SUMMER INTERNSHIP TRAINING REPORT OF ORGANIC SPICIES

Report submitted to In partial fulfillment of the requirements for the award of the degree of Master of Business Administration

Submitted by

ALESH MATHEW
PR11MS1007

Under the guidance of

MR.SIMEON SIMON
Assistant professor, KSBLM

KARUNYA SCHOOL OF BUSINESS LEADERSHIP AND MANAGEMENT KARUNYA UNIVERSITY [Declared as a Deemed University under sec.3 of the UGC Act, 1956] July 2012

DECLARATION

I, hereby declare that the summer internship training report done in PDS ORGANIC SPICIES is a bonafide record of the original work carried out by me in the karunya School of Business leadership and Management , Karunya University and that it has not been submitted earlier elsewhere for the award of any Degree, Diploma or Fellowship.

Place: Kuttikkanam Date:22/06/2012 Signature of the Candidate

CERTIFICATE

This is to certify that the Summer Internship training report done inPDS ORGANIC SPICIES is a bonafide record of work done by Reg No.PR11MS1007 under my supervision and

submitted in partial fulfillment for the award of the degree of Master of Business Administration of Karunya University.

Director

Research Supervisor

Viva voce held on:

Examiner I

Examiner II

ACKNOWLEDGEMENT

I thank almighty god who showered his grace and blessing to complete my project successfully and also I express my sincere thanks to my beloved parents and friends who have provided support and constant encouragement throughout my project. I wish to express my sincere gratitude to Dr. Golla Mulini Darshan, Director InCharge of Karunya School of business leadership and Management for his support and guidance. I wish to thank

prof. simeon simon academic guide, Karunya School of

business leadership and Management for her valuable guidance throughout the study. I thank all the faculty members for their constant support and encouragement. I wish to express my heartfelt gratitude to MR. THOMAS JOSEPH ,(general manager) for his valuable guidance. I wish to thank the staff for their whole hearted support and co-operation extended to me during the course of the project. I wish to thank my family for the constant encouragement and blessings which I value the most. I thank all my friends for their support and help. I am grateful to all the people who had helped me during the Project.

Alesh Mathew

TABLE OF CONTENTS CHAPTER INTRODUCTION Abstract Introduction 1 2 3 3 4 TITLE PAGE NO

Scope of study
Objective of study Limitation of study I INDUSTRY PROFILE AND COMPANY PROFILE 1.1 1.2 NGOS Types of NGOS

6 6 8 8 9 11 12

1.3 Goals of NGOs 1.4 1.5 Company profile vission & mission

1.6 Awakening 1.7 Value addition of organic spices II OBSERVATIONS 2.1. Purchase Department 2.2 Production Department

20 22

2.3 HR Department 23 2.4 Marketing & Sales Department 24 2.5 Finance Department 27
5

2.6 Export Department 2.7 R & D Department

29 30

III

ANALYTICAL REFLECTIONS 3.1 SWOT ANALYSIS 3.2 McKinsey 7S Model 33 35

Conclusion Bibliography 41 Annexure 42

ABSTRACT
6

PDS business is mainly based on seasonally crops .the company collect the crops from framers and sell their products in foreign countries and get a good price . the main strategy of PDS is directly collecting the crops from the certified farmers (the certified farmers means the farmers who have the certificate for organic species) the products of PDS have no preservatives so the products have a huge demand in foreign countries and in local . There is no mediators between suppliers (farmers) and the company so the price of the products will be less in the market . for PDS competitors are less but some privet limited companies are there ,they are not

creating a threaten to the organization Products labelled as organic are those certified as having been produced through clearly defined organic production methods. In other words, organic is a claim related to the production process rather than to the product itself. Hence, the product characteristicsfor organic products are not essentially different from the characteristics of conventional products. As organic products are produced according to certain principles (see EU Strategic Marketing Guide for details) consumers attitude towards these products is that they are safe, healthy, tasting better and environment friendly. The development that has taken place in the organic market in recent years has thus been driven in Europe by a solid base of producers and consumers who are convinced of the ecological and social benefits of organic methods. Therefore, organic food products are increasingly becoming an established market segment.

Peermade Development Society (PDS) is a premier voluntary organization working for the integrated and sustainable development of the rural poor irrespective of religion, caste or creed in the backward District of Idukki, in the state of Kerala, South India. Established in 1980, the Society is registered under the Travancore-Cochin Literary, Scientific and Charitable Societies Act of 1955 (Registration Number I.126/80 Dated 31st July 1980). It is one of the social service wings of the Catholic Diocese of Kanjirapally. Over the last two decades, PDS has grown as a leading non-governmental organization (NGO) in India actively engaged in various socio-economic development activities. It keeps a broad humanitarian outlook by reaching out to the people irrespective of the differences in terms of caste, religion, region, language, sex and
7

age. The virtues of charity and philanthropy are well merged with the principles of development and empowerment in every intervention by the Society.

