Professional Documents
Culture Documents
REPORT
Organisation Study Report on Star PVC pipes & Fittings
Conducted At
STAR PVC PIPES
Submitted by
VISHWAJEET
14MB1402
PG DEGREE
IN
Declaration
Date:
VISHWAJEET
Acknowledgement
First of all I wish to express my deep gratitude and thanks to God who
helped us in completing the organization study successfully. I shall
remain grateful to Mr. Naveen Prasath, Faculty, MBA Department,
ISBR for his amble guidance and encouragement for completing the
organization study. I am also extremely grateful to faculty member for
their valuable suggestions and advice regarding this work. I express
my sincere thanks to all the staff of ISBR for their co-operation during
my study in the company. Last but not least I thank my parents and
for all their moral support and help, they had given to me.
CONTENTS
CHAPTER
CONTENTS
PAGE NO
EXECUTIVE SUMMARY
Chapter I
INTRODUCTION
1.1
Industry Profile
1.2
Company Profile
Chapter II
11
2.1
Organizational Structure
12
2.2
Organizational Chart
12
2.3
Organizational Outlook
13
2.4
13
FUNCTIONAL DEPARTMENTS
16
3.1
Finance Department
17
3.2
Accounts Department
18
3.3
Marketing Department
18
3.4
26
3.5
Production Department
27
3.6
Purchase Department
29
3.7
Systems Department
31
Chapter IV
32
Chapter V
SWOT ANALYSIS
40
Chapter VI
43
Chapter VII
CONCLUSION
45
Chapter VIII
BIBILIOGRAPHY
47
Chapter III
EXECUTIVE SUMMARY
The organizational study was conducted at STAR Plastics, Thrissur, Kerala. The
objective of the study is
To study the organizational structure.
To study about the structure and functioning of various departments.
To study how the management control various departments for the attainment
of the organizational objectives.
The organization is into PVC pipes and fittings manufacturing. PVC is an
organochlorine, which was first patterned in 1913 by Fritz Klatte. However, its development
for hindered by pure PVCs chemical instability and its low workability. During the 1930s,
German experiments with various stabilizers and softeners lead to the first useable forms of
PVC. By the early 1950s PVC was second only to polythene, as the most important synthetic
product in Germany. It is now the single largest use for chlorine today, using about 1/3 of all
global production. About 40 million tons of chlorine is produced by the chemical industry every
year. PVC development was part of the huge expansion of the chlorine industry after the
Second World War. PVC, Dichloro Diphenyl Trichloroethane (DDT) and Chloro
FluoroCarbons (CFCs) are all products of post war boom in the chlorine industry. Currently
there are over 11,000 oregano chlorines now in commercial use. Organo chlorines are useful
to industry because they tend to be very stable and the resist natural breakdown process.
Star Plastics have seven functional departments and its the leader in PVC pipes &
Fittings in south India. Star Plastics is the first PVC pipe fittings manufacturer in south India
to receive ISO 9002 certification. While globalization and economic slowdown in the world
markets threw up new challenges the STAR group is busy chalking out plans to translate these
challenges in to opportunity. The company is going to make a centralization system of the
software network that the progress of work at any levels, at any units, at any centers can be
viewed from the corporate office itself. Each and every aspect of the business can be checked
from the corporate office.At present company is able to later about 10% of the market
requirements. In order to later the complete needs the company is planning to increase the
production level to maximum extent possible. The company is planning to increase the present
product level of Dubai units. The research and development team of STAR group is engrossed
in developing new product for the international markets.
CHAPTER I
INTRODUCTION
1.1Industry Profile
Plastics, in the modern meaning of the word, are synthetic materials that are
capable of being formed into usable products by heating, milling, molding and similar
processes. The term is derived from the Greek plastic, to form in si mplest terms;
plastics can be described as resins in their molded form.
The wonders of plastics cut across all sectors of society. It is a material of
choice due to its versatility, its physical strength, its economic viability; its easy
process ability and also its attractiveness and durability of all weather conditions.
