Organisation Study Report on Star PVC pipes & fittings Internship 2011 CONTENTS CHAPTER

CONTENTS PAGE NO EXECUTIVE SUMMARY 2 Chapter I INTRODUCTION 3 1.1 Industry

Profile 4 1.2 Company Profile 5 Chapter II STRUCTURE OF THE ORGANISATION 11 2.1
Organizational Structure 12 2.2 Organizational Chart 12 2.3 Organizational Outlook 13 2.4 Duties
and Responsibilities of Dept. Heads 13 Chapter III FUNCTIONAL DEPARTMENTS 16 3.1
Finance Department 17 3.2 Accounts Department 18 3.3 Marketing Department 18 3.4 Human
Resource Department 26 3.5 Production Department 27 3.6 Purchase Department 29 3.7
Systems Department 31 Chapter IV PORTERS FIVE FORCES MODEL 32 Chapter V SWOT
ANALYSIS 40 Chapter VI FINDINGS AND SUGGESTIONS 43 Chapter VII CONCLUSION 45
Chapter VIII BIBILIOGRAPHY 47 Ramaiah Institute of Management Studies1SBS Swiss Business
School

2. Organisation Study Report on Star PVC pipes & fittings Internship 2011 EXECUTIVE
SUMMARY The organizational study was conducted at STAR Plastics, Thrissur, Kerala.
Theobjective 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 anorganochlorine, which was first patterned in 1913
by Fritz Klatte. However, its developmentfor 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 ofPVC. By the early 1950s PVC was second only to polythene, as the
most important syntheticproduct in Germany. It is now the single largest use for chlorine today,
using about 1/3 of allglobal production. About 40 million tons of chlorine is produced by the
chemical industryevery year. PVC development was part of the huge expansion of the chlorine
industry afterthe Second World War. PVC, Dichloro Diphenyl Trichloroethane (DDT) and
ChloroFluoroCarbons (CFCs) are all products of post war boom in the chlorine industry.
Currentlythere are over 11,000 oregano chlorines now in commercial use. Organo chlorines are
usefulto 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 Indiato receive ISO
9002 certification. While globalization and economic slowdown in the worldmarkets threw up new
challenges the STAR group is busy chalking out plans to translatethese challenges in to
opportunity. The company is going to make a centralization system ofthe software network that
the progress of work at any levels, at any units, at any centers canbe viewed from the corporate
office itself. Each and every aspect of the business can bechecked from the corporate office.At
present company is able to later about 10% of themarket requirements. In order to later the
complete needs the company is planning to increasethe production level to maximum extent
possible. The company is planning to increase thepresent product level of Dubai units. The
research and development team of STAR group isengrossed in developing new product for the
international markets. Ramaiah Institute of Management Studies2SBS Swiss Business School

3. Organisation Study Report on Star PVC pipes & fittings Internship 2011 CHAPTER
IINTRODUCTIO N Ramaiah Institute of Management Studies3SBS Swiss Business School

4. Organisation Study Report on Star PVC pipes & fittings Internship 20111.1Industry Profile
Plastics, in the modern meaning of the word, are synthetic materials that arecapable of being
formed into usable products by heating, milling, molding andsimilar processes. The term is
derived from the Greek plastic, to form in simplestterms; plastics can be described as resins in
their molded form. The wonders of plastics cut across all sectors of society. It is a material
ofchoice due to its versatility, its physical strength, its economic viability; its easyprocess ability
and also its attractiveness and durability of all weather condit ions.With the globalization of Indian
economy and television entering into homes andtiniest villages and communications demand for
the materials for suitable functionaluse more economic packing, durable all weather products has

meant increasingdemand for plastics. Packing of cement bags, the end user is demanding
plastics instead ofconventional jute, because it prevent transits loses and wastages. The hilly
regionsof East India or drought prone districts of Rajasthan, Gujarat, and Tamil Nadudemand auto
molded tanks in thousands each day. The agriculturists of HimachalPradesh insist on plastic pipes
for irrigation to their farms, the floriculturists ofKarnataka and Maharashtra cannot thrive without
ultraviolet stabilized polythenewide width films for huge tunnels and green polymers consumption
and import. The Plastic industry in India has made significant achievements ever since itmade a
modest but promising start by commencing production of polystyrene in1957. The potential
market has motivated Indian entrepreneurs to acquire technicalexpertise. Achieve high quality
standards and build capacities in various facts of thebooming plastic industry. Phenomenal
development in the plastic machinery sectorcoupled with matching development in petrochemical
sectors, both of which Ramaiah Institute of Management Studies4SBS Swiss Business School

5. Organisation Study Report on Star PVC pipes & fittings Internship 2011supports the plastic
processing sectors, have facilitated the plastic processors tobuild 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, foreigninvestments, easier across
to technology from developed countries etc. have openedup new vistas to further Indian plastic
industry are exported to over 150 countriesround the globe with major trading partners being
USA,UAE, Italy,UK,Russia,Honkong, Germany etc. The plastic processing sector comprises of
over 30000 unitsinvolved in producing a variety of items through injections molding, blow
molding,extrusion and calendaring. The capacities built in most of this industry coupled
withinherent capabilities have made us capable of servicing the overseas markets.
Thedevelopment of plastics took place in 1920s with the introduction of celluloseacetate,
polyvinylchloride and nylon. Polyethylene evolved out of the need for a superior insulating material
couldbe used for such applications as radar during World War II. The decade of the1950s saw
the introduction of poly propylene and the development of acetyl andpolycarbonate. 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 Profilea)
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, Ramaiah
Institute of Management Studies5SBS Swiss Business School