Today PDS Organic Spices is the Topmost Exporter of Organic Spices from India. It exports certified organic spices to countries like USA, Japan, Germany, U.K, The Netherlands, France, Belgium, Australia etc.

INTRODUCTION

An organization is a planned co-ordination of a number of people and their activities for the achievement of some specific goals through division of labour and hierarchy of authority. An organization study involves the study of the structure and

functioning of its departments. Organizing or organization is one of the important functions of Management. Almost all the organizations are different but they have certain common features. All are collection of people linked together by formal and informal relationships. They have hierarchical orders that are engaged in co-

operative activities and they all have identical boundaries. So the study of people in organization is important for future managers. Structure of an organization is very important for its functioning and growth. It provides the basic frame work for its progress and expansion. For future managers it is important to study the

organizational structure and functioning of successful organizations so that they as future managers may guide organizations towards success and profitable functioning.

SCOPE OF THE TRAINING

8

The study on an organization can provide the student an exposure to the current status of the organization. It will avail him with first hand information on the various levels in an organization and their structural formation. The student can understand the functions of any individual department along with realizing and analyzing the hurdles in the functioning of the organization as a whole. The study also allows him to analyze the strength, weakness, opportunities and tareats of the organization in its field of production. The organization study endows one with the strategies taken by the management to face the competition and to be the leaders in the market.

OBJECTIVE OF THE TRAINING

To have a general idea on the basic business operations of an organization To understand the organization structure and various departments To study the functions of various departments To understand the day to day problems faced by the management To know the remedial steps taken by management To know the duties and responsibilities of each department and personnel To relate theory in practice.

. LIMITATIONS OF THE STUDY

The staffs were co-operative, but they were constrained by time due to their

huge schedule The company personnel do not reveal the trade secrets and some confidential informations like financial and marketing etc..

There is no choice for finding the problems, markets etc. because there are no research activities are carried out

10

CHAPTER 1

11

INDUSTRY PROFILE AND COMPANY PROFILE

1.1. Non-Governmental Organizations (NGOs)

Non-governmental organizations (NGOs) are private, not-for-profit activist organizations which are, as a rule, privately funded, which work to improve conditions in the world we live in, and which commonly focus on humanitarian issues, developmental aid and/or sustainable development. To illustrate how heterogeneous the universe of nongovernmental organizations is, consider this list of acronyms developed to describe and characterize NGOs:

1.2. Types of NGOs

For our purposes, we will distinguish between two main types of NGO:

Advocacy NGOs

Advocacy NGOs defend or promote a specific cause. These organizations typically try to raise awareness, acceptance and knowledge by lobbying, press work and activist events. Advocacy NGOs include organizations such as Amnesty International, Greenpeace, and Human Rights Watch.

12

Operational NGOs

Operational NGOs design and implement development-related projects. These may be relieforiented organizations (e.g. those that provide emergency assistance after a disaster) or development-oriented organizations dedicated to providing long-term solutions to problems. Development NGOs initially tend to focus on relief and welfare, and to deliver relief services directly to beneficiaries. Typical activities include the distribution of food, shelter and health services; these NGOs identify immediate needs and respond to them. Second-generation operational NGOs are oriented towards small-scale, self-reliant local development. At this evolutionary stage, NGOs build the capacities of local communities to meet their needs through "self-reliant local action." Third-generation operational NGOs concentrate on "sustainable systems development". At this stage, they work to advance changes in policies and institutions at a local, national and international level, moving away from their operational service- providing role towards a catalytic role. Operational NGOs may be religious or secular, community-based, national or international.

