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Project Report

In

Industry, Government and

Society

On

STAKE HOLDERS

Submitted to: Prof. Deepak Srivastava

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Submitted by: harpal patel

094116

Submitted on: 21st February, 2011

About the Organization

Introduction:

For over 30 years H.M.Industries has been a distinct entity in manufacturing of

castor seed, cotton seed oil and cake along with cotton ginning and pressing

business. By using the latest innovative manufacturing technology and premium

quality compounds we are able to produce products that can minimize costs. Initially

it was started with very small oil manufacturing unit but now it is looking towards sky.

The firm was established in 1988 as a small unit of castor seedsoil manufacturing.

Initially there were no technological use as it was much of labourintensive as to survive in initial stage with low cost manufacturing.

No. employee ranging from 2-3 and majority of handling byfamily members.

No formal structure. It was all group efforts from all familymembers.

No competitive advantage in initial years.

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The growth stage begin with employment of new employee inoffice.

New machinery in existing machine line were added. Increase in production capacity. Sale of products in greater market as Gujarat,Haryana,rajasthan

,others followed.

As the market grew the opportunities were there to grab and itwas rightly done by the firm.

Expansion of the firm began as it started new cotton seed oilmanufacturing plant which was same process like castor oil

manufacturing.

At this stage the use of proper office staff and skilled operationmen were recruited.

It increased firms goodwill in market. New technology was incorporated as to reduce labour cost. Employees were provided safety, health and fringe benefits to

move along with firms growth.

Firm then entered into ginning of raw cotton as a part ofbackward diversification to avail cotton seeds.

Machinery for Cotton pressing was also installed. It was the golden phase of the business as it was all growth and it

looked all skies.

New technologies in all three production units wereincorporated.

This was the phase of change in organization.As duties were transferred to employees and they were given

rights to take decisions.

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And now the it is at stability as there is effect of global recessionwhich affected oil and cotton exports.

It took place in diversification and expansion stage. New technology was incorporated in all production units. It was mainly to reduce labour dependability on production.As there was closer of many units we survived the scare due to

continues technological change

Structure of business organization:-

Regarding the Organization Structure is concerned we have always had a simplestructure without functional divisions until past few years.

We have always had a kind of one-man show. The Proprietor use to take all thedecision be it of Sales, finance, Purchase and factory.

Today, we can say that we have been able to develop an Organization Structurewhere activities are grouped & placed under different heads.

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But the level of Centralisation has not decreased to that extent, the proprietor is stillthe spearhead of all the Departments.

Under factory manager there are supervisors and workers who initially was handledby chair person but now as the structure has evolved it is been carried on by

factory manager.

Finance manager is accompanied by two to three sub-ordinates who accountdirectly to chair person.

Sales are carried out by chair person but all the related works are managed by salesmanager.

Purchase manager is the most important function in our organization, so it isheaded by family member alongside some experienced personnels for purchase

of cotton.

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STAKEHOLDER ANALYSISPrimary Stakeholders:

1. SUPPLIERS:Suppliers would include two main things raw material suppliers and supplies

suppliers. The effect of raw material suppliers as a whole would be directly on theworking of whole production process. Supplies also plays important role as it affects

a particular part of the process and it creates stoppage at that point.

RAW MATERIALS:- FARMERS:

COTTON GINNINGAND OIL

MANUFACTURINGFINANCE

SUPPLIERS

COMPETITORS

TECHNOLOGY

PROCURMENT

Owner-Partner

HUMAN

RESOURCES

customers

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Farmers are crucial stakeholder in cotton industry as they are the main producers of

cotton. Cultivation of cotton by farmers every season is the main source of raw

material for the industry. Availability of raw material in local market is key factor

which constitute of task environment. Procurement of raw cotton and castor seeds

from local market is very critical.

TRADERS/DALAL:Dalal and traders also affect cotton industry directly as they have all the track of rawmaterial supply and demand they control the local pricing of raw cotton which is

purchased from farmers.

SUPPLIES:-Caustic soda vendor, Boiler supplies, Straps suppliers, Bale cover supplier, Jute bags

supplier are all part of basic supplies to a cotton industries. They affect them by

hampering the production process. As any of the above mentioned supplies are

short off then it would directly show its impact on production process.

2. HUMAN RESOURCES:-Employees are said to be the real assets of the company as they are the once who

cater services to the company and gets the task done. In other words, they are the

task force of the firm. The firm has a really talented pool of young people who wants

to make a mark in textile world and they are interested in a fair pay, safe and healthy

growing environment for work as well as stability. Moreover, they have the power to

strike or collective bargaining as well working for competitors and so they must be

kept satisfied. We have employees such. Availability of skilled workforce for

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operation is very important. No. of Office personnel are kept less as there is no as

such marketing or sales work.

Office staffAccountant Sales manager Cashier Operations HR:- Labour

3. CUSTOMERS:-The role of customer towards the business is also very important as they areintegral part of system as they help to generate sales as it can in ways of

following manner.

Brokers Farmers Traders Export houses Refineries

All of the above mentioned affect the business in direct manner as they helpto generate sale to the company. It can be bifurcated as cotton ginning and

cotton seed oil manufacturing. Here also farmers have major stake as they are

the for most buyer.

