Chapter 1

Introduction about the Internship

Internship is an integral platform for anyone to gain experience and knowledge in an

actual workplace. It is on the job training for many professional jobs. It is more often
taken up by college and university students during their undergraduate or master degree
in their free time to supplement their formal education and expose them to the world of
work. It plays a vital role in bridging the gap between the theories learnt and the practical
issue management aspects in the organization to gain insights and exposure to the
industry. Internship leads to individual development through coursework.

It involves close direction or monitoring by a specialized expert. An internship may be

compensated or non-compensated or sometime to some extent paid, it may be part time
or full time. It usually last for weeks to two months and also depends on the organization
too. An increasing presence of multinational companies, rapid economic growth,
globalization, urbanization has all influenced the role and desirability of internship.
Internship helps to learn, watch, gain ability to put new things into practice and build
confidence with graduates of a high caliber who are ready to get ahead in the world from
day one. This provides a big picture as to what are the organizations positive and
negative. From this we will come to know the organizations key strengths, try to
minimize the weakness, grab opportunities and work on threats.

Advantages of pursuing internship are:

 Real work experience

 Personal development
 Networking
 Application of theoretical knowledge.

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 Objectives of internship are:
 Increases proficiency in specific business disciplines such as human resources
management, operations management, marketing, accounting, statistics, economics,
finance etc.
 Applying business concepts and theories to real world decision making.
 To know vision, mission, policies, procedures and various departments of the
organization.
 To gain knowledge of how to assess, plan, organize, co-ordinate, implement and
evaluate the business activities.

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 1.2 Industry Profile Diary Industry

HISTORY:

It was first started as a SME with primary focus on ghee. It has now progressed into a
fully grown multi product company. Farm industry animals have been organizing for a
many number of years. At the beginning they were wandering to get a piece of
subsistence to develop then assembling moved about the country. In early days handling
through co- operative milk unions in rail transport of milk from Anand to Bombay since
1945. For engaging and pasteurization animals were a limitless abnormal bit of the
agreeable coalition between the animals and the cowboys.

Subsequently, individuals in agrarian social order drained for diary creatures that they
outlet for residential and neighborhood purpose. The creatures may suit numerous
reasons(such as, as a draft creatures for pulling a furrow as a youth, and at the end of its
beneficial life as meat). By developing industrialization and urbanization, the supply of
drain turned into a business industry, with dominant types of resort being created for
diary, especially hamburger or draft creatures. Initially, more individuals were utilized as
milkers, in spite of it rollover to motorization with machines meant to do the draining.

Truly, the draining and handling occurred back to back in space and time in dairy
cultivate. Individuals drained the creatures by hand; on plantation where just minimal
numbers are kept, hand-draining is also now in practice. Hand-draining is classy by
getting a handle on the nipples (meaningfully tit or tits) in the hand and communicating
milk either by contracting the fingers logically from the under end to the tip, or by
tightening the nipple amongst thumb and pointer, at that point moving the hand
downward from under towards the end of the nipple. The activity of the hand or fingers is
intended to hide at the udder (under) end and, by the kinetisism of the fingers, close the
channel logically to the tip to express the caught drain. Dairy is where action of drain and

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its consuming items is done and modernization intimate to the rational awareness for
viable purposes.

Dairy modernization has been characterized as that division of dairy science, which
manages handling of drain and assembling of consume items on a modern scale. In
created dairying nations as the are the USA, the year 1850 is epically realized as the
rupture line amongst homestead(estate) and manufacturing plant scale generation.

All other variables added to the mutation in these nations, for example particularly
grouping of society in urban areas where occupation was ample, fast industrialization,
enhancement of movement offices, advancement of machines and so forth. Whereas the
country territories were recognized for drain engenderment, the urban concentration were
separated for the area of drain preparing plants and item producing production lines.

These plants and manufacturing plants were quickly extended and modernized with
improved hardware and gear to secure the sundry favorable prosperity of voluminous
scale engenderment. Roughly all the drain in the USA up to 1900 was circulated as
crude(nature) drain. When purification was presents, it grew quickly. Mechanical
freezing benefited in the quick advancement of the production line arrangement of market
circulation. Drain must be featured as entire, crisp, clear opaque emission acquired by the
ultimate draining of more healthy drain creatures. An effective utilization of drain can
review consuming less calories inadequacy for the vast majority lively, healthy bodies. It
is delicious and mouth-watering nourishment and enhanced being healthy.

India was ‘The oyster’ of the universal diary industry. It pitches openings within wealth
to agents ecumenical, who wish to benefit by one of the worlds most sizably voluminous
and most tactical creating markets for deplete and deplete things. The Indian dairy
industry is rapidly creating, struggling to keep pace with the running advancement far and
wide. The headway of the Indian economy tempts to MNC’s and discursive budgetary
homogeneous.

Indian dairy division sacrifices the numerous monster shares in agrarian gross
neighborhood things. Genuinely around 80,000 town dairy co-operatives the country

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over. The co-specialist social requests are joined into 210 locales deplete engenderment,
India is the fundamental engenderer of deplete on the planet took after by USA.

However, deplete engenderment has created at an expedient pace in the midst of the most
recent three decades (operation flood), exhaust yield per creature is low.

The development of the Indian drain industry has been driven by the endeavors of
National Dairy Development Board (NAAD) “Activity flood” under the past chairman of
the board Dr.Kurien.

It was moved in 1970; operation flood has aroused the modernization of India’s dairy
division and prompted an amazing system of obtaining dealing with and transport of
drain by the co-master piece.

Per capita receptiveness of exhaust has expanded out of 132gm for reliably in1950 to
more than 270gm for consistently in 2010. The primary part of operation flood was to
manage dairy cooperatives in the drain shed districts of the town and to interface them to
the fundamental markets for deplete.

