royal sales and electronic

7/27/2019 Royal Sales and Electronic

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TRAINING REPORT

UNDERGONE

WITH

By

SOHAGIYA MITESH G

DEPARTMENT OF BACHELOR OF

BUSINESS ADMINISTRATION

Submitted To

PROF. V.B.SHAH INSTITUTE OF

MANAGEMENT & R.V.PATEL

COLLAGE OF COMMERCE

AMROLI 394107

JUNE-2003


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CONTENT

1 Acknowledgements

2 Preface

3 History Of Organization

4 Introduction Of Royal Sales

5 Location Of Organization

6 Organizational Structure

7 Growth Of The Organization

8 Organizational System

9 Future Plans & Policies

10 SWOT Analysis

11 Conclusion


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ACKNOWLEGEMENT

It is an occasion of great pleasure and a matter of deep felt of

personal satisfaction to present this complied statement of the industrial

training undergone at an organization Royal Sales. My first thanks

goes to Mr. J.B.Shah who has organized such a programmed as known

as the summer training in the summer vacation after the second year.

My second thanks is for Mr. Rakesh patel and Mr. Daxesh patel who is

the owner of the organization for his help in giving all kind of

information related with organization and its policies.

Following are the members of the management of the

organization who help me in preparing the report.

1

2

I would like to give heartily thanks to Mr.Soni and Mr.Ved for

giving me opportunity for industrial training.

Thanking you

Sohagiya Mitesh

(S.Y.B.B.A)


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PREFACE

With the great pleasure, I under take the writing of this report of

the industrial training because it is a matter to be proud of that, I am the

student who is presently undertaking education in the field of business

administration which is being offered at graduation level in only six

collage in Gujarat.

As the student of management, I must be encouraged by the

growth and rapid development taken place in the corporate sector inIndia. Still recently, the management is growing baby. Keeping in mind

the ever development field of management and the great demand for

the management cadre in our country. The university has arranged for a

full paper on industrial training in the field of Marketing

management, Personnel management, Financial management and

Production management at the end of fourth semester. Thus it is my

moral and obligatory duty to take this part of my study with great

enthusiasm and seriousness and give it is the due importance. And for

this purpose, I had taken training in the Royal Sales. Another

advantage of this training is to get the practical knowledge related tothe handling of an organization at the study of management, which is

very much important.

Sohagiya Mitesh


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Brief History of Royal Sales

The organization was established in 1

st

MAY, 1968 at that timeit was only a service station at surat station area. After getting a most

great technical experience, he starts The Royal Sales before ten years

ago, up to 1998 he sales low prices and normal electronics products. In

1998 he got dealership of different company.

Mr. Rameshbhai Patel, the sole owner of Royal Sales

showroom, and hailing from remote village from Gujarat, he had not

basic education. At the time of started his business he having only

goodwill as his initial capital. Due to his hard work and dedication he

was able to mark astonishing progress and in 1998 he started ashowroom of electronics product.

By hard working and provide a best service and guidance to

customer and covered much part of the market. He helped by his both

son and employees, he would be aware by people of his area and

before six month ago he started a branch of his showroom at parle

point, with the help of his both son and assistant.

Introduction of Royal Sales

Royal Sales Corporation is the dealer of products of theelectronics items. It has contact of different types of Electronics

Company in all over Gujarat. Mr. Rameshbhai Patel is the owner

of the organization. The shop is at Surat and it started in 1968 with

Mr. Rameshbhai Patel.

The owner Mr. Rameshbhai Patel has two sons. . Mr. Rakesh

is a graduate in commerce whereas Mr. Daxesh is a diploma holder intechnical line in Pune.Mr. Rakeshbhai Patel, is the manager of The

Royal Sales at Ghod Dod Road and Mr. Daxeshbhai Patel, is the

branch manager of The Royal Sales at parle point.


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Location of Organization

Generally, the electronics stores are located in central place in

big cities. The buyers who visit the central market can make their

purchases without much wastage of time. The bigger electronics stores

offers a great no. of amenities and attraction to the customers.

The Royal sales is not located in central place of surat but the

location of this store is likewise great attraction to the people than other

stores in this area, Where the store is located there are higher and

middle class families and this electronics store is totally based on

higher-middle class person, There fore majority of people are attracted

by this store.

Royal Sales is situated on Ghod Dod Road. So that people of allover city and near city who visit the store. They do not have the face

any problem for transporting and traveling.

The Royal sales provides many amenities to the people and their

customers like restaurant facilities, garden for children, slides and

jumping roof for children and various from of recreation provides to

the customers.

