Industry

Profile
1
 Industry Profile

A well developed transport network indicates a well developed economy. For rapid
development a well-developed and well-knit transportation system is essential. As India’s
transport network is developing at s fast space, Indian Automobile Industry is growing
too. Also, the Automobile Industry has strong backward and forward linkages and hence
provides employment to a large section of the population. Thus the role of Automobile
Industry cannot be overlooked in Indian Economy. All kinds of vehicles are produced by
the Automobile Industry.

The Automobile Industry in India-the tenth largest in the world with an annual
production of approximately 2 million units-is expected to become one of the major
global automotive industries in the coming years. A number of domestic companies
produce automobiles in India and the growing presence of multinational investment, too,
has led to an increase in overall growth. Following the economic reforms of 1991 the
Indian automotive industry has demonstrated sustained growth as a result of increased
competitiveness and relaxed restrictions.

Indian Automobile Industry includes the manufacture of trucks, buses, passenger cars,
defense vehicles, two-wheelers, etc. The industry can be broadly divided into the car
manufacturing, two-wheeler manufacturing and heavy vehicle manufacturing units.

The major two-wheeler manufacturers are:

1. Hero Moto Corp

2. Yamaha Motors
3. Honda Motors
4. Suzuki Motors
5. TVS Motors
6. Mahindra & Mahindra

2
7. Bajaj Auto
8. Royal Enfield
9. Piaggio & C. SpA
10. Kinetic Engineering Ltd.

The heavy motors like buses, trucks, defense vehicles, auto rickshaws, and other multi-
utility vehicles are manufactured by TATA-Telco, Ashok Leyland, Eicher Motors, Bajaj,
Mahindra & Mahindra, etc.

Following India’s growing openness, the arrival of new and exiting models, easy
availability of finance at relatively low rate of interest and price discounts offered by the
dealers and manufacturers all have stirred the demand for vehicles and a strong growth of
the Indian automobile industry.

3
Company
Profile

4
 Introduction

The Navjivan motors pvt. Ltd (hero) is well established in Surat, it was
set up in 2007, under companies’ act 1956 . Their main aim is to satisfy customer’s needs by
providing service in two-wheelers. The name of the company in itself suggests a different in it.
There are total 308 employees. The major competitions of NAVJIVAN are better service for two-
wheelers, etc. NAVJIVAN is the small scale unit.

NAVJIVAN MOTORS PVT. LTD (HERO) began operation in 2007 under the
leadership of Mr. Hitesh Gajjar for the better service provider of HERO two-wheelers and they
are providing service department, accident department, advantage department with a diversified
product range and a reputed market presence.

5
 Mission

We at Navjivan motors pvt. Ltd. has identified the following objectives

in pursuit of our quality policy: - To increase the number of customers at least by 40
percent from our existing every year. - To execute all the servicing within agreed time-
frame. - To update the skills of employees by providing 20 hours training regularly on
yearly basis.

Vision

To be a leading automobile dealer in Gujarat in the forthcoming years and maintaining

the level of quality service and implementing the concept of KAIZEN

6
 History and Development

“Hero” is the brand name used by the Munjal brothers for their flagship
company, Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor
Company was established in 1984 as the Hero Honda Motors Limited at Dharuhera,
India. Munjal family and Honda group both owned 26% stake in the Company. In 2010,
it was reported that Honda planned to sell its stake in the venture to the Munjal family.

During the 1980s, the company introduced motorcycles that were

popular in India for their fuel economy and low cost. A popular advertising campaign
based on the slogan 'Fill it – Shut it – Forget it' that emphasized the motorcycle's fuel
efficiency helped the company grow at a double-digit pace since inception. The
technology in the bikes of Hero Honda for almost 26 years (1984–2010) has come from
the Japanese counterpart Honda.

Hero MotoCorp has three manufacturing facilities based

at Dharuhera, Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants together
are capable of churning out 3 million bikes per year. Hero MotoCorp has a large sales
and service network with over 3,000 dealerships and service points across India. Hero
Honda has a customer loyalty program since 2000, called the Hero Honda Passport
Program.

The company has a stated aim of achieving revenues of $10 billion and
volumes of 10 million two-wheelers by 2016–17. This in conjunction with new countries
where they can now market their two-wheelers following the disengagement from Honda.
Hero MotoCorp hopes to achieve 10 per cent of their revenues from international
markets, and they expected to launch sales in Nigeria by end-2011 or early-2012. In
addition, to cope with the new demand over the coming half decade, the company was
going to build their fourth factory in South India and their fifth factory in Western India.
There is no confirmation where the factories would be built.

