Organization study on bccw


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Organization study on bccw

  1. 1. Bharathi Coffee Curing Works, Hassan. INDUSTRY PROFILE 1 |Pages H.R. Institute of Higher Education, Hassan.
  2. 2. Bharathi Coffee Curing Works, Hassan. INDUSTRY PROFILE The Coffee industry of India is the sixth largest producer of coffee in the world, accounting for over four percent of world coffee production, with the bulk of all production taking place in its Southern states. India is most noted for its Monsoon Malabar variety. It is believed that coffee has been cultivated in India longer than anywhere outside of the Arabian Peninsula. Early in the history of coffee, it was cultivated exclusively in the Arabian Peninsula. To maintain this monopoly on coffee production, the Arabians forbade the export of coffee beans that had not been roasted or boiled enough to prevent germination. However, in the 17th century, Baba Budan, an Indian pilgrim to Mecca, smuggled seven coffee beans back home to India. There he planted the beans in the Mysore region, establishing the first coffee plantation in India. By 1840, under British rule, India began to grow coffee for export. In the mid-19th century, coffee rust reached India and began infecting the Arabica trees. By 1869, the rust had become an epidemic. As a reaction to this, many of the farmers replaced the Arabica trees with Robusta, Liberia, or a rust-tolerant hybrid variety of Arabica tree. These more resistant trees are still commonly grown in India. Coffees produced in India have more in common with Indonesian coffees than with coffees from Africa or the Arabian Peninsula. Good Indian coffees are grown in the states of Karnataka (formerly Mysore), Kerala, and Tamilnadu (formerly Madras). In good years these coffees can contain acidity typical of Guatemalan coffee, and the full body of a good Javanese coffee. In addition, these coffees incorporate the unique spicy flavors of nutmeg, clove, cardamom, and pepper. India also produces monsoon coffees, in which the green beans have been exposed to the monsoon winds blowing through open warehouses during India’s rainy season. This process reduces acidity and enhances sweetness, making them similar to Indonesian aged coffees. 2 |Pages H.R. Institute of Higher Education, Hassan.
  3. 3. Bharathi Coffee Curing Works, Hassan. The history of the coffee bean does not want for drama. Since its first documented use and probably long before stories involving coffee have been rife with intrigue, passion, revolution, and idiosyncratic charm. Of Goats and Holy Men Legend has it that the stimulant properties of coffee were discovered sometime before the ninth century by an Abyssinian goatherd named Kaldi. Bored and mischievous, the young man’s goats began snacking on coffee cherries while he napped nearby. Waking to find his goats pirouetting off rocks and the surrounding canyon walls, Kaldi collected a handful of the bright red fruit and hastened home to his village imam. As an experiment, the religious leader boiled the cherries in water and then drank the concoction himself. He became alert and lively, so much so that maintaining wakefulness during evening prayers was uncharacteristically effortless. These stimulating properties made coffee an instant hit among the ranks of the faithful, and its use rapidly became routine. As coffee gained in popularity, the sixteenth-century Mohammedans found reason to complain. Ironically, they considered coffee to be a threat to religious sobriety, especially upon witnessing that followers were more likely to frequent street side cafes than they were to visit the mosques. Consumption was discouraged, and rumors linking the beverage with impotence, among other “ills,” spread wildly. Still, there was no scarcity of coffee drinkers. In fact, the Arabians guarded their beans with extreme jealousy. All coffee beans designated for export were boiled, destroying their ability to germinate and be domesticated outside the region. Although there is unofficial record that one religious pilgrim smuggled a seedling back to India in the early 1600s and planted it behind his hut in the Mysore area (where a great deal of good coffee has grown since), the commercial production of coffee remained under Arab control through the latter part of the century. The Baptism of the Bean Not long after Venetian traders first presented coffee to Europe in 1615, Pope Clement VIII was warned it might prove threatening to the holy aims of the Church. A legislature of priests accused the beverage of being a tool for the devil, designed to lure good worshippers into losing their souls. Curious, the pope requested that his attendants bring a cup of the stuff to him. He found its aroma pleasing and, upon tasting it, became so enamored with the brew that he decided to get the better of the devil by baptizing it, thereby making coffee a “truly Christian beverage.” The ardently entrepreneurial Dutch orchestrated the first successful planting outside Arabia-on the island of Java-in 1699. An initial trial shipment was sent back to Amsterdam in 1706 and included one seedling, which was planted in the botanical gardens. This tiny plant later played the role of parent seedling to the majority of the coffee grown in the western world. 3 |Pages H.R. Institute of Higher Education, Hassan.
  4. 4. Bharathi Coffee Curing Works, Hassan. When coffee so gained in popularity in Germany that it replaced other breakfast beverages, the eighteenth-century ruler Frederick the Great issued a desperate manifesto. “It is disgusting to notice the increase in the quantity of coffee used by my subjects,” he declared, complaining with particular bitterness that the revenues for coffee went to foreign hands while profit from beer came to the crown. “My people,” he protested, “must drink beer.” Johan Sebastian Bach’s famous one-act operetta, the Coffee Cantata, was a thinly veiled operatic criticism of the extraordinary lengths the royalty and upper classes took to keep common folk from enjoying the beverage. The fashionable populations of Vienna and London willingly blessed the beverage as well, although it was a Turkish ambassador’s introduction of coffee to Paris that sparked a veritable explosion of coffee culture. It was rumored that Louis XV spent $15,000 per year on coffee for his daughters. Even the most avid coffee drinkers are astonished to hear that Voltaire supposedly consumed 50 cups a day. Balzac, another devotee among the French literati, applied its exciting properties thusly: He went to bed at six in the evening, slept until midnight, then rose for 12 solid hours of writing, during which time his sole sustenance was coffee. 4 |Pages H.R. Institute of Higher Education, Hassan.
  5. 5. Bharathi Coffee Curing Works, Hassan. History of Coffee In ancient times, the coffee earned a very massive reputation because of its stimulating properties. It was said to provide religious ecstasy. According to popular legends, coffee beans were discovered by a goat herder in Ethiopia some 1000 years back. He noticed that his goats became hyperactive when they consumed berries from a particular shrub when he changed pastures. On consuming the berries himself, he found that it gave him a boost and allowed his to remain active. Monks from nearby religious shrines first condemned him when they saw him dance in ecstasy, but later when they ate the berries themselves, they claimed that it helped them stay awake during prayers. Yet another story goes that in Arabia, a person was banished by his enemies and was driven off to the desert to die of starvation. However, even in a state of delirium, he happened to notice the berries on shrub and tried to soften it with some water. When he didn’t find any success in that, he simply drank that water. This gave him some energy and his survival was treated as a miracle in the nearby village of Mocha. That is how coffee earned the name of ‘Mocha’ as an honor to its energy providing properties. It was around the 15th century that coffee was cultivated in the Yemen province located in Arabia. At that time, Arabia was the primary source of coffee. Coffee beans were traded from Arabia to Alexandria and Constantinople under high security. Fertile plants were not allowed to leave the country and it was kept under strict vigilance. However, Muslim pilgrims managed to quietly smuggle a few plants to their homelands while going on a pilgrimage to Mecca. This is how coffee came to India. The first coffee shop in the world was opened up in Constantinople in 1475. It was more or less during the early 17th century that coffee entered Europe through Venice. The first coffee house in Europe opened up in Italy in 1654. The Dutch gained monopoly over merchant shipping industry in the middle of the 17th century and also introduced large scale coffee cultivation in their colonies in Java, Sumatra, Sulawesi and Bali in Indonesia. Several decades later, coffee was introduced in Latin America by a French naval officer. However, in early 18th century, the coffee plantations in South East Asia were destroyed by a rare plant disease and from then, Brazil emerged as the major coffee producer in the world; something it holds true to this date. In early 19th century, a prototype of the first espresso machine was prepared in France. Coffee then began to be roasted by a process that involved the use of natural gas and hot air. It slowly became the most preferred drink for breakfast and has been maintaining a steady position in the department till date. 5 |Pages H.R. Institute of Higher Education, Hassan.
