MP Birla Institute of Management                                                     Castrol                              ...
MP Birla Institute of Management           Castrol                                       Shekar Agencies                  ...
MP Birla Institute of Management           Castrol                                       Shekar Agencies     INTRODUCTION ...
MP Birla Institute of Management                                                    Castrol                               ...
MP Birla Institute of Management                                                     Castrol                              ...
MP Birla Institute of Management                                                 Castrol                                  ...
MP Birla Institute of Management                                                     Castrol                              ...
MP Birla Institute of Management                                                    Castrol                               ...
MP Birla Institute of Management                                                   Castrol                                ...
MP Birla Institute of Management                                                   Castrol                                ...
MP Birla Institute of Management                                                   Castrol                                ...
MP Birla Institute of Management                                                      Castrol                             ...
MP Birla Institute of Management                                                    Castrol                               ...
MP Birla Institute of Management                                                    Castrol                               ...
MP Birla Institute of Management                                                     Castrol                              ...
MP Birla Institute of Management                                                  Castrol                                 ...
MP Birla Institute of Management                                                 Castrol                                  ...
MP Birla Institute of Management                                                 Castrol                                  ...
MP Birla Institute of Management                                                  Castrol                                 ...
MP Birla Institute of Management                                                 Castrol                                  ...
MP Birla Institute of Management            Castrol                                        Shekar Agencies                ...
MP Birla Institute of Management                                                    Castrol                               ...
MP Birla Institute of Management                                                      Castrol                             ...
MP Birla Institute of Management                                                  Castrol                                 ...
MP Birla Institute of Management                                                   Castrol                                ...
MP Birla Institute of Management                                                   Castrol                                ...
MP Birla Institute of Management                                                    Castrol                               ...
MP Birla Institute of Management                                                  Castrol                                 ...
MP Birla Institute of Management                                                 Castrol                                  ...
MP Birla Institute of Management            Castrol                                        Shekar Agencies ORGANIZATIONAL ...
MP Birla Institute of Management                                             Castrol                                      ...
MP Birla Institute of Management                                                    Castrol                               ...
MP Birla Institute of Management                                                  Castrol                                 ...
MP Birla Institute of Management               Castrol                                           Shekar Agencies          ...
MP Birla Institute of Management                                                 Castrol                                  ...
MP Birla Institute of Management                                                     Castrol                              ...
MP Birla Institute of Management                                                   Castrol                                ...
MP Birla Institute of Management                                                     Castrol                              ...
MP Birla Institute of Management                                                      Castrol                             ...
MP Birla Institute of Management              Castrol                                          Shekar Agencies            ...
MP Birla Institute of Management                                                 Castrol                                  ...
MP Birla Institute of Management                                                 Castrol                                  ...
MP Birla Institute of Management                                                       Castrol                            ...
MP Birla Institute of Management                                         Castrol                                          ...
MP Birla Institute of Management            Castrol                                        Shekar AgenciesOBSEREVATIONS, S...
MP Birla Institute of Management                                                                     Castrol              ...
MP Birla Institute of Management                                                    Castrol                               ...
MP Birla Institute of Management                                                    Castrol                               ...
MP Birla Institute of Management                                                   Castrol                                ...
MP Birla Institute of Management                                                     Castrol                              ...
MP Birla Institute of Management                                                                      Castrol             ...
MP Birla Institute of Management                                                     Castrol                              ...
MP Birla Institute of Management                                                    Castrol                               ...
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Shekar agencies report pdf

  1. 1. MP Birla Institute of Management Castrol Shekar Agencies CONTENTS Chapter No Title Page No Introduction 1.1 Background of the study 4 1.2 Industry Profile 5 1.2.2 Meaning of Lubricant 5 1.2.2 Manufacturing Process of Lubricating Oil 5 1.2.3 Global Scenario 9 1.2.4 Indian Scenario 10 1 1.3 Company Profile 12 1.3.1 Castrol Shekar Agencies 13 1.3.2 About Castrol and its distributors in India 14 1.3.3 Product line 16 1.3.4 Few facts about Castrol India Limited 20 1.3.5 Brief about the competitors of Castrol and their analysis 22 1.4 Vision, Mission and Objectives 29 Organisational Structure 2.1 Corporate Organization structure 31 2 2.2 Departmental Organization 32 2.3 Authority and Responsibility relationship 32 Functional Areas 3.1 HR Department 35 3.1.1 Objectives 35 3.2 Marketing Department 36 3 3.3 Operations Department 37 3.4 Finance Department 38 3.4.1 Objectives 38 3.5 Distribution and Logistics Departments 38 SWOT Analysis 41 4.1 Strength and Weakness 42 4 4.2 Opportunities and Threats 42 4.3 Problem Identification and solution in any specific area 42 Observations, Suggestions and Conclusion 5.1 Major Findings 47 5 5.2 Suggestions 48 5.3 Learning’s from the Organizational Study 49 Conclusion 49 1
  2. 2. MP Birla Institute of Management Castrol Shekar Agencies Annexure Balance Sheet 51 Bibliography 53 2
  3. 3. MP Birla Institute of Management Castrol Shekar Agencies INTRODUCTION 3
