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Akash kumar summer trainig report
1. SUMMER TRAINING REPORT
ON
“CUSTOMER SATISFACTION “
AT
TWO WHEELER AUTOMOBILES
Submitted in partial fulfillment of requirement for the
Award of the Degree of Master of Business Administration
From Sanskriti University Chhata,(Mathura)
SESSION :2017 -18
Submitted by: AKASH KUMAR
MBA3RD SEM 1
2. DECLARATION
I , AKASH KUMAR 1704201002 of MBA, Semester 3 Sanskriti University,
Chhata, Mathura, hearby declare that project entitled consumer satisfaction is
an original work and the same has not been submitted to another University
forward of any other degree .the interim report was presented and Pre-
submission presentation on 6th Dec 2018. The feasible suggestions have been
duly incorporated in consolation with supervisor.
Signature of the candidate
Akash Kumar
Under the Guidance of
Mr .Mohit Agarwal
DEPTT.OF MANAGEMENT
2
3. ACKNOWLEDGMENT
I would like to thank Two Wheeler for constant guidance to conduct the present arduous
project and untiring cooperation which they extended to me throughout the duration of my
summer training. Getting a project ready requires the work and effort of many people. I
would like all those who have contributed in completing this project. First of all, I would like
to send my sincere thanks for his helpful hand in the completion of my project. I would like
to take an opportunity to thank all the people who helped me in collecting necessary
information and making of the report. I am grateful to all of them for their time, energy and
wisdom.
3
4. PREFACE
A student without practical Knowledge is just like a rough student. To polish and shape the
student one must have the practical knowledge of what he has learnt. For the management
students, theoretical knowledge is just like lock without key, so practical knowledge is of
utmost importance.
It is quite true that world outside: your cozy home is many times quite different from what
you have perceived. Similarly it is possible that theoretical knowledge acquired in the
classroom may differ from the practical knowledge.
I have made my business plan on the topic retail garment business and I have described about
the business “TWO WHEELER AUTOMOBILES SHOP”. The description in the project is
about how to launch a garment shop on a small scale business and what are steps taken to
launch a shop in a particular market.
It is a business which runs on a small scale so not a deep research is done but a personal
interview method is followed to collect the information from different retail motorcycles
shops and only few shops are surveyed by me. The further description is about the products
offered, the expenses & the various taxes, the owner of the shop & workers in the shop
Name & signature of the student
AKASH KUMAR
4
5. ABSTRACT
My project report gives study, on what are customer satisfaction and the techniques of
achieving customer satisfaction .it focuses on customer’s perception .many firms interested in
understanding what their costumers through about their shopping or purchase experience
because finding new customers generally more costly and difficult than servicing or repeat
customers .such researches provide a wider scope to the terms of high customer satisfaction.
With the change in the trend in Automobiles Market Motorcycles have become very popular.
Most of the people used to Automobiles Bikes have become very popular. Most of the people
used to wear Automobiles Bikes in case of time saving activity. Especially ladies, Gents,
girls and college going girls & boy have taken very much interest in new designs and
fashionable Bikes..
I have decided to open a Two Wheeler Automobiles shop to introduce new category of
motorcycles in the market which may be something different from the Bikes already
available in the market.
I have named my Automobiles shop “TWO WHEELER MOTORCYCLES” and gave the
punch line to the shop “completing the family” as I have gave this tagline to influence the
customers and the people in the mar that they attract towards my shop and took visits in my
shop.
This tagline briefly means the shop completes every type of customer either girls, kids,
women, boys, man and college going girls.
5
6. The owner of the shop is me and I have engaged 300 workers in the shop who will contribute
to the sales and profits in the business and the capital is also invested by me and my father in
the business.
The shop basically targets teenage girls and college going girls as my shop has the
availability of wide variety of Scooty, and other accessories.
The other Bikes which are available in my store are for the daily uses, and for the
ceremonies.
My shop basically has Bikes & Scooty. So, my shop has the products which are related to
active. It covers almost all types of customers. My shop also provides the facility for the
repair such as stitching of the Bikes and altering of the bikes.
6
7. TABLE OF CONTENT
S. NO. PARTICULARS PAGE NO
I. Declaration
II. Acknowledgement
III. Abstract
Chapter -1 Introduction:-
1.1 Industry Profile
1.2 Company Profile
1.3 Human Resources Department
1.4 Finance Department
Chapter - 2 Firm Profile:-
.1 Firm’s Mission
.2 Firm’s Vision
.3 Personnel Needed to manage Business
Chapter -3 Marketing Department:-
Production Department:-
Chapter 4 Finding & Analysis
Chapter - 5 Suggestion:-
Conclusion:-
Recommendation & Implications
Chapter- 6 Appendix:-
Bibliography
Annexure
7
9. Industry Profile
A well developed transportnetwork indicates a well developed economy. For
rapid development a well-developed and well-knit transportation system is
essential. As India’s transportnetwork is developing at s fastspace, Indian
Automobile Industry is growing too. Also, the Automobile Industry has strong
backward and forward linkages and hence provides employment to a large
section of the population. Thus the role of Automobile Industry cannotbe
overlooked in Indian Economy. All kinds of vehicles are produced by the
Automobile Industry.