7
 Company at a Glance
 Name of the Company :
Navjivan Automobiles Pvt. Ltd. (HERO)
 Address:
D-5, Navin Flourine Compund,
Beside Reliance Petrol Pump,
Udhna-Bhestan Road, Surat(Gujarat)
Ph. : 0261-2892496/97
Fax : 0261-2892498

Email : navjivanautomobiles@yahoo.co.in

 Form of the organization :

Small scale unit

 Branch Manager :
Mr. Rohit Sharma

 Top Products :

Impulse (Bike)
CBZ Xtreme (Bike)
Hunk (Bike)
Karizma ZMR (Bike)
Passion Plus/Pro (Bike)
Splendor Plus/Pro/NXG (Bike)
Pleasure (Scooter)
Maestro (Scooter)

 Promoter :
Mr. Rohit Sharma

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 Bankers :
HDFC Bank

 Competitors :
Dream Honda
Shivani Motors
Dhruv Automobiles
Ganga automobiles

9
Location chart:

10
 Human
Resource
Department
11
 Introduction

Human resource management (HRM or simply HR) is the management of

an organization's workforce, or human resources. It is responsible for
the attraction, selection, training, assessment, and rewarding of employees, while also
overseeing organizational leadership and culture, and ensuring compliance
with employment and labor laws. In circumstances where employees desire and are
legally authorized to hold a collective bargaining agreement, HR will also serve as the
company's primary liaison with the employees' representatives (usually a labor union).

HR is a product of the human relations movement of the early 20th century, when

researchers began documenting ways of creating business value through the strategic
management of the workforce. The function was initially dominated by transactional
work such as payroll and benefits administration, but due to globalization, company
consolidation, technological advancement, and further research, HR now focuses on
strategic initiatives like mergers and acquisitions, talent management, succession
planning, industrial and labor relations, and diversity and inclusion.

In startup companies, HR's duties may be performed by trained professionals. In larger

companies, an entire functional group is typically dedicated to the discipline, with staff
specializing in various HR tasks and functional leadership engaging in strategic decision
making across the business. To train practitioners for the profession, institutions of higher
education, professional associations, and companies themselves have created programs of
study dedicated explicitly to the duties of the function. Academic and practitioner
organizations likewise seek to engage and further the field of HR, as evidenced by
several field-specific publications.

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Its aspects are as under:

Recruitment:

Recruitment refers to the process of attracting, screening, selecting, and on boarding a

qualified person for a job. At the strategic level it may involve the development of
an employer brand which includes an 'employee offering'.

The stages of the recruitment process include: job analysis and developing a person
specification; the sourcing of candidates by networking, advertising, or other search
methods; matching candidates to job requirements and screening individuals using testing
(skills or personality assessment); assessment of candidates' motivations and their fit with
organizational requirements by interviewing and other assessment techniques. The
recruitment process also includes the making and finalizing of job offers and the
induction and on boarding of new employees.

Depending on the size and culture of the organization recruitment may be undertaken in-
house by managers, human resource generalists and / or recruitment specialists.
Alternatively parts of all of the process might be undertaken by either public sector
employment agencies, or commercial recruitment agencies, or specialist search
consultancies.

Navjivan is one of the prominent and authorized automobile dealers in the city. Basically
for the recruitment of the new staff, there is no such procedure. In Navjivan recruitment
is done on the basis of reference. Firstly the employee is recruited as a temporary staff,

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and then after 5-7 month he became permanent. The total no of worker in the Navjivan
group is around (500) and the no of worker in this branch is (75).

Training and Development:

Human Resource Management, training and development is the field which is concerned

with organizational activity aimed at bettering the performance of individuals and groups
in organizational settings. It has been known by several names, including human resource
development, and learning and development.

Harrison observes that the name was endlessly debated by the Chartered Institute of
Personnel and Development during its review of professional standards in 1999/2000.
"Employee Development" was seen as too evocative of the master-slave relationship
between employer and employee for those who refer to their employees as "partners" or
"associates" to feel comfortable with. "Human Resource Development" was rejected by
academics, who objected to the idea that people were "resources" &m dash; an idea that
they felt to be demeaning to the individual. Eventually, the CIPD settled upon "Learning
and Development", although that was itself not free from problems, "learning" being an
over general and ambiguous name. Moreover, the field is still widely known by the other
names.

The "stakeholders" in training and development are categorized into several classes.
The sponsors of training and development are senior managers. The clients of training
and development are business planners. Line managers are responsible for coaching,
resources, and performance. The participants are those who actually undergo the
processes. The facilitators are Human Resource Management staff. And the providers are
specialists in the field. Each of these groups has its own agenda and motivations, which
sometimes conflict with the agendas and motivations of the others.

