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PROJECT REPORT

ON
WASH RIGHT LIMITED

Submitted By
PATHADARSHINI PARIJA

BATCH – 2009-11
LEVEL – ACL-II
ROLL No. – 16109010
WLCI
CAMPUS - BHUBANESWAR
ANS 1:
Having a marketing strategy can be the life or death of a business. Effective marketing is about getting
our products or services in front of the consumer where they will see it and be attracted to it.
Marketers planning is an essential task that must be continually undertaken. It is shifting market conditions,
customer needs and competitive threats, & it insure that what worked in the past will not work in the future,
thus requires revisions in how a product is marketed.
So out of the 19 marketing strategies the 5 most lucrative marketing strategy in my view are:

• Competitive strategies
• Target market strategies
• Pricing strategies
• Promotion strategies
• Advertising media strategies

Wash Right has already established its brand in the domestic market with the help of technological
advancement & by selling the product in lesser price as compared to the competitors. Today the washing
machine market is ruled by some major players like Videocon, LG, Samsung & few others. So to remain in
the competition Wash right needs to steal the market share from these competitors rather then creating their
own market because in such a stuff competition with such a huge brands operating it will be really tuff to
create a distinct market. So it will be a wise move to steal the customers with newer technology at low price.
As it is today the technology driven society.

Competitive strategy is concerned with how a company can gain a competitive advantage through a
distinctive way of competing. This dynamic markets and technologies have called into sustainability of
competitive advantage. Under pressure to improve productivity, quality, and speed, there is the need to
embrace tools such as TQM, benchmarking, and reengineering. The essence of strategy is choosing a unique
and valuable position rooted in systems of activities that are much more difficult to match.
Competition for profits goes beyond established industry rivals to include other competitive forces as well:
customers, suppliers, potential entrants, and substitute products. Understanding the competitive forces, and
their underlying causes, reveals the roots of an industry’s current profitability while providing a framework
for anticipating and influencing competition (and profitability) over time. A healthy industry structure
should be as much a competitive concern to strategists as their company’s own position. Understanding
industry structure is also essential to effective strategic positioning. Defending against the competitive
forces and shaping them in a company’s favor are crucial to strategy. Competitive strategy for suppliers
helps to build a good relation with the suppliers & hence helps to reduce cost while buying bulk of
materials, it also helps to build a shield against the potential entrants without having the effect of their
presence in the market & makes you ready for any substitute of product. Taking the competitive advantage
of your rival automatically adds on to your profit pocket.

Target market should be chosen wisely because this is the area which decides your growth in the future. As
most of the demand for washing machine comes from North, West & South so it will be easy to penetrate
into these market segments but again it will be tuff to capture the market as there will be more competition.
So mostly it will be good to target the market with more working people in the family, bachelors mostly the
upper middle class & the middle class who can really afford to buy our products which will automatically
save the cost which could otherwise have been incurred in testing the product in different segments. But this
all should be with newer technologies, which will be real difficult to imitate & which makes their work
easier & faster.

Pricing of a product is the most essential part for the success of a product. So to compete in the market the
price should be kept low as so many effective brands are operating in the market. So to beat them low
pricing strategy will be really effective because consumers like better technology with cheaper price & opt
for that. This will not only help to acquire the market share but also will make the customer to shift to the
Wash right’s product. Product with best pricing helps to penetrate into the market & create more demand
which ultimately helps to increase the price with less production cost.

Promotion is one of the essential factors which help customers to get through the product. It helps to bring
people to know that it is for them. It helps in differentiating the product from its competitors with better
facilities. So it is very important to promote your product at the right time, right place & through right
means. A successful product means nothing unless the benefit of such a service can be communicated
clearly to the target market. So as it is an electronic item so it will be real good to promote through
advertising, events where you can showcase the use of your product live. These all adds on to your customer
basket.