  4. 4. MP Birla Institute of Management Castrol Shekar Agencies1. INTRODUCTION1.1 BACKGROUND OF THE STUDYThis study was carried out, as part of the MBA curriculum prescribed by the BangaloreUniversity, after the 1st year of the MBA programme i.e. after the 2nd semester and beforethe commencement of the second year i.e. before the 3rd semester of the MBA programme.We had to undergo summer training in the corporate sector for hands on experience, wherewe get an opportunity to put into practice the knowledge gained during the entire first year.Hence, the organizational study was conducted at Shekar Agencies, Bangalore, for a periodof 5 weeks. The organization was studied on an overall basis.The objective of our study was to:  Understand the structure of Shekar Agencies and how it functions.  Understand the different facets of the environment in which the organization operates.  Understand the culture of Shekar Agencies.  Know about the decision-making processes in Shekar Agencies.The process or methodology used in this study was:  Learn about the working environment of Shekar Agencies.  Sketch the organizational hierarchy.  Assess the performance of Shekar Agencies.  Study the procedures, functions and activities of Shekar Agencies employees.  To examine the changes in the environment and how best Shekar Agencies can achieve its objectives. 4
  5. 5. MP Birla Institute of Management Castrol Shekar Agencies1.2 INDUSTRY PROFILE1.2.1 Meaning of LubricantThe word ‘LUBRICANT’ means a substance such as grease or oil which reducesfriction when applied as a surface coating to moving parts. It may also have thefunction of transporting foreign particles. The property of reducing friction is knownas lubricity.1.2.2 Manufacturing Process of Lubricating OilLube oil is extracted from crude oil, which undergoes a preliminary purificationprocess (sedimentation) before it is pumped into fractionating towers. A typical high-efficiency fractionating tower, 25 to 35 feet (7.6 to 10.6 meters) in diameter and up to400 feet (122 meters) tall, is constructed of high grade steels to resist the corrosivecompounds present in crude oils; inside, it is fitted with an ascending series ofcondensate collecting trays. Within a tower, the thousands of hydrocarbons in crude oilare separated from each other by a process called fractional distillation. As the vapoursrise up through the tower, the various fractions cool, condense, and return to liquidform at different rates determined by their respective boiling points (the lower theboiling point of the fraction, the higher it rises before condensing). Natural gas reaches 5
  6. 6. MP Birla Institute of Management Castrol Shekar Agencies Crude oil distillation processA good lubricant possesses the following characteristics:  High boiling point.  Low freezing point.  High viscosity index.  Thermal stability.  Corrosion prevention.  High resistance to oxidation.The most important function of lubricants is the reduction of friction and wear and insome cases; the relative movement of two bearing surfaces is only possible if alubricant is present. In times when saving energy and resources and cutting emissionhave become central environmental matters, lubricants are increasingly attractingpublic awareness. Scientific research has shown that 0.4 % of gross domestic product 6
  7. 7. MP Birla Institute of Management Castrol Shekar Agenciescould be saved in terms of energy in Western industrialized countries if currenttribological knowledge, i.e. the science of friction, wear and lubrication, was justapplied to lubricated processes.Apart from important applications in internal combustion engines, vehicle andindustrial gearboxes, compressors, turbines or hydraulic systems, there are a vastnumber of other applications which mostly require specifically tailored lubricants.This is illustrated by the numerous types of greases or the different lubricants for chip-forming and chip-free metalworking operations which are available. Between 5000 and10 000 different lubricant formulations are necessary to satisfy more than 90 % of alllubricant applications.If one thinks of lubricants today, the first type to come to mind are mineral oil based.Mineral oil components continue to form the quantitatively most important foundationof lubricants. Petrochemical components and increasingly derivatives of natural,harvestable raw materials from the oleo-chemical industry are finding increasingacceptance because of their environmental compatibility and some technicaladvantages.On average, lubricating oils, which quantitatively account for about 90 % of lubricantconsumption, consist of about 93 % base oils and 7 % chemical additives and othercomponents (between 0.5 and 40 %). Worldwide, there are 1380 lubricantmanufacturers ranging from large to small. On one hand there are vertically-integratedpetroleum companies whose main business objective is the discovery, extraction andrefining of crude oil. Lubricants account for only a very small part of their oil business.At present, there are about 180 such national and multinational oil companies engagedin manufacturing lubricants. The 1200 independent lubricant companies mainlyconcentrate on the manufacturing and marketing of lubricants and view lubricants astheir core business. While the large, integrated companies focus on high-volumelubricants such as engine, gear and hydraulic oils, many independent lube companiesconcentrate on specialties and niche business, where apart from some tailor-madelubricants, comprehensive and expert customer service is part of the package. 7
  8. 8. MP Birla Institute of Management Castrol Shekar AgenciesThe top 1 % of the world’s manufacturers of finished lubricants (of which there aremore than 1380) account for more than 60 % of global sales; the other 99 % share lessthan 40 %. World ranking of the largest manufacturers of lubricants (2005) 1. Shell Great Britain/The Netherlands 2. Exxon Mobil USA 3. BP (Castrol) UK 4. Petrochina/Sinopec China 5. Chevron USA 6. Lukoil Russia 7. Fuchs Germany 8. Nippon Oil Japan 9. Valvoline USA 10. Idemitsu Japan 11. Conoco Phillips USA 12. CPC Taiwan 13. PDVSA Venezuela 14. Repsol Spain 15. Indian Oil India 16. Agip Italy 17. Yukos Russia World ranking of the largest manufacturers of industrial lubricants (2005) 1. Exxon Mobil USA 2. Shell Great Britain/Netherlands 3. Petrochina/Sinopec China 4. Chevron USA 5. BP (Castrol) UK 6. Fuchs Germany 7. Nippon Oil Japan 8
  9. 9. MP Birla Institute of Management Castrol Shekar Agencies 8. Idemitsu Japan 9. Total France 10. Lukoil Russia 11. PDVSA Venezuela 12. Yukos Russia 13. Repsol Spain 14. Agip Italy 15. Valvoline USA 16. Conoco Phillips USA1.2.3 Global ScenarioDeclining demand growth of automotive lubricants, increasing competition on accountof the presence of a large number of players, and increasing raw material costs andmarketing expenditure are leading to declining player margins in the lubricant industry.Global demand for lubricants in the world is estimated at around 41 million (mn) KL.Automotive lubricants account for around 54%, Industrial lubricants for around 41%and Marine lubricants for the balance.Globally, the lubricants industry has been growing at 2.0-2.5% per annum in the pastfive years. In developed countries, automotive lubricants have been growing at a slowerrate of 1.0% per annum on account of the saturation of vehicle population, improvedengine technology and better quality of oil.The region wise distribution of lubricant demand worldwide is shown below: 9
  10. 10. MP Birla Institute of Management Castrol Shekar Agencies Regionwise Demand Asia Pacific North America 25% 28% Europe 35% Central - Southern America 12%Asia is the third largest market for lubricants in the world and is expected in future togrow at a faster rate as compared to other developed markets. Asia’s share in the worldlubricant market has increased from 22% in 1993 to 25% in 1998. The per capitaconsumption of lubricants in different countries is shown below: Per Capita Consumption Country (Kg) America 31.0 Europe 14.0 China 2.0 India 1.01.2.4 Indian ScenarioIndia is the sixth largest lubricant market in the world, with a consumption of around1.12 million KL in 1998-99 (an effective market size of Rs. 55-60 bn.) as against aninstalled capacity of 1.6 million KL and has grown at a CAGR (Compound AnnualGrowth Rate) of around 7.0% over the period 1993 to 1998. However, with theindustrial downturn and also slower growth in the automobile sector, the growth of theindustry has slowed down to around 4.0% in the last few years. 10
