INTRODUCTION
An organisational study is the systematic study about how people as individuals and as groups - act within organizations. It involves the study of the structure and functioning of its departments. Organizing is one of the import important ant funct function ionss of Manage Managemen ment. t. Almost Almost all the organ organiza izatio tions ns are differ different ent but they they have have certai certain n common common featur features. es. All are collec collectio tion n of people, linked together by formal and informal relationships. They have hierarchical orders that are engaged in co-operative activities and they all have have iden identi tica call bo boun unda dari ries es.. So the the stud study y of peop people le in orga organi niza zati tion on is important for future managers. Structure of an organisation is very important for its functioning and growth. It provides the basic frame work for its progress and expansion. For future mana manage gers rs,, it is impe impera rati tive ve to stud study y the the orga organi nisa sati tion onal al stru struct ctur uree and and functioning of successful organisations so that they as future managers may guide organisations towards success and profitable functioning.
OBJECTIVES
•
TO KNOW ABOUT THE FUNCTIONS THAT CARRIED OUT IN DIFFERENT DEPARTMENTS
•
TO ACQUIR ACQUIRE E THE KNOWLE KNOWLEDGE DGE OF PRACTIC PRACTICAL AL APPLIC APPLICATI ATIONS ONS IN THE POINT OF VIEW OF MANAGERIAL ASPECTS
•
TO LEAR LEARN N THE THE WAY WAY HOW HOW THE THE MANA MANAGE GEME MENT NT TRIES TRIES TO CO ORDI ORDINA NATE TE ACTI ACTIVI VITI TIES ES OF DIFF DIFFER EREN ENT T DEPA DEPART RTME MENT NTS S IN THE THE ORGANISATION
•
TO ANAL NALYSE YSE STRE STRENG NGTH TH THREATS OF THE COMPANY
,WEA ,WEAK KNESS NESS,,
OPPOR PPORTU TUNI NITI TIE ES
AND AND
1
LIMITATIONS OF THE STUDY . •
It was very difficult to collect detailed data on each department within the limited time allowed.
SOURCES OF DATA COLLECTION Primary Source Primary data are collected through discussions and interviews with officials, employees of the company and also includes direct observation.
Secondary Source Secondary data are collected from: •
Annual reports
•
Company documents &
•
Company websites.
2
INDUSTRY PROFILE
HISTORY OF THE INDUSTRY By 3000 B.C, turmeric, cardamom, pepper and mustard were cultiv cultivate ated d in Harapp Harappaa and Moh Mohenj enjo-D o-Daro aro,, in the Indus Indus valley valley,, were were of occupied mixed stock somewhat larger in structure than either the Sumerians of those communities. The bad club wheat barely sheep and goats from the Iranian plateau and cotton from Southern Arabia or North East Africa but were held back by their reliance on food water due to lack of knowledge of irrigation.
Summer Summer bad trade trade links with the Indus valley via Hindu Hindu Kush by 3000 BC and by sea from 2500 BC thus thinking the Harappa’s with both Sumerians and Egyptian, where cumin, anise and cinnamon were used for embalming by 2500 BC.
By 1750 BC Harappa civilization had disappeared probably due to flood and tectonic shift were replaced by the Aryans who invaded via Hindu Kush by 1500 BC. The Aryans had considerable contact with Babylon from whence the original flood legend arose o be adopted by both the Aryans and the Hebrews and several other civilization.
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In Britain the term “curry” has come to mean almost any Indian dish whilst most from the sub-continent would say it is not a world they use but if they did it would mean a meat, vegetable or fish dish with spicy sauce and rise or bread. The earliest known recipe for meat in spicy sauce with bread appeared on tablets found near Babylon. In Mesopotamia written in uniform text discovered by the Sumerians and dated around 1700 BC probably as an offering to the good Marduk
INDUSTRY PROFILE
.
Spices and aromatic vegetables products were used as a flavouring
or condiment normally refer to the derivatives from certain herbs like seed, Leaves, Bark, root etc. They were used mainly for enhancing taste of the food. The word spice is derived from the word spices which was applied to groups of exotic foodstuffs in the middle ages. Spice term was formerly applied also to pungent or aromatic food, as ingredient of incense or perfume and to embalming agent. Modern trend to limit the term to flavouring used in food or drink. Although many spices
have have additi additiona onall commer commercia ciall uses uses eg:
as ingredi ingredient entss of medici medicine, ne,
perfumes, incense and soaps. The earliest literary record in India on spice is the Rig Veda. (BC1500). The story Indian spices dates back to BC 7000 years into the past during the period of gulf of Campattu, which is discovered into the sea shore of Gujarat. In the modern world major thrust traditionally a country of
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agriculture India leads the trade spices can improve the palatability and the appeal of dull diets or spoiled food piquant flavours stimulate salivation and promote digestion in tropical climate. On the other hand they can add sense of inner warmth when present in cooked foods used in cold climate in India, traditionally, spice, formed a part of common man’s daily food.
