organizational study at indian broiler
TRANSCRIPT
AN INTERNSHIP STUDY REPORT TITLED
ORGANIZATIONAL STUDY
AT
“INDIAN BROILER”
CONTENTS
1
Sl No DESCRIPTION PAGE NO.
1
I.1
I.2
I.3
CHAPTER I
COMPANY PROFILE
INDUSTRY PROFILE
PRODUCT PROFILE
7
8
10
14
2
2.1
2.2
CHAPTER II
ORGANIZATIONAL STRUCTURE
TYPE OF STRUCTURE
30
32
33
3
3.1
3.2
3.3
3.4
3.5
3.6
3.7
CHAPTER III
PRODUCTION DEPARTMENT
IT AND NETWORKING DEPARTMENT
QUALITY CONTROL DEPARTMENT
HUMAN RESOURCE DEPARTMENT
MARKETING DEPARTMENT
FINANCE AND ACCOUNTING DEPARTMENT
PURCHASE AND STORES DEPARTMENT
34
35
37
39
41
47
52
54
4
4
CHAPTER IV
SWOT ANALYSIS
58
5
5.1
5.2
5.3
CHAPTER VI
FINDINGS & LIMITATIONS
RECOMMENDATION
CONCLUSION
53
54
55
57
2
6 BIBLIOGRAPHY 58
3
CHAPTER- I
COMPANY PROFILE
INTRODUCTION
Indian Broiler group pvt.ltd. Is one of the reputed poultry industry in
4
India situated in Rajnandgaon district, Chhattisgarh. The prime objective of the study is
to assess, how the theoretical aspects are made use in the various departments of IB
GROUP pvt.ltd and to study their organizational functions. The theoretical aspects that
we study can be observed how exactly they are put into practice in the real competitive
world. The study has been done with the assistance of live observation. This organization
study in INDIAN BROILER GROUP helped to obtain the practical knowledge about
production industry. The SWOT analysis has done by considering live observations in the
various departments of this organization. Then the study provides some genuine findings
with the help of SWOT analysis.
The purpose of the study is to know the practical implication & policies
of the company Offer suggestions based on the findings and finally derive a conclusion
from the observations.
The objectives of the study is to satisfy the requirements for the partial
fulfillment of the post graduate degree of Master of Business Administration as per the
syllabus of Bangalore University, To study the organizational profile, industrial profile,
vision, mission & strategies, To relate the classroom theories practically and analyze
them to have a view of problems faced by the organization and to help them by
suggestions, To study the SWOT analysis & obtain the findings of the organization,
finally provide the suggestions and conclusions.
The limitation of the study the report has been prepared with limited
information. Due to lack of time available to the researcher. The study is based on the
information supplied by the officials of IB Group pvt.ltd.. The researcher has prepared
the report depending only on the primary data as he has lack of knowledge.
The primary sources for the study are official records, interaction with
the employees, various documents of the company.
The secondary sources for the study are annual Reports, Brochures,
Magazines, previous journals
INDUSTRY PROFILE
5
India’s livestock population is among the highest in the world. The livestock sector
Contributes approximately 4% to gdp and 27% to agricultural GDP. In addition to
providing nutritional security to the poor, it offers employment to millions of
People in rural areas.
Based on industry sources, is estimated at around USD 3.1 billion (INR 125 billion).
In addition, the layer market is estimated at around USD 2.5 billion (INR 100 billion).
The poultry and layer industries together provide direct and indirect employment
to over three million people and have been one of the key contributors within the
livestock
sector. Between 1970 and 2006, the annual per capita availability of chicken meat rose
from
146 grams to 1.8 kilograms.
Despite being hampered by outbreaks of avian influenza the poultry industry is
Estimated to have grown at 11% per annum (1991-2006) and there is huge potential
For further growth. However, the industry require the right focus to sustain this
momentum.
Falling poultry prices through integration, rising incomes, a young and urbanising
Population and increasing domestic demand are conditions that are expected to see
The Indian poultry market grow at 12-15% per annum.
6
Industry faces key issues like shortage of corn, high logistical charges and threats of virus
outbreaks.
India’s participation in the world poultry trade to date has been negligible despite being
An internationally competitive producer of poultry meat with export potential.
To exploit this export to European and Japanese markets, investment is required in a
strong
Veterinary system and export driven processing plants.
India’s rapidly growing poultry industry also offers investment oppertunities for foreign
Players in activities such as breeding ,animal health, feed, equipment and processing,
foreign
investment in these activities is permitted but constrained by market uncertainity and
poor infrastructure
7
Poultry industry has been the key contributor
in livestock sector
India has one of the largest livestock populations in the world, contributing
Approximately 4% to the country’s GDP AND 27% to agricultural GDP.