The Automobile Industry in India-the tenth largest in the world with an annual production of
approximately 2 million units-is expected to become one of the major global automotive
industries in the coming years. A number of domestic companies produce automobiles in
India and the growing presence of multinational investment, too, has led to an increase in
overall growth. Following the economic reforms of 1991 the Indian automotive industry has
demonstrated sustained growth as a result of increased competitiveness and relaxed
restrictions.
Indian Automobile Industry includes the manufacture of trucks, buses, passenger cars,
defence vehicles, two-wheelers, etc. The industry can be broadly divided into the car
manufacturing, two-wheeler manufacturing and heavy vehicle manufacturing units.
The major two-wheeler manufacturers are:
1. HeroMoto Corp
2. Yamaha Motors
3. Honda Motors
4. Suzuki Motors
5. TVS Motors
6.Mahindra N Mahindra
9
10. 7. Bajaj Auto
8. Royal Enfield
9. Piaggio&C. SpA
10. KineticEngineeringLtd
The heavy motors like buses, trucks, defencevehicles, auto rickshaws, and
other multiutility vehicles are manufactured by TATA-Telco, Ashok Leyland,
Eicher Motors, Bajaj, Mahindra & Mahindra, etc
Following India’s growing openness, thearrivalof new and exiting models,
easy availability of finance at relatively low rate of interest and price discounts
offered by the dealers and manufacturers all havestirred the demand for
vehicles and a strong growth of the Indian automobile industry.
10
12. The K.L Gupta & Co. Automobiles (hero) is well established in Gaya, it was set
up in 1988 , under companies’ act 1956. Their main aim is to satisfy customer’s
needs by providing servicein two-wheelers. Thename of the company in itself
suggests a different in it. There are total 308 employees. The major
competitions of GUPTA JEE are better service for two wheelers, etc. GUPTA
JEE is the small scale unit.
K.L.GUPTA & CO. AUTOMOBILES (HERO) began operation in 2007 under the
leadership of Mr. NIRAJ KUMARGUPTA for the better serviceprovider of HERO
two-wheelers and they are providing servicedepartment, accident
department, advantagedepartment with a diversified productrangeand a
reputed market presence
12
13. Mission
We at K.L.GUPTA & CO. AUTOMOBILES. has identified the following objectives
in pursuitof our quality policy: - To increase the number of customers at least
by 40 percent fromour existing every year. - To execute all the servicing within
agreed timeframe. - To update the skills of employees by providing 20 hours
training regularly on yearly basis
Vision
To be a leading automobile dealer in BIHAR in the forthcoming years and
maintaining the level of quality serviceand implementing the concept of
KAIZEN
13
14. History and Development
“Hero” is the brand name used by the Munjal brothers for their flagship company, Hero
Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was
established in 1984 as the Hero Honda Motors Limited at Dharuhera, India. Munjal family
and Honda group both owned 26% stake in the Company. In 2010, it was reported that
Honda planned to sell its stake in the venture to the Munjal family.
During the 1980s, the company introduced motorcycles that were popular in India for their
fuel economy and low cost. A popular advertising campaign based on the slogan 'Fill it –
Shut it – Forget it' that emphasized the motorcycle's fuel efficiency helped the company
grow at a double-digit pace since inception. The technology in the bikes of Hero Honda for
almost 26 years (1984–2010) has come from the Japanese counterpart Honda.
Hero MotoCorp has three manufacturing facilities based at Dharuhera, Gurgaon in Haryana
and at Haridwar in Uttarakhand. These plants together are capable of churning out 3 million
bikes per year. Hero MotoCorp has a large sales and service network with over 3,000
dealerships and service points across India. Hero Honda has a customer loyalty program
since 2000, called the Hero Honda Passport Program.
The company has a stated aimof achieving revenues of $10
billion and volumes of 10 million two-wheelers by 2016–17. This in conjunction with new
countries where they can now market their two-wheelers following the disengagement
from Honda. Hero MotoCorp hopes to achieve 10 per cent of their revenues from
internationalmarkets, and they expected to launch sales in Nigeria by end-2011 or early-
2012. In addition, to cope with the new demand over the coming half decade, the company
was going to build their fourth factory in South India and their fifth factory in Western India.
There is no confirmation where the factories would be built.
14
15. Company at a Glance
Name of the Company :
K.L.Gupta & Co. Automobiles. (HERO)
Address:
Lal-Bagh,
Beside Pizzahut,
Swarajpuri Road,Gaya(Bihar)
Ph. : 0631-2892496/97
Fax : 0261-2892498
Email : klgagaya@gmail.com
Form of the organization:
Small scale unit
Branch Manager:
Mr. Raj Kumar Gupta
Top Products:
Duet(Scooter)
Xtreme (Bike)
125 Destini (Scooter)
Passionx Pro (Bike)
PassionPlus/Pro(Bike)
SplendorPlus/Pro/NXG(Bike)
Pleasure (Scooter)
Maestro(Scooter) 15
16. Promoter:
Mr. Raj kumar Gupta
Bankers:
HDFC Bank
Competitors:
SemmaHonda
Parvati Yamaha
Om sai Automobiles
Shakti Bajaj
A.B TVS.
