organiztional study at lunar

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Report on Organi zation Study at Lunar Pvt. Ltd.

1

ORGANIZATION STUDY AT

LUNAR RUBBERS PVT LTD, THODUPUZHA,IDUKKI

The Report submitted in partial fulfilment of requirement for the

award of degree of

MASTER OF BUSINESS ADMINISTRATION

UNIVERSITY OF KERALA

Submitted by

Peter Varghese

MGT.0905275

Under the guidance of

Mr.Sandeep

(Faculty Guide IMK Alappuzha)

INSTITUTE OF MANAGEMENT IN KERALAUNIVERSITY OF KERALA

ALAPPUZHA

2009-2011


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CERTIFICATE

This is to certify that the project report entitled An organisational study of Lunars

Rubbers Pvt. Ltdis a record of the work done by Peter Varghese. as a part of the Project

Work during the Third Semester at LUNAR RUBBERS (P) LTD THODUPUZHA,

IDUKKIin partial fulfilment of the requirements for the award of the Degree of MASTER

OF BUSINESS ADMINISTRATION of the Kerala university University.

Project Guide


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CERTIFICATE


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DECLARATION

I hereby declare that this project work entitled An organizational study of Lunars Rubbers

Pvt. Ltd with special reference to Human Resource Department at Lunars Rubbers Pvt. Ltd

has been prepared by me under the guidance of Mr.Sandeep Lecturer, INSTITUTE OF

MANAGEMENT IN KERALAALAPPUZHA. I also declare that this project work is my

original work and that it has not previously formed on the basis for award of any degree or

diploma.

DATE: 21/07/2010. PETER VARGHESE

PLACE: ALAPPUZHA


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ACKNOWLEDGEMENT

I would like to take this opportunity to express my sincere gratitude to all those who have

helped me throughout this organizational study. It gives me immense pleasure to

acknowledge all those who have rendered encouragement and support for the successful

completion of this work.

First of all I would like to thank our Co-ordinator Prof.M.Sukumara Menon (IMK

Alappuzha) for allowing me to do this study. I wish to express my sincere thanks and

gratitude to my guide Mr. SANDEEP (Faculty Guide Alappuzha).

I am highly obliged toMr. ISSAC KOTTUKAPPILLY (Chariman), Mr.Stephen Joseph

(MD Lunar Bags), and Mr. Bastion Joseph (MD Lunar Exports) for providing me an

opportunity to conduct this project. I am grateful to all the staff of Lunars for their whole

hearted co-operation given to me in the training period.

It had been an enriching experience to learn about the working and administration of this

organisation and I am grateful for the courtesy extended to at Lunars Rubbers Pvt. Ltd.

Above all, I thank almighty God for helping me to complete the project successfully.

Peter Varghese

S3 M.B.A


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EXECUTIVE SUMMARY

Lunar Rubber Pvt. Ltd is one of the pioneers of the footwear industry of Kerala, backed by

the blessings natural latex, bring forth the quality footwear, bags and Umbrella. The

company is dedicated to providing quality products for the customers. The company is a

prominent player in the foot wear manufacturing industry in the country.

The organisation study was done in order to study the functioning of the company, the

structure, various departments and the roles and functions of these departments.

From the study it was found that the company is having a potential future by customers to

whom the company has not reached yet. The findings are analysed and some possible

solutions are also recommended.


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PART - A

ORGANISATION STUDY


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PART-A

ChapterINTRODUCTION 10

Scope of study 11

Objective of study 11

Sources of data collected 12

Limitations 12

Industry Profile 13

Company profile 15

History and growth of company 16

Strategy of company 17

Policy of company 17

Awards won 18

Quality objective 18

Product profile 19

Organisational Structure 25

Overall Functioning of the company 27

Different departments 31

HR Department 32

Purchase Department 39

Finance Department 43

Production Department 48

Marketing Department 59

Organisations contribution to Society 69

Analysis 71

SWOT Analysis 72


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Conclusion 74

Findings 75

Suggestions 75

PART-B

Research Study

Introduction 77

Purpose of study 78

Method of data collection 79

Research Design 89

Data analysis and interpretation 81

Conclusions 103

Findings 103

Suggestions 104

Questionnaire 106

Bibliography 106


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INTRODUCTION


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SCOPE OF THE STUDY

The project work helps to understand the practical use of the Theoretical concepts. It helps

to familiarize the structure, system, procedures and functioning of the organisation. The

theoretical knowledge regarding the various management phases and aspects get a practical

exposure with the Organizational Study at Lunar rubbers Pvt. Ltd . The organisational study

has provided new views regarding its functions. It has brought the information about various

aspects of management and has been of invaluable help and assistance to get a good in sight

about the practical aspects.

The study is restricted to explore the various functions under taken by each department. It

provides a better understanding at functional level of each department i.e. production,

marketing, finance and human resource management. This study confined to 21 days based

on the primary data obtained from various departments, various level managers and other

supervisory staff. Secondary data include reports and brochures provided by the

organization.

OBJECTIVES OF THE STUDY

(1). To familiarize with the various functional departments of the company.

(2). To study the strengths and weaknesses of the organization

(3). To study the organization as a system and its various functional areas.

(4). To have a practical knowledge of the application of the Management theories.

(5). To understand the strategies adopted to confront the challenges faced by the company.


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SOURCES OF DATA COLLECION

PRIMARY DATA

Refers to the data that was collected first hand, directly from the source. This consisted

primarily of interviews and discussion with the managers, employees and other staffs.

SECONDARY DATA

Refers to the data that was previously collected byothers for another purpose. It Includes:

Company Booklets

Organizational websites,

Annual reports and

LIMITATIONS OF STUDY

The organization was reluctant to disclose some relevant information required by

researcher.

Certain information was vague and study based on these may not get a true picture.

Time limit is another limitation and it restricted the study in few areas. Human

limitations are also subjective.

INDUSTRY PROFILE


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FOOTWEAR INDUSTRY

The history of footwear goes back many 1000 of years. Today, foot wear industry

manufacture a wide range of footwear varying from leather, rubber and other synthetic

materials of styles varying from Casual, formal, work and athletic shoes. Paraffin wax and

China clay are the most important raw materials. These are easily available in India. English

India Clay Ltd., Thiruvananthapuram provides the china clay for the footwear manufactures.

Important hawai footwear manufactures in India are Lunar, Paragon, Bata, Rubco,

Premier, Fisher etc., India ranks second among the footwear producing countries next to

China.. Footwear Industry is a high profit and fast growing industry, which provides good

income to the country.

There is cut-throat competition in the hawai chapel industry. There are a number of

hawai chapel manufactures and hence if one has to survive in the industry, it has to

strengthen its marketing network. The competition in the industry rises as the number of

Hawai manufactures, increases and it is due to high price of rubber products in the market.

So in the years to come, the competition in this industry is going to increase and it is going

to be a testing time for the present manufactures.

Lunar Rubber Pvt. Ltd is one of the well known of most advanced manufacture of

footwear and Umbrella. Lunar Rubber's Pvt. Ltd emphasis on providing customer

satisfaction of Quality products. Now a day's rubber industry is growing exponentially.

Rubber is an important material in the modern world. Every year the use of rubber is rising.

Now the rubber has become an indispensable material, which has got much demand in daily

life.

WORLD SCENARIO


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Rubber is an important material in the modern world. Every year the use of rubber is rising.

It has a history of seven decades. Now a days rubber has become an indispensable martial

which has got much demand in daily life with the growth in the population of India at a

tremendous rate, there is a lot of scope of the growth of this industry in future years. So the

government has given a lot of priority to this industry.

INDIAN SCENARIO

India is the fourth largest producer of rubber in the world after Thailand, Indonesia and

Malaysia and the fourth largest consumer in the world after USA, Japan and China.