6. Organisation Study Report on Star PVC pipes & fittings Internship 2011Mullurkara that is
20kms away from Thrissur town, the cultural capital of Kerala. In1988, star became the number
one PVC pipe fitting manufacture in south India it hasreceived the best ISI mark for quality. In
1994 star began the production andmarketing of flexible hoses under the brand name STAR
FLEX. In 1998 takingadvantage of the wings of globalization star started star impex and forayed
into theglobal market. Growth being as the key strategy the visionary Mr.P.K.Paul nurturedstar
plastics into a corporate level. After the demise of Mr. P K Paul his eldest sonMr. Bobby Paul took
the charge of the chariot. His brother Mr. Anto Paul alsoassists in the day to day activities of the
company .Presently the group consists ofvarious companies like Star Plastics, Star Flex, Shine
Star, Star Exporters& FinePolymers, A new group venture of star group of companies for the
purpose ofexporters In the year 2000, to take on the challenge of globalization, star set up a
coreteam and applied core ISO certification. In August 2001, star became the first PVCfittings
manufactures in south India to receive the IS O 9002 certification. Starplastic is the market leader
in Kerala, Tamilnadu & the market challenger in AndhraPradesh and Karnataka. The company
has made its presence significantly in MiddleEast market having a branch office at Dubai. It is a
multi -core, multi-ProductCompany which has been deeply involved in the manufacture,
distribution, sale, andinstallation and servicing to bring the customer satisfaction and
socialresponsibilities. In the last one decade unparalleled growth was witnessed in star gr oup
ofcompanies to emerge as a leader in the PVC fitting and to diversify into themanufacture of

suction hoses, drainage fittings and PVC pipes. Star plastics are agroup of companies with a
turnover of 30 crores per annum and with manpowerstrength of 450 employees including 50 high
caliber professionals. It has a32%growth due to the young and dynamic MDs expansions and
growth plans. Thecompany increased its production capacity over 50% in just two years incurring
hugeadditional investments. Presently it is enjoying the benefits. At the end of currenthalf year a
growth rate of 35% when compared with the last year is witnessed. The companys operations
include manufacturing of PVC fittings and alliedproducts in clearly defined core business areas at
home and overseas. The star groupof companies is the single largest plastic industry in private
sector over the years, Ramaiah Institute of Management Studies6SBS Swiss Business School

7. Organisation Study Report on Star PVC pipes & fittings Internship 2011star group has steadily
developed in to a professionally managed companycomprising of 8 manufacturing unit in 3
production centers wit h a total installedcapacity of 3850 meter per annum- 8divisions and
effective centralize supportservices wholly dedicated to the most existing standards of quality and
customerservices, constantly motivated by the need to ensure total product satisfacti on.b) Star
group of companies:Star Plastics: - star plastics, the parent company of the group was
incorporated in1983, and within these 21yrs it has grown up as one of the largest pace
fittingsmanufacturing companies in India and its products are approved by these authorities.Shine
Star: -shine star is another unit of star plastic, which is manufacturing pipefitting. This has been
started as another manufacturing fitting unit.Star Flex: - star flex is totally a new venture,
manufacturing flexible s olution anddelivery hoses ranging from to 4 sizes. As on today the
above companies aremaking 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 pipefittings. 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 believedby its founder and carried over
across the years, it has sailed hitherto and for thefuture such as S - Service T- Transparency A Accountability R - Reliabilityd) Star which means: Ramaiah Institute of Management Studies7SBS
Swiss Business School

8. Organisation Study Report on Star PVC pipes & fittings Internship 2011 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.e) Vision, Mission and Quality
Policy:Our vision is to maintain the hegemony as the most reliable provider of high quality
PVCproducts to meet the diverse requirements of potable water distribution, domestic
plumbing,bore wells and lift irrigation purposes. We aim to make each of our products a paragon
ofquality and technical excellence. Through our constant Endeavours of research andinnovation
we strive to come up with new products that help architects and builders keepahead of the
timesMission: - serve water projects, construction activities and agriculture on global level
toensure customer satisfaction.Quality policy: To manufacture and market goods, which comply
with the consumers requirements. To achieve customer satisfaction is the basic philosophy of the
organization. In the last one decade, unparalleled growth was witnessed in STAR group of
companiesto 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
of75 cores per annum and with a manpower strength of 450 employees including 50 highcaliber
professionals. Ramaiah Institute of Management Studies8SBS Swiss Business School

9. Organisation Study Report on Star PVC pipes & fittings Internship 2011f) 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 thestates. STAR
PVC pipe fittings are manufactured from the finest grade PVC resin trusted andacclaimed all over
the-country for quality. Due to high tensile strength and reliability used inindustry, homes etc.
STAR fittings are available in above 10 shapes and measures vary from 20mm to200mm. These
are also available in 3 different colors. Injection modulated STAR PVC pipefittings confirm to ISI
specification and assure totally safe, non-toxic water for all purposes.g) STAR-PlasticProducts:The company concentrates on the manufacturing of a wide range of PVC pipes and
fittingsand allied products. Their products are basically categorized as STAR Drainage fittings BS
4514 STAR Pressure Fittings BS4344 STAR Pressure Fittings STAR SWR Fittings STAR Flex
section & Delivery Hose STAR Solvent cement STAR PVC pipesh)Production centers: STAR
plastics Mullakkara, Thrissur STAR plastics, the parent company of the group was the
incorporated in 1983, andwithin these 24 years it has grown up as one of the largest PVC
fittingsmanufacturingcompanies in India and its products are approved by ISI authorities.
Manufactures the PVCpipe fittings, drainage fittings, SWR fittings, Pressure fittings, solvent
cement. Lisna Inc. issituated in same premise. Shine Star Minaloor, Thrissur Ramaiah Institute of
Management Studies9SBS Swiss Business School

10. Organisation Study Report on Star PVC pipes & fittings Internship 2011 STAR manufactures
the PVC pipe fittings, SWR fittings, Pressure fittings. Also manufactures PVC granules mainly
master batches. SILVERSTAR, NEW STAR, FINE POLYMERS, LISNA TECH are situated in the
same premise. Star Flex, Velappaya, ThrissurSTAR Flex manufactures the PVC flexible hoses,
suction and delivery hoses ranging from0.75 to 4 inch diameter. Star Pipes, Choolissery, Thrissur
STAR pipes manufacture the rigid PVC pipes for plumbing and electrical purpose.Its a semiautomatic manufacturing unit which manufactures rigid PVC pipes ranging from20mm to 200mm.
Star pvc pipe fitting (p) ltd, sri perumbathur, chennai Manufactures the rigid PVC pipes for
plumbing and electrical purpose its a semi-automatic manufacturing unit which manufactures
rigid PVC pipes ranging from 20 mm to200mm.This unit does the production for TAMILNADU and
KARNATAKA. Star Implex industries llc, Dubai, UAE Manufactures the rigid PVC pipes for
plumbing and electrical purpose its a semi-automatic manufacturing unit which manufactures
rigid PVC pipes ranging from 20 mm to200mm. also manufactures the PVC pipe fittings and
solvent cement. This unit does theproduction for the Middle East Asia, Africa and Europe. Each
division is self-reliant in itsactivities of research and development, Manufacturing and marketing,
now moving for totalautomation and integration. STAR group of company is structured in to
business unitscomprising synergistic group of responsibility centers, division backed up by an
extensivemarketing infrastructure and front line support services. Ramaiah Institute of
Management Studies10SBS Swiss Business School

