A REPORT ON ORGANIZATION STUDY

AT

BAJAJ FINSERV LENDING

Submitted to fulfillment of the requirements for the degree ofPOST GRADUATION DIPLOMA IN MANAGEMENT

By

Kaushiki Chattopadhyay

Registration No: 421020334

Under the Guidance

Prof. Durgaa Prosad

ACHARYA INSTITUTE OF MANAGEMENT & SCIENCES1st Cross,1st Stage, Peenya Industrial Area

Bangalore-5600582010-2012

DECLARATION I,Kaushiki Chattopadhyay hereby declare that this organizational study report entitled”An Organizational Study Of Bajaj Finserv Lending,Bangalore”is based on original study conducted by me under the guidance of Prof.Durgaa Prosad.

Place: BangaloreDate: KaushikiChattopadhyay

CERTIFICATE FROM THE GUIDE

It is certifify that this organizational study report titled”An Organizational Study Of Bajaj Finserv Lending,Bangalore”is based on the study conducted by Kaushiki Chattopadhyay of III Semester,PGDM under the guidance of Prof.Durgaa Prosad

Prof. Durgaa Prosad(Professor)

Place : BangaloreDate :

Acknowledgement

I wouid like to place on record my most sincere and heardfelt thanks to all those who have helped guided and directed me to complete my Organization Study at Bajaj finserv lending, Bangalore.

I gratefully acknowledge my sense of gratitude and indebtedness to Mr Kunal Mehta sales manager of Bajaj finserv lending providing me an opportunity to do my organizational study in their prestigious organization and necessary information for my internship. I also thank all other staff members of this Bajaj division in Bangalore who have helped me to complete my study successfully.

I sincerely thank Prof Suma (Faculty Guide) for his expert guidance and support towards completion of this project.

I also thank Prof Dr. Kerron G Reddy, principal and CEO of AIMS, who had provided all the required facilities to carry out the report work and nurturing my skills to excute the requirement.

I would also like to express grateful thank to all the respondents who helped me to proceed at every step of a perfect destined life and favoured me with their valuable feedback about the survey and cooperation.

Last but not least my gratitude goes to my family members and friends, who showered upon me their of good wishes and help, towards successful completion of this report.

Place: Bangalore

Date: Anupama Sarkar

CONTENTS SHEET

CHAPTER CONTENTS Page

CHAPTER 1

Profiles1.1 Introduction1.2 Industry Profile1.3 Company Profile1.4 Products Profile1.5 Competitors Profile

CHAPTER 2 Organization Structure

CHAPTER 3Functional Departments

3.1 Marketing department

3.2 Human Resource Department

3.3 Finance Department

3.4 Production and Operation Department.

CHAPTER 4SWOT Analysis

Bibliography and Annexure

LIST OF TABLE

Table No. Title of Table Page No. 1.1

1.2

1.3

1.4

1.5

LIST OF CHARTS

Figure No Title of Figure Page No

1.1

2.1 Matrix Structure

2.2 Functional Structure

2.3 Product Structure

2.4 Customer Structure

2.5 Geographic Structure

2.6 Narrow Span of Control

2.7 Wide Span of Control

2.8 Organization Structure of Bajaj finserv lending

3.1 Bar chart showing revenue and operation income

4.1 Classification of the SWOT factors

INDIAN ECONOMY OVERVIEWIntroduction

India, an emerging economy, has witnessed unprecedented levels of economic expansion ,along with countries like China ,Russia, Mexico and Brazil. India, being cost effective and labour intensive economy, has benefited immensely from outsourcing of work from developed countries, and a strong manufacturing and export oriented industrial framework. With the economic pace picking up, global commodity prices have staged a comeback from their lows and global trade has also seen healthy growth over the last two years.

The GDP growth rate is 8.5 per cent in 2010-11 due the strong contribution of the agricultural sector and the constructional activities along with the financial services. The fourth quarter growth rate is just 7.8 per cent as opposed to 9.3 per cent growth in the third quarter . The service sector is the major contributor which grew by 9 percent in the March quarter this year as compared to 6.3 percent of last year.

1. Industry Profile1.11 Introduction

India is undergoing rapid development. This means that there are millions of people who dream of better home, better infrastructure and a better life. This opens several avenues of potentially limitless growth in the infrastructure and construction sector. Bajaj Finserv Lending will helps grab this opportunity to grow your business.