India ranks second among the footwear producing countries next to China. India producesmore of gents footwear while the worlds major production is in ladies footwear.The

industry is labour intensive and is concentrated in the small and cottage industry sectors.

While leather shoes and uppers are concentrated in large scale units, the sandals and

chappals are produced in the household and cottage sector.

STATE SCENARIO

However 94% of the natural rubber is produced in Kerala and the balance 6% is from

plantations in other states. But now the production is higher than the demand. The value is

increasing day by day. In these states most of the rubber based industry are engaged in the

production of tyre, rubber bands, thread rubber, footwear etc.There are over five thousand

rubber goods manufacturing units in the country consuming over 5 Lakh tones of rubber per

year. Nearly 48% of the rubber consume in the industry is by 30 tyre manufactures. Now

there is a big boom in rubber based industrial sectors of the state. Kerala entrepreneurs andrubber growers are educated, encouraged and supported in setting up rubber based

industries.


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COMPANY PROFILE

OWNERSHIP PATTERN

The Lunar group is promoted by Mr.Issac Joseph. An engineer by profession , he is

experienced in developing and promoting innovative business strategies and is the chairman

of group concerns. The other board of directors of lunar are Mr. Juby Issac, Mr..M.K.

Kuriakose, Mr.P.K. Kurian, Mr. James P Jacob, and Mr. Jess Issac.

In Lunar Rubbers Pvt.Ltd. there will be quarterly meetings of the director board

members. The board of directors in their meetings determines corporate level policies andprocedures. But special meetings are convened in case of an emergency. The board of

directors appoints the managing director to be in overall charge of administration of the

company and office assisted by various officers at the office and the factory. Any strategic

decision involving policy matters will be taken only with the concurrence of M.D. The

G.M., Asst.G.M., Finance manager marketing manager, production manager, purchase

manager,and personal manager assists M..D. in taking such decisions.

The M.D. conducts weekly meetings every Monday with various department heads.

In these meetings each department head presents the weekly report of their respective

departments. The G.M. is the overall charge of the office with particular charge of matters

connected with register of companies, banks, district industries centre,sales tax,income tax

and company meetings.The assistant G.M.assist the M.D. and the G.M.successfully carrying

out their duties with regarding to Rubber board labour office,Insurance matters,Training of

personnel, municipal and panchayat licences etc.

Top level managers of the company are generally concerned with planning involving

activities that has a duration of 6 months and above. Lower level managers are more

concerned with planning activities for the day, week,or the month. The supervisors plan for

the work activities for the workers for the day. Top level managers generally spend time on

planning. They are more concerned with establishing objectives and developing plans to


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meet those objectives and developing plans to meet those objectives. Lower level managers

are more involved in executing those plans.

HISTORY AND GROWTH

Lunar Rubbers Pvt.Ltd.was established by Mr.Issac Joseph, an engineer by profession

was the nucleus behind the venture and it was on his initiative the firm grew to fame as its

known today. While making a imperative step forward, Mr. Issac Joseph had immense

experience with him, obtained from his responsibility as managing director of Viking

Rubbers Pvt.Ltd. Thus the history of Lunar rubbers has its root into the accounts of its

predecessor-Viking Rubbers Pvt.Ltd. ,a registered S .S .I. unit established in 1976.

Viking Rubbers was promoted as the part of the massive industrialization programme

of rural Kerala. Starting its function at mini industrial estate at Olamattom, the firm had to

face severe set backs because of the lack of technical knowledge and experience in the field

or markets. However the project went ahead and the company now holds neither

governmental nor bank liability other than liability for working capital.

On 27/11/1982, Lunar Rubbers , a partnership firm was registered as a S.S.I. unit.

Later in 1993,the firm was converted into a private limited company. Lunar rubbers

achieved rapid growth due to its stringent policies on quqlity. Introduction of high quality

chapels enabled the company to initiate early break through in the market. The products

soon earned reputation in the market and neighbouring states as well. The company had to

soon hike the production so as to cater to the increase in demand.

Today the company holds sound deal links throughout South India.The companys

reputation spread across further towards north in recent years. At present the company has

strong markets in Gujarat, Maharashtra, and other Northern states as well. It has also


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sneaked into overseas markets. The company today owns production units in Thodupuzha,

Mundakayam, Coimbatore, and Mysore with its head quarters in Thodupuzha.

50%of the production of the group is sold outside kerala including gulf countries and

European countries. In India, Lunars hawai chapel is available in the states of Tamilnadu,

Karnataka, Gujarat,Maharashtra, Andrapradesh,Pondichery,Goa etc.other than Kerala.

The group of expanding its capacity and product line like canvas and leather shoes

manufacturing are on the anvil. The company has also entered in the umbrella and school

bag market. With a penchant for customer satisfaction and a passion of Research and

Development, the company is confident of surpassing its goals.

LUNARS GROUP OF COMPANIES:

Name of the company Location

Lunar Rubbers (P) LTD Thodupuzha

Viking Rubbers (P) LTD Thodupuzha,Coimbatore.

Neo Rubber Foot Crafts (P) LTD Thodupuzha

Akshaya Rubbers Mysore.

Misha Rubbers Mysore.

Foot Craft Rubbers Industries Mundakayam

Mathew Rubbers Coimbatore

Utham Rubbers (P)LTD Mysore.

VISION


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Organizations usually follow several plans to reach their goals. Lunar formulated following

strategies to achieve these objectives.

Develop superior quality products using new technology imported from developed

countries.

Company will also continue to identify and explore consumer market by conducting

market researches.

Thoughtful planning and rightly hiring human resource helps the company to

maintain a high level of standard in its operations.

POLICY OF THE COMPANY

We at Lunar Rubbers Pvt.Ltd. are commited to:

Leadership by example.

Utmost customer satisfaction.

Nonstop quality by upgradation.

Assure employee involvement in the quality management system.

Reciprocate by delivering products that moves fast in the market.

AWARDS WONISO CERTIFICATION


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Lunar Rubbers Pvt.Ltd. is an ISO 9001-2000 certified company.The company got ISO

certification in 2004.

The superiority of Lunar has been understood and recognized throughout and the company

has been honoured by quite a number of awards in recognition to its performance.

State consumer protection Award for manufacturing consumer products.

Vanijya Ratna Award by Southern vanijya Federation, Trivandrum.

Business Man of Kerala Award by Indian Junior Chamber, Zone-20.

Best entrepreneur Award by Kerala State small Industries Association

Vijayasree Award by Kerala Vyapari Vyavasayi Ekopana Samiti.

Best Entrepreneur Award by Indian Jacees,Southern Zone.

QUALITY OBJECTIVE

Acquiring an export share of 43% by 2008.

Setup and establish a Laboratory for product testing within six months.

Increase the turnover by 20% every year.

Attend all customers complaints within 2 working days.

Collect suggestions from employees and utilize for improvement.

Introduce at least one new product in 2 years.

PRODUCT PROFILE


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Chart No: 1. product of Lunar

I. Lunar Hawai Chapels

a) Lunars Delux;- This is blue and beige in colour for gents ,ladies and

kids.It is light in weight and soft and having antiskid bottom with patented

two way thread (TWT) sole.This will get in giant sizes also.

b) Lunars cushion:-This is blue and green in colour for gents and ladies.

c) Lunar Dimple:- This is slippers with high heel and having two way thread

bottom which is speacially designed for ladies.

d) Lunar safari :- This is beging with lines in colour.It has thick sole and

TWT protection against slippery surface.

e) Lunars Activa:-The available colours are black,brown,and grey.This is high

quality chapel with two wide straps for special protection against splashing.

f) Lunars Hitech:-The available colours are blue and beige for ladies and

gents only.This item differs from the Delux model in its strap.This chapel has

a thick strap and is made of high quality material.