14
The conflicts that are the best part of career consequences are those that take place
between employees and their bosses. The number one reason people leave their jobs is
conflict with their bosses. And yet, as author, workplace relationship authority, and
executive coach, Dr. John Hoover points out, "Tempting as it is, nobody ever enhanced
his or her career by making the boss look stupid.”Training an employee to get along well
with authority and with people who entertain diverse points of view is one of the best
guarantees of long-term success. Talent, knowledge, and skill alone won't compensate for
a sour relationship with a superior, peer, or customer.

In Navjivan more emphasis is given to customer satisfaction and for that they need
trained and qualified staff who handle customer to their best.

Navjivan had started various training programs for the development of skill and
knowledge of the employees

1) RACING AHEAD:

The main objective of this program:

a. Recapitulate key learning points from the work shops:

-Mastering product

-Customer connect

b. Practice essential techniques and responses for managing different kinds of

objections effectively.

c. Practice managing objections against HERO product with reference to the

corresponding competing products.

d. Recognize the importance of ensuring customer delight through the right

knowledge, skill, and attitude.

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Internal Mobility:

The movement of employees from one job to another either vertically or laterally within
an organizational structure.

Internal mobility is a cluster comprising of promotion, demotion, transfer and

separations. Such movements may take place between positions in specific areas,
departments, divisions or establishments for employers with multiple establishments.

In Navjivan employees can be moved from one branch to another branch, but except this
there is no such internal mobility.

Work Time:

The work time in Navjivan is from 9:00am to 5:00pm and the wages is paid according to
that.

Bonus:

100% bonus is given to permanent employees.

60% bonus is given to temporary employees.

Human Resource Data:

NO of employees: (75)

Permanent employees (40)

Temporary employees (35)

The ratio of permanent to temporary employees is 8:7.

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No. of employees as per department and their salary structure:

Name of department Salary No. Of employees

Account 10000 3

RTO 6000 2

Insurance 5000 2

Billing 5000 2

Renewal 5500 2

D.M.S 6000 2

Exchange 6000 3

Spare part 6000 5

A.S.M 15000 2

Workshop 5000 35

Supervisor 10000 3

Frontline(job card) 7500 5

P.D.I (Pre-Delivery Inspection) 8000 5

17
 Finance
Department

18
 Introduction

Finance is the branch of management that concerns itself with the managerial
significance of finance techniques. It is focused on assessment rather than technique.

The difference between a managerial and a technical approach can be seen in the
questions one might ask of annual reports. The concern of a technical approach is
primarily measurement. It asks: is money being assigned to the right categories? Were
generally accepted accounting principles (GAAP) followed?

The purpose of a managerial approach, however, is to understand what the figures mean.

 Someone using such an approach might compare the returns to other businesses in
their industry and ask: are we performing better or worse than our peers? If we are
performing worse, what is the source of the problem? Do we have the same profit
margins? If not, why? Do we have the same expenses? Are we paying more for
something than our peers?
 They may look at changes in asset balances or red flags that indicate problems with
bill collection or bad debt.
 They will analyze working capital to anticipate future cash flow problems.

Managerial finance is an interdisciplinary approach that borrows from both accounting

and corporate finance.

Sound financial management creates value and organizational agility through the
allocation of scarce resources amongst competing business opportunities. It is an aid to
the implementation and monitoring of business strategies and helps achieve business
objectives.

To interpret financial results in the manner described above, managers use financial

analysis techniques.

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Income and Expenses:
Income and Expenses of Navjivan Automobiles are as under:

Particular 2010-11 2011-12

Incomes 85,70,00,000 95,86,50,000

Expenses 84,51,75,000 93,77,58,150

Balance Sheet:

Particular 2010-11 2011-12

Sources of Funds    
Capital 36077000 36077000
Reserves and Surplus 1300000 1500000
Deposit 1000000 1000000
Profit 11825000 20891850
Loan Funds
Bank Loan 5000000 4600000
Current Liabilities
accounts payable 200000 210000
Bank overdraft 4500000 4100000
Total 59902000 68378850
 
Application of Funds
Fixed assets:
Machinery 2410000 2200000
Land 11500000 11900000
Furniture and fixtures 3200000 3600000
Other Fixed Assets 4715000 2641850
Current assets:
Cash 500000 560000
Accounts Receivable 1500000 1400000
Closing Stock 30000000 40000000
TOTAL 59902000 68378850

20
Ratios of 2 years:

Particulars 2010-11 2011-12

Gross-Profit Ratio 17.48% 19.19%

Net-Profit Ratio 1.43% 2.26%

Operating Profit Ratio 14.38% 16.08%

Operating Ratio 85.62% 83.92%

Current Ratio 6.28 : 1 9.73 : 1

Quick Ratio 10.35 : 1 9.37 : 1

Return on Assets 0.0143 0.022

Proprietary Ratio 0.021 0.022

Stock Turnover Ratio 26 days(approx) 24 days(approx)

Fixed Assets Turnover Ratio 29.64 34.96

Gross Profit Ratio:

Gross Profit Ratio

19.50%

19.00% 19.19%

18.50%

18.00%

17.50%
17.48%
17.00%

16.50% 2010-11 2011-12

1 2

21
Analysis: From the above diagram it is clear that the costs of sales have been increased
but the overall sales have increased too. That is why the gross profit has increased by
1.71% in year 2011-12.