With the globalization of Indian economy and television entering into homes and
tiniest villages and communications demand for the materials for suitable functional
use more economic packing, durable all weather products has meant increasing
demand for plastics.
Packing of cement bags, the end user is demanding plastics instead of
conventional jute, because it prevent transits loses and wastages. The hilly regions of
East India or drought prone districts of Rajasthan, Gujarat, and Tamil Nadu demand
auto molded tanks in thousands each day. The agriculturists of Himachal Pradesh
insist on plastic pipes for irrigation to their farms, the floriculturists of Karnataka and
Maharashtra cannot thrive without ultraviolet stabilized polythene wide width films
for huge tunnels and green polymers consumption and import.
The Plastic industry in India has made significant achievements ever since it
made a modest but promising start by commencing production of polystyrene in 1957.
The potential market has motivated Indian entrepreneurs to acquire technical
expertise. Achieve high quality standards and build capacities in various facts of the
booming plastic industry. Phenomenal development in the plastic machinery sector
coupled with matching development in petrochemical sectors, both of which supports
the plastic processing sectors, have facilitated the plastic processors to build capacities
to service both the domestic market and overseas.
The chronology of manufacture of polymers in India is summarized as under.
1957
: poly styrene
1959
: LDPE
1961
: PVC
1968
: HDPE
1978
: polypropylene
The economic reforms launched in India since 1991, joint ventures, foreign
investments, easier across to technology from developed countries etc. have opened
up new vistas to further Indian plastic industry are exported to over 150 countries
round the globe with major trading partners being USA,UAE, Italy,UK,Russia,
Honkong, Germany etc. The plastic processing sector comprises of over 30000 units
involved in producing a variety of items through injections molding, blow molding,
extrusion and calendaring. The capacities built in most of this industry coupled with
inherent capabilities have made us capable of servicing the overseas markets. The
development of plastics took place in 1920s with the introduction of cellulose acetate,
polyvinylchloride and nylon.
Polyethylene evolved out of the need for a superior insulating material could be
used for such applications as radar during World War II. The decade of the 1950s
saw the introduction of poly propylene and the development of acetyl and
polycarbonate. In 1960s and 1970s a sub group of plastic family started to emerge
,called high temperature plastics, which includes polyamides, aromatic polyesters,
polyether siphoned etc.
1.2Company Profile
a) Background of the company:
The history of STAR is the history of pipe fittings production in south India.
In 1983, Vikas plastics and Star plastics amalgamated to form Star plastics,
Mullurkara that is 20kms away from Thrissur town, the cultural capital of Kerala. In
1988, star became the number one PVC pipe fitting manufacture in south India it has
received the best ISI mark for quality. In 1994 star began the production and marketing
of flexible hoses under the brand name STAR FLEX. In 1998 taking advantage of the
wings of globalization star started star impex and forayed into the global market.
Growth being as the key strategy the visionary Mr.P.K.Paul nurtured star plastics into
a corporate level. After the demise of Mr. P K Paul his eldest son Mr. Bobby Paul took
the charge of the chariot. His brother Mr. Anto Paul also assists in the day to day
activities of the company .Presently the group consists of various companies like Star
Plastics, Star Flex, Shine Star, Star Exporters& Fine Polymers, A new group venture
of star group of companies for the purpose of exporters
In the year 2000, to take on the challenge of globalization, star set up a core
team and applied core ISO certification. In August 2001, star became the first PVC
fittings manufactures in south India to receive the IS O 9002 certification. Star plastic
is the market leader in Kerala, Tamilnadu & the market challenger in Andhra Pradesh
and Karnataka. The company has made its presence significantly in Middle East
market having a branch office at Dubai. It is a multi-core, multi-Product Company
which has been deeply involved in the manufacture, distribution, sale, and installation
and servicing to bring the customer satisfaction and social responsibilities.