It also provides nutritional security to the poor in addition to offering
Employment to millions of people in rural areas. The poultry industry has
Been one of the key contributors with in the livestock sector.
Poultry sector growth has
outpaced GDP growth
The poultry industry is estimated to have grown to have grown at 11% per annum
(1991-2006) and has outpaced the country’s GDP growth of 9%.
Despite being hampered in the past by outbreaks of Highly Pathogenic Avian
Influenza (HPAI), the sector holds huge potential for further growth.
However, the industry require the right kind of focus to sustain growth momentum.
8
India is the fourth largest producer of
Eggs and fifth largest in poultry
The poultry industry is estimated at USD 3.1 billion 9INR125 billion).
According to the ministry of agriculture, government of India production estimated
at around 2.3 million tonnes of poultry meat and 47 billion eggs.
India produces 2 billion
poultry birds on 200.000 farms.
India is the world’s fourth largest producer of eggs and fifth largest poultry producer.
9
1.3 ORGANIZATION PROFILE
10
Profile
Rajnandgaon, a small, little-known town in central India, with its typical small town lifestyle and agriculture as its economic backbone had precious little to offer an entrepreneur apart from the time-tested values of honesty and commitment. These very qualities became the raw material for two entrepreneurs of humble origins who had little else but dreams of creating something of lasting value, of world-class size and quality in their quaint small town.
Today, two decades later that dream is no longer just a dream. The IB GROUP is today a highly diversified, fully integrated enterprise, truly world class in scale, size, systems, quality and the value it creates. A result of those traditional values of honesty & commitment ingrained in its DNA backed by the vision and the tireless hard work put in by the two entrepreneur brothers Bahadur Ali and Sultan Ali to make their dream a reality.
Mr.SULTAN ALI
CHAIRMAN- IB GROUP
11
Mr. BAHADUR ALI
MANAGING DIRECTOR- IB GROUP
The Group Companies
INDIAN POULTRY
INDIAN BROILER FARM
INDIAN ORGANIC FERTILIZER INDUSTRY
INDIAN SOLVENT INDUSTRY
AZIZ POULTRY PVT.LTD.
AZIZ LABORATORY
AZIZ AGRICULTURE FARMS
ABIS POULTRY PVT.LTD.
ABIS EXPORTS(I) PVT.LTD.
ABIS DAIRY FARM (A UNIT OF ABIS HATCHERY PVT.LTD.)
12
HISTORY-
Company was started on 5th of July in the year 1985. It was started as a small poultry
farm. By two brothers Mr. Sultan Ali and Mr. Bahadur Ali with a very small capital
And with in span of two decades they had achieved an admirable position.
IB group had evolved as an emerging corporate house from an ordinary poultry
farm.
LOCATION
Company’s corporate office is in a modest township, Rajnandgaon (Chhattisgarh) on the Mumbai - Howrah rail lines, and is well connected to Delhi and Mumbai by air. The nearest airport is Raipur, barely 65 kms from Rajnandgaon.
Since the group is having a diversified profile of products they are having two production plants
400 sheds in around 16 poultry farms with an highly technologically oriented dairy farm
Apart from this company is operating through regional offices located in
Madhya Pradesh
Maharashtra and Orissa
13
OWNERSHIP PATTERN-
IB GROUP is an privately owned company.
Board of Directors
Mr. Sultan Ali
Mr. Bahadur Ali
Mr. Zeeshan Ali
Mr. Fahim Ali
CAPACITY
POULTRY FIRMS
Combine capacity of poultry business is around 3.725 million birds per annum
Capacity
(in accordance to various types of poultry)
Broiler Farms
Capacity
28,20,000 (2.82 Millions)
Layer Farms
Capacity 5,00,000 (0.5 Millions)
14
Chicks / Grower Farm
Capacity 1,65,000(0.165 Millions)
Cockrel Farms
Capacity 3,00,000 (0.3 Millions)
CAPACITY OF BREEDER PLANT
Current Breeder Capacity : 80,000 Breeders
CAPACITY OF PELLET FEED PLANT
400 METERIC TON/PER DAY
CAPACITY OF ORGANIC FERTILIZER PLANT
1OO METERIC TON/PER DAY
CAPACITY OF ABIS DAIRY
A fleet of around 2000 cows produces around 24,000 liters of milkper day.
