AN ORGANISATIONAL STUDY IN

BABY INDUSTRIES, VADASERI

Submitted by
B.BREYNARD BENJAMIN

(Reg. no: 961518631016)

A SUMMER TRAINING REPORT

Submitted to the
FACULTY OF MANAGEMENT STUDIES
In partial fulfilment of the requirements
For the award of the degree

OF

MASTER OF BUSINESS ADMINISTRATION

ANNA UNIVERSITY:: CHENNAI: 600025

JULY 2019
 BONAFIDE CERTIFICATE

This is to certify that the summer training program entitled ―AN

ORGANISATION STUDY IN BABY INDUSTRIES, VADASERI‖ , is the
bonafide work of B.BREYNARD BENJAMIN (Reg. no: 961518631016) who
carried out this study under my supervision. Certified further to the best of my
knowledge the work report here is not from any part of other project report or
dissertation on the basis of which a degree or award was conferred on an earlier
occasion on this or any other candidate.

Place: Attoor Signature of the Guide

Date:

Internal Examiner External Examiner

Head of the Department

Viva voce held on:………………….

 DECLARATION

I B.BREYNARD BENJAMIN, hereby declare that all the details furnished in

the report are true to the best of my knowledge. This report titled ―AN
ORGANISATION STUDY IN BABY INDUSTRIES, VADASERI‖ has been done
under the guidance of Mr. C.M. AJIN CHANDRA PAUL,MBA,(PhD) faculty
member in MCET, Attoor, Anna University Chennai for the award of Master of
Business Administration. I further declare that, this work is not partly or wholly
submitted for any other purposes.

Place: Attoor B.BREYNARD BENJAMIN

Date: (Reg. no: 961518631016)

 ACKNOWLEDGEMENT

First I thank the almighty GOD who has given me knowledge and strength to
do this project.

I take this opportunity to thank our principal Dr.Y.SUJAR, MTech, PhD, for
giving us this wonderful opportunity.

I express sincere thanks to Dr.S.G.STARLIN MANO, MBA, MPhil, PhD,

Head of the department of management studies for the valuable advice and
suggestions to complete this project well.

It gives me immense pleasure to express gratitude towards my faculty guide

Mr. C.M. AJIN CHANDRA PAUL, MBA, (PhD) for his sincere and expert
guidance and valuable help for completing the project successfully.

I express my sincere thanks to Mr.C.Arul Gnana Bell, General Manager of

Baby Industries. for inspiring guidance and constant encouragement during all the
phases of the study.

Last but not least I express my whole hearted thanks to my parents, friends and
all others for giving support and care in completing the organisation study in time.
 ABSTRACT

Organisation study aims to get awareness about the organisation setup and its
operations are conducted mainly to get a familiarisation about the functioning of
different departments and other areas which associate with an organisation to support
its activities.

This organisation study was conducted at Baby Industries , Vadaseri.The

company was established with the vision of becoming an top manufacturer of wet
grinders in Kaniyakumari district. It began production with one model of wet grinder
and now producing 4 models and is trying to develop more new and innovative
household products the company is growing rapidly and profitable.

The study covers all the functional areas of each department in the
organisation. The study is useful in assigning the quality and performance of the
company which may help the management to identify the strength and weakness of
the organisation. This study also helps to familiarise with the functional areas of every
departments in the organisation.
 TABLE OF CONTENTS
CHAPTER TITLE PAGE.NO
1 INTRODUCTION
1.1.GENERAL INTRODUCTION 2
1.2.INDUSTRY PROFILE 3-5
1.3.COMPANY PROFILE 6
1.3.1.VISION 7
1.3.2.MISSION 7
1.4.ORGANISATIONAL STRUCTURE 8
1.5.PRODUCT PROFILE 9-12
1.6.PRODUCTION PROCESS 13-15
2 RESEARCH METHODOLOGY
2.1.TITLE OF THE STUDY 17
2.2.OBJECTIVE OF THE STUDY 17
2.3.SCOPE OF THE STUDY 17
2.4.SOURCE OF THE DATA 17-18
2.5.LIMITATIONS 18
3 FUNCTIONAL DEPARTMENT
3.1.HUMAN RESOURCE DEPARTMENT 20-23
3.2.FINANCE DEPARTMENT 23-25
3.3.MARKETING DEPARTMENT 26-27
3.4.PURCHASE DEPARTMENT 27-29
3.5.PRODUCTION DEPARTMENT 30-32
4 ORGANISATIONAL ANALYSIS
4.1.SWOT ANALYSIS 34-35
4.2.BCG MATRIX 35-38
5 SUMMARY
5.1.FINDINGS 40-41
5.2.SUGGESTIONS 42
5.3.CONCLUSION 43
6 BIBLIOGRAPHY 44
 1

