This document provides information about a project report submitted for an MBA program. It includes a title page, declaration, preface, acknowledgements, executive summary, and the beginnings of chapters 1 and 2 on the company profile. The project focuses on understanding the role of finance management at Fortune Park Hotel, an ITC Ltd. property, and ERP implementation. It describes conducting the study at Fortune Park Hotel to understand the finance department's functions and activities. The company profile section gives an overview of ITC Ltd. and its Fortune Hotels subsidiary, including their missions and the Indian hotel industry characteristics.
The document provides background information on the Taj Mahal Palace Hotel in Mumbai, India. It discusses that the hotel was opened in 1903 and was India's first luxury hotel. It was built by Jamsetji Nusserwanji Tata to make customers feel like they were staying in a royal palace, explaining the palace-like interior. Over the past 100+ years, the Taj Hotel chain has expanded across India and internationally, maintaining high standards for hospitality.
This document is a project report submitted by Ganeri Ranjit Kumar.P to Prof. Nithya Varghese on October 21st, 2013 in partial fulfillment of a Bachelor's degree in Management Studies. The report focuses on analyzing the hospitality industry, with a case study of the Taj Group of Hotels. It includes an introduction, research methodology, conceptual framework, company profile analysis of Taj Hotels, analysis of the hotel industry, questionnaires, limitations, conclusions, interpretations and recommendations.
The document provides an overview of Taj Vivanta, a luxury hotel chain in India. Some key points:
- Taj Vivanta was incorporated in 1902 and opened its first hotel, the Taj Mahal Palace & Tower in Mumbai in 1903.
- Since the 1970s, Taj Vivanta has played a key role in developing India's tourism industry and launching several tourist destinations through converting royal palaces into luxury hotels.
- Internationally, Taj Vivanta opened its first hotel outside India in 1980 in Yemen and acquired interests in hotels in London in the late 1980s.
- Taj Vivanta is now a leading luxury hotel chain in India with properties in major cities like Mumbai, Delhi, Kolkata
A project report on hr practice in hotel industryProjects Kart
The document provides an overview of the hotel industry and human resource practices within it. It discusses that the hotel industry is large and growing, offering diverse career opportunities. It also classifies hotels based on star ratings and amenities, and describes the various core departments within hotels like food and beverage, front office, and housekeeping. The roles of supporting departments like marketing, engineering, and finance are also outlined. Finally, it discusses the importance of safety, security, and developing training programs for employees.
An analysis on Taj Hotels, Resorts and Palaces with the help of SWOT, PESTLE and PORTER's 5 Forces to understand the performance of the company in the business market and the way it tackles the Corona Virus situation to stay in business and keep the position that it holds in the market. The presentation also tells about the company, suggests a few ideas and offers a conclusion on the future of the company.
The document discusses human resource practices in the hotel industry. It begins with an introduction to the hotel industry, describing its growth and diversity of opportunities. It then covers classifications of hotels based on star ratings and amenities, as well as classifications based on type such as heritage, beach resort, and government approved hotels. Finally, it outlines the major departments in hotels, including front office, housekeeping, food and beverage, and human resources, and the career opportunities available in the industry.
Presentation covered :
1. Introduction
2. SWOT Analysis
3.Strategic Planning Process
4.Structure of the Organization
5.Control Mechanism
6.Leadership Style that I observed
7.Various strategies which incorporate in order to get listed in the list of best places to work.
The document provides an overview of the Taj Hotels group. It discusses the hotel industry in India and categories of hotels. It then focuses on Taj Hotels, describing its founding in 1903, expansion across India and globally, categories of Taj hotels including luxury, business, and leisure hotels. The summary also discusses Taj Hotels' marketing mix, competitors, and segmentation strategies.
The document provides background information on the Taj Mahal Palace Hotel in Mumbai, India. It discusses that the hotel was opened in 1903 and was India's first luxury hotel. It was built by Jamsetji Nusserwanji Tata to make customers feel like they were staying in a royal palace, explaining the palace-like interior. Over the past 100+ years, the Taj Hotel chain has expanded across India and internationally, maintaining high standards for hospitality.
This document is a project report submitted by Ganeri Ranjit Kumar.P to Prof. Nithya Varghese on October 21st, 2013 in partial fulfillment of a Bachelor's degree in Management Studies. The report focuses on analyzing the hospitality industry, with a case study of the Taj Group of Hotels. It includes an introduction, research methodology, conceptual framework, company profile analysis of Taj Hotels, analysis of the hotel industry, questionnaires, limitations, conclusions, interpretations and recommendations.
The document provides an overview of Taj Vivanta, a luxury hotel chain in India. Some key points:
- Taj Vivanta was incorporated in 1902 and opened its first hotel, the Taj Mahal Palace & Tower in Mumbai in 1903.
- Since the 1970s, Taj Vivanta has played a key role in developing India's tourism industry and launching several tourist destinations through converting royal palaces into luxury hotels.
- Internationally, Taj Vivanta opened its first hotel outside India in 1980 in Yemen and acquired interests in hotels in London in the late 1980s.
- Taj Vivanta is now a leading luxury hotel chain in India with properties in major cities like Mumbai, Delhi, Kolkata
A project report on hr practice in hotel industryProjects Kart
The document provides an overview of the hotel industry and human resource practices within it. It discusses that the hotel industry is large and growing, offering diverse career opportunities. It also classifies hotels based on star ratings and amenities, and describes the various core departments within hotels like food and beverage, front office, and housekeeping. The roles of supporting departments like marketing, engineering, and finance are also outlined. Finally, it discusses the importance of safety, security, and developing training programs for employees.
An analysis on Taj Hotels, Resorts and Palaces with the help of SWOT, PESTLE and PORTER's 5 Forces to understand the performance of the company in the business market and the way it tackles the Corona Virus situation to stay in business and keep the position that it holds in the market. The presentation also tells about the company, suggests a few ideas and offers a conclusion on the future of the company.
The document discusses human resource practices in the hotel industry. It begins with an introduction to the hotel industry, describing its growth and diversity of opportunities. It then covers classifications of hotels based on star ratings and amenities, as well as classifications based on type such as heritage, beach resort, and government approved hotels. Finally, it outlines the major departments in hotels, including front office, housekeeping, food and beverage, and human resources, and the career opportunities available in the industry.
Presentation covered :
1. Introduction
2. SWOT Analysis
3.Strategic Planning Process
4.Structure of the Organization
5.Control Mechanism
6.Leadership Style that I observed
7.Various strategies which incorporate in order to get listed in the list of best places to work.
The document provides an overview of the Taj Hotels group. It discusses the hotel industry in India and categories of hotels. It then focuses on Taj Hotels, describing its founding in 1903, expansion across India and globally, categories of Taj hotels including luxury, business, and leisure hotels. The summary also discusses Taj Hotels' marketing mix, competitors, and segmentation strategies.
This document provides a project report on studying HR practices at ITC. It includes an introduction, objectives of studying HR practices, a company profile of ITC, and planned sections on recruitment, training, performance appraisal, employee welfare, productivity, research methodology, results and conclusions. ITC is an Indian conglomerate with businesses in FMCG, hotels, paper, agriculture, and IT. The report aims to understand and improve ITC's HR practices like recruitment, training, and performance management to increase employee and company performance.
Jackson Subedi completed an 8-week internship in the Human Resource Department of Radisson Hotel Kathmandu. During his internship, he assisted with training programs, updated medical insurance records, and managed staff purchase schemes. He gained practical experience in HR functions and observed how the department supports other areas of the hotel. The internship provided valuable lessons that will help him in future career endeavors.
External environment of taj & oberoi hotel industrySaurabh Giratkar
3. EXTERNAL ENVIRONMENT
Controlling Ministry
The Ministry of Tourism is the nodal agency for the formulation of national policies and programmes and for the co-ordination of activities of various Central Government Agencies, State Governments/UTs and the Private Sector for the development and promotion of tourism in the country. This Ministry is headed by the Union Minister of State for Tourism (Independent Charge).
The administrative head of the Ministry is the Secretary (Tourism). The Secretary also acts as the Director General (DG) Tourism. The office of the Director General of Tourism {now merged with the office of Secretary (Tourism)} provides executive directions for the implementation of various policies and programmes. Directorate General of Tourism has a field formation of 20 offices within the country and 14 offices abroad and one sub-ordinate office/project i.e. Indian Institute of Skiing and Mountaineering (IISM)/ Gulmarg Winter Sports Project. The overseas offices are primarily responsible for tourism promotion and marketing in their respective areas and the field offices in India are responsible for providing information service to tourists and to monitor the progress of field projects.The activities of IISM/GWSP have now been revived and various Ski and other courses are being conducted in the J&K valley.
Role and Functions of the Ministry of Tourism
The Ministry of Tourism functions as the nodal agency for the development of tourism in the country. It plays a crucial role in coordinating and supplementing the efforts of the State/Union Territory Governments, catalyzing private investment, strengthening promotional and marketing efforts and in providing trained manpower resources. The functions of the Ministry in this regard mainly consist of the following:
All Policy Matters, including: Development Policies Incentives, External Assistance, Manpower Development, Promotion & Marketing.
The Ministry of Tourism, Government of India has set some guidelines for the star classification as given in the table
TAJ Hotel
Founder Jamsetji Tata
Headquarters Mumbai, Maharashtra, India
Key people MD & CEO
Rakesh Sarna
The Indian Hotels Company (IHCL) and its subsidiaries, collectively known as Taj Hotels Resorts and Palaces, is one of Asia's largest and finest groups of hotels. Incorporated by the founder of the Tata group, Jamshedji Tata, the company opened its first property, the Taj Mahal Palace, in Bombay in 1903. The Taj, a symbol of Indian hospitality, completed its centenary year in 2003. Taj Hotels Resorts and Palaces comprises 93 hotels in 53 locations, including 25 Ginger hotels across India, with an additional 16 international. From world-renowned landmarks to modern business hotels, idyllic beach resorts to authentic grand palaces, each Taj hotel offers an unrivalled fusion of warm Indian hospitality, world-class service and modern luxury. Areas of Business:
Taj is their flagship brand for the world's most dis
The Taj Group of Hotels is one of India's most prominent and historic hotel chains, founded in 1903. It operates 76 hotels across 12 countries, employing over 13,000 people. The group offers luxury, business, and leisure hotel options catering to different customer segments. It utilizes a robust customer relationship management system to capture customer preferences, provide personalized service, and gain valuable customer feedback.
ITC Hotels is a chain of luxury hotels owned by ITC Limited. ITC Hotels owns and operates 100 hotels across 75 destinations in India. The 7Ps of ITC Hotels' service marketing mix include: Products (rooms and amenities), Price (Rs. 5,500-3,00,000 per night), Promotion (FMCG, media, social media), Physical Evidence (hotels and amenities), Process (guest booking to checkout), Place (metropolitan cities and tourist destinations), and People (staff across roles).
1-WHAT IS SWOT ANALYSIS?
2-HISTORY OF SWOT ANALYSIS
3-APPLICATIONS OF SWOT ANALYSIS
4-AIM OF SWOT ANALYSIS
5-SWOT ANALYSIS OF HOSPITALITY INDUSTRY
6-SWOT ANALYSIS OF TAJ GROUP OF HOTELS
ITC Limited is an Indian conglomerate company whose businesses include hotels, paper, packaging, agri-business, information technology and others. It was incorporated in 1910 as Imperial Tobacco Company of India and later renamed to ITC Limited in 1974. ITC operates luxury hotel chains across India under various brands such as ITC Hotels, WelcomHotels and Fortune Hotels. It is recognized for pioneering sustainability practices in the hospitality industry with all its hotels being LEED platinum certified. ITC also owns and operates several high-end restaurants that are recognized internationally for their cuisine.
The Taj Group of Hotels was established in 1902 and opened its first hotel, The Taj Mahal Palace in Mumbai in 1903. Over the decades, it expanded across India and internationally, acquiring and developing luxury hotels. Notable milestones included opening international hotels in the 1970s/80s, expanding to major Indian cities, and acquiring historic palaces in India to convert to luxury hotels. In recent decades it has continued to open new hotels across India and internationally under brands like Taj, Vivanta, and Ginger.
Taj Hotels & Resorts is one of Asia's largest hotel companies operating 93 hotels across India and 16 internationally. It was founded in 1903 with the opening of the Taj Mahal Palace Hotel in Mumbai. The internship report provides an overview of Taj's operations, including its various hotel brands like Taj Exotica, Taj Safari, and Vivanta by Taj. It describes the intern's responsibilities in tasks like updating exchange rates, generating bills, and working with the hotel's property management system. The report also covers Taj's treatment of employees, such as providing housing, meals, uniforms, and insurance benefits. The intern aims to improve their skills in areas like data warehousing, communication, and report generation during the internship
The document summarizes information about the Oberoi Group, a luxury hotel chain based in India. It discusses the following key points:
1) Mr. Prithvi Raj Singh Oberoi is the Chairman and CEO of the Oberoi Group and has helped expand the brand internationally with award-winning hotels.
2) The Oberoi Group has business segments in hotels, aviation, car rentals, and a press division. It also operates the Oberoi Centre of Learning & Development school for hospitality training.
3) The Oberoi Group focuses on talent retention and employee satisfaction, with programs for appreciation, communication, and leadership development to create a great workplace culture.
The Taj Group of Hotels was founded in 1902 by Jamsetji Tata and owns luxury hotel brands such as Taj, Vivanta, and Gateway. It began by opening The Taj Mahal Palace hotel in Mumbai and has since expanded to over 100 hotels worldwide, also transforming several Indian palaces into luxury hotels. While it has strong brand recognition and customer loyalty, the Taj Group faces challenges from high maintenance costs, unequal growth across segments, and increasing competition.
Front desk management system
Inventory: Room inventory management
Reservation: Online booking engine
Billing: Check in/out and billing
Report: MIS reports and analytics
CRM: Customer relationship management
Loyalty: Loyalty program management
3.5 Vision & Mission
Vision: To be the most preferred hotel management solution provider for small and
medium hotels globally.
