Organizational Study: CHOUDHARY UMBRELLA PVT. LTD.

1. A REPORT ON LAB HOURS PROJECT
Undertaken at
CHOUDHARY UMBRELLA PVT. LTD.
COLLEGE ROAD, NEAR PETROL PUMP, FALNA, PALI-
RAJASTHAN-306116
Submitted to CMS Business School in partial fulfillment of the Master of Business
Management program offered by the Jain University, Bangalore during the academic
year 2015- 17
Submitted by
ZAHEER SAYYED
15MBA14212
1st Semester
Section E
Under the guidance of
Prof . SHARAT KUMAR
# 319, 17th Cross, 25th Main, J P Nagar 6th Phase, Bangalore – 560078
Karnataka, INDIA
E-mail: bschool@cms.ac.in, Website: www.bschool.cms.ac.in

2. “An Organizational Study on Choudhary Umbrella Pvt. Ltd.”

4. ACKNOWLEDGEMENTS
First and foremost, I am deeply indebted to the management of CMS Business
School and Jain University, Bangalore, for having admitted me to undergo the MBA
program during the academic year 2015 – 17 in this temple of learning.
I take this opportunity to express my gratitude and profound thanks to Prof
Dinesh Nilkant, Center Head, CMS Business School and Prof. NVH Krishnan,
Registrar, Jain University for being my knowledgeable mentors during my career at
this institute.
I would also like to thank my study supervisors Prof. Sharat Kumar and Mr
Arun Choudhary for their constant guidance and support for the successful completion
of this study.
I am also thankful to all the respondents in the organization who have
extended their cooperation in providing me with the necessary data for completing
this study on time.
ZAHEER SAYYED

5. DECLARATION
I, hereby declare that this Lab Hours/ Project titled An Organizational Study on
Choudhary Umbrella Pvt. Ltd. for CMS Business School is prepared by me during the
academic year 2015-17 under the guidance of Prof. Sharath Kumar.
This project is not based on any previously submitted project for the award of any
degree or diploma offered by any university.
It is the result of my own effort.
Place: Bangalore Signature
Date: 15-02-2016
Name: Zaheer Sayyed
Sem: 1st Sec: E
Reg. No.: 15MBA14212

6. TABLE OF CONTENTS
TABLE OF CONTENTS
Chap No. Page No.
I. Introduction
Executive Summary 1-3
1.1 Organization Study – An overview 5
1.1.1 Nature & Scope 6
1.1.2 Objectives 7
1.1.3 Methodology 7
1.1.4 Limitations 7-8
1.2 Industry Analysis 9-10
1.2.1 Global Scenario 11-12
1.2.2 Indian Scenario 13-16
1.2.3 Environmental Study – PEST 23-25
1.2.4 Market Forces – Porter’s Model 26-30
II. About the Organization
2.1 Background of the Organization 32-33
2.2 The Mission, Vision & Corporate Goal 34
2.3 SWOT Analysis 35-36
2.4 Product & Markets 37
2.5 The Balance Score Card Approach 38-41
III. The Organization Structure
3.1 Organization Structure – Theoretical Perspective 43-45
3.2 The Organization Structure of the firm 46
3.3 Review of the existing Organization Structure 46
IV. Business / Unit Level Analysis
4.1 Administration and Human Resources Function 48
4.2 Production Function 48-49
4.3 Research & Development Function 49

7. 4.4 Finance / Accounting Function 49
V. Summary of Observations, Learning outcome and Conclusion
5.1 Key Observations 51
5.2 Learning outcome 51-52
5.3 Conclusion 52
Bibliography 53

8. Executive Summary

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Executive Summary
The organizational study was conducted at CHOUDHARY UMBRELLA Pvt.
Ltd., FALNA for 10 days from 28th December to 6th January 2016. The MBA
courseoffered by the CMS Business School, Bangalore, has its own unique
syllabus which requires its MBA students to undertake an organization study
with any of the leading organizations for a period of 10 days during the First
semester. Forthe purposeof acquiring practical knowledge of the working and
functioning of a company, CMS Business Schoolhas incorporated an in plant
training into its Business Management schedule. This in plant training shows us
how the different departments in an organization work and wins as a single unit.
The study was conducted in an Umbrella Manufacturing Company.
Organizational studies, sometimes known as organizational science, encompass
the systematic study and careful application of knowledge about how people act
within organizations. Whenever people interact in organizations, many factors
come into play. Modern organizational studies attempt to understand and model
these factors. Like all modernist social sciences, organizational studies seek to
control, predict, and explain. The organization study is the systematic learning
process aboutan organization to understand the different roles of each members
in the organization.
Manufacturing is a broad term. Virtually any process that turns a raw material
into a finished productthrough use of a machine can be considered
manufacturing. However, we can break down the types of manufacturing based
on what companies produceor by industry; how they producethem, discrete or
flow; and the level of engineering effort required to manufacture them.
There are many products that use textile in a good measure. One of such textile
products is the umbrella. An umbrella can be simply defined as a canopy for
protection against rain, snow or sunlight. The term umbrella has been derived
from the Latin word umbra which means "shade". Umbrellas are generally

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hand-held portable devices rendering fashion statement in some societies and
used as an accessoryin some other societies. However, some of these can be big
enough that can be fixed to patio tables or other outdoorfurniture. They are the
'Parasols', the term which is synonymously used for umbrellas as well. Parasols
can be bigger as well as smaller but they are primarily meant for protection only
against sun.
Choudhary Umbrella Pvt. Ltd. is an Indian Manufacturer (a consumer goods
manufacturer) making Umbrellas, Parasols, Garden Umbrellas, WoodenFrames
and Umbrella Frames. An efficiently managed workforce, who bring years of
industrial experience and exposure and with their assistance, they are able to
manufacture quality products, which are according to the requirements of the
customers. Their principle business goal is to excel in the quality standard
which has assisted them to manufacture, export and supply of premium quality
umbrellas and umbrella frames as per the needs of their clients. This approach
has helped them in acquiring a wide client base.
Umbrella manufacturing is basically a hand-assembly process where various
parts are joined to each other in a methodical manner. Apart from the canopy
made of fabric, the other parts of umbrella are Shaft, Ribs, Stretchers, Runner,
and Handle. They can be made of wood, metal, plastic or any other such
material.
The functional department of Choudhary Umbrella has the following
departments: Production, Marketing, Finance, Human Resources and
Operations.
In the process ofmy organizational study the things I have learnt are to
recognize human communication, co-ordination and interactions in
organizations and workplaces according to firm's perspectives. Learn
implemented concepts and perspectives from employees in different parts and
systematically observethe work done. Describe distinctive elements of
organizational culture, social influence, interpersonal communication, and

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organizational change as applied to work settings. Learn about the work culture
and ethics. Accurately select and apply qualitative and quantitative findings to
case studies in future, and demonstrate basic knowledge of organization
behavior.
The structure of an organization varies depending on a number of influencing
factors. Structure is affected by the external environment in which the business
operates as well as its culture and the nature of the work and activities it
undertakes. The structure of Choudhary Umbrella has a positive impact on its
business. Having the right structure allows a business to respond and adapt to
changes in the market quickly. Innovation and creativity are usually found in
flatter organizational structures and in organizations with an employee focused
culture, Choudhary Umbrella culture means it motivates and empowers its
employees. This encourages them positively to contribute to generating relevant
ideas and effective team working in this innovative working environment.
Training and learning in a class room will make an individual knowledgeable in
theory of the various functions of a company. But a personcomes out from
class room and visits various industries, in this situation he can learn more from
them. In such a situation real experience in the practical functioning and
operations of a company can be of very much use to the students of
management studies.

