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Internship Report

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Sip Zeiss Sip Zeiss Document Transcript

  • Indus Business Academy Page 1 (Summer Internship Project) AT Carl Zeiss India (Bangalore) Pvt. Ltd Submitted in partial fulfillment of the requirementsof Indus Business Academy for PostGraduate Diploma in Management Submitted by: Chinmoy Mahapatra Reg No: FPB1214/032 Under the guidance of Internal Guide: External Guide: Prof. Suresh Chandra Mrs. BharthiVazrala Asst. Dean (Exams) HRManager Indus Business Academy Carl Zeiss India Bangalore Bangalore 560062 560099
  • Indus Business Academy Page 2 SIP Certificate
  • Indus Business Academy Page 3 Director’s Certificate This is to certify that Chinmoy Mahapatra is a bonafied student of Indus Business Academy, Bangalore and is presently pursuing his Post Graduate Diploma in Management. He has submitted his Project titled “An Organizational insight into HR Auditing (Personal File Management)& Market Mapping (Recruitment)” at Carl Zeiss India (Bangalore)Pvt Ltd.in particular fulfillment of the requirement of Post Graduate Diploma in Management of Indus Business Academy. This project has not been previously submitted as part of another degree or diploma of another Business School or University. Dr. Subhash Sharma (Dean) Indus Business Academy Lakshmipura, Thataguni Post, Kanakapura Main Road, Bangalore-560062 Tel: +91-80-28435931/2/3/4 Fax: +91-80-28435935 Email: info@ibainternational.org URL: www.ibainternational.org
  • Indus Business Academy Page 4 Mentor’s Certificate This is to certify that Chinmoy Mahapatra is a bonafied student of Indus Business Academy, Bangalore and is presently pursuing his Post Graduate Diploma in Management. Under my guidance he has submitted his project titled “An Organizational insight into HR Auditing (Personal File Management)& Market Mapping (Recruitment)” at Carl Zeiss India (Bangalore) Pvt Ltd. in particular fulfillment of the requirement by Post Graduate Diploma in Management of Indus Business Academy. This paper has not been previously submitted as part of another degree or diploma of another Business School or University. Prof. Suresh Chandra (Mentor) Indus Business Academy Lakshmipura, Thataguni Post, Kanakapura Main Road, Bangalore-560062 Tel: +91-80-28435931/2/3/4 Fax: +91-80-28435935 Email:-info@ibainternational.org URL:-www.ibainternational.org
  • Indus Business Academy Page 5 Declaration I hereby declare that project Titled “An Organizational insight into HR Auditing (Personal File Management)& Market Mapping (Recruitment)” at Carl Zeiss India (Bangalore) Pvt Ltd. is an original piece of research work carried out under the guidance and supervision of Mrs. BharthiVazrala (Talent Acquisition Manager HR Carl Zeiss India) and Prof. Suresh Chandra (Assistant Dean-Exam IBA). The information collected is from genuine and authentic sources. The work has been submitted in particular fulfillment of the academic requirement of our college Indus Business Academy. Place:-Bangalore Signature:……..………………. Date: Chinmoy Mahapatra PGDM-2012-2014 FPB1214/032 INDUS BUSINESS ACADEMY
  • Indus Business Academy Page 6 ACKNOWLEDGEMENT I wish to express my indebted gratitude and special thanks toMrs.BharthiVazrala Human Resources Manager, for permitting me to work on my project “An Organizational insight into HR Auditing (Personal File Management)& Market Mapping (Recruitment)” at Carl Zeiss India (Bangalore) Pvt Ltd.Providingher ample support, valuable guidance, and encouragement that has enabled me to accomplish the study. I also express my deepest thanks to Prof. Suresh Chandra (Internal Guide / Mentor) for his guidance and support. He helped all the time whenever needed and gave the right direction towards completion of the project. Lastly I express my pro-founded gratitude to my Faculty members and Staff of Carl Zeiss India (Bangalore).
  • Indus Business Academy Page 7 Table of Contents Sl No. Topics Page No. 1 Abstract 8 2 Introduction 9 3 Fields of work 11 4 Industry Profile 12 5 Mission & Vision 15 6 Company Profile 16 7 Products 18 8 History of Carl Zeiss 23 9 SWOT Analysis 43 10 Competitors Analysis 44 11 Organizational Structure of Carl Zeiss 46 12 HR Auditing (Personal File Management) 63 13 Market Mapping (Recruitment) 65 14 Findings 66 15 Recommendations 67 16 Learning‟s 68 17 Conclusion 69 18 Reference 70
  • Indus Business Academy Page 8 Abstract The objective of this study titled “An Organizational insight into HR Auditing (Personal File Management)&Market Mapping (Recruitment)” at CARL ZEISS INDIA (BANGALORE) PVT. LTD is to have a real-time insightinto the work culture and process being followed at CARL ZEISS INDIA. The goal of an internship in human resources is to apply knowledge acquired in the classroom to real-world situations, as well as gain the skills and experience that is necessary to prepare the student for a successful career in human resources. Internship programs are designed to provide students with work experience that complements their formal education. For example, an HR student could use their educational knowledge on staffing to assist a company‟s recruiting department in attracting top candidates for open positions. “This form of learning helps students to synthesize classroom theory with real-life practices.” Through internships, students are able to obtain a realistic perspective of the working world, which companies value. They are also able to gain marketable work experience. This makes them more attractive to potential employers after graduation. Students are able to make valuable business contacts that may assist in finding permanent employment down the road. The report covers the overall foundation and organization structure, departments, functions, procedures and policies of the company. The study also includes the SWOT (Strength, Weakness, Opportunity and Threats) analysis of the company in the present situation which is an output of the 3.5 months observational study at the company. It is intended to analyse comprehensively and understand thoroughly the various departments, services, functions and company`s approach towards using technology, Corporate Social Responsibility and work environment. In the present business world, technology is improved on a constant basis. Carl Zeiss also known as the Pioneers and Innovators in various fields shows how to stay ahead of competition no matter which industry they operate in. The study is based on the relevant data and materials obtained from the organization and direct conversations with authorities and staff members to get more accurate and up to date information. Each activity of the company was studied carefully with the available data and material. The markets that Carl Zeiss operates in are mobilized by only Quality. Hence the company provides only the best for its Customers through superior technology and uncompromising Quality.
  • Indus Business Academy Page 9 Introduction The Carl Zeiss Group is an international leader in the fields of optics and optoelectronics. In fiscal year 2011/12 the company's approximately 24,000 employees generated revenue of nearly 4.2 billion euros. In the markets for Industrial Solutions, Research Solutions, Medical Technology and Consumer Optics, Carl Zeiss has contributed to technological progress for more than 160 years and enhances the quality of life of many people around the globe. The Carl Zeiss Group develops and produces planetariums, eyeglass lenses, camera, cine lenses and binoculars as well as solutions for biomedical research, medical technology and the semiconductor, automotive and mechanical engineering industries. Carl Zeiss is present in over 40 countries around the globe with about 40 production facilities, over 50 sales and service locations and approximately 20 research and development sites. Carl Zeiss AG is fully owned by the Carl Zeiss Stiftung (Carl Zeiss Foundation). Founded in 1846 in Jena, the company is headquartered in Oberkochen, Germany. The name Carl Zeiss stands for the highest quality, precision, tradition, and above all, innovation. It ranks among the leaders in the Medical and Research Solutions and Industrial Solutions market. Consumers are primarily familiar with ZEISS camera, cine lenses, planetariums, binoculars and eyeglass lenses. Carl Zeiss India (Bangalore) Pvt Ltd. functions as a sales and service point to its customers in the subcontinent. The company started its operations in India in 1999 with Bangalore as its headquarters. It reports directly to Carl Zeiss Oberkochen, Germany. The Indian Subsidiary operates for Carl Zeiss Industrial Metrology, Carl Zeiss Meditec, Carl Zeiss Micro Imaging, and Carl Zeiss Nano Technology Systems. The head office is situated in a prime location near the Ulsoor Lake, Bangalore, which provides it a prominent place to locally carry out its operations. With just a decade of starting operations in India, Carl Zeiss has made a mark in the industry by being the market leader in majority of its operating areas. Eyewear witnessing robust growth: India‟s eyewear industry is becoming stronger and larger in both volume and value terms year-on-year. Manufacturers and retailers are now concentrating on both urban and rural markets by launching brands across all price points – mass, economy and premium – as to target different income groups. The changing lifestyles of Indians are also supporting the robust growth as the industry enjoys a growing consumer group amidst the growing number of employees in multinational companies, particularly the information technology sector. The increasing awareness of the usage of eyewear products in India by youth and middle-aged people continues to support its strong double-digit growth.
  • Indus Business Academy Page 10 National players are growing faster: National players continue to expand their base from Tier 1 cities to other smaller cities in India, concentrating on the rising population in Tier 3 cities. Companies are following a different pricing strategy and different product ranges for Tier 1 vs. Tier 3 cities. The national players, such as Titan Industries with its Titan Eye+ stores, are growing their presence in Tier 3 cities and also distributing their products across India. The same trend is followed by other players like Vision Express, GKB Opticals and many more in order to grow at the market rate, and these players have an added advantage over the small players to expand rapidly. The national players are creating tie-ups with local ophthalmologists to sell their eyewear products across India. Retailers also provide loyalty customer cards for regular buyers and a special discount for introducing the new customers. Exclusive branded outlets are making their way: The leading industry players are increasing their number of exclusive branded outlets (EBOs) rapidly in the major cities of India, like Titan Industries‟ Titan Eye+ which boasted around 150 stores in 2011, with the total count reaching 205 as of July 2012. The same trend is followed by other retailers like Vision Express, Himalaya Opticals and many more. These EBOs have helped manufacturers and retailers to gain more market share in terms of value and volume. The manufacturers and retailers are opening up their stores in smaller cities of India and this will give them the competitive advantage for more product visibility and reach to rural India. Increasing awareness will lead to higher eyewear sales in future: The number of medical camps in rural India is increasing year on year and rural consumers are benefitting from advice on their health conditions including their eyesight. These camps are helping the companies distribute free lenses and frames for the first-time buyers and giving them the advantage of achieving brand loyalty, and in some cases these manufacturers provide discounts in these medical camps and book orders. The companies are also conducting the annual medical check-up camps for their employees, which will provide an opportunity to the manufacturers to create awareness about eyesight and to promote their products.