Mission: To provide an easy to use, cost effective and feature rich hotel
management solution to help small and medium hotels run their business smoothly
and efficiently.
I B S P U N E Page 18
Chapter 4: PROJECT OVERVIEW
4.1 Targeted Area:
The project was carried out in 6 districts of
The document discusses the Indian hospitality industry. It notes that the tourism and hospitality sectors are growing rapidly, driven by factors like a booming economy, low cost airlines, and globalization. The hotel industry is experiencing unprecedented growth, with demand increasing faster than supply. While the industry is growing, it faces challenges around managing seasonal and weekday demand fluctuations and optimizing customer and sales channels. The real estate sector is also large and growing rapidly due to increased demand for housing, offices, and other commercial and industrial infrastructure.
Assignment taj hotels services by nilesh shuklaNILESH SHUKLA
The document provides an overview of Taj Hotels Resorts and Palaces, a luxury hotel chain in India. It discusses the company's origins in 1903 with the opening of the Taj Mahal Palace Hotel in Bombay. It then summarizes Taj's various hotel brands that operate across market segments, including Taj (luxury), Taj Exotica (resorts and spas), Taj Safaris (wildlife lodges), Vivanta by Taj (contemporary luxury), The Gateway (upscale), and Ginger (economy). The document also outlines Taj's international expansion, culinary experiences, wellness services, and other operations like airline catering and aviation services. It concludes by noting Taj's commitment to corporate sustainability and
The document discusses ITC Limited's human resource development strategies, including attracting and developing top talent through training programs. ITC focuses on leadership development, skills training, and creating a responsive culture. Key talent management strategies include recruitment from top campuses, investments in learning and development, and encouraging local employment.
Hair care and skin care products & post trial study of pain oiljitharadharmesh
This document is a market study report submitted to NR Institute of Business Management by Manish Trivedi. The report studies the hair care, skin care, and pain oil markets in Bangalore through surveys of 122 medical/chemist shops and post-trial feedback from 25 pain oil users. The objectives are to understand brand awareness, monthly sales, market trends, and retailer opinions on new products from Spandan Health Care. Area sampling and questionnaires were used to collect both quantitative and qualitative data for exploratory analysis of the markets.
The document summarizes information about the Taj Group of Hotels, including its founding in 1903, current portfolio of over 100 hotels worldwide, and organizational culture that values inclusiveness. It describes the Taj's organizational structure and departments. Key aspects of the Taj's success include its commitment to high quality hospitality, environmental stewardship, and emphasis on the guest experience through all stages from pre-arrival to check-in. The Taj is recognized as an industry leader in Asia for its luxury standards and emphasis on service.
The document is a summer training project report on studying mutual funds at Mahindra Finance. It includes an introduction, objectives of the study, methodology, and chapters on mutual funds as investments and the history of mutual funds in India. The project examines mutual funds and their importance as an investment for common individuals to participate in the growing Indian economy. It collects both primary and secondary data on customer knowledge and perceptions of mutual funds through surveys. The report aims to provide insights into mutual funds and make recommendations to help attract more investors.
This document provides an overview of the hotel industry in India. It discusses the historical development of hotels in India from the British period through independence. It then outlines the growth of the industry through government initiatives in the 1960s and expansion of major hotel chains. Tables provide data on the top hotel chains and brands in India as well as industry statistics on hotel rooms and occupancy rates. The role of international franchising and classification standards set by the HRACC are also mentioned.
This document provides a project report on studying HR practices at ITC. It includes an introduction, objectives of studying HR practices, a company profile of ITC, and planned sections on recruitment, training, performance appraisal, employee welfare, productivity, research methodology, results and conclusions. ITC is an Indian conglomerate with businesses in FMCG, hotels, paper, agriculture, and IT. The report aims to understand and improve ITC's HR practices like recruitment, training, and performance management to increase employee and company performance.
Jackson Subedi completed an 8-week internship in the Human Resource Department of Radisson Hotel Kathmandu. During his internship, he assisted with training programs, updated medical insurance records, and managed staff purchase schemes. He gained practical experience in HR functions and observed how the department supports other areas of the hotel. The internship provided valuable lessons that will help him in future career endeavors.
External environment of taj & oberoi hotel industrySaurabh Giratkar
3. EXTERNAL ENVIRONMENT
Controlling Ministry
The Ministry of Tourism is the nodal agency for the formulation of national policies and programmes and for the co-ordination of activities of various Central Government Agencies, State Governments/UTs and the Private Sector for the development and promotion of tourism in the country. This Ministry is headed by the Union Minister of State for Tourism (Independent Charge).
The administrative head of the Ministry is the Secretary (Tourism). The Secretary also acts as the Director General (DG) Tourism. The office of the Director General of Tourism {now merged with the office of Secretary (Tourism)} provides executive directions for the implementation of various policies and programmes. Directorate General of Tourism has a field formation of 20 offices within the country and 14 offices abroad and one sub-ordinate office/project i.e. Indian Institute of Skiing and Mountaineering (IISM)/ Gulmarg Winter Sports Project. The overseas offices are primarily responsible for tourism promotion and marketing in their respective areas and the field offices in India are responsible for providing information service to tourists and to monitor the progress of field projects.The activities of IISM/GWSP have now been revived and various Ski and other courses are being conducted in the J&K valley.
Role and Functions of the Ministry of Tourism
The Ministry of Tourism functions as the nodal agency for the development of tourism in the country. It plays a crucial role in coordinating and supplementing the efforts of the State/Union Territory Governments, catalyzing private investment, strengthening promotional and marketing efforts and in providing trained manpower resources. The functions of the Ministry in this regard mainly consist of the following:
All Policy Matters, including: Development Policies Incentives, External Assistance, Manpower Development, Promotion & Marketing.
The Ministry of Tourism, Government of India has set some guidelines for the star classification as given in the table
TAJ Hotel
Founder Jamsetji Tata
Headquarters Mumbai, Maharashtra, India
Key people MD & CEO
Rakesh Sarna
The Indian Hotels Company (IHCL) and its subsidiaries, collectively known as Taj Hotels Resorts and Palaces, is one of Asia's largest and finest groups of hotels. Incorporated by the founder of the Tata group, Jamshedji Tata, the company opened its first property, the Taj Mahal Palace, in Bombay in 1903. The Taj, a symbol of Indian hospitality, completed its centenary year in 2003. Taj Hotels Resorts and Palaces comprises 93 hotels in 53 locations, including 25 Ginger hotels across India, with an additional 16 international. From world-renowned landmarks to modern business hotels, idyllic beach resorts to authentic grand palaces, each Taj hotel offers an unrivalled fusion of warm Indian hospitality, world-class service and modern luxury. Areas of Business:
Taj is their flagship brand for the world's most dis
The Taj Group of Hotels is one of India's most prominent and historic hotel chains, founded in 1903. It operates 76 hotels across 12 countries, employing over 13,000 people. The group offers luxury, business, and leisure hotel options catering to different customer segments. It utilizes a robust customer relationship management system to capture customer preferences, provide personalized service, and gain valuable customer feedback.
ITC Hotels is a chain of luxury hotels owned by ITC Limited. ITC Hotels owns and operates 100 hotels across 75 destinations in India. The 7Ps of ITC Hotels' service marketing mix include: Products (rooms and amenities), Price (Rs. 5,500-3,00,000 per night), Promotion (FMCG, media, social media), Physical Evidence (hotels and amenities), Process (guest booking to checkout), Place (metropolitan cities and tourist destinations), and People (staff across roles).
1-WHAT IS SWOT ANALYSIS?
2-HISTORY OF SWOT ANALYSIS
3-APPLICATIONS OF SWOT ANALYSIS
4-AIM OF SWOT ANALYSIS
5-SWOT ANALYSIS OF HOSPITALITY INDUSTRY
6-SWOT ANALYSIS OF TAJ GROUP OF HOTELS
ITC Limited is an Indian conglomerate company whose businesses include hotels, paper, packaging, agri-business, information technology and others. It was incorporated in 1910 as Imperial Tobacco Company of India and later renamed to ITC Limited in 1974. ITC operates luxury hotel chains across India under various brands such as ITC Hotels, WelcomHotels and Fortune Hotels. It is recognized for pioneering sustainability practices in the hospitality industry with all its hotels being LEED platinum certified. ITC also owns and operates several high-end restaurants that are recognized internationally for their cuisine.
The Taj Group of Hotels was established in 1902 and opened its first hotel, The Taj Mahal Palace in Mumbai in 1903. Over the decades, it expanded across India and internationally, acquiring and developing luxury hotels. Notable milestones included opening international hotels in the 1970s/80s, expanding to major Indian cities, and acquiring historic palaces in India to convert to luxury hotels. In recent decades it has continued to open new hotels across India and internationally under brands like Taj, Vivanta, and Ginger.
Taj Hotels & Resorts is one of Asia's largest hotel companies operating 93 hotels across India and 16 internationally. It was founded in 1903 with the opening of the Taj Mahal Palace Hotel in Mumbai. The internship report provides an overview of Taj's operations, including its various hotel brands like Taj Exotica, Taj Safari, and Vivanta by Taj. It describes the intern's responsibilities in tasks like updating exchange rates, generating bills, and working with the hotel's property management system. The report also covers Taj's treatment of employees, such as providing housing, meals, uniforms, and insurance benefits. The intern aims to improve their skills in areas like data warehousing, communication, and report generation during the internship
The document summarizes information about the Oberoi Group, a luxury hotel chain based in India. It discusses the following key points:
1) Mr. Prithvi Raj Singh Oberoi is the Chairman and CEO of the Oberoi Group and has helped expand the brand internationally with award-winning hotels.
2) The Oberoi Group has business segments in hotels, aviation, car rentals, and a press division. It also operates the Oberoi Centre of Learning & Development school for hospitality training.
3) The Oberoi Group focuses on talent retention and employee satisfaction, with programs for appreciation, communication, and leadership development to create a great workplace culture.
The Taj Group of Hotels was founded in 1902 by Jamsetji Tata and owns luxury hotel brands such as Taj, Vivanta, and Gateway. It began by opening The Taj Mahal Palace hotel in Mumbai and has since expanded to over 100 hotels worldwide, also transforming several Indian palaces into luxury hotels. While it has strong brand recognition and customer loyalty, the Taj Group faces challenges from high maintenance costs, unequal growth across segments, and increasing competition.
Front desk management system
Inventory: Room inventory management
Reservation: Online booking engine
Billing: Check in/out and billing
Report: MIS reports and analytics
CRM: Customer relationship management
Loyalty: Loyalty program management
3.5 Vision & Mission
Vision: To be the most preferred hotel management solution provider for small and
medium hotels globally.
Mission: To provide an easy to use, cost effective and feature rich hotel
management solution to help small and medium hotels run their business smoothly
and efficiently.
I B S P U N E Page 18
Chapter 4: PROJECT OVERVIEW
4.1 Targeted Area:
The project was carried out in 6 districts of
The document discusses the Indian hospitality industry. It notes that the tourism and hospitality sectors are growing rapidly, driven by factors like a booming economy, low cost airlines, and globalization. The hotel industry is experiencing unprecedented growth, with demand increasing faster than supply. While the industry is growing, it faces challenges around managing seasonal and weekday demand fluctuations and optimizing customer and sales channels. The real estate sector is also large and growing rapidly due to increased demand for housing, offices, and other commercial and industrial infrastructure.
Assignment taj hotels services by nilesh shuklaNILESH SHUKLA
The document provides an overview of Taj Hotels Resorts and Palaces, a luxury hotel chain in India. It discusses the company's origins in 1903 with the opening of the Taj Mahal Palace Hotel in Bombay. It then summarizes Taj's various hotel brands that operate across market segments, including Taj (luxury), Taj Exotica (resorts and spas), Taj Safaris (wildlife lodges), Vivanta by Taj (contemporary luxury), The Gateway (upscale), and Ginger (economy). The document also outlines Taj's international expansion, culinary experiences, wellness services, and other operations like airline catering and aviation services. It concludes by noting Taj's commitment to corporate sustainability and
The document discusses ITC Limited's human resource development strategies, including attracting and developing top talent through training programs. ITC focuses on leadership development, skills training, and creating a responsive culture. Key talent management strategies include recruitment from top campuses, investments in learning and development, and encouraging local employment.
Hair care and skin care products & post trial study of pain oiljitharadharmesh
This document is a market study report submitted to NR Institute of Business Management by Manish Trivedi. The report studies the hair care, skin care, and pain oil markets in Bangalore through surveys of 122 medical/chemist shops and post-trial feedback from 25 pain oil users. The objectives are to understand brand awareness, monthly sales, market trends, and retailer opinions on new products from Spandan Health Care. Area sampling and questionnaires were used to collect both quantitative and qualitative data for exploratory analysis of the markets.
The document summarizes information about the Taj Group of Hotels, including its founding in 1903, current portfolio of over 100 hotels worldwide, and organizational culture that values inclusiveness. It describes the Taj's organizational structure and departments. Key aspects of the Taj's success include its commitment to high quality hospitality, environmental stewardship, and emphasis on the guest experience through all stages from pre-arrival to check-in. The Taj is recognized as an industry leader in Asia for its luxury standards and emphasis on service.
The document is a summer training project report on studying mutual funds at Mahindra Finance. It includes an introduction, objectives of the study, methodology, and chapters on mutual funds as investments and the history of mutual funds in India. The project examines mutual funds and their importance as an investment for common individuals to participate in the growing Indian economy. It collects both primary and secondary data on customer knowledge and perceptions of mutual funds through surveys. The report aims to provide insights into mutual funds and make recommendations to help attract more investors.
This document provides an overview of the hotel industry in India. It discusses the historical development of hotels in India from the British period through independence. It then outlines the growth of the industry through government initiatives in the 1960s and expansion of major hotel chains. Tables provide data on the top hotel chains and brands in India as well as industry statistics on hotel rooms and occupancy rates. The role of international franchising and classification standards set by the HRACC are also mentioned.
