internship report of tip top furniture
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CHAPTER 1
INTRODUCTION
1 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
INTRODUCTION
In an environment of the rapidly escalating competitive challenges, every
company has to invest across the value chain, where feasible towards acquiring
world class competitive capability in each of the businesses in its portfolio. These
strategic interventions resulted in progressive transformation of traditional
organisation in to internationally competitive organisation, where the focus is
superior value for all stakeholders.
Each business within the portfolio is continuously engaged in upgrading
competitive capabilities to effectively addresses growth challenges in the fast
globalising Indian markets the vision of every company is now apparently in the
creation of unique business model that faster international competitiveness of not
only its business but also the entire value chain of which it is a part. This has
made functioning of each organisation much complex than the older days.
Systematic and organised approach is indispensible to meet this challenge of
complexity. It is very costly and time consuming. All these lead to the emergence
of a modern organisations concept which realise on identifying and grouping the
work to be perfumed, defining and delegating responsibility and authority and at
last establishing relationship for the purpose of enabling people to work most
effectively together in accomplishing objectives.
2 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
INDUSTRY PROFILE
Furniture is a mass noun for the movable objects which may support the
human body, provide storage or held or contain smaller objects such as clothes,
tools, books, and house hold goods. Furniture is a product of design and is
considered and forms of decorative art. In addition to furniture’s functional role it
can serve a symbolic or religious purpose. Furniture is the name given all movable
and immovable accessories provided for rooms or other areas of any structure for
a wide range of material but wood and materials are usual what is known about
furniture stretches back to the ancient Egyptian and progress with some breaks to
the present day. During these long span basic forms, such as the chair, table and
were evolved and passed on to the succeeding people and culture.
HISTORY OF FURNITURE
The word furniture come Frome the French word “FURNITURE” which means
equipment. Furniture fashion has been a part of human experience since the
development of non nomadic culture evidence of furniture may survive from
Neolithic period and latter in antiquity in the form of painting such as the wall
murals discovered at pupil l, sculptures and example have been excavated in
Egypt. The history of furniture is very wide it is consisting of period start from
Neolithic, Classical, Early Morden Europe, 19th century, early North A From the
earliest of times, man has sought to invent things to make his life easier. And from
the dawn of recorded history, man has built and used furniture. Furniture as we
know it was first used in the middle-east and Mediterranean areas.
The Egyptians, who to this day produce fine furniture, created some of the
world’s first functional furniture. Crude by today’s standards, this furniture was
designed to make life easier and as such was quite successful One of the first
pieces of furniture invented was a throne, after all how could a people have a king
with no place for him to sit? The basic concept of a storage box, a table or chair
was not difficult to design.
3 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
Neolithic; the main evidence of this era is bare, Orkney’ Scotland evidence of
home furnishing i.e. dresser containing shelves.
Classical; early furniture has been excavated from 8th BC phoryglain evidence
of home furnishing i.e. a dresser containing shelves.
Early modern Europe; the furniture was usually heavy oak and ornamented
with carved design the Italian renaissance in 14th and 15th made a rebirth to
furniture design in 17th southern and northern Europe were popularised by
different kind of furniture especially provision of vegetal and scrolling ornaments.
In 18th furniture began to develop more rapidly there were some styles that belong
to one nature.
19th century; it is usually defined by concurrent revival style including gothic
revival style the design reforms of the late century introduced the aesthetic
movement, art and craft movement.
Modern furniture; after the world war there were three kinds of furniture,
functionalist modern, traditional modern, commercial modern.
Asian History
Asian furniture has a quiet distinct history. The tradition out of India, Pakistan,
Indonesia, and Japan are some of the best. But the place such as Korea Mongolia
and the countries of south East Asia had their own unique facts.
FURNITURE INDUSTRY IN VARIOUS REGIONS
European Union: Italy, France, Germany, and Denmark are the leading, exporting
countries in the furniture industry.
United States: the upholstery furniture, industry in US is fast
growing one and an important business sector.
4 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
Turkey: Turkish furnishing industry, is one of the fast growing and, potential for
modernisation.
Brazil: in the developing countries, the furniture, industry is a part of investment
sector.
Mexico: México were important furniture exporting country, but now it were slow
down.
Russia: Russia also one of the slow running furniture industry in modern period.
New Zealand: forestry resources, and expected development is future, to this
sector.
Office furniture, distribution in Europe is through direct sales and specialist
dealers. They are two major distribution channels.
Egypt: local supply is oriented towards, satisfying domestic demand. Only three
percentage of production is exported.
HISTORY OF FURNITURE IN INDIA
Historically, Furniture India did not have much of an influence on India's
interior design. Indians tend to sit on the floor on cushions and sleep on pads.
The Muslims began to influence Furniture India around 1,000 A.D. as beds,
chests and tables were introduced to the India interiors. Wood tended to be of
poor quality as a material for furniture. Ivory, stone and metals were used instead.
Carpets, rugs and textiles were still the dominant Indian Furniture around that
time. With the growing influence from Europe, more and more furniture were
being produced in India. Most of them were for export to Europe.
Engraved ebony-wood India furniture was known in South India during the
19th century. Later rosewood became popular also in that region. Walnut India
furniture was famous in North India. Kashmir, sheesham furniture was known in
5 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
the plains. Traditional wooden carvers still use simple tools following the Furniture
India styles which have been passed on from generations.
FURNITURE INDUSTRY IN INDIA
Furniture industry in India has started growing in a vast manner furniture
being a necessity and its need have risen to a large extend. India is populated
country so that, use of furniture equipments is very higher. The furniture industry
in India has started a tremendous growing in the vast manner. Furniture is being
necessity its need have risen to a large extent. Furniture industries have grown in
the state of Delhi, Mumbai, Kerala, UP and Tamilnadu. The furniture industry in
India is very rush and competitive one.
Furniture industry in India seeks more export trading. The imported woods
are used by most of the Indian companies. Rose wood, teak wood, mahogany,
are some Indian woods are used for furniture industry. Malaysian rose wood and
African paddock also available in the Indian industry.
As of 2006, the Indian furniture market was worth US$ 1358million. About 11
%( US$152million) of this (wooden furniture) is imported and imports are growing
at 50 to 60 % every year. India was the largest furniture importer in the world in
2004-2005 with a 17% share in the furniture imports worldwide a total of 10478
importers shipped furniture to India during this period mainly From Italy, Germany,
Spain, China, Korea, Malatya, Indonesia, Philippines and Japans.
