MBA Internship Report
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  • 1. Organisation Study Report on Star PVC pipes & fittings Internship 2011 CONTENTS CHAPTER CONTENTS PAGE NO EXECUTIVE SUMMARY 2 Chapter I INTRODUCTION 3 1.1 Industry Profile 4 1.2 Company Profile 5 Chapter II STRUCTURE OF THE ORGANISATION 11 2.1 Organizational Structure 12 2.2 Organizational Chart 12 2.3 Organizational Outlook 13 2.4 Duties and Responsibilities of Dept. Heads 13 Chapter III FUNCTIONAL DEPARTMENTS 16 3.1 Finance Department 17 3.2 Accounts Department 18 3.3 Marketing Department 18 3.4 Human Resource Department 26 3.5 Production Department 27 3.6 Purchase Department 29 3.7 Systems Department 31 Chapter IV PORTERS FIVE FORCES MODEL 32 Chapter V SWOT ANALYSIS 40 Chapter VI FINDINGS AND SUGGESTIONS 43 Chapter VII CONCLUSION 45 Chapter VIII BIBILIOGRAPHY 47 Ramaiah Institute of Management Studies1SBS Swiss Business School
  • 2. Organisation Study Report on Star PVC pipes & fittings Internship 2011 EXECUTIVE SUMMARY The organizational study was conducted at STAR Plastics, Thrissur, Kerala. Theobjective of the study is  To study the organizational structure.  To study about the structure and functioning of various departments.  To study how the management control various departments for the attainment of the organizational objectives. The organization is into PVC pipes and fittings manufacturing. PVC is anorganochlorine, which was first patterned in 1913 by Fritz Klatte. However, its developmentfor hindered by pure PVC‟s chemical instability and its low workability. During the 1930‟s,German experiments with various stabilizers and softeners lead to the first useable forms ofPVC. By the early 1950‟s PVC was second only to polythene, as the most important syntheticproduct in Germany. It is now the single largest use for chlorine today, using about 1/3 of allglobal production. About 40 million tons of chlorine is produced by the chemical industryevery year. PVC development was part of the huge expansion of the chlorine industry afterthe Second World War. PVC, Dichloro Diphenyl Trichloroethane (DDT) and ChloroFluoroCarbons (CFC‟s) are all products of post war boom in the chlorine industry. Currentlythere are over 11,000 oregano chlorines now in commercial use. Organo chlorines are usefulto industry because they tend to be very stable and the resist natural breakdown process. Star Plastics have seven functional departments and it‟s the leader in PVC pipes &Fittings in south India. Star Plastics is the first PVC pipe fittings manufacturer in south Indiato receive ISO 9002 certification. While globalization and economic slowdown in the worldmarkets threw up new challenges the STAR group is busy chalking out plans to translatethese challenges in to opportunity. The company is going to make a centralization system ofthe software network that the progress of work at any levels, at any units, at any centers canbe viewed from the corporate office itself. Each and every aspect of the business can bechecked from the corporate office.At present company is able to later about 10% of themarket requirements. In order to later the complete needs the company is planning to increasethe production level to maximum extent possible. The company is planning to increase thepresent product level of Dubai units. The research and development team of STAR group isengrossed in developing new product for the international markets. Ramaiah Institute of Management Studies2SBS Swiss Business School
  • 3. Organisation Study Report on Star PVC pipes & fittings Internship 2011 CHAPTER IINTRODUCTIO N Ramaiah Institute of Management Studies3SBS Swiss Business School
  • 4. Organisation Study Report on Star PVC pipes & fittings Internship 20111.1Industry Profile Plastics, in the modern meaning of the word, are synthetic materials that arecapable of being formed into usable products by heating, milling, molding andsimilar processes. The term is derived from the Greek plastic, to form in simplestterms; plastics can be described as resins in their molded form. The wonders of plastics cut across all sectors of society. It is a material ofchoice due to its versatility, its physical strength, its economic viability; its easyprocess ability and also its attractiveness and durability of all weather condit ions.With the globalization of Indian economy and television entering into homes andtiniest villages and communications demand for the materials for suitable functionaluse more economic packing, durable all weather products has meant increasingdemand for plastics. Packing of cement bags, the end user is demanding plastics instead ofconventional jute, because it prevent transits loses and wastages. The hilly regionsof East India or drought prone districts of Rajasthan, Gujarat, and Tamil Nadudemand auto molded tanks in thousands each day. The agriculturists of HimachalPradesh insist on plastic pipes for irrigation to their farms, the floriculturists ofKarnataka and Maharashtra cannot thrive without ultraviolet stabilized polythenewide width films for huge tunnels and green polymers consumption and import. The Plastic industry in India has made significant achievements ever since itmade a modest but promising start by commencing production of polystyrene in1957. The potential market has motivated Indian entrepreneurs to acquire technicalexpertise. Achieve high quality standards and build capacities in various facts of thebooming plastic industry. Phenomenal development in the plastic machinery sectorcoupled with matching development in petrochemical sectors, both of which Ramaiah Institute of Management Studies4SBS Swiss Business School
  • 5. Organisation Study Report on Star PVC pipes & fittings Internship 2011supports the plastic processing sectors, have facilitated the plastic processors tobuild capacities to service both the domestic market and overseas.The chronology of manufacture of polymers in India is summarized as under. 1957 : poly styrene 1959 : LDPE 1961 : PVC 1968 : HDPE 1978 : polypropylene The economic reforms launched in India since 1991, joint ventures, foreigninvestments, easier across to technology from developed countries etc. have openedup new vistas to further Indian plastic industry are exported to over 150 countriesround the globe with major trading partners being USA,UAE, Italy,UK,Russia,Honkong, Germany etc. The plastic processing sector comprises of over 30000 unitsinvolved in producing a variety of items through injections molding, blow molding,extrusion and calendaring. The capacities built in most of this industry coupled withinherent capabilities have made us capable of servicing the overseas markets. Thedevelopment of plastics took place in 1920‟s with the introduction of celluloseacetate, polyvinylchloride and nylon. Polyethylene evolved out of the need for a superior insulating material couldbe used for such applications as radar during World War II. The decade of the1950‟s saw the introduction of poly propylene and the development of acetyl andpolycarbonate. In 1960‟s and 1970‟s a sub group of plastic family started to emerge,called high temperature plastics, which includes polyamides, aromatic polyesters,polyether siphoned etc.1.2Company Profilea) Background of the company: The history of STAR is the history of pipe fittings production in south India.In 1983, Vikas plastics and Star plastics amalgamated to form Star plastics, Ramaiah Institute of Management Studies5SBS Swiss Business School
