CHAPTER:-1

INTRODUCTION
Customers in 1.1 INTRODUCTION OF THE COMPANY

1. INTRODUCTION

During summer internships, students can enjoy a professional

environment by getting involved in projects and goals related to a
term. This is an opportunity to identify the weaknesses and strengths
of each other in corporate work before being placed.

According to the title of my proj

the monofilament ect "Pricing Strategies of" AMAR DAIRY MILK ",
during my first meeting with MR. ASHWIN N. SAVALIYA said that
he used various pricing policies for different products. The company
is known for its great experience in superior quality products.
industries belong to different financial contexts. I studied the pricing
strategy used to build customer loyalty. Companies change their
prices to retain existing customers. Pricing therefore refers to the
process of pricing a product or service and, more than any other
element of the marketing mix, will have the greatest impact on the
 amount of profits made. The price of any product or service will
inevitably fall somewhere

between what is too low to produce a profit and what is too high to generate
a demand.

The strategy is the set of actions through which an organization by

Accident or Design develops resources and uses them to provide services or
products in a way that its users find valuable, while respecting financial and
other objectives, as well as constraints imposed by key stakeholders. The
most successful strategies give an organization unique or at least distinctive
properties, as well as the means to renew its competitive advantage as the
environment changes.
 1. STARATERGY RATES

A company must set a price for the first time when

developing a new product, when it introduces its
standard product into a new distribution channel or
in a new geographical area and when it submits
offers for new work.

The company must decide where to position its

product on quality and price. Most marketers have
between 3 and 5 price levels. Consumers often
rank brands based on price levels in a category. In
each level, there is a range of acceptable prices,
called price marks. The price mark provides
managers with an indication of the flexibility and
scale they can take to price their brands at a given
price.
2. PRICE SELECTION PROCESS
The company has to take into account many factors to
define its pricing policy. Here is a six-step procedure
for setting the pricing policy:
 1. Selection of the price target
2. Determining the demand
3. Cost estimation
4. Analyze competitors, costs, prices, offers
5. Selecting a pricing mode
6. Selection of the final price
Step 1: Selecting the pricing objective
 Price Sensitivity:

The company first decides where it wants to position

its market offering. The clearer a firm’s objectives, the
easier it is to set price. A company can pursue any of
five major objectives through pricing:

Survival
Maximum current profit
Maximum market share
Maximum market skimming
Product-quality leadership
Each price will lead to a different level of demand and
therefore have a different impact in a company’s
marketing objectives. The between alternative prices and
the resultingEstimating Demand Curves:
2. Elasticity of the price request:
The demand will probably be less elastic under the
following conditions;
There are few or no substitutes or following conditions;
Buyers do not easily notice a higher price
Buyers are slow to change their buying habits
Buyers think higher prices are justified

Step 3: Cost Estimate

Type of cost and production levels
Accumulated production
Target cost

Step 4: Competitor Analysis, Costs, Prices and Offers

In the range of possible prices determined by market
demand and company costs, the company must take into
 account the costs, prices and possible reactions of the
competitors. The company must first consider the price
of the nearest competitor.
Step 5: Select a Pricing Mode
Given the 3Cs, the timing of customer demand, the
cost function and competitors' prices; the company is now
ready to choose a price. Costs set the price. Competitor
prices and the price of substitutes are a point of orientation.
Evaluations of the customer's unique characteristics set the
ceiling price.
There are six methods of pricing.
1. Markup price
2. Tarification at the target
3. Pricing of perceived value
4. Value price
5. Going-rat
6. Bid type price
Step 6: Selection of the final price
Pricing methods restrict the range in which the
company must determine its final price. When selecting the
price, the company must take into account additional
factors, including the impact of other marketing activities,
pricing policies of the company, the pricing of the sharing of
the gain and price on other parities. .
 Product mix price:

The pricing logic must be changed when the product

is part of a product mix. Pricing is difficult because different
products have a demand, interrelated costs and are subject to
different degrees of competition. We can distinguish six
situations, namely the pricing of the product range, the
pricing of derivatives and the pricing of the product
grouping.
1. Products-bundling pricing:

Sellers often bundle products and features. Pure bundling

occurs when a firm only offers its products as a bundle
(tied-in sales). In mixed-bundling, the seller offers goods
both individually and in bundles. When offering a mixed
bundle, the seller normally charges less for the bundle
than if the items were purchased separately. Some
customers will went less than the whole bundle.

