Part A

Organisation study

Chapter 1

Industry Profile

Chapter 1 Industry Profile

Peter Drucker refers to automobile industry as the Industry of Industries It creates employments for thousands and gives birth to many entrepreneurs. It satisfies one of the most basic needs of a human being mobility. It is a well known fact that Automobile industry is the cornerstone of some of the most influential economies in the world like USA and Japan. Indian Automobile industry is all set to play the same role in Indian Economy. Indian Automobile market today is one of the most modern, growing and vibrant automobile markets on the global map. India is second biggest two-wheeler market in the world. The four-wheeler market in India is also one of the fastest growing and most promising. No wonder, it has become a centre of attraction for most of the global automobile players. Automobile industry in India India is the 2nd largest two wheeler manufacturer in the world Second largest tractor manufacturer in the world 5th largest commercial manufacturer in the world 3rd largest car market in Asia, surpassing China in the process Automobile Industry in India is still in its infancy but growing rapidly. The opportunities in the automobile industry in India are attracting big names with the big purse and they are investing vigorously in infrastructure, design and development, and marketing. Automobile industry in India is today poised for the big leap. Current and Future Trends In Advertising in Indian Automobile Sector Automobile industry Contributes 17% of the total indirect taxes collected by the exchequer & is a driver of product and process technologies, and has become a

excellent manufacturing base for global players, because of its High machine tool capabilities, extremely capable component industry. With respect to the above, the researcher aims to study the current trends in advertising in Indian automobile sector and eventually to suggest ways and means of improving the effectiveness of advertising so that the automobile sector meets with the increasing demand and enhanced customer expectations in the Indian scenario.

Chapter 2

Company Profile

Chapter 2 Company Profile

2. a Background and Inception of the Company: General Motors was founded in 1908 in Flint, Michigan by William C. Durant. The company has its global headquarters in Detroit and employs approximately 209,000 people all over the world. It does business in 120 countries and, together with its strategic partners, produces cars and trucks in 31 countries. GMs highest sales are reported from China, followed by the United States, Brazil, the United Kingdom, Germany, Canada, and Russia. The company includes a total of 13 brands - Baojun, Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Isuzu, Jiefang, Opel, Vauxhall, and Wuling under its umbrella. Over the past few years, GM has suffered several setbacks, including the declaration of bankruptcy in June 2009 and an eventual split. A New GM emerged in 2009 with the support of the US government. The new company was listed on the New York Stock Exchange in November 2010. As part of the reorganization, the company phased out two of its brands - Pontiac and Goodwrench - and adopted a new brand identity. It also received loans from European governments in 2009, and reduced its stake in European operations. Operations in other parts of the world were not affected by the bankruptcy and continued as before. 2. b Nature of the Business carried: Automotive: The company offers a global vehicle portfolio of cars, crossovers and trucks. They are committed to leadership in vehicle design, quality,reliability, telematics and infotainment and safety, as well as to developing key energy efficiency, energy diversity and advanced propulsion technologies, including electric vehicles with range extending capabilities such as the Chevrolet Volt. Business is diversified

across products and geographic markets. They meet the local sales and service needs of our retail and fleet customers with a global network of independent dealers. Of total 2011 vehicle sales volume, 72.3% was generated outside the U.S., including 43.4% from emerging markets, such as Brazil, Russia, India and China (collectively BRIC), which have recently experienced the industrys highest volume growth. The companys automotive business is organized into four geographically-based segments: GMNA, with sales, manufacturing and distribution operations in the U.S., Canada and Mexico and sales and distribution operations in Central America and the Caribbean, represented 32.4% of our vehicle sales volume in 2011 and the largest market share in this market at 18.4%. GME has sales, manufacturing and distribution operations across Western and Central Europe. GMEs vehicle sales volume, which in addition to Western and Central Europe, includes Eastern Europe (including Russia and the other members of the Commonwealth of Independent States among others) represented 19.2% of their vehicle sales volume in 2011 GMIO has sales, manufacturing and distribution operations in Asia-Pacific, Eastern Europe (including Russia and the other members of the Commonwealth of Independent States among others), Africa and the Middle East. GMIOs vehicle sales volume, which includes Asia-Pacific, Africa and the Middle East is their largest segment by vehicle sales volume. GMSA, with sales, manufacturing and distribution operations in Brazil, Argentina, Colombia, Ecuador and Venezuela as wellas sales and distribution operations in Bolivia, Chile, Paraguay, Peru and Uruguay represented 11.8% of our vehicle salesvolume in 2011. In 2011 we had the largest market share for this market at 18.8% and the number three market share in Brazil.

