INTERNSHIP REPORT ON JYOTHI SURGICAL INDUSTRIES

BY
VISHNUDATH N
1AZ18MBA67
Submitted to

VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI

In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION
Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE

Prof. M SENDHIL KUMAR SANTHOSH SASIDHARAN
Asst. Professor Proprietor/HR Manager
Acharya institute of technology Jyothi Surgical

Department of MBA
Acharya Institute of Technology, Soldevanahalli,
Hesaraghatta Main Road, Bengaluru - 560107
August 2019

CERTIFICATE
This is to certify that VISHNUDATH N bearing USN 1AZ18MBA67, is a bonafide student of Master of
Business Administration course of the Institute 2018 - 2020, affiliated to Visvesvaraya Technological
University, Belagavi. The Internship report on JYOTHI SURGICAL is prepared by him under the guidance
of Mr SANTHOSH SASIDHARAN, in partial fulfillment of the requirements for the award of the degree
of Master of Business Administration of Visvesvaraya Technological University, Belagavi, Karnataka.

________________ ________________ ________________

Signature of Internal Guide Signature of HOD Signature of Principal

VIVA VOCE EXAMINATION

Name of the Examiners Signature with Date

1. _______________ _________________

2. _______________ _________________
 ACKNOWLEDGEMENTS

I wish to express my sincere thanks to our respected Principal, Dr Prakash M R, beloved Dean-Academics,
Dr Devarajaiah R M, and deep sense of gratitude to Dr M M Bagali, HOD, Department of MBA, Acharya
Institute of Technology, Bengaluru for their kind support and encouragement in completion of the Internship
Report.

I would like to thank external guide Mr Santhosh Shashidaran, HR Manager, Jyothi Surgical Industries,
Palakkad who gave me golden opportunity to do Internship at your esteemed organization, which helped
me to learn various concepts and also thank Internal guide M Sendhil Kumar, Asst. Prof Department of
MBA, Acharya Institute of Technology, Bengaluru for constant support throughout the Internship.

Finally, I express my sincere thanks to my parents, friends and all the staff of MBA department of AIT for
their valuable suggestions in completing this Internship report.

Place: Bengaluru (Name)

Date: USN:
 DECLARATION

I, VISHNUDATH N, hereby declare that the Internship report with reference to “Jyothi Surgical Industries”
is prepared by me under the guidance of M Sendhil Kumar, faculty of MBA Department, AIT and external
assistance by Mr Santhosh Sasidharan HR manager Jyothi Surgical. I also declare that the Internship has
been carried out towards the partial fulfillment of the university regulations for the award of degree of Master
of Business Administration by Visvesvaraya Technological University, Belagavi. I have undergone an
internship for a period of four weeks.

Place: Signature of the student

Date:
 TABLE OF CONTENTS

Executive Summary
Chapter 1. Introduction about Industry (Page Number)
Chapter 2. Company Profile (Page Number)
Chapter 3. Mc Kinsey’s 7S framework and Porter's Five Force Model (Page Number)
Chapter .4. SWOT Analysis (Page Number)
Chapter .5. Analysis of financial statements (Page Number)
Chapter 6. Learning experience (Page Number)
Annexure

LIST OF TABLES

Table No. Particulars Page Nos.

LIST OF FIGURES AND CHARTS

Chart No. Particulars Page Nos.

BIBLIOGRAPHY
BOOKS:
1. Name of the Author/s, Title of the article, Title of the Book, Name of the Publisher, Edition, Year
of Publication.

ARTICLES:
1. Name of the Author/s (Year), Title of the article, Name of the Journal, Volume Number, Issue
Number, Year, Page Number (pp)

WEBLIOGRAPHY
1. Name of the Author (Year), Title of the article, retrieved on mm/dd/yy, name of the website
http://web address

Annexure
Relevant to the Organization study such as figures, graphs, photographs, financial statements, Weekly
Report etc.
 CHAPTER-1
INTRODUCTION
 INTRODUCTION
1.1 INTRODUCTION ABOUT INTERNSHIP

An internship is a period of work experience offered by an employer to give students and

graduates exposure to the working environment, often within a specific industry, which relates
to their field of study. Internships can be as short as a week or as long as 12 months. They can
be paid or voluntary; however, before you start an internship it’s important to know your
rights with regards to getting paid. Internships can be done in a range of sectors, including
sales, marketing, engineering, graphic design, management, I.T. and many, many more.
Throughout an internship you will develop a variety of soft skills, including communication
skills, personal effectiveness, presentation skills, creative problem solving and influencing
skills.

Experience is becoming a crucial factor for employers when deciding who gets their foot in
the door. It’s strongly advised that students and graduates take the opportunity to complete a
period of work experience to ensure they have a competitive advantage over their peers; and
that’s where an internship can make all the difference. On-the-job’ experience can be as
valuable as anything learned in your studies. After all, you cannot really understand what a
job is all about until you have worked in that environment. Internships are great opportunities
to speak directly to people who have experience in the role you aspire to; and their knowledge
of the job and working environment will give you a greater understanding of what it’s all
about and what you need to do to progress. Your career aspirations may change when you’re
faced with the true realities of a role. Internships can therefore be used as a ‘try before you
buy’ option, before you embark on a career and confirm if this is what you want to do in the
long term. An internship can give you a real insight into the world of work, allowing you to
build on the theory you learned at university and helping you to gain practical skills that will
help strengthen your CV and make you more employable.

Internships offer you the chance to test your skills in real-life situations, explore your career
options and gain an insight into an organization or career path.
 NEED FOR THE ORGANIZATION STUDY

Organizational functioning is an important factor for any organization to achieve the desired
goals and objectives. This requires co-ordination at all levels to smooth functioning. It is
important in order to understand the organization structure and its functions.
The main purpose of doing the organization study was to study the various departments of the
organization and understand their basic functions, their purpose, achievements, mission and vision
and objectives of the company and their progress towards that. All general information we get in
course is all book knowledge, on which westerly cannot depend. It is very important to observe the
actual working of an organization and the overall structure of an organization. The perfect meaning
can be studied only through experience

1.2 INDUSTRY PROFILE.

Jyothi Surgical Industries - one of the few renowned and well accepted manufacturers of
Surgical Equipment and Surgical instruments in South India. Jyothi Surgical Industries started
its first manufacturing unit in Palakkad, Kerala in the early 1980s. Since its inception the
company’s main objective was to keep the quality which can compete with international
standards. Jyothi Surgical industries has invented and developed a good number of Surgical
Equipment in its business tenure. All the products have been designed with the expert advice
from the leading surgeons of the respective fields. We believe that no product is complete
without putting it in to practical experience. This is the main strength of our products. All our
products like Operation tables, Sterilizers, Shadow less lamps and other surgical instruments
are well accepted in the market mainly because of the quality it maintains all through these
years. We are marketing our products all through India. Most of the leading Hospitals in south
India uses our products. Our future plans are to expand our market area to Middle East, Europe
and United States.

