1

INDEX

2
 CHAPTER 1 - COMPANY PROFILE

INDUSTRY PROLIE
(COFFEE AND TEA INDUSTRY)
Companies in this industry sell coffee and tea powder packs to consumer. There major
competitors are Rossell India, Bansions tea, James warren tea, tata coffee, ccl products and
etc.

In India there are more than 50 coffee and tea producers in the industry. Coffee, in the
southern states of India, is deeply rooted in the local culture. It is so interwoven in the lives of
south Indians, that is not surprising to hear coffee being mentioned several times through the
day, in a variety of contexts. It is also customary to offer a visitor or guest a fine cup of
perfectly-made filter coffee.

COMPANY PROFILE

FIG. 1 SUMA COFFEE WORKS LOGO

(SUMA COFFEE WORKS)

In the year 1964, the demand for freshly grounded coffee powder was increasing by the day.
Mr. M. K. Ramaswamy, a young man in his twenties, founded Suma Coffee Woks alone, he
managed to roast, grind, pack and sell his beans, all within a single day. As his customers
increased, he secured their loyalty by cycling and delivering fresh ground coffee to their
doorsteps. He worked through the day and often finished his last deliveries well into the
night. His reputation grew and soon he was making his deliveries on a vespa scooter. For
many south Bangaloreans this coffee became a ritual. His boutique brand grew over the years
and survived the entry of several larger packaged brands of coffee
Today, Suma coffee works is run by his sons in the form of a company and continues to
remain one of the best filter coffee powders available in Bangalore.

3
 VISION
 To inspire people to a daily routine with grounded powder
 The only thing we love more then coffee is our people
 To be “SIMPLY THE BEST”

MISSION
 To break the fast with brisk of flavor
 To create a spirit within our company that inspires our team members to provide our
customers with a total quality experience.

OBJECTIVES

GOALS
 The goals of the business are to provide a substantial income and to create a business
and working environment where both the customer and employee are treated with
dignity and respect.
 Maintain a high standard of food quality and service
 Ensure a friendly comfortable atmosphere
 Place monthly ads in neighborhood publications
 Distribute monthly fliers to neighborhood, businesses
 Maintain and use a customer mailing list

The specific goals of the business are:

 Profit
 Clientele - create a base clientele of persons who are loyal to the business.
 Employees - Competent employees who are committed and loyal
 Goodwill – to recreate a reputation for Suma Coffee Works, when there is a mention
of coffee powder there must remember our Suma coffee works.

STRATEGY
 Selling coffee powder at a high quality
 Delivery service all over India and to other countries
 Use of social media for marketing

4
  Social responsibility
 To use social service to increase the goodwill of the company

POLICIES AND PROCEDURES

 Provide initial training for all employees

 Hold monthly employee meetings
 Have an open door policy for employee suggestions and concerns
 Implement the use of the Business Plan systems
 Have clearly defined job descriptions and duties
 Have an employee policy handbook
 Do employee reviews every six months
 Customer suggestion box
 Design service area to be efficient

MILESTONES

Started from local supply it shifted to all city Bengaluru supply in the year 1970,
Then it has started its supply internationally in different countries as follows: -
 U.K.
 U.S.A
Diversification of product into TEA and OIL.

PRODUCT PROFILE

FIG. 2 SUMA COFFEE WORKS PRODUCT

PEABERRY (ARABICA PLANTATION PEABERRY)

5
 ₹620.00 – ₹680.00
PEABERY BLEND (COMBINATION OF ARABICA PLANTATION)
₹580.00 – ₹640.00
SUMA SPECIAL (COMBINATION OF ARABICA PLANTATION)
₹600.00 – ₹660.00
SUMA SUPER (COMBINATION OF ARABICA PLANTATION GRADES AND
ROBOUSTA)
₹560.00
ASSAM TEA
₹320.00

SUPPLIERS’ PROFILE 

As mentioned by the employee of Suma coffee work

Supplied to
 “All leading supermarket in bangalore.
1. Mariya mart
2. Big bazaar
3. Aadishwar supermarket
4. M.K. supermarket
5. Benison super market
6. And others.”
 “Amazon international”

Supplied from

 “Directly from plantation farmers ( Hasan ,Coorg ,chikkamagaluru ) within

Karnataka.”

