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PROJECT REPORT

AMUL INDUSTRIES PVT. LTD.

PREPARED BY : SEEMA V KUCHARA

GUIDANCE BY :

SUBMITTED TO :

ACEDEMIC YEAR : 2012-2013

STREAM : M COM

SHREE GYANYAGNA COLLEGE OF SCINCE AND MANAGEMENT

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PERSONAL INFORMATION

NAME : SIMA V. KUCHARA

FACULTY : M COM

ROLL NO. : 29

SEAT NO. : 29

ACEDEMIC YEAR : 2012-2013

PROJECT REPORT : AMUL INDUSTRIES (P) LTD.

CENTER : AHMEDABAD

SUBMITTED TO : GUJARAT UNIVERSITY


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DECLARATIONI the undersigned Mr.Vishal P. Agheda, a student of F.Y.B.B.A.

here by declare that the project work Presented in this report is my

own and has been carried the out under the supervision of Prof.

Paramsivm and Prof. Amit lathiya of Shree Gyanyagna college of

science and management, Rajkot.

This report has not been submitted previously for other

university for any other examination.

Place : Rajkot

Date

(signature of the student.)


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1. PROFIL OF THE COMPANY

Name of the company : AMUL INDUSTRIES (P) LTD.

Full Address : Amul Industries Pvt. Ltd.,

2, Aji Industrial Estate,

Plot No. 332/333

Rajkot 360 003.

Telephone No. : 91-281-2387461 /898 /036

Fax : 91-281-2387762

Email : Export@amulind .com /

info@amulind .com

web : www.amulind .com

Year of establishment : 1988

Registered office : Amul industries Pvt. Ltd .

2, Aji Industrial Estate,

Plot no. 332 / 333,

Rajkot 360 003

Number of employee : About 500

Product produced : connecting rods,crank shft,SHREE GYANYAGNA COLLEGE OF SCINCE AND MANAGEMENT

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2. HISTORIES AND

DEVELOPMENT

The main promoters of Amul Industries are Mr.

Chandubhai Patel and Mr. Sureshbhai Patel. The initial capital was

Rs.2,00,000.It was very small amount and produced only some

products. Amul Industries was established as a partner ship firm. But

in many since 2001 the unit was converted into private limited

company.

Since last ten year Amul Industries developed very well.

They are striving hared the achieve success achieving its target by

manufacturing many components some of each are crank shaft,

connecting rod, rocker arm, other engine items for automobile, diesel

engine, compressor and generator segment. They are one of the

largest manufacturers of connecting rod, crankshaft and camshaft in

India. They are considered one of the leading manufacturers.


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5. LOCATION OF THE UNIT

One of the early decisions that an entrepreneur has to make is

the choice of a location or place of his unit. The chief objective of any

industrial concern is to maximize profit though the minimize of cost of

production this objective can be achieved only when the plant is at a

right place where economically all kinds facilities is available.

Amul Industries established near Aji Estate in Rajkot where all

the economics facilities are available so they gets many facilities that

provided by government. Few of the facilities available there for

medium scale industries like getting communication facilities,

government policy, transportation facilities, power facilities, water

facilities, labors supply and also they can get row material easily by

near place. And also Aji Estate is near to the market so they can get

many benefits.


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PRODUCTION

DEPARTMENT


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1. INTRODUCTION

The control of production is one of the important problems of

production management. Production involves planning, routing,scheduling, dispatching, fall-up, and inspection. As per the definition

given by Kimball & Kimball That the product shall be produced in the

best and the cheapest method that it shall be of the required quality

and that it shall be produced at the right time

Amul Industries has a separate production. The manufacturingdepartment of this unit has taken special care as they are processing

commodities.


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2. ORGANIZATION CHART

Organization of production department necessary for any high

industries. All the people should be known about his duty in the unit. Amul Industries has a separate production department.

The organization of production department of Amul Industries is

below.

PRODUCTION DEPARTMENT

Production Manager

Engineers

Inspection officer

Supervisors

Workers


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Production is a creation of goods and services a major

employee is on the creation of goods. Manufacturing production is the

step-by-step conversion of raw materials through creation of from

utility and goods.

