INTRODUCTION

As a part of our MBA curriculum, an organizational study was done in

SITARAM BAJAJ, THRISSUR. One of the main objectives of the study

was to get acquainted with a real time working environment and to develop

first hand knowledge of the dynamics of an organization. It also helped to

understand the various functional and managerial aspects of the organization

as well as a practical knowledge regarding the management of the business.

OBJECTIVES OF THE STUDY

The objectives of the organizational study are:

PRIMARY OBJECTIVES

1. To get an idea of the organization and their organization structure.

2. To understand about the various department of the organization; the

objectives of each department and its functions.

SECONDARY OBJECTIVES

1. To find out the problems faced by the organization in achieving their

goals.

2. To get the feel of actual working environment and to get acquainted

with it as well as the managerial aspect of the company.

3. To get some idea about two-wheeler industry.

METHODOLOGY OF STUDY

The methodology used in the study involves the collection of the primary

data and secondary data. The primary data was collected directly by

interviewing the departmental heads as-well-as the people working in the

departments and other staff of Sitaram Bajaj, Thrissur. The secondary data

were collected through the reference of brochures, books and the details

available on web sites.

LIMITATIONS OF THE STUDY

1. A constrain was very less time, which prevented me from visiting

all departments, as a result, the information has been obtained from

secondary sources.

2. Busy schedule of the officers and employees prevented lengthy

discussions.

3. Due to the lack of time and busy schedule of the employees not

many details about work could be collected.

2.1 INDUSTRY PROFILE

The Bajaj Group is amongst the top 10 business houses in India. Its

Footprint stretches over a wide range of industries, spanning automobiles

( two- wheelers and three- wheelers), home appliances, lighting, iron and

Steel, insurance, travel and finance. The group’s flagship company, Bajaj

Auto is ranked as the world’s fourth largest two- and three wheeler

Manufacturer and the Bajaj brand is well-known in over a dozen countries

In Europe, Latin America the US and Asia.

Founded in 1926, at the height of India’s movement for independence

from British, the group has an illustrious history. The integrity, dedication,

Resourcefulness and determination to succeed which characteristics are of

the group today, are often traced back to its birth during those days of

relentless devotion to a common cause. Jamnalal Bajaj, founder of the

group, was close confident and disciple of Mahatma Gandhi. Infact,

Gandhiji had adopted him as his son. This close relationship and his deep

involvement in the independence movement did not leave Jamnalal Bajaj

with much time to spend on his newly launched business venture.

His son, Kamalnayan Bajaj, then 27, took over the reins of business in

1942. He too was close to Gandhiji and it was only after independence in

1947, that he was able to give his full attention to the business. Kamalnayan

Bajaj not only consolidated the group, but also diversified in to various

manufacturing activities. The present Chairman and Managing Director of

the group, Rahul Bajaj, took charge of the business in 1965. Under his

leadership, the turnover of Bajaj Auto the flagship company has gone up

from Rs.72 million to Rs.46.16 billion (USD 936 million), its product

portfolio has expanded from one to and the brand has found a global market.

He is one of the India’s most distinguished business leaders and

internationally respected for his business acumen and entrepreneurial spirit.

Bajaj Auto has a technical tie-up with Kawasaki Heavy Industries of

Japan to produce a range of the latest, state-of-art two-wheelers in India.

Since the tie-up in 1986, Bajaj Auto has launched KB100, KB RTZ, KB125,

4S, 4S Champion, Boxer, Caliber, Caliber115, Wind125 and India’s first

real cruiser bike, the Kawasaki Bajaj Eliminator. A fortune 500 company

with a turnover of USD 10 billion (Rs. 45,840 crore), Kawasaki Heavy

Industries has crafted new technologies for over a hundred years. These

technologies have redefined space systems, aircrafts, jet engines, ships,

locomotive, energy plants, construction machinery, and automation systems,

apart from a range of high quality, high reliability two-wheelers. Kawasaki

has given the world its legendary series of 600-1200cc Ninja and 1600

Vulcan bikes. Straight from Kawasaki design boards, the Kawasaki Bajaj

Eliminator redefines the pleasure of “biking” in looks as well as

performance.

Quality Policy

Bajaj Auto continues to firmly believe in providing the customer value for

money, for years through our products and services. This we shall maintain

and improve, in our decision making, quality, safety, and services will be

given as much consideration as productivity, cost and delivery. Quality shall

be built in to every aspect of our work life and business operations. Quality

improvements and customer satisfaction shall be the responsibility of every

employee.

TPM Policy

Bajaj Auto adopt Total Productivity Maintenance as a means of creating a

safe and participative work environment in which all employees target the

elimination of losses in order to continuously enhance the capacity,

flexibility, reliability and capability of its processes, leading to higher

employee morale and greater organizational profitability.

Group Company

Bajaj Auto is the flagship of the Bajaj group of companies. The group

comprises of 27 companies and was founded in the year 1926. Bajaj Auto’s

three plants at Arkudi, Waluj, and Chakan in Maharashtra, western India,

produced 1,814,799 vehicles in 2004- 05.

Recruitment policy

Bajaj Auto is an equal opportunity employer. Selection is based strictly on

individual merit. A large number of our recruits are fresh engineers and

MBAs. Natural attrition is usually taken care of by promotions and

horizontal movements within the organization to provide career

opportunities for our employees. Occasionally, specific skill-sets may

warrant lateral recruitment.

Entry level Recruitment Engineers: Bajaj recruits Engineering Graduates

from reputed institutes from all over India. Bajaj Auto enjoys an excellent

reputation with all National Institute of Technology (NITs) and is among

preferred employers for on campus recruitment. The selection process

comprises a written test in technical, analytical and logical reasoning, group

discussion and personal interview.