16
19. Introduction
Human resource management (HRM or simply HR) is the management of an organization's
workforce, or human resources. It is responsible for the attraction, selection, training,
assessment, and rewarding of employees, while also overseeing organizational leadership
and culture, and ensuring compliance with employment and labour laws. In circumstances
where employees desire and are legally authorized to hold a collective bargaining
agreement, HR will also serve as the company's primary liaison with the employees'
representatives (usually a labour union).
HR is a product of the human relations movement of the early 20th century, when
researchers began documenting ways of creating business value through the strategic
management of the workforce. The function was initially dominated by transactional work
such as payroll and benefits administration, but due to globalization, company
consolidation, technological advancement, and further research, HR now focuses on
strategic initiatives like mergers and acquisitions, talent management, succession planning,
industrial and labour relations, and diversity and inclusion.
In start-up companies, HR's duties may be performed by trained professionals. In larger
companies, an entire functional group is typically dedicated to the discipline, with staff
specializing in various HR tasks and functional leadership engaging in strategic decision
making across the business. To train practitioners for the profession, institutions of higher
education, professional associations, and companies themselves have created programs of
study dedicated explicitly to the duties of the function. Academic and practitioner
organizations likewise seek to engage and further the field of HR, as evidenced by several
field-specific publications.
19
20. Its aspects are as under:
Recruitment:
Recruitment refers to the process of attracting, screening, selecting, and on boarding a
qualified person for a job. At the strategic level it may involve the development of an
employer brand which includes an 'employee offering'.
The stages of the recruitment process include: job analysis and developing a person
specification; the sourcing of candidates by networking, advertising, or other search
methods; matching candidates to job requirements and screening individuals using testing
(skills or personality assessment); assessment of candidates' motivations and their fit with
organizational requirements by interviewing and other assessment techniques. The
recruitment process also includes the making and finalizing of job offers and the induction
and on boarding of new employees
Depending on the size and culture of the organization recruitment may be undertaken in-
house by managers, human resource generalists and / or recruitment specialists.
Alternatively parts of all of the process might be undertaken by either public sector
employment agencies, or commercial recruitment agencies, or specialist search
consultancies.
Gupta Jee is one of the prominent and authorized automobile dealers in the city. Basically
for the recruitment of the new staff, there is no such procedure. In Gupta Jee recruitment is
done on the basis of reference. Firstly the employee is recruited as a temporary staff,and
then after 5-7 month he became permanent. The total no of worker in the Gupta jee group
is around (500) and the no of worker in this branch is (75).
20
21. Training and Development:
Human Resource Management, training and development is the field which is
concerned with organizationalactivity aimed at bettering the performanceof
individuals and groups in organizationalsettings. Ithas been known by several
names, including human resourcedevelopment, and learning and
development.
Harrison observes thatthe name was endlessly debated by the Chartered
Instituteof Personneland Development during its review of professional
standards in 1999/2000. "EmployeeDevelopment" was seen as too evocative
of the master-slaverelationship between employer and employee for those
who refer to their employees as "partners" or "associates"to feel comfortable
with. "Human ResourceDevelopment" was rejected by academics, who
objected to the idea that people were "resources" &m dash; an idea that they
felt to be demeaning to the individual. Eventually, the CIPD settled upon
"Learning and Development", although that was itself not free from problems,
"learning" being an over general and ambiguous name. Moreover, the field is
still widely known by the other names.
The "stakeholders" in training and development are categorized into several
classes. The sponsors of training and development are senior managers. The
clients of training and development are business planners. Linemanagers are
responsiblefor coaching, resources, and performance. The participants are
those who actually undergo the processes. Thefacilitators are Human
ResourceManagement staff. And the providers arespecialists in the field. Each
of these groups has its own agenda and motivations, which sometimes conflict
with the agendas and motivations of the others.
22. The conflicts that are the best part of career consequences are those that take place
between employees and their bosses. The number one reason people leave their jobs is
conflict with their bosses. And yet, as author, workplace relationship authority, and
executive coach, Dr. John Hoover points out, "Tempting as it is, nobody ever enhanced his
or her career by making the boss look stupid.”Training an employee to get along well with
authority and with people who entertain diverse points of view is one of the best
guarantees of long-term success. Talent, knowledge, and skill alone won't compensate for a
sour relationship with a superior, peer, or customer.
In Gupta Jee more emphasis is given to customer satisfaction and for that they need trained
and qualified staff who handle customer to their best
Gupta jee had started various training programs for the development of skill and knowledge
of the employees.
