TRAINING REPORT

UNDERGONE WITH

By SOHAGIYA MITESH G
DEPARTMENT OF BACHELOR OF BUSINESS ADMINISTRATION Submitted To

PROF. V.B.SHAH INSTITUTE OF MANAGEMENT & R.V.PATEL COLLAGE OF COMMERCE AMROLI 394107 JUNE-2003

CONTENT
1 Acknowledgements 2 Preface 3 History Of Organization 4 Introduction Of Royal Sales 5 Location Of Organization 6 Organizational Structure 7 Growth Of The Organization 8 Organizational System 9 Future Plans & Policies 10 SWOT Analysis 11 Conclusion

ACKNOWLEGEMENT
It is an occasion of great pleasure and a matter of deep felt of personal satisfaction to present this complied statement of the industrial training undergone at an organization Royal Sales. My first thanks goes to Mr. J.B.Shah who has organized such a programmed as known as the summer training in the summer vacation after the second year. My second thanks is for Mr. Rakesh patel and Mr. Daxesh patel who is the owner of the organization for his help in giving all kind of information related with organization and its policies. Following are the members of the management of the organization who help me in preparing the report. 1 2 I would like to give heartily thanks to Mr.Soni and Mr.Ved for giving me opportunity for industrial training. Thanking you Sohagiya Mitesh (S.Y.B.B.A)

PREFACE
With the great pleasure, I under take the writing of this report of the industrial training because it is a matter to be proud of that, I am the student who is presently undertaking education in the field of business administration which is being offered at graduation level in only six collage in Gujarat. As the student of management, I must be encouraged by the growth and rapid development taken place in the corporate sector in India. Still recently, the management is growing baby. Keeping in mind the ever development field of management and the great demand for the management cadre in our country. The university has arranged for a full paper on industrial training in the field of Marketing management, Personnel management, Financial management and Production management at the end of fourth semester. Thus it is my moral and obligatory duty to take this part of my study with great enthusiasm and seriousness and give it is the due importance. And for this purpose, I had taken training in the Royal Sales. Another advantage of this training is to get the practical knowledge related to the handling of an organization at the study of management, which is very much important. Sohagiya Mitesh

Brief History of Royal Sales

The organization was established in 1st MAY, 1968 at that time it was only a service station at surat station area. After getting a most great technical experience, he starts The Royal Sales before ten years ago, up to 1998 he sales low prices and normal electronics products. In 1998 he got dealership of different company. Mr. Rameshbhai Patel, the sole owner of Royal Sales showroom, and hailing from remote village from Gujarat, he had not basic education. At the time of started his business he having only goodwill as his initial capital. Due to his hard work and dedication he was able to mark astonishing progress and in 1998 he started a showroom of electronics product. By hard working and provide a best service and guidance to customer and covered much part of the market. He helped by his both son and employees, he would be aware by people of his area and before six month ago he started a branch of his showroom at parle point, with the help of his both son and assistant.

Introduction of Royal Sales

Royal Sales Corporation is the dealer of products of the electronics items. It has contact of different types of Electronics Company in all over Gujarat. Mr. Rameshbhai Patel is the owner of the organization. The shop is at Surat and it started in 1968 with Mr. Rameshbhai Patel. The owner Mr. Rameshbhai Patel has two sons. . Mr. Rakesh
is a graduate in commerce whereas Mr. Daxesh is a diploma holder in technical line in Pune.Mr. Rakeshbhai Patel, is the manager of The

Royal Sales at Ghod Dod Road and Mr. Daxeshbhai Patel, is the branch manager of The Royal Sales at parle point.

Location of Organization
Generally, the electronics stores are located in central place in big cities. The buyers who visit the central market can make their purchases without much wastage of time. The bigger electronics stores offers a great no. of amenities and attraction to the customers. The Royal sales is not located in central place of surat but the location of this store is likewise great attraction to the people than other stores in this area, Where the store is located there are higher and middle class families and this electronics store is totally based on higher-middle class person, There fore majority of people are attracted by this store. Royal Sales is situated on Ghod Dod Road. So that people of all over city and near city who visit the store. They do not have the face any problem for transporting and traveling. The Royal sales provides many amenities to the people and their customers like restaurant facilities, garden for children, slides and jumping roof for children and various from of recreation provides to the customers. The owner of the organization chooses an ideal location of the time of launching the store. The management of Royal sales is also followed the following points which governs the plant location. Proximity to market Easy excess to material supply Transport and communication facility Available of cheap and skilled workers Availability of power and water Climate of region Managerial preference

These are the major points which should be considered by each entrepreneur before choosing the location and we find that Mr. Rameshbhai has done so for location of Royal sales and electronics.