Lunar Products

Lunar foot wears Lunar Umbrella Lunar School Bags Tourism

Ventures


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g) Lunars Zoom:-Available colours are orange,blue,beige,full black for ladies

and gents only.

Other popular brands from Lunar ,which is good in quality and preferred by millions of

customers are the following

a) Walk Mate

b) AerolexPVC

c) FlighterPVC

d) Lunars Lite EVA

e) Feather Touch

Special features of Lunars Hawai Chapels:

The two way thread for greater grip, a potential design that has won great

acclaim and appreciation.

Surpasses ISI standards.

Strap is fasted firmly , so it does not slip even under extreme circumstances.

Comes in choice of colours-blue.black,violet,beige,green,and grey.

Available in a sizes ranging from 1 to 12 sizes.11 and 12 being special sizes

exclusively made by Lunars.

50% of the production of the group is sold outside Kerala including Gulf countries and

European countries.In India,Lunars hawai chapel is available in the states of

Tamilnadu,Karnataka,Gujarat,Maharashtra,Andrapradesh,Pondichery,Goa etc. other

than Kerala.


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II. Lunars Umbrella

The material used for making umbrella is mainly imported from Taiwan.The

company using high quality material for making umbrella.Lunars umbrella is mainly

solld within kerala.The company making different varieties and sizes of umbrellas.The

following are different varieties of Lunars umbrella:

Childrens Umbrella

Two fold Umbrella (manual and automatic)

Cup open Umbrella

Three fold umbrella

III. Lunar School Bags

These are newly introduced into the industry. Fine and cool style of bags for the

junior and senior students is available in the market now. Lunars school bags are sold with

in kerala. The company using high quality material and method of production to compete

with present market condition.

IV. Tourism

Green berg holiday resort and Green berg resource facility centre is a venture of the

company the tourism sector. Located at Nadukani, Kulamavu, Idukki (Dis), Kerala.


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COMPETITORS

Competitors of Lunar Hawai chapels:

Paragon

VKC

Eva Hawai

Senor chapels

Rubco

Competitors of lunar umbrellas:

Poppy umbrella

Johns umbrella

Competitors of Lunar bags:

Scoo Bee Day Bags

Peacock Bags

Paragon Bags

Boogy Boogy Bags


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ORGANISATION STRUCTUR


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ManagingDirector

General Manager

Asst. Gen.Manager

FinanceManager

MarketingManager

HRManager

ProductionManager

PurchaseManager

Fin. & Acct.Officer

Acct.Off. 1

Acct.Off. 2

JuniorAcct.Off

JuniorAcct.Off.

Clerk Clerk

Marketi

ng Off.

Sales Off.

Asst. HRManager

Maintanance manager

WorksManager

Supervisor

Mechanics,Plumbers ,Electricians

ExecutiveOfficer

Officer

JuniorOfficer

Senior Asst.Officer

OfficeAssistant

Clerk

Director 1 Director 2

Board of Director


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OVERALL FUNCTIONING

There will be quarterly meetings of the director board members. The board of

directors in their meetings takes corporate level policies and procedures. In case of any

emergency situation there will be special meetings. The board of directors appoints the

managing director to be in overall charge of administration of the company and office,

assisted by various officers at the office and factory. Any strategic decision involving policy

matters will be taken only with the concurrence of the Managing Director. He will be

assisted by the General Manager, Asst. General Manager, Finance Manager, Marketing

Manager and Production manager.

The Managing Director conducts weekly meeting with each department head, G.M.

and A.G.M. Functional level decisions are taken at these meetings. In these meetings each

department head will give report of the previous week's work. These reports will help to

asses the performance of the previous week.

The General Manager is in over all charge of the office with particular charge of matters

connected with Registrar of Companies, Banks, District Industries Center, Sales Tax,

Income Tax and Company meetings. He will be assisted by assistant General Manager and

other officers and staff in the proper running of the organization. The Assistant GeneralManager will assist the Managing Director and the G.M. in successfully carrying out their

work with special reference to P.F., E.S.I., Rubber Board, Labour Office, Insurance

Companies, Motor Vehicles and Motor Vehicle Department, Tax and Vehicle Finance,

Training of Personnel, Municipal and Panchayath Licences P & T etc.

Planning has a primacy over other management functions and is a pervasive element in

organizations. By planning, managers minimize uncertainty and risk. Planning does not deal

with future decisions, but with the futurity of present decisions.


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Top level managers of the company are generally concerned with planning involving

activities that will take place six months and above. Lower level managers are more

concerned with planning activities for the day, week or the month.

The supervisors plan for the work activities for their people for the day. They are not

responsible for producing sales levels and ordering materials to produce products in the

future. Top-level managers generally spend more time on planning. They are more

concerned with establishing objectives and developing plans to meet those objectives.

Lower level managers are more involved in executing these plans.

Decision Making:

Decision Making is an essential part of the management. A manager's life is filled

with a constant series of decisions. The managers make hundreds of decisions consciously

and subconsciously every day. Decision-making is the key part of a manager's activities. It

permeates through all managerial functions such as planning, organization, direction and

control.

In planning it is through the process of decision making that objectives and polices

are laid down and the manager decides many things such as what to produce, what to sell,

where, when how and so on. In organization decision-making relates to the choice of

structure, nature and for of organization, division of work, delegation of authority, fixing of

responsibility and the like.

In directing, decision- making relates to determining the course deciding the orders

and instructions to be given, providing dynamic leadership and similar other issues. In

controlling the decisions relate to the laying down of performance standards, strategic

control points, procedure for control and so on.

The method of decision making at various levels in Lunar is directly linked to the

process of the level of Board of Directors and Managing Director. Timely and proper

decisions are making the activities of the company vibrant.


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Authority:

Authority of a superi or depends on the willingness of his subordinates to accept it. The

authority becomes some what meaningless unless those affected accept it and respond to it.

If the subordinates do not accept authority, it is not real and does not exist Here in the

company the authority is accepted.

Responsibility:

When a superior assigns some work to a subordinate, it becomes his responsibility to

perform it. Responsibility is the obligation of a person to perform certain duties.

Responsibility is his accountability to his superiors. The subordinate must have been

delegated enough authority to undertake all the duties which have been assigned to him and

for which he has accepted responsibility. There is laxity at few places as far as responsibility

is concerned. This is a tendency in part of persons at superior level. This is due to lack of

determination to exert authority. This has to be checked.

Managing Director

MD is the Chief Executive Officer of the Organization.

His responsibilities are:

Document Control: to approve policy, manual & Procedures.

Management review: To Chair Management review meetings.

Resource Management: To Provide necessary resources for the smooth operation of the

organization.

Customer Focus: To review customer requirements and promote the customer

awareness.

Purchase: To approve purchase of raw materials, chemicals, packing materials,

Engineering, and capital goods Import of materials.


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Production Provision: - To review resource requirement for production and production

plain approval.

Continual improvement: To decide area for improvement and take necessary action for

improvement on the basis of data analysis.

Control of Non - Conforming Products. To review abnormal product non-conformities

and action plan for improvement.

Corrective of Preventive Action: To review Customer's feedback, to review the non

conformity so reported and to decide corrective / preventive action.

Marketing:- To approve price list , export orders, marketing stategy, promotional

activity.

Administration: - To approve policies, recruitment of top officials etc.

Performance appraisal of senior staff.

Leave Sanctioning of senior staff.

Payment approval

Approval of all policy matters.

General Manager

Overall responsibility of the administrative activities.

Legal matter monitoring

Monitoring of statutory or regulatory requirements.

