CONTENTS

S.NO CONTENTS PAGE NO.

CHAPTER-I
INTRODUCTION
1.1 INTRODUCTION OF THE STUDY
1.2 OBJECTIVES OF THE STUDY
1.3 SCOPE OF THE STUDY 2-16
1 1.4 METHODOLOGY
1.5 LIMITATIONS OF THE STUDY
1.6 INDUSTRY PROFILE
1.7 COMPANY PROFILE
1.8 ORGANIZATION STRUCTURE
1.9 REVIEW OF LTERATURE
CHAPTER-II
2 17-43
FUNCTIONAL DEPARTMENTS
CHAPTER-III
ANALYSIS
3 3.1 SWOT ANALYSIS 44-49
3.2 PORTERS FIVE FORCE MODEL
CHAPTER-IV
FINDINGS, SUGGESTIONS AND
CONCLUSION
4 4.1 FINDING OF THE STUDY 50-53
4.2 SUGGESTIONS
4.3 CONCLUSION
4.4 BIBLIOGRAPHY

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 CHAPTER 1
INTRODUCTION

1.1. INTRODUCTION
Human beings are unable to fulfill their needs and wants alone, because any one of
the individuals lacks the strength, ability, time and potential. He has to get the corporation
of other person formed to seek certain goals. People having always formed organization to
compare their effort to accomplish their common goals.
The India n seafood industry is developed with near double digit positive level of
growth posted consistently year on year since the beginning of the decade. The growth of
Indian sea food industry across the decade is significant and second only China with
regards to expansion for Asia specific.
According to seafood industry the seafood industry market today is worth about Rs
100000crores and employs over three lack citizen. Hence the sea food industry has a
constituent of the Indian economy. The Indian seafood industry by and large still remains
fragmented and dominated by various traditional methods with excessive labor
deployment.
This is the study to examine the organization and functions of the various
department of SAFA ENTERPRISES PRIVATE LIMITED; Azhicode in thrissur district is
one of the seafood exporters in India. The study is focused on to understand how an
organization functioning day to day operations. I hope that this study may be helped me to
face the challenges lying ahead.
This study may also help the organization to understand the problems and weak
points that have been fazing by the organization in the current scenario. Since the study
that implemented from organization itself that might be helped the organization to viable in
the seafood industry.

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1.2. OBJECTIVES

Following are the main objectives of the study.

1. To study about the trends in exports industry.

2. To study about the general performance of the organization.
3. To know about the organization structure.
4. To learn the vision and mission of the organization.
5. To learn the strength and weakness of the company.

1.3. SCOPE OF THE STUDY

The scope of the study is to know about the functioning of the organization. The
study is use full in assessing quality and performance of the company. This study may help
the management to know about the strength and weakness of the organization. And also
the can find out where the organization would improve. SAFA Enterprises a name in the
world of exports by providing better performance in seafood exports.

1.4. METHODOLOGY

Methodology is the way to conduct the study. An important aspect of methodology

is data collecting. The study is made on the basis of primary and secondary data from
limited recourses.

1.4.1. PRIMARY DATA

Primary data were collected through direct observation. Another method used for
primary data is unstructured interview and personal discussion with officials and
department heads.

1.4.2. SECONDARY DATA.

Secondary data ware companies annual reports, magazines and etc. in order to
understand various policies and marketing aspect of the company both primary and
secondary data are used

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1.5. LIMITATIONS OF THE STUDY.

The main limitations are,

,
1. The study should finish in a limited period.
2. The officials of the company gave only less information because of their busy
work.
3. There is no uniformity in the comments of the workers.
4. There is no sufficient data to make inter firm comparison.

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1.6. INDUSTRY PROFILE
The Indian seafood industry is developed quickly, with near double digit positive
levels of growth posted consistently year on year since the beginning of the decade. With is
being propelled by the decision of the Indian government to provide a major impetus to
seafood exports

The seafood industry made a substantial progress during its 40 years of history.
Through the industry has in the past weathered many a crisis. It has been maintained its
position as a global player especially with regards to shrimp. Marine product has created a
sensation in the world market because of their health attributes.

Growth is a cherished cultural value. A growing company is known better and it’s
attracting the better management. It is the sources of the strength. In industries subject to
frequent change in technologies and external environment. Growth is necessary for
survive. Experts also summaries that often plan try to implement the growth strategy.
Which is not suitable for them? As a result, the firms either drop or change the strategy
midway, resulting into financial losses and confusion Preliminary literature survey has
revealed a gap in the research on growth strategies pursued by a company in the seafood
exports

This section presents an overview of the seafood sector, its major elements,
regulatory Framework, revenue trends, and employment base. More detailed analysis
follows in the remaining sections and appendices of the report.

1.6.1. The Seafood Business

To be viable and adapt to a changing business environment, an industry must know
what business it is in and who its real competitors are.

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1.6.2. Nature of the Business

The seafood business produces food for consumption by end consumers: retail,
food service (restaurant), and institutional. The demands and tastes of these end consumers
drive the entire industry. The seafood industry competes with other protein producers
including red and white meat and poultry, on a local, national, and international level. In
short, the industry must emphasize the food component of the term seafood and must think
globally.
That seafood is a food business must permeate the thinking and conduct of
industry.
Food businesses market rather than sell their products; sellers merely fill orders.
Marketers identify and stimulate consumer needs, develop products to meet these needs,
and establish efficient systems for delivery. Food businesses have long-term strategic
plans, a vision, and strong leadership. They cooperate on high-level policy issues through
cohesive industry associations that a unified voice to consumers, governments, and others.
As well, they constantly strive for production efficiencies through investments in new
technology and human resources. These characteristics and attitudes frame the competition
facing seafood industry.

1.6.3. Industry Elements

Seafood industry produces processes, and markets fish and shellfish into
Intermediate or finished food products for consumers. The industry involves several
linkages or phases of activity between the natural resource in its marine environment and
the final products available to consumers:

􀂃 Production – Fish and shellfish are harvested using a variety of nets, hooks and
lines, traps, diving techniques, or other gear. In addition, they are cultured from birth
through rearing and feeding to market size.

