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I Ashok RamKaran Yadav hereby declare that the project report entitled “a
conceptual study of business management and organization system – YAMAHA motors
Ltd .” Bangalore has been done by me under the guidance of Prof. Shreya.k.rao, Professor
– Head – MBA & TPD, Excel Business Academy, Bangalore. This project report has been
submitted to Excel Business Academy, Bangalore as a part of partial fulfillment for the
award of the degree of Post Graduate Program in Management from Excel Business
Academy, Bangalore.

I also hereby declare that this project report has not been submitted at any time to any
other institute or university for the award of any degree.


Place: Bangalore Ashok Ramkaran Yadav

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This is to certify that Ashok Ram Karan Yadav, a student of 1 st Trimester

MBA+PGPM during the academic year 2010-2012 has successfully completed the project

report “a conceptual study of business management and organization system on

YAMAHA motors LTD.” Under the guidance of Prof. Shreya.K.Rao, Professor, Excel

Business Academy, in partial fulfillment for the award of Post Graduate Program in

Management from Excel Business Academy, Bangalore.

His character and conduct was good during the study.


Place: Bangalore Prof.Shreya.K.Rao

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The satisfaction and euphoria that accompany the successful completion of any task would be but

incomplete without the mention of the people who made it possible, whose constant guidance and

encouragement crowned our efforts with success.

I consider it my privilege to express gratitude and thanks to the Management – Excel Business

Academy, Bangalore for giving me the opportunity to conduct this study.

I thank our Principal Prof. Thejaswi Naviloor, for the encouragement and intellectual influence

during the course of the project work.

I wish to express my heartfelt gratitude to Prof. Gurutej, Head – PGPM & Techno Management

Studies; Prof. Shreya K Rao, Head – MBA & TPD and my Project Guide Prof. Shreya K Rao

for their help and able guidance for the completion of the project successfully.

I am grateful to the Librarian of Excel Business Academy, for his support during my study.

Last but not the least, I would also like to thank each and everyone especially all my friends for

their cordiality & support during my project.


Place: Bangalore Ashok Ramkaran Yadav

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1 1.1 Executive summary 6
1.2 Meaning of Business 7
1.2 Meaning of management 7-9
1.3 Meaning of Business Administration 10
1.4 Difference between ‘Business management’ & ‘Business 11-12

1.5 Types of Business 13-16

2 Organizational System (General Study)

2.1 Meaning of Organization 17

2.2 Types of Organization 18-22
2.3 Types of Ownership 23-25
2.4 Vision, mission & goals of the company 26
2.5 Organizational structure 27-29
2.6 Functional Patterns – people, policies, systems 30
2.7SWOT analysis 31-32
3 Organizational System with respect to YAMAHA motors Ltd.

3.1 The origns of yamaha 33

3.2 History of yamaha 34
3.3 Type of organisation 35
3.4 Type of ownership 36
3.5 vission, mission and goals of an organization 37-38
3.6 organisational structure 39-40
3.7 funtional pattern ,people, systems, policies 41-42
3.8 SWOT analysis of yamaha 43-44

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3.8 Findings 45
3.9 Conclusion 45
4 4.1 Biblography 46
4.2 Annexure 47-49

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My project was aimed at a conceptual study of business management and

organizational system of Yamaha Motors LTD. Yamaha initially started its operations in
India as a joint venture with Escorts ltd the business strategies and management strategies
were a blend of Japanese management culture and Indian management culture. The
organizational and functional trend kept on changing till date.

It is analyzed that Yamaha kept on changing its strategies and functions as per
market to achieve their mission statement, after 5 decades Yamaha is no more a joint
venture. Yamaha motors follow the Japanese culture which enables them to take care of
their goals and objectives with minimal problems.

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Business refers to economic activities concerned with the production and sales of
the goods and services for the purpose of earning profit. It may be noted that production or
purchases of goods and services for one’s own consumption cannot de called business . in
other words , business is concerned only with that part of production which is exchanged
with others for profit.

Few definitions given by eminent authorities ,

In the words of URWICK and HUNT , “Business is any enterprise engaged in

the production and distribution of goods for sale in a market which other
community need and are willing to pay for’’ .

According to HANEY, “Business may be defined as human activity directed

towards producing or acquiring wealth through buying and selling of goods”.


Management is a universal process. It has its place not only in business enterprise but also
in political, military, religious, charitable and educational institutions in fact it has its
place in any organized activity which involves the getting together of individuals in a
group for the realization of definite common goals.

Popularly the term ‘management’ is used to refer the group of managerial personnel of an
enterprise. In short it is used to refer to a process, function or activity.

So let us consider some definitions

According to HENRY FAYOL, “To manage is to forecast and to plan, to

organize, to command, to co-ordinate and to control”.

In the words of STANLEY VANCE, “Management is simply the process of

decision-making and control over the actions of human beings for the express
purpose of attaining predetermined goals”.

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Management operates through various functions, often classified as planning, organizing,
leading/directing, and controlling/monitoring.

 Planning:
The process by which deciding what needs to happen in the future and generating
plans for action.

