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Internship 2011
CONTENTS
CHAPTER
CONTENTS
EXECUTIVE SUMMARY
PAGE NO
2
Chapter I
INTRODUCTION
1.1
Industry Profile
1.2
Company Profile
Chapter II
11
2.1
Organizational Structure
12
2.2
Organizational Chart
12
2.3
Organizational Outlook
13
13
16
3.1
Finance Department
17
3.2
Accounts Department
18
3.3
Marketing Department
18
3.4
26
3.5
Production Department
27
3.6
Purchase Department
29
3.7
Systems Department
31
Chapter IV
32
Chapter V
SWOT ANALYSIS
40
Chapter VI
43
Chapter VII
CONCLUSION
45
Chapter VIII
BIBILIOGRAPHY
47
2.4
Chapter III
EXECUTIVE SUMMARY
The organizational study was conducted at STAR Plastics, Thrissur, Kerala. The
objective of the study is
To study the organizational structure.
To study about the structure and functioning of various departments.
To study how the management control various departments for the attainment
of the organizational objectives.
The organization is into PVC pipes and fittings manufacturing. PVC is an
organochlorine, which was first patterned in 1913 by Fritz Klatte. However, its development
for hindered by pure PVCs chemical instability and its low workability. During the 1930s,
German experiments with various stabilizers and softeners lead to the first useable forms of
PVC. By the early 1950s PVC was second only to polythene, as the most important synthetic
product in Germany. It is now the single largest use for chlorine today, using about 1/3 of all
global production. About 40 million tons of chlorine is produced by the chemical industry
every year. PVC development was part of the huge expansion of the chlorine industry after
the Second World War. PVC, Dichloro Diphenyl Trichloroethane (DDT) and Chloro
FluoroCarbons (CFCs) are all products of post war boom in the chlorine industry. Currently
there are over 11,000 oregano chlorines now in commercial use. Organo chlorines are useful
to industry because they tend to be very stable and the resist natural breakdown process.
Star Plastics have seven functional departments and its the leader in PVC pipes &
Fittings in south India. Star Plastics is the first PVC pipe fittings manufacturer in south India
to receive ISO 9002 certification. While globalization and economic slowdown in the world
markets threw up new challenges the STAR group is busy chalking out plans to translate
these challenges in to opportunity. The company is going to make a centralization system of
the software network that the progress of work at any levels, at any units, at any centers can
be viewed from the corporate office itself. Each and every aspect of the business can be
checked from the corporate office.At present company is able to later about 10% of the
market requirements. In order to later the complete needs the company is planning to increase
the production level to maximum extent possible. The company is planning to increase the
present product level of Dubai units. The research and development team of STAR group is
engrossed in developing new product for the international markets.
CHAPTER I
INTRODUCTION
1.1Industry Profile
Plastics, in the modern meaning of the word, are synthetic materials that are
capable of being formed into usable products by heating, milling, molding and
similar processes. The term is derived from the Greek plastic, to form in simplest
terms; plastics can be described as resins in their molded form.
The wonders of plastics cut across all sectors of society. It is a material of
choice due to its versatility, its physical strength, its economic viability; its easy
process ability and also its attractiveness and durability of all weather conditions.
With the globalization of Indian economy and television entering into homes and
tiniest villages and communications demand for the materials for suitable functional
use more economic packing, durable all weather products has meant increasing
demand for plastics.
Packing of cement bags, the end user is demanding plastics instead of
conventional jute, because it prevent transits loses and wastages. The hilly regions of
East India or drought prone districts of Rajasthan, Gujarat, and Tamil Nadu demand
auto molded tanks in thousands each day. The agriculturists of Himachal Pradesh
insist on plastic pipes for irrigation to their farms, the floriculturists of Karnataka
and Maharashtra cannot thrive without ultraviolet stabilized polythene wide width
films for huge tunnels and green polymers consumption and import.