  11. 11. MP Birla Institute of Management Castrol Shekar AgenciesTill 1993, the Indian Lubricant industry was totally controlled by the Government, withthe Oil Co-ordination Committee (OCC) controlling all aspects of the Industry. Thus,the industry was dominated by the oil Public Sector Units (PSU) - Indian OilCorporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL) andBharat Petroleum Corporation Limited (BPCL). Castrol was the only major privatesector player in the industry. The market shares of the key players in the industry as in1998-99 are given below: Market share - Lubricants Tide Water Elf Gulf Oil 3% 4% 6% Others 6% Castrol IOC 19% 34% BPCL 8% HPCL IBP 18% 2%The lubricant industry in India can be broadly classified into two segments -Automotive Lubricants and Industrial Lubricants, with automotive lubricantsaccounting for over 60 % of the total lubricant market.The automobile lubricant market has grown at around 4% from 1993-94 to 1998-99,with the commercial vehicle segment accounting for about 70% of the totalconsumption of automotive lubricants. India’s per capita consumption of automotivelubricants is low at around 1 Kg per annum on account of the low penetration ofautomobiles in the country.India has the second largest railway network, fifth largest mining industry and is thetwelfth most industrialised nation in the world. Hence, industrial lubricants account for 11
  12. 12. MP Birla Institute of Management Castrol Shekar Agenciesabout 40% of the total lubricant market in India and have grown at a CAGR of 13%from 1993-94 to 1998-99.In 1993, the Government liberalised the lubricants sector and announced a number ofregulatory changes. These included –  Entry of foreign companies into the Indian market.  Decanalization of imports of base oil.  Decontrol of pricing of base oil.  Reduction in customs duty on base oils (progressively reduced from a peak of 85% to the current level of 25%).The deregulation of the lubricant industry has had a severe impact on the structure ofthe Indian lubricants market. Lubricants have the highest margin among refinedpetroleum products. Companies earn between 20-30 times more from selling lubricantsthan other petroleum products. Such a lucrative business encouraged foreign majorslike Shell, Exxon, Mobil, Caltex, Elf etc., to enter the Indian market. Currently, theindustry is highly fragmented with over thirty players as compared to the five in 1993.The share of public sector companies has declined from 90 % in 1991 to less than 70 %in 1999. The change in the market share has been predominantly on account of rapiddevelopments in technology, marketing, and distribution strategies of companies.1.3 COMPANY PROFILE Company : Castrol Shekar Agencies Proprietor : Rajshekar. G. Rao Operations Managers : Hari Prasad Managers : Ranjini : Gowda Auditors : Shradha 12
  13. 13. MP Birla Institute of Management Castrol Shekar Agencies1.3.1 Castrol Shekar AgenciesFounded in 1998 on a very small scale, Castrol Shekar Agencies was a small businessdesigned to meet the needs of the ever changing technology in the manufacturing worldby supplying quality lubricants. They have 2 branches currently in Bangalore,Karnataka which is also the home which plans to expand to all over Karnataka withinfew years.Castrol Shekar Agency was the pilot effort by Castrol India Limited in SouthernKarnataka and over the years Shekar Agency has become the second largest distributorfor Castrol in India.Castrol Shekar Agencies was established as a proprietorship with the intention ofselling quality lubes along with unmatchable solutions and end to end services to themanufacturing world in Bangalore. All aspects of the business will be documented toensure customers can count on the same results every time. It is these documents thatwill become the basis of ownership. The proprietor will use his or her name as theguarantor of each service. Therefore, the proprietor must embody the vision andmission of Castrol Shekar Agencies in line with Castrol’s vision and mission.As Castrol Shekar Agencies was a part of South-India’s pilot project they are proud tobe associated with the brand Castrol and its product line and also it was an initiativetaken by Castrol India to turn this agency to a pilot distributor in South-India where itwas initially a CCC (Customer Care Centre) and after many years attained the status ofbeing a Castrol distributor.Castrol Shekar Agencies are the only authorised dealers for Castrol’s products inBangalore and are enjoying monopoly since the time of its inception. From the time ofits inception till date they have grown from just 15 employees to more than 150employees catering to different business needs and meeting the demands of thecompetitive market. 13
  14. 14. MP Birla Institute of Management Castrol Shekar Agencies1.3.2 About Castrol and its distributors in IndiaThe History of Castrol in India dates back to 1910 when certain automotive lubricantsfrom C. C. Wakefield and company made an entry in the Indian Market. In 1919, C. C.Wakefield and company setup its first overseas branch office in India and commencedoperations as a trading unit. Today, Castrol India Limited is the second largest player inthe Indian lubricant industry and is the market leader in the retail automotive lubricantsegment. Castrol India is a part of the BP group worldwide.Castrol India Limited is a Public Limited Company with 70.92% of the equity held byCastrol Limited UK (part of BP Group). In 2003 the companys turnover wasRs.1360.51 crores and Profit after tax was Rs. 137.38 crores.From a minor oil company, with a share of about 6% in 1991, Castrol India has grownto become the second largest lubricant company in India with a market share of around22%.Castrol India manufactures and markets a range of automotive and industrial lubricants.It markets its automotive lubricants under two brands - Castrol and BP. The companyhas leadership positions in most of the segments in which it operates includingpassenger car engine oils, premium 2-stroke and 4-stroke oils and multigrade dieselengine oils. Castrol India has the largest manufacturing and marketing networkamongst the lubricant companies in India. The company has 5 manufacturing Plantsacross the country, including a state-of-the-art plant in Silvassa. The company reachesits consumers through a distribution network of 270 distributors, servicing over70,000.retail outlets.Castrol India has clearly demonstrated its commitment to Indian consumers for over 80years, by offering its international range of high performance products backed by thehighest level of customer service. The company has managed to gain sustainablecompetitive advantage through:  Distinctiveness driven by continuous innovation in all areas of business  Winning culture and a desire to excel  Strong meaningful relationships with all stakeholders 14
  15. 15. MP Birla Institute of Management Castrol Shekar AgenciesOn 19 March 1899, Charles Cheers Wakefield started up an oil company.Within 10 years, a new lubricant was produced that would revolutionise transport in thefirst half of the twentieth century – it was called ‘Castrol’.The success of our company owes much to the original philosophy of CharlesWakefield. He drew on the help and encouragement of his customers in developing hisnew Castrol Oils, because he had the foresight to see that working in partnership wasthe best way to achieve success for both parties. This rationale is as relevant to us todayas it was then.Castrol now employs over 12,000 people in more than 130 countries.They work at the forefront of advanced technology and are the world leader in thedevelopment of motor oils.CASTROL ACQUIRED BY BP: JULY 2000With the acquisition of Castrol by BP, Castrol has become the leading brand withinBP’s lubricants business. Castrol was selected by BP because it was seen as one of thegreat lubricants brands in the world, with a name that is synonymous with superblyengineered products of the highest quality.It has been a very successful union. Castrol’s creative and innovative marketing andbrand management expertise has fitted well with BP’s ability to build highly profitable,performance-driven businesses. Today, a distinctive global lubricants operation istaking on all competitors…and winning over customers in markets across the world.INDUSTRIAL LUBRICANTS & SERVICES…SHAPING TECHNOLOGYCastrol Industrial, part of BPs Refining & Marketing division, is a leading globalplayer in its own right, supplying the equipment manufacturing and industrialmaintenance industries with a unique and diverse range of essential products andtechnical support services. 15