Liaison with Govt. / Statutory bodies.

Labour issues monitoring.

Sales tax and related matters.

Advice MD on all policy matters.

Assistant General Manager

Assistant General Manager assists the Managing Director and the Genaral Manager

successfully carrying out with regard to Rubber board labour office,insurance matters ,

training of personnel , municipal,and panchayat licences.


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DIFFERENT DEPARTMENTS


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Recruitment Sources

Recruitment

Internal Sources External Sources

Transfer and promotions Press advertisement

Educational institution

Placement Agencies

The main source of recruitment in Lunar Rubber Pvt. Ltd. is external sources. The Company

has eight branches. The recruitment and selection of employees is done by each branches

separately and final approval is from the head office.

No special qualification regarding education is considered for factory workers. The

only factor considered is the ability and willingness of person to work hard. The minimum

age for workers is fixed as 18 years but no maximum age limit is fixed.


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SELECTION PROCESS

Preliminary

Interview

Application Form

Selection Test

Selection Interview

Physical

Examination

Reference Checks

Final Approval

Employment


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SELECTION

Selection is the process of choosing the most suitable persons out of the entire applicant.

The purpose of selection is to pick up the right person for right job and at right time and at

right place. Selection is an important function. No organization can achieve its goal without

selecting the right people.

In Lunar Rubbers Pvt.Ltd, sometimes selection is done through an informal interview. There

is no medical examination for fitness before selection. In the selection process attitude of

the person is considered. Sometimes Lunar Rubbers Pvt. Ltd. select people through campus

interviews.

Training and Development:

Employee training is distinct from management development. Training is a short term

process, utilizing a systematic and organized procedure by which non managerial personnel

learn technical knowledge and skills for a definite purpose. On the other hand development

is a long term educational process utilizing a systematic and organized procedure by which

managerial personnel learn conceptual theoretical knowledge for general purpose.

In Lunar Rubbers Pvt. Ltd. Training is given n to almost all workers. The method of training

is on the job training i.e. learning by doing. Training period ranges from 2 weeks to 2 years

Workers will get stipend during the training they get.

Working Time:-

Working time for office staff is 9.30 am to 6 pm. There are 3 shifts for factory workers. The

workers must work 8 hours / day. First shift is from 8.30 am to 5.30 pm, Second shift starts

from 5.30 pm to 1.30 am & Third shifts are from 1.30 am to 8.30am.

The working time will be rotated for each worker, so that every one should have to work in

all these three shifts. There are 25 working days in a month.


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Compensation:

Employee compensation is a vital part of human resource management. Wages salaries andother form of employee compensation constitute a very large component of operating cost"

one of the biggest factors affecting industrial relation is the salary or wage the compensation

an employee receives for a fair days work".

1. Basic compensation - Basic pay

2. Supplementary compensation - incentives and variable payments.

Method of wage Payment:

In Lunar there are two methods of wage payment.

1. Time wage system: - The time wage system is applicable in case of workers.

2. Piece wage system: - Under the system workers are paid according to the amount

of work done or the number of units completed

Incentives:-

There is a standard of performance beyond which workers will get special rewards.

Leave: -One earned leave for 20 days and one ESI leaves for 15 days are given to all the

employees. Daily wage is the basis of wage calculation but wages are paid monthly

Advance of wages given to the needy workers on Saturdays. Supervisors get monthly wages

on the basis of monthly wage system

Bonus: -

Bonus is given once in a year. It is in December

Employee Grievance:-

In Lunar Rubber Pvt. Ltd, the problem of workers should be solved by the Managing

Director. Workers can tell their grievances directly to Managing Director and he will take

corrective steps to solve it.


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Personnel Records: -

The company has the Personnel records for their references.

Seniority List: .Management of Lunar Rubbers Pvt.Ltd. Prepares the seniority list of theemployees.

Fringe Benefits:-

Medical facilities: - Workers enjoy ESI hospitals facility. There are ESI hospitals at

Thodupuzha & Perumbavoor. Those workers who do not have ESI facility get Rs. 1000/- for

medical allowances. There is a First Aid Box (FAB) in the factory.

Free Chapels and Uniforms: - Workers are given 3 pairs of chappels and uniforms in a

year. Reduction in price is also given, when they buy lunar chappels.

Recreation Facility:- Company conducts KUDUMBA MELA" (Family gathering) during

the time of festivals such as Onam, Christmas etc.,

Social Security Schemes :- Social security schemes are P.F., Gratuity and employee state

insurance (ESI).Gratuity is given to all the employees who complete 5 years of service,

including the training period

Loans:- Company provides loan facilities to the workers to meet their urgent

Allowance & other benefits:

Night shift allowance is given to workers. Overtime wage is the twice of normal wage

Labour welfare:

The workers enjoy the following facilities:

a) Facility for washing, storing & drying their clothes at the company premises.

b) Restrooms are provided to the workers.

c) Facility for drinking water.

d) Facility for making food but there is no canteen facility in the factory.


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Placement:- Most suitable Person from selection will get placement in the organization.

Induction:-Lunar Rubbers Pvt. Ltd conducts an Orientation Programme for the newcomer

employees in the organization

Probation:- The Probationary period of workers and staff in Lunar Rubbers Pvt. Ltd is up to 6

months.

Promotion:- On the basis of employee efficiency, performance, commitment or loyalty the

management will give job Promotion to the employees

Personality Development Programme:- Lunar Rubbers Pvt. Ltd, arranges a Personality

Development Programme for the Company Employees once in a year. These helps to the

employees to behave properly in the Company and Society.

Constituents of Salary:

The following are the constituents of Salary.

* Basic Pay * DA * Telephone Allowance

*HRA *TA

Performance appraisal:Performance appraisal is measuring the relative worth ness of a

person, who engaged in a job. Based on performance appraisal, Lunar Rubbers Pvt. Ltd provides

Best Executive Award for the Employees.

Trade Union:-There are two trade unions on Lunar Rubbers Pvt. Ltd AITUC (All India

Trade Union Congress) and CITU (Central Indian Trade Union). Salary hikes are discussed

in the labor office in the presence of union leaders, Managing Director, two persons from

Management and labor officer.

Duties and responsibilities of the HR manageris to ensure proper functioning of

the above process.


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PURCHASE DEPARTMENT

Purchase department plays a very important role in an organization. Its function is to

purchase materials, machines and tools at the most favourable terms consistent with

maintaining the standard quality, purchase of materials at the right time in adequate quantity

and quality and at the right price is very important.

In Lunar Rubbers Pvt. Ltd., purchasing section is connected with production department.

The purchase manager is in the charge of the purchase of the purchase department. Purchase

officers and storekeepers are there to assist the purchase manager. They will assist he

requirement of chemicals, verify purchase order, assess plan and purchase item in

consultation with the production manager.

When the level of raw materials reach the reorder level, purchase manager prepares a

purchase requisition for raw materials and sent it to the chief executive (M.D.) for the

sanction. Once it is sanctioned the order is placed. Purchase manager is one who decides

from where the raw materials have to be purchased. There is an easy access to raw materials

from local sources, e especially natural rubber which is abundantly available from the

nearby rubber estates.

When raw materials arrive the quality controller checks its quality and quantity and verify it.

He will report it to the concerned officer and the bill will be sanctioned. The raw materials

are given to the stores.


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STRUCTURE OF PURCHASE DEPARTMENT

Purchase Manager

Executive Officer

Officer

Junior Officer

Senior Assistant Officer

Office Assistant

Clerk


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Functions of Purchase Department

Receiving purchase requisition

Locating the source of supply

Choosing a supplier

Preparing the purchase order

Receiving, checking and inspecting materials

Passing of bills for payments

Major raw materials purchased in Lunar Rubbers Pvt.Ltd

a) Rubber: The most important raw material used in production is Rubber.Two varieties of

rubber are used, natural rubber and synthetic rubber.

b) Clay: It is used as filter, it is very cheap and easily available in kerala, English India Ltd.