The Plastic industry in India has made significant achievements ever since it
made a modest but promising start by commencing production of polystyrene in
1957. The potential market has motivated Indian entrepreneurs to acquire technical
expertise. Achieve high quality standards and build capacities in various facts of the
booming plastic industry. Phenomenal development in the plastic machinery sector
: poly styrene
1959
: LDPE
1961
: PVC
1968
: HDPE
1978
: polypropylene
The economic reforms launched in India since 1991, joint ventures, foreign
investments, easier across to technology from developed countries etc. have opened
up new vistas to further Indian plastic industry are exported to over 150 countries
round the globe with major trading partners being USA,UAE, Italy,UK,Russia,
Honkong, Germany etc. The plastic processing sector comprises of over 30000 units
involved in producing a variety of items through injections molding, blow molding,
extrusion and calendaring. The capacities built in most of this industry coupled with
inherent capabilities have made us capable of servicing the overseas markets. The
development of plastics took place in 1920s with the introduction of cellulose
acetate, polyvinylchloride and nylon.
Polyethylene evolved out of the need for a superior insulating material could
be used for such applications as radar during World War II. The decade of the 1950s
saw the introduction of poly propylene and the development of acetyl and
polycarbonate. In 1960s and 1970s a sub group of plastic family started
to
1.2Company Profile
a) Background of the company:
The history of STAR is the history of pipe fittings production in south India.
In 1983, Vikas plastics and Star plastics amalgamated to form Star plastics,
Mullurkara that is 20kms away from Thrissur town, the cultural capital of Kerala. In
1988, star became the number one PVC pipe fitting manufacture in south India it has
received the best ISI mark for quality. In 1994 star began the production and
marketing of flexible hoses under the brand name STAR FLEX. In 1998 taking
advantage of the wings of globalization star started star impex and forayed into the
global market. Growth being as the key strategy the visionary Mr.P.K.Paul nurtured
star plastics into a corporate level. After the demise of Mr. P K Paul his eldest son
Mr. Bobby Paul took the charge of the chariot. His brother Mr. Anto Paul also assists
in the day to day activities of the company .Presently the group consists of various
companies like Star Plastics, Star Flex, Shine Star, Star Exporters& Fine Polymers,
A new group venture of star group of companies for the purpose of exporters
In the year 2000, to take on the challenge of globalization, star set up a core
team and applied core ISO certification. In August 2001, star became the first PVC
fittings manufactures in south India to receive the ISO 9002 certification. Star
plastic is the market leader in Kerala, Tamilnadu & the market challenger in Andhra
Pradesh and Karnataka. The company has made its presence significantly in Middle
East market having a branch office at Dubai. It is a multi-core, multi-Product
Company which has been deeply involved in the manufacture, distribution, sale, and
installation
and
servicing
to
bring
the
customer
satisfaction
and
social
responsibilities.
In the last one decade unparalleled growth was witnessed in star group of
companies to emerge as a leader in the PVC fitting and to diversify into the
manufacture of suction hoses, drainage fittings and PVC pipes. Star plastics are a
group of companies with a turnover of 30 crores per annum and with manpower
strength of 450 employees including 50 high caliber professionals. It has a32%
growth due to the young and dynamic MDs expansions and growth plans. The
company increased its production capacity over 50% in just two years incurring huge
additional investments. Presently it is enjoying the benefits. At the end of current
half year a growth rate of 35% when compared with the last year is witnessed.
T- Transparency
A - Accountability
R - Reliability
d) Star which means:
Provider of basic requirement of all PVC related fittings, pipes, and allied
products.
Unstinted and continued supply and service since last 2 decades.
Believer and Promoter of quality products than giving simple propaganda.
The First PVC pipe fittings manufacturer in south India who is operational
and reaching newer heights year after year.
The First PVC pipe fittings manufacturer in south India to have received ISI
mark.
The First PVC pipe fittings manufacturer in south India to have received ISO
mark.
An entity who gave to its customers qualitative products & value added
services.
To have received the best appreciation from its people.
Our vision is to maintain the hegemony as the most reliable provider of high quality PVC
products to meet the diverse requirements of potable water distribution, domestic
plumbing, bore wells and lift irrigation purposes. We aim to make each of our products a
paragon of quality and technical excellence. Through our constant Endeavours of research
and innovation we strive to come up with new products that help architects and builders
keep ahead of the times
Mission: - serve water projects, construction activities and agriculture on global level to
ensure customer satisfaction.
Quality policy:
To manufacture and market goods, which comply with the consumers requirements.