The owner of the organization chooses an ideal location of the

time of launching the store. The management of Royal sales is also

followed the following points which governs the plant location.

- Proximity to market

- Easy excess to material supply

- Transport and communication facility

- Available of cheap and skilled workers

- Availability of power and water

- Climate of region

- Managerial preference

These are the major points which should be considered by eachentrepreneur before choosing the location and we find that Mr.

Rameshbhai has done so for location of Royal sales and electronics.


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Organizational Structure

The Royal Sales is form of large scale business. In below

structure each and every person has their own responsibility. Theyworkout properly for success of the business the managing director

investigates or inspects all the activities of the shop and maintain it. In

any company and electronics store, the manager is responsible for

formation of policies and programs and revision in the light of actual

experience.

After the managers, there are assistant in the line of authority.

They are incharge of a particular section. Below the manager there are

assistants and technicians in the line of authority in the organization,

such the organizational structure is given below.

Mr. Rakesh Patel(Manager)

Mr. Daxesh Patel(Branch Manager)

Mr. Rameshbhai Patel(Managing Director)

T2T1 T5T4 A1T3 A2

A3


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Assistant:-

A1 Mr. Bhargav

A2 Mr. Prafful

A3 Mr. Jatin

Technicians:-

T1 Mr. Vijay

T2 Mr. Rajesh

T3 Mr. HarishT4 Mr. Vishal

T5 Mr. Hitesh

Growth of the Organization

Year Sales(Round figure)

2000-01 40,00,000

2001-02 60,00,000

2002-03 1,40,00,000


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Sales(Round figure)

0.00

5,000,000.00

10,000,000.00

15,000,000.00

2000-01 2001-02 2002-03

Sales(Round figure)


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The sales proportion of different type of companies

Company Sales (in 2002-03)

THOMSON 9705759

SAMSUNG 42730

PHILIPS 1686020

THOSHIBA 1771885

SHARP 495000

WHARFDALE 232708

JAMO 199028

PANASONIC 91670

Sales proportion of co.

69%

0% 12%

12%

3%

2%1%1%

THOMSON

SAMSUNG

PHILIPS

THOSHIBA

SHARP

WHARFDALE

JAMO

PANASONIC


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Organizational System

In every organization or in company, there are some

organizational systems on which the company or organization work.

The total handling of the business based upon this system. The total

control of the business mainly depends upon these four systems:

- Finance system

- Marketing system

- Personnel system

- Production system

These four systems depend upon the nature and type of the

business. Here the nature of business is like wise electronics store

where everything and goods are available at retail price of the

company.

MarketingIntroduction:-

The marketing concept emerged in the mid-1950s and

challenged the preceding concepts. Instead sense-and-respondphilosophy, instead of hunting, marketing is gardening. The job is

not to find the right customers for your product, but the right products

for the Industrial Revolution were that of the manufacturer who said,

This is what I make, wont you please buy it. The call of the

manufacturer who said, This is what I make, wont you please buy it.

The call of the manufacturer who said, This is what I make, wont

you please buy it. The call of the information Age is the consumer

asking, This is what I want, and wont you please make it.

The marketing concept holds that the key to achieving itsorganizational goals consists of the company being more effective than

competitors in creating, delivering, and the mid-1950s and has been

expressed in many colorful ways.


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Meaning:-Marketing is the process of planning and executing the

conception, pricing, promotion, and distribution of idea goods and

services to create exchange satisfy individual and organizational goal.

We see marketing management as the art and science of

choosing target market and getting, keeping, and growing customer

through creating, delivering, and communicating superior customer

value.

Market:-A market consist of all the potant9sl customers sharing a

particular need of want who might be willing and able to engage in

exchange to satisfy need of want.

Selling:-Such that the Royal Sales makes the selling of the electronic

items they are the dealer of the electrons items They retails that product

which manufactured by the different company

MARKETING MIX:-Marketing mix is developed to satisfy the anticipated need or the

identified the market. A brief description of the four element of

marketing is:

ProductA product is anything that can be offered to a market to satisfy a

want or need. Products that are marketed include physical goods,

services, experiences, events, persons, places, properties, organizations,information, and ideas.

Product variety:-The Royal Sales is the retailer and it sales the electronics items

such as TV., MP3, VCD, DVD, PROJECTION T.V., HOME


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THEATER SYSTEM, AMPLIFIERS, SPEAKERS, AND

PROJECTOR. And they have wide range of that product according to

company and output wise.

Quality:-They sales only the qualitative product, they interested to sales

only that product which have good quality and brand.

Design:-The Royal Sales is not a producer but the retailer so that the

product is decided by the company.

