Download - Ajanta Final Editing
-
7/31/2019 Ajanta Final Editing
1/34
~ 1 ~
INTRODUCTION OF PORTER
The model of the Five Competitive Forces was developed by Michael E. Porter inhis book Competitive Strategy: Techniques for Analyzing Industries andCompetitors in 1980. Since that time it has become an important tool foranalyzing an organizations industry structure in strategic processes.
Porters model is based on the insight that a corporate strategy should meet theopportunities and threats in the organizations external environment. Especially,competitive strategy should base on and understanding of industry structuresand the way they change.
Porter has identified five competitive forces that shape every industry andevery market. These forces determine the intensity of competition and hencethe profitability and attractiveness of an industry. The objective of corporatestrategy should be to modify these competitive forces in a way that improvesthe position of the organization. Porters model supports analysis of the drivingforces in an industry. Based on the information derived from the Five ForcesAnalysis, management can decide how to influence or to exploit particularcharacteristics of their industry.
-
7/31/2019 Ajanta Final Editing
2/34
~ 2 ~
Bargaining Power of Suppliers
The term 'suppliers' comprises all sources for inputs that are needed in orderto provide goods or services.
Supplier bargaining power is likely to be high when:
There are no substitutes for the particular input,
The suppliers customers are fragmented, so their bargaining power is low,
The switching costs from one supplier to another are high,
There is the possibility of the supplier integrating forwards in order to
obtain higher prices and margins.
In such situations, the buying industry often faces a high pressure onmargins from their suppliers. The relationship to powerful suppliers canpotentially reduce strategic options for the organization.
Similarly, the bargaining power of customers determines how much customerscan impose pressure on margins and volumes.
Customers bargaining power is likely to be high when
The supplying industry comprises a large number of small operators
The supplying industry operates with high fixed costs,
The product is undifferentiated and can be replaces by substitutes,
Customers have low margins and are price-sensitive,
The customer knows about the production costs of the product
-
7/31/2019 Ajanta Final Editing
3/34
~ 3 ~
Threat of New Entrants
The competition in an industry will be the higher, the easier it is for othercompanies to enter this industry. In such a situation, new entrants could change
major determinants of the market environment (e.g. market shares, prices,customer loyalty) at any time. The threat of new entries will depend on theextent to which there are barriers to entry. These are typically
Economies of scale (minimum size requirements for profitable operations),
Brand loyalty of customers
Protected intellectual property like patents, licenses etc,
Scarcity of important resources, e.g. qualified expert staff
Access to raw materials, distribution channels and customer relations arecontrolled by existing players,
Threat of Substitutes
A threat from substitutes exists if there are alternative products with lowerprices of better performance limits for the same purpose. They couldpotentially attract a major amount of market size and hence reduce thepotential sales volume for existing players. This category also relates tocomplementary products.
Similarly to the threat of new entrants, the threat of substitutes is determinedby factors like
Brand loyalty of customers,
Close customer relationships,
Switching costs for customers,
The relative price for performance of substitutes,
Current trends.
-
7/31/2019 Ajanta Final Editing
4/34
~ 4 ~
Competitive Rivalry between Existing Players
This force describes the intensity of competition between existing players(companies) in an industry. High competitive pressure results in pressure on
prices, margins, and hence, on profitability for every single company in theindustry.
Competition between existing players is likely to be high when
There are many players of about the same size,
Players have similar strategies
There is not much differentiation between players and their products,
hence, there is much price competition
Low market growth rates
-
7/31/2019 Ajanta Final Editing
5/34
~ 5 ~
SWOT
SWOT analysis is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a business
venture. It involves specifying the objective of the business venture or projectand identifying the internal and external factors that are favorable and
unfavorable to achieve that objective..
A scan of the internal and external environment is an important part of thestrategic planning process. Environmental factors internal to the firm usuallycan be classified as strengths (S) or weaknesses (W), and those external to thefirm can be classified as opportunities (O) or threats (T). Such an analysis of
the strategic environment is referred to as a SWOT analysis.