CHAPTER-1

INTRODUCTION
 2

INTRODUCTION

ORGANISATION STUDY

1.1GENERAL INTRODUCTION
An group of people working together to achieve a common goal is called as
an organisation. It is an institution through which business activities are carried out. It
represents an institutional arrangement to undertake business activity. The term
organisation is used in many ways and in each way the user it in a specific reference
in management literature sometimes the term organisation and the organising are used
inter changeably organising involves analysis of activities to be performed for
achieving organisational objectives, grouping the activities into divisions and
departments so the work can be assigned to various individuals and delegating them
into individual into appropriate authority so that they are able to carry on in their work
effectively. Management is the backbone of the organisation. Without efficient
management no organisation can perform its functions smoothly. An organisation is a
group of individuals performing different activities in order to achieve the goals.

This organisation study will gather information regarding organisational setup,

overall performance, production process, market performance, market performance,
financial performance etc. This is the overall study about a firm or an organisation
also deals with the A to Z functions of the company.

This study was conducted at BABY INDUSTRIES which is a wet grinder

manufacturer situated at VADASEI the aim of the study is to analyse the various
activities done by the organisation in its day to day operations.
 3

1.2 INDUSTRY PROFILE

The wet grinder is a tool that has been around for many, many years. Originally
it was only used in kitchens in Southern India as a means of grinding down wet grains
and lentils for specially prepared dishes. The first wet grinders were made out of large
rocks and there was a hole carved in the stone. A chuck of circular stone that fit into
the hole was fitted with a type of wooden handle. The stone would then fit into the
carved out space and the worker would grind on the wet grains using their muscles to
push down on the stone while rotating the handle simultaneously. The process of
grinding down the water and grain mixture was often tedious and could take a long
time. The pastes that the wet grinder produced could be used in foods like dosa, vada,
and idli.

However, in recent years the implementation of electricity and the

mechanization of the wet grinder led to a revolution in this process in many working
class kitchens that utilize this tool. The amount of time that it once took to prepare a
meal has been drastically reduced and it has allowed more and more people access to
these types of food. The earliest forms of these mass produced items used a sort of
mechanism that rotated the two stones against each other with just a minimal amount
of turning on the part of the worker, but it could still be a time consuming task.

This is probably why many of the foods that relied on the use of a wet grinder
for preparation were not introduced to a large number of people outside of Southern
India until the electric version of the wet grinder was introduced to the market. The
first one of these still relied on the use of stones, only now they were powered by
electricity when they rotated.

NATIONAL MARKET

WET grinder manufacturing industry in Tamil Nadu, which accounts for

nearly 80 percent of the market for wet grinders in the country, hopes to witness a 20
per cent growth in production in the coming years.

There are many companies, involved in the manufacture of wet grinders and
 4

their accessories including domestic, commercial and table-top wet grinders in India.
The total number of wet grinders produced is around 100,000 units per month.

the industry is seeking from the Centre a Rs 50-lakh grant for the
establishment of a testing centre, for which assistance from Tamil Nadu Government
is also being sought.

As the product was invented in the city, Coimbatore naturally emerged as a

center for the manufacture of wet grinders. The availability of raw material in the
form of granite stones, electric motor manufacturing units and the necessary heavy
equipment such as lathes, drilling and milling machines used in manufacturing aided
the development of the industry.

The city contributes to about 75% of the 1 lakh total monthly output of wet
grinders in India.The industry employs 20,000 people directly and provides indirect
employment to 50,000. In 2011, the cluster had a yearly turnover of ₹225
crore (US$33 million) which grew to ₹2,800 crore (US$410 million) in 2015.

In 2007, the Government of Tamil Nadu opened a center for manufacturing

raw materials for wet grinders and a research center built at a cost of ₹28.8
million (US$420,000). The industry grew over ten times in the last few years due to
procurement of nearly 22.5 million wet grinders by the Government of Tamil
Nadu for free distribution to green family card holders. In 2015, the Government of
Puducherry announced distribution of free wet grinders to 3.37 lakh families for
which it plans to procure wet grinders at a cost of ₹120 crore (US$17 million).

Wet grinders are mainly sold through retail channels with the manufacturer
distributing it through intermediaries. Since 2014, the sales through e-
commerce channel has grown considerably helping in bulk sales and brand building.

INTERNATIONAL MARKET

Steep rise in construction projects across the UAE has helped the wet grinder
industries to witness a steady export growth. There is a good demand in the
international market for wet grinders manufactured in Coimbatore. Various types of
 5

grinders are exported to the US, UK, UAE, Australia, Singapore and Malaysia
among other countries.

There are 60 industries established across the district, out of which 15 belong to big
sector and 45 fall under the tiny and small scale sector. Over 300 spare parts and
accessories manufacturing units are associated with this sector, which directly or
indirectly employs 10 lakh people.