  • 6. Organisation Study Report on Star PVC pipes & fittings Internship 2011Mullurkara that is 20kms away from Thrissur town, the cultural capital of Kerala. In1988, star became the number one PVC pipe fitting manufacture in south India it hasreceived the best ISI mark for quality. In 1994 star began the production andmarketing of flexible hoses under the brand name STAR FLEX. In 1998 takingadvantage of the wings of globalization star started star impex and forayed into theglobal market. Growth being as the key strategy the visionary Mr.P.K.Paul nurturedstar plastics into a corporate level. After the demise of Mr. P K Paul his eldest sonMr. Bobby Paul took the charge of the chariot. His brother Mr. Anto Paul alsoassists in the day to day activities of the company .Presently the group consists ofvarious companies like Star Plastics, Star Flex, Shine Star, Star Exporters& FinePolymers, A new group venture of star group of companies for the purpose ofexporters In the year 2000, to take on the challenge of globalization, star set up a coreteam and applied core ISO certification. In August 2001, star became the first PVCfittings manufactures in south India to receive the IS O 9002 certification. Starplastic is the market leader in Kerala, Tamilnadu & the market challenger in AndhraPradesh and Karnataka. The company has made its presence significantly in MiddleEast market having a branch office at Dubai. It is a multi -core, multi-ProductCompany which has been deeply involved in the manufacture, distribution, sale, andinstallation and servicing to bring the customer satisfaction and socialresponsibilities. In the last one decade unparalleled growth was witnessed in star gr oup ofcompanies to emerge as a leader in the PVC fitting and to diversify into themanufacture of suction hoses, drainage fittings and PVC pipes. Star plastics are agroup of companies with a turnover of 30 crores per annum and with manpowerstrength of 450 employees including 50 high caliber professionals. It has a32%growth due to the young and dynamic MD‟s expansions and growth plans. Thecompany increased its production capacity over 50% in just two years incurring hugeadditional investments. Presently it is enjoying the benefits. At the end of currenthalf year a growth rate of 35% when compared with the last year is witnessed. The company‟s operations include manufacturing of PVC fittings and alliedproducts in clearly defined core business areas at home and overseas. The star groupof companies is the single largest plastic industry in private sector over the years, Ramaiah Institute of Management Studies6SBS Swiss Business School
  • 7. Organisation Study Report on Star PVC pipes & fittings Internship 2011star group has steadily developed in to a professionally managed companycomprising of 8 manufacturing unit in 3 production centers wit h a total installedcapacity of 3850 meter per annum- 8divisions and effective centralize supportservices wholly dedicated to the most existing standards of quality and customerservices, constantly motivated by the need to ensure total product satisfacti on.b) Star group of companies:Star Plastics: - star plastics, the parent company of the group was incorporated in1983, and within these 21yrs it has grown up as one of the largest pace fittingsmanufacturing companies in India and its products are approved by these authorities.Shine Star: -shine star is another unit of star plastic, which is manufacturing pipefitting. This has been started as another manufacturing fitting unit.Star Flex: - star flex is totally a new venture, manufacturing flexible s olution anddelivery hoses ranging from ¾ to 4 sizes. As on today the above companies aremaking a combined sales turn over approximately worth of 30 crores per year.Star Polymers: -It is the unit of star plastics. It is manufacturing pipe fittings.Star Plus: - star plus is another unit of star plastics. It is also manufacturing pipefittings. The different units had been given different names in terms of marketing.c) Nature of business carried:STAR – This word is the combination of basic concepts and fundamentals believedby its founder and carried over across the years, it has sailed hitherto and for thefuture such as S - Service T- Transparency A - Accountability R - Reliabilityd) Star which means: Ramaiah Institute of Management Studies7SBS Swiss Business School
  • 8. Organisation Study Report on Star PVC pipes & fittings Internship 2011  Provider of basic requirement of all PVC related fittings, pipes, and allied products.  Unstinted and continued supply and service since last 2 decades.  Believer and Promoter of quality products than giving simple propaganda.  The First PVC pipe fittings manufacturer in south India who is operational and reaching newer heights year after year.  The First PVC pipe fittings manufacturer in south India to have received ISI mark.  The First PVC pipe fittings manufacturer in south India to have received ISO mark.  An entity who gave to its customer‟s qualitative products & value added services.  To have received the best appreciation from its people.e) Vision, Mission and Quality Policy:“Our vision is to maintain the hegemony as the most reliable provider of high quality PVCproducts to meet the diverse requirements of potable water distribution, domestic plumbing,bore wells and lift irrigation purposes. We aim to make each of our products a paragon ofquality and technical excellence. Through our constant Endeavour‟s of research andinnovation we strive to come up with new products that help architects and builders keepahead of the times”Mission: - serve water projects, construction activities and agriculture on global level toensure customer satisfaction.Quality policy: To manufacture and market goods, which comply with the consumers requirements. To achieve customer satisfaction is the basic philosophy of the organization. In the last one decade, unparalleled growth was witnessed in STAR group of companiesto emerge as a leader in the PVC fittings and to diversify in to the manufacture of suction,drainage fittings and PVC pipe. STAR PLASTICS is a group of companies with a turnover of75 cores per annum and with a manpower strength of 450 employees including 50 highcaliber professionals. Ramaiah Institute of Management Studies8SBS Swiss Business School
  • 9. Organisation Study Report on Star PVC pipes & fittings Internship 2011f) Product/Service profile: Star plastic product constitutes plumbing equipment materials such as PVC pipes,fittings, S.W.R fittings and PVC adhesive. Star fitting is leading names fittings over all thestates. STAR PVC pipe fittings are manufactured from the finest grade PVC resin trusted andacclaimed all over the-country for quality. Due to high tensile strength and reliability used inindustry, homes etc. STAR fittings are available in above 10 shapes and measures vary from 20mm to200mm. These are also available in 3 different colors. Injection modulated STAR PVC pipefittings confirm to ISI specification and assure totally safe, non-toxic water for all purposes.g) STAR-Plastic-Products:The company concentrates on the manufacturing of a wide range of PVC pipes and fittingsand allied products. Their products are basically categorized as STAR Drainage fittings BS 4514 STAR Pressure Fittings BS4344 STAR Pressure Fittings STAR SWR Fittings STAR Flex section & Delivery Hose STAR Solvent cement STAR PVC pipesh)Production centers: STAR plastics Mullakkara, Thrissur STAR plastics, the parent company of the group was the incorporated in 1983, andwithin these 24 years it has grown up as one of the largest PVC fittingsmanufacturingcompanies in India and its products are approved by ISI authorities. Manufactures the PVCpipe fittings, drainage fittings, SWR fittings, Pressure fittings, solvent cement. Lisna Inc. issituated in same premise. Shine Star Minaloor, Thrissur Ramaiah Institute of Management Studies9SBS Swiss Business School
  • 10. Organisation Study Report on Star PVC pipes & fittings Internship 2011 STAR manufactures the PVC pipe fittings, SWR fittings, Pressure fittings. Also manufactures PVC granules mainly master batches. SILVERSTAR, NEW STAR, FINE POLYMERS, LISNA TECH are situated in the same premise. Star Flex, Velappaya, ThrissurSTAR Flex manufactures the PVC flexible hoses, suction and delivery hoses ranging from0.75 to 4 inch diameter. Star Pipes, Choolissery, Thrissur STAR pipes manufacture the rigid PVC pipes for plumbing and electrical purpose.It‟s a semi-automatic manufacturing unit which manufactures rigid PVC pipes ranging from20mm to 200mm. Star pvc pipe fitting (p) ltd, sri perumbathur, chennai Manufactures the rigid PVC pipes for plumbing and electrical purpose it‟s a semi-automatic manufacturing unit which manufactures rigid PVC pipes ranging from 20 mm to200mm.This unit does the production for TAMILNADU and KARNATAKA. Star Implex industries llc, Dubai, UAE Manufactures the rigid PVC pipes for plumbing and electrical purpose it‟s a semi-automatic manufacturing unit which manufactures rigid PVC pipes ranging from 20 mm to200mm. also manufactures the PVC pipe fittings and solvent cement. This unit does theproduction for the Middle East Asia, Africa and Europe. Each division is self-reliant in itsactivities of research and development, Manufacturing and marketing, now moving for totalautomation and integration. STAR group of company is structured in to business unitscomprising synergistic group of responsibility centers, division backed up by an extensivemarketing infrastructure and front line support services. Ramaiah Institute of Management Studies10SBS Swiss Business School
  • 11. Organisation Study Report on Star PVC pipes & fittings Internship 2011 CHAPTERII STRUCTURE OF THE Ramaiah Institute of Management Studies11SBS Swiss Business School