1) RACING AHEAD:
The mainobjective of thisprogram:
a. Recapitulate keylearningpointsfromthe workshops:
-Masteringproduct
-Customerconnect
b. Practice essential techniques andresponses for managing different kinds of
objections effectively.
c. Practice managingobjectionsagainstHERO productwithreference tothe corresponding
competingproducts.
d. Recognize the importance of ensuringcustomerdelightthroughthe rightknowledge,skill,and
attitude.
22
23. Internal Mobility:
The movement of employees from one job to another either vertically or laterally within an
organizational structure.
Internal mobility is a cluster comprising of promotion, demotion, transfer and separations.
Such movements may take place between positions in specific areas, departments, divisions
or establishments for employers with multiple establishments.
In Gupta jee employees can be moved from one branch to another branch, but except this
there is no such internal mobility
Work Time:
The work time in Gupta jee is from 9:45am to 6:30pm and the wages is paid according to
that.
Bonus:
100% bonus is given to permanent employees.
60% bonus is given to temporary employees
Human Resource Data:
NO of employees: (75)
Permanent employees (40)
Temporary employees (35)
The ratio of permanent to temporary employees is 8:7
23
24. No. of employees as per department and their salary structure:
Name of Department Salary No. Of
Employee
Account 10000 3
RTO 6000 1
Insurance 6400 3
Billing 5000 5
Renewal 5500 1
D.M.S 6000 3
Exchange 6000 2
Spare Part 6000 6
A.S.M 15000 3
Workshop 5000 80
Supervisor 10000 13
Frontline(Jobcard) 7500 4
P.D.I(Pre-DeliveryInspection) 8000 22
24
26. introduction
Finance is the branch of management that concerns itself with the managerial significance
of finance techniques. It is focused on assessment rather than technique.
The difference between a managerial and a technical approach can be seen in the questions
one might ask of annual reports. The concern of a technical approach is primarily
measurement. It asks: is money being assigned to the right categories? Were generally
accepted accounting principles (GAAP) followed?
The purposeof a managerial approach, however, is to understand whatthe
figures mean.
1. Someone using such an approach might compare the returns to other
businesses in their industry and ask: are we performing better or
worsethan our peers? If we are performing worse, whatis the sourceof
the problem? Do we have the sameprofit margins? If not, why? Do we
have the same expenses? Are we paying more for something than our
peers?
2. They may look at changes in assetbalances or red flags that indicate
problems with bill collection or bad debt.
3. They will analyze working capital to anticipate future cash flow problems
Managerial finance is an interdisciplinary approach that borrows from both
accounting and corporate finance.
Sound financial management creates value and organizational agility through the allocation
of scarce resources amongst competing business opportunities. It is an aid to the
implementation and monitoring of business strategies and helps achieve business
objectives.
To interpret financial results in the manner described above, managers use
financial analysis techniques.
26
27. Income and Expenses:
Income and Expenses of K.L.Gupta & Co. Automobiles are as under:
Particular 2016-17 2017-18
Incomes 85,70,00,000 95,86,50,000
Expenses 84,51,75,000 93,77,58,150
Balance Sheet:
Particular 2016-17 2017-18
Sources of Funds
Capital 36077000 36077000
Reserves and Surplus 1300000 1500000
Deposit 1000000 1000000
Profit 11825000 20891850
Loan Funds
Bank Loan 5000000 4600000
Current Liabilities
accounts payable 200000 210000
Bank overdraft 4500000 4100000
Total
59902000 68378850
Application of Funds
Fixed assets:
Machinery 2410000 2200000
Land 11500000 11900000
Furniture and fixtures 3200000 3600000
Other Fixed Assets 4715000 2641850
Currentassets:
Cash 500000 560000
Accounts Receivable 1500000 1400000
ClosingStock 30000000 40000000
TOTAL
59902000 68378850
27
29. Analysis: Fromthe abovediagram it is clear that the costs of sales havebeen
increased but the overall sales have increased too. That is why the gross profit
has increased by 1.71% in year 2017-18.
Net Profit Ratio:
Analysis: Fromthe above diagram it is clear that the total sales have been
increased by 9,84,00,000 and similarly, theexpenses has also been increased.
That is why the net profit has been increased by 0.83% in year 2017-18, it
shows thatthe firm is able to sell morenumber of units in coming years.
29
0
0.5
1
1.5
2
2.5
2016-17 2017-18
Series 2
Series 1
30. Operating Profit Ratio:
Analysis: To find out this ratio first of all we have to find
operating expense it includes stationary expenses, salary,
incentives, etc. After that operating expenses are deducted
from gross profit which gives operating profit. In year 2017-
18 operating profit ratio has been increased in year 2017-18
by 1.7%.
Operating Ratio:
30
13.5
14
14.5
15
15.5
16
16.5
2016-17 2017-18
Series 3
Series 1
31. Analysis:Tofindoutoperatingratiowe have todeductoperatingprofitratiofrom100. Lower
operatingratioshowsthatthe company isprofitable.Inyear2017-18 operatingratiowas1.7%
lesserthanthe previousyear.
