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1. Organisation Study Report on Star PVC pipes & fittings Internship 2011 CONTENTS
CHAPTER CONTENTS PAGE NO EXECUTIVE SUMMARY 2 Chapter I
INTRODUCTION 3 1.1 Industry Profile 4 1.2 Company Profile 5 Chapter II
STRUCTURE OF THE ORGANISATION 11 2.1 Organizational Structure 12 2.2
Organizational Chart 12 2.3 Organizational Outlook 13 2.4 Duties and Responsibilities of
Dept. Heads 13 Chapter III FUNCTIONAL DEPARTMENTS 16 3.1 Finance
Department 17 3.2 Accounts Department 18 3.3 Marketing Department 18 3.4 Human
Resource Department 26 3.5 Production Department 27 3.6 Purchase Department 29 3.7
Systems Department 31 Chapter IV PORTERS FIVE FORCES MODEL 32 Chapter V
SWOT ANALYSIS 40 Chapter VI FINDINGS AND SUGGESTIONS 43 Chapter VII
CONCLUSION 45 Chapter VIII BIBILIOGRAPHY 47 Ramaiah Institute of
Management Studies1SBS Swiss Business School
2. Organisation Study Report on Star PVC pipes & fittings Internship 2011 EXECUTIVE
SUMMARY The organizational study was conducted at STAR Plastics, Thrissur, Kerala.
Theobjective of the study is To study the organizational structure. To study about the
structure and functioning of various departments. To study how the management
control various departments for the attainment of the organizational objectives. The
organization is into PVC pipes and fittings manufacturing. PVC is anorganochlorine,
which was first patterned in 1913 by Fritz Klatte. However, its developmentfor hindered
by pure PVC‟s chemical instability and its low workability. During the 1930‟s,German
experiments with various stabilizers and softeners lead to the first useable forms ofPVC.
By the early 1950‟s PVC was second only to polythene, as the most important
syntheticproduct in Germany. It is now the single largest use for chlorine today, using
about 1/3 of allglobal production. About 40 million tons of chlorine is produced by the
chemical industryevery year. PVC development was part of the huge expansion of the
chlorine industry afterthe Second World War. PVC, Dichloro Diphenyl Trichloroethane
(DDT) and ChloroFluoroCarbons (CFC‟s) are all products of post war boom in the
chlorine industry. Currentlythere are over 11,000 oregano chlorines now in commercial
use. Organo chlorines are usefulto industry because they tend to be very stable and the
resist natural breakdown process. Star Plastics have seven functional departments and it‟s
the leader in PVC pipes &Fittings in south India. Star Plastics is the first PVC pipe
fittings manufacturer in south Indiato receive ISO 9002 certification. While globalization
and economic slowdown in the worldmarkets threw up new challenges the STAR group
is busy chalking out plans to translatethese challenges in to opportunity. The company is
going to make a centralization system ofthe software network that the progress of work at
any levels, at any units, at any centers canbe viewed from the corporate office itself. Each
and every aspect of the business can bechecked from the corporate office.At present
company is able to later about 10% of themarket requirements. In order to later the
complete needs the company is planning to increasethe production level to maximum
extent possible. The company is planning to increase thepresent product level of Dubai
units. The research and development team of STAR group isengrossed in developing new
product for the international markets. Ramaiah Institute of Management Studies2SBS
Swiss Business School
3. Organisation Study Report on Star PVC pipes & fittings Internship 2011 CHAPTER
IINTRODUCTIO N Ramaiah Institute of Management Studies3SBS Swiss Business
School

4. Organisation Study Report on Star PVC pipes & fittings Internship 20111.1Industry
Profile Plastics, in the modern meaning of the word, are synthetic materials that
arecapable of being formed into usable products by heating, milling, molding andsimilar
processes. The term is derived from the Greek plastic, to form in simplestterms; plastics
can be described as resins in their molded form. The wonders of plastics cut across all
sectors of society. It is a material ofchoice due to its versatility, its physical strength, its
economic viability; its easyprocess ability and also its attractiveness and durability of all
weather condit ions.With the globalization of Indian economy and television entering into
homes andtiniest villages and communications demand for the materials for suitable
functionaluse more economic packing, durable all weather products has meant
increasingdemand for plastics. Packing of cement bags, the end user is demanding
plastics instead ofconventional jute, because it prevent transits loses and wastages. The
hilly regionsof East India or drought prone districts of Rajasthan, Gujarat, and Tamil
Nadudemand auto molded tanks in thousands each day. The agriculturists of
HimachalPradesh insist on plastic pipes for irrigation to their farms, the floriculturists
ofKarnataka and Maharashtra cannot thrive without ultraviolet stabilized polythenewide
width films for huge tunnels and green polymers consumption and import. The Plastic
industry in India has made significant achievements ever since itmade a modest but
promising start by commencing production of polystyrene in1957. The potential market
has motivated Indian entrepreneurs to acquire technicalexpertise. Achieve high quality
standards and build capacities in various facts of thebooming plastic industry.
Phenomenal development in the plastic machinery sectorcoupled with matching
development in petrochemical sectors, both of which Ramaiah Institute of Management
Studies4SBS Swiss Business School
5. Organisation Study Report on Star PVC pipes & fittings Internship 2011supports the
plastic processing sectors, have facilitated the plastic processors tobuild capacities to
service both the domestic market and overseas.The chronology of manufacture of
polymers in India is summarized as under. 1957 : poly styrene 1959 : LDPE 1961 : PVC
1968 : HDPE 1978 : polypropylene The economic reforms launched in India since 1991,
joint ventures, foreigninvestments, easier across to technology from developed countries
etc. have openedup new vistas to further Indian plastic industry are exported to over 150
countriesround the globe with major trading partners being USA,UAE,
Italy,UK,Russia,Honkong, Germany etc. The plastic processing sector comprises of over
30000 unitsinvolved in producing a variety of items through injections molding, blow
molding,extrusion and calendaring. The capacities built in most of this industry coupled
withinherent capabilities have made us capable of servicing the overseas markets.
Thedevelopment of plastics took place in 1920‟s with the introduction of
celluloseacetate, polyvinylchloride and nylon. Polyethylene evolved out of the need for a
superior insulating material couldbe used for such applications as radar during World
War II. The decade of the1950‟s saw the introduction of poly propylene and the
development of acetyl andpolycarbonate. In 1960‟s and 1970‟s a sub group of plastic
family started to emerge,called high temperature plastics, which includes polyamides,
aromatic polyesters,polyether siphoned etc.1.2Company Profilea) Background of the
company: The history of STAR is the history of pipe fittings production in south India.In
1983, Vikas plastics and Star plastics amalgamated to form Star plastics, Ramaiah
Institute of Management Studies5SBS Swiss Business School

