Project Report In Industry, Government and Society On STAKE HOLDERS

Submitted to:

Prof. Deepak Srivastava

Submitted by:

harpal patel 094116

Submitted on:

21st February, 2011

About the Organization

Introduction: For over 30 years H.M.Industries has been a distinct entity in manufacturing of castor seed, cotton seed oil and cake along with cotton ginning and pressing business. By using the latest innovative manufacturing technology and premium quality compounds we are able to produce products that can minimize costs. Initially it was started with very small oil manufacturing unit but now it is looking towards sky. The firm was established in 1988 as a small unit of castor seeds oil manufacturing. Initially there were no technological use as it was much of labour intensive as to survive in initial stage with low cost manufacturing. No. employee ranging from 2-3 and majority of handling by family members. No formal structure. It was all group efforts from all family members. No competitive advantage in initial years.

 The growth stage begin with employment of new employee in office. New machinery in existing machine line were added. Increase in production capacity. Sale of products in greater market as Gujarat,Haryana,rajasthan ,others followed. As the market grew the opportunities were there to grab and it was rightly done by the firm. Expansion of the firm began as it started new cotton seed oil manufacturing plant which was same process like castor oil manufacturing. At this stage the use of proper office staff and skilled operation men were recruited. It increased firms goodwill in market. New technology was incorporated as to reduce labour cost. Employees were provided safety, health and fringe benefits to move along with firms growth. Firm then entered into ginning of raw cotton as a part of backward diversification to avail cotton seeds. Machinery for Cotton pressing was also installed. It was the golden phase of the business as it was all growth and it looked all skies. New technologies in all three production units were incorporated. This was the phase of change in organization. As duties were transferred to employees and they were given rights to take decisions.

 And now the it is at stability as there is effect of global recession which affected oil and cotton exports. It took place in diversification and expansion stage. New technology was incorporated in all production units. It was mainly to reduce labour dependability on production. As there was closer of many units we survived the scare due to continues technological change

Structure of business organization:-

Regarding the Organization Structure is concerned we have always had a simple structure without functional divisions until past few years.

We have always had a kind of one-man show. The Proprietor use to take all the decision be it of Sales, finance, Purchase and factory. Today, we can say that we have been able to develop an Organization Structure where activities are grouped & placed under different heads.

 But the level of Centralisation has not decreased to that extent, the proprietor is still the spearhead of all the Departments. Under factory manager there are supervisors and workers who initially was handled by chair person but now as the structure has evolved it is been carried on by factory manager. Finance manager is accompanied by two to three sub-ordinates who account directly to chair person. Sales are carried out by chair person but all the related works are managed by sales manager. Purchase manager is the most important function in our organization, so it is headed by family member alongside some experienced personnels for purchase of cotton.

STAKEHOLDER ANALYSIS Primary Stakeholders:

TECHNOLOGY PROCURMENT COMPETITORS Owner-Partner

SUPPLIERS

HUMAN RESOURCES

FINANCE

COTTON GINNING AND OIL MANUFACTURING

customers

1. SUPPLIERS: Suppliers would include two main things raw material suppliers and supplies suppliers. The effect of raw material suppliers as a whole would be directly on the working of whole production process. Supplies also plays important role as it affects a particular part of the process and it creates stoppage at that point. RAW MATERIALS: FARMERS:

Farmers are crucial stakeholder in cotton industry as they are the main producers of cotton. Cultivation of cotton by farmers every season is the main source of raw material for the industry. Availability of raw material in local market is key factor which constitute of task environment. Procurement of raw cotton and castor seeds from local market is very critical.

TRADERS/DALAL: Dalal and traders also affect cotton industry directly as they have all the track of raw material supply and demand they control the local pricing of raw cotton which is purchased from farmers. SUPPLIES:Caustic soda vendor, Boiler supplies, Straps suppliers, Bale cover supplier, Jute bags supplier are all part of basic supplies to a cotton industries. They affect them by hampering the production process. As any of the above mentioned supplies are short off then it would directly show its impact on production process.

2. HUMAN RESOURCES:Employees are said to be the real assets of the company as they are the once who cater services to the company and gets the task done. In other words, they are the task force of the firm. The firm has a really talented pool of young people who wants to make a mark in textile world and they are interested in a fair pay, safe and healthy growing environment for work as well as stability. Moreover, they have the power to strike or collective bargaining as well working for competitors and so they must be kept satisfied. We have employees such. Availability of skilled workforce for

operation is very important. No. of Office personnel are kept less as there is no as such marketing or sales work. Office staff Accountant Sales manager Cashier Operations HR: Labour

3. CUSTOMERS:The role of customer towards the business is also very important as they are integral part of system as they help to generate sales as it can in ways of following manner. Brokers Farmers Traders Export houses Refineries All of the above mentioned affect the business in direct manner as they help to generate sale to the company. It can be bifurcated as cotton ginning and cotton seed oil manufacturing. Here also farmers have major stake as they are the for most buyer.