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 􀂃 Processing – Raw fish and shellfish reach commercial processors via delivery by
sea to processing plants, custom unloading at transshipment points, and trucking.
Processors transform the raw material into a variety of live, fresh whole, frozen whole,
fillet, steak, smoked, canned, roe, and other products.

􀂃 Distribution – Final processed products are delivered to consumers through

wholesale and retail food channels.
These three industry elements also exist for the food business in general.

1.6.4. Fish Harvesting

There are using vessels to catch the fish by modern and traditional way

1.6.5. Regulatory Environment

Registration Card (FRC) issued by DFO. The Canadian Coast Guard (CCG)
regulates The federal Department of Fisheries and Oceans (DFO) is constitutionally
responsible for the management of both coastal and inland fisheries. In non-tidal areas, the
Province of British Columbia, as the owner of the land, has jurisdiction over property and
civil Rights in fisheries. Some aspects of the management of non-tidal fisheries have been
delegated to the Province by the federal government under several Memoranda of
Understanding.

In contrast, in tidal waters, the absolute right to issue, suspend, cancel, and refuse
issuance or re-issuance of fishing licenses is at the sole discretion of the Canadian Minister
of Fisheries and Oceans. DFO also sets annual catch limits or quotas and regulates the
fisheries.

Almost all fisheries have limited numbers of licenses and participants. Some
fisheries operate under an individual quota (IQ) management system. For the majority,
licenses are attached to a specific vessel and specify the vessel’s overall allowable length
(OAL).

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 Licenses for competitive fisheries such as salmon permit access to the resource but
do not guarantee a specific catch amount. Licenses for IQ fisheries such as halibut allow
specific catch levels. Almost all licenses may be transferred. DFO Pacific Region has a
policy against licensing large combination harvester-processor vessels such as ground fish
freezer-trawlers.
Commercial fishermen on licensed fishing vessels must possess valid Fisher safety
equipment aboard fishing vessels. Transport Canada regulates the safety of .vessels and,
more recently, the certification of skippers to operate vessels

1.6.6. Industry Structure

Fish and shellfish products are sold in world markets where they comprise only a
small share of global supply and must compete with products from other countries’
fisheries, aquaculture products, and a wide variety of other protein sources such as poultry,
red meat, and soy protein. Since pricing is determined in these world markets, the revenues
of seafood products in any given year may not reflect actual production costs.
Consolidation and purchasing power of large big-box retailers such as Costco has
resulted in price reductions at the wholesale level. These price reductions have not
necessarily. As a result, provincial processors have little control over the prices of most of
their products. What consumers are willing to pay determines the prices distributors
receive. These, in turn, determine the prices for processors and hence harvesters. Thus,
fishermen receive “netback prices” determined by the expected prices of final consumer
products less the costs of intermediate distribution and processing. In this way, fishermen
bear much of the impacts resulting from changes in retail seafood prices. In recent years,
however, the increasing y been passed on to retail consumers.

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1.7. COMPANY PROFILE
The Indian seafood industry has made a substantial progress during its 40 years of
history. through the industry has in the recent past weathered many a crises. It has been
maintained its position as a global player especially with regards to shrimp. Marine product
has rein the sensation in the in the world market because of their greater or higher health
attributes. Seafood has been claimed one of the fastest moving commodity in the world
market.
With a total fisherman population of about 14.5million and such marine and inland
water recourses, fisheries and aquaculture forms in important secret with regards to
employment, livelihood and food industry. Fish product is also for a significant commodity
for overseas trade. During the past decade the Indian fishes and aquaculture has improved
in craft tackle and farming method. Creation of required harvest infrastructure has been
receiving due to attention and central and state governments. All these have been including
a study growth.

1.7.1. HISTORY
SAFA Enterprises is the seafood exporter which is an international company that
exporting (cutting fish and squid) to European countries, Hong Kong, Taiwan and Spain.
M/S SAFA enterprise is a partnership firm established in the year 2002. This is located at
azhicode village of trissure district. Around 200 people working here in two shift. Factory
having 67 cent of land .situated 2.5 kilometers from the munambam harbor .SAFA
enterpriser is a well-known merchant since 1998 and marketing in the name of “SAFE”.
One of the main objectives of this organization is to promote export trade in coastal areas
by providing mare employment opportunities to poorer section of the communities
There are mainly eight partners in the firm. Each partners having equal capital
partnership that is their investment is same and partnership percentage is 12.5 5 per
partners. Professionally qualified managers and techniques manage the day-to day affairs
of the organization. All the facilities are incorporated in the main unit itself. plant and
machineries are modernized as per ECC standard.

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1.7.2. OBJECTIVES OF THE ORGANIZATION
The fundamental objectives of the organization are to store marine product at
required temperature and the keep the freshness of the product and deliver according to the
different processor requirement. The primary objectives are to deliver the customers
seafood as close to the condition of its natural habitats. The company grew exponentially
in the last seven years and is one of the leading supplier of varieties of seafood to various
five star and supper luxurious hotels in India, and offering the outstanding service and
widest quality seafood at most competitive prices.

1.7.3. VISION
Their vision is to long lasting seafood industry by increasing the capability of the
for doing job and future in seafood industry .they also wants to contributes something to
the sustainability, profitability and safety and health of the seafood industry by enhancing
people individual capabilities through access to flexible learning pathways.

1.7.4. MISSION
Their mission embodies a perfect commitment to change. They adapt to the tides
of seafood industries, maintaining quality and service. The sources of their product s from
18 fishing harbors along both western and eastern cost which enables them maintain
supply throughout year of fresh and super quality seafood which ultimately improves their
values to their customers, suppliers and to their network.

1.7.5. QUALITY POLICY OF THE COMPANY

The company always tries to process and distributes a consistent safe, wholesome
and properly labeled product of desired uniform quality. In order to ensure these objectives
they are created separate cell known as HACCP team.
 The expert quality product as per buyers and importing countries specification.
 They believe in preventing quality complains rather than curing it.
 To reach the top level through technical innovations incorporating scientific
knowledge.

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  Their major product is cephalopods, crustaceans and fishes and they are maintaining in
good conditions because of their proximity to the harbour.

Their main product brands are SAFE and GRAND.

1.7.6. HACCP TEAM

The objective behind formulation of such a team is to develop a HACCP program

and its implementation. The team is multidisciplinary one, which got equal participation
from each section like top management, purchase department and production department,
quality control department and maintenance department, finance and personal department.
All of them are aware about the HACCP system.