There are three kinds of grinders — floor model, tilting and table top. In the
domestic segment, the price of the grinders starts from `2,000 to a maximum of
`8,000. Under the commercial segment, the minimum price starts from `10,000 to a
maximum of `2 lakh.

While this is the off season for sale of grinders in the domestic sector, increase
in job orders from various foreign countries has helped the grinder export market
see a steady growth. Especially, the steep rise in the construction projects across the
UAE has helped the export market in a big way. More construction projects are
witnessed across UAE nations For each project, they are establishing a giant sized
kitchen to provide food for the workers. More construction projects mean more job
orders for the industry here.

Coimbatore’s Trident engineers managing partner R Selvaraj told Express, ―As far
as the export market is concerned, it is witnessing a good growth. There is more
demand for giant size grinders of 10 litres, 15 litres, 20 litres and 40 litres.

In May, till now, two containers have already been sent to the ports for export to
Dubai and Doha. Each container will have the capacity to hold 40 grinders, which is
valued at Rs 18 lakhs. Hence, this month, within four days, `36 lakh-valued grinders
have been exported. Other kitchen equipment is also in good demand in the export
markets.‖ The Central government is helping in many ways.
 6

1.3 COMPANY PROFILE

The Baby Industries was the first in Nagercoil, to market wet grinders in
Kanyakumari district which was well known as Bell marketing. Over the years, under
the enterprising leadership of Mr. C. Arul Gnana Bell, Baby Industries has grown to
be a household name among thousands in Kanyakumari District.

Today, Baby Industries manufactures a comprehensive range of home

appliances, kitchen products and cookware. Four state-of-the-art-manufacturing units,
backed by the latest R&D facilities ensure total compliance to standards of excellence
in design and quality.

Quality and Consistency are the prime motivating factors. Baby Industries has
in-house design facilities, tool & die-making facilities with an impetus on quality
control, has enabled the company to consistently produce products of the highest
quality sticking to the finest functionality norms.

The Company has state of the art manufacturing facility. The Company’s R&D
facilities has the latest design and development tools, Spectrum Analyzer etc. to keep
up its passion for progress at all levels. This passion would constantly give birth to
new product ranges.

Over the years, the Baby Industries Group has grown from just manufacturing
a handful of basic kitchen utensils to an organization involved in a comprehensive
range of domestic appliances, kitchen products and cookware.

The Success of BABY INDUSTRIES is attributed to its customer orientation.

Serving the customer with the finest quality products and adapting to the changing
needs and tastes of customers have been the Company’s primary motive.
 7

Key Statistics about Baby Industries

Headquarters Nagercoil, Kanyakumari District, India

Industry Consumer Electronics

Type Privately Held

Status Operating

Company Size 60 employees

Founded 2007

Male
80%
Gender
Female
20%

1.3.1 VISION

To become a top manufacturer in Tamil Nadu with a lot of class leading

products with good design and innovative features and less power consuming wet
grinders. To manufacture other household products with innovative features and
advanced design and also to expand its business all over the country.

1.3.2 MISSION

Baby industries is focused on producing good quality products and expand its
customer base and to set up good servicing facilities for the existing and become a
leader in kaniyakumari district.
 8

1.4 ORGANISATINAL STRUCTURE

MANAGING
DIRECTOR

MANAGER

ASSISTANT
MANAGER

Production Finance Marketing

HR Department Department Department Department

QUALITY PRODUCTION AUDITOR MAINTENANCE

DEPARTMENT MANAGER DEPARTMENT

Quality
Inspector Supervisor

Employee
 9

1.5 PRODUCT PROFILE

MATCHLESS

» 2 roller stone assemble for faster grinding

» Aesthetically designed body made of ABS material

» High torque single phase motor

» 900 RPM – Motor Speed

» Unbreakable and transparent arm lid made of polycarbonate material

» Swing arm assembly and detachable ss Drum for easy operation

» 5 years warranty
 10

ELITE

» 3 conical roller stone assembly for faster grinding

» Aesthetically designed body made of ABS material

» High torque single phase motor

» 900 RPM Motor Speed

» Unbreakable and transparent lid made of polycarbonate material

» Swing arm assembly and detachable SS Drum for easy operation

 11

» 3 conical roller stone assembly for faster grinding

» Aesthetically designed body made of ABS material

» High torque single phase motor

» 700 RPM Motor Speed

» Unbreakable and transparent lid made of polycarbonate material

» Swing arm assembly and detachable SS Drum for easy operation

» 2 years warranty
 12

Commercial Wet Grinder

 Size 34x22x36
 Inch Motor Capacity 0.5-3 hp
 Weight 90-250 kg
 Capacity (Litres) 3-20
 13

1.6 PRODUCTION PROCESS

 Components

 Motor

 Stone set

 Drum

 Outer shell

 Belt and Pulley

 Electrical components

 Body Molding

Red color plastic pellets are poured into an molding machine which heats and
melts the plastic then injects it into the mold which is in the shape of the outer
body and the outer shell of the wet grinder is made.