  • Indus Business Academy Page 11 Fields of work HR Auditing (Personal File Management): It is mechanism to review the current HR policies, practices and systems to ensure that they fulfil the set rules and regulations. The audit also helps in identifying the areas of improvement in the HR function. Personal File Management: Personal Records are records pertaining to employees of an organization. These records are factual and comprehensive information related to employee and employment details. All information with effect to human resources in the organization is kept in a systematic order. Such records are helpful to a manager in various decision making areas. Personnel records are maintained for formulating and reviewing personnel policies and procedures. Complete details about all employees are maintained in personnel records, such as, name, date of birth, marital status, academic qualifications, professional qualifications, previous employment details, etc. The HR audit covers various functions of HR like Recruitment, Compensation & Benefits, Performance evaluation, Termination Process and exit interviews etc. Market Mapping (Recruitment): It is the process of collecting market information by confidentially assessing prospective candidates from a distance without interviewing them or conducting a full search. It saves time and offers valuable insights into the market that can facilitate decision making in the case of confidential projects. Market Mapping Stages: Project Planning Market study and research Networking, Identification of Target Companies and Referrals Approaching, Screening and Interviewing Candidates Compiling Data & Benchmarking Presentation of Talent Monitoring Report Upgrade to full Search if required
  • Indus Business Academy Page 12 Industry Profile The enhancement of an image is characterized by optical instruments and lenses for studying the details of the subject as well as characteristics of light. The first and foremost optical instruments were the telescopes and microscopes, used for magnifying the images of the distant objects and smaller tiny objects respectively. During Galilean era these instruments evolved and found its application in other areas too like electromagnetic spectrum. The optical instruments and lenses form a part of our daily life depicting its presence in commonly used devices like mobiles and binoculars. The wide usage of contact lens rather than the glasses is the upcoming trend which is driving the market. The efficiency and accuracy of the contact lens are some of the main features attracting the end users thereby fuelling the optical lens market. The curiosity to know and study the universe as well as the structure of various tiny objects is pushing in the development of the optical instruments. Many optical instruments are widely used in operating patients which helps in accuracy. Various dental instruments features optical lenses used for dental operations helping dentists to get a precision and utilize their skills at their optimum levels. Many operations are now characterized by optical instruments helping medical practitioners to reduce the number of incisions over the body. Research labs all over the world are the major source and driving factor of optical instruments and lens market. Some of the market players in this industry are Canon, Nikon, Olympus, and others. Increasing usage and acceptance of eyewear products in general, and prescription eyewear in particular, is a critical driver for market growth. With a large percentage of the population afflicted with conditions such as myopia, hyperopia, presbyopia and astigmatism, the demand for corrective eyewear is on the rise. Plano sunglasses, which are sunglasses fitted with non-Rx lenses, provide protection for the eyes against harmful UV radiation. These non-prescription products are expected to witness lower demand in the organized sector in developing geographies; however, they contribute largely to the overall revenue due to high retail prices. Spectacles enjoy widespread global popularity owing to high degree of penetration in developing and developed economies. Due to lifestyle changes, which involve increasing formal employment and extensive usage of computers, the number of individuals using corrective eyewear is also on the incline. Contact lenses are gaining user acceptance due to increased awareness and convenience of use. Daily disposable and weekly disposable contact lenses are expected to be the preferred modality, due to their cost effectiveness and low dependency on eye care products. The low availability of eyesight testing centers and eye examinations in developing regions has resulted in lower penetration of eyewear products in these geographies. This could emerge as a viable opportunity for market players, as healthcare services are essential for the prescription and renewal of corrective eyewear. Key players in this market include Johnson & Johnson, Bausch & Lomb,and Essilor among others.
  • Indus Business Academy Page 13 It is estimated that approximately 28% of the population in India requires some sort of vision correction. This makes the market size for any type of lens a whopping 310 million individuals. The organized sector (including organized sector imports) accounts for a mere 16-18% of this market. Which means, a mere 50 million people use either of the lenses offered by the organized sector, the remaining is catered to (if at all) by the unorganized sector that includes cottage industry like units around Kolkata and Delhi or cheap imports from China, Philippines and Thailand. Coming back to industry statistics, a majority of the organized sector vision care patients; almost 98%, prefer to use spectacle lenses. Since lenses are normally bought in pairs it translates to 98 million spectacle lenses sold every year. Leading global players or manufacturers (also called the “Lens Casters”) are Essilor, Carl Zeiss and Hoya among others, with Essilor being a clear market leader. Around 60% of the share of sale is of mineral (glass) lenses. The remaining are synthetic lenses commonly called CR 39, Polycarbonate etc. The latter is growing at the rate of 16% annually while the mineral lens segment is reaching a plateau. The manner in which the raw lens manufactured by the casters reaches the neighbourhood optician is an interesting, complex and financially rewarding business model. Contact Lenses:They are of two types;the conventional contact lens and the disposable ones. The former are used for at least a year while the latter have to be bought at least three or four times a year. Now days there are even Daily disposable Contact lenses but with very few users. Conventional contact lens buyers are a majority whereas disposable contact lens account for 35% of contact lens users. Contact lenses are also sold in pairs and approximately 5 million of those are sold annually amongst a million users. Major players are Bausch & Lomb, Johnson & Johnsonand Ciba, with B&L accounting for a larger share (60%) of the conventional contact lens. The total size of the organized sector market for lenses in India is estimated at Rs.1500 Crores, which includes Rs.100 Crores of contact lenses. Considering that India is a country of a Billion plus people and with most people normally requiring vision correction beyond 40 this is one complicated but attractive market to consider. There are business opportunities at many levels within this industry. Eyewear market in India has been driven by the changing demographics, fashion culture and changing health care practices in India. With the advent of new varieties of eyewear products incorporating latest technology, the revenues are set to increase. Eyewear industry in India is subject to an array of different factors, such as people with vision impairments and the overall disposable incomes in the country, which play an important role in determining the revenues from various eyewear segments. Spectacle lenses were the largest selling category in terms of revenue, in the fiscal year 2013. The eyewear market in India is comprised of various manufacturers that specialize in designing and producing eyewear products in different segments. Along with the
  • Indus Business Academy Page 14 presence of leading eyewear companies in the organized sector, market in India is primarily driven by the revenues of a huge number of manufacturers in the unorganized segment. Essilor was the market leader for spectacle lenses in the organized spectacle lens market while Bausch & Lomb dominated the contact lens segment in FY'2013. Ray-Ban was the largest selling sunglass brand in the same year. Eyewear market in India has showcased several emerging trend over the past few years. One of the most definitive of these trends has been the advent of the online channel for the sale of eyewear products. Several online eyewear retailers have surfaced in the past couple of years, giving rise to a new platform for eyewear delivery. Lens kart accounted for the majority of the market share with GKB Optical being the second largest player on the basis of revenues. Lens trade, Lens direct, Yebhi and Rediff Shopping were some of the small scale online eyewear retailers in FY'2013. The market for eyewear in India is changing at a brisk rate. Technological advancements and demand of eyewear from an ever growing base of fashion conscious customers and people with vision impairments, as well as the transition of eyewear manufacturers from the unorganized to the organized segment have been significantly changing the market. According to a new market report published by Transparency Market Research “Eyewear Market (Spectacles, Contact Lenses, Plano Sunglasses) – Global Industry Analysis, Size, Share, Growth and Forecast, 2012 - 2018,” the demand for eyewear products was over 2,600 million units in 2011, and is expected to grow at a CAGR of 3.7% from 2012 to 2018. In terms of revenue, the market was valued at approximately USD 81 billion in 2011 and is expected to reach USD 130 billion by 2018. High degree of market penetration of corrective eyewear such as spectacles/eyeglasses is primarily responsible for the burgeoning demand for these products. The increasing number of individuals requiring prescription eyewear is also a major driving force for the growth of this market. Expansion of the wearer base can be mainly attributed to children requiring vision correction at an early age due to lifestyle changes, and the rapidly increasing aging population which requires progressive lenses. However, increasing awareness and acceptance of corrective or refractive surgeries to eliminate the use of corrective eyewear is expected to inhibit market growth over the next five years. Spectacles (spectacle lenses and spectacle frames) are the largest product segment of eyewear in terms of demand and revenue, and were valued at over USD 63 billion in 2011. Contact lenses are another major eyewear product, and are expected to enjoy increasing consumer demand. However, this is not expected to translate into high revenues owing to the relatively lower retail prices of contact lenses compared to other eyewear products. Increasing usage and acceptance of eyewear products in general, and prescription eyewear in particular, is a critical driver for market growth.
  • Indus Business Academy Page 15 Mission & Vision Vision
  • Indus Business Academy Page 16 Company Profile The Carl Zeiss Group is an international leader in the fields of optics and optoelectronics. In fiscal year 2011/12 the company's approximately 24,000 employees generated revenue of nearly 4.2 billion euros. In the markets for Industrial Solutions, Research Solutions, Medical Technology and Consumer Optics, Carl Zeiss has contributed to technological progress for more than 160 years and enhances the quality of life of many people around the globe. The Carl Zeiss Group develops and produces planetariums, eyeglass lenses, camera lenses, cine lenses and binoculars as well as solutions for biomedical research, medical technology, semiconductor, automotive and mechanical engineering industries. Carl Zeiss is present in over 40 countries around the globe with about 40 production facilities, over 50 sales and service locations and approximately 20 research and development sites. Carl Zeiss AG is fully owned by the Carl Zeiss Stiftung (Carl Zeiss Foundation). Founded in 1846 in Jena, the company is headquartered in Oberkochen, Germany. Carl Zeiss AG develops, produces, and sells high-quality precision-engineered optical glass and electronic products, including ophthalmic products, binoculars, camera lenses, medical and surgical instruments, microscopes, lithography optics for semiconductor production, and measuring instruments. As an innovative provider of products and services in a future-oriented key industry, Carl Zeiss numbers among the most research-intensive high-tech companies. Carl Zeiss has, as a percentage of sales, one of Germany's highest research and development (R&D) budgets; each year the company plows about 10% of its revenues into R&D, and 16% of its employees work in R&D. With 14 production plants in seven countries including Germany, France, Hungary, the United States of America, Mexico, China, and Belarus; branches and subsidiaries in about 32 countries, and a sales network encompassing more than 100 countries around the world, Carl Zeiss generates 84% of its revenues outside Germany. Other European nations account for 47% of sales, with America bringing in 23% and Asia responsible for 13%. It was founded as a workshop for precision mechanics and optics in the German city of Jena in 1846. There are currently more than 13,000 employees in the Group. Having offices in over 32 countries and represented in more than 100 countries, with production centres in Europe, North America, Central America and Asia. The most important task is to enable science and technology to go beyond what man can see. “We make it visible”the corporate slogan and a promise to customers to open doors that were previously sealed.They are market leaders in the majority of their field‟s. Carl Zeiss is a leading international group of companies operating worldwide in the optical and opto-electronic industry. The business groups are generally ranked first or second in the strategic markets of medical and research solutions, industrial solutions and lifestyle products. They offer products and services for biomedical research and medical technology, system
  • Indus Business Academy Page 17 solutions for the semiconductor, automotive and mechanical engineering industries, as well as high-quality consumer goods such as camera lenses and binoculars. Carl Zeiss Meditec wants to clear things up in the eyes of its customers. The company manufactures ophthalmic diagnostic and therapeutic products, including examination and surgical microscopes, diagnostic systems, laser surgery equipment, and intraocular lenses. It sells directly to ophthalmology clinics and private practitioners and takes advantage of the worldwide distribution network of its controlling parent Carl Zeiss. Carl Zeiss Meditec also makes surgical microscopes used in neurological, ear, nose, and throat (ENT) surgeries, including tumor removal and nerve reconstruction procedures. Carl Zeiss makes products that enhance visibility. Microscopes, planetarium projectors, and camera lenses are part of a portfolio that makes the company a leader in optical and optoelectronic manufacturing. It operates in more than 30 countries through five business groups -- Semiconductor Manufacturing Technology, Medical Technology, Microscopy, Industrial Metrology, Consumer Optics/Optronics -- and a joint venture called Carl Zeiss Vision, the 2nd global leaders in eyeglass lenses. Its production facilities are located in Europe, North America, Central America, and Asia. Carl Zeiss is a subsidiary of Carl-Zeiss-Stiftung (Carl Zeiss Foundation).