  6. 6. Bharathi Coffee Curing Works, Hassan. COFFEE INDUSTRY IN INDIA Indian coffee industry is defiantly a huge sized industry which plays a very major role in the world market of coffee. India at present is in 8th place in its contribution of coffee and its plantation in the whole world and 1st place being Brazil. But not all parts of India produces coffee. It is grown mostly in south India and highest part of its growth from the whole India is in Karnataka, that is from districts of Hassan, Chikmagalur and Coorg. Rest is grown in states of Tamilnadu, Andrapradesh, Keral and other northern parts such as Sikkim and Nagaland. So as shown in the next table about the quantity of coffee that is produced in the whole India we come to know that the whole output of India is 2.88 lack tones coffee per anum, more than 2 lack tones is grown only in Karnataka and rest in other parts of India as mentioned in the table below. So among 2.06 lack tones of whole Karnataka’s coffee production, BCCW has a huge contribution to coffee exports among the many competitors in the same business as mentioned earlier. PRODUCTION OF COFFEE IN MAJOR STATES / DISTRICT (ZONES) OF INDIA (IN M / TONS) State / District Year 2006 / 2007 Arabica Robusta Total Karnataka Chikkamagalur 41,550 31,000 72,550 Coorg 21,700 85,800 107,500 Hassan 17,000 8,975 25,975 Total 80,250 125,775 206,025 6 |Pages H.R. Institute of Higher Education, Hassan.
  7. 7. Bharathi Coffee Curing Works, Hassan. OVERVIEW Significant increase both in production and exports notwithstanding, the international coffee market has been experiencing continuous fall in the commodity since the beginning of the current year (2007). The composite indicator prices, according to the Internatioal Coffee Organization’s market report, has dropped to US cents 99.30 per LB in April, 2007 from US cents 105.81 per LB in January this year. Production of coffee during first six months of the coffee year 2006-07 stood at 9.29 million bags in March 2007 signifying an increase of 15 percent from 8.07 million bags recorded during comparable period of CY 2005-06. Exports in the first 6 months of coffee year 2006/07 (Oct-06 to Mar-07) were up over 18 percent from the same period last year - totalling 48.49 million bags compared to 40.98 million bags. Arabica exports in the 6-month period went up by over 13 percent from 27.39 million bags to 31.07 million bags, whereas Robusta exports increased by over 28% from 13.59 million bags to 17.41 million bags. Volume wise, the permits issued for coffee exports in fiscal 2006-07 is the highest ever (2,58,546 tonnes) surpassing the previous best of 2,46,908 tonne of actual exports in 2000-01. Export earnings in fiscal 2006-07 is the highest for the past 8 years i.e. since 1999-2000.The total export earnings will cross Rs.2000 crore for 2006-07. Volume* & Value# of Exports 2002-03 2003-04 2004-05 2005-06 Volume Value Volume Value Volume Value Volume Value Colombian 11.86 1.04 11.43 1.13 12.19 1.72 11.86 1.78 Milds Other Milds 20.86 1.69 20.48 1.91 19.34 2.53 20.46 2.87 Brazilian 25.39 1.53 25.90 1.93 27.85 3.02 26.53 3.26 Naturals Robustas 30.13 1.32 30.92 1.46 30.37 1.71 29.03 2.12 Total 88.24 5.58 88.72 6.44 89.75 8.98 87.87 10.02 * Volume in Million bags# Value in Billion US$ According to ICO Executive Director Néstor Osorio,there are only a few measures that could directly address the supply-demand balance. On the supply side – in view of the political and technical difficulties of supply-management schemes – two policies were possible: (a) to create awareness – best achieved through the ICO – in national and international bodies of the danger of embarking on any projects or programmes which would further increase supply; and (b) working to increase the benefits accruing from value-added products rather than traditional bulk commodity exports. The greatest potential for restoring balance, he pointed out, lay in promoting market development measures to increase demand. These should include: (a) support for the ICO Quality- Improvement Programme as a means of improving consumer appreciation of coffee as 7 |Pages H.R. Institute of Higher Education, Hassan.
  8. 8. Bharathi Coffee Curing Works, Hassan. well as having an associated effect of removing some sub-standard coffees from the supply side of the world coffee equation; (b) action to increase consumption in coffee- producing countries themselves, which should have a number of positive effects such as providing an alternative market outlet, increasing producer awareness of consumer preferences, stimulation of small and medium enterprises, etc., as well as acting to increase demand; (c) action to enhance knowledge and appreciation of coffee in large emerging markets, such as Russia and China, following the successful ICO campaigns in the 1990s; and protecting consumption levels in traditional markets through quality maintenance, development of niche markets and dissemination of positive information on the health benefits of coffee consumption. INDIA: EXPORT HIGHLIGHTS (2006-07) Volume wise, the permits issued for coffee exports in fiscal 2006-07 is the highest ever (2,58,546 tonnes) surpassing the previous best of 2,46,908 tonne of actual exports in 2000-01. The total export volume of 2,58,546 tonne, includes 29052 tonne of re-exports. The permits issued for re-exports in 2006-07 compared to 34813 MTs of actual re-exports in 2005-06 (less by 5761 tonne or 16 per cent) The unit value realization for all types of coffees exported in green bean equivalent in 2006-07 is Rs 79895 per tonne and is the highest for the past eight years i.e. since 1999-2000. As on date, confirmation of exports in 2006-07 is for 221421 tonne for which foreign exchange earnings realized is $ 395.04 million or Rs.1769 crore. Export earnings in fiscal 2006-07 is the highest for the past 8 years i.e. since 1999-2000.The total export earnings will cross Rs.2000 crore for 2006-07. Italy, Russian Federation and Germany are the top three importing countries of coffee from India in 2006-07. Belgium emerged as the fourth biggest importer of coffee from India for the first time. The permits for export of Indian coffee alone in 2006-07 is 229495 tonne compared to 168161 tonne in 2005-06 (Actual exports = 165230 tonnes Source: Federal Ministry of Commerce, Government of India 8 |Pages H.R. Institute of Higher Education, Hassan.
  9. 9. Bharathi Coffee Curing Works, Hassan. COMPANY PROFILE 9 |Pages H.R. Institute of Higher Education, Hassan.
  10. 10. Bharathi Coffee Curing Works, Hassan. 1. BACKGROUND AND INCEPTION OF THE COMPANY Established in the year 1961 and situated in Hassan, Karnataka, the unit is equipped with the most sophisticated machinery for processing green coffee. The unit has an installed annual production capacity of 6000 M. T. The unit can handle process of both Arabica and Robusta Coffee. The unit boasts of having in place a whole lot of power machines like, Precleaner, Destoner, Huller, Peeler, Polisher, Catodor, Oscillating Screens and Electronic Color Sorters. The unit has large and well-built storage areas for storing coffee in good condition and for long durations. The processing unit has a very well trained staff for processing and quality analysis. This facilitates us to produce good quality coffee. This in turn has helped us to have long term association with coffee growers who pool their coffee with us. The unit is recognized and certified by the Coffee Board of India for processing and exports of coffee. This trading venture is engaged in the trading, GREEN Coffee, in both domestic as well as overseas markets. This trading unit specializes in trading of Plantation A, Plantation B, Plantation PB, Plantation C, Arabic Cherry AB, Arabica Cherry PB, Arabica Cherry C, Arabica Cherry Bulk, Robusta Cherry AB, Robusta Cherry PB, Robusta Cherry Bulk coffee. The unit procures processed coffee from its sister concern Bharathi Coffee Curing Works which has in place a very elaborate and good quality control process to ensure high quality coffee beans. The annual turnover is about USD 800,000. Major buyers: Coffy Handels, Germany Fuga AG, Switzerland Volcafe, Switzerland Bernard Rothfos Group Rothfos Corporation, USA Mellow Trading, Dubai Lari Abdulla Ansari and Co., Dubai Ken Cafe Imports, Canada 10 |Pages H.R. Institute of Higher Education, Hassan.