  • 12. Organisation Study Report on Star PVC pipes & fittings Internship 2011ORGANISATIO N2.1 Organizational StructureThe STAR group follows absolute dedicated approach. The organization of its manufacturingoperations is based on product divisionalisation in to group of products in which are similarin technology or manufacturing process. Each group is constituted by divisions or profitcenters. Each of these group, are led by absolute manager. A central manager leads thecorporate function. Some of these functions in turn are reported to the managing director.2.2 Organizational Chart Ramaiah Institute of Management Studies12SBS Swiss Business School
  • 13. Organisation Study Report on Star PVC pipes & fittings Internship 2011 DIRECTOR MG- DIRECTOR GENERAL MANAGER HR FINANCE PURCHASE PRODUCTION MARKETING ACCOUNTS SYSTEM ASST FIANCE PURCHASE PRODUCTION MARKETING CHEIF MANAGER MANAGER MANAGER MANAGER MANAGER ACCOUNTANT (SYSTEMS)2.3 Organizational OutlookManaging Director - BOBBY PAULOther Directors - Anto Paul & Rosy PaulGeneral Manager - K.B. Suresh KumarMarketing Manager - C.L.GeorgeFinance Manager - Biju ThomasAccounts Manager - A.C. ChummarEstablished in - 1984Main production - PVC pipe fittings and adhesives Ramaiah Institute of Management Studies13SBS Swiss Business School
  • 14. Organisation Study Report on Star PVC pipes & fittings Internship 2011Raw materials for production - Resin and other chemicalsProduction range - Wide range of productsPresent production - Best in southern India with 85 percentOf total productionNumber of machines - 202 machines with generation backupNumber of office staff - 50Number of workers at factory - 400Trade discount - 50%Special discount forPayment within one week - 5%2.4Duties and Responsibilities of Departmental Heads 1) Finance Manager He is responsible for financial matters in the organization. He prepares financial plan. He assesses the financial needs of the organization and sources of the finance. He should be an expert in the field of financial management. He should know different tools used in the financial management ratio analysis, fund flow analysis, cash flow analysis, Budgeting etc. All these are necessary to prepare a sound financial policy for the organization. He is also responsible for financial planning, raising necessary fund, controlling the use of funds, appropriation of profits etc. Other functions include financial forecasting and planning, procurement of funds, investment decision, management of income, management of cash, deciding upon borrowing policy, negotiations for new financing, analysis and appraisal of financial performance, advising the top management, co-coordinating and control, helping in valuation decisions, and tax administration. 2) Accounts Manager He is responsible for keeping the details of day book, ledger and P.F registers. Moreover, he should record and maintain all the details of the sales tax calculation and related documents and produce them on demand. Ramaiah Institute of Management Studies14SBS Swiss Business School
  • 15. Organisation Study Report on Star PVC pipes & fittings Internship 2011 3) Marketing Manager He is charge of the marketing department of the organization. The marketing department aims to increase the turnover of the organization, market share, and profitability of the organization. The marketing manager should be tactful. He should know marketing concepts product mix, promotion mix, price mix, distribution mix etc. He should be known the strength and weakness of the firm‟s products. He is also able to design and implement market strategies to enhance turn over and capture new markets. 4) Human Resource Manager A human resource manager occupies a very important position in an organization. The duty of the human resource manager is to recruit and develop Personnel required by the organization. They are involved in manpower planning, training, maintenance, compensation etc. The other responsibilities of the human resource manager are formulation and development of personnel policies, employees training and development, transfer, promotion, etc., maintaining personnel records of each employee in the organization, establishment of good relation with employees, effective communication of the personnel policies and programmers of the management to employees, responsible for advising line manager, responsible for welfare activities and responsible for solving the problem of employees. 5) Production Manager He is responsible for the production of goods services in the organization. He looks after the purchasing function and manages the production design and process. He is called in different names such as production engineer, plant engineer, operation engineer etc. They are responsible for plant layout, inventory management, production control and quality control. 6) Purchase Manager Duties and responsibilities of the purchase manager are:  Prepare purchase budget.  Receive purchase requisition, and ascertain the material requirements.  Ascertain the sources of supply.  Invite tenders from the approved suppliers.  Select the supplier offering the best terms and conditions.  Issue purchase order to the supplier selected. Ramaiah Institute of Management Studies15SBS Swiss Business School
  • 16. Organisation Study Report on Star PVC pipes & fittings Internship 2011  Follow-up the purchase order to avoid any delay in delivery.  Receive goods received note and the inspection report.  Return the material which are not according to specifications or secure adjustment with the supplier.  Verify the invoice with regard to quality, price and other relevant particulars and pass it for payments.  Send the invoice to the accounting section. Ramaiah Institute of Management Studies16SBS Swiss Business School
  • 17. Organisation Study Report on Star PVC pipes & fittings Internship 2011 CHAPTERIII FUNCTIONALDEPARTMENTS3.1 Finance Department Ramaiah Institute of Management Studies17SBS Swiss Business School
  • 18. Organisation Study Report on Star PVC pipes & fittings Internship 2011 Finance department manages the fund available for the operations of the business, by making a balance between the fund inflow and fund outflow. The management of all activities related to finance requires considerable expertise and specialized knowledge of banks, financial institutions, the different sources of finance and ways to profitability utilize these funds. Finance Manager directly does the planning, organizing, directing and controlling financial activities in the society.Organization Structure:- GENERAL MANAGER FINANCE MANAGER FACTORY MANAGER BRANCH MANAGERFinance department is headed by finance manager. Finance manager reports to the GeneralManager and in certain strategy and urgent issues directly report to managing director andtake decisions. Finance Manager works in the coordination with chief accountant, productionmanager, marketing manager, branch managers.Sources of Finance:-STAR Plastics find sources of finance through banks and other private financial institutions.As it is a partnership firm, the partners contribute their funds to make capital requirementsand other expenditure with the help of banks and financial institutions. STAR Plastics dealsall finance requirements with South Indian bank, Kerala State Financial Enterprises (KSFE)and State Bank of India. Vehicle loans are provided by Cholamandalam finance.Company’s Financial Policies:-  Low cost of operation of funds.  Efficient receivable management, through acceleration of funds.  Faster sourcing of funds from institutions.Functions of Finance Department:- Ramaiah Institute of Management Studies18SBS Swiss Business School