In the last one decade, unparalleled growth was witnessed in STAR group of companies
to emerge as a leader in the PVC fittings and to diversify in to the manufacture of suction,
drainage fittings and PVC pipe. STAR PLASTICS is a group of companies with a turnover of
75 cores per annum and with a manpower strength of 450 employees including 50 high
caliber professionals.
f) Product/Service profile:
Star plastic product constitutes plumbing equipment materials such as PVC pipes,
fittings, S.W.R fittings and PVC adhesive. Star fitting is leading names fittings over all the
states. STAR PVC pipe fittings are manufactured from the finest grade PVC resin trusted and
acclaimed all over the-country for quality. Due to high tensile strength and reliability used in
industry, homes etc.
STAR fittings are available in above 10 shapes and measures vary from 20mm to
200mm. These are also available in 3 different colors. Injection modulated STAR PVC pipe
fittings confirm to ISI specification and assure totally safe, non-toxic water for all purposes.
g) STAR-Plastic-Products:
The company concentrates on the manufacturing of a wide range of PVC pipes and fittings
and allied products. Their products are basically categorized as
h)Production centers:
STAR plastics, the parent company of the group was the incorporated in 1983, and
within these 24 years it has grown up as one of the largest PVC fittingsmanufacturing
companies in India and its products are approved by ISI authorities. Manufactures the PVC
pipe fittings, drainage fittings, SWR fittings, Pressure fittings, solvent cement. Lisna Inc. is
situated in same premise.
STAR Flex manufactures the PVC flexible hoses, suction and delivery hoses ranging from
0.75 to 4 inch diameter.
a semi-automatic manufacturing unit which manufactures rigid PVC pipes ranging from
20mm to 200mm.
automatic manufacturing unit which manufactures rigid PVC pipes ranging from 20 mm to
200mm.This unit does the production for TAMILNADU and KARNATAKA.
Manufactures the rigid PVC pipes for plumbing and electrical purpose its a semiautomatic manufacturing unit which manufactures rigid PVC pipes ranging from 20 mm to
200mm. also manufactures the PVC pipe fittings and solvent cement. This unit does the
production for the Middle East Asia, Africa and Europe. Each division is self-reliant in its
activities of research and development, Manufacturing and marketing, now moving for total
automation and integration. STAR group of company is structured in to business units
comprising synergistic group of responsibility centers, division backed up by an extensive
marketing infrastructure and front line support services.
CHAPTER II
Ramaiah Institute of Management Studies11SBS Swiss Business School
STRUCTURE OF
THE
ORGANISATION
DIRECTOR
DIRECTOR
MGMGDIRECTOR
DIRECTOR
GENERAL
GENERAL
MANAGER
MANAGER
HR
HR
FINANCE
FINANCE
PURCHASE
PURCHASE
PRODUCTIO
PRODUCTIO
N
N
MARKETING
MARKETING
ACCOUNTS
ACCOUNTS
SYSTEM
SYSTEM
FIANCE
FIANCE
MANAGER
MANAGER
PURCHASE
PURCHASE
MANAGER
MANAGER
PRODUCTIO
PRODUCTIO
N
MANAGER
N MANAGER
MARKETING
MARKETING
MANAGER
MANAGER
CHEIF
CHEIF
ACCOUNTAN
ACCOUNTAN
T
T
ASST
ASST
MANAGER
MANAGER
(SYSTEMS)
(SYSTEMS)
BOBBY PAUL
Other Directors
General Manager
Marketing Manager
C.L.George
Finance Manager
Biju Thomas
Accounts Manager
A.C. Chummar
Established in
1984
Main production
Production range
Present production
Number of machines
50
400
Trade discount
50%
5%
Of total production
2) Accounts Manager
He is responsible for keeping the details of day book, ledger and P.F registers.
Moreover, he should record and maintain all the details of the sales tax calculation
and related documents and produce them on demand.
3) Marketing Manager
He is charge of the marketing department of the organization. The marketing
department aims to increase the turnover of the organization, market share, and
profitability of the organization. The marketing manager should be tactful. He should
know marketing concepts product mix, promotion mix, price mix, distribution mix
etc. He should be known the strength and weakness of the firms products. He is also
able to design and implement market strategies to enhance turn over and capture new
markets.
5) Production Manager
He is responsible for the production of goods services in the organization. He looks
after the purchasing function and manages the production design and process. He is
called in different names such as production engineer, plant engineer, operation
engineer etc. They are responsible for plant layout, inventory management, production
control and quality control.
