Professional Documents
Culture Documents
Submitted by
Ms. (NAME)
(Roll no)
Submitted to
(UNIVERSITY)
UNIVERSITY
university , PG Centre
DECLARATION
I, Ms. hereby declare that the Internship Report entitled "A STUDY ON
IN PLANT TRAINING LARSEN & TOUBRO Ltd " A Mysuru prepared by me under the
internal guidance of Dr
I also declare that internship work is towards the partial fulfilment of the University
regulations for the award of degree in Master of Business Administration by
University, Mysuru.
I have undergone a summer project for a period of four weeks. I further declare that this project
is based on the original study undertaken by me and has not been submitted for the award of any
degree/diploma from any other university/Institution.
Place:
Date:
(MOULYA S.R)
ACKNOWLEDGEMENT
Place:
Date:
(MOULYA S.R)
CONTENTS
2 Organisation Profile
i) Background
ii) Nature of the Business
iii) Vision & Mission, quality
policy
iv) work flow Model
v) Product/Service Profile
vi) Ownership Pattern
vii) Achievements/Awards if any
viii)Future Growth & prospects
3 Mc kensy's 7S Model
4 SWOT Analysis
5 Analysis of Financial Statements
6 Learning Experiences
7 Bibliography and Reference
CHAPTER 1
Electronics &electrical industry comprises of various products like display devices, motors,
batteries, cable, electronic components, power distribution,equipment, lighting fixtures,
electronic enclosures, etc the electronics &electrical sector is witnessing various new inventions
each and every day. The main reasons behind these inventions are the growing demand at the
consumers end electrical sector is one of the most booming sectors and thus is attracting large
number of individuals and companies to venture into the industry.
Indian electrical industry has grown and also due to overall economic growth.the industry has
seen a growth of 15% and it is speculated the same level of growth for the next years.the
domestic market in India is itself large and one must firstly satisfy this market with products that
meet international quality standard.the electrical/electronics industry in india is growing to its
full potencial in the coming years.
INDUSTRIAL STRUCTURE:
An electric meter or energy meter is a device that measures the amount of electrical energy
consumed by a residence, business, or an electrically-powered device.
Electric meters are typically calibrated in billing units, the most common one being the kilowatt
hour periodic readings of electric establishes billing cycle and energy used during cycle
In setting when energy savings during certain periods are desired,meters may measure
demand,the maximum use of power in some area,the electric rates are higher during certain
times day,to encourage reduction in use. Also,in some areas meters have relays to turn off
nonessential equipment.
Tariff meters
Energy meters
Single phase meters: these meters are used for utilization of electric energy consumption in
thehouses.
Market share of single phase meters is 14% to 16% in domestic market and a turnover of 900
crores.
Three phase meters: these meters are used for the utilization of electric energy consumption
inthe industries.
Market share of three phase meters is 28% to30% in the domestic market and a turnover of 300
crores.
These are also called as relay.
The worldwide electrical and electronics industry is experiencing phenomenal and remarkable
changes these days.the worldwide electronics industry is distinguished by the past 30 years.
In asia pacific region ,japan,korea,Taiwan,india and Singapore are the principal manufacturing
hubs for electrical and electronics products. china is becoming the manufacturing region of
electronic product on the globe.the key electronics manufacturing destination are Guangdong
province,south Jiangsu,shangai and eastern part of Zhejiang.
In united states of America, new York, Atlanta ,Colorado ,Detroit,florida,new England ,san
diego,san Francisco,and texes are the major industrial hubs of electrics industry.
The key factors governing the growth of electrical and electronics industry are as follows;
Rising and continuous investment in research and development has led to increased
productivity and higher –value added electrical and electronics products.
Rising income and living standards have resulted in the increase in demand of electronics
especially consumer electronics in the world.
This industry is highly fragmented which comprises of many small and medium size
enterprise
Asia pacific region is emerging as the most spinning place for the consumer electronics
industry, as the markets remain still unbroached.
The worldwide electrical and electronics industry is experiencing phenomenal and remarkable
changes these days. The worldwide electronics industry is distinguished by fast
technological,advances and has grown rapidly than most other industries over the past 30 years.
Voluminous production is slowly and gradually moving towards low,cost destinations, which in
turn are the markets which offer the most long term potential. In today's age of competition,
electronic and electrical products manufacturing companies are under constant pressure to
develop new and innovative products in shorter time cycles, at reduced cost.
The global electronics industry is driven by demand for the products, which are durable, lighter,
cheaper, and better than the ones, they replace. To meet up the growing market demands,
industry is slowly and gradually shifting its base to Asia Pacific countries, which is now the
prominent source of electronic components and is soon going to turn out to be the primary
destination for consumer electronics. There is an estimation that within 20 years, two third of th
electronics industry will be four times as big as today and half of it will move into Asia.