The HACCP team gives more priority to product quality. For this purpose it has
quality control manager, production and laboratory technologist. Collection and evaluation
of samples of raw materials and finished products are done by the laboratory technologist.
He should ensure that whether the samples are based on the HACCP plan or not. The duty
of protection technologist is the online monitoring of product quality.

1.7.7 COMPANY PROFILE

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Name of the firm : M/S SAFA ENTERPRISES
Type of the firm : Partnership firm
Number of partners :8
Approval number : 746
Registration number : 2271/MPEDA/REGN/PP/CN/S-14/2004
Address : Azhicode, Trissure district
Type of business : Seafood Business
Tele number : 0480-2814468, 2819068
Fax number : 0480-2816488

PARTNER SHIP
P M. Abdul Jaleel Managing Partner
K A. kochu Mohammed Chief Executive
P M. Abdul Kareem Financial Controller
K A .Latheef Purchase Manager
P K. Abdul Jabbar Export Manager
K P. Sulaiman Partner
K K .Ismail Partner
P I .Mohammed Partner

1.8. ORGANIZATION STRUCTURE

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 Chart No III.1
MANAGING DIRECTOR

CHIEF EXECUTIVE

DEPARTMENTAL MANAGERS

ASSISTANT EXECUTIVES

FOREMAN

TECHNOLOGIST

SUPERVISOR

WORKERS

1.9. Organisation Structures

13
  
Organisational structure, according to a large extent researches, defines how
tasks are formally divided, grouped, and coordinated or controlled and basically serves
as contributory element of organisational performance (Robbins and Judge 2007, p.
478). Accordingly, the identification of organisational life is commonly achieved
through the study of structure. Understanding organisational structure boils down to the
knowledge of the concept of policies, prescriptions of authority, and hierarchies of
responsibility. Similarly termed as structural frameworks, these allocations of work roles
and administrative mechanisms allow organisations to conduct, coordinate, and control
their work activities (Rapert and Wren, 1998, p. 287). It is recognized that when
organisational strategy is not matched with the most appropriate structure and controls,
performance eventually declines (Jenster and Hussey 2001; Teece et al. 1997). 
According to Nicholl (2006) there importance of organisational structure is linked with
good governance as well as performance particularly in public organisations. Since
organisational structure specifies the firm’s formal reporting relationships, procedures,
control, and authority and decision-making processes (Keats and O’ Neill 2001;
Galbraith 1995), its development specially in relation to effectively supporting
organisational strategy is difficult due to the uncertainty about cause-effect relationships
in the dynamic and highly competitive global economy (Rindhova and Kotha 2001). But
when structural elements are properly aligned, such structure guarantees effective
completion of given organisational strategies (Covin et al. 2001).
There have been numerous studies that tackled the concept of organisational structures
including the works of Bhimani and Langfield-Smith (2007), DeGroot and Brownlee
(2006), Chen and Huang (2007), Cheng and group (2007), Kim (2007) and Tang and
colleagues (2006). All of these are to be reviewed in the following discussion.

1.9.2. Structure of the Organisation

Mintzberg (1979) introduced five (5) structural configurations ranging from a

‘simple structure’ to a divisionalised form. The so-called classifications of organisational
structures in different categories of organisations are the entrepreneurial start-up or
simple structure, machine bureaucracy, professional bureaucracy, divisionalised or

14
diversified form, and innovative or adhocracy. He suggested that, as organisations grow,
they undergo structural changes, for instance from the entrepreneurial to bureaucratic,
divisional and so on.

CHAPTER II

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 FUNCTIONAL DEPARTMENT
2.1. PRODUCTION DEPARTMENT
Production is the foundation on which every organization is built. Two manager are
functioned under production department. They are production managers and quality
control manager. The production manager playing very important role in designing,
planning and controlling the production and production system. The quality control
manager plays an impotent role for ensuring the quality of products.

DEPARTMENTAL STRUCTURE
Chart No III.2

MANAGING DIRECTOR

PRODUCTION MANAGER

FORMAN

PRODUCTION TECHNOLOGIST

WORKERS

2.1.1. FUNCTIONS OF PRODUCTION DEPARTMENT

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 Production department has the production manager and all the management
activities of production department are contracted by the production manager. Production
manager is responsible for the online verification quality and implementation of GMP and
SSOP.
The function of production manager is to ensuring the production of the company.
One of the most important of the production department is to control the temperature for
keeping the quality of the product.
ICE PLANT
The ice plant is incorporated to the main building of the plant itselt.The ice plant
has twelve tons production capacity. There are adequate monitoring and control measures
and accordingly appropriate records are provided.

2.1.2. ICE PRODUCTION

Ice plant with a block capacity of twelve tones is integrated to the processing
section. A flake Ice unit is 15 tones capacity is provided inside the plant. A stainless steel
tape is provide for collecting flake Ice .Treated water with chlorinated water is used for the
Ice production. The source of water used are same as the water used for fish processing
purpose.
Ice production area is a raised platform .The walls up to feet are tiled. The floor is
made of marble without any crevices. Well maintained Ice crushes are provided outside the
ice production area. One of the main advantages of ice production is that they are not need
to collect ice from outside sources for their operations.

2.1.3. SAFETY OF WATER FOR PROCESING ICE PRODUCTION.

17
 Water quality program evaluates the micro biological, chemical and physical
sources and in plant water by sample analysis an approved laboratory periodically.
Portable quality water is used for wall processing, Ice production, washing and
cleaning purpose. Source of water is borewell.This water is made free from bacterial
Hazards by treating with chlorine using an automatic chlorine dozer. It gets sufficient
contact time in a ground level tank and to overhead tanks. The chlorine level is checked in
every two hours intervals.

2.1.4. PRODUCTION AND PROCESS CONTROL

All operations are done in accordance with the lay down principles. Raw materials
are accepted if it is needs all the specifications. They have enough workers in each and
every section for the easy flow of materials without any process lagging. According to
their quality policy without backtracking .Sufficient quality of materials with in house time
and temperature control.

