A PROJECT REPORT ON TOPIC: RESOLVING CONFLICTS WITH RETAILERS- A STUDY WITH RESPECT TO IMFL INDUSTRY

Submitted to:
Prof. (Dr.) Sharmila Subramanian

.DECLARATION We hereby declare that this submission is our own work & to the best of our knowledge & belief. it contains no material previously published or written by another person nor material which to a substantial extent has been accepted for the award of any other degree or diploma of the university or other institute of higher learning except where due acknowledge has been made in the text.

Project Guide: Prof. The matter embodied in this report is original and has not been submitted for the award of any other degree. students of IMIS. Sec-B. (Dr. Bhubaneswar is a record of the candidate group’s own work carried by them under my supervision.CERTIFICATE This is to certify that the Project entitled “RESOLVING CONFLICTS WITH RETAILERS.A STUDY WITH RESPECT TO IMFL INDUSTRY” which is being submitted by PGDM (2010-2012).) Sharmila Subramanian Date: 16-12-2010 ACKNOWLEDGEMENT .

for endless support and continuous involvement in the project. We would also want to thank managers of Trident hotel and Swosti premium hotel for giving from where we have collected the data.We would sincerely like to thank our project guide Prof. .) Sharmila Subramanian. Finally. Also we thank from our hearts to the officials of OSBC employees who has given his time and interacted with us out of his busy schedule. We would also like to thank owners of four counters and managers of bars and counters for sharing the valuable information. (Dr. for enabling us to successfully carry out the project work through his constant guidance. who kept encouraging us all along. we owe a great deal of sincere thanks to the faculty members who have been of great support from time to time along with our friends.

NO. CHAPTER PAGE NO.TABLE OF CONTENTS SR. 1 EXECUTIVE SUMMARY TERMS OF REFERENCE OBJECTIVES INTRODUCTION APPLIED CONVENTIONS PROCEDURE INTERPRETATION USED QUESTIONAIRE CONCLUSION 6 2 3 4 5 6 7 8 9 7 7 8 9-10 11-14 15-22 23-24 25 EXECUTIVE SUMMARY .

managers of bars and pubs and other hotels.A STUDY WITH RESPECT TO IMFL INDUSTRY”. TERMS OF REFERENCE . On interacting we came to know that different people have different set of problems but as a whole it is “Inter-organizational Conflict” that is taking place between these people. To complete our project we have followed the direct interview method in each and every place.This report deals with “RESOLVING CONFLICTS WITH RETAILERS. We interacted with many counter owners. how retailers get the material. We also met OSBC officials who explained the complete process.

A STUDY WITH RESPECT TO IMFL INDUSTRY” .Prof.) Sharmila Subramanian has requested this report on “RESOLVING CONFLICTS WITH RETAILERS.This report was to be submitted to her by 16th December 2010. OBJECTIVE OF THE REPORT  Study of different conflicts that are taking place while negotiating with retailers in IMFL industry. INTRODUCTION CONFLICT . (Dr.

Each is dealt with differently. Emotional Emotional conflicts takes place when individuals between the organizations find themselves reacting on an emotional level--out of fear. may be between two individuals. Conflict can be cognitive of affective. Types The three types of interorganizational conflict are substantive conflict. Affective conflict is likely to be destructive because it can lead to anger. encountering interorganizational conflict is a possibility. on the other hand. envy or stubbornness. bitterness. Substantive Substantive conflict occurs when a basic disagreement arises between the two organizations at a fundamental level. What Is Interorganizational Conflict? With organizations expanding their boundaries into wider areas. can air legitimate differences of opinion and develop better ideas and solutions to problems. Cognitive conflict refers to differences in perspectives or judgments about issues. These conflicts are often the result of basic misinterpretation. or between two organizations.Conflict can be understood as collision or disagreement. The conflict can be within an individual when there is incompatibility between his or her own goals or events. Whereas intraorganizational conflict deals with friction within an organization. interorganizational conflict occurs when two or more organizations create friction. emotional conflict and cultural conflict. goal displacement and poor decisions. Affective conflict is emotional and directed at other people. Conflict needs to be cognitive and not affective. Cognitive conflict. . when one does not see eye to eye with another and in process tries to block or frustrate the attempts of another. jealousy. or between two groups in an organization. For example. the People for the Ethical Treatment of Animals would have substantive conflict with an organization that experiments on laboratory animals. Cultural Interorganizational conflict also can occur based on cultural needs and desires.