Foreign collaborations and mergers are on a rise. A new wave of industrialization is throwing up
several business opportunities for electrical and electronics market to further its market. There is
a vast growth in the sales of computers, software and networking products. Younger generation
is increasing becoming tech savvy and spending huge amount of money on digital products such
as MP3 players, DVD players, CD players, mobile phones, speakers, headphones.
The future seems prosperous for this electrical & electronics industry in terms of the expected
surge in global demand and upsurge in investments. Many trends such as over-capacity in
developed markets, globalization, technology advances, regulation and environmental
consideration, market fragmentation and product proliferation will lead to the accelerated growth
of this sector.
COMPETITORS INFORMATION
Electrical and electronic has stiff competition from many leading brands. If faces competition
from the brands like
HPL Secure meters, Landis +GYR give competition in manufacturing electric meters and have a
share of 40 to 45% market value.
Secure Meters- Our name is our heritage, Secure-Is a promise to everyone who
touchesus, and to everyone we touch. Our sense of responsibility should give confidence
to those around us that they are truly secure by doing business with us Secure Meters Pvt
Ltd operates as an energy metering company. It offers metering system, such as multi-
feeder, digital single phase prepayment, three phase multifunctional prepayment,
maximum demand controller. And meter grid home, industrial and commercial, and
domestic application secure meter commanded 18% of the market share in the Indian
market.
Landis + GYR is global industry leader in total metering solution for electricity, glass,
heat/cold and water for energy measurement solution for utilities. Focused on quality,
reliability and innovation, the group offers a complete portfolio of energy meters and
integrated smart metering solutions.
Landis + GYR has 45% global market share. It the major competitor to the Larsen &
Toubro in the global market. Secured meter and HPL Socomec gives competitor in Indian
market. Larsen & Toubro is the market leader.
ABB ltd:The company offer a complete solution for automation and some of
itsautomation product include substation automation and power automation products.
These automation products delivered high performance every time has it uses the best
technology.
INFOSYS
Cognizant
CHAPTER 2
ORGANISATION PROFILE
L&T is US$15 billion technology engineering, construction, manufacturing and finance service
conglomerate. It addresses critical needs and key sector like infrastructure, construction,
hydrocarbon, defence, power and aerospace. It works across seven country including India. It has
sustained in major leadership over 75 years.L&T has rated 58th most innovative by Forbes
international and 4th in global list of „green companies‟ industrial sector by Newsweek. It was
voted among the most admired companies in country by fortune in diarated 8th most Powerful
Brand in India by Brand Finance.
BACKGROUND
The evolution of L&T into a major engineering and construction organisation is among the more
remarkable success stories in Indian industry. It was founded in Mumbai (then Bombay) in 1938
by two Danish engineers, Henning HolckLarsen and Soren Kristian Toubro. Beginning
with the import of machinery from Europe, L&T took on engineering and construction
assignments of increasing sophistication. Today, the company sets engineering benchmarks in
terms of scale and complex.
Together, Holck–Larsen and Toubro, founded the partnership firm of L&T in 1938, which was
converted into a limited company on February 7, 1946. Today, this has metamorphosed into one
of India's biggest success stories. The company has grown from humble origins to a large
conglomerate spanning engineering and construction. ECC was conceived as Engineering
Construction Corporation Limited in April 1944 and was incorporated as wholly owned
subsidiary of Larsen & Toubro Limited. L&T's founders Holck
he sudden internment of German engineers (because of the War) who were to put up a soda ash
plant for the Tatas, gave L&T a chance to enter the field of installation – an area where their
capability became well respected.
In 1944, ECC was incorporated. Around then, L&T decided to build a portfolio of foreign
collaborations. By 1945, the Company represented British manufacturers of equipment used to
manufacture products such as
hydrogenated oils, biscuits, soaps and glass. In 1945, L&T signed an agreement with Caterpillar
Tractor Company, USA, for marketing earthmoving equipment. At the end of the war, large
numbers of war–surplus Caterpillar equipment were available at attractive prices, but the
finances required were beyond the capacity of the partners. This prompted them to raise
additional equity capital, and on 7th February 1946, Larsen & Toubro Private Limited was born.
Independence and the subsequent demand for technology and expertise offered L&T the
opportunity to consolidate and expand. Offices were set up in Kolkata (Calcutta), Chennai
(Madras) and New Delhi.
In 1948, fifty–five acres of undeveloped marsh and jungle was acquired in Powai. Today, Powai
stands as a tribute to the vision of the men who transformed this uninhabitable swamp into a
manufacturing landmark.