The furniture sector in India makes a marginal contribution to the Gross
Domestic Products (GDP), representing about o.5% of total GDP. The major parts
of the industry approximately 85%is in unorganised sector the remaining 15%
comprises of large manufactures the range of region of furniture available in
India, includes both residential and contract system furniture. Manufactures in
India usually use a three tier selling and distribution structure, comprising of the
distributer, wholesaler and retailer.
6 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
Furniture companies must look towards the important and potentially giant
Indian consumer markets, since all world leaders in deferent industrial sector have
already established their production in joint venture in India.
Since the furniture industry in India is at the threshold of a big boom in the
next three years it’s time for companies to consider a serious business activity
over there. Some companies have already set up their manufacturing units.
GROWTH OF FURNITURE INDUSTRY IN INDIA
India is a land of wonderful and marvellous artistic work of wood. The rich
handicraft and beautiful traditional attributes of art and design have established a
reputation of Indian Furniture Industry in the nation and worldwide. The
exceptional designs, rich, compact, and luxurious trends and, not the least, the
supreme quality have given elegance to the furniture segment in the traditional as
well as modern aspect.
The fast emerging concept of standard lifestyle, interior designing, sense of
comfort and architecture has given Furniture Industry an essential ever growing
platform and thus empowering the industry to be termed as great manufacturers
and exporters of grand quality furniture in terms of art, style, technology and
beauty. And of course, globalization and media are also strong factors to give rise
to the industry. The strongest factor for this upraise is the huge investment done
by the foreign manufacturers and the credit definitely goes to versatile range of
products by the industry.
The Indian wooden furniture industry is generating approximately a turnover
of Rs 3,500 crore annually. The market of wooden furniture solely owns the share
of nearly Rs 60 crore. And as per one of the survey done recently, the industry is
expected to grow by 20 percent in coming times.
To conclude the vast development and growth of the industry, it can be well
quoted that it has infarct become a great pride for the nation to hold a magnificent
impact for its fine art and marvellous work in furniture all over the world. The future
7 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
is with too many bright colours of growth miles and miles ahead in terms of unique
furniture of all trends to occupy every thought of decorating or renovating the era
for decades and decades. Three cheers for the excellent growth of Indian
Furniture Industry.
8 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
OBJECTIVES OF THE STUDY
To identify overall organisation structure of ‘TIP TOP FURNITURE Pvt.
Ltd. KOTTAKKAL.
To study about the origin and development of the organisation.
To study about the structure and functions of deferent departments of
the organisation.
To know the official procedure maintained by the company.
To make myself confident and active to handled the future jobs and
assignments.
To give valuable suggestions if there is any flaw.
To identify the strength, weakness, threats and opportunities of the
firm.
9 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
CHAPTER 2
PROFILE OF THE ORGANISATION
10 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
COMPANY PROFILE
In the history of Indian and Kerala furniture industry the name
TIP TOP furniture Pvt. Ltd. is a vital one. TIP TOP furniture Pvt. Ltd. is the most
personalized furniture industry in Kerala. The major market of furniture industry in
Kerala is handled buy TIP TOP furniture Pvt. Ltd.
TIP TOP furniture Pvt. Ltd. has grown to be, milestone in the history of Kerala
and Kottakkal. An organisation which had been instrumental in projecting, the
name of Kottakkal to the face furniture business of the world is first time. In the
ground of furnishings industry the name TIP TOP furniture Pvt. Ltd. is as a
substitute for majestic and excellence, to one side from it’s sacrosanct,
incomparability in the field of Ayurveda medical science. TIP TOP furniture Pvt.
Ltd. is largely expertises in the field of handy crafting in the equipment. TIP
TOP furniture Pvt. Ltd. is principally, exporting their products in to provincial
countries, and Arabian countries. TIP TOP furniture Pvt. Ltd. is imperial name in
the Gulf countries also.
TIP TOP furniture Pvt. Ltd. is a golden spike in the crown of the nation
as it is a principal of its brand in Asia. Prior to screening the present of
organisation we will have an excellent esteemed prominence in previous periods
also.
ORIGIN OF TIP TOPFURNITURE Pvt. Ltd. KOTTAKKAL
The managing director Mr: Saidalavi started TIP TOP furniture Pvt. Ltd. in the
year 1979. It is the positioned in the Kottakkal in Malappuram district in Kerala.
At present it is the prevalent manufacturing industry in wood furniture on after
it’s celebrated of, silver jubilee. They have very good demand for their products, in
the spite of huge price tags also. TIP TOP equipment is the most leading furniture
giant which believes in trustworthiness, and hard work.
Today the company has fully fledged up to spot of headship in the
sector of furniture business, in a diminutive period. It uses an amalgamation of
11 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
improved condition of art technology, and cutting edge technology, to fabricate,
exquisite wood furniture without compromise its quality. This resolute committed
to superiority combined with the proficiency of 100, extremely qualified, skilled and
dedicated professional has helped TIP TOP carve niche for itself in the furniture
business.
TIP TOP furniture Pvt. Ltd. kottakkal is private limited company,
incorporated under the companies’ act 1956. The main object of company is to
carry on the business of export, manufacturing, assembling, and dealing of wood
furniture. TIP TOP furniture, having a show room at Kottakkal which is largest
wooden shoe room in India it since 1979.
12 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
COMPANY REVIEW
NAME OF THE FIRM : TIP TOP FURNITURE.PVT.LTD
HEAD OF THE FIRM : CHAGUVETTY, KOTTAKKAL
BRANCHES :TRIVANDRUM
: COCHIN
: CALICUT
: ERANAMKULAM
: KUNNAMKULAM
: KANNUR
: KOTTAYAM
: PERINTHALMANNA
CAPTION : CRAFTED FOR GENERATIONS
INDUSTRIAL CATOGERY : WOODEN FURNITURE
STATUS : LARGE SCALE
COMMENCEMENT : 1979
MANAGING BODY : MANAGING DIRECTOR
: BOARD OF DIRECTORS
EMPOLYEMENT : ABOUT 600 WORKERS
MAIN MATERILAS : ROSE WOOD, TEAK WOOD,
MAHAGANI, UPHOLSTERY AND
POLISHING
WORKING TIME : 9AM TO 5.30 PM
13 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
OBJECTIVES OF THE COMPANY
To carry on business of manufacturing assembling export and import and
dealing in all type of furniture handicraft.