This document discusses a study conducted on training needs and methods to create brand connectivity for employees at Ford Motors dealership in India. The objectives of the study were to understand the importance of training needs identification, how training is perceived by employees, and how effective training is in improving organizational and employee development. A questionnaire was used to collect primary data on training satisfaction and suggestions. The findings showed that over 80% of employees were satisfied with available training programs. However, some lacked awareness of all training opportunities. The study recommends identifying such employees and providing additional training to benefit the company.
This document is a research report submitted by Smita Rastogi for her summer internship at India Infoline Ltd. It includes an executive summary that gives an overview of the Indian capital markets and dematerialization process. It also describes Smita's internship experience working in different departments at IIFL. The report contains chapters on IIFL's organization details, literature review on stock markets and related concepts, data collection and analysis from IIFL, recommendations, and concluding remarks.
Research project report on investors perception towards derivative marketMaqbool Ahmad
This document provides information about India Infoline Pvt. Ltd., including:
- It describes the company's vision, values, business strategy, and customer strategy.
- The company offers a range of financial services including financing, wealth management, asset management, broking, and investment banking.
- It has a presence across India with over 2,500 locations and aims to serve retail customers as well as small and medium enterprises.
The document is a project report submitted by Abhishek Mallick for his Bachelor of Business Administration degree. It discusses his internship with OYO Rooms working on lead generation and enterprise partnerships. The report includes an introduction to OYO Rooms, the objectives and methodology of his project, observations and analysis from his work, key findings, and recommendations. It also includes declarations, certificates, acknowledgements and references sections.
Analysis on working capital management for bharti teletech ltd.Projects Kart
The document provides information about Bharti Teletech Limited (BTTL), including:
1) BTTL was established in 1985 through a technical collaboration with Siemens AG and manufactures telephones.
2) It has two manufacturing plants with an annual capacity of 5 million units.
3) BTTL commands a large market share in India and exports products to over 30 countries across 5 continents.
4) The company focuses on quality, innovation, and meeting customer needs through new product introductions and customizations.
The project deals with learning of Business environment of education sector with prime focus on Business development of the organization & its products. It is followed by understanding consumer behavior & Competitor analysis which will benefit the organization by increasing its market share in the future. Thorough analysis of marketing strategies used by different organizations in the sector has been done.
An internship report was submitted on projects completed at Oysterconnect.com. The intern worked on two projects - Spice Money and Shiksha. For Spice Money, the intern generated leads by convincing retailers to use Aadhaar-enabled payment systems and collected their information. For Shiksha, the intern took reviews from students about their colleges. The goal was to spread awareness of Spice Money's payment options and gather student feedback for Shiksha.
1) The document is a training report submitted by Vineet Kumar Saroj to fulfill the requirements for a Master of Business Administration degree from Sardar Patel University.
2) It details Vineet's two month internship at Anmol Industries Limited, a packaged food company focusing on biscuits, cakes, and cookies in Greater Noida, Uttar Pradesh.
3) Over the course of the internship, Vineet learned skills like Excel, GST filing, taxation, and financial modeling. He also participated in activities like warehouse audits. The training helped him develop professional skills and gain practical industry experience.
The Student Harsha Moolani is a Final Year Student of Dezyne E' cole college doing her BBA. This Project has been undertaken by the Student during her Summer Internship at H.M.T.. The Topic of her Internship is Performance Appraisal.
Dissertation report on performance appraisalMonika Deswal
This document appears to be a dissertation project report submitted for an MBA degree. It discusses a study conducted on employee satisfaction with performance appraisals at Hotel Samrat in New Delhi. The report includes an introduction to the hotel industry and Hotel Samrat, objectives and scope of the study, a literature review on relevant concepts like human resource management and performance appraisal, the research methodology used, data analysis and findings, and conclusions and suggestions.
- Rahul Sinha Roy has over 18 years of experience in retail sales, customer service, operations, IT, and healthcare. He has worked for companies like IMRB, Hutchison-Essar, Shoppers Stop, Dell, GE Money Bank, CareTel Infotech, Vodafone, and Cordlife India.
- He is currently a Senior Manager of Training & Development at CordlifeSciencesIndiaPvt.Limited, where he is responsible for training programs, materials, and evaluating trainers.
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Internship itc hotel
1. 1 | P a g e
A PROJECT REPORT ON
UNDERSTANDING THE ROLE OF FINANCE MANAGEMENT IN
FORTUNE PARK HOTEL (ITC ltd.)
AND
ERP IMPLEMENTATION IN FIRM
SUBMITTED TO
somlalit institute of business management
FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR
THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
UNDER
GUJARAT TECHNOLOGICAL UNIVERSITY
SUBMITTED BY
YASH R. RAVAL
ENROLLMENT NO.
(167780592081)
2. 2 | P a g e
DECLARATION
I, student of SOM-LALIT College of MANAGEMENT STUDIES, AHMEDABAD here by declaring that the
project report on FORTUNE PARK, AHMEDABAD, is a bonafide record submitted in COLLEGE of SOM-
LALIT MANAGAMENT STUDIES and a record of original work done by me.
I also declare that this report has not been submitted previously by me, fully or partially to the college.
Sign:
Place: Ahmedabad Date:
3. 3 | P a g e
Preface
In today’s era of cut throat competition MBAs are sure to have an edge over their counter parts.
During Post graduation in business administration program, students come in a direct contact with the real
corporate world through industrial training. An MBA program, provides its student with an in –depth study of
various managerial activities that are performed in organization.
A detail research/analysis of managerial activities conducted in various department, gives the student a
conceptually idea.
I have completed my Internship training in “FORTUNE PARK, AHMEDABAD” I have tried to collect some
important data and interpreted it in the best possible manner and best of ability.
4. 4 | P a g e
ACKNOWLEDGEMENT
This study will be incomplete without acknowledging our sincere gratitude to all those who have contributed in
some way or other in completing this project report.
I would, on the very onset, like to thank Mr.Sarvesh Dindore, Unit Finance Controller, Fortune
Park, Ahmedabad, ITC Limited And Mr. Hemant Sharma, Ex-Unit Finance Controller, Fortune Park,
Ahmedabad for providing me the opportunity for perform my summer internship program in the company.
I, would like to give my special Thanks and gratitude to Ms.Tina Maheshwari, Mr. Alkesh Patel,
Mr. Mihir shah, Ms. Geeta Chaturvedi, Mr. Vijay Pancholi for mentoring and Providing the necessary data and
information as and when Required throughout the project. Their support and encouragement has been a source
of inspiration for me and made my journey in FORTUNE PARK a delight.
I would also like to thank my professors and faculty members of som-lalit Institute for this great
opportunity for improve my knowledge over my theoretical as well as practical education.
My thanks also goes to my father, my classmates and seniors for extending me their help and
cooperation whenever I approached them.
5. 5 | P a g e
EXECUTIVE SUMMARY
Hotel industry which is basically my concern industry around which my project has to be revolved is really a
very complex industry. The project titled “A Project Report on Understanding the Finance Management
Activities of FORTUNE PARK HOTEL (ITC ltd.)” was a basically observation based project. The main motive
behind doing this project is to
Know the industry,
Have an overview of how FORTUNE PARK deals with different vendors and customers for payment
and receivables,
Know the working of executives and UFC (Unit Finance Controller) in Fortune park, Ahmedabad.
My project was totally based on Primary data. The project started with a visit to hotel’s accounts
department in order to gain information about all fluctuation and transactions of finance. This was done
thoroughly in order to understand the scope of Fortune Park, Finance Department.
My next step was to visit other subsidiary accounts like purchase department and store department for
the understanding basic day to day jobs and normal problems faced by them.
My findings through the project were that there is a huge market and there is a good scope of
improvement. Better service over the competitors and maintaining good price of that service can give a
good business to the Fortune park, Ahmedabad. And more revenue can generate if services given by
hotel are improved.
7. 7 | P a g e
Organization study is a part of MBA program which a student has to undergo training during
their course of study. It narrows the gap between theoretical knowledge and practical situations. The intention
of organization study is to have an exposure of real organization function and to strengthen the theoretical
knowledge. I did my training program at FORTUNE PARK, ITC GROUP HOTEL. During this period I was
able to experience the various function of finance department in the organization.
Objective of the Study
1. to understand various functions or activities undertaken in finance department of hotel business
2. To get practical exposure in the corporate world.
3. To have a proper balance between the theory and practical knowledge.
4. To study origin, mission vision, and status of the organization.
5. To study the functional departments exist in the organization
6. To evaluate the effectiveness of the finance department in organization
7. To understand Different elements regarding ERP implementation in organization
8. To Understand SAP usage in hotel Finance
Methodology adopted for the study
employees.
Limitation of the study
not disclosed
to spend more time in interacting
with them
9. 9 | P a g e
PROFILE OF THE COMPANY
Fortune Park Hotels Ltd. is a subsidiary of ITC Ltd. set up in 1995 to cater to the mid-priced market
segment in business and leisure destinations; it is today a professional Hotel Management company,
with forty-seven operating hotels and many more in various stages of completion.
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited.
As the Company's ownership progressively Indianite, the name of the Company was changed from
Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to
I.T.C.Limitedin1974.
Fast Moving Consumer Goods comprising Foods, Personal Care, Cigarettes and Cigars, Branded
Appar1el, Education and Stationery Products, Incense Sticks and Safety Matches, Hotels,
Paperboards & Specialty Papers, Packaging, Agri-Business and Information Technology - the full stops
in the Company's name were removed effective September 18, 2001. The Company now
stands rechristened ITC Limited.
The 'Fortune Hotels' brand is further sub-categorized as Fortune Select, Fortune Park, Fortune Inn
and Fortune Resort, thereby creating specialized products designed to suit the specific needs of various
segments. 'My Fortune' is the latest addition to the Fortune brand portfolio with the second hotel under
the brand now open in Bangalore. :
ITC's hotels (under brands including WelcomHotel) have evolved into being India's second largest hotel
chain with over 80 hotels throughout the country.
ITC is also the exclusive franchise in India of two brands owned by Sheraton International Inc.- The
Luxury Collection and Sheraton which ITC uses in association with its own brands in the luxury 5 star
segment. Brands in the hospitality sector owned and operated by its subsidiaries include Fortune
and Welcome Heritage brands.
MISSION
ITC LTD.
To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering
superior and sustainable stakeholder value.
ITC is a board-managed professional company, committed to creating enduring value for the
shareholder and for the nation. It has a rich organizational culture rooted in its core values of respect for
people and belief in empowerment. Its philosophy of all-round value creation is backed by strong
corporate governance policies and systems.
VISION
Sustain ITC's position as one of India's most valuable corporations through world class performance,
creating growing value for the Indian economy and the Company's stakeholders.
10. 10 | P a g e
INDUSTRY PROFILE
Industry characteristics
Major characteristics of the Indian hospitality industry are:
High seasonality
The Indian hotel industry normally experiences high demand during October – April, followed which the
monsoon months entail low demand. Usually the December and
March quarters bring in 60% of the year’s turnover for India’s hoteliers. However, this trend is seeing a change
over the recent few years. Hotels have introduced various offerings to improve performance (occupancy) during
the lean months. These include targeting the conferencing segment and offering lucrative packages during the
lean period.
Labour intensive
Quality of manpower is important in the hospitality industry. The industry provides employment to skilled,
semi-skilled, and unskilled labour directly and indirectly. In India, the average employee-to-room ratio at 1.6
(2008-09), is much higher than that for hotels across the world. The ratio stands at 1.7 for five-star hotels and at
1.9 and 1.6 for the four-star and three-star categories respectively. Hotel owners in India tend to “over spec”
their hotels, leading to higher manpower requirement. With the entry of branded International hotels in the
Indian industry across different categories, Indian hotel companies need to become more manpower efficient
and reconsider their staffing requirements.
Classification or types of hotels
The Ministry of Tourism has formulated a voluntary scheme for classification of operational hotels into
different categories, to provide contemporary standards of facilities and services at hotels. Based on the
approval from the Ministry of Tourism, hotels in India can divided into two categories:
1. DoT (Department of Tourism) classified hotels
2. DoT (Department of Tourism)unclassified hotels
Classified hotels
Hotels are classified based on the number of facilities and services provided by them. Hotels classified under
the Ministry of Tourism enjoy different kinds of benefits such as tax incentives, interest subsidies, and import
benefits. Due to lengthy and complex processes for such classification, a significant
portion of the hotels in India still remain unclassified. The Ministry of Tourism classifies hotels as follows:
Star category hotels
Within this category, hotels are classified as five-star deluxe, five-star, four-star, three-star, two-star and one-
star.
11. 11 | P a g e
Heritage hotels
These hotels operate from forts, palaces, castles, jungles, river
heritage buildings.The categories within heritage classification include heritage grand, heritageclassic and
heritage basic.
Licensed units
Hotels/establishments, which have acquired approval/license from the Ministry of Tourism to provide boarding
and lodging facilities and are not classified as heritage or star hotels, fall in this category. These include
government-approved service apartments, time sharing resorts, and bed and breakfast establishments.
Branded players
This segment mainly represents the branded budget hotels in the country, which bridge the gap between
expensive luxury hotels and inexpensive lodges across the country. Budget hotels are reasonably priced and
offer limited luxury and decent services. Increased demand and healthy occupancy have fuelled growth of
budget hotels. These hotels use various cost control measures to maintain lower average room rates without
compromising on service quality. Ginger Hotels, ITC Fortune, Hometel, and Ibis are some of the popular
budget hotels.
Other smaller players
These are small hotels, motels and lodges that are spread across the country. This segment is highly
unorganized and low prices are their unique selling
12. 12 | P a g e
Challenges faced by Hotel Industry
High competition:
Hotel industry is a ever blooming business. Travel and tourism keeps on growing every year. Travelers
always look for the perfect accommodation. Due to very high demand in accommodation, the
competition is also high in this business. In the crowded travel spots, you can see hotels at each and
every locality. High competition is a major challenge in this sector. To reap the high profits, new or
existing competitors could significantly reduce rates or provide greater conveniences, services or
amenities, or significantly expand, improve or introduce new facilities in the markets.