Current Ratio:
83
83.5
84
84.5
85
85.5
86
2016-17 2017-18
Series 3
Series 2
Series 1
0
2
4
6
8
10
2016-17 2017-18
Series 1
Series 1
32. Analysis: The current ratio should be 2:1 or more than that, it means the ratio of current
assets should be more than current liabilities two or more times. In year 2016-17 and 2017-
18 it is 6.28:1 and 9.73:1 respectively, which means the liabilities are less in respect of
assets.
Quick Ratio:
Analysis: The above diagram shows that the quick ratio has decreased in year 2017-18
which means in year 2017-18 the closing stock has increased and bank overdraft has been
decreased in year 2017-18 that is why the quick ratio has been decreased in year 2017-18.
Return on Assets:
8.8
9
9.2
9.4
9.6
9.8
10
10.2
10.4
2016-17 2017-18
Series 2
QUICK RATIO
0
0.005
0.01
0.015
0.02
0.025
2016-17 2017-18
Series 2
Series 1
33. Analysis: From the above diagram it is clear that the ratio has increased in year 2011-12. It
is just because the value of assets has increased.
Proprietary Ratio:
Analysis: From the above diagram it is clear that the capital and reserves has increased in
year 2017-18 by reserves and surplus by Rs. 200,000 and the total assets has also increased
so that the proprietary ratio has increased 0.001 in year 2017-18. This because the
proprietor’s fund and total assets both has increased similarly.
Stock Turnover Ratio:
Analysis: From the above diagram it is clear that the firm’s stock sell out in year 2017-18 2
days early than year 2016-17.
33
0.0205
0.021
0.0215
0.022
2016-17 2017-18
Series 2
Series 1
23
24
25
26
2016-17 2017-18
Series 1
Series 1
34. Fixed Assets Turnover Ratio:
Analysis: From the above diagram it is clear that the fixed assets and
the total sales has been increased that is why the Fixed Assets
turnover ratio has also increased in year 2017-18 by 5.32.
34
26
27
28
29
30
31
32
33
34
35
2016-17 2017-18
Series 3
Column1
Series 1
36. Ratio Analysis:
A tool used by individuals to conduct a quantitative analysis of information in a
company's financial statements. Ratios are calculated from currentyear
numbers and are then compared to previous years, other companies, the
industry, or even the economy to judgethe performanceof the company.
Ratio analysis is predominately used by proponents of fundamental analysis.
There are many ratios that can be calculated from the financial statements
pertaining to a company's performance, activity, financing and liquidity. Some
common ratios include the price-earnings ratio, debt-equity ratio, earnings per
share, assetturnover and working capital.
A financial ratio (or accounting ratio) is a relative magnitude of two selected
numerical values taken froman enterprise's financial statements. Often used
in accounting, there are many standard ratios used to try to evaluate the
overall financial condition of a corporation or other organization. Financial
ratios may be used by managers within a firm, by currentand potential
shareholders (owners) of a firm, and by a firm's creditors. Financial analysts
use financial ratios to comparethe strengths and weaknesses in various
companies. If shares in a company aretraded in a financial market, the market
price of the shares is used in certain financial ratios.
Ratios can be expressed as a decimal value, such as 0.10, or given as an
equivalent percent value, such as 10%. Someratios are usually quoted as
percentages, especially ratios that are usually or always less than 1, such as
earnings yield, while others are usually quoted as decimal numbers, especially
ratios that are usually more than 1, such as P/E ratio; these latter are also
called multiples. 36
37. These comprisethe firm's "accounting statements" or financial statements.
The statements' data is based on the accounting method and accounting
standards used by the organization.
Financial ratios quantify many aspects of a business and are an integral partof
the financial statement analysis. Financial ratios are categorized according to
the financial aspect of the business which the ratio measures. Liquidity ratios
measurethe availability of cash to pay debt. Activity ratios measure how
quickly a firm converts non-cash assets to cash assets. Debt ratios measurethe
firm's ability to repay long-term debt. Profitability ratios measurethe firm's
use of its assets and control of its expenses to generate an acceptable rate of
return. Market ratios measureinvestor responseto owning a company's stock
and also the cost of issuing stock. These are concerned with the return on
investment for shareholders, and with the relationship between return and the
value of an investment in company’s shares.
Financial ratios allow for comparisons
between companies
between industries
between differenttime periods for one company
between a single company and its industry average
Ratios generally are not useful unless they are benchmarked against
something else, like past performanceor another company.
In our report wehave take 10 financial ratios to analyze Gupta Automobile’s
liquidity, activity, solvency, profitability, etc.
37
38. Analysis of Financial Data: As above comparative Balance Sheet shows that, the
capital of the firm remains constant in both the years. Whereas, reserves and surplus, has
been increased 15%, which means the company is ready to sell more number of bikes and
scooters for that they have increased their reserves.
The profit gained in 2017-18 will help in decreasing the bank loan, which means the
company is able to make huge amount of sales without any debt. Cash on hand has been
increased, too.