 Organizing:
The process by which the structure and allocation of jobs are required.
 Staffing:
The process by which managers select, train, develop, motivate, retire
 Directing:
The process by which the function of guiding and supervising the activities of the

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 Controlling/Monitoring:
The process by which it helps in keeping the organizational activities on the right
path and aligned with plans and goals.
 Decision Making:
The process by which the selection of best alternatives out of various possible
 Motivation :
Motivation is also a kind of function of management, because without motivation,
employees cannot work effectively. If motivation doesn't takes place in an
organization, then employees may not contribute to the other functions.
 Leadership:
The process by which influencing the actions of a person or a group to attain
desired goals.
 Communication:
It is the transfer of information and understanding from one person to another. It is
a way of reaching others with ideas, facts, and thoughts. Communication is
important in organizations, because managers can accomplish very little without it.

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Business administration is the process of managing every aspect of a

business in order for it to maintain its growth or stability, depending on the overall
goal of the owner or owners.

Business administration means organizing and directing the activities of a


An MBA, or master of business administration, degree is a postgraduate degree from a

University with a business school that teaches management. Essentially, the program
covers the structure and purpose of a business and its various functions, and the tools
needed to manage these functions.

In business, administration consists of the performance or management of business

operations and thus the making or implementing of major decisions.
Administration is the universal process of organizing peoples. Administration is
the function in industry concerned with determination of the corporate policy, the
coordination of finance, production, and distribution.


There are 5 elements of administration"


It is deciding in advance what to do, how to do it, when to do it, and who should
do it


It involves identifying responsibilities to be performed, grouping responsibilities

into departments or divisions, and specifying organizational relationships.


It is leading people in a manner that achieves the goals of the organization. This
involves proper allocation of resources and providing an effective support system.


Most of the administrative functions, beginning with the implementation of

a budget plan through the application of budget controls.

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Difference between Business management and Business administration

Business administration focuses on preparing students for the decision

making roles within an organization.

Business management focus is on management aspects: improving

communication, productivity, effectiveness and efficiency and aligning
resources, basically, implementing the decisions made by administrators.

In corporate, Business administration organizing the business

activities and making decisions for organization growth. Administration
emphasizes the more managerial aspects of what goes on in the organization
and how it is administered to bring about the business aspects. A
business administrator presides over the daily operations of an organization.

Business management organizing the peoples and generating plans for

peoples. At times, managers can also handle training programs of new or
current employees. The manager plays the most important role in employee
motivation. A business manager is responsible for running the business day-

In the practical world of business, they are very similar, and generally
have identical functions and responsibilities. Such as Planning, Organizing,
Direction, Decision making.

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Business administration Vs Business Management



Nature Thinking Business Function Doing Business function

(What is to be done and when) (Who should do it and how)

Scope Determines objectives and policies Implements plans and achieves

goals through people

Skills Conceptual and human skills Technical and human skills


Usage Mostly in Corporate, Government, Mostly in business Organizations.

military, social organizations.

Types of Business

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Service businesses

A service business is a business which sells services directly to consumers or

other businesses. The service sector is active all over the world, and many people have
interactions with service businesses on a daily basis. Companies can also
have subdivisions which take the form of service businesses; for example,
a computercompany may have a service arm which provides support to its users.

Services are intangible in nature, only appearing when required by the consumer,
which makes the nature of a service business very different from that of other types
of businesses. Some examples of service businesses include the hospitality sector,
consulting, appliance repair, computer support, health care, utilities, business services, real
estate, legal services, and education. In all of these cases, people are being provided with a
service, not a product, whether they are receiving treatment for a medical problem or
learning in an elementary school classroom.

Transportation business

Transportation plays a key role in economic success by allowing for the safe and
efficient distribution of goods and services throughout the supply chain.

Transportation links the various integrated logistics activities. Without

transportation, the integrated logistics system breaks down. Some view transportation as
the glue that holds the entire system together. Without the transportation link raw material
cannot flow into the warehouses and plants, nor can be finished product flow out of the
plant to field warehouses and finally to the customer.

If a product is not available at the precise time it is needed, there may be expensive
repercussions, such as lost sales, customer dissatisfaction, and production downtime, when
the product is being used in the manufacturing process.

Transportation is the most visible of all functions of logistics and high contributor to
logistics cost. We can see trucks, containers and wagon loads of material being moved
from place to place as an activity directly associated with trade and business.

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We should also appreciate that this is an activity that adds highest amount of cost to the
activity of making inputs and outputs available to consumers. Transportation function
moves the products to meet customer expectations at minimum cost

Basic Means of Transportation

• Air transport

• Railways.

• Water transport

• Motor carriers


Agriculture business is a generic term for the various businesses involved in food
production, including farming and contract farming, seed supply, agrichemicals, farm
machinery, wholesale and distribution, processing, marketing, and retail sales. The term
has two distinctly different connotations depending on context.

Within the agriculture industry, agribusiness is widely used simply as a convenient

portmanteau of agriculture and business, referring to the range of activities and disciplines
encompassed by modern food production. There are academic degrees in and departments
of agribusiness, agribusiness trade associations, agribusiness publications, and so forth,
worldwide. Here, the term is only descriptive, and is synonymous in the broadest sense
with food industry.