INDIA AND SPICES
India produces 2.5 million tones to 3 million tones of spices annually. India produces spices of different categories worth around US$ 3 billion. In terms of volume and value, India accounted for 46 percent and 23 percent in value of global spice trade. (Source: Spices Board India) India accounts for 25-30 per cent of world’s pepper production, 35 per cent of ginger and about 90 per cent of turmeric production.
Among the Indian Federal states, Kerala tops in pepper (96 percent), Cardamom (53 percent), Ginger (25 per cent) production in the country. Andhra Pradesh leads in Chilly and Turmeric production in the country with 49 per cent and 57 per cent. In coriander, cumin and fenugreek production in the country, Rajasthan emerges as the largest producer with 63 per cent, 56 per cent cent and 87 per cent. cent. The world spice trade trade is estimated at US$ 1.5-2 billion in terms of value and 500,000tonnes in terms of quantity.
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CURRENT SCENARIO
Within the past one decade, the international trade in spices has grown by leaps and bounds. As estimated 500.000 tone of spice and herbs values 1500 million US dollars are now imported globally every year. An impressive 46% of this supply comes from India. India’s exports and spice extracts have made spectacular growth attaining over 50% of the global market within a short span. This remarkable remarkable achievemen achievementt is boon of a sea change in the industry scenario.
The Indian share At present India produce around 2.5 million tones of different spice valued at approximately 3 million US dollar, and hold the premier position in the world. Because of the varying climate suitable for the spice cultivation almost all spices are grown in this country. In almost all spices are grown in this country. In almost all the 28 states and six union territories of India, at least one spice is grown in abundance. No country country in the world produces produces as much variety of spices as India. EXPORTS OF SPICES FROM INDIA India can now boast as the monopoly supplier of spice oils and oleoresins the world over. In the case of curry powders, spice powders, spice mixtures and spices in consumer packs, India is in a formidable position. The consistent effort of the Board during the last one decade has improved the share of the value added products in the export basket to 60%
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COMPANY PROFILE
ABOUT THE COMPANY
The Eastern Group Group was founded by Mr. M. E. Meeran, chai chairm rman an of the the grou group. p. He star starte ted d his his acti activi viti ties es as a bu busi sine ness ss with with a wholesale provision goods shop at Adimali in 1969 named “Eastern trading company” and it was being called as “E.T.C”. Eastern Coffee and Curry Powder established in 1983 as a pioneer in the state to produce packed curry pow powde ders rs,, coff coffee ee po powd wder er and and food food prod produc ucts ts.. East Easter ern n Cond Condim imen ents ts was was established in 1991, as expanded form of astern Coffee and Curry Powder, and employing 150 employees where as Eastern Coffee and Curry Powder were employing 20 workers. Toda To day y the the comp compan any y has has grow grown n in to the the favo favour urit itee in Indi India. a. East Easter ern n Cond Condim imen ents ts Pvt. Pvt. LTD. LTD. is a well well esta establ blis ishe hed d name name as Kera Kerala la’s ’s larg larges estt manufacturer of condiments and one of the leading brands among the South India. The company exports its products to Saudi Arabia and the United Arab Emirates for the past few years and now the company exports its
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products to various parts of the world like Middle East, the U.K, the U.S.A, Australia, Germany etc. The production at the initial period was only 100kg per day. In thos thosee days days,, the the proc proces esss of prod produc ucti tion on was was enha enhanc nced ed from from grin grindi ding ng to pulverizing and so the production could also help to preserve the natural taste of the powder. As Eastern curry powder unit could not meet the increased demand, establishment of Eastern Condiments with a production capacity of 20 tones a day was a absolutely necessary. From the initial production capacity of 100kg per day, now it can produce around 78 tones per day. The purity and freshness of Eastern Curry Powders made “Eastern” a house hold name in India and abroad. Bringing high quality products every day at affordable prices to the common man for his daily use is the ultimate goal of Eastern group of companies. Treating the customers with commitment for quality at the right price in all products is their formula for success. Eastern Condiments was established in 1991 .100000 Kg of sales was registered in 1991. The company is the leading brands in India and second most popularized brad in Kerala .The company hold 75% market share and it follow cash and carry method. The company follows direct distribution and it had 86 routes. Now the company had 1500 employees and the last year turnover was Rs. 450 Cr. The company plan to attain the target of Rs.1000 Cr by 2012
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Awards Won The eastern group has won many prestigious awards for its outstanding performance by Spices Board India for 8 consecutive years from 1998 19 98 to 20 2004 04-’ -’05 05.. Mr.M Mr.M.E. .E.Me Meer eran an,, Chai Chairm rman an of East Easter ern n Grou Group p was was awarded as the “Best Business Man Of The Year” by Business Deepika (leading business journal in Kerala) in 2007-2008. He is also the award winner of “Best Entrepreneur Entrepreneur Of The Year” Year” by Mangalam Publications. Publications. The company
has
also
won
the
FACT
MKK
NAIR
MEMORIAL
PRODUCTIVITY award for the year 1995-’96. The company has got ISO 22000 and the HACCP certification. Eastern was the first company in India to get ISO 22000 certificate. Every award has been a stepping stone for achieving greater heights and look forward for higher goals. The foresight of the chairman is the guiding light for the blazing track of the group.
