Summer project part 2

CHAPTER I
INTRODUCTION
1
1.1 Background information
1.1.1 A brief profile of Dang Valley
Dang district is the most improved and urbanized district among the districts
of Mid-Western Development Region that lies under the Rapti Zone. This district is
surrounded by different geographical structures and lies 213 meters (Sisanhiya’s
Bhanpur) to 2058 meters high (Hasipur’s Arkhale) above the sea level.
In the east of this district, Kapilvastu, Arghakhanchi and Pyuthan districts lies,
Surkhet and Banke in the west, Salyan and Rolpa in the north whereas Uttar Pradesh
of India in the south.
According to the Census of 2058 B.S the total population of this district was
462,380 where the number of male population was 228,958 and female 233,422. Out
of this total population 12% of the population lives in urban areas and other remaining
88% in rural areas.
Similarly the majority inhabitants are Tharu (31.84%). Mainly 62.63% people
speak Nepali, 26.73% speak Tharus and remaining speaks other language. The main
religion of the people of this valley is Hindu. The main religion place of this valley is
Chaunghera Mai, Ambikeswori, Barhakune Daha, Dharpani etc.
Moreover here are 2 municipalities (Ghorahi and Tulsipur), 39 VDC’s and
about 23.67% of the total land is cultivable land. The forest covers the 66% and the
most important infrastructure road is developed in all 39 VDC’s.
The main occupation of this district is agriculture (79%) and other remaining
are business (9.94%), officer (5.17%), industries (2.23%), contractor (2.18%) and
other (1.61%).
The headquarter of this district is Ghorahi and most of the offices like Post
Office, Malpot Office, Education Office and so on are in Ghorahi.

As more as population is increasing, people are engaging in different types of
business. In present scenario, the businesses of scooters have become most popular in
Ghorahi area. Now a day’s most of the people either male or female use scooters.
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1.1.2 Scooters
Scooters are the two wheeler mode of transportation which has been made for
female. But now a days it's used by male too.
1.1.3 Honda Scooters
The Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) factory is spread
over 52 acres, with a covered area of about 85, 815 square meters at Manesar,
Gurgaon district of Haryana. The foundation stone for the factory was laid on 14th
December 1999 and the factory was completed in January 2001. The initial installed
capacity was 100,000 scooters per year, which has reached 6, 00,000 scooters by the
year by 2007 and motorcycle capacity shall be 4, 00,000 per annum. The total
investment outlay for the initial capacity was Rs. 215 crores and now the accumulated
investment is more than800 crores.
The second plant at the Tapukara Industrial Area of Rajasthan, which
isapproximately 90km from the center of Delhi, has become operational from July
2011 with annual production capacity of 0.6 million units.
Honda launches its Most Affordable Automatic Scooter in India. As the
unchallenged market leader with an overwhelming 50% market share in the Indian
automatic scooter segment, Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI)
today launched its first 110cc personal compact scooter offering - ACTIVA-I. Its
main aim is to reinforce market leadership with its 1st personal compact scooter
offering.
New ACTIVA-I, Honda has now entered the personal compact category
which contributes almost 25% of automatic scooter sales in India.
In Personal Compact Scooter category, Customers desire an automatic scooter
for daily commute which is lightweight, compact and easy to handle yet comfortable
for both genders. Thus was developed ACTIVA-I Honda’s First ever “Light weight
personal compact” automatic scooter and it is Most Affordable too.