Mining business:

Mining is the extraction of valuable minerals or other geological materials from

the earth, usually from an ore body, vein or (coal) seam. Materials recovered by mining
include base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale,
rock salt and potash. Any material that cannot be grown through agricultural processes, or
created artificially in a laboratory or factory, is usually mined. Mining in a wider sense
comprises extraction of any non-renewable resource (e.g., petroleum, natural gas, or even

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Mining of stone and metal has been done since pre-historic times. Modern mining
processes involve prospecting for ore bodies, analysis of the profit potential of a proposed
mine, extraction of the desired materials and finally reclamation of the land to prepare it
for other uses once the mine is closed.

The nature of mining processes creates a potential negative impact on the

environment both during the mining operations and for years after the mine is closed. This
impact has led to most of the world's nations adopting regulations to moderate the
negative effects of mining operations. Safety has long been a concern as well, though
modern practices have improved safety in mines significantly.

Financial business:

Raising and managing of funds by business organizations. Such activities are

usually the concern of senior managers, who must use financial forecasting to develop a
long-term plan for the firm. Shorter-term budgets are then devised to meet the plan's goals.
When a company plans to expand, it may rely on cash reserves, expected increases in
sales, or bank loans and trade credits extended by suppliers. Managers may also decide to
raise long-term capital in the form of either debt (bonds) or equity (stock). The value of
the company's stock is a constant concern, and managers must decide whether to reinvest
profits or to pay dividends. Other duties of financial managers include managing accounts
receivable and fixing the optimum level of inventories. When deciding how to deploy
corporate assets to increase growth, financial managers must also consider the benefits of
mergers and acquisitions, analyzing economies of scale and the ability of businesses to
complement each other.

Manufacturing business:

This sector generally takes the output of the primary sector and manufactures
finished goods or where they are suitable for use by other businesses, for export, or sale to
domestic consumers. This sector is often divided into light industry and heavy industry.
Many of these industries consume large quantities of energy and require factories and
machinery to convert the raw materials into goods and products. They also produce waste
materials and waste heat that may pose environmental problems or cause pollution.

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Real estate business:

With the development of private property ownership, real estate has become a
major area of business, commonly referred to as commercial real estate. Purchasing real
estate requires a significant investment, and each parcel of land has unique characteristics,
so the real estate industry has evolved into several distinct fields. Specialists are often
called on to valuate real estate and facilitate transactions. Some kinds of real estate
businesses include:

•Appraisal: Professional valuation services

• Brokerages: A mediator who charges a fee to facilitate a real estate transaction
between the two parties.
• Development: Improving land for use by adding or replacing buildings
• Net leasing
• Property management: Managing a property for its owner(s)
• Real estate marketing: Managing the sales side of the property business
• Real estate investing: Managing the investment of real estate
• Relocation services: Relocating people or business to a different country
o Corporate Real Estate: Managing the real estate held by a corporation to support
its core business—unlike managing the real estate held by an investor to generate

Retail business:

Retailing consists of the sale of goods or merchandise from a fixed location, such as a
department store, boutique or kiosk, or by mail, in small or individual lots for direct
consumption by the purchaser.[1] Retailing may include subordinated services, such as
delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys
goods or products in large quantities from manufacturers or importers, either directly or
through a wholesaler, and then sells smaller quantities to the end-user. Retail
establishments are often called shops or stores. Retailers are at the end of the supply chain.
Manufacturing marketers see the process of retailing as a necessary part of their overall
distribution strategy. The term "retailer" is also applied where a service provider services
the needs of a large number of individuals, such as a public utility, like electric power.

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An organization is a social arrangement which pursues collective goals, controls

its own performance, and has a boundary separating it from its environment. The word
itself is derived from the Greek word “organon”, itself derived from the better-known
word “ergon”.

Organization is the arrangement of the larger units of meaning in a paper. That's one of the
things that are going to be very different from one course to the next. What are the expected
patterns of organization? A lab report is very different from a scientific report, is very different
from a poem, is very different from a report in the newspaper. All of these have their own patterns
of organization, all of which are acceptable in specific disciplines.

Organization typically refers to the large elements of text structure. Sometimes these
elements are formalized in practice, as in the typical lab report, through consistent use of headings.
Sometimes elements of organization are only informally acknowledged -like the thesis of an
academic paper. Most writers across the university would agree, however, that organization refers
to the ordering of ideas.

Organization is thus:

(i) A system

(ii) Established structure

(iii) People work and deal with each other in coordinated and cooperative way.

(iv) Grouping work

(v) Established relationship for authority and delegation

(vi) Attainment of common goal of the enterprise

(vii) Definition of functional role of each personnel and outline of his responsibility for
business performance.

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Types of organization

There are 5 types of an organization

1.Line Organization

Line organization is the simplest form of organization. This is known by different

names such as military, vertical, scalar and departmental. Authority flows in a direct line
from superiors to subordinates. Each employee knows who his/her superior is and who has
authority to issue orders. The one-man one-boss principle is strictly applied. Managers
have full authority in their own areas of operation and are responsible for final results.
Each subordinate is directly responsible for the performance of assigned duties. If the
subordinates fail to carry out reasonable orders or directives, the superior has right to take
disciplinary action. Authority flows downward and responsibility flows upward
throughout the organization.

