Mba Report

A Report on Internship at
OLX Autos
Sushmitha Rego
1DT20BA046
Submitted to
VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI

In partial fulfillment of the requirement for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Under the guidance of
INTERNAL GUIDE EXTERNAL GUIDE

Mr. SAVANTH S T Mr. Avinash A S
Assistant Professor Retail Associate
Department of Management Studies OLX Autos, Bangalore
DSATM Bangalore
Dayananda Sagar Academy of Technology and Management

Udayapura Kanakapura road Bangalore- 560082
ACKNOWLEDGEMENT
I wish to express my sincere thanks to our respected Principal, Dr. Ravishankar M and deep
sense of gratitude to Dr. Geetha R, Professor & Head, Department of Management Studies,
Dayananda Sagar Academy of Technology and Management for their kind support and
encouragement in completion of the internship.
I would like to thank Internal guide Mr. SAVANTH S T, Assistant Professor, Department of
Management studies, Dayananda Sagar Academy of Technology and Management for
constant support throughout the internship and also thank external guide Mr. Avinash,
Retail Associate, OLX Autos, who gave me golden opportunity to do Internship at your
esteemed organization, which helped me to learn various concepts throughout the internship.
Finally, I express my sincere thanks to my Parents, Friends and all the Staff of MBA
department of DSATM for their valuable suggestions in completing this internship report.
Place: Bangalore Sushmitha Rego

1DT20BA046
DECLARATION
I, Sushmitha Rego hereby declare that the Internship report with reference to OLX Autos is
prepared by me under the guidance of Mr. SAVANTH S T, Assistant Professor, Department of
Management Studies, DSATM and external assistance by Mr. Avinash, Retail Associate OLX
Autos. I also declare that the Internship has been carried out towards the partial fulfillment of
the university regulations for the award of degree of Master of Business Administration by
Visvesvaraya Technological University, Belagavi. I have undertaken the Organisational Study
for a period of four weeks. This report has not been submitted to any other University /
Institution for the award of any degree / diploma.
Place: Signature of Student

Date:
CONTENTS
CHAPTER CHAPTER NAME PAGE

NUMBER NO.
Acknowledgement
Declaration
List of Figures
List of Tables
Executive Summary 7
1. Introduction About the Organization and Industry 8
1.1 Introduction About the Industry 8
1.2 Market Overview 13
1.3 Key Market Trends 14
2. Organization Profile 15
2.1 Introduction 17
2.2 Background 18
2.3 Nature of Business 20
2.4 Vision, Mission, Quality Policy 20
2.41 Vision 20
2.42 Mission 20
2.43 Quality Policy 21
2.5 Workflow Model 22
Dept. of MBA, DSATM 2021-2022 5

2.6 Service Profile 22
2.7 Ownership Profile 23
2.8Achievements of OLX Groups 23
2.9Future Growth and Prospects 24
3. Mckensy’s 7S Framework & Porter's Five Force Model 25
3.1Mckensy’s 7S Framework 25
3.2Porter's Five Force Model 30
4. Swot Analysis 32
4.1 Introduction 32
4.2 SWOT 33
5. Analysis of Financial Statements 34
5.1 Meaning 34
5.2 Comparative Balance Sheet 35
5.3 Income Statement 36
5.4 Ratio Analysis 37
6. Learning Experience 44
6.1 Experience 44
7. Bibliography

LIST OF FIGURES
FIGURE NO. DESCRIPTION PAGE NO.
1 Automotive Advancements in Car 13
1.1 Indian Used Car Market – Market Share 15
2 OLX Autos Office 16
2.1 OLX Autos Products 19
2.2 OLX Autos Sales Office 21
2.3 Workflow Model of OLX Group 23
3 The MCKINSEY 7S Framework 26
3.1 Hard Elements 27
3.2 Soft Elements 29
3.3 Porter’s Five Force Model 31
4.1 SWOT Analysis 33
LIST OF TABLES
TABLE NO. DESCRIPTION PAGE NO.
1 Comparative Balance Sheet 37
2 Income Statement 38
3 Debt Equity Ratio 38
4 Net Profit Ratio 39
5 Gross Profit Ratio 40
6 Current Ratio 41
7 Quick Ratio 42

Executive Summary
The MBA course offered by VTU, Belagavi has its own unique syllabus which requires its
MBA students to undertake an internship with any of the industry for the period of four weeks.
This study was introduced by the university for the purpose of gain student’s practical
knowledge about the work and functioning of the organization.
This study is conducted on OLX Autos. The main objective of this internship is to expose the
students to understand the working culture of the organization and apply theoretical concepts in
real life situation at the work place for various functions of the organization.
For preparing the report we need to study the profile of the industry. Then we have to study the
organization profile. Organization profile includes the background of the company, nature of
the business and companies’ vision and mission statements, quality policy of the organization
and product and services profile of the organization. And this report includes the ownership
pattern, future growth and prospectus of IBEON.
The study was more emphasized on 7S Mc Kinsey’s Framework, Porter’s five force model and
the SWOT analysis of the company. The study provides a good exposure to the corporate
world and a good comparison of the practical and theoretical aspects as studied in the course.
The study of OLX Autos reveals that the company’s overall performance is satisfactory. The
study was made out according to the profit and loss account and balance sheet for the 3 years
as per annual report.
The study concludes that OLX Autos is well managed and it is carrying its business very
efficiently and effectively.