  • Indus Business Academy Page 18 Products Carl Zeiss concentrates on the markets for Medical and Research Solutions, Industrial Solutions and Lifestyle Products. The company benefits from the future- focused trends in these areas: the world population is growing and life expectancy is rising, therefore triggering growth in the demand for diagnostic and therapy products. Patients and doctors expect constant improvements in therapy outcomes as well as modern diagnostic and treatment methods. The demands being made on research instruments – in the pharmaceuticals industry, for example – are also increasing. These trends open up further growth opportunities in the Medical and Research Solutions market for Carl Zeiss. Current drivers of industrial development are digitization, automation and nanotechnology. Many everyday products use state-of-the-art components from the microchip industry – in rapidly increasing numbers. With its innovative products and systems, Carl Zeiss is enabling progress in the semiconductor industry. Metrology solutions from Carl Zeiss ensure high standards of quality in the automotive industry, mechanical engineering and in the development and manufacture of advanced systems for environmentally friendly energy generation. ZEISS planetarium projectors conjure up the magic of the stars projected onto the domes of numerous planetariums around the globe, fascinating crowds of visitors and providing unforgettable insights into the universe. ZEISS cine lenses are used to film Hollywood movies that thrill audiences with their brilliant images. With the cinemizer video goggles, binoculars, spotting scopes and photographic lenses for cameras, cell phones and webcams, Carl Zeiss delivers quality in and outside the home, and plays its part in enhancing the quality of our lives. Medical Technology Vision Care Consumer Optics
  • Indus Business Academy Page 19 Industrial Metrology Microscopy Microscopy In a few years, microchips will become even smaller and more powerful for organizers, laptops and mobile phones than those of today, and they will make life increasingly comfortable and convenient. As the global market leader in lithography systems- the basic technology required for microchip production. Carl Zeiss is laying the foundation for the leading-edge technology of tomorrow with its innovative developments. In addition to optics for the fabrication of microchips, Carl Zeiss is also the leader in electron and ion beam technologies: Electron and ion beam microscopes make it possible to visualize even the smallest structures that light can no longer image. Product Range: Lithography Optics: - Imaging and illumination systems for wafer steeper‟s and wafer scanners for the fabrication of microchips. Laser Optics: - Components and modules for high-performance lasers for the fabrication of microchips - Modules and subsystems for wafer inspection - Optical systems for the manufacture of flat panel displays
  • Indus Business Academy Page 20 Semiconductor Metrology Systems: - Optical inspection systems for quality assurance in the production of photo masks - Electronic beam-based repair systems for defects on photo masks Nano Technology Systems: - Scanning electron microscopes - Helium-ion microscopes - CrossBeam FIB workstations - Energy-filter transmission electron microscopes Medical Technology: Medical technology from Carl Zeiss helps surgeons achieve optimal treatment outcomes. The ZEISS brand delivers what it promises: Innovative technology, High quality, and Ease of use. For more efficient treatments combined with safety. In this way, patients also benefit from the innovative, leading-edge technology produced by Carl Zeiss. Product Range: In the field of ophthalmology, Carl Zeiss Meditec offers total solutions for the four main diseases of the eye: Refraction, Cataract, Glaucoma and Retinal disorders with a range of perfectly matched diagnostic and Visualization systems, Lasers, intraocular lenses and consumables, Carl Zeiss Meditec provides solutions for effective and efficient diseases management- from diagnosis to aftercare. Systems such as the IOLMaster and Stratus OCT define the standard on the market. The superior technology of the latest innovations, Cirrus and Visumax, continues this tradition. In the fields of neurosurgery and ENT surgery, Carl Zeiss Meditec is the world‟s leading provider of surgical microscopes and microsurgical visualization solutions. The medical technology portfolio is rounded off by visualization systems for office- based physicians and promising future-oriented technologies such as intraoperative radiation therapy. Unique systems and technologies such as OPMI Pentero, OPMI Vario, BLUE 400 and INFRARED 800 are innovative pillars of business.
  • Indus Business Academy Page 21 Industrial Metrology: With its innovative measuring systems and software solutions, Carl Zeiss delivers the perfect measuring quality standards. From development to production, measuring solutions from Carl Zeiss help make airplanes safer, cars more efficient and plastic components more resilient. Without measuring technology, the development, economical volume production and quality of everyday products would be inconceivable. Industrial metrology from Carl Zeiss provides reliable measuring results and ensures quality – from large parts for wind turbines to tiny micro parts. Measuring Technology from Carl Zeiss is used in High precision measuring systems for industrial applications and also for services in all fields of multidimensional measurement. Product Range: - Bridge-type measuring machines - Horizontal-arm measuring machines - Optical-contact measuring machines - Computer tomography with dimensional measuring results and materials inspection - Software solutions and services for all multidimensional measuring tasks Vision Care: Over 200 million people world over wear eyeglass lenses from Carl Zeiss Vision. Good vision is key to the quality of life we enjoy. The name Carl Zeiss stands for visual excellence: the right lenses open up whole new dimensions of visual perception. No other sense provides us with as many impressions as sight. What we see with our eyes conveys information and inspires us, making it an important basis for building and engendering trust. Carl Zeiss Vision is the world number two in the eyeglass market. Around the globe, two people per second decide to purchase eyeglass lenses from Carl Zeiss Vision. The company offers eye care professionals instruments to optimize the fitting of glasses. The company is equally owned by Carl Zeiss Ag and a financial investor. Consumer Optics: To ensure the desired result, binoculars must offer leading-edge performance – such as those from Carl Zeiss. Many people all over the world place their trust in the quality of ZEISS when it comes to binoculars for the outdoors. Carl Zeiss delivers in its promise: Imaging excellence without compromise. This is true not only of
  • Indus Business Academy Page 22 binoculars and spotting scopes, but also of digital or analog still, video and movie cameras and planetarium technology. Carl Zeiss brings the night sky to planetariums and breathtakingly crisp images to the silver screen. Binoculars deliver perfect details for nature observation and optoelectronic solutions from Carl Zeiss ensure more security. Millions of people around the world value the quality and precision of optics from Carl Zeiss in digital cameras, camcorders and camera phones. Product Range: - Thermal imagers - Laser rangefinders - Stabilized and unstabilized periscopes - Stabilized multi-sensor platforms - Head tracker systems - Infrared surveillance systems - Defence optics - Modules and subsystems for space applications Sports Optics: - Riflescopes - Rangefinders - Binoculars - Spotting Scopes - Integrated digital cameras Camera Lenses: From movies to cell phone lenses and webcams, from space to quality assurance on a conveyor belt: everyone becomes a witness to extraordinary performance of Carl Zeiss lenses every day.
  • Indus Business Academy Page 23 History Carl Zeiss (1816-1888) CARL ZEISS: Carl Friedrich Zeiss was born in Weimar on 11 September 1816 as the fifth of 12 children. Here, he attended the local high school up to the penultimate class, where he passed a special graduation exam enabling him to study natural sciences at a university. The young Carl Zeiss showed a keen interest in technology. In 1846, he opened his own business. Initially, he designed, built and repaired all possible chemical and physical instruments by himself and, at the same time, sold telescopes, microscopes, drawing apparatus, scales, thermometers and other devices that he purchased from dealers. Zeiss focused his production activities on microscopes. In his workshop, he attached central importance to quality and precision. He destroyed any microscopes his staff made that did not meet his high requirements with his own hands on the anvil. In 1861 Carl Zeiss received a number of awards such as, the first prize of the 2nd Thuringia Industrial Exhibition and a silver medal for his “excellent microscopes and their accessory devices”.1866 saw the start of his collaboration with Ernst Abbe with the goal of placing the production of objective lenses on a solid mathematical foundation. From 1872, only lenses produced in line with Abbe‟s calculations were sold. The success of these lenses led to the growth of the business. Zeiss collaborated with Otto Schott who developed and later produced new types of optical glass in Jena commenced in 1882. In December 1885, Zeiss suffered his first stroke, from which he never recovered. His condition constantly deteriorated and, after further strokes in the last three months of 1888, he passed away in Jena on 3 December 1888.
  • Indus Business Academy Page 24 Ernst Abbe (1840-1905) ERNST ABBE: Ernst Abbe was a physicist, inventor, entrepreneur and social reformer. In all areas in which he was active, he made outstanding achievements and therefore played a decisive role in the technical lead, business success and continued existence of the two companies Carl Zeiss and SCHOTT. Abbe was born in Eisenach on 23 January 1840 and grew up in modest circumstances. With the aid of a scholarship, he was able to begin his studies in mathematics and physics. He studied in Jena and Gottingen from 1857 to 1861. In 1863 he qualified as a lecturer in Jena, where he then worked on a private basis. Already as a young scientist, Abbe placed his knowledge at the disposal of Carl Zeiss. In 1866 he became a member of Zeiss‟ scientific staff. From 1870, Abbe was a professor at the University of Jena. His theory of image formation in the microscope made him the founder of scientific optics and gave Carl Zeiss an important technological lead: while microscopes had been previously built on a trial-and-error basis, they were constructed on a sound mathematical foundation from 1872 onwards and therefore displayed considerably better optical properties. This led to pioneering research in biology and medicine. In 1876, Zeiss made his committed employee his partner and appointed him as his Successor as the head of the company. After the death of the company‟s founder in 1888 and the acquisition of shares from Zeiss‟ heirs, Ernst Abbe became the sole director of the enterprise. Abbe was an extremely successful entrepreneur. In 1862, 25 people worked at Carl Zeiss, generating revenues of 12,618 marks. In the year of Ernst Abbe‟ death, the enterprise had grown to just under 1,400 employees, with revenues totaling over 5 million marks. With his foundation statutes of 1896, Abbe gave the enterprise a unique corporate constitution. In addition to revolutionary stipulations on corporate management and legally enshrined labor relations, the constitution reflected Abbe‟s high degree of social commitment. Some examples include co-determination rights for the employees, paid vacation, profit-sharing, a documented right to retirement pensions, continued payment of wages in the event of illness and, from 1900, the eight-hour
  • Indus Business Academy Page 25 working day. This made the foundation companies Carl Zeiss and SCHOTT forerunners of modern social legislation. Abbe‟s amazing creative power is impressively underscored in his numerous inventions and in his many publications on scientific, entrepreneurial and social issues. He died in Jena on 14 January 1905. How it started: On 17 November 1846, the 30-year old mechanic Carl Zeiss opened a workshop and a small store in Jena‟s Neugasse No. 7. In just a few months, Zeiss, who not only had a solid theoretical basis and good practical experience, but was also well acquainted with scientists and mathematicians at the University of Jena, had already found clientele for whom he repaired scientific instruments or produced them according to the customer‟s specifications. In addition, he offered eyeglasses, chemical scales, drawing apparatuses, telescopes, etc. In 1847, his business success encouraged Zeiss to hire an assistant and an apprentice, and to rent two workrooms in Wagnergasse No. 34. In the summer of 1847, following the advice of his teacher, the botanist Mattias Jacob Schleiden, Zeiss devoted his attention to the building of simple microscopes. In September 1847, he produced the first low-power microscopes. At the beginning of the 1850s, there was an increase in the demand for observation instruments from the Zeiss Workshops, which now enjoyed a good reputation among microscopists due to their meticulous workmanship. At the time, the level of interest shown by scientists and medical professionals in compound microscopes was growing because these were the only instruments that provided the higher magnifications they wanted. The time-consuming trial-and error method required to build optical systems initially kept Zeiss from building such systems, particularly as he was convinced that there must be some scientific way of determining the individual elements of the optical systems. However, the competitive scenario forced him to build compound microscopes in the traditional way from 1857 onwards.
  • Indus Business Academy Page 26 In the second half of the 1860s, Zeiss persuaded private lecturer for physics at the University of Jena, Ernst Abbe, to tackle the task of creating a mathematical foundation for designing microscope objectives. The collaboration of the two men started with Abbe suggesting that the lens elements should already be tested during the work process with the measuring instruments he had developed for the purpose. He recommended that the optical and mechanical work processes should be separated in microscope construction. At the end of the 1860s, Abbe turned his attention to the calculation of optical systems. It took him five years to prove that increasing the size of the aperture perfects the function of the microscope. The physicist saw that the wave nature of light sets natural limits to the recognition of fine structures which are smaller than half the wavelength of light. During these examinations, Abbe found the formula for the sine condition as a criterion for sharp imaging in the area around the optical axis. The extremely complex theoretical work and practical experiments brought the Zeiss Workshop to the limits of its capabilities. The beginnings of modern optical instrument design: The microscopes produced using Abbe‟s theory soon enjoyed the recognition of the international professional world. In 1876, Abbe became a dormant partner in the Optical Workshop. The growing market for the observation instruments produced in Jena prompted Abbe, who was increasingly growing into his role as the head of the company, to fundamentally change the conditions of production. A new, much more spacious production facility was found under his direction on the outskirts of Jena in the early 1880s. The Optical Workshop had now finally lost its small, cozy image. At the end of the 1880s, the Zeiss workforce totaled 360 people.