The SWOT analysis provides information that is helpful in matching the firm'sresources and capabilities to the competitive environment in which it operates.As such, it is instrumental in strategy formulation and selection. The followingdiagram shows how a SWOT analysis fits into an environmental scan:
SWOT Analysis Framework
Environmental Scan
/ \
Internal Analysis External Analysis
/ \ / \
Strengths Weaknesses Opportunities Threats
|
SWOT Matrix
-
7/31/2019 Ajanta Final Editing
6/34
~ 6 ~
Strengths
A firm's strengths are its resources and capabilities that can be used as a basisfor developing a competitive advantage. Examples of such strengths include:
patents strong brand names good reputation among customers cost advantages from proprietary know-how exclusive access to high grade natural resources favorable access to distribution networks
Weaknesses
The absence of certain strengths may be viewed as a weakness. For example,each of the following may be considered weaknesses:
lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels
In some cases, a weakness may be the flip side of a strength. Take the case inwhich a firm has a large amount of manufacturing capacity. While this capacitymay be considered a strength that competitors do not share, it also may be a
considered a weakness if the large investment in manufacturing capacityprevents the firm from reacting quickly to changes in the strategicenvironment.
-
7/31/2019 Ajanta Final Editing
7/34
~ 7 ~
Opportunities
The external environmental analysis may reveal certain new opportunities forprofit and growth. Some examples of such opportunities include:
an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers
Threats
Changes in the external environmental also may present threats to the firm.Some examples of such threats include:
shifts in consumer tastes away from the firm's products emergence of substitute products new regulations increased trade barriers
-
7/31/2019 Ajanta Final Editing
8/34
~ 8 ~
AJANTA FOOD PRODUCTS
The company produces confectionery items candies and lollipops. The companywas started in year 1978. The company runs all 365 days. Also on some occasions
there are holidays. The company remains close on Fridays due to cut off of
power supply.
The company starts at 6:00 in the morning and ends at 8:00 in evening. The
workers according to their number have breaks for snacks or lunch. There is a
strong management structure in the company. The leadership in the companyautocratic and discipline is always is always maintained in the company. The top
level management provides bonus to the staff on Diwali and at the end of year.
The goods are not distributed in the local markets but are expored to other
countries. The export process is done according to the government law and their
policies
Accordingly the sales of the company include VAD tax-12.5% and CST taxes-2%.
The company is also given rewards by the government for their exports.
-
7/31/2019 Ajanta Final Editing
9/34
~ 9 ~
MANAGEMENT IN AJANTA FOOD PRODUCT
Ajanta food product is a company in ulhasnagar camp 4. It has huge number of
production daily. It produces confectioner items (candies and lollipops) which
are very demanding not only in India but in all over the world.
HEADS OF THE AJANTA PVT LIMITED
OWNER : MR. SANJAY M. VISHNANI
MANAGER : MR JAI KUMAR BHAWANANI.
PRODUCTION : MRPRAVEEN BALANI
Company: AJANTA FOOD PRODUCTS
Activities: FOOD RRODUCTS, CONFECTIONERY FOOD PRODUCTS
Category: CONFECTIONERY
State: MAHARASHTRA , INDIA
City: ULHASNAGAR
Address: P.N.11-A,INDUSTRIAL AREA
Phone: +0091-25-12582636
Fax: 15693381
-
7/31/2019 Ajanta Final Editing
10/34
~ 10 ~
MACHINES:
Laminator:
Laminators are used for making multiplelayers of dough (laminations) for cutting
process for making quality cracker
biscuits. These can be either made in
Vertical or Horizontal Configurations as
per requirements.
Gauge roll:
Gauge Rolls are used to give better finish and to adjust the thickness of sheetafter the Lamina tor or Triple roll
Sheeter.
This is done by heavy duty Gauging
Rollers made chilled cast iron.
These rolls work in pairs to give a
smooth finish to the sheet. A
Scrapping Knife is provided toremove dough (if any) from the
gauge roll.
The number of Gauge Rolls depends
on the Length of the Oven and production capacity.
-
7/31/2019 Ajanta Final Editing
11/34
~ 11 ~
Molding Machines:
The Rotary Molders is used to make soft dough
cookies and biscuits. Stainless Steel parts are
used for contact parts, are used for contact
parts, covers, hoppers and trays to maintain
hygienic conditions.