Amul Industries is registered as original equipment

manufacturers (O.E.M.) supplier with many. Indian automotive

manufacturing companies. Amul Industries given quotation on the

basis of design of the pare requited by companies & after approval of

quotation, actual procurement of material &manufacturing process getstarted.

The following chart shows the manufacturing process of AmulIndustries:


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Raw Material

Cutting

Heat treatment

Hardness checking

Shot blasting

Machining

Chemical dimensional

Diling and packing

6. PRODUCT OF THE UNIT


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Amul Industries produced many products but its main product

is connecting rods, crankshaft, and camshaft. Some of the products

manufactured at Amul Industries are:

Crank shaft Connecting rod

Rocker arm

Cam shaft

Bridge nozzle

Shifter shaft

Hydraulic rod

Arm knuckle

Aul etc.

They are also produced engine items for automobile, Dieselengine, compressor and generator segments.

7. PRODUCT PICTURE 1. CONNECTING ROD:


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2. CRANK SHAFT

3. CAM SHAFT

Many more other auto parts in different size and types they areproduced.

8. USE OF THE PRODUCT


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Amul Industries producing auto parts like crank shaft camshaft,

connecting rod that part of engine and it is use in vehicles,

compressors, generator, and other automobile diesel engine. It is use

in light vehicles, heavy vehicles and export vehicles.

They products like connecting rod, camshaft and crankshaft use

in cars, truck, tractors, compressors and two wheelers etc.

9. QUALITY CONTROL


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Amul Industries is engaged in auto parts. They have to

maintain quality. They have got good laboratory. They check the raw

material first in the automatic machine which they are using, are found

very rare in India that quality is controlled it self. They are one of themanufacturers of connecting rod and crank shaft in India.

Amul industries have adopted ISO\TC 16949:2002 quality

systems to ensure continuous quality improvement and highest

customers satisfactions. Proper blending of a high Tech and

conventional manufacturing technologies, in house expertise, testing

& metrology laboratories and S.Q.C. culture gives us an edge to

achieve the highest quality standard, cost competitiveness and

shortest supply schedules to satisfy the customers needs.

Amul industries committed in building a quality organization withcustomer as the main focus by making available them products and

services, which adequately meet their requirement and there by

ensuring their satisfaction .


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PERSONNEL

DEPARTMENT

PERSONAL DEOARTMENT


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INDEX

1 INTRODUCTION 32

1 ORGANIZATION CHART 33

2 RECRUITMENT, SELECTION &INDUCTION 34

3 EMPLOYEE TRANING &DEVELOPMENT 37

4 WAGES & SALARY ADMISTRATION 39

2 EMPLOYEE BENEFITS & SERVICES 40

5 PROVIDENT FUND 41

6 GRIEVANCE HANDLING PROCEDURE 42

7 TRADE UNION 43

1. INTRODUCTION


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Human recourses is the central and most important

component of any organization and management of personnel is the

most important are of any business organization. The main aim pf

personnel department is to manage the personnel at work. People arebasically responsible for the progress of any organization.

Personnel management means quite simply the task of dealing

with human relationship within an organization. Personnel

management includes planning, organization, directing, and

controlling of procurement development compensation integration

maintenance and separation of human resources to the end of

individual, organization and social objectives are satisfied.

Amul industries there is personnel department, which has

workers personnel manager, has got the highest authority and alwayskeeps a check on department of get success.

2. ORGANIZATION CHART


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Recruitment process is the first stage in the process of accruing

personal which continuous with selections and closes with the

placement of the candidate. Recruitment makes it possible to acquire

the number and type of necessary, personal to ensure the continuousof the organization. Thus recruitment is concern with the process of

attracting qualified and competent people for different jobs.

When any type of vacancy arise in the Amul Industries the

personal manager examines as to what type of candidate is required

to take in to consideration on the job, evaluation and job analysis.There are many sources to fulfill the vacancies. Recruitment can be

define from internal sources and external sources and in this case

they follow the following procedure.

1) Internal source

2) External source

INTERNAL SOURCE

Their source includes recruiting the personal that are already on

the play roll of an organization.