CHAPTER 1
INTRODUCTION ABOUT THE INDUSTRY
1.1 Industry
Information Technology Enabled Services (ITeS)
Information Technology Enabled Services (ITeS), also called web enabled services or
remote services or Tele-working, covers the entire gamut of operations which exploit
information technology for improving efficiency of an organization. These services provide
a wide range of career options that include opportunities in call Centre, medical
transcription, medical billing and coding, back-office operations, revenue claims processing,
legal databases, content development, payrolls, logistics management, GIS (Geographical
Information System), HR services, web services etc.
Information Technology that enables the business by improving the quality of service is IT
enabled services. The most important aspect is the Value addition of IT enabled service. The
value addition could be in the form of - Customer relationship management, improved
database, improved look and feel, etc.
The outcome of an IT enabled service is in the two forms:
1. Direct Improved Service
2. Indirect Benefits
Whereas direct benefits can be realized immediately, indirect benefits can accrue over a
period of time, and can be harnessed very effectively, if planned well upfront. ITeS focus
on verticals such as content management, finance and accounts, research and analytics
segment. ITeS includes:
 Customer Interaction services -including call centre facilities with adequate telecom
infrastructure, trained consultants, access to requisite databases, Internet and other
online information infrastructure to provide information and support to customers
 Back-office operations -data entry, data conversion including finance and accounting
and HR services.
 Transcription/Translation services
 Content development/animation/engineering/design and GIS

The favoured application areas are areas where there is huge amount of data that needs to be
processed and utilised for delivering the results, or the data is the outcome of the service. In
all cases, without use of IT the task would otherwise be unmanageable. Some of the most
important areas where IT enabled services can be deployed are:
 Telemarketing
 Helpdesk
 Customer Support Centres
 Data Ware House
 Transcription Centres
 GIS Mapping for Transport tracking
 Electronic Distribution.
Automobiles
Automobiles are by name auto are also called as motor car or car, it is a usually four-wheeled
vehicle designed primarily for passenger and commonly designed by an internal combustion
engine using a volatile fuel.
Automotive design
The modern automobile is a complex technical system employing subsystems with specific
functions. Some of these consist of thousands of component parts that have evolved from
breakthroughs in existing technology or from new technologies such as electronic
computers, high-strength plastics, and new alloys of steel and nonferrous metals. Some
subsystems have come about as a result of factors such as air pollution, safety legislation,
and competition between manufacturers throughout the world. Passenger cars have emerged
as the primary means of family transportation, with an estimated 1.4 billion in operation
worldwide.
About one-quarter of these are in the United States, where more than three trillion miles
(almost five trillion kilometres) are travelled each year. In recent years, Americans have
been offered hundreds of different models, about half of them from foreign manufacturers.
To capitalize on their proprietary technological advances, manufacturers introduce new
designs ever more frequently.

Power Sources
The early history of the automobile was concentrated on the search for a reliable portable
power unit to propel the vehicle.
Steam-powered wheeled vehicles
Ferdinand, a member of a Jesuit mission in China, built a steam-powered vehicle around

1672 as a toy for the Kangxi Emperor. It was small-scale and could not carry a driver, but it
was, quite possibly, the first working steam-powered vehicle ('auto-mobile').
Steam-powered self-propelled vehicles large enough to transport people and cargo were first
devised in the late 18th century. Nicolas-Joseph demonstrated his steam dray, an
experimental steam-driven artillery tractor, in 1770 and 1771. As their design proved to be
impractical, his invention was not developed in his native France. The centre of innovation
shifted to Great Britain. By 1784, William Murdoch had built a working model of a steam
carriage in Redruth and in 1801 Richard Trevithick was running a full-sized vehicle on the
roads in Camborne. The first automobile patent in the United States was granted to Oliver
Evans in 1789.
Electric automobiles
In 1828, Ányos Jedlik, a Hungarian who invented an early type of electric motor, created a
tiny model car powered by his new motor. In 1834, Vermont blacksmith Thomas Davenport,
the inventor of the first American DC electric motor, installed his motor in a small model
car, which he operated on a short circular electrified track. In 1835, Professor
SibrandusStratingh of Groningen, the Netherlands and his assistant Christopher Becker
created a small-scale electrical car, powered by non-rechargeable primary cells.
In 1838, Scotsman Robert Davidson built an electric locomotive that attained a speed of 4
miles per hour (6 km/h). In England, a patent was granted in 1840 for the use of tracks as
conductors of electric current, and similar American patents were issued to Lilley and Colten
in 1847.

In 20th century, Electric cars enjoyed popularity between the late 19th century and early
20th century, when electricity was among the preferred methods for automobile propulsion,
providing a level of comfort and ease of operation that could not be achieved by the gasoline
cars of the time.
Advances in internal combustion technology, especially the electric starter, soon rendered
this advantage moot; the greater range of gasoline cars, quicker refuelling times, and
growing petroleum infrastructure, along with the mass production of gasoline vehicles by
companies such as the Ford Motor Company, which reduced prices of gasoline cars to less
than half that of equivalent electric cars.
This led to a decline in the use of electric propulsion, effectively removing it from important
markets such as the United States by the 1930s. 1997 saw the Toyota RAV4 EV and the
Nissan Altra, the first production battery electric cars to use NiMH and Li-ion batteries.
21st century
In recent years, increased concerns over the environmental impact of gasoline cars, higher
gasoline prices, improvements in battery technology, and the prospect of peak oil have
brought about renewed interest in electric cars, which are perceived to be more
environmentally friendly and cheaper to maintain and run, despite high initial costs.
The automotive industry started from humble beginnings. Today it is a multi-billion-dollar

industry that creates a link from Japan to Africa. This is how the automobile has changed
the way people live. The challenges of building an efficient and safe automobile have been
conquered, even as scientists and innovators continue to study the process to enhance the
product. The automotive industry has grown significantly through the decades since Henry
Ford rolled out the first batch of Model T vehicles.
There is no sign of slowing down. People kept making advertisements because they knew
that this is the only way to communicate to a broader audience. The automotive industry has
experienced some ups and downs, but it will not disappear if people need cars.