Management Graduates: Bajaj recruit management graduates from

reputed management institutes all over India. The selection procedure

comprises a written test in analytical and logical reasoning, group discussion

and personal interview. All entry-level selections are made through campus

recruitment only. After recruitment new entrants undergo a thorough

induction-training program before their placement in the company.

Departments are allocated on the basis of the individual recruit’s aptitude

and our requirements. Usually, after completing two years of service they

are provided opportunities for job-rotation.

Work culture

Bajaj’s work culture supports and enhances our brand. The Bajaj brand

signifies excitement. Bajaj strives to inspire confidence through excitement

engineering. The culture is built on core values of learning, innovation,

perfection, speed and transparency. Facilitative leadership style helps in

developing leaders at all levels and establishes accountability.

Our Brand Values

Bajaj live our brand by its values of innovation, perfection, and speed.

Bajaj will be distinctly ahead through excitement engineering. Innovation is

how we create the future. It is a value that provokes us to reach beyond the

obvious in pursuit of that which exceeds the ordinary. Perfection is how we

set new standards. It is a value that exhibits our determination to excel by

endeavoring to establish new benchmarks all the time. Speed is how we

convey clear conviction. It is a value that keeps us sharply responsive,

mirroring our commitment towards our goals and process.

Competency Building

Bajaj Auto has a very flat organization structure with three management

levels. Each level represents a specific role and hence needs relevant

competencies. Competency building at Bajaj Auto is a combination of

development for current and future roles. We cater to these needs by using

intervention like development centers, need-based training and job-rotation

plans. We use different methods of imparting training like lectures, group

discussions, role-plays, seminars, outbound training, assignment and on-the-

job tasks.

Compensation Philosophy

Bajaj strive to be amongst the top quartile in our compensation structure.

Competence and performance are the key drives of our compensation policy.

A significant part of the compensation is in the form of variable pay linked

to the individual’s and the organization’s performance.

2.2 COMPANY PROFILE

SITARAM GROUP

It would appropriate to appraise herewith Sitaram group and its business

activities, past and present. As for the track record of the family business, it

is roughly a century old in business and is toppers in so many fields. The

models C$FA status in the whole country, consecutively for a number of

years by M/s Hindustan Lever Ltd, top distributor for M/s Philips India Ltd,

for the all South India, first dealer in Kerala to retail 1000+ motorcycle in a

month, one of the fastest 1000+ Maruti car seller etc, to name a new of their

achievement.

Sitaram group is one of the oldest business houses in Kerala,

established way back in 1908 by the great Sri.T.S.Balarama iyer. Sitaram

spinning and weaving mills, clicked off under his leadership. This was the

beginning of a business empire which has now the dominance among the

leading business groups in Kerala, especially in Thrissur. The footsteps of

the great man who had a vision for the years ahead are perfectly followed by

his son Mr.T.B. Subbarama iyer and his four sons ensuring that the group

maintains its high standard.

The group’s entire distribution network is looked after by the eldest

son, Mr. T.S. Balaraman. Mr. T.S Venkitaraman, the second son is the in

charge of packing units. The clearing and forwarding units are headed by

Mr. T.S. Sivaraman, while the youngest son Mr. T.S. Sitaram, in charge of

Automobile segment of the group. Mr. T.B. Subbarama iyer co-ordinates

the overall activities of sitaram group of companies.

The corporate office of the group is located at Punkunnam, Thrissur,

Kerala. Well trained and dedicated staff each responsible for individual

profit centers, fully computerized accounts, separate delivery vans catering

different products, fixed route schedule etc are some of the key factors to our

success over the years.

HISTORY OF SITARAM GROUP

Sitaram group is one of the oldest business houses in Kerala,

established way back in 1908 by the great Sri. T.S. Balarama iyer, who is the

father of present stalwart of the institutions. He founded the first spinning

mill of South India at Thrissur nearly a century ago with more than five

thousand workers and employees. Other minor establishments like Sitaram

Ayurvedic Pharmacy Ltd (SAPL) petroleum agency, tile manufacturing etc.,

were also founded by him. Their establishment was supplying electricity to

Thrissur municipality at one time. Due to political and labor reasons, the

management of Sitaram Mills Ltd, was handed over to the government in the

late 60’s of the last century.

ESTABLISHMENTS OF SITARAM GROUP

Sitaram group starts business in various fields. Some major fields,

where sitaram group put their sign are distribution networks, contract

packaging, communication, clearing and forwarding, auto mobiles etc. A

brief description about the establishments of sitaram groups is below.

Distribution network

We are the distributor for the Blue Chip Companies for Thrissur district.

Our distribution setup was started in 1972. Unarguably we are one of the top

distributors in all most all the lines we handle.

Re distributors for

Philips India Ltd.,

Johnson $ Johnson Ltd.,

Cadbury India Ltd.,

Godrej Soaps Ltd.,

Protech Appliances.

Kwality Biscuits.

Finolex Cables.

We have 10000 sq.ft of storage area in the heart of city, Dedicated

Transporting arrangement, 75 numbers of trained and professional

manpower etc for effective distribution of products.

Contract packaging

Sitaram Packers are the blending and packing contractors for M/s

Hindustan Lever Ltd (beverages division) for their popular tea brands like

Deepam, 3 Roses, Taaza, A 1 Dust, Top star etc. the entire process is carried

out with utmost care in our own fully mechanized 22000 sq. ft factory

complex.

Communication

Sitaram reliance (super DSA)

Sitaram Reliance Intercornm is the super DSA in Thrissur and started

operation on 16th November 2005. This is the first entrance of Sitaram

Group in to the telecommunication sector.

The major features of Sitaram Reliance are 1250 sq.ft of infrastructure,

60 numbers of trained and professional manpower etc. Being started recently

there is no turnover specified.