 Coil Winding

The coil for the motor is winded by an employee using an semi-automated

machine this requires a lot of skill and training for the employee then the winded
coil is then tested.

 Motor Assembly

the motor is the main component of the wet grinder and is made with top
quality materials all the components for the motor is assembled by an employee
and the coil is placed inside the motor and then the motor is tested to ensure is
quality.
 14

 Belts and Pulleys

The pulleys and levers which move the drum is fitted and an high quality belt is
connected to the motor and the rolling drum which will enable he motor to rotate
the drum.

 Electrical Wiring

All the power supply wiring is done manually by an employee all the wires
power board is fitted all switches are placed and the power supply is tested.

 Drum Assembly

The motor is place inside the body of the grinder and then the drum with the
stone base is fitted into the grinder and is fitted tightly with bolts and then the 3
conical roller stone is places on top and tested for proper performance.

 Testing

The fully assembled grinder is then tested in all ways for durability and reliability
and then it is allowed to be sent for sale.
15
 16

CHAPTER-2
RESEACH METHODOLOGY
 17

2.1 TITLE OF THE STUDY

An organisation study in BABY INDUSTRIES, VADASERI

2.2 OBJECTIVES OF THE STUDY

The objective of the study are to understand the different activities taking place
within the organisation, the functions of various departments and their
interdependence. The main objective of the study are;

 To understand the wet grinder industry.

 To conduct a brief study about BABY INDUSTRIES.
 To understand the structure of the organisation.
 To know the functions and practices of the company.
 To conduct SWOT analysis of BABY INDUSYRIES.
 To create BCG matrix for the company.

2.3 SCOPE AND SIGNIFICANCE OF THE STUDY

In the 21st century due to the advancements in technology business are growing
and new industries are being created the involvement of technology in business has
changed the way in which an organisation functions. This study helps to learn about
how an organisation with all its various department functions in these modern times.

The study at the BABY INDUSTRIES aims to provide an understanding about

the organisation as a whole especially the internal analysis that will cover all the
functional departments, organisational structure, existing strategies and work culture.
BABY INDUSTRIES has all those functional areas such as production, finance,
marketing, purchasing etc. the study mainly focus on the functions of all the
department and giving emphasize to their working.

2.4 SOURCES OF DATA

The data required for the purpose of the organisation study was obtained
through various sources

 Primary data
 Secondary data
 18

Primary data

The data was collected through discussions, observations, conversations with

various people from various departments and feedbacks from customers.

Secondary data

Secondary data for the study was collected from various annual reports,
previous studies, financial records etc.

2.5 LIMITATIONS OF THE STUDY

 The major limitation of the study is the in depth detailed analysis of the data
collected.
 The employees had a lot of work load so they didn’t have time to talk with
me.
 The top management was unable to be interviewed.
 19

CHAPTER-3
FUNCTIONAL DEPARTMENTS
 20

3.1 HUMAN ESOURCE MANAGEMENT

The Human Resource Department of BABY INDUSTRIES is concerned with

hiring, motivating and maintaining workforce within businesses.

Functions of Human Resource Management Includes:

 Managerial Functions

 Operative Functions

Managerial Function Includes:

1. Planning

One of the primary function where number & type of employees needed to
accomplish organizational goals are determined. Research forms core HRM planning
which also helps management to collect, analyze and identify current plus future needs
within the organization.

2. Organizing

Organization of the task is another important step. Task is allocated to every

member as per their skills and activities are integrated towards a common goal.

3. Directing

This includes activating employees at different levels and making them

contribute maximum towards organizational goal. Tapping maximum potentialities of
an employee via constant motivation and command is a prime focus.
 21

4. Controlling

Post planning, organizing and directing, performance of an employee is

checked, verified and compared with goals. If actual performance is found deviated
from the plan, control measures are taken.

Operative Function Includes:

1. Recruitment/Hiring

Hiring is a process which brings pool of prospective candidates who can help
organization achieve their goals and allows managements to select right candidates
from the given pool.

2. Job Analysis & Design

Describing nature of the job like qualification, skill, work experience required
for specific job position is another important operative task. Whereas, job design
includes outlining tasks, duties and responsibilities into a single work unit to achieve
certain goal.

3. Performance Appraisal

Checking and analyzing employee performance is another important function

that human resource management has to perform.
 22

4. Training & Development

This function allows employees to acquire new skills and knowledge to perform
their job effectively. Training and development also prepares employees for higher
level responsibilities.