All these are designed using latest technology and to match the needs of surgeons. Moreover,
we try to improve our range by incorporating modern methods in production. This is possible
with the help of our diligent team members, who keep themselves updated with the prevailing
market trends.

Our customers can purchase all these medical products at market leading prices from us.
Moreover, our job does not end here, as we also provide them with after sales services. Under
this we offer them with installation and operational training of these equipment. To ease the
operation further, we also offer the customers with user manual and online support.
The Medical Devices and Equipment Industry

The Medical Devices and Equipment industry, valued at US$ 2.5 billion contributes only 6%
of India’s US$ 40 billion healthcare sector. Moreover, it is growing at a faster annual rate of
15% than 10-12% growth seen in the Healthcare sector in its entirety. A rise in the number of
hospitals and the increased requirement for healthcare facilities creates a need for
sophisticated devices and equipment, which can provide accurate treatment to individuals.
The Medical Electronics segment of this industry incorporates control, conversion, sensing,
processing, storage, display, and transfer of information on anatomy and physiology by
making use of the Electronics and Communication Technologies. The Medical Equipment
industry is quite wide with > 14,000 different products types, as per the Global Medical
Device Nomenclature (GMDN). The products range from wound closure pads to stents and
IVD machines of medical devices. Further, it can be reasonably said that Medical Electronics
is an area, where Electronics and Information Communication Technology play a decisive
role.
Moreover, significant efforts have been made in the medical technology ecosystem to
stimulate innovation in this space so that the opportunities provided in the Indian market can
be capitalized by the companies working in this domain and the Indian consumer of healthcare
services stands to benefit.
In the past, the sector has significantly brought down the incidence of disease among patients,
families, society as well as improved the country’s health system, significantly.
 CHAPTER-2

ORGANIZATION PROFILE
 Organization profile
2.1 Company Background.
Established in the year 1986, mandhakkad malampuzha, Palakkad, Kerala ,
India, we “Jyothi Surgical Industries” are involved in manufacturing, exporting,
wholesaling and trading of different Surgical and other Medical Equipment. Our
product range encompasses Infant-Basinet, Neonatal-Care-System, Foot Suction Unit
and Instrument Tray with Cover. All these are designed using latest technology and
to match the needs of surgeons. Moreover, we try to improve our range by
incorporating modern methods in production. This is possible with the help of our
diligent team members, who keep themselves updated with the prevailing market
trends. The quality and trust that has been maintained all these years have enabled us to be
the undisputed front runner in the industry.The continuous aspire for innovations to deliver
high quality products at an affordable range keeps us sustained in the market. We strive hard
to serve our customers to their fullest contentment.

With an irrefutable experience and expertise of more than 30 years in the field of equipments
manufacturing, Jyothi Surgical Industries is a stand-alone name for high class quality hospital
equipments principally operation theatre tables along with Autoclaves, shadowless lamps and
all other kind of hospital furnitures surgical instruments.

Jyothi Surgical Industries is one of the leading marketing research organizations in India. I
conduct various types of research on several types of product and Services. In private sector
as well as Govt. of research on several types’ of product and Services. In private sector as
well as govt. Sector Jyothi Surgical Industries has been offering over 25 years of specialist
research services to clients in India of business and industry. It is a marketing research
company in South India. It was established in1986. With over 60 full time staff, Jyothi Surgical
Industries provides high quality, strategic thinking, execution conceptualization, and
interpretation skills. Jyothi Surgical Industries is the only research company in India that
offers such a wide range of research based services to its clients. Jyothi Surgical Industry’s
specialized areas includes consumer market research both quantitative and qualitative,
industrial market research, business to business market research, social & rural market
research, media research, retail research, & consumer panels. It is able to provide the highest
quality of professional services to the utmost satisfaction of his clients which include the
small, medium and large scale industries, the government and public sector units,
multinational corporations and international companies that are eyeing the highly
promising Indian market.

1971 – The Founder Shri: P K Sasidharan began his career in the Mechanical Engineering
Till 1983 – Associated with the leading hospital equipment manufacturing companies in the
south India.

2.2 Nature of business.

Jyothi Surgicals Industries is exporter of Hospital Furniture, Surgical Instruments &

laparoscopy Instruments. All establishments engaged in manufacturing instruments for
measuring, testing, analyzing, and controlling, and their associated sensors and accessories;
optical instruments and lenses; surveying and drafting instruments; hydrological,
hydrographic, meteorological, and geophysical equipment; search, detection, navigation, and
guidance systems and equipment; surgical, medical, and dental instruments, equipment and
supplies; ophthalmic goods; photographic equipment and supplies; and, watches and clocks.

JYOTHI SURGICAL INDUSTRIES PVT LTD

Type PRIVATE
COMPANY

Year of Establishment 05/08/1986

Type of Business MANUFACTURER

Founder P.K.SASIDHARAN

Headquarters PALAKKAD, KERALA, INDIA

SURGICAL INSTRUMENTS
Products

WEBSITE www.jyothisurgical.com
2.3 Vision, Mission, and quality policy.

Vision

To become a partner in Medical Excellence & have presence across the globe.

To stand in first position among all the research organization which it has achieved for last 2years.
Appreciated by the general public and its client.

To set a target for all other research organization.

Targeted by talented people.

Mission

Together with our customers we are driven to make healthcare better.Our continual endeavour to develop
high quality products. Enhance value for our esteemed customers, fostering mutually beneficial partnerships
during this continuous journey.

Quality policy.

Jyothi surgical industry is well equipped with latest technology. Highly motivated work force with Man and
Machine synchronization to product quality products. Surpassing the established benchmarks and defining
ever excelling standards for the industry through strong Quality checks and Quality Assurance.