Improper marketing effort:
As the technology is improving day by day, there are lots of options available for the hotels in capturing
their market space online. But according to a recent survey in the year 2016, almost 70% of the hotels
across the world still follow the old marketing practices. Due to poor marketing efforts, sales and brand
recognition gets affected to high extent. The current trend denotes that hotels are slowly moving towards
OTA marketing and hotel management software to ease the workload and increase ROI.
Energy management difficulties:
Investing in renewable & eco-friendly resources can help in improving your hotel's overall profit
margin. Tourists prefer to accommodate themselves at an environmental-friendly hotel room rather than
a ordinary hotel room. With rising electricity prices and increasing pressure to cut carbon emissions,
saving energy is the no.1 on a hotelier’s priority list. There are two solutions for effective energy
management. One is voltage optimization, which works to reduce the incoming power to premises for
reducing the energy consumption and protect electrical equipment. The other is energy management
systems, which switch on and off appliances depending on the occupancy of a room.
Poor customer satisfaction:
With the lack of food resources and staffs, most of the hotels provide low-quality foods to their
customers. Once you get a bad recognition in your area / locality / city, it is very difficult to regain the
good position. From a hotelier's point of view, customer satisfaction is nothing but providing the good
quality foods, amenities, customer support, etc.
Lack of productive chefs and managers:
Finding the right cooks, labors and managers may be a difficult task, especially if you are small hotel
owner. Usually, five star hotels (luxurious accommodation providers) recruit professional cooks at high
cost. Hence it is a hectic job for the low-budget hotels to find the right persons.
High service rates:
Whether you provide a high-quality or low-quality service, make sure it is affordable to the end users.
High service rates can divert the visitors to your competitors. Provide lodging rooms at reasonable rates.
Service rate should match with the facilities of your hotel. Avoid taking commissions, high tax charges,
etc...
13. 13 | P a g e
Cleanliness issues:
Make sure the lodging rooms have clean, odour-free, eco-friendly and spacious conditions. This would
help to drive more visitors to your hotel. As hospitality businesses usually operate around the clock and
slow periods in which staff can conduct some minor cleaning are never guaranteed; many companies
choose to hire a professional cleaning service. This is the best way to ensure that all the requirements are
met and it doesn’t mean you have to take valuable time out of your day to enforce the fact that
everything is completed.
No proper transportation facility:
Hotels should be ready to provide transportation facility 24x7 from all the major pick-up points of a city
or town. Even a small cab / van from the major spots (airports, tourist destinations, etc) can make a huge
improvement in your hotel business management. Transport facility is a must for hotels situated in the
remote locations.
Security challenges:
This is one of the major problems in hotel industry. Different types of security challenges are,
1. General theft and other crime
2. Public violence
3. Terrorism
4. Armed robbery
5. Credit card fraud
6. Cyber crime issues
7. Identity theft
8. Sexual abuse on women
9. Racial discrimination
10. Risk of food poisoning
Lack of refreshing events and entertainment:
Most of the tourists who stay in a hotel room expect refreshing events & entertainment programs for
getting relaxation from the stressful conditions. Conduct events & entertainment shows on a regular
basis to attract more audience to your business. Go a mile extra to improve the re-visit rate of your hotel.
HISTORY & INTRODUCTION OF THE ITC HOTELS
ITC HOTELS Launched in 1975, ITC Hotels, India's premier chain of luxury hotels.
It pioneered the concept of 'Responsible Luxury' in the hospitality industry. It exemplary sustainability
practices.
It introduces world-class green practices with contemporary design elements to deliver the best of luxury
in the greenest possible manner.
ITC HOTELS Blends elements of nature to deliver a unique value proposition to guests, conscious of
their responsibility to be planet positive.
14. 14 | P a g e
The greenest luxury hotel chain in the world with all its ten premium luxury hotels LEED (Leadership in
Energy and Environmental Design) Platinum certified.
With more than 100 hotels in over 70 destinations, ITC Hotels has set new standards of excellence in the
hotel industry in Accommodation, Cuisine, Environment and Guest Safety.
The Company launched its Hotels business with the acquisition of a hotel in Chennai which was
rechristened 'ITC-Welcome group, Hotel Chola' (now renamed My Fortune, Chennai)
The objective of ITC's entry into the hotels business was rooted in the concept of creating value for the
nation. ITC chose the Hotels business for its potential to earn high levels of foreign exchange, create
tourism infrastructure and generate large scale direct and indirect employment..
ITC Hotels recently took its first step toward international expansion with an upcoming super premium
luxury hotel in Colombo, Sri Lanka. In addition, ITC Hotels also recently tied up with RP Group Hotels
& Resorts to manage 5 hotels in Dubai and India under ITC Hotels' 5-star 'WelcomHotel' brand and the
mid-market to upscale 'Fortune' brand.
ITC hotels have an exclusive tie- up with Starwood Hotels & Resorts in bringing its premium brand the
“Luxury Collection” to India.
The hotels which are part of this collection are:
ITC Grand Chola in Chennai,
ITC Maurya in Delhi,
ITC Maratha in Mumbai,
ITC Sonar in Kolkata,
ITC Grand Central in Mumbai,
ITC Windsor & ITC Gardenia in Bengaluru,
ITC Kakatiya in Hydrabad ,
ITC Mughal in Agra and
ITC Rajputana in Jaipur.
AWARDS TO THE ITC HOTELS
Bukhara at ITC Maurya Rated Among 'Best Hotels in the World’ by Conde Nast Traveler.
ITC Grand Bharat was ranked #1 amongst the top resorts in Asia for the second year in a row in the
coveted Conde Nast Traveler U.S. Readers’ Choice Awards.
ITC Hotels awarded the ‘Most Trusted Hotel brand’ in the Public Choice Honors category at the
Times Travel Honors
Best Overall Corporate Social Responsibility Performance: Institute of Public Enterprise
15. 15 | P a g e
ABOUT THE HOTEL DEVISIONAL
HEAD OF
ITC HOTELS LIMITED
Dipak Haksar,
(Divisional Chief Executive)
Dipak Haksar is Chief Executive, ITC Hotels & WelcomHotels. With a GMP from Cornell University,
Haksar began his career at ITC Maurya, New Delhi in 1978. During his long tenure in ITC, he has held
numerous positions managing both leisure and business properties. From ITC Maurya he moved to ITC
Windsor, Bangalore, a hotel he nurtured as Resident Manager before moving to ITC Rajputana, Jaipur as
Manager. This was followed by a stint at Umaid Bhawan Palace, Jodhpur as General Manager.
In 2001, Haksar was entrusted with the launch of ITC Maratha in Mumbai, which won the 'Best
Luxury Business Hotel' award in its first year of operation. It also earned Haksar the Hotel & Food Service
(H&FS) National Award for Best General Manager. He later moved to New Delhi as Vice President,
Operations, for luxury hotels and General Manager, ITC Maurya. In 2008, he was appointed Chief Operating
Officer of ITC Hotels and WelcomHotels.
16. 16 | P a g e
PROFILE OF
THE FORTUNE PARK, AHMEDABAD
STP
Segment High end travelers, global travelers, upscale segment
Target Group
Families, Couples from SEC A both Indians and foreigners,
business travelers
Positioning Warm & comforting five star luxury experience
Fortune Park, Ahmedabad is a contemporary business hotel located centrally in one of the greenest areas of the
city. The hotel is located near Ellis Bridge within short driving distance to the Sarkhej-Gandhinagar Highway
(S.G. Road) which houses some of the leading corporates and cutting-edge institutions. It offers comfortable
accommodation, a round the clock dining outlet, choice of banqueting venues.
Ahmedabad, fondly known as Amdavad, is Gujarat’s commercial capital with India’s second oldest stock
exchange. The city offers an artistic vigor with a vibrant culture that is known world-wide for its cuisine,
remarkable architecture, textiles and fine arts. Located on the banks of the Sabarmati River, it is one of the most
prosperous cities of India with thriving economy, good governance, safe environment and friendly people.
Fortune Park, Ahmedabad is well placed in this dynamic city and offers comfortable accommodation, a round
the clock dining outlet, a choice of banqueting venues along with warm and efficient service. Also, it provides
easy access to key areas and local attractions.
Fortune Park
Parent Company ITC Limited
Category Hotel
Sector Tourism & Hospitality
Tagline/ Slogan Responsible luxury
17. 17 | P a g e
LOCATION ADVANTAGES OF FORTUNE PARK
It has best travelers location as Half an hour drive (13 km) from Sardar Vallabhbhai Patel International
Airport and 20 min (5 km) from Ahmedabad Railway Station
Fortune park is Located in the he1art of the city, equidistant from the old city and the newly developing
Sarkhej-Gandhinagar Highway (S.G. Road).
The hotel is in the Commercial Business District with offices of leading corporates in a radius of 5 km
for the benefits of the business peoples to stay.
From fortune park there is 15 mins’ walk (4 km) to C.G. Road which is renowned for local as well as
multi-brand shops which are the attraction for outstation guests.
Opposite Gujarat College and next to the famous Law Garden which is best places to visit from hotel.
From hotel there is only 10 mins’ drive to the Sabarmati Riverfront which is nice place to watch beauty
of nature.
Close to Satvya Spine Hospital & Research Institute and C. H. Nagri Eye Hospital for medical visits.
Nearby attractions include the Sidi Sayed Mosque, Kankaria Lake and the fascinating Calico Museum
which is better advantage for guest who travels for the enjoyment.
18. 18 | P a g e
ORGANISATION STRUCTURE OF FORTUNE PARK
FORTUNE PARK, AHMEDABAD
(Source: HR department, Fortune Park, Ahmedabad)
GENERAL
MANAGER
FRONT
OFFICE
MANAGER
ASS. MGR. EDP,
DUTY MANAGER
& FOE
FRONT OFFICE
SUPERVISER
FRONT OFFICE
ASSISTANT
BELL BOY
EXEC.
HOUSEKEE
PER
HK
SUPERVISER
HK GSA/SR.
GSA
LAUNDRY & LINEN
ATTN.
EXEC. CHEF
SR. CDP/CDP
DCDP
COMMIS
KST
SUPERVISER
KITCHEN
STEWARDING
F & B
MANAGER
SR
CAPTAIN/CAPTAI
N
SR. GSA/GSA
BANQUET
MANAGER
BQT SALES
COORDINATOR
ACCOUNTS
MANAGER
IT MANAGER
IT EXECUTIVE
ACCOUNTS
EXECUTIVE
ACCOUNTS,PURCHAS
E & STORE
SUPERVISER
ACCOUNTS ASSISTANT
ASST.
MANAGER HR
HR ASSISTANT SECURITY
SUPERVISOR
DRIVER
CHIEF
ENGINEER
ENGINEERING
SUPERVISOR
TECHNICIAN,ELECTRICIA
N & PLUMBER
SALES
MANAGER
ASST. MGR.
SALES
SALES EXECUTIVES
19. 19 | P a g e
General Manager is the top level management in the Fortune Park, Ahmedabad. General Manager has power
and responsibility of the whole hotel. In Fortune Park Mr. Kunal Pahva is the General Manager. Under general
manager there is various department heads are there.
In fortune park there are various departments for doing routine work and manage the comfort level of the
customers and give them best services. There are departmental heads like Front office manager, Housekeeping
executive, executive chef, Food and beverages manager, accounts manager, ass. Manager HR, chief engineer,
sales manager etc.
Every departmental head is responsible for their departmental work. They have to maintain the decorum of the
hotel.
At hotel every morning general manager organizes the general meeting, where every HOD has to give their
presence. In general meetings new ideas, new systems and problems were going to be discussed. And every
manager gives their ideas for better solutions.
In general meeting both UFC and Ass. UFC gives their presence with the daily sales report for measuring the
performance of the unit. The DSR is made by the accounts receivables executive. This shows the occupancy
rate of the rooms and revenue at the end of the day. By reading or referring it general manager gives the
instructions for the further progress.
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S.W.O.T. ANALYSIS OF FORTUNE HOTELS
Strengths:-
Flagship hotels division of ITC Hotels
Awarded best employer in Asia in hospitality sector
Association with hospitality giant Starwood Hotels
High brand recall and popularity
Exclusivity and innovation in services with over 100 hotels pan India
Business as well as leisure hotel chains like ITC - Luxury Collection Hotels, WelcomHotel Sheraton
Hotels, Fortune Hotels & WelcomHeritage Hotels
Increasing bottom line and an Aspirational brand
Weaknesses:-
Limited global presence as compared to some other leading hotel chains
Huge number of competitors means limited market share
Opportunities:-
Growing market and tourism industry
Foreign Tourists Arrival constantly growing
Novel traveling concepts like Ecotourism, Medical Tourism
Threats:-
International chains like Ritz Carlton, Novotel are entering India
Economy fluctuations affect tourism
Competitors
1.Leela Hotels
2.Taj Hotels
3.Oberoi Group
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SERVICES AT HOTEL
ROOMS:
Fortune Park, Ahmedabad has 77 guest rooms including 36 Standard Rooms, 38 Fortune Club Rooms and 3
Suites including 1 Room for the differently abled people.
1. Standard Rooms
2. Fortune Club Rooms
3. Executive Suites
Rooms No. of rooms Area
Standard Rooms 36 21 sq. m
Fortune Club Rooms 38 28-30 sq. m
Executive Suites 3 33 sq. m
Price or Regular Rate of Rooms
Amount
Standard rooms 6,000
Fortune club 7,000
Suite 9,000
Grand Suite 10,000
GST Rate for the room calculations
1.INR 2500 and above(not applicable) 12%
2.INR 7500 and above 18%
3.INR 7501 and above 28%
In-room features:
These are the mainly basic amenities which are provided by the fortune park to their guests.
