Master of Business Administration

2019-2021

ORGANIZATION STRUCTURE TRAINING

ANAND MILK UNION LIMITED

Submitted By:

Jaffin John

(19221013)
 INDEX
1. History of the organization
2. Profile of the product (s)/services
3. Mission ,objective and strategies of the organization
4. Organization chart-design & structure
5. Policies and procedure followed
6. Functions of various departments
7. SWOT analysis of the organization
8. Key result areas (KRAs) of the organization
9. Significant factors for success
10. Systems of accounting followed
11. Product promotional measures
12. Career planning and promotion policy of employees
13. Training measures
14. Systems followed for purchase of materials
15. IT systems used with some details
16. HRD measures(include welfare measures)
17. Manpower planning
18. Performance appraisal system
19. Financial highlights of the organization during the last three
years
20 Future plans for growth of the organization
21 Views of managers at various levels and non-managerial staff
22 Advantages and drawbacks of the organization structure
23 Recommendations to overcome the drawbacks.
24 Modifications to organization structure
 HISTORY OF THE ORGANIZATION

 1946- first mil union was established.

 Union was started with 250L milk per day.
 1995- AMUL was established.
 1946- union was known as “KAIRA DISTRICT CO-OPERATIVE MILK
PRODUCERS” union.
 1995- union selected the brand name AMUL.
 AMUL- derived from the Sanskrit word “AMULYA”
 AMULYA means PRCELESS.
 Since 1946 product have been used in millions of home.
 Leading food brand in India.
 Amul butter, Amul Milk Powder, Amul Ghee, Amul Cheese, Amul chocolate, Amul
ice cream, Nutramul etc.
 Amul is a symbol of many things like of high-quality product sold at reasonable price,
vast co-operative network, indigenous technology.
 Proven model for dairy development.
 Main supplier of milk was POLSON DAIRY LIMITED.
 PROFILE OF THE PRODUCT

List of product:

 Fresh milk
 Amul taaza toned milk
 Amul gold full cream milk
 Amul slim and trim double toned milk
 Amul cow milk

 Curd product
 Yogi sweetened flavored Dahi (desert)
 Amul masti Dahi
 Amul masti spiced butter milk
 Amul lassee

 Bread spread
 Amul butter
 Amul lite low-fat bread spread
 Amul cooking butter

 Cheese range
 Amul Pasteurized processed cedar cheese
 Amul processed cheese spread
 Amul pizza (mozzarella) cheese
 Amul malai paneer (cottage cheese), frozen
 Utterly delicious pizza
 Ice cream
 Royal treat range
 Nut-o-mania range (Kaju Drakshi, kesar pista, roasted almond etc.)
 Utsav range
 Simply delicious range (vanilla, strawberry, rose, chocolate)
MISSION, OBJECTIVE, AND STRATEGIES OF THE ORGANIZATION

Mission:

Their mission is to manufacture the most effective merchandise of outstanding qualities,

providing connected services and solutions to their customers whereas utilizing the most
recent technologies, highest business-standard, and their main motive is to make every
customer SMILE.

Objective:

 Make India the biggest producer of milk and milk production within the world.
 Supply goods with the best of quality and purity at very reasonable rates. It helped to
reduce malpractices carried out by merchants and milk traders.
 Aim to extend India's production of milk and milk product.

Strategies:

 Customer centricity
 Innovation
 Pricing strategy
 Marketing strategy
ORGANIZATION CHART-DESIGN AND STRUCTURE.
 POLICIES AND PROCEDURES FOLLOWED

 code of conduct- it also cover privacy and conflict of interest.

 Discipline, misconduct and investigation of employee including expenses.
 Health and safety
 Leaves
 Working hour and over timing which include time in lieu and flexible.
 Protection of confidential information.
 Appraisal for best performer.
 Recruitment resolving employment issue.
 Training and development of employee
 Protection of company’s asset
 Long service award
 Travel and transport policy
 Use of company equipment
 Pension and perks.
 Extension of services.
FUNCTION OF VARIOUS DEPARTMENT AND THEIR MANAGERS

 Organize the distribution of milk and its various product

 The keep in mind the competitors and market forces, according to it they fix the price
of milk and their various product.
 Getting the feedback from agent and from customer for quality and about the rates for
their product.
 Formulate promotion policies.

DEPARTMENT
According to their function there are five major department:
 Engineering department
 Store department
 Transport department
 Quality control department
 Production department
 Financial department
 Procurement and input department

 Engineering department.
This department is responsible for keeping the machinery equipment.

 Store department.
This department is responsible for live stock feed, storing of product, machinery.