Over the past several decades, globalization has dramatically increased the importance of NGOs, since many of the problems confronting the world today simply cannot be solved within a single nation. (For more information on the new importance of NGOs, you might want to read this excerpt from the "Code of Ethics and Conduct for NGOs.") Recognizing this, the United Nations passed a resolution in September, 2000, called the "United Nations Millennium Development Goals." In it, member nations and twenty-two partner

13

organizations committed themselves to eight goals, and to making significant progress in each of the areas by the year 2015. Briefly, these goals are as follows:

1.3. GOALS OF NGOS

to eradicate extreme poverty and hunger to achieve universal primary education to promote gender equality and empower women to reduce child mortality to improve maternal health to combat HIV/AIDS, malaria and other diseases to ensure environmental sustainability to develop a global partnership for development

1.4. COMPANY PROFILE

Peermade Development Society (PDS) is a premier voluntary organization working for the integrated and sustainable development of the rural poor irrespective of religion, caste or creed in the backward District of Idukki, in the state of Kerala, South India. Established in 1980, the Society is registered under the Travancore-Cochin Literary, Scientific and Charitable Societies Act of 1955 (Registration Number I.126/80 Dated 31st July 1980). It is one of the social service wings of the Catholic Diocese of Kanjirapally. Over the last two decades, PDS has grown as a leading non-governmental organization (NGO) in India actively engaged in various socioeconomic development activities. It keeps a broad humanitarian outlook by reaching out to the people irrespective of the differences in terms of caste, religion, region, language, sex and age. The virtues of charity and philanthropy are well merged with the principles of development and empowerment in every intervention by the Society.

14

1.5. VISSION & MISSION OF PDS

VISSION The vision of the Society is that they have life and have it abundantly. The goal of Peermade Development Society is derived from this vision statement and that is empowerment of village communities especially the tribal, women, children and the marginal farmers towards sustainable development by conserving and enhancing local resources in order to have fullness of life.

MISSION

To provide job opportunities to people in backward area and thereby increase their standard of living.

Optimum utilization of natural resources in spices production. Maximum exploitation of opportunities for growth and to generate optimum returns to farmers.

To contribute for the overall well being of the society.

Programmes

Infrastructure

15

Tribal Development

Bio Control Agents

Women Development Programme

Sahyadri Farmer's Consortium

Micro Enterprise Development

PDS Organic Spices

Family Sponsorship Programme

PDS Organic Tea

Family Counselling Centre

Technology Resource centre (TRC)

Innovators' technology development Insurance Programme centre

Watershed Development Programmes

Research and Documentation

Organic Farming

Consultancy services

Biotechnology

Sahyadri Ayurveda Division

16

1.6. The Awakening

PDS being the prominent NGO in the area started receiving calls for help from various villages. Fr. Mathew Arackal, the Executive Director then, (Presently Bishop of Kanjiralppally Diocese), wanted to find a solution for this. Thus, a National Consultation to study the reasons of these calamities was conducted in 1995. Senior scientists from Department of Science and Technology, Experts from major NGOs in India and farmer representatives were invited. After the three days presentations, deliberations and exposure visits to various areas in the district it was concluded that PDS should motivate farmers to go in for organic agriculture, controlled weeding, livestock farming, soil and adoption of suitable water conservation measures etc.

The First Step

To help the farmers overcome the above mentioned problems PDS decided to start a project on organic farming. For this 20 villages were selected with 50 farmers from each village. In each of these villages a demonstration farm was developed where all possible organic farming practices were adopted. The farmers under the project were trained on the basic concepts of organic farming and organic practices. They were assisted in preparing vermicomposting, digging of manure pits, planting of nitrogen fixing plants, weed management etc. The impact of the project was that more than 500 farmers gained confidence in organic farming and adopted this.

17

The Second Step

Realizing the need for an integrated approach on soil and water conservation for revitalizing the farming areas, PDS implemented a watershed management programme as a pilot project. Activities like construction of check dams, gully plugging, stone terracing, soil bunding, protection of streams, construction of ponds and water tanks, spring development, agro-forestry etc were done. Organic farming was given emphasis in the watershed area. This programme was very much appreciated and the government of India appointed PDS as the nodal agency to impart training to NGOs and government officials in South India. There after PDS implemented many watershed development projects in different parts of Idukki district. Establishment of Sahyadri Research Institute of organic Agriculture With the increase in the number of organic farmers PDS started a research wing on organic agriculture. Prof. Mathew P. John, former head of Chemistry Department in Christ College, Irinjalakuda was brought in as the department head. A soil testing laboratory was established, model vermiculture unit. The trainings on organic farming are conducted here using the demonstration units.