11. Organisation Study Report on Star PVC pipes & fittings Internship 2011 CHAPTERII
STRUCTURE OF THE Ramaiah Institute of Management Studies11SBS Swiss Business School

12. Organisation Study Report on Star PVC pipes & fittings Internship 2011ORGANISATIO N2.1
Organizational StructureThe STAR group follows absolute dedicated approach. The organization
of its manufacturingoperations is based on product divisionalisation in to group of products in
which are similarin technology or manufacturing process. Each group is constituted by divisions or
profitcenters. Each of these group, are led by absolute manager. A central manager leads
thecorporate function. Some of these functions in turn are reported to the managing director.2.2
Organizational Chart Ramaiah Institute of Management Studies12SBS Swiss Business School

13. Organisation Study Report on Star PVC pipes & fittings Internship 2011 DIRECTOR MGDIRECTOR GENERAL MANAGER HR FINANCE PURCHASE PRODUCTION MARKETING
ACCOUNTS SYSTEM ASST FIANCE PURCHASE PRODUCTION MARKETING CHEIF

MANAGER MANAGER MANAGER MANAGER MANAGER ACCOUNTANT (SYSTEMS)2.3

Organizational OutlookManaging Director - BOBBY PAULOther Directors - Anto Paul & Rosy
PaulGeneral Manager - K.B. Suresh KumarMarketing Manager - C.L.GeorgeFinance Manager Biju ThomasAccounts Manager - A.C. ChummarEstablished in - 1984Main production - PVC pipe
fittings and adhesives Ramaiah Institute of Management Studies13SBS Swiss Business School

14. Organisation Study Report on Star PVC pipes & fittings Internship 2011Raw materials for
production - Resin and other chemicalsProduction range - Wide range of productsPresent
production - Best in southern India with 85 percentOf total productionNumber of machines - 202
machines with generation backupNumber of office staff - 50Number of workers at factory 400Trade discount - 50%Special discount forPayment within one week - 5%2.4Duties and
Responsibilities of Departmental Heads 1) Finance Manager He is responsible for financial
matters in the organization. He prepares financial plan. He assesses the financial needs of the
organization and sources of the finance. He should be an expert in the field of financial
management. He should know different tools used in the financial management ratio analysis,
fund flow analysis, cash flow analysis, Budgeting etc. All these are necessary to prepare a sound
financial policy for the organization. He is also responsible for financial planning, raising
necessary fund, controlling the use of funds, appropriation of profits etc. Other functions include
financial forecasting and planning, procurement of funds, investment decision, management of
income, management of cash, deciding upon borrowing policy, negotiations for new financing,
analysis and appraisal of financial performance, advising the top management, co-coordinating
and control, helping in valuation decisions, and tax administration. 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. Ramaiah Institute of Management Studies14SBS Swiss Business School

15. Organisation Study Report on Star PVC pipes & fittings Internship 2011 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. 4) Human Resource Manager A human resource manager occupies a very
important position in an organization. The duty of the human resource manager is to recruit and
develop Personnel required by the organization. They are involved in manpower planning,
training, maintenance, compensation etc. The other responsibilities of the human resource
manager are formulation and development of personnel policies, employees training and
development, transfer, promotion, etc., maintaining personnel records of each employee in the
organization, establishment of good relation with employees, effective communication of the
personnel policies and programmers of the management to employees, responsible for advising
line manager, responsible for welfare activities and responsible for solving the problem of
employees. 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:
Prepare purchase budget. Receive purchase requisition, and ascertain the material
requirements. Ascertain the sources of supply. Invite tenders from the approved suppliers.
Select the supplier offering the best terms and conditions. Issue purchase order to the supplier
selected. Ramaiah Institute of Management Studies15SBS Swiss Business School

16. Organisation Study Report on Star PVC pipes & fittings Internship 2011 Follow-up the
purchase order to avoid any delay in delivery. Receive goods received note and the inspection

report. Return the material which are not according to specifications or secure adjustment with
the supplier. Verify the invoice with regard to quality, price and other relevant particulars and
pass it for payments. Send the invoice to the accounting section. Ramaiah Institute of
Management Studies16SBS Swiss Business School

17. Organisation Study Report on Star PVC pipes & fittings Internship 2011 CHAPTERIII
FUNCTIONALDEPARTMENTS3.1 Finance Department Ramaiah Institute of Management
Studies17SBS Swiss Business School

18. Organisation Study Report on Star PVC pipes & fittings Internship 2011 Finance department
manages the fund available for the operations of the business, by making a balance between the
fund inflow and fund outflow. The management of all activities related to finance requires
considerable expertise and specialized knowledge of banks, financial institutions, the different
sources of finance and ways to profitability utilize these funds. Finance Manager directly does the
planning, organizing, directing and controlling financial activities in the society.Organization
Structure:- GENERAL MANAGER FINANCE MANAGER FACTORY MANAGER BRANCH
MANAGERFinance department is headed by finance manager. Finance manager reports to the
GeneralManager and in certain strategy and urgent issues directly report to managing director
andtake decisions. Finance Manager works in the coordination with chief accountant,
productionmanager, 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 requirementsand other expenditure with
the help of banks and financial institutions. STAR Plastics dealsall 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:- Low cost of
operation of funds. Efficient receivable management, through acceleration of funds. Faster
sourcing of funds from institutions.Functions of Finance Department:- Ramaiah Institute of
Management Studies18SBS Swiss Business School