2.1.5. TEMPERATURE CONTROL

Raw materials are transferred to the factory in insulated vehicle below four degree
c at every step of processing. Excess raw materials if any are stored in the chilled room,
which is kept always below 4 degree c.Temperature of glaze water and wash water is
always maintained as per standard.
Freezing equipments are sufficiently powerful to achieve rapid reduction
temperature. so that the required core temperature of the frozen product is obtained within
the minimum period. The equipment is fitted with gauges to indicate temperature and
pressure.

2.1.6. FLOW OF WORK

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 Flow of work is unidirectional. So there is no back tracking and cross
contamination. The product flow prevents contamination of food through physical and
operational separation.
Raw material is received in a raised platform in the raw material receiving are
which is decided and transferred for re processing. the pre processed material is shifted to
the processing hall through chute where is processed and frozen. Packing is done in the
packaging area and second in cold stores.

2.1.7 WAREHOUSING AND DISTRIBUTION

This section deals with storage and distribution of raw material. Finished product,
ice, packing materials and chemicals in a manner to prevent condition, which may result in
the contamination of food. Raw materials stored in the chill room if necessary and are
distributed as per the requirement.
Required quantity of ice received from ice plant is crushed and supplied to the
processing in separated lidded as per the need. In addition to this flake, ice unit also
provided to the processing area.
Finished product is stored in the cold place maintain a temperature below-18 degree
c. final product is exported first in first out. And thus preventing the unnecessary storage.
Of frozen materials for longer period .packing materials are in locked rooms, which are
separated from food handling area and packing material room. Insulated vehicle are used
for both raw materials and the finished product. Vehicles are made in such a manner that it
is easy to clean and sanitize.

2.1.8. PRODUCTION OF SAFA ENTERPRISES

In SAFA enterprises, the most important production is seafood. Production of
seafood is mostly done for exporting. For exporting seafood is necessary to freezing the
product to keep the quality of the product. So for keeping the quality, they have another
production called ice production. For this has separate ice plant

2.1.9. SUMMARY OF WORKING OF SAFA ENTERPRISES

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 Following are the main function associated with processing of SAFA enterprises.

2.1.9.1. Raw Material Receiving

The company has a direct purchase system. Supervisor at the receiving centre
performs the oranoleptic specifications. The raw material procure from the landing centers
is transported to the pre-processing unit in insulated vehicles .the materials is unloaded into
the receiving area. The oranoleptical quantity and temperature is checked and recorded at
the time material receiving.

2.1.9.2 Designing And Washing

The received raw material is decided and washed in portable water which is
collected in tub .during this process temperature is controlled below 4 degree c.
2.1.9.3. Final Checking And Storing
Sorting is done remove non-conforming pieces. The temperature during the process
is controlled below 4 degree c.
2.1.9.4. Weighting And Glazing
The Washed material is spread on draining table to drain the water. After draining,
the product is weighted and given for setting
2.1.9.5. Setting In Trays
The weighted product is arranged on trays so as to get definite shape. Glaze water
is added before freezing
2.1.9.6. Freezing
The cleaned material is then taking for plate freezing. the freezing is carried out at -
40 degree c for 90 min
2.1.9.7. Packing And Labeling
The frozen are then arranged in corrugated master cartons and strapped. It done in
the packing room. The following information’s are marked on the master cartons.

2.1.9.7. Storing
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 The finished product is then stored at or below – degree in cold stores
2.1.9.8. Shipment
At the time of shipment container is brought to the factory and cartons are directly
suffered into precooked containers maintained at or below 18 degree c.
2.1.10 FACILTIES
 Plant and grounds.
 Plant and exterior.
 Plant and interior.
 Raw material receiving platform.
 Raw material receiving room.
 Chill storing facilities.
 Pre processing centre (PPC).
 Utensil washing area.
 Waste disposal room.
 Chill room.
 Flake ice receiving room.
 Processing centre.
 Packing room.
 Packing material store.
 Ante room and cold storage facilities.
 Inspection room.
 Chemical room facilities.
 Machine room.
 Lighting facilities.
 Ventilation and air flow.
 Drainage facilities.
 Electrical wiring and fittings.
 Rest room and change room.
 Laboratory.
 Laundry facility.
 Vehicle washing area.
 Box washing area.
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  Generator room.
 Oil storage.
 Sanitary operation.
 Equipment and utensils such as freezing.
 Pest control.
 Sanitation and food control surface.
 Water supply.
 Sewage disposal.
 Warehousing facilities.

2.1.11. PRODUCTING DESCRIPTION

Source: - sea catches and wild catches.
Intended use:-to be cooked before consumption.
Type of packing:-5*4 kg/10*2kg/6*2 kg.
Freezing:-Freezing is done at -40 degree c for 90 mins or -40 degree c for 4 hours.
Storing and distribution:-At or below -18 degree c.
Shelf life: - one year or two years.

2.2. QUALITY DEPARTMENT

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 The quality department is controlled by quality control manager. He is
responsible for the verification of goods manufacturing practices and its sanitation standard
operating procedure as per HACCP plan.

2.2.1DEPARTMENTAL STRUCTURE
Chart No III.3

MANAGING DIRECTOR

QUALITY MANAGER

FOREMAN

LAB TECTNOLOGIST

SUPERVISOR

WORKERS

2.2.2. GOOD MANUFACTURING PRACTICE

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 GMP Are procedure for determining whether the facilities methods practices and
controls used to process fish and fishery products are safe and whether these products have
been processed under sanitary conditions. Each employee has a health card which is under
custody of quality control head.
Quality control personal are trained in all aspect of safety and quality control in
reputed institutions. The training in personal hygienic handling of food is provided to all
people who handle food products. In addition to this implants training is given to all
employees by the QC staffs.
All the session have an adequate program to monitor and control all elements in
each section and maintain appropriate reports.Buliding are permanently built to afford
protection from environmental conditions and of sufficient size for the work to be carried
out under the hygienic condition.

2.2.2.1 SAFETY OF PRODUCTS

Adequate lighting facilities provided in all ideas in to the interior of the plant.
Lights are properly covered. For the protection of food from pesticide, lubricant are stored.
Safety type like fixtures is used in processing and packaging area. Pesticides and rodent
ides used are approved by the relevant authority. Fly catcher is a facility which is used for
the product safety.