Maintaining the highest quality and be a leading manufacturer in the industry.
Provide employment opportunities in the nearby area.
To maintain technological leadership through continues effort to update
product technology and manufacturing method.
To maintain employment and safeguard the interest of labours.
To exploit and utilise the plenty availability of raw material.
VISION
“To be the preferred furniture manufacturer with the highest user base whilst
delivering world class quality at affordable prices for the masse”.
MISSION
“To provide reliable and efficient customer-tailored products and services for
the client using highly trained personal, aided by advanced technology and sound
technical expertise, all the while continually striving to maintain the highest sense
of ethical and moral standards”.
14 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
ORGANISATIONAL CHART
15 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
BORD OF DIRECTERS
PERSONNEL MANAGER
MARKETING MANGER
PRODUCTION MANAGER
ACCOUNTS MANAGER
MATERIALS/ PURCHASE MANAGER
OFFICE ASST AN
CLERKS
TERRITORY MANAGER
EXICUTIVES SUPERVISOR STORE KEEPERS
OFFICE WORKERS
SALES EXECUTIVE
CLERKS OFFCIE STAFF CLERKS
FACTORY WORKERS
CARPENTERS/LABOURERS
UN SKILLED LABOURS
MANAGING DIRECTERS
SECURITY
ACHIEVEMENTS
‘VANIJYA RATHNA’ AWARD of 1998-1999 by ‘SOUTHERS VANIJYA’
federation.
Award by ‘CONSUMER PROTECTION CENTER’ (Kerala) for outstanding
contribution in design and quality.
To honour ‘VANIJYA RATHNA’ award given ‘POUMA SMARAKA SAMATHI’.
‘KAIRALI’-A Unit of Handicraft Development Corporation of Kerala Ltd., had
certified that the products manufactured by TIP TOP are maintaining hand
carved.
Kerala State Small Scale Industries Kottakkal wing’s awarded for the ideal
entrepreneur 2001.
Tip Top furniture Celebrated silver jubilee in the year 2007.
FUTURE PROSPECTS AND GROWTH PLAN
TIP TOP FURNITURE Pvt. Ltd. Is planning to start its business in all over
India and also they are planning to start in gulf countries. Their business in Kerala
is reaping huge profits, So they want to establish their units in aboard and they are
also planning to strengthen their export.
16 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
PRODUCT PROFILE
TIP TOP FURNITURE.PVT.LTD has spectacular range of products that
transform the house in to luxuries home. Our skilled and dedicated work forces
have produced some of the best designs in the furniture segment. And thus have
provided us with big reputation, in India and abroad.
TIP TOP FURNITURE is one of a never ending tread mill of progress by
incorporating the latest trends in the market, constantly probing its design strategy
and fine turning its craft. TIP TOP FURNITURE.PVT.LTD remains committed to
improving its range so that you have the latest for your home. TIP TOP
FURNITURE is associated with, classic and value added design furniture created,
out of superb ethnic, craftsmanship spectacular best which is acclaimed both in
the domestic and international market, particularly in the Gulf market. They make
their products of the best Indian teak wood and rose wood that last for generation
all their products are available in different model. The especially about their
furniture design is it’s of traditional and modern furniture exclusively made by
hand.
MAJOR PRODUCTS
TIP TOP FURNITURE.PVT.LTD is more concentrate on choosing the name
of the product. They use modern and ancient names based upon the products.
The main products as follows:-
SOFA: TIP TOP FURNITURE provides to you a distinctive, Elizabethan feel.
Pearls of opulence that make you feel snug and comforted. Sofa is a series of
drawing room furniture made of rose wood. They have a collection of more than
10 designs to suit the customer’s function value. The fabrics are used in different
sofa’s are from USA and UAE. The price ranges for sofa’s started from 12000.
Best models in market: paramount, chakra, and diamond.
17 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
DIVAN COT: Divan cots are beautifully shaped and expansive. It is an
extravaganza of sumptuousness. It is customised series of products provide from
comfort and relaxation which is their most sought after product in Gulf countries.
Price ranges start from 10000.
Best models in market: Victoria, and classic.
TEA POY: teapot is available in different models in wide variety range of designs.
Its price range starts from 1500.
Best models in market: catchy, offbeat, and apt.
DINIG TABLES: Presenting a statuesque table with smooth finish to add
charisma to every dining experience. The wide range of designs of dining tables
made of rose wood and teak wood that maintain an optimum balance between
style and comfort to use. The price range starts from 10000.
Best models in market: celebration, extreme, and delight.
DRESSING TABLES: A dressing table that showcases your best
features so that you can dress to impress. The price range starts from
15000
Best models in market: Venus, smart, and elegant.
COTS: the cots also have many models in different designs are made
to give optimum relaxation and comfort. The strength associated with
cots is five times more than the normal. The price range starts from
10000.
Best models in market: swasthya, Santana, and deluxe.
CULERY CUP BOARD: marvel at the skill and the handicraft work
of rosewood cutlery self that imbues your dining hall with grace and
elegance. Price tarts from 30000.
Best models in market: barman, prodigious, and roomy.
18 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
WARDDROBE CABINET: another stellar example of craftsmanship it the best
choice to keep your belongings. TIP TOP more concentrates on wardrobe with
modernised design. The price starts from 80000.
Best models in market: enjoy, glory, and saffron.
CHAIRS: TIP Top’s chairs are very durable and attractive. It gives the users very
comfortable. Price starts form 3000.
Best models in market: dignity, ethnic, and royal.
OTHER ITEMS
o STOOLS
o STUDY TABLE
o DOORS
o PARTITION AND PANELLING
o MIRRORS
o T.V. STAND
o KITCHEN UNIT
o SIDE BOX
o OFFICE AND COMPUTER TABLES
o STAIRCASES
o FLOWER STANDS
o PHONE STANDS
19 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
CHAPTER 3
DEPARTMENT STUDY
PRODUCTION DEPARTMENT
MATERIALS DEPARTMENT
MARKETING DEPARTMENT
HR DEPARTMENT
ACCOUNTS DEPARTMENT
20 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
STRUCTURE OF PRODUCTION DEPARTMENT
21 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
PRODUCTION MANAGER
ASSISTANT PRODUCTION MANAGER
QUALITY CONTROLLER
SUPERVISORS
WORKERS
PRODUCTION DEPARTMENT
Production function of a business is with citation of a product or service
required to satisfy customer needs, wands and desires. All the business that
sullies a product or service, it quit a belief that the activities of production system
must be closely related to the customer demand as reflected in the continuous
flow of orders.