In December 1950, L&T became a Public Company with a paid–up capital of Rs.2 million. The
sales turnover in that year was Rs.10.9 million. Prestigious orders executed by the Company
during this period included the Amul Dairy at Anand and Blast Furnaces at Rourkela Steel Plant.
With the successful completion of these jobs, L&T emerged as the largest erection contractor in
the country. In 1956, a major part of the company's Bombay office moved to ICI House in
Ballard Estate. A decade later this imposing grey–stone building was purchased by L&T, and
renamed as L&T House – its Corporate Office.
The sixties saw a significant change at L&T – S. K. Toubro retired from active management in
1962. The sixties were also a decade of rapid growth for the company, and witnessed the
formation of many new ventures: UTMAL (set up in 1960), Audco India Limited (1961),
Eutectic Welding Alloys (1962) and TENGL (1963).
By 1964, L&T had widened its By 1964, L&T had widened its capabilities to include some of
the best technologies in the world. In the decade that followed, the company grew rapidly, and
by 1973 had become one of the
Top–25 Indian companies. In 1976, Holck–Larsen was awarded the Magsaysay Award for
International Understanding in recognition of his contribution to India's industrial development.
He retired as Chairman in 1978. In the decades that followed, the company grew into an
engineering major under the guidance of leaders like N. M. Desai, U. V. Rao, S. D. Kulkarni and
A. M. Naik. Today, L&T is one of India's biggest and best known industrial organisations with a
reputation for technological excellence, high quality of products and services, and strong
customer orientation. It is also taking steps to grow its international presence.
Seven decades of a strong, customer–focused approach and the continuous quest for world–class
quality have enabled it to attain and sustain leadership in all its major lines of business. L&T has
an international presence, with a global spread of offices. A thrust on international business has
seen overseas earnings grow significantly. It continues to grow its overseas manufacturing
footprint, with facilities in China and the Gulf region. The company's businesses are supported
by a wide marketing and distribution network, and have established a reputation for strong
customer support. L&T believes that progress must be achieved in harmony with the
environment. A commitment to community welfare and environmental protection are an integral
part of the corporate vision
The campus has a NABL-accredited test laboratory and is certified for ISO 9001:2008 (Quality
Management System), ISO 14001:2004 (Environmental Management System), OHSAS
18001:2007 (Occupational Health & Safety Assessment Series), ISO 13485, BIS, CE, FDA,
AS9000& CMMI. The campus is eco-friendly and works on the conservation of natural
resources with several green initiatives like solar heaters, rain water harvesting, carbon foot
mapping, kitchen waste bio gas plant, vermicomposting, etc.
Mysore also houses L&T‟s Technology Services and L&T Infotech offices
NATURE OF BUSINESS
Electrical and Electronics Division (EBG) is one of the divisions of Larsen and Toubro Limited
at Mysore. This division is engaged in manufacturing of switch gear products, metering and
protection system and medical equipment.
L&T follows best manufacturing practice and meet international regulatory and safety
requirements. Some of the good manufacturing practice being followed is six sigma tools , lean
manufacturing and value engineering.
L&T promotes sustainability development within the organization and the community through
good ethical business practice.
Electrical and electronics division (EBG) is one core businesses of L&T India‟s largest
engineering and construction conglomerate.
The division has operations at different location in India (two in Mumbai and one each in
Ahmendnagar, Mysore and Coimbatore) and one unit for manufacturing operations in China.
Another manufacturing facility in Saudi Arabia.
BRANCH OFFICES.
BHOPAL
COIMBATORE BHUBANESWAR VADODARA
JAIPUR
JAMSHEDPUR
KOCHI
LUCKNOW
AREA OFFICES
AHMEDABAD
CHANDIGARH
NEW DELHI
HYDERBAD
NAGPUR
BANGALORE
CHENNAI
KOLKATA
PUNE
AREA OF OPERATION
The kind of market segmentation followed by Larson & Larsen in full coverage.
This means that all products manufacturing by the company are sold in various
markets.
o Global
o National
o Regional
GLOBAL:-
L&T now has growing presence in export to market to various counties across the globe. The
company has built a strong base of customers. It exports meters and relays to Africa, South Asia
and neighbouring counties.
NATIONAL
L&T has acquired leadership position in electric and electronics segment of low tension switch
gear in India and rapidly establishing itself in international market even the revenue from this
segment is high wile compare to other division and even in the medical equipment‟s is growing
The company also operates within local market. It has dealer and distributors within Karnataka,
the distributors are followed by dealer and ultimately to customers.