Organizational Structure
The Royal Sales is form of large scale business. In below structure each and every person has their own responsibility. They workout properly for success of the business the managing director investigates or inspects all the activities of the shop and maintain it. In any company and electronics store, the manager is responsible for formation of policies and programs and revision in the light of actual experience. After the managers, there are assistant in the line of authority. They are incharge of a particular section. Below the manager there are assistants and technicians in the line of authority in the organization, such the organizational structure is given below.

Mr. Rameshbhai Patel

(Managing Director)

Mr. Rakesh Patel

(Manager)

Mr. Daxesh Patel

(Branch Manager)

T1

T2

T3

T4

T5

A1

A2

A3

Assistant:A1 A2 A3 Mr. Bhargav Mr. Prafful Mr. Jatin

Technicians:T1 T2 T3 T4 T5 Mr. Vijay Mr. Rajesh Mr. Harish Mr. Vishal Mr. Hitesh

Growth of the Organization

Year 2000-01 2001-02 2002-03 Sales(Round figure) 40,00,000 60,00,000 1,40,00,000

15,000,000.00 10,000,000.00 5,000,000.00 0.00

Sales(Round figure)

2000-01

2001-02
Sales(Round figure)

2002-03

The sales proportion of different type of companies

Company THOMSON SAMSUNG PHILIPS THOSHIBA SHARP WHARFDALE JAMO PANASONIC

Sales (in 2002-03) 9705759 42730 1686020 1771885 495000 232708 199028 91670

Sales proportion of co.

0% 12% 12%

3% 2% 1% 1%

69%

THOMSON SAMSUNG PHILIPS THOSHIBA SHARP WHARFDALE JAMO PANASONIC

Organizational System
In every organization or in company, there are some organizational systems on which the company or organization work. The total handling of the business based upon this system. The total control of the business mainly depends upon these four systems: Finance system Marketing system Personnel system Production system

These four systems depend upon the nature and type of the business. Here the nature of business is like wise electronics store where everything and goods are available at retail price of the company.

Marketing Introduction:The marketing concept emerged in the mid-1950s and challenged the preceding concepts. Instead sense-and-respond philosophy, instead of hunting, marketing is gardening. The job is not to find the right customers for your product, but the right products for the Industrial Revolution were that of the manufacturer who said, This is what I make, wont you please buy it. The call of the manufacturer who said, This is what I make, wont you please buy it. The call of the manufacturer who said, This is what I make, wont you please buy it. The call of the information Age is the consumer asking, This is what I want, and wont you please make it. The marketing concept holds that the key to achieving its organizational goals consists of the company being more effective than competitors in creating, delivering, and the mid-1950s and has been expressed in many colorful ways.

Meaning:Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of idea goods and services to create exchange satisfy individual and organizational goal. We see marketing management as the art and science of choosing target market and getting, keeping, and growing customer through creating, delivering, and communicating superior customer value.

Market:-

A market consist of all the potant9sl customers sharing a particular need of want who might be willing and able to engage in exchange to satisfy need of want.

Selling:-

Such that the Royal Sales makes the selling of the electronic items they are the dealer of the electrons items They retails that product which manufactured by the different company

MARKETING MIX:Marketing mix is developed to satisfy the anticipated need or the identified the market. A brief description of the four element of marketing is:

Product

A product is anything that can be offered to a market to satisfy a want or need. Products that are marketed include physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.

Product variety:The Royal Sales is the retailer and it sales the electronics items such as TV., MP3, VCD, DVD, PROJECTION T.V., HOME

THEATER SYSTEM, AMPLIFIERS, SPEAKERS, AND PROJECTOR. And they have wide range of that product according to company and output wise.

Quality:They sales only the qualitative product, they interested to sales only that product which have good quality and brand.

Design:The Royal Sales is not a producer but the retailer so that the product is decided by the company.

Brand name:The brand name is not a ultimate thing which makes sales increase. Thats why they doesnt concentrate on brand of company but they suggest to the customer about the quality and service of the product.

Packing:Normally the packing are done by the company. They only makes a testing at the time of sales of product and makes a further packing as same as company packing.