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CHAPTER 1
Introduction to the study
And
Industry Profile

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INTRODUCTION
ORGANIZATION STUDY
1.1 ORGANIZATION
An organization is a social unit which is purposefully constructed and
reconstructed to seek definite objectives and goals. It is an association formed
by a group who see that there are benefits available from working together
towards a common goal. It is a social unit of people, systematically structured
and managed to meet a need or to pursue collective goals on a continuing basis.
All organizations have a management structure that determines relationships
between functions and positions, and subdivides and delegates roles,
responsibilities, and authority to carry out defined tasks. Organizations are open
systems in that they affect and are affected by the environment beyond their
boundaries.
1.1.1 ORGANIZATIONAL STUDY
The organizational study was conducted at CHOUDHARY UMBRELLA Pvt.
Ltd., FALNA for 10 days from 28th December to 6th January 2016. The MBA
courseoffered by the CMS Business School, Bangalore, has its own unique
syllabus which requires its MBA students to undertake an organization study
with any of the leading organizations for a period of 10 days during the First
semester. Forthe purposeof acquiring practical knowledge of the working and
functioning of a company, CMS Business Schoolhas incorporated an in plant
training into its Business Management schedule. This in plant training shows us
how the different departments in an organization work and wins as a single unit.
The study was conducted in an Umbrella Manufacturing Company.

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1.1.2 NATURE AND SCOPE OF THE STUDY
Organizational studies, sometimes known as organizational science, encompass
the systematic study and careful application of knowledge about how people act
within organizations. Whenever people interact in organizations, many factors
come into play. Modern organizational studies attempt to understand and model
these factors. Like all modernist social sciences, organizational studies seek to
control, predict, and explain. The organization study is the systematic learning
process about an organization to understand the different roles of each members
in the organization.
Training and learning in a class room will make an individual knowledgeable in
theory of the various functions of a company. But a personcomes out from
class room and visits various industries, in this situation he can learn more from
them. In such a situation real experience in the practical functioning and
operations of a company can be of very much use to the students of
management studies.
1.1.3 OBJECTIVES OF THE STUDY
 To familiarity with the business organization.
 To gain familiarity with the different departments in the organization
and their functioning
 To understand the structure and functioning of the organization.
 To understand the delegation of authority and responsibility.
 To understand the responsibility and authority of key people.
 To understand how the key business processes are carried out in
organizations.
 To understand the various policies and programs of the organization
 To understand the corebusiness level functions of the organization.
 To study in detail the organization structure and design.

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 Understand how information is used in organization for decision
making at various levels.
 To explain the possibleways to eradicate weakness and problems in
the ways of suggestions and recommendations.
 To relate theory with practice.
1.1.4 METHODOLOGY
 The study encompasses the purposeful and careful application of
knowledge about how people perform within organizations.
 By understanding the working environment of the organization.
 By understanding the functions within the organization.
 By analysing the organization structure.
 By observing the various departments and their inter-relations
 By communicating with employees at various levels
 By scanning through documents and information provided by the
company
1.1.5 LIMITATIONS OF ORGANIZATIONAL STUDY
 The busy schedules of executives and managers limited the data
received from them.
 The study is limited to an overview and is not in depth due to the
short period for the study.
 The data used for the study depends on the company’s report and
information given by the executives.
 The reliability of the data is based on the information provided by
the company and its executives

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 The company had inhibitions in disclosing their financial,
production, manufacturing and export details, so a detailed analysis
is not possible.

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INDUSTRY ANALYSIS
Introduction
1.2 Introduction:
Manufacturing industry refers to those industries which involve in the
manufacturing and processing of items and indulge in either creation of new
commodities or in value addition. The manufacturing industry accounts for a
significant share of the industrial sector in developed countries. The final
products can either serve as a finished good for sale to customers or as
intermediate goods used in the productionprocess.
Manufacturing is a broad term. Virtually any process that turns a raw material
into a finished productthrough use of a machine can be considered
manufacturing. However, we can break down the types of manufacturing based
on what companies produceor by industry; how they producethem, discrete or
flow; and the level of engineering effort required to manufacture them.
There are many products that use textile in a good measure. One of such textile
products is the umbrella. An umbrella can be simply defined as a canopy for
protection against rain, snow or sunlight. The term umbrella has been derived
from the Latin word umbra which means "shade". Umbrellas are generally
hand-held portable devices rendering fashion statement in some societies and
used as an accessoryin some other societies. However, some of these can be big
enough that can be fixed to patio tables or other outdoorfurniture. They are the
'Parasols', the term which is synonymously used for umbrellas as well. Parasols
can be bigger as well as smaller but they are primarily meant for protection only
against sun.

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Working of umbrella industry:
Manufacturing industries are the chief wealth producing sectors ofan economy.
These industries use various technologies and methods widely known as
manufacturing process management. Manufacturing industries are broadly
categorized into engineering industries, construction industries, electronics
industries, chemical industries, energy industries, textile industries, food and
beverage industries, metalworking industries, plastic industries, transport and
telecommunication industries. We will be looking at Consumer Products
Industries.
Manufacturing industries are important for an economy as they employ a huge
share of the labor force and producematerials required by sectors ofstrategic
importance such as national infrastructure and defense. However, not all
manufacturing industries are beneficial to the nation as some of them generate
negative externalities with huge social costs. Thecostof letting such industries
flourish may even exceed the benefits generated by them.
Umbrella manufacturing is basically a hand-assembly process where various
parts are joined to each other in a methodical manner. Apart from the canopy
made of fabric, the other parts of umbrella are Shaft, Ribs, Stretchers, Runner,
and Handle. They can be made of wood, metal, plastic or any other such
material.

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Global Scenario
1.2.1 Introduction
The global umbrella manufacturing sectorhas undergone a tumultuous decade
with a clear difference between Chinese umbrellas and other makes: Just like
any mass manufactured good China started manufacturing umbrellas in large
quantities at the peak of its industrial growth, and due to the economies of scale
and its export and monetary policies it has been able to establish a global
leadership when it comes to manufacturing and sales of umbrellas and frames.
Indian manufacturers like Choudhary Umbrella Pvt. Ltd. now look forward to
changing this trend. The Indian Government under Prime Minister Narendra
Modi is pushing to make India a primary manufacturing destination which can
only help these industries grow and match Chinese manufacturer that have long
been supported by its government.
 Role is changing. The way it contributes to the economy shifts as nations
mature: India is in the midst of a great change which will make it a
primary manufacturing destination. Umbrella Industry too looks forward
to take advantage of this positive change and establish a market for
themselves globally.
 Manufacturing is dependent. Manufacturing is going through a shift
where it has started to rely more and more on the service sector and the
labor power, thus making it dependent on another ever changing industry.
A handmade manufacturing industry like that off umbrellas is no
exception to it.
 Manufacturing is entering a dynamic new phase. As a new global
consuming class emerges in developing nations, and innovations spark
additional demand, global manufacturers will have substantial new
opportunities—but in a much more uncertain environment.
Role is changing.
Globally, the population is growing. This population is young, educated and
also demand a higher standard of living. They have the disposable income to
ensure that standard. This trend only looks to be growing more and more in
years to come. Umbrella manufacturers need to monitor this trend closely n
shift from the conventional way of manufacturing umbrellas and delivering
quality, innovation and durability. To match the needs and wants of this new
population that is changing at the pace of light and is influenced and
manipulated with viral video. This is a tough task but thanks to the Indian