19. Organisation Study Report on Star PVC pipes & fittings Internship 2011Finance function is
concerned with all aspects of business operations. It is very difficult to setlimits 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.3.2 Accounts DepartmentAccounts
department deals with day to day book keeping, daily collections, salaries of allemployees, etc.
Accounts department is headed by chief accountant. He is assisted by fourassistant accountants.
In each production centers and marketing branches have an accountantand cashier which does
the daily function at the places Chief accountant works in coordination with finance manager, on
the fund flow issuesand in case of any shortage of cash occurs. Finance manager canalized the
shortage fromfinancial institutions in case of emergency and normal cases, chief accountant
tightness thepayment collections from the whole sellers and other sources. Other main function of
accounts department is tax payments. They deal with thecentral sales tax, K VAT, excise and
other department. Monthly returns are prepared by theaccounts department.3.3 Marketing
DepartmentMarketing department is entrusted with the function of planning and executing
theconception, pricing, promotion and distribution of ideas goods services, to create
exchangesthat satisfy individual and organizational boards. In simple terms the marketing function
iscatered around the customer and his needs.Organization Structure: Ramaiah Institute of
Management Studies19SBS Swiss Business School

20. Organisation Study Report on Star PVC pipes & fittings Internship 2011 MARKETING
MANAGER BRANCH MANAGER SALES EXECUTIVE REPRESENTATIVESMarketing
Policy:STAR Lights to reduce the number of intermediaries, so they have no distributors. Billing

isdirectly done to the wholesalers and retailers. In case of other state sales, its a one throughthe
branch offices. No direct export to any customers. STAR is operating by exporting to thebranch
office at Dubai, STAR IMPEX INDUSTRIES L.L.C. and billing directly to thecustomers. In the case
of logistics the supply of products is done through company ownedfeet 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
Control1.Demand ForecastingDemand forecasting is the main function of marketing in STAR
plastics .It should be donethrough sales force in the company such as sales representatives
sales executives etc.collecting information from customers. On the basis of this information
demand forecastingis to be done.2. Marketing Research Ramaiah Institute of Management
Studies20SBS Swiss Business School

21. Organisation Study Report on Star PVC pipes & fittings Internship 2011Marketing research is
more comprehensive composing all the functions of a marketingmanager that is it covers product,
price, sales, market, promotion, distribution policies. It iscommonly says that marketing research
begins where manufacturing ends. In fact itcommences well before the product is fabricated. It
goes in to operation even before erectingthe factory. It covers analysis of competitive advantage,
market share analysis and newproduct 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 ControlVarious tools used for marketing control are cost
control and a market share analysis. Costcontrol is one task for monitoring the cost of marketing
and it is compared with planned coststandard, so as to identify deviations and take corrective
action. Market share analysis is alsoused for marketing control.Objectives of Marketing:The basic
objectives of marketing are to satisfy human wants. The important objectives ofmarketing are
briefly explained below:1. Customer Satisfaction through Quality Products Marketing activities
aims at achieving customer satisfaction by offering qualityproducts. It is also help more increasing
profit, increasing goodwill, increasing image of theorganization etc.2.After Sales Service This
another objective of marketing company provides after sales services to itscustomers. The service
of the company does not end with process of distribution the companyhas been waited until good
result comes by giving their products to consumer and theyalways rendered their services at the
time needed by the customers. The marketing and sales Ramaiah Institute of Management
Studies21SBS Swiss Business School

22. Organisation Study Report on Star PVC pipes & fittings Internship 2011department keeps
their eyes and ears to open to know changes in the market. The complaintand suggestions if any
are well accepted by the company from their customers. There is anycomplaint 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 tobecome 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 toachieve maximum market share, company will spend more on
advertising and offeringquality 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. Incase of seasonal products like suction
and delivery hose, demand exceeds supply. It tries tolater products to major customers. It is the
main reason for expansion of production facilities.Market Segmentation: Ramaiah Institute of
Management Studies22SBS Swiss Business School

23. Organisation Study Report on Star PVC pipes & fittings Internship 2011 STAR is the dominant
player in the South India. Geographically the market issegmented into five regions and branch
officers are responsible for marketing activities intheir 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. BuildersPresently highly concentrated on the builders, as the
construction industry is booming,appointed two sales executives exclusively for this sector and
have a considerable marketshare 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 productsSales promotion includes short term incentives likes
discounts, free gifts and contests tostimulate sale of products. Sales promotion builds a bridge
between the products andconsumers. In the case of STAR, sales and brand promotion is done by
providing informationabout 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 atthe time of purchasing the product from the company. The
company also provides after saleservices to dealers. It is based on the nature of product the
company offers their dealers withreplacement facility after checking the product. Ramaiah Institute
of Management Studies23SBS Swiss Business School

24. Organisation Study Report on Star PVC pipes & fittings Internship 20113. In the case of sales
force: Company provides incentives to sales force. This includes the activities whichinduce and
motivate sales person. The aim of sales forces promotion is to make the salesmens effort most
effective. The various schemes of sales promotion are: Bonus to sales force. Sales force
contest. Sales meetings, convention and conferences.Advertisement:In the case of STAR
advertisement is the most glamour element of the promotion mix. Itcovers all the activities
connected with the giving of publicity regarding goods and servicesoffered for sale. Advertising is
transmitting through mass media such as television,newspapers, magazines etc.Advertising
Policy:Each potential customer must see an advertisementBrand awareness is not much with the
customers. Brand awareness to be created, its ingrowth stage. Advertisement focused on
creating the brand image and promoting the STARbrand for their entire product. Earlier
advertisement (Hoarding) were exhibited at districtheadquarters and important junctions.
Presently, apart from above mentioned places, at areasof potential customers, each retail and
whole sale outlet etc.Mode of Advertisement:1. Earlier as wall paintings, banners etc. now
changed to huge flex hoardings. Reason for change is: a. Attractiveness. b. New technology
acceptance with change in market.c. Real and clear image of product. d. Quality advertisement
gives better company image. Ramaiah Institute of Management Studies24SBS Swiss Business
School

25. Organisation Study Report on Star PVC pipes & fittings Internship 20112. Newspapers:
heading Malayalam newspaper, The Hindu, Indian Express.3. Website.4. Sponsoring cultural and
institutional programs, management and dealers meet, plasticmanufactures association and
export promotion counsels meetings.5. Presently no visual media.Advertisement Budget:Budget
of advertisement depends mainly on market needs as its the growth stage need topromote the
brand. Once established the budget could be reduced followed poly is 3-5% ofnet
profit.Distribution Channel:Pricing Strategy: In STAR pricing strategy is a special kind of plan
formatted in order to meet thechanges of external factors particularly from the policies of
competitors. Pricing strategieschange with competitive situation. Some of the common pricing
strategy followed STARplastics are: 1. Competitive pricing. 2. Premium pricing.1. Competitive
pricing:It depends upon market condition competitors price, seasonal variation etc. customers
arevery much aware of the quality and price of the product.2. Premium pricing: Ramaiah Institute
of Management Studies25SBS Swiss Business School