Net Profit Ratio:

Net Profit Ratio

2.50%

2.26%
2.00%

1.50%
1.43%
1.00%

0.50%

0.00% 2010-11 2011-12

1 2

Analysis: From the above diagram it is clear that the total sales have been increased by
9,84,00,000 and similarly, the expenses has also been increased. That is why the net
profit has been increased by 0.83% in year 2011-12, it shows that the firm is able to sell
more number of units in coming years.

22
Operating Profit Ratio:

Operating Profit Ratio

16.50%

16.00% 16.08%
15.50%

15.00%

14.50%
14.38%
14.00%

13.50% 2010-11 2011-12

1 2

Analysis: To find out this ratio first of all we have to find operating expense it includes
stationary expenses, salary, incentives, etc. After that operating expenses are deducted
from gross profit which gives operating profit. In year 2011-12 operating profit ratio has
been increased in year 2011-12 by 1.7%.

Operating Ratio:

Operating Ratio
86.00%

85.50% 85.62%
85.00%

84.50%

84.00%
83.92%
83.50%

83.00% 2010-11 2011-12

1 2

23
Analysis: To find out operating ratio we have to deduct operating profit ratio from 100.
Lower operating ratio shows that the company is profitable. In year 2011-12 operating
ratio was 1.7% lesser than the previous year.

Current Ratio:

Current Ratio
12

10
9.73
8

6 6.28

0 2011-12
2010-11
1 2

Analysis: The current ratio should be 2:1 or more than that, it means the ratio of current
assets should be more than current liabilities two or more times. In year 2010-11 and
2011-12 it is 6.28:1 and 9.73:1 respectively, which means the liabilities are less in respect
of assets.

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Quick Ratio:

Quick Ratio
10.6
10.4
10.2 10.35
10
9.8
9.6
9.4
9.2 9.37
9
8.8 2010-11 2011-12
1 2

Analysis: The above diagram shows that the quick ratio has decreased in year 2011-12
which means in year 2011-12 the closing stock has increased and bank overdraft has been
decreased in year 2011-12 that is why the quick ratio has been decreased in year 2011-12.

Return on Assets:

Return on Assets
0.025

0.02 0.022

0.015
0.0143
0.01

0.005

0 2010-11 2011-12
1 2

Analysis: From the above diagram it is clear that the ratio has increased in year 2011-12.
It is just because the value of assets has increased.

25
Proprietary Ratio:

Proprietory Ratio
0.0222
0.022
0.022
0.0218
0.0216
0.0214
0.0212
0.021
0.021
0.0208
0.0206
0.0204 2010-11 2011-12
1 2

Analysis: From the above diagram it is clear that the capital and reserves has increased in
year 2011-12 by reserves and surplus by Rs. 200,000 and the total assets has also
increased so that the proprietary ratio has increased 0.001 in year 2011-12. This because
the proprietor’s fund and total assets both has increased similarly.

Stock Turnover Ratio:

Stock Turnover Ratio

26.5
26
26
25.5
25
24.5
24
24
23.5
23 2010-11 2011-12
1 2

26
Analysis: From the above diagram it is clear that the firm’s stock sell out in year 2011-12
2 days early than year 2010-11.

Fixed Assets Turnover Ratio:

Fixed Assets Turnover Ratio

36
35
34.96
34
33
32
31
30
29 29.64
28
27
26 2010-11 2011-12
1 2

Analysis: From the above diagram it is clear that the fixed assets and the total sales has
been increased that is why the Fixed Assets turnover ratio has also increased in year
2011-12 by 5.32.