Line organization structure

Production Manager

Foreman A Foreman B Foreman C

Workers Workers Workers

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2. Line and Staff Organization

The line-and-staff organization combines the good features of both the line organization and
Functional organization. The staff specialists provide advice and support to the line managers in
getting the work done. Staff specialists concentrate on a narrow portion of the organization’s
activities. However their authority is purely advisory. not functional. The line organization is
supreme and staff organization is created to service it. The role of staff is considered a service to

In Line and Staff Organization, There are two managers, such as Line Managers
and Staff Managers. The line Managers perform the function of decision making, issuing
orders and controlling while the Staff managers perform the functions of advising,
assisting and providing expert and specialized services.

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3. Functional Organization

In Functional Organization, all activities in the enterprise are grouped together

according to certain functions like production, marketing and personnel and put under the
charge of different persons. The person- in-charge of a function follows it throughout the
organization and also controls the individuals working in the functional area. This means
that if a person performs several functions, he/she will be under the direct charge of
several persons-in-charge of these functions. Each functional area is put under the charge
of functional specialists and he has got the authority to give all decisions regarding the
function whenever the function is performed throughout the enterprise. The functional in-
charge is an expert in his own field.

General Manager

Personnel Finance Production Marketing

Manager Manager Manager Manager

4. Project of Matrix Organization

The Project of Matrix organization is the combination of the Project organization and
the Matrix organization. The Matrix organization is the combination of the Project
organization and the Functional organization. This is one of the latest types of
organizational design. It has been developed to establish flexible structure to achieve
series of project objectives. Matrix Organization, also known as grid, is an answer to the
growing size and complexity of the undertaking, which require an organization structure
more flexible.

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Authority flows vertically in functional departments. They focus on project teams,

bringing skilled individuals together from different parts of the organization. Individuals
were made responsible both to their line manager and the project manager involved. A
matrix organization structure is an organizational reporting structure commonly used for
project-based teams.

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5. Committee Organization

Committee is a group of individuals designated to take decision in matters referred to it

through free exchange of ideas among its members.

Committees may be classified in various types.

Standing committees or ad hoc committees

A committee may be Permanent or temporary in character. A standing committee has

permanent existence while adhoc committee is constituted for a specific purpose.

Decision-making committees

A committee may be delegated authority to make a final decision on the problems.

Line or staff committees

This committee is charged with the authority of decision making affecting subordinates
responsible to it.

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Types of Ownership

A business ownership should be structured according to the needs of the owners and
potentially liability that the business could incur. The different types of business ownership are

There are 8 Types.

1. Sole proprietorship
2. Partnership
3. Corporation
4. Public Limited Company
5. Private Limited Company
6. Limited Liability Company
7. Unlimited Liability Company
8. Franchise

1. Sole proprietorship
These firms are owned by one person,usually the individual who has day-to-day
responsibilities for running the business. Sole proprietors own all the assets of the business
and the profits generated by it. They also assume complete responsibility for any of its
liabilities or debts. This is the Easiest and least expensive form of ownership to organize.
the business and the owner are one and the same.


The partners should have a legal agreement. Partnership is a type of business

ownership where two or more people share the ownership of the company and the profits
or losses are equally divided among these owners. Partners are personally liable for all
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business debts and obligations, including court judgments. A partnership is not a separate
tax entity from its owners. This means the partnership itself does not pay any income taxes
on profits. Business income simply "passes through" the business to the partners, who
report their share of profits (or losses) on their individual income tax returns.


A corporation chartered by the state in which it is headquartered is considered by law to

be a unique entity, separate and apart from those who own it. A corporation can be taxed,
it can be sued, and it can enter into contractual agreements. The owners of a corporation
are its shareholders. The shareholders elect a board of directors to oversee the major
policies and decisions. the corporation has life of its own and does not dissolve when
ownership changes.

Public Limited Company

The public limited companies are a type of business ownership that has very little
amount of liability. These companies have a lot of shareholders. A Company owned by
shareholders. Public companies are strictly regulated, and are required by law to publish
their complete and true financial position so that investors can determine the true worth of
its shares.

Private Limited Company

A Company owned by shareholders. A limited number of shares are issued, these

are owned by family and friends of the business. The business has limited liability. Private
limited companies are mainly small or medium sized business enterprises.

They are normally owned by a particular family or by a small group of

businessmen and the ownership rights are divided among these owners. All the business
decisions are subjected to the approval of all these owners or at least the majority of these


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Shareholders are only responsible for the company’s debts up to the value of their
shareholding. The LLC is a relatively new type of hybrid business structure that is now
permissible in most states. It is designed to provide the limited liability features of a
corporation and the tax efficiencies and operational flexibility of a partnership.


A legal obligation on the owners of the business to pay all debts of the business.
Even their personal possessions may be claimed. Unlimited liability is a reference to the
level of responsibility held by the owner or an investor in relation to the function of a
business operation. When the liability is unlimited, there is a chance that the personal
assets of the principal parties can be drawn upon to settle debts or claims against the
business. This means that owners and investors involved with a limited liability company
can easily stand to lose everything in the event of a corporate failure.


Franchise is one of the newest forms of business ownership. It is very much in

vogue nowadays, especially in the United States of America. In case of a franchise, the
owner gets the right to market and sell the products of another business entity that has
already established itself in the market.