Figure 1: Automotive Advancements in Car
Certified Pre-owned cars
A certified pre-owned (CPO) vehicle is a late-model used car that has gone through a
thorough inspection and reconditioning and has been given a factory-backed limited
warranty. Franchised dealerships sell CPO vehicles to fulfil two common needs of used-
car shoppers who are looking for a reliable car at a good price. Pre-owned cars remove the
uncertainty about the mechanical condition of the vehicle and present an attractive
alternative to a higher-priced new car.
Certifies Pre-owned vehicles also come with benefits not found on other used vehicles,
such as access to loaner cars, roadside assistance and even maintenance for some brands.
CPO cars take the guesswork out of used-car shopping: The vehicles are inspected,
reconditioned and guaranteed to be in working order.
Evolution
India’s automobile industry is one of the fastest growing in the world and it is already the
sixth largest globally. Annual car sales could reach 5 million vehicles by 2015 and more
than 9 million vehicles by 2020.
Fast-growing pre-owned car market
Till about a decade ago, in the absence of organised players, more than 60 percent of all

used car sales were C2C (customer to customer) among friends and relatives, with a
‘Circle of Trust’. The remaining sales were managed by local unorganised dealers. In
2001, Maruti became the first major organised player to enter the market with the launch of
its used car brand – Maruti True Value.
Today, the Indian consumer has woken up to the positive value equation of pre-owned
cars, and rightfully so. Pre-owned cars give higher flexibility and reach to prospective car
owners, whether first-time buyers or repeat, due to the price advantage they offer. The
economical prices of pre-owned cars help all types of buyers.
• First-time car buyers: Lower price point and wide variety ensure that a used car buyer
gets a technologically advanced and wide range of cars at fair prices.
• Second car at economical price: Several Indian families have a need for more than one
car and used cars offer them a more economically viable option.
• Upgrade to a bigger car at a lower budget: This is especially true in case of people
from Tier 2 cities and towns. A used car allows them the opportunity to upgrade from a
two-wheeler to a four-wheeler without stretching their budget.
According to the latest estimates, the OLX platform is the market leader in the used car
space registering over 370,000 listings of used cars per month, out of which approximately
200,000 cars get sold every month.Overall, there are 275,000 used cars sold in India every
month and sales through OLX constitute a staggering 72% of all the used cars sold in India
every month.The number of cars sold by OLX per month is bigger than the combined
monthly sale of the two largest consumer automobile players in the country.
1.2 Market Overview
The India used car market was valued at USD 27 billion in 2020, and it is expected to reach
USD 50 billion by 2026, registering a CAGR of 15% during the forecast period, 2021-2026.
The used car market evolved in the country, with the growth of the organized and semi-
organized sales sectors. The pre-owned car market recorded sales of 4.4 million units in
FY2020 as compared to only 2.8 million units of new passenger vehicles in the same year.
Factors such as standardized dealership experience, high price experience, and high
financing cost for used cars may hinder the growth of the used car market.

OLX is one among the major players dominating the market. Others who are competing are
Mahindra First Choice Wheels, Cars24, Maruti True Value, Hyundai H Promise, and
Droom.
1.3 Key Market Trends
The global used car market size was valued at USD 1,332.2 billion in 2019 and is expected
to grow at a compound annual growth rate (CAGR) of 5.5% from 2020 to 2027. The used
car shipment was recorded at 102.8 million units in 2019. The market has shown significant
growth in the last few years, as the price competitiveness among the new players has been
one glowing spot in the used car industry. The inability of customers to buy new cars became
one of the reasons for the growing sales of used car volume, which is complemented by the
investments made by the industry participants to establish their dealership network in the
market. These dealership networks helped market participants to brand and make used car
options viable. Further, the role of online sales has become a critical growth factor in the
market. Online sites in auto marketplaces have played an essential role in bringing access to
consumers with a single touch. A combination of such developments created a significant
upsurge in the used car demand.
Figure 1.1: Indian Used Car Market – Market Share

CHAPTER 2
ORGANIZATIONAL PROFILE
OLX Group are one of the world’s fastest growing networks of trading platforms, operating
in 30 + countries around the world.
OLX group help people to buy and sell cars, find housing, get jobs, buy and sell household
goods. With more than 20 well-loved local brands including OLX, OLX-Autos, and
Property24, our solutions are built to be safe, smart, and convenient for our customers. We
are powered by a team of 11,000 +people, working across 5 continents in office all around
the world.
Figure 2: OLX Autos Office

OLX SERVICES
They love to unlock value for their customers. Every single month,322 million people use
our platforms to find their perfect home easily, safely, and conveniently, buy or sell a car,
find a great job, sell things they do longer need, or strike a great deal on something they
need. And they help thousands of entrepreneurs and businesses fund their customers too.
They also unlock value within company. They invest in self learning, training and
development to reach our full potential. They avoid bureaucracy to Innovate their
commitment to inclusion ensures which they listen to a diverse range of voices when making
decisions. and they combine the spirit and agility of a start-up with their global scale and the
backing of Products, one of the largest consumer internet groups in the world.
They unlock value of our stakeholders. They are proud of the positive contribution which
they make to our planet. They are enabling more consumption and helping the world make
the most of its limited resources through more efficient trade.
They have got a fantastic space in Gurugram - in the popular DLF Corporate Park. As one
of our main technology hubs, the office hosts 700 of our finest technology talent who spend
their time making it fast and easy for people to buy and sell almost anything.
They have fitted it out like any great OLX Group space; relaxing break out areas, fantastic
meeting rooms, and unique spaces like our rickshaw seating booth. It’s a high energy space
and - after being one of the first OLX offices - this location is now firmly about the future.
They combine the spirit and agility of a start-up with our global scale and the backing of
Proses, one of the largest consumer internet groups in the world.