2.2.3. SANITATION STANDERD OPERATING PROCEDURE (SSOP)

Factory building structure and layout, its proper upkeep and maintenance is a
sanitary condition for product safety and quantity s called SSOP.
SSOP procedures used by the food processing firm to help accomplish the overall
goals of GMPs in the production of food.
SSOP describe a particular set of objectives associated with sanitary handling of
food and cleanness of plant environment and activities conducted to meet them. As our
SSOP are well designed, fully and effectively implemented they are valuable in controlling
hazards.
2.2.4. SAFETY OF WATER FOR PROCESSING AND ICE
PRODUCTION
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 > WATER TREATMENT
> CLEANING FECILITY

2.2.5. RESPONSIBILITY
sanitation supervisors is the responsible person for checking the cleanness of the
water tanks .quality control technologist will do micro biological analysis of water and ice
samples and records.
2.2.6. ICE PLANT
> Ice production.
> Cleaning and disinfection.
> Pest control.
> Maintenance.
> Hand washing and sanitizing facilities.

Production supervisor inspects conditions and cleanliness of the food contact

surfaces and recruiters and it is verified by technologies.
Production supervisor monitors the conditions and cleanness of workers outer
garment before operation and after each break. Correction, if any are done
immediately.cleanlinnes of Utensil is further verified by drawing swab samples from
utensils

2.2.7. RECORDS
> Daily sensation checklist
> Swap analysis report
> Workers hygiene registers

Production supervisors inspect the hand washing facilities and check hand sanitizer
and foot dip chlorine strength daily before operations and in every 2 hours interval during
production. Workers Hygiene is further by drawing swab samples from workers hand.
Conditions and cleanliness of toilets restrooms and changing rooms are monitored by
sanitation supervisors.
2.2.8. INSPECTION PROCEDURE

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 Three are mainly two kinds of inspection procedure. They are done for both quality
and they are the following.

 bacteriological analysis (for quality)

 bacteriological specification( for quantity)

Bacteriological analysis is done for checking the quality of product, by testing the
quality by microbiologist bacteriological specification is done for checking the quantity of
product.

2.2.9. ORGANIZATION INSPECTION PROCEDURE

Each day’s production’ is inspected on the next day as per sample scale.

2.2.10. RECORD KEEPING PROCEDURE

Record keeping is a effective tool for built control overall processing activities
.records pertaining to HACCP is maintained by the quality control managers. And other is
maintained in respective sector. All records are maintains for a period of 2 years from the
month of production.

2.3 PURCHASE DEPARTMENT

26
 Consider SAFA enterprises purchase department plays an important and the best
department of the company. This department plays such a way to purchasing raw
materials, and supplies it to the necessary unit. This is the department headed by the
purchase manager under him purchase executive, store keeper and workers. Consider the
SAFE enterprise the decision relating to purchase department is very crucial because the
raw materials like fishes are very much departments up on its availability.

2.3.1 DEPARTMENTAL STRUCTURE

Chart No III.4

MANAGING DIRECTOR
↓
PURCHASE MANAGER
↓
PURCHASE EXICUTIVE
↓
STORE KEEPER
↓
WORKERS

2.3.2. RAW MATERIAL RECEIVING PLATFORM

27
 The unloading bay is the raised platform with side and with sides and top sufficient
protected to prevent contamination while unloading the raw materials. Air curtains are
provided alone the door to prevent entry of flies

2.3.3. RAW MATERIAL RECEIVING ROOM

Raw material receiving room is sufficiently separated from the processing hall to
prevent contamination

2.3.4. CHILL STORING FECILITIES

The room is equipped with machineries for maintaining the temperature below 4
degree c. temperature gauge is installed for monitoring the temperature

2.3.5. STORAGE AND DISTRIBUTION

It is arranged to storage of raw material and chemicals in a manner to prevent
condition. Which may result the contamination of food? Raw materials are storage blow 4
degree c?

2.3.6. PURCHASE PROCEDURE

Following are the important procedure regarding the purchase system of raw
materials.

 To make purchase order to vendors

 To receive purchase requisition from store of every division and its unit

 To collect delivery Chelan given by the vendors to the store

 To receive two copies of invoice from vendors and send invoice copy to finance
department
 To get material inwards note from stores of the company to them

28
  To order the finance department to making payment to the vendors based on
delivery notes

2.3.7. DOCUMENTS MAINTAINED BY THE PURCHASE

DEPARTMENT

 Purchase requisition

 Material inward notes

 Purchase order

 Purchase order

 Purchase order register

 Delivery notes

 Credit bill for non-payment of goods

2.4. HUMAN RESOURSES DEPARTMENT

29
 Human resources department is that aspects of management having its goals the
effective utilization of the labor recourses of the organization. Personal manager control all
the management activities of the human recourses department
Human beings are the life blood of the firm. Without human being nothing is
possible. Among a fact of production” men” has given the most importance. SAFA
enterprises realized this factor and there for they kept a separate department for human
welfare in the human resources department. Managing director directly owns the personal
department.

2.4.1. DEPARTMENT STRUCTURE

Chart No III.5

MANAGING DIRECTOR
↓
HUMAN RESOURCE MANAGER

↓
HUMAN RESOURSES
ASSISTANT
↓
SUPERVISORS
↓
WORKERS

2.4.2. OBJECTIVES OF HUMAN RESOYRSES DEPARTMENT

30
  Maintaining employees health

 Maintaining employees welfare activities

 Train the employees

 Procurement and maintenance advocate work force

 Maintaining good relation with the employees

2.4.5. CONTROLL OF EMPLOYEES HEALTH

Ongoing training in all aspects in all aspects of quality control and hygienic
practices are given to all the workers who handle fishery products.
Persons suffering from continue diseases, skin infection, open wound etc are not
permitted to come in the working area. People with contagious disease or from such any
medical background have to responsible to report to the responsible person. After the cure
he or she has to submit the medical reports also. Then only they can able to rejoining to the
work. And all the new recruited persons have to submit the medical check up results
The medical checkup has been implementing yearly. And also by the help of
medical authority the employees are giving the vaccination for typhoid and tetanus. Each
employees has a health card which under the custody of q.c head
In case of health problem, the workers are instructed to undergo treatment and will
be allowed to work only after obtaining fitness certificate from the medical practitioner.
The workers are instructed to report if only one in their hose and or near by area effected
with any contagious diseases like cholera, dysentery and typhoid.