15
CAPACITY OF SOLVENT PLANT
500 meteoric ton / day
QUALITY POLICIES
Company is having a certification under ISO 9001:2000CERTIFICATION NO. 01 100 058734
Corporate Social Responsibility
The owners of company are very much concerned about the responsibilities of company towards the society, Organic fertilizer plant is an example of their effort
towards environmental issues, realizing the fact the synthetic fertilizers pose a serious threat to human health as well as agricultural farms, water bodies and animals it decided to manufacture international quality organic fertilizers specifically tailored to Indian needs.
Apart from all these they are encouraging farmers for starting a new poultry farm by
providing them with livestock as well as tools and techniques for starting a new poultry farm
and later on helping them for selling their livestock and in return they are paying certain percentage of their income to organization as royalty
16
THE MISSION
We will offer nutritional and allied products of the highest quality harnessing state-of-art-technology, skills and knowledge. We shall constantly push the frontiers of knowledge with our research to continuously enhance value to our customers.
Company’
THE VISION
To contribute in however humble a way to the gigantic task of producing nutrition for the nation in an environmentally friendly way, adhering to the highest standards of ethics and quality, thereby creating lasting value for all stakeholders.
17
FINANCIAL OVERVIEW
(POULTRY DIVISON OF RAJNANDGAON DISTRICT)
AS PER BALANCE SHEET OF YEAR 2008-2009
CAPITAL EMPLOYED – 160316592.08 (INR)
LOAN – 316280367.45 (INR)
ASSETS – 458274475.95 (INR)
CURRENT ASSETS – 199399029.85 (INR)
LIABILITIES – 19452769.52 (INR)
MISCLLANEOUS ASSET- 1782330.69 (INR)
UNSECURED LOAN – 3612227.59 (INR)
18
IB GROUP’S annual turn over including all companies is reaching maore than 500 crores
PRODUCT PROFILE
HATCHERY AND BREEDER
A state-of-the-art hatchery is the hub of the massive broiler chicken business of the group. The hatchery has extremely stringent hygiene and quality standards and is equipped with modern machines. The hatchery has a large breeder farm which is the IB Group’s backward integration step of producing commercial flock for its broiler farms. The breeder are reared in deep litter with slatted floor in environment control sheds with nipple drinking equipped with automated feeding & silos
19
BROILER
This is the pride and the flagship activity of the group. It today has a massive combined capacity of 3.725 million birds per annum and constantly increasing.
But more important than the numbers is the tremendous focus on quality and the massive investments in infrastructure, technology, skills and systems management to achieve this. The group can proudly boast of having absolutely world-class, cutting edge infrastructure in place today. The process of innovation, improvement and further increase in capacity is an ongoing one.
20
ORGANIC FERTILIZER
Environmental issues have always been very close to the hearts of the Promoters of the
group.
It has therefore set up a highly sophisticated, latest generation Organic Fertilizer
manufacturing
Facility.
Realizing the fact the synthetic fertilizers pose a serious threat to human health as well as
agricultural farms, water bodies and animals it decided to manufacture international
quality organic pelleted fertilizers specifically tailored to Indian needs.
The company has undertaken a massive marketing programme to promote its organic
fertilizer brand ‘ ECOFIT '.
21
PELLET FEED
Understanding and appreciating the need for scientifically formulated balanced nutrition
of its livestock the group went in for backward integration by setting up one of the most
sophisticated and advanced, completely computer controlled palette feed manufacturing
plant. Today with a capacity of 400 MT/day the plant is equipped with Extruder, Expeller,
Pellet Mill, Bulk Storage Silos, Dryers, Finished Product Silos & Bulk Tankers to not
only meet the group's internal demands but also command a leadership position in the
market with an extensive distribution network.
The group's fanatical emphasis on quality and self dependence has led to a further thrust
on backward integration for which it promotes the farmers in the region to grow maize,
the group itself is setting up a huge, modern Soya solvent extraction plant to cater to the
needs of its feed plant. The company has undertaken a massive marketing programme to
promote its brand ‘ ABIS PELLET FEED '.
22
THE SOLVENT EXTRACTION & REFINING PLANT
Understanding and appreciating the need for balanced nutrition of its livestock the group went in for backward integration by setting up one of the most hi-tech and advanced feed plants with a 650 MT per day, capacity. The plant is equipped with Dryers, bulk Storage, Silos, Pellet Mill, Extruder, Expeller, Pellet Finished Product Silos & Bulk Tankers. This plant not only meets the group's captive demand but also markets its products through its extensive distribution network.