In the last one decade unparalleled growth was witnessed in star gr oup of
companies to emerge as a leader in the PVC fitting and to diversify into the
manufacture of suction hoses, drainage fittings and PVC pipes. Star plastics are a
group of companies with a turnover of 30 crores per annum and with manpower
strength of 450 employees including 50 high caliber professionals. It has a32% growth
due to the young and dynamic MDs expansions and growth plans. The company
increased its production capacity over 50% in just two years incurring huge additional
investments. Presently it is enjoying the benefits. At the end of current half year a
growth rate of 35% when compared with the last year is witnessed.
The companys operations include manufacturing of PVC fittings and allied
products in clearly defined core business areas at home and overseas. The star group
of companies is the single largest plastic industry in private sector over the years, star
group has steadily developed in to a professionally managed company comprising of
8 manufacturing unit in 3 production centers with a total installed capacity of 3850
meter per annum- 8divisions and effective centralize support services wholly
dedicated to the most existing standards of quality and customer services, constantly
motivated by the need to ensure total product satisfacti on.
Star Plastics: - star plastics, the parent company of the group was incorporated in
1983, and within these 21yrs it has grown up as one of the largest pace fittings
manufacturing companies in India and its products are approved by these authorities.
Shine Star: -shine star is another unit of star plastic, which is manufacturing pipe
fitting. This has been started as another manufacturing fitting unit.
Star Flex: - star flex is totally a new venture, manufacturing flexibl e solution and
delivery hoses ranging from to 4 sizes. As on today the above companies are making
a combined sales turn over approximately worth of 30 crores per year.
Star Polymers: -It is the unit of star plastics. It is manufacturing pipe fittings.
Star Plus: - star plus is another unit of star plastics. It is also manufacturing pipe
fittings. The different units had been given different names in terms of marketing.
c) Nature of business carried:
STAR This word is the combination of basic concepts and fundamentals believed by
its founder and carried over across the years, it has sailed hitherto and for the future
such as
S - Service
T- Transparency
A - Accountability
R - Reliability
d) Star which means:
Provider of basic requirement of all PVC related fittings, pipes, and allied
products.
Unstinted and continued supply and service since last 2 decades.
Believer and Promoter of quality products than giving simple propaganda.
The First PVC pipe fittings manufacturer in south India who is operational and
reaching newer heights year after year.
The First PVC pipe fittings manufacturer in south India to have received ISI
mark.
The First PVC pipe fittings manufacturer in south India to have received ISO
mark.
An entity who gave to its customers qualitative products & value added
services.
To have received the best appreciation from its people.
To manufacture and market goods, which comply with the consumers requirements.
In the last one decade, unparalleled growth was witnessed in STAR group of companies to
emerge as a leader in the PVC fittings and to diversify in to the manufacture of suction, drainage
fittings and PVC pipe. STAR PLASTICS is a group of companies with a turnover of 75 cores
per annum and with a manpower strength of 450 employees including 50 high caliber
professionals.
f) Product/Service profile:
Star plastic product constitutes plumbing equipment materials such as PVC pipes,
fittings, S.W.R fittings and PVC adhesive. Star fitting is leading names fittings over all the
states. STAR PVC pipe fittings are manufactured from the finest grade PVC resin trusted and
acclaimed all over the-country for quality. Due to high tensile strength and reliability used in
industry, homes etc.
STAR fittings are available in above 10 shapes and measures vary from 20mm to
200mm. These are also available in 3 different colors. Injection modulated STAR PVC pipe
fittings confirm to ISI specification and assure totally safe, non-toxic water for all purposes.
g) STAR-Plastic-Products:
The company concentrates on the manufacturing of a wide range of PVC pipes and fittings and
allied products. Their products are basically categorized as
h)Production centers:
within these 24 years it has grown up as one of the largest PVC fittingsmanufacturing
companies in India and its products are approved by ISI authorities. Manufactures the PVC
pipe fittings, drainage fittings, SWR fittings, Pressure fittings, solvent cement. Lisna Inc. is
situated in same premise.