Provides clay for Lunar Rubbers.

c) Pigments and colors: They are used for giving the pre-determined color of the footwear.

d) Resins and Tackifiers: Resins improve the processing capability.

e) Packing materials: The company purchases packing materials from Ernakulam and

Trivandrum. The main packing materials are

Sticker

Plastic cover

Small cartoon


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DUTIES AND RESPONSIBILITIES OF DEPARTMENT HEADS :

The main duty and responsibility of the department head is to ensure the proper supply of

raw material used in production. He has the responsibility of reporting to M.D. regarding the

purchase of materials. He also has the responsibility of raising purchase indents and receipts

of materials. Issue of materials and maintenance of all relevant records about these are also

include in his duties.

Duties and Responsibilities of purchase manager are:

Over all responsibility of the purchase activity

Vendor Control

Vendor development

Price monitoring

Timely supply arrangement of materials.

Purchase bill verification and recommending Payment.

Maintenance and control of the stock register.


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FINANCE DEPARTMENT

Finance is regarded as the lifeblood of business & enterprises. In modern money

oriented company, Finance is one of the basis foundations of all kinds of economic

activities. It is the master key, which provides access to all the sources for being employedin manufacturing of merchandising activities.

Efficient management of every business enterprise is closely linked with efficient

management of its finance. Business finance can broadly be defined as the activity

concerned with planning, raising, controlling& administrating of the funds uses in the

business.

The finance department is under the control of finance manager. The finance

Manager prepares the budget and he allocates the funds. Other accountants are helping him

in this matter.

In Lunar Rubbers all accounts are computerized and they follow double entry

system of book keeping.


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STRUCTURE OF FINANCE DEPARTMENT

Finance Manager

Accounts Officer IIAccounts Officer I

Junior Accounts Officer I Junior Accounts Officer II

Clerk Clerk


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FUNCTIONING OF FINANCE DEPARTMENT

The major function of finance department in Lunars is budgeting and raising funds

internally and from financial institutions and utilization of funds monitoring in application.

Maintenance of liquid assets and maximization of the profitability of the firm are also the

functions of finance department.

The basic function of financial management are the maintenance of liquid Assets

and maximization of the profitability of the firm. Maintenance of liquid assets means that

the firm has adequate cash in hand to meet its obligation at all times

.

The organization gives credit to customers.We know in recent years consumer credit isplaying an important role in sales but the realization of the credit is the problem faced by the

company. Usually Company allows credit to their distributors. The maximum credit is 30

days if the distributor purchases the goods for ready cash then the company allow 2 % cash

discount.

In Lunar the financial manager prepares the budget and allocates the funds. Other

junior accounts assist him in this matter. The accounts officer-1 is in overall charge of

accounts. Trial balance, balance sheet Audit of Accounts, Bank Assistance, Payment to

credit and collection from Sundry debtors, watching payment of dues and all other matters

connected with it. He attends to all matters connected with income tax including collection

of form and other material for filing returns, super check on classification of payments.

Receipts keeping,maintenance of cash book ledger etc. are under his control. He is assisted

by the junior accountants.

The accounts officer II is in charge of all matters connected with sales tax accounting

of purchase and sales bills, scrutiny and passing of vouchers for payment, preparation of

journal accounts, party accounts, branch accounts, bank returns declaration form - 18,

collection of cheques, direction of stock register entries. He also assists accounts officer I in

the preparation and finalization of accounts. The junior officer and accountant assist the

accounts officer II.


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The Junior accounts officer attend to all the accounts of small units returns and

returns of company matters, verification, electricity bills matters connected with SIDCO,

computers entry of accounts, printout, cashbook, ledger, bank accounts etc. Preparation of

monthly sales tax return, stock statements, bank returns etc are also the work of junior

accounts officers .Their work is under the supervision of the accounts officers, the company

giving P.P. of 12% to the workers as mentioned in the Act.

DUTIES AND RESPONSIBILITIES OF DEPARTMENT HEADS

Finance Manager

Head the Finance of Accounts department.

Advice MD on Finance Matters and Accounts Matters.

Recommend / evaluate cost control measures

Verifying all Purchase bills.

Verifying all cheque payments.

Verifying all cash payments.

Watching all expenses.

Preparation of final accounts and conducting audits.

Accounts Manager -1

Overall responsibility of accounts.

Verification of Journal bill and vouchers.

Payment to Parties - verification of payment request, writing of cheques and

preparing vouchers.

Import related matters.

Export related .matters like preparation of documents, house stuffing, negotiation

with bank etc.

ROC related matters like filling of various forms, return etc.,

Attending company law related matters like preparation statutory register.


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Preparation of monthly trial balance.

Finalization of closing entries.

Cash/ cheque control

Preparation of cash flows.

Income tax matters.

Accounts Manager2

Data entry of raw material purchase.

Verification of sales invoices

Preparation of branch transfer delivery notes and supporting

documents etc., All work related to provident fund.

Filling of returns and correspondence related to ESI.

All work relating to sales TAX

Verification of accounts related to Coimbatore branch.

Assistance in maintenance of stock records related to umbrella.

Verification of C forms, form 25, form 18 etc, issues to suppliers.

Assistance in connection with finalization of accounts. Verification of vehicle repair bills etc.

All matters regarding KGST andCST.

Accounts Assistant

Preparation of Cash Vouchers

General Vouchers

Data Entry Operations.

Bill verification.

Correspondence

File maintenance.


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PRODUCTION DEPARTMENT

Production is the creation of goods and services. It is concerned with terms

forming the inputs in the form of raw material, labour, machinery, men and money in to

output, i.e., goods and services with the help of certain production process. Production

function is the most important function in an organization around which other activities of

an enterprise via. Marketing, financing, purchasing and personal etc. revolve.

In production department chief is the production manager under him there are works

mangers and below them the supervisors. On getting the projected market demand for the

coming month from the marketing department, the production manager assisted by the

works manager takes steps and makes arrangements for production. This helps to maintainthe quality of the production. There is also a quality control and inspection wing. All the

functions in the production departments are checked by the production manager at in regular

intervals.


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STRUCTURE OF PRODUCTION DEPARTMENT

Production Manager

Work Manager MaintenanceManager

Supervisor Supervisor

Worker Mechanic Plumber Electrician


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FUNCTIONING OF PRODUCTION DEPARTMENT

1.Lunar Sheets Unit 12.Generator Room

2. Office 13.Inventory

3. Finished strap Unit 14.Maintenence Department

4. Viking Sheet Press 15.Engineering Room

5. Viking Kneader

6. Neo Mixing Unit

7. Strap Manufacturing Unit

8. Sheet Pressing Room

9. Generator Room

10. Lunar Kneader

11. Raw materials inventory

1 2

3 4 5 6 7 8 9 10 11

13

14 1512


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PRODUCTS OF LUNAR PVT.LTD :

I ) Lunar Hawai chappel:

Lunar's Deluxe

Lunar's Cushion

Lunar's Dimple

Lunar's Safari Activa

Walk mate

Aerolex - PVC

Flighter- PVC

Lunar's LiteEVA

Leather Touch

II) Lunar Umbrella

Childrens Umbrella

Two fold Umbrella (manual and automatic)

Cup open Umbrella

Three fold umbrella

III) Lunar School Bags


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QUALITY CONTROL

There is a Quality Control and inspection wing. They check the

product while passing through various manufacturing process and ensure the

quality of the product. Every morning there is a meeting between the plant manager and the works

manager. In which general appraisal will be made of the last days work.