Brand name:-The brand name is not a ultimate thing which makes sales

increase. Thats why they doesnt concentrate on brand of company but

they suggest to the customer about the quality and service of the

product.

Packing:-Normally the packing are done by the company. They only

makes a testing at the time of sales of product and makes a further

packing as same as company packing.

Sizes:-In the electronics item customers are not interested in the size of

the product but they are interested in output of the product and the

Royal Sales has different output wise product and they offer different

product according to customer require and interest.

Services:-The Royal Sales is well-known about service they provide best

services before and after sales which we indicate in The Chapter of

Service.

Warranties:-Warranties are facilitated by the producer to their customer and

The Royal Sales is the retailer so that whatever warranty offered by the

company it indirectly offer to the customer.

Returns:-


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When the put order and get back the order first of all they check

the order and, if there is any defective or not according to order is

return to the company.

PricePrice are a key positioning factor and must be decided in relation to

the target market the product-and-service assortment mix, and

competition. All retailers would like to high volumes and high gross

margins. They would like high Turns x Earns, but the two usually do

not go together. Most retailers fall in to the high markup, lower-volume

group or the low-markup, higher-volume group. Within each of these

groups are further gradations.Retailers must also pay attention to pricing tactics. Most retailers

will put low price on some items to serve as traffic builders or loss

leaders. They will run storewide sales. They will plan markdowns on

slower-moving merchandise.

Some retailers have abandoned sales pricing in favor of

everyday low pricing (EDLP). EDLP could lead to lower advertising

costs, greater pricing stability, a stronger image of fairness and

reliability, and higher retail profits.

Discount:-They are interested to sales the product on its MRP price, yet

sometimes they gives discount on product on some special occasion

and festival.

Payment period:-They gives time to the customer to check the product is three

days and then collect the payment by Cheque or Cash. Sometimes they

take advance in some special product.

PromotionThe promotion planner should take in to account the type ofmarket, sales-promotion objectives, competitive conditions, and each

tools cost-effectiveness.

Sales Promotion:-


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We can distinguish between manufacturer promotions and

retailer promotions. The former are illustrated by the auto

Industrys frequent use of rebates, gifts to motivate test-drives and

purchases, and high-value trade-in credit. The latter include price cuts,feature advertising, retailer coupons, and retailer contests or premiums.

We can also distinguish between sales-promotion tools that are

consumer-franchise building, which reinforce the consumers brand

preference, and those that are not. The former impart a selling message

along with the deal, as in the case of free samples, frequency awards,

coupons when they include a selling message and premiums when they

are related to the product. Sales-promotion tools that are not consumer

franchise building include price-off packs, consumer premiums not

related to a product, contest and sweepstakes, consumer refund offers,

and trade allowances.

Advertising:-Advertising is any pais form of non-personal presentation and

promotion of ideas, goods and services by an identified sponsor.

Advertising Media:-For effectiveness of advertisement Royal sales adopt the medias

like Newspaper, T.V. channel, Hoardings, Charity show, curriers etc.

and Royal decides the budget for media

Sales force:-They believe to sales the best they always try to satisfy thecustomer so if customer is not interested in the product then they do not

apply sales force activities.

Public relation:-They have high goodwill in the market because of their

salesmanship and service. The people knows about them that they

provides best service before and after sales and also make aware to

customer that, what they have to purchase according to their needs.

Because of that salesmanship and service they have good relation withpublic.


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Place

Channels:-

1. Physical

flow

Supplier

Transporter

Warehouses

Manufacturer

Transporter

Warehouses

Dealer

(Royal Sales)

Transporter

Customers

2. Title flow

Supplier


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Manufacturer

Dealer

(Royal Sales)

Customers

3. Payment flow

Supplier

Bank

Manufacturer

Bank

Dealer

(Royal Sales)

Bank

Customers


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A retailers most important decision concerns the target

marker. Until the target marker is defined and profiled, the

retailer cannot make consistent decisions on product

assortment, store dcor, advertising and media, price andservice levels.

Royal Sales consist the people who are normally middle

class family and also higher class family because they have

both high segment & low segment product which comfortable

for both category.

Market ResearchRoyal sales has not provides any special employee for

market research but the existing staff research themselves fromoutside and from competitors. By this they can increase the

facilities for customers.

They also use the blank form of suggestion. In which

customer suggest they about good and bad thing or matter or

any difficulty faced by them. The management serve that

suggestions and try to make better themselves from what they

are.

CompetitionA Royal sale is the retailer and Competition in retailingis no longer between independent business units but between

whole systems of centrally programmed networks competing

against one another to achieve the best cost economies and

customer response.