STAR Flex manufactures the PVC flexible hoses, suction and delivery hoses ranging from 0.75
to 4 inch diameter.
a semi-automatic manufacturing unit which manufactures rigid PVC pipes ranging from 20mm
to 200mm.
automatic manufacturing unit which manufactures rigid PVC pipes ranging from 20 mm to
200mm.This unit does the production for TAMILNADU and KARNATAKA.
automatic manufacturing unit which manufactures rigid PVC pipes ranging from 20 mm to
200mm. also manufactures the PVC pipe fittings and solvent cement. This unit does the
production for the Middle East Asia, Africa and Europe. Each division is self-reliant in its
activities of research and development, Manufacturing and marketing, now moving for total
automation and integration. STAR group of company is structured in to business units
comprising synergistic group of responsibility centers, division backed up by an extensive
marketing infrastructure and front line support services.
CHAPTER II
STRUCTURE OF
THE
ORGANISATION
DIRECTOR
MG- DIRECTOR
GENERAL
MANAGER
HR
FINANCE
FIANCE
MANAGER
PURCHASE
PRODUCTION
MARKETING
ACCOUNTS
PURCHASE
MANAGER
PRODUCTION
MANAGER
MARKETING
MANAGER
CHEIF
ACCOUNTANT
SYSTEM
ASST
MANAGER
(SYSTEMS)
BOBBY PAUL
Other Directors
General Manager
Marketing Manager
C.L.George
Finance Manager
Biju Thomas
Accounts Manager
A.C. Chummar
Established in
1984
Main production
Production range
Present production
Number of machines
50
400
Trade discount
50%
5%
Of total production
2) Accounts Manager
He is responsible for keeping the details of day book, ledger and P.F registers.
Moreover, he should record and maintain all the details of the sales tax calculation and
related documents and produce them on demand.
3) Marketing Manager
He is charge of the marketing department of the organization. The marketing
department aims to increase the turnover of the organization, market share, and
profitability of the organization. The marketing manager should be tactful. He should
know marketing concepts product mix, promotion mix, price mix, distribution mix etc.
He should be known the strength and weakness of the firms products. He is also able
to design and implement market strategies to enhance turn over and capture new
markets.
5) Production Manager
He is responsible for the production of goods services in the organization. He looks
after the purchasing function and manages the production design and process. He is
called in different names such as production engineer, plant engineer, operation
engineer etc. They are responsible for plant layout, inventory management, production
control and quality control.
6) Purchase Manager
Duties and responsibilities of the purchase manager are:
Verify the invoice with regard to quality, price and other relevant particulars
and pass it for payments.
CHAPTER III
FUNCTIONAL
DEPARTMENTS
FINANCE MANAGER
FACTORY MANAGER
BRANCH MANAGER
Finance department is headed by finance manager. Finance manager reports to the General
Manager and in certain strategy and urgent issues directly report to managing director and take
decisions. Finance Manager works in the coordination with chief accountant, production
manager, marketing manager, branch managers.
Sources of Finance:STAR Plastics find sources of finance through banks and other private financial institutions.
As it is a partnership firm, the partners contribute their funds to make capital requirements and
other expenditure with the help of banks and financial institutions. STAR Plastics deals all
finance requirements with South Indian bank, Kerala State Financial Enterprises (KSFE) and
State Bank of India. Vehicle loans are provided by Cholamandalam finance.
Companys Financial Policies:-
Functions of Finance Department:Finance function is concerned with all aspects of business operations. It is very difficult to set
limits to the finance function. The key activities under finance department are:
Management of firms assets structure.
Financial analysis, planning and control.
Management of firms financial structure.
Estimating capital requirement.
Determining sources of fund.
Utilization of fund.
Disposal of surplus.
Management of cash.
Financial controls.
Organization Structure:
MARKETING MANAGER
BRANCH MANAGER
SALES EXECUTIVE
REPRESENTATIVES
Marketing Policy:
STAR Lights to reduce the number of intermediaries, so they have no distributors. Billing is
directly done to the wholesalers and retailers. In case of other state sales, its a one through the
branch offices. No direct export to any customers. STAR is operating by exporting to the
branch office at Dubai, STAR IMPEX INDUSTRIES L.L.C. and billing directly to the
customers. In the case of logistics the supply of products is done through company owned feet
of vehicles. Same policy followed with inter-state also.