6) Purchase Manager
CHAPTER III
Ramaiah Institute of Management Studies16SBS Swiss Business School
FUNCTIONAL
DEPARTMENTS
GENERAL MANAGER
FINANCE MANAGER
FACTORY MANAGER
BRANCH MANAGER
Finance department is headed by finance manager. Finance manager reports to the General
Manager and in certain strategy and urgent issues directly report to managing director and
take decisions. Finance Manager works in the coordination with chief accountant, production
manager, marketing manager, branch managers.
Sources of Finance:STAR Plastics find sources of finance through banks and other private financial institutions.
As it is a partnership firm, the partners contribute their funds to make capital requirements
and other expenditure with the help of banks and financial institutions. STAR Plastics deals
all finance requirements with South Indian bank, Kerala State Financial Enterprises (KSFE)
and State Bank of India. Vehicle loans are provided by Cholamandalam finance.
Companys Financial Policies:-
Utilization of fund.
Disposal of surplus.
Management of cash.
Financial controls.
MARKETING MANAGER
BRANCH MANAGER
SALES EXECUTIVE
REPRESENTATIVES
Marketing Policy:
STAR Lights to reduce the number of intermediaries, so they have no distributors. Billing is
directly done to the wholesalers and retailers. In case of other state sales, its a one through
the branch offices. No direct export to any customers. STAR is operating by exporting to the
branch office at Dubai, STAR IMPEX INDUSTRIES L.L.C. and billing directly to the
customers. In the case of logistics the supply of products is done through company owned
feet of vehicles. Same policy followed with inter-state also.
Functions of Marketing Department in Star Plastics:
The major functions are explained below:
1. Demand Forecasting
2. Marketing Research
3. Marketing Control
1.Demand Forecasting
Demand forecasting is the main function of marketing in STAR plastics .It should be done
through sales force in the company such as sales representatives sales executives etc.
collecting information from customers. On the basis of this information demand forecasting
is to be done.
2. Marketing Research
Marketing research is more comprehensive composing all the functions of a marketing
manager that is it covers product, price, sales, market, promotion, distribution policies. It is
commonly says that marketing research begins where manufacturing ends. In fact it
commences well before the product is fabricated. It goes in to operation even before erecting
the factory. It covers analysis of competitive advantage, market share analysis and new
product development. The main objectives of market research are:
To know buyers.
To measure the impact of promotional effort.
To know consumer response.
To know market costs and profits.
To master external forces.
To design and implement marketing control.
3. Marketing Control
Various tools used for marketing control are cost control and a market share analysis. Cost
control is one task for monitoring the cost of marketing and it is compared with planned cost
standard, so as to identify deviations and take corrective action. Market share analysis is also
used for marketing control.
Objectives of Marketing:
The basic objectives of marketing are to satisfy human wants. The important objectives of
marketing are briefly explained below:
1. Customer Satisfaction through Quality Products
Marketing activities aims at achieving customer satisfaction by offering quality
products. It is also help more increasing profit, increasing goodwill, increasing image of the
organization etc.
2.After Sales Service
This another objective of marketing company provides after sales services to its
customers. The service of the company does not end with process of distribution the company
has been waited until good result comes by giving their products to consumer and they
always rendered their services at the time needed by the customers. The marketing and sales
department keeps their eyes and ears to open to know changes in the market. The complaint
and suggestions if any are well accepted by the company from their customers. There is any
complaint about the sold product the company will take it back at the companys costs.
Method Of After Sales Service:
For providing after sales service company may use thefollowing methods:
Sending special staff to the customers.
Arranging service with dealers/agents.
Appointing in depending service specialists.
3. Maintaining Price Leadership:
Companys important objective is to maintain price leadership. Company is always trying to
become a price leader. It does not like become a price follower.
4. Achieving Maximum Market Share:
Companies another objective is to achieving maximum market share. In order to
achieve maximum market share, company will spend more on advertising and offering
quality products to the customers.
5. Other Objectives:
Other objectives include:
Market Segmentation:
STAR is the dominant player in the South India. Geographically the market is
segmented into five regions and branch officers are responsible for marketing activities in
their regions.
1.
2.
3.
4.
5.
Bangalore (Karnataka)
Chennai (TN)
Dubai (Middle East, Russia, South Africa etc.)
Nagari (AP)
Thrissur (Kerala)
services to dealers. It is based on the nature of product the company offers their dealers with
replacement facility after checking the product.