Sizes:In the electronics item customers are not interested in the size of the product but they are interested in output of the product and the Royal Sales has different output wise product and they offer different product according to customer require and interest.

Services:The Royal Sales is well-known about service they provide best services before and after sales which we indicate in The Chapter of Service.

Warranties:Warranties are facilitated by the producer to their customer and The Royal Sales is the retailer so that whatever warranty offered by the company it indirectly offer to the customer.

Returns:-

When the put order and get back the order first of all they check the order and, if there is any defective or not according to order is return to the company.

Price
Price are a key positioning factor and must be decided in relation to the target market the product-and-service assortment mix, and competition. All retailers would like to high volumes and high gross margins. They would like high Turns x Earns, but the two usually do not go together. Most retailers fall in to the high markup, lower-volume group or the low-markup, higher-volume group. Within each of these groups are further gradations. Retailers must also pay attention to pricing tactics. Most retailers will put low price on some items to serve as traffic builders or loss leaders. They will run storewide sales. They will plan markdowns on slower-moving merchandise. Some retailers have abandoned sales pricing in favor of everyday low pricing (EDLP). EDLP could lead to lower advertising costs, greater pricing stability, a stronger image of fairness and reliability, and higher retail profits.

Discount:They are interested to sales the product on its MRP price, yet sometimes they gives discount on product on some special occasion and festival.

Payment period:They gives time to the customer to check the product is three days and then collect the payment by Cheque or Cash. Sometimes they take advance in some special product.

Promotion
The promotion planner should take in to account the type of market, sales-promotion objectives, competitive conditions, and each tools cost-effectiveness.

Sales Promotion:-

We can distinguish between manufacturer promotions and retailer promotions. The former are illustrated by the auto Industrys frequent use of rebates, gifts to motivate test-drives and purchases, and high-value trade-in credit. The latter include price cuts, feature advertising, retailer coupons, and retailer contests or premiums. We can also distinguish between sales-promotion tools that are consumer-franchise building, which reinforce the consumers brand preference, and those that are not. The former impart a selling message along with the deal, as in the case of free samples, frequency awards, coupons when they include a selling message and premiums when they are related to the product. Sales-promotion tools that are not consumer franchise building include price-off packs, consumer premiums not related to a product, contest and sweepstakes, consumer refund offers, and trade allowances.

Advertising:Advertising is any pais form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor.

Advertising Media:For effectiveness of advertisement Royal sales adopt the medias like Newspaper, T.V. channel, Hoardings, Charity show, curriers etc. and Royal decides the budget for media

Sales force:They believe to sales the best they always try to satisfy the customer so if customer is not interested in the product then they do not apply sales force activities.

Public relation:They have high goodwill in the market because of their salesmanship and service. The people knows about them that they provides best service before and after sales and also make aware to customer that, what they have to purchase according to their needs. Because of that salesmanship and service they have good relation with public.

 Place
Channels:1. Physical flow Supplier Transporter Warehouses Manufacturer 2. Title flow Transporter Warehouses Supplier Transporter Customers Dealer (Royal Sales)

Manufacturer Manufacturer Dealer (Royal Sales)

Bank

Customers

Dealer (Royal Sales)

Bank

Customers 3. Payment flow Supplier

Bank

Coverage:The Royal sales have good awareness in the market. it has great experience it covers much part of market in surat. It covers the area like Ghod Dod Road, Athwalines, City light, and Rander.

Location:Location of the organization is best; both shops are line on the Road, One at Ghod Dod Road and Second at Parle point. So that they can easily got the customer has no much effort should be done.

Inventory:Normally the electronics store has not to keep much inventory when stock will be come near to finish they put order for the products. They always put multiple order for low cost item and unique order for high price product.

Transport:They have good place for warehouse so that they can easily import the product from different company from different cities and also fulfill the customer requirement.

Target Market

A retailers most important decision concerns the target marker. Until the target marker is defined and profiled, the retailer cannot make consistent decisions on product assortment, store dcor, advertising and media, price and service levels. Royal Sales consist the people who are normally middle class family and also higher class family because they have both high segment & low segment product which comfortable for both category.

Market Research
Royal sales has not provides any special employee for market research but the existing staff research themselves from outside and from competitors. By this they can increase the facilities for customers. They also use the blank form of suggestion. In which customer suggest they about good and bad thing or matter or any difficulty faced by them. The management serve that suggestions and try to make better themselves from what they are.

