern. When the consumers entering in to the show-room, the hostesses are receiving them. The executives of sales department explain the features of various bikes. They also provide the demonstration. If the consumer is satisfied, he will take the buying decision. If the purchase is bound by cash, all other formalities are done by the sales department. Or if it is not a cash purchase the finance is arranged by the finance provides such as HDFC, Bajaj Auto Finance etc. The registration formalities of two-wheelers are looking after by the dealers. It is in two ways. In case of cash purchase the registration formalities are looking after by the sales department. In other case, the formalities of the registration are looking after by the finance providers. In both cases the consumers are free from tensions; the only responsibility of them is providing the required documents and proofs. After completing the registration formalities the vehicle is delivered to customer.

After sales services

The success mantra of Sitaram Bajaj is searching for new customers at the same time retaining the existing customers through proper service and care. Sitaram is well equipped and technologically driven. Work specialization is one of the important concepts followed in Sitaram for effective functioning of service department. The service department has been divisionalised in to accident vehicle section, entry level bikes, executive level bikes and premium level bikes. Each separate section is headed by a supervisor. One of the main important advantages for the service department is that using of pneumatic tools and specialization in work. Due to this they can provide good service to the consumers as well as vehicle. Paid services are taking place in the showroom and the free services are provided by the Bajaj Authorized Service Station (B A S S). The workshop/service centre has been upgraded to “ideal plus” standard recently. There are only two ideal plus workshops in Kerala ad with the co-operation of the dedicated staff Sitaram is one amongst two.

About the working of the department, each and every vehicle entered in to the department and delivered is recorded at the gate. A job card is opened for each work and a store indent is maintained. This store indents facilities the details regarding the vehicle. Bajaj is providing two hours service for the

normal complaints of the vehicle giving free services. Another one of the important service rendered by the department is collection of customer feed back through direct enquiry and sales executive generated enquiry.

In this we have seen Sitaram Bajaj is focused on sales and services. So they can retain the customers at every point by giving appropriate services to the customers.


Human resource is of paramount importance for the success of any organization. It is a source of strength and aid. Human resources are the wealth of an organization which can help it in achieving its goals. Human resource management is concerned with the human beings in an organization.

According to Flippo, “ human resource management is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and reproduction of human resources to the end that individual, organizational, and societal objectives are accomplished”. The definition revels that human resource management is that aspect of management which deals with planning, organizing, directing and controlling the personnel function of an enterprise. The purpose of these functions is to assist in the achievement of basic organizational individual and societal goals.


HRM has a crucial role to play in the organization. So following functions can be associated with HRM. • Identifying and developing persons The success of every organization depends upon the quality of persons it employs. HRM helps in spotting right persons for right jobs.

Persons are given right type of training so that they are able to develop their potentialities to the maximum. • Retaining suitable persons HRM not only helps in procuring suitable persons but also useful in retaining them. There may be redundant workforce because of various developments, efforts should be made to offer golden handshake to them. • Creating work culture Human resource policy is backed by human values, understanding and concern for the welfare of people. Persons in the organization will reciprocate by improving their efficiency, motivation, self-co-ordination and greater co-operation. The work culture in the organization improves, people feel satisfied and enjoy their work. • Educating managerial personnel HRM approach will succeed only when managerial personnel change their attitude towards workforce. There is a need to educate executives, managers and top management regarding various aspects of human resources approach adopted in the organization. • Conducting research

HRM will be successful only if we know the aspirations and expectations of various persons working in the organization. The framing of human resource policies, strategies and approaches depend upon the information controlled through research. • Developing a communication system There is a need to develop downward, upward and lateral communication in the organization. HRM develops a system of communication where policies of management are properly communicated to the lowest level of hierarchy and feedback from lower levels is conveyed to the top management. Communication system helps in understanding the view points of each other and taking up remedial steps, if needed.


In case of Sitaram Bajaj all HR activities such as selection, placement, training etc are handled by the concerned department it self. The HR department is headed by the HR manager. Around 124 employees are working in Sitaram Bajaj.