The Management of the Company The Eastern group is managed by termed professionals and family members. From the very beginning, Mr.M.E.Meeran has been the chairman and the Manager of the Company. In additi addition, on, Mr.Nav Mr.Navas as Meeran Meeran,, Mr Firoz Firoz Meeran Meeran,, Mr.S.M.Mohammed and Mrs. Nabeesa Meeran hold the Board of Directors. Beside Besides, s, there there is an admini administr strati ation on offic officee worki working ng at Ernaku Ernakulam lam for its accurate administration. As head of administration, there is a Chairman and below a Vice chairman
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PRODUCT PROFILE Eastern processes and manufacture Spices and blended spice powders. Spices are procured from the finest plantations in Kerala, India.
DIRECT POWDERS ♦ ♦ ♦ ♦
TURMERIC POWDER CHILLI POWDER CORIANDER POWDER BLACK PEPPER POWDER
DIRECT SEEDS ♦ ♦ ♦ ♦
MUSTARD CUMIN BIG JEERA MEETHI
BLENDED CURRY POWDER ♦ ♦ ♦ ♦ ♦
RASAM POWDER SAMBAR POWDER PICKLE POWDER FISH MASALA CHICKEN MASALA
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♦ ♦ ♦ ♦
MEAT MASALA BIRIYANI MASALA GHARAM MASALA KABAB MASALA
PICKLE ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦
MANGO TENDER MANGO PICKLE GINGER GARLIC LEMON DATES PRAWN MIXED VEGETABLE
Outsourced product
Compan Company y outsou outsource rce the manufa manufactu cturin ring\p g\proc rocure uremen mentt of the follo followin wing g product. ♦ ♦ ♦ ♦
TAMARIND RICE PALADA COCONUT GINGELLY OIL
The product is tested in the laboratory prior to acceptance. The outsou outsource rced d units units are inspec inspected ted based based on establ establish ished ed parame parameter terss annually.
Company vision
To be the preferred supplier catering to the basic needs of the mass market market by provid providing ing produc products ts and servic services es of outsta outstandi nding ng value value through the adoption of global standards and innovative practices.
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To be the preferred employees in the group they are in by providing a chal challe leng ngin ing g work work envi enviro ronm nmen entt and and addi adding ng valu valuee to ou ourr peop people le through varied exposure and continuous education or shared learning.
To be pref prefer erre red d bu busi sine ness ss part partne nerr to the the enti entire re stak stakeh ehol olde ders rs by providing them exemplary benefits and shared growth .
Company mission
To prov provid idee go good od qu qual alit ity y go good odss to the the pres presen entt and and pros prospe pect ctiv ivee customer so that company can prosper more.
To have continuous availability of product of Eastern so that there shall not be any shortage of goods in the market.
To give give the the cust custom omer erss deli deligh ghtt that that is givi giving ng more more than than what what is expected by the customer.
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CHAIRMAN VIC
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EASTERN GROUP OF COMPANIES
Eastern Group of Companies is a group of companies with diverse interests and a world leader in Indian spices. Eastern has ventured into variou variouss areas areas like like tyre tyre retrea retreads, ds, mattr mattress esses, es, garmen garments, ts, packag packaged ed foods, foods, mineral water and public school and has many more projects in its dream. The detailed description of each company is given below; 1.
Eastern Curry powders
The company has provided their consumers with consistently high quality pow powde ders rs and and blen blends ds.. East Easter ern n Cond Condim imen ents ts op oper erat ates es from from two two mode modern rn factories situated in the Western Ghats of South India •
Natural Spice Powders
•
Eastern turmeric Powders
•
Eastern Chilly Powder
•
Eastern Coriander powder
•
Eastern Black Pepper Powder
•
Eastern Curry Powder
2.
Sunidra Mattresses
Sunidra mattresses Pvt.Ltd. was set up in 1999 to manufacture rubberized coir mattresses with a state of the art factory in Thodupuzha. The pop popul ular ar bran brand d of rubb rubber eriz ized ed coir coir matt mattre ress ss manu manufa fact ctur ured ed by Suni Sunidr draa
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Mattresses Pvt.Ltd.is slowly growing to be a market leader in the country. Sunidra has own the ISO 9001-2000 certificate. Sunidra is made of rubberized coir sheets that are produced from 100% natural latex without any added waste. These rubberized coir sheets are air permeable and have natural breathing qualities, it doesn’t cause any allergies and also recyclable.