The undertaking grasped by NDDB have not quite provoked revamp correction in
methodologies for dealing with and progression of an eager promoting framework,
however have as well arouse the advancement of dairying as a vital beginning of work
and pay age in the common zones. It has moreover incited upgrade in yields, longer
location periods, shorter calving breaks etc using present day raising systems.
Establishment of deplete assembling centers and chilling concentrations has enhanced
presence of unrefined deplete and engaged minimization of wastage in the light of
crumbling of deplete.

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 FIGURE 1.1 Ghee Manufacturing Unit

Indian spices Industry

Spice industry has been providing marvelous growth in domestic and international sector
which in turn change in the lifestyle patterns of the consumers all over the world. The
switch in the consumption course toward natural products has also contributed to the
increased global demand of spices and edible weed. These industries have applications in
pharmaceutical, medicine, beverages, food processing, personal hygiene products etc.

Especially developing country like India is well known for spices from ancient days. In
an Asian continent major producers of high quality of spices and also remarkable
contributors to global spice trade.

The culinary herb market is widening through the production areas are widely distributed.
India is one of the dominant producers and suppliers of raw herbs to USA and EU. India
has an enormous labor resources with sound knowledge of methods and processes
involved in production of herbs and spices.

Nowadays, with updated technology in production process of spices have been taken ton
new forms. Specifically, essential oils, oleoresins which also prove to be thriving bracket
in spices portfolio. Apart from spices, India also supplies blended spices, ready to eat

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sweets, ready to cook spices mixes to foreign markets. This is the thumbnail of India’s
spices industry and trends. This continuous study on individual spices, their grading
system, cleaning, drying process in the forthcoming days. Significant players the dairy
business was affected by the co-agent segment. Handling limit is in the co- agent segment
is around 60%.The dominant rival was NDDB in the market by its essence from past
years, Amul. There after nestle, mother diary and Britannia are in the pace to tap the
making there share of market. Smith cline beech a consumer health care, nestle India and
Heinz India are among the outstanding MNC’s that affect drain things advertise.
Significant players merge with Indian diary specialists, and other state administrators.

The drain and dairy things division was introduced up to level of collecting chains for
improvement. Mother dairy, have exclusive right of NDDB wants to make trigger in the
market of drain and fatigue things under Mother dairy pulse through retail outlets the
nation over in addition to its specific 300outlets with master plan with intense focus.

India was the universe of most lifted drain engenderer and all set to twist up the worlds
most remarkable numerous assistance mechanical office. In pleasure, Indian diary zone is
at the present time year to desirable NRI’s and migratory analysts to design this nation a
place for the mammoth meander meanders. It connects to specialists, scientists, business
visionaries or the simply challenging– Indian dairy portion has something for everybody.

In varied countries dairy ventures have endeavored to accomplish cut down pay buyers
by combo of compositional quality or packaging and series scheme or mixing milk in
vegetable fixings in condition supports for sensitive helpless social affairs.

Such as, assessing of things royal in spread exaggerated packing above the cost level to
sanction of high protein deplete things at barely a shrink cost has been exhaustive
practiced in making countries. This plan ought to be gotten Indian diary situation.

Indian diary industries were of now advanced with new technologies. In the future no
endeavors are expected to make it satisfactory. Its accessibility in not hindrance either,

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due to the sufficient degree for increasing milk engenderment. It grabs the third
fundamental advertising.

How to create drain reasonable in support of the sizable voluminous larger part with
conservative buying strength? This is lifeblood of the test. One realistic device is to pack
drain in minute amounts of 250ml or less in polythene sachets. As of now, the glass bottle
for retailing milk has offered approach to single- utilize sachets which are more practical
another option is to present moment amounts of drain powder practical another option is
to present moment amounts of drain power in little sachets, satisfactory for some tea or
cappuccino.

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Emerging dairy markets

 Cooking assistance institutional markets. It was spreading at two times the rates of
purchaser advertise
 White washing advertises a tremendous expanding market for quality. Numerous
products are prepared by using milk such as ghee, butter, cheese etc. In India many
companies such as:
 GRB Dairy Foods Pvt.Ltd
 Amul Dairy Foods Pvt.Ltd
 MTR food Pvt. ltd
 KMF Ltd. (Nandini ghee)
 Milky Mist Dairy products.
 Aachi Food Pvt. Ltd

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 CHAPTER 2 ORGANISATION PROFILE

2.1 BACKGROUND

Sri Sadananda Foods Pvt. Ltd was established in the year 1984 by M S Nagarajgupta.
This company was initially named as SRI KRISHNA ENTERPRISES as it manufactured
pure cow ghee through traditional methods in the name of “Sri Krishna ghee” through the
dynamic efforts of two vibrant young brothers in 1991.

After 1991 with consistent growth the company had blossomed into Sri Sadanada Foods
Pvt Ltd. This company has started to meet the growing demand for its product through its
new factory at Chikkaballapur. Now it is a renowned brand ‘Sri Krishna ghee’.

In the year 2004, company diversified into some other products with an intention to
create net worth in the way of instant mixes, spice powders, spice blends, ready to eat
sweets.

The company markets its spice under brand name ‘Sri Krishna spice’. The company can
procure raw materials from best in class industries are further thoroughly checked in the
internal lab before merchandising.

FIGURE2.1: SADANANDA FOODS PVT LTD

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 Branches of Sri Sadananda Foods Pvt.Ltd

Corporate office Bangalore.

Address: #34 Kalpana Chawla roads, Sanjay Nagar (PO), Bengaluru-560094.

Chikkballapur Factory.