  • 19. Organisation Study Report on Star PVC pipes & fittings Internship 2011Finance function is concerned with all aspects of business operations. It is very difficult to setlimits to the finance function. The key activities under finance department are:  Management of firm‟s assets structure.  Financial analysis, planning and control.  Management of firm‟s financial structure.  Estimating capital requirement.  Determining sources of fund.  Utilization of fund.  Disposal of surplus.  Management of cash.  Financial controls.3.2 Accounts DepartmentAccounts department deals with day to day book keeping, daily collections, salaries of allemployees, etc. Accounts department is headed by chief accountant. He is assisted by fourassistant accountants. In each production centers and marketing branches have an accountantand cashier which does the daily function at the places Chief accountant works in coordination with finance manager, on the fund flow issuesand in case of any shortage of cash occurs. Finance manager canalized the shortage fromfinancial institutions in case of emergency and normal cases, chief accountant tightness thepayment collections from the whole sellers and other sources. Other main function of accounts department is tax payments. They deal with thecentral sales tax, K VAT, excise and other department. Monthly returns are prepared by theaccounts department.3.3 Marketing DepartmentMarketing department is entrusted with the function of planning and executing theconception, pricing, promotion and distribution of ideas goods services, to create exchangesthat satisfy individual and organizational boards. In simple terms the marketing function iscatered around the customer and his needs.Organization Structure: Ramaiah Institute of Management Studies19SBS Swiss Business School
  • 20. Organisation Study Report on Star PVC pipes & fittings Internship 2011 MARKETING MANAGER BRANCH MANAGER SALES EXECUTIVE REPRESENTATIVESMarketing Policy:STAR Lights to reduce the number of intermediaries, so they have no distributors. Billing isdirectly done to the wholesalers and retailers. In case of other state sales, it‟s a one throughthe branch offices. No direct export to any customers. STAR is operating by exporting to thebranch office at Dubai, STAR IMPEX INDUSTRIES L.L.C. and billing directly to thecustomers. In the case of logistics the supply of products is done through company ownedfeet of vehicles. Same policy followed with inter-state also.Functions of Marketing Department in Star Plastics: The major functions are explained below: 1. Demand Forecasting 2. Marketing Research 3. Marketing Control1.Demand ForecastingDemand forecasting is the main function of marketing in STAR plastics .It should be donethrough sales force in the company such as sales representatives‟ sales executives‟ etc.collecting information from customers. On the basis of this information demand forecastingis to be done.2. Marketing Research Ramaiah Institute of Management Studies20SBS Swiss Business School
  • 21. Organisation Study Report on Star PVC pipes & fittings Internship 2011Marketing research is more comprehensive composing all the functions of a marketingmanager that is it covers product, price, sales, market, promotion, distribution policies. It iscommonly says that marketing research begins where manufacturing ends. In fact itcommences well before the product is fabricated. It goes in to operation even before erectingthe factory. It covers analysis of competitive advantage, market share analysis and newproduct development. The main objectives of market research are:  To know buyers.  To measure the impact of promotional effort.  To know consumer response.  To know market costs and profits.  To master external forces.  To design and implement marketing control.3. Marketing ControlVarious tools used for marketing control are cost control and a market share analysis. Costcontrol is one task for monitoring the cost of marketing and it is compared with planned coststandard, so as to identify deviations and take corrective action. Market share analysis is alsoused for marketing control.Objectives of Marketing:The basic objectives of marketing are to satisfy human wants. The important objectives ofmarketing are briefly explained below:1. Customer Satisfaction through Quality Products Marketing activities aims at achieving customer satisfaction by offering qualityproducts. It is also help more increasing profit, increasing goodwill, increasing image of theorganization etc.2.After Sales Service This another objective of marketing company provides after sales services to itscustomers. The service of the company does not end with process of distribution the companyhas been waited until good result comes by giving their products to consumer and theyalways rendered their services at the time needed by the customers. The marketing and sales Ramaiah Institute of Management Studies21SBS Swiss Business School
  • 22. Organisation Study Report on Star PVC pipes & fittings Internship 2011department keeps their eyes and ears to open to know changes in the market. The complaintand suggestions if any are well accepted by the company from their customers. There is anycomplaint about the sold product the company will take it back at the company‟s costs.  Method Of After Sales Service: For providing after sales service company may use thefollowing methods:  Sending special staff to the customers.  Arranging service with dealers/agents.  Appointing in depending service specialists.3. Maintaining Price Leadership:Company‟s important objective is to maintain price leadership. Company is always trying tobecome a price leader. It does not like become a price follower.4. Achieving Maximum Market Share: Companies another objective is to achieving maximum market share. In order toachieve maximum market share, company will spend more on advertising and offeringquality products to the customers.5. Other Objectives: Other objectives include:  Increasing firms sales.  To guarantee firms survival.  To fortify better resource utilization.  To meet customer needs.Present market condition:For their products STAR is facing demand higher than supply, which is a healthy situation. Incase of seasonal products like suction and delivery hose, demand exceeds supply. It tries tolater products to major customers. It is the main reason for expansion of production facilities.Market Segmentation: Ramaiah Institute of Management Studies22SBS Swiss Business School
  • 23. Organisation Study Report on Star PVC pipes & fittings Internship 2011 STAR is the dominant player in the South India. Geographically the market issegmented into five regions and branch officers are responsible for marketing activities intheir regions. 1. Bangalore (Karnataka) 2. Chennai (TN) 3. Dubai (Middle East, Russia, South Africa etc.) 4. Nagari (AP) 5. Thrissur (Kerala)As per the consumers, market is segmented into three: 1. Government Works 2. Household Consumers 3. BuildersPresently highly concentrated on the builders, as the construction industry is booming,appointed two sales executives exclusively for this sector and have a considerable marketshare in the other two segments.Promotion:In STAR PLASTICS promotion is done in the case of sale of products, in the case ofdealers,and in the case of sale force.1. In the case of sale of productsSales promotion includes short term incentives like‟s discounts, free gifts and contests tostimulate sale of products. Sales promotion builds a bridge between the products andconsumers. In the case of STAR, sales and brand promotion is done by providing informationabout the products through advertisement, demonstrations, organizational shows etc.2. In the case of dealers Company provides incentives to their dealers and also provides dealers with discount atthe time of purchasing the product from the company. The company also provides after saleservices to dealers. It is based on the nature of product the company offers their dealers withreplacement facility after checking the product. Ramaiah Institute of Management Studies23SBS Swiss Business School
  • 24. Organisation Study Report on Star PVC pipes & fittings Internship 20113. In the case of sales force: Company provides incentives to sales force. This includes the activities whichinduce and motivate sales person. The aim of sales forces promotion is to make the salesmen‟s effort most effective. The various schemes of sales promotion are:  Bonus to sales force.  Sales force contest.  Sales meetings, convention and conferences.Advertisement:In the case of STAR advertisement is the most glamour element of the promotion mix. Itcovers all the activities connected with the giving of publicity regarding goods and servicesoffered for sale. Advertising is transmitting through mass media such as television,newspapers, magazines etc.Advertising Policy:„Each potential customer must see an advertisement’Brand awareness is not much with the customers. Brand awareness to be created, it‟s ingrowth stage. Advertisement focused on creating the brand image and promoting the STARbrand for their entire product. Earlier advertisement (Hoarding) were exhibited at districtheadquarters and important junctions. Presently, apart from above mentioned places, at areasof potential customers, each retail and whole sale outlet etc.Mode of Advertisement:1. Earlier as wall paintings, banners etc. now changed to huge flex hoardings. Reason for change is: a. Attractiveness. b. New technology acceptance with change in market.c. Real and clear image of product. d. Quality advertisement gives better company image. Ramaiah Institute of Management Studies24SBS Swiss Business School