  11. 11. Bharathi Coffee Curing Works, Hassan. Bharathi Associates’ visionary management team has a clear focus on quality, infrastructure, scalability and customer service. Our success story is being written mainly by our highly motivated team. Bharathi Group: Driven By Quality The nearly half-century old Bharathi Group has a fascinating history that dates back to a coffee processing unit set up in Karnataka, India, in 1961. Over the decades, the group has built rich expertise and successful businesses in diverse domains such as agro-processing, exports, healthcare and, now, technology. The thread that ties all these ventures is Quality. From its agricultural roots, the Bharathi Group has transformed itself into a modern, technology-driven conglomerate that provides a range of IT-enabled and Business Process Outsourcing (BPO) services to customers worldwide. Team The team has a rich blend of experienced professionals from across the Agriculture, Microbiology, Engineering, Marketing and Accounts domain. Management Team The management team of Bharathi Associates is headed by its Chairman G.L. Muddegowda, a savvy and respected entrepreneur with several successful ventures in agro-processing, healthcare and medical transcription and now information technology to his credit. Operations are headed by G.M.Vinod. A business management graduate, Vinod is in charge of agri-procurement, processing, and marketing. He has rich experience of well over 20 years in agri-based operations and agri-product processing and marketing. Processing is driven by H.K. Mahendra, a business management graduate who brings with him an experience of well over 15 years in the agri-processing industry. 11 |Pages H.R. Institute of Higher Education, Hassan.
  12. 12. Bharathi Coffee Curing Works, Hassan. 2. VISION, MISSION AND QUALITY POLICY Vission and Mission: “To consistently excel in process automation and quality, create innovative and economical solution and service through consistent employee enrichment” Our Belief: When a firm successfully meets the value expectation of its customers and delivers the same at cost that is lower than that of its copetitors, all the while maintaing the set quality levels, it automatically begins to maximize its own value. Scale new heights in quality computing. Innovate consistently to create economically viable solutions and services. Achieve excellence consistently. Quality Policy: The nearly half-century old Bharathi Group has a fascinating history that dates back to a coffee processing unit set up in Karnataka, India, in 1961. Over the decades, the group has built rich expertise and successful businesses in diverse domains such as agro-processing, exports, healthcare and, now, technology. The thread that ties all these ventures is Quality. Goal: Indian coffee is exported to all parts of the world. But except in India it is no where called as Indian coffee and doesn’t have a name and popularity. So the goal of BCCW is to make the world recognize Indian coffee as Indian coffee and not anything else. 12 |Pages H.R. Institute of Higher Education, Hassan.
  13. 13. Bharathi Coffee Curing Works, Hassan. 3. NATURE OF THE BUSINESS CARRIED Purchase of raw coffee of both Arabica and Robusta from coffee growers of Chickmaglur district, Hassan district and Coorg district. And process the purchased coffee to next process. 13 |Pages H.R. Institute of Higher Education, Hassan.
  14. 14. Bharathi Coffee Curing Works, Hassan. 4. PRODUCT PROFILE Obviously the product is coffee beans and coffee can be mainly divided into two types. ♦ Robusta ♦ Arabica Arabica named for the Arabs, is the better and more expensive of the two. These trees grow in semitropical climates near the equator, both in the western and eastern hemispheres, at high altitudes. Because ripe Arabica cherries (unroasted beans) fall to the ground and spoil, they must be carefully monitored and picked at intervals, which increases production costs. Robusta trees which are grown exclusively in the eastern hemisphere also thrive in equatorial climates, but at low altitudes. Their cherries require less care since they remain on the tree after they ripen. Robusta beans have twice the caffeine of Arabica, but less flavor. Some supermarkets carry Arabica, but most of their brands are Robusta. Coffee shops generally use Arabica beans, but because their brews are so strong. To describe the taste of Arabica is difficult without using trite words like smooth and mellow. It has a round taste that is both rich and delicate, with good acidity. This does not refer to an actual degree of acidity, but to the sharp and pleasing taste that is neither sour nor sweet. In fairness, although most Robusta coffee is of a lower grade and inferior to Arabica, there is a premium crop that is the top of the line for Robusta beans. Premium Robusta is primarily used in specialty espresso blends, and is never found in canned coffee. Though it only constitutes 5-15% of the blend, it is used because these beans add body to the taste and make a nice cream in the shot of espresso. This additional body distinguishes the blend in a cappuccino or latte. Premium Robusta should only be used for espresso and not other brewing methods. If the coffee is Colombian, it will probably be Arabica on the side or back of the package, since this country produces nothing else. Guatemala, El Salvador, Tanzania and Kenya also produce all Arabica beans. Only these 2 varieties are grown in India because of the soil. But there are various subdivisions in these two types of coffee beans depending on its size colour and shape 14 |Pages H.R. Institute of Higher Education, Hassan.
  15. 15. Bharathi Coffee Curing Works, Hassan. Again these two types that is Arabica and Robusta are brought in to BCCW by two ways. ♦ Parchment ♦ Cherry PARCHMENT It means bringing the cleaned beans or already separated and dried coffee beans in to BCCW. Usually this parchment is done by the estate owners through pulper machines which separate the beans from the cherry which are ripen and the beans are cleanly separated from cherry and all the remains are eliminated as waste and then these beans are dried and then transported to BCCW where the further processing of the beans are under taken. CHERRY As the name indicates, it is the raw cherry which is grown in these 2 types of plants. They are directly purchased and brought to BCCW in a ripe cherry form and even removing the bean from the cherry is done by BCCW, head office, Hassan & Chikmagalur after bringing to BCCW. Here the work will be more to this curing works as it is brought in raw form Arabica is grown from December to March and these four months are considered the best season for growing Arabic and plucking. Most of Arabica beans are exported to USA (New York) Robusta season is from Feb/Mar to May every year and considered best for these beans (coffee). Most of Robusta coffee is exported to Switzerland. Arabica parchment is plucked in 3 rounds I Round :- Plucking of coffee from plants when they are fully ripe and ready to pack. II Round :- Plucking of half ripe coffee beans III Round :- Plucking of cherry 15 |Pages H.R. Institute of Higher Education, Hassan.
  16. 16. Bharathi Coffee Curing Works, Hassan. Arabica coffee is strong and doesn’t fall down form the plant even due to heavy rains. It has to be plucked. Arabica coffee is more costly than Robusta because of its strong flavors and taste. Robusta coffee is lighter in nature and will easily fall off from the plant due to rains. So more care has to be taken with this breed. Table showing different types and sub divisions of coffee beans Arabica Arabica Robusta Robusta Parchment Cherry Parchment Cherry AAA AA AA AA AA A A A A AB AB AB B C C C C PB PB PB PB BB BB BB BB Bits Bits Bits Bits EB AAA = Triple A AA = Double A PB = P Berry BB = Black Berry EB = Elephant Berry After all the above various types of coffee beans, there is also one more type of coffee known as specialty coffee. These coffees are produced by grinding two or more types of coffee beans together. As in the chart consisting types of beans Arabica AAA may be grinded with Arabica AB or PB, also with the varieties of Robusta parchment & cherry likewise by combining all types of coffee beans with each other using probabilistic methods results in birth of specialty coffee. There is also a type known as MONSOONED COFFEE. 16 |Pages H.R. Institute of Higher Education, Hassan.