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government, who have recognized this shift early and is doing everything
possible to help such industries deliver global standard products. Choudhary
Umbrella is making the most of this and trying to grow each day.
Manufacturing is dependent.
Umbrella Manufacturing is a mix of both automated process and handmade
process. Thehandmade process makes it dependent on its workforce which in
the years to come is going to get empowered due to continuous effort of the
Indian government and due to the natural change that this country is going
through. This should alarm industries like Choudhary Umbrella so that they can
prepare itself and try to find ways to be more independent.
Manufacturing is entering a dynamic new phase.
By 2025, a new global consuming class will have emerged, and the majority of
consumption will take place in developing economies. This will create rich new
market opportunities. Meanwhile, in established markets, demand is
fragmenting as customers ask for greater variation. A rich pipeline of
innovations in materials and processes also promises to create fresh demand and
drive further productivity gains across umbrella manufacturing industries.
These opportunities arise in an extremely challenging environment. In some
low-cost labor markets, wage rates are rising rapidly. Volatile resource prices, a
looming shortage of highly skilled talent, and heightened supply-chain and
regulatory risks create an environment that is far more uncertain than it was
before the Great Recession.

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Indian Scenario
1.2.2 Introduction
The Prime Minister of India, Mr. Narendra Modi, has launched the ‘Make in
India’ initiative to place India on the world map as a manufacturing hub and
give global recognition to the Indian economy.
The Government of India has set an ambitious target of increasing the
contribution of manufacturing output to 25 per cent of Gross Domestic Product
(GDP) by 2025, from 16 per cent currently.
Umbrella manufacturing industries look to make the most of this opportunity
and are trying hard to create a share for itself in the Chinese dominated global
market.
Umbrellas are very commonly and extensively used in our country to protect
against sun and rain. The demand for umbrellas depends on different climatic
conditions, increase in population, and general increase in income and change in
social outlook. There are different types of umbrellas such as straight (ordinary)
and folding umbrellas used by gents, ladies and children.
MARKET POTENTIAL
The demand for umbrellas depends on climatic conditions, increase in
population, change in social outlook and customs, export possibility etc. The
maximum demands are in the rainy season. The demand for umbrellas is
expected to increase by 7 to 10% during the next five years in our domestic
market.
TECHNICAL ASPECTS
Processofmanufacture:
Various parts are procured from outside. The cloth is cut to size and stitched.
All parts are assembled manually to form the umbrella. Experienced workers do
the cutting of the cloth stitching and the parts assembly. Mostly they are paid on
Contract basis. Forfolding umbrellas, the complete frame with handle is readily
available and the cloth is stitched and assembled. Manufacturers’ brand name is
stamped on the cloth.

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Quality Specification:
IS: 2920/1964 prescribes the requirements for complete umbrella. The cloth
should be water proofed. All the parts must be good quality. The umbrellas after
assembling must be thoroughly checked to ensure quality.
The quality and finish of the end-productdepends mostly on the excellence of
the various components bought out for assembly and the skills of the
workmanship rendered in the process ofassembly of umbrellas.
Motive Powerrequirements:
Three-phase power supply is not needed for this project. Only single-phase
domestic power connection for light, fan and 5 Amps/15 amps multi power plug
facility will meets the power requirements.
Pollution Control
The Govt. of India is giving outmost importance and taking vigorous steps to
control environmental pollution level which has now reached serious
proportions that was started to threaten the very existence of animal, plant lives
and human health. However, the manufacture/assembly of umbrellas does not
cause to any kind of environmental pollution. Therefore no specific pollution
control equipment’s are needed for this umbrella assembly.
Energy Conservation:
Electrical Energy is the major constituent of the conventional energy forms used
by the industries. There is a shortage for this form of energy in the country. A
wide gap exists today between the demand and supply of electrical energy, as
the generation of electrical, energy is not increasing in proportionwith the
growth of industries. In view of this, there is a need for efficient management
and optimum use of electrical energy to minimize wastage and loss of energy.
The energy thus saved can be used for more productive applications. Also the
energy can be saved to a good extent by arranging skilled manpower, installing
qualitative plant, machinery and equipment’s and adopting advanced tooling
methods.

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Sub-Category: Micro, Small & Medium Enterprises (MSMEs)
Micro, Small and Medium Enterprises contribute nearly 8 percent of the
country’s GDP, 45 percent of the manufacturing output and 40 percent of the
exports. They provide the largest share of employment after agriculture. They
are the nurseries for entrepreneurship and innovation. They are widely dispersed
across the country and producea diverse range of products to meet the needs of
the local markets, the global market and the national and international value
chains.
Investments
In a major boostto the 'Make in India' initiative, the Government of India has
received investment proposals of over US$ 3.05 billion till end of August 2015
from various companies.
India has becomeone of the most attractive destinations for investments in the
manufacturing sector. Umbrella manufacturers look forward to get some
investment from this towards their industry.
Government Initiatives
In a bid to push the 'Make in India' initiative to the global level, Mr. Narendra
Modi, Prime Minister of India, pitched India as a manufacturing destination at
the World International Fair in Germany's Hannover earlier this year. Mr. Modi
showcased India as a business friendly destination to attract foreign businesses
to invest and manufacture in the country.
The Government of India has taken several initiatives to promote a healthy
environment for the growth of manufacturing sector in the country.
Umbrella industry must now back this claims by convincing foreign investors of
the credibility that our Prime Minister has shown in us.
Road Ahead
The Government of India has an ambitious plan to locally manufacture as many
as 181 products. Rain and Sun protection products being one of them.
Government is also improving the overall infrastructure of the industrial sector
which will enable smoother, safer and quicker moments of raw materials and

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finished goods. This will further cut down costand reduce supply chain delays.
The road ahead for umbrella manufacturers in India looks rosy and full of
opportunities if the industry players make the most of it.
TAPPING THE GLOBAL MARKET
 India’s growing manufacturing exports
India’s manufacturing exporters have played a key role in promoting the
sector’s prowess to consumers across the world. Consumer durable goods
make up a huge chunk of this pie and is only rapidly growing. Umbrella is
one such productenjoying this shift. And with the ‘Make in India’
initiative is only going to grow.