Amul Industries includes more of technical type of jobs. So it

require familiar and experience personal. So when ever new

vacancies arise in the organization somebody within the unit is

upgraded, transferred or promoted to fill that post. Some timesSHREE GYANYAGNA COLLEGE OF SCINCE AND MANAGEMENT

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existing employees recommend the unit to require particular person

for particular job because either the person is his relative or friend or

potential person is evaluated in term of job recruitment by the board of

directors.

EXTERNAL SOURCES

These sources include employees out of the unit . Amul

Industries includes following method to recruit the employees from out

side.

Amul Industries gives advertisement in local or regional

newspaper to recruit blue color workers, clerical work employees and

lower level administrative staff. Whenever Amul Industries needs

employee it also contacts private placement agencies. When Amul

Industries requires some casual unskilled or technical person thenrecruitment at gate method is used. They note on the board at the

gate of the company is written regarding casual recruitment the

workers read it and directly contact the concern manager.

Selection

Selection means establishing sequential steps required for

assessing potentialities of persons on particular job. This type of


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selection is deliberate efforts of the organization to select fixed and

large number of employees.

Amul Industries follows the following procedure for the selection of

employees.

Initial Screening

Depth Interviews

Preliminary Selection

Final Selection

Placement

4.Employeetraining &

Development


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Amul Industries gives much importance to training and

development program. The unit thinks that in this competitive area,

human resources are competitive weapon so they must be sound and

strong.

Training

There is a separate department in Amul Industries for the

employees who are selected at operative level. They give training by

two kinds.

1. On Job Training

This training is mostly given to the unskilled and semi skilled

jobs, clerical and sales jobs. Employees are coached and instructed

by skilled co-worker or supervisors by the special training instructions.On the job training by personal observation and practice as well as

occasionally having it. Thus are here. Training earn as they learn.

2. Apprenticeship

Amul Industries are also using apprenticeship training. A definite

programmed is prepared to provide efficient training to the

apprentices. Here educational and vocational training is given to the

apprentice with stipend.


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Development

Development is long-term process. It covers not only those

activities, which improve the job performance, but also those, which

bring about at the personality.

Amul Industries held coaching and lecture for development of

supervisor defines some areas of responsibility to the employee and

then he directs him in performing these functions and provide him with

diversified work, so that he may grow and progress. Also expert

having a good knowledge in the one field gives lectures. The lectures

are given in formal and organized way .


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5. Wages & Salary

Administration .

It is the prime duty of the firm to pay proper and reasonable

amount to workers for their services while on the other hand a proper

salary to the clerical, managerial and supervisory staff as wages are

the basic incentives for employee. Proper and regular wages and

salary helps to avoid industrial disputes and increase in productivity

and profitability.

Amul industries decide the wages and salary by demand and

supply of employee, rates prevailing in the other similar surrounding

industries, Government regulations and the type of job. There are 500

workers. Salary increment every year 10.15%. They paid salary and

wages about 5 lakes per month.

The managers are being paid salary in range of Rs.5,000 to

Rs.7,000. And increase every year as per the rule and profitability of

the industries. Clerical staff gets nearby Rs.2000 to Rs.4000 per

month. Every year there is an increase in the salary by Rs.200\- to

Rs.250\- depending upon the work efficiency of the employee and

demand of the employee.


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6. Employee benefits And

Services

For increasing positive attitude towards work, employee should

be given additional benefits. The company has adopted certain

beneficial activities which are as following.

Bonus:

The employee is given average 20 % of total yearlyemoluments.

Medical facilities :

The company provides reimbursement at medical expenses

incurred and includes hospitalization nursing home and surgical

charges for employee as well as their family members.

Canteen Facilities :

Employees are offered free meal, when workers are unable to

bring. This is occasional facility. The unit provides canteen to its

workers, which provides sanck hut and cold drinks also at subsidized

rates. Some time the company also provides telephone bills and suchother facilities.


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7. Provident fund

It is also an incentive provided for the welfare at workers but it is

clauses working system are totally different. According to the

government rule 10 % the firm contributes towards it. Then a firm

always issues a scheme with the total amount at provident fund and it

is deposited in a bank. Bank in turn deposit the same cheque with thegovernment provident fund office on the other hand the firm lawyer

prepare the statement showing the name of the worker and the

amount of his part of provident fund office. With the help of this

statement the officer will credit the corresponding amount of provident

fund in the workers account.