Selection of employees The applications are invited from candidates through news papers. After receiving the written application form, the management scrutinizes each application form. Eligible candidates get interview call. Interview The management conducts an interview for getting the right persons. In interview, the board measures the ability, talents, qualification, personality, aptitude etc. Checking references Before the final selection, the interview board checks the reference letter from previous institutions, where the candidates worked. They normally make an investigation on the references supplied by the candidate and undertakes search in to his past employment, education, personal reputation etc. Placement The candidates, who were success all these procedures get the placement as employee of Sitaram Bajaj. Training

The fresher employees will get 20 days training provided by the concerned department. This training is purely an on the job training. Sitaram Bajaj provides refreshment training for existing employees. This refreshment training is conducted once in quarterly. Motivation Sitaram Bajaj use financial motivators and non financial motivators for motivating employees. Financial motivators like bonus and incentives are provided by the management. Employees work is recognized by their superiors. The employees get the chance of participating in decision making process. Employees are given certain objectives and every body tries to achieve them ahead of others. These techniques are motivating employees.

Performance appraisal They have a well structured system of performance appraisal. Each department keeps a daily graph for each employee. The head of the department record the performance of employee on each day. The appraisal of employee is conducted in every month. The decisions regarding incentives are made after the appraisal of performance.

Wage and salary administration Sitaram Bajaj provides fixed salary for employees. Apart from salary they give bonus and incentives. Incentives are purely on the basis of performance. Incentives are given 15th of every month.

Salary structure Sales

Promotion The staffs of the Sitaram Bajaj get promotion to just above their post. They adopt merit based promotion. The promotion is purely based on the performance of the employees.

The all activities in Sitaram Bajaj are controlled and coordinated by system department. This department is headed by a system administrator. Their showroom is fully automated. This department is connected with internet.


Setting up a system department involves a lot of hard work and pain. The benefits of possessing a system department, more than make up for the efforts. System facilitates the sharing of files, programs and resources. System departments provide many advantages. • Sharing files System department facilitates information sharing with other computers connected to the network. Information can be shared in different ways. The most direct method is to transfer files directly from one computer to the other. The second method is to send the file to an intermediate place of rest from where the other people can pickup the file later.

• Sharing resources This implies that certain computer resources such as printer, disk drive. CD-ROM drives, modems etc can be shared through network. • Sharing programs Some times, it is better to save programs that every one uses on a shared disk, rather than keep separate copies of the programs on each computer. • Backups

As all data is stored on the server, backing up critical data becomes a simple process. • Communication The biggest benefit, however, comes in the form of better communication facilities such as electronic mail and groupware applications.

TYPE OF NETWORK The type of network used by Sitaram Bajaj is LAN. LAN is a system of networked computers and other hardware resources spread in small area such as a building. LANs allow users to share important computing resources such as printers, application programs, CD-ROM drives and the information users require to do their work. LAN and LANs network is not only powerful but also user friendly.

OFFICE AUTOMATION FACILITY Office automation is defined as using computer and communication technology to help managers and executives for a better use and management of information. Office automation technology includes all types

of computers, telephones, electronic mail, other office machines and equipment. In case of Sitaram Bajaj their office is fully automated. They use document generating devices like type writers; communicational devices like postal services, telephone. Electronic mail, cellular phone; and accounting devices like calculators and computers.

INTERNET CONNECTIVITY In Sitaram Bajaj, they use broad brand as internet connection. Large volume of data can be transmitted through broad brand. It has high transmission rate also.

OPERATING SYSTEM In Sitaram Bajaj, they use WINDOWS 98 as operating system of their computers. SOFTWARE Sitaram develop their own software to meet their business needs. The software is SYSCON and it is licensed. NUMBER OF WORK STATIONS

In Sitaram Bajaj, there are 40 work stations. These 40 work station are controlled by a server. TYPE OF SERVER In Sitaram Bajaj, they use WINDOWS XX as server. Sitaram Bajaj running with only one building so their work station architecture is two-tier architecture. It means only one server and some work stations. SECURITY SYSTEMS The all computers in Sitaram Bajaj are protected through password. All files stored in computers are protected from virus attacking. The advanced and updated anti-viruses such as NORTON are used for this purpose. SYSTEM BACKUP FACILITIES The documents and data’s about the transactions are kept as backups.


