Professional Documents
Culture Documents
Introduction................................................................................................................................3
Introduction to company....................................................................................................................4
AMUL...............................................................................................................................................5
MOTHER DAIRY.............................................................................................................................6
Organizational Design.......................................................................................................................8
Organizational design of mother dairy...........................................................................................9
Advantages and disadvantages of departmentalization............................................................10
Operations...................................................................................................................................12
3 Tier Transportation of Milk...........................................................................................................15
THE MARKETING MIX 4 PS:.....................................................................................................21
THE EXTENDED 7 PS:................................................................................................................22
Human Resource..........................................................................................................................26
Financial Management...........................................................................................................31
Capital Structure.........................................................................................................................31
Liquidity Ratios:..........................................................................................................................32
(greval, 2012)..............................................................................................................................32
Profitability ratios:.......................................................................................................................33
(greval, 2012)..............................................................................................................................33
Activity ratios:.............................................................................................................................34
Solvency ratios:...........................................................................................................................34
Social Responsibility of Mother Dairy, Amul.................................................................37
SWOT Analysis of Mother Dairy....................................................................................39
Works Cited..............................................................................................................................40
Introduction
Introduction
A dairy is a business enterprise established for the harvesting of animal milk mostly
from cows or goats, but also from buffaloes, sheep, horses or camels for human
consumption. A dairy is typically located on a dedicated dairy farm or in a section of a multipurpose farm (mixed farm) that is concerned with the harvesting of milk.
Dairy is a place where handling of milk and milk products is done and technology refers to
application of scientific knowledge for practical purposes. Dairy technology has been defined
as that branch of dairy science, which deals with the processing of milk and the manufacture
of milk products on an industrial scale.
With industrialisation and urbanisation, the supply of milk became a commercial industry,
with specialised breeds of cattle being developed for dairy. Initially, more people were
employed as milkers, but it soon turned to mechanisation with machines designed to do the
milking.
Introduction to company
GCMMF
AMUL
MOTHER
DAIRY
year 2009-10, GCMMF has been awarded "Golden Trophy" for its outstanding export
performance and contribution in dairy products sector by APEDA.
The Amul brand is not only a product, but also a movement. It is in one way, the
representation of the economic freedom of farmers. It has given farmers the courage to
dream. To hope. To live.
GCMMF - An Overview
Year of Establishment
1973
Members
3.23 Million
17,025
(amul)
AMUL
Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India. The word
amul is derived from Sanskrit word amulya meaning rare, valuable. The cooperative was
initially referred to as Anand Milk Federation Union Limited hence the name AMUL.
It was formed in 1946, it is a brand managed by a cooperative body, the Gujarat Co-operative
Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3 million milk
producers in Gujarat.
DrVergheseKurien, founder- chairman of the GCMMF for more than 30 years (1973- 2006),
is credited with the success of Amul .
The present chairman of GCMMF is Mr. Jethabhai Patel.
(amul)
MOTHER DAIRY
Mother Dairy is the part of Amul. It was established on 19 September,1994. Mother Dairy,
the name itself suggests its importance. In homes we usually see that mother always have
the extra food so that it doesnt get waste, in the same way this mother dairy was established
so that the extra milk doesnt get waste.
Actually mehsana dairy, amul dairy etc which are established in different parts of Gujarat
had surplus milk because they dont have enough processing plant for processing milk. So
all the extra milk is sent here for processing. If mother dairy would not be there then all the
surplus milk would get waste which would eventually result in great loss because 30,000
milk is unloaded per hour and per day 30 lakh milk gets processed.
(ahugia, 2015)
Vision :-Amuls vision is to provide more and more satisfaction to farmers, customers,
employees and distributors.
Mission :- Amul has motivated and dedicated workforce who are committed to produce
wholesome and safe foods of excellent quality to remain market leader through development
of quality management system, state of art technology innovation and eco-friendly operations
to achieve delightment of customers and milk producers.
Organizational Design
Organizational Design
Organizational structure is the formal arrangement of jobs within an organization. When
managers create or change the structure, theyre engaged in organizational design, a process
that involves decisions about six key elements: work specialization, departmentalization,
chain of command, span of control, centralization and decentralization and formalization.
Work Specialization: This means dividing work activities into separate job task. It is also
known as division of labour.