3. In the case of sales force:
Company provides incentives to sales force. This includes the activities which
induce and motivate sales person. The aim of sales forces promotion is to make the sales
mens effort most effective. The various schemes of sales promotion are:
Bonus to sales force.
Sales force contest.
Sales meetings, convention and conferences.
Advertisement:
In the case of STAR advertisement is the most glamour element of the promotion mix. It
covers all the activities connected with the giving of publicity regarding goods and services
offered for sale. Advertising is transmitting through mass media such as television,
newspapers, magazines etc.
Advertising Policy:
Each potential customer must see an advertisement
Brand awareness is not much with the customers. Brand awareness to be created, its in
growth stage. Advertisement focused on creating the brand image and promoting the STAR
brand for their entire product. Earlier advertisement (Hoarding) were exhibited at district
headquarters and important junctions. Presently, apart from above mentioned places, at areas
of potential customers, each retail and whole sale outlet etc.
Mode of Advertisement:
1. Earlier as wall paintings, banners etc. now changed to huge flex hoardings.
Reason for change is:
a. Attractiveness.
b. New technology acceptance with change in market.
Pricing Strategy:
In STAR pricing strategy is a special kind of plan formatted in order to meet the
changes of external factors particularly from the policies of competitors. Pricing strategies
change with competitive situation. Some of the common pricing strategy followed STAR
plastics are:
1. Competitive pricing.
2. Premium pricing.
1. Competitive pricing:
It depends upon market condition competitors price, seasonal variation etc. customers are
very much aware of the quality and price of the product.
2. Premium pricing:
In the case of suction and delivery hose, adopted a premium price strategy to utilize the ISI
marking and brand image. As the brand awareness is less with customers market will still
depends on price of the product.
In the case of new product:
Following pricing strategy followed in the case of new products:
1. Skimming price policy:
Company adopts skimming price policy in the case of new products. This is done with the
basic idea of gaining a premium from those buyers who always ready to pay a much higher
price than others. The main reason for adopting this strategy is to attract the consumers of
high income group. .
2. Penetration price policy:
Sometimes company adopt penetration price policy that means changing low price from
beginning in order to stimulate the growth of the market and to capture a large share of it.
Since the customers with low income are able to purchase it.
Price Fixation:
Price of the product depends on two components:
a. Cost of raw material - variable.
b. Operational &Processing cost - fixed.
Product price changes with change in raw material price, which is considered as a
variable. Minimum period of two weeks taken for price revision, though in some cases raw
materials price fluctuates each day.
Risk Involved:
Usually bad debts may occur in a business concern. But in STAR PLASTICS till now no bad
debts have been incurred. The usual credit period given to customers is 15 days. If one
customer delays the payment, they collect the amount by the way of sending reminders to
him, although they are keeping some amount as reserve for bad and doubtful debts. The
society is keeping large quantities of direct materials as stock because the price of such
materials is growing day by day. Therefore these excessive raw materials dont result in loss
though some heavy investment is required in it.
To avoid the risk involved in transportation of goods to customers outside Kerala, the goods
are insured accordingly. It helps the society to avoid the risk involved in transporting goods to
distant places.
Organization Structure:
HUMAN
RESOURCE
TOP
MANAGEMENT
MIDDLE
MANAGEMENT
SUPERVISORY
MANAGEMENT
OPERATIONAL
MANAGEMENT
BOARD OF
DIRECTORS
CHEIEF
ACCOUNTANT
FINANACIAL
DIRECTORS
DEPARTMENTAL
HEADS
DIVISIONAL HEADS
SECTIONAL HEADS
SENIOR
SUPERVISORS
INTERMEDIATE
SUPERVISORS
SKILLEDWORKERS
SEMI- SKILLED
WORKERS
UNSKILLED
WORKERS
FACTORY
MANAGER
ASST. MANAGER
(ADMINISTRATION)
PRODUCTION
SUPERVISORS
ACCOUNTANT
WORKER
STORE IN
CHARGE
QUALITY IN CHARGE
(TECH & R&D)
CASHIER
CLERK,
RECEPTION
The Companys production department handles the production of PVC pipe fittings. The
main raw material for product is Resin and other related components like chemicals. 95%
resin and 5% other chemicals are used for the production. The plant is set up in process
layout. The raw materials go through the various processes for development of final product.