1.7. Value addition of organic spices

White pepper: The purchase of black pepper after paying a premium was a blessing to the farmers. In addition to this the farmers were trained in the processing of white pepper on a commercial basis which was a value addition. Till then the house wives made white pepper for their house hold uses. But not on a commercial scale as it there wasnt a good market for that. Through a series of training and frequent farm visits we could make the farmers confident in the commercial production of white pepper. Now the entire white pepper produced by our certified farmers are procure by us at a premium price. Sliced Ginger: Drying of ginger was always a problem for the farmers as it required removal of the skin. This required so much of labour and drying required many days. But when PDS started the purchase of fresh ginger for making sliced ginger it became easy for them. The demand for ginger is on an increase which made farmers to cultivate more ginger.
18

PDS Organic Spices In 2002 the Organic Agri-Products & Exports Division began construction of an own processing facility at Valanjanganam, near Kuttikkanam. It was completed in 2005. The office was shifted from the small space at Pothupara camp office to the new facility and the name was changed to PDS Organic Spices. Similarly processing was carries out in the new facility from March 2005 onwards.

Today PDS Organic Spices is the Topmost Exporter of Organic Spices from India. It exports certified organic spices to countries like USA, Japan, Germany, U.K, The Netherlands, France, Belgium, Australia etc.

WHAT IS ORGANIC SPICIES(eu market survey)

Organic farming is carried on in almost all countries of the world. The share of organic farms in overall farmland and in terms of numbers of holdings, as well as the consumption of organic products, is growing continuously. The organic market is not only growing in Europe, North America and Japan, where the largest markets are to be found, but also in many emerging economies and economies in transition. The roots of organic farming, however, lie in Europe. The development that has taken place in the organic market in recent years has thus been driven in Europe by a solid base of producers and consumers who are

19

convinced of the ecological and social benefits of organic methods. Therefore, organic food products are increasingly becoming an established market segment.

Products labelled as organic are those certified as having been produced through clearly defined organic production methods. In other words, organic is a claim related to the production process rather than to the product itself. Hence, the product characteristics for organic products are not essentially different from the characteristics of conventional products. As organic products are produced according to certain principles (see EU Strategic Marketing Guide for details) consumers attitude towards these products is that they are safe, healthy, tasting better and environment friendly. It should be noted that the term organic is mainly used by the Anglo-Saxon countries, while other countries use the term biologic. Also of importance is the term sustainable agriculture or production, which is often used in literature. Sustainable is a broader term than organic, which, while also including organic, also includes natural or Fair Trade agriculture for example. These types of agriculture do not necessarily have to be organic. Standards for organic food production and labelling in the European Union are laid down in Council Regulation (EEC) 2092/91. This regulation and subsequent amendments establish the main principles for organic production at farm level and the rules that must be followed for the processing, sale and import of organic products from third (non-EU) countries. Organic food products encompass an enormous diversity of product groups. In this survey we will focus on a limited number of product groups that are interesting for exporters in developing countries. More specifically, the product groups include most of those covered in CBI's Export Development Programme Organic Food Ingredients for Industrial Use.

The main product groups discussed in this survey include: Coffee, tea and cocoa Grains, pulses and seeds Vegetable oils and fats Edible nuts Spices and herbs Dried fruits
20

 Fruit juices and concentrates Sugars Honey

Exporters interested in other processed fruits and vegetables than those mentioned above (such as frozen fruit and vegetables and dried vegetables) are referred to CBI's EU Market Survey Preserved fruit and vegetables. Processed fruits and vegetables are used in products like ready meals or jams. The markets for organic end-products are still under-developed and offer opportunities for growth.

21

1.9. ORGANIZATION STRUCTURE

ORGANISATIONAL STRUCTURE IN PDS ORGANIC SPICIES

MANAGING DIRECTOR

EXECUTIVE DIRECTOR

GENERAL MANAGER

PRODUCTION MANAGER

SYSTEM ADMINISTRATOR

FINANCE MANAGER

PURCHASE MANAGER

MARKETING MANAGER

SUPERVISORS

Asst. MANAGER

ZONAL Mgr. NORTH

ZONAL Mgr. SOUTH

WORKERS

ACCOUNTANT

SALES OFFICERS

SALES OFFICERS

CLERK

EXECUTIVES

EXECUTIVES

22

Organization structure is the established pattern of relationship among various components of parts of the enterprise. It states the relationship among various positions and activities. The structure provides a basis or framework for managers and other employees to perform their various functions. The structure also facilitates work flow in the organization. PDS ORGANIC SPICES has a General Manager under the control of Managing Director and Executive Director. There are four managers and a system administrator is under the General Manager. They are production manager, finance manager, purchase manager and marketing manager. The organizational structure is functional organizational structure. In functional organizational structure the employees are grouped together on the basis of business functions they need to do in their job.

23

CHAPTER 2
OBSERVATION

24

OBSERVATION

DEPARTMENTS

In every organization different departments are present. These departments are performing verity of functions. They coordinate men material labor for the attainment of organizational objectives. In PDS ORGANIC SPICIES there are 8 departments exist, they are

Purchase Department.