2.4.6. EDUCATION AND TRINING PROGRAM

31
 Human resources personal are trained on all aspect of food safety and quality
control in reputed institution. Training in personal hygiene and the hygienic handling of
food is provided to all persons who handle the food products. In addition to this in-plant,
training is also giving to employees by assistant staff. Employee’s personal hygiene is
checked by supervisors in each section.

2.4.7. PERSONNEL HYGIENE

All employees are provided with uniform and for headgears. The employees
wearing the aprons, hairnet, mouth mask, and gum boots, are applied by the company
before entering the food processing area. The employees are trained personal hygiene
aspects by the assistant staff. Supervisors used to check each employees personal hygiene.
Hand clips and foot clips are providing before entering the food process area.
They are trained not to use jewelers, eatables, nail polish, or any other cosmetics in
food handling area. They are trained to wash their hands at least every time work is
resumed. Smoking, drinking, eating in food handling area is prohibited. The employees
with contagious diseases are not allowed to in to the food handling area. They are given
medical checkup yearly and health hazards are maintaining
2.4.8. NUMBER OF TRADE UNION
There is any trade union or any other association working in the organization
because company treats the employees such a manner.

2.4.9. BENAFITS GIVEN TO THE EMPLOYEES

 Dearness allowance.

 House rent allowance.

 Washing allowance.

 Medical allowance.

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  Shift allowance

 Bonus.

 Food allowance

 Overtime allowance

2.4.10. HEALTH AND SAFTY MESURES

 Clean lines.

 Proper ventilation and lighting facilities.

 Provide headgears, mouth mask, boots, gloves etc.

 Drinking water.

 Disposal of waste and effluents.

2.4.11. GRIVENCES
The employees are very much satisfied in there job. They are fully concentrated
with their job in the organization. Company is provided very excellent facilities,
motivation, congenial working condition and employees are well paid. They are very much
satisfied with their job

2.4.12. FACILITIES FOR THE EMPLOYEES

33
  Toilet facilities.

 Hand washing facilities.

 Hand washing hand sanitizing facilities.

2.4.13. RECORDES

 Chlorination records.

 Daily sanitation registers.

 Maintenance registers.

Employee’s street clothes are not allowed in the food handling area. They are
provided with uniform dresses including aprons, hairnets, headgears, mouth mask and gum
boons.
Production supervisor monitor the condition and cleanliness of workers outer
garments before operations of each break.

2.4.15. OTHER RECORDS

 Daily sanitation check list.

 Swap analysis reports.

 Workers hygiene registers.

2.5. MARKETTING DEPARTMENT

Marketing department is an interacting business activities design to plan promotes
and distributes the product to the existing and potential customers. Marketing manager
34
heads this department. Is department mainly functioning two activities those are sale and
distribution and exporting. The firm has well efficient marketing executives and well
marketing staffs under the marketing department and has strong distribution channel
2.5.1. DEPARTMENT STRUCTURE
Chart No III.6

MANAGING DIRECTOR

MARKETING MANAGER

MARKETING EXECUTIVE

MARKETING STAFFS

2.5.2. FUNCTIONS OF MARKETING DEPARTMENT

 Determining the marketing goals to be achieved.
 Formulation of marketing plans.
 Formulation of marketing policies.
 Formulation of marketing procedures.

35
  Marketing analysis to improve sales.
 Proper control and co-ordination of overall marketing functions.
 Determination of cost desirable channels of distribution.
 Organizing the marketing function and marketing mix.

2.5.6. MARKETING DEPARTMENT RESPONSIBILITIES

 To generate business through employees.
 To handle customer complaint.
 To arrange the dispatch of materials.
 To plan marketing promotional activities.
 To process the order.
 To arrange for collection of payment.

2.5.7. STORAGE AND DISTRIBUTION

This section deals with storage of finished products, ice packing materials and
chemicals in a manner to prevent conditions, which may result in the contamination of
food.
Required quality of ice received from ice plant is crushed and supplied to the
processing in separate lidded boxes as per need.
In addition to this flake ice unit is also provided in the processing area. Finished
products are stored in cold store maintained at temperature below 18 degree celcious.
Final product is exported in first in first out basis and thus preventing unnecessary
storage of frozen materials for long period. House stuffing is done through the shipment
chute provided at the anteroom directly to refrigerated containers.

Packing materials are stored in separate rooms. They are neatly stacked to avoid
damage and contamination. Packing materials store opens to the packing room so is easily
accessible.
Chemicals are storing with locking facility, which is separated from food handling
area and packing materials room. Chemicals are dispersed and handled only by authorized
and properly trained person.

36
2.5.8. EXPORTS
The company generates substantial portion of its business from its export
marketing. The company was focusing on food industry and covers exporting its products
to various countries because company understood the marketability of its product are better
in human consumption and value added products.
The company has targeted new customer in developing tailor made and customer
specific product.
The export sale contribution between 25-30percentageof the total company sales of
SAFA Enterprises products are exported to various countries.

2.5.9. QUALITY POLICIES

 Customer satisfaction.
 Prompt delivery.

2.5.10. SALES AND DISTRIBUTION

Sales management is an integral subsystem of marketing management. It translates
the marketing plan into marketing performances. Sales management is hence described as
the muscle behind marketing management.
For the smooth functioning of the sales activities, they appoint a person known as
sales manager. To reduce the workload of the sales manager the firm appoints sales
executives under him.

37
 CHART NO III.7
Distribution Channel

Dealers Wholesalers

Retailers Wholesalers User

User Retailers

User

2.5.11. FUTURE MARKET TRENDS AND PROSPECTUS

The worldwide demand for natural seafood has grown significantly during the
year 2005, fetching increased price. The demand for the year ahead is expected to be
positive.
The company is actively trying to take the advantage of the demand potential by
increasing the production and productivity. The newly replanted area, which will start
yielding in the year ahead, is expected to improve the profitability of the company in
future.

2.6. FINANCE DEPARTMENT

The ambitious plan of a business man would remain mere dreams unless adequate
money is available to convert them into reality. Financial function calls for skilful planning
and control of various financial activities.
The main function of this department includes the receipt and payment of cash
settlement of account paper custody and safeguards of important and valuable document.