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A trade union is continuous and voluntary association of the

salary earners. It is formed for safeguarding the interest of its

members. Maintaining and improving the conditions of their working

lives. Raising their status and promoting their occasional interest andsecuring better relations between them and their employees through

collective bargaining.


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MARKETINGDEPARTMENT

Marketing Department


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INDEX

1 INTRODUCTION 46


3 MARKET SEGMENTATION 48

4 PRICING POLICIES 49

5 DISTRIBUTION CHENNEL 50

6 ADVERTISING 51

7 EXPORTTS 52

8 MARKET RESEARCH 54


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1. Introduction

Man haves unlimited and repetitive want in nature. To satisfy

these wants, products are to be produced and to be exchanged.When the word exchange comes the word marketing automatically

comes into the point exchange is the most important and powerful

function in marketing. Marketing may be explained as a business

function interested with creation and satisfaction at customers to

achieve the aims at business marketing department is very much

important for a business and it plays a key role for increasing public

relationship.

Amul industries is having a marketing department and the

person in charge of the department is Mr. Atul G. Patel, who is

experienced & expert in marketing.

The head of the marketing department is the general manager.

There is a line type of organization, thus authority flows upward to

downward & responsibility from bottom to top level.

2. Organizational ChartSHREE GYANYAGNA COLLEGE OF SCINCE AND MANAGEMENT

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Marketing Manager

Assistant manager

Chief Manager Sales Manager Research and

Development

Quality controller officer

Engineers

Sales Correspondence Researcher

Assistant clerks

3. Market Segmentation


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According to Stanton Market Segmentation consist at taking

the total heterogeneous market for product and dividing it in to several

sub market or segment each of them which tends to be homogenous

in all significant aspects.

Market segmentation is done with the help of some variables

these variables are called the basis for market segmentation Amul

Industries has also included market segmentation, market are in a

better position to locate & compare marketing opportunities.

4. Pricing Policies


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Price is an important element in marketing arriving at the right

selling price is essential in a sound marketing mix. Right price can be

determined through pricing research and buy the test market

techniques. It provides guidelines to the marketing manager to evolveappropriate pricing decisions.

Price is the only variable element that produces revenue or income.

Pricing policy of Amul Industries is different from other

industries because they are not producing directly consumableproduct. They are deciding price on the basis of want of customers.

They are provides to types pricing policy. One is lower price and

second is higher price. They consider cost at production, normal profit,

and competitive price in the market. Distribution expenses for deciding

any product prices, it differs from the product to product sometimes,as a lost resort price is also detrained through negotiation between the

two parties. The minimum price can be establishment at a break-even

point.

5. Distribution Channel .SHREE GYANYAGNA COLLEGE OF SCINCE AND MANAGEMENT

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Channels of distribution indicate the routes or pathway through

which goods and services flow or move from producers to consumers.

Amul Industries are only one manufacturing connecting rod,

crankshaft etc. they are not producing directly consumable product. It

is the part of engine. They have not distributors. They are directly sent

goods to customers that manufacturing vehicles, generators,

compressors, etc. They are selling products directly to L & T, John

Deere Ltd. Tata Motors, Ashok Leyland Ltd., Mahindra & Mahindra

group and many more. They provide products to the customer directlyaccording to their order.

Channels:

Amul Industries P. Ltd.

Customers

(i.e. Tata Motors, Mahindra & Mahindra, Ashok Leyland etc.)

6. Advertising


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Advertising is paid form of impersonal communication. It is a

mean at mass communication. Advertising promotion of ideas. Goods

and services by an identified sponsor. It can be used to build up a

long-term image for a product and trigger quick sales. Thusadvertising is an efficient way to reach numerous geographically

dispersed buyers at a low cost.

Amul Industries are not advertising their product by newspaper

or magazines. They are not manufactures consumable products. They

are only one manufacture of connecting rod, crankshaft and cameshaft in India. They are advertising their product by seminars. They

are keep his product in the international seminars or national seminars

of auto parts dealers People comes there and they show the product.