ACTIVA-I has been specially developed for comfort and convenience and
leaves competition models far behind with its long list of exclusive features. These
include – Combo Brake System (which reduces braking distance by 24% compared to
conventional brakes), tubeless tires, maintenance free battery, viscous air filter,
comfortable seating posture and maximum storage space of 18 liters. The compact
and lean design is easy to handle in traffic by both male and female riders. At 103kg,
its lightweight design ensures fatigue free ride & ease of parking for female riders and
high ground clearance of 165mm guarantees joyful riding.
ACTIVA-I is sure to win hearts with its subtle yet attractive unisex style. The
stylish indicators, appealing front headlight, chiseled muffler and catchy tail light are
in complete synergy with the overall smoothness of looks. The vibrant instrument
panel provides all information to rider in a glance.
The wide front panel marries rider protection with good aesthetics while the
specially designed ergonomic grab rail ensures that rider can put the scooter on stand
with 15% less force.
On the performance front, Honda’s technologically advanced 109 cc 4-stroke
air-cooled engine comes with the revolutionary. Honda Eco Technology successfully
combines improved combustion, reduced friction and optimized transmission leading
to Dream Mileage of 60kmpl.
Leaving competition way behind in the roads, ACTIVA-I gives best in class
net power of 5.83kw (8 BHP), superb torque output of 8.74Nm@5500RPM for better
pickup and effortless riding with higher initial and overtaking acceleration.
ACTIVA-I comes in 4 stunning colors – Beige Metallic, Pearl Sunbeam
White, Alpha Red Metallic and Purple Metallic.
Honda also introduced Dio scooters which has remained the first choice of
young people for personal vehicle. Dio has a fantastic performance plus a slim and
attractive body. It has a 102 CC engine and gives a mileage of 40-45 km per liter.
Honda has been changing body cosmetics and graphics of Dio time and again. The
have recently introduced 3rd generation of Dio Scooter with some changes in
cosmetics and body parts.
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4
1.1.4 Mahindra Scooters
Mahindra Two Wheelers Limited (MTWL) is a group venture owned by
Mahindra & Mahindra Limited (M&M), which manufactures scooters and
motorcycles. Mahindra Two Wheelers Limited was founded in 2008, when Mahindra
& Mahindra Limited acquired the business assets of Kinetic Motor Company Limited.
MTWL has partnered with Taiwan's Sanyang Industry Company (SYM) to help
develop its scooter portfolio, and with Italy-based Engines Engineering for research
and product design.
The company has a state-of-the-art manufacturing facility at Pithampur, near
Indore. The plant’s products and processes are ISO 9001 certified from DNV.
Mahindra 2 Wheelers' Pithampur plant has a total capacity to assemble about 5,
00,000 units p.a. on a three shift basis. Mahindra Two Wheelers Ltd. also has an
R&D unit located at Chinch wad, Pune, equipped with necessary design and
development facilities right from renderings to prototype manufacture and testing.
With its range of two wheeler vehicles, it strives to offer products that redefine the
market and consumer expectations with breakthrough technology. In the long term,
MTWL aims at becoming a product and technology- led marketing organization.
Mahindra 2 Wheelers, the two wheeler arm of the US $ 6.3 billion Mahindra
Group, announced the sale of a record 10,000 units in January 2010. The figure
includes the recently launched Power Scooters, the Mahindra Rodeo and the
Mahindra Duro, along with the Mahindra Flyte. The strong sales numbers are proof
of the fact that the Power Scooters are creating waves across India with their strong
value proposition of style and power. Mahindra 2 Wheelers has differentiated itself
through strong brands that cater to specific target segments and the response which
has received from the market has been extremely encouraging.
Within the overall two-wheeler strategy, scooters form M&M's entry point
into the Indian market and will be an important part of the company's overall two-wheeler
product portfolio. There are several macro environmental trends which make
the scooter market especially attractive to Mahindra. These include a younger, more
affluent customer base with a significant number of empowered women and increased
scooter demand in tier-2 cities and small towns. M&M is strongly positioned to cater

to this demand, given the company's significant presence and brand equity in these
markets.
The strong in-house design and development competencies provided by
Mahindra Engineering Services (MES), the Italy-based design house, Engines
Engineering and Taiwan’s Sanyang Industry Company Limited (SYM), coupled with
M&M’s R&D strengths will help the company assume a significant position in the
rapidly growing Indian and global two-wheeler market.
The company will focus on building a global R&D network and draw upon the
best available global competency pool, while retaining the flexibility to cater to
specific consumer requirements in all segments. Mahindra 2 Wheelers being the
newest entrant in the industry has the advantage of changing the dynamics of the
game through innovation and consumer insight led marketing strategy.
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6
1.2 Objective of the study
The specific objectives of my research were:
1. To analyze the sale and profit of Honda and Mahindra scooters in Ghorahi
area.
2. To analyze the market opportunities of Honda and Mahindra scooters Ghorahi
area.
3. To analyze the demand of Honda and Mahindra scooters.