Financial SectorA category of stocks containing firms that provide financial services to commercial and retail customers. This sector includes banks, investment funds, insurance companies and real estate.Financial services perform best in low interest rate environments. A large portion of this sector generates revenue from mortgages and loans, which gain value as interest rates drop. Furthermore, when the business cycle is in an upswing, the financial sector benefits from additional investments. Improved economic conditions usually lead to more capital projects and increased personal investing. New projects require financing, which usually leads to a larger number of loans

"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created for transacting and trading assets, liabilities, and risks. Finance is conceptualized, structured, and regulated by a complex system of power relations within political economies across state and global market

Areas of finance

Personal finance

How much money will be needed by an individual (or by a family), and when? How can people protect themselves against unforeseen personal events, as well as

those in the external economy? How can family assets best be transferred across generations (bequests and

inheritance)? How does tax policy (tax subsidies or penalties) affect personal financial

decisions? How does credit affect an individual's financial standing? How can one plan for a secure financial future in an environment of economic

instability?

Finance of public entities

Public finance describes finance as related to sovereign states and sub-national entities (states/provinces, counties, municipalities, etc.) and related public entities (e.g. school districts) or agencies. It is concerned with:

Identification of required expenditure of a public sector entity

Source(s) of that entity's revenue The budgeting process Debt issuance (municipal bonds) for public works projects

Financial risk management

Financial risk management is the practice of creating and protecting economic value in a firm by using financial instruments to manage exposure to risk, particularly credit risk and market risk. (Other risk types include Foreign exchange, Shape, Volatility, Sector, Liquidity, Inflation risks, etc.) It focuses on when and how to hedge using financial instruments; in this sense it overlaps with financial engineering. Similar to general risk management, financial risk management requires identifying its sources, measuring it (see: Risk measure: Well known risk measures), and formulating plans to address these, and can be qualitative and quantitative. In the banking sector worldwide, the Basel Accords are generally adopted by internationally active banks for tracking, reporting and exposing operational, credit and market risks

Intangible Asset Finance

Intangible asset finance is the area of finance that deals with intangible assets such as patents, trademarks, goodwill, reputation, etc.

Bajaj Finserv Lending is one of the leading financiers in the market offering consumer durable loans on EMI.

An easily avail on a loan for products like LCD, LED, Color TV, Refrigerator, Washing Machine, Air Conditioner, Music System, Microwave amongst a host of other products.

Bajaj Finserv Lending consumer durable loan comes with 0% financing and with a small fee. One can apply online on their website and get an instant approval or visit a dealership to easily avail a loan. It provides on the spot approval with minimum documentation & fast processing.

They offer finance for various infrastructure related equipments in the field of Construction, Mining, and Material Handling businesses so you can go ahead and construct your own path to success. They extend finance with attractive benefits for both new as well as used equipment.They provide loans on the basis of

Consumer Durable LoanConstruction EquipmentFinanceHome LoanInsurance ServicesLoan Against PropertyLoan Against Securities

Personal LoanSmall Business LoanTwo Wheeler LoanEMI Card Credit Card

Bajaj Finserv Lending offers loans for various needs. We offer loans for Bajaj Auto Two Wheelers under the name of Bajaj Auto Finance Ltd. We offer Consumer Durable Loans, Personal Loans, Loan Against Property, Small Business Loans, Construction Equipment Loans, Loan Against Securities and Insurance Services under the name of Bajaj Finserv Lending.

Bajaj Finserv Lending is one of the most diversified NBFCs in the market catering to more than 5 million customers across the country. Apart from being a well recognized organization, They pride ourselves for holding the highest credit rating of FAAA/Stable for any NBFC in the country today.The product offerings include Consumer Durable Loans, Personal Loans, Loan Against Property, Small Business Loans, Two-wheeler and Three-wheeler Loans, Construction Equipment Loans, Loan Against Securities and Insurance Services.

Unique products feature across all categories and offer a compelling value proposition to our customers. The strong presence in the Indian market for over 23 years has enabled us to establish a strong foothold here and we aim to continuously provide our customers with premium service and exclusive benefits.

1.12 SWOT Analysis Of Financial Lenders

Strengths Highly experienced management

Product design and development capabilities

Extensive R & D focus

Widespread distribution network

High performance products across all categories

High export to domestic sales ratio

Great financial support network (For financing the automobile)

High economies of scale

High economies of scope

Hasn't employed the excess cash for long.

Weaknesses

Still has to establish a brand

Not a global player in spite of huge volumes.

Not a globally recognizable brand

Opportunities:

Double-digit growth in financial loan market.

Untapped market above other lending companies.

More maturity and movement towardsproduct introduction.

The growing and improvised schemes in the market.