26. Organisation Study Report on Star PVC pipes & fittings Internship 2011In the case of suction
and delivery hose, adopted a premium price strategy to utilize the ISImarking and brand image.
As the brand awareness is less with customers market will stilldepends 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 thebasic idea of gaining a premium from those buyers who always ready to pay a much
higherprice than others. The main reason for adopting this strategy is to attract the consumers
ofhigh income group. . 2. Penetration price policy:Sometimes company adopt penetration price
policy that means changing low price frombeginning 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 avariable. Minimum period of two weeks taken for price
revision, though in some cases rawmaterials price fluctuates each day.Risk Involved:Usually bad
debts may occur in a business concern. But in STAR PLASTICS till now no baddebts have been
incurred. The usual credit period given to customers is 15 days. If onecustomer delays the
payment, they collect the amount by the way of sending reminders tohim, although they are
keeping some amount as reserve for bad and doubtful debts. Thesociety is keeping large
quantities of direct materials as stock because the price of such Ramaiah Institute of Management
Studies26SBS Swiss Business School

27. Organisation Study Report on Star PVC pipes & fittings Internship 2011materials is growing
day by day. Therefore these excessive raw materials dont result in lossthough some heavy
investment is required in it.To avoid the risk involved in transportation of goods to customers
outside Kerala, the goodsare insured accordingly. It helps the society to avoid the risk involved in
transporting goodsto distant places.3.4 Human Resource Department Human resource
management involves personnel management, personnel administration,employee welfare,
manpower planning, industrial relations etc.Human resource department isheaded by General
Manager and assisted by all the department heads, factory managers, andbranch managers.
STAR does pro-active approach to managing people in the organization. It constitutes aseries of
integrated decisions that helps to consolidate the employment relationship andbelieves that their
quality contributes to the efficiency of the organization and helps theemployees to achieve their
objectives. In the case of production centers, factory manager manages all personal staff and
createsa good relationship with office staff and workers. He undertakes their wants. He will
motivateentire unit as a whole. Each unit works as an independent unit with its own modes of
training,induction, performance, appraisal etc. All the functions are done in consultation with the
production manager and thegeneral manager. In the branch offices Branch manager maintains
the warmth employeerelationship and assessment and training is provided by branch manager in
consultations withmarketing manager and the General Manager. Ramaiah Institute of
Management Studies27SBS Swiss Business School

28. Organisation Study Report on Star PVC pipes & fittings Internship 2011Organization
Structure: HUMAN RESOURCE MIDDLE SUPERVISORY OPERATIONAL TOP MANAGEMENT
MANAGEMENT MANAGEMENT MANAGEMENT BOARD OF DIRECTORS DEPARTMENTAL
HEADS SENIOR SUPERVISORS SKILLEDWORKERS CHEIEF ACCOUNTANT DIVISIONAL
HEADS INTERMEDIATE SEMI- SKILLED WORKERS FINANACIAL SUPERVISORS
SECTIONAL HEADS UNSKILLED WORKERS DIRECTORSWorking Hours in STAR:Office time
begins with 9 A.M up to 5.30 P.M. In that time all transactions and officialfunction of that day are
completed. All functions are controlled by HR Manager. HRManager handles many planning
process they are: Forecasting future manpower requirement, it is estimated based upon specific
future plans of the company. Identifying present manpower resources and analyzing the degree
to which these resources are employed optimally. Anticipating manpower problems by
projecting present resources into the future and comparing them with the forecast of the

requirement, to determine their adequacy, both quantitatively and qualitatively. Planning the
necessary programs of requirement, selection, training and development, utilization, transfer,
promotion, motivation and compensation. So that future manpower requirement will be met.3.5
Production DepartmentProduction is the core function concerned with STAR as it has wide range
of products andproduction take place in plants located at faraway places. More over as faced with
stiffcompetition, the only way to increase the profit is by the cost reduction, as price increase isnot
at all possible. So each unit has its own research and development facilities working for Ramaiah
Institute of Management Studies28SBS Swiss Business School

29. Organisation Study Report on Star PVC pipes & fittings Internship 2011the 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 isself-reliant in its activities of
manufacturing, quality control, research and developmentproduction center is headedby factory
managers reports to a production manager at thecorporate office.Organization Structure:
PRODUCTION MANAGER FACTORY MANAGER ASST. MANAGER PRODUCTION QUALITY
IN CHARGE STORE IN CHARGE (ADMINISTRATION) SUPERVISORS (TECH & R&D)
ACCOUNTANT WORKER CASHIER CLERK, RECEPTIONThe Companys production
department handles the production of PVC pipe fittings. Themain 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 processlayout. The raw materials go through the various
processes for development of final product.Other than company fittings Company also produce
solvent cement and in differentmeasures. 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. Ramaiah Institute of Management Studies29SBS Swiss
Business School

30. Organisation Study Report on Star PVC pipes & fittings Internship 20113.6 Purchase
DepartmentThe purchase department is entrusted with the function of purchasing row materials.
In thepresent scenario with the cut throat competition, cost reduction is practiced in every sphere
ofthe business and purchase is one of the important functions where cost can be highlycontrolled.
High quality materials with lower cost became the motto of every organization fora meaningful
survival, for this organizations practice supplier rating and vender management.There is a
centralized purchase department headed by purchase manager who is responsiblefor taking
purchase decisions for all units. The decisions are made on the basis of followingfactors: Market
conditions Availability of raw materials Price of raw materialsOrganization Structure: PURCHASE
MANAGER SENIOR ASSISTANT OFFICE ASSISTANTThe purchase manager concerns with the
factory managers regarding the technicalspecifications, manufacturer, quality standards, cost of
materials, availability, time delay etc.In case of engineering goods, testing equipments, speciality
chemicals, instruments etc thepurchase manager seeks help from the engineers and the other
technical persons workingwith the research and development. Purchase manager also works in
coordination with thechief accountant, to know the position and about the credit position with the
suppliers. Ramaiah Institute of Management Studies30SBS Swiss Business School