Automotive Financing GM Financial

GM Financial specializes in purchasing retail automobile installment sales contracts originated by GM and non-GM franchised and select independent dealers in connection with the sale of used and new automobiles. GM Financial also offers lease products through GM dealerships in connection with the sale of used and new automobiles that target customers with sub-prime and prime credit bureau scores. GM Financial primarily generates revenue and cash flows through the purchase, retention, subsequent securitization and servicing of finance receivables. To fund the acquisition of receivables prior to securitization, GM Financial uses available cash and borrowings under its credit facilities. GM Financial earns finance charge income on finance receivables and pays interest expense on borrowings under its credit facilities. GM Financial periodically transfers receivables to securitization trusts that issue asset-backed securities to investors. The securitization trusts are special purpose entities (SPEs) that are also variable interest entities that meet the requirements to be consolidated in the financial statements. 2. c Vision Vision is to design, build and sell the worlds best vehicles. The primary elements of their strategy to achieve this vision are to: Deliver a product portfolio of the worlds best vehicles, allowing us to maximize sales under any market conditions. Sell our vehicles globally by targeting developed markets, which are projected to have increases in vehicle demand as the global economy recovers, and further strengthening our position in high growth emerging markets; Improve revenue realization and maintain a competitive cost structure to allow us to remain profitable at lower industry volumes and across the lifecycle of our product portfolio; and Maintain a strong balance sheet by reducing financial leverage given the high operating leverage of our business model.

Quality Policy: GM Records aims to maintain the companys position as a leading manufacturer. Its competitive advantage stems from use of the most up-to-date technological solutions and the expertise of its employees. Customer satisfaction is the overriding value to which all of the companys activity is aimed. 2. d Product profile: Chevrolet is one of India's leading automobile manufacturers and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. BEAT: The Chevrolet Beat combines expressive exterior design, a well-equipped interior and many smart features. Compact on the outside, the Beat has a spacious cabin that seats up to 5 adults. With its high build-quality and clever design details, the Beat is amongst the safest, most comfortable and practical cars in its class. CRUZE The bevelled hood of this mean machine hosts the most powerful and refined engine in its class. An all new, powerful 2.0 litre VCDi engine unleashes 166 PS of undulated power on the tarmac. Add to this beautiful styling both inside and out, superb driving characteristics and a perfect blend between fuel efficiency and performance, and you have the most desirable sedan in India the Chevrolet Cruze.

SPARK : The Chevrolet Spark combines expressive exterior design, a well-equipped interior and many smart features. Compact on the outside, the Spark has a spacious cabin that seats up to 5 adults. With its high build-quality and clever design details, the Spark is among the safest, most comfortable and practical car in its class. CAPTIVA : The Chevrolet Captiva is a purposeful SUV with the looks you desire, the power you deserve and the versatility you demand. Soft from the inside and tough on the outside, the Captivas aggressive and chiselled frame is accompanied by a luxurious fully-loaded interior, making it a suave all-rounder. TAVERA : The all-new Chevrolet Tavera Neo 3 is a showstopper and the road is its ramp. Engineered to gobble up the road and competition with equal elan and sophistication, this powerful MUV is one smooth operator. Hardly surprising then, that the roads will feel like butter. Staying true to Chevrolets design mantra of strength and style, the car has a sleek, suave metal exterior that will turn heads, win hearts and pump up your adrenaline.

2. e Area of Operation : General Motors India has its headquarters in Gurgaon, Haryana, and has two assembly plants (in Talagaon, Maharashtra and Halol, Gujarat) with a combined production capacity of 385,000 vehicles per year. It also has a technical centre in Bangalore which focuses on research and development, vehicle engineering activities, purchasing and financial support services, and vehicle engine and transmission design.