Address: 10, KIADB Industrial area, Kandavara village, Chikkabalapur- 563101

Email address: srikrishnaghee@yahoo.co.in

Web address: http://www.srikrishnaghee.com

The products of this company are highly demanded in the market for its freshness, rich
aroma and granular texture by using equipment and technology.

Core product ghee has carbohydrates and nourishing value, which is essential to the
body. Offering products according to the specifications of consumers with various
packaging quantities. It has nutritious attribute to food, for cooking and frying as
integrating these will give delicious sweets. Ghee is not only having nutritious value but
also helps in bring down stress, to lighten the growth in children, to battering digestion,
eyesight, improve memory power, hair, glow skin and make total body healthy.

Indian spices are well known for its authentic taste, hygienic quality and with integrated
health benefits. Excellent masala spices flavor suits Indian traditional recipes and chosen
by professional experts. It improves product quality by using advance technology-based
designs and checks quality at each phrase that is in acquiring, cleaning, processing,
packaging and distribution by the highly skilled professionals who have managed
experience and execution of more than 10 years, the aroma in spices in welcomed by

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people of Karnataka. Excellent masala desire to build pure and premium quality spices to
valued customers and consumers.

FIGURE 2.2: Ghee Pouch Packing Machine.

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 Figure 2.4: Ghee Boiler

Ghee Manufacturing Process:

The major raw material for manufacturing of ghee is cream and butter which is stored at -
10 degree Celsius it can be stored for 4 to 5 months. Butter which is stored at -10 degree
Celsius will be transferred to a boiler or butter churner here melting of the blend (butter
and cream) takes place. Later pumping of the same to the boiling section, here boiling
takes place at 135 degree Celsius and 75 to 80% of blend will settle down. Then settling
process takes places it takes around 3 hours to 4 hours and 95% of the blend settles here
and the remaining 5% residual having thickness of 5 to 2 microns. This residual will be
transferred to micron filter (14,000 revolutions per minute). Then final filter or the
settlement takes place for about 72 hours, this process is called granulation process where
the residual granules will settle and the processed ghee will be transferred to the tanker.
Output capacity is about three thousand (3,000) to four thousand (4,000) kgs.

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 FILLING AND PACKING:

Filling and packing are automated some are semi manual.

Different types of packing: pillow packets, jar filling, sachets (semi manual), smaller
packets, and bulk packing consisting of cases.

2.2 NATURE OF BUSINESS:

Basically it is a ghee and masala food manufacturing company. Frequently it concentrates

and analyses effectively in modifying the lifestyles of people and visualize consumer
needs in order to offer taste, nutrition, health and robustness through the product
offerings. The variant products are offered under the brand name of Sri Krishna. The
company is committed in manufacturing and exporting of dairy products, instant mixes,
spice blends, spices and ready to eat sweets.

Type of industry: Dairy and food industry Established in 1984 as Sri Krishna enterprises
later in 1991, as Sri Sadananda Foods Pvt.Ltd

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 2.3 VISION, MISSION, OBJECTIVES AND QUALITY POLICY VISION:

VISION:

To always endeavor to furnish clients with the great quality dairy cattle bolster. The best
guidelines of administration by our energetic and centered workforces utilizing cutting
edge innovation guaranteeing supported development and furthermore to wind up a No-1
Ghee maker in the Karnataka.

MISSION:

Our mission is farmer’s prosperity through consumer satisfaction. The main mission of
Plant, Chikkaballapur has followed by the decentralization activities. To create
Environment and build trained operational force.

OBJECTIVES:

 Food processing at minimum cost.

 To serve veterinary farmers economically and socially.
 To furnish the high quality.
 Profit maximization with lower cost as the objectives of the firm.

QUALITY POLICY:

Sri Sadananda foods consider quality as a premier factor for management team. The
kickoff starts from acquiring milk in the first stage and subsequently processed up to
ultimately stretch out to the consumers. The company enrolls in various co-operations by
contract to procure tones of new milk straightly from the farmers. This leads to access
value chain of the products and assure compactness in quality.

With possession of product have been certified with ISO 9001:2000 certificate. The
products also possess ISI impression and creates good image among consumers.

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Quality butter made from fresh cream having low acidity content stored in refrigerator at
temperature of 15 to 20-degree Fahrenheit must put up for few months, despite the
minimum determination chemical which alter the aroma of butter may take place.

Product Profile:

S.NO PRODUCTS S.NO PRODUCTS

1 Ghee 17 Cust.
Pinap
ple
2 Gara 18 Cust.
m Strawber
Mas ry
3 Chan 19 Biry
na ani
Masa Pula
la v
4 Tand 20 VegPul
uri av
Chick Masala
en

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 5 Kabab 21 Chh
Masala ole
Mas
6 Chat Masala 22 Jaljeera

7 Kasturi 23 Dry Ginger

Masala

8 Gobi Masala 24 Blac

k
Pep
9 Meat 25 Supe
Masala r
Gara
m
10 Chicken 26 Chill
Masala i
Mas
11 Fish Masala 27 Dani
a
Mas
12 Corn 28 Turmeric
powder

13 Pavbaji 29 Sam
Masala bar
Masa
14 Heena 30 Rasa
m
Masa
15 Dry Mango 31 KasuriMethi

16 Cust.Venella 32 Super
Chick
en
Masal

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 Sri Krishna Ghee:

The ghee products are produced in traditional way by using modern technology to gain
freshness of aroma.

Products with variant packaging:

 Rs- 5&10 Sachet.

 500ml standing pouch.
 200ml standing pouch.
 100ml standing pouch.
 50ml standing pouch.
 500ml bottle.
 1ltr oil pouch 500ml.
 Oil pouch 5ltr tin.

 Chutney Powder:

The chutney powder 50 grams is of Rs. 15 and 100 grams is of Rs. 29.