RAW MATERIALS USED

a) Rubber: The most important raw material used in production is Rubber. Two verities of

rubber are used. Natural rubber and synthetic rubber.

b) Clay: It is used as filler, it is very cheap and easily available in Kerala, English India

Clay Ltd provides the clay for Lunar Rubbers.

c) Pigments and Colours: - They are used for giving the pre-determined color of the

footwear.

d) Resins and Tackifiers: - Resins improve the processing capability.

THE VARIOUS TYPES OF MACHINERY USED

1) Mixing machine

These machines are of two types:

Kneader

Open mixing mill

Both are used for mixing the various raw materials. But the capacity and speed of kneader is

higher than the other and is automatically controlled.

2) Hydraulic Press

This is used for moulding the hawai sheets, sheets are inserted in to this press and the

required design is moulded on both sides of the sheet.


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3) Moulds

Hawai sold mould is used for moulding the hawai sheets strap, 8 pairs of straps can be

moulded at a time.

4) Boiler

It is used for producing the required stream.

5) Cutting Press

It is used to cut the moulded Hawaii sheet into required size.

6) Drilling machine

It is used to make the holes in Hawaii soles after cutting into the required size.

PRODUCTION PROCESS OF LUNAR HAWAI CHAPPELS

Raw materials converted in to footwear involve several processes. Natural Rubber is

rolled in to the roller of mixing mill. After sometime, clay is added to the processed rubber.

Then other chemicals are also added. Then it is kept for 24 hours and is sheeted. Then we

get sheets, which are used on the lower blue part of the sole. The upper white part is also

made in the form of sheets. The white sheet it put above the blue sheet. They will stick

together. These are weighed. The sheet of required size and weight are moulded in the

hydraulic press or in the Hawaii sole mould. After moulding the sheets are kept for 14 to 20

days.

Then the sheets are cut into soles of required size in the cutting press. Then drilling

machine will make 3 holes in the sole. After some time the straps are moulded in the strap

press. Straps are inserted into the sole and are labeled and packed. Then lunar Hawaii chapel

is ready for use.


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.PRODUCTION PROCESS CHART-CHAPPELS

Raw Materials

Weighing

Mixing

Mill

kneeader

Ageing

of 24

hours

Sheeting Molding Visual

examination

and lab

analysis

PostCuringAgeing of 15daysSoleCutting

AssemblingPackingDispatch

Sole

Cutting

Sorting

Defectives

Trimming

Raw

Materials

Weighing

Mixing

Mill

kneeader

Ageing

for 24

hours

Sheeting Molding Visual

examination

and lab

testing

I. Lower Blue part

II.Upper White Part


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Safety Measures

There is an emergency reverse stop for the safety of the workers. In the emergency

situation just pull the stop bar, the machine slowly rolls to backward. This is a new

technology developed by the maintenance department in the Lunar Factory. Company

provides glows & Mask to the workers for their safety. There is a fire extinguisher and also

a first aid box in the factory.

Inventory Management

Every enterprise needs inventory for smooth running of its activities. It serves as a

link between production and distribution processes. There is, generally, a time-lag between

the recognition of a need and its fulfillment. The greater the time-lag, the higher the

requirements for inventory. The unforeseen fluctuations in demand and supply of goods also

necessitate the need for inventory. It also provide for a cushion for future price fluctuations.

Re-ordering Level

When the quantity of materials reaches at a certain figure then fresh order is sent to get

materials again. The order is sent before the materials reach minimum stock level. Re-

ordering level is fixed between minimum level and maximum level. The rate of

consumption, number of days required replenishing the stocks, and maximum quantity of

materials required on any day are taken in to account while fixing re-order level.

Production department has mainly 3 sections Purchase, Production, Stores.

On the basis of the re-order level duly authorized purchase indent is given to purchase

section based on purchasing materials. The purchase orders are prepared by purchase section

based on the requirement evident from and unlimited through purchase indent. The purchase


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order includes the following such as purchase requisition, number of material description,

quantity, rate, total cost, delivery date etc.

The purchase section maintains the following records.

a) Vendor evaluation

The purchase section maintaining and up-dating the vendor evaluation records

b) Purchase order format

The purchasing section keeps the purchase order format for the further reference

c) Vendor history registers

They also keeps with the purchasing sectiond) List of approved sub Contracts

To know about the approval of the sub contracts the list of the contracts keeps with the

purchasing section.

Stores control sections:

The purchase department as per purchase indents produces materials; it is received

along with documents like delivery notes, bills of entry, and invoice which ever is

applicable.Raw material and other items transferred to quality assurance section for

inspecting the required quality and the status is indicated in the Goods received note. The

accepted items are transferred to the receiving stores and sent back to the supplier. For the

purpose of efficient inventory management following records are prepared.

1) Goods Received Note (CRN)

2) Bin Card

3) Stock Register

4) Consumption Report

5) Issuing Note

6) Follow-up-Note


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Quality Checking Machine

Lunar Rubbers Pvt. Ltd Provides more importance to the quality of products. For checking

or measuring the quality they use a machine called Rheonetor.

DUTIES AND RESPONSIBILITIES OF DEPARTMENT HEADS:

Production manager:

Ensure that Policy of Objectives (relevant to the function) are communicated

and understood, also to ensure the processes of the QMS are established and

maintained. Reporting to Management on Performance of this system and any need for

improvement.

Promoting awareness of Customer requirements throughout the organization.

Liaise with external agencies including certifying body on matters related to

this QMS.

Plan and organize internal and external audits and follow up on

corrective / preventive actions resulting from the audits.

Plan and organize management review meeting and prepare minutes

of the meeting.

Overall responsibility of the Plant.

Quantity of Quality of Production

Material requirement intimation.

Planning of preventive maintenance.

Efficient operation of the plant.

Discussing of giving necessary instructions to subordinates.

Technical problem solving.

Optimizing the utility consumption.

Labour Control / relations.

Appraisal of Factory staff.


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Quality system implementation, monitoring and improvement.

Controlling production and maintenance records.

Training and discipline of the factory Personnel.

Timely Manufacturing of products.

Reporting to MD regarding factory functioning.

Works Manager

Overall responsibility of the cutting, assembling and Packing unit:

Arranging products for dispatch in time

Arranging packing materials.

Co-ordinating with manufacturing units

Reporting to MD regarding the Product complaints.

Performance monitoring of the cutting unit.

Co-ordination with out sourcing unit.

Maintenance Manager

Preventive and break down maintenance.

Beginning store control.

Intimating engineering requirements to PM.

Verification of incoming engineering materials.

Break down analysis

Supervisor

Supervise the activities in the shift.

Job allocation to workers and Manpower Control in the shift.

Quality and Quantity of Production.

House keeping

Shift documentation.

Ensure the operational instructions are implemented and followed.

Responsible for the loading and unloading activities.

Proper arranging and identification of raw materials and chemicals.

Control of loading work force.

Proper arranging of ready for despatch material.


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MARKETING DEPARTMENT

The American Marketing association (A.M.A) Defines Marketing as the Performance of

the business activities that direct the flow of goods and services from the producer to the

consumer or to the user.

According to Philip Kotler Human activity directed at satisfying needs and wants through

exchange process. The process of exchange involve sellers, searching buyers, identifying

their wants and needs, making relevant product, promoting and strong ,transporting and

distributing them and negotiating and so on

It represents the important functional area of business, for the flow of good and services

from the product to the consumer. It helps to the plan and develops the product on the basis

of known consumer demands.