6. Organisation Study Report on Star PVC pipes & fittings Internship 2011Mullurkara
that is 20kms away from Thrissur town, the cultural capital of Kerala. In1988, star
became the number one PVC pipe fitting manufacture in south India it hasreceived the
best ISI mark for quality. In 1994 star began the production andmarketing of flexible
hoses under the brand name STAR FLEX. In 1998 takingadvantage of the wings of
globalization star started star impex and forayed into theglobal market. Growth being as
the key strategy the visionary Mr.P.K.Paul nurturedstar plastics into a corporate level.
After the demise of Mr. P K Paul his eldest sonMr. Bobby Paul took the charge of the
chariot. His brother Mr. Anto Paul alsoassists in the day to day activities of the company
.Presently the group consists ofvarious companies like Star Plastics, Star Flex, Shine Star,
Star Exporters& FinePolymers, A new group venture of star group of companies for the
purpose ofexporters In the year 2000, to take on the challenge of globalization, star set up
a coreteam and applied core ISO certification. In August 2001, star became the first
PVCfittings manufactures in south India to receive the IS O 9002 certification. Starplastic
is the market leader in Kerala, Tamilnadu & the market challenger in AndhraPradesh and
Karnataka. The company has made its presence significantly in MiddleEast market
having a branch office at Dubai. It is a multi -core, multi-ProductCompany which has
been deeply involved in the manufacture, distribution, sale, andinstallation and servicing
to bring the customer satisfaction and socialresponsibilities. In the last one decade
unparalleled growth was witnessed in star gr oup ofcompanies to emerge as a leader in
the PVC fitting and to diversify into themanufacture of suction hoses, drainage fittings
and PVC pipes. Star plastics are agroup of companies with a turnover of 30 crores per
annum and with manpowerstrength of 450 employees including 50 high caliber
professionals. It has a32%growth due to the young and dynamic MD‟s expansions and
growth plans. Thecompany increased its production capacity over 50% in just two years
incurring hugeadditional investments. Presently it is enjoying the benefits. At the end of
currenthalf year a growth rate of 35% when compared with the last year is witnessed. The
company‟s operations include manufacturing of PVC fittings and alliedproducts in
clearly defined core business areas at home and overseas. The star groupof companies is
the single largest plastic industry in private sector over the years, Ramaiah Institute of
7. Organisation Study Report on Star PVC pipes & fittings Internship 2011star group has
steadily developed in to a professionally managed companycomprising of 8
manufacturing unit in 3 production centers wit h a total installedcapacity of 3850 meter
per annum- 8divisions and effective centralize supportservices wholly dedicated to the
most existing standards of quality and customerservices, constantly motivated by the
need to ensure total product satisfacti on.b) Star group of companies:Star Plastics: - star
plastics, the parent company of the group was incorporated in1983, and within these
21yrs it has grown up as one of the largest pace fittingsmanufacturing companies in India
and its products are approved by these authorities.Shine Star: -shine star is another unit of
star plastic, which is manufacturing pipefitting. This has been started as another
manufacturing fitting unit.Star Flex: - star flex is totally a new venture, manufacturing
flexible s olution anddelivery hoses ranging from ¾ to 4 sizes. As on today the above
companies aremaking a combined sales turn over approximately worth of 30 crores per
year.Star Polymers: -It is the unit of star plastics. It is manufacturing pipe fittings.Star
Plus: - star plus is another unit of star plastics. It is also manufacturing pipefittings. The

different units had been given different names in terms of marketing.c) Nature of
business carried:STAR – This word is the combination of basic concepts and
fundamentals believedby its founder and carried over across the years, it has sailed
hitherto and for thefuture such as S - Service T- Transparency A - Accountability R -
Reliabilityd) Star which means: Ramaiah Institute of Management Studies7SBS Swiss
Business School
8. Organisation Study Report on Star PVC pipes & fittings Internship 2011 Provider of
basic requirement of all PVC related fittings, pipes, and allied products. Unstinted and
continued supply and service since last 2 decades. Believer and Promoter of quality
products than giving simple propaganda. The First PVC pipe fittings manufacturer in
south India who is operational and reaching newer heights year after year. The First PVC
pipe fittings manufacturer in south India to have received ISI mark. The First PVC
pipe fittings manufacturer in south India to have received ISO mark. An entity who gave
to its customer‟s qualitative products & value added services. To have received the
best appreciation from its people.e) Vision, Mission and Quality Policy:“Our vision is to
maintain the hegemony as the most reliable provider of high quality PVCproducts to
meet the diverse requirements of potable water distribution, domestic plumbing,bore
wells and lift irrigation purposes. We aim to make each of our products a paragon
ofquality and technical excellence. Through our constant Endeavour‟s of research
andinnovation we strive to come up with new products that help architects and builders
keepahead of the times”Mission: - serve water projects, construction activities and
agriculture on global level toensure customer satisfaction.Quality policy: To manufacture
and market goods, which comply with the consumers requirements. To achieve customer
satisfaction is the basic philosophy of the organization. In the last one decade,
unparalleled growth was witnessed in STAR group of companiesto emerge as a leader in
the PVC fittings and to diversify in to the manufacture of suction,drainage fittings and
PVC pipe. STAR PLASTICS is a group of companies with a turnover of75 cores per
annum and with a manpower strength of 450 employees including 50 highcaliber
professionals. Ramaiah Institute of Management Studies8SBS Swiss Business School
9. Organisation Study Report on Star PVC pipes & fittings Internship 2011f)
Product/Service profile: Star plastic product constitutes plumbing equipment materials
such as PVC pipes,fittings, S.W.R fittings and PVC adhesive. Star fitting is leading
names fittings over all thestates. STAR PVC pipe fittings are manufactured from the
finest grade PVC resin trusted andacclaimed all over the-country for quality. Due to high
tensile strength and reliability used inindustry, homes etc. STAR fittings are available in
above 10 shapes and measures vary from 20mm to200mm. These are also available in 3
different colors. Injection modulated STAR PVC pipefittings confirm to ISI specification
and assure totally safe, non-toxic water for all purposes.g) STAR-Plastic-Products:The
company concentrates on the manufacturing of a wide range of PVC pipes and
fittingsand allied products. Their products are basically categorized as STAR Drainage
fittings BS 4514 STAR Pressure Fittings BS4344 STAR Pressure Fittings STAR SWR
Fittings STAR Flex section & Delivery Hose STAR Solvent cement STAR PVC
pipesh)Production centers: STAR plastics Mullakkara, Thrissur STAR plastics, the parent
company of the group was the incorporated in 1983, andwithin these 24 years it has
grown up as one of the largest PVC fittingsmanufacturingcompanies in India and its
products are approved by ISI authorities. Manufactures the PVCpipe fittings, drainage