1. Price of the product range:

This is the best of the personal business. The seller
must establish the perceived differences in quality.

2. Optional pricing of features:

 1)
Many companies offer optional products, features,
services, and their prices. Companies must choose
the elements to be included in the standard price and
those to offer as an option.

3. Pricing of captive products:

certain products for the sale of auxiliary or captive

products. The price of the captive product in the
aftermarket is too risky.

4. Pricing in two parts:

Service companies have often switched between two

parties with a fixed price and a variable usage fee.

5. Pricing by-products:

The production of some products often instead of by-

products. If by-products are a value for a group of
customers, their price should be evaluated based on their
price.
INDUSTRY OVERVIE

1.2.1 OVERVIEW OF INDIAN DARIRY SECTOR

The world is the largest dairy product in the world. The

value of production reached 1.179 billion rupees (in
2004-2005), which is one-fifth of the world's cattle
population. Dairy animals (45% domestic cattle, 55%
buffaloes and 10% cross cows), ultra low, around 1000
kg / year. Great no. Low genetic power, malnutrition and
lack of services are the main factors of low productivity.
There are different developed regions, average, lower
than average.

HEIGHLIGHTS
Milk production increases by 3% p.a.
The availability of milk per capita is not more than 1.5%
Ghee fat increases by 9%
Butter and cheese consumption increases by 10%
 Demand for dairy products will soon exceed supply
India will have to support exports of dairy products
Net import of dairy products
1.2.2 HISTORY OF INDIAN DAIRY INDUSTRY

In 1939 Sardar Vallabhbhai Patel met Anand farmers and told

them that trade in dairy products was necessary. At that time,
a person named Tribhvandas Patel stepped forward to take the
lead. There is only milk "milk" which belongs to the United
Kingdom and is used to give milk for milk. In order to
support Indian farmers, "AMUL DAIRY" was established in
1946. Kurian was appointed to this dairy. Dr. Kurian with
Tribhuvandas Patel took the lead. Indian becomes
independent in 1947. Meanwhile, dairy AMUL. Dr. Kurian
and M. dayala have discovered the technique of making milk
from buffalo milk. This site was created and was created and
created. The NDDB was created in Anand. The NDDB
launched Operation 1 for all dairies in 1971-72, in 1977, the
start of operations2. The flood-3 transport has begun. Farmers
here have been sensitized to their rights and responsibilities.
Low-cost milk productivity and cooperation of development
programs have been launched.

In 1998-99, two million tons of milk were produced

worldwide. Some more than 68 million Americans then it was
called "white revolution"? Dr. Vergesekurian is known as the
father of the revolutionary revolution in India.

1.2.3. INDIAN DAIRY INDUSTRY SCENARIO

13% of the total production of the milk is contributed by India.
The large vegetarian sector of the India feed upon the dairy
products of India.
This part of the industry has helped the economy in better
possible ways. Some of the glaring problems of the economy
are dealt with much ease. The unemployment and the rates of
poverty have diminished as this sector has provided sample
scope to these fields. The industry has seen rapid growth in
recent years. the best possible technologies are undertaken and
the resources are used in fullest extent so that the sector reaches
the booming phase.
India houses the largest in the world. 50% percent of the
buffalo and 20% the cattle are present in India in respect to
world. Moreover the milk products of India are highly
acclaimed in different parts of the world. It ranks first in
producing dairy products in India. Some of the past reports of
the past year found that when the production of milk was 72
million then the demand reached 80milline. So the country
under the regulatory bodies have gone far to increase the
production of milk and other milk products to higher extent.
The present production of milk as marked in the year 2009-
2010 is 112mt which follows a growth rate of 4%. But the
recent research confirmed that by 2012-21 the growth rate must
increase to 5.5% where the quantity produces should be 180mt
this is only due to higher the consumption rate. More over the
country is stressing on the milk product industries to increase
their production rate, all the public and the private sectors of
milk production are taken into grant.
The per capita availability of milk is 253grams/day. The
government is trying hard to increase these rates too.