0
2,000
4,000
6,000
8,000
10,000
12,000
Standard rooms Fortune club Suite Grand Suite
22. 22 | P a g e
24 hour Room Service
Satellite LCD TV
Electronic safe
Tea/ coffee maker
High speed Wi-Fi
Soft mini bar
Direct dial STD/ISD
Daily newspaper
Iron and ironing board (on request)
Complimentary fruit platter
SERVICES OFFERED AT THE HOTEL:
Business centre services
Concierge
Doctor on call (24 hour)
Airport transfers
Travel desk
Currency exchange
Valet service
In-house laundry
Baby-sitting services
COMPLIMENTARY FACILITIES AND AMENITIES PROVIDED BY THE HOTEL:
Buffet Breakfast
Car Parking
Gymnasium
In-room Tea/ Coffee Maker
Toiletries
Safe Deposit Vault in the Room
Dental Kit (Fortune Club & Executive Suite Rooms)
Hair Dryer
Fruit Platter in the Room
COMPLIMENTARY FACILITIES AND AMENITIES AVAILABLE TO THE HOTEL ON REQUEST:
Cell Phone Charger
Sewing Kit
Comb
Band Aids
Loofah Kit
Shaving Kit
Weighing Scale
Iron & Ironing Board
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MEETINGS & CONFERENCES
Owing to its prime location in the central business district of the city, Fortune Park, Ahmedabad is a
preferred choice for hosting conferences, meetings, corporate events as well as social gatherings. The hotel
provides a complete range of conferencing and banqueting facilities for up to 200 pax backed by professional
support to ensure successful and seamless events. The halls are outfitted with the audio-visual equipment,
picture screens, overhead video and slide-projectors and audio microphone systems.
FINANCE DEPARTMENT STRUCTURE IN
FORTUNE PARK HOTEL, AHMEDABAD
There are many users of accounting and financial information. It takes quite a bit of work to make sure
that records are kept properly for all parties. Some hotels may have a director of finance, whereas others may
have a controller; some of the other functions may not exist in a hotel, such as a food and beverage department.
For most limited-service hotels, the general manager may assume the function of the controller, or that function
will be centralized at a district or regional office. Following is a short description of some of the accounting
functions in a hotel.
UFC
ASST. UFC
ACCOUNT,PURCHASE AND STORE
SUPERVISER
ACCOUNT
ASSISTANT(CASHIER)
IT MANAGER
IT EXECUTIVE
24. 24 | P a g e
UFC (UNIT FINANCE CONTROLLER):-
For some hotels, the position of controller has been elevated to director of finance, who is then also
responsible not just for the accounting and purchasing functions but also for information technology. This
individual sits on the executive committee of the hotel and works with the general manager and other executive
committee members to make decisions for the operation.
Roles and duties of UFC and AUFC:-
In Fortune Park, Ahmedabad there is a unit financial controller who is the responsible for the all
financial activities of the hotel.
Vendor creation
Purchase department is under responsibility of the UFC, so to minimize the purchase cost of any material is the
responsibility of the UFC. Whenever any new vendor is needed to do the business with hotel, purchase manager
drives him and do the meeting with UFC. UFC negotiate with them, from multiple vendors he chose the correct
vendor who has the minimum price for the same goods. Contract building is also done by the UFC himself with
any vendor.
To create new regular vendor for the Fortune park hotel this documents are mandatory or required,
1. Common Banking Declaration
2. Pan card (copy)
3. Cancelled cheque
4. Vendor form dually filled
5. Stamped and signed Declaration of vendor
6. Service/VAT registration Certif.(before GST)/GST number (After GST)
7. FSSAI certificate (if available)
Apart from the purchase of goods there is a service vendors are also needed in fortune park, service like
paint, or service like paste controllers, renovation is done by the local vendors. To do contract with them
quotations with conditions are going to be received by the purchase manager and then from received proposals
UFC select the best vendor with matching requirement of the Fortune hotel and do the meeting with them and
try to negotiate for cost minimization.
Control over the payables and receivables
UFC have the responsibility of the payments and receivables of the hotel. Payable executive and
receivable executive are under the power of UFC. In Fortune Park hotel, assistant unit finance controller is also
there for better management of the unit’s financial work like payables and receivables.
There is a two types of the payments are done to the vendors.
1. NEFT (national electronic fund transfer)
2. Manual Cheque
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Issue a cheque behalf of firm to the suppliers
UFC is the person who has the authority to issue any cheque behalf of the payables. Without sign of the UFC
and General Manager no cheque is valid for payment through the cheques.
Approvals to the reimbursements
Payment like reimbursement to the Sales executive is also done after the approval of the UFC. The concerned
bills are to be received with the request of the reimbursement and that bills are going to be verified by the UFC
and if it looks perfectly genuine then only payable can do NEFT to the sales executives. Sometime
reimbursement is done by cash also. In this cashier pays money to the sales executive and make debit note in
the system for reimbursement.
Reimbursement can be done to any employee who done transaction for the hotel work, but all are must
be genuine. This gentility check is done by the UFC. And then only cashier van pays money.
Checking of DSR
In Fortune Park, checking and verification of the DSR (daily sales report) is done by the UFC on the daily
bases. DSR is the document which is creates by at the end of the day by the Receivables executive. DSR is
made all the day by the receivables executive. Which, contains topics like daily sales, revenue performance, f &
B revenue, Manager’s flash, Trial Balance and guest ledger details.
More Details of the DSR are given below in the receivables part.
AUFC is the integral part of the finance department. He was the helping hand of the UFC and Assistant
unit financial controller divides the various functions to be performed so that the workload will be even. For
daily transaction, special projects, budgets, analysis and the like.
In most of small transactions of the Fortune Park AUFC sign is acceptable. Like reimbursement of the
small expenses like petrol allowances can be paid by the cashier after the sign of AUFC.
AUFC is keep on watching on the both payable and receivables data of the Fortune Park. He keep on
tracking and suggesting for the better management of both the work.
He ensures that every vendor get payment on right time and at the right amount. AUFC checks the all
bills and debits of the payable department and then only approves it. AUFC is verify all the transactions of the
front office, purchase department, banquet department, housekeeping department etc. he ensures that all the
debit entries done at proper concern department only. AUFC ensures that every bill transactions can get proper
tax additions.
AUFC also keep on verifying the amount and work of account receivables also. AUFC guide the
receivable executive for all the concerns or all the unnecessary problems. He ensures that every customer get
the perfect bill with proper adjustment. He ensures that every entry of the account receivables is done at the
proper accounts in the system.
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AUFC is the responsible for the regular payments and proper receivables entries in the system. For
proper taxpaying to the government is also responsibility of the AUFC. All legal works of the Unit is managing
by the AUFC only.
Accounts Payable
(Jobs and roles)
A key area in accounting, accounts payable ensures that all bills are paid on time and all discounts
are taken minimizing the costs of the hotel.Accounts payable executive work closely with the purchasing
department to verify that all invoices to be paid are indeed invoices of the hotel.
Accounts payable executive is the one who pays bills of the different transactions done by the unit.
In Fortune Park, payable executive pays different types of transaction, like
1. Service bills
2. Goods bills
3. Reimbursement
4. Salary
5. Taxes(Before GST)
-luxury tax,
-service tax,
-excise on bakery,
-VAT/Sales tax
6. Electricity bills
Service bills:
In Fortune Park Ahmedabad engineering works, printing works, painting works, drainage cleaning etc. this
service bills are made for getting services by the hotels. For Any improvement in present services, service bills
are going to be made.
Before GST there was 14% service tax. 0.5% krishi kalian cess and 0.5% swatch bharat cess.
Now after Goods and Service tax implication CGST and SGST implied on service bills.
Goods bills:
Not only in in fortune park Ahmedabad but everywhere, whenever any goods like food, beverages, engineering
parts, fruits, stationary, crockery, butchery, bakery items, housekeeping accessories, chemicals, etc. are going
to be purchased , vendor creates bills of goods which is send to the customer for the payment process.
Reimbursement:
Reimbursement is the act of compensating someone for an out-of-pocket expense by giving them an amount of
money equal to what was spent.
27. 27 | P a g e
Sales and purchase team works for their respective jobs and in completion of the job many expenses
are getting paid by the employee for unit work. These bills are paid by employees on behalf of the unit. So to
refund or repay that amount to the employee is called as reimbursement.
Before paying reimbursement claimed amount by payable, the sign or approval of UFC is
mandatory. UFC verifies all the bills and approve or release the payment.
Salary:
A salary is a form of periodic payment from an employer to an employee, which may be specified in an
employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately,
rather than on a periodic basis.
Salary is a fixed amount of money or compensation paid to an employee by an employer in
return for work performed. Salary is commonly paid in fixed intervals, for example, monthly payments of one-
twelfth of the annual salary.
A salary payment to the employees is done by the payable executive. For the payment of the salary things
like increment and transfers are to be taken in the consideration for the removal of errors in payments.
Salary payments are made as per the HR department note. Most of the time salary account is going to be
directly credited to the employee’s salary accounts in the banks.
Taxes payments:
Luxury tax:-
A luxury tax is a tax placed on products or services that are deemed to be unnecessary or non-essential. This
type of tax is an indirect tax in that the tax increases the price of the good or service and is only incurred by
those who purchase or use the product. Luxury tax mainly paid by the hotels and lodging house.
A luxury tax is a tax on luxury goods: products not considered essential. A luxury tax may be
modeled after a sales tax or VAT, charged as a percentage on all items of particular classes, except that it
mainly affects the wealthy because the wealthy are the most likely to buy luxuries such as expensive cars,
jewelry, etc.
Luxury tax return details filed by the payable executive and personally handover to the collector’s office.
Luxury tax is still there after GST.
Service tax:-
After GST service tax is no more applicable to the any services. Now CGST and SGST is there but then also
before GST it’s there so I studied about it in my internship program.
Service tax was a tax levied by Central Government of India on services provided or
agreed to be provided excluding services covered under negative list and considering the Place of Provision of
Services Rules, 2012 and collected as per Point of Taxation Rules, 2011 from the person liable to pay service
tax. Person liable to pay service tax is governed by Service Tax Rules, 1994 he may be service provider or
service receiver or any other person made so liable.
Service tax is only liable to be paid in case the total value of the service provided
during the financial year is more than 10 lakh if the value of services provided during a proceeding financial
year is less than 10 lakh only then this exemption is applicable in the current financial year. It is optional for he
wants to avail this exemption or not.
Excise on bakery:
Central Excise taxation of Bakery products such as cake, pastries etc., bedevils a lot of entrepreneurs along with
even those in the organized sector. Cake & pastry products are covered under chapter 19 of the central excise
28. 28 | P a g e
tariff, 1985, while the basic duty is 16%, exemptions are also available (including SSI exemption) further, and
the valuation of many of the products is to be done on mrp basis. The tariff, mrp & exemption notifications are
being attached.
VAT/Sales Tax:
A value-added tax (VAT), is a type of general consumption tax that is collected incrementally, based on the
surplus value, added to the price on the work at each stage of production, which is usually implemented as a
destination-based tax, where the tax rate is based on the location of the customer. VATs raise about a fifth of
total tax revenues both worldwide and among the members of the Organisation for Economic Co-operation and
Development (OECD).
Electricity bills
Electricity bill of the unit is paid by the payable executive at the end of every 2 months. In fortune park
Ahmedabad torrent power provides the electricity.
Mobile CUG bills
CUG connection to the managers which is provided by the company is paid by the payable department.
Sometime employee left or transferred then its responsibility of payable and hr that the payment of his CUG
collection is not made by the company.
ACCOUNTS RECEIVABLES:-
Accounts receivables executive is that, which manage the receivables transactions in the systems. In
Fortune park hotel there are many ways of the revenue generation which is credited in the accounts of the hotel.
Account receivable executive roles and jobs.
1.) First and foremost job of receivables is Taking all bills from the departments, and
departments are
Gardenia(restaurant)
Banquet
Room service
Laundry
Gardenia in HSE
Room service
These are the bills generated by the system from the daily transactions with the guest and it shows that
which department gives how much revenue in the day.
Every bills have the invoice number , executive first manually check that if all bills are available or not. If
anything is missing than it’s requested urgently from concerned department.
If everything goes good than executive check it and enter the transactions by journal entries in the systems.
And then those bills are getting stored for future requirements.
29. 29 | P a g e
2.) Identity check from the registration card of customer
Registration card is the card which is made by the front office, of the customer’s details. This contains name of
the guest, name of company, GSTIN no., passport details, and identity proof, room rate, room no. etc.
With these details copy of the identity proof is must be attached by the front office manager. If any copy is
missed then its responsibility of receivables to ensure that front office manager provides the needed copies.
3,) doing entries of the credit card payments in the system as credit or revenue.
In the credit card details there is a document no. , document date, and currency and tax are already
written.
To register the received payments from the credit card executive passes journal entries in the
system. The first journal establishes the amount due from the credit card company as an accounts receivables.
The cash less fees is received from the credit card company, the account receivables balance is cleared and
credit card fee for processing is charged to the credit card expense account.
Customer deposits money to the bank, and do transaction by the credit or debit card and then bank
pays to the Fortune Park. So in the journal entries credit card company is debited and Fortune park is been
credited.
For future follow up all the credit card bills generated from the swiping machines are stored
according to the date of transactions in the file.
Does entries in the different credit card company is done by the receivables. After doing journal
entries in the system executive make top sheet and take the signs of the UFC on the same. UFC approves the
transaction after verification of bills and system derived reports.
4.) Follow up BTC for the payments:
BTC (Business to customer) clients are the customer companies. Means fortune park do the agreement with
those companies for the business. Means if any point of time employee of those companies wants to stay in the
hotels in Ahmedabad than they can easily stay in Fortune park, Ahmedabad.
Companies can get easily follow-up of employee’s staying cost. Most of the BTC payments are made by the
cheque .
Company cheques and bills transactions are managed by the marketing/sales executives most of the time. In
BTC every rooms transaction is given as per the estimate given by the marketing officers or executive.
To do the follow up of payments are the responsibility of the marketing executive who make that company a
client of the Fortune Park, Ahmedabad.
Performa invoice are to be sent with the bank details by the executive for the recovery of the payments. bills are
send by the mail as well as in hard copy format also.
5.) Commission related transactions
30. 30 | P a g e
In Fortune Park, MMT (Make My Trip) is the official partner for online bookings of rooms. In this MMT give
the privilege to the customers and bank to do the online booking. MMT received money from the guest and then
after deducting their commission, pays to the Fortune Park.