31. Organisation Study Report on Star PVC pipes & fittings Internship 2011Role of Purchase
Manager: Raw materials purchase. Purchase of consumables and stores. Negotiation of
prices of raw materials with the supplier.Procurement and Issue of Materials: Purchase.
Store.A.Purchase The production department, usually factory manager informs the purchase
departmentabout the requirements of materials. The information is passed through the purchase
intentissued by factory manager to the purchase manager. In case of regular product like
stationaryand small purchase, the store in charge issues the purchase intend giving a copy to the
factorymanager item specification, required quantity, name of the manufacture, approximate
costsetc. are mentioned in the purchase intend. The purchase department then enquires with

thesuppliers and invites quotation. From the received quotation mentioning the offered price,mode
of payment, discount if any, time need for dispatches etc., purchase department choosesthe most
appropriate by considering all the criteria. Purchase manager consults with accounts department
about the availability of cash,payment condition, balance of any paid, whether the account with
the supplier crossed thecredit limit etc. with the approval of accounts department, purchase
manager then sends apurchase order to the supplier. In case of new materials or new supplier,
purchase departmentinsist or samples to be supplied before the purchase. These samples are
tested within houselaboratories. Orders are given only when the sample confirms to the required
quality levels.B.StoreStore is very important to arrange different items of materials in a systematic
manner. Storerecords information relating to receipts and issue of materials and products. Proper
storage isessential for material cost control. Store is headed by the store in charge who report to
thefactory manager and purchase manager. Each production center has its own store.
Materialpurchasing is done as a centralized activity and then it is supplied to stores at
productioncenters. Store is divided into three: Ramaiah Institute of Management Studies31SBS
Swiss Business School

32. Organisation Study Report on Star PVC pipes & fittings Internship 2011 Raw material stores.
Engineering Stores (electrical suppliers). Finished goods store.3.7 Systems Department STAR
started the computerization of its departments way back. Personal computerswith UNIX as the
operating system were used in the late 1980s. But the computers ofvarious departments are not
networked. In the year 1999, STAR went to upgrade its EDPsetup further. Costume made ERP
software was developed for its units and head office. Theinstallation of ERP software made the
work of the departments of STAR easier. Beingcostume made this ERP software, with SQL
RDBMS, Front end on Visual basic andwindows NT 2000 and XP, seamlessly had integrated all
function of the organization VIZ,production, inventory billing. Payroll, Accounting etc.The head
office at Thrissur has three servers and forty nodes running the application. Oneserver is
networked and other is kept as back up, another one is used as internet server. Otherunits totally
have about eight servers and about 50 nodes. Their latest plants at DUBAI,CHENNAI has
computerized control room for monitoring and production controlling. Inaddition with ERP system,
STAR also had implemented an electronic messaging solutionwith its organization, which is
centered on the companys website. This messaging solutionobviates the communication bottle
neck of company. Ramaiah Institute of Management Studies32SBS Swiss Business School

33. Organisation Study Report on Star PVC pipes & fittings Internship 2011 CHAPTERIV
PORTERS FIVEFORCES MODEL Ramaiah Institute of Management Studies33SBS Swiss
Business School

34. Organisation Study Report on Star PVC pipes & fittings Internship 2011 PORTERS FIVE
FORCES MODELPorters Five Forces is a framework for industry analysis and business strategy
developmentformed by Michael E. Porter of Harvard Business School in 1979. It draws upon
IndustrialOrganization (IO) economics to derive five forces that determine the competitive
intensityand therefore attractiveness of a market. Attractiveness in this context refers to the
overallindustry profitability. An "unattractive" industry is one in which the combination of these
fiveforces acts to drive down overall profitability. A very unattractive industry would be
oneapproaching "pure competition", in which available profits for all firms are driven down
tozero.The Five Forces are 1. The threat of the entry of new competitors. 2. The threat of
substitute products or services. 3. The bargaining power of customers (buyers). 4. The bargaining
power of suppliers. 5. The intensity of competitive rivalry.For plastics producers worldwide, India
represents a range of highly new opportunities forgrowth. The plastics industry in India has made
significant achievements ever since it made amodest but promising beginning by commencing
production of polystyrene in 1957.TheIndian plastic industry conforms to the levels of
sophistication required to produce plastic andplastic products of international quality standards.
The consumption of plastics 1999 isestimated at twelve million tons by the year 2010. The

demand for plastics is growingapproximately @ 22% annually and plastic consumption in India is
expected to increase fromalmost 2.7 million tons of various commodity plastics in 1998 to almost
fifteen milliontonsby 2010.During the organizational study undertaken in Star Plastics, Kerala, the
information collectedregarding its competitors, products, the bargaining power of customers and
the suppliers and Ramaiah Institute of Management Studies34SBS Swiss Business School

35. Organisation Study Report on Star PVC pipes & fittings Internship 2011the intensity of
competitive rivalry has been analyzed using Porters five forces model and isas follows:1. The
Threat of the Entry of New CompetitorsProfitable markets that yield high returns will attract new
firms. This results in many newentrants, which eventually will decrease profitability for all firms in
the industry. Unless theentry of new firms can be blocked by incumbents, the abnormal profit rate
will tend towardszero (perfect competition). The history of star is the history of pipe fittings
production insouth 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
thebest ISI mark for quality. Afterwards more organizations came into the plastic
manufacturingindustry and so that the competition also becomes huge.The main competitors for
Star in the market now are: Hycount Plastics & Chemicals. Hycount Plastics & Chemicals was
commissioned two decades ago at Kollam. HYCOUNT PIPE - One of the brand PVC pipes in the
country and the market in Kerala in its kind with an installed capacity over 12,000 Metric tons per
annum produced at different locations in Kerala. A-One Polymer Ltd. A-One Polymer Ltd. is yet
another glorious contribution of the century old Anwar Group of Industries in strengthening the
developing industrial base of Bangladesh. Manufactured in strict compliance with ISO 3633:2002
& BS Standard 4514, A-One u PVC Fittings possess attributes equivalent to any international
premier quality pipe-fittings. A-One Polymer, established in 2006 with uPVC pipe & fittings
manufacturing facility, is also in production of 50MT of PTFE Thread Seal Tape per month,
making it the first manufacturer of this product in Bangladesh. With the aim to diversify its product
range further, A-One Polymer seeks to manufacture a wide range Ramaiah Institute of
Management Studies35SBS Swiss Business School