BIBILOGRAPHY

 Company website
 Company employee.

6
 CHAPTER 2 - ORGANISATIONAL STRUCTURE

MEANING OF ORGANISATIONAL STRUCTURE: -

Organization as a structure is the system of arrangements and the pattern of network relations
in an enterprise between various positions. It is characterized by activity-authority
relationship. The structure is not accidental. The key executives determine the structure,
creating relationships.
The organizational structure is a means to an end, that is, business performance and results.
Hence, it should be so designed as to help accomplish business objectives. Peter F. Drucker
(1954) suggested the following three ways to determine the kind of structure needed to attain
a given set of objectives:
(i) Activity analysis
(ii) Decision analysis
(iii) Relation analysis
Drucker has criticized the traditional approach of classifying business functions into the
categories of production, marketing, etc. He has emphasized the need for analysing each of
these functions into so many activities and knowing their contribution in attaining the
objectives of the business.

TYPES OF ORGANISATIONAL STRUCTURE

1. HIERARCHICAL ORG STRUCTURE: -

Fig3 hierarchical org structure chart

7
The pyramid-shaped organizational chart we referred to earlier is known as a hierarchical org
chart. It is the most common type of organizational structure—the chain of command goes
from the top (e.g., the CEO or manager) down (e.g., entry-level and low-level employees),
and each employee has a supervisor.

2. FUNCTIONAL ORG STRUCTURE: -

Fig4 functional org structure chart

Similar to a hierarchical organizational structure, a functional org structure starts with

positions with the highest levels of responsibility at the top and goes down from there.
Primarily, though, employees are organized according to their specific skills and their
corresponding function in the company. Each separate department is managed independently.

3. HORIZONTAL OR FLAT ORG STRUCTURE: -

Fig5 flat org structure chart

A horizontal or flat organizational structure fits companies with few levels between upper
management and staff-level employees. Many start-up businesses use a horizontal org
structure before they grow large enough to build out different departments, but some
organizations maintain this structure since it encourages less supervision and more
involvement from all employees
4. DIVISIONAL ORG STRUCTURE

8
 Fig6 divisional org structure chart

In divisional organizational structures, a company’s divisions have control over their own
resources, essentially operating like their own company within the larger organization. Each
division can have its own marketing team, sales team, IT team, etc. This structure works well
for large companies as it empowers the various divisions to make decisions without everyone
having to report to just a few executives.

5. MATRIX ORG STRUCTURE: -

Fig7 matrix org structure chart

A matrix organizational chart looks like a grid, and it shows cross-functional teams that form
for special projects. For example, an engineer may regularly belong to the engineering
department (led by an engineering director) but work on a temporary project (led by a project
manager). The matrix org chart accounts for both roles and reporting relationship

ORGANISATIONAL STRUCTURE OF THE COMPANY

Suma coffee works follows “MATRIX ORGANISATION STRUCTURE.”

9
 Fig8: SUMA COFFEE WORKS ORGANISATION STRUCTURE CHART

KEY PERSONAL
FOUNDER – M.K. Ramaswamy
MAJOR SHAREHOLDING BOARD OF DIRECTORS: -
1. Muthu Lakshmi
2. V. Sujatha
3. M. Sudha
4. Vishal R.V.
5. Sanjana R.M.
6. Shreyas Navneet
7. Sameeksha Balraman
CEO - K.R. Srinivasa Murthy
COO – K.R. Veeresh
CFO - K.R. Manish
VICE PRESIDENT OF SALES – Krishana Prasad
VICE PRESIDENT OF HR – Perumal. M
VICE PRESIDENT OF MARKETING – Kantha Raj

10
DIRECTOR OF MANUFATURING – Kerba Karan
DIRECTOR OF OPERATIONS – Sundar Raj
DIRECTOR OF FINANCE – Fransis
DIRECTOR OF SALES – Prashant. MK
CHIEF ACCOUTOUNT - Baskar
ADVERTISMENT MANAGER – Dinesh
HR MANGER – Babu Dinagaran
RESEARCH MANAGER - Raj Kumar

CEO DECISIONS
There were few decisions taken by the CEO which changed the future of the company. They
are:
• Changed the marketing and production strategy
• Change in the price level (increasing the price level)
• Increase in quality of the coffee and tea
• Started advertisement (ad’s for the products)
• Opening new branches
• Increasing employee quantity
• Expand the distribution circle
• Initiated home delivery throughout INDIA and other COUNTRIES.