In India we work for
2.1 Introduction
OLX Autos, the automobile business of OLX India and India’s leading pre-owned
omnichannel marketplace, has recently appointed Lowe Lintas as its agency.
The Delhi office of Lowe Lintas has won this business on the back of its robust
understanding of the Indian consumer, strong experience with auto brands and the
repertoire of work done for OLX in the past. The agency’s scope primarily includes
delivering offline and digital communication for the brand, amongst other
responsibilities.
Launched late last year, OLX Autos aims to provide easy and clear solutions for the
Used Cars market by integrating the offline and online car buying experience. In the
Indian pre-owned car market, which still remains mostly unorganised, ease and
transparency are crucial for any brand to thrive. OLX Autos plans to bring transparency,
trust and harmony to the entire car buying experience by way of technological
innovations and consumer-centric initiatives.

Figure 2.1: OLX Autos Products
2.2 Background
OLX AUTOS is very smart way to sell used cars. They offer one stop solutions which are
safe, convenient and offer guaranteed peace of mind for both buyer and seller. They offer
free evaluation of car and then they drive to one of our many inspection centres. As
OLXAutos, they are growing very fast in the car selling process.
Depending on your location, you'll either receive payment straightaway, or an offer from
one of their trusted partners. We're growing fast - and revolutionising the car selling process!
OLX Autos has more than 500 inspection centres across the Americas and Asia. It operates
under its own and other well-known leading brands including Car First and
Webuyanyar.com in the US.
As part of the world’s largest classified business group, OLX has created OLX Autos to
transform the way used cars are traded in India. With their worldwide expertise they are
today growing in India with centres in Delhi, Mumbai, Hyderabad, Bangalore, Chennai, and
Pune enabling car owners to easily sell their cars through our secure and hassle-free process.
Our services
A new standard in used cars sales
You can now get your car inspected and sold at a fair price through our safe and hassle-free
process. Their nationwide network of purchase centres uses an internally developed
algorithm, and a professionally trained team to conduct inspections.
 Transparent Inspection
 Get a price upfront
 Fast, safe, and easy sale
 Sell Immediately
 Sell in any condition
 Get paid safely into your account
Products of OLX AUTOS
The new web and mobile interface will make OLX Autos the one stop platform for all their
needs resulted to used cars right from buying one to being able to access financing for the
same within the app. Buyers will be able to purchase a used car in 2 ways
 Directly from OLX app from the buyer

 Directly from the OLX Autos stores
So, the main products are to buy or sell the used cars
OLX Autos have made 3 simply ways to buy or sell the cars, they are
Schedule an inspection
Call at 9818262262 or use online platform and fill form to schedule an inspection. OLX
Autos will be there to welcome to your purchase centre near you.
Get a free evaluation
OLX Autos team of trained professionals will inspect your car and verify the documents of
your car. Once the inspection is completed, they will provide you with an estimate valuation
of your car.
Sell your car
Get an offer from OLX Autos channel partners for your car. Once you accept the offered
price OLX team will take care of all the paperwork and RC transfer. Get your payment in
an instant transfer to your account.

Figure 2.2: OLX Autos Sales Office
2.3 Nature of Business

OLX is the most exclusive online platform that offers the facility to its customers to sell
anything at a reasonable price digitally. In 2014, the platform reportedly had 11 billion page
views, 200 million monthly active users, 25 million listings, and 8.5 million transactions per
month.
When it comes to second-hand purchasing, people become quite conscious and do not want
to waste their precious money on non-worthy items. And that's when OLX swipes in! It
offers the service to comfortably interact with the owner and get all the required details about
the item.
2.4 Vision, Mission and Quality Policy
2.41 Vision
“Our purpose is to shape the future of trade to unlock the hidden value in everything”
2.42 Mission
OLX operates an online marketplace for consumer-to-consumer sales, particularly targeting

users in emerging markets, with a view to providing a safe, reliable and efficient way for
consumers to buy and sell goods.

2.43 Quality Policy
OLX provides value to its customers in the following ways:
 The quality and reliability of its platform, with the Company operating an efficient
and high-quality platform, providing a reliable and effective channel for consumers
to interact with one another
 Its accessibility and ease of use, with the Company providing a user friendly and
flexible experience that can be access either through mobile and desktop browsers
or via the Company’s mobile applications
 Its broad range of product categories, with the Company enabling consumers to sell
a range of products, including electronics, clothes, furniture, cars, and home
appliances
 Its expertise and experience, with the Company employing specialist technical
personnel across its business, as well as an experienced team of industry executives;
and
 Its international reach, with the Company serving consumers across 40 countries
worldwide, in particular serving customers in emerging markets that are not typically
served by growing online businesses.

2.5 Workflow Model
A workflow model is the sequential series of tasks and decisions that make up a business
process. Designing a workflow model lets business users see how a process works and helps
them streamline and optimize it for best results and high efficiency
Schedule an inspection
Get a free evaluation
Pricing
OLX Platform
Buyer selection
Trials
Sell the car
Figure 2.3: Workflow Model of OLX Group
 Schedule an inspection: Book a free inspection instantly

 Get a free evaluation: Get evaluation on your car and purchase offer
 Sell your car: Get secure instant payments and also safe and secure RC transfer
2.6 Service Profile
OLX offers various distinct services based on its customer's preferences. It allows them to
buy or sell anything. The range of categories includes furniture, electronics, automobiles,
fashion and cosmetics and many more.Using artificial intelligence, augmented reality, and
millions of data points, we are changing and shaping customer journeys forever. We
eliminate customer pain points one after another.