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The mission is the broadest statement of what an organization wants to achieve on an

on-going basis. It provides a vision of what the organization is trying to achieve. The
mission is the foundation and direction upon which all subsequent definitions are based.
To define the mission, the organization must answer the following questions:

• Why does the organization exist? What is its purpose?

• What is its scope of operations?

• What unique characteristics does the organization possess?

• Who are the organization’s clients or customers?


It describes an ideal future. Describes the path that the Company will take in the
coming years. It concentrates on the future. It is a source of inspiration. It provides clear
decision-making criteria.


A goal describes a high-level target state that an organization desires to achieve over the
long-term (three to five years). Objectives are more specific statements that describe what the
organization wants to accomplish in the short-term (twelve months or less). The successful
completion of short-term objectives should contribute to the achievement of long-term goals.

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A goal or objective is a projected state of affairs that a person or a system plans or intends
to achieve a personal or organizational desired end-point in some sort of assumed development.
Many people endeavor to reach goals within a finite time by setting deadlines.

Formal and informal framework of policies and rules, within which an organization
arranges its lines of authority and communications, and allocates rights and duties.
Organizational structure determines the manner and extent to which roles, power, and
responsibilities are delegated, controlled, and coordinated, and how information flows
between levels of management. This structure depends entirely on the organization's
objectives and the strategy chosen to achieve them. In a centralized structure, the decision
making power is concentrated in the top layer of the management and tight control is
exercised over departments and divisions. In a decentralized structure, the decision
making power is distributed and the departments and divisions have varying degrees of
autonomy. An organization chart illustrates the organizational structure

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Every organization to be effective must have an organizational structure. But what is an
organizational structure? It is the form of structure that determines the hierarchy and the
reporting structure in the organization. It is also called organizational chart. There are
different types of organization structures that companies follow depending on a variety of
things; it can be based on geographical regions, products or hierarchy. To put it simply an
organizational structure is a plan that shows the organization of work and the systematic
arrangement of work.

Types of Organizational Structures

There are different types of organizational structures and a company should choose the
one that best suits their needs.

Traditional Structures

These are the structures that are based on functional division and departments. These are
the kind of structures that follow the organization’s rules and procedures to the T. they are
characterized by having precise authority lines for all levels in the management. Under
types of structures under traditional structures are:

• Line Structure

this is the kind of structure that has a very specific line of command. The
approvals and orders in this kind of structure come from top to bottom in a line. Hence
the name line structure. This kind of structure is suitable for smaller organizations like
small accounting firms and law offices. This is the sort of structure that allows for easy
decision making, and also very informal in nature. They have fewer departments,
which makes the entire organization a very decentralized one.

• Line and Staff Structure

though line structure is suitable for most organizations, especially small ones, it is
not effective for larger companies. This is where the line and staff organizational
structure comes into play. Line and structure combines the line structure where
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information and approvals come from top to bottom, with staff departments for
support and specialization. Line and staff organizational structures are more
centralized. Managers of line and staff have authority over their subordinates, but staff
managers have no authority over line managers and their subordinates. The decision
making process becomes slower in this type of organizational structure because of the
layers and guidelines that are typical to it, and lets not forget the formality involved.

• Functional structure

this kind of organizational structure classifies people according to the function they
perform in their professional life or according to the functions performed by them in the
organization. The organization chart for a functional based organization consists of
Vice President, Sales department, Customer Service Department, Engineering or
production department, accounting department and Administrative department.

• Divisional Structures

This is the kind of structure that is based on the different divisions in the organization.
These structures can be further divided into:

• Product structure – a product structure is based on organizing employees and work

on the basis of the different types of products. If the company produces three
different types of products, they will have three different divisions for these
• Market Structure – market structure is used to group employees on the basis of
specific market the company sells in. a company could have 3 different markets
they use and according to this structure, each would be a separate division in the
• Geographic structure – large organizations have offices at different place, for
example there could be a north zone, south zone, west and east zone. The
organizational structure would then follow a zonal region structure.
• Matrix Structures

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This is a structure, which is a combination of function, and product structures. This

combines both the best of both worlds to make an efficient organizational structure. This
structure is the most complex organizational structure.
It is important to find an organizational structure that works best for the organization, as
the wrong set up could hamper proper functioning in the organization.

Functional patterns

People :

People are very important aspect for any organization. An organizations employee can be
termed as people; a customer can also be termed as people for an organization. Both are
important in terms of production, marketing and sales

Policies and rules:

Policies are principles, rules, and guidelines formulated or adopted by an organization

to reach its long-term goals. They are designed to influence and determine all major
decisions and actions, and all activities take place within the boundaries set by them.
Procedures are the specific methods employed to express policies in action in day-to-day
operations of the organization. Together, policies and procedures ensure that a point of
view held by the governing body of an organization is translated into steps that result in
an outcome compatible with that view.


Systems thinking are, simply, a better way to make the work work. It is fundamentally
different from ‘command and control’ thinking.

These tactics provide a good start to understanding the differences between command and
control and systems thinking - how the former leads to sub-optimization and how the latter
leads to improvement.