Competition
A Royal sale is the retailer and Competition in retailing is no longer between independent business units but between whole systems of centrally programmed networks competing against one another to achieve the best cost economies and customer response. So that they believes in selling the best product to the customer and for that they also guide to their customer about the product and suggest them according to their need what they have to actually buy and proper response. Such they make compete with the rivals.

Retail Market

Retailing includes all the activities involved in selling goods or services directly to final consumers for personal, nonbusiness use. Retailers can be understood in terms of store retailing, nonstore retailing, and retail organizations. Like all marketers, retailers must prepare marketing plans that include decisions on target markets, product assortment and promotion, and place. These decisions must take into account the major trends in retailing.

Distribution network
Royal sale is the part of the Distribution network they are the whole seller as wall as retailer of the electronics items.

Finance
Meaning:We all are aware that in Economics, the four factor of production considered are Land, Labour, Capital and Organization. The term Capital can also be referred to as Finance. It represents the money that is required to be brought in to finance or fund an activity. Finance is regarded as the life blood of a business organization. The Financial Management study about the process of procuring of financial resources and its judicious

utilization with a view to maximizing the shareholders wealth, Efficient management of every business enterprise largely dependant on the efficient management of his finances.

Finance System:Finance system is broadly concerned with the acquisition and use of funds by a business firm. Finance management is an integral part of the job of managers, who are involved in planning, allocation of resources and controlling. The responsibilities are dispersed throughout the organization. Finance management is mainly concern with the following points: Nature and type of business Size of the business Growth of the business The mix of the firm financing Composition of firm asset Control on financial affairs and analysis of plan

Need for long term finance:Any business organization needs finance mainly for two reasons:o To finance long term requirement o To finance day to day short term working capital requirements. The long term requirements for finance include funds required for Setting up of the firm Expansion Modernization Diversification Replacement of existing machine. Other similar capital expenditure decisions.

Capital structure:The Royal Sales is invested just 5 lacks at the initial time and borrow 3lacks from the financial institute. The organization all of its transaction are on credit base up to

now they are not invest a single rupees yet they have make a huge business growth specify in the chapter of growth. The main capital which they are invest is their Goodwill.

Source of Finance:Normally the retailer has not invested much more money for the firm because they are the part of channel of distribution, yet sometimes they have to invest some finance. The Royal Sales has some source of finance as under which they use when they have to need of finance.

Trade credit
Trade credit refers to the credit extended by the suppliers of good and service in the normal course of business. Delaying or postponing payment to suppliers is a major source of financing Working Capital requirement. Is a common trade practice that business house dont make an immediate payment for the good delivered or services rendered to them. Payment is made only after an agreed period of time which varies from industry to industry.

Bank credit
Working Capital finance is provided by the Bank in three ways: (1) Cash Credit: -

The cash credit facility is a good source for the Royal Sales and it is given by the bank of Baroda. (2) Working Capital Term loan: Advance is give by banks for 4-5 years which are repayable in yearly or half-yearly installment.

Commercial bill market

Commercial paper is a short tern promissory note sold by highly rated companies for their working capital needs. It is issued on a discount but payable at face value at the time of maturity. Commercial paper is an unsecured instrument. There is no limitation on the end use of funds acquired through

commercial paper. They are regulated by RBI. It can be issued for periods ranging from 15days to one year. The minimum size of an issue is RS. 25 lacks and the minimum amount of subscription is RS5lacs by any investor.

Inter-corporate deposit:Inter corporate deposit is the alternatives for the organization and it is well aware in the businesses but The Royal Sales is rarely use such source.

Friends:Friends are also the source of getting finance for the Royal Sales, when they have a need of immediate cash then, they are use this source.

Working capital mgt.:Working capital signifies money required for day to day operations of an organization. No business can run without the provision of adequate working capital. The requirement of working capital may differ from organization to organization.

Cash mgt.:The Royal sales has not need immediate they good relation with the company and they got proper credit yet they have to give some advance payment for special product to the company. In such case they takes advance from the customer and in other case, They makes normally cash or near by cash transaction with the customer. The Royal Sales has also good relation with the bank and because of their timely rotation of the money, the bank also give them the facility of BOD.

Receipt &Payment:The organization makes receipt from the customer in the form of cheque as well as cash and makes payment by cheque and bill to bill.