  16. 16. MP Birla Institute of Management Castrol Shekar AgenciesEvery day, we harness our unrivalled knowledge and expertise in high performancelubricants and metalworking fluids – and share best practice with our customers.Around the world, we work with our customers to introduce and exploit all the benefitsof improved process efficiencies. To support this, we maintain strategically locatedtechnology centres as well as machining test centres in Asia, Europe and NorthAmerica.Their offers include a wide range of product support services to boost performance andprofitability across different customer locations and manufacturing sites.They understand the challenges of implementing the right processes in the right places.For the maximum convenience of our customers, we operate from a broad network ofsales and support locations and channels.100+ YEARS’ EXPERIENCE IN HIGH PERFORMANCE LUBRICANTS ANDMETALWORKING FLUIDSCastrol Industrial is the ideal partner for Equipment Manufacturers and IndustrialMaintenance companies the world over. Our knowledge enables us to select and applythe combination of products and services that most positively impact productivity,quality and costs in your manufacturing operations.1.3.3 Product line 16
  17. 17. MP Birla Institute of Management Castrol Shekar AgenciesOur comprehensive range of world-class lubricants deliver the performance you need inevery application, including the most demanding and capital intensive, where leadingedge lubrication technology is vital.From gear oils to greases, our standard and high performance lubricants can help yourequipment run smoothly, even in the most difficult environments, and for long periodsof time – giving you improved reliability.With emphasis on your process reliability, we have developed a comprehensive rangeof premium metalworking fluids.Our compatible products are formulated to give world-class performance and improveyour quality and productivity at reduced overall process costs, as well as allowing youto meet your environmental and safety regulations. 17
  18. 18. MP Birla Institute of Management Castrol Shekar AgenciesOnce seen as a necessary evil, industrial cleaning has become a crucial element of thevalue chain within many industrial manufacturing processes. In recent years,cleanliness requirements have increased significantly to guarantee accurate quality,functionality and lifespan of parts and components, and to facilitate optimum surfacesfor subsequent treatments such as heat treatment or coatings.Castrol offers you a comprehensive range of world-class industrial cleaners and productsupport services that will help you to:  Achieve more reliable cleanliness of finished parts  Improve Health and Safety and reliability performance  Boost productivity through reduced scrap rates  Lower your cleaning costsOur range of user-friendly and environmentally responsible industrial cleaners offersyou the choice of:Hydrocarbon Solvent Cleaners – Specially formulated with selected hydrocarbons,delivering excellent solvency for mineral oils, fats, greases and other soils typicallyfound in manufacturing.  Castrol TechnicleanAqueous Process Cleaners – Allow flexibility of choice in delivering cleaningperformance, depending on the equipment to be used. 18
  19. 19. MP Birla Institute of Management Castrol Shekar Agencies  Castrol Careclean  Castrol Flexiclean  Castrol TechnicleanMaintenance Cleaners – Divided into two categories: Industrial Floor Cleaners –liquid alkaline degreasing and cleaning solutions for cleaning industrial floors; andMachine Tool/System Cleaners – light-to-heavy-duty machine tool cleaners anddisinfectants.Metal corrosion affects virtually everyone every day. Whenever base metals or relatedarticles are produced, there is a risk of corrosion – and whenever this occurs, it costsmoney and eats into profits.We have focused on preventing corrosion with our comprehensive range of world-classcorrosion preventives and product support services that will help you to:  Achieve more reliable protection of finished parts  Improve Health, Safety and Environmental (HSE) performance  Boost productivity through reduced scrap rates and wasteDewatering fluids, mill oils or soluble corrosion preventives – our product range coversall your industrial requirements, so you can choose the best product from the followingto suit your needs:Solvent based dewatering corrosion preventives – Dewatering agents with excellentwater displacing and penetrating properties and corrosion preventives. 19
  20. 20. MP Birla Institute of Management Castrol Shekar Agencies  Castrol Rustilo  Castrol SafecoatNeat corrosion preventive oils – Economical and efficient corrosion preventive oils forall surface protection requirements.  Castrol Rustilo  Castrol SafecoatAqueous corrosion preventives – Synthetics, soluble oils and micro-emulsions allowingmultiple degrees of freedom in process design.  Castrol Aquasafe  Castrol Rustilo1.3.4 Few facts about Castrol India Limited 20
  21. 21. MP Birla Institute of Management Castrol Shekar Agencies 21
  22. 22. MP Birla Institute of Management Castrol Shekar Agencies1.3.5 Brief about the competitors of Castrol and their analysisAs the distributors are dependent on the sales of Castrol any impact on Castrol willaffect them directly as sales drop significantly. A few of the major competitors forCastrol in India are mentioned below.Indian OilIndian Oil Corporation Ltd. is India’s largest company by sales with a turnover ofRs. 4,09,957 crores ($ 85,550 million) and profit of Rs. 3,955 crores ($ 825 million)for the year 2011-12.Indian Oil is the highest ranked Indian company in the latest Fortune ‘Global 500’listings, ranked at the 83rd position. Indian Oils vision is driven by a group of dynamicleaders who have made it a name to reckon with.Bharat PetroleumSuccess in the corporate world emanates from the relentless pursuit of excellence. Ourgrowth post nationalisation in 1976 has been phenomenal. One of the single digitIndian representative in the Fortune 500 & Forbes 2000 listings, we are often referredto as an “MNC in PSU garb”. A pioneer in marketing initiatives employing “Best inClass” practices.Hindustan Petroleum Corporation LimitedHPCL is a Government of India Enterprise with a Navratna Status, and a Fortune 500and Forbes 2000 company, with an annual turnover of Rs. 1,32,670 Crores andsales/income from operations of Rs 1,43,396 Crores (US$ 31,546 Millions) during FY2010-11, having about 20% Marketing share in India among PSUs and a strong marketinfrastructure. HPCLs Crude Thru put and Market Sales (including exports) are 14.75Million Metric Tonnes (MMT) and 27.03 MMT respectively in the same period. 22
  23. 23. MP Birla Institute of Management Castrol Shekar AgenciesAnalysis on National Oil CompetitorsThe above three oil based companies Indian Oil, Bharat Petroleum and HindustanPetroleum Corporation Limited are Indian companies which are all listed in Fortunecompanies ranking and have a strategic distribution canal which reaches out to thetiniest of corners in India and extends their distribution business all across the majorcities in India. This result in a few constraints to the distributors of Castrol in India asCastrol being a foreign company they have more rules to be followed and cannotcommence business in every nook and corner as their distribution network is not aswide as Indian companies.Blaser SwisslubeBlaser Swisslube was founded in 1936 by Willy Blaser. The goal of the company, fromthe beginning, has been to produce value-added products for customers that are friendlyfor humans and the environment. This pioneering spirit and constant will forinnovation, runs through the companys history like a thread. These guiding principleshave made this family owned coolant company, a Global Player under the leadership ofPeter Blaser.With Marc Blaser, the third generation is also committed to keep the promise toprovide to our customers the best products with the best service.Thousands of companies around the world trust Blaser lubricants. For over seventy-fiveyears we have been researching and developing our products to the highest standards ofscientific technology. At our Headquarters in Switzerland, we run the largest R & DLab of the branch where innovative ideas are tested and put into action. Products likecutting fluids and cutting oils are the speciality.QuakerSince 1918, we have been establishing and maintaining long-term relationships withleading enterprises in primary metals, metalworking, and other basic process industries 23