To ensure consistent supply of quality raw-material the group has taken another backward integration step by step promoting farmers to grow maize in the region and has also set-up a large Soya Solvent extraction plant. Each raw material as well as the finished product undergoes stringent tests at the plants well-equipped laboratory
23
THE DAIRY FARM
In line with its vision of offering the highest quality of nutritional products the company diversified into Dairy Farming. The company has over 2000 high yielding crossbreed cows and murra buffaloes and has developed its own pedigree herd through its own breeding plant. The group are markets of its own ' ABIS' packaged and branded milk through its highly penetrative distribution network. An advanced laboratory at the farm ensures quality of milk feed, water and fodder . A team of highly qualified and experienced Veterinary Surgeons at the farm also monitor the health of the cattle as well as ensure the breeding programme follows the planned course.
24
CHAPTER-II
ORGANIZATIONAL STRUCTURE
2.1 ORGANIZATIONAL STRUCTURE
Organizational structure is the way in which a firm has arranged its lines of authority and
communication, and allocated duties and responsibilities; the structure may be of a divisional,
geographic or functional kind or a combination of these. The structure of an organization will
determine the manner in which it operates and it’s performance. Structure allows the
responsibilities for different functions and processes to be clearly allocated to different
25
General Manager
departments and employees
The inappropriate organization structure will hinder the success of the business.
Organizational structures should aim to maximize the efficiency and success of the Organization.
An effective organizational structure will facilitate working relationships between various
sections of the organization. It will retain order and command whilst promoting flexibility and
creativity.
Internal factors such as size, product and skills of the workforce influence the
organizational structure. As a business expands the chain of command will lengthen and the
spans of control will widen. The higher the level of skill each employee has the more the
business will make use of the matrix structure to maximize these skills across the organization.
ORGANIZATIONAL STRUCTURE OF IB GROUP
26
Manager Production
Assistant Manager
Manager Purchase and stores
Store keepers
Manager Finance
Assistant Manager
Manager Quality control
Assistant Manager
Manager HR
Assistant Manager
Manager Marketing and Sales
Assistant Manager
Manager IT & Networking
Assistant Manager
27
2.2 TYPE OF STRUCTURE
The organization structure of Indian Broiler Group is Hierarchical in nature
Hierarchical Organisation
In a hierarchical organisation employees are ranked at various levels within the
organisation, each level is one above the other. At each stage in the chain, one person has
a number of workers directly under them, within their span of control. A tall hierarchical
organisation has many levels and a flat hierarchical organisation will only have a few.
A traditional hierarchical structure clearly defines each employee’s role within the
organisation and defines the nature of their relationship with other employees.
Hierarchical organisations are often tall with narrow spans of control, which gets wider as
we move down the structure. They are often centralised with the most important
decisions being taken by senior management.
Advantages of Hierarchical Organisations
Authority and responsibility and clearly defined
Clearly defined promotion path.
There are specialists managers and the hierarchical environment encourages the effective
use of specialist manager’s organisation.
Employees very loyal to their department within the
Disadvantages of Hierarchical Organisations
The organisation can be bureaucratic and respond slowly to changing customer needs and
the market within which the organisation operates.
Communication across various sections can be poor especially horizontal
communication.
28
Departments can make decisions which benefit them rather than the business as a whole
especially if there is Inter-departmental rivalry.
CHAPTER-III
FUNCTIONING
OF
DIFFERENT DEPARTMENTS
29
General Manager
Manager (Production)
Assistant Manager
Technical superitendent
Plant Operator
3.1 PRODUCTION DEPARTMENT
Production is the process by which raw materials and other inputs like men,
machine, and money material are converted into specific / desired output.
Production department is the nerve center of the entire organization.
STRUCTURE OF PRODUCTION DEPARTMENT
30
Plant Attender
3.1.2 PRODUCTION PROCESS
PRODUCTION DEPARTMENT deals with rearing and production of various products
of Poultry like Broiler,layerer,cockrel and eggs
Working of production department involves production planning which is
Based on a monthly basis as per demand
Production department monitors the birds population under various segments of poultry
they can control the number of birds and eggs through the process of artificial breeding
and other scientific measures as per the demand prevails in market.
It is duty of production department to maintain all the requirements for producing and
maintaining the livestock for this they are taking help of Quality control department
Which includes workforce of 30 vets for proper vaccination and regular check up of
livestock
Apart from that production departmaent deals with fulfilment of all needs of livestock
Like food and proper shelter facilities
31
General Manager
Assistant Manager
Project Manager
Trainer
Trainee
Production department is also liable for maintaining a proper environment which must be
suitable for Livestock, it includes maintaining favourable temperature in each shed
along with proper food and water supply.