 Our new Camera AR Layer helps sellers take the perfect images of the car, which
helps buyers inspect the car from their phone or computer.
 Our AI-Enhanced chat helps buyer and seller negotiations. It creates trust and
transparency during the selling process. It helps the seller answer repetitive
questions quickly and auto-respond to factual questions. It even helps the buyer ask
the right questions and gain clarity on pricing.
 Our Price fairness tools, an AI-powered price evaluator, examines whether car prices
are fair and flags the buyer if the price isn’t fair. To make the AI model better, we
tested how the model impacts buying behaviour and analysed where it was wrong,
and then made improvements.
2.7 Ownership Profile
OLX Group is a Dutch-domiciled online marketplace headquartered in Amsterdam.

The OLX consumer brand originated as OnLine eXchange in 2006. OLX Group is
owned by Prosus, the international assets division Naspers.
OLX Group was Founded in 2006

OLX Autos was founded in the year 2018
Number of locations: 30+ countries
Headquarters: Amsterdam, Netherlands
Parent: Prosus (a division of Naspers)
Subsidiaries: dubizzle, Olx India Private Limited, Tradus
Founders: Fabrice Grinda, Alec Oxenford
Present CEO: Mr. Amit Kumar
2.9 Achievements of OLX Groups
 A key milestone was reached in 2014, when we signed joint ventures in key markets
including Brazil and Indonesia. This massively improved our customer offering and
accelerated our journey to building sustainable businesses.
 OLX Group is made up of more than 5,000 colleagues spread across 35 offices -
some of whom joined even before me. It’s a diverse culture (though we are always
looking to improve) and it’s driven through our desire to achieve more and more.
 The traffic of olx.in has grown 150 times since its launch.
 OLX currently has a large base of over 6 million daily active users.
2.10 Future Growth and Prospects
OLX has a total revenue of $2.1 billion and its website has over 35 billion page views.
Around 8.5 million transactions happen every month.
The preowned automobile sector has been growing steadily over one year. Buying and
selling a car can be an incredible hassle. Though online research has changed the process,
buyers still spend hours at dealerships before buying a car. And the negotiation process can
get overwhelming. For sellers, hurdles exist as well. It’s hard to know the true value of a car
and find potential buyers. Using artificial intelligence, augmented reality, and millions of data
points, we are changing and shaping customer journeys forever. We eliminate customer pain
points one after another.

CHAPTER-3
MCKINSY’S 7S FRAMEWORK AND PORTER'S FIVE

FORCE MODEL
3.1 THE MCKINSEY 7S FRAMEWORK
The McKinsey 7S Model is a framework for organizational effectiveness that postulates
that there are seven internal factors of an organization that need to be aligned and
reinforced in order for it to be successful.This model categorizes the seven elements as
either "hard" or "soft".
Figure 3: The MCKINSEY 7S Framework

Hard elements are easily identified and influenced by management, while soft elements
are fuzzier, more intangible, and influenced by corporate culture.
The hard elements are as follows:
 Strategy
 Structure
 Systems

The soft elements are as follows:
 Style
 Staff
 Skills
 Shared values
The framework is used as a strategic planning tool by organizations to show how

seemingly disparate aspects of a company are, in fact, interrelated and reliant upon one
another to achieve overall success.
The 7S model used in OLX Autos focuses on
1. Reviewing the effectiveness of an organization in its marketing operations.

2. Determine how to best realign an organization to support a new strategic
direction.
3. Assess the changes needed to support digital transformation of an organization.
Key elements of the McKinsey 7S model are
 HARD ELEMENTS
Figure 3.1: Hard Elements

Strategy
OLX Autos is a leading online platform which is used a classified advertisement
website for buying-selling of pre-owned goods. OLX provides a horizontal online
classifieds platform as its marketing mix product offering for sellers and buyers to
interact with one another and do business. OLX Autos follows mainly C2C model.
Therefore, they have two kinds of customers- the sellers and the buyers and they have
to attract both of them to increase its business and revenues. For the classified ads, it
provides the service of featured ads and free ads. Featured ads have two offerings- 7-
day featured ads and 30-day featured ads.
Structure
 The Business model of OLX is actually scale-dependent

 The website acts as a classifieds portal where customers can buy and sell
goods
 OLX spends large amounts of money in order to garner more and more user
traffic and greater frequency and number of listings
 The high traffic is put to use to earn revenue by monetizing the number of
clicks and searches
Systems
OLX Autos has introduced many new features backed by artificial intelligence that is
driven towards improving the trust and building a cohesive platform catering to India's
largely fragmented pre-owned car ecosystem.
Buyers will now be able to purchase a pre-owned car in 2 ways: either on the OLX app
directly from another buyer or via the OLX Autos stores. Buyers are greeted by a new
user interface which will provide them with a detailed history of the car right from the
ownership period all the way up to the service history of the car.
On the app, OLX's AI-backed "Progressive Chat" feature will nudge buyers and sellers
with helpful prompts to complete the transaction seamlessly. This will also include AI-
led prompts that will recommend the best prices to the buyers.