  24. 24. MP Birla Institute of Management Castrol Shekar Agenciesall over the world. Today, we have business and production presence in every majormanufacturing country in the world.Quaker is a $683.2 million dollar company headquartered in Conshohocken,Pennsylvania, USA, with regional headquarter locations in Uithoorn, The Netherlands,Rio de Janeiro, Brazil and Shanghai, China. The company is publicly traded on theNew York Stock Exchange, and has a long track record of financial consistency andstrength.As the Company entered the 21st century, we began a major strategic action to bettermeet the changing needs of our customers. Now, as a global, knowledge-basedcompany, we provide our best service, technology, and product resources to all of ourcustomers—wherever they are in the world.While working hard to meet customers’ needs, we also strive to keep a strong sense ofresponsibility to our associates, to the communities in which we operate, and to thenatural environment.As further evidence of our commitment to continuous improvement, our efforts atquality have been acknowledged by the International Organization for Standardization,with ISO 9001 ratings at our own facilities, as well as at customer sites where wedeliver services and products directly. Many facilities are also ISO 14001 certified andrated by accredited companies such as Lloyd’s, British Standards Institute (BSI), andDet Norske Veritas (DNV). Specialise in products like cutting oils, corrosionpreventives, metal forming etc.FuchsFounded in 1931, the FUCHS GROUP has grown to become the largest independentmanufacturer of specialty lubricants in the world. Recognized internationally for itsinnovative lubricants and industry related specialty products, Fuchs has a global reachwith manufacturing facilities in over 40 countries.FUCHS Lubricants Co., the US operating unit of the Fuchs Group, provides highquality lubricants to a wide range of industry. From underground mines to makers of 24
  25. 25. MP Birla Institute of Management Castrol Shekar Agenciescomplex metal components including automotive, appliance and aerospacemanufacturers, Fuchs has products to meet the specialized needs of our customers.Fuchs is constantly developing new products to meet the ever changing demands ofmodern industry. Improved productivity, reduced cost, improved worker safety, andreduced environmental impact are just a few of the benefits Fuchs products provide.Fuchs superior customer service is supported by a system of eight North Americanmanufacturing facilities, thirty-four North American warehouses and a companyoperated delivery fleet. Our factory trained field technicians operating locally provideunparalleled service and expertise.The leading edge technology of our products, the expertise of our employees andfactory direct supply channels provide the service and value our customers expect, andmakes FUCHS Lubricants Co. unique in the marketplace. FUCHS is committed toproviding our customers with comprehensive technical solutions that suit ourcustomer’s lubrication needs.Analysis on Niche Product PlayersThe above three competitors Blaser Swisslube, Quaker and Fuchs are a major threat forCastrol as they are the pioneers in lubricant oils for aerospace industry which isgrowing at great heights in the last couple of years and is booming in developingcountries like India so the aerospace industry in such countries will prefer the pioneersover Castrol in this segment and hence the distributors will have a tough job along withthe company to market such niche products.APAR Industries LimitedApar Industries Limited, founded by Late Mr. Dharmsinh D. Desai in the year 1958 isone among the best established companies in India operating in the diverse fields ofelectrical, metallurgical and chemical engineering. Over the ensuing years it has 25
  26. 26. MP Birla Institute of Management Castrol Shekar Agenciesevolved to be a 700 million US Dollar diversified company offering value addedproducts and services in Power Transmission Conductors and Petroleum Specialities.A technology – driven and customer – focused vendor to some of the most brand-enhancing power companies in India and abroad, Apar has strengthened the business ofits customers through proactive product development, timely product delivery andsuperior product attributes by reinforcing product innovation, cost leadership andpremium quality and living its vision ‘Tomorrow’s Progress Today’ resulting inReliability, Respect, Reputation and Repeat business across manufacture of SpecialityOils and Power Conductors.Their speciality oil ranges from transformer oils, industrial oils and lubricants to inkoils which is a distinct diversification inside the industry of lubricants.Raj GroupFrom a modest beginning over 60 years ago, Raj is today a multi-product, multilocation conglomerate with world class products and services encompassing the entireproduct spectrum of petroleum specialities business.Under its three broad product groups -- Transformer Oils, Process Oils / Gels andLubricants, the Group offers an exhaustive range of over 500 world class productscovering wide spectrum of application, as well as speciality segments of the industry.More than a dozen renowned generic product brands, each one a market leader in itsown field, offer innovative solutions to today’s discerning customer in the globalmarket.Their product ranges from High Performance Automotive Oils, High PerformanceFoodgrade & Speciality Lubricants, Transformer Oils to Process Oils and Gels.Analysis on Local PlayersThe above local players APAR Industries Limited and Raj Group are companies thatare making its mark in the lubricant industry and they are financially very sound hence 26
  27. 27. MP Birla Institute of Management Castrol Shekar Agenciescan compete with the big global players in the home country. The two companies havediversified their businesses to a wide range of products other than only lubes by whichit creates more opportunities for growth and helps in better distribution as they willknow the different mind sets of different people as they have diversified their business.MobilAre the worlds largest publicly traded international oil and gas company, providingenergy that helps underpin growing economies and improve living standards around theworld.They hold an industry-leading inventory of global oil and gas resources. They are theworld’s largest refiner and marketer of petroleum products, and their chemicalcompany ranks among the world’s largest. They are also a technology company,applying science and innovation to find better, safer and cleaner ways to deliver theenergy the world needs.Over the last 125 years ExxonMobil has evolved from a regional marketer of kerosenein the U.S. to the largest publicly traded petroleum and petrochemical enterprise in theworld. Today they operate in most of the worlds countries and are best known by theirfamiliar brand names: Exxon, Esso and Mobil. They make the products that drivemodern transportation, power cities, lubricate industry and provide petrochemicalbuilding blocks that lead to thousands of consumer goods.Their products include automotive lubricants, industrial lubricants, greases etc.ExxonMobil has a well-developed network of experienced distributors around theworld. Their authorized ExxonMobil distributors must meet stringent requirementsrelated to product quality and handling, personnel training and qualification, and brandrepresentation. They work closely with authorized distributors to ensure needs are metand you are able to extract maximum value from our lubricants. 27
  28. 28. MP Birla Institute of Management Castrol Shekar AgenciesShellThey are a global group of energy and petrochemicals companies with around 90,000employees in more than 80 countries and territories. Their innovative approach ensuresthey are ready to help tackle the challenges of the new energy future.From the worlds largest integrated, export oriented oil and gas project to helping tomeet Asias demand for petrochemicals - Shell’s major projects show their technologyand expertise in action.When you fill up with Shell, you can relax in the knowledge that Shell fuels, includingShell V-Power and Shell V-Power Diesel, are backed by unique technological expertiseand decades of research and development by some of the best scientists from aroundthe world, all working to help you get the most out of every drop.Shell Lubricants is the number one global lubricant supplier and has a 70-year historyof innovation. Some of the world’s top manufacturers choose Shell as the first-fillmotor oil for new vehicles in their factories and continue to use a range of theirproducts for ongoing servicing.Whatever your needs or application, Shell can provide a full range of lubes includingsynthetic high-performance products. See how our superior oils and lubricants work toclean and protect your engine, helping to improve its performance and prolonging itslife. Their distribution channels are very thoughtfully placed keeping in mind themarket requirement and the nearness to the Shell production facility units.Analysis on Private Players (International)Mobil and Shell are the biggest players in International market and their businessesdiversify over a wide range of products from industrial to automotive to aerospace andmarines which are great demand all over the world. They lay lot of emphasis on theirdistribution units and have superior outlets of retail and wholesale distributors havingtrained employees like Castrol to market their range of products. 28