  • Indus Business Academy Page 27 Of special importance for the Optical Workshop was that the glass chemist Otto Schott in Jena simultaneously succeeded, with the assistance of Zeiss and Abbe, in producing optical glass using a scientifically substantiated technique. The Schott & Gen. glassworks started operations in September 1884. Without the quality of the new optical glass, it would not have been possible to fully utilize the benefits of Abbe‟s theory in the Zeiss instruments. The Carl Zeiss Foundation in Jena: At the end of the 1880s, 48-year-old Abbe started to seek a way of safeguarding his achievements for the long term. Under no circumstances did he want the Zeiss Workshop to suffer the same fate as the precision-mechanical and optical institute in Munich that Joseph von Fraunhofer had directed with great success. After the death of the physicist and glass chemist, the renowned facility had been totally ruined due to the distribution of his estate among his heirs. In 1889, one year after the death of Carl Zeiss, this prompted Abbe to create the Carl Zeiss Foundation, to which he transferred his own share of the assets in the optical workshop and the Jena glassworks in 1891. In 1896, Ernst Abbe gave the foundation a constitution in which, in a legally effective manner, he stipulated both what type of business activity had to be conducted by the foundation companies and how the profits generated by them should be used. In this way, he realized his objective of ensuring that the activities of the foundation companies would be permanently focused on science and technology; that a permanent core of personnel would exist for the sophisticated production of precision-mechanical and optical instruments, and that at the University of Jena all those scientists would be promoted who could be beneficial for the foundation companies.
  • Indus Business Academy Page 28 Foundation funds were used to set up university institutes, support professorships and promote research projects. A major proportion of corporate profits were used to enhance existing and create new products. Over the decades, the employees‟ awareness of working in an enterprise with unusual ownership conditions, the good specialist training available, the knowledge that the Jena products were very special and the social privileges provided created a mentality that extended right into the employees‟ families and society itself. This Zeiss mentality made it difficult for political groups to gain any influence on the workforce. This presumably led to the view that Zeiss employees belonged to a “workers‟ aristocracy”. The foundation‟s constitution granted legally enforceable social rights to the employees. Every member of the workforce was paid an agreed minimum wage or salary which could not be reduced under any circumstances. Every year, the employees received a wage or salary supplement which was dependent on the profits generated by the company. Six days‟ paid annual leave was granted. If layoffs were necessary, the employees affected were given a severance payment by the company. A company health insurance scheme was put in place in 1875. Employees who joined the company before their 40th birthday were entitled to a disability or retirement pension after five years of service. In 1900, the Zeiss Works were one of the few German companies to introduce the eight-hour working day. Expansion of the Production Portfolio: With the assistance of creative scientists and engineers, Abbe started to expand the company‟s production portfolio in the late 1880s. From the refractometers and spectrometers originally created by Abbe for his own needs, the department for Optical Measuring Instruments set up in 1890 developed a large number of further instruments. These were used to analyze the composition of transparent solid and liquid materials on the basis of optical measuring parameters and were utilized in the food industry, medicine and, from the 1920s onwards, also in metallurgy and the metal processing industry. The department also produced rangefinders and photogrammetric instruments.
  • Indus Business Academy Page 29 The Photo-optics department also founded in 1890 already launched the first photo- optical lens on the market in its first year of existence. In 1902, after a decade of intensive work, the Tessar lens, the “eagle eye” of the camera, was presented. This universal camera lens was further developed in many different versions. Incorporated in the “Tele” department in 1894, the production of binoculars grew very rapidly. In the period to January 1900, 20,000 binoculars were sold. The relief telescopes, periscopes and binoculars were used by the armed forces in many different countries. After the turn of the century, the astronomical telescopes developed by the “Astro” department in the 1890s met with great interest in the public. With the first large instruments, the reflecting telescope for Heidelberg Observatory and the then most powerful instrument for Innsbruck Observatory, the Zeiss Works earned an excellent reputation in the world of astronomy. Motivated by the Swedish doctor Allvar Gullstrand, the Zeiss Works turned its attention to the development of eyeglasses and measuring instruments for ophthalmology in the period 1908-1912. From 1908, geodetic instruments enriched the production spectrum of the Jena enterprise. The expansion of the production portfolio was accompanied by an expansion of the production facilities and the workforce. In June 1914, the Zeiss Works employed 5,280 people. The First World War interrupted work on the instruments intended for civilian use. Production was almost exclusively focused on optical and other instruments for military use. Only the “Astro” department was able to build Europe‟s then largest reflecting telescope for the Potsdam- Babelsberg Observatory.
  • Indus Business Academy Page 30 The military defeat of Germany and the armament restrictions imposed by the Treaty of Versaille prompted the Zeiss Works to devote its attention to precision metrology. The department set up for this purpose soon developed not only simple measuring devices, but also complex, powerful instruments for measuring screw threads, tools, gears, etc. Also in the other product groups, the following two decades saw the use of many different physical and chemical effects for the development of new instruments. Here, the Jena scientists repeatedly implemented the ideas of the instrument users. In microscope construction, not only white but also ultraviolet light was used, and luminescence phenomena were utilized to enhance contrast in the structure of specimens. In the 1930s, the development of the phase contrast technique and the use of polarized light opened up new fields of application. Specially developed cameras simplified the capture and documentation of microscope images. The first planetarium built for the Deutsches Museum in Munich attracted the attention of wide sections of the public and resulted in many new orders from all over the world. Until the end of the 1930s, 21 planetariums were built, e.g. for Chicago, Milan, Philadelphia and Tokyo. Although the production of instruments for civilian use had been dominant in the 1920s and early 1930s, Jena never lost sight of the development of military instruments, as the advances being achieved at that time in the field of precision engineering and optics were equally suitable for civilian and military purposes. With its new developments, the Jena enterprise wanted to also maintain its presence on the international military instrument market which experienced rapid growth during these decades. In the years of the Nazi dictatorship, the company‟s scientific and production potential was increasingly focused on equipping the German armed forces. Airplanes, submarines, tanks and guns were fitted with Zeiss instruments.
  • Indus Business Academy Page 31 After the unconditional surrender of the German armed forces, the allies also held Zeiss responsible for its contribution to the preparation and conducting of the Nazi war of aggression. The Americans, who occupied the Zeiss Works from April to June 1945, requisitioned patents, design documents and special production equipment. They weakened the potential of the company by deporting leading specialist staff to Heidenheima.d.Brenz in the West. In 1946/47, the Soviet occupation power dismantled all production equipment and took scientists, engineers and specialist staff to the USSR. The German Economic Commission (DWK) nationalized the industrial assets of the Carl Zeiss Foundation on 1 June 1948 on account of the company‟s role as an armaments manufacturer during the war. Robbed of its entrepreneurial character, the foundation then focused its activities primarily on social and cultural issues. Two Zeiss Factories in Germany: The reconstruction of the production facilities in Jena started in the summer of 1947. On 4 October 1946, the Heidenheim-based Zeiss Group founded – with the support of Jena – the company OptonOptischeWerkeOberkochen GmbH which operated under the name Zeiss-OptonOptischeWerkeOberkochen GmbH with the approval of the Jena management. After the nationalization of the Jena factory, the people in Oberkochen were afraid that the Americans could confiscate the Zeiss assets in the ally-held zones. This was why the Oberkochen management did its utmost to ensure that, due to the fact that the Carl Zeiss Foundation no longer existed in Jena, the foundation bearing Abbe‟s unmistakable stamp was re-created in the Western federal state of Wurttemberg. On 23 February 1949, the government of this state ruled that the foundation‟s legal domicile should be Heidenheim in the West. On 15 January 1951, the firm Carl Zeiss was entered in the Commercial Register of Heidenheim district court. Initially, it only marketed precision-mechanical and optical products, but then took over Zeiss-Opton GmbH on 1 October 1953. In the late 1940s and during the 1950s, not only the traditional production spectrum was resumed at both Zeiss locations, but the scientists and design engineers of the companies also devoted their attention to new fields of development. Examples include electron microscopes or the nuclear track microscope that Jena built for
  • Indus Business Academy Page 32 nuclear research institute near Moscow. Both companies started to produce large astronomical instruments again. The astronomy department in Jena constructed planetariums and 2 m telescopes for the observatories in Tautenburg and Hamburg. In Oberkochen the 150 mm Coudérefractometer and the 650 mm refractor were produced in the 1950s. With their increasingly similar production lines, the two Zeiss factories became competitors on the German and international markets. Both claimed the trademark rights granted to Carl Zeiss Jena or the Carl Zeiss Foundation for Germany and other states in the period before 1945. The Oberkochen management held the opinion that only Heidenheim/Oberkochen could now rightfully claim these rights. As Jena did not share this view and offered their products on international markets with the trademarks that had existed before 1945, a fierce dispute began between Oberkochen and Jena in spring 1954. It was not until 1971 that both parties managed to reach an agreement in London whereby – provided that their respective location, i.e. Jena or Oberkochen, was appropriately highlighted – each firm was entitled to use the name Carl Zeiss and the lens trademark in specific agreed markets. For example, VEB Carl Zeiss JENA was permitted to offer its products in the Eastern Bloc countries, Syria, in the Lebanon and Kuwait using the agreed trademarks. Carl Zeiss Oberkochen, on the other hand, had the right to distribute the products bearing the name Carl Zeiss in West Germany, West Berlin, the Benelux countries, Italy, Greece and the USA. From the 1960s onwards, the advances being made in electronics and information technology increasingly offered new possibilities to the field of optical instrument design. The combination of optical, precision-mechanical and electronic principles led to products featuring totally new properties. These new possibilities were pursued by both Jena and Oberkochen. However, the conditions available for such combination processes in instrument design were totally different at the two locations. Oberkochen had a powerful electronic and IT industry at its side and was able to use international developments without restriction. VEB Carl Zeiss Jena, on the other hand, often had to compensate for missing or defective deliveries from East Germany or other Eastern Bloc states by developing expensive solutions of its own. This led to the inception of such world innovations as the laser micro-spectral analyzer, with which the industrial use of lasers was implemented for the first time in 1964, or the first industrial electron beam lithography system developed in the mid-1970s.