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Key Industry Players
Chinese Players
Key Industry Players
1. SUSINO UMBRELLA CO., LTD.
With the approval of Ministry of Commerce, SUSINO UMBRELLA
CO., LTD., as a foreign capital investment joint stockCompany, was
founded based on JINJIANG HENGSHUN UMBRELLA CO., LTD. It
was founded on Sep.22, 1995, engaged in the design, manufacturing and
sales of various types of umbrellas. In the last decade, “SUSINO”
umbrellas have exported to more than 100 countries and territories.
SUSINO UMBRELLA CO., LTD., evolved from a small Original
Equipment Manufacturer (OEM) to a leading manufacture and exporter
of umbrellas in China. “SUSINO”brand has been protected by World
Intellectual Property Organization. (Madrid Agreement and Protocol).
Also it has been granted as CHINA TOP BRAND, CHINA EXPORT
TOP BRAND by Ministry of Commerce, PRC.
On Sep.25, 2007 SUSINO became the first umbrella manufacturer to list
its stockto the market in Shenzhen, CHINA.
2. Fujian Yusimeng Umbrella Industry Co., Ltd.
Founded in 1989, Fujian Jinjiang Zhenhua Umbrella Co., Ltd. is located
in China Umbrella Capital - Dongshi Town of Jinjiang City. The
company specializes in producing various kinds of umbrellas, such as
stick umbrellas, folding umbrellas, beach umbrellas, and advertisement
umbrellas. After more than ten years of efforts and expansion, they have
developed into an advanced company with the modernized factory
building and high educational staffs. By 2003, the company has invested
more than USD5 million totally. Now they have facilities covering an
area of 30,000 square meters, and more than 1,300 workers. Their annual
sale reaches more than USD10 million. They always attach great
importance to quality control and inspection, and have passed ISO9001
quality management system certification. Their Yisimeng brand products

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are sold well in Europe, America, Africa, the Middle East, Japan, and
Southeast Asia.
3. Mei Kar Industrial Co., Ltd.
Mei Kar Industrial Co., Ltd. is a professional manufacturer and exporter
of various types of umbrellas, luggage and softbags for more than ten
years. Headquartered at beautiful coastalisland Xiamen and they have
their own factories located in Quanzhou city. The factory occupied a floor
spaceof 60,800 square metres. They have more than 800 staffs working
together with strictly quality inspected supportwhich will enable them to
provide excellent service for both local & overseas clients.
Mei Kar works closely with its client‘s design team during product
development and maintains a cooperative relationship at all times. Their
products are exported to over 125 countries and territories including the
USA, UK, Germany Ukraine Russia, Belgium, Italy, Brazil, Mexico,
Uruguay, Serbia, Dubai ,Japan, Korea, Thailand, etc. , Meikar produces
over 15million umbrellas annually with a production value of up to $18
million.
MeiKar Leveraging on its advanced technologies, coupled with a high
production capacity and comprehensive one-stop services, has its
products diversified ranging from children umbrella, pvc umbrella,
folding umbrella, golf umbrella and promotion umbrella, and luggage,
soft bags like toilet kit, beauty case, backpack, shoulder bag, travel bag,
wheel duffle, garment bag, briefcase, leather bag, handbag, lady’s bag,
shopping bag, etc.to have become the most favourable choices for buyers.
Mei Kar Company offers communications on a very personal level. They
keep in touch with their clients through a variety of means, including
face-to-face meetings, quarterly updates, and written reports. Based on
their understanding and client’s requirement, they provide professional
suggestion to customize your specific needs and enhance your business.
4. Shangyu Tongfa Umbrella Co., LTD
Shangyu Tongfa Umbrella CO.;LTD is a professional umbrella
manufacturer, located in the umbrella city Shangyu which is about 70
kilometres away from Ningbo port. They can produceevery kind of
umbrellas such as folding umbrella, stick umbrella, golf umbrella and

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beach umbrella, they offer competitive price and supply the good quality
umbrellas to the customer.

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Key Industry Players
Domestic Players
5. Mohendra Dutt Grandsons India Private Limited
Mohendra Dutt Grandsons India Private Limited was established in 1882
in Kolkata by Mr. Mohendra Dutt. Mr Arindam Dutt, who is the Director
and mentor of the organization, has brought up his company at the top of
the business, with his able stewardship. They have been able to carve a
niche for themselves in the business. The company is a very old
organization engaged in manufacturing quality umbrellas and allied
products since 1882. Mohendra Dutt Grandsons Private Limited is
engaged in manufacturing MonsoonUmbrellas, Promotional Umbrellas,
Promotional OutdoorUmbrellas, Garden Umbrellas, Rain Wears,
CorporateUmbrellas with Logo, Golf Umbrellas, 2 Folding Umbrellas, 3
Folding Umbrellas Umbrella Base Stand, Folding Display Stalls and
Tents. The company has also been able to provide our clients with
customized facility and provide a variety of umbrellas suiting to the needs
of our customers.
They have a good manufacturing unit coupled with necessary
machineries and work force to take care of quality production. Backed by
their experienced staff members the company has been able to reach the
top position as a leading manufacturer of umbrellas. Their umbrellas have
exclusive designs, and are durable and it has therefore attracted numerous
customers in India and across the globe. They also keep the latest modern
trends that are floating in the international markets so that we can
introduce new designs and sizes with reasonable pricing.
The company has established a sound infrastructure facility to enable the
company to complete quality production within the scheduled time. All
their units are well equipped and also are equipped with a good team of
professionals. Many of their products are in great demand amongst many
of their customers for use in various activities like promotional activities,
resorts and exhibitions. Their entire range is designed as per the latest
trends in the international market and offered at reasonable prices. They
offer a line of product, which is in great demand for being used in
promotional activities, resorts, and exhibitions.

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6. CITIZEN UMBRELLA, MANUFACTURERS LTD.
CITIZEN UMBRELLA, MANUFACTURERS LTD. is the single largest
umbrella manufacturing company in the country that has the highest
production capacity as on date. CITIZEN designs and sells all types of
umbrella and accessories.
Their commitment to rigorous quality requirements places them amongst
the few companies to be awarded ISO 9001 certification for management
services. CITIZEN boasts ofhaving one of the most advanced units in the
world of umbrella manufacturing.
Umbrellas are a form of shelter, as the total umbrella solutions provider,
CITIZEN'S goal is to offer highest possible quality at the lowest price.
Single brand across the nation manufacturing the latest in designs, while
maintaining consistency and uniformity with a huge productline and
production capacity will give a perceptible shift in the market share
fortifying their domestic segment, they will now strengthen their network
and presence in the global market.
7. Colombo group
Colombo was the first to introduce folding umbrella in Kerala, followed
by 3 fold umbrellas and 4/5 fold umbrellas. They possess100 plus types
of umbrellas ranging from Bubble to Beach Umbrella manufactures,
Capsule to Golf models, Rectangular, hexagonal, octagonal and so on.
They are also well known printed umbrella manufacturers in India. The
components they are using for the manufacturing of umbrellas are the
best available in the globe. Skilled man-power supervised by experts in
the line, deployment of automatic machines and stringent quality tests
contribute to make “Colombo, a perfect umbrella."
The enterprise having crossed its Golden Jubilee, is held along smartly by
the sons of C.K. Kasmi, headed by K.N. Marzook and his three brothers,
committed to achieve even greater glories in terms of quality and service.
8. Asian Umbrella
Asian Umbrella is a leading umbrella manufacturer based in Mumbai.
Their experience lies in creating custom-made umbrellas, with a large

30. 22 | P a g e
choice of fabrics, print techniques, handles, shafts and points ensuring
your umbrella will be totally unique.
Their umbrellas are great for large promotions, advertising and marketing
to make your brand stand out. No matter how complex your logo or
design they will find the right umbrella for the job.
They are committed to excellence in all aspects, from the quality of their
products, to their dedication to the marketplace and the fulfilment of
customer needs.