1.2.4 INDUSTRY ANALYSIS

A. Analysis of the Porters Five-Power Model
The most influential analytical modal for evaluating the
Michael Porter's Five Forces Model, described below, is the
type of competition in an industry:
Porter explains that five forces determine the attractiveness of
the industry and its long-term profitability. These five
"competitive forces" are
- the threat of entry of new competitors (new entrants)
- The threat of substitutes
- The bargaining power of buyers
- The bargaining power of suppliers
- The degree of rivalry between existing competitors
The threat of new participants
New entrants in a sector can increase the level of competition,
reducing its attractiveness. The threat of new entrants largely
depends on barriers to entry. The main barriers to entry
include:
- Economy of scale
- capital requirements \ investment
- Access to distribution channels in the industry.
Threats of substitutes
The presence of substitute products can reduce the attractiveness and
profitability of the industry as it limits price levels. The threat of substitutes
depends on:
- the willingness of buyers to substitute
- the relative price and performance of substitutes
- The costs of switching to substitutes

Bargaining power of suppliers

Suppliers are companies that supply materials and other products to the
sector. The cost of items purchased from suppliers (raw materials,
components, etc.) can have a significant impact on the profitability of a
company. If suppliers have high bargaining power over a company, its
business sector is theoretically less attractive. The bargaining power of
suppliers will be high when:

- There are many buyers and few dominant suppliers.

- There are undifferentiated products of great value.
- Supplier pressure for future integration into the industry.
1Bargaining power of buyers
Buyers are the people\organization who create demand in an
industry the bargaining power of buyers is greater when
-there are few prevailing buyers and many sellers in the
industry
-products are standurdise
-suppliers do not pressure to integrate forward into the
buyers industry.

Intensity of rivalry
The intensity of rivalry between compititors in an industry
will depend on:
-the structure of competition
-the structure of industry cost
-degree of differentiation
-strategic objective
-exit barriers

(1)pioneering stage:-
during this stage, the technology and or the product are
relatively new.
As a result, there Is a keen, and often and chaotic,
competition. Here, amar dairy was very poor technology in
starting time. But, now, its has a best technology provide ther
eemployee, customer.

(2) rapid growth stage:-

Once the period of chaotic developments is over, the rapid
growth stage arrives. Amar dairy has days by day
performance and growh of capital was increase.

(3) maturity and stabilization stage:-

After enjoying an above average rate of growth during the
rapid growth, the industry enter the maturity and
stabilization.
(4) Decline stage:-
With the station of the demand, encroachment of new
products, and the changes in consumer preference, the
industry eventually enters the decline stage, relative to the
economic as a whole. As per my opinion Amar dairy is
maturity and stabilization stage. Because this stage industry is
more or less fully developed their growth.

1.2.5 MAJOR PLAYERS

 [TABLE NO.1.2.5 Market Players]
No. Particular Location

1 Gopi Milk Product Pune

2 New surat dairy Vijapur
3 Sarita milk products Kadi
4 Sardar dairy Mehsana
5 Vimal dairy Mehsana
6 Royal dairy Gandhinagar
7 Satyam dairy Gandhinagar
8 Mother Dairy Gandhinagar
9 Dudhsagar Dairy Gandhinagar
10 Sagar Dairy Mehsana

1.3 COMPANY OVERVIEW

1.3.1 HISTORY OF AMAR DAIRY

Saurashtra region of gujrat state is very rich in aminal

population. Amongst animals, milch cattle are also rich in its
milk and its quality. Cows and buffalos are major milch cattle
besides goat,sheep,etc. amreli distict is considered as rich
milch cattle district. The milk producer are not organized and
they have to sale milk to the traders at their price. As the milk
is very highly perishable product, the milk producers have to
sell milk at the(terms and price of the product). The milk
producers were not getting remunerative price of their raw
milk.

shri dilipbhai sanghani, minister of gujrat state and MLA from

amreli constituency, soon realized to extend help to the milk
producer and tried to organize the milk producer of amreli
district.