We at jyothi Industries take utmost care to deliver the Quality Products to our valued customers. We maintain
and carry out a systematic and approved process for Quality manufacturing and testing.
 PRODUCT PROFILE

ELETROMATIC EYE OPERATING TABLE

The JYOTHI Surgical JSI 203 Universal Surgical Bed is a mobile, electrical operated surgical table
designed to support Cardiology, Orthopedic, Neurology, Gynecology, Urology and ERCP Procedures. The
table is equipped with a large translucent top providing maximum radiological access & C-ARM functions.
The JYOTHI Surgical JSI 203 Universal Surgical Table is powered by Electric power system
Model Vision

Code JSI203

Description Semi Electromatic Ordinary Eye OT Table

SPECIFICATION

• Electric Functions by Foot switchS

a) (Up/Down)

• Manual Functions
a) Head Section (Up/Down)

• Standard Accessories
a) Surgeon hand rest
b) Patient Arm rest
c) Anaesthesia Screen Rod
d) Drip stand

PRICE

Rs 90000/- onwards
Model Multipurpose

Code JSI202

Description Electromatic Motorized 4 Section Multipurpose Ordinary Operating Table

SPECIFICATION

• Electric Functions by Handset

a) Height – Up/Down
b) Side Tilts (Left/Right)
c) Back : Up / Down
• Manual Functions:
a) Head & Foot ends
b) Kidney Bridge
• Standard Accessories:
a) Arm rest
b) Anaesthesia Screen Rod
c) Foam padded mattress

PRICE
Rs 1,20,000
 Model Veterinary

Code JSI205

Description Electromatic Veterinary Table

Specifications

• Electric Functions by Foot switch

a) Up/Down

• Manual Functions
a) Side Tilt
b) Split Bed Tilting

• Standard Accessories
a) Drip stand

PRICE

Rs 1,15,000/-
Model C-ARM

Code JSI 204

Description Electromatic C-Arm Compatible Urology, General Surgery &

Orthopaedic Operating Table

SPECIFICATION

• Manual Functions
• C-Arm Fluoroscopy Compatible
• Radiolucent Hylam Table Top
• Variable Attachments for Multiple Surgical Disciplines
• Orthopaedic Fracture Surgery Attachment
• Kidney Bridge not incorporated

PRICE
Rs 1,34,000/-
 STERILIZER

Product Description

By keeping track with the modern trends, we are bringing forward a wide series
of Hospital Sterilizer to our valued patrons.

Product Detail
 Material of construction : SS 304 including stand
 With 316L Chamber
 Double Door Option available
 Class B Sterilizer with Vacuum pump
 Semi-Automatic Option available
 ISI Marked by Bureau of Indian Standards*

PRICE

Rs 1,22,000
2.5 Ownership pattern.

A family business is a commercial organization in which decision-making is influenced

by multiple generations of a family, related by blood or marriage or adoption, who has both
the ability to influence the vision of the business and the willingness to use this ability to
pursue distinctive goals.

The founder of Jyothi surgical industries was Sri P.K Sasidharan in 1986.The industry was
run by him until 2012 ,due to few health issues he had to hand over the responsibilities to his
legal heirs – Santhosh sasidharan and sarish sasidharan . Until his death in 2018 the industry
was owned by him and run by his two sons and after his death the industry is now changed
into partnership manner.

PARTNERS

MANAGER

FINANCE MARKETING PRODUCTION HR

MANAGER MANAGER MANAGER MANAGER

ASSISTANT SALES SUPERVISOR

REPRESENTATIVE
W

TECHNICAL OTHER
WORKERS WORKERS

CONTRACT CONTRACT
WORKERS WORKERS
CHEIVEMENTS

 1st capacity expansion from four machines to seven machines

 Awarded ISO 9001 Certificate of Registration by the British Standards Institute
 Participated in the first Medical Exhibition at Medical Fair, Mumbai, organized by Messe
Dusseldorf
 1995 – Expansion of Production Unit and Work Force
 1999 – Opened a subsidiary unit “Jyothi Industries “at Polytechnic Road, Kodumba, Palakkad
 2009 – Launched Semi-Electromatic Operating Table
 2010 – Participated at Medicall, Chennai
 2011 – Participated at Medicall, Chennai
 2014 – New Products Planning , New Plant site / Infrastructure Planning
 2015 – Launched Multi variants of Electromatic OT Tables
 2016 – Enhancement of Production Unit at Mandhakkad, Malampuzha, Palakkad for improved
Poduction & Technology

FUTURE GROWTH AND PROSPECTS

Surgical devices are instruments that are used to perform various surgeries depending upon the
complexity of the surgery such as open, minimally invasive surgery, and others. The advancements in
the surgical procedure due to Global health initiatives are expected to boost the General Surgical
Devices Market.

The high demand for disposable supplies such as syringes, catheters, and needles coupled with the
increasing awareness about diseases transmitted through surgical devices and government regulations
ensuring safety in surgical procedures are expected to cause a surge in demand for disposable products
for the Global General Surgical Devices Market.

The future of surgery offers an amazing cooperation between humans and technology, which could
elevate the level of precision and efficiency of surgeries so high we have never seen before.

Some of the factors responsible for the growth of the market include technological advancement in
general surgical devices, rising demand for minimally invasive devices, growing incidence of injuries
and accidents, and increasing healthcare expenditures in emerging economies.
 In India has the potential to emerge as a production hub for medical devices and large-scale development.
The key factor contributing to this transformation is the low cost of product development in this region.

Fast growth of the surgical equipment market is restricted to urban areas semi-urban and rural areas remain
largely untapped and provide a huge growth opportunity.

In recent years, liberalisation and growing health awareness has accelerated growth of the domestic
industry and also led to a rise in imports of medical and surgical instruments. Increasing health awareness,
advancements in equipment design as well as a rise in infectious diseases are some of the key factors
driving the demand for surgical equipment in the country.
 CHAPTER-3
PORTERS 5 FORCE MODEL & MCKINSEY 7’S FRAME WORK
 3.1 McKINSEY 7S FRAMEWORK- INTRODUCTION

The 7S Model was created by McKinsey to bring structure to analysing organisations. It divides
organisations up into 7 components – Strategy, Structure, Systems, Skills, Staff, Shared values and
management Style. The model not only considers these aspects of the organisation individually, the
biggest insights come from analysing if they “fit” together to create an aligned organisation, or if they
create dissonance.