Other than company fittings Company also produce solvent cement and in different measures.
There are 20 machines in production plant, each costing up to 35 lacks.
Depending upon the type of products, the production process is divided in to three:
Extrusion: - For rigid pipes and flexible hoses.
Injection Molding: - For PVC Pipe Fittings.
Mixing: - For solvent cement.
PURCHASE
MANAGER
SENIOR
ASSISTANT
OFFICE
ASSISTANT
The purchase manager concerns with the factory managers regarding the technical
specifications, manufacturer, quality standards, cost of materials, availability, time delay etc.
In case of engineering goods, testing equipments, speciality chemicals, instruments etc the
purchase manager seeks help from the engineers and the other technical persons working
with the research and development. Purchase manager also works in coordination with the
chief accountant, to know the position and about the credit position with the suppliers.
issued by factory manager to the purchase manager. In case of regular product like stationary
and small purchase, the store in charge issues the purchase intend giving a copy to the factory
manager item specification, required quantity, name of the manufacture, approximate costs
etc. are mentioned in the purchase intend. The purchase department then enquires with the
suppliers and invites quotation. From the received quotation mentioning the offered price,
mode of payment, discount if any, time need for dispatches etc., purchase department chooses
the most appropriate by considering all the criteria.
Purchase manager consults with accounts department about the availability of cash,
payment condition, balance of any paid, whether the account with the supplier crossed the
credit limit etc. with the approval of accounts department, purchase manager then sends a
purchase order to the supplier. In case of new materials or new supplier, purchase department
insist or samples to be supplied before the purchase. These samples are tested within house
laboratories. Orders are given only when the sample confirms to the required quality levels.
B.Store
Store is very important to arrange different items of materials in a systematic manner. Store
records information relating to receipts and issue of materials and products. Proper storage is
essential for material cost control. Store is headed by the store in charge who report to the
factory manager and purchase manager. Each production center has its own store. Material
purchasing is done as a centralized activity and then it is supplied to stores at production
centers. Store is divided into three:
setup further. Costume made ERP software was developed for its units and head office. The
installation of ERP software made the work of the departments of STAR easier. Being
costume made this ERP software, with SQL RDBMS, Front end
windows NT 2000 and XP, seamlessly had integrated all function of the organization VIZ,
production, inventory billing. Payroll, Accounting etc.
The head office at Thrissur has three servers and forty nodes running the application. One
server is networked and other is kept as back up, another one is used as internet server. Other
units totally have about eight servers and about 50 nodes. Their latest plants at DUBAI,
CHENNAI has computerized control room for monitoring and production controlling. In
addition with ERP system, STAR also had implemented an electronic messaging solution
with its organization, which is centered on the companys website. This messaging solution
obviates the communication bottle neck of company.
CHAPTERIV
PORTERS FIVE
FORCES MODEL
industry profitability. An "unattractive" industry is one in which the combination of these five
forces acts to drive down overall profitability. A very unattractive industry would be one
approaching "pure competition", in which available profits for all firms are driven down to
zero.
The Five Forces are
1.
2.
3.
4.
5.
For plastics producers worldwide, India represents a range of highly new opportunities for
growth. The plastics industry in India has made significant achievements ever since it made a
modest but promising beginning by commencing production of polystyrene in 1957.The
Indian plastic industry conforms to the levels of sophistication required to produce plastic and
plastic products of international quality standards. The consumption of plastics 1999 is
estimated at twelve million tons by the year 2010. The demand for plastics is growing
approximately @ 22% annually and plastic consumption in India is expected to increase from
almost 2.7 million tons of various commodity plastics in 1998 to almost fifteen million
tonsby 2010.
During the organizational study undertaken in Star Plastics, Kerala, the information collected
regarding its competitors, products, the bargaining power of customers and the suppliers and
the intensity of competitive rivalry has been analyzed using Porters five forces model and is
as follows:
zero (perfect competition). The history of star is the history of pipe fittings production in
south India. In 1983, Vikas plastics and Star plastics amalgamated to form Star plastics,
Mullurkara that is 20kms away from Thrissur town, the cultural capital of Kerala. In 1988,
star became the number one PVC pipe fitting manufacture in south India it has received the
best ISI mark for quality. Afterwards more organizations came into the plastic manufacturing
industry and so that the competition also becomes huge.