So that they believes in selling the best product to the

customer and for that they also guide to their customer about

the product and suggest them according to their need what they

have to actually buy and proper response. Such they make

compete with the rivals.

Retail Market


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Retailing includes all the activities involved in selling

goods or services directly to final consumers for personal, non-

business use. Retailers can be understood in terms of store

retailing, nonstore retailing, and retail organizations.Like all marketers, retailers must prepare marketing

plans that include decisions on target markets, product

assortment and promotion, and place. These decisions must

take into account the major trends in retailing.

Distribution networkRoyal sale is the part of the Distribution network they

are the whole seller as wall as retailer of the electronics items.

Finance

Meaning:-We all are aware that in Economics, the four factor of

production considered are Land, Labour, Capital and

Organization. The term Capital can also be referred to asFinance. It represents the money that is required to be

brought in to finance or fund an activity.

Finance is regarded as the life blood of a business

organization. The Financial Management study about the

process of procuring of financial resources and its judicious


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utilization with a view to maximizing the shareholders

wealth, Efficient management of every business enterprise

largely dependant on the efficient management of his finances.

Finance System:-Finance system is broadly concerned with the

acquisition and use of funds by a business firm. Finance

management is an integral part of the job of managers, who are

involved in planning, allocation of resources and controlling.

The responsibilities are dispersed throughout the organization.

Finance management is mainly concern with the following

points:

Nature and type of business

Size of the business Growth of the business

The mix of the firm financing

Composition of firm asset

Control on financial affairs and analysis of plan

Need for long term finance:-Any business organization needs finance mainly for two

reasons:-

o To finance long term requirement

o To finance day to day short term working capitalrequirements.

The long term requirements for finance include funds

required for

Setting up of the firm

Expansion

Modernization

Diversification

Replacement of existing machine.

Other similar capital expenditure decisions.

Capital structure:-The Royal Sales is invested just 5 lacks at the initial

time and borrow 3lacks from the financial institute. The

organization all of its transaction are on credit base up to


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now they are not invest a single rupees yet they have make

a huge business growth specify in the chapter of growth.

The main capital which they are invest is their Goodwill.

Source of Finance:-Normally the retailer has not invested much more money

for the firm because they are the part of channel of distribution,

yet sometimes they have to invest some finance. The Royal

Sales has some source of finance as under which they use

when they have to need of finance.

Trade creditTrade credit refers to the credit extended by the suppliers

of good and service in the normal course of business. Delaying

or postponing payment to suppliers is a major source of

financing Working Capital requirement. Is a common trade

practice that business house dont make an immediate payment

for the good delivered or services rendered to them. Payment is

made only after an agreed period of time which varies from

industry to industry.

Bank creditWorking Capital finance is provided by the Bank in

three ways:(1) Cash Credit: -

The cash credit facility is a good source for

the Royal Sales and it is given by the bank of

Baroda.

(2) Working Capital Term loan: -Advance is give by banks for 4-5 years which are

repayable in yearly or half-yearly installment.

Commercial bill marketCommercial paper is a short tern promissory note soldby highly rated companies for their working capital needs. It is

issued on a discount but payable at face value at the time of

maturity. Commercial paper is an unsecured instrument. There

is no limitation on the end use of funds acquired through


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commercial paper. They are regulated by RBI. It can be issued

for periods ranging from 15days to one year. The minimum

size of an issue is RS. 25 lacks and the minimum amount of

subscription is RS5lacs by any investor.Inter-corporate deposit:-

Inter corporate deposit is the alternatives for the

organization and it is well aware in the businesses but The

Royal Sales is rarely use such source.

Friends:-Friends are also the source of getting finance for the

Royal Sales, when they have a need of immediate cash then,

they are use this source.

Working capital mgt.:- Working capital signifies money required for day to day

operations of an organization. No business can run without the

provision of adequate working capital. The requirement of

working capital may differ from organization to organization.

Cash mgt.:-The Royal sales has not need immediate they

good relation with the company and they got proper credit yet

they have to give some advance payment for special product to

the company. In such case they takes advance from thecustomer and in other case, They makes normally cash or near

by cash transaction with the customer.

The Royal Sales has also good relation with the

bank and because of their timely rotation of the money, the

bank also give them the facility of BOD.

Receipt &Payment:-The organization makes receipt from the customer

in the form of cheque as well as cash and makes payment by

cheque and bill to bill.Inventory:-

They does not put much inventory as a stock

whenever, there is any need of good then they puts a order and

yet get it very soon according to distance of company.