Functions of Marketing Department in Star Plastics:
The major functions are explained below:
1. Demand Forecasting
2. Marketing Research
3. Marketing Control
1.Demand Forecasting
Demand forecasting is the main function of marketing in STAR plastics .It should be done
through sales force in the company such as sales representatives sales executives etc.
collecting information from customers. On the basis of this information demand forecasting is
to be done.
2. Marketing Research
Marketing research is more comprehensive composing all the functions of a marketing
manager that is it covers product, price, sales, market, promotion, distribution policies. It is
commonly says that marketing research begins where manufacturing ends. In fact it
commences well before the product is fabricated. It goes in to operation even before erecting
the factory. It covers analysis of competitive advantage, market share analysis and new product
development. The main objectives of market research are:
To know buyers.
To measure the impact of promotional effort.
To know consumer response.
To know market costs and profits.
To master external forces.
To design and implement marketing control.
3. Marketing Control
Various tools used for marketing control are cost control and a market share analysis. Cost
control is one task for monitoring the cost of marketing and it is compared with planned cost
standard, so as to identify deviations and take corrective action. Market share analysis is also
used for marketing control.
Objectives of Marketing:
The basic objectives of marketing are to satisfy human wants. The important objectives of
marketing are briefly explained below:
1. Customer Satisfaction through Quality Products
Marketing activities aims at achieving customer satisfaction by offering quality
products. It is also help more increasing profit, increasing goodwill, increasing image of the
organization etc.
2.After Sales Service
This another objective of marketing company provides after sales services to its
customers. The service of the company does not end with process of distribution the company
has been waited until good result comes by giving their products to consumer and they always
rendered their services at the time needed by the customers. The marketing and sales
department keeps their eyes and ears to open to know changes in the market. The complaint
and suggestions if any are well accepted by the company from their customers. There is any
complaint about the sold product the company will take it back at the companys costs.
Method Of After Sales Service:
For providing after sales service company may use thefollowing methods:
Sending special staff to the customers.
Arranging service with dealers/agents.
Appointing in depending service specialists.
3. Maintaining Price Leadership:
Companys important objective is to maintain price leadership. Company is always trying to
become a price leader. It does not like become a price follower.
4. Achieving Maximum Market Share:
Companies another objective is to achieving maximum market share. In order to
achieve maximum market share, company will spend more on advertising and offering quality
products to the customers.
5. Other Objectives:
Other objectives include:
Increasing firms sales.
To guarantee firms survival.
To fortify better resource utilization.
To meet customer needs.
Present market condition:
For their products STAR is facing demand higher than supply, which is a healthy situation. In
case of seasonal products like suction and delivery hose, demand exceeds supply. It tries to
later products to major customers. It is the main reason for expansion of production facilities.
Market Segmentation:
STAR is the dominant player in the South India. Geographically the market is
segmented into five regions and branch officers are responsible for marketing activities in their
regions.
1. Bangalore (Karnataka)
2. Chennai (TN)
3. Dubai (Middle East, Russia, South Africa etc.)
4. Nagari (AP)
5. Thrissur (Kerala)
As per the consumers, market is segmented into three:
1. Government Works
2. Household Consumers
3. Builders
Presently highly concentrated on the builders, as the construction industry is booming,
appointed two sales executives exclusively for this sector and have a considerable market share
in the other two segments.
Promotion:
In STAR PLASTICS promotion is done in the case of sale of products, in the case ofdealers,
and in the case of sale force.
1. In the case of sale of products
Sales promotion includes short term incentives likes discounts, free gifts and contests to
stimulate sale of products. Sales promotion builds a bridge between the products and
consumers. In the case of STAR, sales and brand promotion is done by providing information
about the products through advertisement, demonstrations, organizational shows etc.