  17. 17. Bharathi Coffee Curing Works, Hassan. Known across the world, as unique coffees processed as per centuries old traditions, “Monsooned coffee” was first produced quite by accident. In the earlier days, coffee shipped from India to Europe took almost six months to reach its destination. During that shipping process, the humidity at sea changed the beans allowing it to acquire a distinct rich, mellow taste and a unique golden look. With the coffee beans ‘swelling’ due to the moisture in the air, a new kind of coffee was born - Monsooned Coffee. Today, this entire flavour and experience is recaptured by the special process of “monsooning”. The Monsooning process reforms the colour and the physical characteristics of cherry coffee. The colour is changed to a golden yellow. The beans swell in size and the bulk density is reduced. The cherry/fruity taste disappears and the liquor is soft, rich, velvety smooth and mellow with light acidity and a pleasant earthy flavor. In this case the coffee beans are dried in a humid atmosphere which results in a unique golden look on the coffee beans and a mellow taste which is rich in flavor. It also results in a slight swelling of the coffee beans. This is usually done in costal areas where the temperature is very humid. Even Monsooned coffee has different types such as Monsooned arabica AA Monsooned arabica Basanaly Monsooned arabica Triage Monsooned Robusta AA 17 |Pages H.R. Institute of Higher Education, Hassan.
  18. 18. Bharathi Coffee Curing Works, Hassan. 5. WORK FLOW MODEL Hulling, Grading and Garbling The machinery installed at the curing factory for the various curing operation are as follows:- 1. Dust/Twig/Stone separator 2. Huller 3. Pillar cum polisher 4. Winnower 5. Unpeeled coffee separator 6. Grader 7. Catador 8. Specific gravity separator 9. Pneumatic separator 10. P B Band separator 11. Bucket elevators 12. Electronic colour sorting machine Steps involved in the Hulling and Grading of coffee The raw coffee is first passed through a Stone/Stick Eliminator where foreign raw material like stone, sticks, twigs etc are removed. The coffee is then passed in to Huller/Peeler cum Polisher and from there on to the horizontal or vertical winnower. The coffee is next allowed in to pre-grader, where the bits are separated. It then passes through the sizes (grades) , where the grades of coffees such as P B, A,B&C are separated .Increase a pre grader is not installed , the coffee may be directly passed on to the seizers where bits could be separated. There after the coffee is subjected to Garbling/Sorting , outturning, building etc. Hulling and Peeling The cherry coffee are hulled using “Hullers” and the parchment coffee are peeled by “Peelers”, and the subjected to polishing. Grading Primary grading is carried out based on the rise of beans. This is carried out on a rotary grader. Secondary grading is done based on Dens metric classification of individual graders. Catadars and Gravity separator are used for Dens metric classification of coffee. Garbling/Sorting The sorting of defective beans and discloser beans is carried out manually by women garblers. In many of curing factories, Electronic color sorting machine are also 18 |Pages H.R. Institute of Higher Education, Hassan.
  19. 19. Bharathi Coffee Curing Works, Hassan. used for the sorting of discolored beans viz, Blacks, Browns. The electronic color sorting machines are complimentary to manual garbling process. Out turning After the garbling process, the coffee lot is outturned and quantity of each of the grades weighted and recorded Packing Double gunny bags used for the packing of cured coffee. The type of gunny bag used is of the “B-TWIIF” of “DW” quality. The coffee is packed in quantity of 75kg/ bag. Storage of coffee Drying capacity, Machine capacity and Storage capacity are important requisites, which determine the curing capacity of a curing factory. The storage capacity of a curing factory is calculated based on certain norms fixed by Board which are as follows: The flour area requires for storing raw coffee (uncured) equivalent to one tonne of clean coffee is 13.5sqft . When height of a godown is 15ft in terms of volume the space required for storing raw coffee equivalent to 1 ton of clean coffee is 202.5cubicft. The flour area require for storing 1 ton of clean coffee is 7.5sqft for wall height of 14ft. In terms of volume the space required for storing 1 ton of clean coffee is 105cubicft. Method of Calculation of Basic Storage Capacity Godown space require for storing uncured coffee equivalent tone ton of clean coffee 202.2 cubic feet Space required for storing one ton of cured 105.0 cubic feet coffee 19 |Pages H.R. Institute of Higher Education, Hassan.
  20. 20. Bharathi Coffee Curing Works, Hassan. For curing works in Karnataka Ratio between the quantity of raw coffee and the quantity of clean coffee in storage 75:25 Ratio between the godown space occupied by the raw coffee and clean coffee 85:15 Example: Total volume of godown available of 100000 cubic feet storing of coffee 20 |Pages H.R. Institute of Higher Education, Hassan.
  21. 21. Bharathi Coffee Curing Works, Hassan. 6. FUNCTIONAL AREAS Here in this chapter the functional areas of BCCW, Hassan head office has been covered and matters relating to people in the organization, systems and procedure adopted in the functioning of the organization, polices followed for the maintenance of the organization and also the production procedure which followed in the organization is mentioned in detail. PEOPLE People are considered one of the most important asset of BCCW. The whole company is successful through a huge chain of people who mange the functioning of this company. Even in Hassan head office of BCCW people management is done to certain extent. There are about 35 people from top to bottom (permanent and temporary staff) which exclude the contractual labour who may differ from 130 to 150 or 200 depending on the work in on season and off season of coffee growth. Pay for the people may vary from Rs.5000 to Rs.85000 (excluding the contractual labour) depending on the person’s position in the organization. Labourers are paid depending on their work rate which may also differ seasonally. The recruitment of people until the assistant general manager post and also the pay to them is done directly by the president and other head authorities directly from office of BCCW and the recruitment and pay for the general staff, sub-staff and the labourers is managed by the senior general managers and assistant general managers in Hassan. Usually experienced people with high skills are selected and qualification must be Charted Accountant (CA) and Master of Business Administration (MBA) of the people who get selected for such high post and HR management is done by HR managers through out the company. Apart from the people with in the organization, BCCW in Hassan also manages a chain of agent related to it. These agents are situated in most part of Hassan, Chikmagalur and Coorg districts. These agents have the job to convince the estate owners to sell their coffee to BCCW and should keep them inform about the advantages and the prevailing prices of coffee as per the bag rate in BCCW. There are about 40 to 42 agents of BCCW head office, Hassan who are also provided with small warehouses of about 100 baggage capacity and are paid commission for acting as an attractive link between the estate owners and BCCW. And these entire agents are personally managed by Hassan head office of BCCW. 21 |Pages H.R. Institute of Higher Education, Hassan.
  22. 22. Bharathi Coffee Curing Works, Hassan. POLICIES There are many policies which are followed such as Company policy to bare the transportation expenses of estate owners. Policy of good customer relationship maintenance. Maintaining good relationship with the agents of BCCW. Controlling agents in such manner so that they should loyally do their agent work only to BCCW & not indulge with any of its competitors. Providing fringe benefits to all its employees and customers etc. SYSTEMS & PROCEDURES Now man has taken up the challenge with exceptional care in nurturing the coffee, highly selective picking, perfection in curing, exactitude in roasting and mastery in blending. Under this we come to know about what actually happens in BCCW Hassan and how the curing works takes place. First of all the raw coffee beans (parchment or cherry) are brought into BCCW Hassan head office and stored into big warehouses. This raw coffee is brought from the own plantation of BCCW and also through the help of agents who supply coffee of many other estate owners. The procurement process takes place. The cherries are converted into coffee bean by pulper machines and parchment is done. Next under procurement, the coffee seeds go through a quality checking process where the right moisture content in the coffee beans is checked and all the coffee beans are brought into right moisture condition before they are entered into the production process. The appropriate moisture content in the coffee beans which should be present before the coffee goes into production process is Parchment – The moisture content should differ from between 10.5% to 11.5% Cherry – The moisture content should differ from between 11% to 12%. This is done by drying the coffee beans in sun and preparing them for the production process. 22 |Pages H.R. Institute of Higher Education, Hassan.
  23. 23. Bharathi Coffee Curing Works, Hassan. Production Process ♦ The dried coffee is transferred to hulling machines. These CNC machines carry on the process of DEHASKING, that is removal of the skin from coffee beans and the skin is removed as waste. These machines are 3 in number and 1 is imported from Buler Comp, Germany costing Rs. 40 lacks. Other 2 are Indian made & costs Rs. 25 lacks each. ♦ Next polishing of coffee beans takes place to bring the smooth texture and shiny look in coffee beans. ♦ After that these polished coffee beans enter a colour sorting machine which differentiate green coffee beans from black. Green coffee is more costly and is considered as proper bread with good quality whereas black beans are considered as low quality coffee. 23 |Pages H.R. Institute of Higher Education, Hassan.