36. Organisation Study Report on Star PVC pipes & fittings Internship 2011 of plumbing related
materials (PVC, uPVC, cPVC) in the years to come. Already serving the world market, A-One
polymer plans to further expand its production capacity by 150MT/month to strengthen its export
market in 2013. Finolex Industries Ltd. Finolex Industries Ltd is the largest manufacturer of rigid
poly vinyl chloride (PVC) pipes and fittings in India having a market share of nearly 10 per cent.
The companys manufacturing capacity of 36,000 tons for PVC pipes and fittings is likely to be
increased to 50,000 tons by the end of next year. Recently, FIL commissioned an ultra-modern
PVC pipes plant at Ratnagiri in Maharashtra. The company also has a plant in Pune. Nediyara
Group "SHAKTHIMAN SUPER". "SHAKTHIMAN SUPER" is the flagship brand of Nediyara
Group, a synonym for plastic processing in Kerala. The headquarters of the group is at
Kodanad,A picturesque village on the banks of river Periyar. Besides PVC pipes, the group
churns out a myriad of plastic products like Soft PVC Garden Hoses, ISI Marked Electrical Wiring
Pipes, Printed Food Packaging Containers, Water Storage Tanks, Toilet Seat Covers, Cisterns
etc. Launched in 1974. Eurotech Pipes and Fittings. Eurotech Pipes and fittings are made from
VESTOLEN P9421 polypropylene random co polymer specially developed for this use. Eurotech
is a system of pipes and fittings made from VESTOLEN P9421 random copolymer polypropylene,
specially developed for this use. The systems characteristics make it suitable for the construction
of heating and water supply systems of the most widely varying forms with outstanding reliability
over time. Eurotech office in Kerala: Thrissur Road, Chagarakulam, and Kerala. Some Other
Companies in Thrissur I. UNIVERSAL DISTRIBUTORS, Masjid Road, Kokkalai, Thrissur. II.
Moyalan HDPE -PVC Pipes, Market Rd, PB-76, Ollur P O, Thrissur. Ramaiah Institute of
Management Studies36SBS Swiss Business School

37. Organisation Study Report on Star PVC pipes & fittings Internship 2011 III. MazPolymers,
Industrial Development Plot, Athani P O, Peringandoor Thrissur.2. TheThreat of Substitute
Products or Service The threat of substitute is high when the price of that substitute product falls
or it iseasy for consumers to switch from one substitute product to another or when buyers
arewilling to substitute. Star Plastic product constitutes plumping equipment materials such
asPVC pipes, fittings, SWR fittings and PVC adhesive. Star fitting is leading names fittingsover all
the states. STAR PVC fittings are manufactured from the finest grade PVC resintrusted and
acclaimed all over the country for quality. Due to the high tensile strength andreliability used in
industry, homes etc. STAR fittings are available in above 10 shapes andmeasures vary from
20mm to 200mm. They are also available in 3 different colors. Injectionmolded STAR PVC pipe
fittings confirm to ISI specification and assure totally safe, non-toxic water for all purposes. The
development of PVC pipes and all type of Plastic fittings and equipmentsallover the world is by
using the organochlorine called Poly Vinyl Chloride (PVC). STAR isalso developing all type of pipe
products (rigid pipes, flexible hoses etc.) using the sameorganochlorine PVC. The competitors are
also using the same technology. So there is nosubstitute products made from other
organochlorine, the plastic products are all made fromthe same organochlorine PVC.3. The
Bargaining Power of Customers (Buyers) Buyers or customers can exert influence and control
over an industry in certaincircumstances. This happens when: There is little differentiation over
the product and substitutes can be found easily. Customers are sensitive to price. Switching to
another product is not costly. Ramaiah Institute of Management Studies37SBS Swiss Business
School

38. Organisation Study Report on Star PVC pipes & fittings Internship 2011Nowadays customers
have the buying power and they have the choice in the market tochoose the product what they
want. In 1994 Star began the production and marketing offlexible hoses under the brand name
STAR FLEX. Before that Nediyara group came withSoft PVC Garden Hoses and it has a good
name among the customers and has a good marketalso. So when Star came with flexible hoses,
it is difficult to market the product. But whilecomparing to other companys products, Star have
international standards and also have theISI certification and the product flexible hose is for both
domestic and industrial use. Thismade Star to gain supremacy of the products over others
products, market ascendancy wasnot difficult. Star now is a ubiquitous presence in the entire
Middle-East and South Africa. In2001, STAR received the ISO 9002 Certification, yet again the
first in South India. Thecustomers of STAR are satisfied with their products. They continue to use
the product andwill purchase them in future. Quality is the main factor that helps STAR to
compete withother brands. Advertisements were done in print media only.4. The Bargaining
Power of SuppliersSuppliers are also essential for the success of an organization. Raw materials
are needed tocomplete the finish product of the organization. Suppliers do have power. This
power comesfrom: 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). If there is no other substitute for their product.STAR plastics have suppliers all
over South India. STAR plastics concentrates there marketin India mostly in southern region.
STAR has a monopoly market in southern area. Thecompany can market their product very
smoothly through the market segmentation. Thecompany is selling their products by dividing the
market state wise. The companyconcentrates in Tamil Nadu, AndhraPradesh, Karnataka and
Kerala. In North India thecompany continues marketing of their products. To be more precise, the
product of the company makes its presents felt in thefollowing counties: Ramaiah Institute of
Management Studies38SBS Swiss Business School