Production function will be considered most effective when it serves a dual
purpose:
1. It must operate primarily to satisfy customer demand, particularly relating
to quality, quantity, price and above all timing of delivery as scheduled in the
orders.
2. It must permit production activities to operate in an economical and
efficient manner because cost of production is a vital factor in facing the market
competition and is ensuring normal profit or return on the investment.
PRODUCTION PROCESS
TIP TOP furniture Pvt. Ltd. able to keep up their brand name in the market
because of its particular style of production and High quality of furniture with
excellent design of the company. The production department of TIP TOP is having
a vital role in the high quality of products, the production process of TIP TOP also
so better than compared to other furniture manufactures. The production function
carries out the following process.
Sizing
This is the first stage in the production function under this stage the round
longs are cut in the required size by sowing. Then the pieces are planed
according to their necessity and design of the product. For sizing the long rounds
they are using deferent type of machineries the main machines are named Banso
and Renso.
22 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
Seasoning
It is an important process of keeping the quality of products the sized timber is
seasoned in this stage. It is the process of removing the moisture from the timber
by passing heat and cold at a particular condition by seasoning timber will become
dry and hard and the quality will be improved. There are two types of seasoning.
a) Chemical seasoning
b) Natural seasoning
Chemical seasoning
Chemical seasoning is done in low quality timbers certain chemicals are used
for this purpose usually chemical seasoning is done in rubber wood due to this
process it become hard and dry. Now this kind of furniture is popular in office
furniture and house hold equipments.
Natural seasoning
Under this process timbers are seasoned purely by way of natural storing in
river or open area for log days. it is subject to rain and sunshine for some days in
this way all moisture is removed from the wood and it become dry. Natural
seasoning is a time consuming process same time delay in executing orders,
hence to speed up seasoning plans are installing wood is kept in standard size
and thickness in the special plant and certain amount of stream and cold is
passed through it. This may be done for a period of 6-7 days. After completing the
seasoning process the wood will pass to carpentry section.
Carpentry
This is the main stage of production process. Carpentry section is the biggest
section in this factory where more workers are required compared to other section
in this stage, timber longs are checked if any defective part is there it will again
send for further operation. Skilled labours have given full freedom for this work.
One worker is assigned for the complete work of that particular product. So there
will not be any confusion and any riper is needed he can do it easily.
23 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
Assembling of furniture is carried out in this section if any carving work is
necessary, it will be sent to craving section before assembling or after assembling
as the case may be.
Craving
After the carpentry semi finished products will send to the craving section. If
necessary all the craving on one product is done by same workers. Highly skilled
labours are employed for this work under this firm craving is done by hand work.
There is no machinery used for this purpose because the quality of carving by
machinery will not reach carving by hand work.
Polishing
The next process is polishing, under the polishing department the first
process is surface furnishing by applying sand paper, Secondly filling the surface
by using transparent wood filter. It is used to fill up hols and small damages.
Thirdly the surface is coated with sealer, each time sand paper work is repeated,
and then the putty work done in all furniture by using matching colour wood. After
this work polishing work is carried out. There are deferent methods for polishing.
Under this polishes some are glazy and some are not glazy. After the polishing
works the furniture will move to the next section that is upholstery section.
Deferent polishing are;
Lacquer polishing
Melamine, gloss machine polish
Matt polishing
Ordinary wood polish
Upholstery
Upholstery is not used for all kind of furniture. It is used only for in sofa, divan
cot, dining chair, steel chair, etc. For upholstery work they using various types of
cloths, velvet, and cotton, and they are use high quality polythene. It is the last
step in the process of furniture making.
24 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
PRODUCTION PROCESS CHART
25 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
SIZING
SEASONING
CARPENTRY
POLISHING
STORE
CARVING
UPHOLSTERY
MACHINERIES USED FOR PRODUCTION PROCESS
The various machineries used by the firm for manufacturing furniture as
follows;
o CHAIN SAW 3HP
o BAND SAW 60HP
o RR SAW 15HP
o SEASONING PLANT 2HP & 75HP
o MINI RE SAW 5HP (designing& cutting)
o LATHE 1HP
o SPINDLE 3HP
o ROUTER 3HP
o SURFACE PLAINER 3HP
o THICKNESS PLAINER 3HP
o TENOTF SNF MORTISE 10HP
o WIDE BEHSANDER 15HP
o DRILLERS
o PANEL SAW
o BLOWERS
o COMPRESSORS
TREATMENT OF WASTE
Under this firm, the production takes various stages. Certain amount of loss
occurs in various stages of production. There is always some waste and sap-
wood. The wastes are sold as fire wood and dust.
26 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
QUALITY ASSURANCE
TIP TOP furniture Pvt. Ltd. Never compromise in quality assurance is their
main motto; special care is taken while manufacturing furniture. Seasoned wood,
excellent workers, grate furnishing are their key manufacturing or controlling
quality. TIP TOP furniture Pvt. Ltd. Has maintaining the export quality. They are
enjoying monopoly in high quality wooden furniture.
COST OF PRODUCTION
ITEMS COST IN PERCENTAGE
TIMBERS 30
WAGES FOR WORKERS 20
UPHOLSTERY 20
POLISHING MATERIALS 10
OTHER MATERIALS 20
27 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
STRUCTURE OF MATERIALS DEPARTMENT
28 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
MATERIALS DEPARTMENT
MATERIAL MANAGER PURCHASE MANAGER
WAREHOUSE SUPERVISOR
PROCUREMENT OFFICERINVENTORY CONTROLLER
STORE KEEPER
CLERKS PURCHASING CLERKS /ACCOUNTANT
CLERKS /ACCOUNTAN
MATERIALS DEPARTMENT
Material is one of the most vital factors for production and the most important
part of the necessary asset in all the organisations. Materials accounts for 60% of
the cost of production according to an analysis of the financial statement of large
number of privet and public organisation. Material management can be defined as
the function responsible for the co-ordination of planning, purchasing, moving,
storing, and controlling materials in an optimum manner so as to provide pre
decided services to the customer at minimum cost.