Thus they are advertising their product.


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7. Export the product and list of

customers

Export means to send the produces to other countries from the

origin country is known as export. In other sense if a company sends

his produces over geographical boundaries of the origin country is

called export.

Amul Industries is the only manufacturer of connecting rod,crankshaft and other auto parts. So they have many customers out of

country. They are having customers of our nation and international

also. Mainly they are exporting their produces to Iveco, Italy, FMC-

USA, UK, Germany, France, Egypt, Dubai Africa and many other

countries. They are exporting the product to the more then 20

countries.

Few of their customers are as under:

National customer:

Cummins India Ltd.

L & T John Deere Ltd.

Tata motors

Ashok Leyland Ltd.

Manindra & Mahindra Ltd. Group,

Simpson & Co.

Swaraj Engines

Eicher TractorsHero Motors


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Greaves Ltd.

New Halland Tractors Ltd.

Escorts Tractors.

More over Generators, air compressor automatically sealed

compressors, Diesel Engines and Hydraulic Motors Ingersoll Rank,

Kirlosker oil engine volts etc.

Foreign customers :

Iveco Italy.

Lombardini Italy.

FMC USA.

John Deere USA

And many other customers are also there.

8. MARKETING RESEARCHSHREE GYANYAGNA COLLEGE OF SCINCE AND MANAGEMENT

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Marketing research is the systematic gathering with market

place. I.e. price, product, promotion and distribution. It is very

important in present industries because of evaluation of new product

and increasing competition in every industry.

Amul Industries gives less important to marketing research

activities at certain intervals by directly contacting their buyers.


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FINANCEDEPARTMENT

FINANCE DEPARTMENT


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INDEX

1 INTRODUCTION 57


3 FINANCIAL PLANING 59

4 CAPITALISATION 60

5 SOURCES OF FINANCE 61

6 MANAGENEMENT OF FIXED ASSETS 62

7 LOANS 63

8 PROFIT & LOSS 64

1. Introduction

Finance is an essential phenomenal for running the business

continuously. Finance is also essential for expanding the business.SHREE GYANYAGNA COLLEGE OF SCINCE AND MANAGEMENT

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Finance management deals with the management activity which is

concerned with the planning and controlling of the firms financial

resources.

Amul Industries has its own separate finance and accounting

department. The incharge of this department is Mr.Trivedi.

2. Organizational Chart

Finance Department


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Administrative Chief accountant

Officer

Accountant

Clerical staff

3. Financial Planning

Financial planning is the most important point to be decided.

The manager has to work on different areas like procurement of

sources to get capital. How to manage the capital?


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They have to take different financial decisions like amount of

ownership, capital amount of borrowed, capital and also internal

financing. Investment decisions which include capital budgeting

decision and working capital management have to be taken carefully.

Amul Industries adopts long term as well as short term financial

planning.

4. Capitalization

A.S.Dewing says The term capitalization to the valuation of

capital includes the capital stock and debt.


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Attention is focused on the quantitative aspect only. In this

sense it includes ownership capital and the borrowed capital as

represented by long term indebtedness.

Capitalization:

Ownership + long term loan capital + Share capital

Total capital = Owned capital + borrowed capital

= 52.18 % + 50.82 %

= 103 %

5. Source of Finance

Adequate source of capital must be developed by every

business concern. For small and medium sized companies the supply


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of capital is frequently a limitation on the successful execution of many

policies and programs.

Broadly speaking a company can have two main sources of

capital.

(A) Internal Sources

(B) External sources

Amul Industries is using his own capital as an internal sources

and they are also using external sources like bank, shares etc.

6. Loans

It anticipated earning are well above interest and sinking fund

needs the earning are stable. Certain and regular and the success of


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decisions regarding investment in fixed assets which are not meant for

sale such as land, building and machinery etc.

Amul Industries also having an efficient management of used

assets is done a fixed assets are purchased out of the fund and loan

from bank.

The fixed assets of Amul Industries is for the year of 2004-2005

was following.