fittings, SWR fittings, Pressure fittings, solvent cement. Lisna Inc. issituated in same
premise. Shine Star Minaloor, Thrissur Ramaiah Institute of Management Studies9SBS
10. Organisation Study Report on Star PVC pipes & fittings Internship 2011 STAR
manufactures the PVC pipe fittings, SWR fittings, Pressure fittings. Also manufactures
PVC granules mainly master batches. SILVERSTAR, NEW STAR, FINE POLYMERS,
LISNA TECH are situated in the same premise. Star Flex, Velappaya, ThrissurSTAR
Flex manufactures the PVC flexible hoses, suction and delivery hoses ranging from0.75
to 4 inch diameter. Star Pipes, Choolissery, Thrissur STAR pipes manufacture the rigid
PVC pipes for plumbing and electrical purpose.It‟s a semi-automatic manufacturing unit
which manufactures rigid PVC pipes ranging from20mm to 200mm. Star pvc pipe fitting
(p) ltd, sri perumbathur, chennai Manufactures the rigid PVC pipes for plumbing and
electrical purpose it‟s a semi-automatic manufacturing unit which manufactures rigid
PVC pipes ranging from 20 mm to200mm.This unit does the production for
TAMILNADU and KARNATAKA. Star Implex industries llc, Dubai, UAE
Manufactures the rigid PVC pipes for plumbing and electrical purpose it‟s a semi-
automatic manufacturing unit which manufactures rigid PVC pipes ranging from 20 mm
to200mm. also manufactures the PVC pipe fittings and solvent cement. This unit does
theproduction for the Middle East Asia, Africa and Europe. Each division is self-reliant
in itsactivities of research and development, Manufacturing and marketing, now moving
for totalautomation and integration. STAR group of company is structured in to business
unitscomprising synergistic group of responsibility centers, division backed up by an
extensivemarketing infrastructure and front line support services. Ramaiah Institute of
11. Organisation Study Report on Star PVC pipes & fittings Internship 2011
CHAPTERII STRUCTURE OF THE Ramaiah Institute of Management Studies11SBS
12. Organisation Study Report on Star PVC pipes & fittings Internship
2011ORGANISATIO N2.1 Organizational StructureThe STAR group follows absolute
dedicated approach. The organization of its manufacturingoperations is based on product
divisionalisation in to group of products in which are similarin technology or
manufacturing process. Each group is constituted by divisions or profitcenters. Each of
these group, are led by absolute manager. A central manager leads thecorporate function.
Some of these functions in turn are reported to the managing director.2.2 Organizational
Chart Ramaiah Institute of Management Studies12SBS Swiss Business School
13. Organisation Study Report on Star PVC pipes & fittings Internship 2011 DIRECTOR
MG- DIRECTOR GENERAL MANAGER HR FINANCE PURCHASE PRODUCTION
MARKETING ACCOUNTS SYSTEM ASST FIANCE PURCHASE PRODUCTION
MARKETING CHEIF MANAGER MANAGER MANAGER MANAGER MANAGER
ACCOUNTANT (SYSTEMS)2.3 Organizational OutlookManaging Director - BOBBY
PAULOther Directors - Anto Paul & Rosy PaulGeneral Manager - K.B. Suresh
KumarMarketing Manager - C.L.GeorgeFinance Manager - Biju ThomasAccounts
Manager - A.C. ChummarEstablished in - 1984Main production - PVC pipe fittings and
adhesives Ramaiah Institute of Management Studies13SBS Swiss Business School
14. Organisation Study Report on Star PVC pipes & fittings Internship 2011Raw
materials for production - Resin and other chemicalsProduction range - Wide range of

productsPresent production - Best in southern India with 85 percentOf total
productionNumber of machines - 202 machines with generation backupNumber of office
staff - 50Number of workers at factory - 400Trade discount - 50%Special discount
forPayment within one week - 5%2.4Duties and Responsibilities of Departmental Heads
1) Finance Manager He is responsible for financial matters in the organization. He
prepares financial plan. He assesses the financial needs of the organization and sources of
the finance. He should be an expert in the field of financial management. He should know
different tools used in the financial management ratio analysis, fund flow analysis, cash
flow analysis, Budgeting etc. All these are necessary to prepare a sound financial policy
for the organization. He is also responsible for financial planning, raising necessary fund,
controlling the use of funds, appropriation of profits etc. Other functions include financial
forecasting and planning, procurement of funds, investment decision, management of
income, management of cash, deciding upon borrowing policy, negotiations for new
financing, analysis and appraisal of financial performance, advising the top management,
co-coordinating and control, helping in valuation decisions, and tax administration. 2)
Accounts Manager He is responsible for keeping the details of day book, ledger and P.F
registers. Moreover, he should record and maintain all the details of the sales tax
calculation and related documents and produce them on demand. Ramaiah Institute of
15. Organisation Study Report on Star PVC pipes & fittings Internship 2011 3)
Marketing Manager He is charge of the marketing department of the organization. The
marketing department aims to increase the turnover of the organization, market share, and
profitability of the organization. The marketing manager should be tactful. He should
know marketing concepts product mix, promotion mix, price mix, distribution mix etc.
He should be known the strength and weakness of the firm‟s products. He is also able to
design and implement market strategies to enhance turn over and capture new markets. 4)
Human Resource Manager A human resource manager occupies a very important
position in an organization. The duty of the human resource manager is to recruit and
develop Personnel required by the organization. They are involved in manpower
planning, training, maintenance, compensation etc. The other responsibilities of the
human resource manager are formulation and development of personnel policies,
employees training and development, transfer, promotion, etc., maintaining personnel
records of each employee in the organization, establishment of good relation with
employees, effective communication of the personnel policies and programmers of the
management to employees, responsible for advising line manager, responsible for welfare
activities and responsible for solving the problem of employees. 5) Production Manager
He is responsible for the production of goods services in the organization. He looks after
the purchasing function and manages the production design and process. He is called in
different names such as production engineer, plant engineer, operation engineer etc. They
are responsible for plant layout, inventory management, production control and quality
control. 6) Purchase Manager Duties and responsibilities of the purchase manager are:
Prepare purchase budget. Receive purchase requisition, and ascertain the material
requirements. Ascertain the sources of supply. Invite tenders from the approved
suppliers. Select the supplier offering the best terms and conditions. Issue purchase
order to the supplier selected. Ramaiah Institute of Management Studies15SBS Swiss
Business School

16. Organisation Study Report on Star PVC pipes & fittings Internship 2011 Follow-up
the purchase order to avoid any delay in delivery. Receive goods received note and
the inspection report. Return the material which are not according to specifications or
secure adjustment with the supplier. Verify the invoice with regard to quality, price and
other relevant particulars and pass it for payments. Send the invoice to the accounting
section. Ramaiah Institute of Management Studies16SBS Swiss Business School
CHAPTERIII FUNCTIONALDEPARTMENTS3.1 Finance Department Ramaiah
18. Organisation Study Report on Star PVC pipes & fittings Internship 2011 Finance
department manages the fund available for the operations of the business, by making a
balance between the fund inflow and fund outflow. The management of all activities
related to finance requires considerable expertise and specialized knowledge of banks,
financial institutions, the different sources of finance and ways to profitability utilize
these funds. Finance Manager directly does the planning, organizing, directing and
controlling financial activities in the society.Organization Structure:- GENERAL
MANAGER FINANCE MANAGER FACTORY MANAGER BRANCH
MANAGERFinance department is headed by finance manager. Finance manager reports
to the GeneralManager and in certain strategy and urgent issues directly report to
managing director andtake decisions. Finance Manager works in the coordination with
chief accountant, productionmanager, marketing manager, branch managers.Sources of
Finance:-STAR Plastics find sources of finance through banks and other private financial
institutions.As it is a partnership firm, the partners contribute their funds to make capital
requirementsand other expenditure with the help of banks and financial institutions.
STAR Plastics dealsall finance requirements with South Indian bank, Kerala State
Financial Enterprises (KSFE)and State Bank of India. Vehicle loans are provided by
Cholamandalam finance.Company’s Financial Policies:- Low cost of operation of
funds. Efficient receivable management, through acceleration of funds. Faster
sourcing of funds from institutions.Functions of Finance Department:- Ramaiah Institute
of Management Studies18SBS Swiss Business School
19. Organisation Study Report on Star PVC pipes & fittings Internship 2011Finance
function is concerned with all aspects of business operations. It is very difficult to
setlimits to the finance function. The key activities under finance department are:
Management of firm‟s assets structure. Financial analysis, planning and control.
Management of firm‟s financial structure. Estimating capital requirement.
Determining sources of fund. Utilization of fund. Disposal of surplus.
Management of cash. Financial controls.3.2 Accounts DepartmentAccounts
department deals with day to day book keeping, daily collections, salaries of
allemployees, etc. Accounts department is headed by chief accountant. He is assisted by
fourassistant accountants. In each production centers and marketing branches have an
accountantand cashier which does the daily function at the places Chief accountant works
in coordination with finance manager, on the fund flow issuesand in case of any shortage
of cash occurs. Finance manager canalized the shortage fromfinancial institutions in case
of emergency and normal cases, chief accountant tightness thepayment collections from
the whole sellers and other sources. Other main function of accounts department is tax
payments. They deal with thecentral sales tax, K VAT, excise and other department.