Apart from paying commission in receivables, Fortune park also receive the commission from the travel world.
Whenever any company trip or guest trip is given by the Fortune Park to the Travel Worlds, Travel worlds Pays
Commission to the Fortune Park, for business given by them.
6.) Indoor banquet and ODC payment follow-up
Indoor banquet means any event is done in the premises than it’s the indoor banquet. ODC means Outdoor
Catering, Fortune Park do outdoor caterings. And do the follow up for the payments is the responsibility of
banquet manager and receivables executive.
7.) The last but not least, making DSR at the very end of the day is responsibility of the receivables
executives.
DSR is the daily sales report which is prepared by executive from system derived reports.
Purchase Department
While operating a hotel is supposed to be a difficult task, managing the entire
procurement process (for such a unit) is even more so.
The purchase department handles the task of procurement yet all departments play a crucial role
in it. That said technology ensures that inter-departmental activities takes place flawlessly. Although purchase
has now become dependent on technology for managing inventories and order status, it was originally a manual
job. From selection of products to deciding on a vendor, this department rests on the human ability of in most
modern hotels, the installation and service of elevator systems is generally the province of the elevator
manufacturer, and hotels typically have extended maintenance agreements for the elevators. Most engineering
departments, however, closely monitor the operation of the elevator systems. In modern high-rise hotels with
high speed elevator service, the slightest problem with that service should be quickly and easily identified and
reported to the contractors. It is generally the responsibility of the engineering department to monitor these
services and their contracts closely and carefully.
31. 31 | P a g e
RECEIVABLES AND STORE
Being part of back end processes and hidden behind the glitz and glamour of the hospitality industry
is Inventory Management. A rather important module, inventory management lets managers automate the
process of tracking rooms, and food and beverage consumption in the hotel.
With the arrival of hospitality technology solutions, automation of the inventory system means lesser
work and greater visibility into stock, automated reminders as stock levels diminish, faster decision making on
which vendor delivers what, at what price point and thus greater efficiency on stock maintenance in the hotel.
In Fortune Park Ahmedabad, SAP ERP system is used in store for batter management of store and
inventory. The process of receivables and store is not much more tedious job. But uncertain demand is the only
thing which affects the management of the store and inventory.
Store and inventory management comes under the Unit financial controller in Fortune Park,
Ahmedabad. In the Receivables and store FIFO (First in First Out) method is used, So that the goods with near
expiry date will be issued first for consumption.
Store supervisor have to prepare,
(i)Month end Food Cost Reconciliation Report,
(ii)Month end Beverage Cost Reconciliation Report
Sometimes due to emergency, some items bought and handed over to kitchen/Bar for the banquet function
or some other purposes. This may be brought him notice after some days. So, he has to prepare the
reconciliation statement every month end.
Process to issue goods from inventory
Every time to get anything from store every department have to file purchase request in the system which is
going to be approved by the Head of the concern Department, then only store manager can issue a goods to the
department who done purchase request. If HOD is not approving the request then store manager is not able to
issue goods. It’s the mandatory process for issue anything from store. After issuing goods to the department
store supervisor have to debit it from system to the concern department.
In the month end he has to high-light the Non moving items, nearer expiry items, high price variation items,
Non available items and anything if he feels importance.
At every quarter ending manual checking of inventory is getting done by the UFC by himself with store
manager and compare the system derived report and physically available goods in the store. I personally did that
when I’m in my internship program. If any deficit happens in the store, store manager is the responsible for that
deficit.
The system derived report looks like this with the column of actual and difference between both system and
actual quantity of the store. And it must be signed by the UFC and ASS. UFC for the further procedures.
32. 32 | P a g e
RECEIVING
Store supervisor is responsible for receiving the goods on behalf of the hotel; ultimately cash is
converted as goods. He ensures all the receipts are verified against the purchase order as per the standard and
specifications. He has to involve security to check the quantity and involve the concerned department
representative to ensure the quality. After receiving he has to prepare the Daily Goods Receiving Note. Ensure
the bills are duly stamped and signed by Security Staff, Concerned Dept. Representative and forwarded.
he has to maintain a discrepancy register; Whenever any discrepancy happened in the quality or
specification while receiving the material from the supplier it should be noted in that and duly signed by the
supplier, storekeeper/purchase Executive and the concerned dept.
Checking of the seal of the pallets and durability of good is must before getting goods from the
supplier.
33. 33 | P a g e
Profit & Loss account of ITC
------------------- in Rs. Cr. -------------------
Mar 17 16-Mar 15-Mar 14-Mar 13-Mar
12 mths 12 mths 12 mths 12 mths 12 mths
INCOME
Revenue From Operations
[Gross]
55,001.69 51,582.45 49,964.82 46,712.62 41,809.82
Less: Excise/Sevice Tax/Other
Levies
15,359.78 15,107.18 13,881.61 13,830.06 12,204.24
Revenue From Operations [Net] 39,641.91 36,475.27 36,083.21 32,882.56 29,605.58
Other Operating Revenues 446.77 362.12 424.19 356.04 295.69
Total Operating Revenues 40,088.68 36,837.39 36,507.40 33,238.60 29,901.27
Other Income 1,985.91 1,803.74 1,543.13 1,107.14 938.7
Total Revenue 42,074.59 38,641.13 38,050.53 34,345.74 30,839.97
EXPENSES
Cost Of Materials Consumed 11,765.56 11,054.75 10,987.83 10,263.28 8,936.21
Purchase Of Stock-In Trade 3,566.57 2,590.08 3,898.66 3,021.47 3,375.92
Changes In Inventories Of
FG,WIP And Stock-In Trade
644.17 58.17 -214.53 -128.41 -246.35
Employee Benefit Expenses 2,444.31 1,883.51 1,780.04 1,608.37 1,387.01
Finance Costs 22.95 49.13 57.42 2.95 86.47
34. 34 | P a g e
Depreciation And
Amortisation Expenses
1,038.04 1,034.45 961.74 899.92 795.56
Other Expenses 7,090.03 7,012.65 6,581.85 6,019.05 5,820.97
Total Expenses 26,571.63 23,682.74 24,053.01 21,686.63 20,155.79
Profit/Loss Before Exceptional,
ExtraOrdinary Items And Tax
15,502.96 14,958.39 13,997.52 12,659.11 10,684.18
Profit/Loss Before Tax 15,502.96 14,958.39 13,997.52 12,659.11 10,684.18
Tax Expenses-Continued Operations
Current Tax 5,285.65 4,948.76 4,043.28 3,936.64 2,989.06
Deferred Tax 16.41 166.47 353.15 25.84 289.8
Tax For Earlier Years 0 -1.55 -6.64 -88.58 -13.07
Total Tax Expenses 5,302.06 5,113.68 4,389.79 3,873.90 3,265.79
Profit/Loss After Tax And
Before ExtraOrdinary Items
10,200.90 9,844.71 9,607.73 8,785.21 7,418.39
Profit/Loss From Continuing
Operations
10,200.90 9,844.71 9,607.73 8,785.21 7,418.39
Profit/Loss For The Period 10,200.90 9,844.71 9,607.73 8,785.21 7,418.39
OTHER ADDITIONAL INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 8.43 12.26 12 11.09 9.45
Diluted EPS (Rs.) 8.38 12.2 12 10.96 9.33
VALUE OF IMPORTED AND
INDIGENIOUS RAW MATERIALS
Imported Raw Materials 0 1,345.56 1,523.07 1,249.66 1,071.64
Indigenous Raw Materials 0 9,709.19 9,464.76 9,013.62 7,864.57
STORES, SPARES AND LOOSE TOOLS
35. 35 | P a g e
Imported Stores And Spares 0 69.93 66.13 85.77 65.89
Indigenous Stores And Spares 0 178.52 165.2 151.52 153.42
DIVIDEND AND DIVIDEND
PERCENTAGE
Equity Share Dividend 6,840.12 6,840.12 5,009.70 4,771.91 4,148.46
Tax On Dividend 1,333.52 1,392.48 1,019.86 810.99 705.03
Equity Dividend Rate (%) 475 850 625 600 525
Source : Dion Global Solutions Limited
36. 36 | P a g e
Balance Sheet of ITC
------------------- in Rs. Cr. -------------------
Mar '17 Mar '16 Mar '15 Mar '14 Mar '13
Sources Of Funds
12 mths 12 mths 12 mths 12 mths 12 mths
Total Share Capital
Equity Share Capital 1,214.74 804.72 801.55 795.32 790.18
Reserves 1,214.74 804.72 801.55 795.32 790.18
Networth 44,126.22 32,071.87 29,881.73 25,414.29 21,444.92
Secured Loans 45,340.96 32,876.59 30,683.28 26,209.61 22,235.10
Unsecured Loans 0.01 3.6 0.02 0.14 0
Total Debt 17.99 25.83 38.69 51 66.4
Total Liabilities 18 29.43 38.71 51.14 66.4
45,358.96 32,906.02 30,721.99 26,260.75 22,301.50
Application Of Funds
Gross Block
Less: Revaluation Reserves 16,843.67 22,256.11 21,392.12 18,239.65 16,679.17
Less: Accum. Depreciation 0 52.41 52.41 52.41 52.75
Net Block 1,963.43 8,051.58 7,213.63 6,226.91 5,469.83
Capital Work in Progress 14,880.24 14,152.12 14,126.08 11,960.33 11,156.59
Investments 3,537.02 2,500.83 2,114.14 2,295.73 1,487.79
Inventories 18,585.29 12,854.24 8,405.46 8,823.43 7,060.29
Sundry Debtors 7,863.99 8,519.82 7,836.76 7,359.54 6,600.20
Cash and Bank Balance 2,207.50 1,686.35 1,722.40 2,165.36 1,163.34
Total Current Assets 2,747.27 6,563.95 7,588.61 3,289.37 3,615.00
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Loans and Advances 12,818.76 16,770.12 17,147.77 12,814.27 11,378.54
Total CA, Loans & Advances 4,394.64 3,188.71 2,349.80 3,283.22 2,881.47
Current Liabilities 17,213.40 19,958.83 19,497.57 16,097.49 14,260.01
Provisions 8,582.71 8,129.22 7,214.45 6,921.52 6,404.43
Total CL & Provisions 274.28 8,430.78 6,206.81 5,994.71 5,258.75
Net Current Assets 8,856.99 16,560.00 13,421.26 12,916.23 11,663.18
Total Assets 8,356.41 3,398.83 6,076.31 3,181.26 2,596.83
45,358.96 32,906.02 30,721.99 26,260.75 22,301.50
Contingent Liabilities
Book Value (Rs) 2,837.17 2,648.78 1,864.99 1,916.00 2,149.23
37.33 40.85 38.28 32.95 28.14
Source : Dion Global Solutions Limited
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Key Financial Ratios of ITC
------------------- in Rs. Cr. -------------------
Mar 17 16-Mar 15-Mar 14-Mar 13-Mar
PBIT Margin (%) 38.72 40.73 38.49 38.09 36.02
PBT Margin (%) 38.67 40.6 38.34 38.08 35.73
Net Profit Margin (%) 25.44 26.72 26.31 26.43 24.8
Return on Net worth / Equity (%) 22.49 29.94 31.31 33.51 33.36
Return on Capital Employed (%) 21.52 28.18 29.54 31.68 31.31
Return on Assets (%) 18.81 19.88 21.73 22.39 21.8
Asset Turnover Ratio (%) 73.94 74.39 82.6 84.72 87.89
Liquidity Ratios
Current Ratio (X) 3.59 1.65 2.05 1.82 1.7
Quick Ratio (X) 2.44 1.07 1.38 1.18 1.06
Inventory Turnover Ratio (X) 5.1 4.32 4.66 4.52 4.53
Dividend Payout Ratio (NP) (%) 67.05 69.48 52.14 54.31 55.92
Dividend Payout Ratio (CP) (%) 60.86 62.87 47.39 49.27 50.5
Earnings Retention Ratio (%) 32.95 30.52 47.86 45.69 44.08
Cash Earnings Retention Ratio (%) 39.14 37.13 52.61 50.73 49.5
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ERP IMPLIMENTATION IN FIRM
Enterprise Resource Planning (ERP) software applications have emerged as a means for automating
repetitive processes and providing managers with a more comprehensive yet timely view of their operations.
ERP have superior information processing capabilities combined with an ability to solve the fragmentation of
information in organizations. In concept, they are an attractive proposition to a hotel because of the current state
of fragmentation in hospitality information systems. However, the centralization of control over information
and standardization of processes brought about by an ERP can affect the service flexibility of a hotel. The need
for greater flexibility in hotels is well documented. This paper draws from hospitality management and IS
literature and presents a set of propositions regarding the impact of real time information flows enabled by an
ERP in a hotel.
In Fortune Park Ahmedabad SAP system were used as ERP system.
INTRODUCTION
Over the years, hotel information systems have been fragmented, with applications catering to
specific functions with little or no integration between each system. At large, the hospitality industry is
hampered by the predominance of legacy systems which are hard to update and often incompatible. Enterprise
resource planning systems (ERPs) have been in the limelight because of their integrated approach and their
ability to solve the fragmentation of information in organizations. Designed primarily for manufacturing based
organizations in the early eighties, these systems have expanded in scope to cover the service and retail sectors
in industry in recent years.
To the hospitality industry, ERPs are attractive given the current state of fragmentation of information
systems in hotels. An important feature of an ERP is that it functions from a single comprehensive database for
the entire organization, with real time connectivity between different functions. Real time connectivity means
that when data is entered regarding one of its functions, data in related functions is changed immediately too.
For example, when a salesperson executes a sale, information is directly changed in the production, inventory
and accounting functions of 4 the organization too. Obviously, ERPs alter the structure, processes and culture of
an organization.
This report will first review the hotel organization and the elements of an ERP. Next, it will present a set of
propositions that address the impact of an ERP system on an individual hotel. Finally, the authors will suggest
avenues for future research in the area of information systems and hotel organization. ERPs are prohibitively
expensive solutions for an individual hotel and this report does not make a business case for it. It views the
hotel organization from a theoretical perspective and relates the impact of real time integration enabled by ERPs
from a hospitality operational viewpoint.
