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Akash kumar summer trainig report


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Akash kumar summer trainig report

  1. 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. 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. 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. 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. 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. 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. 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
  8. 8. Industry Profile 8
  9. 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. 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
  11. 11. Company Profile 11
  12. 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. 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. 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. 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 :  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. 16.  Promoter: Mr. Raj kumar Gupta  Bankers: HDFC Bank  Competitors: SemmaHonda Parvati Yamaha Om sai Automobiles Shakti Bajaj A.B TVS. 16
  17. 17. Location chart: 17
  18. 18. Human Resource Department 18
  19. 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. 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. 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. 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. 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. 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
  25. 25. Finance Department 25
  26. 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. 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
  28. 28. Ratios of2 years: Particulars 2010-11 2011-12 Gross-ProfitRatio 17.48% 19.19% Net-ProfitRatio 1.43% 2.26% OperatingProfitRatio 14.38% 16.08% OperatingRatio 85.62% 83.92% CurrentRatio 6.28 : 1 9.73 : 1 QuickRatio 10.35 : 1 9.37 : 1 Returnon Assets 0.0143 0.022 ProprietaryRatio 0.021 0.022 Stock TurnoverRatio 26 days(approx) 24 days(approx) FixedAssetsTurnoverRatio 29.64 34.96 Gross Profit Ratio: 28 16.5 17 17.5 18 18.5 19 19.5 2016-17 2017-18
  29. 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. 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. 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. 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. 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. 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
  35. 35. Comparative Balance Sheet: Particulars 2016-17 2017-18 Difference Percentage increaseand decrease SourcesofFunds Capital 36077000 36077000 0 0 ReservesandSurplus 1300000 1500000 200000 15.38 Deposit 1000000 1000000 0 0 Profit 11825000 20891850 9066850 76.67 LoanFunds Bank Loan 5000000 4600000 -400000 (8.00) CurrentLiabilities Accountspayable 200000 210000 10000 (5.00) Bank overdraft 4500000 4100000 -400000 (8.88) Total 59902000 68378850 8476850 14.15 Applicationof Funds Fixedassets: Machinery 2410000 2200000 -210000 (8.71) Land 15507000 15900000 393000 2.53 Furniture andFixture 4200000 3670000 -530000 (12.61) OtherFixedAssets 5715000 4641850 -1073150 (18.77) Currentassets: Cash 500000 560000 60000 12.00 AccountsReceivable 1570000 1407000 -163000 (10.38) ClosingStock 30000000 40000000 10000000 33.33 TOTAL 59902000 68378850 8476850 14.15 35
  36. 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. 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. 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. 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. 40. But, Gupta automobiles prefer only internal sources of finance, which includes the retained earnings, debt collection, owner’s capital, etc. 40
  41. 41. Production Department 41
  42. 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. 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. 43 Input scientific Process Output- Services/Goods
  44. 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. 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
  46. 46. Plant Layout 46
  47. 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
  48. 48. Marketing Department 48
  49. 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. 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. 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. 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. 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
  54. 54. Different price of the product: S.No MODEL OF BIKES PRICE IN RS.(ON ROAD) 1 HF DELUXE 57816 2 HF-DELUXE-I3S 59253 3 HF-DELUXE ECO 59158 4 SPLENDOR+ 62732 5 SPLENDOR+I3S 63930 6 SPL-ISMART-110 67016 7 PASSION PRO 65492 8 PASSION PRO –DISC 67694 9 PASSION PRO-110 66188 10 PASSION PRO-110-DISC 68393 11 PASSION XPRO 67612 12 PASSION XPRO-DISC 69822 13 PLEASURE CAST 59694 14 PLEASURE RIM 57494 15 MAESTRO EDGE-VX 64758 16 MAESTRO EDGE-ZX 66076 17 DUET-VX 64317 18 DESTINI-LX(RIM) 66702 19 DESTINI-VX(CAST) 69995 20 SUPER SPLENDOR 69435 21 SUPER SPLENDORSX 70481 22 GLAMOUR 70154 23 GLAMOUR DISC 72354 24 GLAMOUR –SX 72577 25 GLAMOUR-DISC SX 74777 26 GLAMOUR FI-DISC-SX 78627 27 GLAMOUR FI-CBS 80914 28 ACHIEVER-DISC 81823 29 ACHIEVER 79618 30 XTREME 200R 107865 31 XTREME SPORTFRONT-DISC 92610 32 XTREME SPORTREAR-DISC 94810 54
  55. 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. 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
  57. 57. 2.Banners 3.Uniforms:
  58. 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
  59. 59. Findings 59
  60. 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
  61. 61. Conclusion 61
  62. 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
  63. 63. Suggestions 63
  64. 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
  65. 65. Bibliography 65
  66. 66.  Books Financial Management –by I M Pandey Marketing Management –by Philip Kotler Human Resource Management –by P. Subba Rao Production Management –by K. Ashwathappa  Internet:  Financial management by: Mr. Rajesh Jain (Account manager)  Marketing management by: Mr. Manish Kumar(Assistant Sales manager)  Human resources management by: Mr. Raj Kumar Gupta (General manger) 66
  67. 67. Annexure 67
  68. 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. 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. 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. 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. 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