2. In the case of dealers
Company provides incentives to their dealers and also provides dealers with discount at the
time of purchasing the product from the company. The company also provides after sale
services to dealers. It is based on the nature of product the company offers their dealers with
replacement facility after checking the product.
Pricing Strategy:
In STAR pricing strategy is a special kind of plan formatted in order to meet the changes
of external factors particularly from the policies of competitors. Pricing strategies change with
competitive situation. Some of the common pricing strategy followed STAR plastics are:
1. Competitive pricing.
2. Premium pricing.
1. Competitive pricing:
It depends upon market condition competitors price, seasonal variation etc. customers are
very much aware of the quality and price of the product.
2. Premium pricing:
In the case of suction and delivery hose, adopted a premium price strategy to utilize the ISI
marking and brand image. As the brand awareness is less with customers market will still
depends on price of the product.
In the case of new product:
Following pricing strategy followed in the case of new products:
1. Skimming price policy:
Company adopts skimming price policy in the case of new products. This is done with the basic
idea of gaining a premium from those buyers who always ready to pay a much higher price
than others. The main reason for adopting this strategy is to attract the consumers of high
income group. .
2. Penetration price policy:
Sometimes company adopt penetration price policy that means changing low price from
beginning in order to stimulate the growth of the market and to capture a large share of it. Since
the customers with low income are able to purchase it.
Price Fixation:
Price of the product depends on two components:
a. Cost of raw material - variable.
b. Operational &Processing cost - fixed.
Product price changes with change in raw material price, which is considered as a
variable. Minimum period of two weeks taken for price revision, though in some cases raw
materials price fluctuates each day.
Risk Involved:
Usually bad debts may occur in a business concern. But in STAR PLASTICS till now no bad
debts have been incurred. The usual credit period given to customers is 15 days. If one customer
delays the payment, they collect the amount by the way of sending reminders to him, although
they are keeping some amount as reserve for bad and doubtful debts. The society is keeping
large quantities of direct materials as stock because the price of such materials is growing day
by day. Therefore these excessive raw materials dont result in loss though some heavy
investment is required in it.
To avoid the risk involved in transportation of goods to customers outside Kerala, the goods
are insured accordingly. It helps the society to avoid the risk involved in transporting goods to
distant places.
Organization Structure:
HUMAN RESOURCE
TOP MANAGEMENT
BOARD OF DIRECTORS
CHEIEF ACCOUNTANT
FINANACIAL
DIRECTORS
MIDDLE
MANAGEMENT
SUPERVISORY
MANAGEMENT
DEPARTMENTAL HEADS
SENIOR SUPERVISORS
SKILLEDWORKERS
DIVISIONAL HEADS
INTERMEDIATE
SUPERVISORS
SECTIONAL HEADS
OPERATIONAL
MANAGEMENT
UNSKILLED WORKERS
better production functions to increase the efficiency in a way result in cost reduction.
Production takes place in six production centers located at different place. Each division is selfreliant in its activities of manufacturing, quality control, research and development production
center is headedby factory managers reports to a production manager at the corporate office.
Organization Structure:
PRODUCTION
MANAGER
FACTORY
MANAGER
ASST. MANAGER
(ADMINISTRATION)
PRODUCTION
SUPERVISORS
ACCOUNTANT
WORKER
STORE IN CHARGE
QUALITY IN CHARGE
(TECH & R&D)
CASHIER
CLERK, RECEPTION
The Companys production department handles the production of PVC pipe fittings. The main
raw material for product is Resin and other related components like chemicals. 95% resin and
5% other chemicals are used for the production. The plant is set up in process layout. The raw
materials go through the various processes for development of final product. Other than
company fittings Company also produce solvent cement and in different measures. There are
20 machines in production plant, each costing up to 35 lacks.
Depending upon the type of products, the production process is divided in to three:
Extrusion: - For rigid pipes and flexible hoses.
Injection Molding: - For PVC Pipe Fittings.