CEO ROLES IN AN ORGANISATION

• Implements proposed plans

• Development of direction and strategic objectives
• Forecasting and budgeting
• Communicates with the Board of Directors
• Public relations
• Establishing working culture
• Monitoring company performance

11
BIBLOGRAPHY

• Lucid chart
• Start-up pill
• Organisational behaviour reference book
• Suma coffee works employee

CHAPTER 3 - FUNTIONAL DEPARTMENTS

INTRODUCTION

1) ADMINISTRATIVE DEPARTMENT: This is the central control unit of an organization

that is charged with responsibilities of directing, organising, and coordinating the activities of
all other departments in an organisation to ensure the organisation’s objectives are achieved.
The head of this department is called the administrator or the administrative manager.

2) SALES DEPARTMENT: Production Is not completed until the goods got to the final
consumer, therefore sales department oversees ensuring that the finished goods (products) get
to their final consumer
(i) Advertising Unit: This unit is responsible for all sales promotion and advertisement in
both local and national news media e.g., Radio, Television, newspaper etc. The head of this
department is called the Advertising Manager.
(ii) Customer Service Unit: It is responsible for handling customers’ complaints concerning
defective goods and merchandize. The unit brings customers closer to the organization. The
head of the unit is called Customer Service Manager.

3) ACCOUNTING DEPARTMENT: This department handles all financial matters or

transactions of the organization. It prepares and pays salaries to all employees. The head of
this department is called the Accounting Manager or the chief accountant. In schools, they are
called bursars.

12
4) PURCHASING/PROCUREMENT DEPARTMENT: This Department is charged with the
responsibility of acquiring raw materials that will be used in the production of the company
products. The head of the purchasing department is called Purchasing Officer or Purchasing
Manager

5) PERSONNEL DEPARTMENT: This department performs an important function of

hiring, training of new staff and retraining of old Staff as well as ensuring Staff welfare. It is
usually headed by a person trained in Personnel Administration or Business Management
called Personnel Manager or Human resources manager.

6) PLANNING DEPARTMENT: Planning is an important aspect of business, any

organization but fails to plan, definitely must perform as expected, therefore the planning
department takes charge of ensuring that the organization’s plans ahead in order to device
ways of achieving their goals.

7) TRANSPORT DEPARTMENT: This department oversees delivering raw materials to the

production site as well as taking the finished shed products to areas or places they are needed.

8) SECURITY DEPARTMENT: This department ensures the security and safety of all staff
and the organization Assets.

9). RESEARCH AND DEVELOPMENT DEPARTMENT: This department oversees

carrying out research to discover ways of improving the company’s products to remain
competitive in the market while striving to satisfy the consumer’s want.

BRIEF DESCRIPTION OF THE ACTIVITIES OF EACH DEPARTMENT

• PRODUCTION DEPARTMENT: this department collects the raw material required

to produce the final product. In this organisation they buy coffee beans which is then
converted to coffee powder as final consumption goods.
RESEARCH MANAGER - Raj Kumar
• MARKETING DEPARTMENT: In this organisation the department deals with the
advertisement unit where they produce pamphlets, advertisement, newspaper.
The roles done by advertisement department to promote their company:
1. Offer a discount
2. Sponsor a contest

13
3. Use email marketing
4. Blog
5. Encourage reviews
6. Collaborate with an influencer
7. Submit a press release
8. Promote pre-ordering
9. Reward loyal customers
10. Give a free sample
11. Host an event
VICE PRESIDENT OF MARKETING – Kantha Raj
ADVERTISMENT MANAGER – Dinesh

• SALES DEPARTMENT: sales deals with the selling of coffee power in physical and
online branches.
DIRECTOR OF SALES – Prashant. MK