 Transport department.
This department id responsible for transportation of raw material for production or
finished product from one place to another. They provide jeep, tanker etc.

 Quality control department.

This department is responsible for checking the quality of milk product and
pasteurized milk before reaching the product to the customer. They are also
responsible for checking the quality of machinery. It includes:
 Freshness test
 Cleanness
 Foreign particles
 Urea test
  Glucose
 Sugar
 Salt
 Formalin
 Starch
 Mineral oil test
 Milk fat
 Milk SNF (Solid Not Fat)

 Production department.
This department is the most important department. it plays important role by
processing the raw material into pasteurized milk. It also process the milk procured
from different district.

 Financial department
It is operated at centralized level. different level manager work in order to maintain
the financial statement. They also try to raise fund and allocate them in different
functions. They also assess the financial statement to find profit and loss and revenue
earned during the financial year.

 Procurement and input department

This department have the responsibility to procure the milk from different dairy from
different places. They look after the requirement of the dairy farmers.
 SWOT ANALYSIS

STRENGTH:

 The major strength of the Amul is the different variety of milk they have.
 Have a recognized brand name.
 They have strong network of over 3million of milk producers.
 It is the world largest manufacturer of pouched milk.
 Affordable price of all the product available.
 In butter segment it is only market leader.
 Strong network on Amul retail outlet.
 Popular mascot in the Amul girl.
 Successful advertising and marketing campaign.

Weakness:

 There are various competitors in the chocolate market, leads to restriction to there
growth.
 Lack of capital invested as compared to company.
 Lack of proper distribution channel in India.
 There is a strong competition from international and domestic player, in the ice cream
product.

Opportunities:

 Lot of potential for growth and development as large number of people stay in rural
market where competitors are not targeting.
 Chocolate market is at growth with very less competition. So, by introducing good
brand and good advertisement can be a very good scope in future.
 Increase in purchasing power of Indian citizens.
Threats:

 There is a threat from other companies who hold a major share of consumer in Indian
market. i.e. Cadbury and nestle.
 Strong competition from international player.
 Economic slowdown and inflation.
 Threat of new entrants in the Indian market.
 Strong supply chain management of competitors.

KEY RESULT AREAS (KRA’s) OF THE ORGANIZATION

 Community image
The way the organization is perceived by the social, vendor, customer and employee
community.
 Profit
The net profit before tax planning efforts, produced by the efficient operation and
effective administration of the company.
 Income
The gross or top line billing/invoicing produced by all operational activity of the
company.
 Customer satisfaction
The policies, procedures and values that determine how your people provide service,
and to what degree your customer needs will be satisfied.
 People
The qualification, number, position, pay scale, benefits and training are needed for all
worker in the company. How you Compensation, recruitment, hire, appraise
performance, promote and transfer your organization policies and structure.
 System, procedure and technology
The method and technology used, the way the company does things, to ensure the best
use of human, financial, and equipment resources to generate revenue for the
company and also to satisfy the customer.
 Quality management
 The manufacturing is the tedious task and has to be total qualitative. Similarly, the
quantity is also be take care.
 Diversification
The creation/identification of new product, services, geographic and demographic
markets to ensure your organization continue competitive viability.

SIGNIFICANT FACTOR OF SUCCESS

Dairy farming known as the largest business all over the world. Nowadays, for being a
successful dairy farmer include the awareness and understanding of dairy technology,
learning preparation and production skill. There are some important factor, which are helpful
to get success in dairy farm:
 Increase effectiveness
It is important to know how to reduce waste resources and time. It is the main factor
to make profitable production. Manufacturing firm require work and effort to be put
into better equipped system to become success. Any manufacture can get success all
the way through less waste.
 Increase profitability
It is important to reduce the price of milk production that is vital to better success with
most appropriate environment for the organization. All type of risk handling in better
way are also profitable.

These are the most important factor that are very helpful to get success in milk business.
Apart from it, it is also important to use the best milk processing equipment for milking
purpose. If they use the best equipment, they will get better milk production for their
organization as well.
 SYSTEM OF ACCOUNTING FOLLOWED
 They follow the accrual system of accounting for the preparation of accounts.
 Financial statement are prepared on the historical cost convention and in accordance
with the generally accepted accounting principles.