  • Indus Business Academy Page 33 Both Zeiss locations rose to new challenges resulting from the progress being achieved in space research and microelectronics. Oberkochen provided the electronic industry with microelectronic optics, and Jena produced instruments for microelectronic technologies. In 1987, VEB Carl Zeiss Jena employed 32,378 people, while Oberkochen had a workforce of 8,278. Despite the similarity of the two Zeiss locations in the field of science and technology, it must be stressed that their workforces worked under totally different political, economic and social conditions. VEB Carl Zeiss Jena, which since the 1960s had formed the core of a combine that eventually encompassed an entire sector of industry, was integrated into a central administrative system whose inadequacies became increasingly apparent in the 1970s and 1980s. As a result of the political change taking place in East Germany from fall 1989 onwards, the combine VEB Carl Zeiss Jena was dissolved. The privatization of VEB Carl Zeiss Jena began at the end of June 1990. The companies Jenoptik GmbH and die Carl Zeiss Jena GmbH emerged from this process in 1991. The Oberkochen-based Zeiss Company acquired Carl Zeiss Jena GmbH. When Carl Zeiss Jena GmbH was integrated into the Carl Zeiss Group, the precision engineering and optical industry in the western world was in the midst of a recessionary downturn. As a result, the Jena enterprise not only suffered the negative impact of the structural change in Eastern Europe, but also had to seek a new place on the international markets under the most unfavorable conditions imaginable. A large percentage of the Zeiss jobs in Jena were lost between 1990 und 1995. In 1995, a restructuring process took place in the Carl Zeiss Group, as a result of which Carl Zeiss Jena GmbH assumed responsibility for clear-cut business units. Crisis and change at Carl Zeiss:Restructuring in the years following reunification Fear of being sold off: An uncertain future in the East The 2,800 employees that remained when the company Carl Zeiss Jena GmbH was founded in October 1991 initially saw the future through hopeful and enthusiastic eyes. But it soon became clear that orders were much lower than expected and that the company's earnings would fall far short of the forecast 200 million German marks. By the time it completed its first year of operations on 30 September 1992, the company had generated total sales of 101 million German marks – yet in the same period it had made losses of 146 million German marks. Pressure was being exerted by the Jena management team who wished to take over product lines and business divisions in order to secure people's jobs, but Oberkochen made it clear that the staff cuts that this would entail in the West would be difficult to convey to the workforce. In October 1993, the Jena management team faced the consequences of a second year of poor business results and announced an agreement with the Works Council to reduce the company's headcount to 2,000
  • Indus Business Academy Page 34 by January 1994. The existence of the Jena site seemed as uncertain as ever. From competition to cooperation: Conflicts and the first signs of collaboration between East and West, Even though the company had been formally reunited, Zeissians were still singing from very different song sheets when it came to issues of organization and strategy. The idea of working together had transformed into a kind of competitive sport in which teams from East and West were locked in a struggle for market share. Particularly for product portfolios that were relatively similar such as photogrammetric and geodetic systems, the competition between Jena and Oberkochen was obvious to everyone. Merging complementary ranges of products from the East and West after 1991 proved to be a tricky task in many divisions. The persistent internal competition was so fierce that it could only be resolved by either the eastern or western site abandoning the business altogether. In the Metrology division for example, the devices produced in Jena were clearly inferior to Oberkochen's 3-D coordinate metrology technology, which was based on modern computer engineering. The Carl Zeiss Company in the West, on the other hand, had long ceased to develop simple, basic devices. Ultimately, however, the production of Jena‟s devices proved to be too expensive and the precision measuring product range was abandoned. A different side of the coin is evident from the initiatives that successfully exploited the synergies between East and West that emerged soon after the signing of the agreement to merge Carl Zeiss‟s core business. One example that is familiar to many Zeissians occurred in the field of ophthalmic diagnostic equipment. The result was the SL 120, a slit lamp that was far superior to any competing product at that time. When it became clear that Carl Zeiss Jena GmbH had fallen short of its sales targets by nearly 50 per cent – posting annual results of just 101 million German marks rather than 200 million – emotions began to run high on both sides. Distrust of the Executive Board some 350 kilometres away in Oberkochen grew. At the same time, Carl Zeiss colleagues in western Germany were blaming the Jena employees for the fact that no profits were to be distributed for the 1990/91 fiscal year. The company's second year of operations also fell short of expectations – even though sales rose by 50 percent – and by mid-1993 the Executive Board was warning of the worst recession since the end of World War II. The situation seemed hopeless: Jena needed full-scale business divisions in order to be profitable over the long term, but in the face of such a fragile economic situation Oberkochen was in no mood to worsen its position any further by handing over any of its own business areas. In August 1993, the decision was made to shift the 90 development and sales staff in the Microscopy division from Oberkochen to Jena.
  • Indus Business Academy Page 35 For Jena, this decision was crucial psychologically, but it was still not enough to prevent the looming job losses. Meanwhile, in Oberkochen, people were afraid this marked the beginning of the end for their site, and when the official announcement was made at the works meeting on 8 September 1993 that microscopy would be shifting to Jena and some 400 jobs would be lost in Oberkochen, the Works Council and trade unionists vowed bitter resistance. In Jena on 12 October a works meeting was convened and the Director of Labour Relations Elk Littow explained why the company could not continue with its current annual sales figures of 60,000 German marks per employee: “We have to reduce our headcount to 2,000.” The reaction in Jena was similar to that in Oberkochen: The Works Council promised to use all the legal means at its disposal to fight for every job, and the employees backed them to the hilt. That left the Carl Zeiss management in both East and West facing protests against their planned cutbacks – and that was not their only problem: although the employee representatives emphasized time and again that they would not accept any attempt to play off the sites against each other, the reality was that the employees in the East and West were increasingly becoming rivals in a struggle for dwindling resources. Both sides had to contribute toward the cost-cutting measures, and the gradual reduction of the Jena headcount to 2,000 finally became a reality in January 1994. In Oberkochen, some 400 jobs were eliminated through early retirement schemes, part-time working provisions and other impact-minimizing measures, but the people at this site still had to swallow the fact that their microscopy competencies were being relocated to Jena – and there was no guarantee that these staff cuts would be the last. The years 1992 to 1994 therefore evoke images of internal conflicts and a downturn in business. Yet despite all the symptoms of a crisis, more and more people were coming to believe that any return to profit would have to be a joint undertaking between East and West – a realization that perhaps the inner reunification of Carl Zeiss was not just a political task, but also an economic necessity. A time for restructuring: how the reorganization of Carl Zeiss begansomeone from outside the company would have a free hand to implement the restructuring plan. During his work for Siemens, the Foundation Commissioner had already come across a suitable replacement for the post of President and CEO: Peter Grassmann. A physicist who had previously headed the medical technology area at Siemens, he was open to new challenges. As the boss of 20,000 employees at Siemens, he had driven forward the verticalization process, in other words the reorganization of development, production and sales into independent and full-fledged product areas. Through October 1994, the company had suffered regular walkouts, but after their first positive contact with Grassmann, the Works Council agreed not to stage any
  • Indus Business Academy Page 36 more until further notice. Right from the beginning, Grassmann made it clear that a rigorous redundancy and social compensation plan were the only way forward. In a series of difficult negotiations, Grassmann managed to win the backing of the committees of the Oberkochen-based Carl Zeiss Foundation and pushed the restructuring plan through the Supervisory Board of Carl Zeiss Jena GmbH on 16 February 1995. One of its key components was a reduction in the number of divisions to leave a five-pillar model which would divide all the company's activities into the key business groups of Consumer Optics, Medical Technology, Microscopy, Optoelectronic Systems and Industrial Metrology. This required each former division and production area to be re-defined and assigned to one of the five pillars. Business areas that were unprofitable or that did not reflect Carl Zeiss's core competencies were to be sold off, converted into joint ventures, or liquidated. The plans also included consistent verticalization of the business groups. Instead of organizing production, sales and marketing as centralized services cutting across multiple product areas, the new plan called for everyone who was responsible for a specific product to share the same boat. The other requirement was that Oberkochen and Jena should have their own full-scale divisions. Yet the biggest challenge for everyone who worked at Carl Zeiss was still to come: without implementing the plans to cut 2,600 jobs within the Group, it was evident that the restructuring goals could not be achieved. In Jena, the approval of the restructuring plan proved to be an agonizing decision for the Works Council representatives. The meeting of the Supervisory Board on 16 February 1995 had to be temporarily suspended, and only when it became clear that a refusal to approve the plan would put the existence of the entire Jena site in jeopardy did the employee representatives agree to further cuts involving some 650 job losses, 150 of which were to be compulsory redundancies. It was in that same meeting that the CEO Peter Grassmann joined the management team of Carl Zeiss Jena GmbH, therefore pledging his support for the future of Carl Zeiss in eastern Germany. In terms of its future business fields, Jena was to take primary responsibility for running and developing the areas of microscopy, medical technology and geodetic systems. Jena would be expected to generate one quarter of the Carl Zeiss Group's global revenues. Meanwhile, the negotiations in Oberkochen were also taking their toll. There was no way of preventing the loss of 1,300 Carl Zeiss jobs in the Ostalb region, but in May 1995 the Works Council and trade union managed to push through the creation of a retraining and upskilling company in order to minimize the number of redundancies. The Bopfingen plant with its 80 employees did not survive Grassmann's radical restructuring process and closed in July 1996. The employees received severance packages or were relocated to Oberkochen. In contrast, the Semiconductor Manufacturing Technology business group, which was so essential to Carl Zeiss's recovery, was massively expanded under the leadership of Dieter Kurz, who subsequently became President and CEO of Carl Zeiss AG. By February 1995, many of the Zeissians in western Germany agreed with Oberkochen's mayor Peter Traub, who wrote an open letter to Grassmann to thank him for finding a way out of the crisis that had threatened to engulf Carl Zeiss.