Final Accounts:
Profit and Loss Account
Income 2016-17 2017-18
Sales 825000000 923400000
OtherIncome 2000000 3250000
Closingstock 30000000 32000000
TOTAL
857000000 958650000
Expenditure
OpeningStock 22500000 30000000
Purchase 680000000 739075000
Transport Expense - -
Incentives 825000 923400
Electricity 8250000 9234000
StationeryExpenses 8250000 9234000
Salary 16500000 18468000
Interest 24750000 32319000
Income Tax 2500000 2425000
Tax 81600000 96079750
Net Profit 11825000 20891850
TOTAL
857000000 958650000
38
39. BALANCE SHEET
Particular 2010-11 2011-12
Sources ofFunds
Capital 36077000 36077000
ReservesandSurplus 1300000 1500000
Deposit 1000000 1000000
Profit 11825000 20891850
Loan Funds
Bank Loan 5000000 4600000
CurrentLiabilities
accounts payable 200000 210000
Bank overdraft 4500000 4100000
Total
59902000 68378850
ApplicationofFunds
Fixed assets:
Machinery 2410000 2200000
Land 11500000 11900000
Furniture and fixtures 3200000 3600000
Other Fixed Assets 4715000 2641850
Current assets:
Cash 500000 560000
Accounts Receivable 1500000 1400000
ClosingStock 30000000 40000000
TOTAL
59902000 68378850
Sourcesof Finance:
Sourcesof finance canbe classifiedintotwo:
- Internal Sources
- External Sources 39
40. But, Gupta automobiles prefer only internal sources of finance, which includes the retained
earnings, debt collection, owner’s capital, etc.
40
42. Organization structure:
Below is the organizational structure of Gupta automobiles
Introduction
The very essence of any business is to cater needs of customer by providing services and
goods, and in process create value for customers and solve their problems. Production and
operations management talks about applying business organization and management
concepts in creation of goods and services.
Production
Productionisa scientificprocesswhichinvolvestransformationof raw material (input) intodesired
productor service (output)byaddingeconomicvalue.Productioncan
42
Worker
Management
Top
Management
Top management
(Niraj Gupta)
General Manager
(Raj Kr Gupta)
Account Manager
(Ranjeet Kr Sinha)
WorkShop
Manager(Amit Kr)
Sales Manager
(Sidharth Barik)
Sales Person
43. Production through separation: It involves desired output is achieved through
separation or extraction from raw materials. A classic example of separation or extraction is
Oil into various fuel products.
Production by modification or improvement: It involves change in chemical and
mechanical parameters of the raw material without altering physical attributes of the raw
material. Annealing process (heating at high temperatures and then cooling), is example of
production by modification or improvement
Production by assembly : Car production and computer are example of production by
assembly
Importance of Production Function and Production Management
Successful organizations have well defined and efficient line function and support function.
Production comes under the category of line function which directly affects customer
experience and there by future of organization itself.
Aim of production function is to add value to product or service which will create a strong
and long lasting customer relationship or association. And this can be achieved by healthy
and productive association between Marketing and Production people. Marketing function
people are frontline representative of the company and provide insights to real product
needs of customers.
An effective planning and control on production parameters to achieve or create value for
customers is called production management.
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Input
scientific
Process
Output-
Services/Goods
44. Operations Management
As to deliver value for customers in products and services, it is essential for the
company to do the following:
1. Identify the customer needs and convertthat into a specific productor
service(numbers of products required for specific period of time)
2. Based on productrequirement do back-ward working to identify raw
material requirements
3. Engage internal and external vendors to create supply chain for raw
material and finished goods between vendor → production facility →
customers.
Operations management captures above identified 3 points
Production Management v/s Operations Management
A high level comparison which distinct production and operations
management can be done on following characteristics:
Output: Production management deals with manufacturing of products like
(computer, car, etc) while operations management cover both products and
services.
Usageof Output: Products like computer/car are utilized over a period of
time whereas services need to be consumed immediately
Classification of work: To produceproducts like computer/car moreof
capital equipment and less labour are required while services requiremore
labour and lesser capital equipment.
44
45. Customer Contact: There is no participation of customer during production whereas
for services a constant contact with customer is required.
Production management and operations management both are very essential in meeting
objective of an organization.
Plant Location:
Gupta Automobiles is situated in Swarajpuri Road. Itis one of the biggest
industrial area is justone street away from Gaya which is also the biggest
industrial area of Gaya. The population of the area is also very large so Gupta
Automobiles target the middle and lower class people
45
47. Material handling:
Material handling is one of the important part or subject to be concern for
any service sector unit.
In Gupta also more emphasis is given to material handling, so that customer get more
satisfy.
As there is no movement of raw material in Gupta automobile they pay more attention to
the quality of finish product.
Warehousing:
A warehouse is a commercial building for storage of goods. They are usually
large plain building use to load and unload goods from trucks.
Gupta Automobiles has warehouse capacity of 2500-3000 no of bikes.