Clearing and forwarding

The group’s clearing and forwarding activities, started in 1973, are

carried out in the name of Sitaram Trading Company. Currently, we are the

C$F agents for M/s Hindustan Lever Ltd for their beverages and foods

division. Popular brands like Dalda, Anikspray, Milkana, Kissan squash and

jams, Tea and coffee are being dispatched from here. The operations

includes receipts/ dispatches, billing, banking etc. Our godown is newly

constructed, close to the city, and confirms to the hygiene standards

applicable for storing food products.

Our company is the authorized C$F agents for Electrolux Voltas Ltd

(refrigerators and washing machines) and Alwyn Ltd (refrigerators, washing

machines and storage cabins) also.

Automobiles

Sitaram also have two automobile establishments in Thrissur. Sitaram

motors deals with four wheelers. They are the authorized dealers of Maruti.

Another one is sitaram Auto sales and services deals with two-wheelers.

They are the authorized dealers of Bajaj Auto Ltd. Sitaram has sub dealers

Thrissur to reach out its customers, 7 Authorized Services Centers, 8 Rural

Service Outlet, and 2 young Engineering Service. 2009 is their 12th year of

operation.

COMPANY’S MISSION

Provide job opportunities with excellent work atmosphere.

Consolidate our position as leaders in all our areas of operations.

Respond quickly to market and gain competitive advantage in all

our activity.

SITARAM BAJAJ

Sitaram Auto sales and services are the dealers for Bajaj Auto Ltd’s

two and three wheelers for Thrissur. Our show room is the largest in

South India and the first standardized one in Kerala. Vast selection area,

pneumatic tool assisted working base, smoke less work shop

arrangement, dust free engine room and service centre, separate sales and

spare parts counters etc, are the specialties of the showroom . And we are

also selected as Hi-end Dealers for Bajaj Auto Limited.

Our workshop/service centre is of ideal plus standard recently. There

are only two ideal plus workshop in Kerala and with the co-operation of our

dedicated staff; we are one amongst the two.

22000 sq.ft of showroom + service centre in the heart of city.

Sitaram setup their showroom and service centre in heart

of Thrissur city. So they can know the pulse of market. There by they can

make decision about sales promotional activities, selling expenditure.

9 branches

Sitaram Bajaj has 9 branches in Thrissur District. They are

1. Triprayar

2. Vadanappilly

3. Perinjanam

4. Vellankallur

5. Kuriachira

6. Cherpu

7. Kechery

8. Nelluvai

9. Thiruvillwamala

155 numbers of trained and professional manpower.

Sitaram Bajaj has 155 professionals as employees. The

management provides 20 days on the job training for freshers. After

getting training, they are efficient enough to achieve targets.

25 crore turnover

In 2008-09 Sitaram Bajaj’s turnover is 25 crore. A well designed

strategy, hard working of employees, etc are behind this great

achievement.

FUNCTIONAL DEPARTMENTS

Sitaram Bajaj has 7 functional departments. These separate

departments are well co-ordinate by the management. This is also facilitated

division of work and specialization in work. The various departments are

Sales and marketing Department, Finance Department, service department;

personnel department, purchase department, spares department and system

department.

SALES AND MARKETING DEPARTMENT

Marketing department is headed by marketing manager. Under him there

is an assistant manager, sales executives, trainees and showroom hostess.

Around 30 staffs are working under this department. Sales of motorcycle are

done through showroom. Three strategies for effective sales are

Field visit by field executives

Telephone enquiries

Walk- in customers

FINANCE DEPARTMENT

Finance plays a vital role in the success of every organization. In

sitaram Bajaj sales receipts and expenses are closely controlled by the

finance manager and assisted by accountants and cashier. Various accounts

registers and records to meet statuary requirements and management’s

controls help the customers to get motor cycle loans.

SERVICE DEPARTMENT

The service is located in the heart of the city. More than one thousand

motor cycles are serviced in every month. Service department has separate

section which provides help to the customers regarding any trouble with

their and a unit known as accident service is accessible to customers for

claiming insurance after meeting an accident.

HR DEPARTMENT

The personnel department is headed by the showroom manager who

works as the personnel manager. The security personnel, time office clerks

and other administrative clerks etc are working under him. This department

takes necessary steps to recruits stable person as per the requirements of

various departments. Employee’s attendance, leave, over time etc are

monitored and recorded by this department. This department looks after

good liaisons with various government departments and legal/statutory

departments conduct training programs and a meeting for employees to keep

up the discipline morale of the organization and to ensure smooth

functioning of the organization.

PURCHASE DEPARTMENT

The stores department monitors the stock, receipts, and consumption of

various materials and spare parts to maintain the optimum level of each item.

The purchase section contracts suppliers for the procurement of the items

advised by stores so as to get the item with the finance department so that

payment can be made as and when required. There are two main storage

sections one for motorcycle storage and the other for the spares parts storage

in service station.

Market

The term market is derived from the Latin word “Marcatus” which

means merchandise, trade or a place where business is conducted. Market is

a geographical area where commodities are exposed for sale. It is the sum

total of the situation or environment in which the resources, activities,

attitudes of the buyers and sellers, affect the sales for the product in a given

area.

Definition of marketing

The definition formulated by the definition committee of American

Marketing Association is “marketing is the performance of

business activities that direct the flow of goods and services

from purchaser to consumer or user”.

The modern definition of marketing by Stanton is “marketing is

total system of interacting business activities designed to

plan, price, promote, and distribute want satisfying product

and services to present and potential customer”

Features of marketing

By considering the definition of marketing, we can conclude that

modern marketing has the following features.

1. Distribution of goods and services: Distribution of goods and

services is the traditional concept of marketing. The term distribution

covers all other activities such as transportation, storage, grading, and

all other efforts of the wholesalers and retailers. These activities,

though do not form part of production, they are covered by term

distribution.