  • Indus Business Academy Page 37 Looking back and moving forward: Carl Zeiss celebrates its 150th anniversary “Carl Zeiss mirrors the problems, but also the opportunities inherent in German unity,” said German Chancellor Helmut Kohl in his speech to mark the company's 150th anniversary. These words certainly found an echo among the guests gathered in the auditorium of Jena‟s Volkshaus on 9 November 1996. Since the reunification of Germany, Carl Zeiss had undergone one of the worst crises it had ever experienced, with mass layoffs and elimination of everything but the core business in Jena, plus a structural crisis and job losses in the West. Nonetheless, the reunification of the Carl Zeiss Company had been signed and sealed, and by 1995 the newly reunited group of companies had even reached a turning point in its economic fortunes. Just in time for the anniversary celebrations, CEO Peter Grassmann announced that the Group had finally reached breakeven point and was once again operating in the black. So it was no longer so hard to believe when the Foundation Commissioner, Hermann Franz, promised that Carl Zeiss could genuinely become “a flourishing enterprise”. Back into profit:The Carl Zeiss Group completes the restructuring process In 1995 the Carl Zeiss Group accepted full responsibility for the Jena site. 1995 also saw numerous changes for the group of companies as a whole. The Carl Zeiss Group had divested itself of the companies Kiel-based Anschütz GmbH and Medizingerätebau Berlin GmbH and the American company Titmus Optical, which had belonged to Carl Zeiss Oberkochen since 1973. At the same time, Carl Zeiss had significantly increased its efforts to cooperate with other organizations. ZEISS ELTRO OPTRONIC GmbH in Oberkochen was founded in collaboration with Daimler-Benz Aerospace AG – precisely the kind of strong partner Carl Zeiss was looking for. Further joint ventures followed, including the company LEO Electron Microscopy, which was founded as a joint venture with Leica. In business fields such as semiconductors, the development of networks was the only way to make any real headway in the market, and the success of this new strategy was evident in the very first year of the restructuring process. In the 1993/94 fiscal year, the sales of optics for semiconductor fabrication came to 40 million German marks, but by the 1994/95 fiscal year this had doubled to 80 million German marks. At the same time, profits rocketed from 2 million to 17 million German marks. Nevertheless, the Carl Zeiss workforce still suffered losses as a result of the restructuring scheme, dropping from 15,545 employees on 30 September 1994 to 13,575 employees just one year later. Yet the majority of Zeissians in both the East and West still see the radical changes that began in 1995 as unreservedly positive, and many of them feel that this drastic solution was the only thing that saved Carl Zeiss from ruin. “We can do it!” – in May 1996, CEO Peter Grassmann wrote an article for the Carl Zeiss in-house magazine that eliminated any lingering doubts as to whether the restructuring plan would succeed. The reason for his upbeat assessment was the half-year report for the on-going fiscal year, which revealed a 12 percent increase in
  • Indus Business Academy Page 38 new orders for the first seven months compared to the previous year‟s figures and an eight percent increase in revenues. This positive development was once again driven by the extraordinary growth figures of the Semiconductor Manufacturing Technology area. The demand for high-performance optics for chip fabrication was a phenomenon that was here to stay, with the proportion of microelectronics increasing steadily in just about all everyday products from laptops to „intelligent‟ refrigerators. As a result, the Executive Board decided to run the Semiconductor Manufacturing Technology unit as a separate business group effective 1 October 1996. In the 1996/97 fiscal year, Carl Zeiss returned to profit for the first time since the 1994 crisis with a jump in earnings of some 2 million German marks. And Carl Zeiss Jena GmbH could at least point to a qualified success by capping its losses at 38 million German marks. In 1997/98, the Group increased its earnings to some 15 million German marks, and Carl Zeiss Jena managed to cut its losses by 50 percent over the previous year. As well as the success of the Semiconductor Technology business group, the Industrial Metrology business group was also booming, exceeding its prior-year result by almost 20 percent and recording total revenues of 435 million German marks. In the 1998/99 fiscal year, the on-going economic crisis in South-East Asia put the profitability of the company's key semiconductor business in jeopardy. In October 1998, CEO Peter Grassmann appealed to all Zeissians to curb costs wherever possible – but there was no avoiding the inevitable. In the first half of 1999, the Semiconductor Manufacturing Technology business group saw a huge drop in revenues: its earnings dropped sharply as new orders dropped by almost 50 percent. Yet the implosion of the chip market caused by events in Asia also showed that Carl Zeiss was capable of weathering a crisis, with the company's other business groups absorbing virtually all the Semiconductor Technology business group‟s losses. This was in large measure attributable to the much greater flexibility of the internal „job market‟ at Carl Zeiss: just as Zeissians had previously been drafted in from other business groups to help tackle the huge rise in orders in the field of semiconductor optics, the Semiconductor Manufacturing Technology business group was now in turn able to cede part of its workforce to other areas. Flexible working time accounts also helped the company to deal with the volatile markets, yet by the end of the fiscal year it had slipped slightly into the red. In fiscal 1999/2000, the lasting effects of the restructuring plan finally came to the fore. The Executive Board defined the key fields of future development at Carl Zeiss as the four growth markets of semiconductor/microelectronics, life sciences, eye care and industrial metrology. With consolidated revenues of some 2 billion euros, the Carl Zeiss Group had achieved its best results since the end of World War II – an increase of 22 percent over the previous year's figure. And, nine years after it was founded, Carl Zeiss Jena GmbH finally made its first profit. In recognition of the success of the restructuring process, the employees of Carl Zeiss Jena GmbH were incorporated in the Group's occupational pension scheme with retroactive effect from 1 January. The “Pension Plan 2000” launched in April that year made some key changes to the pension scheme originally introduced by the
  • Indus Business Academy Page 39 founder of the Carl Zeiss Foundation, Ernst Abbe. In the future, part of the pension provisions would be directly linked to the consolidated results, while the other part would continue to be income-related. Jena had also made up ground in the development of new products. Following its success in the collaborative East-West project to create a new generation of slit lamps, Jena continued to make waves in this field, especially in eye care diagnostics: individual lens implants are the method of choice for treating cataract patients, and in 1999 Carl Zeiss Jena introduced the IOLMaster, a device that was designed to perform all the relevant measurements required to calculate intraocular lenses at a single workstation using a non-contact and largely automated process. At the end of 2000, Peter Grassmann stood down as CEO as stipulated in his contract. After the dramatic crisis of 1994, the company was once again back on track and ready for whatever success the future may hold. Unity becomes a way of life: Carl Zeiss in its second decade following reunification New autonomy:The founding of Carl Zeiss SMT and Carl Zeiss Meditec From computers and cell phones to navigation devices and flat screen TVs – it is amazing how many everyday products would not exist without Carl Zeiss technology. All these devices make use of microchips, the “artificial brains” of our digital world. Modern processors and memory chips can fit billions of transistors into just a few square centimetres. Producing these components using purely mechanical methods would be impossible, so modern chips are fabricated using optical systems. This process – also known as lithography – relies on lenses that push the boundaries of what is technically feasible. The company Carl Zeiss Semiconductor Manufacturing Technologies SMT GmbH (known as SMT AG up until 31 December 2010), which was created from the Carl Zeiss Semiconductor Technology business group on 1 October 2001, is one of the few companies in the world that can supply these kinds of lenses. In October 2006 the construction of an independent manufacturing centre for the optical systems used in the fabrication of semiconductor chips was officially inaugurated in Oberkochen-Königsbronn, two kilometres from corporate headquarters. The new facility was officially inaugurated in October 2006. Carl Zeiss invested a total of 450 million euros in the facility, which is the most modern of its kind anywhere in the world. It represents the largest single capital investment ever made by the Carl Zeiss Group. At the same time as SMT was being established in Oberkochen, the Jena management was also preparing to carve out one of its own core business areas – the ophthalmic instruments business with sites in Jena and Dublin (USA) – to create another separate company. In late 2001, Carl Zeiss and the Jena-based company Asclepion-Meditec AG announced they would be merging their ophthalmology
  • Indus Business Academy Page 40 activities to create a new company under the name of Carl Zeiss Meditec AG which would be listed on the NeueMarkt of the Frankfurt Stock Exchange. As stock corporations under the Carl Zeiss umbrella, SMT AG and Meditec AG have served as models for the Group in a number of respects. Subsequent carve-outs such as the creation of Carl Zeiss IMT GmbH and Carl Zeiss Micro Imaging GmbH benefited from the success of these ”pioneers” from the semiconductor technology and medical technology arenas, as did the conversion of the entire Group into a stock corporation as part of the reform of the Carl Zeiss Foundation in 2004. A keystone in the reunification process: reform of the Carl Zeiss Foundation in 2004 A foundation that runs a company and is responsible for all its business operations and fully liable with its assets – sometimes referred to as a ”corporate trust foundation” – is a perfectly conceivable option under German law. However, in practice it has virtually no role to play, unlike a “shareholding foundation”, which functions as a shareholder in a company. For Carl Zeiss and SCHOTT, who had continued to cling onto the legal structure of the “corporate trust foundation” prescribed by Abbe‟s 1896 statute, this unusual status under company law entailed certain difficulties. In the first place, a foundation enterprise accepts responsibility for its partner company without actually being able to exercise any direct influence on its business operations. Although Carl Zeiss and SCHOTT have benefited on several occasions in the past from the mutual liability they shared, this situation nevertheless posed some potential hazards. In the worst case scenario, bankruptcy of one of them could have dragged the other one down with it – and the financial difficulties faced by Carl Zeiss after reunification had once again raised the spectre of this risk. The role played by the Foundation Commissioner presented the second problem: this figure acted as the sole supervisory authority for both companies, a task that was obviously too much for a single individual. Neither Carl Zeiss nor SCHOTT could fall back on a Supervisory Board populated by key figures from industry and politics. And the legal status of the Carl Zeiss Foundation also posed a third problem. This kind of foundation was simply unheard of in international markets. Combined with the lack of a Supervisory Board, this fact often left Carl Zeiss and SCHOTT in a tricky position when they attempted to set up subsidiaries abroad. For example, foreign banks were often reluctant to accept the Foundation as being creditworthy. And there was yet another sticking point which did not stem from the company's legal status itself but rather from the provisions of the statute: the two foundation enterprises had no way of accessing additional capital through methods such as carving out parts of their businesses as stock corporations. This put them at a clear competitive disadvantage, especially in the fast-paced high-technology sector where continuous investment and innovation are the bread and butter of success. In November 2001, Heinz Dürr, the Foundation Commissioner, wrote an article in which he attempted to allay employees' concerns that reform of the Foundation could open the floodgates to cutbacks in the social benefits provided by Carl Zeiss: “Abbe would have adapted his statute to current conditions, obviously without giving up his
  • Indus Business Academy Page 41 commitment to social causes.” The advocates of reform put forward various arguments to support their case, such as the fact that the statute would continue to exclude any possibility of a future Carl Zeiss Stock Corporation going public. The “Pension Plan 2000” had already linked part of the Carl Zeiss company pension scheme to the Group‟s operating results and simultaneously extended it to all German sites. Transforming Carl Zeiss into a stock corporation and establishing a Supervisory Board would also yield benefits for the Works Council in terms of co- determination and control – benefits that were already actively enjoyed by their colleagues at Carl Zeiss Jena GmbH, for example. The new statute came into force on 1 July 2004, and the two foundation companies Carl Zeiss and SCHOTT were converted into independent stock corporations with retroactive effect to the beginning of the fiscal year on 1 October 2003. Each company was provided with a Supervisory Board, and the Carl Zeiss Foundation remained the sole shareholder of Carl Zeiss AG. The provisions that governed the employees' legal status and the rights they had in respect to the company were incorporated in the new statute and extended to cover all employees within Germany. This move to ensure equal legal status for all the company's employees in Germany brought the legal process of reunifying Carl Zeiss to a close. For the first time since 1948, Zeissians in Jena were now also working under the umbrella of the Foundation statute. For the Group as a whole, the fundamental reform of the Foundation 108 years after it was created was the logical progression of the restructuring of the business groups carried out between 1995 and 2000. Carl Zeiss was now ready for a new era. Weathering the storm:The 2009 economic crisis and a record year in 2010 Between spring 2008 and spring 2009, industrial production in the Eurozone countries fell by more than 20 percent. Numerous German companies introduced short-time working or were forced to make job cuts. Carl Zeiss had recorded a profit in the 2007/08 fiscal year, but just one year later the Group was hit by the crisis. New orders fell by 19 percent, and revenues slumped by 23 percent. The Budget Control Measures (BCM) program introduced radical cost-cutting measures, achieving savings in the tens of millions in 2009. This gave the company the leeway it needed to continue investing significant amount of research and development despite the adverse market conditions. At the same time, major efforts were being made to retain as many jobs as possible. A “general package to tackle the economic situation” was negotiated with the Group Works Council and the IG Metall trade union: the employees agreed to temporarily forego some of their collectively agreed pay increases and other financial incentives such as their Christmas and vacation bonus and, in return, the Executive Board agreed not to make any compulsory redundancies through 30 September 2010. Instead, short-time working hours were introduced in areas where the workload had plummeted. During the crisis, Carl Zeiss benefited from the wide diversity of its business
  • Indus Business Academy Page 42 divisions. In contrast to the difficulties experienced by the Semiconductor Manufacturing Technologies and Industrial Metrology business groups, which saw a sharp decline in orders due to their dependence on key industries such as the IT sector and carmakers, other business groups such as Microscopy and Medical Technology managed to maintain a steadier course. A glance at the 2009/10 fiscal year confirms that Carl Zeiss came out of the crisis stronger, generating revenues of almost 3 billion euros – significantly higher than its pre-crisis results (2007/2008: 2.6 billion euros). After falling slightly in 2008/09, the company‟s equity ratio stabilized at 33 percent, and the net income for the year was 208 million euros following a loss of 161 million euros the previous year. Carl Zeiss had managed to return to profit with astonishing speed – with the most successful year ever recorded in the company‟s history.