Sitaram Bajaj is a number one dealer of Bajaj in Kerala. Apart from twowheelers, they have the dealership of spare parts of Bajaj. There is around 10606 spare parts available in Sitaram Bajaj. They are considered as VOR hub (vehicle off road hub). Around 30 employees are working under this

spare department. The spares division is one of the outstanding performers in Sitaram Bajaj.



According to their need, daily send purchase order to Bajaj.

• Proper inventory maintenance.


A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the concern usually can be classified as strengths (S) or weakness (W) and those external factors to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as SWOT Analysis.

 One of the main strength of Sitaram Bajaj is the location of their

showroom. The showroom situated in the heart of the Thrissur city there by management can know about the pulse of the market. This showroom is well noticed by consumers.
 The dedicated and efficient employees are another strength or

company. The staff of Sitaram Bajaj is highly sincere to their work so the consumers are satisfied with their service.
 Sitaram Bajaj provides utmost service to the consumers. They

look after all the legal formalities of the transaction.  All the activities of Sitaram Bajaj are well co-ordinate by the management. This will increase the quality of service.

WEAKENESS:  Availability of adequate fund is on of the weakness of Sitaram Bajaj.
 Labour turnover due to monotony of job, lack of fair

remuneration. OPPERTUNITIES

 Bajaj is one of the well known brands in two-wheeler industry. So consumers have the loyalty to that brand. This will help them to sustain in market.  The sales promotional activities such as advertisement, offers etc will increase the demand. THREATS
 Decreasing price trend of four-wheelers are one of the major threats

faced by Sitaram Bajaj. When the price of four wheelers is affordable to common people, then they will prefer four wheelers. This will decrease the demand for two-wheelers.  The high competition between the various two-wheelers available in market such as TVS, Hero Honda, Yamaha.

 In Sitaram Bajaj there is only a low provision for advertisement.  There is no grievance handling. So employees can’t get a chance to share their problems.  There is trade union impact.

 The management takes care about the selection of employees. They have a procedure for selecting employees.  Labor turnover rate in Sitaram Bajaj is high.  Fair salary is not available to employees

 Provide adequate amount for sales promotional activities.

 Information provide in the advertisement must be more accurate and reliable which increase customers trust towards the company in news paper.

 The management should take necessary steps for decreasing the labor turnover.  The fresher’s got only 20 days on the job training by the staffs. This will improve.  The HR department should solve the employees grievance  the authorities should improve the ware house facility


Sitaram Bajaj is the only dealer for Bajaj in Thrissur. They follow Triple “S” basis, which indicates sale. Services $ spares. I have completed our organization study with great pleasure. This study clearly reveals the fact that Sitaram Bajaj is a prominent leader of two-wheeler, in Thrissur. There is

a clear indication of increasing market share and good will of the company. The management of the company entirely deserves a credit of their victory. The grater achievement will come through only “effectiveness in marketing” by adopting various marketing techniques which include effective sales promotion, effective performance evaluation between target and actual sale. Target achievement award/gift and finally through effective service after sale.


1) Dr. V. Radha, P.T. Oommen and N.S. Nair, marketing

management, Prasanna Publishers, Chennai, 2005 edition.

2) Shashi K.Gupta and Rosy Joshy, Human Resource

Management, Kalyani Publishers, Ludhiana, 2003 edition.
3) Abdul Assis Koroth, Information Technology For

Management, Calicut University Central, 2004 edition.
4) Shashi K. Gupta, R.K. Sharma and Neeti Gupta, Financial

Management, Kalyani Publishers, Ludhiana, 2007 edition 5) Www. 6) Company profile, annul reports

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