The 7S Model was created by McKinsey to bring structure to analysing organisations. It divides
organisations up into 7 components – Strategy, Structure, Systems, Skills, Staff, Shared values and
management Style. The model not only considers these aspects of the organisation individually, the
biggest insights come from analysing if they “fit” together to create an aligned organisation, or if they
create dissonance.
Hard Elements Soft Elements
Strategy Shared Values
Structure
Skills
Systems Staff

 Structure is the organisation’s formal structure. Who reports to whom, what is the hierarchy,
what are the decision rights, who is in charge, how does the matrix work? Frequently in your
diagnostic, you will find that the organisation structure has become too complex, eroding
accountability and clarity. Structure is the blunt, but powerful instrument for aligning an
organisation to its strategy. The general rule is that the further away units are organisationally,
the harder it will be for them to cooperate and work together. So you want to put units that
need to work closely together next to each other on the organisation chart. Designing an
organisation to fit the strategy is a major field in its own right.
 Skills is more accurately called processes or capabilities, and focusing down further on what
is most important, the processes where your strategy requires you to have a competitive
advantage. In general, the organisation should be structured around these processes to enable
them to be the best they possibly can be. Once you have decided what is core and what is
context, the next decision is to consider outsourcing from beyond the boundary of the
organisation.

 System is the infrastructure of the company. It includes the key IT systems, but also extends
to the supporting processes like risk management, budgeting, strategy development and
performance management. It is appropriate to consider information resources and big data
capture here. After these ‘hard’ three come the three ‘softer’ Ss:

 Staffs refer to the demographics of your company. What are their backgrounds, experience,
what diversity are you looking for? What are the key jobs, and what is your definition of “top
talent” where you have to hire the best in the world?

 Shared Values is the purpose of the company, and this extends to the full vision, mission and
values (VMV) of the company. What do people care about? What creates meaning for their
work, transforming it from a job into a calling?
  Style (Management Style) is deeply intertwined with Shared Values, but represents the
informal culture of the company. How do we do things around here? What are the informal
unwritten rules? What gets people promoted?

 Strategy Prefers to the way the company solve the specific business problems to achieve its
goals.

3.2 McKINSEY 7S FRAMEWORK OF JYOTHI SURGICAL INDUSTRIES.

I. STRUCTURE

The design of an organizational structure is a critical task of the top management of an organization.
It is the skeleton of the whole organization edifice. It prescribes the formal relationships among
various positions and activities. Arrangements about reporting relationships, how an organizational
member communicates with other members, and what roles he/she has to perform and what rules and
procedures exist that guide the various activities performed by members are all part of the
organizational structure.

II. STRATEGY

Jyothi surgical Industries having potential statement of the Medical technology aware about the views
growth of the marketing is booming income rise, demand for Surgical Equipment and Surgical
instruments increases and hence the performance brand image of its product.

One of the most important strategy of Jyothi surgical Industries is evaluation of raw material
utilization in proper manner and avoid the wastage through scientific and systematic manner concern
the management organization strategy and so on.

WASTE CONTROL STRATEGY

In order to survive in the market company follows waste control strategy. Jyothi surgical Industries
maintains all the materials in a systematic & in a scientific way
III. SYSTEMS

Systems means all the producers, formal and informal, that makes the organization go, day by day
year by year; capital budgeting system, training system, cost accounting procedures, budgeting.
Training system of Jyothi surgical Industries is as follows

The following factors are considered for training

 Strategic plans of the organization and meet operational areas as estimated by the top
management.
 Training requirements as projected by the departmental heads and individual employees
 Reporting functionary remarks in performance approvals reports.
 Refresher training requirements in critical areas.
 Career planning and succession planning inputs.
 Inputs required by new entrants.
 Training arising out of promotion and transfer.
 Training calendar.
 Identification of training needs.
 Selection trainees, Evaluating of the training program.
 Conducting the training program.

IV. SHARED VALUES

Jyothi surgical Industries has the commitment in accepting the goals, achievements and objectives.
It has its organizational values with quality policy, customer satisfaction and also with the employees.

It refers to the core or fundamental values that are widely shared in the organization and serve as
guiding principle that are important. These values have great meaning because they focus attention
and provide a broader sense of purpose. Values are things that you would strive for even if they were
demonstrably not profitable. Values act as an organization’s conscience, providing guidance in time
of crisis.

V. STAFFS

 Technical Staff

These are the staffs they are responsible for the work related to technical aspect. In this company they
are appointing well qualified and experienced persons as technical staff .So these staff will have good
knowledge about the working environment.
  Supervisory Staff

These are the person who is in charge with supervising the other employees in the organization .In
this company they are employing experienced staff as supervisor. So they can observe the fellow
workers and guide them as per the companies need. The experienced supervisors are one of the key
assets of this company

 Clerical staff

These staffs are responsible for the healthcare services. These people are the back bone of the company.
If they work well, it will be an asset to the company. In this company they are employed well &
qualified employees for healthcare services. These staffs are working together for achieving companies
objectives.

VI. SKILLS

Skills include the distinctive competencies that reside in the organization. These can be distinctive
competencies of people, management practices, systems and Medical technology.

Manager’s Skills: Communication skill, Negotiation skill, Inter Personnel skill.

Engineer’s Skills: Technical knowledge of production, knowledge of machinery used for Surgical
Equipment, updated knowledge of Medical technology.

Semi-skilled knowledge of the process, Hardworking, physically fit.

Employee skill is identified by way of performance appraisal. Depending on the strength and
weaknesses of the employee the training program is conducted. The company has skilled, unskilled
and semiskilled labours. Depending on the job nature job training will be given to them. The training
will be given to enhance the environmental awareness among employees through training,
development and education.
VII. STYLE

Jyothi surgical Industries has both top down and participative style of functioning .since all the crucial
decisions (strategic decisions) are taken by top management and it is passed to the middle level
management for implementation. At the same time many day to day decisions are taken in
participative manner. It is taken with proper consultation and negotiation among the middle level
managers and supervisor.