For sellers selling their cars directly to others, the new platform will make it easier to
sell their cars instantly. With an AI price engine, car sellers selling a car across the top
10 car brands will be able to value their cars in accordance with the market trends.
 SOFT ELEMENTS
style
staff
soft skills
elements
shared
values
Figure 3.2: Soft Elements
Style
At OLX India they empower you & give you the freedom to act. They provide you a
world of opportunities, and an inclusive culture to help you move up the career ladder
and become a leader.
Working with them means an opportunity to work on all their well-known brands - and
to work globally.Product and Tech teams collaborate with teams around the world. And,
as part of OLX Autos, employees are exposed to people from different cultures and
backgrounds - giving them the opportunity to learn as they work in a truly diverse
environment. At OLX Autos, they are always on your toes - learning new terminologies,
business practices, and techniques to grow yourself professionally.

Staff
The slowing growth in the fleet sizes is emblematic of a market that is maturing and
stabilising after nearly a half decade of frenzied growth that was beginning to affect
operations.
Currently, OLX Autos has about 5,000 workers on its platform across 102 cities and
Many of the employees who have dropped off the platforms were earning Rs 60,000 to
Rs 1 lakh a month as salary and incentives.
Skills
OLX Autos encourages the hiring of skilled employees with widely different styles and
passionate in order to diversify idea generation and push capabilities of the Programming
team and improve their platform significantly.
Team managers maintain a personal development plan with their team members to
monitor and develop their skills.
Shared Values
Mission statement: “Our mission is to provide "Peace of mind" to car buyers & sellers
across the globe”
Vision statement: “Our purpose is to shape the future of trade to unlock the hidden value
in everything”

3.2 Porter's Five Force Model
Figure 3.3: Porter’s Five Force Model
Porter’s Five Forces is a tool used for understanding the competitiveness of a business
environment, and for identifying the potential profitability of a business strategy. This
analysis is useful, because understanding the forces that could affect a business’s
profitability enables owners to be proactive in making adjustment accordingly.
The five forces are composed of the following elements: buyer power; supplier power;
the threat of new entrants; the threat from substitutes; and the threat from competitors.
Threat of New Entrants – High
New firms such as Quikr, viva street and get it pose threats to OLX Autos as it can lead
to reduction of market share. The easy shifting of consumers to competitors, empowers
them to impose a strong force against companies. This is a result of the low switching
costs, or the low negative effects of transferring from one provider to another. However,
the high cost of brand development in online retail weakens the influence of new entrants
on the performance of bigger entities.
Threat From Substitutes-High
The low switching costs of consumers is why they can easily transfer between
companies. Consumers can easily decide to buy from OLX Autos or other
establishments. The high availability of substitutes and the low costs increase the
influence of substitutes against the company. As a result, OLX Auto is trying to gain a
competitive advantage by offering low prices, better quality of products or through a
better overall customer experience.

Bargaining Power of Customers-High
There is much switching cost for the customers. In today’s society, customers are well
informed. Consumers have access to high quality information regarding the services of
online retailers and the products OLX Auto sell.As a result, the bargaining power of the
buyers is strong.
Bargaining Power of Suppliers- High
Customers often create a code of conduct encompassing quality and sustainability.

Despite the increasing number of players in the industry, suppliers do not have many
options and therefore are bound by the rules that the brands have set.However, the size
of most manufacturers and suppliers limits their influence on OLX Autos.
Competitive Rivalry- High
OLX Autos tend to be aggressive having a strong competitive rivalry among their
competitors. The level of rivalry in the industry is high because of the large number of
players. Strategic priority is given importance in OLX Autos to ensurecompany’s long-
term competence.
Retailers have the strong bargaining power which plays a major factor in addressing
business challenges in the online retail industry environment.Due to the high level and
threat of competitors and substitutes, prioritizing the strategies for long-term success in
the online retail industry environment is imperative.

CHAPTER 4
SWOT ANALYSIS
4.1 Introduction
Figure 4.1: SWOT Analysis
SWOT analysis of OLX Autos analyses the brand by its strengths, weaknesses,
opportunities & threats. In OLX Autos SWOT Analysis, the strengths and weaknesses
are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like OLX
Autos to benchmark its business & performance as compared to the competitors. OLX
Autos is one of the leading brands in the IT & Technology sector.

4.2 SWOT
Strengths
 It is present in over 10+ countries, and thus have great learning curve.
 It receives around 1.5 billion page views in a month, which gives a hint of its
brand visibility in India.
 Strong backing by Naspers (Parent Company) which has experience in working
with ecommerce giants
 Strong advertising campaigns have made OLX Autos really popular among
television viewing audience.
 According to certain reports, OLX Autos is a market leader in C2C business in
India.
Weaknesses
 Lack of strong features to convert non-internet users as potential clients.

 Intense competition means limited ROI considering huge investments in
marketing
 Customers will back offs in last minute
 No guarantee of best valuation of cars
 Delayed payments
Opportunities
 Diversification of its portfolio to include various other subcategories.

 Setting up of offline offices to increase its brand awareness as well to acquire new
customers.
 Sellers gets millions of buyers so they can sell products easily & gets good benefit.
Threats
 Funding for competitors like Quikr by investors.

 Offline stores like Quikr and viva streetare coming up with marketing campaigns
to providing greater discounts.