Growing demand for 0% financial schemes especially in emerging markets.

It is also proposing to launchmore other financial schemes and more product introduction

Threats

The competition catches-up any new innovation in no time.

Threat of other financial lenders like future finance etc offering the same benefits Margins getting squeezed from both the directions (Price as well as Cost)

1.13 Small Business Loans

Loans from10 lacs to 50 Lacs .Loans to small & medium businesses. Vendor Financing & Commercial Lending.

1.14 Sales Finance & Cross-Sell

Financing for consumer durables. Cross-sell insurance and personal loans

1.15 Mortgages

Loans from 50 lacs to 15 crores. Product offerings catering to residential,commercial, Lease rental discounting.

1.16 Insurance Services

Offer bundled loan and life protection. Products partnered with leading Insurance companies for Life and General Insurance products.

1.17 Construction Equipment

Focus on large corporates.Strategic & Retail Customers.Loan size of 25 lacs- 25 crores.

1.18 Loan against Shares

Promoter financing,HNI –Retail loans against securities,Loan size from 1-10 crores.

1.9 Market Oppurtunities

1.91 Vast Rural Market

The rural consumer market, which grew 25 per cent in 2008, is expected to reach US$

425 billion in 2010-11 with 720-790 million customers, according to a white paper

prepared by CII-Technopak. According to the study, the rural market is seeing a 15 per

cent growth rate.

According to the figures released by market researcher Nielsen, demand for personal care

products grew faster in rural than urban areas during the period January-May 2010.

special financing scheme backed by Bajaj Finance with a direct cash collection facility. That is, customers need not provide post-dated cheques to avail of finance ; they can pay the instalments in cash.

"The loans will be given on the basis of trust and initial verification and there will be no collateral ," Sridhar said. The company has already tried this out in select areas and, according to him, default rate is much less than in the post-dated cheque system.

Bajaj Auto is also considering a seasonal collection strategy for rural areas, Sridhar said. This would mean that instead of monthly instalments , rural customers can time their loan repayment to crop cycle, which is 2-3 months for rice and wheat.

Experts feel that the rural initiative will make an immediate impact on the company's business. "Bajaj Auto will be able to improve its market share to more than 30% with the rural push," said Fortune Financials analyst Mahantesh Sabarad. "But the rising input cost will put pressure on margins," he added.

1.92 BUDGET 2011-11 AND FINANCIAL SECTOR

The Union Budget 2011-12 presented today by the Finance Minister seems balanced and growth oriented. Agriculture, Infrastructure and Social sector have been the focus areas. The budget has sought to promote growth with an inclusive agenda. Consequently, substantial plan outlay has been devoted to social and rural development. The Finance Minister expressed his concern over the problem of generation and circulation of black money in the Budget Session and announced the implementation of a Five Fold Strategy to deal with the problem. Besides this the Budget 2011-12 laid the foundation for the roll out of DTC and GST. Proposed increased exemption limit was in-line with market expectations. Investment reforms for FIIs and FDIs came in as a surprise which has been a major cause of concern in recent month .

Banking sector being a backbone of the economy has shown a strong growth in the FY11; especially the robust results in the last few quarters have bestowed strength in the banking sector. In the first half of the financial year 2011 the credit growth has been subdue but later it improved on back of strong demand for capex, infrastructure and agriculture. Due to inflationary pressures in the economy RBI has raised repo & reverse repo rate six times in last financial year. Despite this bank's have improved their performance on all fronts like NII, NIMs, CASA etc. Going ahead, banks are likely to focus more on CASA growth by expanding there branch network (rural and unbanked areas), improvement in NIMs & reduction in NPA's. We believe the sector will continue to remain under pressure in the near term until a sharp uptick in credit and deposits growth alongside pressure on yields easing off. We have seen interest rates on the deposits side, money markets, etc. inching up at a much faster pace on account of continued liquidity shortfall which would affect banks NIMs. Banks with higher CASA will be able to ride the wave better and protect NIMs. However, the inherent strengths of the Indian banking industry is likely to offset this impact.

As a result of strong competition and the taxes would either trigger down trading or financial transactions. While this resulted in strong top line growth, margins of companies witnessed downward pressure. Sharp increase in advertisement expenses in newspapers also put pressures on margins of these companies

1.93 Budget Impact

increase domestic revenues to 19 percent of GDP;

limit domestic borrowing to 1.3 percent of GDP and net external borrowing to 3.0 percent of GDP

commit at least 50 percent of the budget to social sectors and infrastructure development

Government will ensure transparent and accountable use of loans by strengthening parliamentary oversight

v) Growth Prospects

India's economy is booming and looks set to continue its strong growth, with real GDP

growth accelerating from 7.0% to 7.8% in the coming fiscal year. This in turn will

financially empower more and more citizens thus creating an ever-growing middle- and

upper-class consumer base which will drive up food, drink and mass grocery retail

(MGR) sales in the country.