Departmentalization:After deciding what job task will be done by whom, common work
activities need to be grouped back together so work gets done in a coordinated and integrated
way. The way these jobs are grouped is known as departmentalization. There are different
types of departmentalization:
1.
2.
3.
4.
5.
Functional Departmentalization
Geographical Departmentalization
Product Departmentalization
Process Departmentalization
Customer Departmentalization
Chain of Command: The chain of command is the line of authority extending from upper
organizational design level to lower levels, which clarifies who reports to whom.
Span of Control: The number of employees a manager can efficiently and effectively
handle.
Centralization: The degree to which decision making is concentrated at upper levels of
the organization.
Decentralization: The degree to which lower level employees provide input or actually
make decisions.
Formalization: Formalization refers to how standardized an organizations jobs are and
extent to which employee behavior is guided by rules and procedures.
(kotler, 2012)
Organizational Structure
Theories about organizational structure can help with plans for organizational success. These
theories may influence how an organization allocates resources. Organizational theory
describes how an organization interacts with its environment. Early theories were overly
bureaucratic and have given way to organizational theories that apply to a multitude of
dynamic situations.
(business basics)
Centralization
Mother Dairy follows centralized way of controlling. All the laborers report to sectional
head and they report to departmental head and the reporting goes on.
Mr. A.K Dhagat is the senior manager who has the final authority.
(ahugia, 2015)
Advantages
1. Employees can develop skills in depth and can progress within a department as they
master those skills.
2. The company can achieve economies of scale in that it can centralize all the resources it
needs and locate various experts in that area.
3. Theres good coordination within the function, and top management can easily direct and
control various departments activities.
Disadvantages
1.
2.
Operations
Operations
Plant Location
Plant location may be understood as the functioning of determining where the plant should be
located for maximum operating economy and effectiveness. The selection of place for
locating a plant is one of the task for an entrepreneur while launching a new enterprise.
Things which are to be kept in mind while selecting a place:
1.
2.
3.
4.
5.
6.
Mother Dairy
Advantages
1. It is away from commercial and residential area.
2.Near Ahmedabad as they target Ahmedabad customers.
3. Pollution free area.
4. Transport cost becomes less.
5. Environment is clean and green.
Mother Dairy had 3.6 MW CPU plant of its own through which it generated electricity. But
now it has changed its plant and took a connection line of 66KB from Gujarat Electricity line.
Government provides no subsidies to Mother Dairy.
(ahugia, 2015)
Ghee
Butter
Milk
(ahugia, 2015)
Mother Dairy
Production Process
The surplus milk is collected from all the sectors of Gujarat. Total 30,000 milk gets unloaded
per hour and then sampling is done and it is stored in cylo storage, which has a capacity of
storing 1,50,000 litres. Then from there milk is transferred to process control room which is
the heart of mother dairy if for any reason any machine stops working then whole work of
mother dairy gets stopped. Here pasteurization of milk is done. Milk is heated at 75 oC for 5
seconds, then at 5o C it is cold freezed. Nearly 30 lakhs litre milk gets pasteurized per day.
During pasteurization fat is separated from milk and it is used for making butter and ghee.
These machines work for 24 hours and there are 12 engineers who operate these machines as
no manual work is needed during pasteurization. These engineers have their 3 shifts and 4
engineers work in 1 shift. From 700 a.m 1500 p.m, 1500 p.m 2300 p.m, 2300 p.m
700 a.m.
If any problem is found in these machinery a member from technical department is called and
within 5 min the problem is to be solved.
After pasteurization of milk quality check is done for food safety.
Then the milk is sent for packing. Mother Dairy has its own pouch packing machines. And 1
machine can pack 100 pouches per hour and on an average nearly 11 lakh litre milk is
packed. There are 4 buffer tanks where milk is stored.
Infactmother dairy has its own pouch making theory where production of pouch is done.
Quality check is done at each level so as to ensure safety. The company has ISO:9001
certificate
(ahugia, 2015)
(ahugia, 2015)
Marketing
What is Marketing ?
According to Philip Koetler Marketing management is the analysis, planning,
implementation and control of programmes designed to create, build, maintain mutually
beneficial exchanges and relationships with target market for the purpose of achieving
organizational objectives.
Marketing is a social process by which individuals and groups obtain what they need and
want through creating, offering and freely exchanging products and services of value with
others
Features of Marketing
1. Need and Want: The focus of marketing is need and want of customers. All activities
are carried out with this purpose only.