The company’s decision making is done by way of selecting the tender as government decides on
sale to be done by the companies in a particular month. So decision is based on government policies
on how much unit of power sell by companies.

This leads to the free flow of communication within the organization. The management training is
totally democratic there are no any restrictions to any employees to express his opinion. Jyothi
surgical Industries has got open door policy i.e. any level of employee can meet directly to his superior
or managing director without any hesitation.

Introduction of Porter’s Five Force Model

In 1979 Michael E. Porter of Harvard Business School identified five key forces that determined the
fundamental attractiveness of a market or a market sector in the long term.
This became known as Porter's Five Forces Analysis and it provides a model that enables
organizations to analyze their industry in a way that takes your competitors' activities into account.
This is a vital part of creating a strategy, and it is important that managers understand how it works
and how to contribute to it. One of the most crucial aspects of using this technique is your
organization's ability to define its market properly. Defining your market too narrowly, known as
'marketing myopia,' can make it impossible to work out who your competitors are in terms of market
need and opportunities. Porter's analysis technique has become popular with business and strategy
analysts and is often regarded as a credible and more practical alternative to the widely used SWOT
Analysis. This is because it looks at the forces your competitors can exert on your market and how
this could affect your organization and its long-term success.
In today's highly competitive markets any successful organization will have a reasonable level of
intelligence on its known competitors. But as recent events have shown, the greatest harm to your
organization is unlikely to come from this quarter. Your greatest threats are more likely to come from
new and emerging competitors or new technologies. For example,New Entrant - Consultancy services
supplier Tata was a new entrant from India and has been able to make serious inroads into the market.
Existing suppliers such as EDS and Accenture have struggled to retain their market share since Tata's
arrival. New Technology - the success of eBook readers such as Kindle have found the publishing
industry struggling to respond. A recent article in trade magazine Publishers Weekly stated that
eBooks accounted for around a third of all book spending. Porter's model considers five forces that
determine the 'attractiveness' of your market by analysing the competitive intensity. What he meant
by a particular market being 'attractive' was its overall industry profitability, which was assessed by
looking at potential opportunities and risks.

The five key factors the model uses to identify and evaluate potential opportunities and risks are:
• Competitive Rivalry
• Threat of New Entrants
• Threat of Substitutes
• Bargaining Power of Suppliers
• Bargaining Power of Customers
The first three are considered to be 'horizontal' competition because each force is operating in the same
way within the market. The remaining two forces are classified as 'vertical' competition because they
operate within the supply chain.

It is important to remember when using Porter's Five Forces as part of your strategic analysis that the
method was designed for use at the line-of-business level. 'Line of business' is defined as applying to a
set of one or more highly related products that service a particular customer transaction or business
need.

Porter’s Five Force Model with Reference To Company

Threats of New Entrants

New entrants in Medical Instruments & Supplies brings innovation, new ways of doing things and put
pressure on Jyothi Surgical Company through lower pricing strategy, reducing costs, and providing
new value propositions to the customers. Jyothi Surgical Company has to manage all these challenges
and build effective barriers to safeguard its competitive edge.

How Jyothi Surgical Industries can tackle the Threats of New Entrants

By innovating new products and services. New products not only brings new customers to the fold but
also give old customer a reason to buy Jyothi Surgical Company‘s products

By building economies of scale so that it can lower the fixed cost per unit.

Building capacities and spending money on research and development. New entrants are less likely to
enter a dynamic industry where the established players such as Jyothi Surgical Company keep defining
the standards regularly. It significantly reduces the window of extraordinary profits for the new firms
thus discourage new players in the industry.

Bargaining Power of Suppliers

All most all the companies in the Medical Instruments & Supplies industry buy their raw material from
numerous suppliers. Suppliers in dominant position can decrease the margins Jyothi Surgical Company
can earn in the market. Powerful suppliers in Healthcare sector use their negotiating power to extract
higher prices from the firms in Medical Instruments & Supplies field. The overall impact of higher
supplier bargaining power is that it lowers the overall profitability of Medical Instruments & Supplies.

How Jyothi Surgical Industries can tackle Bargaining Power of the Suppliers

 By building efficient supply chain with multiple suppliers.

  By experimenting with product designs using different materials so that if the prices go up of one
raw material then company can shift to another.
 Developing dedicated suppliers whose business depends upon the firm. One of the lessons Jyothi
Surgical Company can learn from Wal-Mart and Nike is how these companies developed third
party manufacturers whose business solely depends on them thus creating a scenario where these
third party manufacturers have significantly less bargaining power compare to Wal-Mart and Nike.

Bargaining Power of Buyers

Buyers are often a demanding lot. They want to buy the best offerings available by paying the minimum
price as possible. This put pressure on Jyothi Surgical Company profitability in the long run. The smaller
and more powerful the customer base is of Jyothi Surgical Company the higher the bargaining power of
the customers and higher their ability to seek increasing discounts and offers.

How Jyothi Surgical Industries can tackle the Bargaining Power of Buyers

 By building a large base of customers. This will be helpful in two ways. It will reduce the bargaining
power of the buyers plus it will provide an opportunity to the firm to streamline its sales and production
process.
 By rapidly innovating new products. Customers often seek discounts and offerings on established
products so if Jyothi Surgical Company keep on coming up with new products then it can limit the
bargaining power of buyers.
 New products will also reduce the defection of existing customers of Jyothi Surgical Company to its
competitors.
Rivalry among the Existing Competitors
If the rivalry among the existing players in an industry is intense then it will drive down prices and
decrease the overall profitability of the industry. Jyothi Surgical Industries operates in a very competitive
Medical Instruments & Supplies industry. This competition does take toll on the overall long term
profitability of the organization.

How Jyothi Surgical industries can tackle Intense Rivalry among the Existing Competitors in
Medical Instruments & Supplies industry

 By building a sustainable differentiation

 By building scale so that it can compete better
 Collaborating with competitors to increase the market size rather than just competing for small market.
Implications of Porter Five Forces on Jyothi Surgical Industries

By analyzing all the five competitive forces Jyothi Surgical Industries strategists can gain a complete
picture of what impacts the profitability of the organization in Medical Instruments & Supplies
industry They can identify game changing trends early on and can swiftly respond to exploit the
emerging opportunity. By understanding the Porter Five Forces in great detail Jyothi Surgical
Industries managers can shape those forces in their favour.
 CHAPTER-4
SWOT ANALYSIS
 INTRODUCTION

SWOT analysis is a strategic planning technique used to help a person or organization identify
strengths, weaknesses, opportunities, and threats related to business competition or project
planning. It is intended to specify the objectives of the business venture or project and identify the
internal and external factors that are favourable and unfavourable to achieving those objectives. Users
of a SWOT analysis often ask and answer questions to generate meaningful information for each
category to make the tool useful and identify their competitive advantage. SWOT has been described
as the tried and true tool of strategic analysis, but has also been criticized for its limitations.