2. Delivery of standard of living: Modern business managers consider

marketing as consumer oriented. Therefore, the major function of

marketing is the satisfaction of consumers’ desires for goods and

services. The structure and efficiency of the marketing system

strongly influence the amount of satisfaction derived by the

consumers. In other words, it vitally affects the standard of living

demanded by the people.

3. Creation of utilities: Marketing activities try to create three types of

utilities – time. Place and possession utilities. The creation of such

utilities adds value to a product.

4. Generation of revenue: Consumer’s satisfaction alone is not the only

object of marketing. It does not overlook the producer. From the view

point of the firm, it is marketing’s responsibility to generate revenue

of a cost which will allow a reasonable profit to be realized from its

operations. The marketing manager is, therefore, expected to work for

a revenue, which will be in excess of the cost incurred for

salesmanship and advertising.

Objectives of marketing

The first and foremost objective of all marketing activities is the satisfaction

of human wants. Besides it has other objectives also. Some of the objectives

are-

1. Profit maximization is another objective of marketing. If the firm fails

to earn decent profits, its very existence itself may be handicapped.

Some authorities consider profit as only an incentive but not an

objective.

2. Successful distribution of products is another notable objective of

marketing. Effective distribution refers to the free flow of goods and

services to the consumers.

IMPORTANCE OF MARKETING

An effective system of marketing is a condition precedent for a high

level of economic activity. It is not only for the firm producing the

product but also to the society which uses the product. Moreover, its

importance to each is growing rapidly in the recent years. Its importance

can be well understood by the student if he knows what marketing does

for the society and to the firm. Now we shall discuss them in detail.

Benefits to the society

The benefits of marketing to the society can be summed up as follows:

1. Delivers the standard of living: marketing help to

achieve maintain and raise standards of living of the community.

Now-a- day’s production is carried on mass scale. Mass

production needs mass marketing. Both production and sales on

mass scale bring down the cost of production and increase the

amount of profit. Besides, the consumers are also benefited by

getting a variety of goods at a lower price. Lower price results in

larger consumption by more consumers and thereby their

standard of living is increased. On the other hand, if production is

restricted, prices will become high and the number of consumers

will also become less. At the same time, the producer cannot also

increase his total income because of the ultimate reduction in the

volume of sales.

However, marketing alone is not the only

determinant of the standard of living. There are other factors like

production, purchasing power, etc., which do affect the standard of

living.

2. Connects the producers and consumers: The

very object of production is consumption. The producer produces

goods and services for the purpose of selling. Therefore, they

should get in touch with the consumers who require such goods

and services. Similarly the consumers should also know the

sources of supply. In the absence of marketing process, it is

extremely difficult for both to have contact with themselves. It is

the marketing process which connects both easily.

3. Increases the national income: The national income

of a country is really composed of the purchasing power i.e., what

money can buy in terms of goods and services. Effective

marketing reduces the distribution costs and there by lowers the

prices. Lower prices to consumers mean more purchasing power,

which in turn means an increase in the national income.

4. Provides employment opportunities: Marketing

furnishes employment both in production work and in marketing

activities. Effective marketing results in large scale production

which in turn creates more employment in the production

process. In addition to furnishing production jobs, marketing

activities require a large number of employees. Thousands of men

are to be employed to manage the retail and whole sale

establishments. In our country, the business establishment rank

next to agriculture in providing employment opportunities.

5. Helps to maintain economic stability: An

observed by a classical economist, “nothing happens in our

economy until somebody sells something”. Therefore marketing

is the main spring of all economic activities. Besides, the

economic activities must be stable and free from fluctuations,

especially in price. Effective marketing system enables to

maintain the price level stable by equating demand and supply.

Benefits to the firm

As observed by Stanton, “marketing is the beating heart of

many operations of the firms”. In other words, it is marketing which

makes all the activities of the firm possible. It helps the business firm in a

variety of ways. Some of the benefits of marketing are given below.

1. If the marketing function is not effective, the whole organization

will be put in to trouble.

2. It creates revenue to the firm. Without this revenue, no production

process is possible. Besides, the firm it self cannot grow.

3. The marketing organization provides a channel of communication

between the firm and the consumers. It is continuously furnishing

information about the consumer’s demands, tastes and preferences

to the top managements. By this process, it helps the firm to adjust

its production schedule to suit the tastes of the consumers.

4. It helps the producers to increase the volume of sales. Large scale

implied more production and more profit. More production also

helps to lower the production and marketing costs.

SELLING AND MARKETING IN SITARAM BAJAJ

MARKETING/SALES MANAGER

Sales manger is the head of this department. Under him there is an

assistant manager, sales executives, trainees and a showroom hostess.

Around 30 staffs are working under this department.

SELLING PROCESS

The customer will approach the section and enquire about the product.

Now a days the customers are predetermining about the product. When a

customer approaches section, the hostess will receive them and the sales

executives will explain the product and If needed they explain about the

financial schemes. After that they will demonstrate the vehicle to the

customer. If the customer is willing to purchase the vehicle, documentation

is done and if necessary, the delivery is done that day itself. If the particular

stock is not available, the customer has to book it and have to wait for 5

days.

If the customer needs financial assistants, the loan facility is provided

by the company. Bank in it are, mainly ICICI and Centurion Bank. Bajaj

Auto Finance also provides loan to the customers.

MARKETING MIX

The marketing mix is defined by Stanton is “marketing mix

refers to the term used to describe the combination of four

inputs which constitute the core of a company’s marketing

system. The product, the price structure, the promotional

activities and the distribution system”. The marketing mix i.e., 4

P’s are

1. Product

2. Price

3. Promotion

4. Place

MARKETING MIX IN SITARAM

1. product

Sitaram Bajaj, one of the leading two-wheeler dealers is the

authorized dealer of Bajaj Auto Ltd. They mainly trade the two

wheelers in Thrissur. Apart from two-wheelers, they sell spare parts of

two-wheelers.

