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Organisation Study On Sitharam
Organisation Study On Sitharam
While conducting the study the researcher got a real idea about the
structure of the management and harmonious working conditions of employees in
Sitaram Textiles Ltd, Thrissure. A fair organizational study will help an
organization to develop a lot. The suggestions given by the researcher will help to
improve the efficiency and effectiveness of the organization in a systematic manner.
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
To give suggestions based on the findings for the improvement of efficiency and
To analyse the strength and weakness as well as opportunity and threats of the
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
LIMITATIONS
The success of the study depends upon the response made by the employee.
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
INDUSTRY PROFILE
INTRODUCTION
The country is rich in natural resources such as cotton, just, and silk.
Textile industry is unique in the terms that it is an independent industry from the basic
requirement of raw materials on the final products, with huge value addition at every
stage of processing. Textile industry in India has vast potential for creation of
employment opportunities in the agricultural, industrial, organised and decentralised
sectors and rural and urban areas particularly for women.
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
India has been well known for her textile goods since very ancient
times. The traditional textile industry of India was virtually decayed during the
colonial regime. However, the modern textile industry took birth in the early 19 th
century, when the first textile mill in the country was established at foster glisters near
Calcutta in 1818. The cotton textile industry however made its real beginning in
Bombay in 1850s. The First cotton textile mill of Bombay was established in 1854 by
a Parsi cotton merchant then engaged in overseas and internal trade. Indeed the vast
majority of the early mills were the handy work of Parsi merchants engaged in yarn
and cloth trade at home and Chinese and African markets. The first cotton mill in
Ahmadabad, which was eventually to emerge as a rival centre to Bombay, was
established in 1861. The spread of the textile industry to Ahmadabad was largely due
to the Gujarati trading class.
The cotton textile industry made rapid progress in the second half of the
19th century and by the end of the century there were 178 cotton textiles mills; but
during the year 1900 the cotton textile industry was in bad state due to the great
famine and a number of mills of closed down for long periods.
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
Modern textile industry in India has its origin in the 19 th century. The
textile industry plays a pivotal role in the Indian economy. This industry is very
significant today because, this sector contributes substantially in providing
employment and earning foreign exchange.
The country is in rich natural resources such as cotton, jute and silk. The
textile industry is the second largest employer after agriculture, with a total work force
of around 35 million. India is next only to China among the world world’s largest
producers of textiles and garments. The activities in textiles range of from the
production of natural raw material such as cotton, jute, silk and wool to the
manufacture of quality products such as cellulose fibre, synthesis filament and span
yarn. But during the last four years the industry has been suffering from a lot adverse
factors. The major problem is technology lag. Recently the union government has
come out with ambitions, technology up gradation fund of a possible magnitude of
Rs.25,000 crores to help the industry catch up with the trends in the global market.
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
2. India has 34 million cotton textile spindles for manufacturing cotton yarn. Cotton
yarns account for 70% of India’s textiles exports. (China has 40 million cotton
spindles)
3. For the past tow years there has been a significant, mainly due to the increasing
price of cotton
4. Of the Indian textile yarn exports, almost 80% come from coarser yarns
consequently, there is a need to upgrade the technology.
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
The government India has also taken few initiatives to promote the
textile industry by permitting 100% Foreign Direct Investment (FDI) in the market.
the Indian Textile Industry symbolized a strong existence in the complete value
chain from raw commodities to finished products. The Synthetic and Rayon Textile
Export Promotion Council (SRTEPC) has taken all the required steps to meet the
target of doubling the synthetic textile export in India to US $ 6.2 billion by seizing
4% of market share by financial year 2011 -2012.
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
The first Indian cotton textile mills was established at Fort Glisters near
Calcutta as early as in 1838. The first cotton textile mill was in Bombay was the
Bombay spinning and weaving company started in the year 1851. The cotton textile
industry is admittedly the single largest organized industry in India and occupies
second place among the countries of the world in cotton textile mills are located in
those status like Maharashtra, Gujarat, Tamilnadu,West Bengal and Kerala.
The state has number of Textile mills. Kerala cotton textile mills generate direct and
indirect employment opportunities. There are more than 30 textile mills working in the
state. The major raw materials used by the industry are cotton polyesters, synthetic
fibres etc…. These raw materials are not widely manufactured in Kerala. It is either
obtained from other states especially from Maharashtra and Tamilnadu or they are
imported from abroad. Since the climate conditions of Kerala frequently changes,
Suitable arrangements should be made to maintain the desired conditions for the
production of Yarn.
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
The present condition of textile industries of Kerala is not good. Most of the private
owned mills have closed down and as a result large number of workers lost their job.
Similarly some of the private operated mills are fairly the problem of taking over by
the Government. Some of the mills are taken by the textile corporation of Kerala,
National Textile Corporation and Kerala government. Some of them located in
Thrissur are:
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
finished products (yarn) are directly marketed to the depots in Bombay. Different
varieties of cotton purchased from outside state such as Tamilnadu, Andrapradesh,
Karnataka and Maharashtra. The products of the company were cotton yarn and
fabrics till 2000. Now the company produces only cotton yarn and polyester yarn.