5. Salary Administration

Human Resource Department also determines pays for different job types and
incudes compensations, incentives, bonus, benefits etc. related with a job function.

6. Employee Welfare

This function takes care of numerous services, benefits and facilities provided to
an employee for their well-being.

7. Maintenance

Minimizing employee turnover and sustaining best performing employees

within the organization is the key. Minimizing ROI within HR department is also a key
goal for Human resource management team.

8. Labor Relations

Labor relation is regards to the workforce who work within a trade union.
Employees in such domain form a union/group to voice their decisions affectively to
the higher management.
 23

9. Personal Research

Research is a vital part of human resource management. It is performed to keep

a check on employee opinion about wages, promotions, work condition, welfare
activities, leadership, employee satisfaction and other key issues.

10. Personal Record

This function involves recording, maintaining and retrieving employee related

information including employment history, work hours, earning history etc.

3.2 FINANCE DEPARTMENT

The finance department of Baby Industries has the following function

1. Bookkeeping and Payables/Receivables

Bookkeeping is the most basic financial activity in a company. Before a business

owner ever considers hiring a CFO, they bring in a bookkeeper, who tracks all of the
transactions in the organization, covering both sales and expenses. As the organization
grows, they might hire more specialized payables and receivables clerks, to take over
functions such as corresponding with vendors and suppliers, above and beyond
recording transactions.

2. Financial Reporting and Control

Financial Reporting and Control is the function that takes raw accounting entries and
transforms them into usable and comparable financial statements. Requiring far more
judgment than the bookkeeper’s role, this function involves everything from ruling on
how to implement accounting principles to designing financial processes of the
 24

organization, selecting accounting systems, liaising with external auditors, and

ensuring that there are no gaps or oversights in existing processes.

3. Tax and Compliance

Running a business involves paying tax, and paying tax means doing a lot of
calculations and filling out a lot of forms. Often using the financial statements as a
basis, along with various other configurations of the information produced by
Bookkeeping and Payables/Receivables, the Tax and Compliance function will make
sure all of the government forms and filings are sent complete and on-time to the
taxman. A strong Tax and Compliance function will go one step beyond simple
compliance, and will find ways to minimize tax, so as to maximize the company’s net
income.

4. Strategic Planning and Financial Planning & Analysis

This function, ―FP&A‖ for short, is the true bridge between the Past and the Future.
FP&A regularly creates strategic and financial plans that forecast what financial
results (sales and expenses) will look like in future periods. Then, they compare actual
results—prepared with the assistance of the Financial Reporting and Control
function—to determine areas where the business can improve. With this ―variance
analysis‖ complete, they can then prepare more accurate forecasts for the future. A
strong FP&A function will not only generate annual forecasts but will be able to
update them even over the course of a day or two, and to run many scenarios that
examine the effects of, say, losing a big customer or an economic contraction.

5. Treasury & Working Capital Management

The key role of Treasury is to make sure that the company doesn’t run out of cash.
This means, among other things, forecasting the upcoming working capital
(receivables, payables and inventory) needs of the company, investing surplus cash in
 25

short-term instruments to generate modest interest income, and managing currency

risk.

6. Capital Budgeting

Capital Budgeting is the function responsible for selecting between the various uses of
capital, or capital projects. After all, most organizations will have money available to
invest in the business, with the hopes of either growing sales or reducing expenses.
But the opportunities for spending typically exceed the amount available to spend, so
Capital Budgeting develops business cases to evaluate and identify the most effective
projects. A strong Capital Budgeting function will not only forecast project benefits,
but will also track these benefits over time to determine whether the use of capital was
as effective as originally anticipated.

7. Risk Management

Risk Management takes a hard look at some of the key risks faced by the
company—currency, interest rate, market, operational, legal, etc.—and tries to
quantify the possible impacts so that they can be mitigated as much as possible. If
FP&A looks at the base case scenario for the company’s financial results, Risk
Management takes a wrecking ball to it.

8. Organisation Development Strategy

Corporate Development and Corporate Strategy can be widely defined, but it is the
area of Finance most heavily populated by former investment bankers and
management consultants. As such, common tasks that fall to this function include
sourcing and analyzing mergers & acquisitions deals, raising debt and equity
financing, making capital structure decisions and providing insight into high-level
strategic decisions such as entering a new market.
 26

3.3 MARKETING DEPARTMENT

Marketing is an art of selling goods or services. Success of product is in the

hand of market policies adopted in the company.

COMMERCIALIZATION

Advertisement is only the commercialization activity done in the company.

Advertisement is done through bills, website ad, banner, radio and television are for
company’s publicity.