38
 The other functions are the financial planning and also analyzing company’s
current performance and inform the performance to the necessary department. For the
effective functioning of an organization the primary necessity needed is adequate finance.
Proper allocation of finance at right time is necessary for the achievement of
company goals and objectives.
The firm SAFA enterprises have a finance department, which does the jobs for
arranging for the funds to meet the working capital requirements to meet their daily
requirement. The department is headed by finance manager under have accountants and
staffs relating to accounting functioning.

2.6.1. FUNCTIONS OF FINANCE DEPARTMENT

 To arrange fund for their working.

 Financial analysis, planning and controlling of finance.

 Management of current assets.

 Identification of source and use of funds.

 Preparation of financial statement.

 To submit the application to banks in the weeks before the commencement of

season.

2.6.2. SOURCES OF FINANCE

The firm SAFA enterprises contributes their fund from banks and financial
institution. they are raise from the financial institution such as ICICI and HDFC and bank
like south Indian bank, federal bank. They also find finance from the plaguing back of
profit

39
2.6.3. RECORDS MAINTAINING

The company is computerized and it all transaction is entered through computers

2.6.4. DEPARTMENTAL STRUCTURE

Chart No III.8

MANAGING DIRCTER

FINANCE MANAGER

ACCOUTENT

STAFF

FINANCIAL ASSISSTANT

2.6.5. PREPARATION OF FINANCIAL STATEMENT

One of the important of the department is the preparation of financial statement in a

periodic basis and interpretation of the statement. This is quite use full for the management
in insuring the proper control of the performance of the company and also frame up the
appropriate policy frame work. The finance department preparing following statement:-

40
  profit and loss account

 balance sheet

 fund flow statement

2.6.7. ACCOUNTS FUNCTION

From the purchase department a copy of purchase order is given to the accountings
department. When the material has been delivered MIN is given to the account section.
According to the payment to the balance sheet is automatically prepared. If the above term
is order. MIN and bills are prepared in the sales terms invoice is raised according to the
nature of the payment. These are the entered by the accounting section. The account
prepares general journal voucher, ledger debit advise, credit advise, debit note and credit
note. The main job of the accountant is to record all the daily transaction of the SAFA
enterprises

2.6.8. METHODS OF THE ACCOUNTING

1. Basic preparation of financial statement

a. The assess follow mercantile system of the accounting in the preparation of the
book of accounting
b. The financial statement has been prepared under the historical cost convention in
accordance with the generally accepted accounting principles.

2. Fixed asset :- fixed asset are stated at cost less depreciation

41
 3. Depreciation :- it has been calculated on written down value method as
per the income tax act 1961.

4. Inventories :- finished product are valued at cost price as certified by

the partners

5. Income recognition :- all revenue is recognized on accrual value

6. Balance with debtors, creditors ,secured loan and un secured loan, are subject to
confirmation

7. There is no difference between accounting income and taxable income and hence
no provision has credited for different tax

8. Foreign currency transaction:-

a. transaction denominated in foreign currencies are recorded at the exchange

rate prevailing at the rate of transaction
b. the exchange difference arising on transaction is in the revenue account
c. the assessee has no foreign currencies transaction for fixed asset

CHAPTER III
ANALYSIS

3.1. SWOT ANALYSIS

3.1.1. STRENGTHS

 Relatively healthy fish production and natural environment

 Near shore fleet allows quality fish to be landed.
 Entrepreneurial spirit.
42
  Several strong, effective industry associations.
 Selective fishing practices.
 Relatively clear water and environment relative to lower 48 competitive.
 Codes of practices developed by and with the co-operation of industry.
 Good backward linking and forward linkages of most supplies and services.
 Good quality reputation
 Top tier seafood alliances industry association
 Reasonable daily and bag possession limits.

3.1.2. WEAKNESSES
 High labor and other costs, lack of economies of scale low production
 Poor market for some species
 Ready to attract crew labor due to inadequate financial rewards.
 Products left in the store because of lack of buyers in some cases
 Limited technology transfer
 Environmental opposition, poor public image, mixed public support
 Lack of co-operation between wild and farmed seafood sectors
 Small size of seafood processors
 Lack of knowledge education as to angling opportunities
 Declining resident participation
 Inadequate catch monitoring
 Poor market and economic data on the industry

3.1.3 OPPORTUNITIES
 Fisheries management changes to meet market needs
 Improves productivity or consolidation from shellfish tenures
 Enhance stock and apply selected fishing
 Improve catch monitoring
 Value chain round table for seafood
 Procedure for high value processed niche products
 Increased capacity for environment research and monitoring in the rural areas
 Increases sales to the domestic market
43
3.1.4 THREATS
 Potential mid season regularly changes including closure
 Potential resources declining due to climate change, population and urban
encroachment
 Aboriginal land claims process and associated uncertainty
 Increase in non tariff trade barriers
 Continued lack of perspectives any resource management decision
 Adoption of the precautionary principles rather than the precautionary approach to
resource management
 Lack of public and community support for the commercial fishery
 Public perception of food safety issue

3.2. PORTERS FIVE FORCE MODEL by the Michel.E. Porter

Porters five force model ids the frame work for the industry analysis and business
strategy development developed by Michal. porter of the Harvard business school in
1970.it uses concept developed in industrial or generation economics to derive five force
which determine the competitive intensity and the profitability therefore attractive of the
market. attractiveness in this context refers to the overall industry .an ‘unattractiveness’
industry is one where the combination of the forces acts to drive down overall profitability
Porters ruffed this model to these forces as the micro environment. To contract
with the more general term. macro environment. To they consist of these forces close to a

44
company that affects its ability to serve customers and make profit. A change in any of this
force normally requires a company to re- assess the market place. The overall industry
attractiveness does not imply that every firm of the industry return the same profitability.
As an industry, profitability is low and yet individual companies, by applying unique
business models have been able to make a return in excess of the industry average
It is using porters five force model frame work when making a qualitative
evaluation of a firm strategic position. However foremost consul ties the frame work only
starting point or check list they might use. Like all general frame work, a analysis that uses
it to the exclusion of specifics about a particular situation is considered naive.
Porters five force model include three forces from horizontal competition. threat of
substitute product, the threat of established rivals, threat of new entrance and two forces
from vertical competition: the bargaining power of the suppliers and the bargaining power
of the buyers.
According to porters five force model should be used at the industry level. It is not
designed to be used at the industry group or industry level. An industry is defined as the
lower, more basic level: in market in which closely related product or services to the
buyers. The firm can be compete in a in a single industry should develop .at a minimum
five force model in its industry .the first impotent that facing by the industry is the
selection of the industry in which company should compete ;and each line of the business
should develop its own , industry specific ,five force analysis. The average global 1000
companies competes in approximately in 52 industries.