 Kabab Masala:

The Kabab masala is a special blend of spice which are used to chicken or fish before
preparing Kababs. The main ingredients include cinnamon, cloves, ginger root, coriander
seeds, and bay leaf, chilly and funnel powder. Kabab powder is available in 50 grams for
Rs. 33 and 100 grams for Rs. 60.

 Garam Masala:

The traditional method for making fresh garam masala is to start with whole spice. It also
used as a sprinkled on vegetables, meat etc. it can be store in an air tight container for up
to six months. The main ingredients include cardamom seeds, cumin, cinnamon, black

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pepper, cloves. Garam masala is available in 50 grams for Rs. 35 and 100 grams for Rs.
64.

 Sambar Powder:

The Sambar powder

 10 grams for Rs. 5.

 50 grams for Rs. 16.
 100 grams for Rs. 32.

 Rasam Powder:

The Rasam powder

 10 grams for Rs. 5

 50 grams for Rs. 20
 100 grams for Rs. 50
 200 grams for Rs 78

 Puliogere Mix

The puliogere mix

 50 grams for Rs. 35

 100 grams for Rs. 64.

 Black Pepper

The black pepper

 50 grams for Rs. 30

 100 grams for Rs. 58.

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 Turmeric Powder

The turmeric powder

 50 grams for Rs. 15

 100 grams for Rs. 30
 250grams for Rs. 80
 500 grams for Rs. 160
 5 kg for Rs. 1000.

 Chilli Powder

The Chilli powder

 50 grams for Rs. 13,

 100 grams for Rs. 26,
 250 gramsfor Rs.55,
 500 grams for Rs. 110,
 5 kg for Rs. 8000.

 Channa Masala

The channa masala

 50 grams for Rs. 27

 100 grams for Rs. 50.

 Dry Ginger Powder

The dry ginger powder 50 grams for Rs. 45.

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 2.5 Ownership Pattern:

Promoters of the company:

 Makam Sathyanarayan Setty Nagarajgupta (Director)

 Makam Sathyanarayan Setty Aswathanarayanagupta (Director)

2.6 Awards and Achievements:

Awards and achievements of Sri Sadananda Foods Pvt Ltd are:

 Sri Sadananda Foods Pvt Ltd the prime organization got “Best Small-Scale
Industry Award” from the legislation of Karnataka in the year1995-96.
 Sri Sadananda Foods Pvt Ltd the front runner organization has earned ISO 9001-
2000 certification from RINA in the year 2003.

2.7 Future Growth Prospects of the Company

 Entry into other state: As this company is concentrating its products and services in
Karnataka and it has created a good brand image in the minds of customers. So the
company is planning to expand or entering into other states too.
 Expansion and diversification of the manufacturing unit: Now there is one unit in
Chikkballapur, as they are expanding their products and product line, opening more
number of units will help in increasing their profits.
 Increasing the market share: sri Krishna products have created a good image so that
they can easily expand their market share.
 Extending the branches : company is planning to extend and expand their branches
all over Karnataka.
 Company is also planning to enter into Ayurveda products and medicines.

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 Chapter 3

McKensy’s 7s Framework

The McKensy’s 7S framework is a management model developed by well known

business consultants Robert H. Waterman, Jr. and Tom Peters 1980s. This was a strategic
vision for groups, to include businesses, business units, and teams.

This model is often used as an organizational analysis tool to assess and monitor changes
in the internal situation of an organization. This is most widely used framework in the
business today.

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In the 7S framework both hard and soft elements are incorporated, in which hard
elements aim at the direct control of the management as it can be easily defined and
identified. The soft elements are less tangible and are difficult to be identified as such
elements are more governed by the culture. But according to the proponents of this
model, these soft elements are equally important as hard elements in determining an
organizations success as well as growth in the industry.

This model is based on the theory that, for an organization to perform well, these seven
elements need to be realigned and mutually reinforcing. So the, model can be used to
help identify what needs to be realigned the performance, or to mail during change.

The type of change might be restructuring, new processes, organizational merger, new
Systems and change of leadership etc. This model can be used to understand how the
organizational elements are interrelated, and so ensure that the wider impact of changes
made in one area will be taken.

The elements of the organization strategy, structure, systems, shared values, style, staff
and skills.

1. Strategy:

It is the plan of action, or the roadmap or the blueprint by way of which an organization
gains a competitive advantage or a leadership edge. In general, a sound strategy is the one
that is clearly articulated, is long term, helps to achieve competitive advantage and is
reinforced by strong vision, mission, and values. This is also the direction and scope of
the company over long term.

2. Structure:

This refers to organizational structure or the reporting pattern. This represents the way
the business divisions and units are organized and includes the information of who is
accountable to whom. It is one of the most visible and easy to change the elements of
the firm.

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 3. Systems:

These are the process and procedures of the company, which reveals business day to day
activities and how the decisions are made. It determines how business is done and it
should be the main focus for managers during organizational change.

4. Shared values:

This is the core of McKinsey 7S model. They are the norms and standards that guide
employee behavior and company actions and thus, are the foundations of every
organization. Shared values will reflect in the organizational culture or influence the code
of ethics. They are the values and benefits of the company.

5. Style:

This represents the way the company is managed by the top level managers, how they
interact, what actions do they take and their symbolic value. This lays emphasis on the
leadership style and how it influences the strategic decision, motivation and
organizational performance.

6. Staff:

This element is concerned with the type and how many employees and organization
will need and how they will be recruited, trained, motivated, compensated and
rewarded. This can also be referred as the general staff or the capabilities of the
employees.

7. Skills:

This refers to the core competencies or the key skills of the employees play a crucial
role in defining the organizational success. It ensures that people know how to do their
jobs and stay updated with the latest techniques.