2. Price

The prices of the bikes are fixed by the manufacturer i.e. Bajaj Auto

Ltd. The prices fixed by them are very fair and affordable to the

Customers.

3. Promotion

Sitaram has promotional activities for push their demand. They put

the ads in newspapers, banners, notices etc. They also provide special

offers and discounts to attract customers.

4. Place

People want products at very near to them. All people cannot reach

at Thrissur for buying bikes. So Sitaram Bajaj starts 9 branches at various

places. They are Triprayar, Vadanappilly, Perinjanam, Vellenkallur,

Kuriachira, Cherpu, Kechery, Nelluvai, and Thiruvillwamala. Sitaram

Bajaj also has whole sale trading. They sell bikes to Authorized Service

Centers (ASC). The 9 ASC’s of Sitaram Bajaj are Kodungallur,

Wadakanchery, Iringalakuda, 2 at Chalakudy, Kodakara, Chavakadu and

Kunnamkulam. Sitaram Bajaj also has Rural Service Outlets (RSO).

RSO’s have no authorization.

SALES PROMOTION ACTIVITIES

The sales promotional activities adopted by Sitaram Bajaj are

Sales offers

Finance offers

Advertisements

After sales services

Sales offers

As a sales promotion technique this organization gives sales offers to

consumers. Sales offers means price discounts, price off etc. These offers are

provide by Sitaram Bajaj and Bajaj Auto Ltd also.

Finance offers

Finance offers are also used to increase the demand for the products.

Finance offers refer to less rate of interest for loan provided by Bajaj Auto

Finance.

Advertisement

Sitaram Bajaj put advertisements in various Medias. News papers,

notices, banners are some of them. Bajaj Auto Ltd provides advertisement

on TV and other Medias. This also helps to increase the demand of bikes.

The timely and efficient advertisement ensures the responses of consumers.

After sales service

They provide after sales services to customers. After sales services

schemes like home delivery, warrantee schemes etc are given by this

business organization. They ensure warrantee for 2 years for their vehicle

DISTRIBUTION CHANNELS

They have a well planned distribution channel. Distribution channel for

services are usually short, and are either direct or use of an agent. Since

stocks are not held, the role of wholesalers, retailers or industrial distributor

does not apply.

In case of Sitaram Bajaj, they are the service providers. They have

retailers for convenient for consumers. Ultimately it reaches to consumers.

This distribution channel is very much helpful and convenient for customers.

The consumers get the same two wheelers from very near to their place.

WAREHOUSE OF SITARAM BAJAJ

Warehouse of Sitaram Bajaj is attached to their showroom, which is

situated in the heart of Thrissur city. The 1000 sq.ft warehouse can afford

250 bikes at a time. They stock enough two wheelers to meet the consumers

demand with out any delay.

COMPETITORS

The main competitors of Sitaram Bajaj are

Kalyan mobikes, Thrissur.

Johns Honda, Thrissur.

TVS

Yamaha

MARKET SHARE ANALYSIS

Sitaram Bajaj deals with two- wheelers of the great Bajaj Auto Ltd.

They can capture 40% of two- wheeler market. Other 60% are shared by

Hero Honda, TVS etc. compare to others they has a very good influence in

market. This is mainly because of the quality of two-wheelers and customer

caring of Sitaram Bajaj.

COMPLAINT HANDLING

In this kind of service, the consumers are suffered from two kinds of

complaints. They are service problems and sales problems. In Sitaram

Bajaj, the consumers are get solution for their problems very quickly.

The problems related to service solved by service executives. If they

can’t solve it, it will pass to service manager. The problems related to

sales formalities handled by sales executives. If they are unable to solve

the consumer’s problem, it will pass to sales manager.

FINANCE DEPRTMENT

FINANCE

In our present day economy, finance is defined as the

provision of money at the time when it is required. Every

enterprise, whether big, medium of small, needs finance to carry on its

operations and to achieve its targets. In fact, finance is so indispensable

today that it is rightly said to be the lifeblood of an enterprise. Without

adequate finance, no enterprise can possibly accomplish its objectives.

FINANCIAL MANAGEMENT

Financial management is applicable to every type of organization, part

of the management irrespective of its size, kind or nature. It is as useful to a

small concern as to a big unit. Financial management refers to that

activity which is concerned with the planning and controlling

of firm’s financial resources.

FUNCTIONS OF A FINANCIAL MANAGER

The changed business environment in the recent past has widened the

role of financial manager. The increasing pace of industrialization, rise of

larger scale units, innovations in information processing techniques, intense

competition etc. have increased the need for financial planning and control.

The size and extent of business activities are dependent upon the availability

of finances. Financial reporting may be used as a technique for control. In

the present business context, a financial manager is expected to perform the

following functions.

Financial Forecasting and Planning

A financial manager has to estimate the financial needs of a business.

How much money will be required for acquiring various assets? The amount

will be needed for purchasing fixed assets and meeting working capital

needs. He has to plan the funds needed in the future. How these funds will

be acquired and applied is an important function of a finance manager.

Acquisition of Funds

After making financial planning, the next step will be to acquire funds.

There are a number of sources available for supplying funds. These sources

may be shares, debentures, financial institutions, commercial banks, etc. The

selection of an appropriate source is a delicate task. The choice of a wrong

source for funds may create difficulties at a later stage. The pros and cons of

various sources should be analyzed before making a final decision.

Investment of Funds

The funds should be used in the best possible way. The cost of acquiring

them and the returns should be compared. The channels which generate

higher returns should be preferred. The technique of capital budgeting may

be helpful in selecting a project. The objective of maximizing profits will be

achieved only when funds are efficiently used and they do not remain idle at

any time. A financial manager has to keep in mind the principles of safety,

liquidity and soundness while investing funds.

