CHAPTER IV

SWOT ANALYSIS

SWOT analysis stands for strengths, weakness, opportunities, and threats. It is a tool for
auditing and organization and its environment. It is the first stage of planning and helps
marketers to focus on key issues. Strengths and Weakness are internal factors. Opportunities and
Threats are external factors.

STRENGTHS

 JQ Tyre is the only company which has adopted TPM Total production maintenance.

 First truck/bus steel radial plant in India.

 Over rise decades of experience in tyre manufacturing.

 It is self sufficient in tyre production.

 In Bangladesh it has no, position in market share.

 Absorption of international technology to suit Indian conditions.

 Well-knit distribution network.

 Exports to more than 68 countries in the world.

 It has 21% market share in India.

 Tyre is easily available and serviced even in remotest parts of the country.

WEAKNESS

 Media of advertisement is insufficient.

 Target will be fixed by the head office.

 It doesn’t manufacture two wheeler tyres.

  There is no pricing strategy adopted by JQ Tyres, Vikrant plant, Mysore.

 The company is incurring more cost compare to other tyre manufacturer.

 Welfare of the labour is not taken into consideration.

 Low productivity of labour, in comparison to world standards.

 High cost of raw materials in comparison with the goal standards, smaller size of plant
and hence less economic units.

OPPORTUNITIES

 It is easy to become j.q Tyre Company in India.

 Robust economic growth, particularly vehicle production growth resulting in healthy

demand growth for tyres in the future.

 Excellent brand equity of Indian cross ply/bias truck tyres in the world market.

 Export culture inculcated enabling participation of small car is expected to give a thrust
of auto component and tyre segment.

 Improved road infrastructure especially on the golden quadrilateral and north-south-east-

west national highway project will result in significant increase in movement of goods
and passenger traffic through roads with resulting growth in demand for in tyres.

 The company has the knowledge of entire tyre industry and businesses conditions
prevailing in the market. So it can easily start two wheeler tyre productions.

THREATS

 Faster pace of opening up of the economy will increase import of tyres.

 Gradual increasing in natural rubber price.

 Reduction in important duties will lead to high volume of tyre imports.

  Confessional import tariffs for countries like china and South Korea under regional trade
agreement will lead to additional imports.

 Competition posed by the national and international market.

 Too much intervention by the head office.

 It has to adopt modern technology to reduce the cost of production.

 Government policies about the tyre industry.

 Multinationals with financial muscle setting up of manufacturing facilities in the country.

LEARNING EXPERIENCE

In this competitive world it is very much important to have experience of working in an

organization and only class room teaching is not enough? Doing this project lot of learning has
occurred. Learning of practical applications of theoretical knowledge by exposing to company
has occurred. The learning experience is enlisted below.

 The company is managing good industrial relations wherein good relation between
workers and the superior managers. Is visible in terms of performance in the company &
Industrial peace..
 The company is well managed with timely business strategies.
 Based on ratio analysis the financial soundness of the company is measured. The
following are learning experience with respect finance area of the company

 I have studied the organization of the company, the strategy adapted by the company, the
organization hierarchy and the way it works.

 The company gets the products of other competitors such as Bridgestone tyre to their
testing labs and makes comparison with their product and adopts the technology of their
competitors and attempts to give better product than their competitors.

 The company has adopted “The participative leadership style” so it encourages to its
workers to show more interest in managerial activities.
  In production department, the process of the production is divided into different shops. It
has safety measures at the work place. It has used advanced technology like automated
machine in order to minimize cost of production. They produce quality product. Main
strategic intention of the department is recycling the wastage. If any wastage comes after
the recycling it is send to other company for making the rubber better.

 During the adoption of new technology, management provides more training skills to the
workers for the efficient work and the work position.

 In order to motivate the employees, the company follows an internal recruitment process
through promotions. If there is any vacant job the company first searches within the
organization and if right employee is not available internally then it goes for external
recruitment.

GRIEVANCE HANDLING

WHY IS HANDLING AN EMPLOYEE GRIEVANCE SO IMPORTANT?

Ensuring a sound professional conduct and a healthy environment for its internal
customers is a predisposition for any company. Since, a firm is essentially comprised of
individuals it is natural for disruptions to arise. However, how those disruptions and grievances
are tackled is what plays a very important role for the smooth functioning of a work place. There
may complaints or objects pertaining to the contract of an employee or the working pattern and
parameters, or even out of cultural differences, at times even an employee persecution,
disruptions arising out of salary and many other reasons.

Effective human resource policies should handle the grievance in such a way,
which causes minimum loss to either the employee or the company and holds to the focus on
performance orientation. They should be fair in their conduct while tending the complaint and
foster a positive environment which is suitable for not only the firm’s growth but also
individual’s professional and most importantly mental growth. Maintaining a positive rapport
with the labor is the key to relationship building.

PRECAUTIONS AND PRESCRIPTIONS

The management should take care of following aspects to develop a culture of trust and
confidence upon the employees.

 Always ensure that the managers involved in the grievance handling procedures have a
quiet place to meet with the complainant.
 Always ensure that managers have adequate time to be devoted to the complainant.
 Explain manager's role, the policy and the procedures clearly in the grievance handling
procedure.
 Fully explaining the situation to the employee to eliminate any misunderstanding and
promote better acceptance of the situation complained of.
 Try to let employee present their issues without prejudging or commenting
 Do use a positive, friendly ways to resolve the crisis than punitive steps, which disturb
the system.
 Do remain calm, cool, collected during the course of the meeting.
 Always focus on the subject of the grievance than allied issues.
 Don't make threats manage the grievances.
 Never make use of allegations against personalities.
 Be aware of the staff member's potential concerns to the possible repercussions of raising
a grievance.
 Don't become angry, belligerent, or hostile during grievance handling procedure.
 Do listen for the main point of arguments and any possible avenue to resolve the
grievance.
 Listen and respond sensitively to any distress exhibited by the employees.
 Eliminating the source of the irritation or discomfort being complained of.
 Reassure them that the managers will be acting impartially and that your hope is to
resolve the matter if possible.
 Don't "horse trade" or swap one grievance for another (where the union wins one,
management wins one). Each case should be decided on its merits.
 Avoid usage of verbosisms like "it will be taken care of."
 Ensure effective, sensitive and confidential communication between all involved.
 Take all possible steps to ensure that no victimization occurs as a result of the grievance
being raised.
 The investigator or decision maker acts impartially, which means they must exclude
themselves if there is any bias or conflict of interest.
 All parties are heard and those who have had complaints made against others are given an
opportunity to respond.
 Try to look upon the problem on different angles for appropriate understanding.
 Ensuring that there is proper investigation of the facts and figures related the problem
under concern.
 Consider all relevant information in the investigation process.
 Ask the staff member their preferred resolution option, although it is important to make it
clear that this may not be a possible outcome.
 Be aware of the limits of authority of the person who involved in the grievance handling
procedures.
 If the manager feels that he/she is not the appropriate person (senior manager) to deal
with the issue refer the complainant to the appropriate person as soon as possible.
 Try to get a better idea of whether the alleged discrimination or harassment happened or
didn't happen.
 Tell them exactly what they are supposed to have done, to whom and explain, why this
may be seen as discrimination/harassment or as inappropriate.
 Grievances are preferably to be settled informally at the level of the employee's
immediate supervisor.
 Try the level best to involve team members to resolve the crisis at unit level itself.
 Avoid as far as possible the union involvement in conflict resolution situation process.
 Follow documentation the procedures, of all necessary steps taken to resolve the
problem/complaint.