  • 25. Organisation Study Report on Star PVC pipes & fittings Internship 20112. Newspapers: heading Malayalam newspaper, The Hindu, Indian Express.3. Website.4. Sponsoring cultural and institutional programs, management and dealers meet, plasticmanufactures association and export promotion counsels meetings.5. Presently no visual media.Advertisement Budget:Budget of advertisement depends mainly on market needs as it‟s the growth stage need topromote the brand. Once established the budget could be reduced followed poly is 3-5% ofnet profit.Distribution Channel:Pricing Strategy: In STAR pricing strategy is a special kind of plan formatted in order to meet thechanges of external factors particularly from the policies of competitors. Pricing strategieschange with competitive situation. Some of the common pricing strategy followed STARplastics are: 1. Competitive pricing. 2. Premium pricing.1. Competitive pricing:It depends upon market condition competitor‟s price, seasonal variation etc. customers arevery much aware of the quality and price of the product.2. Premium pricing: Ramaiah Institute of Management Studies25SBS Swiss Business School
  • 26. Organisation Study Report on Star PVC pipes & fittings Internship 2011In the case of suction and delivery hose, adopted a premium price strategy to utilize the ISImarking and brand image. As the brand awareness is less with customers market will stilldepends on price of the product.In the case of new product:Following pricing strategy followed in the case of new products: 1. Skimming price policy:Company adopts skimming price policy in the case of new products. This is done with thebasic idea of gaining a premium from those buyers who always ready to pay a much higherprice than others. The main reason for adopting this strategy is to attract the consumers ofhigh income group. . 2. Penetration price policy:Sometimes company adopt penetration price policy that means changing low price frombeginning in order to stimulate the growth of the market and to capture a large share of it.Since the customers with low income are able to purchase it.Price Fixation:Price of the product depends on two components: a. Cost of raw material - variable. b. Operational &Processing cost - fixed. Product price changes with change in raw material price, which is considered as avariable. Minimum period of two weeks taken for price revision, though in some cases rawmaterials price fluctuates each day.Risk Involved:Usually bad debts may occur in a business concern. But in STAR PLASTICS till now no baddebts have been incurred. The usual credit period given to customers is 15 days. If onecustomer delays the payment, they collect the amount by the way of sending reminders tohim, although they are keeping some amount as reserve for bad and doubtful debts. Thesociety is keeping large quantities of direct materials as stock because the price of such Ramaiah Institute of Management Studies26SBS Swiss Business School
  • 27. Organisation Study Report on Star PVC pipes & fittings Internship 2011materials is growing day by day. Therefore these excessive raw materials don‟t result in lossthough some heavy investment is required in it.To avoid the risk involved in transportation of goods to customers outside Kerala, the goodsare insured accordingly. It helps the society to avoid the risk involved in transporting goodsto distant places.3.4 Human Resource Department Human resource management involves personnel management, personnel administration,employee welfare, manpower planning, industrial relations etc.Human resource department isheaded by General Manager and assisted by all the department heads, factory managers, andbranch managers. STAR does pro-active approach to managing people in the organization. It constitutes aseries of integrated decisions that helps to consolidate the employment relationship andbelieves that their quality contributes to the efficiency of the organization and helps theemployees to achieve their objectives. In the case of production centers, factory manager manages all personal staff and createsa good relationship with office staff and workers. He undertakes their wants. He will motivateentire unit as a whole. Each unit works as an independent unit with its own modes of training,induction, performance, appraisal etc. All the functions are done in consultation with the production manager and thegeneral manager. In the branch offices Branch manager maintains the warmth employeerelationship and assessment and training is provided by branch manager in consultations withmarketing manager and the General Manager. Ramaiah Institute of Management Studies27SBS Swiss Business School
  • 28. Organisation Study Report on Star PVC pipes & fittings Internship 2011Organization Structure: HUMAN RESOURCE MIDDLE SUPERVISORY OPERATIONAL TOP MANAGEMENT MANAGEMENT MANAGEMENT MANAGEMENT BOARD OF DIRECTORS DEPARTMENTAL HEADS SENIOR SUPERVISORS SKILLEDWORKERS CHEIEF ACCOUNTANT DIVISIONAL HEADS INTERMEDIATE SEMI- SKILLED WORKERS FINANACIAL SUPERVISORS SECTIONAL HEADS UNSKILLED WORKERS DIRECTORSWorking Hours in STAR:Office time begins with 9 A.M up to 5.30 P.M. In that time all transactions and officialfunction of that day are completed. All functions are controlled by HR Manager. HRManager handles many planning process they are:  Forecasting future manpower requirement, it is estimated based upon specific future plans of the company.  Identifying present manpower resources and analyzing the degree to which these resources are employed optimally.  Anticipating manpower problems by projecting present resources into the future and comparing them with the forecast of the requirement, to determine their adequacy, both quantitatively and qualitatively.  Planning the necessary programs of requirement, selection, training and development, utilization, transfer, promotion, motivation and compensation. So that future manpower requirement will be met.3.5 Production DepartmentProduction is the core function concerned with STAR as it has wide range of products andproduction take place in plants located at faraway places. More over as faced with stiffcompetition, the only way to increase the profit is by the cost reduction, as price increase isnot at all possible. So each unit has its own research and development facilities working for Ramaiah Institute of Management Studies28SBS Swiss Business School
  • 29. Organisation Study Report on Star PVC pipes & fittings Internship 2011the better production functions to increase the efficiency in a way result in cost reduction.Production takes place in six production centers located at different place. Each division isself-reliant in its activities of manufacturing, quality control, research and developmentproduction center is headedby factory manager‟s reports to a production manager at thecorporate office.Organization Structure: PRODUCTION MANAGER FACTORY MANAGER ASST. MANAGER PRODUCTION QUALITY IN CHARGE STORE IN CHARGE (ADMINISTRATION) SUPERVISORS (TECH & R&D) ACCOUNTANT WORKER CASHIER CLERK, RECEPTIONThe Company‟s production department handles the production of PVC pipe fittings. Themain raw material for product is „Resin‟ and other related components like chemicals. 95%resin and 5% other chemicals are used for the production. The plant is set up in processlayout. The raw materials go through the various processes for development of final product.Other than company fittings Company also produce solvent cement and in differentmeasures. There are 20 machines in production plant, each costing up to 35 lacks.Depending upon the type of products, the production process is divided in to three:  Extrusion: - For rigid pipes and flexible hoses.  Injection Molding: - For PVC Pipe Fittings.  Mixing: - For solvent cement. Ramaiah Institute of Management Studies29SBS Swiss Business School