Helping in Valuation Decision

A number of mergers and consolidations take place in the present

competitive industrial world. A finance manager is supposed to assist

management in making valuation etc. for this purpose; he should understand

various methods of valuing shares and other assets so that correct values are

arrived at.

Maintain Proper Liquidity

Every concern is required to maintain some liquidity for meeting day-to-

day needs. Cash is the best source of maintaining liquidity. It is required to

purchase raw material, pay workers, meet other expenses, etc. A finance

manager is required to determine the need for liquid assets and then arrange

liquid assets in such a way that there is no scarcity of funds.

AIMS OF FINANCIAL MANAGEMENT

The primary aim of financial management is to arrange as much funds for

the business as are required from time to time. The financial management

has the following aims:

Acquiring sufficient funds

The main aim of financial management is to assess the financial

needs of an enterprise and then finding out suitable sources for raising

them. The sources should be commensurate with the needs of the

business. If funds are needed for longer periods then long-term sources

like share capital, debentures, term loans may be explored. A concern

with longer gestation period should relay more on owner’s funds instead

of interest-bearing securities because profits may be there for some years.

Proper Utilization of Funds

Though raising of funds is important but their effective utilization is

more important. The funds should be used in such a way that maximum

benefit is derived from them. The returns from their use should be more

than their cost. It should be ensured that funds do not remain idle at any

point of time. The funds committed to various operations should be

effectively utilized. Those projects should be preferred which are

beneficial to the business.

Increasing Profitability

The planning and control of financial management aims at

increasing profitability of the concern. It is true that money generates

money. To increase profitability, sufficient funds will have to be

invested. Finance function should be so planned that the concern neither

suffers from inadequacy of funds nor wastes more funds than required. A

proper control should also be exercised so that scarce resources are not

frittered away on uneconomical operations. The cost of acquiring funds is

more, and then profitability will go down. Finance function also requires

matching of cost and returns from funds.

Maximizing Firm’s Value

Financial management also aims at maximizing the value of the

firm. It is generally said that a concern’s value is linked with its

profitability. Even though profitability influences a firm’s value but it is

not all. Besides profits, the type of sources used for raising funds, the cost

of fund, the condition of money market, and the demand for products is

some other considerations which also influence a firm’s value.

FINANCIAL MANAGEMENT IN SITARAM BAJAJ

Departmental structure

Capital structure

Sitaram Bajaj is under the management of Sitaram Group. This is

considered as a family business enterprise. So there is no chance of

public borrowing, there by no need of formalities for issuing shares or

debentures, making dividend decision etc. Their capital structure consist

30% own fund and 70% loan fund i.e. borrowed fund. Land and building

of Sitaram Bajaj is owned by Sitaram Group.

Source of fund

The sources of fund of Sitaram Bajaj are own fund, commercial banks,

financial institutions, loans from friends and relatives etc. The major

commercial banks are AXIS and HDFC.

Accounts of Sitaram Bajaj

Sitaram Bajaj giving much importance to keeping accounts properly.

They appoint professionals for proper maintenance of accounts and records.

All payments and receipts are made through cheques, so each point of

transaction should be kept in to records. Daily datas regarding sales should

be sent to regional offices. They use accounting software such as TALLY

for accounting work.

Working Capital Arrangement

Funds needed for short term purpose for the purchase of raw materials,

payment of wages and other day-to-day expenses, etc. these funds are known

as working capital. In the words of shubin, “working capital is the

amount of funds necessary to cover the cost of operating the

enterprise”. In case of Sitaram Bajaj, they are not at all a manufacturing

concern there by they don’t need a lot of money as working capital. The

fund for meet the daily needs is available from sales amount. And balance

amount is available from their banks.

SERVICE DEPARTMENT

Sitaram Bajaj is mainly concentrate on providing better services to

consumers. They are the authorized dealers of Bajaj Auto Ltd. Now-a-days

two wheeler industries become more competitive. So not only the product

quality, the services provided by the dealers is also important. This concern

is well aware of it. So it tries to give maximum services to consumers.

Sitaram Bajaj offers a lot of servicing facilities to consumers. Consumer

didn’t face any difficulty during the transaction. All the formalities of

transaction and registration are done by the staffs of the concern.

When the consumers entering in to the show-room, the hostesses are

receiving them. The executives of sales department explain the features of

various bikes. They also provide the demonstration. If the consumer is

satisfied, he will take the buying decision. If the purchase is bound by cash,

all other formalities are done by the sales department.

Or if it is not a cash purchase the finance is arranged by the finance

provides such as HDFC, Bajaj Auto Finance etc. The registration formalities

of two-wheelers are looking after by the dealers. It is in two ways.

In case of cash purchase the registration formalities are looking after by

the sales department. In other case, the formalities of the registration are

looking after by the finance providers. In both cases the consumers are free

from tensions; the only responsibility of them is providing the required

documents and proofs.

After completing the registration formalities the vehicle is delivered to

customer.

After sales services

The success mantra of Sitaram Bajaj is searching for new customers at the

same time retaining the existing customers through proper service and care.

Sitaram is well equipped and technologically driven. Work specialization is

one of the important concepts followed in Sitaram for effective functioning

of service department.

The service department has been divisionalised in to accident vehicle

section, entry level bikes, executive level bikes and premium level bikes.

Each separate section is headed by a supervisor. One of the main important

advantages for the service department is that using of pneumatic tools and

specialization in work. Due to this they can provide good service to the

consumers as well as vehicle. Paid services are taking place in the showroom

and the free services are provided by the Bajaj Authorized Service Station

(B A S S). The workshop/service centre has been upgraded to “ideal plus”

standard recently. There are only two ideal plus workshops in Kerala ad with

the co-operation of the dedicated staff Sitaram is one amongst two.