Inventory:They does not put much inventory as a stock whenever, there is any need of good then they puts a order and yet get it very soon according to distance of company.

Credit Policy
They make such policy that, they gives three day credit period to their customers. When the transaction is about a special product then they also takes advance from the customer. Sometimes they give a credit period more than three days to their permanent customer and friends. They have given 21 days as a credit period by the companys and also give a permission to keep a certain goods up to specified amount as inventory, if the organization want to kept more than permissible stop then they have to paid that amount within 21 days. In some cases when the order about the special product then they also have to make a advance payment.

Services
PRODUCT OFFRED IN THE MARKET: THOMSON Televisions MP3 VCD DVD Projection T.V. PHILIPS Televisions Mobile VCD THOSHIBA Televisions Projection T.V. JAMO Widest range of speakers (according to looking & output)

Home Theater System. DENON Amplifiers (Wide range) BARCO Projectors SHARP Projectors CINERAMA Professional Theater Public Address System WHARDALE Speakers (Wide range) BLAUPUNKT Stereo Music (Car) Car Television KELVINATOR Electrolux (refrigerator) Washing machine HITACHI Air Conditioner

FACILITY PROVIDES TO THE CUSTOMERS:Pleasant most common and required facilities and services provide by Royal Sales & Electronics are as follows: Warm welcome Wide rang of products Centrally A.C. system Convenient presentation to select goods Most competitive rates Excellent quality Special Demo room to show the effect of products Cool and pleasant atmosphere Wide and specious Light music for enjoyment

It provides credit card facility Both shop have their own specialty Best sales after service Free home delivery service Well-manner service Occasional scheme Occasional decoration in the store

Personnel
Personnel System:Royal sale has a well trained staff. It has good technicians each and every technician has effective skills of all the items. They represent their skills towards the maximum sale of goods. If there is any problem, then the can say to his superior or manager. Superior or manager takes immediate action on it. They provide the incentive to their technicians by given them training they gives them training such as that they put the customer in the center and makes them satisfy the customer. They pay quit good salary and also other welfare facility to the employee. They create the environment such likes family. They also help them in their personal problem. They also know that each and every person is lack at somewhere so they also give them friendly guidance to their employee. Each and every time they always makes eye on them. They also takes care about that they have give advice such that the fillings of employee is not hurt. If any types of complain about the employ from the customer than they Makes discuss with them about that and try to learn that how to behave with the customer.

Training & Development of employee:The Royal sales normally require technicians, when they hired the person from the society he might be has not skill and technique so that the organization give them proper training and also about that how to make a sale and taking care of customers.

Relationship:Relationship has the aim of building long-term, mutually satisfying relations with key parties-customers, suppliers, and distributors-in order to earn and retain their long-term preference and business. The ultimate outcome of relationship is the building of unique company asset called a network. So

that they makes good relationship with customer as well as company.

Relationship with customers:The main aim of the Royal sales is to satisfy the customer so that they have good relationship with the customer and they got many permanent customers who trust on the organization. They always have given according to their requirement and proper product by Royal sales.

Relationship with company:The Royal sales have also quite good relation with Consultant Company. They make timely payment to them and always try to increase sales and show the result of their effort to the company

Future Plans & Policies

Every organization has their own plan & policies for future Royal Sales & Electronics has also future plan & policies, which are given below: Royal Sales & Electronics is interested to sales new and modern most technical electronics products. Royal Sales & Electronics is going to remove credit term and want to make sale on cash.

They think about give professional theater on rent.

SWOT Analysis

STRENGTH High quality with accept ional cost High social acceptability of distribution Strong image of the organization Goodwill of the organization is also high Best location of the organization WEEKNESS Lack of co-ordination in branches Lack of motivation to the employees Labour misunderstandings OPPORTUNITIES High scope of export in the world countries Scope for diversification THREATS Facing high competition from small scale business units Operation and expansion of similar pose competition

Conclusion
So far as my study is concerned electronics is the company, which thinks about all persons, connected with it whether it is a customer or retailers or dealer or employee. The company is doing those things, which can be benefited to all persons concerned with it. It thinks about consumer by providing the best quality item. The organization has done its best level to satisfy the need of the customers. The organization has owned a very good credit. And its the market also. The shop has a very good coverage of market even at the time of the deciding of the product demand.

Bibliography
Marketing management Finance management B.S.Shah Other data and statement Sales Royal kotler