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1.3 Statement of the problem
Motorcycles and scooters are the most common and popular mode of
transportation in most Asian countries. Because of science and technology the
different branded of scooters are invented day by day. Among the different brand
Honda and Mahindra are one. The Honda and Mahindra scooter showroom are the
leading sellers of Honda and Mahindra two wheel scooters in Ghorahi area. The
Honda scooters showroom was established in the year 2065 and the Mahindra scooter
showroom was established in 2067, and they are delivering to the customers in all
over the Ghorahi area. This research is mainly conducted to analyze the situation of
Honda and Mahindra scooter showroom which includes the service, rate, brand etc.
To fulfill the demand of management required by different organization and to
develop the internal ability this research has been conducted. In the past years they
have been into the active in promoting two wheeler products but in the recent the
sales of Mahindra scooters is not so good only satisfactory than Honda scooters
because of the competition of market and dissatisfaction among large group of
customers due to deteriorating in the quality of after sales service. Hence the
management had felt the need to conduct through analysis about the existing
effectiveness of after sales service and its impact on the organization overall sales
performance. I was glad to accept this assignment from the organization perspective
and as a part of BBA curriculum to fulfill the summer project. “Comparative market
analysis of Honda and Mahindra scooters, Dang” is the important statement of the
problem in this project.

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1.4 Importance of the study
As a student of management, the main importance of conducting research is to
build up the internal ability regarding research and communication. The main
importance to conduct this research is to know the business opportunities and
challenges of Mahindra and Honda scooters. Today’s business is customer oriented
not the market oriented. Before there was monopoly market but now there is perfect
competition in the market and the business person should give first priority in quality
rather than quantity. So to know the behavior of the business person this research is
conducted. The great importance of conducting this research is to know the
relationship between customer and producer.
Finally, to fulfill the demand of management required by different
organization and to be more practical in life this research is conducted.

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1.5 Limitation of the study
Although the research was conducted to give the accurate and valid result on
the topic “comparative market analysis of Honda and Mahindra scooters, Dang”,
there are some limitations of this research which are as follows:
 Due to the lack of time, knowledge, experience and availability of data, the
report does not contain deep and intensivemarket analysis of Honda and
Mahindra scooters business.
 Due to the unavailability of sufficient references and resources, most of the
data used are of secondary type in forms of profile, brochures, annual
reports and other sources.
 Upto date and complete data are difficult to obtain because of unavailability of
sufficient data, references and resources.
 The study has been completed within shorter time frame so many variables
related tothe interest of study have been left out.
 The data available on the questionnaire are quite limited to this report because
of which the report cannot be designed in desired form.
 Probability of accuracy is very low.

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1.6 Hypothesis formulation
Hypothesis is the tentative journalization which should be tested after the
research. It is guessed answer of research questions or presume conclusion of the
research which should be tested. Hypothesis of this research are as follows:
 Both scooters are equally demanded.
 The profit of both scooters showroom is constant.
 The investment of both scooters showroom is constant.

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1.7 Literature Review
Scooters are emerging as a major component of Nepal’s two-wheeler market
and they account for a significant share of annual sales. Enthused by the market
response, distributors of various motorcycle brands have rolled out a number of
scooters. The success of scooters in the domestic market can be gauged by the fact
that five models were launched in the fiscal year 2010-11. The market saw the arrival
of a new version of the Honda Dio, the SYM Jet 4 and Orbit II from Taiwanese brand
SYM, the Fencing 125 cc and the Swish from Suzuki.
The domestic market saw approximately 21,000 units of scooter s being sold
in the fiscal year 2010-11. Traders estimate that sales grew to 27,000-28,000 units in
the last fiscal. “Scooters now have a share of around 30 percent in the overall two-wheeler
market,” said Saurav Jyoti, chairman of the Nepal Automobile Dealers
Association (NADA). “The figure is increasing daily and it seems that the scooter
segment will grow continuously for a few more years.” According to Jyoti, the main
reason behind the significant rise in scooter sales is convenience while riding and
maximum utility. It offers maximum utility, and is convenient while riding. This is
why sales have gone up,” he said. Apart from this, stylish looks and better
performance of new generation scooter s have encouraged customers to go for scooter
s. “Normally, scooter s consume more fuel in comparison to a motorcycle. But scooter
manufacturers have been introducing fuel efficient models. This has also played a
positive role in the growth of sales,” said Jyoti. Jyoti, who is also the distributor of
Honda two-wheelers in Nepal, said that scooter sales account for 50 percent of their
annual sales. The scooter segment has shown notable growth in the past two-three
years
Better access to roads and a rise in the number of migrant workers have played
a catalytic role in the growth of two-wheeler sales. The sales of scooters have surged
tremendously in recent days. Scooters are increasingly being popular here because of
the fact that they are easy to handle and can be used by all family members. A scooter
now has become a family vehicle. Increasing use by women has helped to expand
scooter sales. Currently, scooter s from Honda, Hero Honda, TVS and Mahindra are
enjoying rising sales. Honda Dio and the Honda Aviator, claims to hold more than 50
percent of the two-wheeler market.