DEFERENT TYPES OF MATERIALS USED FOR PRODUCTION
TIP TOP furniture manly producing the furniture items; so wood is one of the
important materials they are using for production purpose; the main material for
production as follows:-
Timber
Upholstery materials
Steel items
Polishing materials
Nails, Nuts and Bolts
Packing materials
Other materials
29 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
COST FOR MATERIALS ON TOTAL MATERIAL COST
material Cost /percentage
Timber 35
Upholstery materials 25
Steel items 5
Polishing materials 20
Nails, Nuts and Bolts 3
Packing materials 5
Other materials 7
30 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
FUNCTIONS OF MATERIAL DEPARTMENT
There are mainly four major functions of material department
Purchasing of raw materials
Storing of material
Inventory control
Issue of materials
PURCHASING
Purchasing is related to the procurement or purchase of raw materials,
intermediate product and suppliers in the case of the manufacturing concern and
furnished products in the use of trading business. Purchase of capital equipment
and other business requisites all so include in the purchase function. The overall
objective of purchasing is organised and regenerate purchasing activity in such a
manner that materials of the right time at right price from the right source.
Purchase with in the country
The materials department purchase some items of woods from the suppliers
with in the country. The main sources are Nilambur, Wayanad, Kannur, etc.
sometimes they will purchase the woods locally.
Purchase from the out said of the country
The company purchase their materials sometimes from outside India. Quality
assurance is the main motto of the firm. They are using high quality of wood. The
woods are mainly imported from Africa, Malaysia, Burma, Thailand, etc. The
upholstery materials like velvet and other type of cloths are imported from UK,
USA, and Japan etc.
31 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
PURCHASE PROCEDURE
The other departments in the organisation make their purchase requisition to
the purchase department. This should send to the materials department for
conforming t purchase requisition and finely purchase department will place the
purchase order.
Purchase requisition
The purchase officer in the purchase department does not initiate any action
for the purchase of materials on his own accord. For purchasing the materials the
purchase department should get proper requisition letter from the concern
department the letter is known as ‘requisition letter.’
Floating enquires
After receiving the concerned requisition letter next step is decision regarding
from where materials is to be purchase, the purchase department keeps a list of
the suppliers which contain the name, address and other details about the
suppliers who are providing the required items of material for this firm. A number
of factors are to be considered while selecting the suppliers such as reliability,
financial position, quality of goods, terms of delivery, conditions of payment, etc.
Enquiries made in the prescribed form are sent to deferent parties for obtaining
quotation.
Selection of suppliers
After receiving quotation from the supplier’s next step is the purchasing officer
will compare different factors concerned with the materials and suppliers. While
selecting the supplier the purchase department consider the following factors,
manufacturing or supplying capacity, and reliability of the supplier, quality of the
product management of the supplying firm, price quoted, and terms of payment
terms of delivery.
After selection of suppliers the purchase department will call the concerned
supplier for negotiation. It includes deliberation on quality, quantity, price, time of
delivery, place of delivery, mode of transportation, etc.
32 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
Sending purchase order
After choosing the supplier, the purchase department prepares order or the
concerned supplier. The order is the written authorised to the supplier to supply
the particular material. Timber is the main raw material for this firm the material
department of the unit has regular purchase of the material like timber, polishing
materials upholstery materials, etc.
Receipts and inspection of materials
In large concern, a separate receipt and inspection department will function
for receiving and inspecting the materials under this firm the receipt and
inspection of materials are done in the stores of the materials department. The
functions of stores are to receive, guard and care for all the materials and to issue
them on proper requisition. The mode of transportation they are using is the road
transportation. When the materials arrived the head of the section is responsible
for making the delivery of goods. He has to check the materials with the purchase
order and he should verify everything is right.
33 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
CHART SHOWING PURCHASE PROCEDURE
34 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
Ascertaining the requirement of materials
Exploring the source of supply
Inviting quotation
Preparing comparative statement of quotation
Sending purchase order
Follow up of purchase order
STORING OF MATERIALS
The firm is storing all the materials in their warehouses. They are having
deferent warehouses for storing the materials. Under this firm the maximum stock
level is maintained by the material department is one year. In the case of timber 3
month is the average stock storing period other materials like polishing and other
chemical items will store for one month. To avoid problems arising due to the time
lag in receiving materials, they will keep half month materials as safety stock.
CLASSIFICATION OF MATERIALS
For storing and retrieving materials they are classified mainly in five types,
Woods, Polishing materials, Upholstery materials, Nuts and Bolts, and other
items. Manly four types of wood are used for making furniture; they are red wood,
rose wood, teak and mahogany. The main types of polishing materials are natural
polish, Lacquer polish, semi Lacquer polish, and melamine, matt and wood polish.
All these items are storing in deferent warehouses.
ISSUE OF MATERIALS
The store keeper issues the materials on proper authenticity to avoid miss
appropriation of materials. A materials requisition serves the purpose of an
authenticity to the store keeper to issue the materials; it is signed by the
authorised person. When the issue pass is received by the store keeper, he will
check the authenticity and verify whether it is filled and coded properly. Material
issued from the store is valued under first in first out (FIFO) method. The issue
orders are fed in the computer for day to day recording, all the information are
preparing by using the computer.
INVENTORY CONTROL
Inventories have the vital role in cost of product so we have to control the
inventories for reducing the cost of production. Under this firm in order to have
proper control on inventories, it is practiced to fix the minimum and the maximum
limits of inventory so that there should be neither over stocking of material or
35 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
shortage of material. To fixing the level of inventories they are considering two
factors.
1. The Time between purchase requisition and receiving the materials i.e.
lead time.
2. Rate of consumption during lead time.
Under this system an order of sufficient size is placed when a minimum point
in inventory is reached, to bring the inventory to the maximum point. Past
experience may help fixing of minimum and maximum point of inventories. One of
the other methods used by the firm for inventory control is Re-ordering level or
ordering level. It is a point where orders for fresh material are placed with the
suppliers. The point is fixed somewhere between the maximum and minimum
point. In such a way that the quantity available between the minimum level and
this point is sufficient to meet the requirements of production up on the time fresh
suppliers are received.