The main competitors for Star in the market now are:
ultra-modern PVC pipes plant at Ratnagiri in Maharashtra. The company also has a
plant in Pune.
trusted and acclaimed all over the country for quality. Due to the high tensile strength and
reliability used in industry, homes etc. STAR fittings are available in above 10 shapes and
measures vary from 20mm to 200mm. They are also available in 3 different colors. Injection
molded STAR PVC pipe fittings confirm to ISI specification and assure totally safe, nontoxic water for all purposes.
The development of PVC pipes and all type of Plastic fittings and equipmentsall
over the world is by using the organochlorine called Poly Vinyl Chloride (PVC). STAR is
also developing all type of pipe products (rigid pipes, flexible hoses etc.) using the same
organochlorine PVC. The competitors are also using the same technology. So there is no
substitute products made from other organochlorine, the plastic products are all made from
the same organochlorine PVC.
There is little differentiation over the product and substitutes can be found easily.
Nowadays customers have the buying power and they have the choice in the market to
choose the product what they want. In 1994 Star began the production and marketing of
flexible hoses under the brand name STAR FLEX. Before that Nediyara group came with
Soft PVC Garden Hoses and it has a good name among the customers and has a good market
also. So when Star came with flexible hoses, it is difficult to market the product. But while
comparing to other companys products, Star have international standards and also have the
ISI certification and the product flexible hose is for both domestic and industrial use. This
made Star to gain supremacy of the products over others products, market ascendancy was
not difficult. Star now is a ubiquitous presence in the entire Middle-East and South Africa. In
2001, STAR received the ISO 9002 Certification, yet again the first in South India. The
customers of STAR are satisfied with their products. They continue to use the product and
will purchase them in future. Quality is the main factor that helps STAR to compete with
other brands. Advertisements were done in print media only.
If they are the only supplier or one of few suppliers who supply that particular raw
material.
If it costly for the organization to move from one supplier to another (known also as
switching cost).
STAR plastics have suppliers all over South India. STAR plastics concentrates there market
in India mostly in southern region. STAR has a monopoly market in southern area. The
company can market their product very smoothly through the market segmentation. The
company is selling their products by dividing the market state wise. The company
concentrates in Tamil Nadu, AndhraPradesh, Karnataka and Kerala. In North India the
company continues marketing of their products.
To be more precise, the product of the company makes its presents felt in the
following counties:
INDIA
UAE
RUSSIA
IRAN
AFGHANISTAN
MUSCAT
QATAR
BAHRAIN
SAUDI ARABIA
EGYPT
SUDAN
ETHIOPIA
SOMALIA
SOUTH AFRICA
It is costly to leave the industry hence they fight to just stay in (exit barriers).
In India the PVC industry is going through high competitive rivalry. As too many
organizations are coming to PVC pipes & Fittings manufacturing industry yearly, the
competition is also becoming higher. In the last one decade unparalleled growth was
witnessed in Star group of companies to emerge as a leader in the PVC fitting and to
diversify into the manufacture of suction hoses, drainage fittings and PVC pipes. The
companies operation includes manufacturing of PVC fittings and allied products in clearly
defined core business areas at home and overseas. The Star group of companies is the single
largest plastic industry in private sector over years, star group has steadily developed into a
professionally managed company comprising of 8 manufacturing unit in 3 production centers
with a total installed capacity of 3850 meter per annum-8 divisions and effective centralize
support services wholly dedicated to the most existing standards of quality and customer
services, constantly motivated by the need to ensure total product satisfaction. In the year
2000, to take the challenge of globalization, star set up a core team and applied core ISO
certification. In August 2001, star became the first PVC fittings manufacture in south India to
receive the ISO 9002 certification. Now Star Plastics is the market leader in South India. The
company has made its presence significantly in Middle East market also.
Strategy persuaded by Star PVC is:
Produces good quality product.
Makes use of modern techniques for production to meet the demands
mostly with the help of pops.
Assigning targets to each store manager and as such rewarding then
with attractive prizes.
Everyday feedbacks are taken.
The value which exists in Star PVC is:
No discrimination for race, religion, decision making and actions.
To develop a sense of respect for oneself in others mind.
Discipline is given great importance.
These all help them to overcome the intensity of competitive rivalry in the PVC pipes &
Manufacturing industry.