Meanwhile, national dairy development board has called

meeting some time back of co-operative leaders of saurastra
region. The NDDB has proposed one milk co-operative union
of saurastra region. Since, the NDDB has formed district milk
co-operative union in other part of the gujrat, the leader of
sauratsra region emphasized to form a separate district milk
co-operative union for each district of saurastra region.
 In view of the scenario of the district milk co-operative union
of saurastra region, shri dilipbhai sanghani took a lead and
organized meeting in various talukas, villages and got
registered village milk co-operative societies also. The
response of the milk producers was very favorable.

In view of above, it has been decided to from Amreli district

milk producer co-operative union and shri dilipbhai sanghani
has been elected as a chief promoter for the proposed union.
The district Registrar, co-operative societies, amreli have
granted the registration to the proposed union.

Unique & ideal:

Smallest milk union is gujarat state; even though rapidly
progress in comparisons of other district milk union of the
state.
Aggressiveness:
- Cow milk in pouch pack marketed first in india, launch in
market by the honorable governor of gujarat state.
- Cow ghee in pouch pack marketed first in india, launch in
market by the honorable governor of gujarat state to protect
the cow gender as per the Indian culture.
 Steering:
- Name of the managing director: Dr. R.S.PATEL
- Name of the chairman : Mr. DILIP SANGHANI

1.3.2. BOARD OF DIRECTOR

[Table no.1.3.2 board of Director]

No. Name Designation

1 Mr. Aswin N. Savaliya Director
2 Mr. Dilip N. Sanghani Director
 3 Mr. Parshotan K. Rupala Director
4 Mr. Arun M. Patel Director
5 Mr. Mavji N. Gol Director
6 Mr. Dad A. Varu Director
7 Mr. Chandu B. Ramani Director
8 Mr. Kanti K. Ghandiya Director
9 Mr. Popat M. Savaliya Director
10 Mr. Vinu B. Kakadiya Director
11 Miss. Aruna M. Savaliya Director
12 Mrs. Jaya V. Ramani Director
13 Mrs. Bhanu J. Buha Director
14 Miss. Bhavna M. Gondaliya Director
15 Mr. R.S. Patel Director

1.3.2 COMPANY PROFILE

[Table no. 1.3.3. company profile]

Name of unit Amreli district co-operative milk producer union

limited
Address Amar tribheto, dhari road, amreli.365601
Establish year 2005
Type of unit Co-operative
Production start 2006
year
Chairman Mr.dilip sanghani
Mr. mukesh sanghani
Managing Dr. R.S. patel
director
Employees Only 77 employees
Products Milk,butter,ghee,butter milk,curds
Sources of raw Milk producers of 430 village societies of the
milk district
Bankers Amreli district co-op. bank ltd.
Accounting year April to March

1.3.4.MISSION,VISION

MISSION
 The main goal of amar dairy milk is to provide the best and
highest return to the milk producers of amreli district by the
use of latest technologies and strategies to give them the best.
Our milk producers and shareholder are the real owners of
this union and should be the price maker, not price taker

We will deliver our vision by,

- Increasing cooperation
- Being an organization with people at the heart of everything
we do.
- Inviting all producers to be member, giving them the real
sense of ownership, freedom and the reason and
encouragement to be co-operative to sharp the future of the
society as well as their own future.
- Making our business satisfaction with best quality of product.

Vision

- the main vision of amar dairy milk is being the best milk
producing unit in dairy product and also…
- to become the more effective in supply of the products that
dairy produced.
-

1.3.5 SWOT ANALYSIS

 The classical tool to assess the industry environment is
through SWOT analysis. This identification strength,
weaknesses, opportunities, and threats. The SWOT
analysis of firm is as follows:
STRENGHTH
1. Easy transportation facilities due to road touches area.
2. Qualities product.
3. Most of customer are fully satisfied with the amar dairy.