Strengths and weakness are frequently internally related, while opportunities and threats commonly
focus on the external environment. The name is an acronym for the four parameters the technique
examines:

 Strengths: characteristics of the business or project that give it an advantage over others.
 Weaknesses: characteristics of the business that place the business or project at a disadvantage
relative to others.
 Opportunities: elements in the environment that the business or project could exploit to its
advantage.
 Threats: elements in the environment that could cause trouble for the business or project.

The degree to which the internal environment of the firm matches with the external environment is
expressed by the concept of strategic fit. Identification of SWOTs is important because they can
inform later steps in planning to achieve the objective. First, decision-makers should consider whether
the objective is attainable, given the SWOTs. If the objective is not attainable, they must select a
different objective and repeat the process.

Some authors credit SWOT to Albert Humphrey, who led a convention at the Stanford Research
Institute in the 1960s and 1970s using data from fortune 500 companies. However, Humphrey himself
did not claim the creation of SWOT, and the origins remain obscure

SWOT analysis aims to identify the key internal and external factors seen as important to achieving
an objective. SWOT analysis groups key pieces of information into two main categories:
 1. Internal factors — the strengths and weaknesses internal to the organization
2. External factors — the opportunities and threats presented by the environment external to the
organization

Analysis may view the internal factors as strengths or as weaknesses depending upon their effect on
the organization's objectives. What may represent strengths with respect to one objective may be
weaknesses for another objective. The factors may include all of the 4Ps as well
as personnel, finance, manufacturing capabilities, and so on.

The external factors may include macroeconomic matters, technological change, legislation, and
sociocultural changes, as well as changes in the marketplace or in competitive position. The results
are often presented in the form of a matrix.

SWOT analysis is just one method of categorization and has its own weaknesses. For example, it may
tend to persuade its users to compile lists rather than to think about actual important factors in
achieving objectives. It also presents the resulting lists uncritically and without clear prioritization so
that, for example, weak opportunities may appear to balance strong threats.

It is prudent not to eliminate any candidate SWOT entry too quickly. The importance of individual
SWOTs will be revealed by the value of the strategies they generate. A SWOT item that produces
valuable strategies is important. A SWOT item that generates no strategies is not important.

SWOT ANALYSIS BASED ON JYOTHI SURGICALS

Strengths of Jyothi Surgical Company – Internal Strategic Factors

As one of the leading organizations in its industry, JYOTHI Surgical Company has numerous
strengths that enable it to thrive in the market place. These strengths not only help it to protect the
market share in existing markets but also help in penetrating new markets. Based some of the
strengths of JYOTHI Surgical Company are –

 Strong Free Cash Flow

JYOTHI Surgical Industries has strong free cash flows that provide resources in the hand of the
company to expand into new projects. Successful track record of integrating complimentary firms
through mergers & acquisition. It has successfully integrated number of technology companies in
the past few years to streamline its operations and to build a reliable supply chain. Successful track
record of developing new products.

 Strong dealer community –

It has built a culture among distributor & dealers where the dealers not only promote company’s
products but also invest in training the sales team to explain to the customer how he/she can extract
the maximum benefits out of the products.

 Superb Performance in New Markets –

JYOTHI Surgical Company has built expertise at entering new markets and making success of
them. The expansion has helped the organization to build new revenue stream and diversify the
economic cycle risk in the markets it operates in. Highly successful at Go to Market strategies for
its products.

 Strong Brand Portfolio –

Over the years JYOTHI Surgical Company has invested in building a strong brand portfolio. The
SWOT analysis of JYOTHI Surgical Company just underlines this fact. This brand portfolio can be
extremely useful if the organization wants to expand into new product categories.

 Good Returns on Capital Expenditure –

JYOTHI Surgical Company is relatively successful at execution of new projects and generated good
returns on capital expenditure by building new revenue streams.

Weakness of JYOTHI Surgical Company – Internal Strategic Factors

Weakness are the areas where JYOTHI Surgical Company can improve upon. Strategy is
about making choices and weakness are the areas where a company can improve using SWOT
analysis and build on its competitive advantage and strategic positioning.

 The company has not being able to tackle the challenges present by the new entrants in the
segment and has lost small market share in the niche categories. JYOTHI Surgical Company
has to build internal feedback mechanism directly from sales team on ground to counter
these challenges.
 Days inventory is high compare to the competitors – making the company raise more capital
to invest in the channel. This can impact the long term growth of JYOTHI Surgical
Company
 Organization structure is only compatible with present business model thus limiting
expansion in adjacent product segments.
 Not highly successful at integrating firms with different work culture. As mentioned earlier
even though JYOTHI Surgical Company is successful at integrating small companies it has
its share of failure to merge firms that have different work culture.
 There are gaps in the product range sold by the company. This lack of choice can give a new
competitor a foothold in the market.
 Limited success outside core business – Even though JYOTHI Surgical Company is one of
the leading organizations in its industry it has faced challenges in moving to other product
segments with its present culture.
 High attrition rate in work force – compare to other organizations in the industry JYOTHI
Surgical Company has a higher attrition rate and have to spend a lot more compare to its
competitors on training and development of its employees.