  • 30. Organisation Study Report on Star PVC pipes & fittings Internship 20113.6 Purchase DepartmentThe purchase department is entrusted with the function of purchasing row materials. In thepresent scenario with the cut throat competition, cost reduction is practiced in every sphere ofthe business and purchase is one of the important functions where cost can be highlycontrolled. High quality materials with lower cost became the motto of every organization fora meaningful survival, for this organizations practice supplier rating and vender management.There is a centralized purchase department headed by purchase manager who is responsiblefor taking purchase decisions for all units. The decisions are made on the basis of followingfactors: Market conditions Availability of raw materials Price of raw materialsOrganization Structure: PURCHASE MANAGER SENIOR ASSISTANT OFFICE ASSISTANTThe purchase manager concerns with the factory managers regarding the technicalspecifications, manufacturer, quality standards, cost of materials, availability, time delay etc.In case of engineering goods, testing equipments, speciality chemicals, instruments etc thepurchase manager seeks help from the engineers and the other technical persons workingwith the research and development. Purchase manager also works in coordination with thechief accountant, to know the position and about the credit position with the suppliers. Ramaiah Institute of Management Studies30SBS Swiss Business School
  • 31. Organisation Study Report on Star PVC pipes & fittings Internship 2011Role of Purchase Manager:  Raw materials purchase.  Purchase of consumables and stores.  Negotiation of prices of raw materials with the supplier.Procurement and Issue of Materials:  Purchase.  Store.A.Purchase The production department, usually factory manager informs the purchase departmentabout the requirements of materials. The information is passed through the purchase intentissued by factory manager to the purchase manager. In case of regular product like stationaryand small purchase, the store in charge issues the purchase intend giving a copy to the factorymanager item specification, required quantity, name of the manufacture, approximate costsetc. are mentioned in the purchase intend. The purchase department then enquires with thesuppliers and invites quotation. From the received quotation mentioning the offered price,mode of payment, discount if any, time need for dispatches etc., purchase department choosesthe most appropriate by considering all the criteria. Purchase manager consults with accounts department about the availability of cash,payment condition, balance of any paid, whether the account with the supplier crossed thecredit limit etc. with the approval of accounts department, purchase manager then sends apurchase order to the supplier. In case of new materials or new supplier, purchase departmentinsist or samples to be supplied before the purchase. These samples are tested within houselaboratories. Orders are given only when the sample confirms to the required quality levels.B.StoreStore is very important to arrange different items of materials in a systematic manner. Storerecords information relating to receipts and issue of materials and products. Proper storage isessential for material cost control. Store is headed by the store in charge who report to thefactory manager and purchase manager. Each production center has its own store. Materialpurchasing is done as a centralized activity and then it is supplied to stores at productioncenters. Store is divided into three: Ramaiah Institute of Management Studies31SBS Swiss Business School
  • 32. Organisation Study Report on Star PVC pipes & fittings Internship 2011 Raw material stores. Engineering Stores (electrical suppliers). Finished goods store.3.7 Systems Department STAR started the computerization of its department‟s way back. Personal computerswith UNIX as the operating system were used in the late 1980‟s. But the computers ofvarious departments are not networked. In the year 1999, STAR went to upgrade its EDPsetup further. Costume made ERP software was developed for its units and head office. Theinstallation of ERP software made the work of the departments of STAR easier. Beingcostume made this ERP software, with SQL RDBMS, Front end on Visual basic andwindows NT 2000 and XP, seamlessly had integrated all function of the organization VIZ,production, inventory billing. Payroll, Accounting etc.The head office at Thrissur has three servers and forty nodes running the application. Oneserver is networked and other is kept as back up, another one is used as internet server. Otherunits totally have about eight servers and about 50 nodes. Their latest plants at DUBAI,CHENNAI has computerized control room for monitoring and production controlling. Inaddition with ERP system, STAR also had implemented an electronic messaging solutionwith its organization, which is centered on the company‟s website. This messaging solutionobviates the communication bottle neck of company. Ramaiah Institute of Management Studies32SBS Swiss Business School
  • 33. Organisation Study Report on Star PVC pipes & fittings Internship 2011 CHAPTERIV PORTERS FIVEFORCES MODEL Ramaiah Institute of Management Studies33SBS Swiss Business School
  • 34. Organisation Study Report on Star PVC pipes & fittings Internship 2011 PORTERS FIVE FORCES MODELPorters Five Forces is a framework for industry analysis and business strategy developmentformed by Michael E. Porter of Harvard Business School in 1979. It draws upon IndustrialOrganization (IO) economics to derive five forces that determine the competitive intensityand therefore attractiveness of a market. Attractiveness in this context refers to the overallindustry profitability. An "unattractive" industry is one in which the combination of these fiveforces acts to drive down overall profitability. A very unattractive industry would be oneapproaching "pure competition", in which available profits for all firms are driven down tozero.The Five Forces are 1. The threat of the entry of new competitors. 2. The threat of substitute products or services. 3. The bargaining power of customers (buyers). 4. The bargaining power of suppliers. 5. The intensity of competitive rivalry.For plastics producers worldwide, India represents a range of highly new opportunities forgrowth. The plastics industry in India has made significant achievements ever since it made amodest but promising beginning by commencing production of polystyrene in 1957.TheIndian plastic industry conforms to the levels of sophistication required to produce plastic andplastic products of international quality standards. The consumption of plastics 1999 isestimated at twelve million tons by the year 2010. The demand for plastics is growingapproximately @ 22% annually and plastic consumption in India is expected to increase fromalmost 2.7 million tons of various commodity plastics in 1998 to almost fifteen milliontonsby 2010.During the organizational study undertaken in Star Plastics, Kerala, the information collectedregarding its competitors, products, the bargaining power of customers and the suppliers and Ramaiah Institute of Management Studies34SBS Swiss Business School
  • 35. Organisation Study Report on Star PVC pipes & fittings Internship 2011the intensity of competitive rivalry has been analyzed using Porters five forces model and isas follows:1. The Threat of the Entry of New CompetitorsProfitable markets that yield high returns will attract new firms. This results in many newentrants, which eventually will decrease profitability for all firms in the industry. Unless theentry of new firms can be blocked by incumbents, the abnormal profit rate will tend towardszero (perfect competition). The history of star is the history of pipe fittings production insouth India. In 1983, Vikas plastics and Star plastics amalgamated to form Star plastics,Mullurkara that is 20kms away from Thrissur town, the cultural capital of Kerala. In 1988,star became the number one PVC pipe fitting manufacture in south India it has received thebest ISI mark for quality. Afterwards more organizations came into the plastic manufacturingindustry and so that the competition also becomes huge.The main competitors for Star in the market now are: Hycount Plastics & Chemicals. Hycount Plastics & Chemicals was commissioned two decades ago at Kollam. HYCOUNT PIPE - One of the brand PVC pipes in the country and the market in Kerala in its kind with an installed capacity over 12,000 Metric tons per annum produced at different locations in Kerala. A-One Polymer Ltd. A-One Polymer Ltd. is yet another glorious contribution of the century old Anwar Group of Industries in strengthening the developing industrial base of Bangladesh. Manufactured in strict compliance with ISO 3633:2002 & BS Standard 4514, „A-One u PVC Fittings‟ possess attributes equivalent to any international premier quality pipe-fittings. A-One Polymer, established in 2006 with uPVC pipe & fittings manufacturing facility, is also in production of 50MT of PTFE Thread Seal Tape per month, making it the first manufacturer of this product in Bangladesh. With the aim to diversify its product range further, A-One Polymer seeks to manufacture a wide range Ramaiah Institute of Management Studies35SBS Swiss Business School