Sugar Grinder:
The machine is used to grind the
granules of sugar into fine powder. The
grinder of the machine is hammer mill
type.
Automatic feeding system isincorporated for better
productivity.
After grinding powder can eitherbe collected in box or into bag.
-
7/31/2019 Ajanta Final Editing
12/34
~ 12 ~
INGREDIENTS USED FOR MAKING BISCUITS
SUGAR FOOD COLOUR
WATER GULUCOUS
-
7/31/2019 Ajanta Final Editing
13/34
~ 13 ~
ESSENCE SALT
COCONUT CRUSH MILK POWDER
-
7/31/2019 Ajanta Final Editing
14/34
~ 14 ~
MANUFACTURING PROCESS
Manufacturing process of candies:
Step 1
In the manufacturing process of Ajantafood products, the first step is themixing process. In the mixing processthe fixed amount of sugar and hugeamount of glucose is been put togetherin the mixture machine. It mixed withdifferent acnes for adding flavors. Thisliquid mixture is stirred and mixed
properly and heated for at least 45minutes.
Step 2
After mixing process than comes the takeaway process. In this process the mixturewhich is mixed in step 1 is been taken outon the slab than it is mixed manually for10-15 minutes. This mixture is mixed untilit looks like bulky plastic bag. Whilemixing the mixture the personnel use a
white powder which avoids the mixture tobond of slab.
-
7/31/2019 Ajanta Final Editing
15/34
~ 15 ~
Step 3
After mixing and take away process than
comes the rolling process. In rollingprocess, the taken away mixture, which waslooking like a bulky plastic bag is inserted inthe roller machine where they areconverted into smooth layer. The rollingprocess involves the combination of tworollers. In rolling process the two rollerssqueeze the bulk of mixture into thin layer.This process gives the mixture a correct
shape.
Step 4
The 4 step consist of moulding processwhere the thin layer of mixture arefragmented and molds into the shape ofcandies and lollipops. In the mouldingprocess the company uses many molds formanufacturing different shapes and sizes
of candies and lollipops. In this process, theunwanted material, which was introducedfrom molding process is separated andreused.
This process involves molding process ofcandies as well as lollipops for whichdifferent machines are being used.
-
7/31/2019 Ajanta Final Editing
16/34
~ 16 ~
Step 5
After molding process then comes the
checking process. In this process thecandies and lollipops are reserved inlarge containers in huge quantity.Checking is done before the packagingprocess. In this process the necessaryobservation in done in order to avoidthe unprocessed candies.
Step 6Sixth step involves the cooling process in thisthe process the candies are kept in hugecontainers for 15 to 20 minutes for chillingpurpose. After the candies and lollipops arecooled they are sent for packaging purposeafter the essential inspection.
-
7/31/2019 Ajanta Final Editing
17/34
~ 17 ~
Step 7
After the cooling process than comes the packaging process. In this process thecooled candies are packed. But however before packaging the necessary
inspection is done by the supervisors. After inspection the candies and lollipopsare kept in big plastic bags. And then at last the candies and lollipops arepacked according to their flavors and quantities.
-
7/31/2019 Ajanta Final Editing
18/34
~ 18 ~
PACKING PROCESS
The fresh candies and lollipops are brought in the packing department in bags.
In packing process around 50 employees work. Amongst these 40 employees
pack manually and rest do the packing by using machines.
Different types of plastic bags are given to the workers. These plastics bagsvary according to the flavors.
There are also different types of wrappers according to the flavor of thecandies and lollipops.
The lollipops are been wrapped and packed in plastic jars. These jars also varyaccording to the flavors of the lollipops.
Here in the process of packing 60% of work is done through machines while only40% work is done manually.
In the machine first the candies are been inserted and the machine start theprocessing.
Here in the machines a plastic tape is rolled. The candies then push the wrapperand the wrapper is then been cut with a sharp blade inside the machine. Thesewrapped candies are then thrown out with a needle and then slide down in
plastic bags.