  29. 29. MP Birla Institute of Management Castrol Shekar Agencies1.4 VISION, MISSION AND OBJECTIVESMeaning of VisionAn aspirational of what an organization would like to achieve or accomplish in the mid-term or long-term future. It is intended to serve as a clear guide for choosing currentand future courses of action.Meaning of MissionA mission statement defines what an organization is, why it exists and its reason forbeing. At a minimum a mission statement should define who your primary customersare, identify the products and services you produce, and describe the geographicallocation in which you operate.Castrol’s Vision, Mission and Objectives"We will, sustainably, enhance the profitability of our customers by developinginnovative products and services offers. As a result, we will become the manufacturingpartner of choice within the Equipment Manufacturing and Industrial Maintenancemarket spaces.”  Consolidating and growing its market share in the premium segment.  To reach out to consumers across different segments.  To provide timely delivery and quality products.  To motivate employees at a greater level.  To create and obtain more customers and their loyalty. 29
  30. 30. MP Birla Institute of Management Castrol Shekar Agencies ORGANIZATIONAL STRUCTURE 30
  31. 31. MP Birla Institute of Management Castrol Shekar Agencies2. ORGANIZATIONAL STRUCTURE2.1 CORPORATE ORGANIZATIONAL STRUCTURECastrol Shekar Agencies was established as a sole proprietorship in 1998 with theintention of selling quality lubes along with unmatchable solutions and end to endservices to the manufacturing world in Bangalore. Proprietor - Rajshekar. G. Rao Operations Manager - Hari Prasad Sales Managers - Mani Srinivas Finance Manager - Ranjini Marketing Manager - Gowda Accounts Head - Shradha 31
  32. 32. MP Birla Institute of Management Castrol Shekar Agencies2.2 DEPARTMENTAL ORGANIZATION STRUCTURE Proprietor Operations Head Finance Marketing Manager Sales Managers ManagerAs we can see in this structure Castrol Shekar Agency is a flat organization where theProprietor and the Operations Head take major decisions and guide the respectiveteams.2.3 AUTHORITY AND RESPONSIBILTY RELATIONSHIPThe Proprietor is the central point. The orders are given by the Proprietor aided by theOperations Head and the orders are followed by the various departments. There are strictguidelines to be adhered to and the whole system is rule bound. Any process followed has togo through all the formalities.In each department there is a head who has the responsibility of ensuring that all the tasks aretaken care of without any problem. The Operations Head delegates the work to the manager 32
  33. 33. MP Birla Institute of Management Castrol Shekar Agenciesand gives a timeline for the end of the task. The manager then takes the task to his team andensures that the task is done by the team.The manager usually delegates the work to the head of department for that area ofspecialization and follows up with the head for further correspondence. The head will thendelegate the task to the team members and ask them to finish the work in the requiredtimeline. On completion of the work, the team hands over the work to the head for reviewand then it’s given to the manager. This way there is a process flow in the way the work isdelegated and completed. 33
  34. 34. MP Birla Institute of Management Castrol Shekar Agencies FUNCTIONAL AREAS 34
  35. 35. MP Birla Institute of Management Castrol Shekar Agencies3. FUNCTIONAL AREAS3.1 HR DEPARTMENTThe Human resource department is one of the most sidelined department, yet one of themost important one in an organization. The reason being that they handle one of themost unpredictable resource i.e. Man. HR departments refers to the policies andpractices framed for and organization. They include Recruitment, HR Services, TalentManagement, Training and Administration.3.1.1 ObjectivesThe objective of HR is to maximize the return from an organization’s human resource.The activities carried out include:  HR planning  Job analysis and design  Recruitment and selection  Orientation and placement  Training and development  Performance appraisal and job evaluation  Employee and executive remuneration  Employee motivation  Employee welfareThere are basically three sub divisions under the HR department which are CorporateHR, Entity HR and Circle HR. The corporate HR is responsible for making policies,implementing suggestions and is also involved in strategic planning. The entity HRprovides targets for the circle HR and is mainly involved in execution of the policiesand practices which the corporate HR makes. The circle HR is involved in recruitment,appointment, training, payroll, employee issues etc. 35
  36. 36. MP Birla Institute of Management Castrol Shekar AgenciesThe various HR functions are  Talent Acquisition  Talent Development  Talent ManagementThe talent acquisition is mostly done nowadays through consultancies. The companiessource the recruitment process out to consultancies and the best people selected by theconsultancies are interviewed and hired. Also talent acquisition is done through campusplacement where the company goes to the respective colleges and then selects thetalent.Under talent management, we have the performance management system which keeps atrack of the employee’s performance. Then based on the performance, the managementwill take a decision as to whether training should be given to the employee. Thenslowly the career planning for the employee will be given by the company and alsosuggestions on how the employee can mould his career and go forward is also given bythe company.The recruitment process in Shekar agencies is a three step activity; first the planning formanpower is done, then the sourcing activity takes place where resumes of thecandidates are chosen and then their interview is taken. First the functional interview istaken and then the HR interview is taken. Finally step three is negotiating the CTC withthe candidate and offer is made.3.2 MARKETING DEPARTMENTThe process by which companies create customer interest in products or services iscalled marketing. It generates the strategy that underlies sales techniques, businesscommunication and business development. It is an integrated process through which thecompanies build strong customer relationships and create value for their customers andfor themselves.Marketing is used to identify the customer, to keep the customer, and to satisfy thecustomer. Marketing management is one of the major components of business 36
  37. 37. MP Birla Institute of Management Castrol Shekar Agenciesmanagement. Marketing evolved to meet the developing new markets. The termmarketing concept holds that achieving organizational goals depends on knowing theneeds and wants of target markets and delivering the desired satisfactions. It proposesthat in order to satisfy its organizational objectives, an organization should anticipatethe needs and wants of consumers and satisfy these more effectively than competitors.The chief marketing manager is mainly involved in the creative communicationprocess. None of the content given on pamphlets, hoardings etc will be put up withoutgoing through the creative team. The main function of the creative team is to designhoardings, pamphlets, radio jingles, TV ad concepts etc and provide the content of thesame.The marketing HOD (Head of Department) is responsible for the media and tradeplanning and also the research part is taken care by the marketing HOD. The team usesthe print media, Radio, Celebrity promotions, TV ad’s etc as sources of media forpromotion and awareness. The communication team organizes events like photo shoots,outsources the advertisements to ad agencies etc. Any kind of research is carried out bythe research team. Mainly the research helps with problem identification or it helpswith finding out the reasons for the problem. It also helps in finding out the consumerbehavior and likes and dislikes of the consumer.3.3 OPERATIONS DEPARTMENTCastrol Shekar Agencies has two stores in Bangalore. Hence the operations of Shekaragencies are divided into different areas of product lines. And each area has a headcalled a managing head.The operations department has the following functions;  Ensure that the operations in each store take place smoothly  Ensure that the store manager and department managers are carrying out their functions 37