  24. 24. Bharathi Coffee Curing Works, Hassan. These colour sorting machines are imported from USA and is worth Rs.40 lacks. ♦ Next the coffee enters the roasting machines and is roasted to get the original look and colour of coffee. The roasting machine is worth Rs.80 lacks and is imported from Germany. This roasting process is one of the most important process in coffee curing where the real colour and taste of coffee is emerged. ♦ After roasting, GARNING is done by manual labours and defectives are removed. ♦ Grading of coffee is done and are separated according to its size, colour and appearance and are given quality names such as AAA, AA, PB, BB etc ♦ Each different type is loaded and packed into bags and rates are based on bag. The baggage quantities of each bag are as follows. ⇒ Unprocessed coffee-50 kgs/bag ⇒ Processed coffee-75 kgs/bag (domestic dealings) ⇒ Processed coffee-60 kgs/bag (export dealings) 24 |Pages H.R. Institute of Higher Education, Hassan.
  25. 25. Bharathi Coffee Curing Works, Hassan. Each types of coffee is placed in different places in warehouses and as and when the export orders are placed in Banglore, coffee is loaded into containers, weighed to know the requirement and the trucks are sent to Banglore which are checked again and further sent to Chennai port for shipment and export. 25 |Pages H.R. Institute of Higher Education, Hassan.
  26. 26. Bharathi Coffee Curing Works, Hassan. 7. AREA OF OPERATION Anywhere in India for domestic sales and export sales it depends on the buyers interest presently Bharathi Coffee Curing Works is exporting the Germany, Switzerland, United States of America, Dubai And Canada. 26 |Pages H.R. Institute of Higher Education, Hassan.
  27. 27. Bharathi Coffee Curing Works, Hassan. 8. COMPITITORS As every other industry, even the coffee industry has lots of competitors. But the competitors of BCCW are divided into 2 main groups as follows Competitors in procurement or curing Competitors in domestic market The competitors in procurement or curing work of coffee beans are many in the field. These competitors also indulge in import/export of coffee beans as BCCW. Some of the competitors in this field for BCCW are Allana coffee curing works Jayanthi group Amalgamated Been Coffee Trading Company Ltd. Madhu Coffee Curing Works Best Coffee Curing Works. In domestic market there are lots of retailers who compete with BCCW in the domestic market. Even though only 10% of BCCW’s products are marketed in domestic market, there are lots of competitors even to compete for this 10% of coffee products of BCCW. Some of these competitors are Narsus coffee Hindustan Unilever. TATA coffee 27 |Pages H.R. Institute of Higher Education, Hassan.
  28. 28. Bharathi Coffee Curing Works, Hassan. 9. ORGANIZATION STRUCTURE As the company is very vast in its size only a part of company is covered, that is the head office of BCCW in Hassan. BCCW HEAD OFFICE - HASSAN As mentioned earlier, the head office of BCCW situated in Bangalore – Managalore Road (National Highway-48) in Hassan has its main work in procurement of coffee beans and is an export oriented unit which is controlled by the corporate office of Bangalore to certain extinct. 90% of the coffee dealings of BCCW in its exports and rest 10% of it are in domestic dealings. So the head office at Hassan plays very important role in success of BCCW. Even many domestic dealings of BCCW are carried on by head office in Hassan such as supply to all its fresh and ground outlets in and around Hassan district. So here the organization hierarchy of BCCW Hassan is shown in the next chart from peoples authority shown from top to bottom. 28 |Pages H.R. Institute of Higher Education, Hassan.
  29. 29. Bharathi Coffee Curing Works, Hassan. 10. ORGANIZATION CHART Chairman General Manager Manager Manager Production and Administation Sales and Export Asst. Manager Asst. Manager Asst. Manager Asst. Manager Production Administation Sales Exports Quality Office Office Office Controller Superintendent Superintendent Superintendent Sampler Supervisor Supervisor Supervisor Clerical Sales Export Helper Staff Executives Executives Office Office Office Office Assistants Assistants Assistants Assistants 29 |Pages H.R. Institute of Higher Education, Hassan.
  30. 30. Bharathi Coffee Curing Works, Hassan. 11. FUTURE GROWTH AND PROPECTUS Indian coffee is exported to all parts of the world. But except in India it is no where called as Indian coffee and doesn’t have a name and popularity. So the goal of BCCW is to make the world recognize Indian coffee as Indian coffee and not anything else. 30 |Pages H.R. Institute of Higher Education, Hassan.
  31. 31. Bharathi Coffee Curing Works, Hassan. MCKINSEY’S 7S MODEL 31 |Pages H.R. Institute of Higher Education, Hassan.
  32. 32. Bharathi Coffee Curing Works, Hassan. McKinsey’s 7S model with special reference to Organization Study The 7-S Framework of McKinsey’s is a Value Based Management (VBM) model that describes how one can holistically and effectively organize a company. Together these factors determine the way in which a corporate operates. The 7S framework first appeared in the “ The Art of Japanese Management” by Richard Pascal and Anthony Athos in 1981.They had been looking at how Japanese industry had been so successful, at around the same time that Tom Peters and Robert Waterman were exploring what made a company excellent. The 7 S models were born at a meeting of four authors in 1978. It went on to appear in “In Search Of Excellence” by Peters and Waterman and was taken up as a basic tool by the Global Management Consultancy firm McKinsey. To be effective, the organization must have a high degree of fit, internal alignment amongst all the 7S’s. All S’s are inter-related and a change in one has a ripple effect on all the others. It’s impossible to make progress on one without making progress on all. Thus, to improve any organization, one has to pay attention to all of the seven elements at the same time. There is no starting point or implied hierarchy. Those seven elements are distinguished in so called Hard S’s and Soft S’s. The hard elements are feasible and easy to identify. They can be found in strategy statements, corporate plans and organizational charts and other documentations. The four soft S’s however, are difficult to describe since capabilities, values and elements of corporate culture are continuously developing and changing. They are highly determined by the people at work in the organization. Therefore it is much more difficult to plan or to influence the characteristics of the soft elements. Although the soft factors are below the surface, they can have a great impact on the hard structure, strategies and systems of the organization. This paper discusses McKinsey’s 7S Model that was created by the consulting company McKinsey and Company in the early 1980s. Since then it has been widely used by practitioners and academics alike in analysing hundreds of organisations. The paper explains each of the seven components of the model and the links between them. It also includes practical guidance and advice for the students to analyse organisations using this model. At the end, some sources for further information on the model and case studies available on this website are mentioned. The McKinsey 7S model was named after a consulting company, McKinsey and Company, which has conducted applied research in business and industry (Pascale & Athos, 1981; Peters & Waterman, 1982). All of the authors worked as consultants at McKinsey and Company; in the 1980s, they used the model to analyse over 70 large organisations. The McKinsey 7S Framework was created as a recognisable and easily remembered model in business. The seven variables, which the authors term “levers”, all begin with the letter “S”: 32 |Pages H.R. Institute of Higher Education, Hassan.