OWERSHIP PATTERNS:-
Shareholder are owners of the company. The L&T group share prices as of 28.07.2017 is
1159.10 RS.
NAME OF THE SHAREHOLDER NO OF SHARES
L&TEMPLOYEEWELFARE 12.09%
FOUNDATION
GDRs 3.58%
L&T Board of Directors comprises of chairman and managing directors, 7 whole time
directors. The externals directors are respected professionals in the area of business strategy
financial law and policy .L&T shares are 0listed in both BSE (Bombay Stock Exchange)
BSE code 500510 and NSE (National Stock Exchange) and global depository receipts are
listed on Luxembourg Stock Exchange.
BOARD OF DIRECTORS
CHIEF FINACIAL
R.SHANKAR RAMAN OFFICER
EXECUTIV PRESIDENT(BUILDIN
M.V.SATISH Sr. E VICE G,
MINARALS AND
METALS.)
EXECUTIV VICE
J.D .PATIL Sr. E PRSIDENT(DEFENCE
BUSINESS)
VISION, MISSION AND QUALITY PRODUCT
VISION:-
L&T –items shall be an innovative, entrepreneurial and empowered team constantly creating
value and attaining global benchmarks.
L&T shall foster a culture of caring, trust and continues and learning while meeting expectations
of employee, stakeholder and society.
MISSION:-
To become India's preferred solution provider for energy measurement, monitoring and
conservation, with an international presence, through a team of engaged employees and business
partners.
QUALITY POLICY
Retain leadership position in domestic market and increase our global presence.
Comply with statutory and regulatory requirement relevant to our product, services,
environment, health and safety..
Safety is a core value. Our Zero-Incident Credo at project sites highlights the importance we
attach to the health and occupational safety of personnel at every stage - design, engineering,
construction, start-up and commissioning.
A centralized Management Systems Cell administers these functions. Internal audits and
management reviews at various levels ensure compliance. LTHE participates in the National
Committee and in the International Organization forStandardization ISO/TC 176 and
ISO/IEC/JTCI/SC 27 development.
LTHE also assists ISO in validating the revisions of ISO 9000 series as well as ISO / IEC 27001
series. Strong linkages have been established with various international bodies such as the
Institute of Quality Assurance (UK), American Society for Quality (USA), European
Organization for Quality (Switzerland), IT Security - International User Group (IUG, UK),
Information Systems Security Engineering Association (ISSEA, USA) and United Nations
Economic Commission.
The Environmental and Safety Management System helps translate our HSE policy into practice.
The Health, Safety and Environmental Management System (HSEMS) provides a clear and
precise description of HOW & WHAT we do to meet the HSE requirements defined by
Legislation and National, Corporate and International Regulations & Standards. Plan and
procedures are periodically reviewed and upgraded to achieve high HSE performance standards.
We are committed to strengthen HSE management through periodic audits, training and
interaction with national and international organisations.
Following are the elements of the HSE Management system:
• Compliance assurance
• Management review
1. RELAYS:-
L&T offers wide range of protection, controlling and monitoring relay. These
are numerical relay suitable for low voltage and medium voltage power distribution system.
These are manufactured at L&T Mysore works equipped with modern infrastructure and
employing latest testing equipment.
2. SWITCHGEAR PRODUCT:-
L&T limited is among the major manufacture of low voltage switchgear in the world, with the
scale, sophistication and range to meet global benchmarks. In addition to its leadership position
in the Indian market established over a decade, L&T has a growing presence in international
market.
3. METERS:-
L&T is leading player in electricity meter segment in India. Having entered into market in early
90‟s on the strength of its indigenously single phase and poly phase meter, it has over a decade
experience in design, manufacturing and supply of electric electronic meter in India utilities.
4. AUTOMOTERS PRODUCTS AND SYSTEMS
Electrical & Automation (E&A), leaders in the low voltage switchgear category, is one of the
key business portfolios of Larsen & Toubro Limited, a major Indian multinational in technology,
engineering, construction, manufacturing and financial services, with global operations.
L&T‟s Medium Voltage (MV) products comprise Vacuum Contactor Units (VCU) & Vacuum
Circuit Breakers (VCB). Sub cubicles, half panels, full panels assembled with these products, are
together referred to as MV Assemblies. A wide range of VCBs and VCUs for various voltage
levels ease customization of any particular assembly. These VCBs and VCUs are manufactured
and tested at L&T‟s state of the art facility located at Ahmednagar in Maharashtra. All processes
deployed at Ahmednagar Switchgear Works (ASW), are at par with international guidelines.
7.MARINISED PRODUCTS
L&T is India‟s largest switchgear manufacturer, offering a wide product range for virtually every
application. Our products are technically competent and cost competitive. The wide product range
provides single window solution for bettering services required throughout the life time of
equipment. Engineering support is provided from design of Electrical power distribution systems
to commissioning and trials.