Opportunities for JYOTHI Surgical Company – External Strategic Factors

 Stable free cash flow provides opportunities to invest in adjacent product segments. With
more cash in bank the company can invest in new technologies as well as in new products
segments. This should open a window of opportunity for JYOTHI Surgical Company in
other product categories.
 Decreasing cost of transportation because of lower shipping prices can also bring down the
cost of JYOTHI Surgical Company’s products thus providing an opportunity to the company
- either to boost its profitability or pass on the benefits to the customers to gain market share.
 The new taxation policy can significantly impact the way of doing business and can open
new opportunity for established players such as JYOTHI Surgical Company to increase its
profitability.
 New trends in the consumer behaviour can open up new market for the JYOTHI Surgical
Company. It provides a great opportunity for the organization to build new revenue streams
and diversify into new product categories too.
 Lower inflation rate – The low inflation rate bring more stability in the market, enable credit
at lower interest rate to the customers of JYOTHI Surgical Company.
 The market development will lead to dilution of competitor’s advantage and enable JYOTHI
Surgical Company to increase its competitiveness compare to the other competitors.
 New environmental policies – The new opportunities will create a level playing field for all
the players in the industry. It represent a great opportunity for JYOTHI Surgical Company to
drive home its advantage in new technology and gain market share in the new product
category.
 The new technology provides an opportunity to JYOTHI Surgical Company to practices
differentiated pricing strategy in the new market. It will enable the firm to maintain its loyal
customers with great service and lure new customers through other value oriented
propositions.
Threats JYOTHI Surgical Company Facing - External Strategic Factors
 Intense competition – Stable profitability has increased the number of players in the industry
over last two years which has put downward pressure on not only profitability but also on
overall sales.
 Increasing trend toward isolationism in the American economy can lead to similar reaction
from other government thus negatively impacting the international sales.
Growing strengths of local distributors also presents a threat in some markets as the
competition is paying higher margins to the local distributors. As the company is operating
in numerous countries it is exposed to currency fluctuations especially given the volatile
political climate in number of markets across the world.
 New environment regulations under Paris agreement 2016 could be a threat to certain
existing product categories .The demand of the highly profitable products is seasonal in
nature and any unlikely event during the peak season may impact the profitability of the
company in short to medium term.
 The company can face lawsuits in various markets given - different laws and continuous
fluctuations regarding product standards in those markets. Rising raw material can pose a
threat to the JYOTHI Surgical Company profitability. Limitations of SWOT Analysis for
JYOTHI Surgical Company Although the SWOT analysis is widely used as a strategic
planning tool, the analysis does have its share of limitations.
 Certain capabilities or factors of an organization can be both a strength and weakness at the
same time. This is one of the major limitations of SWOT analysis. For example changing
environmental regulations can be both a threat to company it can also be an opportunity in a
sense that it will enable the company to be on a level playing field or at advantage to
competitors if it able to develop the products faster than the competitors.
 SWOT does not show how to achieve a competitive advantage, so it must not be an end in
itself.
 The matrix is only a starting point for a discussion on how proposed strategies could be
implemented. It provided an evaluation window but not an implementation plan based on
strategic competitiveness of JYOTHI Surgical Company.
 CHAPTER-5

FINANCIAL STATEMENT
 5.1 ANALYSIS OF FINANCIAL STATEMENTS INTRODUCTION

Financial performance analysis is the process of identifying the financial

strength weakness of the firm by properly establishing between the times of balance sheet
and profit & loss account which given the discussion make insight in to financial statement
of a company. The aim of the study is to develop the ability of decision making. A right
decision the right time helps the organization to run efficiently.

Financial statements are prepared primarily for decision making. They play
a dominant role in setting the frame work of managerial decision. But the information
provided in the financial statement is not an end itself as no meaningful conclusion can be
drawn from this statement is immense use in making decision through analysis
interpretation of financial statements.

The Supreme Food Industries is a state public sector undertaking owned

by the government of Kerala on ISO 9001: 2008 certified company when commenced it
was the first mercury cell plant for manufacturing caustic soda in the country and it was the
first procedure of rayon grade caustic soda.
 Financial statement of Profit and loss account for the year 2014-15 to 2017-18.

PARTICULAR 2014-15 2015-16 2016-17 2017-18

1. Revenue from Operations 452177817.00 487096085.00 602909511.00 601198477.00
2. Other Income 2043580.00 852818.69 1645424.00 12199685.88

3. Total Revenue (1+2) 454221397.00 487948903.69 604554935.00 613398162.88

4. Expenses:
Cost of materials consumed 287738317.00 316777119.00 393303768.00 396438135.00
Changes in inventories of
finished goods, work-in-progress 6606552.00 (7056400.00) 1078500.00 (3387900.00)
and Stock-in-trade
Employee benefits expenses 20496720.00 24537902.00 28367245.00 34874556.00
Finance costs 6836669.70 8855260.52 7570033.89 6415677.46
Depreciation and amortization 6684537.00 7024124.00 8782735.00 12072772.00
Expenses
Other expenses 81358874.91 116826002.51 128388872.78 156256167.69

Total expenses 409721670.61 466964008.03 567491154.67 602669408.15

5. Profit before exceptional and 44499726.39 20984895.66 37063780.33 10728754.73

extraordinary items and tax(3-4)
6. Exceptional items ----- ---- ---- -----
-
7. Profit before extraordinary items 44499726.39 20984895.66 37063780.33 10728754.73
and tax (5-6)
8. Extraordinary items ----- ----- ---- ---
- --
9. Profit before tax (7-8) 44499726.39 20984895.66 37063780.33 10728754.73
10. Tax expenses
(a) Current tax 15300000.00 8100000.00 11900000.00 3100000.00
(b) Deferred tax 181000.00 101000.00 1290000.00 1266000.00
11. Profit for the period from 29018726.39 12783895.66 23873780.33 6362754.73
Continuing operations (9-10)
12. Profit from discontinuing ----- ----- ----- -----
operations
13. Tax expenses of discontinuing ----- ------ ----- -----
-
operations
14. Profit from discontinuing ------ ------ ----- -----
operations after tax (12-13)
15. Profit for the period (11+14) 29018726.39 12783895.66 23873780.33 6362754.73
16. Earning per equity share:- Basic 725.47 319.60 596.84 159.07
 Financial Statement of Jyothi Surgical Balance sheet for the year 2014-15 to 2017-18