8. PROFIT & LOSS

Profit refers to the situation where output exceed input earns

value created by use of resources are more then the total of the input

resources. The motive of business is to earn profit also it is the yard

stick through which the firm can be measured it. Therefore prime


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responsibility of the management to make intensive use of invested

capital with a vies to earn a reasonable profit.

The net profit of the industries , after deducting all direct or indirect

expenses and liabilities are as under.2004-2005 085.00 Lacks (approximately)

2005-2006 378.60 Lacks (approximately)

The rising of profit is very high as compare to last year. In my opinion

the main reason of rising of profit are as under.

1) the management has got very good control as compare toprevious year.

2) The maintenance has become very strong and economical.

3) The turn-over has increased drastically. And it is Because of

improvement in quality .


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FUTUREPLANS

Future plansEach and every industry has their own motto and plan. The

main future plans of the industry in the forth coming years are asfollows.

1. The company wants to produce a good quality product itreasonable price.


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2. The company has made a good plan for enhancing training to their employee for better output and also decided to provideopportunity to develop their skill.

3. The company has also plan to double the production withretaining

good quality of product.

By these all pre-determine steps the company may be expanded invery short time of span.


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SUGGESTIONS

SUGGESTIONS

In my opinion some suggestions are as under.

1) The company should maintain good relationship with their employee by satisfying their requirement in context of

companys profit. The employee should have proud in referenceof company, so it will help in good quality and mass production.


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2) The company should plan for construction of colony for their employee. By this the employee would be able to work withoutworries about their family.

3) Company should provide some essential living things to the

employee instead of giving them allowances on seniority basisor on cadre basis it will increase the fame of company inemployees personal life also.

4) The company should establish all the activities in sequence.


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CONCLUSION

CONCLUSION

The purpose of the study was to highlight the philosophy,

culture and sentiments of organization.


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After visiting Amul Industries, I feel very glad that I had been apart of it for some time. This visit gave me much practical knowledgeand a very good experience.

The unit is also equipped with the latest technology and modern

machines, the staff and employees are also well organized and wellco operative.

Looking to the units properly and orderly management I wouldlike to give my best wishes for each and every step they take for expansion and for attaining a bright future.

SWOT ANALYSIS

A: The story


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The SWOT Analysis (= strengths, weaknesses, opportunities,

threats) is the last exercise of the project module during the end of

which the participants are supposed to have identified THEIR projects.

Based on these concrete project ideas, they will have to undertake

their market studies.

It is quite a simple but very powerful tool which enables the

participants to do a proper comparison of the last three projects

remaining after the micro screening process; sometimes, there is only

one good project idea left which then will be cross-checked with the

help of the SWOT Analysis.

There are almost no variations in this exercise across the differentregions where CEFE is applied because the stringent rules of thisanalysis dont leave much room for interpretation. The SWOTframework takes the shape of a traditional window with four parts(quadrants). The upper two of the four quadrants representingstrengths and weaknesses refer partly to the PECs and partly to allother self-inspection tools carried out during the entrepreneurialcompetencies module.

The lower quadrants standing for opportunities and threats build onthe environment sub-module as well as the participants perceptionand judgement of the factors influencing their identified projects. Of course, a certain subjectivity is always prevailing so that thepresentation of the group exercises and individual results is verycrucial in safeguarding objectivity and intellectual depth for theindividual SWOT analyses.


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B: Basic information

Objectives of learningBasic objectives to The participants


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Requirements

Trainers/assistants 1 trainer, 1 assistant

Didactic aids toprepare

- four swot-analysis tables on kraft paper (see swot analysis framework, annex 1)with the respective text prepared onmetaplan cards (different colours) for abetter visualisation

Materials for thetrainers (during theexercise)

- components of the swot analysis(annex 3)

Materials for the

participants(during theexercise)

- individual swot analysis (annex 2)

Importantconditions of theroom

- none

D: Learning Process Overview


Step Time Most important contents

Introduction 15 Comprehension of the SWOT analysis

frameworkGroup work 45 Application of the SWOT analysis

framework for the group project identifiedduring the preceding Micro Screeningexercise

Grouppresentation

60 Critiquing and refining of the groupSWOT analyses

IndividualSWOT

Analysis

45 Individual work on max. three identifiedproject ideas

Individualpresentation

30 Presentation of selected individualSWOT analyses

Processing 15 Wrap-up of previous steps and outlookon the following ones

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E: Hints for preparation, typical situations and dangers

Based on the results of the micro screening exercise, the samegroups continue with the SWOT Analysis. As for the preceding


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exercise, it is best to prepare already four blank SWOT Analysistables (four quadrants) so that no time is lost in the beginning.