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A firm's strengths are its resources and capabilities that can be used as a basis for
developing a competitive advantage. Examples of such strengths include:

• Cost advantage
• Effective communication
• High R&D
• Innovation
• Online growth
• Loyal customers
• Market share leadership
• Strong management team
• Strong brand equity
• Strong financial position
• Supply chain
• Pricing
• Reputation management
• Unique products


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The absence of certain strengths may be viewed as a weakness. For example, each of the
following may be considered weaknesses:

• Bad communication
• Diseconomies to scale
• Over leveraged financial position
• Low R&D
• Low market share
• No online presence
• Not innovative
• Not diversified
• Poor supply chain
• k management team
• Weak real estate
• Weak, damaged brand
• Ubiquitiouegory, products, services
• CEO Mr. Lee

In some cases, a weakness may be the flip side of strength. Take the case in which a firm
has a large amount of manufacturing capacity. While this capacity may be considered a
strength that competitors do not share, it also may be a considered a weakness if the large
investment in manufacturing capacity prevents the firm from reacting quickly to changes
in the strategic environment.


The external environmental analysis may reveal certain new opportunities for profit and
growth. Some examples of such opportunities include:

• Asset leverage
• Emerging markets and expansion abroad
• Innovation
• Online
• Product and services expansion

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Changes in the external environmental also may present threats to the firm. Some
examples of such threats include:

• Competition
• Cheaper technology
• Economic slowdown
• External changes (government, politics, taxes, etc)
• Lower cost competitors or imports
• Maturing categories, products, or services
• Price wars
• Product substitution

The Origins of the Yamaha Brand

The YAMAHA brand has its roots in the name of our founder, Torakusu Yamaha.
Familiar with western science and technology from his youth, Yamaha initially found
employment repairing medical equipment. This led to a request to repair a organ, a project
that resulted in the birth of the Yamaha brand. Confident of the potential of his business,
Yamaha struggled against great odds to establish Yamaha Organ Works. Entrepreneurial
spirit, far-sightedness, and determination to overcome difficulties fueled his passion to
succeed. This same spirit formed the foundation of the Yamaha brand, and is a vital legacy
of Yamaha Corporation today.
Ever since its founding as a motorcycle manufacturer on 1st July, 1955, Yamaha
Motor Company has worked to build its products which stand among the very best in the
world through its constant pursuit of quality; and at the same time, through these products,
it has sought to contribute to the quality of life of people all over the world. Following on
the success of our Motorcycles, Yamaha being manufacturing Powerboats and out boards
motors in 1960. Since then, engine and FRP technology were used as a base to actively
diversify and globalize the area of business. Today our fields of influence extend from the
land to the sea and even into the skies as our business divisions have grown Motorcycles
operations to include Marine operations, Power Product operations, Automotive
operations, Intelligent Machinery operations, Aeronautic operations and PAS operations.
Founded : July1, 1955

Capital : 23.2 billion yen (as of March 31, 2001)

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Employees : 10,443 (as of March 31, 2001)

Head office : 2500 Shingai,Iwata,Shizoka,Japan

Chairman of the Board of Directors : Mr. T Hasegawa

President and Representative Director : Mr. T Hasegawa

Vice President and Representative Director : Mr. R Yamashita

History of yamaha

Our origins, our legacy

Decades of passion for excellence

Yamaha motor company was founded as a motorcycle manufacturer on july 1, 1955. From
the very beginning

Yamaha Motor Company was founded as a motorcycle manufacturer on July 1, 1955.

From the very beginning, we have worked to build products that stand out for their quality
wherever they are sold. And through these same products, we have committed ourselves to
contributing to a higher quality of life for people all over the world.

Over the years, we have diversified into a number of areas of business. In 1960, we began
manufacturing powerboats and outboard motors.

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Subsequently, we have made our proprietary engine and fiberglass-reinforced plastic

(FRP) technologies the basis of our strategy for expansion and diversification. Today,
Yamaha Motor products extend from land to sea and even into the skies, with
manufacturing and business operations that include everything from motorcycles, PAS
electro-hybrid bikes, marine and power products to automotive engines, "intelligent"
machinery and even unmanned helicopters.

Type of organization
Yamaha follows Project of Matrix organization. Project matrix is the combination
of the Project organization and the Matrix organization. The Matrix organization is the
combination of the Project organization and the Functional organization. This is one of the
latest types of organizational design. It has been developed to establish flexible structure
to achieve series of project objectives. Matrix Organization, also known as grid, is an
answer to the growing size and complexity of the undertaking, which require an
organization structure more flexible.

Authority flows vertically in functional departments. They focus on project teams,

bringing skilled individuals together from different parts of the organization. Individuals
were made responsible both to their line manager and the project manager involved. A
matrix organization structure is an organizational reporting structure commonly used for
project-based teams.

Since Yamaha Motors LTD is one of the most flexible organization matrix
organization is best suited to Yamaha Motors LTD.

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Ownership: Yamaha is a publicly owned company traded on the Tokyo Stock Exchange.

Officers: Seisuke Ueshima, Chmn.; Kazukiyo Ishimura, Pres.

Employees: 9,324

Principal Subsidiary Companies: Yamaha has numerous operating subsidiaries,

including Yamaha of America, which was founded in 1960. It is one-third owner of
Yamaha Motor Corporation, which makes motorcycles, snow mobiles, golf carts, and
industrial robots.