  38. 38. MP Birla Institute of Management Castrol Shekar Agencies3.4 FINANCE DEPARTMENTFinance department is responsible for the financial administration and management ofthe company along with the financial rules and financial guidelines acting in thecompany. Finance department concerns with securing the financial health of thecompany.3.4.1 Objectives  To ensure smooth flow of business by taking care of the financial flows  To optimize the financial resources of the company  To meet the financial expenses in a systematic way  Analyzing risk and returns associated with projects and endeavors taken by the company  Determine the need of working capital in the organization  Determining the pay scales of the employees  Profit maximization of the company and its partners  Receipt of money from the customers and accounting the same  Payment to suppliers and payment of all office expensesThe major sources of revenue for Castrol Shekar Agencies are from the sale of metalworking fluids and high-performance lubes as they contribute the most to theorganizations gross margin.The major expenses are salary of the employees, Rent for office space, marketingfunctions like promotion expenses, gift vouchers etc. The software required for theproper functioning of various programs, stationeries of the like books, pens etc,telephone expenses, electricity expenses and other miscellaneous expenses.3.5 Distribution and Logistics DepartmentsThe D & L team is responsible for ensuring the supply chain is managed without any hassles.As in any distribution and logistics team, the main task is to ensure that the 38
  39. 39. MP Birla Institute of Management Castrol Shekar Agenciesgoods being distributed are well tracked and the logistics are well in place. The D & Lteam takes care of the entire operations of Castrol Shekar Agencies throughoutKarnataka i.e. all stores across Karnataka and it is their responsibility to ensure that therequired goods are reaching the stores on time and that too without any problem. 39
  40. 40. MP Birla Institute of Management Castrol Shekar Agencies SWOT ANALYSIS 40
  41. 41. MP Birla Institute of Management Castrol Shekar Agencies4. SWOT ANALYSISSWOT analysis is a strategic planning method used to evaluate the Strengths,Weaknesses, Opportunities, and Threats involved in a project or in a business venture.It involves specifying the objective of the business venture or project and identifyingthe internal and external factors that are favourable and unfavourable to achieve thatobjective.4.1 STRENGTH AND WEAKNESSStrength  The oldest and the first distributor of Castrol in South-India and hence has a strong customer base.  All executives in Castrol Shekar Agency are technically trained about their product which in turn helps the customers in understanding the technicalities of using their products.  They have a strong financial backup as many investors are pooling in money.  Excellent communication with customers helps in boosting sales and also in word of mouth marketing.  As Castrol is one of the leading lubes company in the world there is no necessary to spend huge money in marketing the products by the distributor.  Executives of Castrol don’t only market their product but they help the customers to imbibe knowledge of the lubricant and its advantages.Weakness  Attrition is high due to market demand for Castrol executives and it impacts the time and cost for training new recruits.  Lack of awareness by the customers as they do not know the full product lines of Castrol available with the distributor. 41
  42. 42. MP Birla Institute of Management Castrol Shekar Agencies4.2 OPPORTUNITIES AND THREATSOpportunities  Expansion in various parts of Karnataka and India.  Introduction of niche products as aerospace sector is growing all across India.  Diversification of their business to Castrol’s retail outlets due to competition from other brands and growth in the lubes industry.Threats  The trained employees of Castrol when they leave Castrol and join their competitors they will reap the benefit of fully trained employees who can convince the customers with technical knowledge also.  As the lubricant market is very strategically placed due to increasing number of competitors, the competitors indulge in poaching with employees from Castrol and by these means they also increase their customer base.  In rural parts there have also been instances where the products were tampered and the same low quality products were sold, which in turn degrades the brand name and lowers the sales numbers due to unsatisfactory customers due to inferior product.4.3 PROBLEM IDENTIFICATION AND SOLUTIONProblem Identification  Sales & Distribution – Shekar Agencies must aim for the sales & distribution team to be more flexible in responding to market dynamics and more accountable by requiring it to document all sales commitments.  Customer Service - The idea of Customer service to keep comprehensive, centralized records of all contacts to enhance customer service and strengthen customer loyalty. 42
  43. 43. MP Birla Institute of Management Castrol Shekar Agencies  Sales Executives – When the executives are expected to market their products by meeting individual customers they skip their rounds and waste time which in turn decreases the business for the distributor.  Due to better technology in the lubes industry the requirement of lubes is fluctuating day to day and this will impact total sales and profits.  The competitors always offer the customers a whooping discount on their products and in comparison to Castrol so it results in the drop of sales.  As attrition is high in this sector it is very challenging in keeping the employees motivated and create loyalty in them.Solution“Motivation” is the key factor to encourage the employees for getting them workingharder and smarter. This can be achieved by introducing reward system which shouldhappen on a continual basis based on the employee’s performance on monetary or non-monetary terms by offering them national and international tours, assets likeautomobiles, electronic gadgets and appliances, appreciation certificates etc. This willhelp in reducing employee downtime as they wish to be more productive than usual toget the rewards and recognitions provided. There needs to be classes on motivationtaken by certified professionals which will improve the employee’s morale. This willalso help in reducing the attrition rate as there is a scope for the employees to improvethemselves on personal and professional front and hence loyalty for the organizationincreases.The “Customer is King”, so they should be provided with quality products followed bygood customer service which is the key factor in creating customer satisfaction andloyalty. In order to create loyalty there should be a clear difference between regular /repeat customers and other customers. The repeat customers need to be given extendedcredit or discounts and need to make them feel special by offering them free samples ofnew products and giving them goodies which in turn will benefit in building customerrelationship. A satisfied customer is always a repeat customer and then becomes a loyalcustomer. Set up of customer rewards program can be as simple as a discount on acustomer’s birthday or as complex as a points system that earns various rewards such as 43
  44. 44. MP Birla Institute of Management Castrol Shekar Agenciesdiscounts on merchandise. Done right, rewards programs might really help buildcustomer loyalty and increase sales. 44
  45. 45. MP Birla Institute of Management Castrol Shekar AgenciesOBSEREVATIONS, SUGGESTIONS AND CONCLUSIONS 45
  46. 46. MP Birla Institute of Management Castrol Shekar Agencies5. OBSERVATIONS, SUGGESTIONS AND CONCLUSIONThe lubricant business is a seasonal business and volume gets affected due to variousseasonal factors. Hence, quarter-on-quarter result comparison will not give the correctpicture. This is the observed data for Castrol sales in volume. Quarter 2 (April- June)and Quarter 4 (Oct-Dec) of the calendar year are generally the best quarters. Sales in kilo litres during June 2010 to December 2011 75 65.1 30 63.4 61.9 63.4 60.4 60.2 58.7 60 24 45 18 30 12 15 7.3 6 3.4 4.3 2.6 - (0.3) (0.3) 0(15) (5.2) -6 Jun_10 Sep_10 Dec_10 Mar_11 Jun_11 Sep_11 Dec_11 Sales in volume % variation in sales Sales of Castrol Shekar Agency Jan - Dec Year Target (kl) Achieved (kl) 2009 572 623 2010 740 860 2011 960 784 2012 750 - 46