Then a plastic tape is inserted in the machine. It is been joined with a pulleywhich rotates the plastic tape. This pulley is joint with a sharp blade which thencuts the tape and wraps the candies.
Finally the small candies are been wrapped into wrappers of different designs.These candies are then thrown out of machines with the help of a needleattached to the spring. The candies then slide downward into plastic bags.
After the candies and lollipops are wrapped they are packed in different plasticbags, they are stored in big cartoons of different packing designs.
These cartoons are packed with machines with seal them. These machinescontain plastic strips which automatically seal the box. These boxes are tentransferred to the warehouses where they are stored. Then they are sold in themarket.
These products are not only sold in local market but are sold inINTERNATIONAL MARKETS.
-
7/31/2019 Ajanta Final Editing
19/34
~ 19 ~
TYPES OF CANDIES
PINEAPPLE BLACKCURRANT GINGER
STRAWBERRY ORANGE MINT
COCONUT LIME MANGO
Ajanta food products mainly deal in manufacturing of candies of various flavors
which they supply to distributors. The various flavors of candies in which Ajanta
food products deal are as follows: Pineapple, Blackcurrant, Ginger, Strawberry,
Orange, Mint, Coconut, Lime, and Mango.
-
7/31/2019 Ajanta Final Editing
20/34
~ 20 ~
SWOT
Opportuniti
es
Threats
Weakness
Strength
-
7/31/2019 Ajanta Final Editing
21/34
~ 21 ~
SWOT ANALYSIS OF AJANTA FOOD PRODUCTS
1.STRENGTHS OF AJANTA:
Every organization has some strength. In some cases this is obvious, forexample, dominant market shares. In other cases, it is a matter of perspective,
for instance, a company is very small and hence has the ability to move fast. It
is important to note that companies that are in a bad position also have
strengths. Whether these strengths are adequate is an issue for analysis.
It is situated in an industrial area fromwhere there is easy transportation available so
they can transport their goods easily from that
place
This company has large working experienceof over 15 years so they can manage the acrivies
of the company smoothly and effectively
The hierarchy the company is properlybalanced and the management is carried
accordingly The suppliers of raw material are situated
near by company so which also saves time.
All the products of the company areproperly stored in an air conditioned room as they
require cool and dry place to b stored
Technology available with the firm is prettygood so the work is done more efficiently and time is saved.
-
7/31/2019 Ajanta Final Editing
22/34
~ 22 ~
2. WEAKNESSES OF AJANTA:Every organization also has some weakness. In some cases, this is obvious;
say for example, a stricter regulatory environment. In other cases, it is a
matter of perspective, for example, a company has 99% market share and is
open to attack from every new player. It is important to note that companies
that are extremely competent in what they do, also have weaknesses. How
badly these weaknesses will affect the company is a matter of analysis
The building of company is very old and through these years the strengthof building is not as much as it was before so there are many problems
like leakages, growing of fungi on the walls and cracks in the walls. Company sends its goods to the retailers in plastic containers which are
not clean enough so the quality of goods is also affected.
There is mixing of left overs in the production of new products. While manufacturing people in the company do not wear any gloves or
anything as such so the germs in the hands of workers might enter the
food products.
Handling of goods in the company is not proper which might sometimesleads to defect of goods.
There were no proper covering of hair of workers so their hair might fallin the food products made there.
-
7/31/2019 Ajanta Final Editing
23/34
~ 23 ~
3. OPPORTUNITIES OF AJANTA:
All organizations have some opportunities that they can gain from. These could
range from diversification to sale of operations
Completion faced by company is minimal so they can easily change theirstrategies and can expand the business.
The goodwill of company is good so they can attract more and morecustomers.
The company can also manufacture the close substitute products asthey have plenty of resources.
Their business sector is expanding, with many future opportunities forsuccess.
Their competitors are slow to adopt new technologies. Manpower available to the firm is more than sufficient thus can
increase opportunities for the firm
As these are Fast Moving Consumer Goods there are moreopportunities available for attracting customers by changing
the flavors of the food products.
-
7/31/2019 Ajanta Final Editing
24/34
~ 24 ~
4. THREATS IN AJANTA:
No organization is immune to threats. These could be internal, such as falling
productivity. Or they could be external, such as lower priced international
competition
There is threat of entry of new individuals andincreasing competition.