TRADER’S SALES PROMOTION

Trader’s sales promotion activity is done with

 Samples
 Coupons
 Free gifts
 Discounts
 Offers

To attract trader’s for more sales of product.

CUSTOMER RELATIONSHIP MANAGEMENT

Main focus of this customer relationship management is to satisfy customer’s

requirement.

 To retain customer
 To increase number of customer

ACTIVITIES OF CRM

Sales person will offer a sheet of paper to get customer feedback and then
feedback of customer will be communicated to the production department to
recognize the opinion of customer about the product.
 27

CHANNEL MANAGEMENT

Distribution of products is done in BABY INDUSTRIES by grading the

product, branding, packing and packaging, pricing, storing or warehousing.

INNOVATE

Customers need to be surprised, and every day, given the higher offer, they are
more demanding with this. The marketing department should work on new
promotions, affiliate programs, customer retention techniques, improvements in the
conversion of their messages and actions.

TRACK TRENDS AND MONITOR COMPETITION

Similar to the previous point, it’s important to know the position of the
company regarding the market and the competition. That's why from marketing, you
must watch the competition to learn what they do best or to identify their mistakes in
order to avoid falling into them.

3.4 PURCHASE DEPARTMENT

ASSESMENT OF DEMAND
After recognising the need with appropriate description, i.e., qualitative as well
as quantitative, is necessary for the sound and successful purchasing. An improperly
described demand can cost heavily money-wise as well as time-wise.

The real problem arises when the order is placed for want of preciseness in the
description of goods needed, the items are received and these are not acceptable to the
user department and it also becomes difficult to convince the suppliers to return the
goods in case of faulty supplies. Therefore, purchasing department must have
adequate knowledge of items being purchased to be able to secure full description.
 28

SELECTION OF SOURCE OF SUPPLY

Most important function of a purchasing department or officer is the selection

of the sources for the requisitioned items of stores. There are different sources of
supply which have no similarity between them.

For majority of items, selection of one of the vendors should be made. While selecting
the item, the purchase officer has to see whether the item to be purchased is on a
regular basis i.e., it is being purchased time and again or it is a seldom purchase on
non-recurring basis.

Whenever the items are to be bought from single manufacturer, such as branded or
patented item, there is no difficulty in the selection of the sources of supply; the order
can be placed with the party according to terms and conditions of their sale..

RECEIVING OF QUOTATION

As soon as the purchase requisition is received in the purchase division, sources of

supply will be located; a decision is then taken in respect of the method of
tendering/limitation of quotations from prospective suppliers.

Prices are also ascertained by preparing a comparative statement with the help of
either of the following documents supplied either by the supplier or taken from the
previous records of advertisements, like:

(a) Catalogues, price lists etc.

(b) Telephonic quotations.

(c) Previous purchase records.

(d) Quotation letter or tender i.e., letter of inquiry.

 29

PLACING OF ORDER

Placing a purchase order is the next function of purchasing officer. Since purchase
order is a legal binding between the two parties, it should always be accurate, clear
and acceptable to both. The purchase order should contain the following particulars:

(a) Description and specifications of the material.

(b) Quantity order.

(c) Transport and packing charges and shipping instructions.

(d) Name and address of the supplier.

(e) Date, time and place of delivery.

(f) Price, discount and terms of payment.

(g) Signature of the purchase manager.

(h) The name and address of the buy

MAKING DELIVERY AT PROPER TIME

Since one of the objectives of successful purchasing is delivery of goods at

right time so as to ensure delivery when and where needed? In normal practice, the
responsibility of the purchasing department is upto the time the material is received in
the stores and is approved by the inspection department.

Every purchasing department has the responsibility for follow-up of the orders it
places on different suppliers. All items do not require extensive follow-up. For some
less important and low value items follow-up would be costly and wastage of money
and time only.
 30

VERIFICATION OF INVOICES

In normal course, it is also the responsibility of purchase department to check

the invoices and accordingly advise the accounts department for clearing the payment
to the parties concerned. Contradictory statements have been given as to who should
be assigned this function.

Some are of the view that invoices should be checked by the purchase department
placed by it whereas other suggests that it should go to the accounting department. In
support of this, the experts add that it is part of the responsibility of purchase
department that orders are accurately executed and properly filled as per terms and
conditions of the contract.

INSPECTION OF INCOMING MATERIALS

The purchasing department should have a close contact with inspection department.
On receipt of the materials from different suppliers, they are to be inspected as per
specifications indicated in the purchase order to verify their quality and quantity.

Uninspected materials are a burden on the economy of the organisation. If inspection

is delayed, the payments of the suppliers also are likely to be delayed, resulting in bad
relations between suppliers and purchasers.