The choice of four different metaplan card colours for the differentquadrants is advisable because any card changed during the

presentation and critiquing phase is clearly visible to everybody. Themore cards change the quadrants after discussion, the less theframework has been properly understood.

Dont hesitate to critically question meaning as well as positioning of doubtful cards during the group- and individual presentation phasebecause this is the last opportunity for the participants to eventuallychange their project ideas.

Its typical that the participants identify less negative factors

(weaknesses, threats) than positive ones. This could create a great

danger to objectively taking a final decision on the seemingly most

viable project idea.

During the individual work phase, it may happen that someparticipants dont feel confident enough to do the SWOT Analysis.Visit them regularly during this phase and give individual guidancethrough appropriate questions. As the handout Components of SWOT Analysis (Annex 3) has already been distributed during thisphase, urge them to read the text and provide additional examples for their specific cases, if required.

The lack of confidence based on missing market information might beovercome through an integrated market visit (not exceeding 3 hours)during which the participants are urged to collect some informationreferring to the issues mentioned in Annex 3 (see also G.2:maximising).

F: Variations


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1) Alternative uses and objectivesIsolated components of a business or an intention for expansion or

diversification can be dealt with in the same way, hence the

importance of pointing out this possibility during the wrap-up phase.

2) Minimising/MaximisingIn a group of total newcomers without much prior exposure to

business, it is helpful to let the participants do a brief market research

on their pre-selected business ideas before doing the SWOT Analysis.

Depending on your overall time planning, the respective first weekend

during the seminar might be utilised for this purpose without disturbing

the planned execution of the following exercises.

3) SubstitutionsNone


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to make use of them to avoid themBeyond the control of the entrepreneur

Annex 3 SWOT analysis


opportunities Market developments? Competitors' vulnerabilities? Industry or lifestyle trends? Technology development and

innovation? Global influences? New markets, vertical,

horizontal? Niche target markets? Geographical, export, import? Market need for new USP's? Market response to tactics,

e.g., surprise? Major contracts, tenders? Business and product

development? Information and research? Partnerships, agencies,

distribution? Market volume demand

trends?

Seasonal, weather, fashioninfluences?

threats Political effects? Legislative effects? Environmental effects? IT developments? Competitor intentions -

various? Market demand? New technologies, services,

ideas? Vital contracts and partners? Obstacles faced? Insurmountable weaknesses? Employment market? Financial and credit

pressures? Economy - home, abroad?

Seasonality, weather effects?

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Components of SWOT Analysis

Strengths

Strengths are within the control of the entrepreneur and they occur at present!

Strengths should be capitalised and harnessed to makeweaknesses redundant.

technical expertise new improvements of productgood network with customers packagingmanagerial experience superior technologydistribution system product features (utility,

durability, etc.)comparatively cheap price

Weaknesses

Weaknesses are within the control of the entrepreneur; they occur at present.

They are "lack of...", "missing...", or weak points. As far aspossible, weaknesses should be eliminated!


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no control over raw material lack of promotionexperience

limited product life technological obsolescencepoor design of product inexperienced

managers/ownersweak selling effort lack of working capitalcomparatively high price low level of stocks in times

of peak salesno technical expertise of owner

Opportunities

Opportunities are positive or favourable factors in the environmentwhich the entrepreneur should make use of or which make his projectidea potentially viable. They are, however, mostly beyond the controlof the entrepreneur. They are different from strengths in the sensethat strengths are positive internal factors of the business.

few and weak competitors no such products inthe market

rising income of target market scarcity of product inthe locality

growing demand favourablegovernment policy

similar products making profit favourablegovernment programs

technical assistance available low interest on loans


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access to cheap raw material adequate trainingopportunities

Threats

Threats are negative or unfavourable external factors in theenvironment and normally beyond the control of the entrepreneur.