PRODUCT PROMOTIONAL MEASURE

The following are the tools used by Amul for promoting products.
 Consumer promotional method.
 Distribution of free samples.
 Free gifts
 Reduction in price
 Special price
 Demonstration
 Money back guarantee
 Decoration and display at the shop

 Dealer promotion method

 Advertisement allowance
 Quantity discount
 Incentives to salesman
 Training
 Meeting and seminars
 commission
.
 CAREER PLANNING AND PROMOTION POLICY OF EMPLOYEE

 Career planning
 Performance appraisal
 Pay, allowance and benefits
 Talent management
 Training and development
 Leave rules
 Travel and transfer policy
 Staff welfare
 Retirement benefit
 Separations

PROMOTION POLICY OF EMPLOYEE

Promotion policy is yearly based on the organization, and it is given according to their
performance.

TRAINING MEASURES

 VMS workshop
It aims at to create a document on vision , mission and strategy for village dairy co-
operative societies. It help the dairy farmers for future planning.
 Milk day celebration
The
program aims at gathering of all members including top level managers also and
respective producers members of dairy co-operative societies to identify and solve
their problems.
 Self-managing leadership programme
Amul undertakes this programme for women resource person to bring a value based
approach in development process.
 SYSTEM FOLLOWED FOR PURCHASE OF MATERIAL

To achieve its objective it work through a professionally managed structure which links the
village level milk producers to the milk consumer in the cities.
 Village level dairy cooperative society
It collects the surplus milk from the farmer members. Animal health and other support
and services are routed through the DCS to the farmers.
 Districts level milk unions
It provide support and services to the farmers by routing them through the villages
DCS. It sell cattle feed, organize fodder development programs and make available
good quality fodder seeds, provide artificial insemination facilities etc.
 State level federation
The apex federation provides marketing services and other support to district milk
unions of the state. It also help the milk unions of the state. It also help them to market
outside the state.

IT SYSTEM USED
 IT have helped them in fast decision making and better product quality and at the
same time reducing the costs of operation.
 All the entities like; Operations, Marketing, Accounting, Inventory and Human
resources have a common system that enables consistent reporting of management
and operational units. .

HRD MEASURE

HRD measure:

 Canteen
 Transportation
 Uniform

For blue collar employee

 Family visits
 Retirement plan
 Award
 Fitness camp
 Health talk

MANPOWER PLANNING

 Recruitment and selection

 Manpower budgeting
 Designation
 Probation and confirmation
 Absenteeism
 Employye code of conduct
 Employee record
 Performance appraisal
 Talent management
 Staff welfare
 Retirement benefit
 Long service award

PERFORMANCE APPRAISAL SYSTEM

 Appraisal each year shall be governed by Appraisal Policy for the year.
 The appraisal policy for respective business unit shall be approved by business head
of the unit except for promotion and increment scheme for personal ranked above
DGM and above which should be in consultation with Group Head.
 Performance of an employee is measured on the basis of KRA’s for which employee
are rated.
  An employee will be eligible for appraisal when his/her period of service shal be
minimum at least one year.

FUTURE PLAN FOR GROWTH OF THE ORGANIZATION

 Engaging with globally reputed consultants who are helping them in their cost
optimization network and expand their coverage to maximum reach.
 Improve its technology and distribution of information and it helps to improve the
relationship between the company and customer.
 It will focus on working across the globe to attract their customer with an innovative
new product.
 They also plan to expand their number of servings of their product.
 To build a strong partnership with their supplier and dealers.

VIEWS OF MANAGER
Marketing manager of Amul said that the youth has to come up with the innovative idea for
more success.
Even they require fund for more advertisement for the promotion of their product.

ADVANTAGE AND DRAWBACK OF ORGANISATION STRUCTURE.

 Milk and their different product are important from nutritional point of view as it
contain all the essential nutrition required in human diet.
 It provides reference for employees to help them understand their role in the
organization.
 This industry also help in maintaining the fertility of soil. It also help in grass land
farming as well. The manure is also produce from the cattle dung, which return food
nutrients to the soil.
 This industry got a big requirement of labour and this keep their farmer busy through
out the year.

DISADVANTAGE
 Less communication between the department which leads to less coordination among
employee.
  There is a chance that employee can get frustrated when they have to work for more
than one department which lead to lack of cooperation.
 the company must keep a watch on its primary competitors in the market in order to
be able to compete with them.
 the company should use a new attractive system of word of mouth advertisement to
keep alive the general awareness in the whole market as a whole.

RECOMMENDATION

 There should be regular meeting of Head from all the Department should be
conducted which help them to coordinate properly.
 Try to minimize the competition among the department which help them to focus on
the organizational objective.
 Suggestion scheme in organization should also be encouraged where employees are
welcome for the suggestion.

Modification

Company should make effort for home delivery packed milk which can help them to boast
the sale. More monthly meeting should be conducted. Customer is the king because he has
got various choices around him