3.
Eastern Aqua minerals
Eastern Aqua Mineral, a recently launched company was set up in the year 2002.Eastern Aqua Mineral entered the area of packaged drinking water with the state of srt plant located at Eranakulam district. Eastern packaged drinking water of highest purity standard, high quality with control, 1286 testin testing g facili facilitie tiess and qualit quality y produc productt with with intern internati ationa onall standa standards rds.. It is available in convenient sizes. Eastern packed drinking water is also priced attractively in keeping with Eastern’s view of bringing high quality products to the common man at the right price. 4.
Eastern Public School
The Eastern group entered the area of education with the getting up of the Eastern Public School. School. Mrs. Nabeeza Meeran has has been the Principal Principal of Eastern Eastern Public School. School. This school school ensures a high quality education education from from kindergar kindergarten ten to to
primary primary level levelss with with C.B.S.E C.B.S.E syllab syllabus us providi providing ng all all the
residential facility residing at the heart of Idukki District 5.
Eastern Treads Ltd.
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Eastern Treads Ltd. Is a public company engaged in the manufacturing of quality procured tread, cushion, bonding gum and black vulcanizing cement. Its branches all over India have been showing consistent high performance and growth. The factory has annual turnover of 12 crore and and it is loca locate ted d at Oonnuk Oonnukal al,, Koth Kotham aman anga gala lam. m.
Thee comp Th compan any y has has a
processing capacity of 12 tonnes of cold rubber per day with nation wide market network. This company is in the service industry for rethreading tyres and the service plant is located at Vazhakulam. The company services by rethreading of used tyres on an average basis of 1500 tyres per month.
6.
King Richard Shirts King Richard, a brand of men's wear from Eastern Clothing
Company was set up in 1999. This brand was targeted at middle class. King Richar Richard d Includ Includes es all the trends trends of colou colourr combin combinati ations ons and design designss of fashion shirts and trousers with a view to meet the aspiration of working class with a quality ready wear at responsible price in the international styles. This factory has the production capacity of 15,000 shirts per month. Top quality fabrics are used in the manufacture of King Richard brand shirts (utilizing 100% of cotton from India and European brands like Bergamo, Brembana, Italian fabric etc.). This brand usually comes out mostly formal and casual styles; but also makes small numbers of semi-casual styles.
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COMPATITORS INFORMATION
The company has many competitors in the market because the condiments industry it also small scale industry. So the the compa ompany ny face faces s comp compet etit ito ors mainl ainly y from from thre three e different states like Kerala - Melam, Melam, Priyam, Priyam, Saras, Bramins, Bramins, Ruchi, Double Horse Karnataka -M T R Tamilnadu – Shakthi Food safety management system
Eastern company has established documented , implimented and maintained an effective food safety management system and update it when necessary in accordance with the requirements of this international standard ISO 22000:2005 and HACCP The company has ♦
Ensured that the food safety hazards that may be reasonable expected to occur in relation to products within the scope of the system are identified evaluated and control in such manner that the product of the organization donot directly or indirectly, harm the consumer,
♦
Communicated appropriate information through out the foood chain regarding safety issues related to its products, 17
♦
Communicated information concerning development implementation and updating of the food safety management system throughout the organization to the extent necessary to ensure the food safety required by this international standard, and
♦
Evaluated periodically and update when necessary the food safety manag anageement ment syst system em to ensu ensure re that hat the syst system em reflec flects ts the the organizations activities and incorporates the most recent information on the food safety hazards subject to control.
FOOD SAFETY POLICY
Eastern Condiment p ltd is committed to supply safe and hygienic spice powder, masala powders, pickles rice and coffee powder to our customers through control of food safety hazards in the raw materials using greatest greatest process process technology technology maintaining maintaining hygiene hygiene and sanitation sanitation conditions, practicing personal hygiene system to the expectations of our customers by complying with statutory and regulatory requirements.
LEGAL FRAMEWORK OF THE ORGANISATION
Easter Eastern n Condim Condiment entss Pvt Ltd is incor incorpor porate ated d und under er THE COMPANIES ACT 1956 on 26 th Feb 1991 having its registered office at P. B no no:1 :15 5 East Easter ern n Vall Valley ey Adim Adimal ali. i. Th Thee Auth Author oriz ized ed shar sharee capi capita tall of the the company is Rs 35, 00,000/- divided into 3500 shares of Rs 1000 each. ROLE OF ISO 22000 IN EASTERN CONDIMENTS CONDIMENTS PVT LTD
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Eastern is the first company in India and second in Asia to get the ISO 22000 certification issued by Food Cert BV Netherlands and accredited by RvA, the first body in the world for food safety accreditation. Eastern got ISO 22000 for food safety in September 2005. The organization shall ensure the following basic requirements for the implementation of ISO 22000.