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FEATURES OF ERPs
ERPs are multifunctional in scope, integrated in nature and modular in structure SAP AG based in
Walldorf, Germany, is the leading provider of enterprise resource planning software solutions that integrate the
processes within and among enterprises and business communities. Since the introduction of Web interfaces
and a scalable, Internet-ready architecture in 1996, SAP has been working with companies making the transition
to the Internet business model. Table lists the modules currently available in SAP R/3, SAP’s ERP that serves as
a typical picture of ERP functionality 5 currently available in industry (Norris et al, 1998). Each of these
functions is managed through an integrated single database approach and, most importantly, through a uniform
user interface.
Modules currently available in SAP
Financials Human Resources Operations and
Logistics
Sales & Marketing
Accounts Receivable
& Payable
Asset Accounting
Cash management
and forecasting
Cost element and
cost-center accounting
Executive
Information System
Financial
Consolidation
General Ledger
Product-cost
accounting
Profitability analysis
Profit Center-
Accounting
Standard and period
related costing
Human Resources
time accounting
Payroll
Personnel Planning
Travel Expenses
Inventory
management
Materials
Requirement Planning
Materials
Management
Plant Maintenance
Production
Planning
Project
Management
Purchasing
Quality
Management
Routing Management
Shipping
Vendor Evaluation
Order Management
Pricing
Sales Management
Sales Planning
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MODULE OF ERP USED IN ORGANIZATION
Ideally, ERP delivers a single database that contains all data for the software modules, which would include:
Manufacturing Engineering, bills of material, scheduling, capacity, workflow management, quality
control, cost management, manufacturing process, manufacturing projects, manufacturing flow
Supply chain management Order to cash, inventory, order entry, purchasing, product configuration,
supply chain planning, supplier scheduling, inspection of goods, claim processing, commission
calculation
Financials General ledger, cash management, accounts payable, accounts receivable, fixed assets
Project management Costing, billing, time and expense, performance units, activity management
Human resources Human resources, payroll, training, time and attendance, roistering, benefits
Customer relationship management - Sales and marketing, commissions, service, customer contact
and call center support
Data warehouse - and various self-service interfaces for customers, suppliers, and employees
Access control - user privilege as per authority levels for process execution
Customization - to meet the extension, addition, change in process flow
ERP Users
- The users of ERP systems are workforce of the organization at all levels, from workers, supervisors, mid-level
managers to executives.
Hardware and Operating Systems
- Many huge ERP systems are UNIX based. Windows NT and Linux are other popular operating systems to run
ERP software. Legacy ERP systems may use other operating systems.
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ERP Vendors
Advantages of ERP
here are a number of powerful advantages to Enterprise Resource Planning. It has been used to solve a number
of problems that have plagued large organizations in the past.
1. Efficiency:
It should first be noted that companies that fail to utilize systems such as ERP may find themselves using
various software packages that may not function well with each other. In the long run, this could make the
company less efficient than it should be.
2.Design process
There are a number of processes that a company may need to integrate together. One of these processes is called
design engineering. When a company is in the process of designing a product, the process of actually creating it
is just as important as the end result. ERP can be useful in helping a company find the best design process
3. Order tackling
Another area where ERP can be useful is order tracking. When acompany receives orders for a product, being
able to properly track theorders can allow the company to get detailed information on their customers and
marketing strategies. If different software packages are being used, this data may not be consistent.
4. Accounting
application:Perhaps one of the most important advantages of ERP is itsaccounting applications. It can integrate t
he cost, profit, and revenue information of sales that are made, and it can be presented in a granular way
5. Manufacturing:Enterprise
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Resource Planning can also be responsible for altering how a product is manufactured. A dating structure can be
set up which can allow the company to be informed of when their product should be updated. This is important,
because it will allow the company to keep better track of their products, and it can allow the products
themselves to be produced with a higher level of quality
6. Security:
Another area where ERP can be an indispensable tool is the area of security. It can protect a company against
crimes such as embezzlement or industrial espionage.
ERP Systems centralize the data in one place. Benefits of this include:
Eliminates the problem of synchronizing changes between multiple systems
Permits control of business processes that cross functional boundaries
Provides top-down view of the enterprise (no "islands of information")
Reduces the risk of loss of sensitive data by consolidating multiple permissions and security models
into a single structure.
Some security features are included within an ERP system to protect against both outsider crime, such as
industrial espionage, and insider crime, such as embezzlement. A data-tampering scenario, for example, might
involve a disgruntled employee intentionally modifying prices to below-the-breakeven point in order to attempt
to interfere with the company's profit or other sabotage. ERP systems typically provide functionality for
implementing internal controls to prevent actions of this kind. ERP vendors are also moving toward better
integration with other kinds of information security tools.
Disadvantages of ERP:
However, with all the advantages that ERP offers, there are a number of disadvantages as well.
1. High investment
One of the biggest disadvantages to this technology is the cost. At this time, only large
corporations can truly take advantage of the benefits that are offered by this technology. This leaves
most small and medium sized businesses in the dark. A number of studies have shown that the biggest
challenges companies will face when trying to implement ERP deals with investment.
2. Cost of training:
The success of the system is fully dependent on how the workers utilize it. This means they must
be properly trained, and a number of companies have attempted to save money by reducing the cost of
training. Even if a company has enough money to implement ERP, they may not be able to successfully
use it if they do not have enough money to train their workers on the process of using it.
3. Alteration:
Most ERP vendors will not allow the structure of the software to be altered. One advantage to
ERP is that making the necessary changes to use it may actually make a company less competitive in the
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market. In addition to the costs involved with implemented ERP and training workers to use it, the ERP
vendors may charge additional license fees, putting a strain on companies that do not have enough
resources to pay for them.
ERPs and HOTEL ORGANIZATIONAL ISSUES
The hotel’s traditional hierarchical organizational structure and its impact on service delivery are well
documented. Nebel likened a hotel’s structure to a traditional functional organization with its departments built
narrowly akin to watertight cylinders. Chacko compared hotel organizational structure to a functional pyramid
that needs surgery to facilitate greater coordination between departments and enhance flexibility in the
operation. An Arthur Andersen forum of CEOs in the hospitality industry addressed the need for hotels to be
flat, flexible and empowered to achieve success.
In this context, ERPs have the ability to streamline management structures creating flatter, more
flexible and democratic organizations, but with centralized control over information.
Cost in ERP Implementation
(SOURCE:-IT DEPARTMENT OF FORTUNE PARK)
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CHALLENGES IN ERP IMPLEMENTATION:
There are many challenges that have to be faced in ERP implementation. These challenges are
explained as follows:
1. Convincing people:
One of the most difficult challenge in ERP implementation is to convince people of the change process
.some people might feel insecure about their job in order to make a successful ERP implementation we must
convince people . This can be done only when there is proper sharing and sharing of ERP vision.
2. Techno stress:
It is the technological term which means there is stress among the employees due to the technology .
the technology get updated now and then, people must be aware it .so there is lot of stress among the people
because of technology . another form of techno stress is the drawbacks in a technology that causes . so the
management and organization must cop up with techno stress.
3. High cost:
The implementation involves high cost . There is high risk involved in it so a organization must be
prepared to invast heavily and there must be prepared commitment to the top management.
There is high risk in ERP implementation will cost an organization heavily if it fails.
4. Return on Investment:
Critical success factor for ERP including readiness to invest in high risk , high reward project.
In the other words , a company must implement ERP only if it brings high return . Therefore a company must
seek high renewal process.
5. Downsizing:
Downsizing literally means to reduce the number of people who work in a company. Depending on the
requirement in a department, the number of people can be reduced or increased . Then leads to low morale
among the workers.
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COMMERCIAL ERP SYSTEMS
The five dominating ERP software suppliers are SAP, Oracle, PeopleSoft, Baan and J.D.
Edwards. Together they control more than 60% of the multi- billion dollar global market.
SAP AG–Flagship Products R/3, mySAP.COM
SAP AG or Systems, Applications and Products in Data Processing, was started by five former IBM engineers
in Germany in 1972 for producing integrated business application software for the manufacturing enterprise
(SAP, 2001). Its first ERP product, R/2, was launched in 1979 using a mainframe-based centralized database
that was then redesigned as client/server software R/3 in 1992. System R/3 was a breakthrough and by 1999
SAP AG became the third largest software vendor in the world and the largest in the ERP sector with a market
share of about 36% serving over 17,000 customers in over 100 countries.
Oracle Corporation–Flagship Product Oracle Applications
Oracle (Oracle, 2001), founded in 1977 in the USA, is best-known for its database software and related
applications and is the second largest software company in the world after Microsoft. Oracle’s enterprise
software applications started to work with its database in 1987. It accounts for $2.5 billion out of the company’s
$9.3 billion in 1999, which places Oracle second to SAP in the enterprise systems category with over 5,000
customers in 140 countries.
PeopleSoft Inc.–Flagship Product PeopleSoft8
PeopleSoft is one of the newest ERP software firms started in 1987 in Pleasanton, California, with
specialization in human resource management and financial services modules. PeopleSoft quickly managed to
offer other corporate functions and attained a revenue of $32 million in 1992 SAP AG and Oracle–with longer
experience, stronger financial base and worldwide presence–are the main competitors to PeopleSoft. Many
customers comment that PeopleSoft has a culture of collaboration with customers, which makes it more flexible
than its competitors. The flagship application PeopleSoft with scores of applications was developed by
PeopleSoft with an expenditure of $500 million and 2,000 developers over 2 years as a pure Internet-based
collaborative enterprise system.
The Baan Company–Flagship Product BaanERP
Founded in 1978 in The Netherlands, Baan (Baan, 2001) started with expertise in software for the
manufacturing industry and by 1997 claimed an ERP market share of roughly 5%. Bann’s revenue in 1998 was
roughly $750 million and while facing a slight slowdown in 1999 started growing again in 2001 with sales up
12% at £7,231million and operating profit of £926 million. Baan has more than 15,000 customer sites all over
the world and more than 3,000 employees.
J.D. Edwards & Co.–Flagship Product OneWorld
J.D. Edwards was founded in 1977 in Denver (cofounded by Jack Thompson, Dan Gregory and C. Edward
McVaney) with long experience of supplying software for the AS/400 market. J.D. Edwards’ flagship ERP
product called One World is “capable of running on multiple platforms and with multiple databases,
revolutionizes enterprise software by liberating users from inflexible, static technologies” (JD Edwards ) J.D.
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Edwards’ revenue jumped to $944 million in 1999 from $120 million in1992, having more than 5,000
customers in over 100 countries.
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ERP Implementation (Success)
Company Background
• Cadbury is a British multinational confectionery company owned by Mondelēz International.
• It is the second largest confectionery brand in the world after Wrigley's.
• Founder: John Cadbury
• Founded in: 1824, Birmingham, United Kingdom
Currently, Cadbury India operates in four categories viz. Chocolate Confectionery, Milk Food Drinks, Candy
and Gum category. In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership
over the years.
ERP Implementation
Cadbury turns out, in recent years; Kraft implemented SAP ERP 6.0 (System Analysis and Program
Development) in what SAP called one of its largest global ERP implementations.
Kraft credited ERP with reducing operational costs.
11,000 employees were sending data to the company's SAP solution and it was linked to 1,750
applications by 2008.
That same year, Kraft also added SAP's master data management solution, Net Weaver, with an eye
toward integrating legacy systems.
Cadbury was left with a glut of chocolate products at the start of the year, after the installation of a
new SAP-based enterprise resource planning (ERP) system led to an excess of chocolate bars building
up at the end of 2005.
The new U.K. computer system is part of a five-year IT transformation project, called "Probe", aimed at
integrating the Cadbury Schweppes' supply chain, purchasing, manufacturing, distribution, sales and
marketing systems on a global, SAP-based ERP platform.
Cadbury Schweppes is aiming for an ultimate savings from the Probe project, but its implementation has
been far from smooth. The project was beset by problems and delays when it was first introduced in
Australia in 2002.
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Benefits of ERP
Cadbury was on a fast paced growth and could not continue with the existing systems and the pace was
too slow due to added inefficiencies. ERP added efficiency and guided the led all the issues fast paced
growth.
The implementation of ERP brought in a new way of warehouse management system and brought in
structure to branch offices and the depots.
While implementing the ERP systems, the company has built it upon the past strengths of the company
thereby not losing out on its competitive
The initial implementation took time and then the successive implementations took lesser time and cost
and there is a huge advantage in saving cost while in the implementation phase itself.
The reaction from competition does not matter in this because this is not a change that was advertised to
the market. This is an internal process restructuring and was a welcome change within the company
which badly needed the change.
The company also has built in a robust regular feedback system to monitor the changes and check if they
go according to the initial plan. The entire implementation is cross functional and hence it is important
that there is a high increase in the efficiency.
The ERP vendor was also selected from among the best in class vendors which helped the process occur
in a streamlined fashion and avoided any possible chances of hiccups during the initial implementation
phase.
The system has also been deployed up to the vendors. They have a portal called vendor connect where
they can see their inventory movement and make plans accordingly. Hence the restructuring happens not
only internally but also across to the supplier which will add on to the benefits that are accrued.
It was considered at low cost and high result implementation which by itself highlights the success and
the benefits.
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ERP Implementation (Failures)
Company Background
Hershey's is the largest chocolate manufacturer in North America. Its headquarters are
in Hershey, Pennsylvania, which is also home to Hershey's Chocolate World.Chocolate
Business was started by Mr. Milton S. Hershey in 1876.
The Hershey Company was established in 1894 and Hershey's products are sold in about
sixty countries worldwide.
Hershey's sales are roughly 80% chocolate and 20% non-chocolate. Hershey’s Competitors
include Mars, Nestle, Russell Stover, Palmer and Nabisco.