2. f Ownership Pattern: In 1994, General Motors India Private Limited (GMIPL) was formed as a 50-50 joint venture between GM and Hindustan Motors. GMIPL started out producing and selling Opel vehicles, and was bought over completely by GM in 1999. Till 2003, the company continued to produce Opel cars at its Halol facility. Later, it switched to producing Chevrolet vehicles at the same plant. Joint Venture with SAIC In December 2009, Chinese auto company Shanghai Automotive Industry Corporation (SAIC) bought a 50 percent stake in GM India. The new joint venture company is called General Motors SAIC Investment Limited (GMSIL) and is the 5th largest automobile manufacturing company in the country after Maruti Suzuki, Hyundai, Tata Motors and Mahindra. 2. g Competitor Information:

Chrysler Group LLC (privately held), Ford Motor Co & Toyota Motor Corporation are the major direct competitors of General Motors. And other competitors like Volkswagen, Nissan Motor, Honda Motors, Fiat, Renault and so on.
General Motors 44.68B 213,000 0.02 150.94B 0.13 12.50B 0.05 4.44B 2.66 10.71 Chrysler N/A 55,6871 N/A 54.98B1 N/A N/A N/A 183.00M1 N/A N/A Ford 49.98B 171,000 N/A 7.97B 1.00 13.90B 1.00 5.66B 1.42 9.21 Toyota 335.46B 325,905 0.09 278.66B 0.12 21.58B 0.03 9.77B 3.09 34.33 Industry 20.16B 58.62k 0.13 47.59B 0.19 5.65B 0.05 N/A 2.79 14.04

Market Cap: Employees: Qtrly Rev Growth (yoy): Revenue (ttm): Gross Margin (ttm): EBITDA (ttm): Operating Margin (ttm): Net Income (ttm): EPS (ttm): P/E (ttm):

2. h Infrastructural Facilities: About 90% of GMs plants encompassing 220 million square feet of floor space are running on new PFCN networks. PFCN is a tremendous engineering accomplishment for GM. Standardizing plant networks has reduced costs, improved uptime and provided a flexible platform for future applications such as collaborative engineering. 2. I Achievements and Awards: 1962: GMs market share of the US market was 51%. 1965: GM earned 2 billion dollars in the year 1968: A fifty story GM building opened in New York. 1971: Unleaded gasoline became the main fuel of all GM cars. 1974: GM introduced air bags for cars. 1975: GM started fitting catalytic converters in cars. 1979: GM started manufacturing cars in Spain and Austria. 1982: GM bought a 10% share of Suzuki Motor Corporation

1985: The Chevrolet Nova was manufactured in Fremont in California by GM and Toyota. 1987: Cadillac and Pininfarina started manufacturing the Allante two-seater convertible. 1989: GM bought a 50% share in Saab. 1990: Robert Stempel replaced Roger Smith as the Chairman and CEO. Third and fourth quarter losses for GM were 3.7 billion dollars. 1991: GMs sales fell low and its stock price dropped to 27 dollars while its US market share was 35%. 1992: John Smale, a P&G employee replaced Stempel as the Chairman of GM. GM lost 23.5 billion dollars 1995: Agreeing to corporate on car and powertain manufacturing, GM and Shanghai Automotive Industry joined hands. 1996: GMs headquarters shifted to a center on the Detroit River. 1998: Rick Wagoner became GMs president and chief operation officer. GMs US share was below 30 per cent. Chevrolets Geo brand was discarded. 2000: Rick Wagoner became CEO of GM. 2001: Bob Lutz became the vice chairman of GMs global product development. GM launched a Keep America Rolling sales campaign. 2005: GM had to pay 2 billion dollars to Fiat to cancel its agreement. Chevrolet started exporting cars to China. 2007: The company was ranked the fifth largest by Fortune Global 500. 2008: GMs share of the US market is 20.6 per cent. It employs 250,000 people.

