ORGANISATION STUDYAT S.M.KANNAPPA (P) LTD

By

Pujita.B.Gaddi

Reg No: 10SKCMA044

EMPOWERING MINDS

ACHARYA INSTITUTE OF MANAGEMENT AND SCIENCES 1ST CROSS, 1ST STAGE, PEENYA

Company Profile

Name of the company : S.M.Kannappa Automobiles (P) Ltd.

Year of establishment : 1968

Board Of Directors : 7 Directors

Registered Office : S.M.Kannappa Automobiles (P) Ltd.

#2,Dr.M.H.Mari Gowda Road(Near Lalbagh

Bangalore.

 Main operation : Bus body building under the brand name ‘Prakash’

No. Of employees : Total 700 employees.Staff-73 employees

Unions : No union

Vision & Mission

VISION : To be an innovative and excellent quality bus body building Company and to make best buses, which suits Indian road condition . and later to expand market all over South Asia .

MISSION: S M Kannappa abides by the policy of giving the customer what they want instead of giving the customer what is available and Quality inspections are strict which create end –user pride and delight.

Product Profile and Focus

Bus body building Luxury buses Deluxe/Non-deluxe/semi – deluxe Sleeper coaches Special purpose vehicles

Segmentation – Geographic (main focus – South India) Target – Transport Corporations, Tours and travels,

Educational Inst, Corporate, Individuals Positioning – Quality focused customized body building

facilities.

Process Flow Chart

Competitors and BCG matrix

Major competitorsVeera Vahana Udyog Pvt LtdKMS Coach Builders Pvt LtdAzad Coach Pvt LtdSuraj Coach Builders Pvt Ltd

Star

S M Kannanppa• Market growing at faster pace• Highest market share in the places of operation (55% *)

Problem child/?

Cash Cow Dog

* Company Sources

Organization Structure

Organizational Hierarchy

SWOT Analysis

Strengths• Strong brand name in the market and front runner advantage. • Well structure process flow•Updated technology•Cont. R&D for innovative designs.•Expert management team• Strong quality checking•Strong financial status

Weaknesses• Low labour productivity.• High absenteeism.• High over-head cost.•Customers do not collect vehicle on time .•Quality standardization is difficult due to contractual labourers.

Opportunities

• Increased road transport and infrastructure facilities.• Increased use of luxury and deluxe buses.• Increased travel and tourism opportunities.• Easy bank loan facilities. • Requirement for corporate and individual special purpose vehicles

Threats

• Increasing price of raw material• Increasing transportation cost• Trade policies• Emerging international players.• Increase in other modes of transportation (metro)

Findings

The organisational hirearcy ensures the optimum span of control.

The organisation structure explains smooth flow of communication.

Well-structured process flow, reducing the lead time.

Traning and development facilities for permanent employees.

Repeated orders from existing customers.

Technological integration and office automation, helps in proper

communication.

Absences of trade unions.

Customer feedback based improvement system.

Conclusion

Immense potential to grow and capture wider market in future.

Highly qualified and experienced management. Business experience of more than 50 years . Concern for Quality and Customer Satisfaction and so on

that will lead to success.

•Implementation of performance based pay.

•Structured performance appraisal system can be implemented.

•Sales process can be trained and improved to improve the

market share.

•Adaptation of focused selling techniques.

•Structure can be flexible.

Suggestions

My Learning

A structured workflow process can reduce the leadtime.

Quality checking points .

Significance of customer relations.

Special Task

“A Financial Analysis of S.M.Kannappa (P) Ltd using Ratio Analysis”.

Objectives1. To analyse the overall financial performance of the company.

2. To study the financial performance of the company .

Statement of the problem The aim of the study is to analyse the financial performance of

S.M.Kannappa (P) Ltd to have a clear understanding of S.M.Kannappa (P) Ltd performance in such an industry.

Research Methodology

TYPE OF STUDY:- Ratio Analysis

TOOLS OF DATA COLLECTION:- Secondary data that is available in annual reports of the company.

SAMPLE SIZE:- Financial data of 2007 to 2011

SOURCES OF DATA:- Annual reports and self study about the working of the departments

Findings & Recommendations

Findings: Material costs occupy a significant proportion of sales . Selling and distribution costs occupy a minor percentage i.e. about 1%

of sales. Low returns on Total Assets i.e. 5% . Retains major portion of its earnings i.e. about 98% and pays only a

small amount as dividends i.e. 2% to its equity shareholders.

Recommendations: Focus on improving its profit margins More efficient utilization of its long term funds and assets Focus its attention on expanding its market share