Pramila Khatri, sales manager at Ganesh Enterprises, the sole authorized
distributor of Suzuki in Nepal, said that scooter sales had been swelling as they fulfil
the requirement of everybody in the family. “Even those who own a car are going for
scooter s as they are easy to ride and can be used by everyone in the family,” she said.
RajuBhetwal, the vice president-sales and marketing of SG Global, recently
appointed sole authorized distributor of Mahindra scooters for Nepal. According to
Raju, Mahindra in itself is a big brand. It has a very strong presence and positive
impression in rural Nepal as other vehicles from Mahindra have proven their caliber.
However, there had been problems regarding publicity, due to which people started
underestimating the products although they were good. Therefore, we are new
focusing on branding Mahindra two-wheelers. Within the first month of our
operation, 100 scooters have been sold. Showrooms have been made attractive and we
are successful in pulling customers. In the scooter segment, Mahindra is in third
position after Honda and Hero Honda.
In fiscal year 2008-09, six scooters used to sell against the sales of 100 two-wheelers.
In 2009-10, the number went up to 11, and the figure reached 19 in the first
four months of in 2010-11. The segment has so far contributed 26 percent to the total
two wheeler sales. This shows that scooters are developing as one of the popular
means of transportation in Nepal. This is also the reflection of Nepali society which is
heading towards massive advancement. Around 50 percent of scooter riders in Nepal
are female, and the increment in sales means women are getting more independent
and exercising freedom. The projected sales of scooters would finish somewhere
around 27,000 to 28,000 units this year. Last year the figure was at 21,000.
There are various factors contributing to this. Some three-four years ago, one
would hardly see men riding scoters. They used to shy away from scooters
considering them feminine machines. Nowadays, you can see a lot of guys riding
scooters. This is because of television and internet. Also, the society started opening
up. These machines are now purchased for commuting purpose. As motorcycles by
nature are aggressive, a lot of people are considering scooters safer. Emergence of
prosperous middle-class also played a catalytic role in the growth.
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1.8 Research methodology
A systematic methodology is required to pick out an actual result for any
special study. Research is the systematic investigation to get new knowledge about
any subject matter. It means the search for knowledge and methodology refers to
various sequential steps that are adopted in the study. In this research, information has
been collected through review of institutional records and direct personal interview
with the owner of Honda and Mahindra scooters dealer. Also various other methods
such as Observation method, Interview method, Questionnaire method etc. have been
used to collect information related research topic. Mainly secondary data(published
and unpublished)has been used.
1.8.1 Research Design
The detail plan and strategy to conduct the research or to meet the research
objective is known as research design. A Research Design is purely and simply of the
framework or plan of study that guides the collection and analysis of data. Research
design is the plan structure and strategy of investigation conceived as to obtain answer
to research question and to control variances. It is a framework or a general plan for
the study guiding the collection and analysis of data. It focuses on the data collection
methods, the research instruments utilized, and the sampling plan to be used. It is an
integrated approach that guides the researcher in formulating, implementing, and
controlling the study. The main objective of this study is to examine The
Opportunities and Challenges of scooters business in Ghorahi area. To achieve this
objective, both the descriptive research design and comparative research design have
been adopted.
Descriptive research design includes simple description of Dang valley and
about Honda and Mahindra scooters business.
Similarly comparative research design includes total comparative study of
Honda and Mahindra scooters. The comparative study has been conducted to find out
the market opportunities and challenges of both scooters i.e. Honda and Mahindra.
Varieties of methods have been applied to collect data i.e.observation method,
Interview method, Questionnaire method etc. This research design have been
concentrated in both qualitative and quantitative study

CHAPTER II
DATA ANALYSIS
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2.1 Data presentation and analysis:
Data analysis is an important stage of the research process. The purpose of
analyzing the data is to change it from an unprocessed form to an understandable
presentation. Raw data conveys little information as such. It must, therefore, be
compiled, analyzed, and interpreted carefully before its full meaning and implications
can be understood. The data is thus transformed into information which is called
analysis.
In this chapter, the obtained data from the various resources are presented
below in tables and line and after that those data have been analyzed and
interpreted