39. Organisation Study Report on Star PVC pipes & fittings Internship 2011 INDIA UAE RUSSIA
IRAN AFGHANISTAN MUSCAT QATAR BAHRAIN SAUDI ARABIA EGYPT SUDAN ETHIOPIA
SOMALIA SOUTH AFRICA5. The Intensity of Competitive RivalryIf entry to an industry is easy
then competitive rivalry will likely to be high. If it is easy forcustomers to move to substitute
products for example from coke to water then again rivalrywill be high. Generally competitive

rivalry will be high if: There is little differentiation between the products sold between customers.
Competitors are approximately the same size of each other. If the competitors all have similar
strategies. 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 manyorganizations are coming to
PVC pipes & Fittings manufacturing industry yearly, thecompetition is also becoming higher. In the
last one decade unparalleled growth waswitnessed in Star group of companies to emerge as a
leader in the PVC fitting and todiversify into the manufacture of suction hoses, drainage fittings
and PVC pipes. Thecompanies operation includes manufacturing of PVC fittings and allied
products in clearlydefined core business areas at home and overseas. The Star group of
companies is the singlelargest plastic industry in private sector over years, star group has steadily
developed into a Ramaiah Institute of Management Studies39SBS Swiss Business School

40. Organisation Study Report on Star PVC pipes & fittings Internship 2011professionally
managed company comprising of 8 manufacturing unit in 3 production centerswith a total installed
capacity of 3850 meter per annum-8 divisions and effective centralizesupport services wholly
dedicated to the most existing standards of quality and customerservices, constantly motivated by
the need to ensure total product satisfaction. In the year2000, to take the challenge of
globalization, star set up a core team and applied core ISOcertification. In August 2001, star
became the first PVC fittings manufacture in south India toreceive the ISO 9002 certification. Now
Star Plastics is the market leader in South India. Thecompany has made its presence significantly
in Middle East market also.Strategy persuaded by Star PVC is: Produces good quality product.
Makes use of modern techniques for production to meet the demands mostly with the help of
pops. Assigning targets to each store manager and as such rewarding then with attractive
prizes. Everyday feedbacks are taken.The value which exists in Star PVC is: No
discrimination for race, religion, decision making and actions. To develop a sense of respect for
oneself in others mind. Discipline is given great importance.These all help them to overcome
the intensity of competitive rivalry in the PVC pipes &Manufacturing industry. Ramaiah Institute of
Management Studies40SBS Swiss Business School

41. Organisation Study Report on Star PVC pipes & fittings Internship 2011 CHAPTER V SWOT
ANALYSIS Ramaiah Institute of Management Studies41SBS Swiss Business School

42. Organisation Study Report on Star PVC pipes & fittings Internship 2011 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 specifyingthe objectives of the business
venture or project and identifying the internal and externalfactors 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. Ramaiah Institute of Management Studies42SBS Swiss Business School

43. Organisation Study Report on Star PVC pipes & fittings Internship 2011Opportunities: 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. 3.

There are large untapped opportunities in Government sector(E.g. Government is giving subsidies
to the farmers for buying agriculture equipments). 4. Growth of real estate on account of nuclear
families. 5. Agriculture promotion schemes by government and other agencies.Threats: 1. Sudden
fluctuations in crude price, causing fluctuations in raw material price makes difficult in pricing
strategy. 2. Industry is one among those with greater competition. 3. In the changing world of
technology, sometimes a better substitute over PVC may emerge. 4. All the competitors (Hycount
Pipes, A-One Polymers, and Finolex Industries etc.) are changing their strategies and formulating
new ones to capture new markets. 5. As PVC is a plastic which is not biodegradable causes
environmental pollution, may face a ban in future. Ramaiah Institute of Management
Studies43SBS Swiss Business School

44. Organisation Study Report on Star PVC pipes & fittings Internship 2011 CHAPTER VI
FINDINGS AND SUGGESTIONS Ramaiah Institute of Management Studies44SBS Swiss
Business School

45. Organisation Study Report on Star PVC pipes & fittings Internship 2011Findings:Star Plastics
is the number one PVC pipe fitting manufacturer in south India and it hasreceived the best ISI
mark for quality. In August 2001, Star became the first PVC fittingsmanufacturer 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: Ramaiah Institute of Management Studies45SBS Swiss Business School

46. Organisation Study Report on Star PVC pipes & fittings Internship 2011 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. Cleanliness and orderliness has to be further improved. Improve security measures by
using electronic devices at all gates. Advertisement need improvement (currently
advertisements is done through print media only, need to be done in visual media also).
CHAPTER VII CONCLUSION Ramaiah Institute of Management Studies46SBS Swiss Business
School

47. Organisation Study Report on Star PVC pipes & fittings Internship 2011 CONCLUSIONThe
study conducted at STAR GROUP OF COMPANIES THRISSUR which is the pioneerand market
leader in the PVC pipe product in South India, helped in getting a wider outlookabout the business
environment and managing an organization. Organization has sixproduction centers and five
marketing branches spread all over South India and Middle EastAsia, with operation all over the
world.It was a general study regarding all functions and aspects of STAR. The company has
sevenfunctional departments through which it was operating. It is found that company has a
goodworking environment and cordial relationship is maintained between all departments for
thesmooth functioning and achievement of the organization goal of maintain the companysbrand
image among the customers. Porters Five Forces Model is done in the period of studyto analyze
the threat of the entry of new competitors and substitute products or services, thebargaining
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 ofthe organization.Star
has made are of most advance technology and up to date knowledge. Fully automatedproduction
has been put to use long time ago U.S made microprocessor controlled machineryis used to for

production. Star received the ISI mark for quality and ISO 9002 certification for Ramaiah Institute
of Management Studies47SBS Swiss Business School

48. Organisation Study Report on Star PVC pipes & fittings Internship 2011quality by TUV
Germany, and ISO 14001: 2001 certification. All the products are ofInternational standard. At
present company is able to later about 10% of the marketrequirements. In order to later the
complete needs the company is planning to increase theproduction level to maximum extent
possible. The company is planning to increase thepresent product level of Dubai units. The
research and development team of STAR group isengrossed in developing new product for the
international markets. This has helped them togain valuable insight that prompt the group to
search alternative ways for manufacturingbetter products in a cost effective manner. CHAPTER
VII Ramaiah Institute of Management Studies48SBS Swiss Business School

49. Organisation Study Report on Star PVC pipes & fittings Internship 2011 BIBILIOGRA PHY
BIBILIOGRAPHYBooks 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 Ramaiah Institute of Management Studies49SBS Swiss Business School

50. Organisation Study Report on Star PVC pipes & fittings Internship 2011Journals: Star
Plastics Company Magazine. Ramaiah Institute of Management Studies50SBS Swiss Business
School