CHAPTER 5
ANALYSIS OF FINANCIAL STATEMENTS

5.1 MEANING
Financial statement analysis is the process of analysing a company's financial
statements for decision-making purposes. External stakeholders use it to understand the
overall health of an organization as well as to evaluate financial performance and
business value. Internal constituents use it as a monitoring tool for managing the
finances
Analysis of financial statements is the process of evaluation of the performance of a

company in the financial year and then deciding about the corrective actions that need
to be taken.
Objectives of Financial Statement Analysis –
 To provide the information to the external as well as internal stakeholders of the

company.
 To know the financial position of the company
 To evaluate the overall performance of the company
 To make a basis for decision making

5.2 Comparative Balance Sheet
Comparative Balance Sheet as on ending of the year for three consecutive years starting
from 2019 to 2021
2021 2020 2019

(lakhs) (lakhs) (lakhs)
Assets
Non Current Assets
property,plant and equipment 1529 1623 2297
goodwill 16000 17276 18847
other intangible assets 13628 15668 17648
Non Current financial Assets
Non current investments 0 0 0
Loans, non current 8569 6538 301
other non current assets 7623 14387 14337
total non current assets 47349 55492 53920
Current Assets
inventories 0 0
current financial asssets
current investmnets 526 1763 15909
trade receivables 1562 1856 1381
cash and cash equivalents 6853 8713 3659
loans,current 16253 11377 9760
other current financial assets 256 444 1209
other current assets 2056 2675 3242
total current assets 27506 26828 35160
Total assets 74855 82320 89080
Equity and liabilities

equity share capital 965 1112.75 1109.67
other equity 58632 57253 76206
equity attributable to owners of parent 0
non controlling interest 0
total equity 59597 58365.75 77315.67
liabilities
non current liabilities
borrowings ,non current 2360 7705 0
provisions, non current 236 753 614
Deferred tax labialities 0 498
total noncurrent liabilities 2596 8458 1112
current liabilities
borrowings ,current 0 0
trade payables 2625 2014.25 3780.33
other current financial liabilities 9456 8410 3014
other current liabilities 256 4571 3368
provisions, current 325 501 490
total current liabilities 12662 15496.25 10652.33
total equity and liability 74855 82320 89080
Table 2: Comparative Balance Sheet
5.2 Income Statement
Statement of Profit & Loss account/ Income Statement for three consecutive years starting
from 2018 to 2020
2021 2020 2019

Statement of profit and loss
Income
Revenue from operations 19222 10955 16253
Other income 1023 2665 4562
Total income 20145 13620 20815
Expenses
Cost of materials consumed 0 0 0
Changes in inventories of finished goods, work-in- 0 0 0
progress and stock-in-trade
Employee benefit expense 19794 21323 22563
Finance costs 504 0 250
Depreciation, depletion and amortisation 4355 2178 5326
expense
Other expenses 19030 14094 9632
Total expenses 43683 37595 37771
Profit before exceptional items and tax -23538 -23975 -16956
Total profit before tax -23538 -23975 -16956
Tax expense
Current tax 0 0 0
Deferred tax -498 -232 -154
Total tax expense -498 -232 -154
Total profit (loss) for period from continuing -23040 -23743 -16802
operations
Tax expense of discontinued operations 0 0 0
Total profit (loss) from discontinued operations 0 0 0
after tax
Total profit (loss) for period -23040 -23743 -16802
Table 1: Income Statement

5.3 Ratio Analysis
Ratio Analysis on Financial Statement and Income Statement.
1. Debt Equity Ratio

2. Net Profit Ratio
3. Gross Profit Ratio
4. Current Ratio
5. Quick Ratio
1. Debt Equity Ratio
The debt-to-equity ratio shows the proportions of equity and debt a company is using to
finance its assets and its signals the extent to which shareholders equity can fulfil
obligations to creditors in the event a business decline
Debt Equity Ratio = Long term Debt / Share Holders Fund
2018-19 2019-20 2020-21
Debt Equity 0.0524 0.0831 0.0182

Ratio
Table 1: Debt Equity Ratio
Debt Equity Ratio
35% 33%
32%

Analysis
If the debt equity ratio is high, this indicates that a company has a sufficient amount of
equity to support the functions of the business. In this case if ratio has been increased in
the year 2020 when it compared to 2019 ratio. And hence we can call this as the company
is having the sufficient amount of equity to support the functions of the business.
2. Net Profit Ratio (Net Profit / Net Sales * 100)

It is the ratio of after- tax profits to net sales. We can find out overall performance of a firm
by this ratio as it is the left- out profit after deducting all the costs of production,
administration and financing from sales. Here in the graph, we have shown it in the form of
trend line to compare the performance over a period.
Year 2018-19 2019-20 2020-21
Net profit Ratio 1.0337 2.16732 1.1986

Table 2: Net Profit Ratio
1%
NPR
94%
Interpretation
OLX Autos is performing better in these recent years when we compare to the starting
or the first year as the NPR was negative -52.5273 where it indicates the loss, but after
that there is an improvement where the trend line shows the raising of NPR and then
again it came down to 0.616760 in the year 2019-20 where we can totally say that the
performance is moderate.

3. Gross profit Ratio (Gross Profit / Gross Sales * 100)
It is the ratio of before- tax profits to sales. We can find out performance of a firm by
this ratio before deducting all the costs of production, administration and financing from
sales. Here in the graph, we have shown it in the form of trend line to compare the
performance over a period.
YEAR 2017-18 2018-19 2019-20
GPR 52.527342 2.8188215 0.616760966

Table 3: Gross profit Ratio
GPR
-94%
Interpretation
OLX Autos is performing better in these recent years when we compare to the starting or
the first year as the GPR was negative -52.5273 where it indicates the loss, but after that
there is an improvement where the trend line shows the raising of GPR and then again it
came down to 0.616760 in the year 2019-20 where we can totally say that the performance
is moderate.