2. Creating a Market Offering: Market offering means offering a product or service by
specifying its features, shape, size, colour, etc.
3. Customer Value: Customer is ready to pay the price for the product only when he
gets satisfaction or only when product is offering utilities matching to the price.
4. Exchange Mechanism: The process of marketing involves exchange of products and
services for money or moneys worth.
(GANDHI, 2012-13)
Product - The Product should fit the task consumers want it for, it should work and it
should be what the consumers are expecting to get.
Place The product should be available from where your target consumer finds it
easiest to shop. This may be High Street, Mail Order or the more current option via ecommerce or an online shop.
Price The Product should always be seen as representing good value for money.
This does not necessarily mean it should be the cheapest available; one of the main tenets
of the marketing concept is that customers are usually happy to pay a little more for
something that works really well for them.
Promotion Advertising, PR, Sales Promotion, Personal Selling and, in more recent
times, Social Media are all key communication tools for an organisation. These tools
should be used to put across the organisations message to the correct audiences in the
manner they would most like to hear, whether it be informative or appealing to their
emotions.
In the late 70s it was widely acknowledged by Marketers that the Marketing Mix should be
updated. This led to the creation of the Extended Marketing Mix in 1981 by Booms &Bitner
which added 3 new elements to the 4 Ps Principle. This now allowed the extended Marketing
Mix to include products that are services and not just physical things.
People All companies are reliant on the people who run them from front line Sales
staff to the Managing Director. Having the right people is essential because they are
as much a part of your business offering as the products/services you are offering.
Processes The delivery of your service is usually done with the customer present so
how the service is delivered is once again part of what the consumer is paying for.
Physical Evidence Almost all services include some physical elements even if the
bulk of what the consumer is paying for is intangible.
(GANDHI, 2012-13)
Mother Dairy
Product: Mother Dairy follows marketing mix. It produces many products like milk,
ghee, butter, ice-cream etc.
Price:And the price of those products differs and depends on products. Infact in milk
also the price varies depending on the quality of milk.
Ex. Amul Shakti has 4.5% fat which cost Rs. 46 per litre.
AmulGold has 6% fat and it cost 42 Rs per litre.
Promotion: We can see that Amul doesnt need any promotion because it is known and
trusted worldwide. Its name has goodwill and it can be seen as a brand name. And mother
dairy has a marketing section which takes care of promotion and we can see T.V
advertisements of Amul for different products.
People:People refers to Human resources and Human resources are the most important
assests of an organization. An organization can win over competitor with efficient
employees only because two organizations can have same physical, technological and
financial resources but not human resources. In Amul there are nearly 750 employees
which work efficiently and try to achieve goal and maintain their position.
Place: Mother dairy has B2B business. It sells its finished products to different outlets
who again sell them to customers. We can find mother dairy products at any grocery
shop. (ahugia, 2015)
Report on Mother Dairy
Page 22
Distribution network
Entire chain of distribution intermediaries from the supplier to the consumer is known as
distribution network. A strong and efficient distribution network is one of the most
important assets a manufacturer can have, and is the biggest deterrent that faces the
new competitors.
(GANDHI,
2012-13)
Mother Dairy follows 2 tier distribution channel. It takes order from distributors 1 day
prior. Nearly 13- 14 lakh litre milk is daily distributed. There are 250 milk vans which
transport milk in morning and evening and deliver it to area delivery agent. There are many
distributors in Ahmedabad and all the milk to these distributors is sent from here. There are
nearly 17 district branches from where milk is transported.
(ahugia, 2015)
Target Market
A target market is a group of customers towards which a business has decided to aim its
marketing efforts and ultimately its merchandise. A well-defined target market is the first
element to a marketing strategy.
Target markets are groups of individuals that are separated by distinguishable and noticeable
aspects. Target markets can be separated by the following aspects:
Mother Dairy targets all households of India, and even abroad. It makes milk powder
mainly keeping in mind the north areas where milk is not available easily. And the tetra
packing helps in preserving milk for 6 months.
(ahugia, 2015)
Report on Mother Dairy
Page 23
Positioning
Positioning is the marketing activity and process of identifying a market problem or
opportunity, and developing a solution based on market research, segmentation and
supporting data. Positioning may refer the position a business has chosen to carry out their
marketing and business objectives. Positioning relates to strategy, in the specific or tactical
development phases of carrying out an objective to achieve a business' or organization's
goals, such as increasing sales volume, brand recognition, or reach in advertising.