Purchase function:
As they deal with the finished product directly, they wouldn’t purchase raw material. They
place order directly with the manufacturing unit using online software (S.S.G.C) specially
designed for Gupta Automobiles. Order should be place before a month age and it should
be of minimum 95 lakh.
47
49. Introduction
Definition of Marketing:
Marketing is a social and management process by which individuals and group obtain what
they need through creating and exchanging products and value with other.
By PHILIP KOTLER
Definition of Marketing Management:
Marketing management means analyzing, planning, implementing and controlling the
marketing activities with the objectives of marring the desired exchange mutually
advantageous to the seller and the buyer. – By PHILIP KOTLER
1) Selling focuses on the need of the seller, marketing on the needs of the buyer.
2) Marketing with the ideas of stashing the needs of the customer by the means of the
product and the whole customer of the things associated with creating and finally
consuming it.
3) The marketing concept rests on four pillars, target marketing, marketing profitability.
4) The marketing concept takes an outside in perspective. Organization structure of
marketing department:
49
Top
Management
General
Manager
Sales
Executives
Billing
Department
Sales
Manager
Insurance
Department
50. Marketing mix
The marketing mix is a business tool used in marketing and by marketing professionals. The
marketing mix is often crucial when determining a product or brand's offering, and is often
synonymous with the four Ps: Price, Product, Promotion, And Place; in service marketing,
however, the four Ps have been expanded to the Seven Ps to address the different nature of
services.
Product
A product is seen as an item that satisfies what a consumer needs or wants. It is a tangible
good or an intangible service. Intangible products are service based like the tourism
industry, the hotel industry and the financial industry. Tangible products are those that have
an independent physical existence. The marketer must also consider the product mix.
Marketers can expand the current product mix by increasing a certain product line's depth
or by increasing the number of product lines.
Product mix:
According to Philip Kotler “Product mix (also called as product assortment) is the set of all
products and items a particular seller offers for sale”. Product mix pertains to the variety of
products a company sells. There are four dimensions to product mix, namely,width, length,
depth and consistency.
Width:
The width of the product mix consists of all the product lines that the company has to offer
to its customers. If we take P&G for example, the width of the product line would consist of
Hair Products, Oral care, Soaps and Detergents, Baby Care, Personal Care and Home care.
50
51. Length: Length of the product mix includes the total number of products offered to the
customers. The number of products provided by P&G is 16 which is the total length of its
product mix.
Depth: Depth of a product mix pertains to the number of variants that are offered in each
product in the line. If we take the example of Ariel we can see that it is available in a lot of
sizes (100 GM, 250 GM, 1kg, etc.) and different types like- Front O Matic and Fragrances etc.
Consistency: Consistency of a product mix refers to the relationship of the various
product lines in terms of end use, product requirements, distribution channels, or some
other way. P&G’s product lines are all consistent because they only concentrate on selling
FMCG products.
Product line: (length and width):
Passion xpro
Ignitor
Maestro
Impules
Hf Dawn
Hf Deluxe
Pleasure
Splendor Plus
Splendor Nxg
Passion Pro
Super Splendor
Glamour
Splendor Pro
Glamour
Achiever
Xtreme
Hunk
Karizma
Karizma ZMR
Destini 51
52. Product depth:
Where,
No of items (length):19
No of lines (width):01
No of items (depth): 09
Pricing
Introduction
Pricing is a very crucial matter for the marketing manager because it affects the demand,
sales promotion, competitive strength of the business unit, ego satisfaction of the
customers and ultimately the profit. Sometime, it happens that efficiency of other
functional areas is attached by the faulty price decisions. Therefore, extra ordinary care
should be taken at the time of marketing pricing decisions
52
•x pro
•ProPassion
•Plus
•Nxg
•Super
•Pro
Splendor
•Cdrs
•Cdss
•FiGlamour
53. Definition of pricing:
“Pricing is the element in the marketing mix that creates sales revenue,
the other elements are costs”.
Economist defines prices as the exchange value of a product or service always expressed in
money.
Money (price) = Balance of expectations or satisfactions.
Include in the bundle of expectations may be physical product plus other attributes such as
delivery, installation, credit, return privileges, after sales servicing and so on.
Methods of Pricing:
Gupta Hero is follows Cost oriented method or cost based methods of pricing:
Gupta Hero are following these factors:
Ex. Showroom prices
+
RTO charges
+
Insurance charges
+
Road Tex
=
On Road Price
+
Optional cost (GL+ACC)
=
Total price 53
55. Place
Level:
Warehouse:
Gupta Automobile has very large warehouse which can store 2500-3000 bikes or
scooters.
Promotion
Consumer promotion tools:
1.Coupons
2.Premiums (gifts)
3.Free trails
4.Product warranties
5.Cash refund offers 55
6.Exchange fair
Hero MotoCorp
Gupta Hero
Customer
56. Physical Evidence
Physical evidence is the material part of the service. There is much physical evidence, which
is as follows:
1.Front Part of Showroom
56
58. 4.Sign boards
5.Logo
6.Brochures
7.Building
8.Company’s websites
Peoples
Peoples deliver service in all sorts of settings. It’s an important element of the service
marketing mix. If you go to an organized event such as the Olympic then everything about
the experience is undertaking by peoples. Behind the scene there are project manager,
staffs and accountant. The people deliver the service and this is the same for the any other
organized organization.