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1.2.3 PEST ANALYSIS:
POLITICAL:
The first element of a PEST analysis is a study of political factors. Political
factors influence organizations in many ways. Political factors can create
advantages and opportunities for organizations. Conversely they can place
obligations and duties on organizations. Political factors which influence the
Choudhary Umbrella Pvt. Ltd., are as follows:-
 Taxation Laws: Every business has to pay taxes to its government. These
taxes are determined by the policy makers of the nation and must be
abide to.
 Employment Laws: An industry has certain responsibilities towards the
people that work for it hence employment laws do influence how the
industry operates.
 Laws on hiring & Promotion: An extension of the employment laws, an
organization is expected to be fair and transparent and hence must abide
to these laws.
 Local Political Discontent: In India political issues often intertwine with
its businesses and any discontent has a severe impact on them.
 Environmental Regulation: Even though this industry is not very harmful
to the environment but still it is expected to follow the environmental
regulations of the state.
 Government Attitude: The government’s attitude also plays a major role.
Which we saw with China whose government’s attitude made it a global
manufacturing giant, now India looking to do the same has changed its
attitude giving more freedom to industries.
ECONOMIC:
The second element of a PEST analysis involves a study of economic factors.
All businesses are affected by national and global economic factors. National
and global interest rate and fiscal policy will be set around economic conditions.
The climate of the economy dictates how consumers, suppliers and other
organizational stakeholders such as suppliers and creditors behave within
society.
 Economic Growth: The economic growth of a country increases capacitiy

32. 24 | P a g e
to spend. Umbrella and other consumer goods often being cheap are
picked up more often.
 Government Spending: Government spending on infrastructure has
helped Choudhury umbrella reduce its transport and handling costs.
 Taxation: Taxes and schemes under make in India initiative have reduced
the burden on the industry players.
 Stage of the Business Cycle: Many industries in India are going to get a
second chance in life with the macro change happening, Umbrella
industry is one such industry looking to take a step back in its life cycle
with more opportunities this time around.
 Consumer Confidence: Consumers with their increased deciding power
have become more important economically and have changed how these
industries use to operate earlier
SOCIAL:
The third aspectof PEST focuses its attention on forces within society such as
family, friends, colleagues, neighbors and the media. Social forces affect our
attitudes, interests and opinions. These forces shape who we are as people, the
way we behave and ultimately what we purchase.
 Income Distribution: The classes in society based on income helps
industry decide on the kind of products and quantities of the same.
 Demographics, Population Growth : India is in midst of a change with
more social units coming up, new cities forming; which in turn is creating
more a varied demand for umbrellas.
 Labor Mobility: Labor migrate from state to state this should be as easy
and smoothas possibleif industries like Choudhary umbrella want to use
such labors.
 Lifestyle Changes: Change in income brings a change in lifestyle which
leads to change in taste. This change in taste is very important to track
and meet for Choudhary umbrella
 Education: Educated population means a more aware costumer base who
are more detailed about their needs and also cynical about what is
delivered this needs to be tackled effectively.
 Fashion, Trends: Fashion and trends change the perceptions of people and
these are uncontrollable but if handled properly they are the best
opportunity to have a competitive advantage when it comes to a product
like umbrella.
 Health Consciousness, Welfare: Umbrella is not just a rain protectorbut
also sun protector. Certain nations with excessive direct sunlight and
acidic rain due to pollution have raised a health concern which can be

33. 25 | P a g e
reduced with the help of umbrella.
TECHNOLOGICAL:
Unsurprisingly the fourth element of PEST is technology, as you are probably
aware technological advances have greatly changed the manner in which
businesses operate. Organizations use technology in many ways, like
 Spending on Research: As mentioned before the only edge for Choudhary
umbrella can be its research which can be bigger with the increase in
spending and vice-versa.
 Industry focus on Technology: Even though this is a hand assembly
process. Introductionof technology in other aspects can further help them
grow.
 Changes in internet usage: Sales and marketing can further grow with the
usage of internet which is changing for consumer in terms of usage, only
makes for industries to do the same.
 Changes in Mobile Technology: Implementation of mobile technology
for movement of goods or communication reduces wastage in time and
resources.

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1.2.4 PORTER’S FIVE FORCES MODEL
Since its introduction in 1979, Michael Porter’s Five Forces has become the de
facto framework for industry analysis. The five forces measure the
competitiveness of the market deriving its attractiveness. The analyst uses
conclusions derived from the analysis to determine the company’s risk from in
its industry (current or potential). The five forces are
(1) Threat of New Entrants
(2) Threat of Substitute Products or Services
(3) Bargaining Powerof Buyers
(4) Bargaining Powerof Suppliers
(5) Competitive Rivalry among Existing Firms.
(1) Threat of New Entrants:
The dotcomindustry went bust in 2000 because anyone, absolutely anyone,
was starting a website and attracting investors. The dotcomindustry was
expected to reap huge profits, but what we had was a lot of new entrants with
failed business models attracting a lot of money. This was all becauseit is very
easy to enter the dotcommarket, but very tough to establish yourself in it.
This is the threat of new entrants. And this threat exists in all industries. Even
telecommunications brands, which have been shouting out to the government to
stop giving more licenses, find this fear in their mind. That a new entrant will
come who will try to win market share in an already intense industry.
The industry attractiveness increases when there are barriers to entry. For
example – in the import export business, a lot of barriers exist with regards to
government policy. Thus, an established player will see new entrants as a lesser
challenge as compared to an existing competitor. To avoid new entrants, and to
keep the industry profitable, the industry needs several entry barriers in place.
Entry Barriers:
 Economies of scale: Chinese companies enjoy economies of scale which
is difficult to catch up to.
 Brand Identity: Umbrella is not really a productsynonymous with any

35. 27 | P a g e
brand and lacks an identity in the market.
 Switching Cost: Substitute like raincoats, windcheaters and sunscreen
barely have any switching costfor the consumer,
 Capital Requirements: The initial costof procurement of land, machine,
resources and people. And also the costof licensing and permissions.
 Access to Distribution: Global distribution channels mainly arm twisted
by major Chinese players
 Expected Retaliation: Any action has a reaction. No matter what
Choudhary Umbrella does it will face retaliation from competitors that
can’t really be planned for.
(2) Threat of Substitute Products or Services
China is one of the fastest growing nations in the world becauseof its
manufacturing capability, and because of its smart strategy of making substitute
products in millions, such that the original loses some of its value.
However, what do you do when the threat of substitute products are too high?
For example, whenever you consider spare parts of an automobile or even
consumer durable, you will find a lot of substitute spare parts available. In fact,
many consumers prefer the use of substitutes over the original because of the
low price and almost equivalent value added. These substitutes affect the prices
of the company, its demand pattern and therefore its profitability.
Imagine this, you forecasted that there will be a requirement of 1000 membrane
filters in your territory for the next month. But the market bought substitutes of
400 units. You are left with 400 units in your stock. Now, you will drop prices
so that the 400 units sell quickly. And this is how, your profitability drops.
In an industry with high threat of substitute products, it is highly likely that you
will worry more about the substitutes eating your business, and then you will
worry about the competition present in the industry itself.
Determinants of Substitution Threat:
 Price of Substitutes: Cheaper direct substitute productlike Chinese makes
or indirect substitutes like suns cream and rain coats and boots.
 Performance of Substitutes: The performance of substitute affects the
pricing strategies.