Fiscal year Capital
2067/068 5000000
2068/069 7000000
2069/070 10000000
Capital
2069/070
45%
15
2.1.1 Capital structure
2.1.1.1 Capital structure of Mahindra scooters showroom
(Source: Annual financial report of Mahindra scooter showroom)
2067/068
23%
2068/069
32%
Fig.1:-Pie-Diagram of capital structure of Mahindra showroom
In the above table and pie-diagram the capital structure of Mahindra Scooters
Showroom has been shown. The Scooters Showroom has been operated by investing
Rs. 5000000 at first. But due to rendering better services and high demand of
Mahindra scooters in current market, the capital of this Scooters Showroom has been
increasing day by day. And now it is running with the total capital of Rs. 10000000.
So, by analyzing this data we can conclude that Mahindra Scooters Showroom is
expanding its business day by day by increasing capital structure.

2.1.1.2 Capital structure of Honda Scooters Showroom
(Source: Annual financial report of Honda scooter showroom)
Capital
Fig. 2:-Pie-Diagram of capital structure of Honda showroom
In the above table and pie-chart the capital structure of Honda Showroom has
been presented. According to the given table and pie-chart we can identify the capital
structure of Honda Scooters Showroom.In the fiscal year 2067/068 the capital of
Honda Scooters Showroom was Rs.7000000. But in the fiscal Year 2068/069the total
capital of the Honda Scooters Showroom reaches at Rs. 10000000. And now i.e. fiscal
year 2069/070 the total capital of Honda Scooters Showroom is Rs.15000000. By
analyzing abovedata, we can conclude that the capital structure of the Honda Scooters
Showroom is increasing day by day.
By analyzing above data of Mahindra and Honda scooters showroom, we can
conclude that the capital structure of both scooters showroom has been increasing day
by day. But the present capital structure of Honda scooters showroom is higher than
the present capital structure of Mahindra scooters showroom.
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2067/068
2068/069
2069/070
Fiscal year Capital
2067/068 7000000
2068/069 10000000
2069/070 15000000

Fiscal year Quantity
2067/068 30
2068/069 50
2069/070 70
Total 150
Sales
0 10 20 30 40 50 60 70
17
2.1.2 Quantities sales
2.1.2.1 Quantities sales of Mahindra Scooters showroom
(Source: Annual income statement of Mahindra scooter showroom)
Fig.3:-Diagram of quantities sales of Mahindra showroom
2069/070
2068/069
2067/068
Sales
In the above diagram x-axis measures the numbers of scooters sales per month
and the y-axis measures the fiscal year. In the fiscal year 2067/068 the quantities sales
of the Mahindra scooters is 30. Gradually as the business expands the sales also
increases i.e. it reaches to 50 in the fiscal year 2068/069. Similarly the sales are
increasing in every year. In fiscal year 2069/070 the sales rapidly increases to 70. And
the total sale reaches to 150. By analyzing above data, we can see that the sale of
Mahindra scooters is increasing trend. From the above data we can conclude that this
business is increasing day by day and the future of this scooters showroom is bright
because we can see the rapid growth of sales in the above diagram.

2.1.2.2 Quantities sales of Honda scooters showroom
(Source: Annual income statement of Honda scooter showroom)
0 20 40 60 80 100 120 140
Fig.4:-Diagram of quantities sales of Honda showroom
2069/070
2068/069
The above table and figure shows the quantity sales of Honda scooters on
different fiscal year in Ghorahi area. In the above figure, x-axis and y-axis represents
the quantities sales of Honda scooters and the fiscal year respectively. According to
table and figure, the quantity sales of Honda scooters are 55 in the fiscal year
2067/068. Similarly, in the fiscal year 2068/069 the quantity sales of Honda scooters
are 80. Due to the better quality and good looking the quantities sales of Honda
scooters reaches up to 115 in the fiscal year 2069/070. And the total sale reaches up to
250. By analyzing these data, we can conclude that the sales of Honda scooters are
increasing with increasing trend.
By analyzing and comparing both the data of Mahindra and Honda scooters,
we can conclude that the quantity sales of Honda scooters are higher than the sales of
Mahindra scooters in every fiscal year and in total also.
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2067/068
Quantities sales
2067/068
2068/069
2069/070
Fiscal year Quantity
2067/068 55
2068/069 80
2069/070 115
Total 250