Figure 14
The Control & Automation business of L&T offers integrated Electrical & Automation solutions
for Oil & Gas, Cement, Metal and other Manufacturing industries, Infrastructure as well as
utilities like Power and Water. We have experience of over four decades in diverse segments and
proven capabilities across the entire value chain - comprising Proposals, Design, Engineering,
Project Planning, Integration, Software Development, Integrated testing / FAT, Commissioning /
SAT and After-Sales Service
9. MARINE SWITCH BOARDS & CONTROL SYSTEM
L&T is one the world‟s largest manufacturers of switchgear assemblies. We associate with
customers at the project conceptualization stage and our association continues even after the
project is commissioned.
L&T completes its product basket with a range of MV switchboards. All medium voltage
switchgear, ranging from 3.3kV to 36kV are manufactured, assembled & tested at L&T‟s
advanced Switchgear Works – the Works are equipped with a SF6 gas handling laboratory. All
the operations & processes implemented at our Works are in accordance with international
norms.Other products and services of L&T are:
Construction
Heavy Engineering
Process Plant
Nuclear Power Plant
Defense&
Aerospace
Hydraulics
Hydraulic Cylinders
Swivel / Rotary
Joints
High Torque Low Speed Motors
Radial Piston Pumps
Customized Hydraulic Systems
Hydrocarbon
Upstream
Mid & Downstream
Power
Industrial Products
Medical Devices
Polymer
Process Industry
Telecom & Hi-
tech
Transportation
Mechanical Engineering
on the profile and requirements. The company has out look has there E-mail
network.
Transportation- Is provided to and from major points through the city both
dayand night shifts. The details of stops are provided to employees in intranet.
Conference Hall- The company provides three conference hall in the campus.The
hall is equipped with AC with timer fixed to it.
AWARD AND
ACHIVEMENTS 2017-
2019
L&T has won the prestigious Dun & Bradstreet (D&B) Corporate Awards 2019 in the
Construction - Infrastructure Development category.
L&T construction vertical recognized as ‘Best Performing Power transmission &
Distribution Organization’.
2018
2017
L&T won the prestigious ‘ Best Capital Project’ and Infrastructure risk management
award at the India
WORK FLOW MODEL
The flow of the work in the organization is the customer to customer approach. The figure shows
work flow model.
Customer Requirement
Design
New product
Quality
Design Team
Assurance
Pro-type sample
Produc
Design Purchas t
e ion
Manufacturing
Cycle
Demand
cturing Placing t
Production
Quality
Demand control
Assembly Sub-
Issue
Contractin
Stores
g
FUTURE PROPECTURES
L&T is continuously developing new skills sets/ entering new segments and geographies. We
believe that its entry into new area like power equipment‟s, nuclear power plants, defenses,
shipbuilding power development projects, and forgings( thermal and nuclear), increased
presence in the Middle East Further, some of these business segments could contribute
meaningfully to consolidates revenues and profitability, going forward.
L&T has presence in financial services(L&T Fiancée /infra Finance) and IT/ITES(L&T Info
tech). In the last 2-3 year these manufacturing to 40% of group revenues by FY 18, we see-
substantial organic and inorganic scaling up of these two verticals in 2-3 years.
L&T has also forced into thermal and hydro project development, and currently has a portfolio
of 1.32GW of thermal power and 728W of hydro power under development. The management
has through has through various media articles stared is intent of setting up 5~GW of power
capacity as development by 2019
CHAPTER 3
MC KINSEY‟S FRAMEWORK
McKinsey 7s model is a tool that analyses firm‟s organizational design by looking at 7 key
internal elements: strategy, structure, systems, shared values, style, staff and skills, in order to
identify if they are effectively aligned and allow organization to achieve its objectives.
UNDERSTANDING THE TOOL
McKinsey 7s model was developed in 1980s by McKinsey consultants Tom Peters, Robert
Waterman and Julien Philips with a help from Richard Pascale and Anthony G. Athos. Since the
introduction, the model has been widely used by academics and practitioners and remains one of
the most popular strategic planning tools. It sought to present an emphasis on human resources
(Soft S), rather than the traditional mass production tangibles of capital, infrastructure and
equipment, as a key to higher organizational performance. The goal of the model was to show
how 7 elements of the company: Structure, Strategy, Skills, Staff, Style, Systems, and Shared
values, can be aligned together to achieve effectiveness in a company. The key point of the
model is that all the seven areas are interconnected and a change in one area requires change in
the rest of a firm for it to function effectively.