36. 28 | P a g e
 Buyer’s propensity to Substitutes: Certain nations like US will prefer rain
coats due to their natural need but in UK it will be the opposite, this
affects the approachof Choudhary umbrella when planning to enter any
such market.
 Switching Cost: Switching costagain if less for buyers is a threat for the
industry.
(3) Bargaining Power of Buyers
Modern retail is taking away the business from small retail outlets. It is because
these modern retail companies have huge bargaining power due to bulk buying.
Hence they are crushing the small retailers. Consider this, the company is
selling products to both, the small retailer as well as the modern retailer.
However, the small retail is buying from a distributor who in turn is buying
from a carrying and forwarding agent. Thus, the chain is huge and profits are
lost in the chain. But in the modern retail scenario, there is at most 2-3 modern
retail chains who are buying by truckloads, selling huge quantities and also
don’trequire a channel. Thus, these modern retailers will have huge bargaining
power due to which a small retailer can consider them as a huge problem when
establishing his own business.
Similarly, there are different ways in which a customer or a buyer can have high
bargaining power over the supplier. In such cases, the industry tends to be
unprofitable because you have to overcome the challenge of having the buying
power over suppliers. Here are a few factors which give bargaining power to
customers.
Determinants of Buyer Power:
Bargaining Leverage
 Buyer Volume: Quantities in which umbrellas are purchased can
increase or decrease their leverage.
 Buyer Switching Costs relative to firm switching cost:The costof
shift in production to new productif more than shift of the
commodity for buyer is high; this gives buyer an upper hand.
 Buyer Information: The available information of the buyer can help
determine the leverage but umbrella is not a productthat can ask a
determine buyer information.

37. 29 | P a g e
 Substitute Product:Availability of close substitutes increases buyers
bargaining power.
(4) Bargaining Power of Suppliers
Companies might not be lucky when they are dealing with suppliers who have a
high bargaining power. And a successfulcompany has to deal with a lot of
suppliers. A restaurant has to deal with vegetable vendors, a company has to
deal with raw material supplies and the manufacturers have to deal with
transporters and distributors.
Any industry with low bargaining power of suppliers, can be profitable. For
example – take spare parts, there is no bargaining power with the supplier. If he
does not give spare parts, there are 100 others who will give the customer spare
parts. Thus, an industry which does not have bargaining power with suppliers
can be tension free from that end. On the other hand, if supply is limited, then
the company has the threat of the supply running dry, ruining the company’s
business. Here are various points which offer a threat due to bargaining power
of suppliers.
Determinants of Supplier Power
 Switching costof suppliers for firms in the industry: Suppliers are not
limited and hence have the power of changing their client.
 Presence of substitute: Substitute products which use similar product
further empowers the suppliers.
 Importance of volume to suppliers: The volume of order is again a
determinant of supplier power.
(5) Competitive Rivalry among Existing Firms
Now comes the final point which is the base of the Porter’s 5 force analysis
model – The intensity of rivalry between competitors who are already existing
in the industry. If the rivalry is too intense, and if there are bad fishes in the
market, it is natural that the firm’s profitability will drop. Such industries will
have high barriers of entry and hence establishing in such industries will be
difficult.
At the same time, if the rivalry is healthy and there are far fewer competitors,
then there is a good possibility that margins will be fair enough and you can

38. 30 | P a g e
establish yourself securely in the industry before the killer competition starts.
However, we have to remember that rivalry may not be because there are a lot
of competitors.
Rivalry Determinants:
 Industry Growth: The industry is in a very good place with lot of growth
to look forward too but this also means more fierce rivalry.
 Fixed Cost/Value added cost:Costif reduced more than competitors
ensures competitive advantage.
 ProductDifferences: A productlike umbrella does not really offer much
difference but if achieved it’ll give this industry an edge.
 Brand Identity: Different productwill ensure brand identity which is what
Choudhary umbrella is now looking at achieving,
 Switching Costs:Just like all above determinants, switching costalso
affects the company or its competitors, given the nature of this productits
hard to ensure loyalty.

39. 31 | P a g e
CHAPTER 2
COMPANY PROFILE

40. 32 | P a g e
2.1 Background:
Choudhary Umbrella Pvt. Ltd. is an Indian Manufacturer established in 1972
at Falna (a consumer goods manufacturer) making Umbrellas, Parasols,
Garden Umbrellas, WoodenFrames and Umbrella Frames. An efficiently
managed workforce, who bring years of industrial experience and exposure
and with their assistance, they are able to manufacture quality products,
which are according to the requirements of the customers. Their principle
business goal is to excel in the quality standard which has assisted them to
manufacture, export and supply of premium quality umbrellas and umbrella
frames as per the needs of their clients. This approachhas helped them in
acquiring a wide client base.
Infrastructure:
They have well equipped infrastructural facilities with the latest technological
machinery and processed equipment’s assist them in manufacturing of
umbrellas and frames with in the affordable price range. Their main
manufacturing unit is spread over 15000 sq. ft area with all type of required
facilities.
Quality Control:
They maintain the quality standards of their end products accordingto the
global standard by following an integrated mechanism of quality control. This
mechanism assists this in getting highly durable, effective umbrellas and
frames within a competitive price range. The production process goes through
quality controlat every level.
I.e. from the selection of raw materials till to the final shipment of the end
products.
Their stern quality controlprocess enables them to develop quality features in
their end products to provide the best solutions to their clients. Further prior
to the final delivery of the end products their quality standard is checked once
again according to the standard norms and parameters.

41. 33 | P a g e
Company Profile:
Nature of Business – Manufacturer
Additional Business –Supplier
Key Customers –A-1 Sales, Dilwada
Amul J P, Dilwada
Vailchand Kalyanlal, Udaipur
Industry – Manufacturing Industry
Sub- Category- Small and Medium Size Enterprise
Products-Consumer Durable Goods
Registered Address – College Road, Near Petrol Pump, Falna, Pali-Rajasthan
Falna- 306116
Year of Establishment – 1972
Legal Status of Firm – Sole Proprietorship
Proprietor Name - Mr. Arun Kumar Choudhary
Annual Turnover – 2.5 crore approx.
Infrastructure: 15,000 sq. ft.
Location Type – Urban
Building Infrastructure – Permanent
Size of Premises – 15,000 square feet
Company USP:
Primary Competitive Advantage - Large Production Capacity, TQM,
Experienced R & D Department, Good Financial Position and Unique Product
Line
Quality Measures/Testing Facilities – Yes

42. 34 | P a g e
2.2 Vision and Mission of the Company:
They follow the primary goal of excelling at the standard of quality in the
domestic market and aim to enhance their business by delivering that
consistently through hard work. They plan to tap into the global market and
slowly set a global standard.
Objectives and Goals:
1. Improve Quality: Improving quality is a key manufacturing objective.
Company wants to producequality products that meet or exceed
customers’ expectations and minimize waste. Quality products can help
to improve customer satisfaction, increase sales and improve customer
retention.
2. Reduce Costs:Company sets cost-reduction objectives to ensure they
can offer competitive prices and make a profit. Manufacturing teams can
cut costs by reducing inventory, sourcing from lower-cost suppliers,
increasing productivity, automating processesand implementing quality
processes that minimize waste and reworking.
3. Increase Flexibility: By setting increased flexibility as a manufacturing
objective, company meets a wider range of market requirements and
improve competitive advantage.
4. Improve Supply Chain Efficiency: Improving the efficiency of the
supply chain can help company achieve their cost, quality and flexibility
objectives.
5. Increase Sustainability: Factors such as scarcity of raw materials,
customer demands and regulatory requirements make sustainability an
important manufacturing objective. Company can improve green
production through strategies suchas getting supplies from sustainable
sources, making use of recycled materials, reducing the environmental
impact of their logistics operations and investing in manufacturing
facilities that minimize energy usage.