WEAKNESS

1. High chances of power cut.

2. Lacking of knowledge in worker.

OPPORTUNITIES
1. Scope for growth In the rural market
2. There is very large surrounding amar dairy, so they will
easily expand its plants.
3. The dairy has opportunity to grab the market in amreli as
well as near area.
 THREATS
1. Government new taxation policy.
2. Changes in technology will effect on firm as a small scale
sector.
3. Fear of entering a new competitor.

1.3.6. BCG Matrix

BCG matrix is based o product life cycle. The four segment of
the BCG matrix placing product in the BCG matrix provided
four categories in a portfolio of a dairy.

-STAR(high growth high market share)

Star are using large amount of cash. Star is leader in the
business there for they should also generate large amount of
cash.
-CASH COW(low growth high market share)
Profits and cash generation should be high because of the
growth investment they are the fundamental of the dairy.
-DOGS(low growth low market share)
Avoid and minimize the number of dogs in a dairy. Watch out
for expensive a rescue plans. Dogs must deliver cash otherwise
they must be liquidated.
-QUESTION MARK (high growth low market share)
Question mark have the worst cash characteristics of all,
because they have high cash demand and generate low returns
because of their low market share. If the market share remains
a changed question mark will simply absorb great amount of
cash.
As we see CASH(low growth high market share) position is
the best for the firm. For this here Amar Dairy Milk is at the
cash position. And at this growth level low and high market
share profit can generate easy to obtain cash. There for retained
and the investment n this firm should be decrease.

1.3.7. OVERVIEW OF DIFFERENT DEPARTMENTS

1. marketing department
Introduction
Amar dairy milk is producing consumer oriented products &
always busy in a satisfying consumer demand. According to
their will & wishes at a reasonable price rather than compititors
which are multinational Dairy but mostly id engaged in
maximizing their profits. Amar dairy milk has satisfied
consumer. Thus from discussion it can be proved that amar
dairy milk also accept modern marketing conspet to satisfy
their consumer through their best resources.

They every person of this department gives expected

performance to the dairy. The major principle is as below.

- Reasonable price of milk pouch

- Good quality of price
- Supply must be done as expected
- Using every techniques of marketing to infirm the customer

Organization structure

The amar dairy ilk has good marketing department. This

marketing manager controls the manager each performing a
particular element of marketing function. This process goes
on till we arrive at the level of salesman who really gets the
marketing function performed at operative level.

ORGANISATION CHART OF MARKETING

DEPARTMENT
 Marketing manager

deputy manager

senior supervisor

Supervisor

Assistance

Distribution channel
When the producer does not sell his goods to the final users and
between the producer & the end users, stands a set of
intermediaries performing a variety of function, these
intermediaries constitute a marketing channel. In the amreli
district co-operative milk producer agents are the part of
distribution channel. These milk agent gather the information
about the potential and current customers and they estimate the
demand of milk per person & the overall demand in the market.
They provide for the successive storage & movement of milk
from the union to the final customer. The milk agents distribute
the milk to the customer & collect money from them. Then
they have to deposit this amount at the collection office.

Amar dairy milk has a unique distribution channels to collect

the milk and maintain regular supply of these milk. Amar dairy
has a different milk collection supply of these milk. Amar dairy
milk has a different milk collection centers and offices for the
purpose of collecting milk. Amar dairy milk has a two chilling
center in amreli district. They located in gavadka village of
amreli.
The following are the major distribution channels of amar dairy
milk.

AMAR DAIRY
 GCMMF

DEALER

RETAILER

CONSUMER

2.PRODUCTION DEPARTMENT
Product line and product mix of amar dairy milk:
-Product mix: product milk is a combination of total product
lines within a company.
-Product line: the product line is a subset of the product mix.
The product line generally refers to a type of product within an
organization.
Amar dairy milk has a following product mix and product line:

Product mix:
Milk Ghee
Butter Butter milk

PRODUCTION PROCESS
Manufacturing process is most important factors of each and
every business. The amar dairy milk is producing milk product
dairy is use two types of producing method. One is milk and
secound is a butter milk means milk are their raw materials the
dairy produce product as the reguler and after the milk. First
the checking fat and after put the machinery. Amar dairy milk
is a consumer goods production sector. Milk is essential
ingredient in your life.
-MILK
Amar dairy produce milk and butter milk product, it gets raw
milk from the rural area from the farmers, after getting the milk
they put milk in to the production process.