VISION
MISSION
BOARD OF DIRECTORS
Chairman : N.R.Balan
Directors
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
The chart show the organisation has in net loss from the year
2006 to 2009. And in year 2010 the company has in profit at rs 3547606.
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
PRODUCTION UNIT
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
ORGANIZATION STRUCTURE
Board of Directors
Chairman
Managing Director
General Manager
Workers
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
Advantages
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
PRODUCT LINE
The term ‘count’ implies the qualities of yarn. Higher the count
higher the quality. The waste of cotton are categorised into three that is saleable
waste, reusable waste and invisible waste.
The saleable wastes are gutter fly waste, lick ring fly cleaner,
cowing ends, comber no in opener, hard waste and sweeping waste flat strap waste.
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
BUSINESS OPERATION
Nature of business
The products of the company were cotton yarn and cotton fabrics till
2000. Now the company produces only cotton yarn and the polyester yarn. . The
finished product (yarn) is directly marketed to the depots in Bombay. The company
gets advance order for producing yarns. So they undertake Just-In –Time
manufacturing system.
Size of business
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
The business
operation of Sitaram Textiles
is start from cash
converted into raw materials
then the raw materials are
processed and converted to
finished goods. That is
cotton yarn and polyester yarn. The finished product is directly marketed to the
depots in Bombay and then the finished goods to debtors and debtors to bills
receivables. The business operation goes on this flow and bills receivable to cash is
next.
Functions
MARKET SHARE
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
COMPANIES MARKET
SHARES
Sitaram Textiles 2%
NTC 60%
GTN 2%
Thrikkot Mill 3%
OTHERS 33%
Sitaram Textiles
2%
Others
33%
NTC
60%
GTM
2%
Thrikkot Mill
3%
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
profit
year
The company is in its growth stage. In this stage the demand and
sales of the product increased rapidly. In this the profit is increasing. Till 2008 the
company incurred continuous loss, but during the year 2010 and 2011 the company
earns profits because of higher demand of the products. And the company expect
the future growth.
COMPETITORS OF SITARAM
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
At the time when Sitaram Textiles Limited started it was the one and
only concern in the field. Later new companies emerged in the field which increases
the competition. Now Sitaram is facing cut throught competition.
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
DEPARTMENTS
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
Purchase Department
Marketing Department
Production Department
Finance Department
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
Personnel
Manager
Shift Time
Keeper
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
Functions
3. To forecast and balance the demand for and supply suitable personnel.
6. To maximise productivity.
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
Workers 161
Officers 8
supervisors 5
Office 15
assistant
Drivers 5
Security 5
Peons 3
TOTAL 202
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
Basic wages
Occupational wages means the basic wages fixed for the category or occupation
under the IRC settlement and doesn’t include the annual increments.
Dearness Allowance.
Dearness allowance will be on the basis of Trivandrum cost of living index with
1970=100
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
Maternity Benefit
The maternity benefit is also provided as per the provisions of ESI act 1948. 84
days leave will be granted as Maternity benefit. If delivery is done at hospitals
referred from ESI hospital then the full amount of treatment will be reimbursed.
Gratuity
If the employees complete a five years of continuous service, they are eligible to get
gratuity. In case of death or disablement the qualifying period of 5 years is not
necessary. Sitaram textile Ltd, provide gratuity to the act, 1972.
Canteen
Sitaram textile Ltd, Punkunnam provide a well established canteen. Both the
management and workers can use the canteen facility. Canteen extends its service
for round the clock.
There is sufficient number of shelters and rest rooms are arranged separately for the
men and women workers. They can utilize the rest room at the leisure time or for
taking meals.
For every employee, one day granted as leave for every 20 working days. The
employee has to work minimum days in the previous years.
Travelling allowances
The employees of Sitaram textiles get a travelling allowance of Rs 26 per month for
26 working days.
Pension
Supervisors- 7000
Manager- 12000
Selection of employees
Shift of workers
FROM TO
7.00 AM 3.30
PM
3.30 PM 12.00
AM
12.00AM 7.00
AM
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
Mixing attendant
Schutcher attendant
Cording Tender
Combers
Drawing Tender
Simplex Tender
Simplex Doffing Boys
Spinning Slider
Doffing Boy
Cone winners
Packing
Filter
Assistant Filter
Filter Helper
Cleaning gang
Shift Electrician
Jobbers and others
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
PRODUCTION DEPARTMENT
Production Manager
Supervisors
Production Staffs
Workers
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
The products of the company were cotton yarn and cotton fabrics till
2000. Now the company produces only cotton yarn and polyester yarn. For
producing cotton yarn, the period of time is one week. The total consumption per
day is 2000kg.
The term ‘count’ implies the qualities of yarn. Higher the count
higher the quality. At the time of production wastes are created. The waste of cotton
are categorised into three that is saleable waste, reusable waste and invisible waste.