4. FINANCE: Financial support from banks is critical in our business. Requirement of working capital is fulfilled by banks. For diversification and expansion availing loan is much easier. Banks: Banks support is much required in any agri business as the play important role in case of provision of working capital.

 Individual institution: individual institution are also stake holder in our business as they provide support during pick season as the business is in shortage of funds provided by bank.

5. TECHNOLOGY PROCUREMENT:Technology procurement is also important part of our business as it is changing very frequently and all the expansion plans depends much on technological changes. It is provided by; ATIRA: they provide quality and quantity of production equipment which are must for a growing business. INDIVIDUAL VENDORS: Individual vendors are also important for the technology procurement and also has stake in any textile processing.

6. OWNER-PARTNERThere are four partners in H M Industries i.e. Mr. Paresh, Founder, Mr. Dinesh, Mr. Viresh. The role of owner-partners is to handle their area of work as per their specialization and they have absolute authority over how to carry out their work, however they are accountable to other partners for their end results. They have high interest in the organization as they get their returns in form of remuneration, salary, and interest on capital, and a share in profit from the firm. Moreover, they have a right to say in important decisions relating to the firms activities and also can inspect the records and books of the firm. Thus, they must be managed closely.

7. COMPETITOR:-

Competitors are also important part of the stakeholder analysis as they help to motivate and change the prices of cotton seed oil cake. In local market there are three competitors who play important role on pricing of all final products.

Secondary Stakeholders:
LOCAL GOVERNMENT FASHION HOUSES FOREING GOVERNMENT SOCIAL ACTIVIST

NCDEX

MEDIA

TEXTILE ASSOCIATION

BUSINESS SUPPORT

GOVERNMENT

GENERAL PUBLIC

CCI

secondary stakeholders cotton industry

CHAMBER OF COMMERCE AND INDUSTRY

1. CCI:Cotton corporation of India has motive of Extending necessary marketing support to the cotton growers in selling their kapas produce at most competitive prices in the various market yards in all cotton growing States through timely intervention beginning from day one of the kapas arrivals till the end of season, procurement operations spread over more than 225 market yards in the country.

2. FASHION HOUSES:The cotton industry has mounted a public relations campaign promoting their product as sustainable, arguing that due to new technologies and farming methods, the industry has greatly reduced its use of energy, water, and toxic chemicals. No-till farming reduces soil erosion, improved irrigation methods reduce water use, improved methods of pest management have reduced the use of pesticides, and most significantly, the use of genetically modified (GMO) cotton has reduced the use of land and toxic chemicals in cotton production by improving crop yields and resistance to boll worms.

3. GOVERNMENT:Polices of government are major factors which affect our business as there are price flooring by government on raw cotton. If the price is higher than market price then units like us suffers. Change in technology is prime factor which affects the functioning of the operation in manufacturing. Due to our continuous change in technology we could survive in the competitive market. Economic conditions affect the exports of the cotton bales as well as oil. So it affects small producers like us as well. Stability in export market is directly related factors. 4. TEXTILE ASSOCIATION:Textile associations affect the cotton industry directly as they have major stake in the cotton industry they help the whole textile process to develop and arrange its raw material and finished goods in same manner. 5. NCDEX:Commodity market facilitates many of the retail investors but it has its affect on cotton industry as well as it changes the prices of the commodity in the market.

6. FOREIGN GOVERNMENTS: The foreign government can change the trade rules and policies and thereby affect the business scenario between two nations for better quality of goods and services at a better price. It has major impact on cotton prices. Also, it helps to improve economic and social development of the country and so Foreign governments are to be Kept satisfied.

7. SOCIAL ACTIVIST: The Social activities carried out by various NGOs and other social enterprises helps to solve social problems and thereby improve the standard of living in the society and lead to economic growth which affect the use of cotton and to such organizations are to be monitored closely.

8. LOCAL GOVERNMENT: The local government can impact the cotton regulation for industries through various amendments and reforms in the budget. Also government can make changes

in legislation and various policies relating to the economic scenario which can change the business environment. Thus, government is an important stakeholder for our firm and it is to be kept informed.

9. MEDIA: Media in form of newspaper and local radio channels help in the publicity of the firm for recruiting the employees as well as branding the firm and creating the goodwill of the firm in the city and hence media id too be kept informed.

10. BUSINESS SUPPORT: Business support services such as IT are very essential for carrying out the activities of the firm as various tasks such as quality assurance database is done through software and also auditing of the books and accounting is done and hence IT services are to be kept satisfied.

11. GENERAL PUBLIC: The general public is interested in adding social value and protecting the prosperity of the society and minimizing the risk, moreover it has the power to press the issue to the government by supporting the cause and praise the company and hence it has to be kept satisfied.

12. CHAMBER OF COMMERCE AND INDUSTRY: Chamber of commerce and industry is an association for providing various facilities, services and access to the business houses as well as sector in Gujarat and it is a significant stakeholder for the firm as it improves the business environment in the city and to it is to be kept informed.