Production Department.

Marketing Department.

Finance Department.

Human Resource Department.

Export Department.

25

Research and Development Department.

Each department is coordinating their activities for attainment of group goal. Each department is effectively utilizing their resources. Each department is link with other department also. All departments are fully controlled by Managing Director.

2.1. PURCHASE DEPARTMENT

The purchase department is the department where they do the purchase of raw materials (from certified farmers) needed for the production. If the purchase of raw materials is not done properly then it affects the production and in turn affects the functioning of the organization. Purchase department consist of GM, Purchase manager, Quality officer, supervisor and workers. The main function of the department is the purchase of raw materials from different centers. Purchase Department is directly controlled by MD. It is done to assure the procurement of quality raw materials. The company makes purchase directly from farmers through companies collection centre or through local centre. Price is fixed by quality officer after checking quality.

26

STRATEGIES OF PURCHASING DEPARTMENT

The purchase manager should follow certain principles for effective performance of the purchase department. They are:

Right quality. Right quantity. Right time. Right price.

OBJECTIVES OF PURCHASE DEPARTMENT

To make continuous flow of raw materials.

To purchase right quality of raw materials.

Right quantity of raw materials should be delivered at right time.

To make purchase at the most economical price.

To maintain a healthy relationship with suppliers which in turn ensure best term of supply of raw materials.

27

2.2. PRODUCTION DEPARTMENT

Production is the process of making products. It this process, different inputs like material, man, capital, and other resources are transformed into higher valued goods and services. E.S.Buffa defines, Production is a process by which goods and services are created. Production may be goods and services. In production different inputs like materials, human, capital and other resources are transformed into higher value of goods and services. Every manufacturing organization has a production department. Their main functions are to make the production very efficient and produce the product with the available resources. If the production function is not carried out efficiently then it affects the whole functioning of the organization. Production department consist of production manager, supervisors, and workers etc, production function is carried out by their department.

STRETIGIES OF PRODUCTION DEPARTMENT

Mass production in low cost Delivery the products in time Optimum utilization of resources Proper waste management

28

Main objectives of production department.

To produce quality products. To complete the works at reasonable time period.

To produce goods at reasonable cost.

2.3. HUMAN RESOURCE DEPARTMENT

Human resources are the wealth of an organization which can help in it achieving its goal. Human resource management is concerned with the human being in an organization. Human resource is the total knowledge, abilities, skills, talents and aptitude of an organizations workforce.

In PDS ORGANIC SPICIES HR Department is controlled by the HR manager and MD. This department controls the functions like recruitment, selection, training etc. The management gives all the facilities and allowances to the workers.

Recruitment and Selection

Selection is conducted through the advertisement in the newspapers and kept a short list of the applicant. From the short list, company calls for general interview. This will be done by the Board of Directors. After this interview, chose more suitable persons. Finally, conduct a group discussion with Board of Directors and selected from this section. Firstly they provide six month training period and also get stipend in that period.

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STRATEGIES OF H R DEPARTMENT

Placing the right persons for the right job Maintaining good relationship between employees

2.4. MARKETING DEPARTMENT

Marketing plays an important role in the society by helping us satisfy our needs and wants and helping organization determine what to produce. The activity of marketing is of the people. The word marketing is a common word in every days life. It has major roles to play in a manufacturing organization. Marketing is the distinguishing, unique function of the business. The main objective if marketing goods and services is to satisfy the customers. This department is considered as the asset of the company. Marketing manager is often responsible for influencing the level, timing and composition of customers demand in a manner that will achieve the companys objectives.

Marketing Process

The marketing process involves the following three major activities:

1. Concentration: - Concentration refers to assembling goods produced at different production centers at common market place.

30

2. Dispersion: - The goods assembled at a central place have to be distributed to the customer.

3. Equalization: - Equalization process lies in between concentration and dispersion. It consists of adjustment of supply to demand on the basis of time quality and quantity.

The department is headed by Marketing Manager, Sales Manager, Area sales Manager, Sales Executives and Sales representatives etc. The function starts with receiving orders. The company has distributors on market the products.

Promotional efforts

It is the process of communicating about the product to current and potential customers in order to persuade them to buy the product. Promotional like advertisement, trade or dealer promotion, increase rate of commission of the representatives etc, are followed by the company.

Pricing Strategy.

Fixing the price for a product is the main task for an organization. The main factor considering before pricing the product is the cost incurred for production and the demand of the product. The price is fixed according to the following equation.
31

Price=production cost + Packing material cost + advertisement cost + profit. In pds organic spicies direct sales of its products is done (ie, there is no sales exicutivies).