  33. 33. Bharathi Coffee Curing Works, Hassan. These seven variables include structure, strategy, systems, skills, style, staff and shared values. Structure is defined as the skeleton of the organisation or the organisational chart. The authors describe strategy as the plan or course of action in allocating resources to achieve identified goals over time. The systems are the routine processes and procedures followed within the organisation. Staff are described in terms of personnel categories within the organisation (e.g. engineers), whereas the skills variable refers to the capabilities of the staff within the organisation as a whole. The way in which key managers behave in achieving organisational goals is considered to be the style variable; this variable is thought to encompass the cultural style of the organisation. The shared values variable, originally termed superordinate goals, refers to the significant meanings or guiding concepts that organisational members share (Peters and Waterman, 1982). The shape of the model (as shown in figure 1) was also designed to illustrate the interdependency of the variables. This is illustrated by the model also being termed as the “Managerial Molecule”. While the authors thought that other variables existed within complex organisations, the variables represented in the model were considered to be of crucial importance to managers and practitioners (Peters and Waterman, 1982). The analysis of several organisations using the model revealed that American companies tend to focus on those variables which they feel they can change (e.g. structure, strategy and systems) while neglecting the other variables. These other variables (e.g. skills, style, staff and shared values) are considered to be “soft” variables. Japanese and a few excellent American companies are reportedly successful at linking their structure, strategy and systems with the soft variables. The authors have concluded that a company cannot merely change one or two variables to change the whole organisation. For long-term benefit, they feel that the variables should be changed to become more congruent as a system. The external environment is not mentioned in the McKinsey 7S Framework, although the authors do acknowledge that other variables exist and that they depict only the most crucial variables in the model. While alluded to in their discussion of the model, the notion of performance or effectiveness is not made explicit in the model. Description of 7S’s The Hard S’s Strategy: Strategy is the plan of action an organisation prepares in response to, or anticipation of, changes in its external environment. Strategy is differentiated by tactics or operational actions by its nature of being premeditated, well thought through and often practically rehearsed. It deals with essentially three questions (as shown in figure 2): 1) where the organisation is at this moment in time, 2) where the organisation wants to be in a particular length of time and 3) how to get there. Thus, strategy is designed to transform the firm 33 |Pages H.R. Institute of Higher Education, Hassan.
  34. 34. Bharathi Coffee Curing Works, Hassan. from the present position to the new position described by objectives, subject to constraints of the capabilities or the potential (Ansoff, 1965). Structure: Business needs to be organised in a specific form of shape that is generally referred to as organisational structure. Organisations are structured in a variety of ways, dependent on their objectives and culture. The structure of the company often dictates the way it operates and performs (Waterman et al., 1980). Traditionally, the businesses have been structured in a hierarchical way with several divisions and departments, each responsible for a specific task such as human resources management, production or marketing. Many layers of management controlled the operations, with each answerable to the upper layer of management. Although this is still the most widely used organisational structure, the recent trend is increasingly towards a flat structure where the work is done in teams of specialists rather than fixed departments. The idea is to make the organisation more flexible and devolve the power by empowering the employees and eliminate the middle management layers (Boyle, 2007). Systems: Every organisation has some systems or internal processes to support and implement the strategy and run day-to-day affairs. For example, a company may follow a particular process for recruitment. These processes are normally strictly followed and are designed to achieve maximum effectiveness. Traditionally the organisations have been following a bureaucratic-style process model where most decisions are taken at the higher management level and there are various and sometimes unnecessary requirements for a specific decision (e.g. procurement of daily use goods) to be taken. Increasingly, the organisations are simplifying and modernising their process by innovation and use of new technology to make the decision-making process quicker. Special emphasis is on the customers with the intention to make the processes that involve customers as user friendly as possible (Lynch, 2005). The Soft S’s Style/Culture: All organisations have their own distinct culture and management style. It includes the dominant values, beliefs and norms which develop over time and become relatively enduring features of the organisational life. It also entails the way managers interact with the employees and the way they spend their time. The businesses have traditionally been influenced by the military style of management and culture where strict adherence to the upper management and procedures was expected from the lower-rank employees. However, there have been extensive efforts in the past couple of decades to change to culture to a more open, innovative and friendly environment with fewer hierarchies and smaller chain of command. Culture remains an important consideration in the implementation of any strategy in the organisation (Martins and Terblanche, 2003). 34 |Pages H.R. Institute of Higher Education, Hassan.
  35. 35. Bharathi Coffee Curing Works, Hassan. Staff: Organisations are made up of humans and it’s the people who make the real difference to the success of the organisation in the increasingly knowledge-based society. The importance of human resources has thus got the central position in the strategy of the organisation, away from the traditional model of capital and land. All leading organisations such as IBM, Microsoft, Cisco, etc put extraordinary emphasis on hiring the best staff, providing them with rigorous training and mentoring support, and pushing their staff to limits in achieving professional excellence, and this forms the basis of these organisations’ strategy and competitive advantage over their competitors. It is also important for the organisation to instil confidence among the employees about their future in the organisation and future career growth as an incentive for hard work (Purcell and Boxal, 2003). Shared Values/Superordinate Goals: All members of the organisation share some common fundamental ideas or guiding concepts around which the business is built. This may be to make money or to achieve excellence in a particular field. These values and common goals keep the employees working towards a common destination as a coherent team and are important to keep the team spirit alive. The organisations with weak values and common goals often find their employees following their own personal goals that may be different or even in conflict with those of the organisation or their fellow colleagues (Martins and Terblanche, 2003). McKinsey’s 7S Model 35 |Pages H.R. Institute of Higher Education, Hassan.
  36. 36. Bharathi Coffee Curing Works, Hassan. Using the 7S Model to Analyse an Organisation A detailed case study or comprehensive material on the organisation under study is required to analyse it using the 7S model. This is because the model covers almost all aspects of the business and all major parts of the organisation. It is therefore highly important to gather as much information about the organisation as possible from all available sources such as organisational reports, news and press releases although primary research, e.g. using interviews along with literature review is more suited. The researcher also needs to consider a variety of facts about the 7S model. Some of these are detailed in the paragraphs to follow. The seven components described above are normally categorised as soft and hard components. The hard components are the strategy, structure and systems which are normally feasible and easy to identify in an organisation as they are normally well documented and seen in the form of tangible objects or reports such as strategy statements, corporate plans, organisational charts and other documents. The remaining four Ss, however, are more difficult to comprehend. The capabilities, values and elements of corporate culture, for example, are continuously developing and are altered by the people at work in the organisation. It is therefore only possible to understand these aspects by studying the organisation very closely, normally through observations and/or through conducting interviews. Some linkages, however, can be made between the hard and soft components. For example, it is seen that a rigid, hierarchical organisational structure normally leads to a bureaucratic organisational culture where the power is centralised at the higher management level. It is also noted that the softer components of the model are difficult to change and are the most challenging elements of any change-management strategy. Changing the culture and overcoming the staff resistance to changes, especially the one that alters the power structure in the organisation and the inherent values of the organisation, is generally difficult to manage. However, if these factors are altered, they can have a great impact on the structure, strategies and the systems of the organisation. Over the last few years, there has been a trend to have a more open, flexible and dynamic culture in the organisation where the employees are valued and innovation encouraged. This is, however, not easy to achieve where the traditional culture is been dominant for decades and therefore many organisations are in a state of flux in managing this change. What compounds their problems is their focus on only the hard components and neglecting the softer issues identified in the model which is without doubt a recipe for failure. Similarly, when analysing an organisation using the 7S model, it is important for the researcher to give more time and effort to understanding the real dynamics of the organisation’s soft aspects as these underlying values in reality drive the organisations by affecting the decision-making at all levels. It is too easy to fall into the trap of only concentrating on the hard factors as they are readily available from organisations’ reports etc. However, to achieve higher marks, students must analyse in depth the cultural dimension of the structure, processes and decision made in an organisation. 36 |Pages H.R. Institute of Higher Education, Hassan.
  37. 37. Bharathi Coffee Curing Works, Hassan. For even advanced analysis, the student should not just write about these components individually but also highlight how they interact and affect each other. Or in other words, how one component is affected by changes in the other. Especially the “cause and effect” analyses of soft and hard components often yield a very interesting analysis and provides readers with an in-depth understanding of what caused the change. 37 |Pages H.R. Institute of Higher Education, Hassan.