Mixing: - For solvent cement.
Market conditions
Organization Structure:
PURCHASE MANAGER
SENIOR ASSISTANT
OFFICE ASSISTANT
The purchase manager concerns with the factory managers regarding the technical
specifications, manufacturer, quality standards, cost of materials, availability, time delay etc.
In case of engineering goods, testing equipments, speciality chemicals, instruments etc the
purchase manager seeks help from the engineers and the other technical persons working with
the research and development. Purchase manager also works in coordination with the chief
accountant, to know the position and about the credit position with the suppliers.
CHAPTERIV
PORTERS FIVE
FORCES MODEL
II.
III.
There is little differentiation over the product and substitutes can be found easily.
Nowadays customers have the buying power and they have the choice in the market to choose
the product what they want. In 1994 Star began the production and marketing of flexible hoses
under the brand name STAR FLEX. Before that Nediyara group came with Soft PVC Garden
Hoses and it has a good name among the customers and has a good market also. So when Star
came with flexible hoses, it is difficult to market the product. But while comparing to other
companys products, Star have international standards and also have the ISI certification and
the product flexible hose is for both domestic and industrial use. This made Star to gain
supremacy of the products over others products, market ascendancy was not difficult. Star now
is a ubiquitous presence in the entire Middle-East and South Africa. In 2001, STAR received
the ISO 9002 Certification, yet again the first in South India. The customers of STAR are
satisfied with their products. They continue to use the product and will purchase them in future.
Quality is the main factor that helps STAR to compete with other brands. Advertisements were
done in print media only.
If they are the only supplier or one of few suppliers who supply that particular raw
material.
If it costly for the organization to move from one supplier to another (known also as
switching cost).
STAR plastics have suppliers all over South India. STAR plastics concentrates there market in
India mostly in southern region. STAR has a monopoly market in southern area. The company
can market their product very smoothly through the market segmentation. The company is
selling their products by dividing the market state wise. The company concentrates in Tamil
Nadu, AndhraPradesh, Karnataka and Kerala. In North India the company continues marketing
of their products.
To be more precise, the product of the company makes its presents felt in the following
counties:
INDIA
UAE
RUSSIA
IRAN
AFGHANISTAN
MUSCAT
QATAR
BAHRAIN
SAUDI ARABIA
EGYPT
SUDAN
ETHIOPIA
SOMALIA
SOUTH AFRICA
It is costly to leave the industry hence they fight to just stay in (exit barriers).
In India the PVC industry is going through high competitive rivalry. As too many organizations
are coming to PVC pipes & Fittings manufacturing industry yearly, the competition is also
becoming higher. In the last one decade unparalleled growth was witnessed in Star group of
companies to emerge as a leader in the PVC fitting and to diversify into the manufacture of
suction hoses, drainage fittings and PVC pipes. The companies operation includes
manufacturing of PVC fittings and allied products in clearly defined core business areas at
home and overseas. The Star group of companies is the single largest plastic industry in private
sector over years, star group has steadily developed into a professionally managed company
comprising of 8 manufacturing unit in 3 production centers with a total installed capacity of
3850 meter per annum-8 divisions and effective centralize support services wholly dedicated
to the most existing standards of quality and customer services, constantly motivated by the
need to ensure total product satisfaction. In the year 2000, to take the challenge of globalization,
star set up a core team and applied core ISO certification. In August 2001, star became the first
PVC fittings manufacture in south India to receive the ISO 9002 certification. Now Star Plastics
is the market leader in South India. The company has made its presence significantly in Middle
East market also.
CHAPTER V
SWOT
ANALYSIS
SWOT analysis is a strategic planning tool used to evaluate the strengths, weakness,
opportunities and threats involved in a project or in a business venture. It involves specifying
the objectives of the business venture or project and identifying the internal and external factors
that are Favorable and unfavorable to achieve the objectives.