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 McKinsey’s 7s of Sri Sadananda Foods Private Limited

3.1(a) STRUCTURE

The structure of Sri Sadananda Foods Pvt.Ltd is appropriate for an organization with
wide range of product lines. It assures maximum usage of principle of specialization so
that labors are involved in minimal activities.

Administration division cares and controls all other departments of the sri sadananda
foods unions has finance, marketing, production, and quality departments.

Major functions are: -

 To develop official work procedure and process in order to increase the profit
margin.
 To schedule work properly so that all jobs are completed on time.
 To maintain responsible quality and quantity standards.
 To provide satisfactory environment for employees.

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 DIRECTOR

GENERAL MANAGER

PRODUCTION MANAGER FINANCE MANAGER MARKETING MANAGER QUALITY MANAGER

ASSISTANT PRODUCTION MANAGER

ASSISTANT FINANCE MANAGER ASSISTANT QUALITY MANAGE
ASSISTANT MARKETING MANAGER

TRAINEE
TRAINEE TRAINEE TRAINEE

PRODUCTION DEPARTMENT:

It includes procurement and input department is exercised with assortment of ghee from
various distributed control system.

 To follow up daily procurement schedule as per the plan.

 To collect quality of butter by checking out the fat content.
 To send procured ghee to production unit.
 To maintain good relationship with distributors.

FINANCE DEPARTMENT:

Finance department of the organization is well staffed with skilled and resource
personnel. Finance department of the company is responsible for all financial dealings
and the department is fully computerized.

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MARKETING DEPARTMENT:

Marketing department plays a significant role in estimating future abilities of the

company. The main objective of this division is to provide a traditional form of ghee
with good aroma.
 To plan marketing program.
 To connect and retain the consumers through quality product.
 To analyze marketing opportunities.
 To develop marketing strategies and decisions.

QUALITY DEPARTMENT:

The company assures quality right from the beginning of procurement of cream up to
it reaches customers. The products of Sri Sadananda Foods Pvt Ltd accredited with
ISO 9001-2000 certificate. The products have also been endowed ISI mark. Quality is
the most important variable in order to succeed in the industry and also which helps
in retaining customers.

STRATEGY:

Sri Sadananda Foods is formulating appropriate strategies in order to meet the future
challenges and to develop and strengthen dairy co-operatives on the following areas: -

 Reasonable pricing.
 Procurement, processing and marketing.
 No adding chemicals.

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Pricing decisions are subjected to an incredibly complete array of environmental and
competitive forces. Price of a product is not set by considering single item rather it also
consider different items in its product line.

The pricing structure changes over time as products move through their life cycle. As the
competitive environment changes, company considers when to intimate the price changes
and how to respond to them.

Sri Sadananda foods union produces different ghee products to cater efficiently the
variety ghee needs to the urban and semi urban consumers to jurisdiction.

Corporate level Strategies:

Corporate level strategy concentrates on strategies for enterprises including more than
one operation. For instance, Sri Sadananda. Foods is concentrating on manufacturing of
both ghee and masala products.

Concentric Diversification

''Adding new, but related products or service”

Sri Sadananda Foods involved in concentric diversification because Sri Sadananda

Foods has two by products, ghee and ground spices. Sri Sadananda foods have
developed a setup to sell Ground Spices under brand name of Sri Krishna Excellent
Spices. So Sri Sadananda Foods is adding new but related products in to the market.
Instead of selling as raw spices to any other spices manufacturer, they themselves start
cutting and packaging of spices and sold in the market as their own new product under
their own brand name. Then we said it concentric diversification because they
manufacture the Spices from the by-products they recieve.

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Backward integration:

"Seeking ownership or increased control of a firm's suppliers"

Sri Sadananda Foods involved in backward integration because they receive the Ground
Spices from their own factories. The Sri Sadananda Foods if it has to negotiate upon the
prices of Spices purchasing from other factories.

Forward integration:

“Gaining ownership or increased control over distributors or retailers”

The company should use their own distribution channels or network because the motive
behind that when they have their own distribution system the additional cost will be
avoided which had been kept by the dealers as their own margin. In this dynamic and
competitive environment, the firm has to maintain its current position of cost leadership
to be competitive.

Operation level strategy:

Operation level strategy focuses at how to develop capabilities in process execution that
will yield competitive advantages for a firm. This involves applying strategic
management concepts to what is known as the operations level, the level at which work
inside the organization actually takes place. Company focus on how organizations go
about improving their process capabilities including both total quality management and
core process reengineering.

Cost Leadership:

In manufacturing and especially in industries where the product differentiation is not

possible the only strategy the organization is left with is "Low Cost Production" or cost
leadership. In fact cost reduction is the only way to stay in the industry. Sri Sadananda
Foods has cost leadership strategy. According to the text, the low cost strategy is good
when, product cannot be differentiated, industry is producing standardized products,
product has same usage and switching cost is low. All the characteristics are fully applied
in ghee industry. So company is using the right strategy.

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Market Development:

"Seeking increased by improving or modifying present product or services” Currently Sri

Sadananda foods is following the product development strategy, because the Sri
Sadananda Foods is continuously improving the quality of the ghee for the consumers.

Sri Sadananda foods has a good image in Karnataka, and they try to develop the same
good image in all over the country. So that's why they are improving their products
through TQM.

Advertisement:

Sri Sadananda Food is advertising their products through different Medias like TV
channels, newspaper, and pamphlets. They believe that advertisement without availability
of product is useless and create a bad image. So the company concentrates more on
advertisement.

3.1 SYSTEM:

System refers to rules, regulations and procedures both formal and informal that
complete the organization structure.