3.2.1. THE FIVE FORCE MODEL

 Threat of substitute product.

 The threat of the entries of the new companies
 The intensity of competitive rivalry
 The bargaining power of the customers
 The bargaining power of the suppliers

3.2.1.1. The Threat of The Substitute Product

45
 The existence of the close substitute product increase the propensity of customers
to switch to alternative in responds to price increases (high elasticity of the demand) the
substitute of the competitor is the threat. but design, price , high quality and product
differentiation are some advantage of SAFA enterprises ,this advantage helps them.

 Innovative design of the packaging of the company somehow reduce buyer’s

propensity to substitute
 Relative price and high-quality products provide advantage performance of the
substitute to the company

3.2.1.2. The Threat of The Entry Of New Competitors

The profitable market that yields high return will draw the firm. this results in many
new entrance, which will effectively decrease profitability. unless the entry of the new
firms can be blocked by incompact. The profit rate will fall towards a competitive
level(perfect competition)

 The existence of barriers to entry (patent right etc) SAFA enterprises have
innovative product which cannot be manufactured by other companies
 SAFA enterprises has different product with brand name.
 The company is working with huge working capital in investment’s a new comer
needed a huge investment. So threat of new entrance is nominal

3.2.1.3. The Intensity of Compitative Rivalry

> In the case of SAFA number of competitive is minimum

> Industry growth is higher compare to other competitors

> SAFA enterprise full filing the social commitment

>The company having good advantages by continues improvement

Foremost industries, this is the major department of the competitiveness of the

industry.
46
 Some times company fight aggressively and sometimes te rivalry taking a non price
demotions such as innovation marketing etc.

3.2.1.4. The Bargaining Power of Customers

The bargaining power of the customer is a important aspects in marketing it is the

ability of the customers to put the firm under the pressure and it is also effect customers
sensitivity to price change.

> Bulk purchase helps the companies buyers in which results in cost and price .

> Buyers information availability.

> Availability of the existing substitute product.

> Differential advantages of industry product.

3.2.1.5. The Bargaining Power Of Suppliers

Suppliers of raw material, components, labor, and services to the firm can be a
source of power over firm, the suppliers may refuse to work with the firm. Or E.G charge
excessively high price for unique resources.

> In SAFA there are some standard fixed for suppliers of the raw materials.

> Degree of differentiation of input other advantages of the company.

> Cost of input relative to selling price of the product and the quality.

47
 CHAPTER IV
FINDINGS, SUGGESTIONS AND CONCLUSSIONS

4.1. FINDINGS

 There are number of departments for different functions

 Labor relations are smooth and labor problems are minimal
 Women are also working in the company
 Good co-operation for each staff and workers
48
  Protect food materials from all the damages by ensuring pest control
 Provide uniform for all workers
 Proper treatment of water and proper temperature to frozen to the materials
 Rest rooms provided for workers
 Wages or salary paid at fixed rate of every month shifts are provided to the workers
 No trade unions are established in the company
 The company uses highly protected equipment for their processing
 Proper control of food materials
 Skilled lab technologies
 Company has its own quality policies to maintain the quality of product
 The company has the most modern machineries for their operation
 Company has a good recruitment and selection policies
 The company has a good financial position

4.2. SUGGESTION
 Proper control measures should take to ensure the increase in proper with increase
in sales
 Absorb new technology to achieve good result
 Establish a trade union to protect the employee’s satisfaction
 The grievances if the employees are to be solved at a time
 Cost of production has to be reduced by using proper method of production
 Better employer and employee relationship must be developed
 Check the quality of the product everyday
 Maintaining a good relationship with the customers

49
  Improve infrastructure facilities to keep the privacy of each department
 Employees must be provided with proper training as and when needed
 The organization department function should be specified and structure should be
maintained
 An efficient system of working capital management should be established

4.3. CONCLUSION
The SAFA enterprises are a well reputed company, which is offered a wild range
of products. It is having a great market in India and also the outside. It is having a very
good organization structure.
It is having a well efficient and sophisticated administrative system. All the
products offered by the firm are keeping up high standard and quality.
The study on the functioning of various departments SAFA has provided a lot of
variable information for critical analysis and interpreting the numerical facts in a good
manner.

50
 The company is in good short-term solvency position. They can get more working
capital by various sources. The company can achieve high growth as a part of new
expansion program
The present study entitles ‘’A study on functioning of various department of SAFA
enterprises pvt ltd’’ has thrown light on the various aspects of the company. There have
been certain drawbacks. Which have been studies at appropriate places, and suggestions
have also been made.
It can be helped that present study may serve the purpose to some extent. It is not a
great extent. The firm is having very good financial structure and performance.
To conclude the organization study had enabled to get knowledge regarding the
real working of the organization

4.4. BIBLIOGRAPHY

WEBSITES

WWW.GOOGLE.COM
WWW.wikipedia .com
WWW.seafoodindustry.com
JOURNALS
Company historical report
51
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importance of financial and non-financial information in strategy development and
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DeGroot, T & Brownlee, AL (October 2006) ‘Effect of department structure on the

organizational citizenship behavior–department effectiveness relationship’, Journal of
Business Research, 59: 10-11, 1116-1123

Chen, C & Huang, J (April 2007) ‘How organizational climate and structure affect
knowledge management—The social interaction perspective’, International Journal of
Information Management, 27: 2, 104-118

Cheng, TCE, Lai, K, Koufteros, X, & McDermott C (April 2007) ‘Special issue on
organizational structure, culture and operations management: An empirical missing
link’, International Journal of Production Economics, 106: 2, 321-322

Kim, SW (April 2007) ‘Organizational structures and the performance of supply

chain management’, International Journal of Production Economics, 106: 2, A 323-345

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