About the working of the department, each and every vehicle entered in to

the department and delivered is recorded at the gate. A job card is opened for

each work and a store indent is maintained. This store indents facilities the

details regarding the vehicle. Bajaj is providing two hours service for the

normal complaints of the vehicle giving free services. Another one of the

important service rendered by the department is collection of customer feed

back through direct enquiry and sales executive generated enquiry.

In this we have seen Sitaram Bajaj is focused on sales and services. So they

can retain the customers at every point by giving appropriate services to the

customers.

HUMAN RESOURCE MANAGEMENT

Human resource is of paramount importance for the success of any

organization. It is a source of strength and aid. Human resources are the

wealth of an organization which can help it in achieving its goals. Human

resource management is concerned with the human beings in an

organization.

According to Flippo, “ human resource management is

the planning, organizing, directing and controlling of the

procurement, development, compensation, integration,

maintenance and reproduction of human resources to the

end that individual, organizational, and societal objectives

are accomplished”. The definition revels that human resource

management is that aspect of management which deals with planning,

organizing, directing and controlling the personnel function of an

enterprise. The purpose of these functions is to assist in the achievement

of basic organizational individual and societal goals.

FUNCTIONS OF HRM

HRM has a crucial role to play in the organization. So following

functions can be associated with HRM.

Identifying and developing persons

The success of every organization depends upon the quality of

persons it employs. HRM helps in spotting right persons for right jobs.

Persons are given right type of training so that they are able to develop

their potentialities to the maximum.

Retaining suitable persons

HRM not only helps in procuring suitable persons but also useful in

retaining them. There may be redundant workforce because of various

developments, efforts should be made to offer golden handshake to

them.

Creating work culture

Human resource policy is backed by human values, understanding

and concern for the welfare of people. Persons in the organization will

reciprocate by improving their efficiency, motivation, self-co-ordination

and greater co-operation. The work culture in the organization improves,

people feel satisfied and enjoy their work.

Educating managerial personnel

HRM approach will succeed only when managerial personnel

change their attitude towards workforce. There is a need to educate

executives, managers and top management regarding various aspects

of human resources approach adopted in the organization.

Conducting research

HRM will be successful only if we know the aspirations and

expectations of various persons working in the organization. The framing

of human resource policies, strategies and approaches depend upon the

information controlled through research.

Developing a communication system

There is a need to develop downward, upward and lateral

communication in the organization. HRM develops a system of

communication where policies of management are properly

communicated to the lowest level of hierarchy and feedback from lower

levels is conveyed to the top management. Communication system helps

in understanding the view points of each other and taking up remedial

steps, if needed.

HRM IN SITARAM BAJAJ

In case of Sitaram Bajaj all HR activities such as selection, placement,

training etc are handled by the concerned department it self. The HR

department is headed by the HR manager. Around 124 employees are

working in Sitaram Bajaj.

Selection of employees

The applications are invited from candidates through news papers.

After receiving the written application form, the management scrutinizes

each application form. Eligible candidates get interview call.

Interview

The management conducts an interview for getting the right persons.

In interview, the board measures the ability, talents, qualification,

personality, aptitude etc.

Checking references

Before the final selection, the interview board checks the reference letter

from previous institutions, where the candidates worked. They normally

make an investigation on the references supplied by the candidate and

undertakes search in to his past employment, education, personal

reputation etc.

Placement

The candidates, who were success all these procedures get the

placement as employee of Sitaram Bajaj.

Training

The fresher employees will get 20 days training provided by the

concerned department. This training is purely an on the job training.

Sitaram Bajaj provides refreshment training for existing employees. This

refreshment training is conducted once in quarterly.

Motivation

Sitaram Bajaj use financial motivators and non financial motivators for

motivating employees. Financial motivators like bonus and incentives are

provided by the management. Employees work is recognized by their

superiors. The employees get the chance of participating in decision

making process. Employees are given certain objectives and every body

tries to achieve them ahead of others. These techniques are motivating

employees.

Performance appraisal

They have a well structured system of performance appraisal. Each

department keeps a daily graph for each employee. The head of the

department record the performance of employee on each day. The

appraisal of employee is conducted in every month. The decisions

regarding incentives are made after the appraisal of performance.

Wage and salary administration

Sitaram Bajaj provides fixed salary for employees. Apart from salary

they give bonus and incentives. Incentives are purely on the basis of

performance. Incentives are given 15th of every month.

Salary structure

Sales

Promotion

The staffs of the Sitaram Bajaj get promotion to just above their post.

They adopt merit based promotion. The promotion is purely based on the

performance of the employees.

SYSTEM DEPARTMENT

The all activities in Sitaram Bajaj are controlled and coordinated by

system department. This department is headed by a system administrator.

Their showroom is fully automated. This department is connected with

internet.

ADVANTAGES OF SYSTEM DEPARTMENT

Setting up a system department involves a lot of hard work and pain. The

benefits of possessing a system department, more than make up for the

efforts. System facilitates the sharing of files, programs and resources.

System departments provide many advantages.

Sharing files

System department facilitates information sharing with other

computers connected to the network. Information can be shared in

different ways. The most direct method is to transfer files directly from

one computer to the other. The second method is to send the file to an

intermediate place of rest from where the other people can pickup the file

later.

Sharing resources

This implies that certain computer resources such as printer, disk

drive. CD-ROM drives, modems etc can be shared through network.

Sharing programs

Some times, it is better to save programs that every one uses on a

shared disk, rather than keep separate copies of the programs on each

computer.

Backups

As all data is stored on the server, backing up critical data becomes a

simple process.

Communication

The biggest benefit, however, comes in the form of better

communication facilities such as electronic mail and groupware

applications.