Yamaha made its initial foray into India in 1985. Subsequently, it entered into a
50:50 joint-venture with the Escorts Group in 1996. At the time of 50:50 joint venture of
Escorts Limited with YMC, Japan a new company Escorts Yamaha Motor Limited was
formed which came up with a new logo representing both the companies. Again in the
year 2000, equity of the company has changed resulting Yamaha74% and Escorts26%,
thus changing the logo and the company’s name to YMEL. However, in August 2001,
Yamaha acquired its remaining stake becoming a 100% subsidiary of Yamaha Motor Co.,
Ltd, Japan (YMC). In 2008, Mitsui & Co., Ltd. entered into an agreement with YMC to
become a joint-investor in the motorcycle manufacturing company "India Yamaha Motor
Private Limited (IYM)".

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Now, the company being 100% subsidiary holder is known as the Yamaha Motor India
(Pvt.) Limited. The logo of YMC has been adopted by YMI.

IYM operates from its state-of-the-art manufacturing units at Surajpur in Uttar Pradesh
and Faridabad in Haryana and produces motorcycles for both domestic and export
markets. With a strong workforce of more than 2,000 employees, IYM is highly customer-
driven and has a countrywide network of over 400 dealers.



We will establish YAMAHA as the "exclusive & trusted brand" of customers by "creating
Kando" (touching their hearts) - the first time and every time with world class products & services
delivered by people having "passion for customers".

Corporate Mission

"Creating “Kando” - Touching Your Heart" we are striving to touch every Heart across
the length and breadth of India

“Kando” is a Japanese word for expressing feelings of excitement and deep satisfaction


These are the means to attain our corporate mission and the cornerstone of our philosophy
Surpassing Customer Expectations

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We are aware of our customers' evolving needs and provide them with quality products
and services of exceptional value that surpasses their expectations.

Establishing a Corporate environment that fosters self-esteem

We believe in nurturing and empowering our employees to the fullest. Whilst cultivating
our employees creativity and all round abilities, we have also established an equitable
system of evaluation and rewards to encourage our people to strive towards newer

Fulfilling social responsibilities

As a good corporate citizen, we continually strive towards creating a better social as well
as natural environment. We will work locally to better the social
environment, and think….

Goal of Yamaha

Since Yamaha follows Japanese culture in their business they have a goal of
capturing 14% of market share by 2012. But the long term goal of Yamaha is to create
kando among their customers with unmatchable goods and service.

Kando is a Japanese word for the simultaneous feeling of deep satisfaction and
intense excitement that people experience when they encounter something of exceptional

Yamaha’s goal has always been to provide products that empower each and
every customer and make their lives more fulfilling by offering greater speed, greater
mobility and greater potential. Said in another way, our aim is to bring people greater joy,
happiness and create Kando* in their lives.

After The Separation Main focus of Yamaha has been to Capture the Indian
Market Through its Product Which are Best In terms Of style & Design and is trying to
achieve the target of 14% which it has laid down for the coming years its Recent
Launched Bike

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Motorcycle Headquarters

In order to further strengthen competitiveness, the previous organizational system, which

classified internal functions by business segment (such as the motorcycle business and the
commuter vehicle business), has been revamped. The newly adopted system will
concentrate and integrate the functions into eight organizations -- Quality Assurance
Operations, Planning Operations, Marketing Operations, Sales Operations, Product
Development Operations, Engineering Operations, SyS Operations and Procurement

(1) To further improve product quality, the Quality Assurance Division will be upgraded and
named Quality Assurance Operations. Under the Quality Assurance Operations umbrella, a
Quality Assurance Division will be established and the current Quality Innovation Division will
be transferred from Engineering Operations.

(2) The sales functions of MC Business Operations, CV Business Operations and China Business
Operations will be integrated into the newly established Sales Operations. Three divisions will
be organized within Sales Operations -- the 1st Sales Division, 2nd Sales Division and 3rd Sales
Division -- while the current Service Division will be transferred from Marketing Operations.

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(3) The Engineering Divisions in MC Business Operations and CV Business Operations will be
integrated into the newly established Product Development Operations, which will have several
constituent groups: the 1st Body Development Division, 2nd Body Development Division,
Engine Development Division, Product Testing Division and EV Engineering Division. The
current Component Development Division will be transferred from Engineering Operations.

(4) Pursuant to the organizational changes described in (2) and (3) above, MC Business Operations,
CV Business Operations and China Business Operations will be dissolved.

(5) The Overseas Production Division in CV Business Operations will be transferred to SyS


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Functional patterns

YAMAHA always put people (Employees) at par with customer. They focus on our two
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key stakeholders, clients and employees is unwavering. yamaha treats their associates
with warmth, dignity and respect. It’s our endeavor to provide an atmosphere of security
and mutual trust amongst employees. With kando Yamaha makes sure they also take
proper care of their customer.

Yamaha has quality processes geared towards meeting the delivery criteria with an
emphasis for providing reliable, robust solutions & services to its clients. This ensures
deliveries are made on time - every time to help meet the scheduled time and cost
Yamaha’s Quality Management System (QMS) for managing software development
ensures a high level of quality in all the software developed within the company. It also
addresses special requirements for specific products and clients.