Below you can find the McKinsey model, which represents the connections between seven areas
and divides them into „Soft Ss‟ and „Hard Ss‟. The shape of the model emphasizes
interconnectedness of the elements. The model can be applied to many situations and is a
valuable tool when organizational design is at question. The most common uses of the
framework are:
HARD S SOFT S
Strategy Style
Structure Staff
Systems Skills
Shared value
Hard" elements are easier to define or identify and management can directly influence them:
These are strategy statements; organization charts and reporting lines; and formal processes and
IT systems
"Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and
more influenced by culture. However, these soft elements are as important as the hard elements
if the organization is going to be successful.
In McKinsey model, the seven areas of organization are divided into the „soft‟ and „hard‟ areas.
Strategy, structure and systems are hard elements that are much easier to identify and manage
when compared to soft elements. On the other hand, soft areas, although harder to manage, are
the foundation of the organization and are more likely to create the sustained competitive
advantage.
Strategy is a plan developed by a firm to achieve sustained competitive advantage and
successfully compete in the market. What does a well-aligned strategy mean in 7s
McKinsey model? In general, a sound strategy is the one that‟s clearly articulated, is
long-term, helps to achieve competitive advantage and is reinforced by strong vision,
mission and values. But it‟s hard to tell if such strategy is well-aligned with other
elements when analysed alone. So the key in 7s model is not to look at your company to
find the great strategy, structure, systems and etc. but to look if its aligned with other
elements. For example, short-term strategy is usually a poor choice for a company but if
its aligned with other 6 elements, then it may provide strong results.
Structure represents the way business divisions and units are organized and includes the
information of who is accountable to whom. In other words, structure is the
organizational chart of the firm. It is also one of the most visible and easy to change
elements of the framework.
Systems are the processes and procedures of the company, which reveal business‟ daily
activities and how decisions are made. Systems are the area of the firm that determines
how business is done and it should be the main focus for managers during organizational
change.
Skills are the abilities that firm‟s employees perform very well. They also include
capabilities and competences. During organizational change, the question often arises of
what skills the company will really need to reinforce its new strategy or new structure.
Staff element is concerned with what type and how many employees an organization will
need and how they will be recruited, trained, motivated and rewarded.
managers, how they interact, what actions do they take and their symbolic value. In other
words, it is the management style of company‟s leaders.
Shared Values are at the core of McKinsey 7s model. They are the norms and standards
that guide employee behavior and company actions and thus, are the foundation of every
organization.
How to Use the Model
The model is based on the theory that, for an organization to perform well, these seven elements
need to be aligned and mutually reinforcing. So, the model can be used to help identify what
needs to be realigned to improve performance, or to maintain alignment (and performance)
during other types of change.
Whatever the type of change – restructuring, new processes, organizational merger, new systems,
change of leadership, and so on – the model can be used to understand how the organizational
elements are interrelated, and so ensure that the wider impact of changes made in one area is
taken into consideration. You can use the 7-S model to help analyze the current situation (Point
A), a proposed future situation (Point B) and to identify gaps and inconsistencies between them.
It's then a question of adjusting and tuning the elements of the 7-S model to ensure that your
organization works effectively and well once you reach the desired endpoint.
Sounds simple? Well, of course not: Changing your organization probably will not be simple at
all improving performance and managing change. The 7-S model is a good framework to help
you ask the right questions –but it won't give you all the answers. For that you'll need to bring
together the right knowledge, skills and experience.
When it comes to asking the right questions, we've developed a Mind Tools checklist and a
matrix to keep track of how the seven elements align with each other. Supplement these with
your own questions, based on your organization's specific circumstances and accumulated
wisdom
7S OF L&T STRUCTURE
Structure refers to the organization structure which provides information about who
reports to whom and how task, are divided and integrated. The policy and procedures
which govern the way in which the organization acts within itself and within its
environment.
Material department
Marketing department
Human resources department
Accounts department
Production department
Stores department
Administrative department.
ORGANIZATION STRUCTURE OF LARSEN AND TURBO
g
PRESIDENT
VICE PRSE
GM GM GM GM GM GM
LOC 1
LOC
LOC 2 LOC 3 LOC 4 LOC 5 LOC 6 7
Marketi Produc
ng QP tio
T&R
Design
STRATEGY
The integrated vision and direction of the company, as well as manner in which it derives,
articulates, communication and implements that vision and direction.
SYSTEM
System in the 7‟s framework to all the rules, regulation, methods and procedures (both formal
and informal) that complement the organizational structure.
o The decision making system within the organization can range from management
intuition to manual policies and procedures, to structure computer system to
o The level of rigour of system can range from rigid and bureaucratic to more
laissez faire and flexible. System can be modern and efficient or out of date
STYLE
o Style refer to way of working and the report relationship. Style means how
manager collectively spend their time and attention and how they use symbolic
behaviour. How management acts is more important then what management says.