Fiscal year Sales Revenue
2067/068 5050000
2068/069 8440000
2069/070 11760000
Total 25250000
Sales Revenue
10000000
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2.1.3 Sales revenue
2.1.3.1 Sales revenue earned of Mahindra scooters showroom
2069/070
2068/069
2067/068
0
5000000
15000000
20000000
Fig.5:-Diagram of sales revenue of Mahindra showroom
2067/068
2068/069
2069/070
In the above figure x-axis measures the sales revenue earned by selling
Mahindra scooters and y-axis measures the fiscal year (2067/068 to2069/070). In the
fiscal year 2067/068 the total sales revenue was Rs.5050000 and in 2068/069 the sales
revenue increases by Rs.3390000 and becomes Rs. 8440000. In the fiscal year
2069/070 the sales revenue became Rs.11760000. So from this diagram we can
conclude that the expected sales revenue from the sales of Mahindra scooters will be
increasing.

2.1.3.2 Sales revenue of Honda scooters showroom
2069/070
2068/069
Fig.6:-Diagram of sales revenue of Honda showroom
In the above figure x-axis measures the sales revenue earned by selling Honda
scooters and y-axis measures the fiscal year (2067/068 to2069/070). In the fiscal year
2067/068 the total sales revenue earned by Honda showroom was Rs.8180000 and in
2068/069 the sales revenue increases by Rs.3640000 and the total sales was Rs.
11820000. In the fiscal year 2069/070 the sales revenue is Rs.11760000. So from this
diagram we can conclude that the expected sales revenue from the sales of Honda
scooters will be increasing.
By analyzing above data of Mahindra and Honda scooters showroom
regarding sales revenue we can see that the sales revenue earned by selling both
Mahindra and Honda scooters are increasing every fiscal year but the increasing trend
of Honda scooters is higher than Mahindra scooters. Thus, we can conclude that the
market of Honda scooters is higher than the Mahindra scooters.
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2067/068
0
5000000
10000000
15000000
20000000
Sales Revenue
2067/068
2068/069
2069/070
Fiscal year Sales Revenue
2067/068 8180000
2068/069 11820000
2069/070 17000000
Total 37000000

Fiscal year Gross Profit
2067/068 350000
2068/069 490000
2069/070 680000
Total 1520000
Gross profit from the sales of Mahindra Scooters (in
'0000)
2067/068 2068/069 2069/070
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2.1.4 Gross profit
2.1.4.1 Gross profit of Mahindra Scooters showroom
Fig.7:-Figure of gross profit of Mahindra showroom
2067/068
2068/069
2069/070
In the above figure, the fiscal year and the gross profit earned from the sales of
80
70
60
50
40
30
20
10
0
Mahindra scooters are represented along the x-axis and y-axis respectively. According
to above figure, the total profit earned by Mahindra scooters showroom was
Rs.350000 in the fiscal year 2067/068 and Rs490000 in the fiscal year 2068/069. Due
to the high demand of mahindra in present situation the Mahindra scooters showroom
is success to earn Rs.680000 profit in the fiscal year 2069/070. And finally the total
gross profit of this showroom over the three fiscal years is Rs.1520000.

Correlation between the Sales and the Profit of Mahindra scooters
X X Y Y
  
( )( )
X X Y Y
22
Year Sales (X) Profit (Y)
(“000”)
(X  X )(Y  Y ) 2 (X  X ) 2 (Y  Y )
2067/068 30 350 3133.40 400 24545.4889
2068/069 50 490 0 0 277.889
2069/070 70 680 3466.60 400 30043.2889
Total(n) =
ΣX= 150 ΣY= 1520
3
Σ (X  X )(Y  Y )
=6600
Σ 2 ) ( XX
=800
54866.6668
Here, X =
X 
n
=
150
3
= 50
Y =
Y 
n
=
1520
3
= 506.67
Correlation(r) =
2 2 ( ) . ( )
   
=
6600

800 54866 .6668
=
6600
6625.204
= 0.996
From the above correlation we can conclude that the profit increases as
increase in number of sales. Since the correlation is positive, the sales lead to
increases in the profit. So as the number of sales increases, the profit also increases.