For fixing the ordering level, a danger level is considered. It is a level at
which normal issue of materials are stopped or made at specific instruction of
purchase officer. At this point the purchase manager makes the effort to get the
materials available wit in the earliest possible time. This level is below the
minimum level of stock. These are the important methods used by the firm for
inventory control.
36 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
STRUCTURE OF MARKETING DEPARTMENT
37 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
MARKETING AND SALES DIRECTOR
SALES MANAGER MARKETING MANAGER
SALES OFFICERS MARKETING RESEARCHER
SALES MANS MARKETING EXECUTIVES
MARKETING AND SALES DEPARTMENT
The marketing department must act as a guide and lead the company's other
departments in developing, producing, fulfilling, and servicing products or services
for their customers. The marketing department typically has a better
understanding of the market and customer needs, but should not act
independently of product development or customer service. Marketing should be
involved, and there should be a meeting of the minds, whenever discussions are
held regarding new product development or any customer-related function of the
company.
The Marketing Department focuses on all product and brand functions, and is
generally headed by the director of marketing. Product or brand managers under
the director are usually assigned to a specific brand or category of products. Sales
management is the term applied to the process of distributing goods from the
producer to the ultimate user. It consists of advertisement, selling, storing,
transporting, financing and risk taking.
SALES DEPARTMENT
The sales department is responsible for meeting the sales and volume goals
as set forth by the chief marketing officer. The department is usually headed by
the director of sales. The sales department works closely with the marketing
department, providing vital insights and feedback on customer needs, issues, and
the competition. Most of their work is external. They are charged to develop strong
sustainable relationships with retailers and key clients and increase sales orders.
Feedback from the sales department is critical and greatly relied upon in new
product development, analyzing pricing, and identifying new channels for
distribution, sales and marketing efforts.
Tip top furniture is following the indoor selling system they are selling the
goods to the customers who visit the showroom for purchasing furniture. Seven
sales executives are working in the showroom at kottakkal for capturing the
customers. In the year 1995 they started their export business in small manner,
38 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
now they are concentrating more foreign market. Furniture supplied from Tip Top,
adorn the palaces of many Sultans of Gulf as well as many VIPs of Europe, UK
and USA. Tip Top has every reason to be proud of its products that are still sought
avidly by many from India as well as from abroad. Such is the quality of his
furniture. He thinks in terms of decades than immediate future.
Today, Tip Top Furniture Mart has branches in Trivandrum and Kochi too,
apart from its giant showrooms at Kottakkal, Perinthalmanna, Kozhikode,
Kunnamkulam and Kannur. More over franchisees has also been given to some to
deal with his trademark furniture elsewhere.
SALES AND PROFIT ANALYSIS
PROFIT
SALES (IN
CRORES)
PROFIT (IN
CRORS)
2003-04 21.83 4.06
2004-05 30.71 7.35
2005-06 35.71 8.93
2006-07 42.91 13.16
2007-08 48.05 18.9
2008-09 54.32 21.9
2009-10 61.42 23.2
2010-11 68.12 24.9
39 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
2003-o4 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
21.83
30.7135.71
42.9148.05
54.32
61.42
68.12
4.067.35 8.93
13.1618.9
21.9 23.2 24.9
sales profit
MARKET SIZE OF TIP TOP FURNITURE
TIP TOP furniture Pvt. Ltd. Market its products both in the domestic market
and the international market. Majority of the products are selling in the domestic
market.
Home market
The home market comprises of the area within the state and outside the state.
The firms customers are mostly located the district of malappuram Calicut, trichur,
and cannure, etc. The products are also having the demand from the southern
districts of the state and other state like tamilnadu and Karnataka. The company
gives most care and attention to maintain the quality and perfection of its
products. Still the company is facing its problem in meeting the demand in roper
time. Most of the customers are NRIs, business mans and other rich peoples in
the society. The firm is planning to start its business in all over India currently they
are starting Cochin, karunagapally and Bangalore.
40 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
International market
The company is having wide range of international market for its products.
Nowadays the company is more concentrating in foreign market. It started
exporting in the year of 1995, the main countries they are exporting is Bahrain,
UAE, Dam am, Muscat, and Saudi Arabia.
ADVERTISEMENT
Advertisement is one of the main functions of sales and marketing
department. It is the pivot of modern trade and commerce. Advertisement is the
art of making know to the percent prospective customers the existence of service
and commodities meant for sales. The TIP TOP furniture is using deferent method
of advertisement. They have chosen some Medias for advertisement like news
papers, magazines, periodicals, journals, printed and flex board in public places,
direct mail advertisement, delivery vans, etc. They are using the modern methods
like visual Medias and internet advertisement. The company is having the website;
it is also a tool for the company to advertise its products it focuses the world level
customers.
SALES PROMOTION ACTIVITIES
Every business wants to increase the sale of goods that he deals in. He can
adopt several Ways for that purpose all these are incentives offered by
manufacturers or dealers to increase the sale of their goods. These incentives
may be in the form of free samples, gifts, discount coupons, demonstrations,
shows, contests etc. The TIP TOP furniture also using this kind of promotional
tools for increasing their sale some of the important tools they are using are;
premium or bonus offer, exchange schemes, price-off offer, fairs and exhibitions,
scratch and win offer, money back offer, etc.
41 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
PRICING POLICIES
TIP TOP is manly looking for the high income people so the price range of the
products are also higher compare to other firms. Based on the variation in the
market the price level will change, the prices are changing on the basis of
changes in the raw material and other items cost. They are using the cost plus
pricing strategies for their products.
CUSTOMERS OF TIP TOP FURNITURE
The most of the products of TIP TOP are costly products they are mainly
looking for middle class and upper class people. They are producing the products
for high standard people. And the company providing more services to its
costumers if the customers are not satisfied with the products in the showroom,
they will make the products according to customer’s preferences.