The working of the management is democratic in style.
o Kaizen which reduces the effort of the employees mainly used in the production
process.
o SAP with the help of which the work burden of the employees is reduced up to
50%.
o SAP is applicable in various department like excise, financial and costing material
management and production planning quality management and sales and
distribution.
STAFF
Staffing is referred as human resources of an origination where they contribute to the fullest
extent to achieve the organizational goal within a stipulated period. Staffing represents the
development of employees in terms of selection, placement, training, promotion and
performance. It includes two process and developing in them the abilities and skills they need to
be effective and efficient.
o Staff means that the company has hired able people, trained them well
assigned them to the right jobs.
o Selection, training, rewards, and recognition, retention, motivation and
assignment to appropriate work are key issues.
o Rewards based on performance and potential.
o Transparency.
Bonus
Provident fund
Annual increment
Medical facilities
SKILLS
Refers to one the important attributes or capabilities possessed by the organization are skills.
The term skills include that strength which most of the people used to describe the company.
o Skills refer to the fact that employees have the skills needed to carry out the
company‟s strategy.
o Training and development – ensures people know how to do their jobs and stay up
to date with the latest techniques.
o Knowledge of products.
o Initiative
o Freedom to experiment
o Transparency
o Safety awareness.
Areas of Training-
The employees are given training in areas where the employees are weak and poor. The
areas where he requires knowledge for his effective work performance.
o Methods of training
o Types of training.
o Internal training- Is given within the organization. How the company functions its
operation.
o Safety awareness
o Shared values means that the employee share the same guiding values.
Values are things that you would strive for even if were not demonstrably
profitable.
SWOT ANALYSIS
Strengths: characteristics of the business or project that give it an advantage over 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.
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.
Users of SWOT analysis must ask and answer questions that generate meaningful
information for each category (strengths, weaknesses, opportunities, and threats) to make
the analysis useful and find their competitive advantage.
Strength:
1. Market leadership providing competitive edge - The Company can leverage its strong
brand name and market leadership position to gain competitive advantage and also
expand into international markets
2. Strong technical expertise reinforce leadership position - L&T has set up an engineering
and project management centre in Abu Dhabi to undertake oil and gas related projects as
well as engineering and consultancy services.
1. Dependence on domestic operations for revenue generation - In FY2017, the company's domestic (India)
operations contributed more than 80% of the total revenues.
2. Increasing debt impacting financial flexibility - L&T‟s interest and brokerage expenditure over the period
increased.
Opportunity:
1. Strategic joint ventures strengthening business - L&T has formed a strategic partnership with Cyan Holdings
plc, a UK-based integrated system design company. L&T and Cassidian entered into a partnership in
February 2017, to become an electronics house for defense and security.
3. Growing Indian construction & engineering industry - In 2015, the Indian construction & engineering
industry is forecast to grow.
Threat:
1. Rise in cost of construction may affect margins - The rise in crude prices, will increase the cost of
transportation.
2. Challenges in land acquisition likely to affect business - in 2017, Indian government introduced „The Land
Acquisition, Rehabilitation and Resettlement Bill, 2011‟. As per the bill, compensation for the owners of the
acquired land shall be four times the market value in rural areas and twice in urban areas.
3. Intense competition may reduce profitability – few competitors have substantially greater resources and
superior capabilities than L&T
Larsen & Toubro
INCOME
EXPENSES
1/2
Basic EPS (Rs.) 47.63 38.46 39.00 57.07 54.00
MATERIALS
SHAREHOLDER'S FUNDS
NON-CURRENT LIABILITIES
CURRENT LIABILITIES
ASSETS
NON-CURRENT ASSETS
Long Term Loans And Advances 1,732.65 1,684.13 1,777.54 3,031.73 2,720.83
CURRENT ASSETS
Short Term Loans And Advances 1,293.86 992.34 1,905.80 10,205.15 7,812.35
Stores, Spares And Loose Tools 0.00 0.00 0.00 1,178.96 1,074.52
DIVIDENDS
BONUS DETAILS
CURRENT INVESTMENTS
Value
Mar '19 Mar '18 Mar '17 Mar '16 Mar '15
Operating Profit Per Share (Rs) 61.91 53.01 69.47 66.25 69.79
Net Operating Profit Per Share (Rs) 620.12 531.36 704.46 641.77 613.38
Profitability Ratios
Profit Before Interest And Tax Margin(%) 8.48 8.35 7.78 8.31 9.24
Long Term Debt Equity Ratio 0.05 0.12 0.16 0.20 0.23
RETURN ON SALES:
It’s a ratio used to evaluate a company operational efficiency. This measures provides insight
into how much profit is being produced of sales. During the year 2016-2017 ratio on sales is
8.22% and 7.68 %.