General Motorss Spark was awarded the Most Dependable Compact Car and Best Compact Car in Initial Quality 2010 by JD Power and Associates India study. GM was one of the top automakers at the NDTV Profit Car and Bike India awards 2011 as it won the Best Communication and PR Campaign for the Beat and the Car Manufacturer of the Year Award. These are really prominent awards in India. GM aims to gain more market share in India, the second largest automobile market in the world. The best vehicles won awards at the sixth NDTV Profit Car and Bike Awards which had commenced in 2006. The award criteria consisted of the following: segment position, environment factor, acceptability, market value, efficiency, and consumer value and segment position. General Motors also won the Automobile Manufacturer of the Year 2010 award by the Golden Steering Wheel, the Indian edition of Europes automobile awards. This award was awarded by CarWale, and recognized General Motors manufacturing capabilities in India. GMs Halol plant was felicitated with the Gujarat State Safety Award 2010. GM India won the third prize for energy conservation at the National Energy Conservation Award 2010 and was awarded by Sushilkumar Shinde. The award was received by P Balendran, Vice-President, General Motors India. GM also won the National Level Quality Circle Awards in Halol, the National Level Quality Circle Excellence Award, Gujarat Safety Award, Energy Conservation Award, TNS Automotive Award, and the National Safety Award. In 2007, the company won the Overdrive Car Maker of the Year Award. It also won the NDTV Profit Car India Awards 2007 Carmaker of the Year Award. 2. j Future Growth and Prospects GM plans to increase its US market share by one percentage point. They also want to implement new marketing techniques. They want to remake their corporate image as a leader and change focus of their advertising to aspiration. They plan to address the customers, dealers, salespeople, employees and retirees.

GM will invest 32 million dollars in its Spring Hill plant and 33 million dollars in its Tonawanda Power train plant near Buffalo, New York which will help to create 163 jobs in the United States. The Spring Hill plant will have direct injection of its four cylinder engineers. The company plans to launch the Malibu in 2012 and sell it to 100 countries. This investment is only a small portion of the 2 billion investments in its US manufacturing plants that will create 4,000 jobs in eight states. GM will hold open houses in its 54 plants in the United States. Visitors will wear safety goggles and watch the robots and workers work in the plants. These open houses will have food and vendor tents

Chapter 3

McKinsey 7S Framework

Chapter 3

McKINSEY SEVEN-S MODEL:

The 7-S model is better known as Mc Kinsey 7-S. This is because the two persons who developed this model, Tom Peters and Robert Waterman, have been consultants at Mc Kinsey & Co, at that time. They published their 7-S model in their article Structure Is Not Organisation (1980) and in their books, The Art of Japanese Management (1981) and In Search of Excellence (1982). The model starts on the premise that an organization is not just structure, but consists of seven elements.
STRUCTURE

STRATEGY SUPER ORDINATE GOALS

SYSTEMS

SKILLS

STYLE

STAFF

The Mc Kinsey 7-S model is a widely discussed framework for viewing the interrelationship of strategy formulation and implementation. It helps to focus managers attention on the importance of linking the chosen strategy to a variety of activities that can affect the implementation of that strategy. Originally developed as a way of thinking more broadly about the problem of organizing effectively, the 7-S framework provides a tool for judging the do ability of strategies. According to one of its developers, Robert H. Waterman Jr, the framework suggests that it is not enough to think about strategy implementation as a matter only of strategy and structure, as has been the traditional view. The conventional wisdom used to be that if you first get right, the right organization follows. And when most people in western cultures think about organization, they think structure. We find in practice, however, that these notions are too limiting. To think comprehensively about a new strategy and the problem with carrying in out, a manager must think of his company as a unique culture and must think about the ability of the company to get anything really fundamental (i.e., not tactical) accomplished as a matter of moving the whole culture.

STRUCTURE:

The organizational structure is designed to support business goals, and is flexible while at the same time ensuring effective control and supervision and consistency in standards across the business groups.

The structure historically had a Vertical organizational structure. The rigid hierarchy may have contributed to some of the problems they faced as globalization increased competition. This created many redundancies in management, and this reflected in the products. For all intents and purposes these vans are identical. The higher levels of management decided what was required for all subordinate levels, and that was a one way street. The CEOs, CFOs, and top executives made all decisions for middle management down to the individual dealerships. Executives even decided what customers desired, with no feedback from customers, dealerships, or operational level managers.

STAFF:
The success story is incomplete without its expert team of experienced staff. It takes immense care while appointing its working personnel. Entire team is highly experienced in the automobile industry and is constantly updated with its training sessions. At its Showroom, the sales men are provided with all the details about the Chevrolet cars so that they can assist clients in making a right choice about the car. The team shares a passion for customers and a competitive spirit that drives us to excellence. Culture -- one which represents diversity, inclusion, mutual respect, responsibility and understanding -- welcomes fresh perspectives and varied experiences. About 202,000 employees work in 158 facilities touching six continents, they speak more than 50 languages and touch 23 time zones. From designing and engineering state-of-the-art plants and developing new vehicles and technologies to creating new marketing programs, our team members are valued for their unique contributions. Human Resources Team: Operation involved with activities like, Recruitment, Induction, Training and Development, Compensation and Benefits, Employee relations, etc. Administration too comes as an activity under the team. There are respective regional HR teams operating in all regions as a one-point contact for any HR issues in the region. Finance: Team is another critical department centralized at controlling finance, handling payroll calculation and crediting salaries, maintaining complete books of accounts and internal auditing. Marketing:

Team centralized conceptualizes various activities towards increasing our visibility through Communications, advertising, promotions, public relations and other events. They co-ordinate press releases, publications, etc. Information Technology: This support service in the company ensures that systems and software application in the organization are well maintained. Recruitment process: The recruitment takes place through two ways, one is through campus recruitment and the other is through the interviews by call or walk in. There is a lot of scope for those individuals who are ready to think out of the box, have a passion for meeting people and developing long-term relationships. Such individuals will feel contented, as they will make a big difference. Skills: The company puts a lot of effort to ensure the skill of employees. It implements various programs to improve the skills of its employees. Analytical skills, research activities, learning & development, team work, relationship management and communication skills are the top skills required to succeed here. To have a well rounded development of employees, its calendar comprises and includes trainings like negotiation skills, problem solving and decision making skills. The company frequently undertakes as a part of CSR initiatives the significant steps in the areas of road safety, skill development, community development and employee engagement program.

Style:

Style refers to the employees shared and common way of thinking and let the individuals pursue creative and innovative approaches to their work. It consists of two components. Organization culture. Management style. The companys organization culture is based on some dominant values and beliefs, and norms. It encourages the individuals to do their work in creative and innovative approaches and even with freeness and in comfort. The firm has got a visionary participative management style is instead of compelling it creates way to encourage and it is the basic responsibility of managers and to bring out the talents in research and to motivate to stay in organization.

Shared values:
Chevrolet with capability and commitment to appear as a learning organization. There are three processes that are critical to develop, reinforce and cascade a positive, transparent, supportive and high performing work culture, systems and practices across the company. The company has shared values in five areas like customer obsession to make sure what the customer gets, fast flexible and first mover in production and selling of cars, innovation and creativity in introducing new technologies and new models in rapid pace, networking and partnership with other companies and openness and exploring is the chance to explore and experiment.

Strategy:
To design, build and sell the worlds best vehicles. This powers the development of world-class products that are winning in the marketplace, and is helping to transform its business and fortify its balance sheet. This business model also creates a self-sustaining cycle of reinvestment that drives continuous improvement in vehicle design, manufacturing discipline, brand

strength, competitive pricing and margins. Drive and vision of its business model to the market every day to yield positive results for our investors, employees and customers worldwide.

System:
Chevrolet has been driven by bold imagination and focused, disciplined action to realize the power of those ideas. It is part of DNA to realize technology's potential for positive change and to share that vision with the world. Its engineers, designers, and planners live years in the future, imagining a future where cars carrying loved ones never crash; where empty cars can be sent to pick up friends; and where cars dont break down, leaving stranded. The company is looking into the future, to a time when vehicles will no longer pollute; when they use only fuels made from renewable sources or run on electricity its building technologies into vehicles so they never get trapped in a traffic jam, can anticipate and avoid collisions, and that can safely take over the driving for sleepy, busy or distracted drivers.

Chapter 4

SWOT Analysis

Chapter 4

SWOT Analysis
Strengths 1. Large Market Share Although GM's market share in the US has dropped it is still very much competitive at 26 percent. They also have an increasing share in the Chinese market. With the right decisions there is no reason for GM to not become the automotive leader it once was. 2. Global Experience As explained above even with GM's recent decline they still have the market share and the experience to bounce back. They have been a worldwide company for nearly a century now and have established themselves as the global leader for most of them. If you recall I mentioned above that a current opportunity for GM is to expand globally and as we can see they already have the experience to do so. It is just a matter of the correct planning and proper implementation of those plans that will decided whether or not GM's goals are achieved. 3. Variety of Brand Names GM as I mentioned has been the automotive leader for the majority of the last century. A large reason for that is the wide variety of quality brand names that appeal to all target markets. The current GM brands include: Chevrolet, GMC, Cadillac, Buick, Pontiac, Saturn, Hummer, Saab, Daewoo, Opel, and Holden. 4. GMAC Customer Financing Program Since its establishment in 1919 it has proven to be GM's most reliable source of revenue.