1.2 COMPANY PROFILE

1.21 Introduction

What started off as a sugar manufacturing factory in 1931, has grown to become one of

the country’s largest business houses. With activities that encompass a whole range of

industries, spanning automobiles (two-wheelers and three-wheelers), home appliances,

lighting, iron and steel, insurance, travel and finance.

At the turn of the new millennium, this business conglomerate is ranked amongst one of

the largest business family in India by the Centre for Monitoring Indian economy

(CMIE). It has under its umbrella over 25 companies and strength of over 25000

employees.It’s core strength, however, is the unshakeable foundation based on its

tradition of trust.

With the demerger of Bajaj Auto Ltd, following separate corporate entities came into existence in May’ 2008

o Bajaj Finserv Ltd (BFL),

o Bajaj Auto Ltd (BAL), and

o Bajaj Holdings and Investment Ltd (BHIL)

Demerger of Bajaj Auto Ltd. Bajaj is present in over 50 countries all over the globe

Dominant presence in Africa, Latin America and South Asia with increasing market share every year

Market leader in motorcycles in Colombia, Central America, Sri Lanka, Bangladesh, Philippines, Nigeria, Uganda and Kenya

891,002 units exported in 2009-10, an increase of over 15 % over the previous year

Largest exporter of three wheeled commercial vehicles in the world: 164,887 units exported in 2009-10, a rise of 19% over 2008-09

“Do whatever you think best, but be best at whatever you do”

– Rahul Bajaj, Chairman- Bajaj Group

Bajaj Finserv Lending is one of the leading financiers in the market offering consumer durable loans on EMI.

An easily avail on a loan for products like LCD, LED, Color TV, Refrigerator, Washing Machine, Air Conditioner, Music System, Microwave amongst a host of other products.

Bajaj Finserv Lending consumer durable loan comes with 0% financing and with a small fee. One can apply online on their website and get an instant approval or visit a dealership to easily avail a loan. It provides on the spot approval with minimum documentation & fast processing.

They offer finance for various infrastructure related equipments in the field of

Construction ,Mining, and Material Handling businesses so you can go ahead and

construct your own path to success. They extend finance with attractive benefits for both

new as well as used equipment

Bajaj Finserv Lending offers loans for various needs. We offer loans for Bajaj Auto Two Wheelers under the name of Bajaj Auto Finance Ltd. We offer Consumer Durable Loans, Personal Loans, Loan Against Property, Small Business Loans, Construction Equipment Loans, Loan Against Securities and Insurance Services under the name of Bajaj Finserv Lending.

Bajaj Finserv Lending is one of the most diversified NBFCs in the market catering to more than 5 million customers across the country. Apart from being a well recognized organization,They pride ourselves for holding the highest credit rating of FAAA/Stable for any NBFC in the country today.The product offerings include Consumer Durable Loans, Personal Loans, Loan Against Property, Small Business Loans, Two-wheeler and Three-wheeler Loans, Construction Equipment Loans, Loan Against Securities and Insurance Services.

Unique products feature across all categories and offer a compelling value proposition to

our customers. The strong presence in the Indian market for over 23 years has enabled us

to establish a strong foothold here and we aim to continuously provide our customers

with premium service and exclusive benefits.

1.22 PRESENT STATUS

Vision

To attain world class Excellency by demonstrating value added products to

customers.

To attain brand value by learning, innovation, perfection and transparency.

To ensure proactivity, to create the future through innovation.

To set new standards and reach near to perfection.

To convey clear conviction and characterize themselves.

1.23 Mission

Focus on value based lending.

Fostering team work and enhancing the capability of team.

Continual Improvement.

Total elimination of fraud practices.

Ensuring easy and quick accessibility to customers.

1.24 Objective

Bajaj Finserv Lending is one of the most diversified NBFCs in the market

catering to more than 5 million customers across the country .Apart from being a

well recognized organization, they pride ourselves for holding the highest credit

rating of FAAA/Stable for any NBFC in the country today.To cater products

To the customers changing financial requirements based on customer feedback

and improvising the existing products.

1.25 Goals

To catapult Bajaj Finserv as the country’s largest financial lending firm.