  38. 38. Bharathi Coffee Curing Works, Hassan. 1. Oraganizational Structure Chairman General Manager Manager Manager Production and Administation Sales and Export Asst. Manager Asst. Manager Asst. Manager Asst. Manager Production Administation Sales Exports Quality Office Office Office Controller Superintendent Superintendent Superintendent Sampler Supervisor Supervisor Supervisor Clerical Sales Export Helper Staff Executives Executives Office Office Office Office Assistants Assistants Assistants Assistants 38 |Pages H.R. Institute of Higher Education, Hassan.
  39. 39. Bharathi Coffee Curing Works, Hassan. 2. Oraganizational Skills A skill is the ability, knowledge, understanding and judgment to accomplish a task. Skills may be defined as what the company does best; the distinctive capabilities and competencies that reside in their organization. The organization selects and assigns personnel performing work affecting product quality based on appropriate education skills and experience. The organization has also a system to assess the competence of its personnel on periodic basis to identify gap in the performance, if any as well as assessing their training needs to bridge the gap. Identification of Training Needs: Training needs may be new training or re-training these are identified once in a year by department heads of their employees through appraisal system. New employees or an employee who has assigned new jobs are identified and given needed training. Training needs of their employee through appraisal system. New training needs of their employees through appraisal system new employees or an employee who has assigned new jobs are identified for training. Training needs are considered at 3 levels: * Individual level * Department level * Organization level On the job training: These are types of training given to the employees at the working hours. * Training regarding grading. * Hygiene training. * Assistance by senior employees. Off the job training: These are types of training given to the employees in the leisure hours. * Speeches * Lectures * Visuals training 39 |Pages H.R. Institute of Higher Education, Hassan.
  40. 40. Bharathi Coffee Curing Works, Hassan. 3. 4Strategy Strategy is a plan an organization formulates to gain a substantial advantage over the competition. Strategy is the art of dividing and employing a system of activity that mobilizes all resources towards a valuable goal. It is the determination of basic long term goal and objective of an enterprise, and the adoption of course of action and the allocation of resources available for carrying out these goals. Pricing strategy Price is an important element as it is revenue generating element of the organization. All the decisions related to pricing plays an important role because demand is inversely proportional to price. Price is a competitive weapon, price also determining to profitability of the company. As a result pricing has become an important managerial function of marketing. Pricing strategy of BCCW The pricing depends on market fluctuations. The market price is generally 10 % more than the cost of production, which includes total expenditure. There is no credit facility formally. Payment is done on mutual understanding though 30 days are allowed for payment or through advance payment. There are no direct customers. 40 |Pages H.R. Institute of Higher Education, Hassan.
  41. 41. Bharathi Coffee Curing Works, Hassan. 4. Style In BCCW most of the decisions are taken by Chairman of the firm, they follow Top Down Style. In the absence Maganers of the respective department takes decision. Chairman General Manager Manager of the Dept. Assistant Manager Office Superintendent Supervisors Employees In BCCW they follow Authoritarian style in decision making. The major decision regarding operation of the firm are taken by Chairman. Other decisions involving higher cash flows are participative taken involving Managers and other officials. 41 |Pages H.R. Institute of Higher Education, Hassan.
  42. 42. Bharathi Coffee Curing Works, Hassan. 5. SYSTEM Systems are the processes and information flow that link the organization together. They include formal and informal procedures that govern day-to-day activity covering everything from management information systems at the point of contact with the customer. The formal and informal procedures, including innovation systems, compensation systems, management information systems, capital allocation systems that govern everyday activity. Inventory Control System Inventories are valued providing for obsolescence, as under : * Raw materials, production consumables, construction material and store and spares are valued at low cost (computed on weighted average basis.) and net realizable value. * Finished goods, semi finished goods and work in progress is valued lower than cost and net realizable value. Cost for this purpose includes direct material, direct labour, excise duty and appropriate overheads for bringing the inventory to its present location and condition. 42 |Pages H.R. Institute of Higher Education, Hassan.
  43. 43. Bharathi Coffee Curing Works, Hassan. 6. STAFF BCCW Staff are classified as follow: * Technical staff. * Clerical staff. * Production staff. * Labourers. Duties and Responsibilities Technical staff: Clerical staff: * Machineries check * Accounting * Quality maintenance * Maintaining records Production staff: Labourers: * Supervisory duties * Manufacturing. * Raw material handling * Loading. * Material handling. * Processing 1. Every employee shall at all times diligently and faithfully serve the company and shall devote his whole time and attention exclusively to the business and interest of the company and to the best of his skill carry out his duties and shall attend work punctually at the place where he is posted. Every employee shall hold himself in readiness to perform any duties required of him by his superiors to the best of his ability. 2. An employee shall not directly or indirectly engage in any other profession or enter the services for any part of his time . 3. Employees must not enter or pass through departments other has those in which they are employed unless it is necessary in the course of their duties to do so. 4. Each employee shake keep his machine or work place clean and tidy. 5. Any breach by the employee shall be constrained as act of misconduct and the employee shall be liable to punishment in accordance to company rules. 43 |Pages H.R. Institute of Higher Education, Hassan.
  44. 44. Bharathi Coffee Curing Works, Hassan. 7. SHARED VALUES Shared values guide employees towards desired behavior originally called super ordinate goals; the guiding concepts and principles of the organization – values and aspirations, often unwritten – that go beyond the conventional statements of corporate objectives. The fundamental ideas around which a business is built; the things that influence a group to work together for a common aim. Shared values are what engender trust values are the identity by which a company is kwon throughout its business areas. These values must be explicitly stated as both corporate objectives and individual values. These are the company level beliefs, mindsets and assumptions that shape how an organization behaves. 44 |Pages H.R. Institute of Higher Education, Hassan.
  45. 45. Bharathi Coffee Curing Works, Hassan. SWOT ANALYSIS 45 |Pages H.R. Institute of Higher Education, Hassan.
  46. 46. Bharathi Coffee Curing Works, Hassan. SWOT ANALYSIS Here is the analysis about the Strengths, Weaknesses, Opportunities and Threats of BCCW. STRENGTHS: The biggest strength of BCCW is that it is the only company in coffee industry with a complete chain of coffee operations. BCCW carries its operations right from the growing of coffee to the consumption of coffee by the final consumer. It grows coffee in its own land, procures it, carries productions, exports it, produces ready coffee products and has also conquered the domestic market. All its competitors are indulged only in few activities but BCCW manages a complete chain of its operation. Among BCCW’s biggest strengths are the two curing works, strategically located in Chikmagalur and Hassan with a combined installed capacity of 1 million bags. Having our own curing works aids in enabling complete control over grading standards and flexibility. Thus ensuring quality and efficiency. A highly disciplined and dedicated network of over 42 agents who operate throughout the major coffee growing areas of India form the back bone for our coffee procurement chain. Our vertically integrated infrastructure ensures that the coffees never need to leave the able hands of BCCW until final dispatch/shipment. Strength may be its size. As it is one of the biggest coffee curing company, it has even advantage in price stabilization (volatility). WEAKNESS: There are no major weaknesses but one of its weakness is the higher quality coffees in the world market such as Brazilian coffee, Kenyan coffee etc.. which are of the best quality and rate in the world market of coffee. 46 |Pages H.R. Institute of Higher Education, Hassan.
  47. 47. Bharathi Coffee Curing Works, Hassan. OPPORTUNITIES: The overseas market demand for coffee is one of the biggest opportunities for BCCW. The demand by European countries and many other countries of the world for Indian coffee has created and also creates huge market in future. Globalization and liberalization has played a very important role in these overseas dealings of BCCW. THREATS: New entrants in Indian market for coffee are one of the biggest threat for BCCW. However it has not yet been a possibility because of its high costs. Other than that here is a threat of changing quality of coffee and its rates due to natural reasons. Change in money value in foreign exchange is also a threat to BCCW. SWOT ANALYSIS OF BCCW STRENGTHS WEEKNESS Huge demand for coffee products. Inadequate Transportation Availability of Raw coffee Focus only on Rural Segment Man Power New employees have less social Location security. OPPERTUNITIES THREATS To export its products to other Market uncertainty countries Competition New product innovation Employment 47 |Pages H.R. Institute of Higher Education, Hassan.