• HUMAN RESOURES DEPARTMENT: which deals with the hiring of the employees
to the organisation, and deal with employee welfare, salary, bonus, commission, etc.,
The HR policies of the company are:
1.Employee Contract
2. Employee wages
3. Code of Conduct
4. Leave policy
5. Employee provident fund
6. Gratuity Policy
7. Paternity and maternity leave policy
8. Sexual harassment workplace policy
9. Adaptive work culture policy
10. Employment Termination policy
VICE PRESIDENT OF HR – Perumal. M, HR MANGER – Babu Dinagaran

14
• FINANCIAL DEPARTMENT: deals with financial matters and transaction, finding
profit, dealing with losses, and decides the amount of the salary to be paid to the employee.
Accounting system followed by the organisation:
Their accounting system should concentrate on the inventory level and discounts they give or
receive on each product. Thus, the whole system should be based on different products and
their payable or receivable. It should help them with ratios like gross profit margin, net profit
margin, and other required measures in their operation. The most crucial factor is the cost of
material. Therefore, the system should be more elaborated on different types of raw material
inputs and be able to retrieve different ratios, which shows the movement of cost.
DIRECTOR OF FINANCE – Fransis
CHIEF ACCOUTOUNT – Baskar

INTERDEPARTMENTAL COORDINATION

FIG9: internal communication/ coordination

Interdepartmental coordination mechanism is that which can deal with the uncertainty of this
product/process fit at least cost to the organization.
Vertical coordination – In vertical coordination, a superior authority coordinates his work
with that of his subordinates and vice versa. For example, a sales manager will coordinate his
tasks with his sales supervisors. On the other hand, all sales supervisors ensure that they work
in sync with the sales manager.
Horizontal coordination – In horizontal coordination, employees of the same status establish
a relationship between them for better performance. For example, the coordination between
department heads, or supervisors, or co-workers, etc.
They follow a scalar chain of communication in the organisation. Sometimes the coordination
can be both formal and informal.

15
 CHAPTER 4 SWOC ANALYSIS

SWOC OF THE COFFEE INDUSTRY

The economic market has always been fluctuating and the world has witnessed the fall of
many mega empires. Various financial institutions have been phased out and others being
bailed out by governments. However, these situations can be overcome by proper economic
evaluations and strategies.

FIG10: swot analysis

This proposal will focus on how a new firm can penetrate in the gourmet coffee market and
the strategies it can follow for better sustainability and profitability.
• STRENGTHS:
High demand, Various types of products to offer, Big international market, Consumed by 4 in
5 Americans (LARGE market), Loyalty to local coffee shops. Products is a High-grade
Arabica Coffee Beans; Price is Cheaper than popular brands

• WEAKNESS:
Depends on whether (Summer or Winter, can affect production of coffee beans), Cost of
coffee and tea are greatly increasing, due to the bean production. There are More popular and
known brands, less popularity and reputation compared to others, need to get more funding
from loans and investors.

16
• OPPORTUNITIES:
Ability to expand and work with partnerships, New up and coming business in the U.S. As a
home-grown coffee brand, opportunities to expansion internationally, Growing niche of
coffee drinkers and enthuse lasts who wants to try the products, Opportunity to open
franchising

• CHALLENGES:
Quantity vs. price -Economic situations Price of material and supply, Many
competitors. Lots of popular coffee shops, Prices of imported coffee beans and other supplies
may increase.

FIG11: 20-year record of coffee prices

SWOC OF THE ORGANISATION

• STRENGTHS:
Strong Brand Name – SUMA coffee has an established brand name in the market. The brand
equity is quite high owing to the quality of coffee it provides to the customers.
Great Aroma – The aroma of the coffee is very much liked by the customers and has a very
loyal customer base. This has helped the brand to establish a good brand recall and equity in
the market.
Advertising – SUMA coffee is of advertising the coffee in the market is one of the greatest
strengths. The TV ads, pamphlets, radio, etc.,
Distribution and Availability – SUMA coffee has a very well-established distribution
network. Moreover, this has helped the brand to be available in the market which is a key to
success for any brand.