Monthly returns are prepared by theaccounts department.3.3 Marketing
DepartmentMarketing department is entrusted with the function of planning and
executing theconception, pricing, promotion and distribution of ideas goods services, to
create exchangesthat satisfy individual and organizational boards. In simple terms the
marketing function iscatered around the customer and his needs.Organization Structure:
Ramaiah Institute of Management Studies19SBS Swiss Business School
MARKETING MANAGER BRANCH MANAGER SALES EXECUTIVE
REPRESENTATIVESMarketing Policy:STAR Lights to reduce the number of
intermediaries, so they have no distributors. Billing isdirectly done to the wholesalers and
retailers. In case of other state sales, it‟s a one throughthe branch offices. No direct
export to any customers. STAR is operating by exporting to thebranch office at Dubai,
STAR IMPEX INDUSTRIES L.L.C. and billing directly to thecustomers. In the case of
logistics the supply of products is done through company ownedfeet of vehicles. Same
policy followed with inter-state also.Functions of Marketing Department in Star Plastics:
The major functions are explained below: 1. Demand Forecasting 2. Marketing Research
3. Marketing Control1.Demand ForecastingDemand forecasting is the main function of
marketing in STAR plastics .It should be donethrough sales force in the company such as
sales representatives‟ sales executives‟ etc.collecting information from customers. On
the basis of this information demand forecastingis to be done.2. Marketing Research
21. Organisation Study Report on Star PVC pipes & fittings Internship 2011Marketing
research is more comprehensive composing all the functions of a marketingmanager that
is it covers product, price, sales, market, promotion, distribution policies. It iscommonly
says that marketing research begins where manufacturing ends. In fact itcommences well
before the product is fabricated. It goes in to operation even before erectingthe factory. It
covers analysis of competitive advantage, market share analysis and newproduct
development. The main objectives of market research are: To know buyers. To
measure the impact of promotional effort. To know consumer response. To know
market costs and profits. To master external forces. To design and implement
marketing control.3. Marketing ControlVarious tools used for marketing control are
cost control and a market share analysis. Costcontrol is one task for monitoring the cost
of marketing and it is compared with planned coststandard, so as to identify deviations
and take corrective action. Market share analysis is alsoused for marketing
control.Objectives of Marketing:The basic objectives of marketing are to satisfy human
wants. The important objectives ofmarketing are briefly explained below:1. Customer
Satisfaction through Quality Products Marketing activities aims at achieving customer
satisfaction by offering qualityproducts. It is also help more increasing profit, increasing
goodwill, increasing image of theorganization etc.2.After Sales Service This another
objective of marketing company provides after sales services to itscustomers. The service
of the company does not end with process of distribution the companyhas been waited
until good result comes by giving their products to consumer and theyalways rendered
their services at the time needed by the customers. The marketing and sales Ramaiah
22. Organisation Study Report on Star PVC pipes & fittings Internship 2011department
keeps their eyes and ears to open to know changes in the market. The complaintand

suggestions if any are well accepted by the company from their customers. There is
anycomplaint about the sold product the company will take it back at the company‟s
costs. Method Of After Sales Service: For providing after sales service company may
use thefollowing methods: Sending special staff to the customers. Arranging service
with dealers/agents. Appointing in depending service specialists.3. Maintaining Price
Leadership:Company‟s important objective is to maintain price leadership. Company is
always trying tobecome a price leader. It does not like become a price follower.4.
Achieving Maximum Market Share: Companies another objective is to achieving
maximum market share. In order toachieve maximum market share, company will spend
more on advertising and offeringquality products to the customers.5. Other Objectives:
Other objectives include: Increasing firms sales. To guarantee firms survival. To
fortify better resource utilization. To meet customer needs.Present market
condition:For their products STAR is facing demand higher than supply, which is a
healthy situation. Incase of seasonal products like suction and delivery hose, demand
exceeds supply. It tries tolater products to major customers. It is the main reason for
expansion of production facilities.Market Segmentation: Ramaiah Institute of
23. Organisation Study Report on Star PVC pipes & fittings Internship 2011 STAR is the
dominant player in the South India. Geographically the market issegmented into five
regions and branch officers are responsible for marketing activities intheir regions. 1.
Bangalore (Karnataka) 2. Chennai (TN) 3. Dubai (Middle East, Russia, South Africa etc.)
4. Nagari (AP) 5. Thrissur (Kerala)As per the consumers, market is segmented into three:
1. Government Works 2. Household Consumers 3. BuildersPresently highly concentrated
on the builders, as the construction industry is booming,appointed two sales executives
exclusively for this sector and have a considerable marketshare in the other two
segments.Promotion:In STAR PLASTICS promotion is done in the case of sale of
products, in the case ofdealers,and in the case of sale force.1. In the case of sale of
productsSales promotion includes short term incentives like‟s discounts, free gifts and
contests tostimulate sale of products. Sales promotion builds a bridge between the
products andconsumers. In the case of STAR, sales and brand promotion is done by
providing informationabout the products through advertisement, demonstrations,
organizational shows etc.2. In the case of dealers Company provides incentives to their
dealers and also provides dealers with discount atthe time of purchasing the product from
the company. The company also provides after saleservices to dealers. It is based on the
nature of product the company offers their dealers withreplacement facility after checking
the product. Ramaiah Institute of Management Studies23SBS Swiss Business School
24. Organisation Study Report on Star PVC pipes & fittings Internship 20113. In the case
of sales force: Company provides incentives to sales force. This includes the activities
whichinduce and motivate sales person. The aim of sales forces promotion is to make the
salesmen‟s effort most effective. The various schemes of sales promotion are: Bonus
to sales force. Sales force contest. Sales meetings, convention and
conferences.Advertisement:In the case of STAR advertisement is the most glamour
element of the promotion mix. Itcovers all the activities connected with the giving of
publicity regarding goods and servicesoffered for sale. Advertising is transmitting
through mass media such as television,newspapers, magazines etc.Advertising
Policy:„Each potential customer must see an advertisement’Brand awareness is not much