3.2 IT AND NETWORKING DEPARTMENT
Head of IT AND SAP DEPARTMENT is Mr.BHARAT BHUSHAN SHRIVASTAV
STRUCTURE OF IT AND NETWORKING DEPARTMENT
32
3.2.2 WORKING
IT AND NETWORKING DEPARTMENT is the formed department with in the organisation it deals with maintaining a database for all the relevant information of the organisation .
It creates seprate database for all functioning department which contains all information which is requiered for working of respective departments. It includes
IT AND NETWORKING DEPARTMENT uses SAP for working
They maintains an intranet within the organisation which connects different department
With each other.
They maintain a data base of every thing related to day to day working of organization it includes information like employee detail, working, pending work, information regarding new projects and various working details of each department
Other function of this department is sorting out server related problem and hardware problem, for this company is having work force of IT professionals and hardware engineers
33
General Manager
Manager Quality control
Assistant Manager
Quality control Officer
Chemist/ Micro Biologist
Lab Technician
Lab Assistant
3.3 QUALITY CONTROL DEPARTMENT
Structure of quality control department
34
3.3.1 WORKING
If there is one single factor that has been responsible for the Group's meteoric rise and its
blazing performance, it has been the complete, unwavering focus on quality.
Every single input raw material is tested against standard parameters, in-process testing and finished
product testing are a part of the standard procedure.
Apart form existing laboratories at every facility, the company is investing heavily in one of the most advanced central group laboratory, which will house the most cutting edge equipment available world wide for testing, research and development. It is destined to be one of the most sophisticated facilities of its kind in the entire country.Quality has been the driving force for the company and shall be the driver for its future growth too.
The Group philosophy of related diversification, integration and quality in everything it does has brought it on the threshold of becoming a global force to reckon with in its chosen business segments.
Quality control department of the company comprises of 20 vetenary doctors working under
Leadership of Dr. Ravindra jaiswal
Quality control department is constantly working for improving and maintaining
Quality of the livestock and eggs. It involves regular vaccination and checkup
For checking any deviations in health of livestock and for maintaining the best
Possible quality of poultry products.
TECHNIQUES USED FOR QUALITY CONTROL
LAMINAR FLOW
ELISA READER
NIR ANALYZER
35
3.4 HUMAN RESOURCE DEPARTMENT
IB GROUP is having two types of employees direct and indirect . There are 2890 employees
working in IB GROUP .Temporary employees are working for 6 months. They are recruited from
employment exchanges. Except PF there is no other fringe benefit for temporary employees. There
are different types of fringe benefit for permanent employees. All the service matters of the
organization are under the control of this department .HR Department is working under leadership of
Mr.Sandeep.R
STRUCTURE OF HR DEPARTMENT
36
General Manager
Manager (HR)
Assistant Manager
Junior Superintendent
Senior Assistant
Junior Assistant
Staff
Working period is from 10 am to 5 pm. Working days are from Monday to Saturday. Production
department, Quality control department work for 24 hrs So there are three shifts per day. These shifts
are from 6.30 am to 2.30 pm, 2.30 pm to 10.30 pm, and 10.30 pm to 6.30 am.
The important functions performed by the department are
Recruitment
Induction and Orientation
Training
Performance Appraisal
Promotion
Welfare Measures
Recruitment
The company has both permanent and temporary employees. Permanent
recruitment is done by the head office. Temporary recruitment is done through
employment exchanges. The duration of temporary employee is 180 days. For
permanent recruitment they first give notification in minimum three newspapers.
From the approved applications, candidates are selected for written tests. Those who
pass the written test are called for interview.
37
Induction and Orientation
Induction is given to all fresh employees. The fresh employees have to visit all the
departments of the industry and have to study each and every functions of the
department in detail. Each department people also give induction and orientation to
the fresh employees.
Training
Training is given to the permanent employees, both off the job and on the job
training is given. HR department is in charge of providing training to the permanent
employee
38
Performance Appraisal
The company has the practice of appraising the performance of employees every
year. This is mainly for deciding on matters related to promotion. Performance is
rated on the basis of the following
1 Knowledge of work.
2 Attitude of work.
3 Decision making ability.
4 Initiative.
5 Ability to inspire and motivate.
6 Communication skills.
7 Team work.
8 Relations with public.
9 Supervisory ability.
10 Ability to execute orders.
Based on criteria, the performance of the employee is graded as:
A- Outstanding- 90 to 100 marks.