17
• WEAKNESS:
Underdeveloped Industry – India is not very much developed in terms of coffee adoption and
at the same time increasing health consciousness has made people avoid caffeine-containing
drinks.
Product Line is not deep – Though there are different flavors and taste available in this
category, but SUMA coffee has not yet established the market for different flavors and hence
this has emerged as one of the weaknesses because competition is providing customers with
different varieties of coffee.
High Dependence on Raw Materials which are costly – There is a high dependence on the
raw materials which are costly to cultivate in nature and hence the non-availability of raw
materials adds to the hindrance in the manufacturing of goods, and it adds to the cost of the
coffee as the raw materials need to be over cultivated and kept in storage to be preserved.

• OPPORTUNITIES:
Tie up with offices – SUMACOFFEE can tie up with offices which will help in increasing
the customer awareness as well as the usage in the market. Office going people are the major
market for coffee industry and hence by letting people drink coffee in the office would be the
great opportunity for the brands to develop a taste in people.
Penetration in the market – SUMA COFFEE can target rural markets to penetrate more in the
market enhance their customer base with reach as well.

• CHALLENGES:
Direct & Indirect Competition – There is a high competition in the market both from the
direct coffee players as well as from other beverage players.
Problems with Cocoa- The produce is not easy to cultivate, and farmers are facing major
issues and hence it creates problems for the industry.

18
 CHAPTER 5 - BEST PRACTICS

BEST PRACTICES OBSERVED DURING THE STUDY

• Sustain a work environment founded on dignity and respect for all employees
• Make employees feel their jobs are important
• Cultivate the full potential of all employees
• Encourage individual pursuit of work/life balance
• Enable the well-being of individuals and their families through compensation,
benefits, policies, and practices
• Develop great leaders, at all levels, who excel at managing people as well as results
• Appreciate and recognize the contributions of people who work there
• Establish and communicate standards for ethical behaviour and integrity
• Get involved in community endeavours and/or public policy
• Consider the human toll when making business decisions

19
 FIG: 10 BEST PRACTICES

KEY RESULT AREA

A. POSITIVES

1. KRA for Sales Department

 Increase in number of sales as compared to the previous tenure
 Increase in profit margin as compared to the previous tenure
 Increase in the number of prospective customers approached
 Effective implementation of online sales strategy

2. KRA for Marketing Managers

20
 Increased brand awareness and visibility
 Promotional activities to improve the brand image
 Decreased marketing costs per new customer acquired

3. KRA for Human Resources Managers

 Improved advertisement of job vacancy
 Effective screening of prospective employees
 Decrease in the cost of hiring
 Retention of current employees
 Decreased employee turnover

4. KRA for Customer Service Representatives

 Effectively assisting customers with their queries
 Efficient handling of customers’ complaints
 Improved customer retention

• Establishment of Standards
• Performance Measurement and Comparison
• Corrective Actions When Deviations Occur
• Accomplishing Organizational Goals
• Efficient Use of Resources
• Judges Accuracy of Standards
• Employee Motivation
• Ensuring Order and Discipline
• Facilitating Coordination in Action

B. NEGETIVE

• Control is an expensive process it involves lot of time and effort as sufficient attention
has to be paid to observe the performance of the employees.

21
• Employees often resist control and as a result effectiveness of control reduces.
Employees feel control reduces or curtails their freedom.
• An enterprise cannot control the external factors such as government policy,
technological changes, change in fashion, change in competitor’s policy, etc.
• Difficulty in setting quantitative standards

SIGNIFICANT FACTORS OF SUCCESS

• Having a clear plan

• Prioritising your goals
• Acquiring relevant education and skills
• Cultivating good habits
• Having a positive attitude
• Learning from your mistakes
• Taking risks
• Working hard
• Always being prepared

CHAPTER 6 – CONCLUSION
LEARNINGS AND KEY TAKEAWAYS FROM THE STUDY
• Need to focus on experience, not just education
• Distribute work and make it flexible
• Create a rich work environment
• Reinvent yourself constantly

22
• Dream big but at the same time work toward it
• Work on the disadvantages that are stopping you to grow

23
24
25
26
27