Policies and Rules


8.00a.m. – 4:30p.m. - 1st Shift

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4:30p.m. – 1:00a.m. - 2nd Shift

1.00a.m. – 8.00a.m. - 3rd Shift


Casual Leave (CL) : 7/year

Sick Leave (SL) : 7/year

Earned Leave (EL) : 30/year


Probation period : 6 months


Supervisor : 1 month

Manager : 2 months

DGM & Above : 2 months


All : 58 yrs

Directors : 60 yrs


Lets do the SWOT analysis for two wheeler market first then we will do the swot
for Yamaha motors in India

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• Established brands, Strong Brand

• Fuel efficient
• Style statement • Extremely price sensitive
• Convenient in heavy traffic • Short PLC
• Cheap and affordable • High R and D costs
• Easy and cheap finance availability
• Patents
• Good reputation among customers

Opportunities Threats

• Growing premium segment • The Rs.1 Lakh car

• Increasing dispensable income • Cut throat competition
• Environmental concerns • Increasing number of players in the
• Exports increasing market
• Rising raw material costs
• Very strong demand in the 100cc.
• Increasing rates of interest on finance
segment dominated by limited


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• Size and scale of parent company.
• Effective Advertising Capability • Small showrooms.

• Committed and dedicated staff. • Not much emphasis on aggressive

• High emphasis on R and D.
• Weak product diversity.
• Experience in the market.
• Established brand.
• Established market channel.

• Power, Speed & Acceleration

Opportunities Threats

• Growing premium segment. • Cut throat competition

• Global expansion into the Caribbean & • Increasing number of players in the
Central America. market
• Expansion of target market (include • Rising raw material costs
women). • Increasing rates of interest on finance
• Increasing dispensable income.
• 1st mover advantage.


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We found that Yamaha has adopted pretty well to the market situation by
implementing latest organizational functions and has also altered its ownership as in when
required. Yamaha gives equal importance to its people and the customer as it is very
important for any organization to grow in the world economy. Yamaha has a blend of
Indian management culture and Japanese management culture which they implement in
their management strategies.

Yamaha has a solid management as they are one of the best executioners’ in the


It can also be said that Yamaha has taken a path where “people” are the fundamental
element and our product creation and other corporate activities have always been aimed at
touching people’s hearts. Their goal has always been to provide products that empower
each and every customer and make their lives more fulfilling by offering greater speed,
greater mobility and greater potential. Said in another way, their aim is to bring people
greater joy, happiness and create Kando* in their lives and also to achieve their goals .As
a company that makes the world its field and offers products for the land, the water, the
snowfields and the sky.

Yamaha Motor strives to be a company that “offers new excitement and a more
fulfilling life for people all over the world” and to use our ingenuity and passion to realize
peoples’ dreams and always be the ones they look to for “the next Kando.”

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Million yen
Dec. 2005 Dec. 2006 Dec. 2007 Dec. 2008 Dec. 2009

Current Assets

Cash and deposits in bank 38,809 79,299 110,702 133,906 137,328

Trade notes and accounts

206,213 223,082 243,482 195,481 201,684
Inventories 251,227 297,853 325,173 318,897 -
Merchandized and finished
- - - - 147,380
Work-in-process - - - - 42,746

Raw materials and supplies - - - - 33,401

Other 58,673 70,785 73,740 68,732 58,259

Total current assets 554,924 671,021 753,098 717,018 620,800

Fixed assets
Tangible fixed assets 323,846 361,837 384,601 355,596 275,556
Intangible fixed assets 3,075 4,281 5,612 5,971 4,802
Total investments and
76,630 91,548 115,117 84,587 85,917
other assets
Total fixed assets 403,552 457,667 505,331 446,154 366,276

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Total assets 958,476 1,128,688 1,258,430 1,163,173 987,077

Current liabilities

Notes and accounts payable 176,000 187,419 196,118 158,760 110,147

Short-term loans 100,097 127,341 148,819 228,336 87,574

Current portion of long-term

20,885 8,568 6,881 22,435 30,470

Current portion of bonds 5,000 - - 3 -

Commercial Paper 6,991 15,000 35,000 - -

Other 164,246 180,195 189,589 157,952 151,506

Total current liabilities 473,221 518,525 576,409 567,488 379,698

Long-term liabilities

Bonds 295 63 3 - -

Long-term debt 20,747 44,235 39,051 98,428 281,898

Other 55,587 64,809 73,745 68,773 76,213

Total long-term liabilities 76,629 109,108 112,799 167,201 358,111

Total liabilities 549,850 627,633 689,209 734,690 737,810

Minority Interest 24,730 - - - -


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Owners' equity

Common Stock , with no par

47,879 48,168 48,300 48,342 48,342

Capital surplus 60,361 60,651 60,784 60,824 60,824

Other 275,655 343,371 401,785 391,844 180,202

Total owners' equity - 452,190 510,870 501,011 289,369

Valuation and translation

- 18,442 19,353 -106,443 -76,971
adjustment Note 2)

Share Warrants - - - 30 72

Minority Interest Note 1) - 30,421 38,997 33,885 36,796

Total shareholder's equity 383,895 501,054 569,221 428,483 249,266

Total liabilities and

958,476 1,128,688 1,258,430 1,163,173 987,077
shareholder's equity

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