 The major information system used in the finance department to provide clear
information regarding the accounts statements is Tally. The advanced version of Tally
accounting package is used in the accounting department is Tally ERP9.
 Factory applies manufacturing techniques in production units. As with traditional
manufacturing, the engineering is left to creation of component.

 Computer software used to purchase order, the supplier lends the ghee and ghee
products along with the bills. The products are received at receipt section of the stores
and verified against the specification laid in purchase order.

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3.1 SKILLS:

Organization conducts job training which enhances skills and knowledge of an employee
for performing the job effectively.

Qualification required for personnel are:

 The office staff-sufficient computer knowledge, degree, fluency in English and

minimum of 2yearsexperience.
 Technical staff- ITI or diploma and 1 or 2 years of experience.

 Managerial personnel - minimum of 5 years work experience, computer knowledge

and MBA.

3.1 STYLE:

The management of Sri Sadananda Foods Pvt Ltd follows the participative leadership
style. Each employee is accountable to his superior and superior directs the subordinates.

 Top down decisions.

 Reducing or increasing the price of the product.
 Fixing the targets to the employees and to the workers who are working in the
organization.
 Policy issues for instance to conclude decision-making parameter pertaining the day-
to- day operation to conclude the style of functioning.
 Suggestions of the employees are considered for decision making.

The manager of the purchasing department selects the material suppliers. The
manager of the purchasing department has the authority to select the supplier for
providing the necessary raw materials for the production function. The suppliers are
selected on the basis of the least price quoted by the suppliers.

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3.1 STAFF:

Staff refers to organizations human resource. Management is concerned with the

accomplishment of objectives by utilizing financial and physical resources through the
efforts of manpower.

Total no of employees: 183

In Sri Sadananda foods, the human resource is classified into three categories:

 Officer
 Staff
 Workers

The workers are again classified into:

 Permanent workers
 Apprentices or trainees Permanent workers 165
 Trainees 18
Total 183

 Male and female Employees Male 102

 Female 81

3.1 SHARED VALUES:

Shared values are trust values which are the identity by which a company is known
throughout its business areas. The values must be explicitly stated as both corporate

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objectives and individual values. Shared values are the company level beliefs, mindsets
and assumptions that figures how an organization behaves.

The shared values of Sri Sadananda Foods Pvt Ltd are as follows:

 To facilitate rural development by providing them the opportunities for self-

employment at village level, preventing migration to urban areas, introducing cash
economy and opportunity for steady income.
 Employees will be given incentives and bonus during festivals and at the year end.

 To ensure provision of ghee production inputs, processing facilities and dissemination

of knowhow.
 Providing quality ghee to the consumers.

 To build village level institutions in co-operative sectors to manage the dairy

activities.

3.1 PORTER’S FIVE FORCES MODEL

Forces that have significant impact on a firm’s profitability in its industry. These five
forces analysis today in business world is also known as – porter five forces analysis.
Michael porter observed five are

1. Threat of New Entrants

2. Bargaining Power of Suppliers
3. Bargaining Power of Buyers
4. Threat from Substitute Products
5. Rivalry among the existing players.

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Porter Five Forces is a holistic strategy framework that took strategic decision away from
just analyzing the present competition. Porter Five Forces focuses on - how Sadananda
Foods pvt.ltd can build a sustainable competitive advantage in Processed & Packaged
Goods industry. Managers at Sri Sadananda foods pvt.ltd can not only use Porter Five
Forces to develop a strategic position with in Processed & Packaged Goods industry but
also can explore profitable opportunities in whole Consumer Goods sector.

Sri Sadananda foods Pvt.ltd, porter five forces analysis of consumer goods industry

3.2 Threat of new entrants:

New entrants in Processed & Packaged Goods brings innovation, new ways of doing
things and put pressure on Sri Sadananda foods pvt.ltd ,through lower pricing strategy,

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reducing costs, and providing new value propositions to the customers. Sri Sadananda
foods pvt.ltd has to manage all these challenges and build effective barriers to safeguard
its competitive edge.

How Sadananda foods pvt.ltd can tackle the Threats of New Entrants

 By innovating new products and services. New products not only bring new
customers to the fold but also give old customer a reason to buy Sri Sadananda foods
Pvt Ltd’s products.
 By building economies of scale so that it can lower the fixed cost per unit.
 Building capacities and spending money on research and development. New entrants
are less likely to enter a dynamic industry where the established players such as Sri
Sadananda foods pvt.ltd keep defining the standards regularly. It significantly reduces
the window of extraordinary profits for the new firms thus discourage new players in
the industry.

3.2 Bargaining power of suppliers

All most all the companies in the Processed & Packaged Goods industry buy their raw
material from numerous suppliers. Suppliers in dominant position can decrease the
margins Sri Sadananda foods pvt.ltd can earn in the market. Powerful suppliers in
Consumer Goods sector use their negotiating power to extract higher prices from the
firms in Processed & Packaged Goods field. The overall impact of higher supplier
bargaining power is that it lowers the overall profitability of Processed & Packaged
Goods.

How Sri Sadananda foods pvt.ltd can tackle Bargaining Power of the Suppliers

 By building efficient supply chain with multiple suppliers.

 By experimenting with product designs using different materials so that if the prices
go up of one raw material then company can shift to another.

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 Developing dedicated suppliers whose business depends upon the firm. One of the
lessons Sri Sadananda foods pvt.ltd can learn from Wal-Mart and Nike is how these
companies developed third party manufacturers whose business solely depends on
them thus creating a scenario where these third party manufacturers have significantly
less bargaining power compare to Wal-Mart and Nike

3.2 Bargaining power of buyers

Buyers are often a demanding lot. They want to buy the best offerings available by
paying the minimum price as possible. This put pressure on Sri Sadananda foods pvt.ltd
profitability in the long run. The smaller and more powerful the customer base is of Sri
Sadananda foods pvt.ltd is the higher the bargaining power of the customers and higher
their ability to seek increasing discounts and offers.