PRODUCT MIX OF TIP TOP FURNITURE
SOFA
DIVAN COAT
TEA POY
DINIG TABLES
DRESSING TABLES
COTS
CULERY CUP BOARD
WARDDROBE CABINET
CAHAIR
FLOWER STAND
STOOLS
STUDY TABLE
DOORS
PARTITION AND
PANELLING
MIRRORS
T.V. STAND
KITCHEN UNIT
SIDE BOX
OFFICE AND
COMPUTER TABLES
STAIRCASES
42 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
STRUCTURE OF HUMAN RESOURCE DEPARTMENT
43 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
HUMAN RESOURCE MANAGER
RECRUITMENT OFFICER
TRAINING AND DEVELOPMENT
OFFICERS
OFFICE WORKERS
FACTORY WORKERS
HUMAN RESOURCE
OFFICER
HUMAN RESOURCE DEPARTMENT
With the increase in the size of business, manpower has become the most
vital factor in business. Human recourse management is a specialised branch of
management that deal with the people in the organisation. Human resource is the
principal asset of business or industry. People are the main subject matter of
human resource management and its business to educate employees, managers,
line and staff and supervisors to place high value of the dignity and work of
individual human being.
Human resource management is the part of total management of Tip Top
furniture Pvt. Ltd., which specially deal with human resource with respect of their;
44 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
RECRUITMENT AND SELECTION
Recruitment is a linking function joining together those with job to fill and
seeking jobs. Recruitment makes it possible to acquire the number and type of
people necessary to ensure the continued operation of the organisation. The
recruitment and selection process under TIP TOP Furniture are doing in two ways
internal recruitment and the external recruitment.
Internal recruitment
The internal recruitment is seeks applicants for positions from those who are
currently employed in this organisation the main methods of internal recruitment
are transfer, promotion of present employer and employee references. An
employer and employee reference is the main method of recruitment.
External recruitment
45 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
HUMAN RESOURCE DEPARTME
NT
INCENTIVES AND LABOUR
WELFARE ACTIVITIES.
RECRUITMENT AND
SELECTION
TRAINING AND
DEVELOPMENT
REMUNERATION AND
WAGES
PROMOTION AND
TRANSFER
The external recruitments under TIP TOP are advertisements, personal
constancy, recommendations and labour contractors. The advertisement method
is usually applied for selecting office staff and supervisors etc. Under this
organisation the recruitment are mainly done through newspaper advertisement
and personal constancy .the applicants are given practical tests to assess their
skill and if it is satisfied they will be kept under probation for one year. After the
probation period, they are permanently appointed in the factory.
SELECTION
Various tools and techniques are adopted by the firm for the selection of
candidates for various categories of post. Application blanks are employed for
extracting the detailed bio-data of candidates. The company calls the eligible
candidates for interview. Practical and written test are conducted for selection to
technical post. For the post of clerical staff, written test and interview are
conducted for the candidates.
TRAINING AND DEVELOPMENT
Training is the important subsystem of human resource department training is
a specialised function and it is one of the fundamental operative functions for
human resource department. Every organisation should provide training to all
employees irrespective of their qualification, skill, and suitability for the job.
Training is not something that is done once to new employees it is used every
time in this organisation.
Under this firm the selected candidates are given training in the specified
jobs at the end of the training period the trained people must be capable of taking
work as per the conditions if the employees are not able for particular work the will
treated as cancelled. The training activities are conducted not only for new
employees it is used continually in every well run established further,
technological changes, automation, require up-dating the skill and knowledge.
46 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
REMUNERATION AND WAGES
The literal meaning of reward is to counter balance. In the case of human
resource department, compensation is reefed to as money and other benefits
received by an employee for providing services to his employer. Compensation
and reward system plays vital role in every organisation since among four Ms i.e.
men, material, machine and money. Man has been most important factor it is
impossible to a business imagine process without men.
Under this organisation they are using deferent reward system for the
employees, the workers in the factory are compensated on the basis of hourly
rate, and their remuneration is RS 25 to 50 per hour. Remuneration is deciding on
the basis of work, speed, accuracy. The skilled workers can get RS 450 to 600-
per day, the semi skilled workers can get RS 300 to 400- per day the average
labourer can get RS 150 to 250- per day. All payments are paid monthly basis.
Other employees in this organisation especially workers in the office and
administrative, they all are working on salary basis.
INCENTIVES
Bonus
Employees who are drawing more than Rs.3500/- per mount are eligible for
bonus almost all the employees working here are eligible for bonus irrespective or
casual worker.
Gratuity
Minimum amount payment payable as gratuity is Rs.3500 Employees having
continues services of the year are eligible for gratuity.
Employees Insurance
All the employees working here come under Employees insurances Scheme.
47 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
PROMOTION
Promotion is the movement of an employee from a lower position to another
position with a better pay, and responsibility. Every organization chances of
promotion chances of promotion came up occasionally. Employees will consider
for promotion only if they have qualification and experience in the respective field.
The application received will be screened by the personnel department. Every
employee promoted to a higher post will be on probation in that post for a period
of one year. Four factors are considered for promoting an employee.
Seniority
Test/Interview
Attendance
Performance
ACCOUNTS DEPARTMENT
The respect and reputation gained by an organization came from the
effectiveness of its internal department. The efficiency of a department differs on
the level of knowledge and skills carried out by the people working within it. Most
of the departments are enumerated as the human resource department,
marketing, production department and the accounting department. However, all of
the departments are not given such importance because of the complexity and
difficulty in understanding their functions. In most cases, the accounting
department often involves criticisms because of the complexities from the external
business environment and thus their roles within the organization change as well.
Accounting departments are expected to perform, not only to relay all the needed
financial reports and book-entering, but to also participate in making a sound
decision. The shares of economics, logic, and mathematics in the accounting
make the profession effective in the face of the world.
48 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
TIP TOP furniture’s accounts and finance department is working in the main
branch at kottakal. The company is following the double entry system, the
accounts section is fully computerised. The department is responsible for
coordinates bookkeeping, budgeting and financial reporting.
The Accounting Department is divided into two divisions.
Budget Division
The Budget Division prepares the draft budget and amended budget drafts for
firm’s structural units and institutions within its jurisdiction (subjects of the general
budget), guarantees the resources necessary for the firm’s activities and
development, audits and submits a report to subjects of the general budget on the
use of finances and proprietary obligations.
Bookkeeping and Accounts Division
The Bookkeeping and accounts division guarantees the acquisition of up-to-
date, important, objective and comparable information regarding economic and
interim account reports on internal expenditure.