As we talked about the promotion above, so advertising plays a crucial role to get into the customers notice.
So choosing the right means of advertising makes the whole process worth. In today’s competitive line your
advertising must be catchy, unique & with some real good tag line. To make the advertising cost effective I
would suggest those media’s which can reach max to max people like television, newspaper, and internet.
These all have a very good reach on to the people.
So all of these 5 strategies some way or other adds on to the effective working & profit of a company. This
helps in building the future of the product & ultimately makes to reduce cost of production with better
product line & more market share.
The whole of the marketing plan includes, targeting the upper middle & middle class people with new
technology & low price as compared to competitors which will make them to go for a trial with our product
& getting better quality product & service will help to increase the customer base. Proper investment in
promotion & advertising & all this will amount some around to 80 lakhs. So preparing the budget is also
crucial. And there should not be continuous change in the process until & unless there is a good reason.
ANS 2:

Cash Budget
Wash Right Limited
For the Period July - December 2009

PARTICULARS JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER


Opening Balance 150.00 744.00 694.00 997.00 1188.50 1543.80

A. RECEIPTS:
Cash sales 200.00 200.00 200.00 200.00 200.00 200.00
Credit sales 1000.00 600.00 800.00 1000.00 1200.00 1400.00
Dividend from
Investment 0.30
Calls in arrears 40.00 40.00

TOTAL 1390.00 1544.00 1734.00 2197.00 2588.80 3143.80

B. PAYMENTS:
Material
purchased 400.00 600.00 400.00 600.00 700.00 800.00
Plant and
Machinery
installed 40.00
R & D (extn) 2.00 2.00 2.00 2.00 2.00
Hire purchase 4.00 4.00 4.00 4.00 4.00 4.00
Sales commission
on credit(5%) 40.00 50.00 60.00 70.00 80.00 90.00
Wages 80.00 80.00 100.00 100.00 100.00 110.00
Production
overheads 56.00 46.00 56.00 54.00 58.00 60.00
Administration
overheads 30.00 29.00 30.00 30.00 31.00 31.00
Selling overheads 15.00 14.00 19.00 20.00 22.50 21.50
R&D 9.00 11.00 12.00 12.50 12.50 15.00
Distribution
expenses 12.00 14.00 14.00 16.00 15.00 16.00
Income tax 100.00
Preference share
Dividend 20.00

TOTAL 646.00 850.00 737.00 1008.50 1045.00 1149.50

CASH IN HAND 744.00 694.00 997.00 1188.50 1543.80 1994.30


PARTICULARS JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER

Opening Balance 150.00 344.00 494.00 997.00 1388.50 1943.80

A. RECEIPTS:
Cash sales 200.00 200.00 200.00 200.00 200.00 200.00
Credit sales 600.00 800.00 1000.00 1200.00 1400.00 1600.00
Dividend from
Investment 0.30
Calls in arrears 40.00 40.00

TOTAL 990.00 1344.00 1734.00 2397.00 2988.80 3743.80


B. PAYMENTS:
Material purchased 400.00 600.00 400.00 600.00 700.00 800.00
Plant and Machinery
installed 40.00
R & D (extn) 2.00 2.00 2.00 2.00 2.00
Hire purchase 4.00 4.00 4.00 4.00 4.00 4.00
Sales commission on
credit(5%) 40.00 50.00 60.00 70.00 80.00 90.00
Wages 80.00 80.00 100.00 100.00 100.00 110.00
Production overheads 56.00 46.00 56.00 54.00 58.00 60.00
Administration
overheads 30.00 29.00 30.00 30.00 31.00 31.00
Selling overheads 15.00 14.00 19.00 20.00 22.50 21.50
R&D 9.00 11.00 12.00 12.50 12.50 15.00
Distribution expenses 12.00 14.00 14.00 16.00 15.00 16.00
Income tax 100.00
Preference share
Dividend 20.00

TOTAL 646.00 850.00 737.00 1008.50 1045.00 1149.50

CASH IN HAND 344.00 494.00 997.00 1388.50 1943.80 2594.30


ANS 3:

MRP calculates and maintains an optimum manufacturing plan based on master production schedules, sales
forecasts, inventory status, open orders and bills of material. If properly implemented, it will reduce cash
flow and increase profitability. MRP will provide you with the ability to be pro-active rather than re-active
in the management of your inventory levels and material flow.