(kotler, 2012)
Mother Dairy holds NO.1 position in milk industry .
There are no competitors in terms of milk production and selling. But there are many such
products which are made by many companies like ice cream, butter etc. So in such cases we
can say that Amulhave competitors like Havmore, Vadilal etc.
(kotler, 2012)
Human Resources
Human Resource
Human resource management (HRM, or simply HR) is a function in organization,
designed to maximize employee performance in service of their employers strategic
objectives. HR is primarily concerned with how people are managed within organizations,
focusing on policies and systems. HR departments and units in organizations are typically
responsible for a number of activities, including employee recruitment, training and
development, performance appraisal, and rewarding (e.g., managing pay and benefit
systems). HR is also concerned with industrial relations, that is, the balancing of
organizational practices with regulations arising from collective bargaining and governmental
laws.
Human Resources are the biggest asset for any organization. Organizations may have same
physical, technological and financial resources, but there cant be same human resources.An
organization can win over competitor with efficient employees only because two
organizations cannot have same human resources.
(GANDHI, 2012-13)
Mother Dairy
Mother Dairy has nearly 750 employees including 200 work labour who were recruited in
1998 and from then on no more new recruitments are made, which means no employee has
left the organization without any solid reason.
Organization takes complete care of their employees it gives safety equipments to them
which are required as per their work. Like provide glasses for wielding, compulsory height
safety belt etc.
Their salary is fixed.The company has some leave policies according to some rules and
regulations like casual leave, sick leave, previliousleave(earned leave).
10 casual leave to all employees in a year
6 sick leave to all employees in a year
20 earned leave to all employees in a year
Employees always want best for their company, because it their company is running with
great success it is because of them and also the credit is given to them. But sometimes just
words are not enough, you need to satisfy their personal objectives, which differ from person
to person. Some may want monetary incentives, and some non monetary. Now the work of
the company is to understand them and try to provide them. This will also motivate the
employees to do over work and complete the goals. Mother Dairy also announces some
monetary incentives every year. And S.R provident fund is provided.
(ahugia, 2015)
Recruitment
Recruitment refers to the overall process of attracting, selecting and appointing suitable
candidates for jobs within an organisation, either permanent or temporary. Recruitment can
also refer to processes involved in choosing individuals for unpaid positions, such as
voluntary roles or training programmes.
Recruitment may be undertaken in-house by managers, human resource generalists and/or
recruitment specialists. Alternatively, parts of the process may be undertaken by either publicsector employment agencies, commercial recruitment agencies, or specialist search
consultancies.
(GANDHI, 2012-13)
Mother Dairyfor recruitment takes the help of Data Bank, Consultancy Firms, and also gives
advertisement in Newspaper. And then test and interviews are taken. And then recruitment
takes place.
Ex: Naukri.com
(ahugia, 2015)
Training and Development
Training and development is a function of human resource management concerned with
organizational activity aimed at bettering the performance of individuals and groups
inorganizational settings. It has been known by several names, including "human resource
development", and "learning and development".
Training and development encompasses three main activities: training, education, and
development.
Training: This activity is both focused upon, and evaluated against, the job that an
individual currently holds.
Education: This activity focuses upon the jobs that an individual may potentially hold
in the future, and is evaluated against those jobs.
Development: This activity focuses upon the activities that the organization
employing the individual, or that the individual is part of, may partake in the future, and
is almost impossible to evaluate.
Methods of Training
There are mainly two methods of training:
On the job training
Off the job training
1. On-the-job training:When employees are trained while they are performing the job
then it is known On- the-job training. Under this method the employees learn by
doing. This method is suitable only for technical jobs.
The advantageof this method is employees can learn the practical problems while
working on the job.
The biggest disadvantage of the on the job training is that it results in wastage of
resources.
When ever an employee is dealing with expensive and sophisticated machinery then
on the job methods of training should be avoided.
Report on Mother Dairy
Page 28
2. Off-the-job training: Off the job training means training the employees by taking
them away from their work position which means employees are given a break from
the jobs and sent for training. This method of training is more suitable for managerial
job positions as conferences, seminars are held to train the managers.