2.1.4.2 Gross profit of Honda scooters showroom
Gross profit from the sales of Honda scooters
Fig.8:-Figure of gross profit of Honda showroom
1400000
1200000
1000000
800000
600000
400000
200000
In the above figure, the fiscal year and the gross profit earned from the sales of
Honda scooters are shown in x-axis and y-axis respectively. This figure shows the
gross profit earned by selling honda scooters in Ghorahi area. According to above
figure, the total gross profit of Honda scooters showroom was Rs.650000 in the fiscal
year 2067/068 and Rs890000 in the fiscal year 2068/069. Due to the high demand of
Honda in present situation the showroom is success to earn Rs.1250000 gross profit in
the fiscal year 2069/070. And finally the total gross profit over the three fiscal years
of honda scooters showroom is Rs.2790000.
By analyzing and comparing the data of both Mahindra scooters showroom
and Hond sccooters showroom regarding gross profit we can conclude that the gross
profit earbed by selling Honda scooters is higher compare to the profit of Mahindra
scooters.
23
0
2067/068 2068/069 2069/070
Gross profit
from the sales…
Fiscal year Gross Profits
2067/068 650000
2068/069 890000
2069/070 1250000
Total 2790000

Correlation between the Sales and the Profit of Honda scooters showroom
X X Y Y
  
( )( )
X X Y Y
24
Year Sales (X) Profit (Y)
(“000”)
(X  X )(Y  Y ) 2 (X  X ) 2 (Y  Y )
2067/068 55 650 7932.4 802.5889 78400
2068/069 80 890 133.2 11.0889 1600
2069/070 115 1250 10134.4 1002.9889 102400
Total(n) =
ΣX= 250 ΣY= 2790
3
Σ (X  X )(Y  Y )
=18200
Σ 2 ) ( XX
=1816.6667
182400
Here, X =
X 
n
=
250
3
= 83.33
Y =
Y 
n
=
2790
3
= 930
Correlation(r) =
2 2 ( ) . ( )
   
=
18200
1816 .6667 
182400
=
18200
18203.296
= 0.999
From the above correlation we can conclude that the profit increases as
increase in number of sales. Since the correlation is positive, the sales lead to
increases in the profit. So as the number of sales increases, the profit also increases.

25
2.1.5 SWOT ANALYSIS:
SWOT Analysis is a strategic planning method used to evaluate the Strength,
Weakness, Opportunity and Threats involved in a project or in a business venture. It
identifies the internal and external factors that are favorable and unfavorable to
achieving that objective.
A SWOT analysis provides information that is helpful in matching the firm’s
resources and capabilities to the competitive environment in which it operates. So, it
is instrumental in strategy formulation and selection.
Strengths:
A firm’s strengths are its resources and capabilities that can be used as its
power of being exist in the competitive environment. Strengths of Mahindra and
Honda scooters showroom:
 The Mahindra and Honda Scooters Company both have good
reputation among customers.
 The both company have developed modern scooters by
considering the desired and requirement of customers.
Weakness:
The absence of certain strengths may be viewed as a weakness.
Weakness of both scooters showroom may be considered as:
 Heavy competition.
 High cost structure.
Opportunities:
The external environment analysis may revel certain new opportunities for
profit and growth. Opportunities of both scooters showroom include:
 Due to the population growth the demand of scooters increases.
 Because of fashion or to show the personality the number of people riding
scooter is increasing day by day.

26
Threats:
Changes in the external environmental also may present threats to the firm.
Threats of both scooters showroom include:
 Difficult to have a competition on quality and price with other company’s
scooters.
 Fuel crises in a country.
 Lack of transportation to supply the product out of the Dang.
 Difficult to satisfy consumers demand.
 Situation of political instability in a country.

27
2.1.6 Test of hypothesis
The study that proposed to test two different hypothesis. We will now test
each of these hypotheses on the basis of above table and diagram.
Hypothesis 1:
H0: Both scooters are equally demanded.
H1: Honda scooters are greater demanded than Mahindra scooters.
According to table and fig. 3 and 4, we can conclude that the demand for
Honda scooters is greater than the demand for Mahindra scooters. Thus alternative
hypothesis is accepted.
Hypothesis 2:
H0: The profit of both scooters showroom is constant.
H1: The profit of both scooters showroom is increasing day by day.
According to table and fig. 7 and 8, we can conclude that the profit of both
showrooms is increasing day by day. Thus alternative hypothesis is accepted.
Hypothesis 3:
H0: The investment of both scooters showroom is constant.
H1: The investment is increasing year by year.
According to table and Pie-Diagram 1 and 2, we can conclude that the
investment of Honda scooters showroom and Mahindra scooters showroom is
increasing year by year. Thus alternative hypothesis is accepted.