MAINTAINING PURCHASEING RECORDS

Purchasing involves a lot of paper work. Daily a number of letters, bills,

quotations, notes, challans, railway receipts, parcel, way bills, bills of ladings, goods
received notes, lorry receipt, goods receipt (transport delivery notes), inspection notes
have to be dealt with. It involves a lot of clerical work.

This department has to refer to previous correspondence on purchase orders, notes,

catalogues, blue prints, price lists etc. very frequently which makes it imperative to
maintain records in appropriate manner. These records are essential for making the
day to day purchase.
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3.5 PRODUCTION DEPARTMENT

IDENTIFYING INPUTS

A business determines the quantity or volume of goods that should be produced

within a certain time frame and passes the information to the production department.
To meet production targets, the department establishes the quantity of raw materials
and types of machinery and equipment required to achieve the desired output level,
and may collaborate with the purchasing department to source the inputs. If there
isn't sufficient manpower to support productions process, the production department
asks the firm to hire more personnel.

SCHEDULING PRODUCTION

With the inputs ready, the production department schedules production processes.
This involves planning the tasks to be completed along the production line and
allocating the tasks to various production workers. In a woodworking business, for
example, the department determines how long lumber will be allowed to dry before
being moved to the machining stage for sawing and bending into shape – and finally
through the assembly and finishing stages.

MINIMIZING PRODUCTION COST

The production department is tasked with finding effective ways to lower production
costs. One simple way to do this is to keep the production machinery and equipment
well-maintained so the firm does not regularly incur repair costs. Along with
advising the business to adopt newer technologies, the department can also assess
the production line to identify opportunities for cost reduction. For example, if the
type of wood used a long time to air-dry – requiring an investment in wood dryers –
it could be less costly for a furniture manufacturer to purchase dried lumber.
 32

ESURING PRODUCT QUALITY

A production department must ensure finished goods meet minimum quality

standards. Apart from checking all products for faults as they move through the
production process, the department must perform rigorous tests on prototypes for
new products to ensure they meet quality benchmarks before undergoing mass
production. Techniques such as waste elimination and process standardization also
help to ensure and improve product quality.

IMPROVE EXISTING PRODUCTS

From time to time, the production department will furnish the research and
development department with information it can use to improve existing products.
For example, when the production department of a smartphone manufacturer notices
that the material it uses to make phone casings bends when subjected to some
pressure, the department must advise the research team so that it can seek stronger
materials.
 33

CHAPTER-4
ORGANISATIONAL ANALYSIS
 34

ORGANISATIONAL ANALYSIS

4.1 SWOT ANALYSIS

Strength, weakness, opportunity and threat are the internal and external factors
which affect the company. SWOT helps the organization for its self-analysis to find
out their own position in the business field. Through self-analysis we found out the
SWOT of ―BABY INDUSTRIES‖.

SWOT analysis is a tool for auditing an organization and its environment. It is

the first stage of planning and helps marketers to focus on key issues. SWOT stands
for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are
internal factors. Opportunities and threats are external factors.

AIM OF A SWOT ANALYSIS

 Reveal the competitive advantages of the firm.
 Analyse the prospects for sales, profitability and product development
 Prepare the company to overcome problems
 Allow for the development of contingency plans

STRENGTH
 Diversified product range
 Efficient and skilled labour
 Good quality of the product
 Good infrastructure facility
 Continuous market research for new product development
WEAKNESS
 cost of raw materials are very high
 Lack of upgradation in technology
 High cost of production
 unavailability of raw materials nearby
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OPPORTUNITY
 Expanding the business to more locations
 Chance for more new product development
 Wet grinder have good demand in the market which is favourable for the
company
 Expanding the business is less risky
 Has the potential to earn more profits

THREAT
 Tough competitors in the industry
 Less availability of servicing centres
 Short material life span
 Increase in price of raw materials
 Changing technology
 Attractive advertisements from competitors
 36

4.1 BCG MATRIX

BCG matrix is a framework created by Boston Consulting Group to evaluate

the strategic position of the business brand portfolio and its potential. It classifies
business portfolio into four categories based on industry attractiveness and
competitive position.

DOGS

Dogs hold low market share compared to competitors and operate in a slowly
growing market. In general, they are not worth investing in because they generate low
or negative cash returns.

QUESTION MARK

Question marks are the brands that require much closer consideration. They
hold low market share in fast growing markets consuming large amount of cash and
incurring losses. It has potential to gain market share and become a star, which would
later become cash cow. Question marks do not always succeed and even after large
amount of investments they struggle to gain market share and eventually become
dogs.
 37

STARS

Stars operate in high growth industries and maintain high market share. Stars
are both cash generators and cash users. They are the primary units in which the
company should invest its money, because stars are expected to become cash cows
and generate positive cash flows.