4. Current Ratio (Current Assets/ Current Liabilities)
The Current Ratio helps to know whether the assets a company holds is enough to meet its
obligations. There is the ideal ratio as 2:1 which is considered as a healthy ratio a company
should have.
Years 2018-19 2019-20 2020-21

Current Ratio 0.7772966 0.854737771 0.639483137
Table 4: Current Ratio
Current Ratio
28%
34%
38%
Interpretation
Current Ration which is below 1 is not a healthy one. A healthy current ratio will be
between 1 & 3. So here we can see that OLX Autos has the current ration below one
which gives the meaning that the liabilities are more than the assets and they are unable
to pay the short-term obligations of the company. In the year 2019-20, the ratio was
quite improved, though they need to work on the above taking into serious
consideration to reach the level of ideal ratio that is 2:1

5. Quick Ratio (Quick Assets/ Current Liabilities)
This is the ratio which decides upon the liquidity position of a company. This is
calculated because to decide upon how much liquid assets a company should have to
meet its short- term needs.
Years 2018-19 2019-20 2020-21

Quick Ratio 0.120332 0.79173446 0.62533807
Table 5: Quick Ratio
Quick Ratio
8%
41%
51%
Interpretation
Quick Ratio is calculated by dividing the quick assets by the current liability. It
indicates the liquidity position of the company. Here we can visualise that the quick
assets ratio is highest in the year 2019-20 that is 0.7917. And when we compare, it has
a consistency in all the three years. Only in the year 2018-19, the ratio is 0.1203 which
is a bit lower than other two years. We can conclude that the liquid position or the
payable capacity of the organisation is good and consistent.

CHAPTER 6
LEARNING EXPERIENCE
6.1 Experience
In the period of these 4 weeks of internship, I have undergone through many of the new
concepts and the actual working environment in the organization.
OLX Auto is an organization that is very friendly and the work environment is
pleasant.The communication, process and the structure of the organization are well
designed.I learnt many things as Human Resource Intern in their organization, so some
of them are-
 Taking interviews for various designations in the organizations

 Co-ordinating with the newly joined interns as a team leader
 Communicating politely with others in the recruitment process and thus resolving
the conflicts if any
 Maintaining data base of hiring and the performance such as day-to-day tasks.
Other than the above duties, I have experienced how the real working process will be
in an organization. The freedom and responsibility of employees and the stress level
etc. Also, I learnt about the customer management system in OLX Auto which is the
major focus in their organization. They have the multi-level quality and cost assurance.
I came to know about how their operations will be conducted and the training takes
place. Customer interactions and the problem resolving techniques at OLX Auto are
quite well and interesting. I also learnt the HR, marketing techniques and its
implementation.

BIBLIOGRAPHY
1. https://en.wikipedia.org/wiki/Olx_Cabs
2. https://www.olx.in/
3. https://www.britannica.com/technology/automobile
REFERRED BOOKS
1. Zarkasih, R. A. S. (2021). Web Usage Mining Analysis in “OLX Autos” Online Sales
Applications. Jurnal Mantik, 5(2), 600-607.
2. Shahbaz, R., & Iqbal, J. (2021). Auto-mobile Search Engine
3. Kramer, D. G. (1978). Buying and selling a practice. The CPA Journal (pre-
1986), 48(000007), 78.
4. Manurung, Y. E. (2021). Analisis Penerapan Manajemen Relasi Berbasis Guan Xi
pada Divisi Dealer Olx Autos Surabaya

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A Report on Internship at

VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI

INTERNAL GUIDE EXTERNAL GUIDE

Dayananda Sagar Academy of Technology and Management

Place: Bangalore Sushmitha Rego

Place: Signature of Student

CHAPTER CHAPTER NAME PAGE

1. Introduction About the Organization and Industry 8

1.1 Introduction About the Industry 8

1.2 Market Overview 13

1.3 Key Market Trends 14

2.3 Nature of Business 20

2.4 Vision, Mission, Quality Policy 20

2.43 Quality Policy 21

2.5 Workflow Model 22

Dept. of MBA, DSATM 2021-2022 5

2.7 Ownership Profile 23

2.8Achievements of OLX Groups 23

2.9Future Growth and Prospects 24

3. Mckensy’s 7S Framework & Porter's Five Force Model 25

3.2Porter's Five Force Model 30

5. Analysis of Financial Statements 34

5.2 Comparative Balance Sheet 35

5.3 Income Statement 36

5.4 Ratio Analysis 37

Dept. of MBA, DSATM 2021-2022 6

FIGURE NO. DESCRIPTION PAGE NO.

1 Automotive Advancements in Car 13

1.1 Indian Used Car Market – Market Share 15

2 OLX Autos Office 16

2.1 OLX Autos Products 19

2.2 OLX Autos Sales Office 21

2.3 Workflow Model of OLX Group 23

3 The MCKINSEY 7S Framework 26

3.1 Hard Elements 27

3.2 Soft Elements 29

3.3 Porter’s Five Force Model 31

4.1 SWOT Analysis 33

1 Comparative Balance Sheet 37

3 Debt Equity Ratio 38

4 Net Profit Ratio 39

5 Gross Profit Ratio 40

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Dept. of MBA, DSATM 2021-2022 8

1. Direct Improved Service

 Content development/animation/engineering/design and GIS

Dept. of MBA, DSATM 2021-2022 10

Steam-powered wheeled vehicles

Ferdinand, a member of a Jesuit mission in China, built a steam-powered vehicle around

Dept. of MBA, DSATM 2021-2022 11

The automotive industry started from humble beginnings. Today it is a multi-billion-dollar

Dept. of MBA, DSATM 2021-2022 12

Certified Pre-owned cars

Fast-growing pre-owned car market

Dept. of MBA, DSATM 2021-2022 13

1.2 Market Overview

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1.3 Key Market Trends

Figure 1.1: Indian Used Car Market – Market Share

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Figure 2: OLX Autos Office

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