  • Indus Business Academy Page 43 SWOT Analysis Strength: High technical expertise with more than 160 years of existence. Best in the Research and Development facility. Strong brand image. Known for its high quality products. Has a wide distribution network, with PAN India presence. Weakness: Operational pace is relatively slow due to time taken to import goods. Absence of manufacturing facility in the country. Low spending on advertisement as compared to competitors. Prices of the products are comparatively high than that of competitors. Low product promotion as compared to competitors Opportunity: Quick and cost effective adaptation of product to Indian market requirement. Large and growing market. Good demand for quality products in domestic market. Threat: Economic Slowdown Increasing competition High transportation cost Import duties and taxes Government regulations
  • Indus Business Academy Page 44 Competitor Analysis Essilor International SA: Good vision is essential with Essilor International. Banking on the fact that one-fifth of the world's population wears glasses, the company is a leading maker of ophthalmic products and supplies, particularly corrective lenses. Its Varilux progressive lenses have become a top choice for people needing bifocals, and the firm is renowned for developing lighter, more durable lenses. The company's products treat the common sight problems myopia (near-sightedness), hyperopia (far-sightedness), astigmatism, and presbyopia (reduced ability to change focus from far to near). Essilor distributes its lenses through a global network of some 300 company-owned prescription laboratories, as well as through independent labs. Industries: • Medical Equipment & Supplies Manufacturing • Health Care Products Manufacturing • Electro medical, Electrotherapeutic & X-Ray Apparatus Manufacturing Olympus Corporation: Although best known for its cameras, the company is a world leader in endoscopes and other medical equipment. Its medical systems group also designs and manufactures other endosurgery and ultrasound equipment. Olympus is neck-and- neck with Sony as the #1 maker worldwide of digital cameras. Other imaging system products include binoculars, optical components, and digital audio recorders. The company's life science group makes medical microscopes and associated image capturers while its industrial unit handles non-medical microscopes, chemical analysers, and industrial video scopes. Industries: • Medical Equipment & Supplies Manufacturing • Consumer Products Manufacturing • Scientific & Technical Instruments Manufacturing
  • Indus Business Academy Page 45 Nikon Corporation: Nikon's focus extends far wider than most consumers would believe. Though well- known for its cameras, lenses, and other consumer imaging products, Nikon vies with national rival Canon and Netherlands-based ASML Holding to be the world's top producer of photolithography steppers, which is the crucial equipment used to etch circuitry onto semiconductor wafers and LCD panels (the Precision Equipment division). The company's Instruments unit makes surveying instruments, microscopes, and measuring instruments. Other products include ophthalmic lenses, optical equipment, and thin film coatings. Founded in 1917, Nikon is part of the huge Mitsubishi keiretsu, a group of businesses linked by cross-ownership. Industries: • Photographic & Optical Equipment/Supplies Manufacturing • Control, Electromedical, Measuring & Navigational Instruments Manufacturing • Machinery Manufacturing
  • Indus Business Academy Page 46 Organizational Structure CARL ZEISS INDIA: Recognizing the importance of the emerging Indian market and the need to get in close contact with the Customers, Carl Zeiss started direct operations in India in January 1998 and is strongly positioned today with the national headquarter at Bangalore. Operating through a combination of own organization and a network of highly competent and well-trained business partners, high quality products and services from Carl Zeiss are easily available to Customers across the sub-continent. Major investments are being made to revitalize the company and prepare it to better serve Customers in the new millennium. Carl Zeiss is in India for the long haul and are committed to increasing presence and investments over the coming years. With sales offices around the country, Carl Zeiss India is strongly positioned to meet the demand of the emerging market of the Indian Economy in a more efficient manner. The Indian office is the point of contact for Industrial Metrology, Medical Systems and Microscopy divisions. The Semiconductor instruments do not have a direct presence in the country but the Nanotechnology Systems of Carl Zeiss SMT operates from Bangalore. The Bangalore head-office or the corporate office is at Ulsoor, Bangalore. They operate from two office buildings next to one another. The super built up area of the Bangalore office is 10,000 sq ft. Department wise breakup: Carl Zeiss has many departments such as Logistic Department, Marketing Department, Finance Department, Medical Department, Quality Department, Technology Department, Purchase Department, Stores Department, Vision care Department, Service Department and Administration Department. ADMINISTRATIVE DEPARTMENT: The Administrative Department is responsible for all office administrative functions of the company.
  • Indus Business Academy Page 47 HUMAN RESOURCE MANAGEMENT DEPARTMENT: Human Resource Department of Carl Zeiss takes care of the organizational requirement of employee training and development, initiating new practices in HR etc. The Human Resource Department is a full-fledged department providing all necessary functions for the development of employees and to achieve employee satisfaction. The well-defined personnel policy of the firm ensures the satisfaction of the personnel and thus the organizational objectives are achieved.
  • Indus Business Academy Page 48 Functions of HR department: • Competence building • Commitment • Motivation • Employee relations POLICIES: The Human Resource Department has a few policies which it follows like: • Procurement and maintenance of adequate work force (employee) as regards to both number and quality of personnel. • Education and training of present employees. • Maintaining satisfactory personnel contacts and employee relationship. • Maintaining satisfactory group relationship. • Ensuring employee safety. • Keeping track of employee health. • Maintaining employee welfare and service activities. • Maintaining proper attendance.
  • Indus Business Academy Page 49 • Managing salary and benefits of workers. • Maintains good industrial relations. PRACTICES and PROCEDURES: Attendance: Attendance is the base for wage payment. The department maintains a good attendance recording system. The company adopts the Register book system for recording the attendance of the employees. In the attendance register book system, the company maintains a time book in the gate of the firm where every worker is given an attendance card which is printed with his/her name and employee number. The worker before starting the work submits the card to the concerned person. He marks the attendance in the cards and records the same in the muster roll. There is a separate muster roll for the office staff. These are required to be signed both forenoon and afternoon. Employee's Selection: The company follows a strict selection procedure for the selection of employees. No person below the age of 18 shall be normally entitled to be recruited as a workman in the factory. On recruitment every workman shall produce documentary proof of his age to the satisfaction of the personnel department and the same shall be entered in the company's record. The company follows the following steps in selection of its personnel:- Interview: After scrutiny of the age document or any other experience document, the personnel are interviewed by the departmental heads. The interview is based on the work and experience of the workers and topics about the workplace. Interview gives a correct structure about a person's qualities and abilities. The Steps taken in selection process are: • Pre Selection Talk • Screening • Human Resource Interview
  • Indus Business Academy Page 50 • Business Interview • Reference Check • Salary Structure Discussion • Offer Letter • Appointment Letter Confirmation: After the successful completion of probation period a workman may be confirmed by the management at their discretion. Union activities: There is no trade union activity inside the firm. The main reason behind this is that the employees have direct contact and good relationship with the management.Since its birth the company has not gone through any problem like lock outs, strikes, breakdown etc. HR Administration: Refers to all administrative activities performed by the human resource department. These functions are:- HRIS: The HR department maintains a Human Resource Information System which acts like a database for all human resource activities and employee details. The different details maintained on the HRIS are Basic Details like Address, Age, Marital Status etc. Work Details like Bank details, employee assets,skillset, joining details, nominations etc. Career details such as career growth pattern, Financial Information such as Provident Fund, Salary Structure, etc. Leave details of every employee and the perks and benefits liable for every employee. Statutory: The Department undertakes statutory human resource functions such as Provident Fund, Professional taxes and gratuity related functions for the employees.
  • Indus Business Academy Page 51 Leave: The department also keeps track of all leave applications of the employees. Letters: The department issues letters, notices, circulars and other communicative materials to its employees through letters. Reports: The Department drafts reports of its functions to inform the management of its activities. LOGISTIC DEPARTMENT: Logistics department of Carl Zeiss is broadly responsible for movement of goods from one place to another via channels clearly demarcated by the company. It takes care of imports of products from Germany and USA to India, so that they reach its Customers without any hassles. The logistics department also maintains the warehouse of the Carl Zeiss India which is situated in the Head Office at Bangalore. Carl Zeiss routes all imports into the country through Bangalore, hence this department handles all logistical functions for all Branches of all Business Groups of Carl Zeiss in India.
  • Indus Business Academy Page 52 Functions of Materials Acquisition: Order Processing: The logistics department processes the order for good from the Plant in Oberkochen, Germany to acquire goods for the purpose of business in India. This is done after the order is placed from the Sales and Marketing Department. Order Shipment Information: Once the order is processed, the logistics department has to keep in constant touch with the Oberkochen Office to know the status of the good to be imported. This is done by way of various communication channels present in the company. Import Documentation: This department is also responsible for the preparation of documents for the purpose of import of goods from Germany. Some of these documents are Bill of Entry, Shipping Bill, Air way Bill etc. Quality Check: Logistics Department is responsible to check for Quality of the imported goods as to meet promised standards. This is done in order to detect any transport pilferage and damage. In such cases the matter should be reported to the authorities in the company immediately. Customs Formalities: The department is responsible for the fulfilment of customs formalities at the Bangalore International Airport to which all Carl Zeiss products are imported. Customs formalities include surrendering all necessary documents that are essential for the purpose of imports of goods into India. For the ease of these hassles, the company has appointed two customs house agents at the Bangalore International Airport, who carry out the necessary formalities on behalf of the company. These Customs House Agents are mediators between the customs department and the importer.
  • Indus Business Academy Page 53 Billing: The department is responsible for maintaining appropriate bills for the products and to submit them when necessary to the Authorities and Customers. Duties and taxes: The Logistics Department files for the Taxes of products imported into the country. Some of the Taxes Filed is Basic Import Tax, Counter Wailing Tax, Education Cess, Special Additional Cess etc. On an average the tax filed per product of Carl Zeiss is around 22% of the price of the product. Only Medical equipment‟s of Carl Zeiss have a reduced tax rate of roughly 09% due to government subsidies. Other Documents: The Logistics Department is also responsible to maintain several other documents in the company such as: TR6 Challan: This is maintained to show the payment made to customs office for the purpose of import of items. Goods Received Note: GRN is prepared to acknowledge the receipt of goods in the organization. Delivery Challan: The Department should prepare the Delivery Challanin order to submit it to its Customers on delivery. VAT 515: The VAT 515 document is prepared by the department if the product is imported for the purpose of a demonstration or educational necessity. In such cases an invoice is not prepared.
  • Indus Business Academy Page 54 Invoice: When a product is imported for the purpose of sale, the department prepares an Invoice acknowledging the activity of Sale between the Seller and Buyer. This includes VAT no. and the CST no. of the company. The invoicing procedure involves Service invoices, and Instrument/Spares/Accessory invoices. Some of the Transporters used by Carl Zeiss are: • Blue Dart Express Ltd. • Vedavyas Cargo Forwarders • Professional Couriers • Gati Ltd. • Speed Cargo Carriers SALES AND MARKETING DEPARTMENT: Sales and Marketing Department in the Organization deals with all activities relating to Generation of project, Project conversion to order, Order evaluation and Processing, Delivery, Demonstration, Payment etc. in India. The Sales and Marketing workforce of Carl Zeiss is the strongest department. It is also the department with maximum number of employees considering that it is separated into 4 different business groups. Essential Functions of the Sales Department: Enquiry Response: The sales department answers to Enquiries from different people or companies regarding their products. These enquiries are generated through Business Partners, Cold Calls, References, Exhibitions, Seminars,Road Shows etc. Approach Customers: The sales team should approach customers to answer to queries from prospective customers as to understand the customer requirement and to serve them better with the suggestion of suitable machines or products.
  • Indus Business Academy Page 55 Technical Discussions: The sales team also is to conduct technical discussions with the customers also involving applications specialist so to give a better idea to the customers as to the best product to suit their needs and specifications. Demonstrations: The sales team arranges for demonstrations of the products to prospective customers. Quotations: The team also drafts quotations listing the product, pricing and other necessary information for the prospective customer. These are done usually via e-mails. Order Closure: The team negotiates on terms with the customer to make it a win-win situation for both the company as well as the customer. Once the order is finalized, the Project is hence generated. Essential Functions of the Marketing Department: Generating Enquiries: The marketing department is responsible for creating awareness of the product in the market. Providing Sales Leads: The marketing department is to provide sales leads to the sales force of the company to carry out sales function for the company. Organizing Seminars: This department is responsible for organizing Seminars on behalf of the company to increase its customer base in the region.