Material Requirements Planning can provide benefits to the company in a large way as the biggest problem
with Wash Right Limited was managing the resources properly. Though there was a decline in the demand
of its product & a huge stock was lying idle still Wash right was not able to ask the suppliers to stop the
supply because they have already made a agreement for that & any changes in that would have cost them a
lot as compensation for breaking the agreement & also it would have led to breakage in the production flow
with idle lying capacity. They planned a huge amount of inventory requirement which was much more then
the past experience. So there was a huge problem in management of the resources along with the planning
of production. So the implementation of MRP can help the company to overcome these problems & get the
benefit of:

Reduced Inventory Levels


Reduced Component Shortages
Improved Customer Service
Improved Productivity
Reduced Purchasing Cost
Improve Production Schedules
Reduced Manufacturing Cost
Reduced Lead Times
Less Scrap and Rework
Higher Production Quality
Improved Communication
Reduced Freight Cost
Reduction in Excess Inventory
Improved Supply Schedules
Improved Calculation of Material Requirements
Improved Competitive Position

MRP will plan production so that the right materials are at the right place at the right time. MRP determines
the latest possible time to produce goods, buy materials and add manufacturing value. Proper Material
Requirements Planning can keep cash in the firm and still fulfill all production demands. It is the single
most powerful tool in guiding inventory planning, purchase management and production control. MRP is
easy to operate and adds dramatically to profits.

ERP Stands for Enterprise Resource Planning. It is a software system implemented in an organization, to
increase productivity and enable efficient utilization of resources. An ERP system, if properly implemented
can do wonders for the organization. But if the implementation fails, its outcome is drastic.
ERP Software helps to manage the resources in a tightly integrated environment. The benefits of a properly
implemented ERP system are numerous. Each activity can be monitored and will be reflected in the
financial results. More, accurate decisions can be made. Production can be controlled and redundant
inventory can be avoided. One main reason for decrease in profit was a huge interest. This had happened
due to short term borrowings. Short term borrowing was done to increase the inventory levels which was
misjudged.

Implementation of ERP assumes a greater focus in this context. It calls for the total cooperation from the
staff and the implementation team. Many organizations are reluctant to leave their old system to adopt the
new system. Implementation team should be able to convince the benefits of the new ERP system, and
should explain the solution in its totality. All the data should be entered in a dummy server first. Once the
client is properly trained on the new system, it can be transferred to the live server where the actual ERP
system resides. This dummy server is the exact replica of the original server where the original data resides.

Training the end users is also the responsibility of the implementation team. They have to see that the
trainees are getting the system properly. Ultimately, they are going to use the system. Lack of proper
training can lead to the failure of the system. Accounts receivable and cash requirements of the company do
not indicate any significant increase. The main financial problem faced by the company was the increase in
inventory level .But the company had no problem in accounts receivable since most of the distributors were
paying in time to a very large extent.

Proper implementation of both MRP & ERP helps to coordinate the various work centers as products
progress through them.
ANS 4:
Facing the challenges associated with getting a product to the right place at the right time at the lowest
cost, a manufacturing firm may sell their products through a set of independent firms These dealers have
greater market knowledge and flexibility, giving the manufacturer cost and investment reductions. Shared
information, in terms of the extent to which channel members proactively exchange information with each
other, has been found to be critical for the effective functioning of distribution channels. Thus, Information
Systems (ISs) could enhance these inter-firm relationships facilitating an efficient and effective
informational flow. The order processing software implemented in the WRL was not able to deal with the
partially delivered orders & hence it leads to loss of sales & due to incomplete orders the distributors
switches to the competitors product.
In WRL there is the MIS which divides the market region wise & helps in locating the distributors evenly. It
also helps in the smooth flow of information from producer to shops / stores or various distribution channels
& wise versa. Each & every details of the order is maintained under this system.
The company should also follow OAS system (Office Automation System) I.e. they help data workers,
coordinate workers and communicate customers, suppliers and others. It also handles and manages
documents. The order processing system can also be used to its maximum. The order processing system
processes the order for the availability of the item and allocates the stock to orders received from the
salesman. It also helps in maintaining the inventory level. But is not able to keep the details of old orders or
orders partially delivered which is replaced by the new orders which leads to loss of sales. So some new
technology or modification should be done in this system to keep the record of the old orders.
It also helps in doing some sales analysis as per the following parameters:
Division wise sales analysis
Distributorship-wise sales analysis
Region-wise sales analysis
Product-wise sales analysis Salesmen-wise sales analysis.
On the basis of data collected from this some sort of forecasting is also done & managers got a comparison
basis to compare the actual sales with that of the targeted.