The food safety hazards that may be reasonable expected to
occur in relation to product within the scope of the system are iden identi tifi fied ed eval evalua uate ted d and and cont contro roll lled ed in such such a mann manner er that that the the product of the organization do not directly or indirectly harm the consumers
Commu Communic nicate ate approp appropria riate te infor informat mation ion throug through h the food food
chain regarding the safety issues related to its products
Comm Commun unic icat atee
info inform rmat atio ion n
conc concer erni ning ng
deve develo lopm pmen ent, t,
implementation and updating of food safety
Evaluate periodically and update The ISO gave only the basic documents of the pre – requisite
prog progra rams ms and and the the comp compan any y has has to work work out out in its its own own way way for for implementing implementing ISO.
DEPATMENT IN EASTERN
Human resource Development
Finance and Accounting
Production
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♦
Maintenance
♦
Quality control
♦
Production Planning and control
Marketing ♦
Export
IT Department
HUMAN RESOURCE DEVELOPMENT DEPARTMENT
DEPARTMENT CHART
Vice President Operations
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Senior manager H R
Senior officer H R & Administration
H R Officers
RECRUITMENT
Recruitment is the process of filling the vacancies in an organization. It is the first steps in selection process. In Eastern, direct recruitment method is used frequently for recruitment .The firm places job advertisement in Malayalam and English newspapers. And in TV, media and tries to attract as much as calibre people from the outside. The company also have internal recruitment for filling the post by efficient and skilled workers from the rank , promotion and panchayat have preferred local candidates who belongs to surroundings.
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SELECTION
In Eastern, the selection process is only through direct interviews. Employees are transferred to the different departments on the basis of their skills. TRAINING AND DEVELOPMENT FOR EMPLOYEES
Senior manager HR and Administration shall be assigned to facilitate or coordinate training facilities to enter organization as per the requirement of each requirement. All personal shall be aware of their role and and
resp respon onsi sibi bili liti ties es
in
prot protec ecti ting ng
prod produc uctt
from from
cont contam amin inat atio ion n
or
deterioration.
TRAINING NEED ANALYSIS
Training can be evaluated at any of three stages; Input, Throughput, Output. The following training need has been identified based on the competency requirements for ensuring the food safety conditions of the jobs assigned to the staffs for the year 2009-2010. Training required to:
Fire and safety 22
Legal update
Communication skill
ISO documentation
Leadership development
Pollution control
HR concept & welfare
DESIGNING TRAINING PROGRAMME
Training summary
Training feedback
Identification of training need
Training effectiveness analysis report
Training calendar
ASSESSMENT OF TRAINING EFFECTIVENESS
Periodic assessment of the training programme shall be carried out as well as the routine supervision and checks to ensure that the procedures of food safety are being practiced. The concerned HOD’s or in the case of worker workers; s; immedi immediate ate superv superviso isors rs will will be respon responsib sible le for measur measuring ing the effectiveness of training according to the form by any of the methods:
Personal/group interview
Questionnaire method
Feedback form in events or practices
Submission of report
INDUCTION AND ORIENTATION
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Planned introduction of employees to their jobs, co-workers, and the organization. Orientation also called introduction is designed to provide a new employee with the information he/she needs to function comfortably and effectively in the organization. TYPES OF ORIENTATION
Formal
Informal
Individual
Collective
PERFORMANCE APPRAISAL SYSTEM
Eastern is following a special type of system for appraising the workers that is the Key Result Area. Here the performance of individual employees is evaluated by his immediate superior officers. The officers will evaluate the employee’s performance on the basis of result produced by them and give a report to the board for a particular period of time. If the board is satisfied he\she will forward it to the top level management by recommending on incentive\ promotion. WAGES AND SALARY
The wage payments are made into two systems:
PIECE RATE SYSTEM Under piece rate system of payment, wages are paid on
time time prod produc ucti tion on go goes es up when when wage wagess are are paid paid acco accord rdin ing g to piec piecee rate rate system. This mode of payment prevails on the packing section.
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SALARY SYSTEM This mode of payment is applicable for the rest of the
workers which also includes the loading and unloading workers. LABOUR WELFARE FACILITIES FACILITIES
The company provides a lot of non-monitory benefits to their employees. Some of them are as follows: 1. Tran Transp spor orta tati tion on Transportation is provided to the employees to different destination points @ a subsidized rate. 2. Cant Cantee een n faci facili liti ties es All the employees are given free food at Eastern 3. Person Personal al Protect Protective ive Equipm Equipment ents. s. Personal protective equipments like head wears; aprons and uniforms are provided to the worker. 4. Medi Medica call Insu Insura ranc nce. e. The employees are provided with medi-claim policy, which gives free medical insurance to the employee and his/her family. 5. Pens Pensio ion n Sche Scheme me.. The scheme has been formulated for those employees who have retired from their job. 6. Annual Annual Medica Medicall Check Check-- up. up. The employees are provided with free annual medical check-up
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7. To Tour urss and and Pic Picni nics cs.. Tours and Picnics are conducting once in a year which increases the motivation and initiatives of the employees. PAYROLL PROCESSING
In eastern, payroll processing is done by the process of book Recording GRIEVANCES REDRESSAL
Generally, grievances mean any factors involving wages, hours of work or condition of work environment. In Eastern, all work as a family and all workers are free to make know his superior, if he has any grievances. The company has kept some persons in the company itself where the employees can directly com and tell his problems in any case and it will slowly reach the management. For this, the company also conducts some training programmes and meetings where the employees can speak about any problem he has in the company.