B- Very good- 70 to 90 marks.
C- Good- 60 to 70 marks.
D- Average- 50 to 60 marks.
E- Below average- below 50 marks.
Those who secure less than 60 marks are not considered for promotion.
39
Promotion
Promotions are of two types i.e. Seniority based promotion and performance
based promotion. Middle level employees are promoted on the basis of their seniority
and top level employees are promoted on the basis of performance.
Welfare Measures
IB GROUP has a welfare society. Most of the employees are the members of the
welfare society. The enrolment in the society is kept optional. There is a separate
committee, chairman and secretary for the welfare society. The members of the
welfare society have to contribute an amount of Rs.50 every month as a welfare fund.
From this fund cash award is given to children of employees who scored high mark in
public examinations. Moreover certain amount from the fund is given to the marriage
of the concerned member, marriage of the member’s children etc.
Certain percentage of the profit from the company is given as ex-gratia to all the
employees except to those employees who availed bonus. Employee should present
240 days in a year to get full ex-gratia.
Housing subsidy is also given to the employees. Loan up to 2 lakes and 1%
subsidy is given to all the employees. Employee state Insurance (ESI) is given to
40
employees whose salary is less than 7500. Medical allowance of Rs.100 is given to
those employees who do not prefer ESI. Annually employee can take leave up to 33
days out of which 12 days are regarded as casual leave. If an employee is physically
present for 246 days he can enter in to Departmental Promotional Committee (DPC).
For this minimum of 5 years service is essential.
Canteen
Canteen facility is there inside the Dairy. Canteen function is on contract basis.
For the canteen Milk, cooking gas, curd is given free from the organization. For a tea
they have to pay 0.50 paisa. For a meal they charge Rs.5.50. canteen committee
consist of 5 members, Personnel manager, one representative from union and
remaining three are from other departments. There is full functioning of canteen in
two working shifts of the Dairy i.e. from 6.30 am to 2.30 pm, 2.30 pm to 10.30 pm
and 10.30 pm to 6.30 am.
41
3.5 MARKETING AND SALES DEPARTMENT
The overall marketing of products are undertaken by the Marketing Department.. The
marketing department issues the order list to production department and production
department will dispatch products through various vehicles so that timely supply is ensured at
the desired points of supply.
The Indian Broiler Group takes pride in the fact that it is the largest fully integrated
poultry group extending its value chain right upto the point of customer interface by
forward integrating the marketing and retailing of its poultry.
The group operates over 100 chicken retail outlets, under most hygienic & ethical
conditions. It caters to all kinds of demands viz: wholesale, retail, hotel & home
delivery etc. Its retail network is widely spread over central India and is growing at fast
clip. The group also operates a transport
division with a fleet of over 100 caged trucks, which transport its ready birds to the
market
42
General Manager
Manager (Marketing)
Assistant Manager
Marketing Officer
Assistant Marketing Officer
Marketing Organizers
Marketing Assistants
HEAD OF DEPARTMENT-Mr.ABDUL RAZZAQ
STRUCTURE OF MARKETING DEPARTMENT
43
Growth of an Organization
Every day organisation is providing live’stock to their 100 outlets
Marketing Mix of the Organization
1 Price
There are various factors affecting the price of the product. Market share
is affecting the price. IB Group is having 70% of market share. Sales promotion
activities are also affecting the price. When the competitors decrease their product
prices, this will affect the IB Group products so competitor’s price is also an
important factor affecting the price of IB Group product..
2 Product
When IB Group launches a new product they try to conduct survey in
market. IB Group conducts study to know the requirements of the customer.
3 Promotion
IB GROUP is using different promotion tools such as house to house
survey, collect the customer opinion etc. Dealers collect customer’s opinion
through direct personal visits. IB GROUP provides incentives to dealers for
collecting this feedback.
44
4 Place
Survey is conducted for identifying target market where the product has to
be launched. Thus they provide more distribution.
Quality Policy
Continual improvement of the effectiveness of the system, IB GROUP provides
consistent quality and services to its customer. and it is an ISO certified firm
Functions
1 Determination and maintenance of distribution channel
IB GROUP is distributing it’s poultry products through retail chains. Apart from
this abis export divison of group is exporting their pallete feed by name of abis pallete
feed to overseas
45
2 Customer profile
There are 1800 agents for selling poultry products and milk apart from that , 17
Institutions 85 Hotels, 100 direct outlets, Police and Paramilitary and so on. Every day
3600 kilometer distance is covered for product distribution.