There is threat of our managers and supervisorsgoing out of firm and establishing their firm thus
by increasing competition.
Development is technology is also a threat to thecompany.
Changing in taste of customers is also a threat tothe company
Moving of customers from our firm to othercompetitors is also a threat to the firm.
Change in duties and taxes by government are also a threat to the firm. There is also a threat of transportation strikes as due to strikes the
goods will b not delivered on time.
-
7/31/2019 Ajanta Final Editing
25/34
~ 25 ~
THE SWOT MATRIX
A firm should not necessarily pursue the more lucrative opportunities. Rather, itmay have a better chance at developing a competitive advantage by identifying a
fit between the firm's strengths and upcoming opportunities. In some cases,the firm can overcome a weakness in order to prepare itself to pursue acompelling opportunity.
To develop strategies that take into account the SWOT profile, a matrix ofthese factors can be constructed. The SWOT matrix (also known as a SWOTMatrix) is shown below:
DEFINATION
A tool that identifies thestrengths, weaknesses, opportunities and threats of
an organization. Specifically, SWOT is a basic, straightforward model that
assesses what an organization can and cannot do as well as
its potential opportunities and threats. The method of SWOT analysis is to take
the information from an environmental analysis and separate it into
internal (strengths and weaknesses) and external issues (opportunities and
threats). Once this is completed, SWOT analysis determines what may assist
the firm in accomplishing its objectives, and what obstacles must be overcome
or minimized to achieve desired results.
-
7/31/2019 Ajanta Final Editing
26/34
~ 26 ~
PORTER'S
5 FORCES
MODEL
BARGAINING
POWER OF
CUSTOMER
THREAT
POSTED BY
SUBSTITUTE
PRODUCTS
THREAT
POSTED BY
NEW
ENTRANTS
COMPETITION
AMONG
EXISTING
FIRMS
BARGAINING
POWER OF
SUPPLIERS
-
7/31/2019 Ajanta Final Editing
27/34
~ 27 ~
FIVE FORCE MODELS
Porter's 5 forces model is a powerful way of analyzing the competitive forces
that shapes every industry in general. This was developed by Michael E. Porterof Harvard Business School in 1979. This tool helps you to identify whether anew product, investment, services or business have the potential to beprofitable.
The 5 competitive forces that are taken into consideration are: Competition in the Industry Potential of new entrant into Industry Power of Suppliers Power of Customers Threat to substitute products
Like every company Ajantas working also depends upon porters five force
models.
-
7/31/2019 Ajanta Final Editing
28/34
~ 28 ~
BARGAINING POWER OF SUPPLIERS:
As Ajanta is a CONFECTIONERY producing company so for that they deals with
number of suppliers. Ajanta believes those suppliers are
very important in every aspect. As without raw materialsproduction is not possible. So they provide them with
various types of discounts and schemes.
As Ajanta is the small scale company manufacturing
candies and lollipops, the suppliers of Ajanta supplies to
more than one company. Ajanta works on small scale so it is
not easy for Ajanta to manufacture the raw materials of
their own hence they have to accept the rates of suppliers..
In the case of Ajanta the bargaining power of suppers is up to 50%
BARGAINING POWER OF CUSTOMER:
As consumers are given first priority by Ajanta Company so they allow some kind
of discounts to their customer such as cash discounts up to 10%. In Ajanta
buyers purchases from more than one company so the charges are nominal. Like
every other company Ajanta also have more number of suppliers as compare to
buyers.
As per the above given data BARGAINING POWER OF CUSTOMER of Ajanta
is up to 60%.
-
7/31/2019 Ajanta Final Editing
29/34
~ 29 ~
THREAT POSTED BY SUBSTITUTE PRODUCTS:
Now a day in competitive world more than 60% of the
companies face the competition and threats from the
products which are substitute to their products. A closesubstitute is a potential threat to the companys products.
Like other companies Ajanta face competition from many
other types of candies and biscuits manufactured in other
firms
Normally Ajanta faces competition for the products like
candies and lollipops which are fast moving products of
Ajanta.