How Sri Sadananda foods pvt.ltd can tackle the Bargaining Power of Buyers:

 By building a large base of customers. This will be helpful in two ways. It will reduce
the bargaining power of the buyers plus it will provide an opportunity to the firm to
streamline its sales and production process.
 By rapidly innovating new products. Customers often seek discounts and offerings on
established products so if Sri Sadananda foods pvt.ltd to keep on coming up with new
products then it can limit the bargaining power of buyers.
 New products will also reduce the defection of existing customers of Sri Sadananda
foods pvt.ltd to its competitors.

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3.2 Threat of substitute products and services:

When a new product or service meets a similar customer needs in different ways,
industry profitability suffers. For example services like Drop box and Google Drive are
substitute to storage hardware drives. The threat of a substitute product or service is high
if it offers a value proposition that is uniquely different from present offerings of the
industry.

How Sri Sadananda foods Pvt.Ltd can tackle the Treat of Substitute Products / Services:

 By being service oriented rather than just product oriented.

 By understanding the core need of the customer rather than what the customer is
buying.
 By increasing the switching cost for the customers.

3.2 Rivalry among the Existing Competitors:

If the rivalry among the existing players in an industry is intense then it will drive down
prices and decrease the overall profitability of the industry. Sri Sadananda foods pvt.ltd
operates in a very competitive Processed & Packaged Goods industry. This competition
does take toll on the overall long term profitability of the organization.

How Sri Sadananda foods pvt.ltd can tackle Intense Rivalry among the Existing
Competitors in Processed & Packaged Goods industry

 By building a sustainable differentiation

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 By building scale so that it can compete better
 Collaborating with competitors to increase the market size rather than just competing
for small Market.

Implication of Porter Five forces on Sri Sadananda foods Pvt.Ltd.

By analyzing all the five competitive forces Sri Sadananda foods pvt.ltd strategists can
gain a complete picture of what impacts the profitability of the organization in Processed
& Packaged Goods industry. They can identify game changing trends early on and can
swiftly respond to exploit the emerging opportunity. By understanding the Porter Five
Forces in great detail Sri Sadananda foods pvt.ltd managers can shape those forces in
their favor.

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 Chapter-4

SWOT Analysis

SWOT analysis is an analytical framework used to evaluate company’s competitive

position by identifying its strengths and weaknesses (internal factors), opportunities and
threats (external factors), It can also called as a high level strategic planning model.
Scanning of both internal and external environment is an important part of this analysis.

It is a framework that can assesses what an entity (usually a business, through it can be a
place, organization or product) can and cannot do, for factors both internal and external.
SWOT analysis assist the firm in accomplishing its objectives, and what obstacles it must
overcome or minimize to achieve desired results: where the organization is today, and
where it may go. Analysts usually present SWOT analysis as square with each of the four
areas making up one quadrant. This visual arrangement provides a quick overview of the
company’s position. When using this analysis, an organization needs to be realistic about
its good and bad points. SWOT analysis should be short and simple, and should avoid
complexity and over analysis because much of the information is subjective. Thus,
companies should use it as a guide and not a perception.

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Provides information that is helpful in matching the firms resources and capabilities to
the competitive environment in which it operates. As such, it is instrumental in strategy
formulation and selection.

The primary objective of this analysis is to help organizations develop a full awareness of
all the factors involved in decision. This method was created in the 1960’s by Edmund
P.Learned, C. Reland Christensen, Kenneth Andrews and William D Books.

 Strengths

It describes what an organization excels and separates it from the competition which
includes a strong brand, loyal customer base, a strong balance sheet, unique technology
and soon.

 Weaknesses

This stops an organization from performing at its optimal level. They are the areas where
the business needs to improve to remain competitive: higher than industry average
turnover, high levels of debt, an inadequate supply chain or lack of capital.

 Opportunities

This refers to favorable environmental factors that an organization can use to give it a
competitive advantage.

 Threats

This refers to factors that they have the potential to harm an organization. The common
threats include things like rising costs for inputs, increasing competition, tight labor
supply and so on.

Sri Sadananda Foods Pvt Ltd can evaluate the SWOT analysis on the basis of data,
observations and previous reports. SWOT analysis helps in identifying the strength and

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weakness of the organization; opportunities are the company capacity to compete and to
overcome the threats.

SWOT ANALYSIS OF SRI SADANANDA FOODS PVT LTD

4.1 STRENGTHS:

 Huge demand for Krishna Ghee.

 Good quality of ghee with easy availability.
 Skilled labor with high morale.
 Highly equipped Production Plant.
 Easy access to loans from National Dairy Development Board.
 Wide range of masala products around 30 varieties in the brand name of excellent
masala.
 Easy access to loans from National Dairy Development board.

4.2 WEAKNESSES:

 Weak supply chain, as it can delay the arrival of products to the customers.
 Distribution network is limited to Karnataka only.
 No cattle farming.
 They distribute their products through outside dealers which cause increase in price of
the products which the consumers receive, because the dealers and retailers take their
margin.

4.3 OPPORTUNITIES:

 High demand for ghee as it used as one of the traditional item.

 Focusing on product innovation.
 Demand for this ghee in neighboring states namely Andhra Pradesh, Tamil Nadu and
Kerala.

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 Rural market penetration.
 Creating more employment opportunities.
 Instant mixes production.

4.4 THREATS:

 Demand for other bands of ghee and competition as well.

 Decrease in consumption.
 Entry of new competitors like GRB, AMUL and Nandini etc.
 Low production of spices.
 Strong supply chain management by the competitors.