with the customers. Brand awareness to be created, it‟s ingrowth stage. Advertisement
focused on creating the brand image and promoting the STARbrand for their entire
product. Earlier advertisement (Hoarding) were exhibited at districtheadquarters and
important junctions. Presently, apart from above mentioned places, at areasof potential
customers, each retail and whole sale outlet etc.Mode of Advertisement:1. Earlier as wall
paintings, banners etc. now changed to huge flex hoardings. Reason for change is: a.
Attractiveness. b. New technology acceptance with change in market.c. Real and clear
image of product. d. Quality advertisement gives better company image. Ramaiah
25. Organisation Study Report on Star PVC pipes & fittings Internship 20112.
Newspapers: heading Malayalam newspaper, The Hindu, Indian Express.3. Website.4.
Sponsoring cultural and institutional programs, management and dealers meet,
plasticmanufactures association and export promotion counsels meetings.5. Presently no
visual media.Advertisement Budget:Budget of advertisement depends mainly on market
needs as it‟s the growth stage need topromote the brand. Once established the budget
could be reduced followed poly is 3-5% ofnet profit.Distribution Channel:Pricing
Strategy: In STAR pricing strategy is a special kind of plan formatted in order to meet
thechanges of external factors particularly from the policies of competitors. Pricing
strategieschange with competitive situation. Some of the common pricing strategy
followed STARplastics are: 1. Competitive pricing. 2. Premium pricing.1. Competitive
pricing:It depends upon market condition competitor‟s price, seasonal variation etc.
customers arevery much aware of the quality and price of the product.2. Premium
pricing: Ramaiah Institute of Management Studies25SBS Swiss Business School
26. Organisation Study Report on Star PVC pipes & fittings Internship 2011In the case of
suction and delivery hose, adopted a premium price strategy to utilize the ISImarking and
brand image. As the brand awareness is less with customers market will stilldepends on
price of the product.In the case of new product:Following pricing strategy followed in the
case of new products: 1. Skimming price policy:Company adopts skimming price policy
in the case of new products. This is done with thebasic idea of gaining a premium from
those buyers who always ready to pay a much higherprice than others. The main reason
for adopting this strategy is to attract the consumers ofhigh income group. . 2. Penetration
price policy:Sometimes company adopt penetration price policy that means changing low
price frombeginning in order to stimulate the growth of the market and to capture a large
share of it.Since the customers with low income are able to purchase it.Price
Fixation:Price of the product depends on two components: a. Cost of raw material -
variable. b. Operational &Processing cost - fixed. Product price changes with change in
raw material price, which is considered as avariable. Minimum period of two weeks
taken for price revision, though in some cases rawmaterials price fluctuates each day.Risk
Involved:Usually bad debts may occur in a business concern. But in STAR PLASTICS
till now no baddebts have been incurred. The usual credit period given to customers is 15
days. If onecustomer delays the payment, they collect the amount by the way of sending
reminders tohim, although they are keeping some amount as reserve for bad and doubtful
debts. Thesociety is keeping large quantities of direct materials as stock because the price
of such Ramaiah Institute of Management Studies26SBS Swiss Business School
27. Organisation Study Report on Star PVC pipes & fittings Internship 2011materials is
growing day by day. Therefore these excessive raw materials don‟t result in lossthough

some heavy investment is required in it.To avoid the risk involved in transportation of
goods to customers outside Kerala, the goodsare insured accordingly. It helps the society
to avoid the risk involved in transporting goodsto distant places.3.4 Human Resource
Department Human resource management involves personnel management, personnel
administration,employee welfare, manpower planning, industrial relations etc.Human
resource department isheaded by General Manager and assisted by all the department
heads, factory managers, andbranch managers. STAR does pro-active approach to
managing people in the organization. It constitutes aseries of integrated decisions that
helps to consolidate the employment relationship andbelieves that their quality
contributes to the efficiency of the organization and helps theemployees to achieve their
objectives. In the case of production centers, factory manager manages all personal staff
and createsa good relationship with office staff and workers. He undertakes their wants.
He will motivateentire unit as a whole. Each unit works as an independent unit with its
own modes of training,induction, performance, appraisal etc. All the functions are done
in consultation with the production manager and thegeneral manager. In the branch
offices Branch manager maintains the warmth employeerelationship and assessment and
training is provided by branch manager in consultations withmarketing manager and the
General Manager. Ramaiah Institute of Management Studies27SBS Swiss Business
School
28. Organisation Study Report on Star PVC pipes & fittings Internship 2011Organization
Structure: HUMAN RESOURCE MIDDLE SUPERVISORY OPERATIONAL TOP
MANAGEMENT MANAGEMENT MANAGEMENT MANAGEMENT BOARD OF
DIRECTORS DEPARTMENTAL HEADS SENIOR SUPERVISORS
SKILLEDWORKERS CHEIEF ACCOUNTANT DIVISIONAL HEADS
INTERMEDIATE SEMI- SKILLED WORKERS FINANACIAL SUPERVISORS
SECTIONAL HEADS UNSKILLED WORKERS DIRECTORSWorking Hours in
STAR:Office time begins with 9 A.M up to 5.30 P.M. In that time all transactions and
officialfunction of that day are completed. All functions are controlled by HR Manager.
HRManager handles many planning process they are: Forecasting future manpower
requirement, it is estimated based upon specific future plans of the company.
Identifying present manpower resources and analyzing the degree to which these
resources are employed optimally. Anticipating manpower problems by projecting
present resources into the future and comparing them with the forecast of the
requirement, to determine their adequacy, both quantitatively and qualitatively. Planning
the necessary programs of requirement, selection, training and development, utilization,
transfer, promotion, motivation and compensation. So that future manpower requirement
will be met.3.5 Production DepartmentProduction is the core function concerned with
STAR as it has wide range of products andproduction take place in plants located at
faraway places. More over as faced with stiffcompetition, the only way to increase the
profit is by the cost reduction, as price increase isnot at all possible. So each unit has its
own research and development facilities working for Ramaiah Institute of Management
29. Organisation Study Report on Star PVC pipes & fittings Internship 2011the better
production functions to increase the efficiency in a way result in cost
reduction.Production takes place in six production centers located at different place. Each
division isself-reliant in its activities of manufacturing, quality control, research and