Process
Here process is more about the customer interference; it’s about how the staff or
management handles with their clients or customers
58
60. The study finds that majority of customer werehighly influenced by the
comfortof the bike. It is important to note that experienced customers areone
of the important influencing factors behinds a number of purchases.
Following are the other important findings of the study,
Age: Majority of the customers falling under the age group of 20-30
Buying preference: Majority of the customer prefer comfort as an important factor while
making the purchase decision of a bike.
Style: Most of the customers (64%) were influenced by the style of the bike.
Comfort: Most of the customers were influenced by the comfort of the bike.
Mileage: Majority of the customer prefer mileage as an important influencing factor.
Price: Most of the customers were influenced by the price of the bike.
Product features: Most of the customers were influenced by the product features of
Hero’s bike. Technology: 66% customers were influenced by the technology of the Hero’s
bike.
Parts and service availability: Most of the customers (58%) were influenced by the parts
and service availability of the Hero’s bike.
Brand perception of customer: Most of the customers (62%) were influenced by the
brand image of Hero.
Purchase of buying: Majority of the customers (98%) were purchased their bike for
personal purposes.
Advertisement: Majority of the customer were influenced by the advertisement.
Experienced users: It is important note that experienced customer become an important
influencing factor behind a number of purchases.
Customer satisfaction: Majority of the customer (92%) were highly satisfied about the
performance of the bike.
60
62. After studying the whole organizationalprocesses and procedures wehave
rated the firm6.5/10.
The below suggestions (Pageno. 57) will improvethe organization’s
development.
We have learned fromthis training that how to influence the customers,
various marketing techniques, etc.
62
64. Suggestions which would be beneficial for the organization;
Selection Procedure:
The firm has to plan an effective selection procedure, so that the firm gets the appropriate
employee.
Temporary Employees:
The firm has to decrease the number of temporary employees because every time firm has
to recruit a new employee, when any employee left the job. For this the firm has to increase
the job satisfaction of the employees.
Means of advertisement:
The firm has to increase the means of advertisements i.e. through radio channels, local TV
channels and local newspapers. This will increase the sales of the firm
64
68. Profit and Loss Account
Income 2016-17 2017-18
Sales 825000000 923400000
OtherIncome 2000000 3250000
Closingstock 30000000 32000000
TOTAL
857000000 958650000
Expenditure
OpeningStock 22500000 30000000
Purchase 680000000 739075000
Transport Expense - -
Incentives 825000 923400
Electricity 8250000 9234000
StationeryExpenses 8250000 9234000
Salary 16500000 18468000
Interest 24750000 32319000
Income Tax 2500000 2425000
Tax 81600000 96079750
Net Profit 11825000 20891850
TOTAL
857000000 958650000
68
69. BALANCE SHEET
Particular 2010-11 2011-12
Sources ofFunds
Capital 36077000 36077000
ReservesandSurplus 1300000 1500000
Deposit 1000000 1000000
Profit 11825000 20891850
Loan Funds
Bank Loan 5000000 4600000
CurrentLiabilities
accounts payable 200000 210000
Bank overdraft 4500000 4100000
Total
59902000 68378850
ApplicationofFunds
Fixed assets:
Machinery 2410000 2200000
Land 11500000 11900000
Furniture and fixtures 3200000 3600000
Other Fixed Assets 4715000 2641850
Current assets:
Cash 500000 560000
Accounts Receivable 1500000 1400000
ClosingStock 30000000 40000000
TOTAL
59902000 68378850
69
70. CHAPTER - 6
APPENDIX
6.1 QUESTIONARRIE
I have conducted a small survey in from customers who are coming for shoping. The survey
is done through personal interview method.
1. Do you stick to shopping at the same Place?
a. Yes
b. No
2.What price would you typically pay for a motorcycles?
a. Under 45000
b. 45000-60000
c. 60000-70000
d. 70000- 80000
e. 80000-100000
3. How much do you spend on Motercycles monthly or annually CC ?
a. 100cc
b. 110cc
c. 112cc 70
71. d. 125cc
e. Other
4.which are the places you buy most of the Motorcycles from?
a. Any Dealerships
b. Any Bikes
c. shows and exhibitions
d. Braded retail outlets
5. Do you also buy accessories, Movils and Services matching up to your Motorcycles ?
a. Yes
b. No
6. Do you like your product quality ?
a. Yes
b. No
7. How often do you come to our shop?
a. Once a year
b. Daily
c. Weekly 71
72. d. Once a month
e. Every 2-3 months
8.Overall, how satisfied were you with your new PRODUCT?
a. Not at all satisfied
b. Somewhat satisfied
c. Satisfied
d. Very satisfied
72