1.26 Our values

i)Empowerment

We respect the opinions and decisions of others.

We encourage and back people to do their best.

ii)Flexibility

We are ever willing to learn and adapt to the environment, our partners and

customers evolving needs.

iii)Entrepreneurship

We always strive to change the status quo.

We innovate with new ideas and energies with a strong passion and

entrepreneurial skills.

iv)Transparency

We believe we must work with honesty, truth and the inmate desire to do good.

v)Impact

We are driven by the desire to create a meaningful difference in society.

1.27 Key Competitors

COMPANY SYMBOLBajaj Finance Ltd. BAJAUT

Aakruti Holdings Ltd. AAKHOL

Aasheesh Securities Ltd. AASSEC

Abhinav Capital Services Ltd. ABHCAP

Abirami Financial Services (India) Ltd. ABIFIN

Action Financial Services (India) Ltd. ACTFIN

Ad-Manum Finance Ltd. ADFIN

Adinath Exim Resources Ltd. ADIEXI

Aditya Birla Money Ltd. APOSIN

Advance Powerinfra Tech Ltd. MARPOW

Aeonian Investments Company Ltd. AEOINV

Agarwal Holdings Ltd. AGAHOL

Ajcon Global Services Ltd. AJCGLO

AK Capital Services Ltd. AKCAPS

Alfavision Overseas (India) Ltd. ALFOVE

Alka Securities Ltd. ALKSEC

Almondz Capital & Management Services Ltd. ALMCAP

Almondz Global Securities Ltd. ALMGLO

PRODUCT PROFILE

Bajaj Finserv Lending offers loans for various needs. We offer loans for Bajaj Auto Two Wheelers under the name of Bajaj Auto Finance Ltd. We offer Consumer Durable Loans, Personal Loans, Loan Against Property, Small Business Loans, Construction Equipment Loans, Loan Against Securities and Insurance Services under the name of Bajaj Finserv Lending.

Bajaj Finserv Lending is one of the most diversified NBFCs in the market catering to more than 5 million customers across the country. Apart from being a well recognized organization,They pride ourselves for holding the highest credit rating of FAAA/Stable for any NBFC in the country today.The product offerings include Consumer Durable Loans, Personal Loans, Loan Against Property, Small Business Loans, Two-wheeler and Three-wheeler Loans, Construction Equipment Loans, Loan Against Securities and Insurance Services.

Small Business Loans

Loans from10 lacs to 50 Lacs .Loans to small & medium businesses. Vendor Financing

& Commercial Lending.

1.14 Sales Finance & Cross-Sell

Financing for consumer durables. Cross-sell insurance and personal loans

1.15 Mortgages

Loans from 50 lacs to 15 crores. Product offerings catering to residential,commercial, Lease rental discounting.

1.16 Insurance Services

Offer bundled loan and life protection. Products partnered with leading Insurance companies for Life and General Insurance products.

1.17 Construction Equipment

Focus on large corporates. Strategic & Retail Customers .Loan size of 25 lacs- 25 crores.

1.18 Loan against Shares Promoter financing, HNI –Retail loans against securities, Loan size from 1-10 crores

ORGANIZATIONAL STRUCTURE

2.1 Introduction:

A key issue in accomplishing the goals identified in the planning process is structuring

the work of the organization. Organizations are group of people, with ideas and

resources, working toward common goals. The purpose of the organizing function is to

make the best use of the organizations resources to achieve organizational goals.

Organizational structure is the formal decision making framework by which job tasks are

divided, grouped, and coordinated. Formalization is an important aspect of structure. It is

the extent to which the unit of the organization is explicitly defined and its policies,

procedures, and goals are clearly stated. It is the official organizational structure

conceived and built by top management. The formal organization can be seen and

represented in chart form .an organization chart displays the organizational structure and

shows job titles , lines of authority and relationship between departments.

Organizational structure allows the expressed allocation of responsibilities for different

functions and processes to different entities. Ordinary description of such entities is as

branch, site, department, work group, and single group of people.

2.2 Types of Organization Structure

Functional Structure

Divisional Structure

Matrix Structure

I. Functional structure: Under the functional type of organization, all identical

activities are grouped together under one functional department. Each

functional department is managed by an executive who is a specialist in his

own field. There may be a separate department based on important functions

such as finance, marketing, personnel.

II. Divisional structure: In a divisional organization, corporate divisions

operate as relatively autonomous businesses under the larger corporate

umbrella. In a conglomerate organization, divisions maybe unrelated.