  • 36. Organisation Study Report on Star PVC pipes & fittings Internship 2011 of plumbing related materials (PVC, uPVC, cPVC) in the years to come. Already serving the world market, A-One polymer plans to further expand its production capacity by 150MT/month to strengthen its export market in 2013. Finolex Industries Ltd. Finolex Industries Ltd is the largest manufacturer of rigid poly vinyl chloride (PVC) pipes and fittings in India having a market share of nearly 10 per cent. The companys manufacturing capacity of 36,000 tons for PVC pipes and fittings is likely to be increased to 50,000 tons by the end of next year. Recently, FIL commissioned an ultra-modern PVC pipes plant at Ratnagiri in Maharashtra. The company also has a plant in Pune. Nediyara Group "SHAKTHIMAN SUPER". "SHAKTHIMAN SUPER" is the flagship brand of Nediyara Group, a synonym for plastic processing in Kerala. The headquarters of the group is at Kodanad,A picturesque village on the banks of river Periyar. Besides PVC pipes, the group churns out a myriad of plastic products like Soft PVC Garden Hoses, ISI Marked Electrical Wiring Pipes, Printed Food Packaging Containers, Water Storage Tanks, Toilet Seat Covers, Cisterns etc. Launched in 1974. Eurotech Pipes and Fittings. Eurotech Pipes and fittings are made from VESTOLEN P9421 polypropylene random co polymer specially developed for this use. Eurotech is a system of pipes and fittings made from VESTOLEN P9421 random copolymer polypropylene, specially developed for this use. The system‟s characteristics make it suitable for the construction of heating and water supply systems of the most widely varying forms with outstanding reliability over time. Eurotech office in Kerala: Thrissur Road, Chagarakulam, and Kerala. Some Other Companies in Thrissur I. UNIVERSAL DISTRIBUTORS, Masjid Road, Kokkalai, Thrissur. II. Moyalan HDPE -PVC Pipes, Market Rd, PB-76, Ollur P O, Thrissur. Ramaiah Institute of Management Studies36SBS Swiss Business School
  • 37. Organisation Study Report on Star PVC pipes & fittings Internship 2011 III. MazPolymers, Industrial Development Plot, Athani P O, Peringandoor Thrissur.2. TheThreat of Substitute Products or Service The threat of substitute is high when the price of that substitute product falls or it iseasy for consumers to switch from one substitute product to another or when buyers arewilling to substitute. Star Plastic product constitutes plumping equipment materials such asPVC pipes, fittings, SWR fittings and PVC adhesive. Star fitting is leading names fittingsover all the states. STAR PVC fittings are manufactured from the finest grade PVC resintrusted and acclaimed all over the country for quality. Due to the high tensile strength andreliability used in industry, homes etc. STAR fittings are available in above 10 shapes andmeasures vary from 20mm to 200mm. They are also available in 3 different colors. Injectionmolded STAR PVC pipe fittings confirm to ISI specification and assure totally safe, non-toxic water for all purposes. The development of PVC pipes and all type of Plastic fittings and equipment‟sallover the world is by using the organochlorine called Poly Vinyl Chloride (PVC). STAR isalso developing all type of pipe products (rigid pipes, flexible hoses etc.) using the sameorganochlorine PVC. The competitors are also using the same technology. So there is nosubstitute products made from other organochlorine, the plastic products are all made fromthe same organochlorine PVC.3. The Bargaining Power of Customers (Buyers) Buyers or customers can exert influence and control over an industry in certaincircumstances. This happens when: There is little differentiation over the product and substitutes can be found easily. Customers are sensitive to price. Switching to another product is not costly. Ramaiah Institute of Management Studies37SBS Swiss Business School
  • 38. Organisation Study Report on Star PVC pipes & fittings Internship 2011Nowadays customers have the buying power and they have the choice in the market tochoose the product what they want. In 1994 Star began the production and marketing offlexible hoses under the brand name STAR FLEX. Before that Nediyara group came withSoft PVC Garden Hoses and it has a good name among the customers and has a good marketalso. So when Star came with flexible hoses, it is difficult to market the product. But whilecomparing to other company‟s products, Star have international standards and also have theISI certification and the product flexible hose is for both domestic and industrial use. Thismade Star to gain supremacy of the products over others products, market ascendancy wasnot difficult. Star now is a ubiquitous presence in the entire Middle-East and South Africa. In2001, STAR received the ISO 9002 Certification, yet again the first in South India. Thecustomers of STAR are satisfied with their products. They continue to use the product andwill purchase them in future. Quality is the main factor that helps STAR to compete withother brands. Advertisements were done in print media only.4. The Bargaining Power of SuppliersSuppliers are also essential for the success of an organization. Raw materials are needed tocomplete the finish product of the organization. Suppliers do have power. This power comesfrom: If they are the only supplier or one of few suppliers who supply that particular raw material. If it costly for the organization to move from one supplier to another (known also as switching cost). If there is no other substitute for their product.STAR plastics have suppliers all over South India. STAR plastics concentrates there marketin India mostly in southern region. STAR has a monopoly market in southern area. Thecompany can market their product very smoothly through the market segmentation. Thecompany is selling their products by dividing the market state wise. The companyconcentrates in Tamil Nadu, AndhraPradesh, Karnataka and Kerala. In North India thecompany continues marketing of their products. To be more precise, the product of the company makes its presents felt in thefollowing counties: Ramaiah Institute of Management Studies38SBS Swiss Business School
  • 39. Organisation Study Report on Star PVC pipes & fittings Internship 2011 INDIA UAE RUSSIA IRAN AFGHANISTAN MUSCAT QATAR BAHRAIN SAUDI ARABIA EGYPT SUDAN ETHIOPIA SOMALIA SOUTH AFRICA5. The Intensity of Competitive RivalryIf entry to an industry is easy then competitive rivalry will likely to be high. If it is easy forcustomers to move to substitute products for example from coke to water then again rivalrywill be high. Generally competitive rivalry will be high if: There is little differentiation between the products sold between customers. Competitors are approximately the same size of each other. If the competitors all have similar strategies. It is costly to leave the industry hence they fight to just stay in (exit barriers).In India the PVC industry is going through high competitive rivalry. As too manyorganizations are coming to PVC pipes & Fittings manufacturing industry yearly, thecompetition is also becoming higher. In the last one decade unparalleled growth waswitnessed in Star group of companies to emerge as a leader in the PVC fitting and todiversify into the manufacture of suction hoses, drainage fittings and PVC pipes. Thecompanies operation includes manufacturing of PVC fittings and allied products in clearlydefined core business areas at home and overseas. The Star group of companies is the singlelargest plastic industry in private sector over years, star group has steadily developed into a Ramaiah Institute of Management Studies39SBS Swiss Business School
  • 40. Organisation Study Report on Star PVC pipes & fittings Internship 2011professionally managed company comprising of 8 manufacturing unit in 3 production centerswith a total installed capacity of 3850 meter per annum-8 divisions and effective centralizesupport services wholly dedicated to the most existing standards of quality and customerservices, constantly motivated by the need to ensure total product satisfaction. In the year2000, to take the challenge of globalization, star set up a core team and applied core ISOcertification. In August 2001, star became the first PVC fittings manufacture in south India toreceive the ISO 9002 certification. Now Star Plastics is the market leader in South India. Thecompany has made its presence significantly in Middle East market also.Strategy persuaded by Star PVC is:  Produces good quality product.  Makes use of modern techniques for production to meet the demands mostly with the help of pop‟s.  Assigning targets to each store manager and as such rewarding then with attractive prizes.  Everyday feedbacks are taken.The value which exists in Star PVC is:  No discrimination for race, religion, decision making and actions.  To develop a sense of respect for oneself in other‟s mind.  Discipline is given great importance.These all help them to overcome the intensity of competitive rivalry in the PVC pipes &Manufacturing industry. Ramaiah Institute of Management Studies40SBS Swiss Business School