3 Customer cell services
There is also a customer cell for Rajnandgaon. It is full dedicated to provide
services to the customers. Customer can register complaints to the direct outlets
46
General Manager
Manager (Finance)
Assistant Manager
Junior Superintendent
Senior Assistant
Junior Assistant
3.6 FINANCE AND ACCOUNTS
DEPARTMENT
All the policies and rules are
formed by Board of Directors. The role of Finance department is to distribute funds to
other department as per the budget. All working units of IB GROUP receives funds from
head office and remits all the receipts to head office. Each Farm prepares the budget and
sends to head office then the head office sanctions finances required for the Farm. The
income from sale of poultry goes to Managing Director’s account in HDFC bank. Every
fortnight the finance manager prepares requisition to Head office for estimation of fund
requirement, which is called fortnight fund requisition
HEAD OF THE DEPARTMENT – Mr MANOJ AHUJA.
3.6.1 STRUCTURE OF FINANCE AND ACCOUNTS DEPARTMENT
Figure:3.6.1
47
3.6. WORKING
The accounting system of Company is double entry system. All the transactions are
computerized. A uniform accounting system is very well designed.they are using SAP
for accounting purpose.
The Finance Department is computerized so auditing is an easy task. There are
three types of audit, internal audit, statutory audit and corporate audit .Internal audit done
on daily basis. Government does the statutory audit and corporate audit is done every
year.
Budgets are prepared every fortnight and requisitions for funds are sent every
fortnight called fortnight fund requisition. Budget is prepared based on the policies set by
Board of Directors. All the payments and allocations of funds to other departments are
strictly based on the budget.
48
General Manager
Assistant Manager Purchase and store
Store keepers
Store Assistants
3.7 PURCHASE AND STORE DEPARTMENT
Purchase department ensures the timely availability of all the materials which is
used for production process and also they supply engineering items and stationary items.
Purchase department is raw material for making pallet feed . This is a daily process. is
also provided by purchase department. Medicines and vaccines are also stored in
purchase and store department.
HEAD OF DEPARTMENT- Mr KULDEEP DUBEY
3.7.1 STRUCTURE OF PURCHASE AND STORE DEPARTMENT
Figure:3.7.1
49
3.7.2 WORKING
Purchase and store department maintains lists of approved suppliers for regularly
purchased materials and evaluate their performance with regard to quality and delivery
schedule. Most of the materials are on letter of credit basis. Raw material requierd is
purchased on advance payment basis. The purchased items are segregated in three
different forms.
1 Stock items
2 Non stock items
3 Capital items
1 Stock items
Purchase order is initiated when the stock reach reorder level and also after
assessing, the actual consumption pattern. Purchase requisition is given by storekeeper
and the purchase order is prepared in the prescribed by the head of purchase department.
Purchase order contains the details of quantity, specialties or standards, price, delivery
time etc
Example of stock items are maize, soyabean and rice bran,consumable materials etc.
50
2 Non stock items
Purchase procedure is initiated after the receipt of purchase sanction in the
prescribed format duly approved by the section head. Non stock items are purchased from
local market. Purchase requisition is given by storekeeper and the purchase order is
prepared in the prescribed for on by the head of purchase department. Purchase order
contains the details of quantity, specialties or standards, price, delivery time etc.
Examples of stock items are Stationary items.
3 Capital items
The purchase procedure is initiated by store keeper and it will be approved by the
assistant manager. Then the quotations are invited from the manufactures or
suppliers. The quotation received is tabulated and sent to head office for the sanction.
After getting the sanction the purchase order will be issued. Purchase order contains the
details of quantity, specialties or standards, price etc.
Examples of stock items are Machinery, Plants etc
There are different types of books and Records keeping in purchase department
they are
51
1. Asset Register
It contain the details of order taken from the head office
2. Purchase order register
Details of all the purchases of spares and raw materials
3. Furniture register
Furniture details of each and every department
52
CHAPTER-IV
SWOT ANALYSIS
53
SWOT Analysis, is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. The technique is credited to Albert Humphrey, who led a research project at Stanford University in the 1960s and 1970s using data from Fortune 500 companies
Internal factors – The strengths and weaknesses internal to the organization.
External factors – The opportunities and threats presented by the external
environment.
Strengths: attributes of the organization that are helpful to achieving he objective.
Weaknesses: attributes of the organization that are harmful to achieving the
objective.
Opportunities: external conditions that are helpful to achieving the objective.