Divisional structures are made up of self-contained strategic business units

that each produces a single product. Functional departments accomplish

division goals. A weakness however, is the tendency to duplicate activities

among divisions.

III. Matrix Structure :In a matrix organization, teams are formed and team

members report to two or more managers. Matrix structure utilizes functional

and divisional chains of command simultaneously in the same part of the

organization, commonly for one-of-a-kind project. It is used to develop a new

product, to ensure the continuing success of a product to which several

departments directly contribute, and to solve a difficult problem. By

superimposing a project structure upon the functional structure, a matrix

organization is formed that allows the organization to take advantage of new

opportunities. This structure assigns specialists from different functional

departments to work on one or more projects being led by project manager.

Organization structure

CEO

BH

NSM

EAST WEST NORTH SOUTH

RMS

KOLKATA MUMBAI DELHI BANGALORE

JHARKHAND MAHARASHTRA

UTTAR PRADESH

TAMIL NADU

ORISSA GUJARAT RAJASTHAN ANDHRA PRADESH

ZSM

ASM

SM

LEADERSHIPRajeev JainChief Executive Officer

Amit GaindaBusiness Head - Mortgages

Ashish PanchalBusiness Head – Credit Cards

Ashish Sapra Business Head - Cross Sell

Atul JainChief Collections Officer

Deepak GuptaChief - Human Resources & Development

Deepak ReddyBusiness Head - Personal & Small Business Loans

Devang ModyBusiness Head - Sales Finance

Diwakar PundirChief -SBS Underwriting

Pankaj ThadaniChief - Financial Officer

Rajesh KChief Risk Officer 

Rakesh BhattChief - Credit Ops & IT

R. NagarajanBusiness Head - Loan Against Securities

Samir MehtaHead – Commercial Lending

Sanjeev VijBusiness Head - Construction Equipment Finance

Vivek R.LikhiteChief Corporate Audit

FUNCTIONS ON THE DEPARTMENT 3.1 HUMAN RESOURCE DEPARTMENT3.1.1 IntroductionHuman resources department is the important which is very essential for the betterment of the organization. More than 80% managers spend time handling human resources. A very common problem that exist is conflict in intra-department or in worker and management, so HRM plays as a tool to resolve this problem efficiently.Human resource department is playing a very crucial role in the organization and it is helping out to carry out all the functions in the organizations effectively. In Field Fresh Foods Pvt. Ltd department head will forecast manpower requirement and send the report containing detailed information regarding the required number of candidates, qualifications required. The report will be send to HR department. Issue is discussed there and decision is taken.Field Fresh recognizes that its people are the key to its continued expansion and growth. Therefore the company puts a great deal of emphasis on talent acquisition, development, retention and motivation. On the acquisition front company has a well developed program, which is a cross-departmental training programme designed for new recruits, and ensures a regular talent flow within the company. On the training and development front, company has spent considerable time in enhancing skills of its sales force.3.1.2 Objectives

To recruit quality personnel & to provide necessary training and development etc To poster commitment for the individuals to the success of the company. To utilize people to their full capacity by providing them meaningful job, tasks,

responsibilities and recognition & uplift the moral of employees. To encourage willingness to operate flexibly in the interests of the adaptive

organization and the pursuit of excellence.

3.1.3 Functions Recruitment Target setting and performance appraisal Promotion and transfer Training and development Motivational activities Human resources development

Referral policy

3.1.6 Opportunities They are committed people, they work towards creating an environment in which

employees can perform their best and thus provide quality service, service that is customer oriented.

They enable encourage and empower employees to learn, look for the following attributes in individuals when they hire: Communication, Teamwork, Quality Consciousness, Customer Focus and Result Oriented.

3.2 MARKETING DEPARTMENT3.2.1 IntroductionMarketing is the link between society’s material requirements and its economic patterns to the response to the product, price, promotion and physical distribution and its main components.The distribution is the key link between the production and the marketing function. The distribution system helps the manufacturer to reach the customers in earliest possible time, this system begins with manufacturing of the products and ends in the hand of customers, giving him satisfaction. Effective distribution helps every organization to achieve maximum efficiency with achievable targets, it enhances profit maximization goals.The distribution planning involves the decision making on various areas like – warehousing, plant location, inventory level, and transportation facilities that are designed to supply product to the customer.

3.2.2 Objectives To provide support to all its sales departments, promotional activities. Customer satisfaction is primary objective of FieldFresh Foods Pvt. Ltd. To develop an intelligence in appreciation of modern changes. To provide guiding policies regarding marketing procedure and their

implementation. To analyze the shortcoming in the existing pattern of marketing. To enable successful distribution of the products.