43. 35 | P a g e
2.3 SWOT ANALYSIS
Strengths-
 Larger Production Capacity: Producing larger quantities ensure reduced
costper unit which can then be sold for higher profits
 Quality Measures through TQM: Ensuring quality in this industry is vital
given the leaders are delivering inferior quality goods.
 Durable Products:Chaudhary umbrella with immense research and
experience have been able to deliver umbrellas that are sturdy and strong
making it much more durable then Chinese make.
 Competitive Pricing: Price is at par with Chinese makers but quality is far
superior to theirs.
 Years of Experience in R&D Department: Appointment of international
research team with years of global experience and scientific knowledge.
 Unique Products:R&D has helped them producenewer variety which is
right now limited to their promotional range but only growing.
Weaknesses-
 Seasonal Demand: This productis limited in terms of demand which is
seasonal i.e. Monsoon and Summer
 Cheaper Substitutes (with inferior Quality): Chinese makes of inferior
quality and other indirect substitute are one of its biggest weaknesses.
 Changing World Climatic condition: Global warming and population
shifts directly affect the need for this productand hence the industry.
Opportunities-
 Diversification: Branching out is the next step for Choudhary umbrella
given the make in India boost. Increase in productline to eliminate
substitute threat.

44. 36 | P a g e
 Global Market: With the supportfrom government Choudhary umbrella
and other such industries can target global markets and no longer fear
Chinese makers.
 New target regions due to change in weather: Change in weather has
opened newer markets e.g. the middle eastern desserts and north African
dessert nations who have started experiencing rains only recently.
 Producing more unique and innovative products using complementary
assets.
Threats-
 Entrance of new manufacturers: Make in India also increases threats of
new entrants backed by government policies.
 Failure of the machinery at certain times: This process mainly remained
hand assembled but just like Chinese new machines are being
experimented with which is risky at this point.
 Losing the workforce: With the continuous empowerment of people in
the nation, improved lifestyle and pay scales there is high risk of losing is
workforce.

45. 37 | P a g e
2.4 Products:
1. Folding Umbrella ( 1, 2, 3, 4 & 5 fold)
2. Classic Umbrella
3. Automatic Umbrellas
4. PocketUmbrellas
5. Personal Parasol Umbrellas
6. Stationary Parasols
7. Golf Umbrella
Markets:
Choudhary Umbrella has been a domestic player mainly selling their umbrellas
in North Western part of India i.e. the states of Rajasthan, Punjab, Maharashtra
and parts of Chandigarh.
Global market is dominated by cheap Chinese products with inferior quality
which has been though for the company to get into.

46. 38 | P a g e
2.5 BALANCED SCORE CARD:
MEANING:
The balanced scorecard is a strategic planning and management system that is
used extensively in business and industry, government, and non-profit
organizations worldwide to align business activities to the vision and strategy of
the organization, improve internal and external communications, and monitor
organization performance against strategic goals. It was originated by Drs.
Robert Kaplan (Harvard Business School) and David Norton as a performance
measurement framework that added strategic non-financial performance
measures to traditional financial metrics to give managers and executives a
more 'balanced' view of organizational performance.
PURPOSE OF BSC:
• To grow your business, increase your market shares, improve your
business processes, and have fanatically loyal customers
• To have a clear picture of what your business is really doing and why
• To effectively manage your business and beat off the competition
• To establish a system for measuring your business performance and to
allow you to make the right decisions, on time, every time
• To enable your people to do the right things right, the first time.

47. 39 | P a g e
THE COMPONENTS OF BALANCED SCORE CARD ARE:
1. FINANCIAL:
Objective: Objectives of the finance is appropriate utilization of resources,
reduction of liabilities and losses, effective budgetary control and forecasting
Measurable: The measurable are for the set objectives and the financials which
are measured through accounting techniques.
Targets: Financial targets are fixed based on budgeting which take place once in
a year or with monthly or quarter yearly small budgets.
Initiatives: So as to accomplish the financial objectives the firm has taken
initiatives to reduce overheads or no overtime which can further reduce the
extra consumption of working capital.
2. CUSTOMERS:
Objective: The major concentration of the firm is on the customers, firm comes
with different ways in maximizing the satisfaction level of its customers each
time.
Measurable: This can be measured through the percentage of increase in the
customers year after year. This information can be collected through customer
feedback or survey.
Targets: The target of any firm is perpetual existence through continuous happy
customers.
Initiatives: Better quality goods at a price for which the customers find value.
3. INTERNAL BUSINESSES:
Objective: Better internal working of a business gives a better outcome.
Measurable: This can be measured looking at the overall performance by
comparing the performance of previous year.
Targets: Achieve objectives of the organization within a given time frame.
Initiatives: The initiatives such as better department and individual coordination
programs.

48. 40 | P a g e
4. LEARNING GROWTH:
Objective: Satisfy customer’s needs, Improve business processes, and Achieve
financial goals.
Measurable: This can be measured through the percentage of increase in the
customers year after year. This information can be collected through customer
feedback
Targets: The target of any firm is perpetual existence through continuous happy
customers
Initiatives: Better quality goods at a price for which the customers find value.
THE BALANCED SCORE CARD APPROACH:
These 4 critical dimensions of the balanced score card are achieved if it is able
to achieve the objectives with measurable, targets & initiatives.
Perspective Objective Measure Target Actions
Financial Utilization of resources,
reduction of liabilities
and losses, effective
budgetary control and
forecasting
Headcount,
Utilization
Annual Target
Based on the
Budget
Reduce
overheads
No overtime
Customer Improve Satisfaction
Levels of Customers
Consistently,
Be The Brand Of
Choice
Customer
Budget,
Total
Revenue
Annual Targets
Set by the
company
Quality
Goods,
Reasonably
Priced
Internal
Process
Have network for
proper communication,
Create and Maintain
that Network
Performance,
Time
Annual Targets
set by the
company
Better
Departments
and
Communicati
on

49. 41 | P a g e
Learning &
Growth
Satisfy customer’s
needs, Improve
business processes, and
Achieve financial goals.
Increase in
Percentage
of customers
each year
To survive in the
market by
delivering what
customers need.
Better
Quality
Goods
Fairly priced