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Comparative Balance Sheet:

Differenc Percentage increase

Particulars 2010-11 2011-12 e and decrease
Sources of Funds        
Capital 36077000 36077000 0 0
Reserves and Surplus 1300000 1500000 200000 15.38
Deposit 1000000 1000000 0 0
Profit 11825000 20891850 9066850 76.67
Loan Funds        
Bank Loan 5000000 4600000 -400000 (8.00)
Current Liabilities        
Accounts payable 200000 210000 10000 (5.00)
Bank overdraft 4500000 4100000 -400000 (8.88)
Total 59902000 68378850 8476850 14.15
         
Application of Funds        
Fixed assets:        
Machinery 2410000 2200000 -210000 (8.71)
Land 15507000 15900000 393000 2.53
Furniture and Fixture 4200000 3670000 -530000 (12.61)
Other Fixed Assets 5715000 4641850 -1073150 (18.77)
Current assets:        
Cash 500000 560000 60000 12.00
Accounts Receivable 1570000 1407000 -163000 (10.38)
Closing Stock 30000000 40000000 10000000 33.33
TOTAL 59902000 68378850 8476850 14.15

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Ratio Analysis:

A tool used by individuals to conduct a quantitative analysis of information in a

company's financial statements. Ratios are calculated from current year numbers and are
then compared to previous years, other companies, the industry, or even the economy to
judge the performance of the company. Ratio analysis is predominately used by
proponents of fundamental analysis.

There are many ratios that can be calculated from the financial statements pertaining to a
company's performance, activity, financing and liquidity. Some common ratios include
the price-earnings ratio, debt-equity ratio, earnings per share, asset turnover and working
capital.

A financial ratio (or accounting ratio) is a relative magnitude of two selected numerical
values taken from an enterprise's financial statements. Often used in accounting, there are
many standard ratios used to try to evaluate the overall financial condition of a
corporation or other organization. Financial ratios may be used by managers within a
firm, by current and potential shareholders (owners) of a firm, and by a firm's creditors.
Financial analysts use financial ratios to compare the strengths and weaknesses in various
companies. If shares in a company are traded in a financial market, the market price of
the shares is used in certain financial ratios.

Ratios can be expressed as a decimal value, such as 0.10, or given as an equivalent

percent value, such as 10%. Some ratios are usually quoted as percentages, especially
ratios that are usually or always less than 1, such as earnings yield, while others are
usually quoted as decimal numbers, especially ratios that are usually more than 1, such as
P/E ratio; these latter are also called multiples.

29
These comprise the firm's "accounting statements" or financial statements. The
statements' data is based on the accounting method and accounting standards used by the
organization.

Financial ratios quantify many aspects of a business and are an integral part of the
financial statement analysis. Financial ratios are categorized according to the financial
aspect of the business which the ratio measures. Liquidity ratios measure the availability
of cash to pay debt. Activity ratios measure how quickly a firm converts non-cash assets
to cash assets. Debt ratios measure the firm's ability to repay long-term debt. Profitability
ratios measure the firm's use of its assets and control of its expenses to generate an
acceptable rate of return. Market ratios measure investor response to owning a company's
stock and also the cost of issuing stock. These are concerned with the return on
investment for shareholders, and with the relationship between return and the value of an
investment in company’s shares.

Financial ratios allow for comparisons

 between companies
 between industries
 between different time periods for one company
 between a single company and its industry average

Ratios generally are not useful unless they are benchmarked against something else, like
past performance or another company.

In our report we have take 10 financial ratios to analyze Navjivan Automobile’s liquidity,
activity, solvency, profitability, etc.

30
Analysis of Financial Data: As above comparative Balance Sheet shows that, the capital
of the firm remains constant in both the years. Whereas, reserves and surplus, has been
increased 15%, which means the company is ready to sell more number of bikes and
scooters for that they have increased their reserves.

The profit gained in 2010-11 will help in decreasing the bank loan, which means the
company is able to make huge amount of sales without any debt. Cash on hand has been
increased, too.

Final Accounts:

Profit and Loss Account

Income 2010-11 2011-12
Sales 825000000 923400000
Other Income 2000000 3250000
Closing stock 30000000 32000000
TOTAL 857000000 958650000
 
Expenditure
Opening Stock 22500000 30000000
Purchase 680000000 739075000
Transport Expense - -
Incentives 825000 923400
Electricity 8250000 9234000
Stationery Expenses 8250000 9234000
Salary 16500000 18468000
Interest 24750000 32319000
Income Tax 2500000 2425000
Tax 81600000 96079750
Net Profit 11825000 20891850
TOTAL 857000000 958650000

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 Balance Sheet
Particular 2010-11 2011-12
Sources of Funds    
Capital 36077000 36077000
Reserves and Surplus 1300000 1500000
Deposit 1000000 1000000
Profit 11825000 20891850
Loan Funds
Bank Loan 5000000 4600000
Current Liabilities
accounts payable 200000 210000
Bank overdraft 4500000 4100000
Total 59902000 68378850
 
Application of Funds
Fixed assets:
Machinery 2410000 2200000
Land 11500000 11900000
Furniture and fixtures 3200000 3600000
Other Fixed Assets 4715000 2641850
Current assets:
Cash 500000 560000
Accounts Receivable 1500000 1400000
Closing Stock 30000000 40000000
TOTAL 59902000 68378850

Sources of Finance:

Sources of finance can be classified into two:

- Internal Sources
- External Sources

32
But, Navjivan automobiles prefer only internal sources of finance, which includes the
retained earnings, debt collection, owner’s capital, etc.