In the case of Ajanta the threats posted by substitute products are not less
than 40%
THREAT POSED BY NEW ENTRANTS
The Ajanta company was started in the year 1978. At the time when Ajanta
entered in the market the 5 year plan policy
changed because of which Ajanta faced severe
problems.
Besides problems faced due to government
policies Ajanta also faced severe problems like
Capital requirements Cost disadvantages irrespective of size Economies of scale Product differentiation Access to distribution channels
-
7/31/2019 Ajanta Final Editing
30/34
~ 30 ~
COMPETITION AMONG EXISTING FIRMS
In todays world, more than 75% of the companies face the competition and
threats from existing companies. A competitor is
a potential threat to the companys products.
Like other companies Ajanta face competition
from many other companies which manufacturing
same products like candies and biscuits
Normally Ajanta faces competition from the
companies like SAMRAT,JANTAand many more
companies producing substitute goods.
-
7/31/2019 Ajanta Final Editing
31/34
~ 31 ~
TRANSPOTATION AT AJANTA:-
After the manufacturing process there is the packing process and packing is
with the help of machine and employees. And the workers have different type
of plastic bags as there is various flavor, and different types of wrappersaccording to the flavor of candies and lollipop.
The candies are been wrapped in transferable plastic bag according to the
different flavor and the packing is done by the worker and machine the minimum
packing is of 250gms and maximum there is no limit as its done to the customer
needs, and then cartoons packing is done according to the order.
The lollipop are been wrapped and packed in plastic jars. These jars also vary
according to the flavors of the lollipops, and the plastic jars are pack in
cartoons the cartoons packing is done according to the customer need which will
pack by the worker manually but the packing seal by the machine as machine
contain plastic strips which automatically seal the box and box are transferred
to warehouse and then is carried to the truck.
The goods export in locally cities some of them is Bhiwandi, Dombavali, Nasik,
Pune, Dadar, and Ghatkopar. The goods are export in SOUTH AFRICA with the
help of agent. The transportation is done every day according to the order
expect Friday as company remains close on Friday.
-
7/31/2019 Ajanta Final Editing
32/34
~ 32 ~
Conclusion
Hence we can conclude that the main aim of making this project was
to improve not only the premise part but also the realistic knowledgeby essentially visiting the manufacturing unit of AJANTA
COMPANY.
This object was achieved by all the members of our group.
The time expend on achieving this objective proved really
advantageous to us.
We are grateful AJANTA COMPANY and to Mr. SANJAY for their
kind co-operation in making the project prosperous.
-
7/31/2019 Ajanta Final Editing
33/34
~ 33 ~
BIBLIOGRAPHY
WEB SITE :
1. WWW.GOOGLE.COM2. WWW.WIKIPEDIA.COM3. WWW.BUSINESSBALLS.COM
REFERANCE:1. NOTES GIVEN BY SNEHA MIRCHANDANI2. VIPUL PRAKASHAN TEXT BOOK OF STRATEGIC
MANAGEMENT
http://www.google.com/http://www.google.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.businessballs.com/http://www.businessballs.com/http://www.businessballs.com/http://www.wikipedia.com/http://www.google.com/ -
7/31/2019 Ajanta Final Editing
34/34
QUESTIONNAIRE:-
1. In what manner you give discount to your customer.
2. Who are your customers.
3. Name of your suppliers.
4. Is suppliers give you discount? If yes, than in what manner.
5. Name of your competitors.
6. Threats by competitors.
7. What measures you take to reduce your threat.
8. Do you have any substitute.
9. what are your distribution channels.
10. what is your mode of transport.
11. Did supplier give any benefit to you?
12. From where do you buy your raw materials.
13. How is the progress of your company.
14. What kind of changes you have made in past few years.
15. strategy of your company.
16. When you entered in the market which problems/threats you face at that
time.
17. What are the threats you have from the existing firm.
18. If new industry enters in the market what are the problems you may have
& what are the measures you take to reduce those threats.
19. What will you do to improve your quality &reduce your cost.
20. If government changes the policy will you affect that change into your
business or not?