They adversely affect the business, if not eliminated or overcome.Threats differ from weaknesses in as much as they are beyond thecontrol of the entrepreneur. Both have a negative impact on thebusiness. The purpose of analysing threats is to look for ways of hedging against them, i.e., trying to avoid them or lessening their negative impact by making counterbalancing actions.

rising raw materials costs too much competition

government bureaucracy restive labour forceraw materials shortages piracy of skilled labour natural disasters insufficient power graft and corruption poor infrastructurechanging government regulations smuggling


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Coverage

Generally speaking, you should cover the following aspects, while

making a SWOT analysis for a your project idea:

Financial Aspects Physical ResourcesCapital of owner BuildingsCash flow Plant & machinery

Access to additional resources Technology / incubator parks

Investment requirement LocationProfitability Transport facilities

Risk Infrastructure & utilitiesIndustrial flats/estates

Management, Supervisory andOperator Capabilities MarketManagement competence Profile of target market

Age/experience Competitors' marketingstrategy

Skills availability Market shareTechnological know-how Product features/qualityManagement contacts/networkExpanding/contracting/stagnant mar

ketSalesmanship of owner/staff Market niche for

new/existing productPersonnel management Demand /supply situations

(past, pre sent, future)


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Management Information Supply of Raw MaterialsIs the necessary information Are the sources

adequate in terms of available? quantity, quality & price?Is it available in time to aid in Are new materials

becoming availabledecision making and in taking which would be useful to

the company?corrective actions? Will they continue to be

adequate?

Social Environment Production ProcessHow is the small business getting Is the product going

to be massadjusted to the markets? produced?

Are people accepting the product? Is it labour intensive?Is there any particular prejudice, Is it a job order or acontinuouslikes or dislikes for the product? operation?

Is it based on product or

process technology?

SWOT analysis template

Here is a larger illustration of SWOT analysis.

Note that this format is not presented or proposed as a 2x2'internal/external' matrix; it's a more open demonstration of the sorts of issues and questions which can be addressed when using the SWOTformat as part of business planning and decision-making.

Subject of SWOT analysis: (define the subject of the analysis here)


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AMUL INDUSTRIES PVT. LTD SWOT ANALYSIS

Strengths

1. The company is having Indian origin thus creating feeling of oneness in the mind of the customers.

2. It manufactures only milk and milk products, which is purely vegetarian thus providing qualityconfidence in the minds of the customers.

3. It is aiming at rural segment, which covers a large area of loyal customers, which other companieshad failed to do.

4. People are quite confident for the quality products provided by Amul.

5. Amul has its base in India with its butter and so can easily promote chocolates without fearing of loses.

6. The prices of chocolates of Nestles are comparatively cheap as compared to other companies.

Weaknesses

1. There are various big players in the chocolate market, which acts as major competitors restrictingtheir growth.

2. Lack of capital invested as compared to other companies.

3. Improper distribution channel in India.

Threats

1. The major threat is from other companies who hold the majority share of consumers in Indianmarket i.e. Cadburys and Nestle.

2. There exists no brand loyalty in the chocolate market and consumers frequently shift their brands.

3. New companies entering in Indian market like Fantasie fine poses lot problems for Amul. Strengths


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6. The prices of chocolates of Nestles are comparatively cheap as compared to other companies.

Weaknesses

1. There are various big players in the chocolate market, which acts as major competitors restrictingtheir growth.

2. Lack of capital invested as compared to other companies.

3. Improper distribution channel in India.

Opportunities

1. There is a lot of potential for growth and development as huge population stay in rural market whereother companies are not targeting.

2. The chocolate market is at growth stage with very less competition so by introducing new brand and

intensive advertising there can be a very good scope in future.


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BIBLIOGRAPHY


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Bibliography

1. Principles of management- B.S. Shah

2. Marketing Management- S.A.Sherlekar

3. Modern Business Organization and Management- Y.K.Bhushan

4. www.amulind.com


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http://www.amulind.com/http://www.amulind.com/


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