33
Production
Department

34
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Organization structure:

Below is the organizational structure of Navjivan automobiles.

Introduction

The very essence of any business is to cater needs of customer by providing services and
goods, and in process create value for customers and solve their problems. Production
and operations management talks about applying business organization and management
concepts in creation of goods and services.

Production

Production is a scientific process which involves transformation of raw material (input)

into desired product or service (output) by adding economic value. Production can

35
Production through separation: It involves desired output is achieved through
separation or extraction from raw materials. A classic example of separation or extraction
is Oil into various fuel products.

Production by modification or improvement: It involves change in chemical and

mechanical parameters of the raw material without altering physical attributes of the raw
material. Annealing process (heating at high temperatures and then cooling), is example
of production by modification or improvement.

Production by assembly: Car production and computer are example of production by

assembly.

Importance of Production Function and Production Management

Successful organizations have well defined and efficient line function and support
function. Production comes under the category of line function which directly affects
customer experience and there by future of organization itself.

Aim of production function is to add value to product or service which will create a
strong and long lasting customer relationship or association. And this can be achieved by
healthy and productive association between Marketing and Production people. Marketing
function people are frontline representative of the company and provide insights to real
product needs of customers.

36
An effective planning and control on production parameters to achieve or create value for
customers is called production management.

Operations Management

As to deliver value for customers in products and services, it is essential for the company
to do the following:

1. Identify the customer needs and convert that into a specific product or service
(numbers of products required for specific period of time)
2. Based on product requirement do back-ward working to identify raw material
requirements
3. Engage internal and external vendors to create supply chain for raw material and
finished goods between vendor → production facility → customers.

Operations management captures above identified 3 points.

Production Management v/s Operations Management

A high level comparison which distinct production and operations management can be
done on following characteristics:

 Output: Production management deals with manufacturing of products like

(computer, car, etc) while operations management cover both products and
services.

 Usage of Output: Products like computer/car are utilized over a period of time

whereas services need to be consumed immediately

 Classification of work: To produce products like computer/car more of capital

equipment and less labour are required while services require more labour and
lesser capital equipment.

37
  Customer Contact: There is no participation of customer during production
whereas for services a constant contact with customer is required.

Production management and operations management both are very essential in meeting
objective of an organization.

Plant Location:

Navjivan Automobiles is situated in Bhestan. It is one of the biggest industrial area and
Pandesara is just one street away from Bhestan which is also the biggest industrial area of
surat. The population of the area is also very large so Navjivan Automobiles target the
middle and lower class people.

38
Plant Layout:

39
Material handling:

Material handling is one of the important part or subject to be

concern for any service sector unit.

In Navjivan also more emphasis is given to material handling, so that customer get more
satisfy.

As there is no movement of raw material in Navjivan auto mobile they pay more
attention to the quality of finish product.

Warehousing:

A warehouse is a commercial building for storage of goods. They are

usually large plain building use to load and unload goods from trucks.

Navjivan has warehouse capacity of 1200-1300 no of bikes.

Purchase function:

As they deal with the finished product directly, they wouldn’t

purchase raw material.

They place order directly with the manufacturing unit using online software (S.S.G.C)
specially designed for Navjivan group.

Order should be place before a month age and it should be of minimum 70 lakh.

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Marketing
Department

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Definition of Marketing:
Introduction

Marketing is a social and management process by which individuals and group obtain
what they need through creating and exchanging products and value with other.

By PHILIP KOTLER

Definition of Marketing Management:

Marketing management means analyzing, planning, implementing and controlling the

marketing activities with the objectives of marring the desired exchange mutually
advantageous to the seller and the buyer. – By PHILIP KOTLER

1) Selling focuses on the need of the seller, marketing on the needs of the buyer.
2) Marketing with the ideas of stashing the needs of the customer by the means of the
product and the whole customer of the things associated with creating and finally
consuming it.
3) The marketing concept rests on four pillars, target marketing, marketing profitability.
4) The marketing concept takes an outside in perspective.

Organization structure of marketing department:

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Marketing mix

The marketing mix is a business tool used in marketing and by marketing professionals.
The marketing mix is often crucial when determining a product or brand's offering, and is
often synonymous with the four Ps: Price, Product, Promotion, And Place; in service
marketing, however, the four Ps have been expanded to the Seven Ps to address the
different nature of services.