or may not. Conflict aftermath: Development of each conflict episode is determined by a complex combination of the effects of preceding episodes and the environmental milieu. illustrated by the project team competing for unanticipated docking capacity interfering with other ongoing projects. By involving suppliers in the project core team and interorganizational rotation of manpower one seeks to improve communications. stem from a latent conflict. This implies that a conflict between one project and a specific supplier may have an effect later in the same project. which sometimes occurs in business to business relations. The felt conflict: This is characterized by the personalization of conflict. voluntary mediation with third party assistance. manifest conflict. arbitration tribunal or finally ending up as a court decision. Project stories are full of high profiled individuals being accused for enhancing conflict. or in succeeding projects. The perceived conflict: This conflict may. and conflict aftermath. The manifest conflict: The most useful definition seems to be that behavior which. If not. in the mind of the actor.Process of conflict Process of conflict generally comprises five stages: Latent-. thus trying to reduce the number. frustrates the goals of at least some of the other participants. The latent conflict: The conditions or underlying sources to conflict are found here. Managers may be representatives for large organizations involved in contractual battles challenging the value of their companies. To what extend . Finally (3) a divergence of goals can emerge through manpower rotation between supplier and the project team. perceived-. Conflict in complex projects is well represented in all those stages of conflict escalation. In a complex project the manifested conflict may follow a path towards negotiations. felt-. Various administrative and legal resolution processes are applied here. (2) It can be based upon drives for autonomy where the project team seeks to insulate itself from being controlled by the base organization. The majority of contracts in oil industry even have contractual provisions forcing the parties to temporarily suppress conflict to safeguard project progress. This may cause a tremendous pressure on the individuals increasing the risk of personalizing the conflict fueled by mass media. Sometimes a suppression mechanism block latent conflict to develop illustrated through the project having too many episodes of conflict at the same time to handle. the conflict results from misunderstanding of each other's true position. The latent conflict can be based upon (1) competition for scarce resources.

they frequently implement strategies that are ‘in conflict’ with the goals and strategies of existing channels. the manufacturer is in the driver’s seat demanding more of the channels. In many industries.conflict experience in one project dyad is carried on into other project dyad is to a large extent dependent upon the extent of organizational learning. if you haven’t experienced channel conflict. your product/service probably doesn’t have adequate coverage. As manufacturers strive to increase their market share (especially in mature markets). Conflict frequently occurs when there’s a power shift in the channel relationship. Channel conflict falls into three categories: 1. This consolidation results in: . As new products grow. Conflict caused by evolving markets Supplier-Driven Conflict. In fact. Channel-driven conflict 3. A good channel conflict manager knows how to maintain balance in the relationship and keep conflict healthy. Supplier-driven conflict 2. Examples include: • Adding distribution in a geography • Developing marketing programs designed to garner more attention from the existing distributor • Developing marketing programs that create market pull to force channels to sell their product • Focusing on the needs of their customers at the expense of the needs of their channels Channel-Driven Conflict. channel consolidation disrupts traditional distribution patterns and market power ends up concentrated among fewer channel partners. Channel Conflict Management Channel conflict is inevitable. When growth begins to stall. the power shifts to the channels and they begin to place demands on the manufacturer.

Conflict Caused by Evolving Markets. often forcing a business to keep an alliance with one distributor over another • Market power shifts to the channel.• Rationalization of the distribution strategy. Changing customer needs drive the creation of new channel strategies. Instead of being a relationship of equals. Channel conflict managers must keep a watchful eye on evolving markets and quickly mitigate channel conflict. PROCEDURE METHODS FOLLOWED . the channel begins to dictate marketing strategy which impacts a business’s ability to control its own market destiny.

Also we interacted with the officials of OSBC  The methods adopted for collecting data is Interview technique The important points that are considered during the study of a of conflict resolution with retailers: INTERPRETATION . pubs and hotels.For achieving the objective of the project we have followed the following procedures:  Interacting with owners of counters and managers of bars.

But OSBC does not supply as per the demand in the market. The supplier is not given that much of time to inspect and the loss has to be beared by the counter only 3. Before OSBC came into existence. Technical problems . Shortage of supply There is always shortage of supply of liquor especially in peak seasons like summer where consumption of beer is very much high. New Wine Corner in Ashok Nagar and we found the following problems like 1.Before the interview was started there had been a belief that there would only be two players dealing in the hierarchy i. Damini wine shop in Kalpana square. company and retailers. But gradually we came to know that there is a third party involved in this hierarchy called OSBC (Orissa State Beverage Corporation) which holds monopoly over the market. These cases are then resealed and they are sold in the market. 5.Corporation in Ravi Talkies. Corruption Some of the counter members also have to face problems of corruption done by OSBC officials regarding stock that is there with them. but after OSBC came no such replacement or refunding is done to retailers. 2. 4. Madan Foreign Liquor shop in Kalpana square. Problems faced by counters: Interviews conducted in some counters like S. in these situation the company used to replace the cases with new one.R. Expiry date It was also found that in few cases the expiry date of the cases they bought is already over.. It is mentioned on the bottles but not on the case. Material tampering In godowns generally the labours open the seal of the cases and they replace the bottles with fake bottles.e.