MIS used in the organization serves the mid- management level, provide summary, schedule and exception
reports & keeps the organization up-to-date about the happenings in the market.
ANS 5:
Performance appraisal is necessary to measure the performance of the employees and the organization
to check the progress towards the desired goals and aims. People differ in their abilities and their aptitudes.
There is always some difference between the quality and quantity of the same work on the same job being
done by two different people. Performance appraisals of Employees are necessary to understand each
employee’s abilities, competencies and relative merit and worth for the organization. The latest mantra
being followed by organizations across the world being – "get paid according to what you contribute" – the
focus of the organizations is turning to performance management and specifically to individual
performance.
Performance reviews help supervisors feel more honest in their relationships with their subordinates and feel
better about themselves in their supervisor roles. Subordinates are assured clear understanding of what's
expected from them, their own personal strengths and areas for development and a solid sense of their
relationship with their supervisor. Avoiding performance issues ultimately decreases morale, decreases
credibility of management, decreases the organization's overall effectiveness and wastes more of
management's time to do what isn't being done properly.
Performance appraisal can be done effectively by following these few steps:

1. Design a legally valid performance review process


Performance appraisals should be: job-related and valid; based on a thorough analysis of the job;
standardized for all employees; not biased against any race, color, sex, religion, or nationality; and
performed by people who have adequate knowledge of the person or job. Be sure to build in the process, a
route for recourse if an employee feels he or she has been dealt with unfairly in an appraisal process, e.g.,
that the employee can go to his or her supervisor's supervisor. The process should be clearly described in a
personnel policy.

2. Design a standard form for performance appraisals


Include the name of the employee, date the performance form was completed, dates specifying the time
interval over which the employee is being evaluated, performance dimensions (include responsibilities from
the job description, any assigned goals from the strategic plan, along with needed skills, such as
communications, administration, etc.), a rating system (e.g., poor, average, good, excellent), space for
commentary for each dimension, a final section for overall commentary, a final section for action plans to
address improvements, and lines for signatures of the supervisor and employee. Signatures may either
specify that the employee accepts the appraisal or has seen it, depending on wording on the form.

3. Schedule the first performance review for six months after the employee starts employment
Schedule another six months later, and then every year on the employee's anniversary date.

4. Initiate the performance review process and upcoming meeting


Tell the employee that you're initiating a scheduled performance review. Remind them of what's involved in
the process. Schedule a meeting about two weeks out.

5. Have the employee suggest any updates to the job description and provide written input to the
appraisal
Have them record their input concurrent to your recording theirs. Have them record their input on their own
sheets (their feedback will be combined on the official form later on in the process). You and the employee
can exchange each of your written feedback in the upcoming review meeting. (Note that by now, employees
should have received the job descriptions and goals well in advance of the review, i.e., a year before. The
employee should also be familiar with the performance appraisal procedure and form.)

6. Document your input -- reference the job description and performance goals
Be sure you are familiar with the job requirements and have sufficient contact with the employee to be
making valid judgments. Don't comment on the employee's race, sex, religion, nationality, or a handicap or
veteran status. Record major accomplishments, exhibited strengths and weaknesses according to the
dimensions on the appraisal form, and suggest actions and training or development to improve performance.
Use examples of behaviors wherever you can in the appraisal to help avoid counting on hearsay. The best
way to follow this guideline is to consider what you saw with your eyes.