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Credit PolicyThey make such policy that, they gives three day credit

period to their customers. When the transaction is about a

special product then they also takes advance from thecustomer. Sometimes they give a credit period more than three

days to their permanent customer and friends.

They have given 21 days as a credit period by the

companys and also give a permission to keep a certain goods

up to specified amount as inventory, if the organization want to

kept more than permissible stop then they have to paid that

amount within 21 days. In some cases when the order about the

special product then they also have to make a advance

payment.

Services

PRODUCT OFFRED IN THE MARKET:-

THOMSON

Televisions

MP3

VCD

DVD

Projection T.V.

PHILIPS

Televisions

Mobile

VCD

THOSHIBA

Televisions

Projection T.V.

JAMO

Widest range of speakers (according to looking &

output)


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Home Theater System.

DENON

Amplifiers (Wide range)

BARCO

Projectors

SHARP

Projectors

CINERAMA

Professional Theater

Public Address System

WHARDALE

Speakers (Wide range)

BLAUPUNKT

Stereo Music (Car)

Car Television

KELVINATOR

Electrolux (refrigerator)

Washing machine

HITACHI

Air Conditioner

FACILITY PROVIDES TO THE

CUSTOMERS:-Pleasant most common and required facilities and

services provide by Royal Sales & Electronics are as follows:

Warm welcome

Wide rang of products

Centrally A.C. system

Convenient presentation to select goods

Most competitive rates Excellent quality

Special Demo room to show the effect of products

Cool and pleasant atmosphere

Wide and specious Light music for enjoyment


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It provides credit card facility

Both shop have their own specialty

Best sales after service

Free home delivery service

Well-manner service

Occasional scheme

Occasional decoration in the store


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Personnel

Personnel System:-Royal sale has a well trained staff. It has good

technicians each and every technician has effective skills of all

the items. They represent their skills towards the maximum

sale of goods.

If there is any problem, then the can say to his superior

or manager. Superior or manager takes immediate action on it.

They provide the incentive to their technicians by given

them training they gives them training such as that they put the

customer in the center and makes them satisfy the customer.They pay quit good salary and also other welfare facility to the

employee. They create the environment such likes family.

They also help them in their personal problem.

They also know that each and every person is lack at

somewhere so they also give them friendly guidance to their

employee. Each and every time they always makes eye on

them. They also takes care about that they have give advice

such that the fillings of employee is not hurt. If any types of

complain about the employ from the customer than they Makes

discuss with them about that and try to learn that how to

behave with the customer.

Training & Development of employee:-The Royal sales normally require technicians, when they

hired the person from the society he might be has not skill and

technique so that the organization give them proper training

and also about that how to make a sale and taking care of

customers.

Relationship:-Relationship has the aim of building long-term, mutuallysatisfying relations with key parties-customers, suppliers, and

distributors-in order to earn and retain their long-term

preference and business. The ultimate outcome of relationship

is the building of unique company asset called a network. So


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that they makes good relationship with customer as well as

company.

Relationship with customers:-The main aim of the Royal sales is to satisfy the

customer so that they have good relationship with the customer

and they got many permanent customers who trust on the

organization. They always have given according to their

requirement and proper product by Royal sales.

Relationship with company:-

The Royal sales have also quite good relation withConsultant Company. They make timely payment to them and

always try to increase sales and show the result of their effort

to the company

Future Plans & Policies

Every organization has their own plan & policies for

future Royal Sales & Electronics has also future plan &policies, which are given below:

Royal Sales & Electronics is interested to sales new and

modern most technical electronics products.

Royal Sales & Electronics is going to remove credit term

and want to make sale on cash.

They think about give professional theater on rent.

SWOT Analysis


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STRENGTH

High quality with accept ional cost

High social acceptability of distribution

Strong image of the organization

Goodwill of the organization is also high

Best location of the organization

WEEKNESS

Lack of co-ordination in branches

Lack of motivation to the employees

Labour misunderstandings

OPPORTUNITIES

High scope of export in the world countries

Scope for diversification

THREATS

Facing high competition from small scale business units

Operation and expansion of similar pose competition

Conclusion

So far as my study is concerned electronics is the

company, which thinks about all persons, connected with it

whether it is a customer or retailers or dealer or employee. The

company is doing those things, which can be benefited to all

persons concerned with it. It thinks about consumer by

providing the best quality item. The organization has done its

best level to satisfy the need of the customers.

The organization has owned a very good credit. And its

the market also. The shop has a very good coverage of market

even at the time of the deciding of the product demand.


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Bibliography

Marketing management kotler

Finance management

B.S.Shah

Other data and statement Royal

Sales

royal sales and electronic

Documents