MAIN FUNCTIONS OF ACCOUNTS DEPARTMENT
The Company maintains a clear and perfect accounting system. The main
activity of the Finance Department is Working Capital Management, Preparation
of Fund statement, cash Flow Statement, Balance Sheet, Profit and Loss
Account, etc are the activities of Financial Department. Secretarial work relating to
Board comes under the review of the Finance Department. Most of the activities
carried out by the Finance Department are pertaining to long term and short term
requirements of the operation, closing purchase bill, maintaining the account of
49 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
contractors, subcontractors, income tax deduction, salary discrepancy, dealing
with the financial institutions with imports and exports are also the functions of the
Financial Department.
To record/get recorded initial entries of all financial transactions in the initial
books of record and to ensure their proper maintenance.
Preparation and submission of monthly Accounts.
To maintain Objection Book of Accountants.
Preparation and submission of monthly progress reports of works-in-
progress and targets.
To reconcile the annual Accounts/March Financial Accounts.
To prepare and submit the annual accounts of the firm.
To control the budgets and maintain the Accounts, books of records for
budgetary control.
To prepare the annual budget estimates/revised estimates of the firm.
To test check and internally audit the accounts.
To tender financial advice to the departmental Officer.
To maintain the Voucher Registers and all the monthly vouchers properly.
To maintain and keep updated all the subsidiary books/registers of accounts
like, property register, stock register, inventory register, Ledger and other
related records/registers.
CASH MANAGEMENT
Cash is the important current asset for the operation of the business. Firm
should keep sufficient cash, neither more nor less. In this context cash
management of a company is very important. At TIP TOP cash flow forecasting is
done for a short term period. The adjusted net income method is used for the
short term forecasting. Cash budget is prepared periodically. When the company
is running on profit, it is prepared monthly.
50 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
The major cash inflow and out flow at TIP TOP is through operating activities.
It is giving only adequate importance to collection, since most of the sales are
done on ready cash.
PROBLEM ANALYSIS
TIP TOP FURNITURE Pvt. Ltd. was started in the year 1982 and toddy they
are one of the leading furniture giant which believes in loyalty and hard work.
Today they are having business all over the state and country and now they
started their business in international level especially in gulf countries. Today they
are the growing business concern in the furniture industries.
After studding about the firm one of the main problems in TIP TOP furniture, I
found out is that in the human resource department. That is the company is not
following the real recruitment system in the organisation. They are recruiting
employees manly through reference system. That means they are recruiting the
employees based on the reference from employees and management. So The
Company is not getting proper young and efficient people. Another problems
relating to this firm is the incentive programs. The firm is not providing proper
51 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
incentive programs to its workers they are not conducting proper performance
appraisal programs for rating the performance of the employees. it will affect the
performance of the employees. There is also problem in company’s wage and
salary structure, their wage structure is less coppered to other firms so it will affect
the young, well trained and experienced employees.
The problems in the other area are the marketing department. The problem
facing the marketing department is firm is looking manly for high income people so
marketing separately for this kind of people is difficult for the organisation and
another problem is in the marketing the products in international level , the firm is
not able to market the products in international level properly, this area also firm
have to improve.
52 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
Chapter 4
SWOT ANALYSIS
STRENGTHS
Increasing demand in modern, clean and minimalist designs.
High quality and standard products.
Large size of market within the country and all over the world.
Established branding and tradition.
Speciality of craftsmanship.
Less number of competitors in the field of furniture exporting.
Highly educated, skilled, young, capable & dynamic human resources.
Well established manufacturing base.
53 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
Healthy financial structure.
WEAKNESSES
The Price ranges of products are very high and not affordable for all kind of
people.
Problems for designing the products based on deferments in culture and
taste of customers.
Unavailability of ready to use seasoned wood.
Lack of international marketing skills.
High cost of production due to high rate of raw material.
54 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
OPPORTUNITIES
Big potential market in furniture Design and emerging new market segment
in furniture.
Increasing interiors and real estate industry in India
Very little competition in modern furniture design.
More efficient production method.
Modernization in furniture usage and concepts.
Availability of modern technology and equipment.
55 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
THREATS
Competitions from new entrants in to furniture industries.
Shortage and supply of materials at proper time.
Availability of low quality furniture in low price.
Rising cost for materials and other equipment will increase the cost of
production.
Unfavourable polices from government will affect the industry.
56 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
57 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
CHAPTER 5
FINDINGS
CONCLUSION
RECOMMENDATIONS
FINDINGS
The company has been in the field of furniture in the last 32 years; so it is
one of the experienced firm in the furniture industry.
Quality is the main motto of the company; that is the reason customers
prefer this company.
The Price ranges of products are very high and it is not affordable for all
kind of people.
58 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
The firm is having large size of market within the country and all over the
world.
Highly educated, skilled, young, capable and dynamic human resources are
the main asset of the firm.
The firm is does not having proper international marketing skills for
marketing at international level.
Advertisement is the main tool used by the company for marketing its
products.
Majority of customers believes that the furniture they on reflect their stats.
CONCLUSION
It was a small and humble beginning for Mr Saidalavi of Kottakkal. He just
wanted to add comfort to the life of many by way of creating furniture. He began to
make household furniture with legendary quality and ethnic touches on most-
wanted woods from kottakkal, decades back. Soon all kinds of furniture, made in
Teakwood, Rosewood, Mahogany etc. began to roll out from his small furniture
store in Kottakkal to many places not only in India but abroad also.
Today the firm is renowned for its high quality of products. They have very
good demand for their products in spite of huge product tag. Today it is the one of
59 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
the leading furniture giants which believes in loyalty and hard work. Quality is the
main motto of the company; that is the reason customers prefer this company, and the
firm is having the advantage of less number of competitors in the field of furniture
exporting. And every department in the firm is controlled and managed by
professional and experts in the respective fields. And the firm is more concerned
for quality and customer satisfaction.
RECOMMENDATIONS
The firm only prefers for high income people, if they are segmenting the
market in to high and middle, it will give more advantages to the firm.
The firm have to improve their international marketing skill; it will help them for
increase sales at international level.
The furniture industry in India is growing at a higher rate so the firm can make
more invest in their business.
60 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
The firm should use the opportunity of growing real estate and office
constriction.
BIBLIOGRAPHY
o http://www.tiptopfurnishing.com/about.html
o http://www.worldfurnitureonline.com/showPage.php?
template=reports&masterPage=Market-research.html
o www.economywatch.com/business-and.../ furniture - industry .html
o http://www.indianmirror.com/indian-industries/furniture.html
61 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
62 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
63 INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES BANGALORE
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