MILK STRUCTURE
In the process of milk and butter milk product separate machine
is used after packing milk and buttermilk product they are kept
in cold storage.
The process of milk collection
Receive milk from member of co-operative society
Basically the dairy itself says that it is a joint effort of the milk
producers. There are 10 routs of milk producers. These routes
are covering almost all villages of milk producers. The dairy
only accept the milk from the producers who is its member in
co-operative society, like vitthalpur, gavadka, motadevaliya,
sajiyavadar, sarmbhada,jarkhiya, chapathal, junavaghaniya,
medi, vakiya these are the routs and every routs allotted
specific time for carrying down their milk to the dairy.
1) Milk tank

in the milk tank they storage the milk for the process. the milk
gets the steady temperature in the book before the process in
starts. Amar dairy milk has 14 huge tanks; in which 13 tanks
have a 30000 litters capacity. While remain 1 tank has a 20000
litters capacity.
 Taking general fat and SNF
The dairy do the fat and solid net fat (SNF) test for the
payment to co-operative members because as the fat and SNF
high the member get high amount of his milk.
There is certain standard are there for SNF and FAT they are.
- The milk of buffalo must contain 6% SNF and 9% FAT.
- The milk of cow must contain 8.5% SNF and 3.5% FAT

1) STANDARDIZATION

There are certain standards are set for the milk. Each standard
have own SNF and FAT. It is then decided that what should be
the price of the milk. There are four standards.

1)pasteurization

On the name of founder of this process, it is called

pasteurization. Louie paseur is the founder of this method. To
save the milk from the bacteria they boiled the milk on certain
temperature and quickly down the temperature.

- Temperature 73 C more.
- To boil milk about 30 saconds.
- To cold the milk about 0 to 5 C.
- The milk must be fresh about 45 hours

1) Packaging
For the packaging they use the machine of R.M.C packaging
system. In costs more then RS.15,00,000. The machine can fill
160 pouch of milkk In a minute. They are tenn machines in te
dairy for the packaging and the machine are fully automatic.
2) Dispatch
There are total 28 distributors in the district. From the
distributers 17 distributers are only in amreli city and rest of the
distributers are in the different TALUKA. The distributors
book their order before the evening of previous day, and then
they get the milk in next morning. Currently all of the
dispatching process is handling by federation of AMUL
dairy,Anand.

TOTAL PRODUCTION OF MILK & GHEE

Milk production-2.5 lakh liters
Ghee production-6 tone (6000 kg
 3.HUMAN RESOURCES DEPARTMENT
INTRODUCTION

In modern business organization the human resources

department is one of the most important parts of in any
business. Business enter price cannot exist without labor force
or employees. The success of any business enter price depend
upon the large scale extent on the quality of its human
resources department. The quality of any enter price today
mainly on the willingness and ability on its employees.

Human resources management is concern with the proper

Use of human force in thhe business because only raw material,
equipment or machinery cannot achieve the goal of business
and so the best utilizaton of human resources in the
organisation is to try achieve the objective of the business inn
effective way.

Amar dairy milk holds a personnal management department. It

arrange all personnel in such a way that the goals of both
organisation and individual are achieve within the given time
period. Personnel department in amar dairy milk work
smoothly, effectively and efficiently with sufficient labours.