CASH COWS

Cash cows are the most profitable brands and should be ―milked‖ to provide as
much cash as possible. The cash gained from ―cows‖ should be invested into stars to
support their further growth. According to growth-share matrix, corporates should not
invest into cash cows to induce growth but only to support them so they can maintain
their current market share.

BUTTERFLY BABY INDUSTRIES

PREETHI

LAKSHMI
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For the BCG matrix I have compared the following companies

 PREETHI
 LAKSHMI
 BUTTERFLY
 BABY INDUSTRIES

1. PREETHI is the cash cow in the industry as it has been in operation for a lot of
years in this industry and has a wide range of home appliances and is leading in
sales thus it is making a lot of profits compared to other competitors.
2. LAKSHMI is also a cash cow in this comparison this company has been
operating in this industry for a lot of decades and focuses mainly on wet
grinders and has a wide range of products and is making good profits.
3. BUTTERFLY is a star in this comparison because the sales are low compared
to the cash cows but the sales figures are promising and has the potential to
increase sales and become a cash cow.
4. BABY INDUSTRIES is a question mark in this comparison because the sales
figures did not reach the expected target and due to lack of huge investments
the company is unable to compete with big manufacturers and might not
become highly profitable in the future.
 39

CHAPTER-5

SUMMARY
 40

5.1 FINDINGS

Working as an Internship for BABY INDUSTRIES has been a very fruitful and
enlightening experience that helped me face the practical working scenarios of the
corporate world. I am now clear with the roles and importance of training and
consultancy services for higher effectiveness for an individual and organization.
Strategic importance of brochures, slide presentations and of course the cold calls
done by me had improved my marketing skills. How to use promotion strategies to do
effective marketing is what I learnt during the training tenure. Based on my eight
week term as an intern, I realized that I was successful to gather a lot of significant
learning experiences which would be helpful in my future career. BABY
INDUSTRIES offered me ample space and opportunities, not only to learn but also to
exhibit my skills as the company representative. My contributions were well
recognized by the organization. I successfully completed all the assigned duties and
handed them over to the senior supervisor at the end of the internship with the best of
my knowledge.

 Diversified product range.

 Efficient and skilled labour.
 Good infrastructure facility.
 Continuous market research for new product development.
 Chance for more new product development.
 Wet grinder have good demand in the market which is favourable for the
company.
 Expanding the business is less risky.
 Has the potential to earn more profits.
 cost of raw materials are very high.
 Lack of up gradation in technology.
 High cost of production.
 location of the factory is not close to the raw materials suppliers.
 Tough competitors in the industry.
 Low quality of raw material.
 41

 Short material life span.

 Increase in price of raw materials.
 Attractive advertisements from competitors.
 less availability of service centres.
 consumes more power compared to competitors products.
 42

5.2 SUGGESTIONS

 To extend the marketing area of the product to increase sales.

 To concentrate more on services and maintenance of the products.
 New design of products can be developed.
 I suggest increasing the service centres in local areas.
 Much more energy efficient motors must be developed to cut the consumption
of electricity.
 First step to take increase the sales promotion of this grinder is to improve the
advertisement through TV ads.
 In order to gain the competitive edge over competitors, it has to make efforts to
improve the product features and quality.
 Invest in advanced technology for more efficiency in production.
 Increase the quality of the raw materials to increase the lifespan of the product.
 Find ways to reduce the price of raw materials and production cost.
 43

5.3 CONCLUSION

India is evolving with a greater speed and pace in order to acquire a

global recognition and many of the foreign companies are interested in investing in
India because of the raising Economy. This is proving to be a trait to the already
existed grinder companies in order to position themselves in this competitive market.
The study reveals that ,as being a finest grinder in its class and range in smooth
handling nature May gives the customers a feel of satisfaction but by viewing the
changing market strategies and changing customers perception towards grinder may
proving this baby industries grinders as An expensive grinder when compared with
other grinders of its range. The study also reveals that most of the baby industries
grinders customers are loyal towards the Grinders, but they have completion from the
close competitor ultra-grinders may also be Proving the price structure of a grinder is
being a main attribute of consideration among Customers.

This organizational study was conducted in the ―BABY INDUSTRIES‖ the

purpose of study is to understand about the functions of organization (BABY
INDUSTRIES) and also to analyse about the Strength, Weakness, Opportunity and
Threat of the organization. It was analysed carefully and the outcome of study is given
in form of Suggestion. This study helped in improving practical knowledge. The
organization study was beneficial as it helped to gain confidence and awareness. To
conclude that the study was useful to get the knowledge regarding the practical
application of theoretical aspects. It also helps to know about actual functioning of the
organization.
 44

6 BIBLIOGRAPHIES
 Human Resource & Personnel Management - Aswathappa K
 Production & Operations Management - Chary S. N

Web Sites:

 www.google.com

 www.wikipedia.com