5. OnStar Satellite Technology

Developed in 1996 OnStar currently has over 3 million subscribers and is standard on all GM vehicles. This technology allows the vehicles to be tracked in the event of an emergency or theft. It also allows the driver and or passengers the ability to communicate with OnStar personnel at the click of a button. Weaknesses 1. Behind on Alternative Energy Movement This is GM's biggest weakness. The alternative energy/hybrid trend has begun to take place in the automotive industry and GM has been one step behind the competition in terms of alternative energy vehicles. This has led to many problems including loss of market share and a decrease in company profit. In order for any automotive company to be successful from this point forward they must be Hybrid friendly and fuel efficient. 2. Poor Organizational Structure As we can see in exhibit 1 of the case GM's organizational structure seems to be too vertically integrated. This causes a lack of communication between employees from top to bottom and may have played a part in GM falling behind on the alternative energy movement. 3. Stagnant Profitability Looking at GM's profit we see that they are certainly struggling with respect to the size of their company. Their profit margin was about 1.5% and the ROE has dramatically decreased over the recent years dropping to 10% in 2004. This is a situation that shareholders will not be pleased with. 4. Overly Dependent on US market GM has become too dependent on the US market and must take advantage of the opportunity to expand globally. The competition is becoming too strong to focus on just one country. 5. Overly Dependent on GMAC Financing

GM has become too dependent on its financing program. Granted it is a great strength for GM, however they once again cannot rely solely on financing in order to turn profit, especially if they want to compete with Honda and Toyota who are rapidly growing. 6. Poor Credit Status GM's credit status has like everything else has been steadily declining. Their current ratio is just barely above 1 and their acid test is even lower. Opportunities 1. Alternative Energy Movement It is obvious that GM was behind its competition with regards to the research and development of hybrid vehicles. However hybrid technology is still very much new giving GM the opportunity. 2. Continuing to Expand Globally. Recently GM saw an increase in the Chinese automotive market, which proves their needs to be more emphasis put on foreign markets. If GM can infiltrate these markets and successfully grow along with their continuing focus on the US market they will be headed in a positive direction. 3. Low Interest Rates With the right marketing strategy the low interest rates have the potential to generate an immediate increase in sales. 4. Develop New Vehicle Styles and Models This is an opportunity that will never be satisfied, meaning that GM should always be attempting to develop the automotive world's most popular vehicles, and as we know, what is in today will be out tomorrow. Threats 1. Rising Fuel Prices

With GM being a large producer in both trucks and SUV's, sales have drastically decreased due to the lack of fuel efficiency. The rise in fuel prices has played a significant role in creating the opportunity for development of both hybrid and more fuel efficient vehicles. As you will find with most threats, an equal opportunity will usually emerge as is the case here with GM's opportunity mentioned above. 2. Growth of Competitors GM no longer has the luxury of being the known leader in the automotive industry and faces the reality that they are in serious trouble. As I mentioned earlier Toyota took the first step in the direction of hybrid technology and has since drastically growing. 3. Pension Payouts. Part of this threat is their own doing and the other is simply unavoidable. GM is responsible for providing generous pension benefits to its employees, which at the time seemed like a great idea, however they are now experiencing problems as more and more people begin to collect. 4. Increased Health Care Costs GM, like many large companies with quality employee health care benefits, is experiencing a large financial hit that only gets worse as time continues. 5. Rising Supply Costs, i.e. Steel Once again this threat affects the entire automotive industry and forces each company to cut manufacturing and production costs as much as possible, without taking away from the quality of the product

Chapter 5

Analysis of Financial Statements

Chapter 5

Analysis of Financial Statements

Financial Statement Analysis:
The company has been awarded the highest financial credit rating AAA (long term) and A1 (short term) on its bank facilities by CRISIL. Net Profit ratio: Particulars Earnings after tax Sales Net Profit ratio 2011 9287 150276 0.0618 Rs. In Million 2010 6503 135592 0.0479

The net profit ratio indicates the percentage of net profit growth against the sales of the company. Here along with the raise in the sales leading to the increase in the net profit compared to the previous year of 2011. Return on Assets: Rs. In Million Particulars 2011 2010 Earnings after tax 9287 6503 Total Assets 144603 138938 Return on Assets 0.0645 0.0468

The ratio indicates the efficiency of the investment in the assets to gain more and more earnings. In 2011 though the investment in assets is more, due to the rise in earnings there is increase in the return on assets, the company is in need to concentrate in its activities to improve sales.