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
PRODUCTION CHART
MIXING BALE
BLOW
AUTO MIXER ROOM
SCUTCHER
CARDING
A. SILVER LAP
COMBER
B. RIBBON LAP
DRAWING
SIMPLEX
CONE WINDING
PACKING
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
Production process
a. Mixing
b. Blow room
c. Carding
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
d. Drawing
e. Simplex
f. Spinning
g. Cone winding
h. Packing
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
STORES DEPARTMENT
Store Keeper
Staffs
4. Place
6. Name and designation of person who received and inspected the material.
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
7. Registered number of vehicle in which the goods had been brought in.
8. Transportation cost.
Each item in the store has been given a unique code number
and they are stored according to the code number and according to the cost centres.
Bin card is used to recording the receipts and issues of various materials. Proper and
scientific way of analyzing is not maintained in the company.
3. Finished goods -packed yarn at cost or net realizable value whichever is lower
4. Stock with retail shop at landed cost/ latest landed cost or realizable value after
making previous for obsolescence whichever is lower
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
7. The unfinished job conversion contracts for yarn are recognized as work in
progress valued at contracted price less expense still to be incurred for making it
ready for delivery.
These are semi finished products. These are the products that
need more work before they become finished products.
These are finished or final products which are ready for sale.
The finished product of Sitaram is yarn.
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
FINANCE DEPARTMENT
Accounts Officer
Accounts Staffs
1. Accounting function
2. Finance function
1. Accounting function
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
relating to purchase, production, sales, other income , fixed amount salaries& wages
and other expenses like manufacturing , administration, selling and distribution.
All assets and liabilities are recorded and classified properly in accordance with the
particular date.
To maintain the truth and fairness of financial statements, via profit & Loss account
Receipts and payments of money are accurately recorded so that all payables
All expense and income of a particular period are accurately reflected in accordance
with the relevant statistics to understand the working result of that period.
A. General ledger
B. Cash book
C. Day book
D. Sales register
E. Purchase register
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
2. Finance function
To utilize funds in such a manner that is rupee is made to work at its optimum level
without endangering the financial solvency of the company through decision such
management.
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
PURCHASE DEPARTMENT
Purchase Manager
Supervisor
Workers
The main item produced in the mill at present is yarn. The cotton
yarn and polyester yarn is manufactured by the company. The main raw material of
the product is raw cotton. The raw material in the mill is compressed from cotton
bales which weight 185 kg. Different varieties of cotton purchased from outside
state that is mainly from Tamilnadu, Andra Pradesh, Karnataka and Maharashtra.
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
PURCHASE ORDER
FROM TO
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
RAW COTTON
Invisible waste - 2%
Total 100%
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
The main product of the company is cotton yarn and polyester yarn.
The yarn quality is termed as ‘count’. Higher the count higher the quality. The
count is calculated by using this formula:-
1 khandi = 355kg.
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
MARKETING DEPARTMENT
Marketing manager
The products of Sitaram Textiles are cotton yarn and polyester yarn.
Certain present of the waste of products can also be sold. The products of the
company are highly qualified. So the demand of the product is high. The company
follows direct distribution channel (zero level marketing).
Direct marketing
Direct marketing becomes common in this world. The company do not create dealer
network. The products are directly marketed to the depots in Maharashtra. Direct
marketing is very beneficial for customers as well as seller and producers. It
eliminates the gap between producer and consumer. The products can be effectively
displayed and demonstrated right in front of the customers. These goods and
services are available at fair price.
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
Now the company is facing cut throught competition from the firms
which carries same business operations. Severe price competition from the
unorganized power loom sector has restricted its operation to producing yarn.
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
SWOT ANALYSIS
STRENGTH
The company has cordial relationship with employees .The employees are more co-
operative.
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
WEAKNESSES.
The company has not repaid interest towards principal amount of loan.
Technological obsolesce is the major problem, now the company is used 30 year old
machinery.
retirement.
The company follows direct marketing so the company can’t capture the whole
market.
The company has not followed any promotional activities so the company cannot
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
OPPORTUNITY
Proper up gradation of the technology helps the company to make quality good with
Control of the department functions will helps the company for improvement.
By changing the distribution channel the company can widen the market
opportunity.
A research and development wing helps the company to improve the products
By introducing new production plants the company can improve their capacity.
THREATS
Frequent changes in political policies and system are a threat of the company.
The pollution created by the invisible waste of the cotton may cause health
problems.
company.
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
The Swot analysis give the clear picture about the organization both
in terms of internal and external environment. The organization have high quality
strength and opportunity to minimises weaknesses and threats. And the strength can
be use to utilises the maximum opportunity and the maximum utilisation of the
creative and productive opportunity that helps to avoid the weaknesses and
minimises the threats and producing quality product with new technology. The good
relation with the employees that helps to increase the production and minimises the
chance of making problems of the trade unions in the organization. And these better
strategies are formulated that can helps to increase the market share of the
organization.
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
CONCLUSION
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Nirmala College of Information Technology, Chalakudy
An Organizational Study Report on Sitaram Textiles Limited, Thrissur.
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Nirmala College of Information Technology, Chalakudy