  • Indus Business Academy Page 56 Participation in Exhibitions: The marketing department represents the company in exhibitions and other promotion related activities for the company. Research: They conduct research in the market to find areas to better their service of their customers and also to increase the customer base. Documentation of Department Activities: The marketing personnel keeps a track of all activities such as orders received, orders lost etc. They also help the sales team in reaching the annual sales targets of the country. Practices and Procedures: Marketing channel: CARL ZEISS adopts one level channel of distribution. I.e. the manufacturer supplies the product directly to retailers who in turn sells to buyer. Here wholesaler is eliminated and the firm has direct marketing retailers.
  • Indus Business Academy Page 57 Manufacturer Retailers Customers SALES PROMOTION: The company has got various sales promotion programs. These programs help to inform, pursue and influence the buyer for better marketing of the product. The company has the following three major forms of promotional activities. Consumer promotion: Through this mode company offers samples, premiums, price discounts etc. Trade promotion: Company aims at the bulk users through this mode. The company organizes trade meet and plumber meet to increase the demand for company‟s product. Sales force promotion: Bonus, contests etc. are being conducted for the salesman so that they will be motivated.
  • Indus Business Academy Page 58 Flow of sales in Carl Zeiss: Producer Distributors Retailers Consumers Sales promotion activities taken by CARL ZEISS: Sale promotion is one of the marketing activities, other activities being advertisement and publicity. CARL ZEISS advertisement is in both indoor and outdoor media, Indoor advertisements are made in the form of TV and Radio, and outdoor advertisement through Magazines. It aims at capturing and increasing the volume of sales. Major expenses in Carl Zeiss: Transportation Sales tax Selling commission Major incomes: Services Sale of a product
  • Indus Business Academy Page 59 Books maintained: Sales bill Order Monthly sales details Stock register Stock movement report Techniques used to attract the consumer: CARL ZEISS provide good quality product and attractive colour used to improve the buying behaviour of consumer. They also provide well designed and attractive packaging etc… Marketing professionals: The company has employed several marketing executives and sales representatives, these professional through their continuous interaction with customers improve the market for the product. Marketing process: • Enquiry from the customer. • Informal enquiry by the sales representatives of the company. • Formal enquiry by the sales manager through sales executives. • Quotation is sent to the customer quoting the price. • Order received from the customer. For more than 160 years, Carl Zeiss has been a pioneer in technologies that open up new dimensions. ZEISS products enable millions of people to see and experience the world a new every day. In many planetariums, ZEISS planetarium projectors magically recreate the world of stars on the domes and fascinate with unforgettable insights into the universe. ZEISS cine lenses are used to film Hollywood movies that thrill audiences with their brilliant images.
  • Indus Business Academy Page 60 PURCHASE DEPARTMENT: The purchase department occupies a vital and unique position in the organization. This department is under the charge of purchase officer. He manages the purchasing activities efficiently with the help of his assistant. This department is for purchasing raw materials, other materials for production, trade purchases from other companies for meeting the customer's orders and for purchase office stationary, office materials etc. Policies: • To procure right materials. • To procure materials in right quantities. • To procure materials in right quality. • To procure materials economically Organization Structure: The structure of an organization can be discussed under two heads: • Task Relationship • Authority Relationship Task relationship: If we look at the specialization and coordination of the company, it has a Divisional Structure. Product structure: • Product Divisional Structure – The medical division operate under this kind of structure. • Product Team Structure – For specific products/problems that need specialists from different areas. It occurs when they need custom made products/solutions. eg. IMT division at Carl Zeiss • Matrix Structure - The entire company works in a matrix structure where every individual reports to a product head as well a functional head.
  • Indus Business Academy Page 61 Authority Relationship: The authority and control in Carl Zeiss is Organic in nature. It is characterized by • Flexibility in operations • Encouragement to initiate Change • Adapt quickly to changing conditions. Levels in Carl Zeiss: • Chief Executive- COO & CFO • DM– Divisional Manager • Grade 1- Manager • Grade 2 - Assistant Manager • Grade 3- Functional Executive Organization Culture: • Innovation and Risk taking – Every single employee is encouraged to come up with innovative ideas and take risks to implement such ideas. It is because of this Carl Zeiss applies for an average of 16 patents every day. And the company also invests 12% of its revenues into research and development. • Attention to details - As this a technical firm, every employee is expected to exhibit precision at work be it in administration or sales. • Outcome orientation – The outcome orientation is high. This is noticed in the way in which the company introduces new products which captures the market instantly. • People orientation – Carl Zeiss is very much people oriented. They see to it that the decisions are favourable to them. • Team orientation – The Company is highly team oriented at the Managerial level as well as sub-ordinate levels. • Assertiveness – the employees are very assertive in the organization, which makes the place to work very enjoyable. The degree of assertiveness varies from person to person. • Stability – The activities of the company are more growth oriented. It is always one step ahead of stability.
  • Indus Business Academy Page 62 Organization Change: Carl Zeiss is undergoing changes at macro and micro level. Following are the change indicators. • Organization name has been changed from Carl Zeiss India Pvt Ltd. to Carl Zeiss India (Bangalore) Pvt Ltd. • The department names / codes have been changed since April 2008. • The Organization hierarchy is changing slowly over a period of time to provide better enrichment for its employees. • Leadership Advancement Programmes (LAP) is acquiring more importance. • The Human Resource Department is undergoing drastic changes in its operations by introducing more employee oriented services and programs. • The Organization is changing into a flat structure by reducing the hierarchy levels. Organization Development: If we examine the above indicators of organizational change, it dawns upon us that the first steps for organizational development have been taken and it will gradually develop the organization. ORGANIZATIONAL STRUCTURE CHART:
  • Indus Business Academy Page 63 HR Auditing (Personal File Management) Each employer may have its own unique employment record maintenance practices. Personnel records can be maintained in paper form, scanned or completed and maintained electronically. No matter what format is used, the maintenance, security and retention requirements are the same. Most employers have at least three or four different employment record filing systems. The main personnel file that contains employee performance information, the medical/confidential file that contains protected, non-job-related or confidential information, and the payroll records are usually maintained separately by the payroll administrator. Additional files may be necessary to maintain hiring records, investigations, drug test results, etc. Employers must give special consideration to where and how they maintain these files, limiting access to those with a need-to- know only and protecting applicants and employees from discrimination, identity theft, breach of privacy etc. Personnel files:Personnel files should be organized in a logical manner so that information is easy to find. How to organize the files is up to the company. The two most common practices are to maintain files in chronological order or to have files with different sections for different types of documents (e.g., performance, training, employment, etc.) Hiring records:These records should include any job requisitions and job postings, interview notes, reference checks, other hiring records such as applications and resumes (however, hired employee‟s application and resume should be moved to personnel or employee‟s medical/confidential file).
  • Indus Business Academy Page 64 Audit: Personnel Files: Employee‟s Personnel File Audit Checklist Employee Name ______________________________ Date of Hire _________________ Resume: Offer letter: Nondisclosure agreement: Background check form: Performance evaluation forms: Audit Completed by _________________________________ Date ______________
  • Indus Business Academy Page 65 Market Mapping (Recruitment) Market Mapping is a comprehensive industry specific candidate sourcing process. It identifies the „hot spots‟ of in-demand skillsets and tracks candidate movements in the staffing market. Market Mapping allows developing candidate pools and building up resource channels, long before the recruitment team even look to recruit the skills being tracking. It involves delivering a map of the industry with defined organisations, broken down into segmented groups in order to effectively priorities the recruitment resources. This can involve identifying target pools of candidates according to the criteria, for example by title, seniority or location. It involves delivering full competitor analysis, which allows picking off the specific individuals that would add most benefit to the business. In addition to names and titles of target individuals surveys focussing on key skills and accomplishments are conducted using defined questionnaires. This can be particularly helpful in sensitive or confidential situations. The market could be domestic, international or global. • A basic market map allows clients with their own recruitment resources to approach candidates directly. • A breakdown of competitor department size and structure is a useful strategy benchmark. • Providing a market overview allows assessing whether their departmental growth plans and resourcing expectations are realistic. • This can include identifying market leaders, top performers and rising stars.
  • Indus Business Academy Page 66 Findings • Carl Zeiss is one of the largest research and technology equipment manufacturing company in the world • The company has a presence in over 100 countries around the world • Policies and procedures followed are transparent and satisfactory • Adherence to high quality standards and safety policy • Conducive work atmosphere • Environmental and Quality standards with awards for recognition • Updated technology and concepts • Entire functioning of the organization is well coordinated through SAP software • Training and development programs conducted as per the needs • They have well trained employees to every job position in the company, be it Sales, Service, Applications etc. • Carl Zeiss has facilities to improve the job satisfaction indirectly like clubs, parties, and fun activities. It also boasts of a roof top lunch hall overseeing the Ulsoor Lake. • Carl Zeiss premises are big enough to accommodate all the processes efficiently. • The entire inventory management is computerized. • Satisfied employees and customers.
  • Indus Business Academy Page 67 Recommendation • High price is the main reason considered by some respondents for not purchasing the product so the firm should try to adopt some cost control technologies to change the price structure and be more competitive. • The firm should carry out an effective Sales Promotion activity. • The company should study the other domestic markets in India try to increase its market share. • The present advertisement activities of CARL ZEISS are average. So the firm makes necessary steps to improve its advertisements. • Involve the lower level associates more in management decisions. • More attractive advertisements through media like Magazines, newspapers etc. are recommended. • Organize awareness programmers to inform and implement organizational changes.
  • Indus Business Academy Page 68 Learning’s What I Did: During my summer break from college, I interned for the HR department of Carl Zeiss (India), working with the Recruitment and HR Operation teams. How I Did It: During my internship I wasassigned the project of HR Auditing (Personal file management) for the HR Operation team and Market Mapping for the Recruitment team. This was an invaluable experience as it allowed me to gain hands on experience as to what are the documents that needs to be maintained for an employee working in the organization. It also allowed me to see how companies try to get their employees. Lessons Learned: HR internships are really useful in learning about the company and about the HR department. Though it was non-paid the experience was worth its weight in gold. It helpedin learning more about the many facets of a career in HR. Good interpersonal, communications, and organizational skills.
  • Indus Business Academy Page 69 Conclusion During the project period I have got valuable experience from CARL ZEISS. All the departments of CARL ZEISS are working in a very coordinated manner. The social objective of the company is very much concentrated in the development of Hospital area. Most of the customer are of the opinion that price of CARL ZEISS is high. Carl Zeiss has been a pioneer of technology and innovation for 160 years. It has built itself on the Brand that‟s associated with Quality and Efficiency. In spite of the tough competition from competitors‟ especially low cost Chinese firms, the company has emerged as a market leader in many of its products. It operates in a market where sales are driven by degree of efficiency and quality to the maximum extent. Carl Zeiss is a highly research and development oriented organization which offers to its customers futuristic technology which can help its customers in developing technology. Its dedication to quality and with the support of committed work force, it sure can become the market leader in all its products. The Bangalore head office being located in a prime location can reap many benefits. The zone is uncongested and well connected to the city, airport and National Highways. Carl Zeiss‟ success story has continued for over 160 years till date. And with its Values, Focus, and Efficiency it will definitely carry on for a long time. To conclude if the firm takes into consideration the above said recommendations then CARL ZEISS can expand their existing market and also expand its market to other states including UP. CARL ZEISS has been providing good quality products in the surgical market, but unless it expands its activities it will not be able to reduce its cost of production and increase its profits.
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