Threats: external conditions that are harmful to achieving the objective
54
4.1 Strengths
IB GROUP is a very popular and well established brand in Chhattisgarh.
It is the largest poultry firm and among one of the largest Agro based
products producing company in Chhattisgarh that commands 70 % market
share in Rajnandgaon District and 40% in other parts of Chhattisgarh
Well experienced and highly committed employees.
Well established collection and distribution network.
Known for superior quality products and also ISO certified company.
Automated weighing and quality testing system.
Wide product range.
Huge capital to face competition.
Experience of more than two decades in poultry
.
4.2 Weaknesses
Inadequate promotional activities
Do not provide credit facility to buyers.
Lack of proper co-ordination between Purchase department and Production
department which in turn delaying delivery of milk film.
55
Highly centralized decision making.
High price compared to competitors.
4.3 Opportunities
Increasing demand for poultry products and milk products
High support of Government. Government provides various activities for
enhancing production capacity of poultry such as farmer’s awareness
programs, loan for buying livestock
There is tremendous opportunities for packaged poultry products
Only few companies are there into organised poultry buisness in central India.
Threats
Competition from unorganized sector and brand products.
Fluctuations in rate of maize,soyabean and rice can affect
cost factor of pellet feed.
Stiff competition.
Threat of Avian flu (Bird flu)
1.
56
CHAPTER-VI
FINDINGS, SUGGESTION AND
CONCLUSION
57
6.1) FINDINGS
As per the analysis of data obtained through questionnaire and SWOT analysis
of Indian Broiler, the following findings are made.
Most of the customers are satisfied with the poultry product of IB Group. But they
were not satisfied with the quality of by-product
All consumers do not having easy accessibility to IB products.
Few customers are not satisfied with the price of IB products.
Sales promotional activities are not adequate.
Cost is a little high when compared to the other competitors
Some of the agents are not satisfied with the facilities. They want more
commission with the same incentives.
IB Group is a very popular and well established brand in Chhatisgarh.
Well established collection and distribution network.
Indian Broiler has wide product range.
They have high support of co-operative federation.
They are having huge turn over
Lack of proper co-ordination between Purchase department and Production
department which in turn delays delivery of product.
They have highly centralized decision making.
IB products face stiff competition from unorganized sector
There is tremendous opportunities for company in packaged poultry products
As there are only few companies in organised poultry business.
1.
58
1.
6.2) SUGGESTIONS
Indian Broiler is a very popular and well established brand in Chhatisgarh.
It is the largest poultry firm in Chhattisgarh that commands 70% market share in
Rajnandgaon District and 60% in other parts of Chhattisgarh. Known for superior quality
products and also ISO certified company.
Effective promotional activities are helpful to build a strong brand image. Any
brand building in the minds of customer is a long term process. The study is conducted
on the “opinion of customers towards IB products”. The study also concentrated on the
aspects of sales and distribution of IB products and customer satisfaction towards IB
products. As per the analysis of data, the following suggestions are made. Advertising
through visual media helps to capture more customer attention. Inadequate promotional
activities will help competitors to penetrate into the market. Hence, Indian Broiler has to
concentrate more on promotional activities to have strong brand image and further
improve their market share.
Indian Broiler has wide product range but do not have separate marketing
department. Setting up an additional marketing department will help to promote sales and
especially the sales of byproduct.
Rural market segments can be explored by setting up more retail outlets in interior
parts of the state.
Company must give more emphasis on processed and packaged chicken segment
for this purpose they had to give attention towards packaging, packaging
of chicken and other poultry products must be done in such a manner so that
it will become more approachable towards customer, all these must be backed
by an intensive advertisment campaign.
59
6.3) CONCLUSION
INDIAN BROILER GROUP, established in 1985, plays a major role in
channelising poultry products from rural areas to urban areas, to maximize the returns
to producers and to provide quality poultry and agro based products to customers.
It strives to ensure farmers prosperity through customer satisfaction. But off late
IB Group is facing severe competition in the market. Inadequate sales promotional
activities are causing reduction in the market share of Indian Broiler. Even then IB
Group enjoys 70% of market share as it maintains the quality of products. With
superior promotional activities and excellent quality of products IB would definitely
have a bright future and will be a market leader in the poultry products
60
7. BIBLIOGRAPHY
Below you’l Find Host of Additional Resources That you should
Find Useful In The Cource of Your study Research:
By Books :
Marketing management : S.a. Sherlekar, Philip kotler,
Human resource mgt :P.K. Tiwari
JOURNALS : Company Annual report
Webside : www.google.com,www.wikipedia.com
61