Product

A product is seen as an item that satisfies what a consumer needs or wants. It is a tangible
good or an intangible service. Intangible products are service based like the tourism
industry, the hotel industry and the financial industry. Tangible products are those that
have an independent physical existence.

The marketer must also consider the product mix. Marketers can expand the current
product mix by increasing a certain product line's depth or by increasing the number of
product lines.

Product mix:

According to Philip Kotler “Product mix (also called as product assortment) is the set of
all products and items a particular seller offers for sale”. Product mix pertains to the
variety of products a company sells. There are four dimensions to product mix, namely,
width, length, depth and consistency.

Width: The width of the product mix consists of all the product lines that the company
has to offer to its customers. If we take P&G for example, the width of the product line
would consist of Hair Products, Oral care, Soaps and Detergents, Baby Care, Personal
Care and Home care.

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Length: Length of the product mix includes the total number of products offered to the
customers. The number of products provided by P&G is 16 which is the total length of its
product mix.

Depth: Depth of a product mix pertains to the number of variants that are offered in each
product in the line. If we take the example of Ariel we can see that it is available in a lot
of sizes (100 GM, 250 GM, 1kg, etc.) and different types like- Front O Matic and
Fragrances etc.

Consistency: Consistency of a product mix refers to the relationship of the various

product lines in terms of end use, product requirements, distribution channels, or some
other way. P&G’s product lines are all consistent because they only concentrate on
selling FMCG products.

Product line: (length and width):

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Product depth:

Where,

No of items (length):19

No of lines (width):01

No of items (depth): 09

Pricing

Introduction

Pricing is a very crucial matter for the marketing manager because it affects the
demand, sales promotion, competitive strength of the business unit, ego satisfaction of
the customers and ultimately the profit. Sometime, it happens that efficiency of other
functional areas is attached by the faulty price decisions. Therefore, extra ordinary care
should be taken at the time of marketing pricing decisions.

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Definition of pricing:

“Pricing is the element in the marketing mix that creates sales revenue, the other
elements are costs”.

Economist defines prices as the exchange value of a product or service always expressed
in money.

Money (price) = Balance of expectations or satisfactions.

Include in the bundle of expectations may be physical product plus other

attributes such as delivery, installation, credit, return privileges, after sales servicing and
so on.

Methods of Pricing:

Navjivan Hero is follows Cost oriented method or cost based methods of pricing:

Navjivan are following these factors:

Ex. Showroom prices

+
RTO charges
+
Insurance charges
+
Road Tex
=
On Road Price
+
Optional cost (GL+ACC)
=
Total price

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Different price of the product:

NO. MODELS OF BIKE PRICE IN RS. (on road)

1 HF Dawn std 43630
2 HF Deluxe spoke 46320
3 HF Deluxe cast 48290
4 HF Deluxe spoke ss 48960
5 HF Deluxe cast ss 49970
6 Pleasure-new 50080
7 Maestro 56230
8 Splendor plus spoke 50810
9 Splendor plus cast 51930
10 Splendor pro spoke 51820
11 Splendor pro cast 52940
12 Splendor pro spoke (ss) 54060
13 Splendor pro cast (ss) 55180
14 Splendor pro ltd edition 56310
15 Splendor NXG cast 51370
16 Splendor NXG spoke ss 52720
17 Splendor NXG cast ss 53840
18 Passion pro spoke 53170
19 Passion pro cast 54290
20 Passion pro spoke ss 55410
21 Passion pro cast ss 56530
22 Passion pro disc ss 58770
23 Passion x-pro spoke 54230
24 Passion x-pro cast 55910
25 Passion x-pro spoke ss 57030
26 Passion x-pro cast ss 58150
27 Passion x-pro disc ss 60400
28 Super splendor cast ss 59110
29 Glamour drum ss new 61770
30 Glamour cast dics ss 64020
31 Glamour fi dics ss(new) 72010
32 Ignitor drum self 65890
33 Ignitor disc self 68140
34 Achiever disc self 68140
35 Hunk cast fr disc ss 76770
36 Hunk cast fr & rr disc ss 80140
37 Xtreme fr disc ss 78070
38 Xtreme fr & rr disc ss 81430
39 Impulse disc self spoke 80810
40 Karizma- new 91640
41 Karizma- ZMR(KAZ) 114310
Level:

Warehouse:

Consumer promotion tools:

1. Coupons
2. Premiums (gifts)
3. Free trails
4. Product warranties
5. Cash refund offers
6. Exchange fair
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Place

Navjivan Automobile has very large warehouse which can store 1200-1500 bikes or
scooters.