It shows company how efficiently management is using the resource to generate revenue and
earn profit.
RETURN ON ASSEST:
It shows the relationship between the earning and asset base of the company, during the year
2016-2017 return on asset is 0.05560 and 0.0537 times.
It indicates that the company can produce relatively higher earning in comparison to assets.
Return on equity is a profitability ratio that measures the rate of return on resources provided for
by company stock holders equity. During the year 2016-2017 the rate of equity is 0.1273 and
0.1259 times.
It shows company was able to successfully utilize the resources provided by its equity investor
and the company profit
Networking capital is the aggregate amount of all current assets and current liability. It is used to
measure the short term liquidity of a business, and can also be used to obtain a general
impression of the ability of company management to utilize assets in an efficient manner.
During the year 2016-2017 the net working capital ratio is 21606.19 and 18367.75 rupees.
CURRENT RATIO:
Current ratio is a liquidity ratio that measures whether or not a firm as enough resources to meet
its company short term obligation. The standard current ratio is 2:1. During the year 2016-2017
the current ratio is 144.54 and 137.70, it indicates the company investment in current ratio is not
a good sign, it reflects improper utilization.
QUICK RATIO:
Quick ratio provides a measure of the capacity of the business to meet its short term obligation
without any flow. The standard quick ratio is 1:1. During the year 2016-2017 the quick ratio is
140.93 and 133.69 so company as suggest unnecessary deployment of resource.
CASH RATIO:
Its liquidity ratio that measures a company ability to pay of short term debt obligation with cash
and cash equivalents during the year 2016-2017. The cash ratio is 22.24 and 17.19%.
It indicates that the company can easily pay of its debt and a ratio of not lower than 0.5 to 1.
DEBT RATIO:
It tells the investment community the amount of fund that have been contributed by creditors to
the stake holders during the year 2016-2017 the debt ratio is 47.44 and 48.19.There is no ideal
ratio It indicates a company ability to pay of its liability with asset.
It express the relationship between total debt and share holders equity debt refers to long term
liability. Equity refers to owners. The standard ratio is 2:1 during the year 2016-2017, the debt
equity is 105.38 and 115.64 this clearly shows that the organisation depends heavily on debt as
source of capital.
EQUITY RATIO:
It’s a leverage ratio that measures the portion of company resources that are funded by
contribution of equity during the year 2016-2017 the equty ratio is 45.02% and 42.30%. It
indicates the company using the finance it assets lesser than to compare previous year.
TOTAL ASSETS TURNOVER RATIO:
This ratio measures how efficiently the firm employs asset. It shows the firm abilities in
generating sales from all financial resource committed to total asset. The firms total assets
turnover ratio which implies asset of the firm are well utilized. During the year 2016-2017 the
current asset turnover ratio is 0.676 and 0.700 ratio has been increased, it implies that the
company is generating more revenue of assets.
This ratio determines the number of times inventory is converted into revenue from operations
during the accounting period under consideration. During the year 2016-2017, the inventory
turnover ratio is 27.966 and 23.800 times.
It indicates inventory may be due to bad inventory etc., and it is a danger of signal.
This ratio indicates the pattern of payment of trade payable. As trade payable arise on account of
credit purchases, it expresses relationship between credit purchases and trade payable. During the
year 2016-2017 the trade payable turnover ratio is 0.378 and 0.42013 times.
This ratio expresses the relationship between credit revenue from operations and trade
receivable. During the year 2016-2017 the trade receivable and turnover ratio is 3.511 and
3.70010 times.
It indicates the number of times the receivable are turned over. High turnover shows speedy
collection from trade receivable.
CHAPTER 6
LEARNING EXPERIENCE
My learning experience in the company was very pleasant. The response and support I got from the
management and staffs was appreciable.
This training helped me to know practicalities. I learned about management from practical
perspective and I learnt about organization as to how it works in management aspects and the
policies and procedures. Totally it was a highly useful training for me in the company.
During the first week, it was new experience entering into the organization. The training was very
informative and useful as if enabled us to have a corporate look over the functioning of each and
every department of the company apart from the theoretical knowledge.
During the training I have been working in accounts department, where I learnt about data mining
and analysis, asset verification, inventory management, processing of the bill payment, procurement
process and organization study in brief.
During the training I also learnt about purchase order and sales orders made by the company and
practical implication of inventory techniques in the company.
BIBLIOGRAPHY:-
Books
“Operations and Supply Chain Management” , Richard Chase , Ravi Shankar ,F. Robert Jacobs
WEBSITES
www.caclubindia.com
www.sap.com
www.sappoint.com
www.larsentoubro.com
http://www.academia.edu/3636633/ANALYSIS_ON_INVENTORY_MANAGEMENT
www.lntemsys.com