amul
TRANSCRIPT
PROJECT REPORT ON
AMUL
SUBMITTED TO- SUBMITTED BY-
MRS. RUCHIKA JESWAL GROUP-1
AMUL INTRODUCTION
Five decades ago, the `Iron Man of India' Shri
Vallabhbhai Patel called for the formation of milk co-
operatives to carry on the milk business. Inspired by the
call, the suggestion was spontaneously taken up,
adopted and implemented by late Shri Tribhuvandas K
Patel and Dr V Kurien - the `Father of the White
Revolution'. Together, they nurtured the concept of co-
operatives and as a sequel to their efforts, what we
behold today is an organization of international repute.
The daily milk production globally has touched 1650
million litres. Owing to White Revolution, India is placed
at the first position in the world, in terms of milk
production.
Gujarat Cooperative Milk Marketing Federation
(GCMMF) is India's largest food products marketing organization. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money.
MISSION:
GCMMF endeavor is to satisfy the taste and
nutrition requirements of the customers of the
world through excellence in marketing by their
committed team. Through cooperative marketing,
they are committed to offer quality products that
provide best value for money.
Their mission is expansion of distribution network,
creative marketing, consumer education and
product innovation.
VISION 2020:
In the last year’s report, the chairman of Amul, Dr.
V.Kurien, had shared their perspective plan for the
year 2020 for the member unions envisaging a
capital investment of Rs. 2600 crores (Rs. 26
billion) and a projected group sales turnover of Rs.
27000 crores (Rs. 270 billion). Their Mehsana Union
has expanded capacity to 9.61 lakh litres per day
at its dairy at Manesar near Delhi. Banaskantha
Union too has embarked on installing new powder
plant and cattle-feed plant which shall be
commissioned soon. New cattle-feed plants are
being put up by Mehsana and Valsad Unions as
well.
McKINSEY’S 7’S FRAMEWORK
The 7’s model is a tool for managerial analysis an action,
was developed by a team of professors from Haward and
Stamford Busines School and consultants from McKinsey
Company.
The 7S’s is a framework for analyzing organizations and
their effectiveness. It looks at seven key elements that
makes the organization successful or not. They are as
follows:
1. STRATEGY
2. STRUCTURE
3. SYSTEMS
4. STYLE
5. SKILLS
6. STAFF
7. SHARED VALUES
STRATEGYStrategy can be defined as the root that an
organization has choosen for its future growth.
Similarly amul follows a systematic and well defined
pattern of strategy, which can be categorized as
Minimum expenditure on advertisement
Focus on delighting customers
Expanding its distribution network for maximum
reach of customers
Minimize its expenditure and pay only 0.5% of its
turnover on salaries against other 7% FMCG
Companies
STRUCTURE
Structure refers to the framework in which the
activities of the organization and its members are co-
ordinated.
Amul which has a 3 tier organizational structure
VILLAGE SOCIETY
DISTRICT LEVEL DARIES UNION
STATE LEVEL FEDERATION
This kind of co-operative structure came to be known
as the “ANAND PATTERN” co-operative system.
Each tier is economically independent.
DISTRICT LEVEL UNION is an affiliate of all the village
dairy co-operative in that particular district. There
are 13 district co-operative milk products union.
VILLAGE SOCIETY comprises of all the persons
residing in the village who subscribes to the shares
of dairy co-operative. There are 13,328 village
socities.
STATE LEVEL- there is only 1 state level apex body of
AMUL i.e. GCMMF (Gujarat co-operative milk
marketing federation)
SYSTEMS
Every organization has some systems or internal
processes to support and implement the strategy and run
day to day affairs. These processes are normally strictly
followed and are designed to achieve maximum
effectiveness.
Amul follows a three tier system at various levels which
are:
VILLAGE SOCIETY
DISTRICT LEVEL DARIES UNION
STATE LEVEL FEDERATION
STYLE
Style refers to the cultural style of the organization and
how key managers behave in achieving organizational
goals.
Amul which has very effective as well as efficient
management system and motivated employees which
help the organization to achieve its goals and objectives.
“ANAND PATTERN” is the management style of Amul. It
has a style of minimizing its expenditure and pay only
0.5% of its turnover on salaries against other 7% FMCG
Companies.
SKILLS
Skills can be defined as the distinctive capabilities of
personnel or the organization as a whole.
Amul,
- Involves people all over the country
- Less than 1% expend on advertisement.
- Distribution channel is vast and strong
300 stock keeping units
46 sales offices
3,000 distributors
5,00,000 outlets
- Provides Value for money products
- Low price with quality products
STAFFOrganizations are made up of humans and it’s the
people who make the real difference to the success
of the organization in the increasingly knowledge
based society. Staff refers to the organization human
resources. Staff refers to how people are developed ,
trained, socialized, integrated, motivated and how
their careers are managed.
Amul,
Members-13 disrict cooperative milk products
Number of producer members -2.79 million
Number of village socities-13,328
Total milk handling capacity-11.22 million litre per
day
Sales-15 million$
SHARED VALUES
Shared values can be described as what the organization
stand for and what it believes in (central believes and
attitudes). This may be to make money or to achieve
excellence in a particular field. These values and common
goals keep the employees working towards a common
destination as a coherent team and are important to keep
the team spirit alive.
Protecting the interest of dairy farmers.
Providing value for money products .
(aims to provide remunerative returns to the farmers and
also serves the interest of the consumer by providing
quality products which are good value for money.)