  48. 48. Bharathi Coffee Curing Works, Hassan. LEARNING EXPERIENCE 48 |Pages 51 H.R. Institute of Higher Education, Hassan.
  49. 49. Bharathi Coffee Curing Works, Hassan. Learning Experience It is a very good opportunity to correct or evaluate our self how capable we are to adopt new changes or interested to learn the things in real or actual working conditions. When we enter the organization the atmosphere itself teaches what we have to do and what are all the duties and responsibilities. In BCCW, I was thought how things works in an organization, how the decision –making is done and on what basis is done. In BCCW the co-ordination between the employees will create a unity among employers which is very helpful in decision making and building a good future to the organization & carry out the business in a right way. Uniformity which is very essential elements that management should maintain among their employees & outlook of an employee will also create a impression on the minds of other about their taste, preference, values & principles. Punctual and honesty are the other important thing that I learnt in the organization. I was thought how to handle the situation when there is trouble in the business operations and how to overcome from it . Finally I had a practical experience of real world organization and how things works in the organization. OBJECTIVES The following are some of the objectives of BCCW. ⇒ Foreign dealings improvements and maximization. ⇒ Revenue maximization. ⇒ Creating a monopolistic market in India. ⇒ Adopt new methods for profit maximization. ⇒ Promote Indian coffee market. ⇒ To provide the consumer a superior coffee-chicory blend that he or she has been drinking till date. ⇒ To provide a superior product than what others have been offering. ⇒ To be available in every possible retail outlet which ensures convenience and ease in availability. ⇒ To provide the best quality of coffee- chicory blend at value for money prices. 49 |Pages 52 H.R. Institute of Higher Education, Hassan.
  50. 50. Bharathi Coffee Curing Works, Hassan. FINDINGS The following are some of the findings as per me by working in BCCW. It is highly successful in the world coffee market and has grabbed huge share of export market of coffee in India. It is the aim of BCCW to make Indian coffee popular all over the world. A highly disciplined coffee procurement network which has been established, natured over the liberated years following 1961. All the market restructuring & disturbances are handled by high flexibility of production in its curing stations having over 1 million bags capacity. It has its complete control over grading standards and market needs. It is managed by highly skilled and professional people in all its departments which has resulted in success of BCCW. DRAWBACKS But there is no business without drawbacks. Even BCCW has few drawbacks as any other business and this is noticed by me personally. The procurement process goes very accurately as mentioned above but only to a certain extinct. It means, until the beans are processed in machines, technology is used to highest extinct. But after the beans come out of machines completing all the processes usage of technology becomes nil. The rest of the work is totally done by manual labours which I feel is a waste of time and money to a certain extinct. Processes such as separations of different varieties of beans, grading, filling them into bags and also loading into trucks is done by human labour for which technology can be used. 50 |Pages 53 H.R. Institute of Higher Education, Hassan.
  51. 51. Bharathi Coffee Curing Works, Hassan. RECOMMENDATION Further new improved machines can be installed to carry on the process of bagging, separations etc.. For loading the bags into trucks, tread mill kind of machines can be used which reduces the effort and number of manual labour and speed can be picked up. A good office automation process may be carried out by replacement of outdated computers and a improved internet network within the organization. So rather than the above few drawbacks of BCCW head office, everything else is not blamable and rest is taken care in a efficient way by the people and the authorities of this organization who have the ability to manage the problems effectively and manage the day to day functioning of BCCW. 51 |Pages 54 H.R. Institute of Higher Education, Hassan.
  52. 52. Bharathi Coffee Curing Works, Hassan. CONCLUSION As mentioned earlier and also by going through the whole company profile and other data, it is clear that BCCW as a very big name and share in the whole coffee market of the world and is one of the fully integrated coffee companies of Asia. Its exports make BCCW as a second largest origin exporter in the world. Their client list includes some of the world’s biggest and most discerning roasters, MNCs, trading company and retail chains. By working in such a successful organization, I have come to know lot about this organization’s functioning and its markets. This is not surprisingly because of the rich, unique blend of elements, vast, fine estates, exacting quality control over processing, absolute commitment and integrity and most significantly, a sense of dynamism of striving for the extraordinary and lots more to offer, BCCW is one of the most professional in its nature. They continuously strive to identify customer needs & constantly work on ways to present Indian coffee to the world market and we can say that the competition for BCCW comes not from within India but from other coffee nations such as Brazil, Columbia and Kenya. Even though there is competition from so many courtiers, this company tries very hard & is also successful to grab a huge share in the world market. This company has so for captured a major parts of Indian market and yet is trying very hard to conquer the whole market within few years from now. And by personally experiencing the functioning of BCCW and also by seeing its business strategies, I can say no wonders it will definitely achieve its goals in the mere future. 52 |Pages 55 H.R. Institute of Higher Education, Hassan.
  53. 53. Bharathi Coffee Curing Works, Hassan. SUMMARY OF LATEST ANNUAL REPORT 53 |Pages 48 H.R. Institute of Higher Education, Hassan.
  54. 54. Bharathi Coffee Curing Works, Hassan. CONTENTS Sl. Page No. Particulars No. 1 Industry Profile History of Coffee 5 Coffee industry in India 6 Overview 7 Export highlights (2006-07) 8 2 Company Profile 1. Background and Inception of the Company 10 2. Vission, Mission, Goals and Quality Policy 12 3. Nature of Business Carried 13 4. Product Profile 15 5. Workflow model 18 6. Functional Areas 21 7. Area of Operation 26 8. Compititors 27 9. Organization Structure 28 10. Organization Chart 29 11. Future Growth and Prospectus 30 3 McKinsey’s 7S Model 31-44 4 SWOT Analysis 45-47 5 Summary of Latest Annual Report 48-50 6 Learning Experience 51-55 54 |Pages H.R. Institute of Higher Education, Hassan.
  55. 55. M/s Bharathi Coffee Curing Works B.M. Road, Hassan -573201. 55 |Pages 49 Consolidated Balance Sheet as on 31-03-2008 Capital & Liabilities Amount Amount Capital & Liabilities Amount Amount Capital Account: Assets Balance as per last Balance Sheet 17, 485,436.51 Fixed Assets: Add: Capital A/c as per Lorry A/c 627,092.00 As per schedule-3 9115726.74 18,112,528.51 Lorry-1 17545.00 Add: Capital A/c as per Less: Depreciation@ 30% 5264.00 12281.40 Lorry-2 13268.00 H.R. Institute of Higher Education, Hassan. Shares A/c 4,163,753.61 22,276,282.12 Bharathi Coffee Curing Works, Hassan. Less: Depreciation@ 30% 3981.00 9287.60 Loan from banks & others: As per schedule -1 31,978,068.70 Deposits & Advances KEB Deposit 103953.00 Capital Reserve: Telephone Deposits 25743.00 Investment subsidy from Corporation Bank 525000.00 Karnataka Government 3000,000.00 Advance IncomeTax 203000.00 Advance Tax paid (Sales tax) 8000.00 Sundry Creditors: TDS 214129.00 1259966.00 As per Schedule -2 25,203,313.00 Shares Co-operative society 5000.00 Sundry Debtors: 13175182.00
  56. 56. M/s Bharathi Coffee Curing Works B.M. Road, Hassan -573201. Consolidated Balance Sheet as on 31-03-2008 50 |Pages 56 Capital & Liabilities Amount Amount Capital & Liabilities Amount Amount CST Payable 252,194.00 Loans & Advances: VAT Payable 501,224.30 Advance to Staff 19555.00 TDS Payable 44,543.00 797,961.00 Export Receivables: Asper Schedule-5 59658626.00 83255625.62 83255625.62 H.R. Institute of Higher Education, Hassan. Bharathi Coffee Curing Works, Hassan.