ORGANIZATION STUDY at

AMC Pvt Ltd

BY
GAUTHAM A
USN: 1JS18MBA17
Department of Management studies
JSS
Bangalore-560060
 INDUSTRY PROFILE

 Direct selling is a growing and exciting industry that provides companies an

alternative channel for the distribution and sale of products and services
directly to customers , away from a traditional retail location. The industry
uses a variety of distribution methods multilevel marketing and network
marketing being two of it.
 The rise of the emerging middle class market, technological innovations and
a relaxing of restrictions on capitalism has triggered a major growth in this
industry Major direct selling companies
 Amway
 Avon
 Herbalife Nutrition
 Natura &CO
 Isagenix
 Tupperware
 ORGANIZATION PROFILE
 AMC is the world market leader in premium stainless steel cooking
system & leading direct selling company founded in 1963.Headquarter
is located in Switzerland.
 AMC is a Swiss German multinational is the No-1 cookware company
in the world AMC is present in around 30 countries across 5
continents.
 AMC is present in India since 1996 with Bangalore as its headquarters
& production unit.
 Over the past 23 years AMC has changed many lives in India with its
revolutionized zero oil & water less cooking method.
 AMC Moto is “Eat better Live better”.
 Nature of business:
 Make appointment:-
AMC cooking products are direct selling by conducting Demos in the customer houses.
 Inviting guest: -
AMC booking consultant are encouraged to invite 8 family members, friends, or 4 couples to the
cooking party to experience the euphoria of the product.
 Cooking- testing products enjoying- profiting
In AMC cooking party customer will experience zero oil cooking, tasty food. Easy to use superior
quality surgical steel world class multi cooking system saves money & energy
-> The family can save 50% of gas.
-> 80% of oil & 20% on food shrinkage.
-> AMC premium system the only system in the
world in which you can cook without additional
water or oil.
 Vision statement :
To be successful direct selling company in India by achieving
sustainable growth & profits through best quality cookware based on
local market needs.
 Mission statement:-
To become preferred work place for both employees and sales
partners by providing an empowering work culture where they can
give their best to achieve common goals.
 Quality policy:-
-> AMC Global guarantee is valid for 30 years on AMC
cookware units.
-> Guarantee covers defects in material and fabrication.
-> No transportation and shipping costs will be charged to the
customer within first 2 years of the guarantee period.
 CEO

Business Business
Sales HR Finance
development Operation

Marketing Training Account Tax Sales Admin

North and South

West
East

RH
Reginal Reginal

AH

BH

DM ORGANISATIONAL STRUCTURE
MCKINSEY’S 7S FRAME WORK:
In order to assist managers with the difficulties in the implementation that are associated
with the change in organization the S model was formulated by the consultation of McKinsey
and the business in the late 1970’s.

The seven elements are distinguished in so called hard S’s and soft S’s. The hard element
(green circles) are easy to identify. They can be found in strategy statements, corporate plans,
organization charts and other documentations. The four soft S’s however, are difficult to
describe since capabilities, value and elements of corporate culture are continuously
developing and changing. They are highly determined by the people at work in the
organization. Therefore it is much more difficult to plan or to influence the characteristics of
the soft elements.
 Structure:
Industry desires to be equipped in an exact type of shape that is in general referred to as
organizational constitution
 SKILL:-
-> Communication skill.
-> Human skill.
-> Problem solving skill.
 STYLE:-
It stands for the different actions taken by the top management during the course of a
given period of time through reporting relationship among the three levels of manager
(Authoritarian).
 STRATEGY:-
A company plans actions in response to or expectation of changes in its external
environment. Strategy includes vision, mission, objectives, goals, and major action plans
and policies. AMC follows Growth strategy to analyze past achievements.
 SYSTEM:-
It follows personnel business system where they have huge policies, personnel,
equipment, computer facilities to co-ordinate activities.
 STAFF:-
The human resource management processes used to develop managers, socialization
processes, ways of shaping basic value of management cadre, ways of introducing young
recruits to the company, ways of helping to manage the careers of employees.

 SHARED VALUE:-
->Simplicity and positivity
-> Adaptability
->Experience
-> Recognize and Humility
 PORTERS FIVE FORCES MODEL ANALYSIS OF AMC
 Bargaining power of buyers/customers:
The bargaining power of individual customers in case of AMC is high. Individual
customers generally buy based on the demos conducted at their residence
 Threat of new Entrants:
In the cookware industry there are several factors that discourage new brands from
entering. Growing a brand overnight is impossible
 Threat of Substitute:
With increase of substitute products AMC business will always be at stake. There
are several cookware which are looking to enter the market with the same attributes as
AMC to gain superior market share and growth in this industry with reasonable prices.
 Competitive Rivalry between the existing players:
There are very few players in the cookware industry which provide intense
competition in market, there are few smaller players too but they do not pose a major
competitive threat.
 Bargaining power of Suppliers:
The bargaining power of supplier of AMC is weak. It is so because the number of
suppliers is high and the switching costs for AMC is low.
 SWOT Analysis of AMC
Strengths:-
Present in India over 23 year
Unique products
Huge customer consultant base:
Unique business methodology
Weakness: -
Perceived to be high
Not available in retail stores
Dependent on demo process
Opportunities:-
It Empowers women
Provides employment
Brand enhancement
Threats
Change in customer preference
Government regulations
Changes in technology
CURRENT RATIO:
It establishes relationship between total current assets and current liabilities.
Year Current liability Current Assets Current Ratio

2015-16 102.75 135.57 1.25

2016-17 115.45 140.77 1.22

2017-18 102.75 148.37 1.44

CURRENT RATIO
1.5
1.45
1.4
current ratio

1.35
1.3
1.25
1.2
1.15
1.1
2015-16 2016-17 2017-18
years
 NET PROFIT RATIO:
 It expresses the relationship between net profits after taxes to sales. Measure of
overall profitability useful to proprietors, as it gives an idea of the efficiency as well as
profitability of the business to a limited extent.
Year Net Profit Net Sales Net Profit Ratio

(%)
2015-16 0.39
120.92 302.76
2016-17 0.51
137.75 270.84
2017-2018 137.75 270.84 0.51
 Table for NET
Net Profit Ratio
Net Profit Ratio
0.51 0.51

0.39
net profit ratio

2015-16 2016-17 2017-18

years