developmentproduction center is headedby factory manager‟s reports to a production
manager at thecorporate office.Organization Structure: PRODUCTION MANAGER
FACTORY MANAGER ASST. MANAGER PRODUCTION QUALITY IN CHARGE
STORE IN CHARGE (ADMINISTRATION) SUPERVISORS (TECH & R&D)
ACCOUNTANT WORKER CASHIER CLERK, RECEPTIONThe Company‟s
production department handles the production of PVC pipe fittings. Themain raw
material for product is „Resin‟ and other related components like chemicals. 95%resin
and 5% other chemicals are used for the production. The plant is set up in processlayout.
The raw materials go through the various processes for development of final
product.Other than company fittings Company also produce solvent cement and in
differentmeasures. There are 20 machines in production plant, each costing up to 35
lacks.Depending upon the type of products, the production process is divided in to three:
Extrusion: - For rigid pipes and flexible hoses. Injection Molding: - For PVC Pipe
Fittings. Mixing: - For solvent cement. Ramaiah Institute of Management
30. Organisation Study Report on Star PVC pipes & fittings Internship 20113.6 Purchase
DepartmentThe purchase department is entrusted with the function of purchasing row
materials. In thepresent scenario with the cut throat competition, cost reduction is
practiced in every sphere ofthe business and purchase is one of the important functions
where cost can be highlycontrolled. High quality materials with lower cost became the
motto of every organization fora meaningful survival, for this organizations practice
supplier rating and vender management.There is a centralized purchase department
headed by purchase manager who is responsiblefor taking purchase decisions for all
units. The decisions are made on the basis of followingfactors: Market conditions
Availability of raw materials Price of raw materialsOrganization Structure: PURCHASE
MANAGER SENIOR ASSISTANT OFFICE ASSISTANTThe purchase manager
concerns with the factory managers regarding the technicalspecifications, manufacturer,
quality standards, cost of materials, availability, time delay etc.In case of engineering
goods, testing equipments, speciality chemicals, instruments etc thepurchase manager
seeks help from the engineers and the other technical persons workingwith the research
and development. Purchase manager also works in coordination with thechief accountant,
to know the position and about the credit position with the suppliers. Ramaiah Institute of
31. Organisation Study Report on Star PVC pipes & fittings Internship 2011Role of
Purchase Manager: Raw materials purchase. Purchase of consumables and stores.
Negotiation of prices of raw materials with the supplier.Procurement and Issue of
Materials: Purchase. Store.A.Purchase The production department, usually factory
manager informs the purchase departmentabout the requirements of materials. The
information is passed through the purchase intentissued by factory manager to the
purchase manager. In case of regular product like stationaryand small purchase, the store
in charge issues the purchase intend giving a copy to the factorymanager item
specification, required quantity, name of the manufacture, approximate costsetc. are
mentioned in the purchase intend. The purchase department then enquires with
thesuppliers and invites quotation. From the received quotation mentioning the offered
price,mode of payment, discount if any, time need for dispatches etc., purchase
department choosesthe most appropriate by considering all the criteria. Purchase manager

consults with accounts department about the availability of cash,payment condition,
balance of any paid, whether the account with the supplier crossed thecredit limit etc.
with the approval of accounts department, purchase manager then sends apurchase order
to the supplier. In case of new materials or new supplier, purchase departmentinsist or
samples to be supplied before the purchase. These samples are tested within
houselaboratories. Orders are given only when the sample confirms to the required
quality levels.B.StoreStore is very important to arrange different items of materials in a
systematic manner. Storerecords information relating to receipts and issue of materials
and products. Proper storage isessential for material cost control. Store is headed by the
store in charge who report to thefactory manager and purchase manager. Each production
center has its own store. Materialpurchasing is done as a centralized activity and then it is
supplied to stores at productioncenters. Store is divided into three: Ramaiah Institute of
32. Organisation Study Report on Star PVC pipes & fittings Internship 2011 Raw
material stores. Engineering Stores (electrical suppliers). Finished goods store.3.7
Systems Department STAR started the computerization of its department‟s way back.
Personal computerswith UNIX as the operating system were used in the late 1980‟s. But
the computers ofvarious departments are not networked. In the year 1999, STAR went to
upgrade its EDPsetup further. Costume made ERP software was developed for its units
and head office. Theinstallation of ERP software made the work of the departments of
STAR easier. Beingcostume made this ERP software, with SQL RDBMS, Front end on
Visual basic andwindows NT 2000 and XP, seamlessly had integrated all function of the
organization VIZ,production, inventory billing. Payroll, Accounting etc.The head office
at Thrissur has three servers and forty nodes running the application. Oneserver is
networked and other is kept as back up, another one is used as internet server. Otherunits
totally have about eight servers and about 50 nodes. Their latest plants at
DUBAI,CHENNAI has computerized control room for monitoring and production
controlling. Inaddition with ERP system, STAR also had implemented an electronic
messaging solutionwith its organization, which is centered on the company‟s website.
This messaging solutionobviates the communication bottle neck of company. Ramaiah
CHAPTERIV PORTERS FIVEFORCES MODEL Ramaiah Institute of Management
34. Organisation Study Report on Star PVC pipes & fittings Internship 2011 PORTERS
FIVE FORCES MODELPorters Five Forces is a framework for industry analysis and
business strategy developmentformed by Michael E. Porter of Harvard Business School
in 1979. It draws upon IndustrialOrganization (IO) economics to derive five forces that
determine the competitive intensityand therefore attractiveness of a market.
Attractiveness in this context refers to the overallindustry profitability. An "unattractive"
industry is one in which the combination of these fiveforces acts to drive down overall
profitability. A very unattractive industry would be oneapproaching "pure competition",
in which available profits for all firms are driven down tozero.The Five Forces are 1. The
threat of the entry of new competitors. 2. The threat of substitute products or services. 3.
The bargaining power of customers (buyers). 4. The bargaining power of suppliers. 5.
The intensity of competitive rivalry.For plastics producers worldwide, India represents a

range of highly new opportunities forgrowth. The plastics industry in India has made
significant achievements ever since it made amodest but promising beginning by
commencing production of polystyrene in 1957.TheIndian plastic industry conforms to
the levels of sophistication required to produce plastic andplastic products of
international quality standards. The consumption of plastics 1999 isestimated at twelve
million tons by the year 2010. The demand for plastics is growingapproximately @ 22%
annually and plastic consumption in India is expected to increase fromalmost 2.7 million
tons of various commodity plastics in 1998 to almost fifteen milliontonsby 2010.During
the organizational study undertaken in Star Plastics, Kerala, the information
collectedregarding its competitors, products, the bargaining power of customers and the
suppliers and Ramaiah Institute of Management Studies34SBS Swiss Business School
35. Organisation Study Report on Star PVC pipes & fittings Internship 2011the intensity
of competitive rivalry has been analyzed using Porters five forces model and isas
follows:1. The Threat of the Entry of New CompetitorsProfitable markets that yield high
returns will attract new firms. This results in many newentrants, which eventually will
decrease profitability for all firms in the industry. Unless theentry of new firms can be
blocked by incumbents, the abnormal profit rate will tend towardszero (perfect
competition). The history of star is the history of pipe fittings production insouth India. In
1983, Vikas plastics and Star plastics amalgamated to form Star plastics,Mullurkara that
is 20kms away from Thrissur town, the cultural capital of Kerala. In 1988,star became the
number one PVC pipe fitting manufacture in south India it has received thebest ISI mark
for quality. Afterwards more organizations came into the plastic manufacturingindustry
and so that the competition also becomes huge.The main competitors for Star in the
market now are: Hycount Plastics & Chemicals. Hycount Plastics & Chemicals was
commissioned two decades ago at Kollam. HYCOUNT PIPE - One of the brand PVC
pipes in the country and the market in Kerala in its kind with an installed capacity over
12,000 Metric tons per annum produced at different locations in Kerala. A-One Polymer
Ltd. A-One Polymer Ltd. is yet another glorious contribution of the century old Anwar
Group of Industries in strengthening the developing industrial base of Bangladesh.
Manufactured in strict compliance with ISO 3633:2002 & BS Standard 4514, „A-One u
PVC Fittings‟ possess attributes equivalent to any international premier quality pipe-
fittings. A-One Polymer, established in 2006 with uPVC pipe & fittings manufacturing
facility, is also in production of 50MT of PTFE Thread Seal Tape per month, making it
the first manufacturer of this product in Bangladesh. With the aim to diversify its product
range further, A-One Polymer seeks to manufacture a wide range Ramaiah Institute of
36. Organisation Study Report on Star PVC pipes & fittings Internship 2011 of plumbing
related materials (PVC, uPVC, cPVC) in the years to come. Already serving the world
market, A-One polymer plans to further expand its production capacity by 150MT/month
to strengthen its export market in 2013. Finolex Industries Ltd. Finolex Industries Ltd is
the largest manufacturer of rigid poly vinyl chloride (PVC) pipes and fittings in India
having a market share of nearly 10 per cent. The companys manufacturing capacity of
36,000 tons for PVC pipes and fittings is likely to be increased to 50,000 tons by the end
of next year. Recently, FIL commissioned an ultra-modern PVC pipes plant at Ratnagiri
in Maharashtra. The company also has a plant in Pune. Nediyara Group
"SHAKTHIMAN SUPER". "SHAKTHIMAN SUPER" is the flagship brand of Nediyara