FOOD SAFETY OBJECTIVES OF HR DEPARTMENT
To provide at least 12 hrs training to every employee yearly about food safety..
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To ensure provide induction training new employees within two weeks from date of joining
WOMEN EMPOWERMENT:
Eastern Condiments gives preference for women as their workers. Around 80% of workers are women .
FINANCE DEPARTMENT
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DEPARTMENT CHART
BOARD OF DIRECTORS
COMPANY SECRETARY
FINANCIAL CONTROLLER ASST.GENERAL MANAGER
ASSI ASSIST STAN ANT T TAXATION
OFFICER
MANA MANAGR GR DEPUTY MANAGER
ASSISTANT MANAGER
OFFICERS
The total number of workers working under finance department is 22. The software used in accounting system is Orion system developed by ICICI INFOTECH. The company planning to implify INITIAL PUBLIC
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OFFERINGS (IPO). The prominent bank of the company is Federal bank, Adimali. The department makes monthly ledgers checking for expenses control. A/C RECEIVABLE & PAYABLE
The company also have credit sales and purchase. They gives bills to their debtors and receive bills from creditors for credit dealings. The bills are transferred to cash within short period. INVESTMENTS
The company invest in FDI last year on the basis of IRR. SOURCES OF FUND
The main sources of fund from sales, and overdraft from bank
TAX PAYMENT
A separate department working under finance department called Tax Department. Tax payment through e-filling in 15 th day of every month. There are 50-60 crores will pay for sales tax by the company. FRINGE BENEFITS GIVEN TO EMPLOYEES
GRATUITY
BONUS (11%)
PROVIDENT FUND (12%)
NET PROFIT & GROSS PROFIT
The profit for the year ended 31st march 2009 is
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48 crore turnover in last year 20,028.25 Lakhs- Gross profit Profit After Tax is 591.79 Lakhs
WORKING CAPITAL MANAGEMENT
Working capital managed by the company by using overdraft from bank. The company is dealing with the federal bank.
PRODUCTION DEPARTMENT 30
DEPARTMENT CHART
Head production
Production manager
Assistant manager MPD
Senior supervisor
Supervisor
Worker
PRODUCTION PROCESS
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RAW MATERIALS
DESTONING
CLEANING
POWDERI NG
ROASTING
BLENDING
PACKING
LOADING AND UNLOADING
Loading and unloading of raw materials are done by workers in Eastern itself.
SCHEDULING
32
By analyzing the demand based on the sales for past three months, they will schedule the raw materials, working time, number of workers needed, and product quantity. INVENTORY MANAGEMENT
As the the fina finall prod produc uctt is a food food mate materi rial al,, the the comp compan any y didn didn’t ’t mana manage ge inventory. They will sell whatever they produced. RESEARCH AND DEVELOPMENT
Research and development wing has doing researches about how to improve taste and the quality of the products. AVOIDANCE OF ACCIDENTS
For safety conditions, the company sets a safety measure known us C C P: Critical Control Point. The company pay more attention on most dangerous zones which have a wide possibility of hazards. SAFETY MEASURES
Workers should wear aprons, masks, caps while working in the production depart departmen ment. t. The compan company y takes takes necess necessary ary steps steps for preven preventin ting g fire fire and natural hazards. MACHINERY MAINTAINANCE
The company maintains a separate department called MAINTAINANCE DEPARTMENT for the maintenance of machinery, automobiles, electrical etc. There are nine workers working working under this department. department. The machineries machineries are being checked in every week. The company is maintaining entire spare
33
parts parts for the machineri machineries, es, so that if any machinery machinery is break break down, down, they can replace it immediately. PRODUCT STANDARDS
. Eastern is the first company in India and the second company in Asia got ISO 22000 Certification.
Eastern got ISO Certification in the year 2000-20005.The Organization shall ensure the following basic requirements for the implementation of ISO 2200.
The food safety hazards that may be reasonable expected to occur i
relation to products within the scope of the system are identified, evaluated and controlled in such a manner that the products of the organisation do not directly or indirectly harm the consumers.
Comm Commun unic icat atee appr approp opri riat atee info inform rmat atio ion n thro throug ugh h the the food food chai chain n
regarding safety issues related to its products.
