ORGANISATION STUDY AT S.M.

KANNAPPA (P) LTD

By Pujita.B.Gaddi Reg No: 10SKCMA044

EMPOWERING MINDS

ACHARYA INSTITUTE OF MANAGEMENT AND SCIENCES 1ST CROSS, 1ST STAGE, PEENYA

Company Profile

Name of the company Year of establishment Board Of Directors Registered Office

: : : :

S.M.Kannappa Automobiles (P) Ltd. 1968 7 Directors S.M.Kannappa Automobiles (P) Ltd. #2,Dr.M.H.Mari Gowda Road(Near Lalbagh Bangalore.

Main operation No. Of employees Unions

: : :

Bus body building under the brand name Prakash Total 700 employees.Staff-73 employees No union

Vision & Mission

VISION : To be an innovative and excellent quality bus body building Company and to make best buses, which suits Indian road condition . and later to expand market all over South Asia . MISSION: S M Kannappa abides by the policy of giving the customer what they want instead of giving the customer what is available and Quality inspections are strict which create end user pride and delight.

Product Profile and Focus

Bus body building
Luxury buses Deluxe/Non-deluxe/semi deluxe Sleeper coaches Special purpose vehicles

Segmentation Geographic (main focus South India) Target Transport Corporations, Tours and travels, Educational Inst, Corporate, Individuals Positioning Quality focused customized body building facilities.

Process Flow Chart

Customer Specification After sales service & Feedback Arrival of chassis

Finishing & Release

Design Department

Surfacing & Painting

Production department

Paneling

Structural fabrication

Competitors and BCG matrix

Star
S M Kannanppa Market growing at faster pace Highest market share in the places of operation (55% *)

Problem child/?

Cash Cow

Dog

Major competitors Veera Vahana Udyog Pvt Ltd KMS Coach Builders Pvt Ltd Azad Coach Pvt Ltd Suraj Coach Builders Pvt Ltd

* Company Sources

Organization Structure

Organizational Hierarchy
Board of Directors Division Managers, Department heads Senior Secretary Officer, Assistant Managers

Executives and Supervisors

Shop floor workers

SWOT Analysis
Strengths Strong brand name in the market and front runner advantage. Well structure process flow Updated technology Cont. R&D for innovative designs. Expert management team Strong quality checking Strong financial status Opportunities Weaknesses Low labour productivity. High absenteeism. High over-head cost. Customers do not collect vehicle on time . Quality standardization is difficult due to contractual labourers.

Threats

Increased road transport and infrastructure facilities. Increased use of luxury and deluxe buses. Increased travel and tourism opportunities. Easy bank loan facilities. Requirement for corporate and individual special purpose vehicles

Increasing price of raw material Increasing transportation cost Trade policies Emerging international players. Increase in other modes of transportation (metro)

Findings
The organisational hirearcy ensures the optimum span of control. The organisation structure explains smooth flow of communication.

Well-structured process flow, reducing the lead time.

Traning and development facilities for permanent employees. Repeated orders from existing customers. Technological integration and office automation, helps in proper communication.

Absences of trade unions. Customer feedback based improvement system.

Conclusion
Immense potential to grow and capture wider market in future. Highly qualified and experienced management. Business experience of more than 50 years . Concern for Quality and Customer Satisfaction and so on that will lead to success.

Suggestions
Implementation of performance based pay. Structured performance appraisal system can be implemented. Sales process can be trained and improved to improve the

market share.
Adaptation of focused selling techniques. Structure can be flexible.

My Learning

A structured workflow process can reduce the leadtime. Quality checking points . Significance of customer relations.

Special Task
A Financial Analysis of S.M.Kannappa (P) Ltd using Ratio Analysis.

Objectives
1. 2. To analyse the overall financial performance of the company. To study the financial performance of the company . The aim of the study is to analyse the financial performance of S.M.Kannappa (P) Ltd to have a clear understanding of S.M.Kannappa (P) Ltd performance in such an industry.

Statement of the problem

Research Methodology
TYPE OF STUDY:- Ratio Analysis TOOLS OF DATA COLLECTION:- Secondary data that is available in annual reports of the company. SAMPLE SIZE:- Financial data of 2007 to 2011 SOURCES OF DATA:- Annual reports and self study about the working of the departments

Findings & Recommendations

Findings:
Material costs occupy a significant proportion of sales . Selling and distribution costs occupy a minor percentage i.e. about 1% of sales. Low returns on Total Assets i.e. 5% . Retains major portion of its earnings i.e. about 98% and pays only a small amount as dividends i.e. 2% to its equity shareholders.

Recommendations:
Focus on improving its profit margins More efficient utilization of its long term funds and assets Focus its attention on expanding its market share