50. 42 | P a g e
CHAPTER – III
The Organization Structure

51. 43 | P a g e
CHAPTER – III
The Organization Structure
3.1 The Organization Structure – Theoretical Perspective:
The following are important types of organization structures:
A) Bureaucratic Structures:
Bureaucratic structures maintain strict hierarchies when it comes to
people management. There are three types of bureaucratic structures:
1) Pre-bureaucratic structures:
This type of organizations lacks the standards. Usually this type of
structure can be observed in small scale, start-up companies. Usually the
structure is centralized and there is only one key decision maker. The
communication is done in one-on-one conversations. This type of
structures is quite helpful for small organizations due to the fact that the
founder has the full control over all the decisions and operations.
2) Bureaucratic structures:
These structures have a certain degree of standardization. When the
organizations grow complex and large, bureaucratic structures are
required for management. These structures are quite suitable for tall
organizations.
3) Post-bureaucratic Structures:
The organizations that follow post-bureaucratic structures still
inherit the strict hierarchies, but open to more modern ideas and

52. 44 | P a g e
methodologies. They follow techniques such as total quality management
(TQM), culture management, etc.
B) Functional Structure:
The organization is divided into segments based on the functions
when managing. This allows the organization to enhance the efficiencies
of these functional groups. As an example, take a software company.
Software engineers will only staff the entire software development
department. This way, management of this functional group becomes
easy and effective. Functional structures appear to be successful in large
organization that produces high volumes of products at low costs. The
low cost can be achieved by such companies due to the efficiencies
within functional groups. In addition to such advantages, there can be
disadvantage from an organizational perspective if the communication
between the functional groups is not effective. In this case, organization
may find it difficult to achieve some organizational objectives at the end.
C) Divisional Structure:
These types of organizations divide the functional areas of the
organization to divisions. Each division is equipped with its own
resources in order to function independently. There can be many bases to
define divisions. Divisions can be defined based on the geographical
basis, products/services basis, or any other measurement. As an example,

53. 45 | P a g e
take a company such as General Electrics. It can have microwave
division, turbine division, etc., and these divisions have their own
marketing teams, finance teams, etc. In that sense, each division can be
considered as a micro-company with the main organization.
D) Matrix Structure
When it comes to matrix structure, the organization places the
employees based on the function and the product. The matrix structure
gives the best of the both worlds of functional and divisional structures.
This type of an organization, the company uses teams to complete tasks.
The teams are formed based on the functions they belong to (ex: software
engineers) and product they are involved in (ex: Project A).This way,
there are many teams in this organization such as software engineers of
project A, software engineers of project B, QA engineers of project A,
etc.

54. 46 | P a g e
3.2 The Organization Structure of the Firm:
3.3 Review of the existing organization structure:
In the organization it follows functional structure. It is not easy to
communicate in such a structure. But there is better overall control. Each
department has different functions to be carried out independently which
has a departmental authority in the form of Department Managers. The
authority is the main person in such a structure. Authority is the only
person to take decisions for the departments. The department heads then
report to the Managing Director directly. This is the review and structure
followed in the firm.
ManagingDirector
Manager
Administration and
Human Resources
Asst. Admin and HR
Manager Production
Asst. Production
Manager
QC Chief
Line Heads
Production Team
Manager
R&D
R&D Team
Manager
Finance

55. 47 | P a g e
CHAPTER – IV
Business Level Functions

56. 48 | P a g e
CHAPTER – IV
Business Level Functions
4.1 Administration and Human Resources Function:
The company has an administration come human resources department
consisting a manager and an assistant which is responsible for the utility needs
and administrative needs of the company. Their HR functions requires them to
form company policies, carry out recruitment & selection and determine the pay
structure, handling grievances and smaller HR functions as well. The company
currently employees 110 employees but due to its nature most of the work force
are the laborers with only 15 employees in the management.
4.2 Production Function:
Production is the critical function of this manufacturer and hence makes up for
the largest chunk the organization with maximum work taking place in this
function and maximum people working for this department.
The production department is controlled and managed by the Production
Manager who directly reports to the boss. His functions are mainly management
function and decision making.
The Manager has an assistant under him who is the man on the floor,
management’s eye who along with supervising and controlling functions is
often found helping and motivating the laborers.
Quality Chief though in the hierarchy seems below production and asst.
production managers doesn’t really report to them. This position is created to
ensure company’s goal of delivering superior quality. He takes care of all the
safety and quality tests determines the standards and shares and open door
policy with the Managing Director.

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The Production function is carried out in a line and each line has a line head.
Choudhary Umbrella has 4 lines working at a time with each line being handled
and supervised by a line head.
Last in the hierarchy are the laborers who each has a specific manufacturing
function to carry out in assembling the umbrella.
Few workers also work as cleaners, loaders and keepers.
4.3 Research & Development Function:
Just like every other person, firm, organization and nation to day feels India can
match China and may be exceed it in future. This department was created with
the soul goal of doing that. Global Umbrella market is dominated by lower
quality Chinese makes. Mr Arun Choudhary wishes to change this and has been
smart enough to start an R&D team which has been of great help. They work
toward reducing costs, developing designs adding variety, etc. They have
already proven their worth by getting the company into the promotional
umbrella market by providing unique designs that they claim can fit any logo
elegantly. A small 3 member team with a manager but a hard working unit.
4.4 Finance / Accounting Function:
The firm has the finance department , the main objective of the department is
book keeping, taking care of accounts, expenditures, Profit and loss , Trial
balance, Taxes, managing the in and out flow of cash in the firm, etc.

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CHAPTER – 5
Observations, Conclusion and Recommendations

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CHAPTER – 5
Observations, Conclusion and Recommendations
5.1 Key Observations:
The key observations during the organizational study in the firm are as
follows:
 The way the raw materials are purchased by the firm
 Cleaning process used to clean the material
 Quality testing of the materials purchased
 Process of sorting the material and storing them
 Process of manufacturing umbrellas both in parts and then the final
assembly
 Packaging of the product
 Sales and distribution of the product
 Day to Day communication between workers in the line and executives in
the office
 Office space and factory space utilization
 Resource Utilization
 Quality Checks
5.2 Learning Outcomes for the study done on the organization
1. Correctly identify human interactions in organizations and workplaces
according to firm's perspectives.
2. Integrative concepts and perspectives from employees in different parts and
analytically observe the work done.

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3. Distinctive elements of organizational culture, social influence, interpersonal
communication, and organizational change as applied to work settings.
4. Learn work culture and ethics.
5. Accurately select and apply qualitative and quantitative findings to case
studies in future, and demonstrate basic knowledge of organization behavior.
5.3 Conclusion:
The conclusion of this organizational study is to understand the industry and
firm completely. To understand the organizational behaviour and how an
organization works. To fulfil the outcomes and to apply the learning theories of
subject in the real industry. And to learn how in reality does the industry works.
To understand the strategies and tactics implied by the firms to gain the competitive
advantage over other firms of same industry.
This report will be helpful for further reference for all those who are interested in knowing
more about the Manufacturing (SMSE) industry and one who wants to know more about
Choudhary Umbrella. This report will be really helpful for all those who wants to research in
the tours and manufacturing industry.

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BIBLIOGRAPHY
Text books and reference books:
HARALD KOONTZ, Hainz Weihrich, Essentials of management, 2011, Tmh,
New Delhi, 8e.
HARALD KOONTZ, Hainz Weihrich, Ramachandra Aryasri, pricipals of
management,2009,Tmh,new delhi,11e.
1 more book ( ref Donald s tul and deil eye Hawkins 1997 marketing research,PHI,
new delhi, 4th edition
Website:
www.google.com
www.vault.com
www.marketing91.com
www.mckinsey.com