CHAPTER V
SWOT
ANALYSIS
SWOT analysis is a strategic planning tool used to evaluate the strengths, weakness,
opportunities and threats involved in a project or in a business venture. It involves specifying
the objectives of the business venture or project and identifying the internal and external
factors that are Favorable and unfavorable to achieve the objectives.
Strength:
Weakness:
1. Organization in flexibility (Flexible working hours and Policies for flexible working).
2. Limited branches.
3. Lack of access to the key distribution channels (Not concentrating in the rural areas of
south India where there are lot of business possibilities in agriculture sector. Now the
organization is concentrating mainly in the construction Industry).
4. Advertisements are done through print media only.
Opportunities:
1. PVC pipe industry is in growth stage so PVC pipe industry has a greater opportunity
to grow.
2. Immense opportunities as infrastructure development in India are growing at a faster
pace.
3. There are large untapped opportunities in Government sector(E.g. Government is
giving subsidies to the farmers for buying agriculture equipments).
4. Growth of real estate on account of nuclear families.
5. Agriculture promotion schemes by government and other agencies.
Threats:
1. Sudden fluctuations in crude price, causing fluctuations in raw material price makes
difficult in pricing strategy.
2. Industry is one among those with greater competition.
3. In the changing world of technology, sometimes a better substitute over PVC may
emerge.
4. All the competitors (Hycount Pipes, A-One Polymers, and Finolex Industries etc.) are
changing their strategies and formulating new ones to capture new markets.
5. As PVC is a plastic which is not biodegradable causes environmental pollution, may
face a ban in future.
CHAPTER VI
FINDINGS AND
SUGGESTIONS
Findings:
Star Plastics is the number one PVC pipe fitting manufacturer in south India and it has
received the best ISI mark for quality. In August 2001, Star became the first PVC fittings
manufacturer in south India to receive the ISO 9002 certification.
International Standard that is being followed as far as the quality of the products is
concerned.
Has well trained employees to operate the machines.
Provides excellent services to its employees like canteen, medical facilities,
transportation etc.
Premises are huge and designed in such a way that the raw materials can easily
Suggestions:
Problems can be detected early and treated to prevent deterioration welfare and cost
reduction.
Annual medical checkup for all workmen and employees. A small amount can be
deducted from the salary one time.
Cleanliness and orderliness has to be further improved.
Improve security measures by using electronic devices at all gates.
Advertisement need improvement (currently advertisements is done through print
media only, need to be done in visual media also).
CHAPTER VII
CONCLUSION
CONCLUSION
The study conducted at STAR GROUP OF COMPANIES THRISSUR which is the pioneer
and market leader in the PVC pipe product in South India, helped in getting a wider outlook
about the business environment and managing an organization. Organization has six
production centers and five marketing branches spread all over South India and Middle East
Asia, with operation all over the world.
It was a general study regarding all functions and aspects of STAR. The company has seven
functional departments through which it was operating. It is found that company has a good
working environment and cordial relationship is maintained between all departments for the
smooth functioning and achievement of the organization goal of maintain the companys
brand image among the customers. Porters Five Forces Model is done in the period of study
to analyze the threat of the entry of new competitors and substitute products or services, the
bargaining power of the customers and the suppliers and the intensity of competitive rivalry.
SWOT analysis is also done to analyze the Strength, Weakness, Opportunities and Threats of
the organization.
Star has made are of most advance technology and up to date knowledge. Fully automated
production has been put to use long time ago U.S made microprocessor controlled machinery
is used to for production. Star received the ISI mark for quality and ISO 9002 certification for
quality by TUV Germany, and ISO 14001: 2001 certification. All the products are of
International standard. At present company is able to later about 10% of the market
requirements. In order to later the complete needs the company is planning to increase the
production level to maximum extent possible. The company is planning to increase the
present product level of Dubai units. The research and development team of STAR group is
engrossed in developing new product for the international markets. This has helped them to
gain valuable insight that prompt the group to search alternative ways for manufacturing
better products in a cost effective manner.
CHAPTER VII
BIBILIOGRAPHY
BIBILIOGRAPHY
Books Referred:
Philip Kotler, Jha, and Koshy: Marketing management.
Roger. A. Kerin, Steven. W. Hartley, Eric. N. Berkowit, William Redlius: Marketing
Management.
Websites Referred:
www.wikipedia.com
www.stargroupind.com
www.google.com
Journals: