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Organisation Study Report on Star PVC pipes & fittings

REPORT
Organisation Study Report on Star PVC pipes & Fittings

Conducted At
STAR PVC PIPES

Submitted by

VISHWAJEET
14MB1402

In partial fulfillment of the requirement


For award
Of

PG DEGREE

IN

Masters In Business Administration


<JANUARY> <2015>

ISBR Business School

Organisation Study Report on Star PVC pipes & fittings

Declaration

I VISHWAJEET, Roll no 14MB1402, student of MBA, ISBR Business School,


Bangalore hereby declare that the research project report on .., is an
original and authenticated work done by me. I further declare that it has not been
submitted elsewhere by any other person in any of the University for the Award
of any degree or diploma.

Date:

VISHWAJEET

ISBR Business School

Organisation Study Report on Star PVC pipes & fittings

Acknowledgement

First of all I wish to express my deep gratitude and thanks to God who
helped us in completing the organization study successfully. I shall
remain grateful to Mr. Naveen Prasath, Faculty, MBA Department,
ISBR for his amble guidance and encouragement for completing the
organization study. I am also extremely grateful to faculty member for
their valuable suggestions and advice regarding this work. I express
my sincere thanks to all the staff of ISBR for their co-operation during
my study in the company. Last but not least I thank my parents and
for all their moral support and help, they had given to me.

ISBR Business School

Organisation Study Report on Star PVC pipes & fittings

CONTENTS

CHAPTER

CONTENTS

PAGE NO

EXECUTIVE SUMMARY

Chapter I

INTRODUCTION

1.1

Industry Profile

1.2

Company Profile

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

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

Chapter III

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Organisation Study Report on Star PVC pipes & fittings

EXECUTIVE SUMMARY
The organizational study was conducted at STAR Plastics, Thrissur, Kerala. The
objective of the study is
To study the organizational structure.
To study about the structure and functioning of various departments.
To study how the management control various departments for the attainment
of the organizational objectives.
The organization is into PVC pipes and fittings manufacturing. PVC is an
organochlorine, which was first patterned in 1913 by Fritz Klatte. However, its development
for hindered by pure PVCs chemical instability and its low workability. During the 1930s,
German experiments with various stabilizers and softeners lead to the first useable forms of
PVC. By the early 1950s PVC was second only to polythene, as the most important synthetic
product in Germany. It is now the single largest use for chlorine today, using about 1/3 of all
global production. About 40 million tons of chlorine is produced by the chemical industry every
year. PVC development was part of the huge expansion of the chlorine industry after the
Second World War. PVC, Dichloro Diphenyl Trichloroethane (DDT) and Chloro
FluoroCarbons (CFCs) are all products of post war boom in the chlorine industry. Currently
there are over 11,000 oregano chlorines now in commercial use. Organo chlorines are useful
to industry because they tend to be very stable and the resist natural breakdown process.
Star Plastics have seven functional departments and its the leader in PVC pipes &
Fittings in south India. Star Plastics is the first PVC pipe fittings manufacturer in south India
to receive ISO 9002 certification. While globalization and economic slowdown in the world
markets threw up new challenges the STAR group is busy chalking out plans to translate these
challenges in to opportunity. The company is going to make a centralization system of the
software network that the progress of work at any levels, at any units, at any centers can be
viewed from the corporate office itself. Each and every aspect of the business can be checked
from the corporate office.At present company is able to later about 10% of the market
requirements. In order to later the complete needs the company is planning to increase the
production level to maximum extent possible. The company is planning to increase the present
product level of Dubai units. The research and development team of STAR group is engrossed
in developing new product for the international markets.

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Organisation Study Report on Star PVC pipes & fittings

CHAPTER I
INTRODUCTION

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Organisation Study Report on Star PVC pipes & fittings

1.1Industry Profile
Plastics, in the modern meaning of the word, are synthetic materials that are
capable of being formed into usable products by heating, milling, molding and similar
processes. The term is derived from the Greek plastic, to form in si mplest terms;
plastics can be described as resins in their molded form.
The wonders of plastics cut across all sectors of society. It is a material of
choice due to its versatility, its physical strength, its economic viability; its easy
process ability and also its attractiveness and durability of all weather conditions.
With the globalization of Indian economy and television entering into homes and
tiniest villages and communications demand for the materials for suitable functional
use more economic packing, durable all weather products has meant increasing
demand for plastics.
Packing of cement bags, the end user is demanding plastics instead of
conventional jute, because it prevent transits loses and wastages. The hilly regions of
East India or drought prone districts of Rajasthan, Gujarat, and Tamil Nadu demand
auto molded tanks in thousands each day. The agriculturists of Himachal Pradesh
insist on plastic pipes for irrigation to their farms, the floriculturists of Karnataka and
Maharashtra cannot thrive without ultraviolet stabilized polythene wide width films
for huge tunnels and green polymers consumption and import.
The Plastic industry in India has made significant achievements ever since it
made a modest but promising start by commencing production of polystyrene in 1957.
The potential market has motivated Indian entrepreneurs to acquire technical
expertise. Achieve high quality standards and build capacities in various facts of the
booming plastic industry. Phenomenal development in the plastic machinery sector
coupled with matching development in petrochemical sectors, both of which supports
the plastic processing sectors, have facilitated the plastic processors to build capacities
to service both the domestic market and overseas.
The chronology of manufacture of polymers in India is summarized as under.
1957

: poly styrene

1959

: LDPE

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Organisation Study Report on Star PVC pipes & fittings

1961

: PVC

1968

: HDPE

1978

: polypropylene

The economic reforms launched in India since 1991, joint ventures, foreign
investments, easier across to technology from developed countries etc. have opened
up new vistas to further Indian plastic industry are exported to over 150 countries
round the globe with major trading partners being USA,UAE, Italy,UK,Russia,
Honkong, Germany etc. The plastic processing sector comprises of over 30000 units
involved in producing a variety of items through injections molding, blow molding,
extrusion and calendaring. The capacities built in most of this industry coupled with
inherent capabilities have made us capable of servicing the overseas markets. The
development of plastics took place in 1920s with the introduction of cellulose acetate,
polyvinylchloride and nylon.
Polyethylene evolved out of the need for a superior insulating material could be
used for such applications as radar during World War II. The decade of the 1950s
saw the introduction of poly propylene and the development of acetyl and
polycarbonate. In 1960s and 1970s a sub group of plastic family started to emerge
,called high temperature plastics, which includes polyamides, aromatic polyesters,
polyether siphoned etc.

1.2Company Profile
a) Background of the company:
The history of STAR is the history of pipe fittings production in south India.
In 1983, Vikas plastics and Star plastics amalgamated to form Star plastics,
Mullurkara that is 20kms away from Thrissur town, the cultural capital of Kerala. In
1988, star became the number one PVC pipe fitting manufacture in south India it has
received the best ISI mark for quality. In 1994 star began the production and marketing
of flexible hoses under the brand name STAR FLEX. In 1998 taking advantage of the
wings of globalization star started star impex and forayed into the global market.
Growth being as the key strategy the visionary Mr.P.K.Paul nurtured star plastics into
a corporate level. After the demise of Mr. P K Paul his eldest son Mr. Bobby Paul took

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Organisation Study Report on Star PVC pipes & fittings

the charge of the chariot. His brother Mr. Anto Paul also assists in the day to day
activities of the company .Presently the group consists of various companies like Star
Plastics, Star Flex, Shine Star, Star Exporters& Fine Polymers, A new group venture
of star group of companies for the purpose of exporters
In the year 2000, to take on the challenge of globalization, star set up a core
team and applied core ISO certification. In August 2001, star became the first PVC
fittings manufactures in south India to receive the IS O 9002 certification. Star plastic
is the market leader in Kerala, Tamilnadu & the market challenger in Andhra Pradesh
and Karnataka. The company has made its presence significantly in Middle East
market having a branch office at Dubai. It is a multi-core, multi-Product Company
which has been deeply involved in the manufacture, distribution, sale, and installation
and servicing to bring the customer satisfaction and social responsibilities.
In the last one decade unparalleled growth was witnessed in star gr oup of
companies to emerge as a leader in the PVC fitting and to diversify into the
manufacture of suction hoses, drainage fittings and PVC pipes. Star plastics are a
group of companies with a turnover of 30 crores per annum and with manpower
strength of 450 employees including 50 high caliber professionals. It has a32% growth
due to the young and dynamic MDs expansions and growth plans. The company
increased its production capacity over 50% in just two years incurring huge additional
investments. Presently it is enjoying the benefits. At the end of current half year a
growth rate of 35% when compared with the last year is witnessed.
The companys operations include manufacturing of PVC fittings and allied
products in clearly defined core business areas at home and overseas. The star group
of companies is the single largest plastic industry in private sector over the years, star
group has steadily developed in to a professionally managed company comprising of
8 manufacturing unit in 3 production centers with a total installed capacity of 3850
meter per annum- 8divisions and effective centralize support services wholly
dedicated to the most existing standards of quality and customer services, constantly
motivated by the need to ensure total product satisfacti on.

b) Star group of companies:

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Organisation Study Report on Star PVC pipes & fittings

Star Plastics: - star plastics, the parent company of the group was incorporated in
1983, and within these 21yrs it has grown up as one of the largest pace fittings
manufacturing companies in India and its products are approved by these authorities.
Shine Star: -shine star is another unit of star plastic, which is manufacturing pipe
fitting. This has been started as another manufacturing fitting unit.
Star Flex: - star flex is totally a new venture, manufacturing flexibl e solution and
delivery hoses ranging from to 4 sizes. As on today the above companies are making
a combined sales turn over approximately worth of 30 crores per year.
Star Polymers: -It is the unit of star plastics. It is manufacturing pipe fittings.
Star Plus: - star plus is another unit of star plastics. It is also manufacturing pipe
fittings. The different units had been given different names in terms of marketing.
c) Nature of business carried:
STAR This word is the combination of basic concepts and fundamentals believed by
its founder and carried over across the years, it has sailed hitherto and for the future
such as
S - Service
T- Transparency
A - Accountability
R - Reliability
d) Star which means:
Provider of basic requirement of all PVC related fittings, pipes, and allied
products.
Unstinted and continued supply and service since last 2 decades.
Believer and Promoter of quality products than giving simple propaganda.
The First PVC pipe fittings manufacturer in south India who is operational and
reaching newer heights year after year.
The First PVC pipe fittings manufacturer in south India to have received ISI
mark.

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Organisation Study Report on Star PVC pipes & fittings

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 PVC
products 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 of
quality and technical excellence. Through our constant Endeavours of research and
innovation we strive to come up with new products that help architects and builders keep
ahead of the times
Mission: - serve water projects, construction activities and agriculture on global level to
ensure 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 companies to
emerge as a leader in the PVC fittings and to diversify in to the manufacture of suction, drainage
fittings and PVC pipe. STAR PLASTICS is a group of companies with a turnover of 75 cores
per annum and with a manpower strength of 450 employees including 50 high caliber
professionals.
f) Product/Service profile:
Star plastic product constitutes plumbing equipment materials such as PVC pipes,
fittings, S.W.R fittings and PVC adhesive. Star fitting is leading names fittings over all the
states. STAR PVC pipe fittings are manufactured from the finest grade PVC resin trusted and
acclaimed all over the-country for quality. Due to high tensile strength and reliability used in
industry, homes etc.

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Organisation Study Report on Star PVC pipes & fittings

STAR fittings are available in above 10 shapes and measures vary from 20mm to
200mm. These are also available in 3 different colors. Injection modulated STAR PVC pipe
fittings confirm to ISI specification and assure totally safe, non-toxic water for all purposes.
g) STAR-Plastic-Products:
The company concentrates on the manufacturing of a wide range of PVC pipes and fittings and
allied products. Their products are basically categorized as

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 pipes

h)Production centers:

STAR plastics Mullakkara, Thrissur


STAR plastics, the parent company of the group was the incorporated in 1983, and

within these 24 years it has grown up as one of the largest PVC fittingsmanufacturing
companies in India and its products are approved by ISI authorities. Manufactures the PVC
pipe fittings, drainage fittings, SWR fittings, Pressure fittings, solvent cement. Lisna Inc. is
situated in same premise.

Shine Star Minaloor, Thrissur


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, Thrissur

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Organisation Study Report on Star PVC pipes & fittings

STAR Flex manufactures the PVC flexible hoses, suction and delivery hoses ranging from 0.75
to 4 inch diameter.

Star Pipes, Choolissery, Thrissur


STAR pipes manufacture the rigid PVC pipes for plumbing and electrical purpose. Its

a semi-automatic manufacturing unit which manufactures rigid PVC pipes ranging from 20mm
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 to
200mm.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 to
200mm. also manufactures the PVC pipe fittings and solvent cement. This unit does the
production for the Middle East Asia, Africa and Europe. Each division is self-reliant in its
activities of research and development, Manufacturing and marketing, now moving for total
automation and integration. STAR group of company is structured in to business units
comprising synergistic group of responsibility centers, division backed up by an extensive
marketing infrastructure and front line support services.

ISBR Business School

Organisation Study Report on Star PVC pipes & fittings

CHAPTER II
STRUCTURE OF
THE
ORGANISATION

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Organisation Study Report on Star PVC pipes & fittings

2.1 Organizational Structure


The STAR group follows absolute dedicated approach. The organization of its manufacturing
operations is based on product divisionalisation in to group of products in which are similar in
technology or manufacturing process. Each group is constituted by divisions or profit centers.
Each of these group, are led by absolute manager. A central manager leads the corporate
function. Some of these functions in turn are reported to the managing director.

2.2 Organizational Chart

DIRECTOR

MG- DIRECTOR

GENERAL
MANAGER

HR

FINANCE

FIANCE
MANAGER

PURCHASE

PRODUCTION

MARKETING

ACCOUNTS

PURCHASE
MANAGER

PRODUCTION
MANAGER

MARKETING
MANAGER

CHEIF
ACCOUNTANT

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SYSTEM

ASST
MANAGER
(SYSTEMS)

Organisation Study Report on Star PVC pipes & fittings

2.3 Organizational Outlook


Managing Director

BOBBY PAUL

Other Directors

Anto Paul & Rosy Paul

General Manager

K.B. Suresh Kumar

Marketing Manager

C.L.George

Finance Manager

Biju Thomas

Accounts Manager

A.C. Chummar

Established in

1984

Main production

PVC pipe fittings and adhesives

Raw materials for production

Resin and other chemicals

Production range

Wide range of products

Present production

Best in southern India with 85 percent

Number of machines

202 machines with generation backup

Number of office staff

50

Number of workers at factory

400

Trade discount

50%

5%

Of total production

Special discount for


Payment within one week

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Organisation Study Report on Star PVC pipes & fittings

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.

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

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Organisation Study Report on Star PVC pipes & fittings

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.
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.

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Organisation Study Report on Star PVC pipes & fittings

CHAPTER III
FUNCTIONAL
DEPARTMENTS

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Organisation Study Report on Star PVC pipes & fittings

3.1 Finance Department


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 MANAGER

Finance department is headed by finance manager. Finance manager reports to the General
Manager and in certain strategy and urgent issues directly report to managing director and take
decisions. Finance Manager works in the coordination with chief accountant, production
manager, marketing manager, branch managers.
Sources of Finance:STAR Plastics find sources of finance through banks and other private financial institutions.
As it is a partnership firm, the partners contribute their funds to make capital requirements and
other expenditure with the help of banks and financial institutions. STAR Plastics deals all
finance requirements with South Indian bank, Kerala State Financial Enterprises (KSFE) and
State Bank of India. Vehicle loans are provided by Cholamandalam finance.
Companys Financial Policies:-

Low cost of operation of funds.


Efficient receivable management, through acceleration of funds.
Faster sourcing of funds from institutions.

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Organisation Study Report on Star PVC pipes & fittings

Functions of Finance Department:Finance function is concerned with all aspects of business operations. It is very difficult to set
limits to the finance function. The key activities under finance department are:
Management of firms assets structure.
Financial analysis, planning and control.
Management of firms financial structure.
Estimating capital requirement.
Determining sources of fund.
Utilization of fund.
Disposal of surplus.
Management of cash.
Financial controls.

3.2 Accounts Department


Accounts department deals with day to day book keeping, daily collections, salaries of all
employees, etc. Accounts department is headed by chief accountant. He is assisted by four
assistant accountants. In each production centers and marketing branches have an accountant
and cashier which does the daily function at the places
Chief accountant works in coordination with finance manager, on the fund flow issues
and in case of any shortage of cash occurs. Finance manager canalized the shortage from
financial institutions in case of emergency and normal cases, chief accountant tightness the
payment collections from the whole sellers and other sources.
Other main function of accounts department is tax payments. They deal with the central
sales tax, K VAT, excise and other department. Monthly returns are prepared by the accounts
department.

3.3 Marketing Department


Marketing department is entrusted with the function of planning and executing the conception,
pricing, promotion and distribution of ideas goods services, to create exchanges that satisfy
individual and organizational boards. In simple terms the marketing function is catered around
the customer and his needs.

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Organisation Study Report on Star PVC pipes & fittings

Organization Structure:

MARKETING MANAGER
BRANCH MANAGER
SALES EXECUTIVE
REPRESENTATIVES
Marketing Policy:
STAR Lights to reduce the number of intermediaries, so they have no distributors. Billing is
directly done to the wholesalers and retailers. In case of other state sales, its a one through the
branch offices. No direct export to any customers. STAR is operating by exporting to the
branch office at Dubai, STAR IMPEX INDUSTRIES L.L.C. and billing directly to the
customers. In the case of logistics the supply of products is done through company owned feet
of vehicles. Same policy followed with inter-state also.
Functions of Marketing Department in Star Plastics:
The major functions are explained below:
1. Demand Forecasting
2. Marketing Research
3. Marketing Control
1.Demand Forecasting
Demand forecasting is the main function of marketing in STAR plastics .It should be done
through sales force in the company such as sales representatives sales executives etc.
collecting information from customers. On the basis of this information demand forecasting is
to be done.

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Organisation Study Report on Star PVC pipes & fittings

2. Marketing Research
Marketing research is more comprehensive composing all the functions of a marketing
manager that is it covers product, price, sales, market, promotion, distribution policies. It is
commonly says that marketing research begins where manufacturing ends. In fact it
commences well before the product is fabricated. It goes in to operation even before erecting
the factory. It covers analysis of competitive advantage, market share analysis and new product
development. The main objectives of market research are:
To know buyers.
To measure the impact of promotional effort.
To know consumer response.
To know market costs and profits.
To master external forces.
To design and implement marketing control.
3. Marketing Control
Various tools used for marketing control are cost control and a market share analysis. Cost
control is one task for monitoring the cost of marketing and it is compared with planned cost
standard, so as to identify deviations and take corrective action. Market share analysis is also
used for marketing control.
Objectives of Marketing:
The basic objectives of marketing are to satisfy human wants. The important objectives of
marketing are briefly explained below:
1. Customer Satisfaction through Quality Products
Marketing activities aims at achieving customer satisfaction by offering quality
products. It is also help more increasing profit, increasing goodwill, increasing image of the
organization etc.
2.After Sales Service
This another objective of marketing company provides after sales services to its
customers. The service of the company does not end with process of distribution the company
has been waited until good result comes by giving their products to consumer and they always

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Organisation Study Report on Star PVC pipes & fittings

rendered their services at the time needed by the customers. The marketing and sales
department keeps their eyes and ears to open to know changes in the market. The complaint
and suggestions if any are well accepted by the company from their customers. There is any
complaint about the sold product the company will take it back at the companys costs.
Method Of After Sales Service:
For providing after sales service company may use thefollowing methods:
Sending special staff to the customers.
Arranging service with dealers/agents.
Appointing in depending service specialists.
3. Maintaining Price Leadership:
Companys important objective is to maintain price leadership. Company is always trying to
become a price leader. It does not like become a price follower.
4. Achieving Maximum Market Share:
Companies another objective is to achieving maximum market share. In order to
achieve maximum market share, company will spend more on advertising and offering quality
products to the customers.
5. Other Objectives:
Other objectives include:
Increasing firms sales.
To guarantee firms survival.
To fortify better resource utilization.
To meet customer needs.
Present market condition:
For their products STAR is facing demand higher than supply, which is a healthy situation. In
case of seasonal products like suction and delivery hose, demand exceeds supply. It tries to
later products to major customers. It is the main reason for expansion of production facilities.

Market Segmentation:

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Organisation Study Report on Star PVC pipes & fittings

STAR is the dominant player in the South India. Geographically the market is
segmented into five regions and branch officers are responsible for marketing activities in their
regions.
1. Bangalore (Karnataka)
2. Chennai (TN)
3. Dubai (Middle East, Russia, South Africa etc.)
4. Nagari (AP)
5. Thrissur (Kerala)
As per the consumers, market is segmented into three:
1. Government Works
2. Household Consumers
3. Builders
Presently highly concentrated on the builders, as the construction industry is booming,
appointed two sales executives exclusively for this sector and have a considerable market share
in the other two segments.
Promotion:
In STAR PLASTICS promotion is done in the case of sale of products, in the case ofdealers,
and in the case of sale force.
1. In the case of sale of products
Sales promotion includes short term incentives likes discounts, free gifts and contests to
stimulate sale of products. Sales promotion builds a bridge between the products and
consumers. In the case of STAR, sales and brand promotion is done by providing information
about the products through advertisement, demonstrations, organizational shows etc.
2. In the case of dealers
Company provides incentives to their dealers and also provides dealers with discount at the
time of purchasing the product from the company. The company also provides after sale
services to dealers. It is based on the nature of product the company offers their dealers with
replacement facility after checking the product.

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Organisation Study Report on Star PVC pipes & fittings

3. In the case of sales force:


Company provides incentives to sales force. This includes the activities which induce
and motivate sales person. The aim of sales forces promotion is to make the sales mens 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. It covers
all the activities connected with the giving of publicity regarding goods and services offered
for sale. Advertising is transmitting through mass media such as television, newspapers,
magazines etc.
Advertising Policy:
Each potential customer must see an advertisement
Brand awareness is not much with the customers. Brand awareness to be created, its in growth
stage. Advertisement focused on creating the brand image and promoting the STAR brand for
their entire product. Earlier advertisement (Hoarding) were exhibited at district headquarters
and important junctions. Presently, apart from above mentioned places, at areas of 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.

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2. Newspapers: heading Malayalam newspaper, The Hindu, Indian Express.


3. Website.
4. Sponsoring cultural and institutional programs, management and dealers meet, plastic
manufactures 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 to
promote the brand. Once established the budget could be reduced followed poly is 3-5% of net
profit.
Distribution Channel:

Pricing Strategy:
In STAR pricing strategy is a special kind of plan formatted in order to meet the changes
of external factors particularly from the policies of competitors. Pricing strategies change with
competitive situation. Some of the common pricing strategy followed STAR plastics are:
1. Competitive pricing.
2. Premium pricing.
1. Competitive pricing:
It depends upon market condition competitors price, seasonal variation etc. customers are
very much aware of the quality and price of the product.
2. Premium pricing:

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In the case of suction and delivery hose, adopted a premium price strategy to utilize the ISI
marking and brand image. As the brand awareness is less with customers market will still
depends on price of the product.
In the case of new product:
Following pricing strategy followed in the case of new products:
1. Skimming price policy:
Company adopts skimming price policy in the case of new products. This is done with the basic
idea of gaining a premium from those buyers who always ready to pay a much higher price
than others. The main reason for adopting this strategy is to attract the consumers of high
income group. .
2. Penetration price policy:
Sometimes company adopt penetration price policy that means changing low price from
beginning in order to stimulate the growth of the market and to capture a large share of it. Since
the customers with low income are able to purchase it.
Price Fixation:
Price of the product depends on two components:
a. Cost of raw material - variable.
b. Operational &Processing cost - fixed.
Product price changes with change in raw material price, which is considered as a
variable. Minimum period of two weeks taken for price revision, though in some cases raw
materials price fluctuates each day.
Risk Involved:
Usually bad debts may occur in a business concern. But in STAR PLASTICS till now no bad
debts have been incurred. The usual credit period given to customers is 15 days. If one customer
delays the payment, they collect the amount by the way of sending reminders to him, although
they are keeping some amount as reserve for bad and doubtful debts. The society is keeping
large quantities of direct materials as stock because the price of such materials is growing day

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Organisation Study Report on Star PVC pipes & fittings

by day. Therefore these excessive raw materials dont result in loss though some heavy
investment is required in it.
To avoid the risk involved in transportation of goods to customers outside Kerala, the goods
are insured accordingly. It helps the society to avoid the risk involved in transporting goods to
distant places.

3.4 Human Resource Department


Human resource management involves personnel management, personnel administration,
employee welfare, manpower planning, industrial relations etc.Human resource department is
headed by General Manager and assisted by all the department heads, factory managers, and
branch managers.
STAR does pro-active approach to managing people in the organization. It constitutes a
series of integrated decisions that helps to consolidate the employment relationship and
believes that their quality contributes to the efficiency of the organization and helps the
employees to achieve their objectives.
In the case of production centers, factory manager manages all personal staff and creates a
good relationship with office staff and workers. He undertakes their wants. He will motivate
entire 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 the
general manager. In the branch offices Branch manager maintains the warmth employee
relationship and assessment and training is provided by branch manager in consultations with
marketing manager and the General Manager.

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Organization Structure:

HUMAN RESOURCE

TOP MANAGEMENT

BOARD OF DIRECTORS

CHEIEF ACCOUNTANT
FINANACIAL
DIRECTORS

MIDDLE
MANAGEMENT

SUPERVISORY
MANAGEMENT

DEPARTMENTAL HEADS

SENIOR SUPERVISORS

SKILLEDWORKERS

DIVISIONAL HEADS

INTERMEDIATE
SUPERVISORS

SEMI- SKILLED WORKERS

SECTIONAL HEADS

OPERATIONAL
MANAGEMENT

UNSKILLED WORKERS

Working Hours in STAR:


Office time begins with 9 A.M up to 5.30 P.M. In that time all transactions and official function
of that day are completed. All functions are controlled by HR Manager. HR Manager 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 Department


Production is the core function concerned with STAR as it has wide range of products and
production take place in plants located at faraway places. More over as faced with stiff
competition, the only way to increase the profit is by the cost reduction, as price increase is not
at all possible. So each unit has its own research and development facilities working for the

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Organisation Study Report on Star PVC pipes & fittings

better production functions to increase the efficiency in a way result in cost reduction.
Production takes place in six production centers located at different place. Each division is selfreliant in its activities of manufacturing, quality control, research and development production
center is headedby factory managers reports to a production manager at the corporate office.
Organization Structure:
PRODUCTION
MANAGER

FACTORY
MANAGER

ASST. MANAGER
(ADMINISTRATION)

PRODUCTION
SUPERVISORS

ACCOUNTANT

WORKER

STORE IN CHARGE

QUALITY IN CHARGE
(TECH & R&D)

CASHIER

CLERK, RECEPTION

The Companys production department handles the production of PVC pipe fittings. The main
raw material for product is Resin and other related components like chemicals. 95% resin and
5% other chemicals are used for the production. The plant is set up in process layout. The raw
materials go through the various processes for development of final product. Other than
company fittings Company also produce solvent cement and in different measures. There are
20 machines in production plant, each costing up to 35 lacks.
Depending upon the type of products, the production process is divided in to three:
Extrusion: - For rigid pipes and flexible hoses.
Injection Molding: - For PVC Pipe Fittings.
Mixing: - For solvent cement.

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Organisation Study Report on Star PVC pipes & fittings

3.6 Purchase Department


The purchase department is entrusted with the function of purchasing row materials. In the
present scenario with the cut throat competition, cost reduction is practiced in every sphere of
the business and purchase is one of the important functions where cost can be highly controlled.
High quality materials with lower cost became the motto of every organization for a meaningful
survival, for this organizations practice supplier rating and vender management. There is a
centralized purchase department headed by purchase manager who is responsible for taking
purchase decisions for all units. The decisions are made on the basis of following factors:

Market conditions

Availability of raw materials

Price of raw materials

Organization Structure:

PURCHASE MANAGER

SENIOR ASSISTANT

OFFICE ASSISTANT

The purchase manager concerns with the factory managers regarding the technical
specifications, manufacturer, quality standards, cost of materials, availability, time delay etc.
In case of engineering goods, testing equipments, speciality chemicals, instruments etc the
purchase manager seeks help from the engineers and the other technical persons working with
the research and development. Purchase manager also works in coordination with the chief
accountant, to know the position and about the credit position with the suppliers.

Role of Purchase Manager:

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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 department
about the requirements of materials. The information is passed through the purchase intent
issued by factory manager to the purchase manager. In case of regular product like stationary
and small purchase, the store in charge issues the purchase intend giving a copy to the factory
manager item specification, required quantity, name of the manufacture, approximate costs etc.
are mentioned in the purchase intend. The purchase department then enquires with the suppliers
and invites quotation. From the received quotation mentioning the offered price, mode of
payment, discount if any, time need for dispatches etc., purchase department chooses the 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 the
credit limit etc. with the approval of accounts department, purchase manager then sends a
purchase order to the supplier. In case of new materials or new supplier, purchase department
insist or samples to be supplied before the purchase. These samples are tested within house
laboratories. Orders are given only when the sample confirms to the required quality levels.
B.Store
Store is very important to arrange different items of materials in a systematic manner. Store
records information relating to receipts and issue of materials and products. Proper storage is
essential for material cost control. Store is headed by the store in charge who report to the
factory manager and purchase manager. Each production center has its own store. Material
purchasing is done as a centralized activity and then it is supplied to stores at production
centers. Store is divided into three:

Raw material stores.

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Organisation Study Report on Star PVC pipes & fittings

Engineering Stores (electrical suppliers).

Finished goods store.

3.7 Systems Department


STAR started the computerization of its departments way back. Personal computers
with UNIX as the operating system were used in the late 1980s. But the computers of various
departments are not networked. In the year 1999, STAR went to upgrade its EDP setup further.
Costume made ERP software was developed for its units and head office. The installation of
ERP software made the work of the departments of STAR easier. Being costume made this
ERP software, with SQL RDBMS, Front end on Visual basic and windows 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. One
server is networked and other is kept as back up, another one is used as internet server. Other
units totally have about eight servers and about 50 nodes. Their latest plants at DUBAI,
CHENNAI has computerized control room for monitoring and production controlling. In
addition with ERP system, STAR also had implemented an electronic messaging solution with
its organization, which is centered on the companys website. This messaging solution obviates
the communication bottle neck of company.

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Organisation Study Report on Star PVC pipes & fittings

CHAPTERIV
PORTERS FIVE
FORCES MODEL

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Organisation Study Report on Star PVC pipes & fittings

PORTERS FIVE FORCES MODEL


Porter's Five Forces is a framework for industry analysis and business strategy development
formed by Michael E. Porter of Harvard Business School in 1979. It draws upon Industrial
Organization (IO) economics to derive five forces that determine the competitive intensity and
therefore attractiveness of a market. Attractiveness in this context refers to the overall industry
profitability. An "unattractive" industry is one in which the combination of these five forces
acts to drive down overall profitability. A very unattractive industry would be one approaching
"pure competition", in which available profits for all firms are driven down to zero.
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 for
growth. The plastics industry in India has made significant achievements ever since it made a
modest but promising beginning by commencing production of polystyrene in 1957.The Indian
plastic industry conforms to the levels of sophistication required to produce plastic and plastic
products of international quality standards. The consumption of plastics 1999 is estimated at
twelve million tons by the year 2010. The demand for plastics is growing approximately @
22% annually and plastic consumption in India is expected to increase from almost 2.7 million
tons of various commodity plastics in 1998 to almost fifteen million tonsby 2010.
During the organizational study undertaken in Star Plastics, Kerala, the information collected
regarding its competitors, products, the bargaining power of customers and the suppliers and
the intensity of competitive rivalry has been analyzed using Porters five forces model and is as
follows:

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Organisation Study Report on Star PVC pipes & fittings

1. The Threat of the Entry of New Competitors


Profitable markets that yield high returns will attract new firms. This results in many new
entrants, which eventually will decrease profitability for all firms in the industry. Unless the
entry of new firms can be blocked by incumbents, the abnormal profit rate will tend towards
zero (perfect competition). The history of star is the history of pipe fittings production in south
India. In 1983, Vikas plastics and Star plastics amalgamated to form Star plastics, Mullurkara
that is 20kms away from Thrissur town, the cultural capital of Kerala. In 1988, star became the
number one PVC pipe fitting manufacture in south India it has received the best ISI mark for
quality. Afterwards more organizations came into the plastic manufacturing industry 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 pipefittings. 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 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.

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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 company's
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 ultramodern 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.

III.

MazPolymers, Industrial Development Plot, Athani P O, Peringandoor


Thrissur.

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Organisation Study Report on Star PVC pipes & fittings

2. TheThreat of Substitute Products or Service


The threat of substitute is high when the price of that substitute product falls or it is
easy for consumers to switch from one substitute product to another or when buyers are willing
to substitute. Star Plastic product constitutes plumping equipment materials such as PVC pipes,
fittings, SWR fittings and PVC adhesive. Star fitting is leading names fittings over all the states.
STAR PVC fittings are manufactured from the finest grade PVC resin trusted and acclaimed
all over the country for quality. Due to the high tensile strength and reliability used in industry,
homes etc. STAR fittings are available in above 10 shapes and measures vary from 20mm to
200mm. They are also available in 3 different colors. Injection molded 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 equipmentsall over
the world is by using the organochlorine called Poly Vinyl Chloride (PVC). STAR is also
developing all type of pipe products (rigid pipes, flexible hoses etc.) using the same
organochlorine PVC. The competitors are also using the same technology. So there is no
substitute products made from other organochlorine, the plastic products are all made from the
same organochlorine PVC.

3. The Bargaining Power of Customers (Buyers)


Buyers or customers can exert influence and control over an industry in certain
circumstances. 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.

Nowadays customers have the buying power and they have the choice in the market to choose
the product what they want. In 1994 Star began the production and marketing of flexible hoses
under the brand name STAR FLEX. Before that Nediyara group came with Soft PVC Garden
Hoses and it has a good name among the customers and has a good market also. So when Star
came with flexible hoses, it is difficult to market the product. But while comparing to other
companys products, Star have international standards and also have the ISI certification and
the product flexible hose is for both domestic and industrial use. This made Star to gain

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Organisation Study Report on Star PVC pipes & fittings

supremacy of the products over others products, market ascendancy was not difficult. Star now
is a ubiquitous presence in the entire Middle-East and South Africa. In 2001, STAR received
the ISO 9002 Certification, yet again the first in South India. The customers of STAR are
satisfied with their products. They continue to use the product and will purchase them in future.
Quality is the main factor that helps STAR to compete with other brands. Advertisements were
done in print media only.

4. The Bargaining Power of Suppliers


Suppliers are also essential for the success of an organization. Raw materials are needed to
complete the finish product of the organization. Suppliers do have power. This power comes
from:

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 market in
India mostly in southern region. STAR has a monopoly market in southern area. The company
can market their product very smoothly through the market segmentation. The company is
selling their products by dividing the market state wise. The company concentrates in Tamil
Nadu, AndhraPradesh, Karnataka and Kerala. In North India the company continues marketing
of their products.
To be more precise, the product of the company makes its presents felt in the following
counties:

INDIA

UAE

RUSSIA

IRAN

AFGHANISTAN

MUSCAT

QATAR

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BAHRAIN

SAUDI ARABIA

EGYPT

SUDAN

ETHIOPIA

SOMALIA

SOUTH AFRICA

5. The Intensity of Competitive Rivalry


If entry to an industry is easy then competitive rivalry will likely to be high. If it is easy for
customers to move to substitute products for example from coke to water then again rivalry
will 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 many organizations
are coming to PVC pipes & Fittings manufacturing industry yearly, the competition is also
becoming higher. In the last one decade unparalleled growth was witnessed in Star group of
companies to emerge as a leader in the PVC fitting and to diversify into the manufacture of
suction hoses, drainage fittings and PVC pipes. The companies operation includes
manufacturing of PVC fittings and allied products in clearly defined core business areas at
home and overseas. The Star group of companies is the single largest plastic industry in private
sector over years, star group has steadily developed into a professionally managed company
comprising of 8 manufacturing unit in 3 production centers with a total installed capacity of
3850 meter per annum-8 divisions and effective centralize support services wholly dedicated
to the most existing standards of quality and customer services, constantly motivated by the
need to ensure total product satisfaction. In the year 2000, to take the challenge of globalization,
star set up a core team and applied core ISO certification. In August 2001, star became the first
PVC fittings manufacture in south India to receive the ISO 9002 certification. Now Star Plastics
is the market leader in South India. The company has made its presence significantly in Middle
East market also.