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 Chapter 5

Analysis of Financial Statements

1. CURRENT RATIO

Current ratio = current assets / current liabilities

Year Current Assets Current Liabilities Current Ratios

2017 3,52,59,526.98 25,31,714 13.9:1
2018 4,39,58,987.43 96,03,601 4.5:1
Table 5.1.1 showing current ratio

Current Assets
16

14

12

10
Current Assets
8

0
2018 2017

Graph 5.1.1 showing current ratio

INTERPRETATION

From the above table it is clear that the current ratio is decreased compared to previous
year. Because the company has difficulty to meet its short term obligations.

2. NET PROFIT RATIO

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Net profit ratio = Net profit / Sales *100

Year Net profit Sales NPR in%

2017 4818278.82 103191069.69 4.66%

2018 5559683.37 164285787.83 3.38%
Table5.2.1showing net profit ratio

Net Profit Ratio

5
4.5
4
3.5
3
Net Profit Ratio
2.5
2
1.5
1
0.5
0
2017 2018

Graph 5.2.1 showing Net profit ratio

INTERPRETATION

The Net profit ratio is 4.66% & 3.38% for the year 2017 & 2018 respectively. From the
above table it is clear that the net profit ratio has decreased from last year because of
increased expenses.

3. FIXED ASSET TURNOVER RATIO

Fixed asset turnover ratio = Cost of goods sold / Net fixed assets

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Year Cost of goods sold Net fixed assets FixedAsset
Turnover Ratio
2017 78,73,557 56,01,324.00 1.4 times
2018 32,23,264 64,85,834.34 0.4 times

Table5.3.1 showing Fixed asset turnover ratio

Fixed Asset Turnover Ratio

1.6
1.4
1.2
1 Fixed Asset Turnover Ratio
0.8
0.6
0.4
0.2
0
2017 2018

Graph 5.3.2 showing fixed asset turnover ratio

INTERPRETATION

From the above graph, it is clear that company’s fixed asset turnover ratio has been
decreased in 2018. It shows that company is not utilizing its fixed asset to generate
enough sales as previous year.

4. ABSOLUTE LIQUIDITY RATIO

Absolute liquidity ratio = Absolute liquid assets / current liabilities

Year Absolute liquid Current liabilities Absolute liquidity

assets ratio

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2017 6,30,087.16 25,31,714 0.24:1
2018 23,85,641.62 96,03,601 0.25:1
Table 5.4.1 showing absolute liquidity ratio

Absolute Liquid Ratio

0.25

0.25

0.25

0.25

0.24 Absolute Liquid Ratio

0.24

0.24

0.24

0.24

0.23
2017 2018

Graph of 5.5.2 showing absolute liquidity ratio

INTERPRETATION

In the year 2017 it has absolute liquid ratio was 0.24 but in the year 2018, it has increased
in 0.25. This means the company has marginally improved.

Chapter 6

Learning Experience

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The Internship study at Sri Sadananda Foods Private Limited, Bangalore. It was a good
learning experience to understand overall style of functioning of the company. The
various aspects are defining the roles of each department, delegation of authority and
responsibility to each employee. In 4 weeks of Internship in the company explains many
things carried in the organization. This Internship training helped in gaining more
knowledge about the work carried out in the organization. It also helped me to learn
about organization structure and the functions of different departments. The company
environment is very friendly and co-operative. Company employees can directly contact
with their personnel department in case of any issues they helped me in collecting
information required for internship.

The idea about the organization working, how the work is allotted, how it is carried out
and duties and responsibilities of employees in the organization, how the vision, mission,
quality policy and objectives of the company how strategy, structure, staff, skills, style,
and shared values of the company with its strength, weakness, opportunities and threats
of Sri Sadananda Foods Private Limited, Bangalore. During the internship program I
have worked in all the concern departments and came to know about the company
profile, the product that the manufacture. I can relate the theoretical aspects in the
working environment concepts such as quality management and manufacturing of
product.

Bibiliography

 Edwin B Flippo Human Resource management, 4th Edition.

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  Kotler Marketing Management, 12th Edition 2004.
 Company magazines, articles, previous records and reports.
 http://www.srikrishnaghee.com

ANNEXURE
Table Shows the Balance sheet as at 31 March 2016 & 31 March 2017

Particulars March 2017 March 2018

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Equity and liability
Shareholder’s funds
a) Share capital 12,00,000 12,00,000

b) Reserves and surplus 1,16,15,537 1,56,01,985

Share of application money

pending allotment - -

Non- current liabilities

a) Long term borrowings -2,76,63,387 -2,93,46,239

b) Deferred tax - -
liabilities(net)
-
c) Other long-term liabilities -
-
d) Long term provisions -
Current liabilities
a) Short term borrowings 14,38,913 63,71,369

b) Trade payables 4,70,882 17,31,150

c) Other long-term liabilities 6,21,919 15,01,082

d) Short term provisions - -

Tota 4,30,10,638 5,57,51,825

l
Assets

Non-current assets
a) Fixed assets - -

 Tangible assets 56,01,324 64,85,834

 Intangible assets - -

 Capital work in progress - -

 Intangible assets under - -
development
-
b) Noncurrent investment -

c) Deferred tax assets(net) - -

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d) Long term loans and 21,49,788 53,07,004
advances
-
e) Other non- current assets -

Current assets
a) Current investments -3,11,07,201 -3,04,46,907

b) Inventories 15,71,717 69,15,624

c) Trade receivables 6,30,087 23,85,641

d) Cash and cash balances - -

e) Short term loans and 19,50,521 42,10,814

advances

f) Other current assets - -

TOTAL 4,30,30,10,638 5,57,51,825

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