(GANDHI, 2012-13)
Mother Dairy
Mother Dairy follows On The Job Training method. And the training which they provide
includes teaching of how to do their job efficiently and the work of their seniors also, which
means they train their employees ahead of a position. And when the employees are more
efficient and can even do their superiors job they can be given promotion. This promotion
policy will not only increase enthusiasm between employees but the employee will pay more
attention and will try to learn more things.
(ahugia, 2015)
Finance
Financial Management
Availability of efficient finance is very crucial for the survival and growth of business. That is
why Finance is also called the Life Blood of Business.
Financial Management is concerned with efficient acquisition and allocation of funds.
Capital Structure
Capital Structure means the proportion of debt and equity use for financing the operations of
business. In other words, capital structure represents the proportion of debt capital and equity
capital in the capital structure. The capital structure should be such which increases the value
of equity share or maximizes the wealth of equity share holders.
Debt and equity differ in cost and risk. As debt involves less cost but it is very risky security
whereas equities are expensive securities but these are safe from company point of view.
Debt is risky because payment of regular interest on debt is a legal obligation of the business.
In case they fail to pay the debt security holders can claim over the assets of the company and
if firm fails to meet return of principal amount it can even go to liquidation and stage of
insolvency.
Equity securities are safe securities from companys point of view as company have no legal
obligation to pay dividend to equity share holders if it is running in loss but these are
expensive securities.
Capital Structure of the business affects the profitability and financial risk. A best capital
structure is the one which results in maximizing the value of equity shareholder or which
brings rise in price of equity shares.
Liquidity Ratios:
Liquidity ratios measure the adequacy of current and liquid assets and help evaluate the
ability of the business to pay its short-term debts. The ability of a business to pay its shortterm debts is frequently referred to as short-term solvency position or liquidity position of the
business.
Generally a business with sufficient current and liquid assets to pay its current liabilities as
and when they become due is considered to have a strong liquidity position and a businesses
with insufficient current and liquid assets is considered to have weak liquidity position.
(greval, 2012)
Profitability ratios:
Profit is the primary objective of all businesses. All businesses need a consistent
improvement in profit to survive and prosper. A business that continually suffers losses
cannot survive for a long period.
Profitability ratios measure the efficiency of management in the employment of business
resources to earn profits. These ratios indicate the success or failure of a business enterprise
for a particular period of time.
Profitability ratios are used by almost all the parties connected with the business.
A strong profitability position ensures common stockholders a higher dividend income and
appreciation in the value of the common stock in future.
(greval, 2012)
Activity ratios:
Activity ratios (also known as turnover ratios) measure the efficiency of a firm or company
in generating revenues by converting its production into cash or sales. Generally a fast
conversion increases revenues and profits.
Activity ratios show how frequently the assets are converted into cash or sales and, therefore,
are frequently used in conjunction with liquidity ratios for a deep analysis of liquidity.
Solvency ratios:
Solvency ratios (also known as long-term solvency ratios) measure the ability of a business
to survive for a long period of time. These ratios are very important for stockholders and
creditors.
GCMMF formed a specific organization named "Amul Relief Trust" (ART) under the
Chairmanship of Dr. V. Kurien in 2001 with a donation of Rs. 50 Millions for reconstruction
of the school buildings damaged in the 2001 earthquake in the Kutch area.
(amul)
Conclusion
Strength
1.
2.
3.
4.
5.
1.
2.
3.
4.
Weakness
Opportunity
1. Continuous demand of dairy products and other products by mother dairy
2. Market and socialize the products
3. Increase its market share by expansion in untapped markets
Threats
1. Strong marketing muscle by competitors
2. Unstable economic condition in india
3. Other competitor brands
Works Cited
ahugia, s. (2015, december tuesday). mother dairy.
amul. (n.d.). Retrieved feburary saturday, 2015, from gcmmf: http://amul.com/m/gcmmf
business basics. (n.d.). Retrieved feburary saturday, 2015, from yahoo: http://businessbasics.org/advantages-and-disadvantages-of-departmentalization/
dairy. (n.d.). Retrieved febuary saturday, 2015, from wikipedia: http://en.wikipedia.org/wiki/Dairy
GANDHI, P. (2012-13). BUSINESS STUDIES. DELHI: SULTAN CHAND.
greval, t. (2012). financial statements. delhi: s. chand.
kotler, p. (2012). marketing management: a south asian perspective. pearson.