3.2.3 Functions Providing marketing material. Enabling new branch setup. Events/stalls conducted by branches. Market Occasions like Diwali, New Year and budget. commentary and research reports.

a) Providing for Marketing Material

Marketing Materials like Flyers, promos, brochures, paper inserts, brochure

holders etc., are handled marketing department as and when required. The

requirement can be for re-printing the old material or designing and printing new

material.

The task includes,

Content writing for material

Getting the design from agency

Collating material requirements from regions

Negotiating for price and getting the material printed

Distribution of materials and cost allocation.

b) Enabling new branch set up

The process under this includes identifying the location for placing glow

signs/boards/logos, picking measurements, getting designs, installations of

materials.

Glow Signs

Posters

Logo

Brochure Holder

Expressions

c) Events/Stalls conducted by branches

The branches are given liberty to conduct any events to bring business to the

company. The permission and the budget allocation to conduct such events rest with

the marketing department and in-turn the Marketing Head.

The events like Treasure hunt, seminars, presentation, contests etc. are conducted by

many branches all over India through their respective initiatives.

d) Occasions

March Budget and Beyond-An investor meet is held after the release of the budge in

major cities. For this occasion marketing department has the responsibility to equip

branches with Banners, invitation cards and assistance of PPT presentations.

3.2.4 Customer satisfaction

Whether the buyer is satisfied after purchase depends on the offer’s performance in

relation to the buyer’s expectations.In general satisfaction is person’s feeling of

pleasure or disappointment resulting from comparing a product perceived

performance in relation to his/her expectations.

Customer satisfaction is a function of perceived performance of expectation, if the

performance falls short of expectations the customer is dissatisfied. If the

performance matches the expectations, the customer is satisfied. If the performance

exceeds expectations the customer is highly satisfied or delighted.

3.3 FINANCE DEPARTMENT3.3.1 IntroductionFinance is the most important thing for any business. It is like a blood of ant business it is concerned with the activation of funds and wide application on the funds. The success of a business lies with the effective management of finance in the company. Finance management is that managerial activity, which is consumed with the planning and controlling of the firm’s financial resources. It is the most important department in which most of the functions are carried out such as accounting, planning, mobilization and effective utilization of funds.3.3.2 Objectives

Dealing with bank and finance institutions. To monitor the budget and budgetary control. Monitoring the funds, collection and payments. Finance planning and mobilization of cash. Controlling inflow and outflow of cash. To exercise cost control and cost reduction techniques. To see the financial interest of the company. To protect the financial interest of the company. It helps in achieving the business results profitably. Waste management.

3.3.3 Functions Allocation of funds. Raising of funds. Profit planning. Book keeping and accounting. Financial control.

Preparation of financial statement.

3.4 PRODUCTION AND OPERATION DEPARTMENT3.4.1 IntroductionThe production function on an organization is that which produces the organization products. In some organization the product is physical goods while in other it’s a service.The production function includes conversion process, some resources input into the process, the output’s resulting from the conversion of input’s and information feedback about the activities in the production functions. Once goods and services are produced they are converted into cash to acquire more resources to keep the conversion process alive.The rapid change in technology and globalization of market are putting pressures on industries to be comparative for their survival and growth. Quality, reliability, cost. Productive and delivery schedule have become the watchwords of industries. Thus manufacturing has become an important strategic issue in the current techno-economic scenario. Organizations are required to plan executive and control the operations strategically to meet the customer requirements.

3.4.2 Objective Right quality Right quantity Pre-determined cost Pre-determined time

3.4.3 Functions Production is an organized activity and it as specific goals and objectives to

achieve. Production system is subsystem of large organization. Production system transforms various inputs into useful outputs. There exists a feedback system, which helps to take steps to improve the

performance of the productivity system.

3.4.4 Scope and Objective of Production Management

Production management objectives are aimed at satisfying the needs of the customers

though offering organizational product and services. The scope of the production

management can be considered from the point of view of both strategic and

operational level decisions affecting them.

The strategic level decision ate mainly concerned with the design of the product and

production system, which have long-term implication. The operational level decisions

are short-term decisions

The scope and activity at the operational level are.

1) Production planning

2) Production control

3) Other activities include inventory control maintenance and replacement, cost

reduction and cost control, work system design.