ERP Implementation
To enhance company’s competitiveness and Customer Service
• During late1996, the management of Hershey gave its approval to a project which is named as
Enterprise21
• For this Hershey selected SAP's R/3 ERP software, Manugistics SCM software and Seibel's CRM
software and IBM Global Service so as to manage integration among these three systems.
• Overall Project Cost for ERP implementation was US $10 Million.
• The recommended implementation time for the project was 4 yrs. and Hershey demanded for 2.5 yrs.
• Hershey decided to go with Big Bang Approach instead of phased approach.
Impact of ERP Failure
Problems pertaining to order fulfillment, processing and shipping started to arise; Hershey would not be
able to meet its committed date of delivery.
Several of Hershey's distributors who had ordered the products could not supply them to the retailers in
time, and hence lost their credibility in the market.
Product inventory started to pile up and by the end of September 2000; the inventories were 25% more
than the inventories during the previous year.
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After Hershey’s announcement in the market about problems due to malfunctioning of the newly
installed computer systems, Hershey's stock price plunged by 8% on a single day.
Hershey's failure to implement the ERP software on time cost the company US $150 million in sales.
Profits for the third quarter 1999 dropped by19% and sales declined by l2%, in its 1999 annual report.
Reasons of Failure
Over-squeezing implementation schedules
Big Bang Approach instead of Phased Approach
Mistake of sacrificing systems testing for the sake of expediency
Cutover Activities and Go-Live were scheduled in Hershey’s busiest business periods.
Learning from Failure
The First Lesson
An ERP implementation project should not be forced into an unreasonable timeline. Over-squeezing
implementation schedules is a sure-fire way to overlook critical issues.
Testing phases are safety nets that should never be compromised.
The Second Lesson
Never schedule cutover during busy seasons. Even in a best-case implementation scenario, companies should
still expect steep learning curves and operational performance dips. By timing cutover during slow business
periods, the company gives itself more slack time to iron out systems kinks. It also gives employees more time
to learn the new business processes and systems. In many cases, it is even advisable to reduce orders in and
around the cutover period. This tactic is aimed at minimizing exposure to damages caused by potentially
undetected errors and less-than-perfectly-trained users.
“There is no doubt that 1999 was a most difficult and disappointing year for Hershey Foods Corporation.
While the year got off to a slow start due to excessive retail inventories, we fully expected a strong finish in the
second half of the year. Instead, the implementation of the final phase of the Corporation's enterprise-wide
information system created problems in the areas of customers service, warehousing and order fulfillment.
These difficulties were exacerbated by our growth in recent years which had resulted in shipping capacity
constraints. As a result, Hershey's sales and earnings fell well short of expectation for the year.”
- Kenneth L Wolfe
(Chairman & CEO, Hershey Foods Corporation, in 1999)
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FINDINGS FOR AVOID ERP FAILURES:
The failures of ERP can be avoided by following the simple ERP implementation techniques. They are
discussed as follows;
Phased-in approach:
Implementation of ERP should have a phased-in approach. In other words, the applications must be
installed by taking one department at a time.
Ex; Russ Berrie & Co, basically a teddy bear maker had failed installation of Packaged ERP applications but
after rolling out J. D. Edwards & One World Ex. suite of ERP. They succeeded. The reason for the success was
the following of phased-in approach.
Estimation of the complex nature:
The Agilent technology, which is a multinational communication & life sciences company had problems
with ERP. Initially they failed. But now they are stable. The reason behind the failure was underestimation of
the complex nature of ERP implementation. So for successful implementation, there must be a proper
understanding of the complex nature of ERP implementation process.
Involvement of affected employees:
Failure to involve affected employees in the planning and development phases, were typical causes of failed
ERP projects. So there must be proper involvement of affected employees in development and planning
process of change management.
Slow process:
Whirlpool corporations is the world’s leading manufacturer & marketer of home appliances failed in their
ERP implementation. The executives made a damaging business decision by going live with SAP R/3 ERP
applications on the 3 day labour holiday. There were many problems that were to be addressed but
everything was done too fast. Finally as a result of this, there was a delay in shipment and Whirlpool lost a
lot of potential sales. So a slow process must be followed in conversion process.
Effective testing:
When ERP is ready to be implemented, it must be tested several times for any problems that may arise. And
also there must be proper conversion process & effective training must done before implementing ERP.
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HOW SAP IS USED IN HOTEL FINANCE:
Preparation of annual budget
Daily flash report
Preparation of monthly financial statements
Annual reporting and payments of all state, local and lodging taxes
Monitor the annual budgeting process
Provide financial results analysis and industry comparisons
Provide cash flow monitoring and distributions
Perform internal financial audits
Provide sales, property and income tax audit support
Administer banking relationships
Preparation of annual budget
On the SAP Easy Access screen, choose
Accounting Flexible Real Estate Management Country Specifics France Annual Budget
Annual Budget for Budgetary Periods.
In the Settlement Units group box, enter the mandate company code and any additional data as required.
In the Key Date field, enter the key date, for which you want the system to determine the annual budget
amounts of cost collectors for the selected settlement units.
In the Parameters of Annual Budget group box, enter the plan version.
This plan version forms the basis for the data you want to create or change.
In the Activity field, enter the following:
If you want to create a new annual budget or change an existing one, choose 02 (Create/Change
Data)
If you want to display an existing annual budget, choose 03 (Display Data).
Choose Execute
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Preparing monthly financial statement
Use
We create financial statements as part of the year-end closing in accordance with country-specific legal
requirements in order to report assets, liabilities, accruals and deferrals, and revenues and expenses.
Features
We can use report RFBILA00 to create the financial statements.
We can configure the financial statements in accordance with requirements:
We can create financial statements for different organizational units , for example, for the whole
group, or for an individual company code, business area, and so on.
We can create the financial statements in different languages , for example, in the language of the
country in which the company code is based, or in the group language.
We can create the financial statements in any currency we choose. This might be necessary for
example, if we want to create consolidated financial statements for company codes with different
local currencies. We can also create financial statements for different currency types we are using as
company code currencies (for example, group currency, index-based currency, hard currency).
We can choose between different types of financial statements , for example, opening financial
statements or closing financial statements.
We can vary the level of detail of our financial statements. For our accounting department, for
example, we want to list the individual accounts with their balances. For senior management, we
might want to summarize this information to create financial statements for the whole group.
The output list is displayed using the ABAP List Viewer, that is, we can configure the output list to
meet our requirements.
Activities
To create financial statements, choose the following from the SAP Easy Access screen: Accounting
Financial Accounting General Ledger Information System General Ledger Reports or General
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Ledger Reports (New) Balance Sheet/ Profit and Loss Statement / Cash Flow General Actual/Actual
Comparisons Financial Statement .
Annual reporting and payments of all state, local and lodging taxes
Purpose
This component provides functions and processes that compute the professional tax deductions of an employee.
Professional tax is a statutory tax that state governments levy on professions, trades, callings, and employment.
Professional Tax functionality in the SAP R/3 System, only covers the Professional Tax applicable on employee
salaries.
Individual State Governments decide the rules applicable for computing the professional tax in their state. The
Central Government, under the Constitution of India, fixes the limit on professional tax that the State
Governments can charge.
Integration
Income Tax – The system estimates the annual professional tax of an employee and deducts it from salary as
per Section 16(ii) of the Income Tax Act.
Features
The system determines the professional tax payable by an employee, based on the following factors:
· Professional tax basis – Comprises those salary components on which a professional tax is applicable.
The salary components to be included for calculating the professional tax basis depend on the state. The
different components are:
Basic pay
Dearness allowance
Medical reimbursement perquisite
Housing
Profits in lieu of salary
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Other remuneration that an employee receives regularly
Bonus
Medical Reimbursement – The system includes the medical reimbursement amount which exceeds the amount
exempt from Income Tax (as fixed under the Income Tax Act), as a part of the professional tax basis.
Housing Allowance – In case of a company leased or a company owned accommodation, the system checks the
difference in housing allowance and the rent. If we pay an employee the positive difference between housing
allowance and rent, then, the system includes this amount for calculating the professional tax basis.
Bonus - If the employment is in a state that specifies bonus as a component of the professional tax basis, then
the system includes the same for professional tax basis calculations.
Basis type – This is the type of basis considered while computing professional tax. Basis type can be:
Nominal basis – The system considers the salary of an employee, while calculating professional tax. It does not
take into account the actual number of days that the employee attended work within the given payroll period.
Due basis – The system considers the actual amount that an employee receives as the basis amount for
professional tax calculations. Most states specify Due basis for professional tax calculations. We can configure
this for individual states.
· Computation frequency – This is the frequency with which the system computes professional tax basis
for an employee. The computation frequency may span across one or more payroll periods, and the state
specifies the frequency. For example, the frequency may be:
¡ Monthly – Where the professional tax basis computation occurs every month.
¡ Half yearly – Where the professional tax basis computation occurs twice in a year, and each
computation spans six payroll periods.
¡ Annual – Where the professional tax basis computation occurs only once in a year and the
computation spans the twelve payroll periods.
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Deduction frequency – This is the frequency with which the system deducts the professional tax of an
employee. The computation frequency may span across one or more payroll periods, and is state specific.
For example, the deduction frequency may be:
Monthly – Professional tax is deducted every month.
Quarterly – Professional tax is deducted once in a quarter and spans three payroll periods.
Half-yearly – Professional tax is deducted twice a year, and the computation spans six payroll periods.
Annual – Professional tax is deducted once in a year, and the computation spans the twelve payroll periods.
Professional tax slabs – Employee salaries fall within different salary ranges or slabs, and the amount of
professional tax to be paid depends on the salary range to which the employee belongs. Every state specifies its
own salary slabs and the professional tax rate that is applicable for a salary range. The system calculates the
professional tax amount accordingly.
Arrears or the retrospective professional tax – When arrears
are paid to an employee, the system determines the professional tax amount to be paid for previous periods by
performing retrospective calculation. The system computes the retrospective professional tax in two ways,
and the method it uses depends on the state. The two methods are:
Gross Carry Forward – The system recalculates the professional tax basis for the past periods. It carries
forward the difference in the professional tax basis for each retrospective calculation period into the current
processing period, and sums it up into the current processing period.
Deduction Carry Forward – The system recalculates the professional tax amount for the past periods. It
carries forward the difference in the professional tax amount for every retrospective period into the
current processing period, and then sums it up for the current processing period.
When there is a retrospective change of state, or a change in the professional tax liability of an
employee, the system always uses the deduction carry forward method for retrospective
professional tax computations.
Reports –
The system generates professional tax statements in a format prescribed by the concerned state authorities.
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In some states, we need to pay tax as per the state act, but submit the returns at the local municipality or
corporation level. The system generates the professional tax statements accordingly.
Monitor the annual budgeting process
Use
Budget monitoring enables us to display the budget of a budget structure element, and allows us to see how
much of this budget has been used up and how much is still available.
Features
We can use the Budget Monitoring function to display the following information on a budget structure element:
Name of budget structure element
Period being monitored
Original budget
Budget changes
Current budget (original budget plus/minus budget changes)
Distributed budget
Application of budget
Available budget (current budget minus budget distributed and application of budget)
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Provide financial results analysis and industry comparisons
With SAP Results Analysis, we can provide a more realistic view of our ongoing activities by
capitalizing the value added so far in the balance sheet. Simply, we reverse the costs posted to our activities
during the month and convert them into stock. If we maintain the assumption that the activity will lead to added
value, then we can show this value in the inventory of our balance sheet as equivalent to the costs incurred.
Results Analysis comes with a number of different methods to determine the value of the inventory to be
capitalized at month-end. The simplest of these is the Work in Process (WIP) calculation, which is primarily
used for production orders. In this scenario, we consider the capitalized inventory to be equal to the total cost of
a production order minus any credits from goods receipt of finished products. For a customer project, the work
in process is the difference between the total cost and the (partial) billings. In this scenario, there are a variety of
options available to valuate the work in process. For example, we can consider the ratio between the planned
and actual costs, compared to the planned and actual revenue for a more realistic result. We could also ignore
all billings and show all costs as work in process until the project is finished.
An important variation of Results Analysis is the Percentage of Completion (POC) method. This method is
primarily used in large customer projects and is used to capitalize revenue instead of costs. With the POC
method, we assume that the costs incurred to a project will eventually lead to an amount of revenue equal to the
costs, plus our planned margin. For example, if we have realized 25% of our planned costs, we will capitalize
25% of our planned revenue in the balance sheet and P&L.
Provide cash flow monitoring and distributions
SAP Cash Management is used to monitor cash flows and to ensure that you have sufficient liquidity to
cover your payment obligations.
Features
The Incomings area covers the following topics:
Electronic and manual bank statements
Payments
Electronic and manual check deposits
Bill of exchange presentation
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Conclusion
The growing information needs of an enterprise make it imperative to improve or replace old systems.
Especially under the present Indian business environment, where the globalization has been initiated, full
convertibility is coined, Infrastructure Projects are nearing completion, and it is expected that the whole
business system will undergo a major shift. Thus by being a proficient ERP consultant, ERP will prove their
commitment to the business world and modern management.
The ERP is not a total solution to operational and strategic concerns. It’s meant for optimal utilization of
organizational resources from man to machine, finance and materials. It is not the ultimate solution to all
the problems. It is meant to accurately track the processes for disciplined usage of the resources. It cannot be a
solution to the customer services problems, quality problems. For such issues, ERP provides a base for
implementation of specific solutions such as supply chain management, product life cycle management and
customer relationship management. That is why it is very important for SMEs to understand the role of ERP,
because that will them the power to take decisions on ERP, either single vendor or best of the breed kind of
applications and to what extent. The reasons for implementation for ERP, is that a firm would like to consider
the four perspectives:-
Financial Perspective.
Customer Perspective.
Internal Perspective.
Innovation and learning Perspective
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BIBLIOGRAPHY
Websites
https://www.fortunehotels.in/ahmedabad-fortune-park.dh.16
http://www.moneycontrol.com/financials/itc/balance-sheet/ITC
www.nism.ac.in
www.scribed.in
https://www.sap.com/index.html
http://www.webopedia.com/TERM/E/ERP.html