  47. 47. MP Birla Institute of Management Castrol Shekar AgenciesObservation made from the sales graph of Castrol and sales figures ofCastrol Shekar AgencyThe above sales graph of Castrol that its sales volume has dropped considerably fromDecember, 2010 to December, 2011 due to fluctuations in the price of raw materials,competition from industry leaders in lubricants, increase in crude oil prices etc whichhas a direct impact on all businesses of Castrol. Castrol Shekar Agencies has also failedin achieving its targeted sales due to the reasons which affected the overall sales ofCastrol.We can clearly infer that Castrol Shekar Agency has suffered from making profits asthey did not meet the target sales. As the distributor of Castrol any impact on the brandssales volume will have a direct or indirect affect on its entire chain and line ofbusinesses.5.1 MAJOR FINDINGS  Castrol Shekar Agency being the pilot distributor in South-India and the sole distributor in Bangalore enjoy large customer base and monopoly in Bangalore.  They believe in delivering quality products to customers and providing after sales services.  The executives of Castrol distributors are well trained and so they brief the advantages of using the right lubricant to the customer which helps in creating customer satisfaction.  The brand name gets associated with the person when he/she works with the organization.  Since Castrol Shekar Agency was a pilot project by Castrol there are lot of opportunities to learn about the history of the distributor and how they faced challenging times and grew to become a major distributor for Castrol in South- India.  Personal growths of the employees are directly related to the performance in work as they are paid high incentives. 47
  48. 48. MP Birla Institute of Management Castrol Shekar Agencies  The Marketing department is its major strength which keeps adopting new plans in order to ensure that the sales of the company increases.  Due to high incentives few employees work for long hours and have shorter weekends to gain that extra bit and recognition in the organization.5.2 SUGGESTIONS  Expanding their business is of major importance because as of now they are the only distributors for Castrol in Bangalore with two branches but as demand increases the distributors will also increase.  Many employees fail to meet the customers who provide business as the employees fake about their where abouts and not meet the customers. In order to avoid this kind of behaviour the organization must penalize such employees by cutting a part of the losses incurred from their salaries.  Communication has to be given well in time. Many a times what happens is the managers expect the employee to do the work as soon as it is communicated and due to the lack of time, they pressurize the employee. This can be avoided by giving the communication well in advance.  The employees deserve some sort of motivation to work and the managers should try and recognize the work of the employees more often and not doing this leads to frustration building up in the employees.  As this a flat organization there is no scope for growth in the organizational hierarchy for employees so the organization must consider in increasing fancy designation titles for the employees. By doing so they get motivated and will work harder, this in turn enables personal growth and organizational growth.  As there is high attrition in this sector and in the organization there is requirement of a “Relationship Officer” who can redress the employee grievances and create a soothing ambience at the work place. This in turn will benefit the organization by increasing employee loyalty towards the organization.  There should be involvement of the lower and middle level employees in the decision making process and the top management should be more flexible towards the same. 48
  49. 49. MP Birla Institute of Management Castrol Shekar Agencies This will create a sense of attachment to the organization in the employees and will feel important to the organization which will create more responsible employees.5.3 Learning’s from the Organizational StudyThe organizational study has given me a very good corporate exposure and a great learningexperience. I was able to learn the practical and theoretical aspects which are applied in theday to day activities of the organizations and are as follows:  Organizational study is one of the best opportunities to face the practical problems, situations which cannot be learned in the classroom.  There should be a proper work life balance and achieving targets is crucial in marketing.  Communication skills are very important.  Customers are the king and they want to be treated like one too with a variety of choices at their disposal.  Work is utmost important and in order to ensure a smooth working flow, the work has to be completed on time.  Coordination between various members is an essential part of working.  Everything is well planned.  Documenting / Recording every transaction of the business are very important for current and future purposes.CONCLUSIONCastrol Shekar agency has a very flat organizational structure enabling them to takequick decisions. As the distributors are stakeholders of the company any fluctuationthat happens in the market that affects the company will affect the distributors as wellas they are a part of the company Castrol itself.In growing times like now the company executives must be a step ahead as thecustomer expects to be briefed about the product, after sales service and the discounts 49
  50. 50. MP Birla Institute of Management Castrol Shekar Agenciesavailable before buying the product. When the company fails to meet the customer’sexpectation there are rival companies waiting to expand their customer base byencroaching into their territory. It is very taxing on the company as there is cut-throatcompetition not only on encroaching into the customer base but also there is highattrition rate of the employees and the competitors are more than willing to pay highersalaries to get the rival companies out performers. The main mantra for all the marketleaders is “Customer Satisfaction” as this increases customer loyalty.The lubricant industry is a seasonal industry so sales do not happen all round the year.The quality of lubricants is improving on a continuous basis and has longer longevitywhich decreases the wear and tear of machines in industries and automobiles for longerduration and it results in fewer requirements of the lubricants dropping the volume ofsales. Hence diversification of the business and its products are very much required.Aerospace is a growing sector all over the world, so the demand for the lubes is alsoincreasing for this sector. All the lube leaders in the world are expanding their stream toaerospace and every other business sector where there is expected growth. 50
  51. 51. MP Birla Institute of Management Castrol Shekar AgenciesANNEXURE Balance Sheet ------------------- in Rs. Cr. ------------------- Castrol Tide Water Oil Continent Petro Dec 11 Mar 12 Mar 11 Sources Of Funds Total Share Capital 247.28 0.87 2.54 Equity Share Capital 247.28 0.87 2.54 Share Application Money 0 0 0.56 Preference Share Capital 0 0 0 Reserves 356.92 307.5 1.38 Revaluation Reserves 0 0 0 Net worth 604.2 308.37 4.48 Secured Loans 0 0 0.51 Unsecured Loans 0 0 0.05 Total Debt 0 0 0.56 Total Liabilities 604.2 308.37 5.04Source: www.moneycontrol.com 51
  52. 52. MP Birla Institute of Management Castrol Shekar Agencies Castrol Tide Water Oil Continent Petro Dec 11 Mar 12 Mar 11 Application Of Funds Gross Block 306.59 127.1 5.64 Less: Accum. Depreciation 194.07 54.04 3.92 Net Block 112.52 73.06 1.72 Capital Work in Progress 31.04 2.35 0 Investments 0 51.75 0 Inventories 300.92 166.38 1.71 Sundry Debtors 218.95 83.45 3.57 Cash and Bank Balance 48.99 34.15 0.04 Total Current Assets 568.86 283.98 5.32 Loans and Advances 195.53 53.16 0.53 Fixed Deposits 500.01 0 0 Total CA, Loans & Advances 1,264.40 337.14 5.85 Deferred Credit 0 0 0 Current Liabilities 518.6 133.26 2.53 Provisions 285.16 22.67 0 Total CL & Provisions 803.76 155.93 2.53 Net Current Assets 460.64 181.21 3.32 Miscellaneous Expenses 0 0 0 Total Assets 604.2 308.37 5.04 Contingent Liabilities 228.98 51.97 0.36 Book Value (Rs) 24.43 3,539.60Source: www.moneycontrol.com 52
  53. 53. MP Birla Institute of Management Castrol Shekar AgenciesBIBLIOGRAPHYMAGAZINES  Company Internal DocumentsWEBSITES  www.businessdictionary.com (accessed on 28th Aug, 2012)  www.crisil.com (accessed on 30th and 31st Aug, 2012)  www.entrepreneur.com (accessed on 28th Aug, 2012)  www.castrol.com (accessed on 27th, 28th, 29th 30th and 31st Aug, 2012)  www.kotaksecurities.com (accessed on 29th and 30th Aug, 2012)  www.moneycontrol.com (accessed on 31st Aug, 2012) 53

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