Advertisement.

Advertisement is an important tool of promotion. PDS ORGANIC SPICIES followed different marketing techniques to market their products. They mainly advertise their products through:

Newspaper. Flex.

Objectives of the Marketing Department.

To provide goods to the customer at correct time.

To built a zero percentage complaint marketing system.

To create goodwill through selling quality goods at responsible price to the customer.

32

To stabilize the price of goods by moving goods to the place where.

Prices are high from the place where the prices are low.

To ensure the growth of the enterprise by supplying quality goods at reasonable prices.

2.5. FINANCE DEPARTMENT

Finance is defined as the provision of money at the time when it is required. Every enterprise whether big or medium or small, need finance to carry on its operations and to achieve its targets. It is rightly said to be a lifeblood of an enterprise.

Function of a finance manager in PDS ORGANIC SPICES.

The size and extent of business activities are dependent upon the availability of finance. Financial reporting may be used as a technique to control. In the business context, a finance manager is expected to do the following functions.

Financial forecasting and planning.

Acquisition of funds.

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Investment of funds.

Helping valuation decision.

Maintaining proper liquidity.

Responsibility of Finance Manager.

Cash arranged on a schedule wise. Credit maintained for the distribution. Immediate D.D and cheques are provided to the requirements. Day to day company expenses is maintained.

Yearly return, sales return, auditing etc are done by him.

STRATEGIES OF FINANCIAL DEPARTMENT

Raising the funds in right time Allocating the require amount for each department Transparent account system

34

2.6. Export Department

Organic Agri-Products &Exports Division

The first export of organic black pepper was done in 1998 after processing the same at M/s. Cochin Spices Pvt. Ltd, a unit situated in the Cochin Special Economic Zone. Ever since the processing of organic spices till 2005 was done here.

PDS ORGANIC SPICIES wishes to consolidate its export activity to create its own foreign trade department so it can handle the different tasks that enable its continued presence in international markets. As sales are solely the result of a marketing policy, the export department might be described as an instrument that carries out all the tasks generated by international marketing policies of the company.The export department has very definite goals: to perform all tasks related to international sales. Upon analyzing the export activities of the company that have experienced stable growth in their exports, one researcher observes that, historically, their international

contacts.started out sporadically and only later started to consolidate. That was when they made the decision to expand their the international trading staff to penetrate other markets to a greater extent and better.When interviewing PDS ORGANIC SPICES foreign departments, we discover that their reasons for creating the consolidate export structures have nothing to do with academic reasoning, instead the reasons were:

Excess production. Given the high stocks, the need to increase sales quickly, at all costs.

This in turn resulted from product quality problems, pricing, even distribution problems or lack of promotion.

35

The number of markets in which it has a presence is also related to the size of the company, as a large company have the reaources to invest more capital and can therefore diversify into more markets. The state of development of the destination country inversly reflects the size of the Export Department. The more developed the country the smaller the Export Department. (Fewer complications/barriers involved in exporting).

There are many common elements in the paths taken by company to create an Export Department.

Analyse and list all the advantages and disadvantages of outsourcing for an

export department. Which tasks would you prefer to carry out in house and which would you outsource? You can take the company you work for as an example, if relevant.

Think of the advantages that e-business can offer to the export department.

2.7. RESEARCH AND DEVELOPMENT DEPARTMENT

PDS ORGANIC SPICIES has a well known R and D department. The human Resource of the R & D division includes qualified mechanical & electronic technician and

36

trained laboratory technician who implement internationally acknowledged analytical procedures. When this department gets an idea about a new product they produce a small quantity of it. Then this product in supplying to the market & it is well accepted by the consumers. The company will start to produce a bulk quantity of that product. R and D division always seeks innovation.

STRATEGIES OF R&D DEPARTMENT

Introducing new standard packing Go green policy Introducing advanced technology in production

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CHAPTER 3
ANALYTICAL REFLECTIONS

38

ANALYTICAL REFLECTIONS

3.1. SWOT Analysis

STRENGTHS

ISO 22000 Certified organization. Very experienced company. Very committed and efficient employees. The company has a good will which is main strength of the company. Maintains a good customer relationship. Maintains a good employee relationship. Companys own plantations. Latest technologies and machines are used for production.

WEAKNESS

The organization has little reputation in other part of government Under staffing and weak human resource policies

39

OPPORTUNITIES.