Debt Equity ratio:

Rs. In Million

Particulars 2011 2010 Long term Debt 105612 101739 Shareholders equity 38991 37159 Debt Equity ratio 2.7086 2.7379 It is measure of the companys financial leverage. The company has implemented debt: equity as 2.7:1 in 2011 and 2.73: 1 in the year 2010. Return on Equity: Particulars Earnings after tax Shareholders equity Return on Equity 2011 9287 38991 0.2381 Rs. In Million 2010 6503 37159 0.1750

Return on equity reveals how much profit the company earned in comparison to the total amount of shareholders investment. Due to the increased competitive sales in its earnings lead to the rise in the ROE.

Part B

1. A. General Introduction:

In Indian automobile industry car segments have played a very crucial and significant role due to its increasing economy, efficiency and effectiveness. Due to invasion of foreign cars into Indian markets, the pace of competition has hiked. This has brought into market, number of Brands and their variants competing to with each other. All these factors have resulted in flux in the minds of the customers as to which brand to go for. In other words, Brand-switching is gaining the momentum. Today, the primary capital of much business is their brands. For decades, the value of the company was measured in terms of its real estate, then tangible assets, plants and equipments. However, it has recently been recognized that a companys real value lies outside the business itself, in the minds of potential buyers. For the potential customer, a brand is a landmark. Like money, it facilitates trade. Faced with a multitude of silent or hard to-read products, whose performance cannot be assessed at first glance, customer are confused. Brand and prices make products easier to read, removing uncertainty. A product price measures its monetary value, its brand identifies the products and reveals the facts of its differences functional value ,pleasure value and symbolic value as a reflection as a buyers self image. One word, One Symbol Summarizes an idea, a sentence and a long list of attributes , values and principles infused into the product or service. A brand encapsulates identity, origin and difference. It evokes this information concentrate in a word or a sign. This is why brands are vital for business exchange when faced with, say, hundreds of personal computers, a buyer can use brands to structure this selection, to segment it, helping him to decide what he wants, looking towards the products whose brand indicate that they will satisfy his expectations, needs, or wishes. In markets in which technology and fashion mean that the choice is constantly evolving, brands provide havens of stability, describing an identity and promising constant features and direction.

Brands are the real capital of business, yet brand management is still in its infancy. At present, the tendency is to manage products that happen to have a name. Management is still living in the age of the products, but brand management involves other, specific approaches and principles. These are the focus of this presentation (i) Statement of the Problem:

To position the brand in the minds of the customers the company or dealer should keep the track of this shift in preferences. The marketing strategies can be designed in accordance with this change. It will be helpful for the managers to make decisions. Hence the main purpose of this study is to find the Brand preference and the Buying behaviour of cars at Tumkur city. (ii) Objectives of the Study: 1. To find the impact of Brand preference amongst cars. 2. To understand the Buying behaviour of customers. 3. To know the facilities/services expected by the customers from the dealer. 4. To know the means of finance preferred by the customers 5. To know the significant attributes preferred by the customers in a car. (iii) Scope of the Study:

1. To know the most preferred brand by the customers. 2. To know the features considered by the customers while purchasing a car.

3. The study is restricted up to the Tumkur city. 4. The study is considers the opinion of only 50 respondents. (iv) Methodology: The information necessary for this survey is collected by tapping primary and secondary data.

Primary data: The primary data is collected through the personal interaction with the customers and by filling up the questionnaires. Secondary data: The secondary data for the study is collected thorough the company websites, annual reports, brochures, bulletins, advertisements and so on. The analysis of the data is made through the questionnaire and the attitude scales. Sampling allows us to concentrate our attention upon relatively small number of people and hence devote more energy to ensure that the information collected from them accurate. Population: People from the city of Tumkur Sample frame: People who owns car and prospect buyers. Sampling size: 50 unit Duration: 60 days Data are useful only after analysis. Data analysis involves Converting a series recorded observations into descriptive statements and information about relationship. Hence concerned to this project method of analysis the data will be graphical method, Simple Percentage method. (v) Limitations of the Study: 1. The study is limited the brand preference of cars. 2. The study confines to Tumkur city population. 3. The respondents are restricted to 100. 4. The analysis is to study the buying behaviour of the local customers.