7. Hold the performance appraisal meeting


State the meeting's goals of exchanging feedback and coming to action plans, where necessary. In the
meeting, let the employee speak first and give their input. Respond with your own input. Then discuss areas
where you disagree. Attempt to avoid defensiveness; admitting how you feel at the present time, helps a
great deal. Encourage participation and be supportive. Come to terms on actions, where possible. Try to end
the meeting on a positive note.

8. Update and finalize the performance appraisal form


Add agreed-to commentary on to the form. Note that if the employee wants to add attach written input to the
final form, he or she should be able to do so. The supervisor signs the form and asks the employee to sign it.
The form and its action plans are reviewed every few months, usually during one-on-one meetings with the
employee.

9. Nothing should be surprising to the employee during the appraisal meeting


Any performance issues should have been addressed as soon as those issues occurred. So nothing should be
a surprise to the employee later on in the actual performance appraisal meeting. Surprises will appear to the
employee as if the supervisor has not been doing his/her job and/or that the supervisor is not being fair. It is
OK to mention the issues in the meeting, but the employee should have heard about them before.

So performance appraisal brings the whole performing process in a flow & also helps to measure the
standard of performance. It motivates the employees performing well to keep on the good work going & to
those who still lags somewhere to perform even better to get the appraisal.

Compensation management is crucial to retaining employees, keeping morale high, and enforcing a
performance-based culture that’s focused on achieving goals. It need configurable compensation
management plans to help company enforce budget guidelines across the enterprise.

The Sum total compensation management system, as part of the unified Sum total Talent Development
Suite, aligns equitable compensation with performance to retain star performers, reduce employee turnover,
and engage and maintain a strong, productive workforce. By integrating compensation management
planning with performance management processes, our easy-to-use solution ensures that our employee
increases are fair. Our intuitive compensation management software helps accurately reward the top
performers and equitably distribute consistent salary adjustments based on merit. So compensation
management is totally a fair deal distributed accordingly with the performance. So the person with higher
performance gets the best compensation.
Bibliography

1. Google Search Engine

2. Wikipedia

3. Some links:
a) www.inventorysolutions.org
b) marketingplanandstrategy.com
c) www.performance-appraisal.com
According to Anthony, R. A, organizational processes fall into three levels - strategic planning, management
control and operational control. Even though much of ERP success has been in facilitating operational
coordination across functional departments, successful implementation of ERP systems benefit strategic
planning and manegment control one way or other.

Help reduce operating costs

ERP software attempts to integrate business processes across departments onto a single enterprise-wide
information system. The major benefits of ERP are improved coordination across functinal departments and
increased efficiencies of doing business. The immediate benefit from implementing ERP systems we can
expect is reduced operating costs, such as lower inventory control cost, lower production costs, lower
marketing costs and lower help desk support costs.

Facilitate Day-to-Day Management

The other benefits from implementing ERP systems is facilitation of day-to-day management . The
implementations of ERP systems nurture the establishment of backbone data warehouses. ERP systems
offer better accessibility to data so that management can have up-to-the-minute access to information for
decision making and managerial control. ERP software helps track actual costs of activities and perform
activity based costing.

Support Strategic Planning

Strategic Planning is "a deliberate set of steps that assess needs and resources; define a target audience and a
set of goals and objectives; plan and design coordinated strategies with evidence of success; logically
connect these strategies to needs, assets, and desired outcomes; and measure and evaluate the process and
outcomes." (source) Part of ERP software systems is designed to support resource planning portion of
strategic planning. In reality, resource planning has been the weakest link in ERP practice due to the
complexity of strategic planning and lack of adequate integration with Decision Support Systems (DSS).

MORE ACCURATE

• Real time information throughout all entire company


• Better visibility into the performance of operational areas
• Data standardization and accuracy across the enterprise. Single version of “The Truth!”
• Best-practices or proven methodologies are included in the applications.

Creates organizational efficiencies.

Allows for analysis and reporting for long-term planning

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