PARTICULAR 2014-15 2015-16 2016-17 2017-18

I.EQUITY AND LIABILITY
(1) Shareholder’s funds
(a) Share capital 4000000.00 40,00,000.00 4000000.00 4000000.00
(b) Reserve and surplus 10644899.97 11928795.63 14310275.96 14946530.69
(2) Share application money
Pending allotment
(3) Non-current liabilities 32502394.51 9683141.88 9278814.00
------
(a) Long term borrowings
706100.00 716200.00 845200.00 971800.00
(b) Deferred tax liabilities(net) ---- ----- ----- -----
(c) Other long term liabilities ---- ----- ----- -----
(d) Long term provisions
(4) Current liabilities 34333905.16 45803981.65 74881056.40 91544067.94
88407917.00 131740513.00 167069243.00 198511605.00
(a) Short-term borrowings
6485158.66 15740998.63 16598279.88 12281948.00
(b) Trade payables 7696704.00 59353.00 5026357.00 -----
(c) Other current liabilities
(d) Short-term 176931973.30 236418783.79 282129512.24 331534764.7

provisions Total

II.ASSETS
(1) Non-current assets
811663.00 827360.00 1138828.00 1569956.00
(a) Fixed assets 214567.00 55736.00 1128606.00
----
(i) Tangible assets ----- ------ ----- ------
(ii) Intangible assets 211013.00 219030.00 629606.00 2910000.00
(iii) Capital work-in-progress 550000.00 550000.00 7397730.00 9253820.00
(b) Non-current investments ------ ------ ----- -----
(c) Long term loans and advance
(d) Other non-current assets
1048200.00 1048200.00 8072980.00 9060710.00
(2) Current assets
1624028.38 16242578.38 2602821.06 2437538.98
(a) Current investments 14321051.92 14381051.92 13374031.18 20787457.90
(b) Inventories 2525906.00 2575906.00 3688516.00 11145466.75
(c) Trade receivables ------- ------- ------ -----
(d) Cash & cash equivalents
(e) Short-term loans and advances 21306429.30 35899861.92 36904512.18 56880594.63
(f) Other current assets

Total
 FINANCIAL RATIO ANALYSIS CURRENT RATIO

In order to measure the short term liquidatory or solvency of a

concern comparison of current assets and current liabilities is inevitable, current ratio
indicates the ability of a concern to meet its current obligation

CURRENT RATIO=CURRENT ASSET/CURRENT LIABILITY

CURRENT CURRENT CURRENT

YEAR ASSET LIABLITY RATIO

2017 56880594.63 31534764.7 3.30

2016 36904512.18 2812512.24 2.37
2015 35899861.92 2341783.79 1.67

CURRENT RATIO
3.5 3.3

2.5 2.37

2
1.67

1.5

0.5

0
2018 2017 2016

INFERENCE

A higher current ratio is an assurance that the firm will have adequate fund to pay current
liability and other liability, in the year 2017and 2016 current liabilities is 5.91 and 5.37 which
is more compared to 2015
 NET PROFIT RATIO

It measures management efficient in operating the business successfully from owner’s point
of view it indicates return on shareholders’ investment. Higher ratio better is the operational
oh business concern

Net profit ratio=net profit/net sales*100

YEAR NET PROFIT NET SALES NET PROFIT

RATIO
2017 6362754.73 29358780 22.68
2016 2373780.33 21045216 22.52
2015 12783895.66 16188628 20.75

23
22.68
22.52
22.5

NET PROFIT RATIO

20.75
21.5
20.5

20

2017 2016 2015

Inference

The net profit ratio depicts that the company had good profits; it indicates operational
efficiency of the business leads to healthy financial needs. The net profit ratio is more on
2017
 FIXED ASSET TURNOVER RATIO

This ratio determines efficient utilization of fixed asset and profitability of business concern

Fixed asset turnover ratio =net sales/fixed asset

FIXED ASSET
YEAR NET SALES FIXED ASSETS TURNOVER
RATIO
27358780 10028778 2.72
2017
21045216 10477462 2.00
2016
16188628 10822604 1.49
2015

FIXED ASSET TURNOVER RATIO

2.72

2.5

1.49
1.5
FIXED ASSET TURNOVER RATIO

0.5

2017 2016 2015

INFERENCE

Higher the ratio is more than the efficiency of utilization of fixed asset lower ratio indicates
underutilization of fixed assets. In the year 2017 the company fixed assets turnover ratio is
2.72 which is more than the previous year 2016
 Working capital turnover ratio

Working capital turnover ratio= sales / working capital

WORKING
YEAR NET SALES WORKING CAPITAL
CAPITAL TURNOVER
RATIO
27358780 4998979 5.47
2017
21045216 4283441 4.91
2016
20188628 4825043 4.18
2015

WORKING CAPITAL TURNOVER RATIO

5.47
4.91
4.34

WORKING CAPITAL TURNOVER

RATIO

2017 2016 2015

INFERENCE

In year 2017 the working capital of the company is more compared to the 2015 and 2016, it
helps to meet daily activities of a company.
 CHAPTER-6
LEARNING EXPERIENCE
The policies followed by the company are beneficial to both customers and employees. The
company also provides satisfying services along with the aim of earning profit. The sales and
post sales services provided by the company maintains a continuous demand for the company’s
product in the market. Since all the personal and official needs of the employees are taken care
by the company, they work with full zeal for the benefit of the company. Thus there is overall
satisfaction and this improves the efficiency of the business. They do services as and when
required by customers.

The industrial exposure training provided an insight to the overall idea about the work in the
organization. It gave a hand on experience of the practical applications and they made me aware
of all the areas. It also helped in understanding the difference between the theoretical and
practical situation. There is much more than theory into functioning of an organization because
they face difficulties in the manufacturing of products.

They overcome all those problems and maintains reputation of the concern. Each and every
department plays an important role in the successful functioning of the company and they are
independent on each other in more ways. “Practice makes perfection” a quote which proves
very true and is understood very well in this kind of an industrial exposure training. This type
of training gives experience in many aspects because they made me work as an employee and
made me do work in right path and made me to understand the difficulties in manufacturing a
product according to the given design.

JYOTHI SURGICALS is striving hard to reduce the limitations by practicing batter quality of
work life. Finally we can conclude the company provides its employees a best quality of work
life which influences their performance and productivity.
 BIBLIOGRAPHY

BOOKS

 Human resource management – S Seetharaman, R Venkateshwara Prasad, Schitech

publications private ltd.
 Quality of work life by S. Jain ( www.googlebooks.com )
 Dimensions of excellence in QWL efforts – Philips, Volume 37

WEBSITES

 www.jyothisurgical.com
 www.google.com
 www.slidesshare.com
 www.wikipedia.com