HR PLANNING
Human resources planning is to be done by the foreman and
not by the worker. He would prepare the programmed
according to the plan. Such as employess selection,
recruitment, training, promotion, transfer, demotion,
retrenchment, post retirement functioned, the amar dairy milk
has a good planning procedure.
Environment Scanning.
- Oraganisation objectives & policies
- HR demand forecast
- HR supply forecast
- HR plan implementation
- Control & Evaluation

RECRUITMENT

Recruitment is nothing but theprocess of finding and getting

capable candidates and planning them at the right time, at the
right place, right job, recruiyment is the basic and primary for
the personal department.
 What is the qualification required whether skiiled or
unskilled laabour etc. all the inquiries are made speedy &
effctively so that the person chosen is prospective.
Application are gathered from employees after giving the
advertishment in the news-paper or reference from the
present employees. Thus there are two main souces of
requitment which are.

- Advertishment
- Friends & relatives of present employees
- Advertishment in newspaper
- Employment exchange
- Contractors & jobber
- Waiting list
- Similer organisation transfer
- Promotion

Induction

In amar dairy milk, there is no specific induction program.

But the environment is so good in the dairy that the new
employee shouldn’t feel any shyness or nervousness into the
plant. And all other employees and workers help the new one
to understand the things regarding his work. The human
resources manager introduces the new employee to all the
employees to all employees of the dairy. The atmosphere of
dairy is very friendly.

SELECTION
The selection means to select the person accprding to the
required job by the right person at the right place or right job.
The main objectives of the selection process is that whether
an application are well qualified for a specefic job and to
choose applicant, who is most likely to perform well in that
specific job.

SELECTION PROCESS

- preliminary interview
- application blank
-selection tests
-selection interview
-reference checks
-physical examination
-final selection
The AMAR DAIRY MILK has a same procedure in
the selection of applicant of selection, bacause this dairy is
co-operative union. Thus, they are followers the same step of
standard selection process.
TRAINING AND DEVELOPMENT

In amar dairy milk there is not a special training department

but the new candidates can get training under his senior
executives. After the training has been given he or she can
better know their work & they can work easily.

In the amar dairy milk they use differents type of method

which useful for new and existing employees.

Generally, amar dairy used two types of training method

1) internal training method

They give induction training, on the job training,
lacture method.

2) external training method

They includes GCMMF providing training, and
other traing center etc.
 4.FINANCE DEPARTMENT

INTRODUCTION

Finance is regarded as the life blood of business.Finance is

one of the basic foundations of all kinds of economic
activity.Dairy achieve both goal when it has a more money to
make money and when the dairy manage finance resources
and effective and efficient manner.thus financial utilization in
an effective and efficient mannner can achieve the must
output of the firms and give the successfully business to the
company.

Money is requierd purchase expansive machinery,raw

matrial,labour,equipment in the business.so require of some
amount of finance for starting of establish of any business the
requirement of money is compulsory today the finance or
finance manager is not concern with the risings of the funds
but effective and efficient utilization of funds though the
capital budgeting,planning,forming of capital structure etc.

Amar daily milk has a good financial department.They

manage all their funds at such a way that they can get
maximum return of the fund.The decision regarding finance
is a taken by senior manager and deputy finance manager.
 ORGANISATION STRUCTURE

ORGANISATION CHARTS OF FINANCIAL

DEPARTMENT

SENIOR MANAGER

ACCOUNT MANAGER

DEPUTY A/C MANAGER

CLERK
 OPERATING CYCLE

The duration of time required to complete the various stage

in the business avctivity called the operating cycle. The
operating cycle of a manufacturing firm will be as follow

CASH

RAW
DEBTORS
MATERIAL

WORKING
SALES PROGRES

FINISH
GOODS

The three main stage in invover in the above operating cycle

viz. production, sales, cash and they are not instantaneous.
There is a time gap between these statge . thus, the form
needs working capital to finance these various stage of
operating cycle.

In case of amar dairy milk the operating cycle is very fast. As

they are in the business of milk the operating cycle is
complite in only one day. Lets see how? First of all we start
with raw material, they get milk from their co-operative
members every day in the morning as well as in the evening.
They start process of milk their after, as we see in the general
inforation that the milk pass from different process like
pasteurization. After that the flow of milk is goes to the
packaging machine and at the late night the packaging is
completed. And in theearly morning the distributer comes
with their vehicles and purchse.