  • 41. Organisation Study Report on Star PVC pipes & fittings Internship 2011 CHAPTER V SWOT ANALYSIS Ramaiah Institute of Management Studies41SBS Swiss Business School
  • 42. Organisation Study Report on Star PVC pipes & fittings Internship 2011 SWOT analysis is a strategic planning tool used to evaluate the strengths, weakness,opportunities and threats involved in a project or in a business venture. It involves specifyingthe objectives of the business venture or project and identifying the internal and externalfactors that are Favorable and unfavorable to achieve the objectives.Strength: 1. The company has a good brand image among the consumers. 2. Products accepted all over the world for its quality. 3. Multi – Unit Multi – Product organization catering all products in PVC pipe industry. 4. Global presence in Middle East Asia, Europe, Africa. 5. The company has the direct marketing network with well established distribution system 6. Dedicated marketing force with effective promotion strategy. 7. The company has fully computerized departments and production units and corporate office is connected through intranet. 8. Committed work force guided by technically skilled superiors, maintaining warmness in relation helps in delivering a combined effect. 9. Stringent quality measures adopted, backed by a strong quality control and R & D team.Weakness: 1. Organization in flexibility (Flexible working hours and Policies for flexible working). 2. Limited branches. 3. Lack of access to the key distribution channels (Not concentrating in the rural areas of south India where there are lot of business possibilities in agriculture sector. Now the organization is concentrating mainly in the construction Industry). 4. Advertisements are done through print media only. Ramaiah Institute of Management Studies42SBS Swiss Business School
  • 43. Organisation Study Report on Star PVC pipes & fittings Internship 2011Opportunities: 1. PVC pipe industry is in growth stage so PVC pipe industry has a greater opportunity to grow. 2. Immense opportunities as infrastructure development in India are growing at a faster pace. 3. There are large untapped opportunities in Government sector(E.g. Government is giving subsidies to the farmers for buying agriculture equipment‟s). 4. Growth of real estate on account of nuclear families. 5. Agriculture promotion schemes by government and other agencies.Threats: 1. Sudden fluctuations in crude price, causing fluctuations in raw material price makes difficult in pricing strategy. 2. Industry is one among those with greater competition. 3. In the changing world of technology, sometimes a better substitute over PVC may emerge. 4. All the competitors (Hycount Pipes, A-One Polymers, and Finolex Industries etc.) are changing their strategies and formulating new ones to capture new markets. 5. As PVC is a plastic which is not biodegradable cause‟s environmental pollution, may face a ban in future. Ramaiah Institute of Management Studies43SBS Swiss Business School
  • 44. Organisation Study Report on Star PVC pipes & fittings Internship 2011 CHAPTER VI FINDINGS AND SUGGESTIONS Ramaiah Institute of Management Studies44SBS Swiss Business School
  • 45. Organisation Study Report on Star PVC pipes & fittings Internship 2011Findings:Star Plastics is the number one PVC pipe fitting manufacturer in south India and it hasreceived the best ISI mark for quality. In August 2001, Star became the first PVC fittingsmanufacturer in south India to receive the ISO 9002 certification.  International Standard that is being followed as far as the quality of the products is concerned.  Has well trained employees to operate the machines.  Provides excellent services to its employees like canteen, medical facilities, transportation etc.  Premises are huge and designed in such a way that the raw materials can easily transferred from one department to another.  Safety is given main preference.  Discipline is being followed.  Pollution level is low.  Quality of the products is assured by doing nine different quality tests.  Everyday feedbacks are taken.  Excellent training and development system.  Employee performance appraisal system.  No discrimination for race, religion, decision making and actions.Suggestions: Ramaiah Institute of Management Studies45SBS Swiss Business School
  • 46. Organisation Study Report on Star PVC pipes & fittings Internship 2011  Problems can be detected early and treated to prevent deterioration welfare and cost reduction.  Annual medical checkup for all workmen and employees. A small amount can be deducted from the salary one time.  Cleanliness and orderliness has to be further improved.  Improve security measures by using electronic devices at all gates.  Advertisement need improvement (currently advertisements is done through print media only, need to be done in visual media also). CHAPTER VII CONCLUSION Ramaiah Institute of Management Studies46SBS Swiss Business School
  • 47. Organisation Study Report on Star PVC pipes & fittings Internship 2011 CONCLUSIONThe study conducted at STAR GROUP OF COMPANIES THRISSUR which is the pioneerand market leader in the PVC pipe product in South India, helped in getting a wider outlookabout the business environment and managing an organization. Organization has sixproduction centers and five marketing branches spread all over South India and Middle EastAsia, with operation all over the world.It was a general study regarding all functions and aspects of STAR. The company has sevenfunctional departments through which it was operating. It is found that company has a goodworking environment and cordial relationship is maintained between all departments for thesmooth functioning and achievement of the organization goal of maintain the company‟sbrand image among the customers. Porters Five Forces Model is done in the period of studyto analyze the threat of the entry of new competitors and substitute products or services, thebargaining power of the customers and the suppliers and the intensity of competitive rivalry.SWOT analysis is also done to analyze the Strength, Weakness, Opportunities and Threats ofthe organization.Star has made are of most advance technology and up to date knowledge. Fully automatedproduction has been put to use long time ago U.S made microprocessor controlled machineryis used to for production. Star received the ISI mark for quality and ISO 9002 certification for Ramaiah Institute of Management Studies47SBS Swiss Business School
  • 48. Organisation Study Report on Star PVC pipes & fittings Internship 2011quality by TUV Germany, and ISO 14001: 2001 certification. All the products are ofInternational standard. At present company is able to later about 10% of the marketrequirements. In order to later the complete needs the company is planning to increase theproduction level to maximum extent possible. The company is planning to increase thepresent product level of Dubai units. The research and development team of STAR group isengrossed in developing new product for the international markets. This has helped them togain valuable insight that prompt the group to search alternative ways for manufacturingbetter products in a cost effective manner. CHAPTER VII Ramaiah Institute of Management Studies48SBS Swiss Business School
  • 49. Organisation Study Report on Star PVC pipes & fittings Internship 2011 BIBILIOGRA PHY BIBILIOGRAPHYBooks Referred:  Philip Kotler, Jha, and Koshy: “Marketing management”.  Roger. A. Kerin, Steven. W. Hartley, Eric. N. Berkowit, William Redlius: “Marketing Management”.Websites Referred:  www.wikipedia.com  www.stargroupind.com  www.google.com Ramaiah Institute of Management Studies49SBS Swiss Business School
  • 50. Organisation Study Report on Star PVC pipes & fittings Internship 2011Journals:  Star Plastics Company Magazine. Ramaiah Institute of Management Studies50SBS Swiss Business School