The Lunars Rubbers Pvt. Ltd has well developed Marketing Department and it is headed by

the marketing manager of the company


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STRUCTURE OF MARKETING DEPARTMENT

The Marketing Department conducts various meeting to take the decisions regarding the

various activities. The Marketing Manager presents a report of the previous months

activities. These meetings and reports are helpful to study, analyze and control the problems

being faced by the product in the market. They will also assess the target fixed for the sales

and compare it with the achievements made. This department conducts studies to explore

new markets and to expand the existing market. The head of the department in consultation

with the managing director takes decision in connection with sales promotion activities,

advertisement etc.,

Regional sales manager conducts meeting with this junior sales manager. In this meeting the

regional sales manager gets a clean picture of the present position.

Marketing Manager is one who decides the Marketing Strategies for every major decision

which affecting Marketing. Marketing Manager takes decision, but the Chief Executive

(MD) takes final decision

Marketing Manager

Marketing Officer

Sales officer


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Marketing Mix

The combination of marketing methods and programs are known as marketing mix.

There are four elements into marketing mix.

1. Product mix

2. Price mix

3. Promotion mix

4. Place mix.

(1). The product portfolio of Lunar Rubbers includes

According to William J Stanton "A product line is a group of products intended for

essentially similar uses and possessing reasonable similar characteristics".

The product mix is the full list of all products offered for sales by a company

In Lunar

Hawai Chappels

Umbrella

School bags

Company manufactures varieties of Hawai Chappels.

1. PVC Products

a) Flighter

b) Aerolux


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2. EVC Products

a) Elter

b)Lunar Lite

3. Lunars Delux

4.Lunars Cushion

5.Lunar Dimple

6.Lunar Safari

7.Lunars Activa

8.Lunars Hitech

9.Lunars zoom

.UMBRELLA

Lunar Rubber Pvt. Ltd. has entered into the umbrella market in the year 1999. There are 45

verities of umbrella differing in design (i.e. two fold and 3 fold) and in color. Almost all the

parts and material required for the umbrella are imported from the countries like Taiwan,

Saudi Arabia. These parts are assembled in various assembly units.

;

Lunar introduced one more variety of umbrellas in the name Godfather. The peculiarity of

this umbrella is that it is a cane framed lightweight umbrella, which can capture the full

attention of the umbrella market.

Varieties of umbrella.

Children Umbrella

Ladies Umbrella

Cup open Umbrella

Gents Umbrella


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Advertising:

It is the major promotion tool. The American marketing Association defines advertising as

any paid form of non-personal presentation and promotion of ideas, goods and services by

an identified sponsor. It is a paid form of communication.

Lunar Rubbers Pvt. Ltd. has gone for a massive advertising campaign. Media of advertising

are: T v, radio, boards, stickers, banner, cover and outdoor advertisement

Publicity:

The American marketing Association defines publicity as any form of non-paidcommercially significant news or editorial comment about idea. Products or institutions.

Lunar mainly concentrating print media publicity.

Dealers Promotion activities:

Complements are provided to dealer as a tool for dealer promotion. Also they

conduct an annual meeting for dealers. They are also promoting customer-promotion

activities.

(4). Place mix of Lunar Rubbers.:

Distribution channels have a vital role especially in the distribution of consumer

goods. The sales of the company are done with the help of privately owned distributors. The

distributors and wholesalers supply the products to various retailers and finally reach the

consumer.


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MARKETING ACTIVITIES:

The various Marketing Activities are branding, packing, pricing & distribution.

1. Branding:

It is an important aspect of product planning. It involves the assignment of a

brand name to the product being offered to the customer.

Lunar Rubbers Pvt. Ltd, enjoy a high degree of brand preference among the

consumers. It is said to have high brand equity. High brand equity provides a number

of competitive advantages to the company. The company reduced marketing cost

because of high-level consumer brand awareness and loyalty. The company has more

trade leverage on bargaining with distributors and retailers. The main market leaders

of Hawaii chappals in Kerala are Paragon and Lunar.

Popular brands of Hawaii chapels available in Kerala are Lunar, Paragon, Eva,

Rubco, etc. These brands vary in the amount of power and value they have in the

market place. The popular brands of umbrella available are Lunar, Poppy, John's etc.

The main markets of the Lunar chappals are Kerala, Tamilnadu, Karnataka and

Maharashtra.

2. Packing & Labeling

Once the decision taken on the brand, we have to consider the design and

makeup of the packages and the labeling of the packages.

Packing is the activity of designing and producing the container or wrapper of

a product. Label is a part of the product. It gives verbal information about the product

and the seller.


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Packing material used for Packing of hawai chapels are

Coloured Box

Polythene Bag .

Gray Board Box

Polythene Bag Printed

Curtains are reusable Polythene Bag printed with advertisements are used for

packing the hawai chapels and Umbrella manufactured by Lunar Rubber's Pvt. Ltd.,

4. Pricing: -

In setting the price of the product, the company should follow the procedures

given below.

1) The company should carefully establish it's marketing objectives such as survival,

maximum current profit and maximum market skimming or product quality

leadership.

2) The Company determines the demand schedule, which shows the probable quality

purchase per period at alternative price levels. The more inelastic the demand the

higher the company can set its price.

3) The Company establishes how its cost varies at different output levels and with

different level of accumulated production experience

.

4) The company examines competitive price as a basis for positioning its own price.

5) The company selects one of the following pricing methods

Markup pricing, target return pricing, perceived value pricing of sealed bid pricing.


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6) The Company selects its final price expressing it in the most effective

psychological way, co-ordinating it with the other marketing mix elements

DUTIES AND RESPONSIBILITIES OF DEPARTMENT HEADS:

Marketing Manager:

Over all responsibility of the marketing activities.

Market development

Promotional activities.

Distributor Control

Preparation of sales plan

Sales monitoring

Route Planning

Control of sales office

Cash collection / monitoring of Collection of dues.

Marketing analysis.

Collect of market data.


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SOCIAL CONTRIBUTION OF THE COMPANY

The company provides slippers,school bags, and umbrella to the orphanagesand

charitable institutions free of cost. The company provides funds for philanthropic

purpose,that is it provide funds to aids patient and provides more job opportunities to

poor people.The company also establishing traffic signals and provide houses to poor

people.

ENVIRONMENTAL CONTRIBUTION OF THE COMPANY

One of the special feature of the Lunar Rubbers Pvt.Ltd is that it does not pollute the

environment.Waste materials produced by the company send to Delhi at regular

times.They recycled the waste material and used it for another purpose.Recycled

material can also reuse.


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ANALYSIS


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SWOT ANALYSIS

Strength: -

Second largest manufactures of Hawai Chappals in Kerala.

Since Lunar's products are manufactured as per the strict quality guidelines,

they are able to make high quality products.

Easy availability of raw materials helps the company to manufacture products

at lower prices.

Company has a policy of continuous development and innovation in products,

which enables it to maintain high market share (43% in Kerala market).

Frequent meeting between the owners and employees helps to build a good

employer - employee relationship.

An ISO 9001-2000 Certified Company.

Weakness: -

No special educational qualification is considered during recruitment of

factory workers.

Price variation in the rubber market

Less advertisement of Lunar Umbrellas


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Opportunity:

Globalization of the economy has helped the company to overcome

operational restrictions and to make strategic alliance

Scope for mobilizing funds widened

Since, the products are use in all walks of life the company can target all types

of income group.

The Company can extent the Market to more foreign countries.

Since the company has introduced different varieties of products, it help the

company to enlarge its market share..

Threats:

Increasing competition due to liberalization of the economy.

Fast Changing technology

The young generation exhibits less interest in buying lunar foot wears.

Well designed products from the other companies.


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CONCLUSION


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PARTB

RESEARCH STUDY


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INTRODUCTION

Apart from the organisation study conducted, a problem study was also conducted.