Communicate information concerning development, implementation
and updating of food safety
MARKETING DEPARTMENT 34
DEPARTMENT CHART
BOARD OF DIRECTORS
SENIOR MANAGER
SALES ADMINISTRATION
DEPUTY MANAGER
ASSISTANT MANAGER
SENIOR SALES EXECUTIVES
Senior sales executive Sales executive
Driver
Stock assistants
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MARKETING FUNCTIONS •
Developing marketing strategies
•
Capturing marketing insights
•
Connecting with dealers & consumers
•
Building strong brand image
•
Delivering value to customers
PRODUCT DISTRIBUTION CHANNELS
Factory fresh outlets Whole sellers Retailers
MARKETING STRATEGY
Company follows push and pull strategy in the case of marketing. Merchandise strategy is also followed. TARGET ACHIVEMENT METHODS
Increments and spif are given based on the performance of the sales executives MARKETING PRODUCT LINE
Spice powders Pickles & pickle powders Rice flower Tea & coffee
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CUSTOMER CUSTOMER BENEFICI BENEFICIAL AL & SATISFAC SATISFACTION TION IDENTIF IDENTIFICAT ICATION ION METHODS
Yearly conducting dealers meet
Customer satisfaction details collected from dealers
IDENTIFICATION OF CUSTOMER EXPECTATION
Through SMRI SMRI – Professional Professional survey team Through dealers
CUSTOMER ORDER RECEIVE AND FOLLOW UP
The orders receive from dealers in weekly once.
MARKETING TOOLS & TECHNIQUES
The various sales techniques consist of:1. Rout Routee Sal Salees 2. Fact Factor ory y Fres Fresh h Outl Outlet et 3. Inte Interr Comp Compan any y Sale Saless 4. Ex Expo port rt Sale Saless DEMAND ANALYSIS
The average percentage of three constitutive months plus 5 % of the average sales.
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METHODS OF OVERCOMING COMPETITORS
There is no stiff competition faced by the company, that’s 70% market share belongs to companies product. The total number of competitors of local local market is 187
MARKET SEGMENTS
The company’s product mainly segmented on the basis of geographical, cultural and customer features.
ADVERTISEMENT & SALES PROMOTION
NEWS PAPER TELEVISION DISCOUNT
PRODUCT PUBLICITY
Mainly through advertisement
CUSTOMER RETAIN MANAGEMENT MANAGEMENT
Eastern products are already branded. The company give more importance to quality of the products, so the products already have regular customers.
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PRODUCT SELLING PROCESS
The sales executive for each route gives the order to be dispatched to each sales depot. He also takes care of the billing and cash transactions. After making a sale, a sales invoice is made and the summary is given to the cash department. The sales assistant places the order to different shops. After the delivery of goods, the vans return and by verifying the order form, the stock is checked. The accounts are maintained on a weekly basis. The compan company y has around around 400 40000 00 retail retailers ers.. Mainly Mainly,, cash cash transa transacti ctions ons are undertaken and credit facilities is entitled to only around 200 parties. On every every Mon Monday day follo followin wing g the produc productio tion n week, week, the produc products ts are are distributed from the group’s sales depot to every retailer by company’s own vehicles. A string of vans carrying freshly powdered spices is a common sigh sightt on the the moun mounta tain ins. s. Th This is is on onee of the the impo import rtan antt adve advert rtis isem emen entt techniques of the company. The advertisements through these vehicles have no additional cost. There are hundreds of vehicles carrying freshly powdered spices distributing the various products across the state. It gives maximum publicity and advertisement to the company and the brand. A meeting of the sales executives are held every week after they return from their different routes. Here, every aspect of the weekly sales will be discussed and any problems arising can be brought to the notice of the management.
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By direct distribution the company has achieved a lot of benefits. Some of them are as follows; •
They can deal with the wholesalers and retailers directly at their door step.
•
The company can contact the dealers and traders continuously and evaluate the business.
•
Thee comp Th compan any y can can avoi avoid d the role of int interm ermedi ediarie ariess in the the dist distri ribu buti tion on of the the produ roduct ct.. It help helpss to avoi avoid d un unne nece cess ssar ary y commission, brokerage and other related expenses.
•
Thee com Th company pany can can main mainta tain in a goo ood d relat elatio ions nsh hip with ith the the wholesalers and retailers.
•
The company’s own vehicles undergoing distribution aids to give an important mode of advertisement in addition to the other media advertisements. This incurs no additional cost.
Eastern Condiments has entered into World market in the recent years. In India it is capturing both urban and rural markets. In Kerala it is the market leader with more than 60% market share to almost all its products. In Tamil Nadu and Karnataka the company holds a 20% share and it is gaining stre streng ngth th.. It is also also to be no note ted d that that 50 50% % of the the mark market et is stil stilll usin using g homemade products, 50% of the market is still untapped. So there is lots of growth potential for the company.