4. FINANCE: -Financial support from banks is critical in our business. Requirement of working

capital is fulfilled by banks. For diversification and expansion availing loan is much

easier.

Banks: Banks support is much required in any agri business as the playimportant role in case of provision of working capital.

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Individual institution: individual institution are also stake holder in ourbusiness as they provide support during pick season as the business is in

shortage of funds provided by bank.

5. TECHNOLOGY PROCUREMENT:-Technology procurement is also important part of our business as it is

changing very frequently and all the expansion plans depends much on

technological changes. It is provided by;

ATIRA: they provide quality and quantity of production equipment which aremust for a growing business.

INDIVIDUAL VENDORS: Individual vendors are also important for thetechnology procurement and also has stake in any textile processing.

6. OWNER-PARTNER-There are four partners in H M Industries i.e. Mr. Paresh, Founder, Mr.

Dinesh, Mr. Viresh. The role of owner-partners is to handle their area of

work as per their specialization and they have absolute authority over how to

carry out their work, however they are accountable to other partners for their

end results. They have high interest in the organization as they get their

returns in form of remuneration, salary, and interest on capital, and a share in

profit from the firm. Moreover, they have a right to say in important decisions

relating to the firms activities and also can inspect the records and books of

the firm. Thus, they must be managed closely.

7. COMPETITOR:-

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Competitors are also important part of the stakeholder analysis as they help to

motivate and change the prices of cotton seed oil cake. In local market there

are three competitors who play important role on pricing of all final products.

Secondary Stakeholders:

1. CCI:-Cotton corporation of India has motive of Extending necessary marketingsupport to the cotton growers in selling their kapas produce at most

competitive prices in the various market yards in all cotton growing States

through timely intervention beginning from day one of the kapas arrivals till

the end of season, procurement operations spread over more than 225

market yards in the country.

secondary

stakeholders

cotton

industry

CCI

GOVERNMENT

TEXTILE

ASSOCIATION

NCDEX

FASHION

HOUSES

LOCAL

GOVERNMENT

FOREING

GOVERNMENT

SOCIAL

ACTIVIST

MEDIA

BUSINESS

SUPPORT

GENERAL

PUBLIC

CHAMBER OF

COMMERCE

AND INDUSTRY

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2. FASHION HOUSES:-The cotton industry has mounted a public relations campaign promotingtheir product as sustainable, arguing that due to new technologies and

farming methods, the industry has greatly reduced its use of energy, water, and

toxic chemicals. No-till farming reduces soil erosion, improved irrigation

methods reduce water use, improved methods of pest management have

reduced the use of pesticides, and most significantly, the use of genetically

modified (GMO) cotton has reduced the use of land and toxic chemicals in

cotton production by improving crop yields and resistance to boll worms.

3. GOVERNMENT:-Polices of government are major factors which affect our business as there are

price flooring by government on raw cotton. If the price is higher than market

price then units like us suffers. Change in technology is prime factor which

affects the functioning of the operation in manufacturing. Due to our

continuous change in technology we could survive in the competitive market.

Economic conditions affect the exports of the cotton bales as well as oil. So it

affects small producers like us as well. Stability in export market is directly

related factors.

4. TEXTILE ASSOCIATION:-Textile associations affect the cotton industry directly as they have major stake

in the cotton industry they help the whole textile process to develop and

arrange its raw material and finished goods in same manner.

5. NCDEX:-Commodity market facilitates many of the retail investors but it has its affect

on cotton industry as well as it changes the prices of the commodity in the

market.

http://www.cottoninc.com/http://www.cottoninc.com/

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6. FOREIGN GOVERNMENTS: -The foreign government can change the trade rules and policies and thereby

affect the business scenario between two nations for better quality of goods and

services at a better price. It has major impact on cotton prices. Also, it helps to

improve economic and social development of the country and so Foreign

governments are to be Kept satisfied.

7. SOCIAL ACTIVIST: -The Social activities carried out by various NGOs and other social enterprises

helps to solve social problems and thereby improve the standard of living in the

society and lead to economic growth which affect the use of cotton and to such

organizations are to be monitored closely.

8. LOCAL GOVERNMENT: -The local government can impact the cotton regulation for industries through

various amendments and reforms in the budget. Also government can make changes

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in legislation and various policies relating to the economic scenario which can

change the business environment. Thus, government is an important stakeholder for

our firm and it is to be kept informed.

9. MEDIA: -Media in form of newspaper and local radio channels help in the publicity of

the firm for recruiting the employees as well as branding the firm and creating the

goodwill of the firm in the city and hence media id too be kept informed.

10.BUSINESS SUPPORT: -Business support services such as IT are very essential for carrying out the

activities of the firm as various tasks such as quality assurance database is done

through software and also auditing of the books and accounting is done and hence

IT services are to be kept satisfied.

11.GENERAL PUBLIC: -The general public is interested in adding social value and protecting the

prosperity of the society and minimizing the risk, moreover it has the power to press

the issue to the government by supporting the cause and praise the company and

hence it has to be kept satisfied.

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12. CHAMBER OF COMMERCE AND INDUSTRY: -Chamber of commerce and industry is an association for providing various

facilities, services and access to the business houses as well as sector in Gujarat and it

is a significant stakeholder for the firm as it improves the business environment in

the city and to it is to be kept informed.

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