Loading and unloading problems There is a great deal of loading and unloading problems in OSBC. But if a person gives money instantly he will get the order completely. 4. The labour working there are very casual in handling the material as a result of which material gets damaged. Partiality Due to intense competition bar owners generally bribe OSBC workers because of which those OSBC employee show partiality in giving the load. 6. shut down or systems hang during work which cause a lot of problems as the counter owners have to wait for hours or they have to come again on some other day. Before OSBC came the companies used to replace the defected bottles but that companies are not refunding and the loss has to be beared by the owners. Deteriorating quality . OSBC employee corruption It was found that the problem of OSBC employee corruption which is faced by the counters are also faced by the owner of pubs and bars 3.On few occasions there are some technical problems like power cut. Manufacturing defect In few cases it was found that the quantity of liquor in the bottles is not full or there is a leak in one of the bottles. 2. If an owner of the bar does not make full money payment along with the order for the material he will not get the full order. Problems faced by bars and pubs: We went to some bars like Deepali bar and Pushpak bar in Kalpana Square and we also visited some pubs like Rock On opposite XIMB and the pub in Pal Heights 1.

Casual attitude of OSBC employees The same complaint of casual attitude of OSBC employee has been found in this case also. 5. Increase of cost of Foreign liquor Foreign liquor cost increases because of various excise duties and taxes as a result of which these hotels have to sell it for more cost which is ultimately affecting the customer as they are charged high price.Owners of the bars and pubs are repeatedly mentioning that the quality of the products is deteriorating. But after the establishment of OSBC. They used to get gifts and attractive prizes. Variety of materials These star hotels generally look for quality and variety as they deal with foreigners and mostly rich and migrating people. companies stopped providing these promotion schemes to them. 3. Free promotion Companies used to do free promotion of the products which was profitable to bar and pub owners. But they are unable to get the variety of materials as OSBC is not buying those materials from companies because of which they are unable to satisfy their customer needs 2. Problems faced by star hotels: We visited Trident hotel and Swosti Plaza and we came to know about the following things 1. Apart from these general problems there are other problems related to MGQ (Minimum Guarantee Quota) which they have to take every time otherwise their license will be cancelled Interorganizational conflict .

“Organizations frequently organize themselves against something and in the absence of a perception of conflict. A conflict usually simplifies the purposes of ana organization. In other words. The bases of interorganizational conflicts are essentially same as the bases of intergroup conflict. Most commonly cited reasons for interorganizational conflicts like incompatible objectives. simply because the objective of winning or surviving the conflict comes to dominate over all others. A situation of conflict heightens the larger purpose of the organization and so augments the internal rewards that come from a feeling of participation in these larger purposes. and they suffer from internal disorganization or even dissolution”. interorganizational conflict is more extensive.The phenomena in interorganizational conflict are much the same as those arising within an organization. Purposes:Conflicts with outside organizations serves four purposes by : • Promoting closer bonds of unity among individuals within the organization. conflicts over status. their reason for existence is weakened or disappears. the following conditions must be satisfied: Two organizations that are ignorant of each other cannot be in conflict. . • Acts as an agency of social control. more diffuse than the conflict among persons or groups. prestige and money are present in interorganizational conflict also. Conditions:For conflicts to exist between two organizations. As pointed out by March and Simon “ many of the phenomena of intergroup conflict within the organization are almost indistinguishable for the phenomena that we might consider under interorganizational conflict. So each of the organizations must be present in the image of the responsible decision makers of the other. • Building new life into organizational objectives and values. The distinction between internal and external relation for an organization is a cloudy one”. though they might be in competition. • Making organizational members aware of the strategy and tactics of the antagonist.

the unions will be scrutinized by agents of government for illegal activities like criminal activities discrimination.A decision on the part of either executive must affect the state of both organizations in valuesignificant direction. loyalties. illegal strikes etc. peaceful bargains. sabotage and absenteeism. Union-government: .if management and labour are to retain their institutional ideal ties.) Intermanagement :. Two organizations that do not affect each other cannot be in competition and therefore cannot be in conflict. grievances. bribery. so that possession of part of the field by one excludes the other conflict is possible. they must disagree and must adopt appropriate roles. Types of interorganizational conflict:Stangner and Rosen have identified five types of interorganizational conflict: Management – government: . Conflict is essential or survival for the union lack of conflict would weaken it. price wars may be included here. Interunion :.managements may compete against each other in ways that they believe will enhance their position in the industry. . anti-trust actions. fair trade. consumer protection etc (the government will generally monitor organizational activities and management performance in areas where government regulation of business is thought necessary. Disputes over patents and fulfillment of contracts. Conflict between labor and management is expressed in many forms like strikes. Wherever two organizations are expanding into a common field. Union-management: . A decision on the part of either executive must affect the image of the state of the other in a direction that he considers as unfavorable.conflict over political contributions. debates.unions may compete for members or jobs as in jurisdictional disputes.

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