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Organisation Study Report on Star PVC pipes & fittings

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.

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Organisation Study Report on Star PVC pipes & fittings

CHAPTER V
SWOT
ANALYSIS

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Organisation Study Report on Star PVC pipes & fittings

SWOT analysis is a strategic planning tool used to evaluate the strengths, weakness,
opportunities and threats involved in a project or in a business venture. It involves specifying
the objectives of the business venture or project and identifying the internal and external factors
that are Favorable and unfavorable to achieve the objectives.
Strength:
1. The company has a good brand image among the consumers.
2. Products accepted all over the world for its quality.
3. Multi Unit Multi Product organization catering all products in PVC pipe industry.
4. Global presence in Middle East Asia, Europe, Africa.
5. The company has the direct marketing network with well established distribution
system
6. Dedicated marketing force with effective promotion strategy.
7. The company has fully computerized departments and production units and corporate
office is connected through intranet.
8. Committed work force guided by technically skilled superiors, maintaining warmness
in relation helps in delivering a combined effect.
9. Stringent quality measures adopted, backed by a strong quality control and R & D
team.
Weakness:
1. Organization in flexibility (Flexible working hours and Policies for flexible working).
2. Limited branches.
3. Lack of access to the key distribution channels (Not concentrating in the rural areas of
south India where there are lot of business possibilities in agriculture sector. Now the
organization is concentrating mainly in the construction Industry).
4. Advertisements are done through print media only.
Opportunities:
1. PVC pipe industry is in growth stage so PVC pipe industry has a greater opportunity to
grow.
2. Immense opportunities as infrastructure development in India are growing at a faster
pace.

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Organisation Study Report on Star PVC pipes & fittings

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.

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Organisation Study Report on Star PVC pipes & fittings

CHAPTER VI
FINDINGS AND
SUGGESTIONS

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Organisation Study Report on Star PVC pipes & fittings

Findings:
Star Plastics is the number one PVC pipe fitting manufacturer in south India and it has received
the best ISI mark for quality. In August 2001, Star became the first PVC fittings manufacturer
in south India to receive the ISO 9002 certification.
International Standard that is being followed as far as the quality of the products is
concerned.
Has well trained employees to operate the machines.
Provides excellent services to its employees like canteen, medical facilities,
transportation etc.
Premises are huge and designed in such a way that the raw materials can easily
transferred from one department to another.
Safety is given main preference.
Discipline is being followed.
Pollution level is low.
Quality of the products is assured by doing nine different quality tests.
Everyday feedbacks are taken.
Excellent training and development system.
Employee performance appraisal system.
No discrimination for race, religion, decision making and actions.

Suggestions:
Problems can be detected early and treated to prevent deterioration welfare and cost
reduction.

Annual medical checkup for all workmen and employees. A small amount can be
deducted from the salary one time.

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).

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Organisation Study Report on Star PVC pipes & fittings

CHAPTER VII
CONCLUSION

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Organisation Study Report on Star PVC pipes & fittings

CONCLUSION
The study conducted at STAR GROUP OF COMPANIES THRISSUR which is the pioneer
and market leader in the PVC pipe product in South India, helped in getting a wider outlook
about the business environment and managing an organization. Organization has six production
centers and five marketing branches spread all over South India and Middle East Asia, with
operation all over the world.
It was a general study regarding all functions and aspects of STAR. The company has seven
functional departments through which it was operating. It is found that company has a good
working environment and cordial relationship is maintained between all departments for the
smooth functioning and achievement of the organization goal of maintain the companys brand
image among the customers. Porters Five Forces Model is done in the period of study to analyze
the threat of the entry of new competitors and substitute products or services, the bargaining
power of the customers and the suppliers and the intensity of competitive rivalry. SWOT
analysis is also done to analyze the Strength, Weakness, Opportunities and Threats of the
organization.
Star has made are of most advance technology and up to date knowledge. Fully automated
production has been put to use long time ago U.S made microprocessor controlled machinery
is used to for production. Star received the ISI mark for quality and ISO 9002 certification for
quality by TUV Germany, and ISO 14001: 2001 certification. All the products are of
International standard. At present company is able to later about 10% of the market
requirements. In order to later the complete needs the company is planning to increase the
production level to maximum extent possible. The company is planning to increase the present
product level of Dubai units. The research and development team of STAR group is engrossed
in developing new product for the international markets. This has helped them to gain valuable
insight that prompt the group to search alternative ways for manufacturing better products in a
cost effective manner.

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Organisation Study Report on Star PVC pipes & fittings

CHAPTER VII
BIBILIOGRAPHY

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Organisation Study Report on Star PVC pipes & fittings

BIBILIOGRAPHY
Books Referred:
Philip Kotler, Jha, and Koshy: Marketing management.
Roger. A. Kerin, Steven. W. Hartley, Eric. N. Berkowit, William Redlius: Marketing
Management.

Websites Referred:
www.wikipedia.com
www.stargroupind.com
www.google.com

Journals:
Star Plastics Company Magazine.

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