Scope of wide market in the country. Organic species has a huge demand in the global market. Globalization gives an opportunity to penetrate more export market. Good community response Favourable distribution of resource. Support from media and advocacy organization.

THREATS

Government restrictions and lack of political will Anti NGO approaches by media and advocacy organization Lack of access to target groups and locations.

Increasing number of competitors in the market. The major threat faced by the company is the tight competition in the future from the competitors. They introduce the product with unique features which attract customers very easily.

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3.2. Mckinsey 7-s model

structure

systems

strategy

Shared Values skills style

staff

41

OBJECTIVES OF MODEL

The performance of the company can increased Align department and processes during a merger acquisition Determine how to implement a proposed strategy

The 7 s model of mckinsey is a value based management (VBM) model that describes how one can holistically and effectively organize a company . Together these factors determine the way in which a corporation operates

1. Shared value PDS is a premier voluntary organization working for the integrated and sustainable development of the rural poor irrespective of religion ,caste or creed in the backward district of idukki ,in kerala state . The vision of the Society is that they have life and have it abundantly. The goal of Peermade Development Society is derived from this vision statement and that is empowerment of village communities especially the tribal, women, children and the marginal farmers towards sustainable development by conserving and enhancing local resources in order to have fullness of life.

2. Strategy PDS business is mainly based on seasonally crops .the company collect the crops from framers and sell their products in foreign countries and get a good price . the main strategy of PDS is directly collecting the crops from the certified farmers (the certified farmers means the farmers who have the certificate for organic species) the products of PDS have no preservatives so the products have a huge demand in foreign countries and in local . there is no mediators between suppliers (farmers) and the company so the price of the products will be less in the market . for pds competitors are less but some privet limited companies are there ,they are not

creating a threaten to the organization

42

Today PDS Organic Spices is the Topmost Exporter of Organic Spices from India. It exports certified organic spices to countries like USA, Japan, Germany, U.K, The Netherlands, France, Belgium, Australia etc.

3. Structure

PDS ORGANIC SPICES has a General Manager under the control of Managing Director and Executive Director. There are four managers and a system

administrator is under the General Manager. They are production manager, finance manager, purchase manager and marketing manager. The organizational structure is functional organizational structure. In functional organizational structure the employees are grouped together on the basis of business functions they need to do in their job. 4. System

In PDS ORGANIC SPICES they has some systems or internal process to support and implement the strategy and run day today affaires. Traditionally the organization have being following bureaucratic style process model where most decision are taken are taken at higher management level . The organizations are now simplifying and modernizing their process by innovation and use of new technology to make the decision making process quicker . special emphasis is on the customers with the intention to make the processes the involve customers are user friendly as possible

5. Skills

It describes the actual skills and competencies of the employees working for the company All mployees working in production department have technical skill. Employees have ability to do the work.

43

Employees skills are monitored and assessed on the basis of their performance.

6. style

PDS ORGANIC SPICES

have their own distinct culture

and management style.it

includes the dominant values ,beliefs and norms which develop over time and become relatively enduring features of the organizational life.it also entails the way mangers interact the employees and the way they spend their time the business have traditionally influenced by the military style of management and culture where strict to the upper management .culture remains an important consideration in the implementation of any strategy in the organization

7. Staff Organization are made up of humans and its the people who make the real difference of the success of the organization in the increasingly knowledge based society . The importance of of human resources has thus got the central position in the strategy of organization away from the traditional model of capital and land . PDS have a good staffing system.

44

CONCLUSION

FINDINGS

The company maintaining a healthy relationship with their employees as well as customers.

There are experienced quality officers to test the quality of the products.

The organization starts at 1980 and it is running and known with the same brand name.

There is also a healthy relationship between the brokers and other dealers.

The company using latest technologies and machines for production.

SUGGESTIONS OR RECOMMENDATIONS

Proper training methods should be adopted.

They must adopted proper marketing techniques.

Infrastructure facilities must be improved.

45

CONCLUSION

The analysis of the organizational structure and department of the PDS ORGANIC SPICIES was the main objective of the study. From the study and survey the research could understand that the company having a very good financial and marketing structure and most all the customer of the company are fully satisfied. The quality of the product is up to the expectations of the customers.