The subject for the study was selected after discussions with the companys marketing

department and with the project guide. The need for studying the competition the

company is facing in the market was revealed from those discussions and decided to

conduct the study on the market acceptability of the company in comparison with its

competitors. The subject for the study is The market acceptability of Lunars

footwears compared with Paragon and VKC.

As the main competitors of the company are Paragon and VKC, the study was

conducted on the basis of the comparison with these two competitors. The market

acceptability of the company was the major area under the study. The study was

conducted on the basis of certain parameters like purchase preference, customer

demand, advertisement based demand, finishing and quality, efficiency in delivery of

goods etc.


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PURPOSE OF STUDY

The main purpose of the study is to understand the market acceptability of the

company in the market. As the company is facing competition from other companies

the study was mainly conducted to get an over view about its market acceptability in

comparison with its main competitors- Paragon & VKC. The study was intended to

find the areas where the company is lagging behind so that effective measures can be

adopted to over come these draw backs.

SIGNIFICANCE OF THE STUDY

The study was conducted at areas where the company is not in a good position. So the

study was also intended to find the reasons for this and find suitable measures to make

a good improvement in sales in these areas. So the results of the study was so

significant to take proper measures to over come these problems and improve sales in

these areas.

OBEJECTIVES OF THE STUDY

The following are the objectives of the study:

To understand the market acceptability of the company in comparison with its

main two competitors.

To under stand the current position of the company in certain areas in

comparison with its competitors.

To understand the areas where the company has to make improvements for

increasing sales.


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METHOD OF DATA COLLECTION

Primary data

Visiting the organization and through interview with the authorities.

Visiting and interviewing the retail shop keepers.

Using structured questionnaire.

In the questionnaire the respondents were the owners of the retail shops . The

sample was random and took 45 samples for the research.

Secondary data

Secondary data was collected mainly from the supplements and brochures of the

company.

THE RESEARCH DESIGN

The samples selected were the retail shop keepers. As they deal with the customers,

they could give a clear idea about the demand and sales for the companys products.

They could give good information regarding the areas where the company is lagging

behind.

The samples were the retail shop owners from different places in Kottayam and

Eranakulam districts. Since the company head quartered in Thodupuzha, areas in and

around the place were not selected for the study. The shops from Idukki district were

also avoided since the company is in a leading position in the dstrict. The samples

were mainly selected from areas where the company is not in a leading position. The

study was conducted with a structured questionnaire which was based on certain

parameters like purchase preference, customer demand, advertisement based demand,finishing and quality, efficiency in delivery of goods etc.


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SAMPLE SIZE

A part of the population or a subset from a set of units which is picked up by some

process is called sample size. Here the sample size for study is 45 an were the retail

shop keepers from various places of Kottayam & Eranakulam districts. As retailers

are the people who deal with the customers regularly, they were able to give a good

idea about the sales and demand for different brands and its products.

METHODS USED FOR ANALYSIS

Pie charts and bar charts were used in analyzing the data.

Cross tabs used to prepare tables comparing two variables

LIMITATION OF THE STUDY

As the data will be collected through questionnaire, there are chances of

biased information provided by the respondent.

The time for the organisation study and market study was only 21 days, the

availability of time was a problem.

The samples were selected from distant places selecting more samples were

difficult with the available time.


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(1). Stocks purchase

Rank

company

Once in

a week

Once in

two weeks

Once in

three weeks

Once in a

Month

TOTAL

Lunars

33 (73.3%) 10 (22.2%) 1 (2.2%) 1 (2.2%)

45 (100%)

Paragon

38 (84.4%) 7 (15.6%)

_ _ 45 (100%)

VKC

42 (93.3%) 2 (4.4%) 1 (2.2%)

_ 45 (100%)

33

10

1 1

38

7

42

2 105

1015202530354045

once in a week once in twoweeks once in threeweeks once in amonth

purchase of stocks

Lunars Paragon VKC


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Lunars

Out of the 45 samples, 33 of them purchase stocks from Lunars once in a week, 10 of

them purchase stocks once in two weeks, 1 purchase stocks once in three weeks and 1

purchase stocks once in a month.

Paragon

Out of the 45 samples, 38 of them purchase stocks from Paragon once in a week and

the rest samples 7 purchase stocks once in two weeks.

VKC

Out of the 45 samples, 42 of them purchase stocks from Lunars once in a week, 2 of

them purchase stocks once in two weeks and 1 purchase stocks once in three weeks.

(2). Purchase preference

Rank

company

1 2 3 Can not say TOTAL

Lunars 4 (8.9%) 25 (55.%) 16 (35.6%) _ 45 (100%)

Paragon22 (48.9%) 14 (31.1%) 9 (20%) _ 45 (100%)

VKC 22 (48.9%) 16 (35.6%) 7 (15.6%) _ 45 (100%)


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Lunars

Out of the 45 samples, 4 of them give first preference to purchase stocks from Lunars

25 of them give second preference and 16 samples give third preference to purchase

stocks from Lunars.

Paragon

Out of the 45 samples, 22 of them give first preference to purchase stocks from

Paragon 14 of them give second preference and 9 samples give third preference to

purchase stocks from Paragon.

VKC

Out of the 22 samples, 16 of them give first preference to purchase stocks from VKC

7 of them give second preference and 16 samples give third preference to purchase

stocks from VKC.

Purchase preference ranking

4

25

16

22

14

9

22

16

7

0

5

10

15

20

25

30

1 2 3

Lunars Paragon VKC


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(3). Whether Price factor is important or not

Frequency

Always 28 (62.2%)

Sometimes 14 (31.1%)

Never 3 (6.7%)

Out of the 45 respondents 28 (62.2%) of them gave the opinion that price factor is

important always, 3 (6.7%) of them said that price is sometimes an important factor

and 14 (31.1%) said that price is not an important factor


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(4). Affordability of products

Rank

Company


Lunars 25 (55.6%) 8 (17.8%) 3 (6.7%) 9 (20%) 45 (100%)

Paragon 21 (46.7%) 9 (20%) 6 (13.3%) 9 (20%) 45 (100%)

VKC 19 (42.2%) 12 (26.7%) 5 (11.1%) 9 (20%) 45 (100%)

Lunars

Out of the 45 respondents, 25 of them gave first rank for the affordability of Lunars

products, 8 of them gave second rank and 3 of them gave third rank while 9 of them

had no opinion.

25

8

3

9

21

9

6

9

19

12

5

9

0

5

10

15

20

25

30

1 2 3 can not say

Affordability of products

Lunars

Paragon

VKC


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Paragon

Out of the 45 respondents, 21 of them gave first rank for the affordability of Paragon


had no opinion.

VKC

Out of the 45 respondents, 19 of them gave first rank for the affordability of VKC


had no opinion.

(5). Profit margin offered

Rank

company


Lunars 21 (46.7%) 16 (35.6%) 1 (2.2%) 7 (15.6%) 45 (100%)

Paragon 13 (28.9%) 8 (17.8%) 17 (37.8%) 7 (15.6%) 45 (100%)

VKC 28 (62.2%) 8 (17.8%) 2 (4.4%) 7 (15.6%) 45 (100%)


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Lunars

Out of the 45 respondents, 21 of them gave first rank for the profit margin offered by

Lunars, 16 of them gave second rank and 1 of them gave third rank while 7 of them

had no opinion.

Paragon


Paragon, 8 of them gave second rank and 17 of them gave third rank while 7 of them

had no opinion.

VKC


VKC, 8 of them gave second rank and 2 of them gave third rank while 7 of them had

no opinion.

Profit margin ranking

21

16

1

7

13

8

17

7

28

8

2

7

0

5

10

15

20

25

30

1 2 3 can not say

Lunars Paragon VKC


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Report

organiztional study at lunar

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