Group, a synonym for plastic processing in Kerala. The headquarters of the group is at
Kodanad,A picturesque village on the banks of river Periyar. Besides PVC pipes, the
group churns out a myriad of plastic products like Soft PVC Garden Hoses, ISI Marked
Electrical Wiring Pipes, Printed Food Packaging Containers, Water Storage Tanks, Toilet
Seat Covers, Cisterns etc. Launched in 1974. Eurotech Pipes and Fittings. Eurotech Pipes
and fittings are made from VESTOLEN P9421 polypropylene random co polymer
specially developed for this use. Eurotech is a system of pipes and fittings made from
VESTOLEN P9421 random copolymer polypropylene, specially developed for this use.
The system‟s characteristics make it suitable for the construction of heating and water
supply systems of the most widely varying forms with outstanding reliability over time.
Eurotech office in Kerala: Thrissur Road, Chagarakulam, and Kerala. Some Other
Companies in Thrissur I. UNIVERSAL DISTRIBUTORS, Masjid Road, Kokkalai,
Thrissur. II. Moyalan HDPE -PVC Pipes, Market Rd, PB-76, Ollur P O, Thrissur.
37. Organisation Study Report on Star PVC pipes & fittings Internship 2011 III.
MazPolymers, Industrial Development Plot, Athani P O, Peringandoor Thrissur.2.
TheThreat of Substitute Products or Service The threat of substitute is high when the
price of that substitute product falls or it iseasy for consumers to switch from one
substitute product to another or when buyers arewilling to substitute. Star Plastic product
constitutes plumping equipment materials such asPVC pipes, fittings, SWR fittings and
PVC adhesive. Star fitting is leading names fittingsover all the states. STAR PVC fittings
are manufactured from the finest grade PVC resintrusted and acclaimed all over the
country for quality. Due to the high tensile strength andreliability used in industry, homes
etc. STAR fittings are available in above 10 shapes andmeasures vary from 20mm to
200mm. They are also available in 3 different colors. Injectionmolded STAR PVC pipe
fittings confirm to ISI specification and assure totally safe, non-toxic water for all
purposes. The development of PVC pipes and all type of Plastic fittings and
equipment‟sallover the world is by using the organochlorine called Poly Vinyl Chloride
(PVC). STAR isalso developing all type of pipe products (rigid pipes, flexible hoses etc.)
using the sameorganochlorine PVC. The competitors are also using the same technology.
So there is nosubstitute products made from other organochlorine, the plastic products are
all made fromthe same organochlorine PVC.3. The Bargaining Power of Customers
(Buyers) Buyers or customers can exert influence and control over an industry in
certaincircumstances. This happens when: There is little differentiation over the product
and substitutes can be found easily. Customers are sensitive to price. Switching to
another product is not costly. Ramaiah Institute of Management Studies37SBS Swiss
Business School
38. Organisation Study Report on Star PVC pipes & fittings Internship 2011Nowadays
customers have the buying power and they have the choice in the market tochoose the
product what they want. In 1994 Star began the production and marketing offlexible
hoses under the brand name STAR FLEX. Before that Nediyara group came withSoft
PVC Garden Hoses and it has a good name among the customers and has a good
marketalso. So when Star came with flexible hoses, it is difficult to market the product.
But whilecomparing to other company‟s products, Star have international standards and
also have theISI certification and the product flexible hose is for both domestic and
industrial use. Thismade Star to gain supremacy of the products over others products,

market ascendancy wasnot difficult. Star now is a ubiquitous presence in the entire
Middle-East and South Africa. In2001, STAR received the ISO 9002 Certification, yet
again the first in South India. Thecustomers of STAR are satisfied with their products.
They continue to use the product andwill purchase them in future. Quality is the main
factor that helps STAR to compete withother brands. Advertisements were done in print
media only.4. The Bargaining Power of SuppliersSuppliers are also essential for the
success of an organization. Raw materials are needed tocomplete the finish product of the
organization. Suppliers do have power. This power comesfrom: If they are the only
supplier or one of few suppliers who supply that particular raw material. If it costly for
the organization to move from one supplier to another (known also as switching cost). If
there is no other substitute for their product.STAR plastics have suppliers all over South
India. STAR plastics concentrates there marketin India mostly in southern region. STAR
has a monopoly market in southern area. Thecompany can market their product very
smoothly through the market segmentation. Thecompany is selling their products by
dividing the market state wise. The companyconcentrates in Tamil Nadu, AndhraPradesh,
Karnataka and Kerala. In North India thecompany continues marketing of their products.
To be more precise, the product of the company makes its presents felt in thefollowing
counties: Ramaiah Institute of Management Studies38SBS Swiss Business School
39. Organisation Study Report on Star PVC pipes & fittings Internship 2011 INDIA UAE
RUSSIA IRAN AFGHANISTAN MUSCAT QATAR BAHRAIN SAUDI ARABIA
EGYPT SUDAN ETHIOPIA SOMALIA SOUTH AFRICA5. The Intensity of
Competitive RivalryIf entry to an industry is easy then competitive rivalry will likely to
be high. If it is easy forcustomers to move to substitute products for example from coke
to water then again rivalrywill be high. Generally competitive rivalry will be high if:
There is little differentiation between the products sold between customers. Competitors
are approximately the same size of each other. If the competitors all have similar
strategies. It is costly to leave the industry hence they fight to just stay in (exit barriers).In
India the PVC industry is going through high competitive rivalry. As too
manyorganizations are coming to PVC pipes & Fittings manufacturing industry yearly,
thecompetition is also becoming higher. In the last one decade unparalleled growth
waswitnessed in Star group of companies to emerge as a leader in the PVC fitting and
todiversify into the manufacture of suction hoses, drainage fittings and PVC pipes.
Thecompanies operation includes manufacturing of PVC fittings and allied products in
clearlydefined core business areas at home and overseas. The Star group of companies is
the singlelargest plastic industry in private sector over years, star group has steadily
developed into a Ramaiah Institute of Management Studies39SBS Swiss Business School
2011professionally managed company comprising of 8 manufacturing unit in 3
production centerswith a total installed capacity of 3850 meter per annum-8 divisions and
effective centralizesupport services wholly dedicated to the most existing standards of
quality and customerservices, constantly motivated by the need to ensure total product
satisfaction. In the year2000, to take the challenge of globalization, star set up a core
team and applied core ISOcertification. In August 2001, star became the first PVC
fittings manufacture in south India toreceive the ISO 9002 certification. Now Star
Plastics is the market leader in South India. Thecompany has made its presence
significantly in Middle East market also.Strategy persuaded by Star PVC is: Produces