28
2.2 Major findings and Discussion
Research is the systematic and scientific investigation of any phenomena or
situation. This research was conducted to find out the current market situation of the
Honda and Mahindra scooters showroom. Some of the major findings of this research
are mentioned below:
 The Honda scooters showroom and Mahindra scooters showroom were
established in 2065 and 2067 with the capital of Rs.4000000 and Rs.5000000
respectively and registered in small scale and cottage industry and tax office.
 Thee capital structure of these scooters showroom is increasing day by day
with increase in demand.
 The sales of these two brand scooters are increasing day by day but the Honda
scooters are more demanded than that of Mahindra scooters.
 The position and performance of these two scooters showroom i.e. Honda and
Mahindraare satisfactory.

CHAPTER III
SUMMARY AND CONCLUSION
29
3.1 Summary
This comparative study of opportunities and challenges of Honda and
Mahindra scooters showed a result that the business of scooters are increasing day
by day in present situation in Ghorahi area. That’s why it can be said that
transaction of scooter is one of the successful businesses in Ghorahi. Different
data of Honda and Mahindra scooters showroom from fiscal year 2067/068 to
2069/070 had been taken for the purpose of study. The study is based on
secondary data as well as primary data. The data has been taken from annual
reports, website and direct interview with Managing Director.
By analyzing and interpreting the collected data regarding the business of
Honda and Mahindra scooters the research reached the conclusion that the business of
both Honda and Mahindra scooters are running smoothly and growing rapidly which
leads to increase in capital structure of scooters showroom. But the business of Honda
scooters is growing more rapidly than the business of Mahindra scooters. So profit
earned by Honda scooters showroom is higher than the Mahindra scooters showroom.
Last but not the least, the overall situation of these showrooms is normal.
Although there are some opportunities and challenges of these showrooms but they
has been considered as successful business till now.

30
3.2 Conclusion
As the data collected were analyzed through different means we can conclude
that the business Honda and Mahindra scooters are satisfactory. In present situation
these scooters showroom are trying to maintain the good relationship with customer
by providing quality product and heavy discount. As the population is increasing day
by day the demand of scooters are also increasing. But due to the strong competition
only those branded scooters are demanded whose cost is low and providing heavy
discount.
By analyzing and interpreting the collected data regarding the business of
Honda and Mahindra scooters the research reached the conclusion that the business of
both Honda and Mahindra scooters are running smoothly and growing rapidly which
leads to increase in capital structure of scooters showroom. But the business of Honda
scooters is growing more rapidly than the business of Mahindra scooters. So profit
earned by Honda scooters showroom is higher than the Mahindra scooters showroom.

31
3.3 Recommendation
During research, I found some strength, some weakness, opportunity and
threats of the organization. The strength point should not be loosed and opportunities
should be grabbed. The weakness point should be improved and threats should
visualize and minimized. Here after thee research some of the recommendations for
the Honda and Mahindra showroom are mentioned below:
i) Business owner should give more priority in brand and service rather than
profit.
ii) Different types of discount and special offer should be launched.
iii) Businessman should always try to understand the overall internal and
external environment.
iv) Suggestion, recommendation of customer should be handled.
v) Skill manpower and technology should be used.

Bibliography
Annual records and reports of Honda scooter showroom (2067/068 – 2069/070)
Annual records and reports of Mahindra scooter showroom (2067/068 – 2069/070)
Pant, Prem R. (2010). Business Environment in Nepal.Kathmandu, Buddha Academic
Enterprises: Kathmandu.
Pant, Prem R., Fieldwork Assignment and Report Writing, Buddha Publication:
Kathmandu.
Brooks, P. & Guppy, A. (1990), Driver Awareness and Motorcycle Accidents.
Acharya, Keeshor.(2010).Data Analysis and Modling, Asmita Publication:
Kathmandu.
http://en.wikipedia.org/wiki/mahindra_two_wheelers
32
www.honda2wheelersindia.com
http://en.wikipedia.org/wiki/dang_deukhuri_district
http://inventors.about.com/od/sstartinventions/ss/scooters.html
www.ekantipur.com/en/related-news/scooters-12867.html
www.mahindra2wheelers.com

Appendices
33
Photographs:
(Honda PCX 150 Scooter)
(Honda BeAt-FI CBS Scooters)
(Honda Spacy Scooters)

Summer project part 2

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