46

BIBILIOGRAPHY

1. Kotler Philip (1985), Marketing Management, New Delhi, Prentice Hall of India Private Limited. 2. Strauss George and Sayles Leonard R., Personal and Human Problems of Management, Prentice Hall of India. 3. Taha Hamdy A., Operations Research An Introduction, Prentice Hall of India. 4. Pandey I.M., Financial Management, Vikas Publications House. 5. Web = www.Pdsorganicspicies.com = www.spiciesindia.com

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ANNEXURE

Certification
Control Union Certifications issued the following certificates

INDIA ORGANIC NPOP

EU

US NOP

BIOSUISSE

JAS

NATURLAND

DEMETER

FAIR - TRADE

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FAIR TRADE
The FLO-CERT GmbH Certification for Development has certified PDS Organic Spices to trade in Fair Trade products from March 16, 2009 onwards. Our FLO ID 21286. Producer group PDS Organic Spices promoted another NGO termed as Sahyadri Organic Small Farmers Consortium (SOSFC). We sources spices from SOSFC. It guarantees farmers are paid a fairtrade minimum price for their products and premium for improving their standard of living.

Naturland Certification
In addition to the organic certification of the project PDS been certified as per the standards for organic production and processing of Naturland, Germany. With this we have qualified to affix the Naturland Logo on our packages and market them under this logo. This will help us to bag the orders from buyers who prefer Naturland certified products.

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Demeter International
PDS Organic Spices now intends to go in for the certification of the spices produced using the Bio Dynamic methods as per the Demeter standards. The certification body Control Union Certifications has been approached for this. The inspection and certification will be conducted in August 2009.

Forest Garden Produce

This certification is under progress. This is based on clean organic production, increasing farm sustainability, ensuring fair social equity, building back biodiversity, reducing carbon footprint etc. It operates under the International Analog Forestry Network (IAFN).

ISO 22000

PDS Organic Spices have been certified as per ISO 22000:2005 Food Safety Management System by Bureau Veritas, Certification (India) Pvt. Ltd. The certification is accredited by UKAS (United Kingdom Accreditation Services). This quality certification will place us better among the suppliers as the buyers prefer to buy only from reliable suppliers who have established efficient food safety management systems.

50

PRODUCT PROFILE

Pds product list

Organic/Fair Trade Sterilized Organic Spices

Black Pepper MG1Piper nigrum L PepperPiper nigrum

Dehydrated Green

Black Pepper Fine GroundPiper CrushedPiper

Black Pepper

Black Pepper Butcher CutPiper BrinePiper

Green Pepper In

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White Pepper WholePiper GroundPiper

White Pepper

Ginger SlicedZingiber officinale

Ginger GroundZingiber officinale

Turmeric

Turmeripowder

Organic/Fair Trade Unsterilized Organic Spices

Cardamom (WholeElettaria cardamomum.)

Clove (WholeSyzygium aromaticum )

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Clove (GroundSyzygium aromaticum)

Nutmeg

Mace

Cinnamon WholeCinnamomum zeylanicum

Vanilla

Vanilla

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Product List of TruBio Organic Spices

This is the retail brand of PDS Organic Spices launched on June 19, 2012.

Organic/Fair Trade /Demeter/Steam Sterilized - Organic Spices MRP Quantity (in Rs)

Organic Spices

Botanical Name

Black Pepper Whole

Piper nigrum L Piper nigrum L Piper nigrum L Piper nigrum L Piper nigrum L

85gm

65.00

Black Pepper Fine Ground

75gm

60.00

Black Pepper Coarse Ground

75gm

61.00

White Pepper Whole

85gm

88.00

White Pepper Powder

85gm

89.00

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Turmeric Powder

Curcuma Longa Zingiber

75gm

47.00

Ginger Powder

50gm

39.00

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Packing Details
Standard Bulk Packing of Organic Spices

It is also possible to pack spices as per buyers requirement.

Black Pepper Whole Black Pepper Powder White Pepper Whole White Pepper Powder Turmeric Whole Turmeric Powder Ginger Whole Ginger Slices Ginger Powder Nutmeg Mace Clove Cardamom Rosemary Thyme

25 Kg Packed in laminated paper bags 25 Kg Packed in laminated paper bags 25 Kg Packed in laminated paper bags 25 Kg Packed in laminated paper bags 25 Kg Packed in HDPE woven unlaminated bags with liner 25 Kg Packed in laminated paper bags 25 Kg Packed in HDPE woven unlaminated bags 25 Kg Packed in HDPE woven unlaminated bags 25 Kg Packed in laminated paper bags 25 kg Packed in 5 Ply corrugated paper carton with liner 7 kg Packed in 5 Ply corrugated paper carton with liner 25 kg Packed in 7 Ply corrugated paper carton with liner 20 kg Packed in 7 Ply corrugated paper carton with liner 10 Kg Packed in HDPE woven unlaminated bags with liner 15 Kg Packed in HDPE woven unlaminated bags with liner

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