good quality product. Makes use of modern techniques for production to meet the
demands mostly with the help of pop‟s. Assigning targets to each store manager and as
such rewarding then with attractive prizes. Everyday feedbacks are taken.The value
which exists in Star PVC is: No discrimination for race, religion, decision making and
actions. To develop a sense of respect for oneself in other‟s mind. Discipline is given
great importance.These all help them to overcome the intensity of competitive rivalry in
the PVC pipes &Manufacturing industry. Ramaiah Institute of Management
V SWOT ANALYSIS Ramaiah Institute of Management Studies41SBS Swiss Business
School
42. Organisation Study Report on Star PVC pipes & fittings Internship 2011 SWOT
analysis is a strategic planning tool used to evaluate the strengths, weakness,opportunities
and threats involved in a project or in a business venture. It involves specifyingthe
objectives of the business venture or project and identifying the internal and
externalfactors that are Favorable and unfavorable to achieve the objectives.Strength: 1.
The company has a good brand image among the consumers. 2. Products accepted all
over the world for its quality. 3. Multi – Unit Multi – Product organization catering all
products in PVC pipe industry. 4. Global presence in Middle East Asia, Europe, Africa.
5. The company has the direct marketing network with well established distribution
system 6. Dedicated marketing force with effective promotion strategy. 7. The company
has fully computerized departments and production units and corporate office is
connected through intranet. 8. Committed work force guided by technically skilled
superiors, maintaining warmness in relation helps in delivering a combined effect. 9.
Stringent quality measures adopted, backed by a strong quality control and R & D
team.Weakness: 1. Organization in flexibility (Flexible working hours and Policies for
flexible working). 2. Limited branches. 3. Lack of access to the key distribution channels
(Not concentrating in the rural areas of south India where there are lot of business
possibilities in agriculture sector. Now the organization is concentrating mainly in the
construction Industry). 4. Advertisements are done through print media only. Ramaiah
2011Opportunities: 1. PVC pipe industry is in growth stage so PVC pipe industry has a
greater opportunity to grow. 2. Immense opportunities as infrastructure development in
India are growing at a faster pace. 3. There are large untapped opportunities in
Government sector(E.g. Government is giving subsidies to the farmers for buying
agriculture equipment‟s). 4. Growth of real estate on account of nuclear families. 5.
Agriculture promotion schemes by government and other agencies.Threats: 1. Sudden
fluctuations in crude price, causing fluctuations in raw material price makes difficult in
pricing strategy. 2. Industry is one among those with greater competition. 3. In the
changing world of technology, sometimes a better substitute over PVC may emerge. 4.
All the competitors (Hycount Pipes, A-One Polymers, and Finolex Industries etc.) are
changing their strategies and formulating new ones to capture new markets. 5. As PVC is
a plastic which is not biodegradable cause‟s environmental pollution, may face a ban in
future. Ramaiah Institute of Management Studies43SBS Swiss Business School

VI FINDINGS AND SUGGESTIONS Ramaiah Institute of Management Studies44SBS
45. Organisation Study Report on Star PVC pipes & fittings Internship 2011Findings:Star
Plastics is the number one PVC pipe fitting manufacturer in south India and it
hasreceived the best ISI mark for quality. In August 2001, Star became the first PVC
fittingsmanufacturer in south India to receive the ISO 9002 certification. International
Standard that is being followed as far as the quality of the products is concerned. Has
well trained employees to operate the machines. Provides excellent services to its
employees like canteen, medical facilities, transportation etc. Premises are huge and
designed in such a way that the raw materials can easily transferred from one
department to another. Safety is given main preference. Discipline is being followed.
Pollution level is low. Quality of the products is assured by doing nine different
quality tests. Everyday feedbacks are taken. Excellent training and development
system. Employee performance appraisal system. No discrimination for race, religion,
decision making and actions.Suggestions: Ramaiah Institute of Management
46. Organisation Study Report on Star PVC pipes & fittings Internship 2011 Problems
can be detected early and treated to prevent deterioration welfare and cost reduction.
Annual medical checkup for all workmen and employees. A small amount can be
deducted from the salary one time. Cleanliness and orderliness has to be further
improved. Improve security measures by using electronic devices at all gates.
Advertisement need improvement (currently advertisements is done through print
media only, need to be done in visual media also). CHAPTER VII CONCLUSION
CONCLUSIONThe study conducted at STAR GROUP OF COMPANIES THRISSUR
which is the pioneerand market leader in the PVC pipe product in South India, helped in
getting a wider outlookabout the business environment and managing an organization.
Organization has sixproduction centers and five marketing branches spread all over South
India and Middle EastAsia, with operation all over the world.It was a general study
regarding all functions and aspects of STAR. The company has sevenfunctional
departments through which it was operating. It is found that company has a goodworking
environment and cordial relationship is maintained between all departments for
thesmooth functioning and achievement of the organization goal of maintain the
company‟sbrand image among the customers. Porters Five Forces Model is done in the
period of studyto analyze the threat of the entry of new competitors and substitute
products or services, thebargaining power of the customers and the suppliers and the
intensity of competitive rivalry.SWOT analysis is also done to analyze the Strength,
Weakness, Opportunities and Threats ofthe organization.Star has made are of most
advance technology and up to date knowledge. Fully automatedproduction has been put
to use long time ago U.S made microprocessor controlled machineryis used to for
production. Star received the ISI mark for quality and ISO 9002 certification for Ramaiah

48. Organisation Study Report on Star PVC pipes & fittings Internship 2011quality by
TUV Germany, and ISO 14001: 2001 certification. All the products are ofInternational
standard. At present company is able to later about 10% of the marketrequirements. In
order to later the complete needs the company is planning to increase theproduction level
to maximum extent possible. The company is planning to increase thepresent product
level of Dubai units. The research and development team of STAR group isengrossed in
developing new product for the international markets. This has helped them togain
valuable insight that prompt the group to search alternative ways for manufacturingbetter
products in a cost effective manner. CHAPTER VII Ramaiah Institute of Management
BIBILIOGRA PHY BIBILIOGRAPHYBooks Referred: Philip Kotler, Jha, and Koshy:
“Marketing management”. Roger. A. Kerin, Steven. W. Hartley, Eric. N. Berkowit,
William Redlius: “Marketing Management”.Websites Referred: www.wikipedia.com
www.stargroupind.com www.google.com Ramaiah Institute of Management
50. Organisation Study Report on Star PVC pipes & fittings Internship 2011Journals:
Star Plastics Company Magazine. Ramaiah Institute of Management Studies50SBS

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