TYPE OF NETWORK

The type of network used by Sitaram Bajaj is LAN. LAN is a system of

networked computers and other hardware resources spread in small area

such as a building. LANs allow users to share important computing

resources such as printers, application programs, CD-ROM drives and the

information users require to do their work. LAN and LANs network is not

only powerful but also user friendly.

OFFICE AUTOMATION FACILITY

Office automation is defined as using computer and communication

technology to help managers and executives for a better use and

management of information. Office automation technology includes all types

of computers, telephones, electronic mail, other office machines and

equipment.

In case of Sitaram Bajaj their office is fully automated. They use

document generating devices like type writers; communicational devices

like postal services, telephone. Electronic mail, cellular phone; and

accounting devices like calculators and computers.

INTERNET CONNECTIVITY

In Sitaram Bajaj, they use broad brand as internet connection. Large

volume of data can be transmitted through broad brand. It has high

transmission rate also.

OPERATING SYSTEM

In Sitaram Bajaj, they use WINDOWS 98 as operating system of their

computers.

SOFTWARE

Sitaram develop their own software to meet their business needs. The

software is SYSCON and it is licensed.

NUMBER OF WORK STATIONS

In Sitaram Bajaj, there are 40 work stations. These 40 work station are

controlled by a server.

TYPE OF SERVER

In Sitaram Bajaj, they use WINDOWS XX as server. Sitaram Bajaj

running with only one building so their work station architecture is two-tier

architecture. It means only one server and some work stations.

SECURITY SYSTEMS

The all computers in Sitaram Bajaj are protected through password. All

files stored in computers are protected from virus attacking. The advanced

and updated anti-viruses such as NORTON are used for this purpose.

SYSTEM BACKUP FACILITIES

The documents and data’s about the transactions are kept as backups.

SPARES DEPARTMENT

Sitaram Bajaj is a number one dealer of Bajaj in Kerala. Apart from two-

wheelers, they have the dealership of spare parts of Bajaj. There is around

10606 spare parts available in Sitaram Bajaj. They are considered as VOR

hub (vehicle off road hub). Around 30 employees are working under this

spare department. The spares division is one of the outstanding performers

in Sitaram Bajaj.

DEPARTMENTAL STRUCTURE

DUTIES OF SPARES DEPARTMENT

According to their need, daily send purchase order to Bajaj.

Proper inventory maintenance.

SWOT ANALYSIS OF SITARAM BAJAJ

A scan of the internal and external environment is an important part of

the strategic planning process. Environmental factors internal to the concern

usually can be classified as strengths (S) or weakness (W) and those external

factors to the firm can be classified as opportunities (O) or threats (T). Such

an analysis of the strategic environment is referred to as SWOT Analysis.

STRENGTHS:

One of the main strength of Sitaram Bajaj is the location of their

showroom. The showroom situated in the heart of the Thrissur

city there by management can know about the pulse of the

market. This showroom is well noticed by consumers.

The dedicated and efficient employees are another strength or

company. The staff of Sitaram Bajaj is highly sincere to their

work so the consumers are satisfied with their service.

Sitaram Bajaj provides utmost service to the consumers. They

look after all the legal formalities of the transaction.

All the activities of Sitaram Bajaj are well co-ordinate by the

management. This will increase the quality of service.

WEAKENESS:

Availability of adequate fund is on of the weakness of Sitaram

Bajaj.

Labour turnover due to monotony of job, lack of fair

remuneration.

OPPERTUNITIES

Bajaj is one of the well known brands in two-wheeler industry. So

consumers have the loyalty to that brand. This will help them to

sustain in market.

The sales promotional activities such as advertisement, offers etc

will increase the demand.

THREATS

Decreasing price trend of four-wheelers are one of the major threats

faced by Sitaram Bajaj. When the price of four wheelers is affordable

to common people, then they will prefer four wheelers. This will

decrease the demand for two-wheelers.

The high competition between the various two-wheelers available in

market such as TVS, Hero Honda, Yamaha.

FINDINGS

In Sitaram Bajaj there is only a low provision for advertisement.

There is no grievance handling. So employees can’t get a chance to

share their problems.

There is trade union impact.

The management takes care about the selection of employees.

They have a procedure for selecting employees.

Labor turnover rate in Sitaram Bajaj is high.

Fair salary is not available to employees

SUGGESTIONS

Provide adequate amount for sales promotional activities.

Information provide in the advertisement must be more

accurate and reliable which increase customers trust towards

the company in news paper.

The management should take necessary steps for decreasing the

labor turnover.

The fresher’s got only 20 days on the job training by the staffs.

This will improve.

The HR department should solve the employees grievance

the authorities should improve the ware house facility

CONCLUSION

Sitaram Bajaj is the only dealer for Bajaj in Thrissur. They follow Triple

“S” basis, which indicates sale. Services $ spares. I have completed our

organization study with great pleasure. This study clearly reveals the fact

that Sitaram Bajaj is a prominent leader of two-wheeler, in Thrissur. There is

a clear indication of increasing market share and good will of the company.

The management of the company entirely deserves a credit of their victory.

The grater achievement will come through only “effectiveness in marketing”

by adopting various marketing techniques which include effective sales

promotion, effective performance evaluation between target and actual sale.

Target achievement award/gift and finally through effective service after

sale.

BIBLIOGRAPHY

1) Dr. V. Radha, P.T. Oommen and N.S. Nair, marketing

management, Prasanna Publishers, Chennai, 2005 edition.

2) Shashi K.Gupta and Rosy Joshy, Human Resource

Management, Kalyani Publishers, Ludhiana, 2003 edition.

3) Abdul Assis Koroth, Information Technology For

Management, Calicut University Central, 2004 edition.

4) Shashi K. Gupta, R.K. Sharma and Neeti Gupta, Financial

Management, Kalyani Publishers, Ludhiana, 2007 edition

5) Www. Sitaramgroup.com

6) Company profile, annul reports