Strength:
1. The company has a good brand image among the consumers.
2. Products accepted all over the world for its quality.
3. Multi Unit Multi Product organization catering all products in PVC pipe industry.
4. Global presence in Middle East Asia, Europe, Africa.
5. The company has the direct marketing network with well established distribution
system
6. Dedicated marketing force with effective promotion strategy.
7. The company has fully computerized departments and production units and corporate
office is connected through intranet.
8. Committed work force guided by technically skilled superiors, maintaining warmness
in relation helps in delivering a combined effect.
9. Stringent quality measures adopted, backed by a strong quality control and R & D
team.
Weakness:
1. Organization in flexibility (Flexible working hours and Policies for flexible working).
2. Limited branches.
3. Lack of access to the key distribution channels (Not concentrating in the rural areas of
south India where there are lot of business possibilities in agriculture sector. Now the
organization is concentrating mainly in the construction Industry).
4. Advertisements are done through print media only.
Opportunities:
1. PVC pipe industry is in growth stage so PVC pipe industry has a greater opportunity to
grow.
2. Immense opportunities as infrastructure development in India are growing at a faster
pace.
CHAPTER VI
FINDINGS AND
SUGGESTIONS
Findings:
Star Plastics is the number one PVC pipe fitting manufacturer in south India and it has received
the best ISI mark for quality. In August 2001, Star became the first PVC fittings manufacturer
in south India to receive the ISO 9002 certification.
International Standard that is being followed as far as the quality of the products is
concerned.
Has well trained employees to operate the machines.
Provides excellent services to its employees like canteen, medical facilities,
transportation etc.
Premises are huge and designed in such a way that the raw materials can easily
transferred from one department to another.
Safety is given main preference.
Discipline is being followed.
Pollution level is low.
Quality of the products is assured by doing nine different quality tests.
Everyday feedbacks are taken.
Excellent training and development system.
Employee performance appraisal system.
No discrimination for race, religion, decision making and actions.
Suggestions:
Problems can be detected early and treated to prevent deterioration welfare and cost
reduction.
Annual medical checkup for all workmen and employees. A small amount can be
deducted from the salary one time.
CHAPTER VII
CONCLUSION
CONCLUSION
The study conducted at STAR GROUP OF COMPANIES THRISSUR which is the pioneer
and market leader in the PVC pipe product in South India, helped in getting a wider outlook
about the business environment and managing an organization. Organization has six production
centers and five marketing branches spread all over South India and Middle East Asia, with
operation all over the world.
It was a general study regarding all functions and aspects of STAR. The company has seven
functional departments through which it was operating. It is found that company has a good
working environment and cordial relationship is maintained between all departments for the
smooth functioning and achievement of the organization goal of maintain the companys brand
image among the customers. Porters Five Forces Model is done in the period of study to analyze
the threat of the entry of new competitors and substitute products or services, the bargaining
power of the customers and the suppliers and the intensity of competitive rivalry. SWOT
analysis is also done to analyze the Strength, Weakness, Opportunities and Threats of the
organization.
Star has made are of most advance technology and up to date knowledge. Fully automated
production has been put to use long time ago U.S made microprocessor controlled machinery
is used to for production. Star received the ISI mark for quality and ISO 9002 certification for
quality by TUV Germany, and ISO 14001: 2001 certification. All the products are of
International standard. At present company is able to later about 10% of the market
requirements. In order to later the complete needs the company is planning to increase the
production level to maximum extent possible. The company is planning to increase the present
product level of Dubai units. The research and development team of STAR group is engrossed
in developing new product for the international markets. This has helped them to gain valuable
insight that prompt the group to search alternative ways for manufacturing better products in a
cost effective manner.
CHAPTER VII
BIBILIOGRAPHY
BIBILIOGRAPHY
Books Referred:
Philip Kotler, Jha, and Koshy: Marketing management.
Roger. A. Kerin, Steven. W. Hartley, Eric. N. Berkowit, William Redlius: Marketing
Management.
Websites Referred:
www.wikipedia.com
www.stargroupind.com
www.google.com
Journals:
Star Plastics Company Magazine.