Promotion
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Physical Evidence

Physical evidence is the material part of the service. There is much physical
evidence, which is as follows:

1. Front Part of Showroom

2. Banners
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3. Uniforms:

For Males

Sales T-shirt & Technician T- Front line Works manager

Jeans shirt & Trousers supervisor jacket
For Females: Shirt &
Trousers

Sales salwar suit

Sales saree

4. 50Sign boards
5. Logo
6. Brochures
7. Building
8. Company’s websites

Peoples

Peoples deliver service in all sorts of settings. It’s an important element of the
service marketing mix. If you go to an organized event such as the Olympic then
everything about the experience is undertaking by peoples. Behind the scene there are
project manager, staffs and accountant. The people deliver the service and this is the
same for the any other organized organization.

Process

Here process is more about the customer interference; it’s about how the staff or
management handles with their clients or customers.

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Findings

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 The study finds that majority of customer were highly influenced by the comfort of the
bike. It is important to note that experienced customers are one of the important
influencing factors behinds a number of purchases.

Following are the other important findings of the study,

 Age:
Majority of the customers falling under the age group of 20-30
 Buying preference:
Majority of the customer prefer comfort as an important factor while making the
purchase decision of a bike.
 Style:
Most of the customers (64%) were influenced by the style of the bike.
 Comfort:
Most of the customers were influenced by the comfort of the bike.
 Mileage:
Majority of the customer prefer mileage as an important influencing factor.
 Price:
Most of the customers were influenced by the price of the bike.
 Product features:
Most of the customers were influenced by the product features of Hero’s bike.
 Technology:
66% customers were influenced by the technology of the Hero’s bike.
 Parts and service availability:
Most of the customers (58%) were influenced by the parts and service availability of the
Hero’s bike.
 Brand perception of customer:
Most of the customers (62%) were influenced by the brand image of Hero.
 Purchase of buying:
Majority of the customers (98%) were purchased their bike for personal purposes.
 Advertisement:
Majority of the customer were influenced by the advertisement.

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 Experienced users:
It is important note that experienced customer become an important influencing factor
behind a number of purchases.
 Customer satisfaction:
Majority of the customer (92%) were highly satisfied about the performance of the bike.

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Conclusion

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After studying the whole organizational processes and procedures we have rated the firm
6.5/10.

The below suggestions (Page no. 57) will improve the organization’s development.

We have learned from this training that how to influence the customers, various marketing
techniques, etc.

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Suggestions

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Suggestions which would be beneficial for the organization;

 Selection Procedure:
The firm has to plan an effective selection procedure, so that the firm gets the
appropriate employee.

 Temporary Employees:
The firm has to decrease the number of temporary employees because every time
firm has to recruit a new employee, when any employee left the job.

For this the firm has to increase the job satisfaction of the employees.

 Means of advertisement:
The firm has to increase the means of advertisements i.e. through radio channels,
local TV channels and local newspapers.

This will increase the sales of the firm.

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Bibliography

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 Books
Financial Management –by I M Pandey
Marketing Management –by Philip Kotler
Human Resource Management –by P. Subba Rao
Production Management –by K. Ashwathappa

 Internet:
www.wikipedia.com
www.businessdictionary.com
www.navjivanmotors.com
www.heromotocorp.com

 Financial management by:

Mr. Amar Singh
(Account manager)

 Marketing management by:

Mr. Chintan Kapadia
(Assistant Sales manager)

 Human resources management by:

Mr. Rohit Sharma
(General manger)

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Annexure

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 Profit and Loss Account
Income 2010-11 2011-12
Sales 825000000 923400000
Other Income 2000000 3250000
Closing stock 30000000 32000000
TOTAL 857000000 958650000
 
Expenditure
Opening Stock 22500000 30000000
Purchase 680000000 739075000
Transport Expense - -
Incentives 825000 923400
Electricity 8250000 9234000
Stationery Expenses 8250000 9234000
Salary 16500000 18468000
Interest 24750000 32319000
Income Tax 2500000 2425000
Tax 81600000 96079750
Net Profit 11825000 20891850
TOTAL 857000000 958650000

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 Balance Sheet
Particular 2010-11 2011-12
Sources of Funds    
Capital 36077000 36077000
Reserves and Surplus 1300000 1500000
Deposit 1000000 1000000
Profit 11825000 20891850
Loan Funds
Bank Loan 5000000 4600000
Current Liabilities
accounts payable 200000 210000
Bank overdraft 4500000 4100000
Total 59902000 68378850
 
Application of Funds
Fixed assets:
Machinery 2410000 2200000
Land 11500000 11900000
Furniture and fixtures 3200000 3600000
Other Fixed Assets 4715000 2641850
Current assets:
Cash 500000 560000
Accounts Receivable 1500000 1400000
Closing Stock 30000000 40000000
TOTAL 59902000 68378850

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