CHAPTER.4

SWOT ANALYSIS

4.1 Introduction

SWOT analysis is a simple framework for generating strategic alternatives from a

situation analysis. It is applicable to either the corporate level or the business unit level

and frequently appears in marketing plans. SWOT (sometimes referred to as TOWS)

stands for Strengths, Weaknesses, Opportunities, and Threats. The SWOT framework

was described in the late 1960's by Edmund P. Learned, C. Roland Christiansen, Kenneth

Andrews, and William D. Guth in Business Policy, Text and Cases (Homewood, IL:

Irwin, 1969). The General Electric Growth Council used this form of analysis in the

1980's. Because it concentrates on the issues that potentially have the most impact, the

SWOT analysis is useful when a very limited amount of time is available to address a

complex strategic situation. The following diagram shows how a SWOT analysis fits into

a strategic situation analysis.

Situation Analysis

Strengths Weakness Opportunities Threats

Internal Analysis External Analysis

The internal and external situation analysis can produce a large amount of information,

much of which may not be highly relevant. The SWOT analysis can serve as an

interpretative filter to reduce the information to a manageable quantity of key issues. The

SWOT analysis classifies the internal aspects of the company as strengths or weaknesses

and the external situational factors as opportunities or threats. Strengths can serve as a

foundation for building a competitive advantage, and weaknesses may hinder it. By

understanding these four aspects of its situation, a firm can better leverage its strengths,

correct its weaknesses, capitalize on golden opportunities, and deter potentially

devastating threats.

4.2 SWOT Profile

When the analysis has been completed, a SWOT profile can be generated and used as the

basis of goal setting, strategy formulation, and implementation. When formulating

strategy, the interaction of the quadrants in the SWOT profile becomes important. For

example, the strengths can be leveraged to pursue opportunities and to avoid threats, and

managers can be alerted to weaknesses that might need to be overcome in order to

successfully pursue opportunities.

4.3 Internal Analysis

The internal analysis is a comprehensive evaluation of the internal environment’s

potential strengths and weakness. Factors should be evaluated across the organization in

areas such as:

Company culture

Company image

Organizational structure

Key staff

Access to natural resources

Position in the experience curve

Brand awareness

Market share

Financial resources

Exclusive contracts

Parents and trade secrets

The SWOT analysis summarizes the internal factors of the firm as a list of strengths and

weakness.

4.4 External Analysis

An opportunity is the chance to introduce a new product or service that can generate

superior returns. Some of the external factors which an organization should analyse are:

Customers

Competitors

Market trends

Suppliers

Partners

Social changes

New technology

Economic environment

Political and regulatory environment

4.5. SWOT Analysis Limitations

While useful for reducing a large quantity of situational factors into a more manageable

profile, the SWOT framework has a tendency to oversimplify the situation by classifying

the firm's environmental factors into categories in which they may not always fit. The

classification of some factors as strengths or weaknesses, or as opportunities or threats is

somewhat arbitrary. For example, a particular company culture can be either strength or a

weakness. A technological change can be a either a threat or an opportunity. Perhaps

what are more important than the superficial classification of these factors are the firm's

awareness of them and its development of a strategic plan to use them to its advantage.

.6.SWOT Analysis of Bajaj Finserv Limited

a)Strengths

The strengths of a business or organization are positive elements, something they do well

and is under their control. The strength of a company or the group and value to it, and can

be what gives it the edge in some areas over the competitors. The following will outline

main strength of Bajaj Finserv Limited

Highly experienced management

Product design and development capabilities

Extensive R & D focus

Widespread distribution network

High performance products across all categories

High export to domestic sales ratio

Great financial support network (For financing the automobile)

High economies of scale

High economies of scope

Hasn't employed the excess cash for long.

b) Weaknesses

Weaknesses of a company or organization are things that need to be improved to perform better, which are under their control. Weaknesses are also things that place behind competitors, or stop you being meet objectives. This section will present main weaknesses of Bajaj Finserv Lending

Still has to establish a brand

Not a global player in spite of huge volumes.

Not a globally recognizable brand

Opportunities:

Opportunities are the external changes, trends or needs that could enhance the business or organizations strategic position, or which could of a benefit to them. This section will outline opportunities that Bajaj Finserv Lending is facing

Double-digit growth in financial loan market.

Untapped market above other lending companies.

More maturity and movement towardsproduct introduction.

The growing and improvised schemes in the market.

Growing demand for 0% financial schemes especially in emerging markets.

It is also proposing to launchmore other financial schemes and more product introduction

Threats

The competition catches-up any new innovation in no time.

Threat of other financial lenders like future finance etc offering the same benefits Margins getting squeezed from both the directions (Price as well as Cost)