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EXPORT DEPARTMENT
Expo Ex port rtin ing g of produ roduct ctss are are do done ne un unde derr a sepa separa rate te depa depart rtme ment nt in the the company.60% of the total production are exported to various countries.90 % of goods goods are export exporting ing to gulf countri countries es and 10% to Austra Australia lia,, UK etc. Pickles are exported in bottles and chilli and chilli powder in boxes. Every year, an average of 40 % growth in exporting are acquired by the company. Mone Mo ney y tran transa sact ctio ion n is in do doll llar arss and and expo export rtin ing g is by the the way way of dire direct ct exporting
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IT DEPARTMENT DEPARTMENT CHART
BOARD OF DIRECTORS
IT MANAGER
SENIOR OFFICER
OFFICERS
SYSTEM CONFIGURATION
RAM 512mb
HD 80 gb
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SYSTEM ANALYSIS & DESIGN
The centralized software that is ERP ORION is developed by ICICI INFOTE INFOTECH. CH. And other other three three softwa softwares res that that is -ECPL -ECPL softwa software re for for acco accoun unti ting ng depa depart rtme ment nt,, anot anothe herr ho home me deve develo lope ped d soft softwa ware re is fuel fuel mana manage geme ment nt soft softwa ware re,, It is used used in the the work worksh shop op of east easter ern n pu pump mp management
FRONTEND & BACKEND TOOLS
frontend-devoloper Backend-oracle
IDENTIFICATION OF ERROR
Full centralized scanning from the corporate office.
SYSTEM PROTECTION
MS fore friend Antivirus used for system protection.
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SWOT ANALYSIS
Strengths
It is the largest exporter of spice powder in consumer pack from India that export mainly to Middle East, USA, UK, Australia, and 60% of its products and has presence in 10 countries.
Award for outstanding outstanding export performance by spice board India India for 8 consecutive years(1997 98-2007 08)
Direct sales company owns vehicles under going distributive aids to give an important mode of advertisement.
Full Fully y comp comput uter eriz ized ed dept dept so easy easy hand handli ling ng of tran transa sact ctio ion n and and documents.
Ensures high quality in all products through modern lab facility.
Company has HACCP, ISO 9001 2000, and 220000.certification.
Eastern was selected as second among most popular brands in Kerala by the Dhanam Business Survey in 2008.
In Kerala, Eastern is the market leader with more than 70% market to almost all its products.
First company in India and second company in Asia to get ISO 22000.
About 80% of the workers are women. The company make more concentration on women empowerment
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. Weakness
Company doesn’t maintain public relation department separately.
Lack of research in marketing level.
Location of factory is not suitable for easy transportation.
While bearing the name Eastern, the consumers are having only the image of curry powder and they are not aware of other product.
Consumers are not aware about the ISO certificate.
Company not paying much attention making consumers aware of ISO 22000.
Opportunities
Attract foreign investment for further development.
Participation in International exhibitions and food fest.
Possibility of getting listed as a public Ltd, company.
Extend product line (instant gravy mix) like other rivals.
Extent market to other countries also.
Availability of pickles in local markets
Starting of exclusive showrooms in different parts of state.
Starting a spices spices garden it gives gives two opportunities opportunities : ♦ ♦
Can be used for research activities. Can be promoted as a tourist centre
Vegetable marketing company is already well known among huge, so a branded vegetable shop is an opportunity. 45
Threats
High competition in local national export market.
Each year hundreds of new curry powder companies are arising in whole market.
Upcoming retailers and their product.
Unexpected climate change.
Appreciation in money value.
Change in consumer attitudes and preferences.
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CONCLUSION
The study conducted conducted at Eastern Condiments Condiments Pvt. Ltd., which is one of the pioneer in Condiment industry and the market leader in variety of pac packa kage ged d curr curry y po powd wder erss in Sout South h Indi India. a. It was was a gene genera rall stud study y regarding all functions and aspects of Eastern Condiments Pvt. Ltd., and giving more importance to Human Resource, Marketing, Finance, Production, and Export & E.D.P. It is found that a cordial relationship is maintained between all departments for the smooth functioning and achiev achieveme ement nt of the organ organiza izatio tional nal goal goal of mainta maintaini ining ng the market market leadership and company’s image. Eastern has achieved these enviable heights mainly due to the hard work and commitment of quality besides bringing a good product at right prices to the consumers. The study helped me to understand that how the company identifies the right taste of the consumers and how it became the leading brand in south India and largest exporter of spice powders in consumer pack from India. I was also able to understand some of the opportunities and threats of the company. . In the organization study the researcher had gone through a detailed study on the implementation of ISO 22000 Certification.
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Being a student of MBA, the internship entitled ‘An organizational study at Eastern Condiments Pvt. Ltd.’ has benefited me with so much
of confidence and awareness, so as to be capable of myself to work in a firm. The study gave me an opportunity to experience and improves my pra pract ctic ical al kn know owle ledg dgee besi beside dess my theo theore reti tica call kn know owle ledg dgee abou aboutt an organization.
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